Radisys (RSYS) 10-Q 8 Nov 17 2017 Q3 Quarterly report Financial data

DEI Document

DEI Document - shares	9 Months Ended
	Sep. 30, 2017	Nov. 03, 2017	Dec. 31, 2016
DEI [Abstract]
Common Stock, Shares, Issued	39,149,000		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	Sep. 30, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q3
Amendment Flag	false
Entity Common Stock, Shares Outstanding		39,148,753
Common Stock, Shares, Outstanding	39,149,000		37,026,000

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Revenues	$ 28,773	$ 55,397	$ 101,476	$ 171,831
Cost of Goods Sold, Product	20,361	33,997	60,450	107,937
Revenue, Product	20,641	46,175	75,680	145,122
Revenue, Service	8,132	9,222	25,796	26,709
Cost of sales:
Cost of Goods Sold, Service	5,291	5,228	15,821	15,639
Amortization of purchased technology	1,926	1,926	5,780	5,780
Total cost of sales	27,578	41,151	82,051	129,356
Gross margin	1,195	14,246	19,425	42,475
Research and development	5,639	6,093	18,113	18,044
Selling, general and administrative	7,849	8,321	25,445	24,514
Intangible asset amortization	289	1,260	2,809	3,780
Restructuring and acquisition-related charges, net	1,344	655	2,814	1,602
Income (loss) from operations	(13,926)	(2,083)	(29,756)	(5,465)
Interest expense	(431)	(116)	(927)	(392)
Other income (expense), net	(116)	255	(543)	1,463
Income (loss) before income tax expense (benefit)	(14,473)	(1,944)	(31,226)	(4,394)
Income tax expense (benefit)	938	694	1,747	1,800
Net income (loss)	$ (15,411)	$ (2,638)	$ (32,973)	$ (6,194)
Net income (loss) per share:
Basic (in dollars per share)	$ (0.39)	$ (0.07)	$ (0.85)	$ (0.17)
Diluted (in dollars per share)	$ (0.39)	$ (0.07)	$ (0.85)	$ (0.17)
Weighted average shares outstanding:
Basic (in shares)	39,087	38,056	38,922	37,402
Diluted (in shares)	39,087	38,056	38,922	37,402

Condensed Consolidated Stateme3

Condensed Consolidated Statement of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Net income (loss)	$ (15,411)	$ (2,638)	$ (32,973)	$ (6,194)
Other comprehensive income (loss):
Translation adjustments	299	78	1,309	(277)
Net adjustment for fair value of hedge derivatives (A)	(242)	249	189	465
Other comprehensive income (loss)	57	327	1,498	188
Comprehensive income (loss)	$ (15,354)	$ (2,311)	$ (31,475)	$ (6,006)

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 12,682	$ 33,087
Accounts receivable, net	33,854	38,378
Other receivables	4,268	4,161
Inventories, net	11,055	20,021
Other current assets	2,079	2,990
Total current assets	63,938	98,637
Property and equipment, net	7,131	6,713
Intangible assets, net	8,986	17,575
Long-term deferred tax assets, net	944	1,117
Other assets	1,928	4,143
Total assets	82,927	128,185
Current liabilities:
Accounts payable	20,565	20,805
Accrued wages and bonuses	3,327	6,572
Deferred Revenue	5,556	5,715
Line of Credit Facility, Amount Outstanding	15,000	25,000
Other accrued liabilities	7,830	7,571
Total current liabilities	52,278	65,663
Long-term liabilities:
Other long-term liabilities	5,481	5,966
Total long-term liabilities	5,481	5,966
Total liabilities	57,759	71,629
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	341,780	339,715
Accumulated deficit	(316,551)	(281,600)
Accumulated other comprehensive income:
Cumulative translation adjustments	277	(1,032)
Unrealized loss on hedge instruments	(338)	(527)
Total accumulated other comprehensive income	(61)	(1,559)
Total shareholders’ equity	25,168	56,556
Total liabilities and shareholders' equity	$ 82,927	$ 128,185

Condensed Consolidated Balance5

Condensed Consolidated Balance Sheets Condensed Consolidated Balance Sheets Parenthetical - $ / shares shares in Thousands	Mar. 31, 2017	Dec. 31, 2016
Balance Sheet Parenthetical [Abstract]
Common Stock, Par Value	$ 0	$ 0
Common Stock, Shares Authorized	100,000	100,000
Common Stock, Shares, Issued		37,026
Common Stock, Shares, Outstanding		37,026

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Cash flows from operating activities:
Net income (loss)	$ (32,973)	$ (6,194)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	12,396	12,775
Inventory valuation allowance and adverse purch commitment charges	7,900	2,670
Deferred income taxes	527	(11)
Stock-based compensation expense	1,816	2,867
Loss (gain) on the liquidation of foreign subsidiaries	313	(421)
Other	216	163
Changes in operating assets and liabilities
Accounts receivable	4,530	4,357
Other receivables	(44)	7,663
Increase (Decrease) in Inventory and Deferred Cost of Sales	(2,732)	(7,760)
Accounts payable	(26)	(11,265)
Accrued restructuring	(529)	(380)
Accrued wages and other	(3,115)	(2,313)
Increase (Decrease) in Deferred Revenue	(1,157)	(14,738)
Other Accrued Liabilities	831	(293)
Net cash provided by operating activities	(6,583)	2,640
Cash flows from investing activities:
Capital expenditures	(4,544)	(3,420)
Net cash used in investing activities	(4,544)	(3,420)
Cash flows from financing activities:
Proceeds from (Repayments of) Lines of Credit	84,000	74,500
Repayments of Lines of Credit	(94,000)	(64,500)
Net settlement of restricted shares	(204)	(3,259)
Other financing activities	499	538
Net cash provided by (used in) financing activities	(9,705)	7,279
Effect of exchange rate changes on cash	427	216
Net increase (decrease) in cash and cash equivalents	(20,405)	6,715
Cash and Cash Equivalents, beginning of period	33,087	20,764
Cash and Cash Equivalents, end of period	12,682
Supplemental disclosure of cash flow information:
Interest	731	410
Income taxes	$ 928	$ 864

Significant Accounting Policies

Significant Accounting Policies	9 Months Ended
	Sep. 30, 2017
Accounting Policies [Abstract]
Significant Accounting Policies	In October 2016, the Financial Accounting Standards Board (the "FASB") issued Accounting standards Update No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory (''ASU 2016-16''). ASU 2016-16 modifies how intra-entity transfer of assets other than inventory are accounted for and presented in the financial statements. ASU 2016-16 is effective for public companies for annual reporting periods beginning after December 15, 2017. The Company adopted this ASU in the first quarter of 2017. The Company recognized a tax charge of $2.0 million related to intra-entity transactions other than inventory which could not be previously recognized. The unrecognized tax charge is reflected as an adjustment to retained earnings. In March 2016, the FASB issued Accounting Standards Update No. 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Shared-Based Payment Accounting (''ASU 2016-09''). ASU 2016-09 simplifies how several aspects of share-based payments are accounted for and presented in the financial statements. ASU 2016-09 is effective for public companies for annual reporting periods beginning after December 15, 2016. The Company adopted this ASU in the first quarter of 2017. Upon adoption, the Company no longer uses a forfeiture rate in the calculation of stock based compensation expense. The impact of this election did not result in a significant charge to retained earnings from applying an estimated forfeiture rate in previous periods. The balance of the unrecognized excess tax benefits was reversed with the impact recorded to retained earnings and included changes to the valuation allowance as a result of the adoption. The Company has excess tax benefits for which a benefit could not be previously recognized of $4.5 million . Due to the full valuation allowance on the U.S. deferred tax assets, there was no impact to the financial statements beyond disclosure as a result of this adoption. 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. The new standard permits adoption either by using (i) a full retrospective approach for all periods presented in the period of adoption or (ii) a modified retrospective approach with the cumulative effect of initially applying the new standard recognized at the date of initial application and providing certain additional disclosures. The Company will adopt the new standard effective January 1, 2018. The Company plans to adopt using the modified retrospective approach. The Company's evaluation of the impact of the new standard on the Company's accounting policies, processes, and system requirements is ongoing. While the Company continues to assess all potential impacts under the new standard, the Company does not believe there will be significant changes to the timing of recognition of hardware sales, software license sales or service contracts. As part of the Company's preliminary evaluation, the Company also considered the impact of the guidance in ASC 340-40, " Other Assets and Deferred Costs; Contracts with Customers ". This guidance requires the capitalization of all incremental costs that we incur to obtain a contract with a customer that the Company would not have incurred if the contract had not been obtained, provided the Company expects to recover the costs. The Company preliminarily believes that there will not be significant changes to the timing of the recognition of sales commissions since the Company's commission plan is earned based on the recognition of revenue; however, there is a potential that the amortization period for commission costs may be longer than the contract term in some cases, as the new cost guidance requires entities to determine whether the costs relate to specific anticipated contracts as well. While the Company continues to assess the potential impacts of the new standard, including the areas described above, the Company cannot reasonably estimate quantitative information related to the impact of the new standard on its financial statements at this time. Immaterial Revision to Prior Period Financial Statement The Company has revised the presentation of revenue and cost of sales to separately present those amounts that are associated with service and related activities from those amounts associated with product sales. This change does not impact the Company’s previously reported total revenues, gross margin, loss from operations or net loss for the periods presented.

Fair Value of Financial Instrum

Fair Value of Financial Instruments	9 Months Ended
	Sep. 30, 2017
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 September 30, 2017 Total Level 1 Level 2 Level 3 Foreign currency forward contracts $ 301 — $ 301 — Fair Value Measurements as of December 31, 2016 Total Level 1 Level 2 Level 3 Foreign currency forward contracts $ 94 — $ 94 —

Accounts Receivable and Other R

Accounts Receivable and Other Receivables	9 Months Ended
	Sep. 30, 2017
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): September 30, December 31, Accounts receivable, gross $ 33,902 $ 38,433 Less: allowance for doubtful accounts (48 ) (55 ) Accounts receivable, net $ 33,854 $ 38,378 As of September 30, 2017 and December 31, 2016 , the balance in other receivables was $4.3 million and $4.2 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	9 Months Ended
	Sep. 30, 2017
Inventory Disclosure [Abstract]
Inventory Disclosure	Inventories Inventories consisted of the following (in thousands): September 30, December 31, Raw materials $ 21,125 $ 24,805 Work-in-process — 12 Finished goods 4,589 5,005 25,714 29,822 Less: inventory valuation allowance (14,659 ) (9,801 ) Inventories, net $ 11,055 $ 20,021 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 gross inventory, consisting of raw materials and finished goods was $11.3 million and $11.8 million at September 30, 2017 and December 31, 2016 . 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 was contractually obligated to purchase inventory transferred from the Company's prior contract manufacturer after it aged for 365 days. All transferred inventory not consumed was repurchased by the Company in 2016. 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. All of the Company's consigned inventory was held by its contract manufacturing partner as of September 30, 2017 and December 31, 2016 . The Company records a liability for adverse purchase commitments of inventory owned by its contract manufacturing partner. See Note 7 - 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 Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Inventory, net $ 5,763 $ 1,570 $ 6,249 $ 4,073 Adverse purchase commitments (A) 1,278 (289) 1,651 (1,403) Net charges (B) $ 7,041 $ 1,281 $ 7,900 $ 2,670

Restructuring and Other Charges

Restructuring and Other Charges	9 Months Ended
	Sep. 30, 2017
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 Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Employee-related restructuring expenses $ 1,061 $ 655 $ 2,318 $ 1,456 Integration-related and other non-recurring expenses 226 — 439 146 Facility reductions 57 — 57 — Restructuring and other charges, net $ 1,344 $ 655 $ 2,814 $ 1,602 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 September 30, 2017 , the Company recorded the following restructuring charges: • $1.1 million net expense relating to the severance for 57 employees primarily in Asia and North America in connection with a reduction in legacy Hardware Solutions engineering and support staff as well as rationalization across various other functional organizations to better align with the Company's go-forward strategy. An additional $1.0 million of expense will be recognized over a portion of the notified employees’ respective service terms that span up to the next three quarters; • $0.2 million in non-recurring legal expenses; and • $0.1 million in facility reductions. For the three months ended September 30, 2016 , the Company recorded the following restructuring and other charges: • $0.7 million net expense relating to the severance for 9 employees whose positions were primarily in North America due to the transition of the Company's supply chain operations to third party integration partners. For the nine months ended September 30, 2017 , the Company recorded the following restructuring charges: • $2.3 million net expense relating to the severance for 87 employees primarily in Asia and North America in connection with a reduction in legacy Hardware Solutions engineering and support staff as well as rationalization across various other functional organizations to better align with the Company's go-forward strategy; • $0.4 million in non-recurring legal expenses associated with closing a strategic agreement with a MediaEngine channel partner; and • $0.1 million in facility reductions. For the nine months ended September 30, 2016 , the Company recorded the following restructuring and other charges: • $1.5 million net expense relating to the severance for 32 employees primarily in connection with a reduction to the Company's hardware engineering presence in Shenzhen as well as reductions in North America due to the transition of the Company's supply chain operations to third party integration partners; and • $0.1 million integration-related net expense principally associated with asset disposals and personnel overlap resulting from resource and site consolidation actions. Accrued restructuring, which is included in other accrued liabilities in the accompanying Condensed Consolidated Balance Sheets as of September 30, 2017 and December 31, 2016 , consisted of the following (in thousands): Severance, payroll taxes and other employee benefits Facility reductions Total Balance accrued as of December 31, 2016 $ 1,347 $ 90 $ 1,437 Additions 2,484 57 2,541 Reversals (166 ) — (166 ) Expenditures (2,757 ) (147 ) (2,904 ) Balance accrued as of September 30, 2017 $ 908 $ — $ 908 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	9 Months Ended
	Sep. 30, 2017
Short-term Debt [Abstract]
Short-term Debt	Short-Term Borrowings Silicon Valley Bank On September 19, 2016, the Company entered into a Credit Agreement (as amended, the “Credit Agreement”) with Silicon Valley Bank (“SVB”), as administrative agent, and the other lenders party thereto. The Credit Agreement replaces the Company’s Third Amended and Restated Loan and Security Agreement with SVB, dated March 14, 2014. On September 5, 2017, the Company entered into the Third Amendment to the Credit Agreement. The following takes into account the terms per the agreement as amended on September 5, 2017. The Credit Agreement provides for a revolving loan commitment of $30.0 million and has a stated maturity date of September 19, 2019. The Credit Agreement includes a $10.0 million sub-limit for swingline loans and a $5.0 million sub-limit for letters of credit. The Credit Agreement also includes an accordion feature that allows the Company, at any time, to increase the aggregate revolving loan commitments by up to an additional $25.0 million, subject to the satisfaction of certain conditions, including obtaining the lenders’ agreement to participate in the increase. Borrowings under the Credit Agreement are subject to a borrowing base, which is a formula based upon certain eligible accounts receivable plus a non-formula amount if the Company meets certain liquidity requirements. The principal amount of revolving loans and letters of credit outstanding at any time cannot exceed the lesser of (i) the revolving commitments in effect at such time, and (ii) the sum of the Borrowing Base (as defined in the Credit Agreement) and $2.5 million . Eligible accounts receivable include 85% of certain U.S. accounts receivable and 75% of certain foreign accounts receivable ( 85% in certain cases). Outstanding borrowings under the revolving loan commitment bear interest at a per annum rate based upon the Company's Availability (as defined in the Credit Agreement), which means the quotient of the amount available for borrowings under the Credit Agreement divided by the lesser of the total commitment and the borrowing base, calculated as a daily average over the immediately preceding fiscal month. The Credit Agreement provides that the per annum interest rate commencing on June 30, 2017 when the Consolidated Adjusted EBITDA (as defined in the Credit Agreement) as measured on a trailing twelve-month basis for the immediately preceding fiscal quarter period is less than $8.0 million will be as follows: • When Availability is 70% or more, the interest rate is the prime rate (as published in Wall Street Journal) plus 0.75% ; • When Availability is 30% or more and less than 70% , the interest rate is the prime rate plus 1.00% ; and • When Availability is below 30% , the interest rate is the prime rate plus 1.25% . Commencing on June 30, 2017, if Consolidated Adjusted EBITDA as measured on a trailing twelve-month basis for the immediately preceding fiscal quarter period is equal to or greater than $8.0 million , the rate per annum will be as follows: • When Availability is 70% or more, the interest rate is the prime rate plus 0.25% ; • When Availability is 30% or more and less than 70% , the interest rate is the prime rate plus 0.50% ; and • When Availability is below 30% , the interest rate is the prime rate plus 0.75% . In addition, commencing on September 5, 2017, the applicable per annum interest rate on the revolving loans outstanding under the Credit Agreement will be increased by 0.50% until the earlier of either (i) Consolidated Adjusted EBITDA (as defined in the Credit Agreement) for two consecutive quarters is greater than or equal to $0 or (ii) the Company raises $15.0 million or more in capital from a source other than the Company or its subsidiaries. Under the Credit Agreement, the Company is required to make interest payments monthly. The Company is further required to pay $25,000 in annual administrative fees, $82,500 in annual commitment fees and a commitment fee based on the average unused portion of the revolving credit commitment, and certain other fees in connection with letters of credit. The commitment fee is determined as follows and is payable quarterly in arrears: • When Availability is 70% or more, the commitment fee is 0.35% of the average unused portion of the revolving credit commitment; • When Availability is 30% or more and less than 70% , the commitment fee is 0.325% of the average unused portion of the revolving credit commitment; and • When Availability is below 30% , the commitment fee is 0.3% of the average unused portion of the revolving credit commitment. The Company paid a total of $0.4 million loan origination (and loan modification) fees which were capitalized and will be expensed over the term of the Credit Agreement. The Credit Agreement requires that the Company comply with financial covenants requiring the Company to maintain a minimum monthly Liquidity Ratio (as defined in the Credit Agreement), measured as of the last day of the applicable month, as follows: Month Ended Minimum Liquidity Ratio 8/31/17 through 12/31/17 1.50:1.00 1/31/18 and 2/28/18 1.35:1.00 3/31/2018 1.50:1.00 4/30/18 and 5/31/18 1.35:1.00 6/30/18 and Thereafter 1.50:1.00 Additionally, the Credit Agreement requires the Company to maintain a minimum trailing twelve months Consolidated Adjusted EBITDA in the third and fourth quarter of fiscal year 2017 and each quarter of fiscal year 2018 as follows: Quarter Ending Minimum Consolidated Adjusted EBITDA 9/30/17 ($4,500,000) 12/31/17 ($5,500,000) 3/31/18 ($5,000,000) 6/30/18 ($5,000,000) 9/30/18 $0 12/31/18 $2,000,000 The Credit Agreement also provides limits for the add-back of certain restructuring costs on a trailing twelve month basis in the calculation of Consolidated Adjusted EBITDA as follows: 12 Month Period Ended Restructuring Costs 9/30/17 $10,786,000 (inclusive of the quarter ending 9/30/17 non-cash inventory write down) 12/31/17 $10,471,000 3/31/18 $12,235,000 6/30/18 $11,000,000 9/30/18 $3,000,000 12/31/18 $2,000,000 The Credit Agreement also provides that following fiscal year 2017, SVB, as administrative agent, and the required lenders under the Credit Agreement will re-set the required minimum Consolidated Adjusted EBITDA levels for the periods tested in fiscal year 2019. All obligations under the Credit Agreement are unconditionally guaranteed by the Company's wholly owned subsidiary, Radisys International LLC. The obligations under the Credit Agreement are secured by a first priority lien on the assets of the Company and the subsidiary guarantor. If the Company acquires or forms a material U.S. subsidiary, then that subsidiary will also be required to guarantee the obligations under the Credit Agreement and grant a first priority lien on its assets. As of September 30, 2017 and December 31, 2016 , the Company had an outstanding balance of $15.0 million and $25.0 million under the Credit Agreement. At September 30, 2017, the Company's gross borrowing availability was $19.4 million and the Company was in compliance with all covenants under the Credit Agreement.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2017
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 $2.0 million and $0.3 million as of September 30, 2017 and December 31, 2016 . 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 September 30, 2017 . 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): Nine Months Ended September 30, 2017 2016 Warranty liability balance, beginning of the period $ 1,821 $ 2,553 Product warranty accruals 346 985 Utilization of accrual (850 ) (1,489 ) Warranty liability balance, end of the period $ 1,317 $ 2,049 At September 30, 2017 and December 31, 2016 , $1.0 million and $1.5 million of the warranty liability balance was included in other accrued liabilities and $0.3 million and $0.4 million was included in other long-term liabilities in the accompanying Condensed Consolidated Balance Sheets. Liquidity Outlook At September 30, 2017 , the Company's cash and cash equivalents amounte d to $12.7 million . The Company believes current cash and cash equivalents, cash expected to be generated from operations, available borrowings under the Silicon Valley Bank line of credit and availability under the $100.0 million unallocated shelf registration statement will satisfy the short and long-term expected working capital needs, capital expenditures, acquisitions, stock repurchases, and other liquidity requirements associated with present business operations. The Company believes current working capital, plus availability under the SVB line of credit, provides sufficient liquidity to operate the business at normal levels; however, to accelerate growth objectives, the Company may, among other available options, raise additional capital in the public or private markets or pursue alternative financing arrangements. If the Company becomes unable to comply with various covenants under the SVB line of credit due to expected declines in orders and shipments predominantly associated with DCEngine products and the timing of orders from large high-margin Software-Systems customers, without an amendment or waiver, the liquidity outlook could be adversely impacted. The Company continues to pursue a number of actions to improve cash position including (i) minimizing capital expenditures, (ii) effectively managing working capital, (iii) seeking amendments or waivers from lenders and (iv) improving cash flows from operations. These efforts continue in earnest and the Company is considering all available strategic alternatives and financing possibilities, including, without limitation, the incurrence of additional secured indebtedness and the exchange or refinancing of existing obligations.

Basic and Diluted Net Income (L

Basic and Diluted Net Income (Loss) Per Share	9 Months Ended
	Sep. 30, 2017
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 Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Numerator Net loss $ (15,411 ) $ (2,638 ) $ (32,973 ) $ (6,194 ) Denominator — Basic Weighted average shares used to calculate net loss per share, basic 39,087 38,056 38,922 37,402 Denominator — Diluted Weighted average shares used to calculate net loss per share, basic 39,087 38,056 38,922 37,402 Effect of dilutive restricted stock units (A) — — — — Effect of dilutive stock options (A) — — — — Weighted average shares used to calculate net loss per share, diluted 39,087 38,056 38,922 37,402 Net loss per share Basic $ (0.39 ) $ (0.07 ) $ (0.85 ) $ (0.17 ) Diluted $ (0.39 ) $ (0.07 ) $ (0.85 ) $ (0.17 ) (A) For the three and nine months ended September 30, 2017 and 2016 , the following equity awards, by type, were excluded from the calculation, as their effect would have been anti-dilutive (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Stock options 3,527 3,951 3,527 3,951 Restricted stock units 639 130 639 130 Performance-based restricted stock units (B) 999 851 999 851 Total equity award shares excluded 5,165 4,932 5,165 4,932 (B) Performance-based restricted stock units are presented based on attainment of 100% of the performance goals being met.

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2017
Income Tax Disclosure [Abstract]
Income Tax Disclosure	Income Taxes The Company's effective tax rate for the three months ended September 30, 2017 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 September 30, 2017 . 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 $1.0 million and $1.1 million at September 30, 2017 and December 31, 2016 . 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 for uncertain tax positions was approximately $3.7 million at September 30, 2017 . The related interest and penalties were $0.9 million and $0.2 million . The uncertain tax positions, including interest and penalties, that are reasonably possible to decrease in the next twelve months are approximately $0.2 million . The Company is currently under tax examination in India. The periods covered under examination are the Company's financial years 2005, 2006, 2008 and 2011. The examinations are 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 September 30, 2017 . The Company is currently under tax examination in Canada. The periods covered under examination in Canada are the Company's financial years 2013, 2014, 2015 and 2016. No examination adjustments have been proposed. As of September 30, 2017 , the Company is not under examination by tax authorities in any other jurisdictions.

Stock-based Compensation

Stock-based Compensation	9 Months Ended
	Sep. 30, 2017
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 Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Stock options 30 148 30 1,459 Restricted stock units 20 — 677 97 Performance-based restricted stock awards (A) 20 55 690 900 Total 70 203 1,397 2,456 (A) On March 10, 2017, the Compensation Committee approved grants of performance-based restricted stock units ("PRSUs") to certain employees. The awards will vest only on satisfaction of certain performance criteria during two separate annual performance periods and a portion of the award earned will vest upon satisfaction of a time-based service component. 50% of the awards can be earned by meeting strategic revenue targets in fiscal year 2017 and 50% can be earned by meeting strategic revenue targets in fiscal year 2018. One-half of any PRSUs earned during each performance period will vest upon meeting the performance criteria, and the remaining half will be subject to a further time-based service component and will vest one year after meeting the targets. By meeting the relevant performance criteria set forth in the award agreement, employees can earn 0% , 75% , 100% or 125% of the award during each performance period. If an employee earns less than 100% of the award for the 2017 performance period, the employee is eligible to earn the remaining portion of the award in fiscal year 2018 if cumulative 2017 and 2018 strategic revenue targets are met in the two year period. Shares are presented based on attainment of 100% of the performance goals being met. At attainment of 125% , the amount of shares eligible to be earned is 837,500 . On March 28, 2016, the Compensation Committee approved grants of 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. The awards associated with strategic revenue targets in 2016 were earned and settled in shares in the three month period ended March 31, 2017. For the period ended September 30, 2017, management assessed it was no longer probable that the 2016 and 2017 PRSU award targets would be achieved. This resulted in a reversal of $0.4 million of stock compensation expense recorded in the first quarter of 2017 and thus, no expense associated with these awards was recognized in the nine months ended September 30, 2017. Stock-based compensation was recognized and allocated as follows (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Cost of sales $ (3 ) $ 124 $ 134 $ 301 Research and development 22 238 365 676 Selling, general and administrative 105 625 1,317 1,890 Total $ 124 $ 987 $ 1,816 $ 2,867

Hedging

Hedging	9 Months Ended
	Sep. 30, 2017
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 September 30, 2017 and December 31, 2016 , 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 nine months ended September 30, 2017 and 2016 , the Company had no hedge ineffectiveness. During the three and nine months ended September 30, 2017 the Company entered into 6 and 18 new foreign currency forward contracts, with total contractual values of $3.6 million and $10.5 million . During the three and nine months ended September 30, 2016 , the Company entered into 9 and 30 new foreign currency contracts, with total contractual values of $3.2 million and $9.8 million . A summary of the aggregate contractual or notional amounts, balance sheet location and estimated fair values of derivative financial instruments designated as cash flow hedges at September 30, 2017 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 $ 16,346 Other current assets $ 301 $ — 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, 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 $ 16,166 Other current assets $ 94 $ — 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 Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Cost of sales $ (48 ) $ 39 $ (98 ) $ 222 Research and development (67 ) 60 (137 ) 355 Selling, general and administrative (22 ) 23 (45 ) 137 Total $ (137 ) $ 122 $ (280 ) $ 714 The following is a summary of changes to comprehensive income (loss) associated with the Company's hedging activities (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Beginning balance of unrealized loss on forward exchange contracts $ (96 ) $ (603 ) $ (527 ) $ (819 ) Other comprehensive income (loss) before reclassifications (105 ) 127 469 (249 ) Amounts reclassified from other comprehensive income (loss) (137 ) 122 (280 ) 714 Other comprehensive income (loss) (242 ) 249 189 465 Ending balance of unrealized loss on forward exchange contracts $ (338 ) $ (354 ) $ (338 ) $ (354 ) Over the next twelve months, the Company expects to reclassify into earnings a loss of approximately $1.0 million currently recorded as accumulated other comprehensive income, as a result of the maturity of currently held forward exchange contracts. The bank counterparties in these contracts expose the Company to credit-related losses in the event of their nonperformance. However, to mitigate that risk, the Company only contracts with counterparties who meet its minimum requirements regarding counterparty credit worthiness. In addition, the Company monitors credit ratings, credit spreads and potential downgrades prior to entering into any new hedging contracts.

Segment Information

Segment Information	9 Months Ended
	Sep. 30, 2017
Segment Reporting [Abstract]
Segment Reporting Disclosure	Segment Information The Company is comprised of two operating segments: Software-Systems and Hardware Solutions. 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 MobilityEngine, each of which delivers software-centric solutions to service providers. • Hardware Solutions. Hardware Solutions includes the Company's DCEngine products and legacy embedded product portfolio which includes hardware solutions targeted for service providers. Cost of sales, research and development and selling, general and administrative expenses are allocated to Software-Systems and Hardware Solutions. Expenses, reversals, gains and losses not allocated to Software-Systems or Hardware Solutions 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 nine months ended September 30, 2017 and 2016 (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Revenue Software-Systems $ 11,306 $ 10,441 $ 32,943 $ 39,101 Hardware Solutions 17,467 44,956 68,533 132,730 Total revenues $ 28,773 $ 55,397 $ 101,476 $ 171,831 Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Gross margin Software-Systems $ 5,420 $ 6,226 $ 17,128 $ 24,186 Hardware Solutions (2,302 ) 10,070 8,211 24,370 Corporate and other (1,923 ) (2,050 ) (5,914 ) (6,081 ) Total gross margin $ 1,195 $ 14,246 $ 19,425 $ 42,475 Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Income (loss) from operations Software-Systems $ (2,358 ) $ (2,201 ) $ (7,574 ) $ (1,390 ) Hardware Solutions (7,885 ) 4,946 (8,963 ) 9,954 Corporate and other (3,683 ) (4,828 ) (13,219 ) (14,029 ) Total loss from operations $ (13,926 ) $ (2,083 ) $ (29,756 ) $ (5,465 ) 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 Nine Months Ended September 30, September 30, 2017 2016 2017 2016 United States $ 11,223 $ 34,497 $ 49,151 $ 116,537 Other North America 269 44 703 161 Asia Pacific ("APAC") 5,703 7,946 17,819 22,025 Netherlands 7,849 8,197 21,450 23,270 Other EMEA 3,729 4,713 12,353 9,838 Europe, the Middle East and Africa (“EMEA”) 11,578 12,910 33,803 33,108 Foreign Countries 17,550 20,900 52,325 55,294 Total $ 28,773 $ 55,397 $ 101,476 $ 171,831 Long-lived assets by geographic area are as follows (in thousands): September 30, December 31, Property and equipment, net United States $ 5,020 $ 4,566 Other North America 55 129 China 354 438 India 1,702 1,580 Total APAC 2,056 2,018 Foreign Countries 2,111 2,147 Total property and equipment, net $ 7,131 $ 6,713 Intangible assets, net United States $ 8,986 $ 17,575 Total intangible assets, net $ 8,986 $ 17,575 The following customers accounted for more than 10% of the Company's total revenues: Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Customer B 30.3 % 15.5 % 23.1 % 14.4 % Customer A N/A 33.7 % 25.5 % 42.1 % Customer C 17.7 % N/A 12.8 % N/A The following customers accounted for more than 10% of accounts receivable: September 30, 2017 December 31, 2016 Customer B 22.4 % 15.4 % Customer D 21.7 % 32.6 % Customer C 10.2 % N/A Customer A N/A 10.4 %

Significant Accounting Polici19

Significant Accounting Policies Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2017
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 September 30, 2017 and for the three and nine months ended September 30, 2017 and 2016 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 Instr20

Fair Value of Financial Instruments (Tables)	9 Months Ended
	Sep. 30, 2017
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, 2016 Total Level 1 Level 2 Level 3 Foreign currency forward contracts $ 94 — $ 94 — The following table summarizes the fair value measurements for the Company's financial instruments (in thousands): Fair Value Measurements as of September 30, 2017 Total Level 1 Level 2 Level 3 Foreign currency forward contracts $ 301 — $ 301 —

Accounts Receivable and Other21

Accounts Receivable and Other Receivables (Tables)	9 Months Ended
	Sep. 30, 2017
Receivables [Abstract]
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block]	Accounts receivable balances consisted of the following (in thousands): September 30, December 31, Accounts receivable, gross $ 33,902 $ 38,433 Less: allowance for doubtful accounts (48 ) (55 ) Accounts receivable, net $ 33,854 $ 38,378

Inventories (Tables)

Inventories (Tables)	9 Months Ended
	Sep. 30, 2017
Inventory Disclosure [Abstract]
Schedule of Inventory, Current [Table Text Block]	Inventories consisted of the following (in thousands): September 30, December 31, Raw materials $ 21,125 $ 24,805 Work-in-process — 12 Finished goods 4,589 5,005 25,714 29,822 Less: inventory valuation allowance (14,659 ) (9,801 ) Inventories, net $ 11,055 $ 20,021
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 Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Inventory, net $ 5,763 $ 1,570 $ 6,249 $ 4,073 Adverse purchase commitments (A) 1,278 (289) 1,651 (1,403) Net charges (B) $ 7,041 $ 1,281 $ 7,900 $ 2,670 (A) When the Company takes possession of inventory reserved for under the adverse purchase liability (Note 7 — Commitments and Contingencies), the associated liability is transferred from other accrued liabilities to the excess and obsolete inventory valuation allowance. (B) The increase for the three and nine months ended September 30, 2017 was the result of an inventory charge taken in the current period due to last-time buys from customers for legacy embedded product lines in conjunction with the Company's decision to change contract manufacturers in Asia.

Restructuring and Other Charg23

Restructuring and Other Charges (Tables)	9 Months Ended
	Sep. 30, 2017
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 Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Employee-related restructuring expenses $ 1,061 $ 655 $ 2,318 $ 1,456 Integration-related and other non-recurring expenses 226 — 439 146 Facility reductions 57 — 57 — Restructuring and other charges, net $ 1,344 $ 655 $ 2,814 $ 1,602
Schedule of Restructuring Reserve by Type of Cost [Table Text Block]	Accrued restructuring, which is included in other accrued liabilities in the accompanying Condensed Consolidated Balance Sheets as of September 30, 2017 and December 31, 2016 , consisted of the following (in thousands): Severance, payroll taxes and other employee benefits Facility reductions Total Balance accrued as of December 31, 2016 $ 1,347 $ 90 $ 1,437 Additions 2,484 57 2,541 Reversals (166 ) — (166 ) Expenditures (2,757 ) (147 ) (2,904 ) Balance accrued as of September 30, 2017 $ 908 $ — $ 908

Commitments and Contingencies (

Commitments and Contingencies (Tables)	9 Months Ended
	Sep. 30, 2017
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): Nine Months Ended September 30, 2017 2016 Warranty liability balance, beginning of the period $ 1,821 $ 2,553 Product warranty accruals 346 985 Utilization of accrual (850 ) (1,489 ) Warranty liability balance, end of the period $ 1,317 $ 2,049

Basic and Diluted Net Income 25

Basic and Diluted Net Income (Loss) Per Share (Tables)	9 Months Ended
	Sep. 30, 2017
Earnings Per Share [Abstract]
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block]	(A) For the three and nine months ended September 30, 2017 and 2016 , the following equity awards, by type, were excluded from the calculation, as their effect would have been anti-dilutive (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Stock options 3,527 3,951 3,527 3,951 Restricted stock units 639 130 639 130 Performance-based restricted stock units (B) 999 851 999 851 Total equity award shares excluded 5,165 4,932 5,165 4,932 (B) Performance-based restricted stock units are presented based on attainment of 100% of the performance goals being met.
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 Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Numerator Net loss $ (15,411 ) $ (2,638 ) $ (32,973 ) $ (6,194 ) Denominator — Basic Weighted average shares used to calculate net loss per share, basic 39,087 38,056 38,922 37,402 Denominator — Diluted Weighted average shares used to calculate net loss per share, basic 39,087 38,056 38,922 37,402 Effect of dilutive restricted stock units (A) — — — — Effect of dilutive stock options (A) — — — — Weighted average shares used to calculate net loss per share, diluted 39,087 38,056 38,922 37,402 Net loss per share Basic $ (0.39 ) $ (0.07 ) $ (0.85 ) $ (0.17 ) Diluted $ (0.39 ) $ (0.07 ) $ (0.85 ) $ (0.17 )

Stock-based Compensation (Table

Stock-based Compensation (Tables)	9 Months Ended
	Sep. 30, 2017
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 Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Stock options 30 148 30 1,459 Restricted stock units 20 — 677 97 Performance-based restricted stock awards (A) 20 55 690 900 Total 70 203 1,397 2,456 (A) On March 10, 2017, the Compensation Committee approved grants of performance-based restricted stock units ("PRSUs") to certain employees. The awards will vest only on satisfaction of certain performance criteria during two separate annual performance periods and a portion of the award earned will vest upon satisfaction of a time-based service component. 50% of the awards can be earned by meeting strategic revenue targets in fiscal year 2017 and 50% can be earned by meeting strategic revenue targets in fiscal year 2018. One-half of any PRSUs earned during each performance period will vest upon meeting the performance criteria, and the remaining half will be subject to a further time-based service component and will vest one year after meeting the targets. By meeting the relevant performance criteria set forth in the award agreement, employees can earn 0% , 75% , 100% or 125% of the award during each performance period. If an employee earns less than 100% of the award for the 2017 performance period, the employee is eligible to earn the remaining portion of the award in fiscal year 2018 if cumulative 2017 and 2018 strategic revenue targets are met in the two year period. Shares are presented based on attainment of 100% of the performance goals being met. At attainment of 125% , the amount of shares eligible to be earned is 837,500 .
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 Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Cost of sales $ (3 ) $ 124 $ 134 $ 301 Research and development 22 238 365 676 Selling, general and administrative 105 625 1,317 1,890 Total $ 124 $ 987 $ 1,816 $ 2,867

Hedging (Tables)

Hedging (Tables)	9 Months Ended
	Sep. 30, 2017
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, 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 $ 16,166 Other current assets $ 94 $ — 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 September 30, 2017 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 $ 16,346 Other current assets $ 301 $ —
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 September 30, 2017 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 $ 16,346 Other current assets $ 301 $ — 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, 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 $ 16,166 Other current assets $ 94 $ — 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 Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Cost of sales $ (48 ) $ 39 $ (98 ) $ 222 Research and development (67 ) 60 (137 ) 355 Selling, general and administrative (22 ) 23 (45 ) 137 Total $ (137 ) $ 122 $ (280 ) $ 714
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 Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Beginning balance of unrealized loss on forward exchange contracts $ (96 ) $ (603 ) $ (527 ) $ (819 ) Other comprehensive income (loss) before reclassifications (105 ) 127 469 (249 ) Amounts reclassified from other comprehensive income (loss) (137 ) 122 (280 ) 714 Other comprehensive income (loss) (242 ) 249 189 465 Ending balance of unrealized loss on forward exchange contracts $ (338 ) $ (354 ) $ (338 ) $ (354 )

Segment Information (Tables)

Segment Information (Tables)	9 Months Ended
	Sep. 30, 2017
Segment Reporting [Abstract]
Revenue from External Customers by Products and Services [Table Text Block]	Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Revenue Software-Systems $ 11,306 $ 10,441 $ 32,943 $ 39,101 Hardware Solutions 17,467 44,956 68,533 132,730 Total revenues $ 28,773 $ 55,397 $ 101,476 $ 171,831 Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Gross margin Software-Systems $ 5,420 $ 6,226 $ 17,128 $ 24,186 Hardware Solutions (2,302 ) 10,070 8,211 24,370 Corporate and other (1,923 ) (2,050 ) (5,914 ) (6,081 ) Total gross margin $ 1,195 $ 14,246 $ 19,425 $ 42,475 Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Income (loss) from operations Software-Systems $ (2,358 ) $ (2,201 ) $ (7,574 ) $ (1,390 ) Hardware Solutions (7,885 ) 4,946 (8,963 ) 9,954 Corporate and other (3,683 ) (4,828 ) (13,219 ) (14,029 ) Total loss from operations $ (13,926 ) $ (2,083 ) $ (29,756 ) $ (5,465 )
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block]	Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 United States $ 11,223 $ 34,497 $ 49,151 $ 116,537 Other North America 269 44 703 161 Asia Pacific ("APAC") 5,703 7,946 17,819 22,025 Netherlands 7,849 8,197 21,450 23,270 Other EMEA 3,729 4,713 12,353 9,838 Europe, the Middle East and Africa (“EMEA”) 11,578 12,910 33,803 33,108 Foreign Countries 17,550 20,900 52,325 55,294 Total $ 28,773 $ 55,397 $ 101,476 $ 171,831 Long-lived assets by geographic area are as follows (in thousands): September 30, December 31, Property and equipment, net United States $ 5,020 $ 4,566 Other North America 55 129 China 354 438 India 1,702 1,580 Total APAC 2,056 2,018 Foreign Countries 2,111 2,147 Total property and equipment, net $ 7,131 $ 6,713 Intangible assets, net United States $ 8,986 $ 17,575 Total intangible assets, net $ 8,986 $ 17,575 Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 United States $ 11,223 $ 34,497 $ 49,151 $ 116,537 Other North America 269 44 703 161 Asia Pacific ("APAC") 5,703 7,946 17,819 22,025 Netherlands 7,849 8,197 21,450 23,270 Other EMEA 3,729 4,713 12,353 9,838 Europe, the Middle East and Africa (“EMEA”) 11,578 12,910 33,803 33,108 Foreign Countries 17,550 20,900 52,325 55,294 Total $ 28,773 $ 55,397 $ 101,476 $ 171,831
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 Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Customer B 30.3 % 15.5 % 23.1 % 14.4 % Customer A N/A 33.7 % 25.5 % 42.1 % Customer C 17.7 % N/A 12.8 % N/A
Schedules of Concentration of Risk, by Risk Factor [Table Text Block]	The following customers accounted for more than 10% of accounts receivable: September 30, 2017 December 31, 2016 Customer B 22.4 % 15.4 % Customer D 21.7 % 32.6 % Customer C 10.2 % N/A Customer A N/A 10.4 %

Significant Accounting Polici29

Significant Accounting Policies Significant Accounting Policies (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Mar. 31, 2017	Sep. 30, 2017	Sep. 30, 2016
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Deferred Income Tax Expense (Benefit)		$ 527	$ (11)
Accounting Standards Update 2016-16 [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative Effect on Retained Earnings, Net of Tax		$ 2,000
Accounting Standards Update 2016-09 [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Deferred Income Tax Expense (Benefit)	$ 4,500

Fair Value of Financial Instr30

Fair Value of Financial Instruments Fair Value Measurements (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
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	$ 0
Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Foreign Currency Contract, Asset, Fair Value Disclosure	301	94
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	$ 0
Estimate of Fair Value, Fair Value Disclosure [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Foreign Currency Contract, Asset, Fair Value Disclosure	$ 301

Accounts Receivable and Other31

Accounts Receivable and Other Receivables (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Receivables [Abstract]
Accounts Receivable, Gross	$ 33,902	$ 38,433
Less: allowance for doubtful accounts	(48)	(55)
Accounts Receivable, Net	33,854	38,378
Other receivables	$ 4,268	$ 4,161

Inventories (Details)

Inventories (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Inventory Disclosure [Abstract]
Inventory Charges, net (E&O and APC)	$ 5,763	$ 1,570	$ 6,249	$ 4,073
Inventory, Net [Abstract]
Raw materials	21,125		21,125		$ 24,805
Work-in-process	0		0		12
Finished goods	4,589		4,589		5,005
Inventory, Gross	25,714		25,714		29,822
Less: inventory valuation allowance	(14,659)		(14,659)		(9,801)
Inventories, net	11,055		11,055		20,021
Other Inventory, Materials, Supplies and Merchandise under Consignment, Gross	11,300		$ 11,300		$ 11,800
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	7,041	1,281	$ 7,900	2,670
Adverse Purchase Commitments	$ 1,278	$ (289)	$ 1,651	$ (1,403)

Restructuring and Other Charg33

Restructuring and Other Charges (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	$ 1,061		$ 2,318	$ 1,456
Business Combination, Integration Related Costs	226	$ 0	439	146
Severance Costs, net		(655)
Restructuring and Business Combination Related Expenses, Facility Reductions	57	0	57
Restructuring and acquisition-related charges, net	1,344	$ 655	$ 2,814	$ 1,602
Other Expense [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	1,061
Additional severance costs not yet recognized	$ 1,000

Restructuring and Other Charg34

Restructuring and Other Charges - Restructuring Reserve Rollforward (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Restructuring Cost and Reserve [Line Items]
Severance Costs	$ 1,061		$ 2,318	$ 1,456
Business Combination, Integration Related Costs	226	$ 0	439	$ 146
Restructuring and Business Combination Related Expenses, Facility Reductions	57	$ 0	57
Balance accrued as of December 31, 2013			1,437
Restructuring Charges			2,541
Restructuring Reserve, Accrual Adjustment			(166)
Expenditures			(2,904)
Balance accrued as of September 30, 2014	908		908
Severance, Payroll Taxes and Other Employee Benefits [Member]
Restructuring Cost and Reserve [Line Items]
Balance accrued as of December 31, 2013			1,347
Restructuring Charges			2,484
Restructuring Reserve, Accrual Adjustment			(166)
Expenditures			(2,757)
Balance accrued as of September 30, 2014	908		908
Lease Abandonment Charges [Member]
Restructuring Cost and Reserve [Line Items]
Balance accrued as of December 31, 2013			90
Restructuring Charges			57
Restructuring Reserve, Accrual Adjustment			0
Expenditures			(147)
Balance accrued as of September 30, 2014	$ 0		$ 0

Short-Term Borrowings (Details)

Short-Term Borrowings (Details)	Sep. 05, 2017USD ($)	Sep. 19, 2016USD ($)	Sep. 30, 2017USD ($)	Dec. 31, 2018USD ($)	Sep. 30, 2018USD ($)	Jun. 30, 2018USD ($)	Mar. 31, 2018USD ($)	Dec. 31, 2017USD ($)	Jun. 30, 2017USD ($)	Dec. 31, 2016USD ($)
Line of Credit Facility [Line Items]
Borrowing formula, eligible accounts receivable			75.00%
Minimum trailing adjusted EBITDA			$ (1,500,000,000)						$ 0
Maximum add-back of restructuring costs in calculation of adjusted EBITDA			10,786,000,000
Outstanding balance			15,000,000							$ 25,000,000
Remaining borrowing capacity			19,400,000
Scenario, Forecast [Member]
Line of Credit Facility [Line Items]
Minimum trailing adjusted EBITDA				$ 2,000,000,000	$ 0	$ (5,000,000,000)		$ 3,000,000,000
Maximum add-back of restructuring costs in calculation of adjusted EBITDA				$ 2,000,000,000	$ 3,000,000,000	$ 11,000,000,000	$ 12,235,000,000	$ 10,471,000,000
Below Minimum Trailing Adjusted Earnings Before Interest, Taxes, Depreciation And Amortization [Member]
Line of Credit Facility [Line Items]
Minimum trailing adjusted EBITDA			8,000,000
Geographic Distribution, Foreign [Member] | Trade Accounts Receivable [Member] | Maximum [Member]
Line of Credit Facility [Line Items]
Borrowing formula, eligible accounts receivable		85.00%
Swingline Loan [Member] | 2016 Debt Agreement [Domain]
Line of Credit Facility [Line Items]
Current borrowing capacity		$ 10
Letter of Credit [Member] | 2016 Debt Agreement [Domain]
Line of Credit Facility [Line Items]
Current borrowing capacity		5
Line of Credit [Member] | 2016 Debt Agreement [Domain]
Line of Credit Facility [Line Items]
Current borrowing capacity		30
Maximum borrowing capacity		25
Borrowing base threshold			$ 2,500,000
Debt Instrument, Interest Rate, Increase (Decrease)	0.50%
Line Of Credit Facility, Debt Covenant, Interest Rate Increase, Minimum EBITDA In Two Consecutive Quarters	$ 0
Line Of Credit Facility, Debt Covenant, Interest Rate Increase, Minimum Capital Raised	$ 15,000,000
Annual administrative fee		25,000
Annual commitment fee		82,500
Loan origination fees		$ 400,000
Line of Credit [Member] | 2016 Debt Agreement [Domain] | Month Ended 12/31/2017 [Member]
Line of Credit Facility [Line Items]
Minimum liquidity ratio		1.50
Line of Credit [Member] | 2016 Debt Agreement [Domain] | Availability, 70 Percent Or More [Member]
Line of Credit Facility [Line Items]
Percentage of commitment fee on unused capacity		0.35%
Line of Credit [Member] | 2016 Debt Agreement [Domain] | Availability, 30 Percent Or More And Less Than 70 Percent [Member]
Line of Credit Facility [Line Items]
Percentage of commitment fee on unused capacity		0.325%
Line of Credit [Member] | 2016 Debt Agreement [Domain] | Availability, Below 30 Percent [Member]
Line of Credit Facility [Line Items]
Percentage of commitment fee on unused capacity		0.30%
Line of Credit [Member] | 2016 Debt Agreement [Domain] | Month Ended 1/31/2018 And 2/28/2017 [Member]
Line of Credit Facility [Line Items]
Minimum liquidity ratio		1.35
Line of Credit [Member] | 2016 Debt Agreement [Domain] | Month Ended 3/31/2018 [Member]
Line of Credit Facility [Line Items]
Minimum liquidity ratio		1.50
Line of Credit [Member] | 2016 Debt Agreement [Domain] | Month Ended 4/30/2018 And 5/31/2018 [Member]
Line of Credit Facility [Line Items]
Minimum liquidity ratio		1.35
Line of Credit [Member] | 2016 Debt Agreement [Domain] | Month Ended 6/30/2018 And Thereafter [Member]
Line of Credit Facility [Line Items]
Minimum liquidity ratio		1.50
Line of Credit [Member] | 2016 Debt Agreement [Domain] | Prime Rate [Member] | Availability, 70 Percent Or More [Member]
Line of Credit Facility [Line Items]
Basis spread on variable interest rate		0.75%	0.25%
Line of Credit [Member] | 2016 Debt Agreement [Domain] | Prime Rate [Member] | Availability, 30 Percent Or More And Less Than 70 Percent [Member]
Line of Credit Facility [Line Items]
Basis spread on variable interest rate		1.00%	0.50%
Line of Credit [Member] | 2016 Debt Agreement [Domain] | Prime Rate [Member] | Availability, Below 30 Percent [Member]
Line of Credit Facility [Line Items]
Basis spread on variable interest rate		1.25%	0.75%
Line of Credit [Member] | 2016 Debt Agreement [Domain] | Geographic Distribution, Domestic [Member] | Trade Accounts Receivable [Member]
Line of Credit Facility [Line Items]
Borrowing formula, eligible accounts receivable		85.00%

Commitments and Contingencies36

Commitments and Contingencies (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Movement in Standard Product Warranty Accrual [Roll Forward]
Warranty liability balance, beginning of the period	$ 1,821	$ 2,553
Product warranty accruals	346	985
Utilization of accrual	(850)	(1,489)
Warranty liability balance, end of the period	1,317	$ 2,049
Product Warranty Accrual, Current	1,000		$ 1,500
Product Warranty Accrual, Noncurrent	$ 300		$ 400
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, 2017	Dec. 31, 2016
Commitments and Contingencies Disclosure - APC liability [Abstract]
Purchase Commitment, Remaining Minimum Amount Committed	$ 2	$ 0.3

Commitments and Contingencies L

Commitments and Contingencies Liquidity Outlook (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016	Jun. 30, 2016	Dec. 31, 2015
Commitments and Contingencies Disclosure [Abstract]
Cash and Cash Equivalents, at Carrying Value	$ 12,682	$ 33,087	$ 27,479	$ 20,764

Basic and Diluted Net Income 39

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		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
Net income (loss)	$ (15,411)	$ (2,638)	$ (32,973)	$ (6,194)
Weighted average shares used to calculate net income (loss) per share, basic	39,087	38,056	38,922	37,402
Weighted average shares used to calculate net income (loss) per share, diluted	39,087	38,056	38,922	37,402
Basic (in dollars per share)	$ (0.39)	$ (0.07)	$ (0.85)	$ (0.17)
Diluted (in dollars per share)	$ (0.39)	$ (0.07)	$ (0.85)	$ (0.17)
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 40

Basic and Diluted Net Income (Loss) Per Share - Anti-Dilutive Securities (Details) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Restricted Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	639	130	639	130
Securities Excluded from Computation of Earnings Per Share, Performance Target Not Met, Amount	999	851	999	851
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	5,165	4,932	5,165	4,932
Stock Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	3,527	3,951	3,527	3,951

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016
Income Tax Disclosure [Abstract]
Deferred Tax Assets, Net	$ 1	$ 1.1
Unrecognized Tax Benefits	3.7
Unrecognized Tax Benefits, Interest on Income Taxes Accrued	0.9
Unrecognized Tax Benefits, Income Tax Penalties Accrued	0.2
Uncertain Tax Positions	$ 0.2

Stock-based Compensation - Equi

Stock-based Compensation - Equity Awards (Details)	Mar. 10, 2017performance_period	Sep. 30, 2017shares	Sep. 30, 2016shares	Sep. 30, 2017shares	Sep. 30, 2016shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of performance periods | performance_period	2
2007 Stock Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options, grants in period		30,000	148,000	30,000	1,459,000
Total grants in period		70,000	203,000	1,397,000	2,456,000
2007 Stock Plan [Member] | Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity instruments other than options, grants in period		20,000	0	677,000	97,000
2007 Stock Plan [Member] | Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage			50.00%	50.00%
Vesting period				1 year
Percentage of outstanding stock maximum				125.00%
Amount of shares eligible to be earned (in shares)		837,500		837,500
Equity instruments other than options, grants in period		20,000	55,000	690,000	900,000
Percent attainment of performance goals required				100.00%
2007 Stock Plan [Member] | Time-Based Service Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage				50.00%
Share-based Compensation Award, Tranche One [Member] | 2007 Stock Plan [Member] | Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of award employees can earn during performance period				0.00%
Share-based Compensation Award, Tranche Two [Member] | 2007 Stock Plan [Member] | Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of award employees can earn during performance period				75.00%
Share-based Compensation Award, Tranche Three [Member] | 2007 Stock Plan [Member] | Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of award employees can earn during performance period				100.00%
Share-Based Compensation Award, Tranche Four [Member] | 2007 Stock Plan [Member] | Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of award employees can earn during performance period				125.00%

Stock-based Compensation - Stoc

Stock-based Compensation - Stock Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended			9 Months Ended
	Sep. 30, 2017	Mar. 31, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Allocated Share-based Compensation Expense	$ 124		$ 987	$ 1,816	$ 2,867
Cost of Sales [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Allocated Share-based Compensation Expense	(3)		124	134	301
Research and Development Expense [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Allocated Share-based Compensation Expense	22		238	365	676
Selling, General and Administrative Expenses [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Allocated Share-based Compensation Expense	$ 105		$ 625	$ 1,317	$ 1,890
Performance Shares [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Allocated Share-based Compensation Expense		$ (400)

Hedging (Details)

Hedging (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017USD ($)Derivatives	Sep. 30, 2016USD ($)Derivatives	Sep. 30, 2017USD ($)Derivatives	Sep. 30, 2016USD ($)Derivatives	Mar. 31, 2017USD ($)	Dec. 31, 2016USD ($)	Jun. 30, 2016USD ($)	Mar. 31, 2016USD ($)	Dec. 31, 2015USD ($)
Derivatives, Fair Value [Line Items]
Maximum Length of Time Hedged in Cash Flow Hedge			2 years
Derivative, Number of New Instruments During Period | Derivatives	6	9	18	30
Derivative, New Instruments During Period, Notional Amount	$ 3,600	$ 3,200	$ 10,500	$ 9,800
Foreign Currency Cash Flow Hedge Gain (Loss) Reclassified to Earnings, Net	(137)	122	(280)	714
Unrealized loss on hedge instruments	(338)		(338)		$ (96)	$ (527)	$ (354)	$ (603)	$ (819)
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax	(105)	127	469	(249)
Cash Flow Hedge Gain (Loss) Reclassified to Earnings, Net	(137)
Hedge Loss Recognized in Other Comprehensive Income (Loss)	(242)	249	189	465
Cost of Sales [Member]
Derivatives, Fair Value [Line Items]
Foreign Currency Cash Flow Hedge Gain (Loss) Reclassified to Earnings, Net	(48)	39	(98)	222
Research and Development Expense [Member]
Derivatives, Fair Value [Line Items]
Foreign Currency Cash Flow Hedge Gain (Loss) Reclassified to Earnings, Net	(67)	60	(137)	355
Selling, General and Administrative Expenses [Member]
Derivatives, Fair Value [Line Items]
Foreign Currency Cash Flow Hedge Gain (Loss) Reclassified to Earnings, Net	(22)	$ 23	(45)	$ 137
Other Current Assets [Member]
Derivatives, Fair Value [Line Items]
Cash Flow Hedge Derivative Instrument Assets at Fair Value	301		301			94
Other Accrued Liabilities [Member]
Derivatives, Fair Value [Line Items]
Cash Flow Hedge Derivative Instrument Liabilities at Fair Value	0		0			0
Foreign Exchange Forward [Member]
Derivatives, Fair Value [Line Items]
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months			1,000
Notional Amount of Foreign Currency Cash Flow Hedge Derivatives	$ 16,346		$ 16,346			$ 16,166
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		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Revenue from External Customer [Line Items]
Revenues	$ 28,773	$ 55,397	$ 101,476	$ 171,831
Europe, the Middle East and Africa [Member]
Revenue from External Customer [Line Items]
Revenues	$ 11,578	$ 12,910	$ 33,803	$ 33,108

Segment Information - Geographi

Segment Information - Geographical Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	$ 28,773	$ 55,397	$ 101,476	$ 171,831
Property and equipment, net	7,131		7,131		$ 6,713
Total Intangible Assets, Net	8,986		8,986		17,575
UNITED STATES
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	11,223	34,497	49,151	116,537
Property and equipment, net	5,020		5,020		4,566
Total Intangible Assets, Net					17,575
Foreign Countries [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	17,550	20,900	52,325	55,294
Property and equipment, net	2,111		2,111		2,147
Other North America
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	269	44	703	161
Property and equipment, net	55		55		129
Asia Pacific [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	5,703	7,946	17,819	22,025
Property and equipment, net	2,056		2,056		2,018
CHINA [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Property and equipment, net	354		354		438
INDIA
Revenues from External Customers and Long-Lived Assets [Line Items]
Property and equipment, net	1,702		1,702		$ 1,580
Netherlands [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	7,849	8,197	21,450	23,270
Other EMEA [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	3,729	4,713	12,353	9,838
Europe, the Middle East and Africa [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	$ 11,578	$ 12,910	$ 33,803	$ 33,108

Segment Information - Revenue b

Segment Information - Revenue by Major Customer (Details)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Customer A [Domain]
Revenue, Major Customer [Line Items]
Entity-Wide Revenue, Major Customer, Percentage		33.70%	25.50%	42.10%
Customer B [Domain]
Revenue, Major Customer [Line Items]
Entity-Wide Revenue, Major Customer, Percentage	30.30%	15.50%	23.10%	14.40%
Customer C [Domain]
Revenue, Major Customer [Line Items]
Entity-Wide Revenue, Major Customer, Percentage	17.70%		12.80%
Accounts Receivable [Member] | Customer A [Domain]
Revenue, Major Customer [Line Items]
Entity-Wide Revenue, Major Customer, Percentage					10.40%
Accounts Receivable [Member] | Customer B [Domain]
Revenue, Major Customer [Line Items]
Entity-Wide Revenue, Major Customer, Percentage			22.40%		15.40%
Accounts Receivable [Member] | Customer C [Domain]
Revenue, Major Customer [Line Items]
Entity-Wide Revenue, Major Customer, Percentage			10.20%

Segment Information - Accounts

Segment Information - Accounts Receivable (Details)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Customer D [Domain] | Accounts Receivable [Member]
Concentration Risk [Line Items]
Entity-Wide Revenue, Major Customer, Percentage			21.70%		32.60%
Customer C [Domain]
Concentration Risk [Line Items]
Entity-Wide Revenue, Major Customer, Percentage	17.70%		12.80%
Customer C [Domain] | Accounts Receivable [Member]
Concentration Risk [Line Items]
Entity-Wide Revenue, Major Customer, Percentage			10.20%
Customer B [Domain]
Concentration Risk [Line Items]
Entity-Wide Revenue, Major Customer, Percentage	30.30%	15.50%	23.10%	14.40%
Customer B [Domain] | Accounts Receivable [Member]
Concentration Risk [Line Items]
Entity-Wide Revenue, Major Customer, Percentage			22.40%		15.40%
Customer A [Domain]
Concentration Risk [Line Items]
Entity-Wide Revenue, Major Customer, Percentage		33.70%	25.50%	42.10%
Customer A [Domain] | Accounts Receivable [Member]
Concentration Risk [Line Items]
Entity-Wide Revenue, Major Customer, Percentage					10.40%

Segment Information Operating S

Segment Information Operating Segment (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Segment Reporting Information [Line Items]
Operating Income (Loss)	$ (13,926)	$ (2,083)	$ (29,756)	$ (5,465)
Gross Profit	1,195	14,246	19,425	42,475
Revenues	28,773	55,397	101,476	171,831
Operating Segments [Member] | Software-Systems [Member]
Segment Reporting Information [Line Items]
Operating Income (Loss)	(2,358)	(2,201)	(7,574)	(1,390)
Gross Profit	5,420	6,226	17,128	24,186
Revenues	11,306	10,441	32,943	39,101
Operating Segments [Member] | Embedded Products and Hardware Services [Member]
Segment Reporting Information [Line Items]
Operating Income (Loss)	(7,885)	4,946	(8,963)	9,954
Gross Profit	(2,302)	10,070	8,211	24,370
Revenues	17,467	44,956	68,533	132,730
Corporate, Non-Segment [Member]
Segment Reporting Information [Line Items]
Operating Income (Loss)	(3,683)	(4,828)	(13,219)	(14,029)
Gross Profit	$ (1,923)	$ (2,050)	$ (5,914)	$ (6,081)