DEI_Document
DEI Document | 6 Months Ended | ||
Jun. 30, 2014 | Aug. 01, 2014 | Dec. 31, 2013 | |
DEI [Abstract] | ' | ' | ' |
Common Stock, Shares, Issued | ' | ' | 29,198,000 |
Entity Registrant Name | 'Radisys Corporation | ' | ' |
Entity Central Index Key | '0000873044 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Filer Category | 'Accelerated Filer | ' | ' |
Document Type | '10-Q | ' | ' |
Document Period End Date | 30-Jun-14 | ' | ' |
Document Fiscal Year Focus | '2014 | ' | ' |
Document Fiscal Period Focus | 'Q2 | ' | ' |
Amendment Flag | 'false | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 36,247,405 | ' |
Common Stock, Shares, Outstanding | ' | ' | 29,198,000 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Revenues | $49,964 | $65,438 | $93,763 | $133,616 |
Cost of sales: | ' | ' | ' | ' |
Cost of sales | 35,902 | 43,756 | 66,499 | 90,062 |
Amortization of purchased technology | 2,055 | 2,218 | 4,109 | 4,435 |
Total cost of sales | 37,957 | 45,974 | 70,608 | 94,497 |
Gross margin | 12,007 | 19,464 | 23,155 | 39,119 |
Research and development | 8,408 | 12,020 | 16,827 | 23,555 |
Selling, general and administrative | 8,953 | 9,527 | 18,549 | 20,623 |
Intangible asset amortization | 1,260 | 1,304 | 2,557 | 2,608 |
Restructuring and acquisition-related charges, net | 815 | -114 | 2,115 | 1,156 |
Income (loss) from operations | -7,429 | -3,273 | -16,893 | -8,823 |
Interest expense | -345 | -281 | -632 | -613 |
Other income (expense), net | 157 | 226 | 336 | 373 |
Income (loss) before income tax expense (benefit) | -7,617 | -3,328 | -17,189 | -9,063 |
Income tax expense (benefit) | 594 | 784 | 1,456 | 1,606 |
Net income (loss) | ($8,211) | ($4,112) | ($18,645) | ($10,669) |
Net income (loss) per share: | ' | ' | ' | ' |
Basic (in dollars per share) | ($0.23) | ($0.14) | ($0.57) | ($0.37) |
Diluted (in dollars per share) | ($0.23) | ($0.14) | ($0.57) | ($0.37) |
Weighted average shares outstanding: | ' | ' | ' | ' |
Basic (in shares) | 36,096 | 28,669 | 32,980 | 28,570 |
Diluted (in shares) | 36,096 | 28,669 | 32,980 | 28,570 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statement of Comprehensive Income (Loss) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Net income (loss) | ($8,211) | ($4,112) | ($18,645) | ($10,669) |
Translation adjustments | 37 | -257 | 163 | -451 |
Net adjustment for fair value of hedge derivatives (A) | 92 | -756 | 607 | -648 |
Other comprehensive income (loss) | 129 | -1,013 | 770 | -1,099 |
Comprehensive income (loss) | ($8,082) | ($5,125) | ($17,875) | ($11,768) |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $34,606 | $25,482 |
Accounts receivable, net | 42,091 | 41,359 |
Other receivables | 9,744 | 2,634 |
Inventories, net | 19,776 | 25,409 |
Other current assets | 6,748 | 4,688 |
Deferred tax assets, net | 1,172 | 1,121 |
Total current assets | 114,137 | 100,693 |
Property and equipment, net | 12,346 | 14,854 |
Intangible assets, net | 49,844 | 56,510 |
Long-term deferred tax assets, net | 2,430 | 2,686 |
Other assets | 1,386 | 1,442 |
Total assets | 180,143 | 176,185 |
Current liabilities: | ' | ' |
Accounts payable | 34,736 | 35,081 |
Accrued wages and bonuses | 4,466 | 5,547 |
Deferred Revenue | 12,503 | 8,167 |
Convertible senior notes | 18,000 | 0 |
Line of Credit Facility, Amount Outstanding | 10,000 | 15,000 |
Other accrued liabilities | 10,660 | 9,978 |
Total current liabilities | 90,365 | 73,773 |
Long-term liabilities: | ' | ' |
Convertible senior notes | 0 | 18,000 |
Other long-term liabilities | 3,197 | 3,276 |
Total long-term liabilities | 3,197 | 21,276 |
Total liabilities | 93,562 | 95,049 |
Shareholders' equity: | ' | ' |
Common stock — no par value, 100,000 shares authorized; 28,173 and 27,949 shares issued and outstanding at June 30, 2012 and December 31, 2011 | 332,690 | 309,370 |
Accumulated deficit | -247,735 | -229,090 |
Accumulated other comprehensive income: | ' | ' |
Cumulative translation adjustments | 1,894 | 1,731 |
Unrealized loss on hedge instruments | -268 | -875 |
Total accumulated other comprehensive income | 1,626 | 856 |
Total shareholders’ equity | 86,581 | 81,136 |
Total liabilities and shareholders' equity | $180,143 | $176,185 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets Condensed Consolidated Balance Sheets Parenthetical (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, except Per Share data, unless otherwise specified | ||
Balance Sheet Parenthetical [Abstract] | ' | ' |
Common Stock, Par Value | $0 | $0 |
Common Stock, Shares Authorized | 100,000 | 100,000 |
Common Stock, Shares, Issued | ' | 29,198 |
Common Stock, Shares, Outstanding | ' | 29,198 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Cash Flows (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Net income (loss) | ($18,645) | ($10,669) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 10,336 | 11,106 |
Inventory valuation allowance | 1,334 | 657 |
Deferred income taxes | 707 | 737 |
Stock-based compensation expense | 2,581 | 2,122 |
Disposal Group, Not Discontinued Operation, Loss (Gain) on Write-down | 0 | 2,868 |
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal | 0 | -1,532 |
Other | 1,529 | -1,249 |
Changes in operating assets and liabilities | ' | ' |
Accounts receivable | -565 | 6,671 |
Other receivables | -7,096 | -164 |
Inventories | 4,338 | 3,093 |
Other current assets | -2,008 | 247 |
Accounts payable | -320 | -4,961 |
Accrued wages and other | -1,071 | -1,271 |
Accrued restructuring | -778 | 188 |
Increase (Decrease) in Deferred Revenue | 4,336 | -2,743 |
Net cash provided by operating activities | -5,322 | 5,100 |
Cash flows from investing activities: | ' | ' |
Capital expenditures | -1,277 | -3,378 |
Payments for (Proceeds from) Other Investing Activities | 0 | 1,082 |
Net cash used in investing activities | -1,277 | -2,296 |
Cash flows from financing activities: | ' | ' |
Proceeds from (Repayments of) Lines of Credit | -5,000 | 15,000 |
Repayments of Long-term Debt | 0 | -16,919 |
Proceeds from issuance of common stock | 21,020 | 418 |
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability | 127 | -1,345 |
Other financing activities | -301 | -413 |
Net cash provided by (used in) financing activities | 15,719 | -1,914 |
Effect of exchange rate changes on cash | 4 | -146 |
Net increase (decrease) in cash and cash equivalents | 9,124 | 744 |
Cash and Cash Equivalents, beginning of period | 25,482 | 33,182 |
Cash and Cash Equivalents, end of period | 34,606 | 33,926 |
Supplemental disclosure of cash flow information: | ' | ' |
Interest | 611 | 705 |
Income taxes | $321 | $647 |
Significant_Accounting_Policie
Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2014 | |
Accounting Policies [Abstract] | ' |
Significant Accounting Policies | ' |
Significant Accounting Policies | |
Radisys Corporation (the “Company” or “Radisys”) has adhered to the accounting policies set forth in its Annual Report on Form 10-K for the year ended December 31, 2013 in preparing the accompanying interim condensed consolidated financial statements. The preparation of these statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, expenses and related disclosure of contingent assets and liabilities. Actual results could differ from those estimates. Additionally, the accompanying financial data as of June 30, 2014 and for the three and six months ended June 30, 2014 and 2013 has been prepared by the Company, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been omitted pursuant to such rules and regulations. However, the Company believes that the disclosures are adequate to make the information presented not misleading. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and the notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2013. | |
Certain prior year balances have been reclassified to conform to the current year’s presentation. Such reclassifications did not affect total cash flows, total net revenues, operating loss, net loss, total assets, total liabilities or shareholders’ equity. | |
The financial information included herein reflects all normal recurring adjustments that are, in the opinion of management, necessary for a fair presentation of the results for interim periods. |
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Fair Value Disclosures | ' | |||||||||||||||
Fair Value of Financial Instruments | ||||||||||||||||
Assets and Liabilities Measured at Fair Value on a Recurring Basis | ||||||||||||||||
The Company measures at fair value certain financial assets and liabilities. GAAP specifies a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company's market assumptions. These two types of inputs have created the following fair-value hierarchy: | ||||||||||||||||
Level 1— Quoted prices for identical instruments in active markets; | ||||||||||||||||
Level 2— Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets; and | ||||||||||||||||
Level 3— Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. | ||||||||||||||||
Foreign currency forward contracts are measured at fair value using models based on observable market inputs such as foreign currency exchange rates; therefore, they are classified within Level 2 of the valuation hierarchy. The cash surrender value of life insurance contracts and deferred compensation liability are measured at fair value using quoted market prices for similar instruments; therefore, they are classified within Level 2 of the valuation hierarchy. | ||||||||||||||||
The Company has obligations ("contingent consideration"), to be paid in cash, related to the acquisition of Continuous Computing Corporation ("Continuous Computing") based on the amount of product royalty revenues to be generated by a specified set of contracts associated with certain of Continuous Computing's products over a period of 36 months after closing. The contingent consideration liability was established at the time of acquisition and is evaluated at the end of each reporting period. As the significant inputs used in determining the fair value are unobservable, this liability is classified within Level 3 of the fair value hierarchy. | ||||||||||||||||
The fair value of this contingent consideration is determined by calculating the net present value of the expected payments using significant inputs that are not observable in the market, including revenue projections and discount rates consistent with the level of risk of achievement; therefore the Company developed its own assumptions for the expected product royalty revenues generated under the arrangement. The fair value of the contingent consideration is affected most significantly by changes in the amount and timing of the revenue projections. If the revenue projections increase or decrease the fair value of the contingent consideration will increase or decrease accordingly in amounts that will vary based on the timing of the projected revenues and the timing of the expected payments. | ||||||||||||||||
The following table summarizes the fair value measurements for the Company's financial instruments (in thousands): | ||||||||||||||||
Fair Value Measurements as of June 30, 2014 | ||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||
Cash surrender value of life insurance contracts (A) | $ | 1,873 | $ | — | $ | 1,873 | $ | — | ||||||||
Deferred compensation liability (A) | (1,084 | ) | — | (1,084 | ) | — | ||||||||||
Foreign currency forward contracts | 662 | — | 662 | — | ||||||||||||
Contingent consideration liability | (302 | ) | — | — | (302 | ) | ||||||||||
Total | $ | 1,149 | $ | — | $ | 1,451 | $ | (302 | ) | |||||||
Fair Value Measurements as of December 31, 2013 | ||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||
Cash surrender value of life insurance contracts (A) | $ | 1,866 | $ | — | $ | 1,866 | $ | — | ||||||||
Deferred compensation liability (A) | (1,276 | ) | — | (1,276 | ) | — | ||||||||||
Foreign currency forward contracts | (169 | ) | — | (169 | ) | — | ||||||||||
Contingent consideration liability | (390 | ) | — | — | (390 | ) | ||||||||||
Total | $ | 31 | $ | — | $ | 421 | $ | (390 | ) | |||||||
(A) The company terminated its Deferred Compensation Plan in 2013. The distribution of plan assets and participant balances began during the quarter ended September 30, 2013 and will be substantially completed by September 30, 2014. | ||||||||||||||||
The following table summarizes our Level 3 activity for the Company's contingent consideration liability (in thousands): | ||||||||||||||||
Level 3 | ||||||||||||||||
Balance at December 31, 2013 | $ | 390 | ||||||||||||||
Change in estimate | (127 | ) | ||||||||||||||
Payments | — | |||||||||||||||
Accretion | 39 | |||||||||||||||
Balance at June 30, 2014 | $ | 302 | ||||||||||||||
The Company records all changes in estimates and accretion on the contingent consideration liability to restructuring and other charges, net in the Condensed Consolidated Statements of Operations and the contingent consideration liability is recorded in other accrued liabilities on the Condensed Consolidated Balance Sheet at June 30, 2014. |
Accounts_Receivable_and_Other_
Accounts Receivable and Other Receivables | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Receivables [Abstract] | ' | |||||||
Accounts Receivable and Other Receivables | ' | |||||||
Accounts Receivable and Other Receivables | ||||||||
Accounts receivable consists of sales to the Company's customers which are generally based on standard terms and conditions. Accounts receivable balances consisted of the following (in thousands): | ||||||||
June 30, | December 31, | |||||||
2014 | 2013 | |||||||
Accounts receivable, gross | $ | 42,273 | $ | 41,707 | ||||
Less: allowance for doubtful accounts | (182 | ) | (348 | ) | ||||
Accounts receivable, net | $ | 42,091 | $ | 41,359 | ||||
As of June 30, 2014 and December 31, 2013, the balance in other receivables was $9.7 million and $2.6 million. Other receivables consisted primarily of non-trade receivables including inventory transferred to the Company's contract manufacturing partners on which the Company does not recognize revenue and receivables for value-added taxes. |
Inventories
Inventories | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Inventory Disclosure [Abstract] | ' | |||||||||||||||
Inventory Disclosure | ' | |||||||||||||||
Inventories | ||||||||||||||||
Inventories consisted of the following (in thousands): | ||||||||||||||||
June 30, | December 31, | |||||||||||||||
2014 | 2013 | |||||||||||||||
Raw materials | $ | 16,836 | $ | 22,416 | ||||||||||||
Work-in-process | 665 | 1,194 | ||||||||||||||
Finished goods | 9,750 | 9,644 | ||||||||||||||
27,251 | 33,254 | |||||||||||||||
Less: inventory valuation allowance | (7,475 | ) | (7,845 | ) | ||||||||||||
Inventories, net | $ | 19,776 | $ | 25,409 | ||||||||||||
As of June 30, 2014, the balance of consigned inventory at the Company’s contract manufacturing partner was $6.1 million. | ||||||||||||||||
Consigned inventory is held at third-party locations, including the Company's contract manufacturing partner and customers. The Company retains title to the inventory until purchased by the third-party. The Company is contractually obligated to purchase the inventory on consignment from its contract manufacturer for the cost of excess inventory that is purchased as a result of the Company's forecasted demand when there is no alternative use. Consigned inventory, consisting of raw materials and finished goods was $8.0 million and $12.0 million at June 30, 2014 and December 31, 2013. | ||||||||||||||||
The Company recorded the following charges associated with the valuation of inventory and the adverse purchase commitment liability (in thousands): | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Inventory, net | $ | 182 | $ | 429 | $ | 1,344 | $ | 1,467 | ||||||||
Adverse purchase commitments | 281 | 164 | 154 | 132 | ||||||||||||
Accrued_Restructuring
Accrued Restructuring | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Restructuring and Related Activities [Abstract] | ' | |||||||||||||||
Restructuring and Related Activities Disclosure [Text Block] | ' | |||||||||||||||
Restructuring and Other Charges | ||||||||||||||||
The following table summarizes the Company's restructuring and other charges as presented in the Condensed Consolidated Statement of Operations (in thousands): | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Employee-related restructuring expenses | $ | 403 | $ | 648 | $ | 1,256 | $ | 1,165 | ||||||||
Fair value adjustments to Continuous Computing contingent consideration liability | (127 | ) | (605 | ) | (127 | ) | (1,345 | ) | ||||||||
Facility reductions | — | — | (6 | ) | — | |||||||||||
Write off of purchased computer software | — | (200 | ) | — | 2,868 | |||||||||||
Net gain from sale of OS-9 software assets | — | 43 | — | (1,532 | ) | |||||||||||
Integration-related expenses | 539 | — | 992 | — | ||||||||||||
Restructuring and other charges, net | $ | 815 | $ | (114 | ) | $ | 2,115 | $ | 1,156 | |||||||
Restructuring and other charges includes expenses incurred for employee terminations due to a reduction of personnel resources resulting from modifications of business strategy or business emphasis. Employee-related restructuring expenses include severance benefits, notice pay and outplacement services. Restructuring and other charges may also include expenses incurred associated with acquisition or divestiture activities, facility abandonments and other expenses associated with business restructuring actions. | ||||||||||||||||
For the three months ended June 30, 2014, the Company recorded the following restructuring charges: | ||||||||||||||||
• | $0.4 million net expense relating to the severance of employees in connection with the previously reported Penang site closure, as well as severance for two additional employees, net of reductions resulting from changes in previously estimated amounts for employee severance and associated payroll costs; | |||||||||||||||
• | $0.5 million integration-related net expense principally associated with asset disposals and personnel overlap resulting from resource consolidation primarily associated with the Penang site closure; and | |||||||||||||||
• | $0.1 million gain due to the decrease in fair value of the Continuous Computing contingent consideration liability. The Company assesses the fair value of the contingent consideration liability on a quarterly basis, adjusting the liability to fair value based on a detailed analysis of all expected contingent consideration eligible revenues. | |||||||||||||||
For the three months ended June 30, 2013, the Company recorded the following restructuring and other charges: | ||||||||||||||||
• | $0.2 million gain resulting from forgiveness of remaining contractual payments due to our cancelled Security Gateway ("SEG") program partner; | |||||||||||||||
• | $0.6 million gain due to the decrease in fair value of the Continuous Computing contingent consideration liability; and | |||||||||||||||
• | $0.6 million net expense for the severance of employees, net of reductions resulting from changes in previously estimated amounts for employee severance and associated payroll costs. | |||||||||||||||
For the six months ended June 30, 2014, the Company recorded the following restructuring and acquisition-related charges: | ||||||||||||||||
• | $1.3 million net expense relating to the severance of employees in connection with the previously reported Penang site closure, as well as severance for 14 additional employees, net of reductions resulting from changes in previously estimated amounts for employee severance and associated payroll costs; | |||||||||||||||
• | $1.0 million integration-related net expense principally associated with asset disposals and personnel overlap resulting from resource consolidation primarily associated with the Penang site closure; and | |||||||||||||||
• | $0.1 million gain due to the decrease in fair value of the Continuous Computing contingent consideration liability. | |||||||||||||||
For the six months ended June 30, 2013, the Company recorded the following restructuring and acquisition-related charges: | ||||||||||||||||
• | $1.5 million net gain from the sale of the Company's OS-9 software assets; | |||||||||||||||
• | $2.9 million expense relating to the write off of the Company's SEG purchased computer software due to management's decision to abandon future development of this technology; | |||||||||||||||
• | $1.3 million gain due to the decrease in fair value of the Continuous Computing contingent consideration liability; and | |||||||||||||||
• | $1.2 million net expense for the severance of employees, net of reductions resulting from changes in previously estimated amounts for employee severance and associated payroll costs. | |||||||||||||||
Accrued restructuring, which is included in other accrued liabilities and other long-term liabilities in the accompanying Condensed Consolidated Balance Sheets as of June 30, 2014 and December 31, 2013, consisted of the following (in thousands): | ||||||||||||||||
Severance, payroll taxes and other employee benefits | Facility reductions | Total | ||||||||||||||
Balance accrued as of December 31, 2013 | $ | 1,786 | $ | 961 | $ | 2,747 | ||||||||||
Additions | 1,333 | — | 1,333 | |||||||||||||
Reversals | (77 | ) | (6 | ) | (83 | ) | ||||||||||
Expenditures | (1,721 | ) | (295 | ) | (2,016 | ) | ||||||||||
Balance accrued as of June 30, 2014 | $ | 1,321 | $ | 660 | $ | 1,981 | ||||||||||
Of the $2.0 million accrued restructuring at June 30, 2014, $0.2 million is included in other long-term liabilities, with the remaining balance being included in other accrued liabilities on the Condensed Consolidated Balance Sheets. | ||||||||||||||||
The Company evaluates the adequacy of the accrued restructuring charges on a quarterly basis. Reversals are recorded in the period in which the Company determines that expected restructuring obligations are less than the amounts accrued. |
ShortTerm_Borrowings
Short-Term Borrowings | 6 Months Ended | |
Jun. 30, 2014 | ||
Short-term Debt [Abstract] | ' | |
Short-term Debt | ' | |
Short-Term Borrowings | ||
Silicon Valley Bank | ||
At the beginning of the first quarter of 2014, the Company had a $35.0 million secured revolving line of credit agreement (as amended, the "Agreement") with Silicon Valley Bank ("SVB") with a stated maturity date of July 28, 2016. On March 14, 2014, the Company entered into an amended and restated $25.0 million revolving line of credit agreement with SVB (as amended, the "2014 Agreement") that replaces the Agreement and has a stated maturity date of July 28, 2016. On May 30, 2014 the 2014 Agreement was amended to increase the letter of credit sublimit under the secured revolving credit facility from $1,000,000 to $2,000,000. The secured revolving credit facility under the 2014 Agreement is available for cash borrowings and is subject to a borrowing formula based upon eligible accounts receivable less outstanding letters of credit (aggregate letters of credit are not to exceed $2,000,000). Eligible accounts receivable include 80% of U.S. and 65% of foreign accounts receivable (80% in certain cases), not greater than 60 days past original invoice date. The interest rate is dependent upon the Company's Liquidity (as defined in the 2014 Agreement) when compared to a pre-determined threshold (the "Liquidity Threshold"), which is defined in the 2014 Agreement as $15.0 million, with the exception of the last month end of each quarter, where it is defined as $20.0 million. Liquidity is calculated under the 2014 Agreement as unrestricted cash plus unused availability on the revolving line of credit; however, if the Company's 4.50% convertible senior notes due 2015 (the "2015 convertible senior notes") are not renewed or refinanced 120 days prior to their maturity date, which is February 15, 2015, Liquidity (for purposes of testing against the Liquidity Threshold) will be reduced by the outstanding principal amount of the 2015 convertible senior notes. The calculation of interest under the 2014 Agreement is as follows: | ||
• | When Liquidity is above the Liquidity Threshold, the interest rate is the prime rate (as published in Wall Street Journal) plus 0.75%; and | |
• | When Liquidity is below the Liquidity Threshold, the interest rate is the prime rate (as published in Wall Street Journal) plus 2.25%. | |
Under the 2014 Agreement, the Company is required to make interest payments monthly. The Company was further required to pay a loan modification fee of $35,000 and will be required to pay a commitment fee equal to $35,000 on July 29, 2014 and annually thereafter. Under the 2014 Agreement the Company is required to pay the higher of actual monthly interest incurred or the interest equivalent of $10.0 million in average monthly borrowings. If the Company terminates the commitment under the 2014 Agreement prior to the maturity date, the Company is required to pay a cancellation fee equal to 1.5% of the commitment under the 2014 Agreement. | ||
The 2014 Agreement requires the Company to make certain representations, warranties and other agreements that are customary in credit agreements of this type. The 2014 Agreement also includes a financial covenant that requires the Company to maintain minimum Liquidity of $10.0 million tested monthly. | ||
As of June 30, 2014 and December 31, 2013, the Company had outstanding balances of $10.0 million and $15.0 million under the 2014 Agreement and the Agreement, respectively. At June 30, 2014, the Company had $14.0 million of total borrowing availability remaining under the 2014 Agreement. | ||
On July 9, 2014, the Company entered into a letter agreement (the "letter agreement") with SVB relating to the Company's amended and restated $25.0 million secured revolving line of credit. The 2014 Agreement includes an Operating Accounts covenant stating that the Company and its subsidiaries may hold no more than $8.0 million in accounts maintained at financial institutions outside of the United States through August 31, 2014. As of June 30, 2014, the amount of cash held by the Company and its subsidiaries in accounts maintained at financial institutions outside of the United States was $9.0 million. Pursuant to the terms of the letter agreement, the Company obtained a waiver from SVB of the requirement to comply with the Operating Accounts covenant. After giving effect to the waiver, the Company was in compliance with all covenants under the 2014 Agreement. |
Convertible_Debt
Convertible Debt | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Long-term Debt | ' | |||||||
Convertible Debt | ||||||||
2013 Convertible Senior Notes | ||||||||
On February 15, 2013, the Company repaid at maturity the entire outstanding balance of the 2.75% convertible senior notes due 2013 (the "2013 convertible senior notes") in accordance with the terms thereof. | ||||||||
2015 Convertible Senior Notes | ||||||||
On June 20, 2012, the Company entered into subscription agreements with certain holders of the Company's 2013 convertible senior notes. Pursuant to the subscription agreements, on June 29, 2012 the Company exchanged $18.0 million aggregate principal amount of the 2013 convertible senior notes for $18.0 million aggregate principal amount of the 2015 convertible senior notes. The 2015 convertible senior notes mature on February 15, 2015. Holders of the 2015 convertible senior notes may convert their notes into a number of shares of the Company's common stock determined as set forth in the indenture governing the notes at their option on any day to and including the business day prior to the maturity date. The 2015 convertible senior notes are initially convertible into 117.2333 shares of the Company's common stock per $1,000 principal amount of the notes (which is equivalent to a conversion price of approximately $8.53 per share), subject to adjustment upon the occurrence of certain events. Upon the occurrence of a fundamental change, holders of the 2015 convertible senior notes may require the Company to repurchase some or all of their notes for cash at a price equal to 100% of the principal amount of the notes being repurchased, plus accrued and unpaid interest, if any. In addition, if certain fundamental changes occur, the Company may be required in certain circumstances to increase the conversion rate for any 2015 convertible senior notes converted in connection with such fundamental changes by a specified number of shares of the Company's common stock. The 2015 convertible senior notes are the Company's general unsecured obligations and rank equal in right of payment to all of its existing and future senior indebtedness, and senior in right of payment to the Company's future subordinated debt. The Company's obligations under the 2015 convertible senior notes are not guaranteed by, and are effectively subordinated in right of payment to all existing and future obligations of its subsidiaries and are effectively subordinated in right of payment to its future secured indebtedness to the extent of the assets securing such debt. | ||||||||
As of June 30, 2014 and December 31, 2013, the Company had outstanding 2015 convertible senior notes with a face value of $18.0 million. As of June 30, 2014 and December 31, 2013, the fair values of our 2015 convertible senior notes were $17.9 million and $17.8 million, which are based on the most recent quoted prices of the Company's publicly traded debt on each balance sheet date. | ||||||||
The following table outlines the effective interest rate, contractually stated interest costs, and costs related to the amortization of issuance costs for the Company's 2013 and 2015 convertible senior notes: | ||||||||
Three Months Ended | Six Months Ended | |||||||
June 30, | June 30, | |||||||
2014 | 2013 | 2014 | 2013 | |||||
Effective interest rate of 2013 convertible senior notes | NA | N/A | N/A | 3.73% | ||||
Effective interest rate of 2015 convertible senior notes | 4.50% | 4.50% | 4.50% | 4.50% | ||||
Contractually stated interest costs | $203 | $202 | $405 | $463 | ||||
Amortization of issuance costs | $11 | $11 | $21 | $39 |
Commitments_and_Contingencies
Commitments and Contingencies | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||||
Commitments and Contingencies Disclosure | ' | |||||||
Commitments and Contingencies | ||||||||
Adverse Purchase Commitments | ||||||||
The Company is contractually obligated to reimburse its contract manufacturer for the cost of excess inventory used in the manufacture of the Company's products if there is no alternative use. This liability, referred to as adverse purchase commitments, is presented in other accrued liabilities in the accompanying Condensed Consolidated Balance Sheets. Estimates for adverse purchase commitments are derived from reports received on a quarterly basis from the Company's contract manufacturer. Increases to this liability are charged to cost of sales. If and when the Company takes possession of inventory reserved for in this liability, the liability is transferred from other accrued liabilities to the excess and obsolete inventory valuation allowance (Note 4 —Inventories). | ||||||||
In November 2013, the Company notified its existing contract manufacturer of the Company's intent to transition manufacturing to another contract manufacturer co-located with the Company's Shenzhen site. Upon notification of intent to terminate the relationship, the manufacturing agreement contractually obligates the Company to purchase all inventories in excess of ninety days demand. As of June 30, 2014 the existing contract manufacturer had yet to invoke this clause and therefore an inventory deposit and offsetting liability have not been reflected on the Condensed Consolidated Balance Sheets. The value of the potential liability in excess of the current adverse purchase commitment was $4.4 million at June 30, 2014. | ||||||||
Guarantees and Indemnification Obligations | ||||||||
As permitted under Oregon law, the Company has agreements whereby it indemnifies its officers, directors and certain finance employees for certain events or occurrences while an officer, director or employee is or was serving in such capacity at the request of the Company. The term of the indemnification period is for the officer's, director's or employee's lifetime. The maximum potential amount of future payments the Company could be required to make under these indemnification agreements is unlimited; however, the Company has a Director and Officer insurance policy that limits its exposure and enables the Company to recover a portion of any future amounts paid. To date, the Company has not incurred any costs associated with these indemnification agreements and, as a result, management believes the estimated fair value of these indemnification agreements is minimal. Accordingly, the Company has not recorded any liabilities for these agreements as of June 30, 2014. | ||||||||
The Company enters into standard indemnification agreements in its ordinary course of business. Pursuant to these agreements, the Company indemnifies, holds harmless, and agrees to reimburse the indemnified party for losses suffered or incurred by the indemnified party, generally the Company's business partners or customers, in connection with patent, copyright or other intellectual property infringement claims by any third party with respect to the Company's current products, as well as claims relating to property damage or personal injury resulting from the performance of services by us or the Company's subcontractors. The maximum potential amount of future payments the Company could be required to make under these indemnification agreements is generally limited. Historically, the Company's costs to defend lawsuits or settle claims relating to such indemnity agreements have been minimal and accordingly management believes the estimated fair value of the agreements is immaterial. | ||||||||
Accrued Warranty | ||||||||
The Company provides for the estimated cost of product warranties at the time it recognizes revenue. Products are generally sold with warranty coverage for a period of 12 or 24 months after shipment. Parts and labor are covered under the terms of the warranty agreement. The workmanship of the Company’s products produced by the contract manufacturer is covered under warranties provided by the contract manufacturer for 12 months. The warranty provision is based on historical experience by product family. The Company engages in extensive product quality programs and processes, including actively monitoring and evaluating the quality of its components suppliers; however ongoing failure rates, material usage and service delivery costs incurred in correcting product failure, as well as specific product class failures out of the Company’s baseline experience, affect the estimated warranty obligation. If actual product failure rates, material usage or service delivery costs differ from estimates, revisions to the estimated warranty liability would be required. | ||||||||
The following is a summary of the change in the Company's warranty accrual reserve (in thousands): | ||||||||
Six Months Ended | ||||||||
June 30, | ||||||||
2014 | 2013 | |||||||
Warranty liability balance, beginning of the period | $ | 3,328 | $ | 3,954 | ||||
Product warranty accruals | 1,219 | 1,899 | ||||||
Utilization of accrual | (1,604 | ) | (2,183 | ) | ||||
Warranty liability balance, end of the period | $ | 2,943 | $ | 3,670 | ||||
At June 30, 2014 and December 31, 2013, $2.3 million and $2.6 million of the warranty liability balance was included in other accrued liabilities and $0.6 million and $0.7 million was included in other long-term liabilities in the accompanying Condensed Consolidated Balance Sheets. |
Basic_and_Diluted_Net_Income_L
Basic and Diluted Net Income (Loss) Per Share | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
Earnings Per Share [Text Block] | ' | |||||||||||||||
Basic and Diluted Net Loss per Share | ||||||||||||||||
A reconciliation of the numerator and the denominator used to calculate basic and diluted net loss per share is as follows (in thousands, except per share amounts): | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Numerator — Basic | ||||||||||||||||
Net loss | $ | (8,211 | ) | $ | (4,112 | ) | $ | (18,645 | ) | $ | (10,669 | ) | ||||
Numerator — Diluted | ||||||||||||||||
Net loss | $ | (8,211 | ) | $ | (4,112 | ) | $ | (18,645 | ) | $ | (10,669 | ) | ||||
Interest on convertible notes, net of tax benefit (B) | — | — | — | — | ||||||||||||
Net loss, diluted | $ | (8,211 | ) | $ | (4,112 | ) | $ | (18,645 | ) | $ | (10,669 | ) | ||||
Denominator — Basic | ||||||||||||||||
Weighted average shares used to calculate net loss per share, basic | 36,096 | 28,669 | 32,980 | 28,570 | ||||||||||||
Denominator — Diluted | ||||||||||||||||
Weighted average shares used to calculate net loss per share, basic | 36,096 | 28,669 | 32,980 | 28,570 | ||||||||||||
Effect of escrow shares (A) | — | — | — | — | ||||||||||||
Effect of convertible notes (B) | — | — | — | — | ||||||||||||
Effect of dilutive restricted stock units (C) | — | — | — | — | ||||||||||||
Effect of dilutive stock options (C) | — | — | — | — | ||||||||||||
Weighted average shares used to calculate net loss per share, diluted | 36,096 | 28,669 | 32,980 | 28,570 | ||||||||||||
Net loss per share | ||||||||||||||||
Basic | $ | (0.23 | ) | $ | (0.14 | ) | $ | (0.57 | ) | $ | (0.37 | ) | ||||
Diluted | $ | (0.23 | ) | $ | (0.14 | ) | $ | (0.57 | ) | $ | (0.37 | ) | ||||
(A) | For the three months ended June 30, 2014 there were no remaining contingently issuable shares outstanding. For the six months ended June 30, 2013, 30,000 contingently issuable shares were excluded from the calculation as their effect would have been anti-dilutive. | |||||||||||||||
(B) | For each of the three months ended June 30, 2014 and 2013, 2.1 million as-if converted shares associated with the Company's convertible senior notes were excluded from the calculation as their effect would have been anti-dilutive. For the six months ended June 30, 2014 and 2013, 2.1 million and 2.4 million as-if converted shares associated with the Company's convertible senior notes were excluded from the calculation as their effect would have been anti-dilutive. | |||||||||||||||
(C) | For the three and six months ended June 30, 2014 and 2013, the following equity awards, by type, were excluded from the calculation, as their effect would have been anti-dilutive (in thousands): | |||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Stock options | 3,042 | 2,375 | 3,042 | 2,375 | ||||||||||||
Restricted stock units | 300 | 441 | 300 | 441 | ||||||||||||
Performance based restricted stock units (D) | 409 | 2,087 | 409 | 2,087 | ||||||||||||
Total equity award shares excluded | 3,751 | 4,903 | 3,751 | 4,903 | ||||||||||||
(D) | Shares under the Long-Term Incentive Plan ("LTIP") are presented based on attainment of 100% of the performance goals being met. The LTIP provides for the grants of awards payable in shares of common stock upon the achievement of performance goals set by the Company's Compensation and Development Committee. In addition to the performance conditions, the awards contain market-based multipliers based on the average price of the Company's common stock thirty days prior to the end of each semi-annual performance period. The maximum multiplier for a given semi-annual performance period is 2.75x the original grant and overall achievement is limited to a maximum of 2.5x of the target award over the entire performance period. Based on this formula, the maximum number of shares that could be earned was 0.8 million and 2.0 million for the three months ended June 30, 2014 and 2013. |
Income_Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2014 | |
Income Tax Disclosure [Abstract] | ' |
Income Tax Disclosure | ' |
Income Taxes | |
The Company's effective tax rate for the three months ended June 30, 2014 differs from the statutory rate due to a full valuation allowance provided against its United States (“U.S.”) net deferred tax assets, a partial valuation allowance against Canadian deferred tax assets, and taxes on foreign income that differ from the U.S. tax rate. The Company’s effective tax rate for the three months ended June 30, 2013 differs from the statutory rate due the full valuation allowance provided against its U.S. net deferred tax assets, Canadian research and experimental development claims, and taxes on foreign income that differ from the U.S. tax rate. | |
The Company utilizes the asset and liability method of accounting for income taxes. The Company records deferred tax assets to the extent it believes these assets will more likely than not be realized. In making such determination, the Company considers all available positive and negative evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income, tax planning strategies, and recent financial performance. Based upon the Company's review of all positive and negative evidence, including its three year U.S. cumulative pre-tax book loss and taxable loss, it concluded that a full and a partial valuation allowance should continue to be recorded against its U.S. and Canadian net deferred tax assets at June 30, 2014. In certain other foreign jurisdictions, where the Company does not have cumulative losses or other negative evidence, the Company had net deferred tax assets of $3.6 million and $3.8 million at June 30, 2014 and December 31, 2013. In the future, if the Company determines that it is more likely than not that it will realize its U.S. and Canadian net deferred tax assets, it will reverse the applicable portion of the valuation allowance and recognize an income tax benefit in the period in which such determination is made. | |
The Company's unrecognized tax benefits and related interest and penalties during the three months ended June 30, 2014 increased by $0.3 million primarily due to new uncertain tax exposures. The ending balance for the unrecognized tax benefits was approximately $3.9 million at June 30, 2014. The related interest and penalties were $0.5 million and $0.3 million. The uncertain tax positions that are reasonably possible to decrease in the next twelve months are insignificant. | |
The Company is currently under tax examination in India. The periods covered under examination are the Company's financial years 2005 through 2007 and 2009 through 2010. The examination is in various stages of appellate proceedings and all material uncertain tax positions associated with the examination have been taken into account in the ending balance of the unrecognized tax benefits at June 30, 2014. As of June 30, 2014, the Company is not under examination by tax authorities in any other jurisdictions. |
Stockbased_Compensation
Stock-based Compensation | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments | ' | |||||||||||||||
Stock-based Compensation | ||||||||||||||||
The following table summarizes awards granted under the Radisys Corporation 2007 and LTIP Stock Plans (in thousands): | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Stock options | 20 | 3 | 69 | 493 | ||||||||||||
Restricted stock units | 91 | 4 | 92 | 7 | ||||||||||||
Performance based restricted stock awards (A) | 5 | — | 172 | 36 | ||||||||||||
Total | 116 | 7 | 333 | 536 | ||||||||||||
(A) | The performance based restricted stock awards are presented based on attainment of 100% of the performance goals being met. The LTIP provides for the grants of awards payable in shares of common stock upon the achievement of performance goals set by the Company's Compensation and Development Committee. In addition to the performance conditions, the awards contain market-based multipliers based on the average price of the Company's common stock thirty days prior to the end of each semi-annual performance period. The maximum multiplier for a given semi-annual performance period is 2.75x the original grant and overall achievement is limited to a maximum of 2.5x of the target award over the entire performance period. | |||||||||||||||
Stock-based compensation was recognized and allocated as follows (in thousands): | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Cost of sales | $ | 151 | $ | 111 | $ | 282 | $ | 241 | ||||||||
Research and development | 324 | 234 | 553 | 483 | ||||||||||||
Selling, general and administrative | 985 | 678 | 1,746 | 1,398 | ||||||||||||
Total | $ | 1,460 | $ | 1,023 | $ | 2,581 | $ | 2,122 | ||||||||
Hedging
Hedging | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Text Block] | ' | |||||||||||||||
Hedging | ||||||||||||||||
The Company’s activities expose it to a variety of market risks, including the effects of changes in foreign currency exchange rates. The Company manages these risks through the use of forward exchange contracts, designated as foreign-currency cash flow hedges, in an attempt to reduce the potentially adverse effects of foreign currency exchange rate fluctuations that occur in the normal course of business. As such, the Company’s hedging activities are employed solely for risk management purposes. All hedging transactions are conducted with, in the opinion of management, financially stable and reputable financial institutions. As of June 30, 2014 and December 31, 2013, the only hedge instruments executed by the Company are associated with its exposure to fluctuations in the Indian Rupee, which result from obligations such as payroll and rent paid in this currency. | ||||||||||||||||
These derivatives are recognized on the balance sheet at their fair value. Unrealized gain positions are recorded as other current assets and unrealized loss positions are recorded as other current liabilities. Changes in the fair values of the outstanding derivatives that are highly effective are recorded in other comprehensive income until net income is affected by the variability of the cash flows of the hedged transaction. Typically, hedge ineffectiveness could result when the amount of the Company’s hedge contracts exceed the Company’s forecasted or actual transactions for which the hedge contracts were designed to hedge. Once a hedge contract matures, the associated gain (loss) on the contract will remain in other comprehensive income (loss) until the underlying hedged transaction affects net income (loss), at which time the gain (loss) will be reclassified out of accumulated other comprehensive income (loss) and recorded to the expense line item being hedged. The Company only enters into derivative contracts in order to hedge foreign currency exposure, and these contracts do not exceed two years from inception. If the Company entered into a contract for speculative reasons or if the Company’s current hedge position becomes ineffective, changes in the fair values of the derivatives would be recognized in earnings in the current period. | ||||||||||||||||
The Company assesses, both at the inception of the hedge and on an ongoing basis, whether the derivatives that are used in hedging transactions have been highly effective in offsetting changes in the cash flows of hedged items and whether those derivatives are expected to remain highly effective in future periods. For the three and six months ended June 30, 2014 and 2013 and for the year ended December 31, 2013, the Company had no hedge ineffectiveness. | ||||||||||||||||
During the three months ended June 30, 2014 and 2013 and for the six months ended June 30, 2014, the Company did not enter into any new hedging contracts. During the six months ended 2013, the Company entered into 12 new foreign currency forward contracts with total notional contractual values of $2.5 million. | ||||||||||||||||
A summary of the aggregate contractual or notional amounts, balance sheet location and estimated fair values of derivative financial instruments designated as cash flow hedges at June 30, 2014 is as follows (in thousands): | ||||||||||||||||
Contractual/ Notional | Condensed Consolidated Balance Sheet | Estimated Fair Value | ||||||||||||||
Type of Cash Flow Hedge | Amount | Classification | Asset | (Liability) | ||||||||||||
Foreign currency forward exchange contracts | $ | 8,966 | Other current assets | $ | 662 | $ | — | |||||||||
A summary of the aggregate contractual or notional amounts, balance sheet location and estimated fair values of derivative financial instruments designated as cash flow hedges at December 31, 2013 is as follows (in thousands): | ||||||||||||||||
Contractual/ Notional | Condensed Consolidated Balance Sheet | Estimated Fair Value | ||||||||||||||
Type of Cash Flow Hedge | Amount | Classification | Asset | (Liability) | ||||||||||||
Foreign currency forward exchange contracts | $ | 15,328 | Other accrued liabilities | $ | — | $ | (169 | ) | ||||||||
There were no ineffective hedges for the three and six months ended June 30, 2014 and 2013. The following table summarizes the effect of derivative instruments on the consolidated financial statements as a (gain) loss as follows (in thousands): | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Cost of sales | $ | 27 | $ | 89 | $ | 113 | $ | 178 | ||||||||
Research and development | 45 | 51 | 187 | 102 | ||||||||||||
Selling, general and administrative | 26 | 38 | 97 | 76 | ||||||||||||
Total | $ | 98 | $ | 178 | $ | 397 | $ | 356 | ||||||||
The following is a summary of changes to comprehensive income (loss) associated with the Company's hedging activities (in thousands): | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Beginning balance of unrealized loss on forward exchange contracts | $ | (360 | ) | $ | (657 | ) | $ | (875 | ) | $ | (765 | ) | ||||
Other comprehensive income (loss) before reclassifications | (6 | ) | (934 | ) | 210 | (1,004 | ) | |||||||||
Amounts reclassified from other comprehensive income (loss) | 98 | 178 | 397 | 356 | ||||||||||||
Other comprehensive income (loss) | 92 | (756 | ) | 607 | (648 | ) | ||||||||||
Ending balance of unrealized loss on forward exchange contracts | $ | (268 | ) | $ | (1,413 | ) | $ | (268 | ) | $ | (1,413 | ) | ||||
Over the next twelve months, the Company expects to reclassify into earnings a gain of approximately $0.1 million currently recorded as other comprehensive income, as a result of the maturity of currently held forward exchange contracts. | ||||||||||||||||
The bank counterparties in these contracts expose the Company to credit-related losses in the event of their nonperformance. However, to mitigate that risk, the Company only contracts with counterparties who meet its minimum requirements regarding counterparty credit worthiness. In addition, the Company monitors credit ratings, credit spreads and potential downgrades prior to entering into any new hedging contracts. |
Segment_Information
Segment Information | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||
Segment Reporting Disclosure | ' | |||||||||||||||
Segment Information | ||||||||||||||||
The Company's Chief Operating Decision Maker, Radisys' Chief Executive Officer, reviews the Company's results of operations on a consolidated level, and executive staff is structured by function rather than by product category. Additionally, key resources, decisions, and assessment of performance are also analyzed on a company-wide level. Due to these factors, the Company is one operating segment. | ||||||||||||||||
Generally, the Company's customers are not the end-users of its products. The Company ultimately derives revenues from the following four product groups (in thousands): | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
ATCA Platforms | $ | 22,966 | $ | 31,722 | $ | 46,158 | $ | 66,540 | ||||||||
Software-Solutions | 10,400 | 12,612 | 18,241 | 24,261 | ||||||||||||
COM Express and Rackmount Server | 13,456 | 14,218 | 23,917 | 28,845 | ||||||||||||
Other Products | 3,142 | 6,886 | 5,447 | 13,970 | ||||||||||||
Total revenues | $ | 49,964 | $ | 65,438 | $ | 93,763 | $ | 133,616 | ||||||||
Revenues by geographic area were as follows (in thousands): | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
United States | $ | 19,025 | $ | 30,078 | $ | 34,731 | $ | 56,128 | ||||||||
Other North America | 579 | 434 | 1,703 | 1,086 | ||||||||||||
China | 7,953 | 8,046 | 14,980 | 14,791 | ||||||||||||
Japan | 2,674 | 5,627 | 9,882 | 18,456 | ||||||||||||
Other Asia Pacific | 4,973 | 5,759 | 8,233 | 12,707 | ||||||||||||
Asia Pacific ("APAC") | 15,600 | 19,432 | 33,095 | 45,954 | ||||||||||||
Netherlands | 6,130 | 3,697 | 11,169 | 8,962 | ||||||||||||
Other EMEA | 8,630 | 11,797 | 13,065 | 21,486 | ||||||||||||
Europe, the Middle East and Africa (“EMEA”) | 14,760 | 15,494 | 24,234 | 30,448 | ||||||||||||
Foreign Countries | 30,939 | 35,360 | 59,032 | 77,488 | ||||||||||||
Total | $ | 49,964 | $ | 65,438 | $ | 93,763 | $ | 133,616 | ||||||||
Long-lived assets by geographic area are as follows (in thousands): | ||||||||||||||||
June 30, | December 31, | |||||||||||||||
2014 | 2013 | |||||||||||||||
Property and equipment, net | ||||||||||||||||
United States | $ | 5,812 | $ | 7,421 | ||||||||||||
Other North America | 846 | 942 | ||||||||||||||
China | 2,978 | 3,396 | ||||||||||||||
Other APAC | 117 | 185 | ||||||||||||||
Total APAC | 3,095 | 3,581 | ||||||||||||||
India | 2,586 | 2,893 | ||||||||||||||
Other EMEA | 7 | 17 | ||||||||||||||
Total EMEA | 2,593 | 2,910 | ||||||||||||||
Foreign Countries | 6,534 | 7,433 | ||||||||||||||
Total property and equipment, net | $ | 12,346 | $ | 14,854 | ||||||||||||
Intangible assets, net | ||||||||||||||||
United States | $ | 49,844 | $ | 56,474 | ||||||||||||
Other North America | — | 36 | ||||||||||||||
Total intangible assets, net | $ | 49,844 | $ | 56,510 | ||||||||||||
The following customers accounted for more than 10% of the Company's total revenues: | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Nokia Siemens Networks | 18.6 | % | 20.5 | % | 18.3 | % | 19 | % | ||||||||
Philips Medical | 16 | % | N/A | 15.1 | % | N/A | ||||||||||
NEC | N/A | N/A | 10.6 | % | 11 | % | ||||||||||
Danaher | N/A | 10.4 | % | N/A | N/A | |||||||||||
The following customers accounted for more than 10% of accounts receivable: | ||||||||||||||||
June 30, | December 31, 2013 | |||||||||||||||
2014 | ||||||||||||||||
Nokia Siemens Networks | 19.3 | % | 20.7 | % | ||||||||||||
Philips Medical | 14.4 | % | N/A | |||||||||||||
Reliance Jio Infocomm | 15.2 | % | N/A | |||||||||||||
Significant_Accounting_Policie1
Significant Accounting Policies Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2014 | |
Accounting Policies [Abstract] | ' |
Use of Estimates, Policy [Policy Text Block] | ' |
The preparation of these statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, expenses and related disclosure of contingent assets and liabilities. Actual results could differ from those estimates. Additionally, the accompanying financial data as of June 30, 2014 and for the three and six months ended June 30, 2014 and 2013 has been prepared by the Company, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been omitted pursuant to such rules and regulations. However, the Company believes that the disclosures are adequate to make the information presented not misleading. |
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Fair Value Measurements, Recurring and Nonrecurring [Table Text Block] | ' | |||||||||||||||
The following table summarizes the fair value measurements for the Company's financial instruments (in thousands): | ||||||||||||||||
Fair Value Measurements as of June 30, 2014 | ||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||
Cash surrender value of life insurance contracts (A) | $ | 1,873 | $ | — | $ | 1,873 | $ | — | ||||||||
Deferred compensation liability (A) | (1,084 | ) | — | (1,084 | ) | — | ||||||||||
Foreign currency forward contracts | 662 | — | 662 | — | ||||||||||||
Contingent consideration liability | (302 | ) | — | — | (302 | ) | ||||||||||
Total | $ | 1,149 | $ | — | $ | 1,451 | $ | (302 | ) | |||||||
Fair Value Measurements as of December 31, 2013 | ||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||
Cash surrender value of life insurance contracts (A) | $ | 1,866 | $ | — | $ | 1,866 | $ | — | ||||||||
Deferred compensation liability (A) | (1,276 | ) | — | (1,276 | ) | — | ||||||||||
Foreign currency forward contracts | (169 | ) | — | (169 | ) | — | ||||||||||
Contingent consideration liability | (390 | ) | — | — | (390 | ) | ||||||||||
Total | $ | 31 | $ | — | $ | 421 | $ | (390 | ) | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | ' | |||||||||||||||
The following table summarizes our Level 3 activity for the Company's contingent consideration liability (in thousands): | ||||||||||||||||
Level 3 | ||||||||||||||||
Balance at December 31, 2013 | $ | 390 | ||||||||||||||
Change in estimate | (127 | ) | ||||||||||||||
Payments | — | |||||||||||||||
Accretion | 39 | |||||||||||||||
Balance at June 30, 2014 | $ | 302 | ||||||||||||||
Accounts_Receivable_and_Other_1
Accounts Receivable and Other Receivables (Tables) | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Receivables [Abstract] | ' | |||||||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | ' | |||||||
Accounts receivable balances consisted of the following (in thousands): | ||||||||
June 30, | December 31, | |||||||
2014 | 2013 | |||||||
Accounts receivable, gross | $ | 42,273 | $ | 41,707 | ||||
Less: allowance for doubtful accounts | (182 | ) | (348 | ) | ||||
Accounts receivable, net | $ | 42,091 | $ | 41,359 | ||||
Inventories_Tables
Inventories (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Inventory Disclosure [Abstract] | ' | |||||||||||||||
Schedule of Inventory, Current [Table Text Block] | ' | |||||||||||||||
Inventories consisted of the following (in thousands): | ||||||||||||||||
June 30, | December 31, | |||||||||||||||
2014 | 2013 | |||||||||||||||
Raw materials | $ | 16,836 | $ | 22,416 | ||||||||||||
Work-in-process | 665 | 1,194 | ||||||||||||||
Finished goods | 9,750 | 9,644 | ||||||||||||||
27,251 | 33,254 | |||||||||||||||
Less: inventory valuation allowance | (7,475 | ) | (7,845 | ) | ||||||||||||
Inventories, net | $ | 19,776 | $ | 25,409 | ||||||||||||
Charges Associated with Inventory [Table Text Block] | ' | |||||||||||||||
The Company recorded the following charges associated with the valuation of inventory and the adverse purchase commitment liability (in thousands): | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Inventory, net | $ | 182 | $ | 429 | $ | 1,344 | $ | 1,467 | ||||||||
Adverse purchase commitments | 281 | 164 | 154 | 132 | ||||||||||||
Accrued_Restructuring_Tables
Accrued Restructuring (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Restructuring and Related Activities [Abstract] | ' | |||||||||||||||
Schedule of Restructuring and Related Costs [Table Text Block] | ' | |||||||||||||||
The following table summarizes the Company's restructuring and other charges as presented in the Condensed Consolidated Statement of Operations (in thousands): | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Employee-related restructuring expenses | $ | 403 | $ | 648 | $ | 1,256 | $ | 1,165 | ||||||||
Fair value adjustments to Continuous Computing contingent consideration liability | (127 | ) | (605 | ) | (127 | ) | (1,345 | ) | ||||||||
Facility reductions | — | — | (6 | ) | — | |||||||||||
Write off of purchased computer software | — | (200 | ) | — | 2,868 | |||||||||||
Net gain from sale of OS-9 software assets | — | 43 | — | (1,532 | ) | |||||||||||
Integration-related expenses | 539 | — | 992 | — | ||||||||||||
Restructuring and other charges, net | $ | 815 | $ | (114 | ) | $ | 2,115 | $ | 1,156 | |||||||
Schedule of Restructuring Reserve by Type of Cost [Table Text Block] | ' | |||||||||||||||
Accrued restructuring, which is included in other accrued liabilities and other long-term liabilities in the accompanying Condensed Consolidated Balance Sheets as of June 30, 2014 and December 31, 2013, consisted of the following (in thousands): | ||||||||||||||||
Severance, payroll taxes and other employee benefits | Facility reductions | Total | ||||||||||||||
Balance accrued as of December 31, 2013 | $ | 1,786 | $ | 961 | $ | 2,747 | ||||||||||
Additions | 1,333 | — | 1,333 | |||||||||||||
Reversals | (77 | ) | (6 | ) | (83 | ) | ||||||||||
Expenditures | (1,721 | ) | (295 | ) | (2,016 | ) | ||||||||||
Balance accrued as of June 30, 2014 | $ | 1,321 | $ | 660 | $ | 1,981 | ||||||||||
Convertible_Debt_Tables
Convertible Debt (Tables) | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Schedule of Debt [Table Text Block] | ' | |||||||
The following table outlines the effective interest rate, contractually stated interest costs, and costs related to the amortization of issuance costs for the Company's 2013 and 2015 convertible senior notes: | ||||||||
Three Months Ended | Six Months Ended | |||||||
June 30, | June 30, | |||||||
2014 | 2013 | 2014 | 2013 | |||||
Effective interest rate of 2013 convertible senior notes | NA | N/A | N/A | 3.73% | ||||
Effective interest rate of 2015 convertible senior notes | 4.50% | 4.50% | 4.50% | 4.50% | ||||
Contractually stated interest costs | $203 | $202 | $405 | $463 | ||||
Amortization of issuance costs | $11 | $11 | $21 | $39 |
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||||
Schedule of Product Warranty Liability [Table Text Block] | ' | |||||||
The following is a summary of the change in the Company's warranty accrual reserve (in thousands): | ||||||||
Six Months Ended | ||||||||
June 30, | ||||||||
2014 | 2013 | |||||||
Warranty liability balance, beginning of the period | $ | 3,328 | $ | 3,954 | ||||
Product warranty accruals | 1,219 | 1,899 | ||||||
Utilization of accrual | (1,604 | ) | (2,183 | ) | ||||
Warranty liability balance, end of the period | $ | 2,943 | $ | 3,670 | ||||
Basic_and_Diluted_Net_Income_L1
Basic and Diluted Net Income (Loss) Per Share (Tables) | 6 Months Ended | |||||||||||||||||||||||||||
Jun. 30, 2014 | Jun. 30, 2013 | |||||||||||||||||||||||||||
Earnings Per Share [Abstract] | ' | ' | ||||||||||||||||||||||||||
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | ' | ' | ||||||||||||||||||||||||||
(C) | For the three and six months ended June 30, 2014 and 2013, the following equity awards, by type, were excluded from the calculation, as their effect would have been anti-dilutive (in thousands): | |||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||
June 30, | June 30, | |||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||
Stock options | 3,042 | 2,375 | 3,042 | 2,375 | ||||||||||||||||||||||||
Restricted stock units | 300 | 441 | 300 | 441 | ||||||||||||||||||||||||
Performance based restricted stock units (D) | 409 | 2,087 | 409 | 2,087 | ||||||||||||||||||||||||
Total equity award shares excluded | 3,751 | 4,903 | 3,751 | 4,903 | ||||||||||||||||||||||||
(D) | Shares under the Long-Term Incentive Plan ("LTIP") are presented based on attainment of 100% of the performance goals being met. The LTIP provides for the grants of awards payable in shares of common stock upon the achievement of performance goals set by the Company's Compensation and Development Committee. In addition to the performance conditions, the awards contain market-based multipliers based on the average price of the Company's common stock thirty days prior to the end of each semi-annual performance period. The maximum multiplier for a given semi-annual performance period is 2.75x the original grant and overall achievement is limited to a maximum of 2.5x of the target award over the entire performance period. Based on this formula, the maximum number of shares that could be earned was 0.8 million and 2.0 million for the three months ended June 30, 2014 and 2013 | |||||||||||||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | ' | ' | ||||||||||||||||||||||||||
A reconciliation of the numerator and the denominator used to calculate basic and diluted net loss per share is as follows (in thousands, except per share amounts): | ||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||
June 30, | June 30, | |||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||
Numerator — Basic | ||||||||||||||||||||||||||||
Net loss | $ | (8,211 | ) | $ | (4,112 | ) | $ | (18,645 | ) | $ | (10,669 | ) | ||||||||||||||||
Numerator — Diluted | ||||||||||||||||||||||||||||
Net loss | $ | (8,211 | ) | $ | (4,112 | ) | $ | (18,645 | ) | $ | (10,669 | ) | ||||||||||||||||
Interest on convertible notes, net of tax benefit (B) | — | — | — | — | ||||||||||||||||||||||||
Net loss, diluted | $ | (8,211 | ) | $ | (4,112 | ) | $ | (18,645 | ) | $ | (10,669 | ) | ||||||||||||||||
Denominator — Basic | ||||||||||||||||||||||||||||
Weighted average shares used to calculate net loss per share, basic | 36,096 | 28,669 | 32,980 | 28,570 | ||||||||||||||||||||||||
Denominator — Diluted | ||||||||||||||||||||||||||||
Weighted average shares used to calculate net loss per share, basic | 36,096 | 28,669 | 32,980 | 28,570 | ||||||||||||||||||||||||
Effect of escrow shares (A) | — | — | — | — | ||||||||||||||||||||||||
Effect of convertible notes (B) | — | — | — | — | ||||||||||||||||||||||||
Effect of dilutive restricted stock units (C) | — | — | — | — | ||||||||||||||||||||||||
Effect of dilutive stock options (C) | — | — | — | — | ||||||||||||||||||||||||
Weighted average shares used to calculate net loss per share, diluted | 36,096 | 28,669 | 32,980 | 28,570 | ||||||||||||||||||||||||
Net loss per share | ||||||||||||||||||||||||||||
Basic | $ | (0.23 | ) | $ | (0.14 | ) | $ | (0.57 | ) | $ | (0.37 | ) | ||||||||||||||||
Diluted | $ | (0.23 | ) | $ | (0.14 | ) | $ | (0.57 | ) | $ | (0.37 | ) |
Stockbased_Compensation_Tables
Stock-based Compensation (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||||
Equity awards granted during the period,Grants in Period, Gross [Table Text Block] | ' | |||||||||||||||
The following table summarizes awards granted under the Radisys Corporation 2007 and LTIP Stock Plans (in thousands): | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Stock options | 20 | 3 | 69 | 493 | ||||||||||||
Restricted stock units | 91 | 4 | 92 | 7 | ||||||||||||
Performance based restricted stock awards (A) | 5 | — | 172 | 36 | ||||||||||||
Total | 116 | 7 | 333 | 536 | ||||||||||||
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block] | ' | |||||||||||||||
Stock-based compensation was recognized and allocated as follows (in thousands): | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Cost of sales | $ | 151 | $ | 111 | $ | 282 | $ | 241 | ||||||||
Research and development | 324 | 234 | 553 | 483 | ||||||||||||
Selling, general and administrative | 985 | 678 | 1,746 | 1,398 | ||||||||||||
Total | $ | 1,460 | $ | 1,023 | $ | 2,581 | $ | 2,122 | ||||||||
Hedging_Tables
Hedging (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||||||||
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] | ' | |||||||||||||||
A summary of the aggregate contractual or notional amounts, balance sheet location and estimated fair values of derivative financial instruments designated as cash flow hedges at December 31, 2013 is as follows (in thousands): | ||||||||||||||||
Contractual/ Notional | Condensed Consolidated Balance Sheet | Estimated Fair Value | ||||||||||||||
Type of Cash Flow Hedge | Amount | Classification | Asset | (Liability) | ||||||||||||
Foreign currency forward exchange contracts | $ | 15,328 | Other accrued liabilities | $ | — | $ | (169 | ) | ||||||||
A summary of the aggregate contractual or notional amounts, balance sheet location and estimated fair values of derivative financial instruments designated as cash flow hedges at June 30, 2014 is as follows (in thousands): | ||||||||||||||||
Contractual/ Notional | Condensed Consolidated Balance Sheet | Estimated Fair Value | ||||||||||||||
Type of Cash Flow Hedge | Amount | Classification | Asset | (Liability) | ||||||||||||
Foreign currency forward exchange contracts | $ | 8,966 | Other current assets | $ | 662 | $ | — | |||||||||
Schedule of Cash Flow Hedging Instruments, Statements of Financial Performance and Financial Position, Location [Table Text Block] | ' | |||||||||||||||
A summary of the aggregate contractual or notional amounts, balance sheet location and estimated fair values of derivative financial instruments designated as cash flow hedges at June 30, 2014 is as follows (in thousands): | ||||||||||||||||
Contractual/ Notional | Condensed Consolidated Balance Sheet | Estimated Fair Value | ||||||||||||||
Type of Cash Flow Hedge | Amount | Classification | Asset | (Liability) | ||||||||||||
Foreign currency forward exchange contracts | $ | 8,966 | Other current assets | $ | 662 | $ | — | |||||||||
A summary of the aggregate contractual or notional amounts, balance sheet location and estimated fair values of derivative financial instruments designated as cash flow hedges at December 31, 2013 is as follows (in thousands): | ||||||||||||||||
Contractual/ Notional | Condensed Consolidated Balance Sheet | Estimated Fair Value | ||||||||||||||
Type of Cash Flow Hedge | Amount | Classification | Asset | (Liability) | ||||||||||||
Foreign currency forward exchange contracts | $ | 15,328 | Other accrued liabilities | $ | — | $ | (169 | ) | ||||||||
There were no ineffective hedges for the three and six months ended June 30, 2014 and 2013. The following table summarizes the effect of derivative instruments on the consolidated financial statements as a (gain) loss as follows (in thousands): | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Cost of sales | $ | 27 | $ | 89 | $ | 113 | $ | 178 | ||||||||
Research and development | 45 | 51 | 187 | 102 | ||||||||||||
Selling, general and administrative | 26 | 38 | 97 | 76 | ||||||||||||
Total | $ | 98 | $ | 178 | $ | 397 | $ | 356 | ||||||||
Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) [Table Text Block] | ' | |||||||||||||||
The following is a summary of changes to comprehensive income (loss) associated with the Company's hedging activities (in thousands): | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Beginning balance of unrealized loss on forward exchange contracts | $ | (360 | ) | $ | (657 | ) | $ | (875 | ) | $ | (765 | ) | ||||
Other comprehensive income (loss) before reclassifications | (6 | ) | (934 | ) | 210 | (1,004 | ) | |||||||||
Amounts reclassified from other comprehensive income (loss) | 98 | 178 | 397 | 356 | ||||||||||||
Other comprehensive income (loss) | 92 | (756 | ) | 607 | (648 | ) | ||||||||||
Ending balance of unrealized loss on forward exchange contracts | $ | (268 | ) | $ | (1,413 | ) | $ | (268 | ) | $ | (1,413 | ) |
Segment_Information_Tables
Segment Information (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||
Revenue from External Customers by Products and Services [Table Text Block] | ' | |||||||||||||||
Generally, the Company's customers are not the end-users of its products. The Company ultimately derives revenues from the following four product groups (in thousands): | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
ATCA Platforms | $ | 22,966 | $ | 31,722 | $ | 46,158 | $ | 66,540 | ||||||||
Software-Solutions | 10,400 | 12,612 | 18,241 | 24,261 | ||||||||||||
COM Express and Rackmount Server | 13,456 | 14,218 | 23,917 | 28,845 | ||||||||||||
Other Products | 3,142 | 6,886 | 5,447 | 13,970 | ||||||||||||
Total revenues | $ | 49,964 | $ | 65,438 | $ | 93,763 | $ | 133,616 | ||||||||
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block] | ' | |||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
United States | $ | 19,025 | $ | 30,078 | $ | 34,731 | $ | 56,128 | ||||||||
Other North America | 579 | 434 | 1,703 | 1,086 | ||||||||||||
China | 7,953 | 8,046 | 14,980 | 14,791 | ||||||||||||
Japan | 2,674 | 5,627 | 9,882 | 18,456 | ||||||||||||
Other Asia Pacific | 4,973 | 5,759 | 8,233 | 12,707 | ||||||||||||
Asia Pacific ("APAC") | 15,600 | 19,432 | 33,095 | 45,954 | ||||||||||||
Netherlands | 6,130 | 3,697 | 11,169 | 8,962 | ||||||||||||
Other EMEA | 8,630 | 11,797 | 13,065 | 21,486 | ||||||||||||
Europe, the Middle East and Africa (“EMEA”) | 14,760 | 15,494 | 24,234 | 30,448 | ||||||||||||
Foreign Countries | 30,939 | 35,360 | 59,032 | 77,488 | ||||||||||||
Total | $ | 49,964 | $ | 65,438 | $ | 93,763 | $ | 133,616 | ||||||||
Long-lived assets by geographic area are as follows (in thousands): | ||||||||||||||||
June 30, | December 31, | |||||||||||||||
2014 | 2013 | |||||||||||||||
Property and equipment, net | ||||||||||||||||
United States | $ | 5,812 | $ | 7,421 | ||||||||||||
Other North America | 846 | 942 | ||||||||||||||
China | 2,978 | 3,396 | ||||||||||||||
Other APAC | 117 | 185 | ||||||||||||||
Total APAC | 3,095 | 3,581 | ||||||||||||||
India | 2,586 | 2,893 | ||||||||||||||
Other EMEA | 7 | 17 | ||||||||||||||
Total EMEA | 2,593 | 2,910 | ||||||||||||||
Foreign Countries | 6,534 | 7,433 | ||||||||||||||
Total property and equipment, net | $ | 12,346 | $ | 14,854 | ||||||||||||
Intangible assets, net | ||||||||||||||||
United States | $ | 49,844 | $ | 56,474 | ||||||||||||
Other North America | — | 36 | ||||||||||||||
Total intangible assets, net | $ | 49,844 | $ | 56,510 | ||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
United States | $ | 19,025 | $ | 30,078 | $ | 34,731 | $ | 56,128 | ||||||||
Other North America | 579 | 434 | 1,703 | 1,086 | ||||||||||||
China | 7,953 | 8,046 | 14,980 | 14,791 | ||||||||||||
Japan | 2,674 | 5,627 | 9,882 | 18,456 | ||||||||||||
Other Asia Pacific | 4,973 | 5,759 | 8,233 | 12,707 | ||||||||||||
Asia Pacific ("APAC") | 15,600 | 19,432 | 33,095 | 45,954 | ||||||||||||
Netherlands | 6,130 | 3,697 | 11,169 | 8,962 | ||||||||||||
Other EMEA | 8,630 | 11,797 | 13,065 | 21,486 | ||||||||||||
Europe, the Middle East and Africa (“EMEA”) | 14,760 | 15,494 | 24,234 | 30,448 | ||||||||||||
Foreign Countries | 30,939 | 35,360 | 59,032 | 77,488 | ||||||||||||
Total | $ | 49,964 | $ | 65,438 | $ | 93,763 | $ | 133,616 | ||||||||
Schedule of Revenue by Major Customers by Reporting Segments [Table Text Block] | ' | |||||||||||||||
The following customers accounted for more than 10% of the Company's total revenues: | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Nokia Siemens Networks | 18.6 | % | 20.5 | % | 18.3 | % | 19 | % | ||||||||
Philips Medical | 16 | % | N/A | 15.1 | % | N/A | ||||||||||
NEC | N/A | N/A | 10.6 | % | 11 | % | ||||||||||
Danaher | N/A | 10.4 | % | N/A | N/A | |||||||||||
Schedules of Concentration of Risk, by Risk Factor [Table Text Block] | ' | |||||||||||||||
The following customers accounted for more than 10% of accounts receivable: | ||||||||||||||||
June 30, | December 31, 2013 | |||||||||||||||
2014 | ||||||||||||||||
Nokia Siemens Networks | 19.3 | % | 20.7 | % | ||||||||||||
Philips Medical | 14.4 | % | N/A | |||||||||||||
Reliance Jio Infocomm | 15.2 | % | N/A | |||||||||||||
Fair_Value_of_Financial_Instru2
Fair Value of Financial Instruments Fair Value Measurements (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 |
In Thousands, unless otherwise specified | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Continuous Computing [Member] |
Estimate of Fair Value, Fair Value Disclosure [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | Fair Value, Inputs, Level 1 [Member] | Fair Value, Inputs, Level 1 [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business Combination, Contingent Consideration Arrangements, Measurement Period After Close Date | ' | ' | ' | ' | ' | ' | ' | ' | '36 months |
Cash surrender value of life insurance contracts | $1,873 | $1,866 | $0 | $0 | $1,873 | $1,866 | $0 | $0 | ' |
Deferred Compensation Liability, Current | -1,084 | -1,276 | 0 | 0 | -1,084 | -1,276 | 0 | 0 | ' |
Foreign currency forward contract | 662 | ' | 0 | ' | 662 | ' | 0 | ' | ' |
Foreign currency forward contracts | ' | -169 | ' | 0 | ' | -169 | ' | 0 | ' |
Contingent consideration liability | -302 | -390 | 0 | 0 | 0 | 0 | -302 | -390 | ' |
Total | $1,149 | $31 | $0 | $0 | $1,451 | $421 | ($302) | ($390) | ' |
Fair_Value_of_Financial_Instru3
Fair Value of Financial Instruments - Level 3 (Details) (Fair Value, Inputs, Level 3 [Member], USD $) | 6 Months Ended | |||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 |
Change in estimate | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' | ' | ' |
Contingent consideration liability | ' | ' | ($302) | ($390) |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ' | ' |
Balance at December 31, 2012 | 390 | ' | ' | ' |
Fair value level 3 activity | 39 | -127 | ' | ' |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Settlements | 0 | ' | ' | ' |
Balance at Septmber 30, 2013 | $302 | ' | ' | ' |
Accounts_Receivable_and_Other_2
Accounts Receivable and Other Receivables (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Receivables [Abstract] | ' | ' |
Accounts Receivable, Gross | $42,273 | $41,707 |
Less: allowance for doubtful accounts | -182 | -348 |
Accounts Receivable, Net | 42,091 | 41,359 |
Other receivables | $9,744 | $2,634 |
Inventories_Details
Inventories (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | |
Inventory, Net [Abstract] | ' | ' | ' | ' | ' |
Raw materials | $16,836,000 | ' | $16,836,000 | ' | $22,416,000 |
Work-in-process | 665,000 | ' | 665,000 | ' | 1,194,000 |
Finished goods | 9,750,000 | ' | 9,750,000 | ' | 9,644,000 |
Inventory, Gross | 27,251,000 | ' | 27,251,000 | ' | 33,254,000 |
Less: inventory valuation allowance | -7,475,000 | ' | -7,475,000 | ' | -7,845,000 |
Inventories, net | 19,776,000 | ' | 19,776,000 | ' | 25,409,000 |
Other Inventory, Materials, Supplies and Merchandise under Consignment, Gross, Contract Manufacturing Partner | 6,100,000 | ' | 6,100,000 | ' | ' |
Other Inventory, Materials, Supplies and Merchandise under Consignment, Gross | 8,000,000 | ' | 8,000,000 | ' | 12,000,000 |
Inventory Charges, Inventory Valuation, Deposit And Adverse Purchase Commitment Liability | 182,000 | 429,000 | 1,344,000 | 1,467,000 | ' |
Adverse Purchase Commitments | $281,000 | $164,000 | ($154,000) | ($132,000) | ' |
Accrued_Restructuring_Details
Accrued Restructuring (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Restructuring Charges | $403 | ($605) | $1,256 | $1,165 |
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability | -127 | 648 | -127 | 1,345 |
Facility Reductions | 0 | 0 | 6 | 0 |
Disposal Group, Not Discontinued Operation, Loss (Gain) on Write-down | 0 | -200 | 0 | 2,868 |
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal | 0 | 43 | 0 | -1,532 |
Business Combination, Integration Related Costs | 539 | 0 | 992 | 0 |
Restructuring and acquisition-related charges, net | $815 | ($114) | $2,115 | $1,156 |
Accrued_Restructuring_Restruct
Accrued Restructuring - Restructuring Reserve Rollforward (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Severance Costs | $403,000 | ($605,000) | $1,256,000 | $1,165,000 |
Facility Reductions | 0 | 0 | -6,000 | 0 |
Business Combination, Integration Related Costs | 539,000 | 0 | 992,000 | 0 |
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability | 127,000 | -648,000 | 127,000 | -1,345,000 |
Balance accrued as of December 31, 2012 | ' | ' | 2,747,000 | ' |
Restructuring Charges | ' | ' | 1,333,000 | ' |
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal | 0 | -43,000 | 0 | 1,532,000 |
Restructuring Reserve, Accrual Adjustment | ' | ' | -83,000 | ' |
Expenditures | ' | ' | -2,016,000 | ' |
Balance accred as of March 31, 2013 | 1,981,000 | ' | 1,981,000 | ' |
Restructuring Reserve, Noncurrent | 200,000 | ' | 200,000 | ' |
Severance, Payroll Taxes and Other Employee Benefits [Member] | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Balance accrued as of December 31, 2012 | ' | ' | 1,786,000 | ' |
Restructuring Charges | ' | ' | 1,333,000 | ' |
Restructuring Reserve, Accrual Adjustment | ' | ' | -77,000 | ' |
Expenditures | ' | ' | -1,721,000 | ' |
Balance accred as of March 31, 2013 | 1,321,000 | ' | 1,321,000 | ' |
Lease Abandonment Charges [Member] | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Balance accrued as of December 31, 2012 | ' | ' | 961,000 | ' |
Restructuring Charges | ' | ' | 0 | ' |
Restructuring Reserve, Accrual Adjustment | ' | ' | -6,000 | ' |
Expenditures | ' | ' | -295,000 | ' |
Balance accred as of March 31, 2013 | $660,000 | ' | $660,000 | ' |
ShortTerm_Borrowings_Details
Short-Term Borrowings (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Mar. 14, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Mar. 14, 2014 | Mar. 14, 2014 | Mar. 14, 2014 |
Line of Credit [Member] | United States Accounts Receivable Balance [Member] | Foreign Accounts Receivable Balance [Member] | Maximum [Member] | Minimum [Member] | Letter of Credit [Member] | |||
2014 Debt Agreement [Member] | Line of Credit [Member] | Line of Credit [Member] | Line of Credit [Member] | Line of Credit [Member] | Line of Credit [Member] | |||
2014 Debt Agreement [Member] | 2014 Debt Agreement [Member] | 2014 Debt Agreement [Member] | 2014 Debt Agreement [Member] | 2014 Debt Agreement [Member] | ||||
Prime Rate [Member] | Prime Rate [Member] | |||||||
Line of Credit Facility [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Line of Credit Facility, Maximum Borrowing Capacity | $35,000,000 | ' | ' | ' | ' | ' | ' | ' |
Line of Credit Facility, Current Borrowing Capacity | ' | ' | 25,000,000 | ' | ' | ' | ' | 2,000,000 |
Line of Credit Facility, Borrowing Formula, Eligible Accounts Receivable | ' | ' | ' | 80.00% | 65.00% | ' | ' | ' |
Line of Credit Facility, Remaining Borrowing Capacity | 14,000,000 | ' | ' | ' | ' | ' | ' | ' |
Line of Credit, Liquidity Threshold | ' | ' | 15,000,000 | ' | ' | ' | ' | ' |
Line of Credit, Liquidity Threshold, Last Month of Quarter | ' | ' | 20,000,000 | ' | ' | ' | ' | ' |
Line of Credit, Modification Fee | ' | ' | 35,000 | ' | ' | ' | ' | ' |
Line of Credit Facility, Commitment Fee Amount | ' | ' | 35,000 | ' | ' | ' | ' | ' |
Debt Instrument, Average Monthly Interest Expense | ' | ' | 10,000,000 | ' | ' | ' | ' | ' |
Debt Instrument, Basis Spread on Variable Rate | ' | ' | ' | ' | ' | 2.25% | 0.75% | ' |
Line of Credit Facility, Cancellation Fee Percentage | ' | ' | 1.50% | ' | ' | ' | ' | ' |
Line of Credit Facility, Debt Covenant, Liquidity | ' | ' | 10,000,000 | ' | ' | ' | ' | ' |
Line of Credit Facility, Amount Outstanding | 10,000,000 | 15,000,000 | ' | ' | ' | ' | ' | ' |
Debt Instrument, Debt Covenant, Maximum Value of Accounts Maintained At Financial Institutions Outside of the United States | 8,000,000 | ' | ' | ' | ' | ' | ' | ' |
Value of Accounts Maintained At Financial Institutions Outside of the United States | $9,000,000 | ' | ' | ' | ' | ' | ' | ' |
Convertible_Debt_Details
Convertible Debt (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2013 | Jun. 29, 2012 | Jun. 30, 2014 | Jun. 30, 2013 |
2013 Convertible Senior Notes [Member] | 2015 Convertible Senior Notes [Member] | Convertible Senior Notes [Member] | Convertible Senior Notes [Member] | Convertible Senior Notes [Member] | Convertible Senior Notes [Member] | Convertible Senior Notes [Member] | Convertible Senior Notes [Member] | Convertible Senior Notes [Member] | Convertible Senior Notes [Member] | |||
2013 Convertible Senior Notes [Member] | 2015 Convertible Senior Notes [Member] | 2015 Convertible Senior Notes [Member] | 2015 Convertible Senior Notes [Member] | |||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Convertible Notes Payable, Current | $18,000,000 | $0 | ' | $18,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Convertible senior notes | 0 | 18,000,000 | 18,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Convertible, Conversion Ratio | ' | ' | ' | ' | ' | ' | ' | ' | ' | 117.2333 | ' | ' |
Debt Instrument, Convertible, Conversion Ratio, Principal Amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000 | ' | ' |
Debt Instrument, Convertible, Conversion Price | ' | ' | ' | ' | ' | ' | ' | ' | ' | $8.53 | ' | ' |
Debt Instrument, Call Feature, Call Price, Percent of Principal | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' |
Debt Instrument, Interest Rate, Effective Percentage | ' | ' | ' | ' | ' | ' | ' | ' | 3.73% | ' | 4.50% | 4.50% |
Contractually stated interest costs | ' | ' | ' | ' | 203,000 | 202,000 | 405,000 | 463,000 | ' | ' | ' | ' |
Amortization of interest costs | ' | ' | ' | ' | 11,000 | 11,000 | 21,000 | 39,000 | ' | ' | ' | ' |
Short-term Debt, Fair Value | $17,900,000 | $17,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details) (USD $) | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | ' | ' | ' |
Unrecorded Unconditional Purchase Obligation, Maximum | $4,400,000 | ' | ' |
Movement in Standard Product Warranty Accrual [Roll Forward] | ' | ' | ' |
Warranty liability balance, beginning of the period | 3,328,000 | 3,954,000 | ' |
Product warranty accruals | 1,219,000 | 1,899,000 | ' |
Utilization of accrual | -1,604,000 | -2,183,000 | ' |
Warranty liability balance, end of the period | 2,943,000 | 3,670,000 | ' |
Product Warranty Accrual, Current | 2,300,000 | ' | 2,600,000 |
Product Warranty Accrual, Noncurrent | $600,000 | ' | $700,000 |
Basic_and_Diluted_Net_Income_L2
Basic and Diluted Net Income (Loss) Per Share - Earnings (Loss) Per Share Calculation (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||||||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | ||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ' | ' | ' | ' | ||||
Net income (loss) | ($8,211) | ($4,112) | ($18,645) | ($10,669) | ||||
Interest on convertible notes, net of tax benefit | 0 | 0 | [1] | 0 | 0 | [1] | ||
Net income (loss), diluted | ($8,211) | ($4,112) | ($18,645) | ($10,669) | ||||
Weighted average shares used to calculate net income (loss) per share, basic | 36,096 | 28,669 | 32,980 | 28,570 | ||||
Effect of escrow shares | 0 | [2] | 0 | [2] | 0 | [2] | 0 | [2] |
Effect of convertible notes | 0 | [1] | 0 | [1] | 0 | [1] | 0 | [1] |
Weighted average shares used to calculate net income (loss) per share, diluted | 36,096 | 28,669 | 32,980 | 28,570 | ||||
Basic (in dollars per share) | ($0.23) | ($0.14) | ($0.57) | ($0.37) | ||||
Diluted (in dollars per share) | ($0.23) | ($0.14) | ($0.57) | ($0.37) | ||||
Restricted Stock Units (RSUs) [Member] | ' | ' | ' | ' | ||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ' | ' | ' | ' | ||||
Effect of dilutive equity awards | 0 | [3],[4] | 0 | [3],[4] | 0 | [3],[4] | 0 | [3],[4] |
Stock Options [Member] | ' | ' | ' | ' | ||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ' | ' | ' | ' | ||||
Effect of dilutive equity awards | 0 | [3] | 0 | [3] | 0 | [3] | 0 | [3] |
[1] | For each of the three months ended June 30, 2014 and 2013, 2.1 million as-if converted shares associated with the Company's convertible senior notes were excluded from the calculation as their effect would have been anti-dilutive. | |||||||
[2] | (A)For the three months ended June 30, 2014 there were no remaining contingently issuable shares outstanding. For the six months ended June 30, 2013, 30,000 contingently issuable shares were excluded from the calculation as their effect would have been anti-dilutive. | |||||||
[3] | For the three and six months ended June 30, 2014 and 2013, the following equity awards, by type, were excluded from the calculation, as their effect would have been anti-dilutive (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2014 2013 2014 2013Stock options3,042 2,375 3,042 2,375Restricted stock units300 441 300 441Performance based restricted stock units (D)409 2,087 409 2,087Total equity award shares excluded3,751 4,903 3,751 4,903 | |||||||
[4] | under the Long-Term Incentive Plan ("LTIP") are presented based on attainment of 100% of the performance goals being met. The LTIP provides for the grants of awards payable in shares of common stock upon the achievement of performance goals set by the Company's Compensation and Development Committee. In addition to the performance conditions, the awards contain market-based multipliers based on the average price of the Company's common stock thirty days prior to the end of each semi-annual performance period. The maximum multiplier for a given semi-annual performance period is 2.75x the original grant and overall achievement is limited to a maximum of 2.5x of the target award over the entire performance period. Based on this formula, the maximum number of shares that could be earned was 0.8 million and 2.0 million for the three months ended June 30, 2014 and 2013 |
Basic_and_Diluted_Net_Income_L3
Basic and Diluted Net Income (Loss) Per Share - Anti-Dilutive Securities (Details) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 800 | 2,000 | ' | ' |
Stock Compensation Plan [Member] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 3,751 | 4,903 | 3,751 | 4,903 |
Contingently Issuable Shares [Member] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | ' | 0 | ' | ' |
Stock Options [Member] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 3,042 | 2,375 | 3,042 | 2,375 |
ERROR in label resolution. | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 300 | 441 | 300 | 441 |
Securities Excluded from Computation of Earnings Per Share, Performance Target Not Met, Amount | 409 | 2,087 | 409 | 2,087 |
Convertible Debt Securities [Member] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 2,100 | ' | 2,100 | 2,400 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Jun. 30, 2014 | Dec. 31, 2013 |
Income Tax Disclosure [Abstract] | ' | ' |
Deferred Tax Assets, Net | $3.60 | $3.80 |
Unrecognized Tax Benefits, Period Increase (Decrease) | 0 | ' |
Unrecognized Tax Benefits | 3.9 | ' |
Unrecognized Tax Benefits, Interest on Income Taxes Accrued | 0.5 | ' |
Unrecognized Tax Benefits, Income Tax Penalties Accrued | $0.30 | ' |
Stockbased_Compensation_Equity
Stock-based Compensation - Equity Awards (Details) (2007 Stock Plan [Member]) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 20 | 3 | 69 | 493 |
Equity awards granted during the period, total, Grants in Period, Gross | 116 | 7 | 333 | 536 |
Restricted Stock Units (RSUs) [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 91 | 4 | 92 | 7 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 5 | 0 | 172 | 36 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Semi-Annual Performance Period Multiplier, Maximum | ' | ' | 2.75 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Performance Multiplier Maximum | ' | ' | 2.5 | ' |
Stockbased_Compensation_Stock_
Stock-based Compensation - Stock Based Compensation Expense (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Allocated Share-based Compensation Expense | $1,460 | $1,023 | $2,581 | $2,122 |
Cost of Sales [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Allocated Share-based Compensation Expense | 151 | 111 | 282 | 241 |
Research and Development Expense [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Allocated Share-based Compensation Expense | 324 | 234 | 553 | 483 |
Selling, General and Administrative Expenses [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Allocated Share-based Compensation Expense | $985 | $678 | $1,746 | $1,398 |
Hedging_Details
Hedging (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | |
Derivatives, Fair Value [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum Length of Time Hedged in Cash Flow Hedge | ' | ' | '2 years | ' | ' | ' | ' | ' |
Foreign Currency Cash Flow Hedge Gain (Loss) Reclassified to Earnings, Net | $98,000 | $178,000 | $397,000 | $356,000 | ' | ' | ' | ' |
Unrealized loss on hedge instruments | -268,000 | -1,413,000 | -268,000 | -1,413,000 | -360,000 | -875,000 | -657,000 | -765,000 |
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax | -6,000 | -934,000 | 210,000 | -1,004,000 | ' | ' | ' | ' |
Cash Flow Hedge Gain (Loss) Reclassified to Earnings, Net | 98,000 | 178,000 | 397,000 | 356,000 | ' | ' | ' | ' |
Hedge Loss Recognized in Other Comprehensive Income (Loss) | 92,000 | -756,000 | 607,000 | -648,000 | ' | ' | ' | ' |
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | ' | ' | -100,000 | ' | ' | ' | ' | ' |
Cost of Sales [Member] | ' | ' | ' | ' | ' | ' | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Foreign Currency Cash Flow Hedge Gain (Loss) Reclassified to Earnings, Net | 27,000 | 89,000 | 113,000 | 178,000 | ' | ' | ' | ' |
Research and Development Expense [Member] | ' | ' | ' | ' | ' | ' | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Foreign Currency Cash Flow Hedge Gain (Loss) Reclassified to Earnings, Net | 45,000 | 51,000 | 187,000 | 102,000 | ' | ' | ' | ' |
Selling, General and Administrative Expenses [Member] | ' | ' | ' | ' | ' | ' | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Foreign Currency Cash Flow Hedge Gain (Loss) Reclassified to Earnings, Net | 26,000 | 38,000 | 97,000 | 76,000 | ' | ' | ' | ' |
Other Current Assets [Member] | ' | ' | ' | ' | ' | ' | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Cash Flow Hedge Derivative Instrument Assets at Fair Value | 662,000 | ' | 662,000 | ' | ' | 0 | ' | ' |
Other Accrued Liabilities [Member] | ' | ' | ' | ' | ' | ' | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Cash Flow Hedge Derivative Instrument Liabilities at Fair Value | ' | ' | ' | ' | ' | -169,000 | ' | ' |
Foreign Exchange Forward [Member] | ' | ' | ' | ' | ' | ' | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Notional Amount of Foreign Currency Cash Flow Hedge Derivatives | 8,966,000 | ' | 8,966,000 | ' | ' | 15,328,000 | ' | ' |
Foreign Exchange Forward [Member] | Other Accrued Liabilities [Member] | ' | ' | ' | ' | ' | ' | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Cash Flow Hedge Derivative Instrument Liabilities at Fair Value | 0 | ' | 0 | ' | ' | ' | ' | ' |
Foreign Exchange Forward [Member] | Cash Flow Hedging [Member] | ' | ' | ' | ' | ' | ' | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative, Number of New Instruments During Period | ' | ' | ' | 12 | ' | ' | ' | ' |
Derivative, New Instruments During Period, Notional Amount | ' | ' | ' | $2,500,000 | ' | ' | ' | ' |
Segment_Information_Product_an
Segment Information - Product and Service and Product Group (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Revenue from External Customer [Line Items] | ' | ' | ' | ' |
Revenues | $49,964 | $65,438 | $93,763 | $133,616 |
ATCA Platforms [Member] | ' | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' | ' |
Revenues | 22,966 | 31,722 | 46,158 | 66,540 |
Software and Solutions [Member] | ' | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' | ' |
Revenues | 10,400 | 12,612 | 18,241 | 24,261 |
Com Express and Rackmount Server [Member] | ' | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' | ' |
Revenues | 13,456 | 14,218 | 23,917 | 28,845 |
Other Products [Member] | ' | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' | ' |
Revenues | $3,142 | $6,886 | $5,447 | $13,970 |
Segment_Information_Geographic
Segment Information - Geographical Information (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' |
Revenues | $49,964 | $65,438 | $93,763 | $133,616 | ' |
Property and equipment, net | 12,346 | ' | 12,346 | ' | 14,854 |
Total Intangible Assets, Net | 49,844 | ' | 49,844 | ' | 56,510 |
UNITED STATES | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' |
Revenues | 19,025 | 30,078 | 34,731 | 56,128 | ' |
Property and equipment, net | 5,812 | ' | 5,812 | ' | 7,421 |
Total Intangible Assets, Net | ' | ' | ' | ' | 56,474 |
Foreign Countries [Member] | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' |
Revenues | 30,939 | 35,360 | 59,032 | 77,488 | ' |
Property and equipment, net | 6,534 | ' | 6,534 | ' | 7,433 |
Other North America | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' |
Revenues | 579 | 434 | 1,703 | 1,086 | ' |
Property and equipment, net | 846 | ' | 846 | ' | 942 |
Total Intangible Assets, Net | 0 | ' | 0 | ' | 36 |
Asia Pacific [Member] | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' |
Revenues | 15,600 | 19,432 | 33,095 | 45,954 | ' |
Property and equipment, net | 3,095 | ' | 3,095 | ' | 3,581 |
CHINA [Member] | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' |
Revenues | 7,953 | 8,046 | 14,980 | 14,791 | ' |
Property and equipment, net | 2,978 | ' | 2,978 | ' | 3,396 |
JAPAN | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' |
Revenues | 2,674 | 5,627 | 9,882 | 18,456 | ' |
INDIA | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' |
Property and equipment, net | 2,586 | ' | 2,586 | ' | 2,893 |
Other Asia Pacific [Member] | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' |
Revenues | 4,973 | 5,759 | 8,233 | 12,707 | ' |
Property and equipment, net | 117 | ' | 117 | ' | 185 |
Netherlands [Member] | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' |
Revenues | 6,130 | 3,697 | 11,169 | 8,962 | ' |
Other EMEA [Member] | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' |
Revenues | 8,630 | 11,797 | 13,065 | 21,486 | ' |
Property and equipment, net | 7 | ' | 7 | ' | 17 |
Europe, the Middle East and Africa [Member] | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' |
Revenues | 14,760 | 15,494 | 24,234 | 30,448 | ' |
Property and equipment, net | $2,593 | ' | $2,593 | ' | $2,910 |
Segment_Information_Revenue_by
Segment Information - Revenue by Major Customer (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Nokia Siemens Networks [Member] | ' | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' | ' |
Entity-Wide Revenue, Major Customer, Percentage | 18.60% | 20.50% | 18.30% | 19.00% |
NEC [Member] | ' | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' | ' |
Entity-Wide Revenue, Major Customer, Percentage | ' | ' | 10.60% | 11.00% |
Philips Healthcare [Member] | ' | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' | ' |
Entity-Wide Revenue, Major Customer, Percentage | 16.00% | ' | 15.10% | ' |
Danaher [Member] | ' | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' | ' |
Entity-Wide Revenue, Major Customer, Percentage | ' | 10.40% | ' | ' |
Segment_Information_Accounts_R
Segment Information - Accounts Receivable (Details) | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | |||||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | |
Nokia Siemens Networks [Member] | Nokia Siemens Networks [Member] | Nokia Siemens Networks [Member] | Nokia Siemens Networks [Member] | Nokia Siemens Networks [Member] | Nokia Siemens Networks [Member] | Philips Healthcare [Member] | Philips Healthcare [Member] | Philips Healthcare [Member] | NEC [Member] | NEC [Member] | Reliance [Member] | |
Accounts Receivable [Member] | Accounts Receivable [Member] | Accounts Receivable [Member] | Accounts Receivable [Member] | |||||||||
Concentration Risk [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Entity-Wide Revenue, Major Customer, Percentage | 18.60% | 20.50% | 18.30% | 19.00% | 19.30% | 20.70% | 16.00% | 15.10% | 14.40% | 10.60% | 11.00% | 15.20% |