Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Jun. 28, 2014 | Aug. 01, 2014 | |
Document Information [Line Items] | ' | ' |
Entity Registrant Name | 'LATTICE SEMICONDUCTOR CORP | ' |
Entity Central Index Key | '0000855658 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 28-Jun-14 | ' |
Amendment Flag | 'false | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
Current Fiscal Year End Date | '--01-03 | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding (actual number) | ' | 118,555,476 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jun. 28, 2014 | Jun. 29, 2013 | Jun. 28, 2014 | Jun. 29, 2013 |
Income Statement [Abstract] | ' | ' | ' | ' |
Revenue | $99,320 | $84,694 | $195,957 | $155,852 |
Costs and expenses: | ' | ' | ' | ' |
Cost of products sold | 44,345 | 39,584 | 86,844 | 72,587 |
Research and development | 22,302 | 20,267 | 43,541 | 38,381 |
Selling, general and administrative | 18,832 | 17,072 | 37,581 | 33,570 |
Amortization of intangible assets | 737 | 737 | 1,474 | 1,486 |
Restructuring charges | 3 | 19 | 14 | 172 |
Costs and expenses | 86,219 | 77,679 | 169,454 | 146,196 |
Income from operations | 13,101 | 7,015 | 26,503 | 9,656 |
Other income (expense), net | 906 | -54 | 1,215 | -106 |
Income before income taxes | 14,007 | 6,961 | 27,718 | 9,550 |
Provision for income taxes | 2,236 | 1,921 | 3,963 | 2,620 |
Net income | $11,771 | $5,040 | $23,755 | $6,930 |
Net income per share: | ' | ' | ' | ' |
Basic (in dollars per share) | $0.10 | $0.04 | $0.20 | $0.06 |
Diluted (in dollars per share) | $0.10 | $0.04 | $0.20 | $0.06 |
Shares used in per share calculations: | ' | ' | ' | ' |
Basic (in shares) | 117,904 | 115,733 | 117,170 | 115,562 |
Diluted (in shares) | 120,944 | 117,109 | 120,041 | 116,935 |
Consolidated_Statement_of_Comp
Consolidated Statement of Comprehensive Income Statement (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 28, 2014 | Jun. 29, 2013 | Jun. 28, 2014 | Jun. 29, 2013 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' |
Net Income | $11,771 | $5,040 | $23,755 | $6,930 |
Unrealized loss related to marketable securities, net | -19 | -84 | -70 | -232 |
Realized gain on sale of auction rate securities, previously unrealized, net of tax | -1,147 | 0 | -1,147 | 0 |
Less: reclassification adjustment for losses included in other income (expense), net | 108 | 229 | 99 | 302 |
Translation adjustment | 914 | -265 | 738 | -430 |
Comprehensive Income | $11,627 | $4,920 | $23,375 | $6,570 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Jun. 28, 2014 | Dec. 28, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $137,976 | $114,310 |
Short-term marketable securities | 109,061 | 101,505 |
Accounts receivable, net | 66,289 | 50,085 |
Inventories | 59,270 | 46,222 |
Prepaid expenses and other current assets | 13,857 | 13,679 |
Total current assets | 386,453 | 325,801 |
Property and equipment, less accumulated depreciation | 41,132 | 41,719 |
Long-term marketable securities | 0 | 5,241 |
Other long-term assets | 8,921 | 6,120 |
Intangible assets, net of amortization | 11,011 | 12,484 |
Goodwill | 44,808 | 44,808 |
Deferred income taxes | 9,325 | 11,703 |
Total assets | 501,650 | 447,876 |
Current liabilities: | ' | ' |
Accounts payable and accrued expenses | 37,774 | 37,454 |
Accrued payroll obligations | 10,500 | 13,659 |
Deferred income and allowances on sales to sell-through distributors | 23,631 | 7,495 |
Total current liabilities | 71,905 | 58,608 |
Long-term liabilities | 7,195 | 3,588 |
Total liabilities | 79,100 | 62,196 |
Commitments and contingencies | ' | ' |
Stockholders' equity: | ' | ' |
Preferred stock, $.01 par value, 10,000,000 shares authorized, none issued and outstanding | 0 | 0 |
Common stock, $.01 par value, 300,000,000 shares authorized, 118,364,668 and 115,671,000 shares issued and outstanding | 1,184 | 1,157 |
Paid-in capital | 640,329 | 626,861 |
Accumulated other comprehensive loss | -525 | -145 |
Accumulated deficit | -218,438 | -242,193 |
Total stockholders' equity | 422,550 | 385,680 |
Total liabilities and stockholders' equity | $501,650 | $447,876 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets Parentheticals (USD $) | Jun. 28, 2014 | Dec. 28, 2013 |
Statement of Financial Position [Abstract] | ' | ' |
Preferred stock, par value per share (in dollars per share) | $0.01 | $0.01 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value per share (in dollars per share) | $0.01 | $0.01 |
Common stock, shares authorized | 300,000,000 | 300,000,000 |
Common stock, shares issued | 118,364,668 | 115,671,000 |
Common stock, shares outstanding | 118,364,668 | 115,671,000 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Cash Flows (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 28, 2014 | Jun. 29, 2013 |
Cash flows from operating activities: | ' | ' |
Net Income | $23,755 | $6,930 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 11,633 | 9,962 |
Change in deferred income tax provision | 2,824 | 2,108 |
Gain on sale of auction rate securities | -1,698 | 0 |
Stock-based compensation | 6,410 | 4,423 |
Changes in assets and liabilities: | ' | ' |
Accounts receivable, net | -16,204 | -16,658 |
Inventories | -13,048 | -5,460 |
Prepaid expenses and other assets | -1,632 | -2,054 |
Accounts payable and accrued expenses | -962 | -4,726 |
Accrued payroll obligations | -3,159 | 3,045 |
Deferred income and allowances on sales to sell-through distributors | 16,136 | 3,337 |
Net cash provided by operating activities | 24,055 | 907 |
Cash flows from investing activities: | ' | ' |
Proceeds from sales or maturities of short-term marketable securities | 45,836 | 36,196 |
Proceeds from sales of auction rate securities | 5,488 | 0 |
Purchase of marketable securities | -53,366 | -46,209 |
Capital expenditures | -4,875 | -6,837 |
Other investing activities, primarily time based software licenses | -1,359 | -1,519 |
Net cash used in investing activities | -8,276 | -18,369 |
Cash flows from financing activities: | ' | ' |
Net share settlement upon issuance of RSUs | -2,334 | -431 |
Purchase of treasury stock | 0 | -2,452 |
Net proceeds from issuance of common stock | 9,419 | 1,515 |
Net cash provided by (used in) financing activities | 7,085 | -1,368 |
Effect of exchange rate change on cash | 802 | -430 |
Net increase (decrease) in cash and cash equivalents | 23,666 | -19,260 |
Beginning cash and cash equivalents | 114,310 | 118,536 |
Ending cash and cash equivalents | 137,976 | 99,276 |
Supplemental cash flow information: | ' | ' |
Unrealized loss related to marketable securities, net, included in Accumulated other comprehensive income | 29 | 70 |
Income taxes paid, net of refunds | 798 | 956 |
Increase in fixed assets related to asset retirement obligations | 249 | 0 |
Accrued purchases of plant and equipment | $58 | ($528) |
Basis_of_Presentation_and_Sign
Basis of Presentation and Significant Accounting Policies | 6 Months Ended | ||||||||
Jun. 28, 2014 | |||||||||
Accounting Policies [Abstract] | ' | ||||||||
Basis of Presentation and Significant Accounting Policies | ' | ||||||||
Basis of Presentation and Significant Accounting Policies: | |||||||||
The accompanying Consolidated Financial Statements are unaudited and have been prepared by Lattice Semiconductor Corporation (“Lattice,” the “Company,” “we,” “us,” or “our”) pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) and in our opinion include all adjustments, consisting of normal recurring adjustments, necessary for the fair statement of results for the interim periods. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles ("U.S. GAAP") have been condensed or omitted pursuant to such rules and regulations. These Consolidated Financial Statements should be read in conjunction with our audited financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended December 28, 2013. | |||||||||
We report based on a 52 or 53-week fiscal year ending on the Saturday closest to December 31. Our second quarter of fiscal 2014 and second quarter of fiscal 2013 ended on June 28, 2014 and June 29, 2013, respectively. All references to quarterly, three or six months ended financial results are references to the results for the relevant fiscal period. | |||||||||
Principles of Consolidation | |||||||||
The accompanying Consolidated Financial Statements include the accounts of Lattice and its subsidiaries, all of which are wholly-owned, after the elimination of all intercompany balances and transactions. Certain balances in prior fiscal years have been reclassified to conform to the presentation adopted in the current year. | |||||||||
Cash Equivalents and Marketable Securities | |||||||||
We consider all investments that are readily convertible into cash and have original maturities of three months or less, to be cash equivalents. Cash equivalents consist primarily of highly liquid investments in time deposits or money market accounts and are carried at cost. We account for marketable securities as available for sale with unrealized gains or losses recorded to Accumulated other comprehensive loss, unless losses are considered other-than-temporary, in which case, losses are charged to the Consolidated Statements of Operations. | |||||||||
Fair Value of Financial Instruments | |||||||||
We invest in various financial instruments including corporate and government bonds, notes, commercial paper and auction rate securities. The Company values these instruments at their fair value and monitors their portfolio for impairment on a periodic basis. In the event that the carrying value of an investment exceeds its fair value and the decline in value is determined to be other than temporary, the Company records an impairment charge and establishes a new carrying value. We assess other-than-temporary impairment of marketable securities in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 820, “Fair Value Measurements.” The framework under the provisions of ASC 820 establishes three levels of inputs that may be used to measure fair value. Each level of input has different levels of subjectivity and difficulty involved in determining fair value. | |||||||||
Foreign Exchange and Translation of Foreign Currencies | |||||||||
We have international subsidiary and branch operations. In addition, a portion of our silicon wafer and other purchases are denominated in Japanese yen, we bill certain Japanese customers in yen and collect a Japanese consumption tax refund in yen. Gains or losses from foreign exchange rate fluctuations on balances denominated in foreign currencies are reflected in Other income (expense), net. Realized and unrealized gains or losses on foreign currency transactions were not significant for the periods presented. We translate accounts denominated in foreign currencies in accordance with ASC 830, “Foreign Currency Matters,” using the current rate method under which asset and liability accounts are translated at the current rate, while stockholders' equity accounts are translated at the appropriate historical rates, and revenue and expense accounts are translated at average monthly exchange rates. Translation adjustments related to the consolidation of foreign subsidiary financial statements are reflected in Accumulated other comprehensive loss in Stockholders' equity. | |||||||||
Derivative Financial Instruments | |||||||||
At June 28, 2014 and December 28, 2013, we had open foreign exchange contracts of 405,000,000 JPY and 240,000,000 JPY, respectively. Two contracts outstanding at June 28, 2014 settled in July 2014; and three contracts will settle in June 2015. One contract outstanding at December 28, 2013 settled in January 2014 and a second contract settled in June 2014. Although such hedges mitigate our foreign currency exchange rate exposure from an economic perspective, they were not designated as "effective" hedges for accounting purposes and are adjusted to fair value through earnings, with an impact of less than $0.1 million for the periods reported. We do not hold or issue derivative financial instruments for trading or speculative purposes. | |||||||||
Concentration Risk | |||||||||
Potential exposure to concentration risk consists primarily of cash and cash equivalents, marketable securities, trade receivables and supply of wafers for our new products. | |||||||||
Our top five end customers constituted approximately 47% of our revenue for the second quarter of fiscal 2014, compared to approximately 46% for the second quarter of fiscal 2013. Our top five end customers constituted approximately 49% of our revenue for the first six months of fiscal 2014, compared to approximately 43% for the first six months of fiscal 2013. | |||||||||
Our two largest end customers accounted for approximately 20% and 14% of total revenue, respectively, in the second quarter of fiscal 2014 and 21% and 14% of total revenue, respectively, in the first six months of fiscal 2014. No other customer accounted for more than 10%. Our two largest end customers accounted for approximately 24% and 9% of total revenue, respectively, in the second quarter of fiscal 2013 and 21% and 8% of total revenue, respectively, in the first six months of fiscal 2013. | |||||||||
We place our investments primarily through three financial institutions and mitigate the concentration of credit risk by limiting the maximum portion of the investment portfolio which may be invested in any one instrument. Our investment policy defines approved credit ratings for investment securities. Investments on-hand consisted primarily of money market instruments, “AA” or better corporate notes and bonds and commercial paper, and U.S. government agency obligations. See Note 5 for a discussion of the liquidity attributes of our marketable securities. | |||||||||
Concentration of credit risk with respect to trade receivables is mitigated by a diverse customer base and our credit and collection process. Accounts receivable do not bear interest, and are shown net of allowances for doubtful accounts of $0.9 million and $0.9 million at June 28, 2014 and December 28, 2013, respectively. We perform credit evaluations for essentially all customers and secure transactions with letters of credit or advance payments where appropriate. We regularly review our allowance for doubtful accounts and the aging of our accounts receivable. Write-offs for uncollected trade receivables have not been significant to date. | |||||||||
We rely on a limited number of foundries for our wafer purchases including: Fujitsu Limited, Seiko Epson Corporation, Taiwan Semiconductor Manufacturing Company, Ltd, United Microelectronics Corporation, and GLOBALFOUNDRIES. | |||||||||
Revenue Recognition and Deferred Income | |||||||||
We sell our products directly to end customers or through a network of independent manufacturers' representatives and indirectly through a network of independent sell-in and sell-through distributors. Distributors provide periodic data regarding the product, price, quantity, and end customer when products are resold, as well as the quantities of our products they still have in stock. | |||||||||
Revenue from sales to original equipment manufacturers ("OEMs") or sell-in distributors is recognized upon shipment. Revenue from sales by our sell-through distributors is recognized at the time of reported resale. Under both types of revenue recognition, persuasive evidence of an arrangement exists, the price is fixed or determinable, title has transferred, collection of resulting receivables is reasonably assured, and there are no remaining customer acceptance requirements and no remaining significant performance obligations. | |||||||||
Orders from our sell-through distributors are initially recorded at published list prices; however, for a majority of our sales, the final selling price is determined at the time of resale and in accordance with a distributor price agreement. In certain circumstances, we allow sell-through distributors to return unsold products. At times, we protect our sell-through distributors against reductions in published list prices. For these reasons, we do not recognize revenue until products are resold by sell-through distributors to an end customer. | |||||||||
For sell-through distributors, at the time of shipment to distributors, we (a) record Accounts receivable at published list price since there is a legally enforceable obligation from the distributor to pay us currently for product delivered, (b) relieve inventory for the carrying value of goods shipped since legal title has passed to the distributor, and (c) record deferred revenue and deferred cost of sales in Deferred income and allowances on sales to sell-through distributors in the liability section of our Consolidated Balance Sheets. The final price is set at the time of resale and is determined in accordance with a distributor price agreement. Revenue and cost of products sold to sell-through distributors are deferred until either the product is resold by the distributor or, in certain cases, return privileges terminate, at which time Revenue and Cost of products sold are reflected in Net income, and Accounts receivable are adjusted to reflect the final selling price. | |||||||||
The components of Deferred income and allowances on sales to sell-through distributors are presented in the following table (in thousands): | |||||||||
June 28, | December 28, | ||||||||
2014 | 2013 | ||||||||
Inventory valued at published list price and held by sell-through distributors with right of return | $ | 62,070 | $ | 36,056 | |||||
Allowance for distributor advances | (31,220 | ) | (24,090 | ) | |||||
Deferred cost of sales related to inventory held by sell-through distributors | (7,219 | ) | (4,471 | ) | |||||
Total Deferred income and allowances on sales to sell-through distributors | $ | 23,631 | $ | 7,495 | |||||
A significant portion of our year-to-date revenue in fiscal 2014 has been from sell-through distributors. Resale of products by sell-through distributors as a percentage of total revenue was 42% and 40% for the three and six months ended June 28, 2014, respectively, and 44% and 46% for the three and six months ended June 29, 2013, respectively. | |||||||||
We must use estimates and apply judgment to reconcile sell-through distributors' reported inventories to their activities. Errors in our estimates or judgments could result in inaccurate reporting of our Revenue, Cost of products sold, Deferred income and allowances on sales to sell-through distributors, and Net Income. | |||||||||
Use of Estimates | |||||||||
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts and classification of assets, such as marketable securities, accounts receivable, inventory, auction rate securities, goodwill (including the assessment of reporting unit), intangible assets, current and deferred income taxes, accrued liabilities (including restructuring charges and bonus arrangements), deferred income and allowances on sales to sell-through distributors, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the fiscal periods presented. Actual results could differ from those estimates. |
New_Accounting_Pronouncement_N
New Accounting Pronouncement New Accounting Pronuncement | 6 Months Ended |
Jun. 28, 2014 | |
Accounting Policies [Abstract] | ' |
New Accounting Pronouncements | ' |
New Accounting Pronouncements: | |
On May 28, 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The new standard will become effective for us on January 1, 2017. Early application is not permitted. The standard permits the use of either the retrospective or cumulative effect transition method. We are evaluating the effect that ASU 2014-09 will have on our consolidated financial statements and related disclosures. We have not yet selected a transition method and we have not determined the effect of the standard on our ongoing financial reporting. |
Net_Income_Loss_Per_Share
Net Income (Loss) Per Share | 6 Months Ended | |||||||||||||||
Jun. 28, 2014 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
Net Income (Loss) Per Share | ' | |||||||||||||||
Net Income Per Share: | ||||||||||||||||
We compute basic net income per share by dividing net income available to common stockholders by the weighted average number of common shares outstanding during the period. To determine diluted share count, we apply the treasury stock method to determine the dilutive effect of outstanding stock option shares, restricted stock units ("RSUs"), and Employee Stock Purchase Plan ("ESPP") shares. Our application of the treasury stock method includes, as assumed proceeds, the average unamortized stock-based compensation expense for the period and the impact of the pro forma deferred tax benefit or cost associated with stock-based compensation expense. | ||||||||||||||||
A reconciliation of basic and diluted Net income per share is presented below (in thousands, except per share data): | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 28, | June 29, | June 28, | June 29, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Basic and diluted Net income | $ | 11,771 | $ | 5,040 | $ | 23,755 | $ | 6,930 | ||||||||
Shares used in basic Net income per share | 117,904 | 115,733 | 117,170 | 115,562 | ||||||||||||
Dilutive effect of stock options, RSUs and ESPP shares | 3,040 | 1,376 | 2,871 | 1,373 | ||||||||||||
Shares used in diluted Net income per share | 120,944 | 117,109 | 120,041 | 116,935 | ||||||||||||
Basic Net income per share | $ | 0.1 | $ | 0.04 | $ | 0.2 | $ | 0.06 | ||||||||
Diluted Net income per share | $ | 0.1 | $ | 0.04 | $ | 0.2 | $ | 0.06 | ||||||||
The computation of diluted Net income per share for the three months ended June 28, 2014 and June 29, 2013, respectively, includes the effects of stock options, RSUs and ESPP shares aggregating approximately 3.0 million and 1.4 million, respectively, as they are dilutive, and excludes the effects of stock options, RSUs and ESPP shares aggregating approximately 1.7 million and 9.6 million, respectively, as they are antidilutive. The computation of diluted Net income per share for the six months ended June 28, 2014 and June 29, 2013, respectively, includes the effects of stock options, RSUs and ESPP shares aggregating approximately 2.9 million and 1.4 million, respectively, as they are dilutive, and excludes the effects of stock options, RSUs and ESPP shares aggregating approximately 2.3 million and 8.2 million, respectively, as they are antidilutive. Stock options, RSUs and ESPP shares are considered antidilutive when the aggregate of exercise price, unrecognized stock-based compensation expense and excess tax benefit are greater than the average market price for our common stock during the period or when the Company is in a net loss position, as the effects would reduce the loss per share. Stock options, RSUs and ESPP shares that are antidilutive at June 28, 2014 could become dilutive in the future. |
Marketable_Securities
Marketable Securities | 6 Months Ended | |||||||||||||||||||
Jun. 28, 2014 | ||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | |||||||||||||||||||
Marketable Securities | ' | |||||||||||||||||||
Marketable Securities: | ||||||||||||||||||||
The following table summarizes the contractual maturities of our marketable securities (at fair value and in thousands): | ||||||||||||||||||||
June 28, | December 28, | |||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
Short-term marketable securities: | ||||||||||||||||||||
Maturities of less than five years | $ | 109,061 | $ | 101,505 | ||||||||||||||||
Long-term marketable securities: | ||||||||||||||||||||
Maturities of more than ten years | — | 5,241 | ||||||||||||||||||
Total marketable securities | $ | 109,061 | $ | 106,746 | ||||||||||||||||
The following table summarizes the composition of our marketable securities (at fair value and in thousands): | ||||||||||||||||||||
June 28, | December 28, | |||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
Short-term marketable securities: | ||||||||||||||||||||
Corporate and government bonds and notes and commercial paper | $ | 109,061 | $ | 101,505 | ||||||||||||||||
Long-term marketable securities: | ||||||||||||||||||||
Federally-insured or FFELP guaranteed student loans | — | 5,241 | ||||||||||||||||||
Total marketable securities | $ | 109,061 | $ | 106,746 | ||||||||||||||||
The following table summarizes the composition of our auction rate securities (in thousands): | ||||||||||||||||||||
June 28, 2014 | December 28, 2013 | |||||||||||||||||||
Par Value | Fair Value | S&P | Par Value | Fair Value | S&P | |||||||||||||||
Credit | Credit | |||||||||||||||||||
rating | rating | |||||||||||||||||||
Long-term marketable securities: | ||||||||||||||||||||
Federally-insured or FFELP guaranteed student loans | $ | — | $ | — | $ | 5,700 | $ | 5,241 | AA+ | |||||||||||
Total auction rate securities | $ | — | $ | — | $ | 5,700 | $ | 5,241 | ||||||||||||
On June 19, 2014, we sold our remaining auction rate securities, with a par value of $5.7 million and an estimated fair value of $5.2 million, for $5.5 million. As a result, we reported a gain of $1.7 million in the Consolidated Statement of Operations and relieved $1.1 million of previously unrealized gain, net of taxes, from Accumulated other comprehensive loss in the second quarter of fiscal 2014. |
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 6 Months Ended | |||||||||||||||||||||||||||||||
Jun. 28, 2014 | ||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||||||||||||||||||
Fair Value of Financial Instruments | ' | |||||||||||||||||||||||||||||||
Fair Value of Financial Instruments (in thousands): | ||||||||||||||||||||||||||||||||
Fair value measurements as of | Fair value measurements as of | |||||||||||||||||||||||||||||||
28-Jun-14 | December 28, 2013 | |||||||||||||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||
Short-term marketable securities | $ | 109,061 | $ | 109,061 | $ | — | $ | — | $ | 101,505 | $ | 101,505 | $ | — | $ | — | ||||||||||||||||
Long-term marketable securities | — | — | — | — | 5,241 | — | — | 5,241 | ||||||||||||||||||||||||
Foreign currency forward exchange contracts | (50 | ) | — | (50 | ) | — | 48 | — | 48 | — | ||||||||||||||||||||||
Total fair value of financial instruments | $ | 109,011 | $ | 109,061 | $ | (50 | ) | $ | — | $ | 106,794 | $ | 101,505 | $ | 48 | $ | 5,241 | |||||||||||||||
We invest in various financial instruments including corporate and government bonds and notes, and commercial paper. In the past we have also invested in auction rate securities. In addition, we enter into foreign currency forward exchange contracts to mitigate our foreign currency exchange rate exposure. We carry these instruments at their fair value in accordance with ASC 820. The framework under the provisions of ASC 820 establishes three levels of inputs that may be used to measure fair value. Each level of input has different levels of subjectivity and difficulty involved in determining fair value. | ||||||||||||||||||||||||||||||||
Level 1 instruments generally represent quoted prices for identical assets or liabilities in active markets. Therefore, determining fair value for Level 1 instruments generally does not require significant management judgment, and the estimation is not difficult. Our Level 1 instruments consist of federal agency, corporate notes and bonds, and commercial paper that are traded in active markets and are classified as Short-term marketable securities on our Consolidated Balance Sheets. | ||||||||||||||||||||||||||||||||
Level 2 instruments include inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices for identical instruments in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. | ||||||||||||||||||||||||||||||||
Level 3 instruments include unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Our auction rate securities were classified as Level 3 instruments. Management used a combination of the market and income approach to derive the fair value of auction rate securities, which included third party valuation results, investment broker provided market information and available information on the credit quality of the underlying collateral. As a result, the determination of fair value for Level 3 instruments requires significant management judgment and subjectivity. | ||||||||||||||||||||||||||||||||
There were no transfers between Levels 1 and 2 during the first six months of fiscal 2014 or 2013. During the first six months of fiscal 2014 we sold our Level 3 instruments, which consisted entirely of auction rate securities. There were no transfers into or out of Level 3 during the first six months of fiscal 2013. | ||||||||||||||||||||||||||||||||
During the six months ended June 28, 2014 and June 29, 2013, the following changes occurred in our Level 3 instruments (in thousands): | ||||||||||||||||||||||||||||||||
Six Months Ended | ||||||||||||||||||||||||||||||||
June 28, | June 29, | |||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||
Beginning fair value of Long-term marketable securities | $ | 5,241 | $ | 4,717 | ||||||||||||||||||||||||||||
Fair value of securities sold | (5,488 | ) | — | |||||||||||||||||||||||||||||
Realized gain from increase in fair value | 247 | — | ||||||||||||||||||||||||||||||
Ending fair value of Long-term marketable securities | $ | — | $ | 4,717 | ||||||||||||||||||||||||||||
In accordance with ASC 320, “Investments-Debt and Equity Securities,” we recorded an unrealized loss of less than $0.1 million during each of the six months ended June 28, 2014 and June 29, 2013 on certain Short-term marketable securities (Level 1 instruments), which has been recorded in Accumulated other comprehensive loss. Future fluctuations in fair value related to these instruments that the Company deems to be temporary, including any recoveries of previous write-downs, would be recorded to Accumulated other comprehensive loss. If we were to determine in the future that any further decline in fair value is other-than-temporary, we would record an impairment charge, which could have a materially detrimental impact on our operating results. If we were to liquidate our position in these securities, it is likely that the amount of any future realized gain or loss would be different from the unrealized gain or loss reported in Accumulated other comprehensive loss or the previously reported other-than-temporary impairment charge. |
Inventories
Inventories | 6 Months Ended | |||||||
Jun. 28, 2014 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Inventories | ' | |||||||
Inventories (in thousands): | ||||||||
June 28, | December 28, | |||||||
2014 | 2013 | |||||||
Work in progress | $ | 45,026 | $ | 32,111 | ||||
Finished goods | 14,244 | 14,111 | ||||||
Total inventories | $ | 59,270 | $ | 46,222 | ||||
Business_Combinations_and_Good
Business Combinations and Goodwill | 6 Months Ended |
Jun. 28, 2014 | |
Business Combinations [Abstract] | ' |
Business Combinations and Goodwill | ' |
Business Combinations and Goodwill: | |
In December 2011, we acquired SiliconBlue Technologies Ltd. ("SiliconBlue") for $63.2 million in cash. Of the total purchase price, $43.9 million was allocated to goodwill, $18.5 million was allocated to intangible assets, and the remaining to net tangible assets acquired. In July 2011, we acquired substantially all of the assets of Rise Technology Development Limited, for $1.0 million in cash. Of the purchase price, $0.9 million was allocated to goodwill and the remaining to net tangible assets acquired. No impairment charges relating to goodwill or intangible assets were recorded for the first six months of 2014 or 2013. |
Intangible_Assets_and_Acquisit
Intangible Assets and Acquisition Related Charges | 6 Months Ended | ||||||||||||||
Jun. 28, 2014 | |||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||
Intangible Assets and Acquisition Related Charges | ' | ||||||||||||||
Intangible Assets and Acquisition Related Charges: | |||||||||||||||
In connection with our acquisition of SiliconBlue in December 2011, we recorded identifiable intangible assets related to developed technology and customer relationships based on guidance for determining fair value under the provisions of ASC 820. The following table summarizes the details of our total purchased intangible assets (in thousands): | |||||||||||||||
Weighted Average Amortization Period | Gross | Accumulated Amortization | Intangible assets, net of amortization June 28, 2014 | ||||||||||||
(in years) | |||||||||||||||
Developed technology | 7 | $ | 10,700 | $ | (3,885 | ) | $ | 6,815 | |||||||
Customer relationships | 5.5 | 7,800 | (3,604 | ) | 4,196 | ||||||||||
Total | 6.3 | $ | 18,500 | $ | (7,489 | ) | $ | 11,011 | |||||||
Amortization expense associated with these intangible assets is reported as Amortization of intangible assets in the Consolidated Statements of Operations and amounted to $0.7 million in each of the second quarters of fiscal years 2014 and 2013 and $1.5 million in each of the first six months of fiscal years 2014 and 2013. We expect amortization expense related to these intangible assets to approximate $2.9 million each year in fiscal years 2014 - 2016, $2.2 million in 2017, and $1.5 million in 2018. |
Changes_in_Stockholders_Equity
Changes in Stockholders' Equity and Accumulated Other Comprehensive Loss | 6 Months Ended | |||||||||||||||||||
Jun. 28, 2014 | ||||||||||||||||||||
Stockholders' Equity Note [Abstract] | ' | |||||||||||||||||||
Changes in Stockholders' Equity and Accumulated other Comprehensive Loss | ' | |||||||||||||||||||
Changes in Stockholders' Equity and Accumulated Other Comprehensive Loss (in thousands): | ||||||||||||||||||||
Common | Paid-in | Accumulated | Accumulated | Total | ||||||||||||||||
stock | capital | deficit | other | |||||||||||||||||
comprehensive | ||||||||||||||||||||
loss | ||||||||||||||||||||
Balances, December 28, 2013 | $ | 1,157 | $ | 626,861 | $ | (242,193 | ) | $ | (145 | ) | $ | 385,680 | ||||||||
Net Income for the six months ended June 28, 2014 | — | — | 23,755 | — | 23,755 | |||||||||||||||
Unrealized loss related to marketable securities, net | — | — | — | (70 | ) | (70 | ) | |||||||||||||
Realized gain on sale of auction rate securities, previously unrealized, net of tax | — | — | — | (1,147 | ) | (1,147 | ) | |||||||||||||
Recognized loss on redemption of marketable securities, previously unrealized | — | — | — | 99 | 99 | |||||||||||||||
Translation adjustments | — | — | — | 738 | 738 | |||||||||||||||
Common stock issued in connection with the exercise of stock options, ESPP and vested RSUs (net of taxes) | 27 | 7,058 | — | — | 7,085 | |||||||||||||||
Stock-based compensation expense related to stock options, ESPP and RSUs | — | 6,410 | — | — | 6,410 | |||||||||||||||
Balances, June 28, 2014 | $ | 1,184 | $ | 640,329 | $ | (218,438 | ) | $ | (525 | ) | $ | 422,550 | ||||||||
On February 27, 2013, our Board of Directors approved a stock repurchase program pursuant to which up to $20.0 million of outstanding common stock could be repurchased from time to time. The duration of the repurchase program was twelve months. During fiscal 2013, approximately 0.8 million shares were repurchased for $3.7 million. The 2013 program expired during the three months ended March 29, 2014. No shares were repurchased during those three months. | ||||||||||||||||||||
On March 3, 2014, our Board of Directors approved a stock repurchase program pursuant to which up to $20.0 million of outstanding common stock may be repurchased from time to time. The duration of the repurchase program is twelve months. No shares were repurchased under this program during the three or six months ended June 28, 2014. We expect that all future repurchases will be open market transactions funded from available working capital. |
Income_Taxes
Income Taxes | 6 Months Ended |
Jun. 28, 2014 | |
Income Tax Disclosure [Abstract] | ' |
Income Taxes | ' |
Income Taxes: | |
For the three months ended June 28, 2014 and June 29, 2013, we recorded an income tax provision of approximately $2.2 million and $1.9 million, respectively. For the six months ended June 28, 2014 and June 29, 2013, we recorded an income tax provision of approximately $4.0 million and $2.6 million, respectively. The income tax provision for the three and six months ended June 28, 2014 represents tax at the federal, state and foreign statutory tax rates adjusted for non-deductible stock compensation, withholding taxes, changes in uncertain tax positions as well as other non-deductible items in the U.S. and foreign jurisdictions. The difference between the U.S. federal statutory tax rate of 35% and our effective tax rate is primarily due to income earned in lower tax rate jurisdictions, for which no U.S. income tax has been provided, as we intend to permanently reinvest these earnings outside of the United States. | |
We are subject to federal income tax as well as income tax of multiple state and foreign jurisdictions. We are no longer subject to federal, state and local, or foreign income tax examinations for years before 2010, 2009 and 2007, respectively. However, net operating loss ("NOL") and credit carryforwards from all years are subject to examination and adjustments for at least three years following the year in which the attributes are used. | |
Our federal and French income tax returns are currently under examination for 2011 and 2012. We are not under examination in any other jurisdictions. | |
We believe that it is reasonably possible that $4.0 million of unrecognized tax benefits and less than $0.1 million of associated interest and penalties could be recognized during the next twelve months. The $4.1 million potential change would represent a decrease in unrecognized tax benefits, comprised of items related to filings for years that will no longer be subject to examination under expiring statutes of limitations and adjustments to federal credit carryforwards as a result of an ongoing tax return examination. | |
We have federal NOL carryforwards that expire at various dates between 2023 and 2032. We have state net operating loss carryforwards that expire at various dates from 2014 through 2032. We also have federal and state credit carryforwards, some not expiring and others expiring at various dates from 2014 through 2033. | |
We are paying foreign income taxes, which are reflected in the Provision for income taxes in our Consolidated Statements of Operations and are primarily related to the cost of operating offshore subsidiaries. We are not currently paying federal income taxes and do not expect to pay such taxes until our tax NOL and credit carryforwards are fully utilized. We expect to pay a nominal amount of state income tax. We accrue interest and penalties related to uncertain tax positions in the Provision for income taxes. |
Restructuring
Restructuring | 6 Months Ended | |||||||||||||||
Jun. 28, 2014 | ||||||||||||||||
Restructuring and Related Activities [Abstract] | ' | |||||||||||||||
Restructuring | ' | |||||||||||||||
Restructuring: | ||||||||||||||||
In October 2012, our Board of Directors adopted the "2012 restructuring plan." In connection with this restructuring plan, we reduced our headcount by approximately 110 employees and eliminated certain sites, including sites in Pennsylvania and Illinois. In connection with this action, we recorded restructuring charges of less than $0.1 million in the first quarter of fiscal 2013. The 2012 restructuring plan was substantially completed during the first quarter of fiscal 2013. | ||||||||||||||||
The following table displays the activity related to the restructuring plans described above (in thousands): | ||||||||||||||||
Severance and related | Lease termination | Other | Total | |||||||||||||
Balance at December 29, 2012 | $ | 2,373 | $ | 793 | $ | 258 | $ | 3,424 | ||||||||
Restructuring Charges | 101 | 91 | 245 | 437 | ||||||||||||
Cash Payments | (2,295 | ) | (403 | ) | (188 | ) | (2,886 | ) | ||||||||
Adjustments to prior restructuring costs | (144 | ) | (65 | ) | (56 | ) | (265 | ) | ||||||||
Balance at June 29, 2013 | $ | 35 | $ | 416 | $ | 259 | $ | 710 | ||||||||
Balance at December 28, 2013 | $ | 17 | $ | 368 | $ | 147 | $ | 532 | ||||||||
Restructuring Charges | — | 1 | 9 | 10 | ||||||||||||
Cash Payments | (8 | ) | (304 | ) | (16 | ) | (328 | ) | ||||||||
Adjustments to prior restructuring costs | (9 | ) | 13 | — | 4 | |||||||||||
Balance at June 28, 2014 | $ | — | $ | 78 | $ | 140 | $ | 218 | ||||||||
StockBased_Compensation
Stock-Based Compensation | 6 Months Ended | |||||||||||||||
Jun. 28, 2014 | ||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||||
Stock-Based Compensation | ' | |||||||||||||||
Stock-Based Compensation: | ||||||||||||||||
Total stock-based compensation expense included in our Consolidated Statements of Operations was as follows (in thousands): | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 28, | June 29, | June 28, | June 29, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Line item: | ||||||||||||||||
Cost of products sold | $ | 211 | $ | 164 | $ | 377 | $ | 289 | ||||||||
Research and development | 1,354 | 1,041 | 2,388 | 1,813 | ||||||||||||
Selling, general and administrative | 1,755 | 1,306 | 3,645 | 2,321 | ||||||||||||
Total stock-based compensation | $ | 3,320 | $ | 2,511 | $ | 6,410 | $ | 4,423 | ||||||||
During the six months ended June 28, 2014, we granted 98,592 market-based, restricted stock units in two equal tranches, each of which vest upon achievement of certain market-based conditions. The fair values of the market-based restricted stock units were determined and fixed on the date of grant using a lattice-based option-pricing valuation model, which incorporates a Monte-Carlo simulation, and considered the likelihood that we would achieve the market-based conditions. During the first quarter of fiscal 2014, the first tranche of 49,296 restricted stock units vested and we incurred stock compensation expense related to performance based awards of $0.5 million. During the second quarter of fiscal 2014, the second tranche of 49,296 restricted stock units vested and we incurred stock compensation expense related to performance based awards of $0.2 million, amounting to a total stock compensation expense related to performance based awards of $0.7 million for the six months ended June 28, 2014. |
Legal_Matters
Legal Matters | 6 Months Ended |
Jun. 28, 2014 | |
Legal Matters Disclosure [Abstract] | ' |
Legal Matters | ' |
Legal Matters: | |
On June 11, 2007, a patent infringement lawsuit was filed by Lizy K. John (“John”) against us in the U.S. District Court for the Eastern District of Texas, Marshall Division. In the complaint, John seeks an injunction, unspecified damages, and attorneys' fees and expenses. On July 21, 2014, the parties advised the court they had reached a settlement in principle. We are working to document the settlement and we expect to submit dismissal papers to the court once the anticipated settlement is finalized. The expected settlement will not have a material adverse effect on the financial position of the company. | |
We are also exposed to certain other asserted and unasserted potential claims. There can be no assurance that, with respect to potential claims made against us, we could resolve such claims under terms and conditions that would not have a material adverse effect on our business, our liquidity or our financial results. Periodically, we review the status of each significant matter and assess its potential financial exposure. If the potential loss from any claim or legal proceeding is considered probable and a range of possible losses can be estimated, we then accrue a liability for the estimated loss based on the provisions of FASB ASC 450, “Contingencies" (“ASC 450”). Legal proceedings are subject to uncertainties, and the outcomes are difficult to predict. Because of such uncertainties, accruals are based only on the best information available at the time. As additional information becomes available, we reassess the potential liability related to pending claims and litigation and may revise estimates. Presently, no accrual has been estimated under ASC 450 for potential losses that may or may not arise from the current lawsuits in which we are involved. |
Segment_and_Geographic_Informa
Segment and Geographic Information | 6 Months Ended | |||||||||||||||||||||||||||
Jun. 28, 2014 | ||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||||||||||||||
Segment and Geographic Information | ' | |||||||||||||||||||||||||||
Segment and Geographic Information: | ||||||||||||||||||||||||||||
We operate in one industry segment comprising the design, development, manufacture and marketing of programmable logic products. Our revenue by major geographic area based on ship-to location was as follows (dollars in thousands): | ||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||
June 28, 2014 | June 29, 2013 | June 28, 2014 | June 29, 2013 | |||||||||||||||||||||||||
Asia | $ | 73,459 | 74 | % | $ | 62,318 | 74 | % | $ | 146,203 | 75 | % | $ | 111,657 | 72 | % | ||||||||||||
Europe | 15,718 | 16 | 12,104 | 14 | 30,428 | 15 | 24,808 | 16 | ||||||||||||||||||||
Americas | 10,143 | 10 | 10,272 | 12 | 19,326 | 10 | 19,387 | 12 | ||||||||||||||||||||
Total revenue | $ | 99,320 | 100 | % | $ | 84,694 | 100 | % | $ | 195,957 | 100 | % | $ | 155,852 | 100 | % | ||||||||||||
Basis_of_Presentation_and_Sign1
Basis of Presentation and Significant Accounting Policies (Policies) | 6 Months Ended | ||||||||
Jun. 28, 2014 | |||||||||
Accounting Policies [Abstract] | ' | ||||||||
Fiscal Period | ' | ||||||||
We report based on a 52 or 53-week fiscal year ending on the Saturday closest to December 31. Our second quarter of fiscal 2014 and second quarter of fiscal 2013 ended on June 28, 2014 and June 29, 2013, respectively. All references to quarterly, three or six months ended financial results are references to the results for the relevant fiscal period. | |||||||||
Principles of Consolidation | ' | ||||||||
Principles of Consolidation | |||||||||
The accompanying Consolidated Financial Statements include the accounts of Lattice and its subsidiaries, all of which are wholly-owned, after the elimination of all intercompany balances and transactions. Certain balances in prior fiscal years have been reclassified to conform to the presentation adopted in the current year. | |||||||||
Cash Equivalents | ' | ||||||||
We consider all investments that are readily convertible into cash and have original maturities of three months or less, to be cash equivalents. Cash equivalents consist primarily of highly liquid investments in time deposits or money market accounts and are carried at cost. | |||||||||
Marketable Securities | ' | ||||||||
We account for marketable securities as available for sale with unrealized gains or losses recorded to Accumulated other comprehensive loss, unless losses are considered other-than-temporary, in which case, losses are charged to the Consolidated Statements of Operations. | |||||||||
Fair Value of Financial Instruments | ' | ||||||||
Fair Value of Financial Instruments | |||||||||
We invest in various financial instruments including corporate and government bonds, notes, commercial paper and auction rate securities. The Company values these instruments at their fair value and monitors their portfolio for impairment on a periodic basis. In the event that the carrying value of an investment exceeds its fair value and the decline in value is determined to be other than temporary, the Company records an impairment charge and establishes a new carrying value. We assess other-than-temporary impairment of marketable securities in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 820, “Fair Value Measurements.” The framework under the provisions of ASC 820 establishes three levels of inputs that may be used to measure fair value. Each level of input has different levels of subjectivity and difficulty involved in determining fair value. | |||||||||
Foreign Exchange and Translation of Foreign Currencies | ' | ||||||||
Foreign Exchange and Translation of Foreign Currencies | |||||||||
We have international subsidiary and branch operations. In addition, a portion of our silicon wafer and other purchases are denominated in Japanese yen, we bill certain Japanese customers in yen and collect a Japanese consumption tax refund in yen. Gains or losses from foreign exchange rate fluctuations on balances denominated in foreign currencies are reflected in Other income (expense), net. Realized and unrealized gains or losses on foreign currency transactions were not significant for the periods presented. We translate accounts denominated in foreign currencies in accordance with ASC 830, “Foreign Currency Matters,” using the current rate method under which asset and liability accounts are translated at the current rate, while stockholders' equity accounts are translated at the appropriate historical rates, and revenue and expense accounts are translated at average monthly exchange rates. Translation adjustments related to the consolidation of foreign subsidiary financial statements are reflected in Accumulated other comprehensive loss in Stockholders' equity. | |||||||||
Derivative Financial Instruments | ' | ||||||||
Derivative Financial Instruments | |||||||||
At June 28, 2014 and December 28, 2013, we had open foreign exchange contracts of 405,000,000 JPY and 240,000,000 JPY, respectively. Two contracts outstanding at June 28, 2014 settled in July 2014; and three contracts will settle in June 2015. One contract outstanding at December 28, 2013 settled in January 2014 and a second contract settled in June 2014. Although such hedges mitigate our foreign currency exchange rate exposure from an economic perspective, they were not designated as "effective" hedges for accounting purposes and are adjusted to fair value through earnings, with an impact of less than $0.1 million for the periods reported. We do not hold or issue derivative financial instruments for trading or speculative purposes. | |||||||||
Concentration Risk | ' | ||||||||
Concentration Risk | |||||||||
Potential exposure to concentration risk consists primarily of cash and cash equivalents, marketable securities, trade receivables and supply of wafers for our new products. | |||||||||
Our top five end customers constituted approximately 47% of our revenue for the second quarter of fiscal 2014, compared to approximately 46% for the second quarter of fiscal 2013. Our top five end customers constituted approximately 49% of our revenue for the first six months of fiscal 2014, compared to approximately 43% for the first six months of fiscal 2013. | |||||||||
Our two largest end customers accounted for approximately 20% and 14% of total revenue, respectively, in the second quarter of fiscal 2014 and 21% and 14% of total revenue, respectively, in the first six months of fiscal 2014. No other customer accounted for more than 10%. Our two largest end customers accounted for approximately 24% and 9% of total revenue, respectively, in the second quarter of fiscal 2013 and 21% and 8% of total revenue, respectively, in the first six months of fiscal 2013. | |||||||||
We place our investments primarily through three financial institutions and mitigate the concentration of credit risk by limiting the maximum portion of the investment portfolio which may be invested in any one instrument. Our investment policy defines approved credit ratings for investment securities. Investments on-hand consisted primarily of money market instruments, “AA” or better corporate notes and bonds and commercial paper, and U.S. government agency obligations. See Note 5 for a discussion of the liquidity attributes of our marketable securities. | |||||||||
Concentration of credit risk with respect to trade receivables is mitigated by a diverse customer base and our credit and collection process. Accounts receivable do not bear interest, and are shown net of allowances for doubtful accounts of $0.9 million and $0.9 million at June 28, 2014 and December 28, 2013, respectively. We perform credit evaluations for essentially all customers and secure transactions with letters of credit or advance payments where appropriate. We regularly review our allowance for doubtful accounts and the aging of our accounts receivable. Write-offs for uncollected trade receivables have not been significant to date. | |||||||||
We rely on a limited number of foundries for our wafer purchases including: Fujitsu Limited, Seiko Epson Corporation, Taiwan Semiconductor Manufacturing Company, Ltd, United Microelectronics Corporation, and GLOBALFOUNDRIES. | |||||||||
Revenue Recognition and Deferred Income | ' | ||||||||
Revenue Recognition and Deferred Income | |||||||||
We sell our products directly to end customers or through a network of independent manufacturers' representatives and indirectly through a network of independent sell-in and sell-through distributors. Distributors provide periodic data regarding the product, price, quantity, and end customer when products are resold, as well as the quantities of our products they still have in stock. | |||||||||
Revenue from sales to original equipment manufacturers ("OEMs") or sell-in distributors is recognized upon shipment. Revenue from sales by our sell-through distributors is recognized at the time of reported resale. Under both types of revenue recognition, persuasive evidence of an arrangement exists, the price is fixed or determinable, title has transferred, collection of resulting receivables is reasonably assured, and there are no remaining customer acceptance requirements and no remaining significant performance obligations. | |||||||||
Orders from our sell-through distributors are initially recorded at published list prices; however, for a majority of our sales, the final selling price is determined at the time of resale and in accordance with a distributor price agreement. In certain circumstances, we allow sell-through distributors to return unsold products. At times, we protect our sell-through distributors against reductions in published list prices. For these reasons, we do not recognize revenue until products are resold by sell-through distributors to an end customer. | |||||||||
For sell-through distributors, at the time of shipment to distributors, we (a) record Accounts receivable at published list price since there is a legally enforceable obligation from the distributor to pay us currently for product delivered, (b) relieve inventory for the carrying value of goods shipped since legal title has passed to the distributor, and (c) record deferred revenue and deferred cost of sales in Deferred income and allowances on sales to sell-through distributors in the liability section of our Consolidated Balance Sheets. The final price is set at the time of resale and is determined in accordance with a distributor price agreement. Revenue and cost of products sold to sell-through distributors are deferred until either the product is resold by the distributor or, in certain cases, return privileges terminate, at which time Revenue and Cost of products sold are reflected in Net income, and Accounts receivable are adjusted to reflect the final selling price. | |||||||||
The components of Deferred income and allowances on sales to sell-through distributors are presented in the following table (in thousands): | |||||||||
June 28, | December 28, | ||||||||
2014 | 2013 | ||||||||
Inventory valued at published list price and held by sell-through distributors with right of return | $ | 62,070 | $ | 36,056 | |||||
Allowance for distributor advances | (31,220 | ) | (24,090 | ) | |||||
Deferred cost of sales related to inventory held by sell-through distributors | (7,219 | ) | (4,471 | ) | |||||
Total Deferred income and allowances on sales to sell-through distributors | $ | 23,631 | $ | 7,495 | |||||
A significant portion of our year-to-date revenue in fiscal 2014 has been from sell-through distributors. Resale of products by sell-through distributors as a percentage of total revenue was 42% and 40% for the three and six months ended June 28, 2014, respectively, and 44% and 46% for the three and six months ended June 29, 2013, respectively. | |||||||||
We must use estimates and apply judgment to reconcile sell-through distributors' reported inventories to their activities. Errors in our estimates or judgments could result in inaccurate reporting of our Revenue, Cost of products sold, Deferred income and allowances on sales to sell-through distributors, and Net Income. | |||||||||
Use of Estimates | ' | ||||||||
Use of Estimates | |||||||||
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts and classification of assets, such as marketable securities, accounts receivable, inventory, auction rate securities, goodwill (including the assessment of reporting unit), intangible assets, current and deferred income taxes, accrued liabilities (including restructuring charges and bonus arrangements), deferred income and allowances on sales to sell-through distributors, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the fiscal periods presented. Actual results could differ from those estimates. | |||||||||
New Accounting Pronouncements | ' | ||||||||
New Accounting Pronouncements: | |||||||||
On May 28, 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The new standard will become effective for us on January 1, 2017. Early application is not permitted. The standard permits the use of either the retrospective or cumulative effect transition method. We are evaluating the effect that ASU 2014-09 will have on our consolidated financial statements and related disclosures. We have not yet selected a transition method and we have not determined the effect of the standard on our ongoing financial reporting. |
Basis_of_Presentation_and_Sign2
Basis of Presentation and Significant Accounting Policies (Tables) | 6 Months Ended | ||||||||
Jun. 28, 2014 | |||||||||
Accounting Policies [Abstract] | ' | ||||||||
Deferred Income and Allowances on Sales to Sell-through Distributors | ' | ||||||||
The components of Deferred income and allowances on sales to sell-through distributors are presented in the following table (in thousands): | |||||||||
June 28, | December 28, | ||||||||
2014 | 2013 | ||||||||
Inventory valued at published list price and held by sell-through distributors with right of return | $ | 62,070 | $ | 36,056 | |||||
Allowance for distributor advances | (31,220 | ) | (24,090 | ) | |||||
Deferred cost of sales related to inventory held by sell-through distributors | (7,219 | ) | (4,471 | ) | |||||
Total Deferred income and allowances on sales to sell-through distributors | $ | 23,631 | $ | 7,495 | |||||
Net_Income_Per_Share_Tables
Net Income Per Share (Tables) | 6 Months Ended | |||||||||||||||
Jun. 28, 2014 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
Schedule of Earnings Per Share Reconciliation | ' | |||||||||||||||
A reconciliation of basic and diluted Net income per share is presented below (in thousands, except per share data): | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 28, | June 29, | June 28, | June 29, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Basic and diluted Net income | $ | 11,771 | $ | 5,040 | $ | 23,755 | $ | 6,930 | ||||||||
Shares used in basic Net income per share | 117,904 | 115,733 | 117,170 | 115,562 | ||||||||||||
Dilutive effect of stock options, RSUs and ESPP shares | 3,040 | 1,376 | 2,871 | 1,373 | ||||||||||||
Shares used in diluted Net income per share | 120,944 | 117,109 | 120,041 | 116,935 | ||||||||||||
Basic Net income per share | $ | 0.1 | $ | 0.04 | $ | 0.2 | $ | 0.06 | ||||||||
Diluted Net income per share | $ | 0.1 | $ | 0.04 | $ | 0.2 | $ | 0.06 | ||||||||
Marketable_Securities_Tables
Marketable Securities (Tables) | 6 Months Ended | |||||||||||||||||||
Jun. 28, 2014 | ||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | |||||||||||||||||||
Schedule of Contractual Maturities of Marketable Securities | ' | |||||||||||||||||||
The following table summarizes the contractual maturities of our marketable securities (at fair value and in thousands): | ||||||||||||||||||||
June 28, | December 28, | |||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
Short-term marketable securities: | ||||||||||||||||||||
Maturities of less than five years | $ | 109,061 | $ | 101,505 | ||||||||||||||||
Long-term marketable securities: | ||||||||||||||||||||
Maturities of more than ten years | — | 5,241 | ||||||||||||||||||
Total marketable securities | $ | 109,061 | $ | 106,746 | ||||||||||||||||
Schedule of Composition of Marketable Securities | ' | |||||||||||||||||||
The following table summarizes the composition of our marketable securities (at fair value and in thousands): | ||||||||||||||||||||
June 28, | December 28, | |||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
Short-term marketable securities: | ||||||||||||||||||||
Corporate and government bonds and notes and commercial paper | $ | 109,061 | $ | 101,505 | ||||||||||||||||
Long-term marketable securities: | ||||||||||||||||||||
Federally-insured or FFELP guaranteed student loans | — | 5,241 | ||||||||||||||||||
Total marketable securities | $ | 109,061 | $ | 106,746 | ||||||||||||||||
Schedule of Composition of Auction Rate Securities | ' | |||||||||||||||||||
The following table summarizes the composition of our auction rate securities (in thousands): | ||||||||||||||||||||
June 28, 2014 | December 28, 2013 | |||||||||||||||||||
Par Value | Fair Value | S&P | Par Value | Fair Value | S&P | |||||||||||||||
Credit | Credit | |||||||||||||||||||
rating | rating | |||||||||||||||||||
Long-term marketable securities: | ||||||||||||||||||||
Federally-insured or FFELP guaranteed student loans | $ | — | $ | — | $ | 5,700 | $ | 5,241 | AA+ | |||||||||||
Total auction rate securities | $ | — | $ | — | $ | 5,700 | $ | 5,241 | ||||||||||||
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments (Tables) | 6 Months Ended | |||||||||||||||||||||||||||||||
Jun. 28, 2014 | ||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||||||||||||||||||
Schedule of Fair Value of Financial Instruments | ' | |||||||||||||||||||||||||||||||
Fair value measurements as of | Fair value measurements as of | |||||||||||||||||||||||||||||||
28-Jun-14 | December 28, 2013 | |||||||||||||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||
Short-term marketable securities | $ | 109,061 | $ | 109,061 | $ | — | $ | — | $ | 101,505 | $ | 101,505 | $ | — | $ | — | ||||||||||||||||
Long-term marketable securities | — | — | — | — | 5,241 | — | — | 5,241 | ||||||||||||||||||||||||
Foreign currency forward exchange contracts | (50 | ) | — | (50 | ) | — | 48 | — | 48 | — | ||||||||||||||||||||||
Total fair value of financial instruments | $ | 109,011 | $ | 109,061 | $ | (50 | ) | $ | — | $ | 106,794 | $ | 101,505 | $ | 48 | $ | 5,241 | |||||||||||||||
Schedule of Changes In Level 3 Instruments | ' | |||||||||||||||||||||||||||||||
During the six months ended June 28, 2014 and June 29, 2013, the following changes occurred in our Level 3 instruments (in thousands): | ||||||||||||||||||||||||||||||||
Six Months Ended | ||||||||||||||||||||||||||||||||
June 28, | June 29, | |||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||
Beginning fair value of Long-term marketable securities | $ | 5,241 | $ | 4,717 | ||||||||||||||||||||||||||||
Fair value of securities sold | (5,488 | ) | — | |||||||||||||||||||||||||||||
Realized gain from increase in fair value | 247 | — | ||||||||||||||||||||||||||||||
Ending fair value of Long-term marketable securities | $ | — | $ | 4,717 | ||||||||||||||||||||||||||||
Inventories_Tables
Inventories (Tables) | 6 Months Ended | |||||||
Jun. 28, 2014 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Schedule of Inventories | ' | |||||||
June 28, | December 28, | |||||||
2014 | 2013 | |||||||
Work in progress | $ | 45,026 | $ | 32,111 | ||||
Finished goods | 14,244 | 14,111 | ||||||
Total inventories | $ | 59,270 | $ | 46,222 | ||||
Intangible_Assets_and_Acquisit1
Intangible Assets and Acquisition Related Charges (Tables) (SiliconBlue Technologies Ltd.) | 6 Months Ended | ||||||||||||||
Jun. 28, 2014 | |||||||||||||||
SiliconBlue Technologies Ltd. | ' | ||||||||||||||
Business Acquisition [Line Items] | ' | ||||||||||||||
Schedule of Finite-Lived Intangible Assets | ' | ||||||||||||||
The following table summarizes the details of our total purchased intangible assets (in thousands): | |||||||||||||||
Weighted Average Amortization Period | Gross | Accumulated Amortization | Intangible assets, net of amortization June 28, 2014 | ||||||||||||
(in years) | |||||||||||||||
Developed technology | 7 | $ | 10,700 | $ | (3,885 | ) | $ | 6,815 | |||||||
Customer relationships | 5.5 | 7,800 | (3,604 | ) | 4,196 | ||||||||||
Total | 6.3 | $ | 18,500 | $ | (7,489 | ) | $ | 11,011 | |||||||
Changes_in_Stockholders_Equity1
Changes in Stockholders' Equity and Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended | |||||||||||||||||||
Jun. 28, 2014 | ||||||||||||||||||||
Stockholders' Equity Note [Abstract] | ' | |||||||||||||||||||
Schedule of Changes in Stockholders' Equity and Accumulated other Comprehensive Loss | ' | |||||||||||||||||||
Changes in Stockholders' Equity and Accumulated Other Comprehensive Loss (in thousands): | ||||||||||||||||||||
Common | Paid-in | Accumulated | Accumulated | Total | ||||||||||||||||
stock | capital | deficit | other | |||||||||||||||||
comprehensive | ||||||||||||||||||||
loss | ||||||||||||||||||||
Balances, December 28, 2013 | $ | 1,157 | $ | 626,861 | $ | (242,193 | ) | $ | (145 | ) | $ | 385,680 | ||||||||
Net Income for the six months ended June 28, 2014 | — | — | 23,755 | — | 23,755 | |||||||||||||||
Unrealized loss related to marketable securities, net | — | — | — | (70 | ) | (70 | ) | |||||||||||||
Realized gain on sale of auction rate securities, previously unrealized, net of tax | — | — | — | (1,147 | ) | (1,147 | ) | |||||||||||||
Recognized loss on redemption of marketable securities, previously unrealized | — | — | — | 99 | 99 | |||||||||||||||
Translation adjustments | — | — | — | 738 | 738 | |||||||||||||||
Common stock issued in connection with the exercise of stock options, ESPP and vested RSUs (net of taxes) | 27 | 7,058 | — | — | 7,085 | |||||||||||||||
Stock-based compensation expense related to stock options, ESPP and RSUs | — | 6,410 | — | — | 6,410 | |||||||||||||||
Balances, June 28, 2014 | $ | 1,184 | $ | 640,329 | $ | (218,438 | ) | $ | (525 | ) | $ | 422,550 | ||||||||
Restructuring_Tables
Restructuring (Tables) | 6 Months Ended | |||||||||||||||
Jun. 28, 2014 | ||||||||||||||||
Restructuring and Related Activities [Abstract] | ' | |||||||||||||||
Schedule of Restructuring Reserve by Type of Cost | ' | |||||||||||||||
The following table displays the activity related to the restructuring plans described above (in thousands): | ||||||||||||||||
Severance and related | Lease termination | Other | Total | |||||||||||||
Balance at December 29, 2012 | $ | 2,373 | $ | 793 | $ | 258 | $ | 3,424 | ||||||||
Restructuring Charges | 101 | 91 | 245 | 437 | ||||||||||||
Cash Payments | (2,295 | ) | (403 | ) | (188 | ) | (2,886 | ) | ||||||||
Adjustments to prior restructuring costs | (144 | ) | (65 | ) | (56 | ) | (265 | ) | ||||||||
Balance at June 29, 2013 | $ | 35 | $ | 416 | $ | 259 | $ | 710 | ||||||||
Balance at December 28, 2013 | $ | 17 | $ | 368 | $ | 147 | $ | 532 | ||||||||
Restructuring Charges | — | 1 | 9 | 10 | ||||||||||||
Cash Payments | (8 | ) | (304 | ) | (16 | ) | (328 | ) | ||||||||
Adjustments to prior restructuring costs | (9 | ) | 13 | — | 4 | |||||||||||
Balance at June 28, 2014 | $ | — | $ | 78 | $ | 140 | $ | 218 | ||||||||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 6 Months Ended | |||||||||||||||
Jun. 28, 2014 | ||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||||
Schedule of Stock-Based Compensation Expense | ' | |||||||||||||||
Total stock-based compensation expense included in our Consolidated Statements of Operations was as follows (in thousands): | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 28, | June 29, | June 28, | June 29, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Line item: | ||||||||||||||||
Cost of products sold | $ | 211 | $ | 164 | $ | 377 | $ | 289 | ||||||||
Research and development | 1,354 | 1,041 | 2,388 | 1,813 | ||||||||||||
Selling, general and administrative | 1,755 | 1,306 | 3,645 | 2,321 | ||||||||||||
Total stock-based compensation | $ | 3,320 | $ | 2,511 | $ | 6,410 | $ | 4,423 | ||||||||
Segment_and_Geographic_Informa1
Segment and Geographic Information (Tables) | 6 Months Ended | |||||||||||||||||||||||||||
Jun. 28, 2014 | ||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||||||||||||||
Schedule of Revenue by Major Geographic Area | ' | |||||||||||||||||||||||||||
Our revenue by major geographic area based on ship-to location was as follows (dollars in thousands): | ||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||
June 28, 2014 | June 29, 2013 | June 28, 2014 | June 29, 2013 | |||||||||||||||||||||||||
Asia | $ | 73,459 | 74 | % | $ | 62,318 | 74 | % | $ | 146,203 | 75 | % | $ | 111,657 | 72 | % | ||||||||||||
Europe | 15,718 | 16 | 12,104 | 14 | 30,428 | 15 | 24,808 | 16 | ||||||||||||||||||||
Americas | 10,143 | 10 | 10,272 | 12 | 19,326 | 10 | 19,387 | 12 | ||||||||||||||||||||
Total revenue | $ | 99,320 | 100 | % | $ | 84,694 | 100 | % | $ | 195,957 | 100 | % | $ | 155,852 | 100 | % | ||||||||||||
Basis_of_Presentation_and_Sign3
Basis of Presentation and Significant Accounting Policies (Details) | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | ||||||||||||
Jun. 28, 2014 | Jun. 28, 2014 | Dec. 28, 2013 | Jun. 28, 2014 | Jun. 29, 2013 | Jun. 28, 2014 | Jun. 29, 2013 | Jun. 28, 2014 | Jun. 29, 2013 | Jun. 28, 2014 | Jun. 29, 2013 | Jun. 28, 2014 | Dec. 28, 2013 | Jun. 28, 2014 | Jun. 28, 2014 | Jun. 28, 2014 | Jun. 29, 2013 | Jun. 28, 2014 | Jun. 29, 2013 | Jun. 28, 2014 | Jun. 29, 2013 | Jun. 28, 2014 | Jun. 29, 2013 | |
USD ($) | USD ($) | USD ($) | Revenue | Revenue | Revenue | Revenue | Sales Revenue | Sales Revenue | Sales Revenue | Sales Revenue | Not designated as effective hedges for accounting purposes | Not designated as effective hedges for accounting purposes | Minimum | Maximum | Customer A | Customer A | Customer A | Customer A | Customer B | Customer B | Customer B | Customer B | |
Customer Concentration Risk | Customer Concentration Risk | Customer Concentration Risk | Customer Concentration Risk | Sell-Through Distributors | Sell-Through Distributors | Sell-Through Distributors | Sell-Through Distributors | Foreign exchange contracts | Foreign exchange contracts | Revenue | Revenue | Revenue | Revenue | Revenue | Revenue | Revenue | Revenue | ||||||
JPY (¥) | JPY (¥) | Customer Concentration Risk | Customer Concentration Risk | Customer Concentration Risk | Customer Concentration Risk | Customer Concentration Risk | Customer Concentration Risk | Customer Concentration Risk | Customer Concentration Risk | ||||||||||||||
Basis of Presentation and Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fiscal year duration (52 weeks or 53 weeks) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '364 days | '371 days | ' | ' | ' | ' | ' | ' | ' | ' |
Term of maturities of investments considered cash and cash equivalents | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 months | ' | ' | ' | ' | ' | ' | ' | ' |
General Discussion of Derivative Instruments and Hedging Activities [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Open foreign exchange contracts - notional amounts | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ¥ 405,000,000 | ¥ 240,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gain on foreign exchange contracts adjusted to fair value through earnings - less than | 100,000 | 100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Risks and Uncertainties [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allowance for doubtful accounts | 900,000 | 900,000 | 900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Concentration Risk | ' | ' | ' | 47.00% | 46.00% | 49.00% | 43.00% | 42.00% | 44.00% | 40.00% | 46.00% | ' | ' | ' | ' | 20.00% | 24.00% | 21.00% | 21.00% | 14.00% | 9.00% | 14.00% | 8.00% |
Deferred Revenue and Credits [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Inventory valued at published list price and held by sell-through distributors with right of return | 62,070,000 | 62,070,000 | 36,056,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allowance for distributor advances | -31,220,000 | -31,220,000 | -24,090,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred cost of sales related to inventory held by sell-through distributors | -7,219,000 | -7,219,000 | -4,471,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total Deferred income and allowances on sales to sell-through distributors | $23,631,000 | $23,631,000 | $7,495,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net_Income_Per_Share_Details
Net Income Per Share (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Jun. 28, 2014 | Jun. 29, 2013 | Jun. 28, 2014 | Jun. 29, 2013 |
Earnings Per Share [Abstract] | ' | ' | ' | ' |
Net Income | $11,771 | $5,040 | $23,755 | $6,930 |
Shares used in basic Net income per share (in shares) | 117,904,000 | 115,733,000 | 117,170,000 | 115,562,000 |
Dilutive effect of stock options, RSUs and ESPP shares (in shares) | 3,040,000 | 1,376,000 | 2,871,000 | 1,373,000 |
Shares used in diluted Net income per share (in shares) | 120,944,000 | 117,109,000 | 120,041,000 | 116,935,000 |
Basic Net income per share (in dollars per share) | $0.10 | $0.04 | $0.20 | $0.06 |
Diluted Net income per share (in dollars per share) | $0.10 | $0.04 | $0.20 | $0.06 |
Stock options, RSU's and ESPP shares | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Antidilutive securities excluded from computation of EPS (in shares) | 1,700,000 | 9,600,000 | 2,300,000 | 8,200,000 |
Marketable_Securities_Composit
Marketable Securities Composition (Details) (USD $) | Jun. 28, 2014 | Jun. 19, 2014 | Dec. 28, 2013 |
In Thousands, unless otherwise specified | |||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' |
Maturities of less than five years | $109,061 | ' | $101,505 |
Maturities of more than ten years | 0 | ' | 5,241 |
Total marketable securities | 109,061 | ' | 106,746 |
Federally-insured or FFELP guaranteed student loan auction rate securities | ' | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' |
Total marketable securities | 0 | 5,200 | 5,241 |
Short-term marketable securities | Corporate and government bonds and notes and commercial paper | ' | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' |
Total marketable securities | 109,061 | ' | 101,505 |
Long-term marketable securities | Federally-insured or FFELP guaranteed student loan auction rate securities | ' | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' |
Total marketable securities | $0 | ' | $5,241 |
Marketable_Securities_Auction_
Marketable Securities Auction Rate (Details) (USD $) | 3 Months Ended | 6 Months Ended | 0 Months Ended | 3 Months Ended | |||||||
In Thousands, unless otherwise specified | Jun. 28, 2014 | Jun. 29, 2013 | Jun. 28, 2014 | Jun. 29, 2013 | Dec. 28, 2013 | Jun. 28, 2014 | Dec. 28, 2013 | Jun. 19, 2014 | Jun. 28, 2014 | Jun. 19, 2014 | Dec. 28, 2013 |
Total Auction Rate Securities | Total Auction Rate Securities | Federally-insured or FFELP guaranteed student loan auction rate securities | Federally-insured or FFELP guaranteed student loan auction rate securities | Federally-insured or FFELP guaranteed student loan auction rate securities | Federally-insured or FFELP guaranteed student loan auction rate securities | ||||||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Par value | ' | ' | ' | ' | ' | $0 | $5,700 | ' | $0 | $5,700 | $5,700 |
Available-for-sale securities | 109,061 | ' | 109,061 | ' | 106,746 | 0 | 5,241 | ' | 0 | 5,200 | 5,241 |
Proceeds from sales of auction rate securities | ' | ' | 5,488 | 0 | ' | ' | ' | 5,500 | ' | ' | ' |
Available-for-sale securities, gross realized gain | -1,147 | 0 | -1,147 | 0 | ' | ' | ' | ' | 1,700 | ' | ' |
Realized gain on sale of auction rate securities, previously unrealized, net of tax | ' | ' | ($1,147) | ' | ' | ' | ' | ' | $1,100 | ' | ' |
Fair_Value_of_Financial_Instru2
Fair Value of Financial Instruments (Details) (USD $) | Jun. 28, 2014 | Dec. 28, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' |
Fair value of marketable securities | $109,061 | $106,746 |
Level 1 | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' |
Total fair value of financial instruments | 109,061 | 101,505 |
Level 1 | Short-term marketable securities | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' |
Fair value of marketable securities | 109,061 | 101,505 |
Level 2 | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' |
Foreign currency forward exchange contracts | -50 | 48 |
Total fair value of financial instruments | -50 | 48 |
Level 3 | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' |
Total fair value of financial instruments | 0 | 5,241 |
Level 3 | Long-term marketable securities | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' |
Fair value of marketable securities | 0 | 5,241 |
Total | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' |
Foreign currency forward exchange contracts | -50 | 48 |
Total fair value of financial instruments | 109,011 | 106,794 |
Total | Short-term marketable securities | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' |
Fair value of marketable securities | 109,061 | 101,505 |
Total | Long-term marketable securities | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' |
Fair value of marketable securities | $0 | $5,241 |
Fair_Value_of_Financial_Instru3
Fair Value of Financial Instruments Unobservable Inputs (Details) (USD $) | 6 Months Ended | |
Jun. 28, 2014 | Jun. 29, 2013 | |
Short-term marketable securities | Maximum | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Unrealized gain - less than | $100,000 | $100,000 |
Fair Value, Inputs, Level 3 | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' |
Beginning fair value of Long-term marketable securities | 5,241,000 | 4,717,000 |
Fair value of securities sold | -5,488,000 | 0 |
Realized gain from increase in fair value | 247,000 | 0 |
Ending fair value of Long-term marketable securities | $0 | $4,717,000 |
Inventories_Details
Inventories (Details) (USD $) | Jun. 28, 2014 | Dec. 28, 2013 |
In Thousands, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ' | ' |
Work in progress | $45,026 | $32,111 |
Finished goods | 14,244 | 14,111 |
Total inventories | $59,270 | $46,222 |
Business_Combinations_and_Good1
Business Combinations and Goodwill (Details) (USD $) | 6 Months Ended | 1 Months Ended | |||
Jun. 28, 2014 | Jun. 29, 2013 | Dec. 28, 2013 | Dec. 31, 2011 | Jul. 31, 2011 | |
SiliconBlue Technologies Ltd. | Rise Technology Development Limited | ||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' |
Cash purchase price | ' | ' | ' | $63,200,000 | $1,000,000 |
Goodwill | 44,808,000 | ' | 44,808,000 | 43,900,000 | 900,000 |
Acquired intangible assets | ' | ' | ' | 18,500,000 | ' |
Impairment charges related to goodwill and intangible assets | $0 | $0 | ' | ' | ' |
Intangible_Assets_and_Acquisit2
Intangible Assets and Acquisition Related Charges (Details) (SiliconBlue Technologies Ltd., USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 28, 2014 | Jun. 29, 2013 | Jun. 28, 2014 | Jun. 29, 2013 | |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' |
Weighted Average Amortization Period (in years) | ' | ' | '6 years 3 months 18 days | ' |
Gross | $18,500,000 | ' | $18,500,000 | ' |
Accumulated Amortization | -7,489,000 | ' | -7,489,000 | ' |
Intangible assets, net of amortization | 11,011,000 | ' | 11,011,000 | ' |
Amortization of acquired intangible assets | 700,000 | 700,000 | 1,500,000 | 1,500,000 |
Expected acquired intangible assets amortization expense, 2014 | 2,900,000 | ' | 2,900,000 | ' |
Expected acquired intangible assets amortization expense, 2015 | 2,900,000 | ' | 2,900,000 | ' |
Expected acquired intangible assets amortization expense, 2016 | 2,900,000 | ' | 2,900,000 | ' |
Expected acquired intangible assets amortization expense, 2017 | 2,200,000 | ' | 2,200,000 | ' |
Expected acquired intangible assets amortization expense, 2018 | 1,500,000 | ' | 1,500,000 | ' |
Developed technology | ' | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' |
Weighted Average Amortization Period (in years) | ' | ' | '7 years | ' |
Gross | 10,700,000 | ' | 10,700,000 | ' |
Accumulated Amortization | -3,885,000 | ' | -3,885,000 | ' |
Intangible assets, net of amortization | 6,815,000 | ' | 6,815,000 | ' |
Customer relationships | ' | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' |
Weighted Average Amortization Period (in years) | ' | ' | '5 years 6 months | ' |
Gross | 7,800,000 | ' | 7,800,000 | ' |
Accumulated Amortization | -3,604,000 | ' | -3,604,000 | ' |
Intangible assets, net of amortization | $4,196,000 | ' | $4,196,000 | ' |
Changes_in_Stockholders_Equity2
Changes in Stockholders' Equity and Accumulated Other Comprehensive Loss (Details) (USD $) | 3 Months Ended | 6 Months Ended | 1 Months Ended | 12 Months Ended | 0 Months Ended | 6 Months Ended | |||||
Jun. 28, 2014 | Jun. 29, 2013 | Jun. 28, 2014 | Jun. 29, 2013 | Feb. 27, 2013 | Dec. 28, 2013 | Mar. 03, 2014 | Jun. 28, 2014 | Jun. 28, 2014 | Jun. 28, 2014 | Jun. 28, 2014 | |
Share Repurchase Program approved on Feb 27, 2013 | Share Repurchase Program approved on Feb 27, 2013 | Share Repurchase Program approved on Feb 27, 2014 | Common stock | Paid-in capital | Accumulated deficit | Accumulated other comprehensive loss | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Beginning balance | ' | ' | $385,680,000 | ' | ' | ' | ' | $1,157,000 | $626,861,000 | ($242,193,000) | ($145,000) |
Net Income for the period | 11,771,000 | 5,040,000 | 23,755,000 | 6,930,000 | ' | ' | ' | ' | ' | 23,755,000 | ' |
Unrealized loss related to marketable securities, net | ' | ' | -70,000 | ' | ' | ' | ' | ' | ' | ' | -70,000 |
Realized gain on sale of auction rate securities, previously unrealized, net of tax | ' | ' | -1,147,000 | ' | ' | ' | ' | ' | ' | ' | -1,147,000 |
Recognized loss on redemption of marketable securities, previously unrealized | ' | ' | 99,000 | ' | ' | ' | ' | ' | ' | ' | 99,000 |
Translation adjustments | 914,000 | -265,000 | 738,000 | -430,000 | ' | ' | ' | ' | ' | ' | 738,000 |
Common stock issued in connection with the exercise of stock options, ESPP and vested RSUs (net of taxes) | ' | ' | 7,085,000 | ' | ' | ' | ' | 27,000 | 7,058,000 | ' | ' |
Stock-based compensation expense related to stock options, ESPP and RSUs | ' | ' | 6,410,000 | ' | ' | ' | ' | ' | 6,410,000 | ' | ' |
Ending balance | 422,550,000 | ' | 422,550,000 | ' | ' | ' | ' | 1,184,000 | 640,329,000 | -218,438,000 | -525,000 |
Stock repurchase program, authorized amount | ' | ' | ' | ' | 20,000,000 | ' | 20,000,000 | ' | ' | ' | ' |
Shares repurchased (in shares) | 0 | ' | 0 | ' | ' | 800,000 | ' | ' | ' | ' | ' |
Shares repurchased | ' | ' | ' | ' | ' | $3,700,000 | ' | ' | ' | ' | ' |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 28, 2014 | Jun. 29, 2013 | Jun. 28, 2014 | Jun. 29, 2013 | |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ' | ' | ' | ' |
Provision for income taxes | $2,236,000 | $1,921,000 | $3,963,000 | $2,620,000 |
Lapse of the statute of limitations on foreign tax filings | ' | ' | ' | ' |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ' | ' | ' | ' |
Unrecognized tax benefits that could significantly change during the next twelve months | 4,000,000 | ' | 4,000,000 | ' |
Total potential decrease in UTB | 4,100,000 | ' | 4,100,000 | ' |
Maximum | Lapse of the statute of limitations on foreign tax filings | ' | ' | ' | ' |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ' | ' | ' | ' |
Unrecognized tax benefits, associated interest and penalties that could significantly change within the next twelve months | $100,000 | ' | $100,000 | ' |
U.S. Federal | ' | ' | ' | ' |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ' | ' | ' | ' |
Statutory income tax rate | ' | ' | 35.00% | ' |
Restructuring_Details
Restructuring (Details) (USD $) | 3 Months Ended | 6 Months Ended | 3 Months Ended | |||||||||
In Thousands, unless otherwise specified | Jun. 28, 2014 | Jun. 29, 2013 | Jun. 28, 2014 | Jun. 29, 2013 | Jun. 28, 2014 | Jun. 29, 2013 | Jun. 28, 2014 | Jun. 29, 2013 | Jun. 28, 2014 | Jun. 29, 2013 | Jun. 29, 2013 | Oct. 31, 2012 |
Severance and related | Severance and related | Lease termination | Lease termination | Other | Other | 2012 restructuring plan | 2012 restructuring plan | |||||
employee | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Approximate reduction in headcount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 110 |
Recorded restructuring charges - less than | $3 | $19 | $14 | $172 | ' | ' | ' | ' | ' | ' | $100 | ' |
Restructuring Reserve [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance at beginning of the period | ' | ' | 532 | 3,424 | 17 | 2,373 | 368 | 793 | 147 | 258 | ' | ' |
Restructuring Charges | ' | ' | 10 | 437 | 0 | 101 | 1 | 91 | 9 | 245 | ' | ' |
Cash Payments | ' | ' | -328 | -2,886 | -8 | -2,295 | -304 | -403 | -16 | -188 | ' | ' |
Adjustments to prior restructuring costs | ' | ' | 4 | -265 | -9 | -144 | 13 | -65 | 0 | -56 | ' | ' |
Balance at the end of the period | $218 | $710 | $218 | $710 | $0 | $35 | $78 | $416 | $140 | $259 | ' | ' |
StockBased_Compensation_Detail
Stock-Based Compensation (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Jun. 28, 2014 | Jun. 29, 2013 | Jun. 28, 2014 | Jun. 29, 2013 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Total stock-based compensation | $3,320 | $2,511 | $6,410 | $4,423 |
Cost of products sold | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Total stock-based compensation | 211 | 164 | 377 | 289 |
Research and development | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Total stock-based compensation | 1,354 | 1,041 | 2,388 | 1,813 |
Selling, general and administrative | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Total stock-based compensation | 1,755 | 1,306 | 3,645 | 2,321 |
Restricted stock | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
RSU's granted during the period | 49,296 | ' | 98,592 | ' |
Number of tranches for the options | ' | ' | 2 | ' |
RSU's vested during the period | ' | ' | 49,296 | ' |
Q1 2014 Grant | Restricted stock | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Total stock-based compensation | ' | ' | 500 | ' |
Q2 2014 Grant | Restricted stock | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Total stock-based compensation | $200 | ' | $700 | ' |
Segment_and_Geographic_Informa2
Segment and Geographic Information (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 28, 2014 | Jun. 29, 2013 | Jun. 28, 2014 | Jun. 29, 2013 |
segment | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' |
Number of reportable segments | ' | ' | 1 | ' |
Total revenue | $99,320 | $84,694 | $195,957 | $155,852 |
Total revenue as percentage | 100.00% | 100.00% | 100.00% | 100.00% |
Asia | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' |
Total revenue | 73,459 | 62,318 | 146,203 | 111,657 |
Total revenue as percentage | 74.00% | 74.00% | 75.00% | 72.00% |
Europe | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' |
Total revenue | 15,718 | 12,104 | 30,428 | 24,808 |
Total revenue as percentage | 16.00% | 14.00% | 15.00% | 16.00% |
Americas | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' |
Total revenue | $10,143 | $10,272 | $19,326 | $19,387 |
Total revenue as percentage | 10.00% | 12.00% | 10.00% | 12.00% |