Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | Apr. 30, 2015 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 31-Mar-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | MFLX | |
Entity Registrant Name | MULTI FINELINE ELECTRONIX INC | |
Entity Central Index Key | 830916 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 24,346,050 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
ASSETS | ||
Cash and cash equivalents | $155,393 | $132,382 |
Accounts receivable, net of allowances of $2,642 and $3,126 at March 31, 2015 and December 31, 2014, respectively | 87,895 | 133,151 |
Inventories | 50,399 | 65,627 |
Deferred taxes | 514 | 514 |
Income tax receivable | 265 | 265 |
Assets held for sale | 6,130 | 11,387 |
Other current assets | 4,012 | 7,034 |
Total current assets | 304,608 | 350,360 |
Property plant and equipment, net | 152,905 | 164,345 |
Land use rights | 3,060 | 3,108 |
Deferred taxes | 9,145 | 9,120 |
Other assets | 538 | 454 |
Total assets | 470,256 | 527,387 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Accounts payable | 98,176 | 143,032 |
Other current liabilities | 22,752 | 42,697 |
Income taxes payable | 1,940 | 2,020 |
Total current liabilities | 122,868 | 187,749 |
Other long-term liabilities | 9,677 | 11,178 |
Total liabilities | 132,545 | 198,927 |
Commitments and contingencies (Note 2) | ||
Stockholders' equity | ||
Preferred stock, $0.0001 par value, 5,000,000 and 5,000,000 shares authorized at March 31, 2015 and December 31, 2014, respectively; 0 and 0 shares issued and outstanding at March 31, 2015 and December 31, 2014, respectively | ||
Common stock, $0.0001 par value; 100,000,000 and 100,000,000 shares authorized at March 31, 2015 and December 31, 2014, respectively; 24,345,523 and 24,303,267 shares issued and outstanding at March 31, 2015 and December 31, 2014, respectively | 2 | 2 |
Additional paid in capital | 95,536 | 94,394 |
Retained earnings | 193,195 | 184,099 |
Accumulated other comprehensive income | 48,978 | 49,965 |
Total stockholders' equity | 337,711 | 328,460 |
Total liabilities and stockholders' equity | $470,256 | $527,387 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, except Share data, unless otherwise specified | ||
Statement Of Financial Position [Abstract] | ||
Accounts receivable, allowances | $2,642 | $3,126 |
Preferred stock, par value | $0.00 | $0.00 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 24,345,523 | 24,303,267 |
Common stock, shares outstanding | 24,345,523 | 24,303,267 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Income Statement [Abstract] | ||
Net sales | $149,099 | $117,793 |
Cost of sales | 130,060 | 130,765 |
Gross profit (loss) | 19,039 | -12,972 |
Operating expenses | ||
Research and development | 1,374 | 1,496 |
Sales and marketing | 3,967 | 4,353 |
General and administrative | 5,492 | 3,634 |
Impairment and restructuring | -1,180 | 24,798 |
Total operating expenses | 9,653 | 34,281 |
Operating income (loss) | 9,386 | -47,253 |
Other income and expense | ||
Interest income | 354 | 246 |
Interest expense | -91 | -217 |
Other income (expense), net | 938 | 116 |
Income (loss) before taxes | 10,587 | -47,108 |
Provision for income taxes | -1,491 | -5,308 |
Net income (loss) | 9,096 | -52,416 |
Other comprehensive income, net of tax: | ||
Foreign currency translation adjustment | -987 | -2,310 |
Total comprehensive net income (loss) | $8,109 | ($54,726) |
Net income (loss) per share: | ||
Basic | $0.37 | ($2.18) |
Diluted | $0.36 | ($2.18) |
Shares used in computing net income (loss) per share: | ||
Basic | 24,318,019 | 24,090,754 |
Diluted | 25,100,781 | 24,090,754 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Cash flows from operating activities | ||
Net income (loss) | $9,096 | ($52,416) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 11,474 | 13,687 |
Deferred taxes | -25 | 4,928 |
Stock-based compensation expense | 1,220 | 954 |
Asset (recoveries) impairments | -284 | 11,549 |
Gain on disposal of equipment and assets held for sale | -1,096 | -525 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 45,230 | 71,768 |
Inventories | 14,370 | 20,780 |
Other current assets | 2,940 | 1,130 |
Other assets | -67 | 404 |
Accounts payable | -41,164 | -61,651 |
Accrued liabilities | -19,953 | 3,475 |
Income taxes payable | -83 | -934 |
Other liabilities | -1,487 | 1,701 |
Net cash provided by operating activities | 20,171 | 14,850 |
Cash flows from investing activities | ||
Purchases of property and equipment | -3,890 | -3,847 |
Proceeds from sale of equipment and assets held for sale | 6,719 | 1,482 |
Net cash provided by (used in) investing activities | 2,829 | -2,365 |
Cash flows from financing activities | ||
Tax withholdings for net share settlement of equity awards | -78 | |
Proceeds from exercise of stock options | 28 | |
Net cash (used in) provided by financing activities | -78 | 28 |
Effect of exchange rate changes on cash | 89 | 162 |
Net increase in cash | 23,011 | 12,675 |
Cash and cash equivalents at beginning of period | 132,382 | 111,887 |
Cash and cash equivalents at end of period | 155,393 | 124,562 |
Non-cash investing activities | ||
Purchases of property and equipment | $1,331 | $603 |
Description_of_Business
Description of Business | 3 Months Ended |
Mar. 31, 2015 | |
Basis Of Presentation [Abstract] | |
Description of Business | 1. Description of Business |
Multi-Fineline Electronix, Inc. (“MFLEX” or the “Company”) was incorporated in 1984 in the State of California and reincorporated in the State of Delaware in June 2004. The Company is primarily engaged in the engineering, design and manufacture of flexible printed circuit boards along with related component assemblies. | |
United Engineers Limited (“UEL”) and its wholly owned subsidiary, UE Centennial Venture Pte. Ltd (“UECV”, and together with UEL, “UE”), through its affiliates and subsidiaries, beneficially owned approximately 61% of the Company’s outstanding common stock as of each of March 31, 2015 and December 31, 2014. This beneficial ownership of the Company’s common stock by UE provides these entities with control over the outcome of stockholder votes at the Company, except with respect to certain related-party transactions with UE or its subsidiaries, including WBL Corporation Limited (“WBL”), which require a separate vote of the non-UE stockholders. |
Basis_of_Presentation
Basis of Presentation | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Accounting Policies [Abstract] | ||||||||||||||||
Basis of Presentation | 2. Basis of Presentation | |||||||||||||||
Principles of Consolidation | ||||||||||||||||
The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. The Company has three wholly owned subsidiaries located in China: MFLEX Suzhou Co., Ltd., (“MFC”) , formerly known as Multi-Fineline Electronix (Suzhou No. 2) Co., Ltd. (“MFC2”) and into which Multi-Fineline Electronix (Suzhou) Co., Ltd (“MFC1” which we are in the process of de-registering) was merged in fiscal 2010, and MFLEX Chengdu Co., Ltd. (“MFLEX Chengdu”); one located in the Cayman Islands: M-Flex Cayman Islands, Inc. (“MFCI”); one located in Singapore: Multi-Fineline Electronix Singapore Pte. Ltd. (“MFLEX Singapore”); one located in Malaysia: Multi-Fineline Electronix Malaysia Sdn. Bhd. (“MFM”); one located in Cambridge, England: MFLEX UK Limited (“MFE”); one located in Korea: MFLEX Korea, Ltd. (“MKR”); and one located in the Netherlands: MFLEX B.V. (“MNE”). All significant intercompany transactions and balances have been eliminated in consolidation. | ||||||||||||||||
Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes contained in the Company’s Transition Report on Form 10-K for the transition period from October 1, 2014 to December 31, 2014 filed with the SEC on February 13, 2015 (the “Transition Report”). The financial information presented in the accompanying statements reflects all adjustments that are, in the opinion of management, necessary for a fair statement of the periods indicated. All such adjustments are of a normal recurring nature. The year-end condensed balance sheet data was derived from audited financial statements, but does not include all disclosures required by U.S. GAAP. Operating results for the three months ended March 31, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015. Unless otherwise indicated, the financial information in these notes is presented in thousands (except per share amounts). | ||||||||||||||||
Fair Value Measurements | ||||||||||||||||
The carrying amounts of certain of the Company’s financial instruments, including cash, accounts receivable, accounts payable and accrued liabilities approximated fair value due to their short maturities. For recognition purposes, on a recurring basis, the Company’s assets and liabilities related to money market funds are measured at fair value at the end of each reporting period. The fair value of the Company’s money market funds were measured using Level 1 fair value inputs, which consisted of quoted market prices in active markets for identical assets and liabilities. | ||||||||||||||||
The Company’s assets and liabilities measured at fair value on a recurring basis subject to the disclosure requirements as defined under the Financial Accounting Standards Board (“FASB”) authoritative accounting guidance were as follows: | ||||||||||||||||
Fair Value Measurements of Assets and Liabilities | ||||||||||||||||
on a Recurring Basis as of | ||||||||||||||||
March 31, 2015 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | ||||||||||||||
Money market funds (cash and cash equivalents) | $ | 19,649 | $ | — | $ | — | ||||||||||
$ | 19,649 | $ | — | $ | — | |||||||||||
Fair Value Measurements of Assets and Liabilities | ||||||||||||||||
on a Recurring Basis as of | ||||||||||||||||
31-Dec-14 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | ||||||||||||||
Money market funds (cash and cash equivalents) | $ | 18,208 | $ | — | $ | — | ||||||||||
$ | 18,208 | $ | — | $ | — | |||||||||||
As of March 31, 2015, assets held for sale were measured at fair value on a non-recurring basis. The fair value of the assets was determined using Level 3 unobservable inputs not corroborated by market data, consisting of third-party offers for the building and equipment. Below is a summary of the Company’s assets measured at fair value on a non-recurring basis as of March 31, 2015 and December 31, 2014: | ||||||||||||||||
Fair Value Measurements of Assets | ||||||||||||||||
on a Non-Recurring Basis as of | ||||||||||||||||
March 31, 2015 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | ||||||||||||||
Building and equipment (assets held for sale) | $ — | $ — | $ 6,130 | |||||||||||||
$ — | $ — | $6,130 | ||||||||||||||
Fair Value Measurements of Assets | ||||||||||||||||
on a Non-Recurring Basis as of | ||||||||||||||||
31-Dec-14 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | ||||||||||||||
Building and equipment (assets held for sale) | $ | — | $ | — | $ | 11,387 | ||||||||||
$ | — | $ | — | $ | 11,387 | |||||||||||
Inventories | ||||||||||||||||
Inventories, net of applicable write-downs, were composed of the following: | ||||||||||||||||
March 31, | December 31, | |||||||||||||||
2015 | 2014 | |||||||||||||||
Raw materials and supplies | $ | 14,389 | $ | 19,268 | ||||||||||||
Work-in-progress | 16,804 | 15,713 | ||||||||||||||
Finished goods | 19,206 | 30,646 | ||||||||||||||
$ | 50,399 | $ | 65,627 | |||||||||||||
Property, Plant and Equipment | ||||||||||||||||
Property, plant and equipment, net, were composed of the following: | ||||||||||||||||
March 31, | December 31, | |||||||||||||||
2015 | 2014 | |||||||||||||||
Building | $ | 50,259 | $ | 50,450 | ||||||||||||
Machinery and equipment | 333,375 | 334,539 | ||||||||||||||
Computers and capitalized software | 13,568 | 13,328 | ||||||||||||||
Leasehold improvements | 1,290 | 1,290 | ||||||||||||||
Construction-in-progress | 172 | 598 | ||||||||||||||
$ | 398,664 | $ | 400,205 | |||||||||||||
Accumulated depreciation and amortization | (245,759 | ) | (235,860 | ) | ||||||||||||
$ | 152,905 | $ | 164,345 | |||||||||||||
Other Current Liabilities | ||||||||||||||||
Other current liabilities were composed of the following: | ||||||||||||||||
March 31, | December 31, | |||||||||||||||
2015 | 2014 | |||||||||||||||
Wages and compensation | $ | 10,578 | $ | 13,855 | ||||||||||||
Restructuring expenses¹ | 4,038 | 5,710 | ||||||||||||||
Current portion of liabilities on uncertain tax positions | — | 12,524 | ||||||||||||||
Other accrued expenses | 8,136 | 10,608 | ||||||||||||||
$ | 22,752 | $ | 42,697 | |||||||||||||
1 | Refer to Note 7 for further information on the Company’s impairment and restructuring activities during the three months ended March 31, 2015. | |||||||||||||||
Product Warranty Accrual | ||||||||||||||||
Changes in the product warranty accrual for the three months ended March 31, 2015 and 2014 were as follows: | ||||||||||||||||
Balance at | Warranty | Provision for | Balance at | |||||||||||||
January 1 | Expenditures | Estimated | March 31 | |||||||||||||
Warranty Cost | ||||||||||||||||
2015 | $ | 1,013 | $ | (464 | ) | $ | 256 | $ | 805 | |||||||
2014 | $ | 1,452 | $ | (1,234 | ) | $ | 1,596 | $ | 1,814 | |||||||
Net Income Per Share—Basic and Diluted | ||||||||||||||||
The following table presents a reconciliation of basic and diluted shares for the three months ended March 31, 2015 and 2014: | ||||||||||||||||
Three Months Ended | ||||||||||||||||
March 31, | ||||||||||||||||
2015 | 2014 | |||||||||||||||
Basic weighted-average number of common shares outstanding | 24,318,019 | 24,090,754 | ||||||||||||||
Dilutive effect of potential common shares | 782,762 | — | ||||||||||||||
Diluted weighted-average number of common and potential | 25,100,781 | 24,090,754 | ||||||||||||||
common shares outstanding | ||||||||||||||||
Potential common shares excluded from the per share | 637,105 | 934,394 | ||||||||||||||
computations as the effect of their inclusion would not | ||||||||||||||||
be dilutive | ||||||||||||||||
Commitments and Contingencies | ||||||||||||||||
Litigation | ||||||||||||||||
The Company is involved in litigation from time to time in the ordinary course of business. Management does not believe the outcome of any currently pending matters will have a material adverse effect on the Company’s financial position, results of operations or cash flows. | ||||||||||||||||
Other Commitments | ||||||||||||||||
The Company has outstanding purchase and other commitments, which exclude amounts already recorded on the Condensed Consolidated Balance Sheets. The outstanding purchase commitments to acquire capital assets and other materials and services totaled $10,499 and $8,791 as of March 31, 2015 and December 31, 2014, respectively. | ||||||||||||||||
Pursuant to the laws applicable to the People’s Republic of China’s Foreign Investment Enterprises, the Company’s two wholly owned subsidiaries in China, MFC and MFLEX Chengdu, are restricted from paying cash dividends on 10% of after-tax statutory profit, subject to certain cumulative limits. These restrictions as of March 31, 2015 and December 31, 2014 were $20,094 and $20,170, respectively. | ||||||||||||||||
Significant Concentrations | ||||||||||||||||
The Company’s net sales into its largest industry sectors, as a percentage of total net sales, are presented below: | ||||||||||||||||
Three Months Ended | ||||||||||||||||
March 31, | ||||||||||||||||
2015 | 2014 | |||||||||||||||
Smartphones | 75 | % | 74 | % | ||||||||||||
Tablets | 15 | % | 11 | % | ||||||||||||
Lines_of_Credit
Lines of Credit | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||
Lines of Credit | 3. Lines of Credit | |||||||||||||||
During August 2014, the Company, as guarantor, and MFLEX Singapore, as borrower, entered into a Loan and Security Agreement with certain financial institutions, as lenders, and Bank of America, N.A. (“BA”), as agent, providing for a senior revolving credit facility in an amount up to $30,000. The credit facility has a three-year term, and availability under the credit facility is calculated based on a formula which takes into account multiple factors, including the accounts receivable of borrower, the geographic location of borrower’s customer, and whether the customer’s receivable is insured by a third party. Amounts outstanding will bear interest at either: (1) a rate equal to LIBOR or SIBOR, plus an applicable margin, which ranges from 125 to 275 basis points, or (2) a defined base rate plus an applicable margin ranging from 75 to 275 basis points. In either case, the applicable margin is based on the fixed charge coverage ratio of the Company and its subsidiaries, measured on a consolidated basis. | ||||||||||||||||
During July 2013, MFC entered into a Line of General Credit Agreement (the “MFC Credit Line”) with Agricultural Bank of China, Suzhou Wuzhong Sub-branch (“ABC”), providing for a line of credit to MFC in an amount of 200,000 Chinese Renminbi (“RMB”) ($32,562 at March 31, 2015). The MFC Credit Line will mature on July 30, 2016. | ||||||||||||||||
During May 2013, MFC entered into a Line of Credit Agreement (the “CCB Credit Line”) with China Construction Bank, Suzhou Industry Park Sub-Branch (“CCB”), which provides for a borrowing facility for 300,000 RMB ($48,842 at March 31, 2015). The CCB Credit Line will mature on May 5, 2016. | ||||||||||||||||
A summary of the lines of credit is as follows: | ||||||||||||||||
Amounts Available at | Amounts Outstanding at | |||||||||||||||
March 31, | December 31, | March 31, | December 31, | |||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Line of credit (BA) | $ | 30,000 | $ | 30,000 | $ | — | $ | — | ||||||||
Line of credit (ABC) | 32,562 | 32,685 | — | — | ||||||||||||
Line of credit (CCB) | 48,842 | 49,028 | — | — | ||||||||||||
$ | 111,404 | $ | 111,713 | $ | — | $ | — | |||||||||
As of March 31, 2015, the Company was in compliance with all applicable financial covenants. |
Segment_Information
Segment Information | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Segment Reporting [Abstract] | ||||||||
Segment Information | 4. Segment Information | |||||||
Based on the evaluation of the Company’s internal financial information, management believes that the Company operates in one reportable segment under one reporting unit. The Company is primarily engaged in the engineering, design and manufacture of flexible circuit boards along with related component assemblies. For the periods presented, the Company operated in four geographical areas: United States, China, Singapore and Other (which includes Malaysia, Korea and the United Kingdom). Net sales are presented based on the country in which the sales originate, which is where the legal entity is domiciled. The financial results of the Company’s geographic segments are presented on a basis consistent with the condensed consolidated financial statements. The geographic area’s net sales amounts include intra-company product sales transactions, which are offset in the elimination line. | ||||||||
Net sales by geographic segment is as follows: | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2015 | 2014 | |||||||
Net sales | ||||||||
United States | $ | 3,237 | $ | 3,519 | ||||
China | 123,836 | 110,559 | ||||||
Singapore | 141,889 | 94,239 | ||||||
Other | 517 | 3,244 | ||||||
Eliminations | (120,380 | ) | (93,768 | ) | ||||
Total | $ | 149,099 | $ | 117,793 | ||||
StockBased_Compensation
Stock-Based Compensation | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||||||||
Stock-Based Compensation | 5. Stock-Based Compensation | |||||||
2014 Equity Incentive Plan | ||||||||
At the Company’s annual meeting of stockholders on March 5, 2014, the stockholders approved the Company’s 2014 Equity Incentive Plan (the “2014 Plan”). Upon stockholder approval of the 2014 Plan, the Company’s 2004 Stock Incentive Plan, as amended and restated to date (the “2004 Plan”) was terminated. | ||||||||
Restricted Stock Units | ||||||||
From time to time, the Company grants service-based restricted stock units (“RSUs”) under the 2014 Plan to certain employees (including executive officers) and directors at no cost to such individual. Each RSU represents one hypothetical share of the Company’s common stock, without voting or dividend rights. The RSUs granted to employees generally vest over a period of three years with one-third vesting on each of the anniversary dates of the grant date. Total compensation cost related to RSUs is determined based on the fair value of the Company’s common stock on the date of grant and is amortized into expense over the vesting period using the straight-line method. | ||||||||
RSU activity for the three months ended March 31, 2015 is summarized as follows: | ||||||||
Number of | Weighted | |||||||
Shares | -Average | |||||||
Grant-Date | ||||||||
Fair Value | ||||||||
Non-vested shares outstanding at December 31, 2014 | 1,568,365 | $ | 9.43 | |||||
Granted | 24,780 | 19.82 | ||||||
Vested | (39,616 | ) | 13.81 | |||||
Canceled | (16,200 | ) | 11 | |||||
Non-vested shares outstanding at March 31, 2015 | 1,537,329 | $ | 9.47 | |||||
RSU details for the three months ended March 31, 2015 and 2014 are summarized as follows: | ||||||||
Three Months Ended March 31, | ||||||||
2015 | 2014 | |||||||
Service-based RSUs granted | 24,780 | 49,116 | ||||||
Compensation cost recognized | $ | 1,220 | $ | 954 | ||||
Weighted-average grant-date fair value of non-vested RSUs granted | $ | 19.82 | $ | 13.89 | ||||
Weighted-average grant-date fair value of RSUs vested | $ | 13.81 | $ | 13.57 | ||||
Aggregate intrinsic value of RSUs vested | $ | 752 | $ | 25 | ||||
Unearned compensation as of March 31, 2015 was $8,889 related to non-vested RSUs, which will be recognized into expense over the weighted-average remaining contractual life of the non-vested RSUs of 2.2 years. | ||||||||
Stock-Based Compensation Expense Summary | ||||||||
The following table shows a summary of the stock-based compensation expense by expense type included in the Condensed Consolidated Statements of Comprehensive Income for the three months ended March 31, 2015 and 2014: | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2015 | 2014 | |||||||
Cost of sales | $ | 103 | $ | 62 | ||||
Research and development | 101 | 108 | ||||||
Sales and marketing | 163 | 149 | ||||||
General and administrative | 853 | 635 | ||||||
Total | $ | 1,220 | $ | 954 | ||||
Income_Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 6. Income Taxes |
As of March 31, 2015, the Company recorded a liability for income taxes associated with uncertain tax positions of $15,564, of which $6,965, if recognized, would favorably affect the Company’s effective tax rate. As of December 31, 2014, the total liability for income taxes associated with uncertain tax positions was $26,109, of which $17,510, if recognized, would favorably affect the Company’s effective tax rate. The decrease in liability was due to the settlement with the Chinese tax authority on its audit of MFC and MFC1 for tax years 2005 through 2011. The Company anticipates that there will be changes to the unrecognized tax benefit associated with uncertain tax positions due to the expiration of statutes of limitation, payment of tax on amended returns, audit settlements and other changes in reserves. However, due to the uncertainty regarding the timing of these events, other than the statute of limitation expiration, a current estimate of the range of changes that may occur within the next 12 months cannot be made. | |
The Chinese tax authority is currently auditing the income tax returns of MCH for tax years 2011 through 2014. The Chinese tax authority raised questions related to transfer pricing on tangible goods sold by the Company to related parties. The questions primarily related to the transfer pricing methodology and the selection of comparable companies. Discussions with the Chinese tax authority surrounding this issue are ongoing. Management believes that an adequate provision has been made related to this audit. | |
The outcome of these tax audits cannot be predicted with certainty. If any issues raised in the Company’s tax audits are resolved in a manner not consistent with management’s expectations, then the Company could be required to adjust its provision for income tax in the period such resolution occurs. Any significant adjustments from the tax authorities could have a material adverse effect on the Company’s results of operations, cash flows and financial position if not resolved favorably. |
Impairment_and_Restructuring
Impairment and Restructuring | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Restructuring And Related Activities [Abstract] | ||||||||||||||||
Impairment and Restructuring | ||||||||||||||||
7. Impairment and Restructuring | ||||||||||||||||
The Company recorded the following impairment and restructuring activities during the three months ended March 31, 2015 and 2014: | ||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||
2015 | 2014 | |||||||||||||||
Asset (recoveries) impairments | $ | -284 | $ | 11,549 | ||||||||||||
Gain on sale of a satellite facility | -1,101 | — | ||||||||||||||
One-time termination benefits | 13 | 8,664 | ||||||||||||||
Other costs | 192 | 4,585 | ||||||||||||||
Impairment and restructuring | $ | -1,180 | $ | 24,798 | ||||||||||||
Assets Held For Sale | ||||||||||||||||
During the three months ended March 31, 2015, the Company completed the sale of one of its satellite facilities in Suzhou, China, which resulted in a gain of $1,101. In addition, the Company recorded impairment recoveries of $(284) upon completing the sale of certain machinery and equipment previously classified as assets held for sale. As of March 31, 2015, the Company’s assets held for sale included a manufacturing facility in Chengdu, China, which is reflected in the financial statements at its estimated fair value less costs of disposal. | ||||||||||||||||
Assets Held and Used | ||||||||||||||||
During the three months ended March 31, 2015, given the continued operating profits, the Company noted no triggering events or indicators that the carrying value of its assets held and used are not recoverable. | ||||||||||||||||
Restructuring Reserve Activity | ||||||||||||||||
The following table reflects the movement activity of the restructuring reserve for the three months ended March 31, 2015: | ||||||||||||||||
One-Time Termination Benefits | Contract Termination Costs | Other Costs | Total Accrued Restructuring | |||||||||||||
Accrued at December 31, 2014 | $ | 542 | $ | -3 | $ | 5,171 | $ | 5,710 | ||||||||
Restructuring additions | 13 | — | 192 | 205 | ||||||||||||
Adjustment/foreign exchange effect | -108 | 3 | -264 | -309 | ||||||||||||
Amount paid | -192 | — | -1,316 | -1,508 | ||||||||||||
Accrued at March 31, 2015 | $ | 255 | $ | — | $ | 3,783 | $ | 4,038 | ||||||||
Basis_of_Presentation_Policies
Basis of Presentation (Policies) | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Accounting Policies [Abstract] | ||||||||||||||||
Principles of Consolidation | Principles of Consolidation | |||||||||||||||
The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. The Company has three wholly owned subsidiaries located in China: MFLEX Suzhou Co., Ltd., (“MFC”) , formerly known as Multi-Fineline Electronix (Suzhou No. 2) Co., Ltd. (“MFC2”) and into which Multi-Fineline Electronix (Suzhou) Co., Ltd (“MFC1” which we are in the process of de-registering) was merged in fiscal 2010, and MFLEX Chengdu Co., Ltd. (“MFLEX Chengdu”); one located in the Cayman Islands: M-Flex Cayman Islands, Inc. (“MFCI”); one located in Singapore: Multi-Fineline Electronix Singapore Pte. Ltd. (“MFLEX Singapore”); one located in Malaysia: Multi-Fineline Electronix Malaysia Sdn. Bhd. (“MFM”); one located in Cambridge, England: MFLEX UK Limited (“MFE”); one located in Korea: MFLEX Korea, Ltd. (“MKR”); and one located in the Netherlands: MFLEX B.V. (“MNE”). All significant intercompany transactions and balances have been eliminated in consolidation. | ||||||||||||||||
Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes contained in the Company’s Transition Report on Form 10-K for the transition period from October 1, 2014 to December 31, 2014 filed with the SEC on February 13, 2015 (the “Transition Report”). The financial information presented in the accompanying statements reflects all adjustments that are, in the opinion of management, necessary for a fair statement of the periods indicated. All such adjustments are of a normal recurring nature. The year-end condensed balance sheet data was derived from audited financial statements, but does not include all disclosures required by U.S. GAAP. Operating results for the three months ended March 31, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015. Unless otherwise indicated, the financial information in these notes is presented in thousands (except per share amounts). | ||||||||||||||||
Fair Value Measurements | Fair Value Measurements | |||||||||||||||
The carrying amounts of certain of the Company’s financial instruments, including cash, accounts receivable, accounts payable and accrued liabilities approximated fair value due to their short maturities. For recognition purposes, on a recurring basis, the Company’s assets and liabilities related to money market funds are measured at fair value at the end of each reporting period. The fair value of the Company’s money market funds were measured using Level 1 fair value inputs, which consisted of quoted market prices in active markets for identical assets and liabilities. | ||||||||||||||||
The Company’s assets and liabilities measured at fair value on a recurring basis subject to the disclosure requirements as defined under the Financial Accounting Standards Board (“FASB”) authoritative accounting guidance were as follows: | ||||||||||||||||
Fair Value Measurements of Assets and Liabilities | ||||||||||||||||
on a Recurring Basis as of | ||||||||||||||||
March 31, 2015 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | ||||||||||||||
Money market funds (cash and cash equivalents) | $ | 19,649 | $ | — | $ | — | ||||||||||
$ | 19,649 | $ | — | $ | — | |||||||||||
Fair Value Measurements of Assets and Liabilities | ||||||||||||||||
on a Recurring Basis as of | ||||||||||||||||
31-Dec-14 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | ||||||||||||||
Money market funds (cash and cash equivalents) | $ | 18,208 | $ | — | $ | — | ||||||||||
$ | 18,208 | $ | — | $ | — | |||||||||||
As of March 31, 2015, assets held for sale were measured at fair value on a non-recurring basis. The fair value of the assets was determined using Level 3 unobservable inputs not corroborated by market data, consisting of third-party offers for the building and equipment. Below is a summary of the Company’s assets measured at fair value on a non-recurring basis as of March 31, 2015 and December 31, 2014: | ||||||||||||||||
Fair Value Measurements of Assets | ||||||||||||||||
on a Non-Recurring Basis as of | ||||||||||||||||
March 31, 2015 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | ||||||||||||||
Building and equipment (assets held for sale) | $ — | $ — | $ 6,130 | |||||||||||||
$ — | $ — | $6,130 | ||||||||||||||
Fair Value Measurements of Assets | ||||||||||||||||
on a Non-Recurring Basis as of | ||||||||||||||||
31-Dec-14 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | ||||||||||||||
Building and equipment (assets held for sale) | $ | — | $ | — | $ | 11,387 | ||||||||||
$ | — | $ | — | $ | 11,387 | |||||||||||
Inventories | Inventories | |||||||||||||||
Inventories, net of applicable write-downs, were composed of the following: | ||||||||||||||||
March 31, | December 31, | |||||||||||||||
2015 | 2014 | |||||||||||||||
Raw materials and supplies | $ | 14,389 | $ | 19,268 | ||||||||||||
Work-in-progress | 16,804 | 15,713 | ||||||||||||||
Finished goods | 19,206 | 30,646 | ||||||||||||||
$ | 50,399 | $ | 65,627 | |||||||||||||
Property, Plant and Equipment | Property, Plant and Equipment | |||||||||||||||
Property, plant and equipment, net, were composed of the following: | ||||||||||||||||
March 31, | December 31, | |||||||||||||||
2015 | 2014 | |||||||||||||||
Building | $ | 50,259 | $ | 50,450 | ||||||||||||
Machinery and equipment | 333,375 | 334,539 | ||||||||||||||
Computers and capitalized software | 13,568 | 13,328 | ||||||||||||||
Leasehold improvements | 1,290 | 1,290 | ||||||||||||||
Construction-in-progress | 172 | 598 | ||||||||||||||
$ | 398,664 | $ | 400,205 | |||||||||||||
Accumulated depreciation and amortization | (245,759 | ) | (235,860 | ) | ||||||||||||
$ | 152,905 | $ | 164,345 | |||||||||||||
Other Current Liabilities | Other Current Liabilities | |||||||||||||||
Other current liabilities were composed of the following: | ||||||||||||||||
March 31, | December 31, | |||||||||||||||
2015 | 2014 | |||||||||||||||
Wages and compensation | $ | 10,578 | $ | 13,855 | ||||||||||||
Restructuring expenses¹ | 4,038 | 5,710 | ||||||||||||||
Current portion of liabilities on uncertain tax positions | — | 12,524 | ||||||||||||||
Other accrued expenses | 8,136 | 10,608 | ||||||||||||||
$ | 22,752 | $ | 42,697 | |||||||||||||
1 | Refer to Note 7 for further information on the Company’s impairment and restructuring activities during the three months ended March 31, 2015. | |||||||||||||||
Product Warranty Accrual | Product Warranty Accrual | |||||||||||||||
Changes in the product warranty accrual for the three months ended March 31, 2015 and 2014 were as follows: | ||||||||||||||||
Balance at | Warranty | Provision for | Balance at | |||||||||||||
January 1 | Expenditures | Estimated | March 31 | |||||||||||||
Warranty Cost | ||||||||||||||||
2015 | $ | 1,013 | $ | (464 | ) | $ | 256 | $ | 805 | |||||||
2014 | $ | 1,452 | $ | (1,234 | ) | $ | 1,596 | $ | 1,814 | |||||||
Net Income Per Share-Basic and Diluted | Net Income Per Share—Basic and Diluted | |||||||||||||||
The following table presents a reconciliation of basic and diluted shares for the three months ended March 31, 2015 and 2014: | ||||||||||||||||
Three Months Ended | ||||||||||||||||
March 31, | ||||||||||||||||
2015 | 2014 | |||||||||||||||
Basic weighted-average number of common shares outstanding | 24,318,019 | 24,090,754 | ||||||||||||||
Dilutive effect of potential common shares | 782,762 | — | ||||||||||||||
Diluted weighted-average number of common and potential | 25,100,781 | 24,090,754 | ||||||||||||||
common shares outstanding | ||||||||||||||||
Potential common shares excluded from the per share | 637,105 | 934,394 | ||||||||||||||
computations as the effect of their inclusion would not | ||||||||||||||||
be dilutive | ||||||||||||||||
Commitments and Contingencies | Commitments and Contingencies | |||||||||||||||
Litigation | ||||||||||||||||
The Company is involved in litigation from time to time in the ordinary course of business. Management does not believe the outcome of any currently pending matters will have a material adverse effect on the Company’s financial position, results of operations or cash flows. | ||||||||||||||||
Other Commitments | ||||||||||||||||
The Company has outstanding purchase and other commitments, which exclude amounts already recorded on the Condensed Consolidated Balance Sheets. The outstanding purchase commitments to acquire capital assets and other materials and services totaled $10,499 and $8,791 as of March 31, 2015 and December 31, 2014, respectively. | ||||||||||||||||
Pursuant to the laws applicable to the People’s Republic of China’s Foreign Investment Enterprises, the Company’s two wholly owned subsidiaries in China, MFC and MFLEX Chengdu, are restricted from paying cash dividends on 10% of after-tax statutory profit, subject to certain cumulative limits. These restrictions as of March 31, 2015 and December 31, 2014 were $20,094 and $20,170, respectively. | ||||||||||||||||
Significant Concentrations | Significant Concentrations | |||||||||||||||
The Company’s net sales into its largest industry sectors, as a percentage of total net sales, are presented below: | ||||||||||||||||
Three Months Ended | ||||||||||||||||
March 31, | ||||||||||||||||
2015 | 2014 | |||||||||||||||
Smartphones | 75 | % | 74 | % | ||||||||||||
Tablets | 15 | % | 11 | % | ||||||||||||
Description Of Business | Description of Business | |||||||||||||||
Multi-Fineline Electronix, Inc. (“MFLEX” or the “Company”) was incorporated in 1984 in the State of California and reincorporated in the State of Delaware in June 2004. The Company is primarily engaged in the engineering, design and manufacture of flexible printed circuit boards along with related component assemblies. | ||||||||||||||||
United Engineers Limited (“UEL”) and its wholly owned subsidiary, UE Centennial Venture Pte. Ltd (“UECV”, and together with UEL, “UE”), through its affiliates and subsidiaries, beneficially owned approximately 61% of the Company’s outstanding common stock as of each of March 31, 2015 and December 31, 2014. This beneficial ownership of the Company’s common stock by UE provides these entities with control over the outcome of stockholder votes at the Company, except with respect to certain related-party transactions with UE or its subsidiaries, including WBL Corporation Limited (“WBL”), which require a separate vote of the non-UE stockholders. |
Basis_of_Presentation_Tables
Basis of Presentation (Tables) | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Accounting Policies [Abstract] | ||||||||||||||||
Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis | The Company’s assets and liabilities measured at fair value on a recurring basis subject to the disclosure requirements as defined under the Financial Accounting Standards Board (“FASB”) authoritative accounting guidance were as follows: | |||||||||||||||
Fair Value Measurements of Assets and Liabilities | ||||||||||||||||
on a Recurring Basis as of | ||||||||||||||||
March 31, 2015 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | ||||||||||||||
Money market funds (cash and cash equivalents) | $ | 19,649 | $ | — | $ | — | ||||||||||
$ | 19,649 | $ | — | $ | — | |||||||||||
Fair Value Measurements of Assets and Liabilities | ||||||||||||||||
on a Recurring Basis as of | ||||||||||||||||
31-Dec-14 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | ||||||||||||||
Money market funds (cash and cash equivalents) | $ | 18,208 | $ | — | $ | — | ||||||||||
$ | 18,208 | $ | — | $ | — | |||||||||||
Schedule of Assets Held For Sale Measured at Fair Value on Nonrecurring Basis | Below is a summary of the Company’s assets measured at fair value on a non-recurring basis as of March 31, 2015 and December 31, 2014: | |||||||||||||||
Fair Value Measurements of Assets | ||||||||||||||||
on a Non-Recurring Basis as of | ||||||||||||||||
March 31, 2015 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | ||||||||||||||
Building and equipment (assets held for sale) | $ — | $ — | $ 6,130 | |||||||||||||
$ — | $ — | $6,130 | ||||||||||||||
Fair Value Measurements of Assets | ||||||||||||||||
on a Non-Recurring Basis as of | ||||||||||||||||
31-Dec-14 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | ||||||||||||||
Building and equipment (assets held for sale) | $ | — | $ | — | $ | 11,387 | ||||||||||
$ | — | $ | — | $ | 11,387 | |||||||||||
Components of Inventories, Net of Applicable Write-Downs | Inventories, net of applicable write-downs, were composed of the following: | |||||||||||||||
March 31, | December 31, | |||||||||||||||
2015 | 2014 | |||||||||||||||
Raw materials and supplies | $ | 14,389 | $ | 19,268 | ||||||||||||
Work-in-progress | 16,804 | 15,713 | ||||||||||||||
Finished goods | 19,206 | 30,646 | ||||||||||||||
$ | 50,399 | $ | 65,627 | |||||||||||||
Components of Property, Plant and Equipment | Property, plant and equipment, net, were composed of the following: | |||||||||||||||
March 31, | December 31, | |||||||||||||||
2015 | 2014 | |||||||||||||||
Building | $ | 50,259 | $ | 50,450 | ||||||||||||
Machinery and equipment | 333,375 | 334,539 | ||||||||||||||
Computers and capitalized software | 13,568 | 13,328 | ||||||||||||||
Leasehold improvements | 1,290 | 1,290 | ||||||||||||||
Construction-in-progress | 172 | 598 | ||||||||||||||
$ | 398,664 | $ | 400,205 | |||||||||||||
Accumulated depreciation and amortization | (245,759 | ) | (235,860 | ) | ||||||||||||
$ | 152,905 | $ | 164,345 | |||||||||||||
Components of Other Current Liabilities | Other current liabilities were composed of the following: | |||||||||||||||
March 31, | December 31, | |||||||||||||||
2015 | 2014 | |||||||||||||||
Wages and compensation | $ | 10,578 | $ | 13,855 | ||||||||||||
Restructuring expenses¹ | 4,038 | 5,710 | ||||||||||||||
Current portion of liabilities on uncertain tax positions | — | 12,524 | ||||||||||||||
Other accrued expenses | 8,136 | 10,608 | ||||||||||||||
$ | 22,752 | $ | 42,697 | |||||||||||||
1 | Refer to Note 7 for further information on the Company’s impairment and restructuring activities during the three months ended March 31, 2015. | |||||||||||||||
Changes in the Product Warranty Accrual | Changes in the product warranty accrual for the three months ended March 31, 2015 and 2014 were as follows: | |||||||||||||||
Balance at | Warranty | Provision for | Balance at | |||||||||||||
January 1 | Expenditures | Estimated | March 31 | |||||||||||||
Warranty Cost | ||||||||||||||||
2015 | $ | 1,013 | $ | (464 | ) | $ | 256 | $ | 805 | |||||||
2014 | $ | 1,452 | $ | (1,234 | ) | $ | 1,596 | $ | 1,814 | |||||||
Reconciliation of Basic and Diluted Shares | The following table presents a reconciliation of basic and diluted shares for the three months ended March 31, 2015 and 2014: | |||||||||||||||
Three Months Ended | ||||||||||||||||
March 31, | ||||||||||||||||
2015 | 2014 | |||||||||||||||
Basic weighted-average number of common shares outstanding | 24,318,019 | 24,090,754 | ||||||||||||||
Dilutive effect of potential common shares | 782,762 | — | ||||||||||||||
Diluted weighted-average number of common and potential | 25,100,781 | 24,090,754 | ||||||||||||||
common shares outstanding | ||||||||||||||||
Potential common shares excluded from the per share | 637,105 | 934,394 | ||||||||||||||
computations as the effect of their inclusion would not | ||||||||||||||||
be dilutive | ||||||||||||||||
Company's Sales into its Largest Industry Sectors | The Company’s net sales into its largest industry sectors, as a percentage of total net sales, are presented below: | |||||||||||||||
Three Months Ended | ||||||||||||||||
March 31, | ||||||||||||||||
2015 | 2014 | |||||||||||||||
Smartphones | 75 | % | 74 | % | ||||||||||||
Tablets | 15 | % | 11 | % | ||||||||||||
Lines_of_Credit_Tables
Lines of Credit (Tables) | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||
Summary of the Lines of Credit | A summary of the lines of credit is as follows: | |||||||||||||||
Amounts Available at | Amounts Outstanding at | |||||||||||||||
March 31, | December 31, | March 31, | December 31, | |||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Line of credit (BA) | $ | 30,000 | $ | 30,000 | $ | — | $ | — | ||||||||
Line of credit (ABC) | 32,562 | 32,685 | — | — | ||||||||||||
Line of credit (CCB) | 48,842 | 49,028 | — | — | ||||||||||||
$ | 111,404 | $ | 111,713 | $ | — | $ | — | |||||||||
Segment_Information_Tables
Segment Information (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Segment Reporting [Abstract] | ||||||||
Net Sales by Geographic Segment | Net sales by geographic segment is as follows: | |||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2015 | 2014 | |||||||
Net sales | ||||||||
United States | $ | 3,237 | $ | 3,519 | ||||
China | 123,836 | 110,559 | ||||||
Singapore | 141,889 | 94,239 | ||||||
Other | 517 | 3,244 | ||||||
Eliminations | (120,380 | ) | (93,768 | ) | ||||
Total | $ | 149,099 | $ | 117,793 | ||||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||||||||
Restricted Stock Units Activity | RSU activity for the three months ended March 31, 2015 is summarized as follows: | |||||||
Number of | Weighted | |||||||
Shares | -Average | |||||||
Grant-Date | ||||||||
Fair Value | ||||||||
Non-vested shares outstanding at December 31, 2014 | 1,568,365 | $ | 9.43 | |||||
Granted | 24,780 | 19.82 | ||||||
Vested | (39,616 | ) | 13.81 | |||||
Canceled | (16,200 | ) | 11 | |||||
Non-vested shares outstanding at March 31, 2015 | 1,537,329 | $ | 9.47 | |||||
Restricted Stock Units Details | RSU details for the three months ended March 31, 2015 and 2014 are summarized as follows: | |||||||
Three Months Ended March 31, | ||||||||
2015 | 2014 | |||||||
Service-based RSUs granted | 24,780 | 49,116 | ||||||
Compensation cost recognized | $ | 1,220 | $ | 954 | ||||
Weighted-average grant-date fair value of non-vested RSUs granted | $ | 19.82 | $ | 13.89 | ||||
Weighted-average grant-date fair value of RSUs vested | $ | 13.81 | $ | 13.57 | ||||
Aggregate intrinsic value of RSUs vested | $ | 752 | $ | 25 | ||||
Summary of Compensation Cost | The following table shows a summary of the stock-based compensation expense by expense type included in the Condensed Consolidated Statements of Comprehensive Income for the three months ended March 31, 2015 and 2014: | |||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2015 | 2014 | |||||||
Cost of sales | $ | 103 | $ | 62 | ||||
Research and development | 101 | 108 | ||||||
Sales and marketing | 163 | 149 | ||||||
General and administrative | 853 | 635 | ||||||
Total | $ | 1,220 | $ | 954 | ||||
Impairment_and_Restructuring_T
Impairment and Restructuring (Tables) | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Restructuring And Related Activities [Abstract] | ||||||||||||||||
Schedule of Impairment and Restructuring Charges | The Company recorded the following impairment and restructuring activities during the three months ended March 31, 2015 and 2014: | |||||||||||||||
Three Months Ended March 31, | ||||||||||||||||
2015 | 2014 | |||||||||||||||
Asset (recoveries) impairments | $ | -284 | $ | 11,549 | ||||||||||||
Gain on sale of a satellite facility | -1,101 | — | ||||||||||||||
One-time termination benefits | 13 | 8,664 | ||||||||||||||
Other costs | 192 | 4,585 | ||||||||||||||
Impairment and restructuring | $ | -1,180 | $ | 24,798 | ||||||||||||
Activity of Restructuring Reserve | The following table reflects the movement activity of the restructuring reserve for the three months ended March 31, 2015: | |||||||||||||||
One-Time Termination Benefits | Contract Termination Costs | Other Costs | Total Accrued Restructuring | |||||||||||||
Accrued at December 31, 2014 | $ | 542 | $ | -3 | $ | 5,171 | $ | 5,710 | ||||||||
Restructuring additions | 13 | — | 192 | 205 | ||||||||||||
Adjustment/foreign exchange effect | -108 | 3 | -264 | -309 | ||||||||||||
Amount paid | -192 | — | -1,316 | -1,508 | ||||||||||||
Accrued at March 31, 2015 | $ | 255 | $ | — | $ | 3,783 | $ | 4,038 | ||||||||
Description_of_Business_Additi
Description of Business - Additional Information (Detail) | Mar. 31, 2015 | Dec. 31, 2014 |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | ||
Percentage of shares owned by affiliates and subsidiaries of WBL Corporation Limited | 61.00% | 61.00% |
Basis_of_Presentation_Addition
Basis of Presentation - Additional Information (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||
Outstanding purchase and other commitments | $10,499 | $8,791 |
Restrictions on net income | $20,094 | $20,170 |
Percentage of restricted after-tax profits from paying cash dividends | 10.00% | |
China | ||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||
Number of wholly owned subsidiaries | 3 | |
Cayman | ||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||
Number of wholly owned subsidiaries | 1 | |
Singapore | ||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||
Number of wholly owned subsidiaries | 1 | |
Malaysia | ||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||
Number of wholly owned subsidiaries | 1 | |
England | ||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||
Number of wholly owned subsidiaries | 1 | |
Korea | ||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||
Number of wholly owned subsidiaries | 1 | |
Netherlands | ||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||
Number of wholly owned subsidiaries | 1 |
Basis_of_Presentation_Schedule
Basis of Presentation - Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis (Detail) (Fair Value, Measurements, Recurring, Level 1, USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fair value of assets , Total | $19,649 | $18,208 |
Money market funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Money market funds (cash and cash equivalents) | $19,649 | $18,208 |
Basis_of_Presentation_Schedule1
Basis of Presentation - Schedule of Assets Held For Sale Measured at Fair Value on Nonrecurring Basis (Detail) (Fair Value, Measurements, Nonrecurring, Level 3, USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets held for sale | $6,130 | $11,387 |
Building And Equipment | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets held for sale | $6,130 | $11,387 |
Basis_of_Presentation_Componen
Basis of Presentation - Components of Inventories, Net of Applicable Write-Downs (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ||
Raw materials and supplies | $14,389 | $19,268 |
Work-in-progress | 16,804 | 15,713 |
Finished goods | 19,206 | 30,646 |
Inventories, net | $50,399 | $65,627 |
Basis_of_Presentation_Componen1
Basis of Presentation - Components of Property, Plant and Equipment (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | $398,664 | $400,205 |
Accumulated depreciation and amortization | -245,759 | -235,860 |
Property, plant and equipment, net | 152,905 | 164,345 |
Building | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | 50,259 | 50,450 |
Machinery and equipment | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | 333,375 | 334,539 |
Computers and capitalized software | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | 13,568 | 13,328 |
Leasehold improvements | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | 1,290 | 1,290 |
Construction-in-progress | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | $172 | $598 |
Basis_of_Presentation_Componen2
Basis of Presentation - Components of Other Current Liabilities (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Other Liabilities Current [Abstract] | ||
Wages and compensation | $10,578 | $13,855 |
Restructuring expensesB9 | 4,038 | 5,710 |
Current portion of liabilities on uncertain tax positions | 12,524 | |
Other accrued expenses | 8,136 | 10,608 |
Other current liabilities | $22,752 | $42,697 |
Basis_of_Presentation_Changes_
Basis of Presentation - Changes in the Product Warranty Accrual (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Guarantees [Abstract] | ||
Beginning Balance | $1,013 | $1,452 |
Warranty Expenditures | -464 | -1,234 |
Provision for Estimated Warranty Cost | 256 | 1,596 |
Ending Balance | $805 | $1,814 |
Basis_of_Presentation_Reconcil
Basis of Presentation - Reconciliation of Basic and Diluted Shares (Detail) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Weighted Average Number Of Shares Outstanding Diluted Disclosure Items [Abstract] | ||
Basic weighted-average number of common shares outstanding | 24,318,019 | 24,090,754 |
Dilutive effect of potential common shares | 782,762 | |
Diluted weighted-average number of common and potential common shares outstanding | 25,100,781 | 24,090,754 |
Potential common shares excluded from the per share computations as the effect of their inclusion would not be dilutive | 637,105 | 934,394 |
Basis_of_Presentation_Companys
Basis of Presentation - Company's Sales into its Largest Industry Sectors (Detail) (Product Concentration Risk, Sales Revenue, Product Line) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Smartphones | ||
Concentration Risk [Line Items] | ||
Percentage of net sales to largest industry sectors | 75.00% | 74.00% |
Tablets | ||
Concentration Risk [Line Items] | ||
Percentage of net sales to largest industry sectors | 15.00% | 11.00% |
Lines_of_Credit_Additional_Inf
Lines of Credit - Additional Information (Detail) | Mar. 31, 2015 | Dec. 31, 2014 | Aug. 31, 2014 | Mar. 31, 2015 | Dec. 31, 2014 | Aug. 31, 2014 | Aug. 31, 2014 | Aug. 31, 2014 | Aug. 31, 2014 | Mar. 31, 2015 | Dec. 31, 2014 | Jul. 31, 2013 | Mar. 31, 2015 | Dec. 31, 2014 | 31-May-13 |
In Thousands, unless otherwise specified | USD ($) | USD ($) | Bank of America | Bank of America | Bank of America | Bank of America | Bank of America | Bank of America | Bank of America | Agricultural Bank of China | Agricultural Bank of China | Agricultural Bank of China | China Construction Bank | China Construction Bank | China Construction Bank |
USD ($) | USD ($) | USD ($) | Minimum | Minimum | Maximum | Maximum | USD ($) | USD ($) | CNY | USD ($) | USD ($) | CNY | |||
LIBOR or SIBOR | Basis Rate | LIBOR or SIBOR | Basis Rate | ||||||||||||
Line Of Credit Facility [Line Items] | |||||||||||||||
Borrowing capacity under Line of Credit Agreement | $111,404 | $111,713 | $30,000 | $30,000 | $30,000 | $32,562 | $32,685 | 200,000 | $48,842 | $49,028 | 300,000 | ||||
Revolving credit facility, term | 3 years | ||||||||||||||
Loan interest rate spread | 1.25% | 0.75% | 2.75% | 2.75% | |||||||||||
Line of credit, maturity date | 30-Jul-16 | 5-May-16 |
Lines_of_Credit_Summary_of_the
Lines of Credit - Summary of the Lines of Credit (Detail) | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | Dec. 31, 2014 | Aug. 31, 2014 | Mar. 31, 2015 | Dec. 31, 2014 | Jul. 31, 2013 | Mar. 31, 2015 | Dec. 31, 2014 | 31-May-13 |
In Thousands, unless otherwise specified | USD ($) | USD ($) | Bank of America | Bank of America | Bank of America | Agricultural Bank of China | Agricultural Bank of China | Agricultural Bank of China | China Construction Bank | China Construction Bank | China Construction Bank |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | CNY | USD ($) | USD ($) | CNY | |||
Line Of Credit Facility [Line Items] | |||||||||||
Line of credit, Amount Available | $111,404 | $111,713 | $30,000 | $30,000 | $30,000 | $32,562 | $32,685 | 200,000 | $48,842 | $49,028 | 300,000 |
Line of credit, Amount Outstanding | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Segment_Information_Additional
Segment Information - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2015 | |
Segment | |
Segment Reporting [Abstract] | |
Number of reportable segment | 1 |
Number of geographical segment | 4 |
Number of reporting unit | 1 |
Segment_Information_Net_Sales_
Segment Information - Net Sales by Geographic Segment (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Segment Reporting Information [Line Items] | ||
Net sales | $149,099 | $117,793 |
Reportable Geographical Components | United States | ||
Segment Reporting Information [Line Items] | ||
Net sales | 3,237 | 3,519 |
Reportable Geographical Components | China | ||
Segment Reporting Information [Line Items] | ||
Net sales | 123,836 | 110,559 |
Reportable Geographical Components | Singapore | ||
Segment Reporting Information [Line Items] | ||
Net sales | 141,889 | 94,239 |
Reportable Geographical Components | Other | ||
Segment Reporting Information [Line Items] | ||
Net sales | 517 | 3,244 |
Eliminations | ||
Segment Reporting Information [Line Items] | ||
Net sales | ($120,380) | ($93,768) |
StockBased_Compensation_Additi
Stock-Based Compensation - Additional Information (Detail) (Restricted Stock Units, USD $) | 3 Months Ended |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 |
Restricted Stock Units | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of hypothetical shares | 1 |
Vesting period | 3 years |
RSUs Vesting description | one-third |
Unearned compensation related to non-vested RSUs | $8,889 |
Unearned compensation related to non-vested RSUs, weighted-average remaining contractual life (in years) | 2 years 2 months 12 days |
StockBased_Compensation_Restri
Stock-Based Compensation - Restricted Stock Units Activity (Detail) (USD $) | 3 Months Ended |
Mar. 31, 2015 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Number of Shares, Non-vested shares outstanding, Beginning Balance | 1,568,365 |
Number of Shares, Granted | 24,780 |
Number of Shares, Vested | -39,616 |
Number of Shares, Canceled | -16,200 |
Number of Shares, Non-vested shares outstanding, Ending Balance | 1,537,329 |
Weighted-Average Grant-Date Fair Value of non-vested shares outstanding, Beginning Balance | $9.43 |
Weighted-Average Grant-Date Fair Value, Granted | $19.82 |
Weighted-Average Grant-Date Fair Value, Vested | $13.81 |
Weighted-Average Grant-Date Fair Value, Canceled | $11 |
Weighted-Average Exercise Price, SSARs outstanding, Ending Balance | $9.47 |
StockBased_Compensation_Restri1
Stock-Based Compensation - Restricted Stock Units Details (Detail) (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Number of Shares, Granted | 24,780 | |
Compensation cost recognized | $1,220 | $954 |
Weighted-average grant-date fair value of non-vested RSUs granted | $19.82 | |
Weighted-average grant-date fair value of RSUs vested | $13.81 | |
Restricted Stock Unit Service-Based | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Number of Shares, Granted | 24,780 | 49,116 |
Restricted Stock Units | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Compensation cost recognized | 1,220 | 954 |
Weighted-average grant-date fair value of non-vested RSUs granted | $19.82 | $13.89 |
Weighted-average grant-date fair value of RSUs vested | $13.81 | $13.57 |
Aggregate intrinsic value of RSUs vested | $752 | $25 |
StockBased_Compensation_Summar
Stock-Based Compensation - Summary of Compensation Expense (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | $1,220 | $954 |
Cost of sales | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | 103 | 62 |
Research and development | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | 101 | 108 |
Sales and marketing | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | 163 | 149 |
General and administrative | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | $853 | $635 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Income Tax Disclosure [Abstract] | ||
Liability for income taxes associated with uncertain tax positions, Gross | $15,564 | $26,109 |
Liability for income taxes associated with uncertain tax positions that would have impact effective tax rate | $6,965 | $17,510 |
Impairment_and_Restructuring_S
Impairment and Restructuring - Summary of Impairment and Restructuring Charges (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Restructuring Costs And Asset Impairment Charges [Abstract] | ||
Asset (recoveries) impairments | ($284) | $11,549 |
Gain on sale of a satellite facility | -1,101 | |
One-time termination benefits | 13 | 8,664 |
Other costs | 192 | 4,585 |
Impairment and restructuring | ($1,180) | $24,798 |
Impairment_and_Restructuring_A
Impairment and Restructuring - Additional Information (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Restructuring Cost And Reserve [Line Items] | ||
Asset (recoveries) impairments | ($284) | $11,549 |
Gain on sale of a satellite facility | 1,101 | |
Suzhou China | ||
Restructuring Cost And Reserve [Line Items] | ||
Asset (recoveries) impairments | -284 | |
Gain on sale of a satellite facility | $1,101 |
Impairment_and_Restructuring_A1
Impairment and Restructuring - Activity of Restructuring Reserve (Detail) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2015 |
Restructuring Cost And Reserve [Line Items] | |
Accrued, Beginning balance | $5,710 |
Restructuring additions | 205 |
Adjustment/foreign exchange effect | -309 |
Amount paid | -1,508 |
Accrued, Ending balance | 4,038 |
One-Time Termination Benefits | |
Restructuring Cost And Reserve [Line Items] | |
Accrued, Beginning balance | 542 |
Restructuring additions | 13 |
Adjustment/foreign exchange effect | -108 |
Amount paid | -192 |
Accrued, Ending balance | 255 |
Contract Termination | |
Restructuring Cost And Reserve [Line Items] | |
Accrued, Beginning balance | -3 |
Adjustment/foreign exchange effect | 3 |
Other Restructuring | |
Restructuring Cost And Reserve [Line Items] | |
Accrued, Beginning balance | 5,171 |
Restructuring additions | 192 |
Adjustment/foreign exchange effect | -264 |
Amount paid | -1,316 |
Accrued, Ending balance | $3,783 |