DEI Document
DEI Document - shares | 6 Months Ended | ||
Jun. 30, 2016 | Jul. 26, 2016 | Dec. 31, 2015 | |
DEI [Abstract] | |||
Common Stock, Shares, Issued | 38,280,000 | 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 | Jun. 30, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | Q2 | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 38,279,744 | ||
Common Stock, Shares, Outstanding | 38,280,000 | 37,026,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Revenues | $ 61,288 | $ 47,049 | $ 116,434 | $ 95,736 |
Cost of sales: | ||||
Cost of sales | 43,916 | 32,468 | 84,351 | 66,535 |
Amortization of purchased technology | 1,927 | 1,980 | 3,854 | 3,974 |
Total cost of sales | 45,843 | 34,448 | 88,205 | 70,509 |
Gross margin | 15,445 | 12,601 | 28,229 | 25,227 |
Research and development | 6,298 | 6,840 | 11,951 | 13,564 |
Selling, general and administrative | 8,554 | 7,475 | 16,193 | 14,975 |
Intangible asset amortization | 1,260 | 1,260 | 2,520 | 2,520 |
Restructuring and acquisition-related charges, net | 265 | 559 | 947 | 4,694 |
Income (loss) from operations | (932) | (3,533) | (3,382) | (10,526) |
Interest expense | (159) | (103) | (276) | (320) |
Other income (expense), net | 1,069 | 161 | 1,208 | 558 |
Income (loss) before income tax expense (benefit) | (22) | (3,475) | (2,450) | (10,288) |
Income tax expense (benefit) | 569 | 644 | 1,106 | 884 |
Net income (loss) | $ (591) | $ (4,119) | $ (3,556) | $ (11,172) |
Net income (loss) per share: | ||||
Basic (in dollars per share) | $ (0.02) | $ (0.11) | $ (0.10) | $ (0.30) |
Diluted (in dollars per share) | $ (0.02) | $ (0.11) | $ (0.10) | $ (0.30) |
Weighted average shares outstanding: | ||||
Basic (in shares) | 37,143 | 36,741 | 37,075 | 36,695 |
Diluted (in shares) | 37,143 | 36,741 | 37,075 | 36,695 |
Condensed Consolidated Stateme3
Condensed Consolidated Statement of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Net income (loss) | $ (591) | $ (4,119) | $ (3,556) | $ (11,172) |
Other comprehensive income (loss): | ||||
Translation adjustments | (812) | 114 | (355) | (333) |
Net adjustment for fair value of hedge derivatives (A) | 82 | (51) | 216 | 67 |
Foreign Currency Cash Flow Hedge Gain (Loss) Reclassified to Earnings, Net | 244 | 79 | 592 | 70 |
Other comprehensive income (loss) | (730) | 63 | (139) | (266) |
Comprehensive income (loss) | $ (1,321) | $ (4,056) | $ (3,695) | $ (11,438) |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 30,926 | $ 20,764 |
Accounts receivable, net | 43,005 | 60,942 |
Other receivables | 4,284 | 11,304 |
Deferred Costs, Current | 0 | 14,113 |
Inventories, net | 23,301 | 16,812 |
Other current assets | 2,681 | 2,794 |
Total current assets | 104,197 | 126,729 |
Property and equipment, net | 5,052 | 6,134 |
Intangible assets, net | 23,949 | 30,322 |
Long-term deferred tax assets, net | 1,155 | 1,173 |
Other assets | 2,827 | 2,711 |
Total assets | 137,180 | 167,069 |
Current liabilities: | ||
Accounts payable | 24,740 | 43,451 |
Accrued wages and bonuses | 6,464 | 7,250 |
Deferred Revenue | 5,703 | 23,062 |
Line of Credit Facility, Amount Outstanding | 25,000 | 15,000 |
Other accrued liabilities | 7,563 | 9,404 |
Total current liabilities | 69,470 | 98,167 |
Long-term liabilities: | ||
Other long-term liabilities | 3,129 | 2,985 |
Total long-term liabilities | 3,129 | 2,985 |
Total liabilities | 72,599 | 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 | 340,524 | 338,165 |
Accumulated deficit | (274,905) | (271,349) |
Accumulated other comprehensive income: | ||
Cumulative translation adjustments | (435) | (80) |
Unrealized loss on hedge instruments | (603) | (819) |
Total accumulated other comprehensive income | (1,038) | (899) |
Total shareholders’ equity | 64,581 | 65,917 |
Total liabilities and shareholders' equity | $ 137,180 | $ 167,069 |
Condensed Consolidated Balance5
Condensed Consolidated Balance Sheets Condensed Consolidated Balance Sheets Parenthetical - $ / shares shares in Thousands | Jun. 30, 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 | 38,280 | 37,026 |
Common Stock, Shares, Outstanding | 38,280 | 37,026 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Cash flows from operating activities: | ||
Net income (loss) | $ (3,556) | $ (11,172) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 8,593 | 9,474 |
Inventory valuation allowance and adverse purch commitment charges | 1,389 | 1,279 |
Deferred income taxes | (178) | 288 |
Stock-based compensation expense | 1,880 | 1,799 |
Translation Adjustment Functional to Reporting Currency, Loss (Gain), Reclassified to Earnings, Net of Tax | (421) | 0 |
Other | (169) | 170 |
Changes in operating assets and liabilities | ||
Accounts receivable | 17,929 | 4,907 |
Other receivables | 7,007 | 2,507 |
Increase (Decrease) in Inventory and Deferred Cost of Sales | (5,103) | (3,376) |
Accounts payable | (18,704) | (7,589) |
Accrued restructuring | (453) | 608 |
Accrued wages and other | (830) | (176) |
Increase (Decrease) in Deferred Revenue | (17,359) | 366 |
Other Accrued Liabilities | 392 | 777 |
Net cash provided by operating activities | 623 | 6,614 |
Cash flows from investing activities: | ||
Capital expenditures | (1,130) | (1,046) |
Net cash used in investing activities | (1,130) | (1,046) |
Cash flows from financing activities: | ||
Proceeds from (Repayments of) Lines of Credit | 48,500 | 8,500 |
Repayments of Lines of Credit | (38,500) | (8,500) |
Repayments of Long-term Debt | 0 | (18,000) |
Other financing activities | 479 | 70 |
Net cash provided by (used in) financing activities | 10,479 | (17,930) |
Effect of exchange rate changes on cash | 190 | (331) |
Net increase (decrease) in cash and cash equivalents | 10,162 | (12,693) |
Cash and Cash Equivalents, beginning of period | 20,764 | 31,242 |
Cash and Cash Equivalents, end of period | 30,926 | 18,549 |
Supplemental disclosure of cash flow information: | ||
Interest | 288 | 628 |
Income taxes | $ 443 | $ 500 |
Significant Accounting Policies
Significant Accounting Policies | 6 Months Ended |
Jun. 30, 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 has 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 has 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 has 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 June 30, 2016 and for the three and six months ended June 30, 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 changes in presentation have been made to conform prior presentations to the current year’s presentation in the condensed consolidated statement of cash flows within cash flows from operating activities. In the current period, the Company combined charges to adverse purchase commitments (Note 8 - Commitments and Contingencies ) and the inventory valuation allowance. This resulted in reclassifications of $0.4 million and $1.0 million for the three and six months ended June 30, 2015 within cash flows from operating activities. Note 4 - Inventories and Deferred Cost of Sales includes a summary of charges associated with the valuation of inventory and the adverse purchase commitment liability. 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 | 6 Months Ended |
Jun. 30, 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 June 30, 2016 Total Level 1 Level 2 Level 3 Foreign currency forward contracts $ (59 ) — $ (59 ) — 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 | 6 Months Ended |
Jun. 30, 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): June 30, December 31, Accounts receivable, gross $ 43,100 $ 61,045 Less: allowance for doubtful accounts (95 ) (103 ) Accounts receivable, net $ 43,005 $ 60,942 As of June 30, 2016 and December 31, 2015 , the balance in other receivables was $4.3 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 | 6 Months Ended |
Jun. 30, 2016 | |
Inventory Disclosure [Abstract] | |
Inventory Disclosure | Inventories and Deferred Cost of Sales Inventories consisted of the following (in thousands): June 30, December 31, Raw materials $ 20,496 $ 14,546 Work-in-process 39 98 Finished goods 9,315 7,485 29,850 22,129 Less: inventory valuation allowance (6,549 ) (5,317 ) Inventories, net $ 23,301 $ 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 $12.8 million and $11.5 million at June 30, 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 consigned inventory at its contract manufacturing partner was $10.6 million and $8.7 million as of June 30, 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 liabilities (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Inventory, net $ 2,237 $ 312 $ 2,503 $ 272 Adverse purchase commitments (A) (1,393) 431 (1,114) 1,007 Net charges $ 844 $ 743 $ 1,389 $ 1,279 |
Restructuring and Other Charges
Restructuring and Other Charges | 6 Months Ended |
Jun. 30, 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 Six Months Ended June 30, June 30, 2016 2015 2016 2015 Employee-related restructuring expenses $ 118 $ (268 ) $ 800 $ 3,765 Integration-related and other non-recurring expenses 147 435 147 428 Facility reductions — 392 — 392 Non-recurring legal expenses — — — 109 Restructuring and other charges, net $ 265 $ 559 $ 947 $ 4,694 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, 2016 , the Company recorded the following restructuring charges: • $0.1 million net expense relating to the severance for 2 employees; and • $0.1 million integration-related net expense principally associated with asset disposals and subsidiary liquidations resulting from resource and site consolidation actions. For the three months ended June 30, 2015 , the Company recorded the following restructuring and other charges: • $0.3 million net reversal of accrued severance expense for 9 of the 131 employees whose positions were initially identified as being eliminated by management. Upon further implementation of the restructuring plan, these positions were either maintained, or the employees found alternative roles, which resulted in no severance being paid. These actions were in connection with the restructuring of our Embedded Products and Hardware Services segment's research and development and sales and general administrative functions and are presented net of reductions resulting from changes in previously estimated amounts for employee severance and associated payroll costs; • $0.4 million integration-related net expense principally associated with asset disposals and personnel overlap resulting from resource and site consolidation actions; and • $0.4 million lease abandonment expense associated with the reductions in certain of our international sites. For the six months ended June 30, 2016 , the Company recorded the following restructuring charges: • $0.8 million net expense relating to the severance for 23 employees primarily in connection with a reduction to the Company's hardware engineering presence in Shenzhen; and • $0.1 million integration-related net expense principally associated with asset disposals and personnel overlap resulting from resource and site consolidation actions. For the six months ended June 30, 2015 , the Company recorded the following restructuring and other charges: • $3.8 million net expense relating to the severance of 122 employees primarily within Asia and North America. These actions were in connection with the restructuring of the Company's Embedded Products and Hardware Services segment's research and development and sales and general administrative functions and are presented net of reductions resulting from changes in previously estimated amounts for employee severance and associated payroll costs; • $0.4 million integration-related net expense principally associated with asset disposals and personnel overlap resulting from resource and site consolidation actions; • $0.4 million lease abandonment expense associated with the reductions in certain of our international sites; 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 June 30, 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 800 — 800 Reversals — — — Expenditures (819 ) (433 ) (1,252 ) Balance accrued as of June 30, 2016 $ 63 $ 149 $ 212 Of the $0.2 million accrued restructuring at June 30, 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 | 6 Months Ended |
Jun. 30, 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 June 30, 2016 and December 31, 2015 , the Company had an outstanding balance of $25.0 million and $15.0 million under the Amended Agreement. At June 30, 2016 , the Company had $3.2 million of total borrowing availability remaining under the Amended Agreement. At June 30, 2016 , the Company was in compliance with all covenants under the Amended Agreement. |
Convertible Debt
Convertible Debt | 6 Months Ended |
Jun. 30, 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 | 6 Months Ended |
Jun. 30, 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 $1.1 million and $2.2 million as of June 30, 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 June 30, 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): Six Months Ended June 30, 2016 2015 Warranty liability balance, beginning of the period $ 2,553 $ 2,600 Product warranty accruals 754 1,120 Utilization of accrual (1,146 ) (1,140 ) Warranty liability balance, end of the period $ 2,161 $ 2,580 At June 30, 2016 and December 31, 2015 , $1.7 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 | 6 Months Ended |
Jun. 30, 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 Six Months Ended June 30, June 30, 2016 2015 2016 2015 Numerator Net loss $ (591 ) $ (4,119 ) $ (3,556 ) $ (11,172 ) Denominator — Basic Weighted average shares used to calculate net loss per share, basic 37,143 36,741 37,075 36,695 Denominator — Diluted Weighted average shares used to calculate net loss per share, basic 37,143 36,741 37,075 36,695 Effect of dilutive restricted stock units (A) — — — — Effect of dilutive stock options (A) — — — — Weighted average shares used to calculate net loss per share, diluted 37,143 36,741 37,075 36,695 Net loss per share Basic $ (0.02 ) $ (0.11 ) $ (0.10 ) $ (0.30 ) Diluted $ (0.02 ) $ (0.11 ) $ (0.10 ) $ (0.30 ) (A) For the three and six months ended June 30, 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 Six Months Ended June 30, June 30, 2016 2015 2016 2015 Stock options 3,958 2,839 3,958 2,839 Restricted stock units 183 241 183 241 Performance based restricted stock units (B) 2,470 1,450 2,470 1,450 Total equity award shares excluded 6,611 4,530 6,611 4,530 (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 may be earned. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure | Income Taxes The Company's effective tax rate for the three months ended June 30, 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 June 30, 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 June 30, 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 $3.4 million at June 30, 2016 . The related interest and penalties were $0.6 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 and 2007. 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, 2016 . The Company is currently under tax examination in Canada. The periods covered under examination in Canada are the Company's financial years 2013 and 2014. No examination adjustments have been proposed. As of June 30, 2016 , the Company is not under examination by tax authorities in any other jurisdictions. |
Stock-based Compensation
Stock-based Compensation | 6 Months Ended |
Jun. 30, 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 Six Months Ended June 30, June 30, 2016 2015 2016 2015 Stock options 275 — 1,311 555 Restricted stock units 97 160 97 165 Performance based restricted stock awards (A) 165 — 845 1,450 Total 537 160 2,253 2,170 (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 on meeting targets of strategic revenue during fiscal year 2017, 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 respective 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 upon certification of achievement by the Compensation Committee that 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 upon certification of achievement by the Compensation Committee that 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. On July 22, 2016 the Compensation Committee certified the achievement of both market condition stock price hurdles as of the performance measurement date of June 30, 2016. All remaining expense associated with these awards was fully recognized during the three month period ended June 30, 2016. Stock-based compensation was recognized and allocated as follows (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Cost of sales $ 131 $ 89 $ 177 $ 142 Research and development 285 257 438 389 Selling, general and administrative 776 794 1,265 1,268 Total $ 1,192 $ 1,140 $ 1,880 $ 1,799 |
Hedging
Hedging | 6 Months Ended |
Jun. 30, 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 June 30, 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 and six months ended June 30, 2016 and 2015 , the Company had no hedge ineffectiveness. During the three and six months ended June 30, 2016 the Company entered into 9 and 21 new foreign currency forward contracts, with total contractual values of $3.1 million and $6.6 million . During the three and six months ended June 30, 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 June 30, 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 $ 13,638 Other accrued liabilities $ — $ (59 ) 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 and six months ended June 30, 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 Six Months Ended June 30, June 30, 2016 2015 2016 2015 Cost of sales $ 75 $ 33 $ 183 $ 29 Research and development 122 55 295 49 Selling, general and administrative 47 (9 ) 114 (8 ) Total $ 244 $ 79 $ 592 $ 70 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, 2016 2015 2016 2015 Beginning balance of unrealized loss on forward exchange contracts $ (685 ) $ (634 ) $ (819 ) $ (752 ) Other comprehensive loss before reclassifications (162 ) (130 ) (376 ) (3 ) Amounts reclassified from other comprehensive income 244 79 592 70 Other comprehensive income (loss) 82 (51 ) 216 67 Ending balance of unrealized loss on forward exchange contracts $ (603 ) $ (685 ) $ (603 ) $ (685 ) Over the next twelve months, the Company expects to reclassify into earnings a loss of approximately $0.4 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 | 6 Months Ended |
Jun. 30, 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, each of which delivers software-centric solutions to network operators. • Embedded Products and Hardware Services. Embedded Products and Hardware Services includes the Company's DCEngine products which enables essential infrastructure enabling the transition of network operators to SDN and NFV environments and a variety of embedded products targeting applications in telecommunication networks, medical systems and aerospace and defense applications. 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 and six months ended June 30, 2016 and 2015 (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Revenue Software-Systems $ 14,601 $ 14,170 $ 28,660 $ 23,859 Embedded Products and Hardware Services 46,687 32,879 87,774 71,877 Total revenues $ 61,288 $ 47,049 $ 116,434 $ 95,736 Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Gross margin Software-Systems $ 9,172 $ 7,945 $ 17,960 $ 13,273 Embedded Products and Hardware Services 8,331 6,725 14,300 16,069 Corporate and other (2,058 ) (2,069 ) (4,031 ) (4,115 ) Total gross margin $ 15,445 $ 12,601 $ 28,229 $ 25,227 Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Income (loss) from operations Software-Systems $ 31 $ (967 ) $ 811 $ (3,869 ) Embedded Products and Hardware Services 3,681 2,373 5,008 6,330 Corporate and other (4,644 ) (4,939 ) (9,201 ) (12,987 ) Total loss from operations $ (932 ) $ (3,533 ) $ (3,382 ) $ (10,526 ) Assets are not allocated to segments for internal reporting purposes. 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 Six Months Ended June 30, June 30, 2016 2015 2016 2015 United States $ 44,275 $ 18,472 $ 82,040 $ 39,644 Other North America 39 242 117 287 China 2,335 8,862 5,665 20,555 India 1,781 5,186 3,750 5,935 Other Asia Pacific 2,345 7,577 4,664 12,320 Asia Pacific ("APAC") 6,461 21,625 14,079 38,810 Netherlands 7,838 2,825 15,073 7,187 Other EMEA 2,675 3,885 5,125 9,808 Europe, the Middle East and Africa (“EMEA”) 10,513 6,710 20,198 16,995 Foreign Countries 17,013 28,577 34,394 56,092 Total $ 61,288 $ 47,049 $ 116,434 $ 95,736 Long-lived assets by geographic area are as follows (in thousands): June 30, December 31, Property and equipment, net United States $ 2,747 $ 3,061 Other North America 205 257 China 777 1,231 Total APAC 777 1,231 India 1,323 1,584 Other EMEA — 1 Total EMEA 1,323 1,585 Foreign Countries 2,305 3,073 Total property and equipment, net $ 5,052 $ 6,134 Intangible assets, net United States $ 23,949 $ 30,322 Total intangible assets, net $ 23,949 $ 30,322 The following customers accounted for more than 10% of the Company's total revenues: Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Customer A 49.6 % N/A 46.2 % N/A Customer B 13.4 % N/A 13.8 % 10.0 % Customer C N/A 17.7 % N/A 22.1 % Customer D N/A 10.5 % N/A N/A Customer F N/A 10.5 % N/A N/A The following customers accounted for more than 10% of accounts receivable: June 30, 2016 December 31, 2015 Customer A 36.9 % 36.0 % Customer D 11.8 % 14.7 % Customer B 10.5 % N/A |
Significant Accounting Polici20
Significant Accounting Policies Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 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 June 30, 2016 and for the three and six months ended June 30, 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) | 6 Months Ended |
Jun. 30, 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 June 30, 2016 Total Level 1 Level 2 Level 3 Foreign currency forward contracts $ (59 ) — $ (59 ) — |
Accounts Receivable and Other22
Accounts Receivable and Other Receivables (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
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, Accounts receivable, gross $ 43,100 $ 61,045 Less: allowance for doubtful accounts (95 ) (103 ) Accounts receivable, net $ 43,005 $ 60,942 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current [Table Text Block] | Inventories consisted of the following (in thousands): June 30, December 31, Raw materials $ 20,496 $ 14,546 Work-in-process 39 98 Finished goods 9,315 7,485 29,850 22,129 Less: inventory valuation allowance (6,549 ) (5,317 ) Inventories, net $ 23,301 $ 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 liabilities (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Inventory, net $ 2,237 $ 312 $ 2,503 $ 272 Adverse purchase commitments (A) (1,393) 431 (1,114) 1,007 Net charges $ 844 $ 743 $ 1,389 $ 1,279 (A) When the Company takes possession of inventory reserved for under the adverse purchase liability (Note 8 — Commitments and Contingencies), the associated liability is transferred from other accrued liabilities to the excess and obsolete inventory valuation allowance. Deferred cost of sales, which are directly associated with deferred revenue on shipments to customers, was $0.0 million and $14.1 million at June 30, 2016 and December 31, 2015. |
Restructuring and Other Charg24
Restructuring and Other Charges (Tables) | 6 Months Ended |
Jun. 30, 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 Six Months Ended June 30, June 30, 2016 2015 2016 2015 Employee-related restructuring expenses $ 118 $ (268 ) $ 800 $ 3,765 Integration-related and other non-recurring expenses 147 435 147 428 Facility reductions — 392 — 392 Non-recurring legal expenses — — — 109 Restructuring and other charges, net $ 265 $ 559 $ 947 $ 4,694 |
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, 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 800 — 800 Reversals — — — Expenditures (819 ) (433 ) (1,252 ) Balance accrued as of June 30, 2016 $ 63 $ 149 $ 212 |
Convertible Debt (Tables)
Convertible Debt (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of Debt [Table Text Block] |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 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): Six Months Ended June 30, 2016 2015 Warranty liability balance, beginning of the period $ 2,553 $ 2,600 Product warranty accruals 754 1,120 Utilization of accrual (1,146 ) (1,140 ) Warranty liability balance, end of the period $ 2,161 $ 2,580 |
Basic and Diluted Net Income 27
Basic and Diluted Net Income (Loss) Per Share (Tables) | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Earnings Per Share [Abstract] | ||
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | (A) For the three and six months ended June 30, 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 Six Months Ended June 30, June 30, 2016 2015 2016 2015 Stock options 3,958 2,839 3,958 2,839 Restricted stock units 183 241 183 241 Performance based restricted stock units (B) 2,470 1,450 2,470 1,450 Total equity award shares excluded 6,611 4,530 6,611 4,530 (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 may 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 Six Months Ended June 30, June 30, 2016 2015 2016 2015 Numerator Net loss $ (591 ) $ (4,119 ) $ (3,556 ) $ (11,172 ) Denominator — Basic Weighted average shares used to calculate net loss per share, basic 37,143 36,741 37,075 36,695 Denominator — Diluted Weighted average shares used to calculate net loss per share, basic 37,143 36,741 37,075 36,695 Effect of dilutive restricted stock units (A) — — — — Effect of dilutive stock options (A) — — — — Weighted average shares used to calculate net loss per share, diluted 37,143 36,741 37,075 36,695 Net loss per share Basic $ (0.02 ) $ (0.11 ) $ (0.10 ) $ (0.30 ) Diluted $ (0.02 ) $ (0.11 ) $ (0.10 ) $ (0.30 ) |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 6 Months Ended |
Jun. 30, 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 Six Months Ended June 30, June 30, 2016 2015 2016 2015 Stock options 275 — 1,311 555 Restricted stock units 97 160 97 165 Performance based restricted stock awards (A) 165 — 845 1,450 Total 537 160 2,253 2,170 |
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, 2016 2015 2016 2015 Cost of sales $ 131 $ 89 $ 177 $ 142 Research and development 285 257 438 389 Selling, general and administrative 776 794 1,265 1,268 Total $ 1,192 $ 1,140 $ 1,880 $ 1,799 |
Hedging (Tables)
Hedging (Tables) | 6 Months Ended |
Jun. 30, 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 June 30, 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 $ 13,638 Other accrued liabilities $ — $ (59 ) |
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, 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 $ 13,638 Other accrued liabilities $ — $ (59 ) 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 and six months ended June 30, 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 Six Months Ended June 30, June 30, 2016 2015 2016 2015 Cost of sales $ 75 $ 33 $ 183 $ 29 Research and development 122 55 295 49 Selling, general and administrative 47 (9 ) 114 (8 ) Total $ 244 $ 79 $ 592 $ 70 |
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, 2016 2015 2016 2015 Beginning balance of unrealized loss on forward exchange contracts $ (685 ) $ (634 ) $ (819 ) $ (752 ) Other comprehensive loss before reclassifications (162 ) (130 ) (376 ) (3 ) Amounts reclassified from other comprehensive income 244 79 592 70 Other comprehensive income (loss) 82 (51 ) 216 67 Ending balance of unrealized loss on forward exchange contracts $ (603 ) $ (685 ) $ (603 ) $ (685 ) |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Segment Reporting [Abstract] | |
Revenue from External Customers by Products and Services [Table Text Block] | Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Revenue Software-Systems $ 14,601 $ 14,170 $ 28,660 $ 23,859 Embedded Products and Hardware Services 46,687 32,879 87,774 71,877 Total revenues $ 61,288 $ 47,049 $ 116,434 $ 95,736 Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Gross margin Software-Systems $ 9,172 $ 7,945 $ 17,960 $ 13,273 Embedded Products and Hardware Services 8,331 6,725 14,300 16,069 Corporate and other (2,058 ) (2,069 ) (4,031 ) (4,115 ) Total gross margin $ 15,445 $ 12,601 $ 28,229 $ 25,227 Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Income (loss) from operations Software-Systems $ 31 $ (967 ) $ 811 $ (3,869 ) Embedded Products and Hardware Services 3,681 2,373 5,008 6,330 Corporate and other (4,644 ) (4,939 ) (9,201 ) (12,987 ) Total loss from operations $ (932 ) $ (3,533 ) $ (3,382 ) $ (10,526 ) |
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, 2016 2015 2016 2015 United States $ 44,275 $ 18,472 $ 82,040 $ 39,644 Other North America 39 242 117 287 China 2,335 8,862 5,665 20,555 India 1,781 5,186 3,750 5,935 Other Asia Pacific 2,345 7,577 4,664 12,320 Asia Pacific ("APAC") 6,461 21,625 14,079 38,810 Netherlands 7,838 2,825 15,073 7,187 Other EMEA 2,675 3,885 5,125 9,808 Europe, the Middle East and Africa (“EMEA”) 10,513 6,710 20,198 16,995 Foreign Countries 17,013 28,577 34,394 56,092 Total $ 61,288 $ 47,049 $ 116,434 $ 95,736 Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 United States $ 44,275 $ 18,472 $ 82,040 $ 39,644 Other North America 39 242 117 287 China 2,335 8,862 5,665 20,555 India 1,781 5,186 3,750 5,935 Other Asia Pacific 2,345 7,577 4,664 12,320 Asia Pacific ("APAC") 6,461 21,625 14,079 38,810 Netherlands 7,838 2,825 15,073 7,187 Other EMEA 2,675 3,885 5,125 9,808 Europe, the Middle East and Africa (“EMEA”) 10,513 6,710 20,198 16,995 Foreign Countries 17,013 28,577 34,394 56,092 Total $ 61,288 $ 47,049 $ 116,434 $ 95,736 Long-lived assets by geographic area are as follows (in thousands): June 30, December 31, Property and equipment, net United States $ 2,747 $ 3,061 Other North America 205 257 China 777 1,231 Total APAC 777 1,231 India 1,323 1,584 Other EMEA — 1 Total EMEA 1,323 1,585 Foreign Countries 2,305 3,073 Total property and equipment, net $ 5,052 $ 6,134 Intangible assets, net United States $ 23,949 $ 30,322 Total intangible assets, net $ 23,949 $ 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 Six Months Ended June 30, June 30, 2016 2015 2016 2015 Customer A 49.6 % N/A 46.2 % N/A Customer B 13.4 % N/A 13.8 % 10.0 % Customer C N/A 17.7 % N/A 22.1 % Customer D N/A 10.5 % N/A N/A Customer F N/A 10.5 % 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, 2016 December 31, 2015 Customer A 36.9 % 36.0 % Customer D 11.8 % 14.7 % Customer B 10.5 % N/A |
Fair Value of Financial Instr31
Fair Value of Financial Instruments Fair Value Measurements (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands | Jun. 30, 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 | (59) | (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 | $ (59) | $ (277) |
Accounts Receivable and Other32
Accounts Receivable and Other Receivables (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Receivables [Abstract] | ||
Accounts Receivable, Gross | $ 43,100 | $ 61,045 |
Less: allowance for doubtful accounts | (95) | (103) |
Accounts Receivable, Net | 43,005 | 60,942 |
Other receivables | $ 4,284 | $ 11,304 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Inventory Disclosure [Abstract] | |||||
Inventory Charges, net (E&O and APC) | $ 2,237 | $ 312 | $ 2,503 | $ 272 | |
Deferred Costs of Sales, Current | 0 | 0 | $ 14,100 | ||
Inventory, Net [Abstract] | |||||
Raw materials | 20,496 | 20,496 | 14,546 | ||
Work-in-process | 39 | 39 | 98 | ||
Finished goods | 9,315 | 9,315 | 7,485 | ||
Inventory, Gross | 29,850 | 29,850 | 22,129 | ||
Less: inventory valuation allowance | (6,549) | (6,549) | (5,317) | ||
Inventories, net | 23,301 | 23,301 | 16,812 | ||
Other Inventory, Materials, Supplies and Merchandise under Consignment, Gross | 12,800 | $ 12,800 | 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 | 844 | 743 | $ 1,389 | 1,279 | |
Adverse Purchase Commitments | (1,393) | $ 431 | (1,114) | $ 1,007 | |
Inventory for Long-term Contracts or Programs, Gross | $ 10,600 | $ 10,600 | $ 8,700 |
Restructuring and Other Charg34
Restructuring and Other Charges (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | $ 118 | $ 800 | $ 3,765 | |
Business Combination, Integration Related Costs | 147 | $ 435 | 147 | 428 |
Severance Costs, net | 268 | |||
Restructuring and Business Combination Related Expenses, Facility Reductions | 0 | 392 | 0 | 392 |
Restructuring and Business Combination Related Expenses, Non-Recurring Legal Expenses | 0 | 0 | 0 | 109 |
Restructuring and acquisition-related charges, net | $ 265 | $ 559 | $ 947 | $ 4,694 |
Restructuring and Other Charg35
Restructuring and Other Charges - Restructuring Reserve Rollforward (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Restructuring Cost and Reserve [Line Items] | ||||
Severance Costs | $ 118 | $ 800 | $ 3,765 | |
Restructuring and Business Combination Related Expenses, Non-Recurring Legal Expenses | 0 | $ 0 | 0 | 109 |
Business Combination, Integration Related Costs | 147 | 435 | 147 | 428 |
Restructuring and Business Combination Related Expenses, Facility Reductions | 0 | $ 392 | 0 | $ 392 |
Balance accrued as of December 31, 2013 | 664 | |||
Restructuring Charges | 800 | |||
Restructuring Reserve, Accrual Adjustment | 0 | |||
Expenditures | (1,252) | |||
Balance accrued as of September 30, 2014 | 212 | 212 | ||
Restructuring Reserve, Noncurrent | 100 | 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 | 800 | |||
Restructuring Reserve, Accrual Adjustment | 0 | |||
Expenditures | (819) | |||
Balance accrued as of September 30, 2014 | 63 | 63 | ||
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 | (433) | |||
Balance accrued as of September 30, 2014 | $ 149 | $ 149 |
Short-Term Borrowings (Details)
Short-Term Borrowings (Details) - USD ($) | Feb. 08, 2016 | Feb. 29, 2016 | Jun. 30, 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 | $ 3,200,000 | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | 5,000,000 | |||||||
Line of Credit Facility, Amount Outstanding | $ 25,000,000 | $ 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 | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 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 | 754 | 1,120 | |
Utilization of accrual | (1,146) | (1,140) | |
Warranty liability balance, end of the period | 2,161 | $ 2,580 | |
Product Warranty Accrual, Current | 1,700 | $ 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 | Jun. 30, 2016 | Dec. 31, 2015 |
Commitments and Contingencies Disclosure - APC liability [Abstract] | ||
Purchase Commitment, Remaining Minimum Amount Committed | $ 1.1 | $ 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 | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||
Net income (loss) | $ (591) | $ (4,119) | $ (3,556) | $ (11,172) |
Weighted average shares used to calculate net income (loss) per share, basic | 37,143 | 36,741 | 37,075 | 36,695 |
Weighted average shares used to calculate net income (loss) per share, diluted | 37,143 | 36,741 | 37,075 | 36,695 |
Basic (in dollars per share) | $ (0.02) | $ (0.11) | $ (0.10) | $ (0.30) |
Diluted (in dollars per share) | $ (0.02) | $ (0.11) | $ (0.10) | $ (0.30) |
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 | 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 | 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 | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 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 | 183 | 241 | 183 | 241 |
Securities Excluded from Computation of Earnings Per Share, Performance Target Not Met, Amount | 2,470 | 1,450 | 2,470 | 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 | 6,611 | 4,530 | 6,611 | 4,530 |
Stock Options [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 3,958 | 2,839 | 3,958 | 2,839 |
Income Taxes (Details)
Income Taxes (Details) $ in Millions | Jun. 30, 2016USD ($) |
Income Tax Disclosure [Abstract] | |
Deferred Tax Assets, Net | $ 1.2 |
Unrecognized Tax Benefits | 3.4 |
Unrecognized Tax Benefits, Interest on Income Taxes Accrued | 0.6 |
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 | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock options, grants in period | 275 | 0 | 1,311 | 555 |
Total grants in period | 537 | 160 | 2,253 | 2,170 |
Restricted Stock Units (RSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Equity instruments other than options, grants in period | 97 | 160 | 97 | 165 |
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 | 165 | 0 | 845 | 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 | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Allocated Share-based Compensation Expense | $ 1,192 | $ 1,140 | $ 1,880 | $ 1,799 |
Cost of Sales [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Allocated Share-based Compensation Expense | 131 | 89 | 177 | 142 |
Research and Development Expense [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Allocated Share-based Compensation Expense | 285 | 257 | 438 | 389 |
Selling, General and Administrative Expenses [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Allocated Share-based Compensation Expense | $ 776 | $ 794 | $ 1,265 | $ 1,268 |
Hedging (Details)
Hedging (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2016USD ($)Derivatives | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($)Derivatives | Jun. 30, 2015USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Mar. 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 | 9 | 21 | ||||||
Derivative, New Instruments During Period, Notional Amount | $ 3,100 | $ 6,600 | ||||||
Foreign Currency Cash Flow Hedge Gain (Loss) Reclassified to Earnings, Net | 244 | $ 79 | 592 | $ 70 | ||||
Unrealized loss on hedge instruments | (603) | (685) | (603) | (685) | $ (685) | $ (819) | $ (634) | $ (752) |
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax | (162) | (130) | (376) | (3) | ||||
Cash Flow Hedge Gain (Loss) Reclassified to Earnings, Net | 244 | |||||||
Hedge Loss Recognized in Other Comprehensive Income (Loss) | 82 | (51) | 216 | 67 | ||||
Cost of Sales [Member] | ||||||||
Derivatives, Fair Value [Line Items] | ||||||||
Foreign Currency Cash Flow Hedge Gain (Loss) Reclassified to Earnings, Net | 75 | 33 | 183 | 29 | ||||
Research and Development Expense [Member] | ||||||||
Derivatives, Fair Value [Line Items] | ||||||||
Foreign Currency Cash Flow Hedge Gain (Loss) Reclassified to Earnings, Net | 122 | 55 | 295 | 49 | ||||
Selling, General and Administrative Expenses [Member] | ||||||||
Derivatives, Fair Value [Line Items] | ||||||||
Foreign Currency Cash Flow Hedge Gain (Loss) Reclassified to Earnings, Net | 47 | $ (9) | 114 | $ (8) | ||||
Other Current Assets [Member] | ||||||||
Derivatives, Fair Value [Line Items] | ||||||||
Cash Flow Hedge Derivative Instrument Assets at Fair Value | 0 | 0 | 0 | |||||
Other Accrued Liabilities [Member] | ||||||||
Derivatives, Fair Value [Line Items] | ||||||||
Cash Flow Hedge Derivative Instrument Liabilities at Fair Value | (59) | (59) | (277) | |||||
Foreign Exchange Forward [Member] | ||||||||
Derivatives, Fair Value [Line Items] | ||||||||
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | 400 | |||||||
Notional Amount of Foreign Currency Cash Flow Hedge Derivatives | $ 13,638 | $ 13,638 | $ 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 | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Revenue from External Customer [Line Items] | ||||
Revenues | $ 61,288 | $ 47,049 | $ 116,434 | $ 95,736 |
Europe, the Middle East and Africa [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | $ 10,513 | $ 6,710 | $ 20,198 | $ 16,995 |
Segment Information - Geographi
Segment Information - Geographical Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenues | $ 61,288 | $ 47,049 | $ 116,434 | $ 95,736 | |
Property and equipment, net | 5,052 | 5,052 | $ 6,134 | ||
Total Intangible Assets, Net | 23,949 | 23,949 | 30,322 | ||
UNITED STATES | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenues | 44,275 | 18,472 | 82,040 | 39,644 | |
Property and equipment, net | 2,747 | 2,747 | 3,061 | ||
Total Intangible Assets, Net | 30,322 | ||||
Foreign Countries [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenues | 17,013 | 28,577 | 34,394 | 56,092 | |
Property and equipment, net | 2,305 | 2,305 | 3,073 | ||
Other North America | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenues | 39 | 242 | 117 | 287 | |
Property and equipment, net | 205 | 205 | 257 | ||
Asia Pacific [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenues | 6,461 | 21,625 | 14,079 | 38,810 | |
Property and equipment, net | 777 | 777 | 1,231 | ||
CHINA [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenues | 2,335 | 8,862 | 5,665 | 20,555 | |
Property and equipment, net | 777 | 777 | 1,231 | ||
India [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenues | 1,781 | 5,186 | 3,750 | 5,935 | |
INDIA | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Property and equipment, net | 1,323 | 1,323 | 1,584 | ||
Other Asia Pacific [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenues | 2,345 | 7,577 | 4,664 | 12,320 | |
Netherlands [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenues | 7,838 | 2,825 | 15,073 | 7,187 | |
Other EMEA [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenues | 2,675 | 3,885 | 5,125 | 9,808 | |
Property and equipment, net | 0 | 0 | 1 | ||
Europe, the Middle East and Africa [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenues | 10,513 | $ 6,710 | 20,198 | $ 16,995 | |
Property and equipment, net | $ 1,323 | $ 1,323 | $ 1,585 |
Segment Information - Revenue b
Segment Information - Revenue by Major Customer (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Customer A [Domain] | |||||
Revenue, Major Customer [Line Items] | |||||
Entity-Wide Revenue, Major Customer, Percentage | 49.60% | 46.20% | |||
Customer B [Domain] | |||||
Revenue, Major Customer [Line Items] | |||||
Entity-Wide Revenue, Major Customer, Percentage | 13.40% | 13.80% | 10.00% | ||
Nokia Siemens Networks [Member] | |||||
Revenue, Major Customer [Line Items] | |||||
Entity-Wide Revenue, Major Customer, Percentage | 22.10% | ||||
Customer D [Domain] [Domain] | |||||
Revenue, Major Customer [Line Items] | |||||
Entity-Wide Revenue, Major Customer, Percentage | 10.50% | ||||
Customer C [Domain] | |||||
Revenue, Major Customer [Line Items] | |||||
Entity-Wide Revenue, Major Customer, Percentage | 17.70% | ||||
Customer F [Domain] [Domain] | |||||
Revenue, Major Customer [Line Items] | |||||
Entity-Wide Revenue, Major Customer, Percentage | 10.50% | ||||
Accounts Receivable [Member] | Customer A [Domain] | |||||
Revenue, Major Customer [Line Items] | |||||
Entity-Wide Revenue, Major Customer, Percentage | 36.90% | 36.00% | |||
Accounts Receivable [Member] | Customer B [Domain] | |||||
Revenue, Major Customer [Line Items] | |||||
Entity-Wide Revenue, Major Customer, Percentage | 10.50% |
Segment Information - Accounts
Segment Information - Accounts Receivable (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Customer D [Domain] | Accounts Receivable [Member] | ||||
Concentration Risk [Line Items] | ||||
Entity-Wide Revenue, Major Customer, Percentage | 11.80% | 14.70% | ||
Customer B [Domain] | ||||
Concentration Risk [Line Items] | ||||
Entity-Wide Revenue, Major Customer, Percentage | 13.40% | 13.80% | 10.00% | |
Customer B [Domain] | Accounts Receivable [Member] | ||||
Concentration Risk [Line Items] | ||||
Entity-Wide Revenue, Major Customer, Percentage | 10.50% | |||
Customer A [Domain] | ||||
Concentration Risk [Line Items] | ||||
Entity-Wide Revenue, Major Customer, Percentage | 49.60% | 46.20% | ||
Customer A [Domain] | Accounts Receivable [Member] | ||||
Concentration Risk [Line Items] | ||||
Entity-Wide Revenue, Major Customer, Percentage | 36.90% | 36.00% |
Segment Information Operating S
Segment Information Operating Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Segment Reporting Information [Line Items] | ||||
Operating Income (Loss) | $ (932) | $ (3,533) | $ (3,382) | $ (10,526) |
Gross Profit | 15,445 | 12,601 | 28,229 | 25,227 |
Revenues | 61,288 | 47,049 | 116,434 | 95,736 |
Operating Segments [Member] | Software-Systems [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating Income (Loss) | 31 | (967) | 811 | (3,869) |
Gross Profit | 9,172 | 7,945 | 17,960 | 13,273 |
Revenues | 14,601 | 14,170 | 28,660 | 23,859 |
Operating Segments [Member] | Embedded Products and Hardware Services [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating Income (Loss) | 3,681 | 2,373 | 5,008 | 6,330 |
Gross Profit | 8,331 | 6,725 | 14,300 | 16,069 |
Revenues | 46,687 | 32,879 | 87,774 | 71,877 |
Corporate, Non-Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating Income (Loss) | (4,644) | (4,939) | (9,201) | (12,987) |
Gross Profit | $ (2,058) | $ (2,069) | $ (4,031) | $ (4,115) |
Uncategorized Items - rsys-2016
Label | Element | Value |
Translation Adjustment Functional to Reporting Currency, Loss (Gain), Reclassified to Earnings, Net of Tax | us-gaap_TranslationAdjustmentFunctionalToReportingCurrencyLossGainOnReclassifiedOfEarningsNetOfTax | $ 400,000 |