Radisys (RSYS) 10-Q 4 May 16 2016 Q1 Quarterly report Financial data

DEI Document

DEI Document - shares	3 Months Ended
	Mar. 31, 2016	Apr. 29, 2016	Dec. 31, 2015
DEI [Abstract]
Common Stock, Shares, Issued	37,077,000		37,026,000
Entity Registrant Name	Radisys Corporation
Entity Central Index Key	873,044
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Document Type	10-Q
Document Period End Date	Mar. 31, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q1
Amendment Flag	false
Entity Common Stock, Shares Outstanding		37,077,130
Common Stock, Shares, Outstanding	37,077,000		37,026,000

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Revenues	$ 55,146	$ 48,687
Cost of sales:
Cost of sales	40,435	34,067
Amortization of purchased technology	1,927	1,994
Total cost of sales	42,362	36,061
Gross margin	12,784	12,626
Research and development	5,653	6,724
Selling, general and administrative		7,500
Intangible asset amortization	1,260
Restructuring and acquisition-related charges, net	682	4,135
Income (loss) from operations	(2,450)	(6,993)
Interest expense	(117)	(217)
Other income (expense), net	139	397
Income (loss) before income tax expense (benefit)	(2,428)	(6,813)
Income tax expense (benefit)	537	240
Net income (loss)	$ (2,965)	$ (7,053)
Net income (loss) per share:
Basic (in dollars per share)	$ (0.08)	$ (0.19)
Diluted (in dollars per share)	$ (0.08)	$ (0.19)
Weighted average shares outstanding:
Basic (in shares)	37,007	36,649
Diluted (in shares)	37,007	36,649

Condensed Consolidated Stateme3

Condensed Consolidated Statement of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Net income (loss)	$ (2,965)	$ (7,053)
Other comprehensive income (loss):
Translation adjustments	457	(447)
Net adjustment for fair value of hedge derivatives (A)	134	118
Foreign Currency Cash Flow Hedge Gain (Loss) Reclassified to Earnings, Net	348	(9)
Other comprehensive income (loss)	591	(329)
Comprehensive income (loss)	$ (2,374)	$ (7,382)

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 22,383	$ 20,764
Accounts receivable, net	38,813	60,942
Other receivables	3,059	11,304
Deferred Costs, Current	0	14,113
Inventories, net	30,095	16,812
Other current assets	2,005	2,794
Total current assets	96,355	126,729
Property and equipment, net	5,400	6,134
Intangible assets, net	27,136	30,322
Long-term deferred tax assets, net	1,213	1,173
Other assets	2,934	2,711
Total assets	133,038	167,069
Current liabilities:
Accounts payable	31,214	43,451
Accrued wages and bonuses	4,018	7,250
Deferred Revenue	6,369	23,062
Line of Credit Facility, Amount Outstanding	15,000	15,000
Other accrued liabilities	9,203	9,404
Total current liabilities	65,804	98,167
Long-term liabilities:
Other long-term liabilities	2,898	2,985
Total long-term liabilities	2,898	2,985
Total liabilities	68,702	101,152
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	338,958	338,165
Accumulated deficit	(274,314)	(271,349)
Accumulated other comprehensive income:
Cumulative translation adjustments	377	(80)
Unrealized loss on hedge instruments	(685)	(819)
Total accumulated other comprehensive income	(308)	(899)
Total shareholders’ equity	64,336	65,917
Total liabilities and shareholders' equity	$ 133,038	$ 167,069

Condensed Consolidated Balance5

Condensed Consolidated Balance Sheets Condensed Consolidated Balance Sheets Parenthetical - $ / shares shares in Thousands	Mar. 31, 2016	Dec. 31, 2015
Balance Sheet Parenthetical [Abstract]
Common Stock, Par Value	$ 0	$ 0
Common Stock, Shares Authorized	100,000	100,000
Common Stock, Shares, Issued	37,077	37,026
Common Stock, Shares, Outstanding	37,077	37,026

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Cash flows from operating activities:
Net income (loss)	$ (2,965)	$ (7,053)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	4,345	4,778
Inventory valuation allowance	266	(40)
Deferred income taxes	12	170
Stock-based compensation expense	688	659
Other	372	254
Changes in operating assets and liabilities
Accounts receivable	22,134	2,064
Other receivables	8,254	3,883
Increase (Decrease) in Inventory and Deferred Cost of Sales	(578)	(2,769)
Accounts payable	(12,155)	(8,183)
Accrued restructuring	435	2,354
Accrued wages and other	(3,207)	(834)
Increase (Decrease) in Deferred Revenue	(16,693)	1,251
Other Accrued Liabilities	(382)	1,556
Net cash provided by operating activities	1,682	3,628
Cash flows from investing activities:
Capital expenditures	(422)	(640)
Net cash used in investing activities	(422)	(640)
Cash flows from financing activities:
Proceeds from (Repayments of) Lines of Credit	18,000	7,000
Repayments of Lines of Credit	(18,000)	(7,000)
Repayments of Long-term Debt	0	(18,000)
Other financing activities	105	8
Net cash provided by (used in) financing activities	105	(17,992)
Effect of exchange rate changes on cash	254	(392)
Net increase (decrease) in cash and cash equivalents	1,619	(15,396)
Cash and Cash Equivalents, beginning of period	20,764	31,242
Cash and Cash Equivalents, end of period	22,383	15,846
Supplemental disclosure of cash flow information:
Interest	123	519
Income taxes	$ 228	$ 93

Significant Accounting Policies

Significant Accounting Policies	3 Months Ended
	Mar. 31, 2016
Accounting Policies [Abstract]
Significant Accounting Policies	In March 2016, the Financial Accounting Standards Board ("FASB") issued ASU 2016-09, “Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting.” ASU 2016-09 simplifies the accounting for share-based payment award transactions including: income tax consequences, classification of awards as either equity or liabilities and classification on the statement of cash flows. ASU 2016-09 is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the requirements of ASU 2016-09 and have not yet determined its impact on the condensed consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842).” ASU 2016-02 requires lessees to recognize a lease liability and a right-of-use asset on the balance sheet and aligns many of the underlying principles of the new lessor model with those in Accounting Standards Codification Topic 606, Revenue from Contracts with Customers. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the requirements of ASU 2016-02 and have not yet determined its impact on the condensed consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers (Topic 606)," which is the new comprehensive revenue recognition standard that will supersede all existing revenue recognition guidance under U.S. GAAP. The standard's core principle is that a company will recognize revenue when it transfers promised goods or services to a customer in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. ASU 2015-14, "Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date," which was issued in August 2015, revised the effective date for this ASU to annual and interim periods beginning on or after December 15, 2017, with early adoption permitted, but not earlier than the original effective date of annual and interim periods beginning on or after December 15, 2016, for public entities. Entities will have the option of using either a full retrospective approach or a modified approach to adopt the guidance in ASU 2014-09. The Company is currently evaluating the requirements of ASU 2015-14 and have not yet determined its impact on the condensed consolidated financial statements. 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, 2015 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 March 31, 2016 and for the three months ended March 31, 2016 and 2015 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, 2015 . 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 Instrum

Fair Value of Financial Instruments	3 Months Ended
	Mar. 31, 2016
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 following table summarizes the fair value measurements for the Company's financial instruments (in thousands): Fair Value Measurements as of March 31, 2016 Total Level 1 Level 2 Level 3 Foreign currency forward contracts $ (4 ) — $ (4 ) — Fair Value Measurements as of December 31, 2015 Total Level 1 Level 2 Level 3 Foreign currency forward contracts $ (277 ) — $ (277 ) —

Accounts Receivable and Other R

Accounts Receivable and Other Receivables	3 Months Ended
	Mar. 31, 2016
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): March 31, December 31, Accounts receivable, gross $ 38,920 $ 61,045 Less: allowance for doubtful accounts (107 ) (103 ) Accounts receivable, net $ 38,813 $ 60,942 As of March 31, 2016 and December 31, 2015 , the balance in other receivables was $3.1 million and $11.3 million . Other receivables consisted primarily of non-trade receivables including inventory sold to the Company's contract manufacturing partner or other integration partners (on which the Company does not recognize revenue) and net receivables for value-added taxes.

Inventories

Inventories	3 Months Ended
	Mar. 31, 2016
Inventory Disclosure [Abstract]
Inventory Disclosure	Inventories and Deferred Cost of Sales Inventories consisted of the following (in thousands): March 31, December 31, Raw materials $ 27,610 $ 14,546 Work-in-process 218 98 Finished goods 6,500 7,485 34,328 22,129 Less: inventory valuation allowance (4,233 ) (5,317 ) Inventories, net $ 30,095 $ 16,812 Consigned inventory is held at third-party locations, which include the Company's contract manufacturing partner and customers. The Company retains title to the inventory until purchased by the third-party. Consigned inventory, consisting of raw materials and finished goods was $9.3 million and $11.5 million at March 31, 2016 and December 31, 2015 . The Company’s consignment inventory with its contract manufacturer consists of inventory transferred from the Company’s prior contract manufacturer as well as inventory that has been purchased by the contract manufacturer as a result of the Company's forecasted demand. The Company is contractually obligated to purchase inventory transferred from the Company's prior contract manufacturer after the inventory ages for 365 days. The Company is also contractually obligated to purchase inventory that has been purchased by its contract manufacturer as a result of the Company's forecasted demand when the inventory ages beyond 180 days and has no forecasted demand. The Company’s consignment inventory at its contract manufacturing partner was $8.1 million and $8.7 million as of March 31, 2016 and December 31, 2015. The Company records a liability for adverse purchase commitments of inventory owned by its contract manufacturing partner. See Note 8 - Commitments and Contingencies for additional information regarding the Company's adverse purchase commitment liability. The Company recorded the following charges associated with the valuation of inventory and the adverse purchase commitment liability (in thousands): Three Months Ended March 31, 2016 2015 Inventory, net $ 266 $ (40 ) Adverse purchase commitments 279 576

Restructuring and Other Charges

Restructuring and Other Charges	3 Months Ended
	Mar. 31, 2016
Restructuring and Related Activities [Abstract]
Restructuring and Other Charges	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 March 31, 2016 2015 Employee-related restructuring expenses $ 682 $ 4,033 Integration-related and other non-recurring expenses — (7 ) Non-recurring legal expenses — 109 Restructuring and other charges, net $ 682 $ 4,135 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 March 31, 2016 , the Company recorded the following restructuring charge: • $0.7 million net expense relating to the severance for 21 employees primarily in connection with a reduction to our hardware engineering presence in Shenzhen. For the three months ended March 31, 2015 , the Company recorded the following restructuring and other charges: • $4.0 million net expense relating to the severance of employees in connection with the previously reported Penang site closure, as well as severance for four additional employees, net of reductions resulting from changes in previously estimated amounts for employee severance and associated payroll costs; and • $0.1 million legal expenses associated with non-operating strategic projects. Accrued restructuring, which is included in other accrued liabilities and other long-term liabilities in the accompanying Condensed Consolidated Balance Sheets as of March 31, 2016 and December 31, 2015 , consisted of the following (in thousands): Severance, payroll taxes and other employee benefits Facility reductions Total Balance accrued as of December 31, 2015 $ 82 $ 582 $ 664 Additions 682 — 682 Reversals — — — Expenditures (106 ) (141 ) (247 ) Balance accrued as of March 31, 2016 $ 658 $ 441 $ 1,099 Of the $1.1 million accrued restructuring at March 31, 2016 , $0.1 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.

Short-Term Borrowings

Short-Term Borrowings	3 Months Ended
	Mar. 31, 2016
Short-term Debt [Abstract]
Short-term Debt	Short-Term Borrowings Silicon Valley Bank On March 14, 2014, the Company entered into an amended and restated $25.0 million revolving line of credit agreement with Silicon Valley Bank ("SVB") (the "2014 Agreement") which 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 $1.0 million to $2.0 million . On April 23, 2015, the 2014 Agreement was amended to further increase the letter of credit sublimit under the secured revolving credit facility from $2.0 million to $5.0 million or the net borrowing availability. On February 8, 2016, the 2014 Agreement was amended to increase the revolving line of credit to $35.0 million (as amended, the "Amended Agreement") and to extend the stated maturity date to February 8, 2018. The secured revolving credit facility under the Amended 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 $5.0 million ). Eligible accounts receivable include 80% of U.S. and 75% 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 Amended Agreement) when compared to a pre-determined threshold (the "Liquidity Threshold"), which is defined in the Amended 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 Amended Agreement as unrestricted cash plus unused availability on the revolving line of credit. 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 Amended Agreement, the Company is required to make interest payments monthly. The Company is further required to pay a loan modification fee of $35,000 and pay a facility fee of $52,500 annually. The Company paid a prorated facility fee equal to $48,000 in February 2016 and will pay the full facility fee of $52,500 annually thereafter. Under the Amended 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 Amended Agreement prior to the maturity date, the Company is required to pay a cancellation fee equal to 1.5% of the commitment under the Amended Agreement. The Amended Agreement removed the former requirement to maintain a deposit account balance of at least $4.0 million with SVB or its affiliates and the former requirement that at least 50% of the Company's cash must be deposited with SVB or its affiliates or in an account where SVB has a control agreement. The Amended Agreement did not otherwise change the requirement to maintain all the Company's US domestic cash accounts with SVB or an SVB affiliate. The Amended Agreement requires the Company to make certain representations, warranties and other agreements that are customary in credit agreements of this type. The Amended Agreement also includes financial covenants that requires the Company to maintain minimum Liquidity of $10.0 million , which is tested monthly. Additionally, the Amended Agreement requires the Company to maintain a minimum adjusted EBITDA of at least $10.0 million if the outstanding principal balance is greater than $15.0 million or maintain a minimum adjusted EBITDA of at least $7.5 million if the outstanding principal balance is equal to or less than $15.0 million , which is tested quarterly. The Amended Agreement defines Adjusted EBITDA as net income plus interest expense, depreciation expense, amortization expense, income tax expense, non-cash stock compensation expense and restructuring expense (limited to $1.7 million , $1.14 million , $1.0 million at the first, second and third quarter 2016 measurement dates and $0 thereafter). As of March 31, 2016 and December 31, 2015 , the Company had an outstanding balance of $15.0 million under the Amended Agreement. At March 31, 2016 , the Company had $11.6 million of total borrowing availability remaining under the Amended Agreement. At March 31, 2016 , the Company was in compliance with all covenants under the Amended Agreement.

Convertible Debt

Convertible Debt	3 Months Ended
	Mar. 31, 2016
Debt Disclosure [Abstract]
Long-term Debt	Convertible Debt 2015 Convertible Senior Notes On February 17, 2015, the Company repaid at maturity the entire outstanding balance of the 4.5% convertible senior notes due 2015 (the "2015 convertible senior notes") in accordance with the terms thereof. No convertible senior notes were converted to common stock.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2016
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. 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 and Deferred Cost of Sales ). The adverse purchase commitment liability is included in other accrued liabilities in the accompanying Condensed Consolidated Balance Sheets and was $2.5 million and $2.2 million as of March 31, 2016 and December 31, 2015 . 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 March 31, 2016 . 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. 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 to 24 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): Three Months Ended March 31, 2016 2015 Warranty liability balance, beginning of the period $ 2,553 $ 2,600 Product warranty accruals 385 623 Utilization of accrual (603 ) (517 ) Warranty liability balance, end of the period $ 2,335 $ 2,706 At March 31, 2016 and December 31, 2015 , $1.9 million and $2.0 million of the warranty liability balance was included in other accrued liabilities and $0.5 million and $0.5 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	3 Months Ended
	Mar. 31, 2016
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 March 31, 2016 2015 Numerator Net loss $ (2,965 ) $ (7,053 ) Denominator — Basic Weighted average shares used to calculate net loss per share, basic 37,007 36,649 Denominator — Diluted Weighted average shares used to calculate net loss per share, basic 37,007 36,649 Effect of dilutive restricted stock units (A) — — Effect of dilutive stock options (A) — — Weighted average shares used to calculate net loss per share, diluted 37,007 36,649 Net loss per share Basic $ (0.08 ) $ (0.19 ) Diluted $ (0.08 ) $ (0.19 ) (A) For the three months ended March 31, 2016 and 2015 , the following equity awards, by type, were excluded from the calculation, as their effect would have been anti-dilutive (in thousands): Three Months Ended March 31, 2016 2015 Stock options 2,808 2,721 Restricted stock units 122 105 Performance based restricted stock units (B) 2,305 1,450 Total equity award shares excluded 5,235 4,276 (B) Performance based restricted stock units are presented based on attainment of 100% of the performance goals being met which is the maximum amount that can be earned.

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2016
Income Tax Disclosure [Abstract]
Income Tax Disclosure	Income Taxes The Company's effective tax rate for the three months ended March 31, 2016 differs from the statutory rate due to a full valuation allowance provided against its United States (“U.S.”) net deferred tax assets, 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 March 31, 2016 . 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 $1.2 million at March 31, 2016 and December 31, 2015 . 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 ending balance for the unrecognized tax benefits was approximately $3.7 million at March 31, 2016 . The related interest and penalties were $0.7 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 2006, 2007 and 2010 through 2012. 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 March 31, 2016 . As of March 31, 2016 , the Company is not under examination by tax authorities in any other jurisdictions.

Stock-based Compensation

Stock-based Compensation	3 Months Ended
	Mar. 31, 2016
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 March 31, 2016 2015 Stock options 1,036 555 Restricted stock units — 5 Performance based restricted stock awards (A) 680 1,450 Total 1,716 2,010 (A) On March 28, 2016, the Compensation Committee approved grants of performance-based restricted stock units ("PRSUs") to certain senior executives. The PRSUs will vest only on satisfaction of certain annual performance criteria during the performance period beginning on the grant date. Specifically, 50% of shares will vest on meeting targets of strategic revenue during fiscal year 2016 and 50% of shares will vest during fiscal year 2017 on meeting targets of strategic revenue, subject to the attainment of achieving certain operating income thresholds defined by the Company's ratified 2017 annual operating plans. The awards have two separate annual performance achievement periods in 2016 and 2017 and vest upon attainment and approval of the performance conditions. On March 2, 2015 , the Compensation Committee approved PRSUs with a performance period starting on March 2, 2015 and ending on March 2, 2019, which provides that on the performance measurement date following the achievement of the following market condition stock price hurdles: • 50% of the awards will be earned if Radisys’ average closing stock price over a 30 -trading day period is equal to or greater than $3.45 during a 3 -year performance period. • 50% of the awards will be earned if Radisys’ average closing stock price over a 30 -trading day period is equal to or greater than $4.25 during a 4 -year performance period. If either of the stock price hurdles is not met during their respective performance period, that portion of the award will be forfeited. Stock-based compensation was recognized and allocated as follows (in thousands): Three Months Ended March 31, 2016 2015 Cost of sales $ 46 $ 53 Research and development 153 132 Selling, general and administrative 489 474 Total $ 688 $ 659

Hedging

Hedging	3 Months Ended
	Mar. 31, 2016
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 March 31, 2016 and December 31, 2015 , 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 (loss) 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 months ended March 31, 2016 and 2015 , the Company had no hedge ineffectiveness. During the three months ended March 31, 2016 the Company entered into 12 new foreign currency forward contracts, with total contractual values of $3.6 million . During the three months ended March 31, 2015 , the Company did not enter into any new foreign currency contracts. 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 March 31, 2016 is as follows (in thousands): Contractual/ Notional Amount Condensed Consolidated Balance Sheet Classification Estimated Fair Value Type of Cash Flow Hedge Asset (Liability) Foreign currency forward exchange contracts $ 13,872 Other accrued liabilities $ — $ (4 ) 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, 2015 is as follows (in thousands): Contractual/ Notional Amount Condensed Consolidated Balance Sheet Classification Estimated Fair Value Type of Cash Flow Hedge Asset (Liability) Foreign currency forward exchange contracts $ 14,024 Other accrued liabilities $ — $ (277 ) There were no ineffective hedges for the three months ended March 31, 2016 and 2015. The following table summarizes the effect of derivative instruments on the consolidated financial statements as a loss (gain) as follows (in thousands): Three Months Ended March 31, 2016 2015 Cost of sales $ 108 $ (4 ) Research and development 173 (6 ) Selling, general and administrative 67 1 Total $ 348 $ (9 ) The following is a summary of changes to comprehensive income (loss) associated with the Company's hedging activities (in thousands): Three Months Ended March 31, 2016 2015 Beginning balance of unrealized loss on forward exchange contracts $ (819 ) $ (752 ) Other comprehensive loss before reclassifications (214 ) 127 Amounts reclassified from other comprehensive income 348 (9 ) Other comprehensive income (loss) 134 118 Ending balance of unrealized loss on forward exchange contracts $ (685 ) $ (634 ) Over the next twelve months, the Company expects to reclassify into earnings a loss of approximately $0.8 million currently recorded as accumulated other comprehensive income (loss), 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	3 Months Ended
	Mar. 31, 2016
Segment Reporting [Abstract]
Segment Reporting Disclosure	Segment Information The Company is made up of two operating segments: Software-Systems and Embedded Products and Hardware Services. The Company's Chief Executive Officer, or chief operating decision maker, regularly reviews discrete financial information for purposes of allocating resources and assessing the performance of each segment: • Software-Systems. Software-Systems is comprised of three product lines: FlowEngine, MediaEngine and CellEngine. • Embedded Products and Hardware Services. These hardware-centric products enable both the control and data plane within the core of the telecom networks and also includes the DCEngine data center product line. Cost of sales, research and development and selling, general and administrative expenses are allocated to Software-Systems and Embedded Products and Hardware Services. Expenses, reversals, gains and losses not allocated to Software-Systems or Embedded Product and Hardware Services include amortization of acquired intangible assets, stock-based compensation, restructuring and other charges, and other one-time non-recurring events. These items are allocated to corporate and other. The Company recorded the following revenues, gross margin and income (loss) from operations by operating segment for the three months ended March 31, 2016 and 2015 (in thousands): Three Months Ended March 31, 2016 2015 Revenue Software-Systems $ 14,059 $ 9,689 Embedded Products and Hardware Services 41,087 38,998 Total revenues $ 55,146 $ 48,687 Three Months Ended March 31, 2016 2015 Gross margin Software-Systems $ 8,788 $ 5,328 Embedded Products and Hardware Services 5,969 9,344 Corporate and other (1,973 ) (2,046 ) Total gross margin $ 12,784 $ 12,626 Three Months Ended March 31, 2016 2015 Income (loss) from operations Software-Systems $ 780 $ (2,902 ) Embedded Products and Hardware Services 1,327 3,957 Corporate and other (4,557 ) (8,048 ) Total loss from operations $ (2,450 ) $ (6,993 ) Assets are not allocated to segments for internal reporting presentations. A portion of depreciation is allocated to the respective segment. It is impracticable for the Company to separately identify the amount of depreciation by segment that is included in the measure of segment profit or loss. Revenues by geographic area were as follows (in thousands): Three Months Ended March 31, 2016 2015 United States $ 37,765 $ 21,172 Other North America 78 45 China 3,330 11,693 Other Asia Pacific 4,288 5,492 Asia Pacific ("APAC") 7,618 17,185 Netherlands 7,235 4,362 Other EMEA 2,450 5,923 Europe, the Middle East and Africa (“EMEA”) 9,685 10,285 Foreign Countries 17,381 27,515 Total $ 55,146 $ 48,687 Long-lived assets by geographic area are as follows (in thousands): March 31, December 31, Property and equipment, net United States $ 2,717 $ 3,061 Other North America 238 257 China 994 1,231 Total APAC 994 1,231 India 1,450 1,584 Other EMEA 1 1 Total EMEA 1,451 1,585 Foreign Countries 2,683 3,073 Total property and equipment, net $ 5,400 $ 6,134 Intangible assets, net United States $ 27,136 $ 30,322 Total intangible assets, net $ 27,136 $ 30,322 The following customers accounted for more than 10% of the Company's total revenues: Three Months Ended March 31, 2016 2015 Customer A 42.3 % N/A Customer B 14.3 % 11.9 % Customer C N/A 26.2 % The following customers accounted for more than 10% of accounts receivable: March 31, 2016 December 31, 2015 Customer D 21.6 % 14.7 % Customer B 15.7 % N/A Customer A 13.7 % 36.0 % Customer E 10.6 % N/A

Significant Accounting Polici20

Significant Accounting Policies Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2016
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 March 31, 2016 and for the three months ended March 31, 2016 and 2015 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 Instr21

Fair Value of Financial Instruments (Tables)	3 Months Ended
	Mar. 31, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value Measurements, Recurring and Nonrecurring [Table Text Block]	Fair Value Measurements as of December 31, 2015 Total Level 1 Level 2 Level 3 Foreign currency forward contracts $ (277 ) — $ (277 ) — The following table summarizes the fair value measurements for the Company's financial instruments (in thousands): Fair Value Measurements as of March 31, 2016 Total Level 1 Level 2 Level 3 Foreign currency forward contracts $ (4 ) — $ (4 ) —

Accounts Receivable and Other22

Accounts Receivable and Other Receivables (Tables)	3 Months Ended
	Mar. 31, 2016
Receivables [Abstract]
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block]	Accounts receivable balances consisted of the following (in thousands): March 31, December 31, Accounts receivable, gross $ 38,920 $ 61,045 Less: allowance for doubtful accounts (107 ) (103 ) Accounts receivable, net $ 38,813 $ 60,942

Inventories (Tables)

Inventories (Tables)	3 Months Ended
	Mar. 31, 2016
Inventory Disclosure [Abstract]
Schedule of Inventory, Current [Table Text Block]	Inventories consisted of the following (in thousands): March 31, December 31, Raw materials $ 27,610 $ 14,546 Work-in-process 218 98 Finished goods 6,500 7,485 34,328 22,129 Less: inventory valuation allowance (4,233 ) (5,317 ) Inventories, net $ 30,095 $ 16,812
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 March 31, 2016 2015 Inventory, net $ 266 $ (40 ) Adverse purchase commitments 279 576 Deferred cost of sales, which are directly associated with deferred revenue on shipments to customers, was $0.0 million and $14.1 million at March 31, 2016 and December 31, 2015.

Restructuring and Other Charg24

Restructuring and Other Charges (Tables)	3 Months Ended
	Mar. 31, 2016
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 March 31, 2016 2015 Employee-related restructuring expenses $ 682 $ 4,033 Integration-related and other non-recurring expenses — (7 ) Non-recurring legal expenses — 109 Restructuring and other charges, net $ 682 $ 4,135
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 March 31, 2016 and December 31, 2015 , consisted of the following (in thousands): Severance, payroll taxes and other employee benefits Facility reductions Total Balance accrued as of December 31, 2015 $ 82 $ 582 $ 664 Additions 682 — 682 Reversals — — — Expenditures (106 ) (141 ) (247 ) Balance accrued as of March 31, 2016 $ 658 $ 441 $ 1,099

Convertible Debt (Tables)

Convertible Debt (Tables)	3 Months Ended
	Mar. 31, 2016
Debt Disclosure [Abstract]
Schedule of Debt [Table Text Block]

Commitments and Contingencies (

Commitments and Contingencies (Tables)	3 Months Ended
	Mar. 31, 2016
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): Three Months Ended March 31, 2016 2015 Warranty liability balance, beginning of the period $ 2,553 $ 2,600 Product warranty accruals 385 623 Utilization of accrual (603 ) (517 ) Warranty liability balance, end of the period $ 2,335 $ 2,706

Basic and Diluted Net Income 27

Basic and Diluted Net Income (Loss) Per Share (Tables)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Earnings Per Share [Abstract]
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block]	(A) For the three months ended March 31, 2016 and 2015 , the following equity awards, by type, were excluded from the calculation, as their effect would have been anti-dilutive (in thousands): Three Months Ended March 31, 2016 2015 Stock options 2,808 2,721 Restricted stock units 122 105 Performance based restricted stock units (B) 2,305 1,450 Total equity award shares excluded 5,235 4,276 (B) Performance based restricted stock units are presented based on attainment of 100% of the performance goals being met which is the maximum amount that can be earned.
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 March 31, 2016 2015 Numerator Net loss $ (2,965 ) $ (7,053 ) Denominator — Basic Weighted average shares used to calculate net loss per share, basic 37,007 36,649 Denominator — Diluted Weighted average shares used to calculate net loss per share, basic 37,007 36,649 Effect of dilutive restricted stock units (A) — — Effect of dilutive stock options (A) — — Weighted average shares used to calculate net loss per share, diluted 37,007 36,649 Net loss per share Basic $ (0.08 ) $ (0.19 ) Diluted $ (0.08 ) $ (0.19 )

Stock-based Compensation (Table

Stock-based Compensation (Tables)	3 Months Ended
	Mar. 31, 2016
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 March 31, 2016 2015 Stock options 1,036 555 Restricted stock units — 5 Performance based restricted stock awards (A) 680 1,450 Total 1,716 2,010
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 March 31, 2016 2015 Cost of sales $ 46 $ 53 Research and development 153 132 Selling, general and administrative 489 474 Total $ 688 $ 659

Hedging (Tables)

Hedging (Tables)	3 Months Ended
	Mar. 31, 2016
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, 2015 is as follows (in thousands): Contractual/ Notional Amount Condensed Consolidated Balance Sheet Classification Estimated Fair Value Type of Cash Flow Hedge Asset (Liability) Foreign currency forward exchange contracts $ 14,024 Other accrued liabilities $ — $ (277 ) 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 March 31, 2016 is as follows (in thousands): Contractual/ Notional Amount Condensed Consolidated Balance Sheet Classification Estimated Fair Value Type of Cash Flow Hedge Asset (Liability) Foreign currency forward exchange contracts $ 13,872 Other accrued liabilities $ — $ (4 )
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 March 31, 2016 is as follows (in thousands): Contractual/ Notional Amount Condensed Consolidated Balance Sheet Classification Estimated Fair Value Type of Cash Flow Hedge Asset (Liability) Foreign currency forward exchange contracts $ 13,872 Other accrued liabilities $ — $ (4 ) 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, 2015 is as follows (in thousands): Contractual/ Notional Amount Condensed Consolidated Balance Sheet Classification Estimated Fair Value Type of Cash Flow Hedge Asset (Liability) Foreign currency forward exchange contracts $ 14,024 Other accrued liabilities $ — $ (277 ) There were no ineffective hedges for the three months ended March 31, 2016 and 2015. The following table summarizes the effect of derivative instruments on the consolidated financial statements as a loss (gain) as follows (in thousands): Three Months Ended March 31, 2016 2015 Cost of sales $ 108 $ (4 ) Research and development 173 (6 ) Selling, general and administrative 67 1 Total $ 348 $ (9 )
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 March 31, 2016 2015 Beginning balance of unrealized loss on forward exchange contracts $ (819 ) $ (752 ) Other comprehensive loss before reclassifications (214 ) 127 Amounts reclassified from other comprehensive income 348 (9 ) Other comprehensive income (loss) 134 118 Ending balance of unrealized loss on forward exchange contracts $ (685 ) $ (634 )

Segment Information (Tables)

Segment Information (Tables)	3 Months Ended
	Mar. 31, 2016
Segment Reporting [Abstract]
Revenue from External Customers by Products and Services [Table Text Block]	Three Months Ended March 31, 2016 2015 Revenue Software-Systems $ 14,059 $ 9,689 Embedded Products and Hardware Services 41,087 38,998 Total revenues $ 55,146 $ 48,687 Three Months Ended March 31, 2016 2015 Gross margin Software-Systems $ 8,788 $ 5,328 Embedded Products and Hardware Services 5,969 9,344 Corporate and other (1,973 ) (2,046 ) Total gross margin $ 12,784 $ 12,626 Three Months Ended March 31, 2016 2015 Income (loss) from operations Software-Systems $ 780 $ (2,902 ) Embedded Products and Hardware Services 1,327 3,957 Corporate and other (4,557 ) (8,048 ) Total loss from operations $ (2,450 ) $ (6,993 )
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block]	Three Months Ended March 31, 2016 2015 United States $ 37,765 $ 21,172 Other North America 78 45 China 3,330 11,693 Other Asia Pacific 4,288 5,492 Asia Pacific ("APAC") 7,618 17,185 Netherlands 7,235 4,362 Other EMEA 2,450 5,923 Europe, the Middle East and Africa (“EMEA”) 9,685 10,285 Foreign Countries 17,381 27,515 Total $ 55,146 $ 48,687 Three Months Ended March 31, 2016 2015 United States $ 37,765 $ 21,172 Other North America 78 45 China 3,330 11,693 Other Asia Pacific 4,288 5,492 Asia Pacific ("APAC") 7,618 17,185 Netherlands 7,235 4,362 Other EMEA 2,450 5,923 Europe, the Middle East and Africa (“EMEA”) 9,685 10,285 Foreign Countries 17,381 27,515 Total $ 55,146 $ 48,687 Long-lived assets by geographic area are as follows (in thousands): March 31, December 31, Property and equipment, net United States $ 2,717 $ 3,061 Other North America 238 257 China 994 1,231 Total APAC 994 1,231 India 1,450 1,584 Other EMEA 1 1 Total EMEA 1,451 1,585 Foreign Countries 2,683 3,073 Total property and equipment, net $ 5,400 $ 6,134 Intangible assets, net United States $ 27,136 $ 30,322 Total intangible assets, net $ 27,136 $ 30,322
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 March 31, 2016 2015 Customer A 42.3 % N/A Customer B 14.3 % 11.9 % Customer C N/A 26.2 %
Schedules of Concentration of Risk, by Risk Factor [Table Text Block]	The following customers accounted for more than 10% of accounts receivable: March 31, 2016 December 31, 2015 Customer D 21.6 % 14.7 % Customer B 15.7 % N/A Customer A 13.7 % 36.0 % Customer E 10.6 % N/A

Fair Value of Financial Instr31

Fair Value of Financial Instruments Fair Value Measurements (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Foreign Currency Contract, Asset, Fair Value Disclosure	$ 0
Foreign Currency Contracts, Liability, Fair Value Disclosure		$ 0
Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Foreign Currency Contracts, Liability, Fair Value Disclosure	(4)	(277)
Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Foreign Currency Contract, Asset, Fair Value Disclosure	0
Foreign Currency Contracts, Liability, Fair Value Disclosure		0
Estimate of Fair Value, Fair Value Disclosure [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Foreign Currency Contracts, Liability, Fair Value Disclosure	$ (4)	$ (277)

Accounts Receivable and Other32

Accounts Receivable and Other Receivables (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Receivables [Abstract]
Accounts Receivable, Gross	$ 38,920	$ 61,045
Less: allowance for doubtful accounts	(107)	(103)
Accounts Receivable, Net	38,813	60,942
Other receivables	$ 3,059	$ 11,304

Inventories (Details)

Inventories (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Inventory Disclosure [Abstract]
Deferred Costs of Sales, Current	$ 0		$ 14,100
Inventory, Net [Abstract]
Raw materials	27,610		14,546
Work-in-process	218		98
Finished goods	6,500		7,485
Inventory, Gross	34,328		22,129
Less: inventory valuation allowance	(4,233)		(5,317)
Inventories, net	30,095		16,812
Other Inventory, Materials, Supplies and Merchandise under Consignment, Gross	$ 9,300		11,500
Age of consignment inventory purchased by contract manufacturer	365 days
Age of consignment inventory purchased as a result of forecasted demand	180 days
Inventory Charges, Inventory Valuation, Deposit And Adverse Purchase Commitment Liability	$ 266	$ (40)
Adverse Purchase Commitments	279	$ 576
Inventory for Long-term Contracts or Programs, Gross	$ 8,100		$ 8,700

Restructuring and Other Charg34

Restructuring and Other Charges (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	$ 682	$ 4,033
Business Combination, Integration Related Costs	0	(7)
Restructuring and Business Combination Related Expenses, Non-Recurring Legal Expenses	0	109
Restructuring and acquisition-related charges, net	$ 682	$ 4,135

Restructuring and Other Charg35

Restructuring and Other Charges - Restructuring Reserve Rollforward (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Restructuring Cost and Reserve [Line Items]
Severance Costs	$ 682	$ 4,033
Restructuring and Business Combination Related Expenses, Non-Recurring Legal Expenses	0	109
Business Combination, Integration Related Costs	0	$ (7)
Balance accrued as of December 31, 2013	664
Restructuring Charges	682
Restructuring Reserve, Accrual Adjustment	0
Expenditures	(247)
Balance accrued as of September 30, 2014	1,099
Restructuring Reserve, Noncurrent	100
Severance, Payroll Taxes and Other Employee Benefits [Member]
Restructuring Cost and Reserve [Line Items]
Balance accrued as of December 31, 2013	82
Restructuring Charges	682
Restructuring Reserve, Accrual Adjustment	0
Expenditures	(106)
Balance accrued as of September 30, 2014	658
Lease Abandonment Charges [Member]
Restructuring Cost and Reserve [Line Items]
Balance accrued as of December 31, 2013	582
Restructuring Charges	0
Restructuring Reserve, Accrual Adjustment	0
Expenditures	(141)
Balance accrued as of September 30, 2014	$ 441

Short-Term Borrowings (Details)

Short-Term Borrowings (Details) - USD ($)	Feb. 08, 2016	Feb. 29, 2016	Mar. 31, 2016	Dec. 31, 2015	Apr. 23, 2015	Feb. 17, 2015	May. 30, 2014	Mar. 14, 2014
Line of Credit Facility [Line Items]
Line of Credit Facility, Remaining Borrowing Capacity			$ 11,600,000
Line of Credit Facility, Maximum Borrowing Capacity			5,000,000
Line of Credit Facility, Amount Outstanding			$ 15,000,000	$ 15,000,000
Line of Credit [Member] | 2014 Debt Agreement [Member]
Line of Credit Facility [Line Items]
Line of Credit Facility, Current Borrowing Capacity	$ 35,000,000							$ 25
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
Debt Instrument, Average Monthly Interest Expense	10,000,000
Line of Credit Facility, Covenant Compliance, Minimum Cash Balance Required, Percent			50.00%
Line of Credit, Facility Fee	$ 52,500
Payment for Facility Fee		$ 48,000
Line of Credit Facility, Commitment Fee Percentage	1.50%
Line of Credit Facility, Covenant Terms, Adjusted Earnings before Interest, Taxes, Depreciation and Amortization, Debt Outstanding Balance Threshold	$ 15,000,000
Line of Credit Facility, Covenant Terms, Maximum Restructuring Expense Allowed in First Quarter	1,700,000
Line of Credit Facility, Covenant Terms, Maximum Restructuring Expense Allowed in Second Quarter	1,140,000
Line of Credit Facility, Covenant Terms, Maximum Restructuring Expense Allowed in Third Quarter	1,000,000
Line of Credit Facility, Covenant Terms, Maximum Restructuring Expense Allowed after Third Quarter	$ 0
Line of Credit Facility, Covenant Terms, Minimum Cash Balance Required			$ 4,000,000
Convertible Senior Notes [Member] | 2015 Convertible Senior Notes [Member]
Line of Credit Facility [Line Items]
Debt instrument, interest rate, stated percentage						4.50%
Maximum [Member] | Line of Credit [Member] | 2014 Debt Agreement [Member] | Prime Rate [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Basis Spread on Variable Rate	2.25%
Minimum [Member] | Line of Credit [Member] | 2014 Debt Agreement [Member]
Line of Credit Facility [Line Items]
Line of Credit Facility, Debt Covenant, Liquidity	$ 10,000,000
Line of Credit Facility, Covenant Terms, Adjusted Earnings before Interest, Taxes, Depreciation and Amortization over Debt Outstanding Balance Threshold	10,000,000
Line of Credit Facility, Covenant Terms, Adjusted Earnings before Interest, Taxes, Depreciation and Amortization under Debt Outstanding Balance Threshold	$ 7,500,000
Minimum [Member] | Line of Credit [Member] | 2014 Debt Agreement [Member] | Prime Rate [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Basis Spread on Variable Rate	0.75%
Letter of Credit [Member] | 2014 Debt Agreement [Member]
Line of Credit Facility [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity					$ 5,000,000
Letter of Credit [Member] | Line of Credit [Member] | 2014 Debt Agreement [Member]
Line of Credit Facility [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity							$ 2,000,000
Line of Credit Facility, Current Borrowing Capacity							$ 2,000,000	$ 1,000,000
Line of Credit Facility, Borrowing Formula, Eligible Accounts Receivable, Days from Invoice Date			60 days
Geographic Distribution, Domestic [Member] | Trade Accounts Receivable [Member] | Line of Credit [Member] | 2014 Debt Agreement [Member]
Line of Credit Facility [Line Items]
Line of Credit Facility, Borrowing Formula, Eligible Accounts Receivable	80.00%
Geographic Distribution, Foreign [Member] | Maximum [Member] | Trade Accounts Receivable [Member]
Line of Credit Facility [Line Items]
Line of Credit Facility, Borrowing Formula, Eligible Accounts Receivable	80.00%
Geographic Distribution, Foreign [Member] | Minimum [Member] | Trade Accounts Receivable [Member] | Line of Credit [Member] | 2014 Debt Agreement [Member]
Line of Credit Facility [Line Items]
Line of Credit Facility, Borrowing Formula, Eligible Accounts Receivable	75.00%

Convertible Debt (Details)

Convertible Debt (Details)	Feb. 17, 2015
Convertible Senior Notes [Member] | 2015 Convertible Senior Notes [Member]
Debt Instrument [Line Items]
Debt instrument, interest rate, stated percentage	4.50%

Commitments and Contingencies38

Commitments and Contingencies (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Movement in Standard Product Warranty Accrual [Roll Forward]
Warranty liability balance, beginning of the period	$ 2,553	$ 2,600
Product warranty accruals	385	623
Utilization of accrual	(603)	517
Warranty liability balance, end of the period	2,335	$ 2,706
Product Warranty Accrual, Current	1,900		$ 2,000
Product Warranty Accrual, Noncurrent	$ 500		$ 500
Minimum [Member]
Product Warranty Liability [Line Items]
Warranty, Term	12 months
Maximum [Member]
Product Warranty Liability [Line Items]
Warranty, Term	24 months

Commitments and Contingencies A

Commitments and Contingencies Adverse Purchase Commitments Liability (Details) - USD ($) $ in Millions	Mar. 31, 2016	Dec. 31, 2015
Commitments and Contingencies Disclosure - APC liability [Abstract]
Purchase Commitment, Remaining Minimum Amount Committed	$ 2.5	$ 2.2

Basic and Diluted Net Income 40

Basic and Diluted Net Income (Loss) Per Share - Earnings (Loss) Per Share Calculation (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
Net income (loss)	$ (2,965)	$ (7,053)
Weighted average shares used to calculate net income (loss) per share, basic	37,007	36,649
Weighted average shares used to calculate net income (loss) per share, diluted	37,007	36,649
Basic (in dollars per share)	$ (0.08)	$ (0.19)
Diluted (in dollars per share)	$ (0.08)	$ (0.19)
Restricted Stock Units (RSUs) [Member]
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
Effect of dilutive equity awards	0	0
Stock Options [Member]
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
Effect of dilutive equity awards	0	0

Basic and Diluted Net Income 41

Basic and Diluted Net Income (Loss) Per Share - Anti-Dilutive Securities (Details) - shares shares in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Restricted Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	122	105
Securities Excluded from Computation of Earnings Per Share, Performance Target Not Met, Amount	2,305	1,450
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	5,235	4,276
Stock Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	2,808	2,721

Income Taxes (Details)

Income Taxes (Details) $ in Millions	Mar. 31, 2016USD ($)
Income Tax Disclosure [Abstract]
Deferred Tax Assets, Net	$ 1.2
Unrecognized Tax Benefits	3.7
Unrecognized Tax Benefits, Interest on Income Taxes Accrued	0.7
Unrecognized Tax Benefits, Income Tax Penalties Accrued	$ 0.3

Stock-based Compensation - Equi

Stock-based Compensation - Equity Awards (Details) - 2007 Stock Plan [Member] - $ / shares shares in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options, grants in period	1,036	555
Total grants in period	1,716	2,010
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity instruments other than options, grants in period	0	5
Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage	50.00%
Equity instruments other than options, grants in period	680	1,450
$3.45 Average Closing Stock Price [Member] | Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting percent	50.00%
Duration of trading period stock price must be maintained	30 days
Required average closing stock price (usd per share)	$ 3.45
Award performance period	3 years
$4.25 Average Closing Stock Price [Member] | Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting percent	50.00%
Duration of trading period stock price must be maintained	30 days
Required average closing stock price (usd per share)	$ 4.25
Award performance period	4 years

Stock-based Compensation - Stoc

Stock-based Compensation - Stock Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Allocated Share-based Compensation Expense	$ 688	$ 659
Cost of Sales [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Allocated Share-based Compensation Expense	46	53
Research and Development Expense [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Allocated Share-based Compensation Expense	153	132
Selling, General and Administrative Expenses [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Allocated Share-based Compensation Expense	$ 489	$ 474

Hedging (Details)

Hedging (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2016USD ($)Derivatives	Mar. 31, 2015USD ($)	Dec. 31, 2015USD ($)	Dec. 31, 2014USD ($)
Derivatives, Fair Value [Line Items]
Maximum Length of Time Hedged in Cash Flow Hedge	2 years
Derivative, Number of New Instruments During Period | Derivatives	12
Derivative, New Instruments During Period, Notional Amount	$ 3,600
Foreign Currency Cash Flow Hedge Gain (Loss) Reclassified to Earnings, Net	348	$ (9)
Unrealized loss on hedge instruments	(685)	(634)	$ (819)	$ (752)
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax	(214)	127
Cash Flow Hedge Gain (Loss) Reclassified to Earnings, Net	348
Hedge Loss Recognized in Other Comprehensive Income (Loss)	134	118
Cost of Sales [Member]
Derivatives, Fair Value [Line Items]
Foreign Currency Cash Flow Hedge Gain (Loss) Reclassified to Earnings, Net	108	(4)
Research and Development Expense [Member]
Derivatives, Fair Value [Line Items]
Foreign Currency Cash Flow Hedge Gain (Loss) Reclassified to Earnings, Net	173	(6)
Selling, General and Administrative Expenses [Member]
Derivatives, Fair Value [Line Items]
Foreign Currency Cash Flow Hedge Gain (Loss) Reclassified to Earnings, Net	67	$ 1
Other Current Assets [Member]
Derivatives, Fair Value [Line Items]
Cash Flow Hedge Derivative Instrument Assets at Fair Value	0		0
Other Accrued Liabilities [Member]
Derivatives, Fair Value [Line Items]
Cash Flow Hedge Derivative Instrument Liabilities at Fair Value	(4)		(277)
Foreign Exchange Forward [Member]
Derivatives, Fair Value [Line Items]
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months	(800)
Notional Amount of Foreign Currency Cash Flow Hedge Derivatives	$ 13,872		$ 14,024
Foreign Exchange Forward [Member] | Cash Flow Hedging [Member]
Derivatives, Fair Value [Line Items]
Derivative, Number of New Instruments During Period | Derivatives	18
Derivative, New Instruments During Period, Notional Amount	$ 11,600

Segment Information - Product a

Segment Information - Product and Service and Product Group (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Revenue from External Customer [Line Items]
Revenues	$ 55,146	$ 48,687
Europe, the Middle East and Africa [Member]
Revenue from External Customer [Line Items]
Revenues	$ 9,685	$ 10,285

Segment Information - Geographi

Segment Information - Geographical Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	$ 55,146	$ 48,687
Property and equipment, net	5,400		$ 6,134
Total Intangible Assets, Net	27,136		30,322
UNITED STATES
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	37,765	21,172
Property and equipment, net	2,717		3,061
Total Intangible Assets, Net			30,322
Foreign Countries [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	17,381	27,515
Property and equipment, net	2,683		3,073
Other North America
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	78	45
Property and equipment, net	238		257
Asia Pacific [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	7,618	17,185
Property and equipment, net	994		1,231
CHINA [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	3,330	11,693
Property and equipment, net	994		1,231
INDIA
Revenues from External Customers and Long-Lived Assets [Line Items]
Property and equipment, net	1,450		1,584
Other Asia Pacific [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	4,288	5,492
Netherlands [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	7,235	4,362
Other EMEA [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	2,450	5,923
Property and equipment, net	1		1
Europe, the Middle East and Africa [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	9,685	$ 10,285
Property and equipment, net	$ 1,451		$ 1,585

Segment Information - Revenue b

Segment Information - Revenue by Major Customer (Details)	3 Months Ended		12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Customer A [Domain]
Revenue, Major Customer [Line Items]
Entity-Wide Revenue, Major Customer, Percentage	42.30%
Customer B [Domain]
Revenue, Major Customer [Line Items]
Entity-Wide Revenue, Major Customer, Percentage	14.30%	11.90%
Customer C [Domain]
Revenue, Major Customer [Line Items]
Entity-Wide Revenue, Major Customer, Percentage		26.20%
Accounts Receivable [Member] | Customer A [Domain]
Revenue, Major Customer [Line Items]
Entity-Wide Revenue, Major Customer, Percentage	13.70%		36.00%
Accounts Receivable [Member] | Customer B [Domain]
Revenue, Major Customer [Line Items]
Entity-Wide Revenue, Major Customer, Percentage	15.70%

Segment Information - Accounts

Segment Information - Accounts Receivable (Details)	3 Months Ended	12 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Customer D [Domain] | Accounts Receivable [Member]
Concentration Risk [Line Items]
Entity-Wide Revenue, Major Customer, Percentage	21.60%	14.70%
Customer A [Domain]
Concentration Risk [Line Items]
Entity-Wide Revenue, Major Customer, Percentage	42.30%
Customer A [Domain] | Accounts Receivable [Member]
Concentration Risk [Line Items]
Entity-Wide Revenue, Major Customer, Percentage	13.70%	36.00%
Sanmina SCI Corp [Member] | Accounts Receivable [Member]
Concentration Risk [Line Items]
Entity-Wide Revenue, Major Customer, Percentage	10.60%

Segment Information Operating S

Segment Information Operating Segment (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Segment Reporting Information [Line Items]
Operating Income (Loss)	$ (2,450)	$ (6,993)
Gross Profit	12,784	12,626
Revenues	55,146	48,687
Operating Segments [Member] | Software-Systems [Member]
Segment Reporting Information [Line Items]
Operating Income (Loss)	780	(2,902)
Gross Profit	8,788	5,328
Revenues	14,059	9,689
Operating Segments [Member] | Embedded Products and Hardware Services [Member]
Segment Reporting Information [Line Items]
Operating Income (Loss)	1,327	3,957
Gross Profit	5,969	9,344
Revenues	41,087	38,998
Corporate, Non-Segment [Member]
Segment Reporting Information [Line Items]
Operating Income (Loss)	(4,557)	(8,048)
Gross Profit	$ (1,973)	$ (2,046)