Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | |
In Millions, except Share data, unless otherwise specified | Dec. 28, 2013 | Feb. 12, 2014 |
Document Document And Entity Information [Abstract] | ' | ' |
Document Type | '10-K | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 28-Dec-13 | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'FY | ' |
Trading Symbol | 'PSMI | ' |
Entity Registrant Name | 'PEREGRINE SEMICONDUCTOR CORP | ' |
Entity Central Index Key | '0000880177 | ' |
Current Fiscal Year End Date | '--12-28 | ' |
Entity Well-known Seasoned Issuer | 'No | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Voluntary Filers | 'No | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 33,055,714 |
Entity Public Float | $290.70 | ' |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 28, 2013 | Dec. 29, 2012 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $16,249 | $44,106 |
Short-term marketable securities | 28,035 | 30,361 |
Accounts receivable, net | 16,905 | 13,353 |
Inventories | 53,489 | 57,017 |
Prepaids and other current assets | 4,085 | 11,108 |
Total current assets | 118,763 | 155,945 |
Property and equipment, net | 23,122 | 22,871 |
Long-term marketable securities | 18,888 | 18,892 |
Other assets | 102 | 210 |
Total assets | 160,875 | 197,918 |
Current liabilities: | ' | ' |
Accounts payable | 12,983 | 22,306 |
Accrued liabilities | 11,829 | 12,672 |
Accrued compensation | 4,542 | 5,726 |
Customer deposits | 916 | 24,425 |
Deferred revenue | 6,131 | 12,755 |
Current portion of obligations under capital leases | 0 | 11 |
Total current liabilities | 36,401 | 77,895 |
Obligations under capital leases, less current portion | 0 | 18 |
Other long-term liabilities | 943 | 886 |
Commitments and contingencies | ' | ' |
Stockholders' equity (deficit): | ' | ' |
Preferred stock, $.001 par value, 5,000 shares authorized at December 28, 2013 and December 29, 2012; no shares issued and outstanding at December 28, 2013 and December 29, 2012 | ' | ' |
Common stock, $.001 par value, 100,000 shares authorized at December 28, 2013 and December 29, 2012; 32,712 and 31,855 shares issued and outstanding at December 28, 2013 and December 29, 2012, respectively | 33 | 32 |
Additional paid-in capital | 348,684 | 340,221 |
Accumulated deficit | -224,986 | -220,935 |
Accumulated other comprehensive loss | -200 | -199 |
Total stockholders’ equity | 123,531 | 119,119 |
Total liabilities and stockholders’ equity | $160,875 | $197,918 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 28, 2013 | Dec. 29, 2012 |
Statement of Financial Position [Abstract] | ' | ' |
Preferred stock, par value | $0.00 | $0.00 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 32,712,000 | 31,855,000 |
Common stock, shares outstanding | 32,712,000 | 31,855,000 |
Consolidated_Statements_Of_Ope
Consolidated Statements Of Operations (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
Income Statement [Abstract] | ' | ' | ' |
Net revenue | $202,316 | $203,908 | $107,771 |
Cost of net revenue | 120,920 | 124,135 | 70,955 |
Gross profit | 81,396 | 79,773 | 36,816 |
Operating expense: | ' | ' | ' |
Research and development | 42,192 | 34,134 | 22,730 |
Selling, general and administrative | 43,142 | 36,971 | 23,252 |
Total operating expense | 85,334 | 71,105 | 45,982 |
Income (loss) from operations | -3,938 | 8,668 | -9,166 |
Interest expense, net | -130 | -1,354 | -311 |
Other income (expense), net | 84 | -130 | -9 |
Income (loss) before income taxes | -3,984 | 7,184 | -9,486 |
Provision (benefit) for income taxes | 67 | -88 | 196 |
Net income (loss) | -4,051 | 7,272 | -9,682 |
Net income allocable to preferred stockholders | 0 | -4,515 | 0 |
Net income (loss) attributable to common stockholders | ($4,051) | $2,757 | ($9,682) |
Net income (loss) per share attributable to common stockholders: | ' | ' | ' |
Basic, in dollars per share | ($0.13) | $0.19 | ($3.57) |
Diluted, in dollars per share | ($0.13) | $0.15 | ($3.57) |
Shares used to compute net income (loss) per share attributable to common stockholders: | ' | ' | ' |
Basic, in shares | 32,294 | 14,291 | 2,715 |
Diluted, in shares | 32,294 | 18,651 | 2,715 |
Consolidated_Statements_Of_Com
Consolidated Statements Of Comprehensive Income (Loss) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' |
Net income (loss) | ($4,051) | $7,272 | ($9,682) |
Foreign currency translation adjustments | -1 | 20 | -20 |
Unrealized gain on marketable securities | 0 | 5 | 0 |
Comprehensive income (loss) | ($4,052) | $7,297 | ($9,702) |
Consolidated_Statements_Of_Sto
Consolidated Statements Of Stockholders' Equity (Deficit) (USD $) | Total | Series A1 convertible preferred stock | Series B1 convertible preferred stock | Series C1 convertible preferred stock | Series D1 convertible preferred stock | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Income (Loss) |
In Thousands, unless otherwise specified | |||||||||
Beginning Balance at Dec. 25, 2010 | ($136,172) | $31,837 | $11,298 | $35,469 | $93,826 | $3 | $82,554 | ($218,525) | ($204) |
Beginning Balance (in shares) at Dec. 25, 2010 | ' | 5,763 | 1,629 | 6,108 | 8,865 | 2,674 | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercise of stock options, net of repurchase liability and including vesting of early exercises (in shares) | ' | ' | ' | ' | ' | 102 | ' | ' | ' |
Exercise of stock options, net of repurchase liability and including vesting of early exercises | 190 | ' | ' | ' | ' | 0 | 190 | ' | ' |
Stock-based compensation expense | 3,084 | ' | ' | ' | ' | ' | 3,084 | ' | ' |
Net income (loss) | -9,682 | ' | ' | ' | ' | ' | 0 | -9,682 | ' |
Other comprehensive income (loss) | -20 | ' | ' | ' | ' | ' | ' | ' | -20 |
Ending Balance at Dec. 31, 2011 | -142,600 | 31,837 | 11,298 | 35,469 | 93,826 | 3 | 85,828 | -228,207 | -224 |
Ending Balance (in shares) at Dec. 31, 2011 | ' | 5,763 | 1,629 | 6,108 | 8,865 | 2,776 | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercise of stock options, net of repurchase liability and including vesting of early exercises (in shares) | ' | ' | ' | ' | ' | 430 | ' | ' | ' |
Exercise of stock options, net of repurchase liability and including vesting of early exercises | 458 | ' | ' | ' | ' | 1 | 457 | ' | ' |
Stock-based compensation expense | 4,437 | ' | ' | ' | ' | ' | 4,437 | ' | ' |
Net settlement of Series D1 preferred stock warrants (in shares) | 47 | ' | ' | ' | ' | ' | ' | ' | ' |
Net settlement of Series C1 preferred stock warrants | 1,285 | ' | ' | ' | ' | ' | ' | ' | ' |
Conversion of preferred stock upon initial public offering (in shares) | ' | -5,763 | -1,629 | -6,108 | -8,912 | 22,412 | ' | ' | ' |
Conversion of preferred stock upon initial public offering | 173,737 | -31,837 | -11,298 | -35,469 | -95,111 | 22 | 173,715 | ' | ' |
Issuance of common stock upon initial public offering, net of offering costs and underwriter commission (in shares) | ' | ' | ' | ' | ' | 6,166 | ' | ' | ' |
Issuance of common stock upon initial public offering, net of offering costs and underwriter commission | 75,790 | ' | ' | ' | ' | 6 | 75,784 | ' | ' |
Net settlement of common stock warrants (in share) | ' | ' | ' | ' | ' | 71 | ' | ' | ' |
Net income (loss) | 7,272 | ' | ' | ' | ' | ' | ' | 7,272 | ' |
Other comprehensive income (loss) | 25 | ' | ' | ' | ' | ' | ' | ' | 25 |
Ending Balance at Dec. 29, 2012 | 119,119 | ' | ' | ' | ' | 32 | 340,221 | -220,935 | -199 |
Ending Balance (in shares) at Dec. 29, 2012 | ' | ' | ' | ' | ' | 31,855 | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercise of stock options, net of repurchase liability and including vesting of early exercises (in shares) | ' | ' | ' | ' | ' | 857 | ' | ' | ' |
Exercise of stock options, net of repurchase liability and including vesting of early exercises | 1,849 | ' | ' | ' | ' | 1 | 1,848 | ' | ' |
Stock-based compensation expense | 6,615 | ' | ' | ' | ' | ' | 6,615 | ' | ' |
Net income (loss) | -4,051 | ' | ' | ' | ' | ' | ' | -4,051 | ' |
Other comprehensive income (loss) | -1 | ' | ' | ' | ' | ' | ' | ' | -1 |
Ending Balance at Dec. 28, 2013 | $123,531 | ' | ' | ' | ' | $33 | $348,684 | ($224,986) | ($200) |
Ending Balance (in shares) at Dec. 28, 2013 | ' | ' | ' | ' | ' | 32,712 | ' | ' | ' |
Consolidated_Statements_Of_Cas
Consolidated Statements Of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
Statement of Cash Flows [Abstract] | ' | ' | ' |
Net income (loss) | ($4,051) | $7,272 | ($9,682) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ' | ' | ' |
Depreciation and amortization | 6,589 | 4,579 | 3,980 |
Loss on disposal of property and equipment | 46 | 31 | 8 |
Stock-based compensation | 6,615 | 4,437 | 3,084 |
Revaluation of warrants to fair value | 0 | 633 | -36 |
Imputed interest related to deposit arrangements, net | -313 | 420 | 0 |
Amortization of premium and discount on investments, net | 368 | 169 | 0 |
Cash received for lease incentive | 135 | 115 | 348 |
Changes in operating assets and liabilities: | ' | ' | ' |
Accounts receivable | -3,634 | -255 | -1,303 |
Inventories | 3,545 | -27,188 | -7,522 |
Prepaids and other current and noncurrent assets | 7,330 | -7,751 | -2,271 |
Accounts payable and accrued liabilities | -12,585 | 16,098 | 13,032 |
Customer deposits | -11,425 | 11,425 | 0 |
Deferred revenue | -6,217 | 6,865 | 265 |
Net cash provided by (used in) operating activities | -13,597 | 16,850 | -97 |
Investing activities | ' | ' | ' |
Purchases of property and equipment | -5,884 | -17,212 | -4,354 |
Proceeds from sale of equipment | 6 | 6 | 24 |
Purchases of marketable securities | -39,097 | -54,663 | 0 |
Sale and maturity of marketable securities | 41,027 | 5,100 | 0 |
Net cash used in investing activities | -3,948 | -66,769 | -4,330 |
Financing activities | ' | ' | ' |
Payments on obligations under capital leases | -37 | -661 | -681 |
Payments on notes payable | 0 | -1,618 | -820 |
Proceeds from line of credit | 0 | 3,000 | 4,500 |
Payments on line of credit | 0 | -10,749 | 0 |
Proceeds from exercise of stock options | 1,845 | 445 | 148 |
Proceeds from exercise of warrants | 0 | 31 | 0 |
Payments on customer deposit financing arrangement | -12,084 | 0 | 0 |
Proceeds from customer deposit financing arrangement | 0 | 13,000 | 0 |
Proceeds from initial public offering, net of underwriter commissions | 0 | 80,278 | 0 |
Costs paid in connection with initial public offering | 0 | -1,811 | -1,845 |
Net cash provided by (used in) financing activities | -10,276 | 81,915 | 1,302 |
Effect of exchange rate changes on cash and cash equivalents | -36 | -9 | 18 |
Net change in cash and cash equivalents | -27,857 | 31,987 | -3,107 |
Cash and cash equivalents at beginning of year | 44,106 | 12,119 | 15,226 |
Cash and cash equivalents at end of year | 16,249 | 44,106 | 12,119 |
Supplemental disclosure of cash flow information | ' | ' | ' |
Interest paid | 3 | 388 | 345 |
Income taxes paid | 149 | 119 | 82 |
Supplemental disclosure of non cash financing activities | ' | ' | ' |
Reclassification of restricted stock to equity upon vesting of early exercised options | 4 | 13 | 42 |
Loan and capital lease obligation for capital equipment and software | 0 | 0 | 207 |
Conversion of convertible preferred stock to common stock | $0 | $173,715 | $0 |
Organization_and_Summary_of_Si
Organization and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 28, 2013 | |
Accounting Policies [Abstract] | ' |
Organization and Summary of Significant Accounting Policies | ' |
Organization and Summary of Significant Accounting Policies | |
The Company | |
Peregrine Semiconductor Corporation (the Company) is a fabless provider of high performance radio frequency integrated circuits (RFICs). The Company’s solutions leverage its proprietary UltraCMOS technology which enables the design, manufacture, and integration of multiple RF, mixed signal, and digital functions on a single chip. The Company’s | |
solutions target a broad range of applications in the space and military, automotive, broadband, industrial, mobile device, test and measurement equipment, and wireless infrastructure markets. | |
Principles of Consolidation | |
The consolidated financial statements include the accounts of the Company and its subsidiaries. All significant intercompany transactions have been eliminated upon consolidation. | |
Accounting Periods | |
The Company uses a 52- or 53-week fiscal year ending on the last Saturday in December. Fiscal years 2013 and 2012 were 52-week years ending on December 28, 2013 and December 29, 2012, respectively. Fiscal year 2011 was a 53-week year ending on December 31, 2011. | |
Use of Estimates | |
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amount of assets and liabilities at the date of the financial statements as well as the reported amounts of net revenue and expense during the reporting period. The Company regularly evaluates estimates and assumptions related to areas such as revenue recognition, allowances for doubtful accounts, warranty obligations, inventory valuation, stock-based compensation expense, deferred income tax valuation allowances, litigation and other loss contingencies. These estimates and assumptions are based on current facts, historical experience and various other factors believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the recording of revenue, costs and expenses that are not readily apparent from other sources. Actual results may differ materially and adversely from these estimates. To the extent there are material differences between the estimates and actual results, the Company’s future results of operations will be affected. | |
Concentration of Credit Risk | |
Financial assets and liabilities, which potentially subject the Company to concentrations of credit risk, consist primarily of cash equivalents, marketable securities, and accounts receivable. The Company limits its exposure to credit loss by placing its cash in high credit quality financial investments. At times, such deposits may be in excess of insured limits. The Company has not experienced any significant losses on its investments. | |
Deferred Initial Public Offering Costs | |
Deferred IPO costs, consisting of direct legal, accounting, and other fees and costs, were capitalized and included in other assets on the Company’s consolidated balance sheet for the periods presented prior to August 2012. Upon closing of the Company’s IPO, the aggregate deferred offering costs of $4,494 were reclassified to stockholders’ equity. | |
Fair Value of Financial Instruments | |
The Company applies fair value accounting for all financial assets and liabilities that are recognized or disclosed at fair value in the financial statements on a recurring basis. The Company’s financial instruments consist principally of cash and cash equivalents and marketable securities. The fair value of a financial instrument is the amount that would be received in an asset sale or paid to transfer a liability in an orderly transaction between unaffiliated market participants. Assets and liabilities measured at fair value are categorized based on whether or not the inputs are observable in the market and the degree that the inputs are observable. The categorization of financial instruments within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The hierarchy is prioritized into three levels (with Level 3 being the lowest) defined as follows: | |
Level 1: Inputs are based on quoted market prices for identical assets or liabilities in active markets at the measurement date. | |
Level 2: Inputs include quoted prices for similar assets or liabilities in active markets and/or quoted prices for identical or similar assets or liabilities in markets that are not active near the measurement date. | |
Level 3: Inputs include management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. The inputs are unobservable in the market and significant to the instrument’s valuation. | |
The fair value of the Company’s cash equivalents was determined based on “Level 1” inputs. The fair value of marketable securities was determined based on “Level 2” inputs. The fair value of the Company’s “Level 2” instruments were valued based on the market approach technique which uses quoted market prices or model driven valuations using significant inputs derived from or corroborated by observable market data. The Company does not have any marketable securities in the “Level 3” category. The Company believes that the recorded values of all of the other financial assets and liabilities approximate their current fair values because of maturity and respective duration of these assets and liabilities. | |
Cash, Cash Equivalents and Marketable Securities | |
The Company considers all highly liquid investments that are readily convertible into cash and have a maturity of three months or less at the time of purchase to be cash equivalents. The cost of these investments approximates their fair value. The Company maintains an investment portfolio of various security holdings, types and maturities. The Company defines marketable securities as income yielding securities that can be readily converted into cash. Marketable securities’ short-term and long-term classifications are based on remaining maturities at each reporting period. The Company’s marketable securities include U.S. agency securities, certificates of deposit, commercial paper, and corporate notes and bonds. The Company places its cash investments in instruments that meet various parameters, including credit quality standards as specified in the Company’s investment policy. | |
The Company accounts for marketable securities as available-for-sale. Management determines the appropriate classification of such securities at the time of purchase and re-evaluates such classification as of each balance sheet date. Cash equivalents and marketable securities are reported at fair value with the related unrealized gains and losses included in accumulated other comprehensive income (loss), a component of shareholders’ equity, net of tax. The Company assesses whether its investments with unrealized loss positions are other than temporarily impaired. Unrealized gains and losses and declines in value judged to be other than temporary, if any, are determined based on the specific identification method and are reported in other income, net in the consolidated statements of operations. | |
Inventories | |
Inventories are stated at the lower of cost (first-in, first-out) or market. Inventory reserves or lower of cost or market allowances are established on a part specific basis for estimated obsolescence or unmarketable inventory equal to the difference between the cost of inventory and the estimated realizable value based upon assumptions about future demand and market conditions and reduce the carrying value of the related inventory. Such reductions establish a new cost basis for the specific parts. Shipping and handling costs are classified as a component of cost of net revenue in the consolidated statements of operations. | |
The Company continually assesses the recoverability of its inventory based on assumptions about demand and market conditions. Forecasted demand is determined based on historical sales and expected future sales. Determination of the market value may be complex, and therefore requires management to make assumptions and to apply judgment. In order for management to make the appropriate determination of market value, the following items are commonly considered: inventory turnover statistics, inventory quantities, unfilled customer order quantities, forecasted customer demand, competitive pricing, seasonality factors, consumer trends, and performance of similar products or accessories. Subsequent changes in facts or circumstances do not result in the reversal of previously recorded reserves. If actual market conditions are less favorable than those projected by management, additional inventory write-downs may be required that may adversely affect the Company’s operating results. If actual market conditions are more favorable, the Company may have higher gross profits when products are sold. | |
Property and Equipment | |
Property and equipment is carried at cost and is depreciated using the straight-line method over the useful lives of the assets ranging from three to seven years. Leasehold improvements are amortized over the estimated life of the asset or term of the lease, whichever is shorter. | |
Impairment of Long-Lived Assets | |
The Company regularly reviews the carrying amount of its long-lived assets, as well as their useful lives, to determine whether indicators of impairment may exist which warrant adjustments to carrying values or estimated useful lives. An impairment loss would be recognized when the sum of the expected future undiscounted net cash flows is less than the carrying amount of the asset. Should impairment exist, the impairment loss would be measured based on the excess of the carrying amount of the asset over the asset’s fair value. The Company has not recognized any impairment losses through December 28, 2013. | |
Research and Development | |
Research and development costs are expensed as incurred. | |
Advertising Expense | |
The cost of advertising is expensed as incurred. The Company recognized advertising expense of $440, $288, and $185 for the years ended December 28, 2013, December 29, 2012, and December 31, 2011, respectively. | |
Revenue Recognition | |
The Company recognizes revenue when each of the following have occurred: (1) there is persuasive evidence that an arrangement with the customer exists, which is generally a customer purchase order; (2) the products are delivered, which generally occurs when the products are shipped and title and risk of loss has been transferred to the customer; (3) the selling price is fixed or determinable; and (4) collection of the customer receivable is deemed reasonably assured. | |
The Company records revenue based on facts available at the time of sale. Amounts that are not probable of collection once the product has shipped and title has transferred to the customer are deferred until the amount that is probable of collection can be determined. Items that are considered when determining the amounts that will be ultimately collected are the customer’s overall creditworthiness and payment history. | |
For distributors with rights of return, revenue is not recognized until product is shipped to the end customer of the distributor and the amount that will ultimately be collected is determinable. The Company offers its distributors limited stock rotation, price protection, and in some situations, credits on pricing depending on their end customer (ship and debit credits). For these distributors revenue is not recognized until product is shipped to the end customer of the distributor and the amount that will ultimately be collected is determinable. On shipments where net revenue is not recognized, the Company records an accounts receivable and deferred revenue for the selling price as there is a legally enforceable right to payment. Inventory at distributors remains on the Company’s books at carrying value until sold by the distributor at which time the Company recognizes the net revenue and cost of net revenue. Revenues to these distributors are recorded net of any pricing adjustments for price protection or ship and debit credits in the same period as the sale of goods to their customers. The amount of any pricing adjustment is based on the difference between the price at which the distributor originally purchased the Company’s inventory and either: (1) a lower distribution price then being offered on those products for price protection; or (2) a special price offered to the distributor in order to meet competitive pressures in the marketplace for ship and debit credits. The Company does not currently offer rebates or other pricing incentives, except for volume purchase pricing at the time of sale, to direct customers or distributors. | |
The Company also maintains an allowance for doubtful accounts for estimated losses resulting from the inability of customers to make required payments. If the financial condition of any customer were to deteriorate, resulting in an impairment of its ability to make payments, additional allowances could be required. | |
Warranty Accrual | |
The Company generally provides a product warranty for a period of one year; however, it may be longer for certain customers. Accordingly, the Company establishes provisions for estimated product warranty costs at the time net revenue is recognized based upon historical activity and, additionally, for any known product warranty issues. Warranty provisions are recorded as a cost of net revenue. The determination of such provisions requires the Company to make estimates of product return rates and expected costs to replace or rework the products under warranty. When the actual product failure rates, cost of replacements and rework costs differ from the original estimates, revisions to the estimated warranty accrual are made. Actual claims are charged against the warranty reserve. | |
Stock-Based Compensation | |
The Company has stock incentive plans under which options to purchase common stock have been granted to employees, consultants and directors. The stock options have been granted to employees with exercise prices equal to or above the fair value of the underlying stock, as determined by the board of directors on the date the equity award was granted up until the Company’s initial public offering in August 2012. The board of directors determined the value of the underlying stock by considering a number of factors, including historical and projected financial results, the risks the Company faced at the time, the preferences of the Company’s preferred stock, and the lack of liquidity of the Company’s common stock. The fair value of equity instruments expected to vest are recognized and amortized on a straight-line basis over the requisite service period of the award, which is generally four years. | |
Foreign Currency Translation | |
Functional currency of our international subsidiaries is the local currency. Resulting translation gains or losses are recognized as a component of other comprehensive income (loss). Transaction gains or losses related to balances denominated in a different currency than the functional currency are recognized in the statement of operations. | |
Other Income (Expense), net | |
Other income (expense), net consists primarily of foreign currency exchange gains and losses. | |
Comprehensive Income (Loss) | |
Comprehensive income (loss) is defined as the change in equity during a period from transactions and other events and circumstances from non-owner sources. Net income (loss) and other comprehensive income (loss), consist of foreign currency translation adjustments and unrealized gains and losses on investments, are reported, net of their related tax effect, to arrive at comprehensive income (loss). | |
Income Taxes | |
The Company accounts for income taxes using the asset and liability approach, the objective of which is to establish deferred tax assets and liabilities for the temporary differences between the financial reporting basis and the tax basis of our assets and liabilities, as measured by applying currently enacted tax laws. A valuation allowance is established for deferred tax assets if, based on the weight of available evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Future realization of the deferred tax asset is dependent on the reversal of existing taxable temporary differences, carryback potential, tax-planning strategies and on us generating sufficient taxable income in future years as the deferred income tax charges become currently deductible for tax reporting purposes. For the years ended December 28, 2013, December 29, 2012, and December 31, 2011, the Company has recorded a full valuation allowance against its domestic net deferred tax assets due to uncertainty of future realization. |
Net_Income_Loss_per_Share
Net Income (Loss) per Share | 12 Months Ended | |||||||||||
Dec. 28, 2013 | ||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||
Net Income (Loss) per Share | ' | |||||||||||
Net Income (Loss) per Share | ||||||||||||
Basic net income per share is calculated by dividing net income attributable to common shareholders by the weighted-average number of common shares outstanding for the period. Diluted net income per share is calculated on the basis of the weighted-average number of shares of common stock including the effect of potential dilution that could occur if securities to issue common stock were exercised or converted into common stock. The Company calculates diluted net income (loss) per share under the as-if-converted method unless the conversion of the preferred stock is anti-dilutive to basic net income (loss) per share. To the extent preferred stock is anti-dilutive, the Company calculates diluted net income (loss) per share under the two-class method. | ||||||||||||
Years Ended | ||||||||||||
December 28, | December 29, | December 31, | ||||||||||
2013 | 2012 | 2011 | ||||||||||
Numerator: | ||||||||||||
Net income (loss) | $ | (4,051 | ) | $ | 7,272 | $ | (9,682 | ) | ||||
Net income allocable to preferred stockholders | — | (4,515 | ) | — | ||||||||
Net income (loss) attributable to common stockholders | $ | (4,051 | ) | $ | 2,757 | $ | (9,682 | ) | ||||
Denominator: | ||||||||||||
Weighted average common shares outstanding | 32,296 | 14,303 | 2,737 | |||||||||
Less: weighted average unvested shares of common stock subject to repurchase | (2 | ) | (12 | ) | (22 | ) | ||||||
Weighted average common shares used in computing basic net income (loss) per share | 32,294 | 14,291 | 2,715 | |||||||||
Weighted average effect of potentially dilutive securities: | ||||||||||||
Stock options | — | 4,359 | — | |||||||||
Common stock warrants | — | 1 | — | |||||||||
Weighted average common shares used in computing diluted net income (loss) per share | 32,294 | 18,651 | 2,715 | |||||||||
Net income (loss) per share attributable to common stockholders: | ||||||||||||
Basic | $ | (0.13 | ) | $ | 0.19 | $ | (3.57 | ) | ||||
Diluted | $ | (0.13 | ) | $ | 0.15 | $ | (3.57 | ) | ||||
Historical outstanding anti-dilutive securities not included in diluted net income (loss) per share calculation: | ||||||||||||
Common stock options | 8,227 | 1,030 | 7,240 | |||||||||
Common stock warrants | 1 | — | 72 | |||||||||
Preferred stock (as converted) | — | — | 22,365 | |||||||||
Preferred stock warrants | — | — | 205 | |||||||||
8,228 | 1,030 | 29,882 | ||||||||||
Certain_Financial_Statement_In
Certain Financial Statement Information | 12 Months Ended | |||||||||
Dec. 28, 2013 | ||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | |||||||||
Certain Financial Statement Information | ' | |||||||||
Certain Financial Statement Information | ||||||||||
Inventories consisted of the following: | ||||||||||
December 28, | December 29, | |||||||||
2013 | 2012 | |||||||||
Raw materials | $ | 22,265 | $ | 20,986 | ||||||
Work in progress | 22,100 | 15,494 | ||||||||
Finished goods | 9,124 | 20,537 | ||||||||
$ | 53,489 | $ | 57,017 | |||||||
During the years ended December 28, 2013 and December 29, 2012, the Company recorded inventory write-downs of $5,725 and $1,920, respectively, related to excess and obsolete inventory as a result of changes in customer forecasted demand from one of the Company's distributors. During the year ended December 28, 2013 and December 31, 2011, the Company also recorded reductions to carrying value of inventories of $2,041 and $3,355, respectively, as a result of a lower of cost or market valuation. The write-downs in fiscal 2013 were due to anticipated selling price reductions the Company believes necessary to stimulate customer demand for certain products. These write-downs for fiscal 2011 were the result of lower than anticipated yields of certain wafers in new manufacturing processes. These inventory reductions were recorded in cost of net revenue. | ||||||||||
Included in the table are inventories held by others, which include distributors and third-parties in the Company’s supply chain, of $7,874 and $13,616 at December 28, 2013 and December 29, 2012, respectively. | ||||||||||
Property and equipment consisted of the following: | ||||||||||
Useful Life | December 28, | December 29, | ||||||||
(Years) | 2013 | 2012 | ||||||||
Computer equipment and software | 3 – 5 | $ | 6,390 | $ | 5,171 | |||||
Machinery and equipment | 5 | 40,427 | 33,753 | |||||||
Office furniture and equipment | 7 | 1,081 | 775 | |||||||
Leasehold improvements | * | 5,180 | 4,477 | |||||||
Construction in progress | 1,544 | 3,831 | ||||||||
54,622 | 48,007 | |||||||||
Less accumulated depreciation and amortization | (31,500 | ) | (25,136 | ) | ||||||
$ | 23,122 | $ | 22,871 | |||||||
* Leasehold improvements are amortized over the estimated life of the asset or remaining term of the lease, whichever is shorter. | ||||||||||
Depreciation and amortization expense was $6,589, $4,579, and $3,980 for the years ended December 28, 2013, December 29, 2012, and December 31, 2011, respectively. | ||||||||||
Accrued liabilities consisted of the following: | ||||||||||
28-Dec-13 | 29-Dec-12 | |||||||||
Accrued inventory purchases | $ | 1,717 | $ | 1,125 | ||||||
Accrued inventory repurchase obligation | 6,510 | 6,900 | ||||||||
Accrued other | 3,602 | 4,647 | ||||||||
$ | 11,829 | $ | 12,672 | |||||||
Accrued inventory repurchase obligation represents raw materials sold to suppliers for processing. These raw | ||||||||||
materials remain part of the Company’s total inventory and the transactions include only customary terms and conditions, such | ||||||||||
as shipping and payment terms. |
Financial_Instruments
Financial Instruments | 12 Months Ended | |||||||||||||||||||||||||||
Dec. 28, 2013 | ||||||||||||||||||||||||||||
Investments, All Other Investments [Abstract] | ' | |||||||||||||||||||||||||||
Financial Instruments | ' | |||||||||||||||||||||||||||
Financial Instruments | ||||||||||||||||||||||||||||
The following tables show the Company’s cash and marketable securities’ cost, unrealized gains, unrealized losses and fair value by significant investment category measured at fair value on a recurring basis and recorded as cash and cash equivalents or short- and long-term marketable securities as of December 28, 2013: | ||||||||||||||||||||||||||||
December 28, 2013 | ||||||||||||||||||||||||||||
Reported as | ||||||||||||||||||||||||||||
Cost | Unrealized | Unrealized | Fair | Cash and | Short- | Long-Term | ||||||||||||||||||||||
Gains | Losses | Value | Cash | Term | Marketable | |||||||||||||||||||||||
Equivalents | Marketable | Securities | ||||||||||||||||||||||||||
Securities | ||||||||||||||||||||||||||||
Cash | $ | 7,023 | $ | — | $ | — | $ | 7,023 | $ | 7,023 | $ | — | $ | — | ||||||||||||||
Level 1: | ||||||||||||||||||||||||||||
Money market funds | 9,226 | — | — | 9,226 | 9,226 | — | — | |||||||||||||||||||||
Subtotal | 9,226 | — | — | 9,226 | 9,226 | — | — | |||||||||||||||||||||
Level 2: | ||||||||||||||||||||||||||||
U.S. Agency securities | 22,929 | 4 | (3 | ) | 22,930 | — | 15,929 | 7,001 | ||||||||||||||||||||
Certificates of deposit | 8,840 | 4 | (10 | ) | 8,834 | — | 5,959 | 2,875 | ||||||||||||||||||||
Commercial paper | 998 | — | (1 | ) | 997 | — | 997 | — | ||||||||||||||||||||
Corporate notes and bonds | 14,156 | 9 | (3 | ) | 14,162 | — | 5,150 | 9,012 | ||||||||||||||||||||
Subtotal | 46,923 | 17 | (17 | ) | 46,923 | — | 28,035 | 18,888 | ||||||||||||||||||||
Total | $ | 63,172 | $ | 17 | $ | (17 | ) | $ | 63,172 | $ | 16,249 | $ | 28,035 | $ | 18,888 | |||||||||||||
There were no transfers between Level 1, Level 2 or Level 3 securities in the year ended December 28, 2013. All of the long-term marketable securities had remaining maturities of between one and two years in duration at December 28, 2013. | ||||||||||||||||||||||||||||
As of December 28, 2013, the Company had 39 investments in marketable securities with a fair value of $23,361 that were in an unrealized loss position of $17 for less than 12 months and considers the declines in market value to be temporary in nature and does not consider any of its investments other-than temporarily impaired. When evaluating an investment for other-than-temporary impairment, the Company reviews factors such as the length of time and extent to which fair value has been below its cost basis, the financial condition of the issuer and any changes thereto, and the Company’s intent to sell, or whether it is more likely than not it will be required to sell the investment before recovery of the investment’s cost basis. | ||||||||||||||||||||||||||||
The following table presents a summary of the Company’s financial instruments that are measured on a recurring basis as of December 29, 2012: | ||||||||||||||||||||||||||||
29-Dec-12 | ||||||||||||||||||||||||||||
Reported as | ||||||||||||||||||||||||||||
Cost | Unrealized | Unrealized | Fair | Cash and | Short- | Long-Term | ||||||||||||||||||||||
Gains | Losses | Value | Cash | Term | Marketable | |||||||||||||||||||||||
Equivalents | Marketable | Securities | ||||||||||||||||||||||||||
Securities | ||||||||||||||||||||||||||||
Cash | $ | 24,703 | $ | — | $ | — | $ | 24,703 | $ | 24,703 | $ | — | $ | — | ||||||||||||||
Level 1: | ||||||||||||||||||||||||||||
Money market funds | 18,923 | — | — | 18,923 | 18,923 | — | — | |||||||||||||||||||||
Subtotal | 18,923 | — | — | 18,923 | 18,923 | — | — | |||||||||||||||||||||
Level 2: | ||||||||||||||||||||||||||||
U.S. Agency securities | 24,339 | 2 | (2 | ) | 24,339 | — | 13,317 | 11,022 | ||||||||||||||||||||
Certificates of deposit | 9,285 | 2 | (3 | ) | 9,284 | 480 | 6,642 | 2,162 | ||||||||||||||||||||
Commercial paper | 2,893 | 1 | — | 2,894 | — | 2,894 | — | |||||||||||||||||||||
Corporate notes and bonds | 13,211 | 9 | (4 | ) | 13,216 | — | 7,508 | 5,708 | ||||||||||||||||||||
Subtotal | 49,728 | 14 | (9 | ) | 49,733 | 480 | 30,361 | 18,892 | ||||||||||||||||||||
Total | $ | 93,354 | $ | 14 | $ | (9 | ) | $ | 93,359 | $ | 44,106 | $ | 30,361 | $ | 18,892 | |||||||||||||
There were no transfers between Level 1, Level 2 or Level 3 securities in the year ended December 29, 2012. |
Stockholders_Equity
Stockholders' Equity | 12 Months Ended | ||||||||||||
Dec. 28, 2013 | |||||||||||||
Equity [Abstract] | ' | ||||||||||||
Stockholders' Equity | ' | ||||||||||||
Stockholders’ Equity | |||||||||||||
Preferred Stock | |||||||||||||
Immediately prior to the closing of the IPO in August 2012, all shares of the Company’s then-outstanding convertible preferred stock outstanding automatically converted into 22,412 shares of common stock. The Company initially recorded each series of convertible preferred stock at their fair values on the dates of issuance, net of issuance costs. A redemption event would only occur upon the liquidation or winding up of the Company, a greater than 50% change of control or sale of substantially all of the assets of the Company. As the redemption event was outside the control of the Company, all shares of convertible preferred stock were presented outside of permanent equity in accordance with accounting guidance for redeemable securities. | |||||||||||||
Warrants | |||||||||||||
In May 2012, holders of Series D1 convertible preferred stock warrants net settled 80 of their warrants for 19 shares of Series D1 convertible preferred stock. On the date of the settlement, the Company de-recognized the fair value of the preferred stock warrant liability of $477 against convertible preferred stock. | |||||||||||||
The Company’s certificate of incorporation includes provisions which, based on approval of the board of directors and a majority of the stockholders of the Company, allow for a sale of the assets of the business whereby the Company could be required to pay the liquidation preference on outstanding convertible preferred stock. As a result of these provisions, warrants to purchase convertible preferred stock were accounted for as liabilities. The Company adjusts the carrying value of such warrants to their estimated fair value at each reporting date and increases or decreases in the fair value of such warrants are recorded as interest expense in the consolidated statements of operations. The Company recorded changes to the fair value of the warrant liability of ($634) and $36 for the years ended December 29, 2012 and December 31, 2011, respectively. The changes in the warrant liability are recorded in interest expense. | |||||||||||||
Stock-Based Compensation | |||||||||||||
2004 Plan: The Company is authorized to issue 6,495 shares upon the exercise of options to purchase common shares to employees, directors and consultants under a stock option plan adopted in 2004, as amended (the 2004 Plan). The 2004 Plan provides for the issuance of both incentive stock options (ISOs) and nonstatutory stock options (NSOs). NSOs may be granted to employees, directors or consultants, while ISOs may be granted only to employees. Options granted vest over a maximum period of four years and expire ten years from the date of grant. New hire stock options generally vest over four years, 25% on the first anniversary of the date of grant and monthly thereafter for the remaining three years. Stock options are not participating in any dividends declared by the Company. | |||||||||||||
2012 Plan: In April 2012, the Company’s board of directors adopted the 2012 Equity Incentive Plan (the 2012 Plan) and the stockholders approved it in May 2012. The 2012 Plan became effective on the completion of the IPO. The 2012 Plan authorizes the grant of ISOs, NSOs, stock appreciation rights, restricted stock, stock units, and performance cash awards. | |||||||||||||
2012 ESPP: In April 2012, the Company’s board of directors adopted the 2012 Employee Stock Purchase Plan (the 2012 ESPP) and the stockholders approved it in May 2012. The 2012 ESPP became effective on the completion of the IPO. A total of 1,000 shares of common stock will be made available for sale under the 2012 ESPP. The 2012 ESPP permits participants to purchase common stock at a discount through contributions of up to 15% of their eligible compensation. The 2012 ESPP will be implemented through offering periods of approximately six months in duration. The purchase price of shares will be 85% of the lower of the fair market value of the Company’s common stock on the first trading day of each offering period or on the purchase date. No offering periods have commenced to date with respect to the 2012 ESPP. | |||||||||||||
The Company uses the Black-Scholes valuation model to calculate the fair value of stock options. The fair value of stock options was estimated at the grant date using the following weighted-average assumptions: | |||||||||||||
Years Ended | |||||||||||||
December 28, | December 29, | December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||||
Expected term (years) | 5 | 5 | 5.24 | ||||||||||
Risk-free interest rate | 0.8 | % | 0.72 | % | 1.26 | % | |||||||
Dividend rate | — | — | — | ||||||||||
Volatility | 61 | % | 62 | % | 61 | % | |||||||
Forfeiture rate | 3 | % | 3 | % | 3 | % | |||||||
Estimated fair value per stock option | $ | 5.26 | $ | 8.37 | $ | 4.47 | |||||||
The risk-free interest rate assumption was based on the U.S. Treasury’s rates for U.S. Treasury constant maturities similar to those of the expected term of the award being valued. The assumed dividend yield was based on the Company’s expectation of not paying dividends in the foreseeable future. The Company utilizes data of peer companies to determine the weighted average expected term in an effort to better align the expected term of the Company’s options with the term experienced by the Company’s peers. In addition, due to the Company’s limited historical data, the estimated volatility incorporates the historical volatility of comparable companies whose share prices are publicly available. | |||||||||||||
The following summarizes activity related to the Company’s stock options under the 2004 Plan and 2012 Plan at December 28, 2013: | |||||||||||||
Options | Weighted-Average | Aggregate | Weighted-Average | ||||||||||
Outstanding | Exercise Price | Intrinsic Value | Remaining | ||||||||||
Contractual Term | |||||||||||||
(Years) | |||||||||||||
Outstanding at December 25, 2010 | 6,135 | $ | 2.86 | $ | 37,360 | 7.04 | |||||||
Granted | 1,349 | 9.69 | |||||||||||
Exercised | (105 | ) | 1.84 | ||||||||||
Forfeited | (139 | ) | 5.94 | ||||||||||
Outstanding at December 31, 2011 | 7,240 | $ | 4.11 | $ | 34,493 | 6.68 | |||||||
Granted | 903 | 15.98 | |||||||||||
Exercised | (432 | ) | 1.07 | ||||||||||
Forfeited | (109 | ) | 8.49 | ||||||||||
Outstanding at December 29, 2012 | 7,602 | $ | 5.61 | $ | 69,449 | 6.35 | |||||||
Granted | 1,862 | 10.27 | |||||||||||
Exercised | (857 | ) | 2.13 | ||||||||||
Forfeited | (380 | ) | 12.52 | ||||||||||
Outstanding at December 28, 2013 | 8,227 | $ | 6.71 | $ | 19,870 | 6.27 | |||||||
Vested and expected to vest at December 28, 2013 | 8,076 | $ | 6.63 | $ | 19,870 | 6.22 | |||||||
Exercisable at December 28, 2013 | 5,023 | $ | 4.15 | $ | 19,805 | 4.76 | |||||||
Total stock-based compensation expense recognized during the years ended December 28, 2013, December 29, 2012, and December 31, 2011 was comprised of the following: | |||||||||||||
Years Ended | |||||||||||||
December 28, | December 29, | December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||||
Cost of net revenue | $ | 883 | $ | 588 | $ | 431 | |||||||
Research and development | 2,097 | 1,419 | 762 | ||||||||||
Selling, general and administrative | 3,635 | 2,430 | 1,891 | ||||||||||
$ | 6,615 | $ | 4,437 | $ | 3,084 | ||||||||
The total intrinsic value of stock options exercised was $6,926, $5,491 and $757 for the years ended December 28, 2013, December 29, 2012, and December 31, 2011, respectively. Upon exercise, the Company issues new shares of stock. As of December 28, 2013, the unrecognized estimated stock-based compensation related to nonvested stock options granted as of that date was $13,108, which is expected to be recognized over a weighted-average period of approximately 2.1 years. If there are any modifications or cancellations of the underlying unvested securities, the Company may be required to accelerate, increase or cancel any remaining unearned stock-based compensation expense. Future stock-based compensation expense and unearned stock-based compensation will increase to the extent that the Company grants additional equity awards or assumes unvested equity awards in connection with acquisitions. | |||||||||||||
Shares Reserved for Future Issuance | |||||||||||||
The following common stock is reserved for future issuance at December 28, 2013 and December 29, 2012: | |||||||||||||
December 28, | December 29, | ||||||||||||
2013 | 2012 | ||||||||||||
Common stock warrants | 2 | 2 | |||||||||||
Stock awards issued and outstanding | 8,227 | 7,602 | |||||||||||
Authorized for grants under the 2012 Plan and 2012 ESPP | 3,787 | 3,996 | |||||||||||
12,016 | 11,600 | ||||||||||||
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||||
Dec. 28, 2013 | ||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||
Income Taxes | ' | |||||||||||
Income Taxes | ||||||||||||
Income (loss) before income tax consisted of the following for the years ended: | ||||||||||||
December 28, | December 29, | December 31, | ||||||||||
2013 | 2012 | 2011 | ||||||||||
Domestic | $ | (4,404 | ) | $ | 6,946 | $ | (9,849 | ) | ||||
Foreign | 420 | 238 | 363 | |||||||||
Income (loss) before income taxes | $ | (3,984 | ) | $ | 7,184 | $ | (9,486 | ) | ||||
The provision (benefit) for income taxes is as follows for the years ended: | ||||||||||||
December 28, | December 29, | December 31, | ||||||||||
2013 | 2012 | 2011 | ||||||||||
Current (benefit) provision: | ||||||||||||
Federal | $ | (81 | ) | $ | (300 | ) | $ | 20 | ||||
State | (32 | ) | 49 | — | ||||||||
Foreign | 137 | 141 | 175 | |||||||||
Total current | 24 | (110 | ) | 195 | ||||||||
Deferred provision: | ||||||||||||
Federal | — | — | — | |||||||||
State | — | — | — | |||||||||
Foreign | 43 | 22 | 1 | |||||||||
Total deferred | 43 | 22 | 1 | |||||||||
Total income tax provision (benefit) | $ | 67 | $ | (88 | ) | $ | 196 | |||||
A reconciliation of the federal statutory rate to the effective rate is as follows: | ||||||||||||
December 28, | December 29, | December 31, | ||||||||||
2013 | 2012 | 2011 | ||||||||||
Income tax provision (benefit) on earnings at federal statutory rate | (35.0 | )% | 35 | % | (35.0 | )% | ||||||
State tax provision (benefit), net of federal benefit | 0.9 | 3.2 | (2.3 | ) | ||||||||
Federal and state tax credits | (74.6 | ) | (8.1 | ) | (15.8 | ) | ||||||
Change in valuation allowance | 116.2 | (47.9 | ) | 55.2 | ||||||||
Stock-based compensation | (7.9 | ) | 4.1 | 4.2 | ||||||||
Valuation of warrants | — | 3.1 | (0.1 | ) | ||||||||
Deemed repatriation of foreign earnings | — | 3.6 | — | |||||||||
Nondeductible expenses and other permanent differences, net | 2.1 | 5.8 | (4.1 | ) | ||||||||
Income tax provision (benefit) | 1.7 | % | (1.2 | )% | 2.1 | % | ||||||
The components of the Company’s deferred tax assets and liabilities are summarized as follows: | ||||||||||||
December 28, | December 29, | |||||||||||
2013 | 2012 | |||||||||||
Deferred tax assets: | ||||||||||||
Net operating loss carryforwards | $ | 55,010 | $ | 55,758 | ||||||||
Research tax credit carryforwards | 10,177 | 7,232 | ||||||||||
Accrued expenses and reserves | 9,559 | 6,378 | ||||||||||
Foreign deferred tax assets | — | 12 | ||||||||||
Total deferred tax assets | 74,746 | 69,380 | ||||||||||
Deferred tax liabilities: | ||||||||||||
Depreciation | (3,669 | ) | (2,918 | ) | ||||||||
Foreign deferred tax liabilities | (32 | ) | — | |||||||||
Total deferred tax liabilities | (3,701 | ) | (2,918 | ) | ||||||||
Less valuation allowance | (71,077 | ) | (66,450 | ) | ||||||||
Net deferred tax asset (liability) | $ | (32 | ) | $ | 12 | |||||||
The valuation allowance has been established to offset domestic deferred tax assets, as realization of such assets is not considered to be more likely than not due to the Company’s recent history of losses and uncertainties regarding the Company’s ability to generate future taxable income sufficient to utilize the existing deferred tax assets prior to their expiration. | ||||||||||||
At December 28, 2013, the Company had U.S. federal and state net operating loss (NOL) carryforwards of approximately $147,545 and $102,481, respectively, after taking into consideration the impact of Internal Revenue Code Section 382 as discussed below. The federal net loss carryforwards will expire between 2018 and 2031, unless previously utilized. The state net loss carryforwards will expire between 2014 and 2031, unless previously utilized. | ||||||||||||
During the year ended December 28, 2013, the Company generated excess tax benefits of approximately $1,654 from the settlement of certain stock awards. The tax benefit will be recorded as a credit to additional paid-in capital in the year the deduction reduces income tax payable. | ||||||||||||
The Company had tax credit carryforwards of approximately $7,226 for federal and $9,934 for state purposes at December 28, 2013. The federal credits will begin to expire in 2024. The state research and development tax credit does not expire. | ||||||||||||
Pursuant to Sections 382 and 383 of the Internal Revenue Code (the Code), annual use of the Company’s NOL and research credit carryforwards may be limited in the event a cumulative change in ownership of 50% of certain stockholders occurs within a three year period. An ownership change may limit the amount of NOL and research credit carryforwards that can be utilized annually to offset future taxable income and tax, respectively. In general, an “ownership change” as defined by Section 382 of the Code results from a transaction or series of transactions over a three-year period resulting in an ownership change of more than 50 percentage points of the outstanding stock of a company by certain stockholders. | ||||||||||||
The Company completed a study to assess whether an ownership change has occurred since the Company’s formation through December 28, 2013. Based upon this study, the Company believes that several ownership changes have occurred. The Company has reduced its deferred tax assets related to the NOL and R&D tax credit carryovers that are anticipated to expire unused as a result of the ownership changes. These tax attributes have been excluded from deferred tax assets with a corresponding reduction of the valuation allowance with no net effect on income tax expense or the effective tax rate. Future ownership changes may further limit the Company’s ability to utilize its remaining tax attributes. | ||||||||||||
As of December 28, 2013, the Company has not provided for U.S. federal and state income taxes and foreign withholding taxes on approximately $237 of undistributed earnings of certain foreign subsidiaries as these earnings are considered indefinitely reinvested outside of the United States. Determination of the amount of any unrecognized deferred income tax liability on this temporary difference is not practicable due to the complexities of the hypothetical calculation. If management decides to repatriate such foreign earnings in future periods, the Company may incur incremental U.S. federal and state income taxes as well as foreign withholding taxes. However, the Company's intent is to keep these funds indefinitely reinvested outside the U.S. and its current plans do not demonstrate a need to repatriate them to fund U.S. operations. For certain earnings of foreign subsidiaries not considered indefinitely reinvested, such as Subpart F of the U.S. Internal Revenue Code (Subpart F), the Company has provided U.S. income taxes and foreign withholding taxes on these undistributed earnings. As of the year ended December 28, 2013, the Company recorded U.S. income taxes and foreign withholding taxes on $774 of undistributed earnings of foreign subsidiaries. During 2012, the Company recorded U.S. income taxes on approximately $900 of Subpart F earnings of foreign subsidiaries. | ||||||||||||
The following table summarizes the activity related to the Company’s unrecognized tax benefits: | ||||||||||||
28-Dec-13 | 29-Dec-12 | 31-Dec-11 | ||||||||||
Balance at beginning of year | $ | 3,742 | $ | 2,035 | $ | 1,863 | ||||||
Increases (decreases) related to prior year tax positions | 861 | 1,621 | (5 | ) | ||||||||
Increases related to current year tax positions | 1,196 | 279 | 177 | |||||||||
Expirations of the statute of limitations for the assessment of taxes | (68 | ) | (193 | ) | — | |||||||
Balance at end of year | $ | 5,731 | $ | 3,742 | $ | 2,035 | ||||||
Approximately $68 and $261 of the total unrecognized tax benefits at December 29, 2012 and December 31, 2011, respectively, would reduce the Company’s annual effective tax rate if recognized, and the remainder would have no effect as long as the Company’s deferred tax assets remain subject to a valuation allowance. | ||||||||||||
The Company does not anticipate any increases or decreases in the unrecognized tax benefit over the next 12 months. | ||||||||||||
Due to the NOL and credit carryforwards, the U.S. federal and state returns are open to examination by the Internal Revenue Service and state jurisdictions for years 1998 through 2012. The foreign income tax returns are open to examination for the years 2011 through 2013. | ||||||||||||
The Company’s policy is to recognize interest expense and penalties related to income tax matters as a component of income tax expense. There was approximately $12 accrued interest and penalties associated with uncertain tax positions as of December 29, 2012 and no accrued interest as of December 28, 2013. The amount of interest and penalties recognized during the years ended December 28, 2013, December 29, 2012, and December 31, 2011 was $12, $85, and $20, respectively. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | |||
Dec. 28, 2013 | ||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||
Commitments and Contingencies | ' | |||
Commitments and Contingencies | ||||
Leases | ||||
The Company leases its primary operating facilities in San Diego, CA under operating lease agreements which expire on December 31, 2015. Future minimum annual payments under the operating lease for fiscal 2014 and 2015 are approximately $898 and $953, respectively. In addition, the Company leases certain equipment and software under operating lease agreements which expire between 2014 and 2016. Total operating lease and license expense was $4,045, $3,606, and $3,154 for the years ended December 28, 2013, December 29, 2012, and December 31, 2011, respectively. | ||||
Annual future minimum obligations under operating leases and licensing agreements as of December 28, 2013, are as follows: | ||||
Fiscal years: | ||||
2014 | $ | 2,428 | ||
2015 | 1,366 | |||
2016 | 51 | |||
Total minimum lease payments | $ | 3,845 | ||
Long-term debt obligations | ||||
In May 2013, the Company amended its existing loan and security agreement, which increased the maximum line of credit availability up to $25,000 in accounts receivable financing. The Company is obligated to pay interest at the rate of LIBOR plus 2.0% to 2.5% subject to certain covenants. Interest is payable monthly with the principal due at the maturity date, December 31, 2015. At December 28, 2013 and December 29, 2012, there was no outstanding balance and there was $19,178 and $14,414 available, respectively. The agreement contains certain financial covenants, including covenants relating to our required liquidity ratio and minimum tangible net worth. The Company was in compliance with its financial covenants at December 28, 2013. | ||||
Legal Proceedings | ||||
On February 14, 2012, the Company filed a lawsuit in the U.S. District Court for the Central District of California, which was subsequently moved to the U.S. District Court for the Southern District of California. The action alleges the infringement of five of the Company’s patents relating to RFICs and switching technology by RF Micro Devices, Inc. (RFMD). The lawsuit alleges that certain of RFMD’s products infringe the Company’s patents relating to silicon on insulator (SOI) design technology for RFICs and seeks, in addition to damages, to permanently enjoin RFMD from further infringement. On March 26, 2013, the Company filed an additional lawsuit against RFMD in the U.S. District Court for the Southern District of California alleging infringement of a sixth patent relating to RFICs and switching technology by RFMD. On April 25, 2013, the Company consolidated these two U.S. District Court actions into one lawsuit. On September 27, 2013, the U.S. District Court set a trial date for November 12, 2014. On December 12, 2013, RFMD filed a counterclaim alleging the Company violates a patent owned or licensed by RFMD. Pursuing these actions is costly and could impose a significant burden on management and employees. The Company may receive unfavorable interim rulings in the course of this litigation and there can be no assurance that a favorable outcome will ultimately be obtained. The Company believes the outcome of this pending litigation will not have, individually or in the aggregate, a material adverse effect on its consolidated financial statements. | ||||
On November 14, 2013, representatives of the U.S. Department of Homeland Security (DHS), in collaboration with the United States Attorney’s Office for the Southern District of California (USAO), executed a federal search warrant at the Company's San Diego facilities in connection with an investigation into exports and temporary imports of certain products sold in the aerospace market. The Company is cooperating fully with the USAO and DHS officials. No claims have been asserted and no amounts have been accrued for this contingency in the consolidated financial statements. | ||||
The U.S. Department of State, Office of Defense Trade Controls Compliance (USDS), is conducting a review of the Company’s compliance with the Arms Export Control Act (AECA) and the AECA’s implementation of International Traffic In Arms Regulations (ITAR). Based on this review the Company could be subject to continued investigation and potential regulatory consequences related to these violations ranging from a no-action letter, government oversight of facilities and export transactions, monetary penalties of up to $500 per violation, and in certain cases, debarment from government contracting, denial of export privileges, and criminal penalties. No claims have been asserted and no amounts have been accrued for this contingency in the consolidated financial statements. Furthermore, due to the preliminary nature of the investigation and the USDS review, the Company believes it is not possible to estimate the likelihood of an unfavorable outcome or the possible loss or range of losses in the event of an unfavorable outcome. | ||||
The Company monitors the status of these and other contingencies on an ongoing basis to ensure amounts are recognized and/or disclosed in our financial statements and footnotes as required by ASC 450, Loss Contingencies. At the time of this filing, the Company had not recorded any accrual for loss contingencies associated with its legal proceedings as losses resulting from such matters were determined not to be probable. | ||||
From time to time, the Company is subject to various claims and suits arising in the ordinary course of business, including commercial, employment and environmental matters. The Company does not expect that the resolution of these matters will have a material adverse effect on its consolidated financial position or results of operations. | ||||
Commitments | ||||
The Company has open non-cancelable inventory purchase commitments of $12,345 as of December 28, 2013. Inventory purchase obligations represent purchase commitments for fixed prices and quantities of wafers, assembly, and test services. We expect to receive and pay for the majority of these materials and services during the next twelve months. |
Supply_and_Prepayment_Agreemen
Supply and Prepayment Agreement | 12 Months Ended |
Dec. 28, 2013 | |
Payables and Accruals [Abstract] | ' |
Supply and Prepayment Agreement | ' |
Supply and Prepayment Agreement | |
In March 2012, the Company entered into a supply and prepayment agreement with Murata Manufacturing Company, Ltd. (Murata). The agreement is for an initial term of 18 months. Under the terms of the original agreement, Murata agreed to prepay on certain purchase orders placed through a third party distributor and to pay the Company a total deposit of $14,000 between March and July 2012. On September 29, 2012, the Company and Murata agreed to reduce the deposits from $14,000 to $13,000. The Company has been repaying the deposit at a rate based on the number of RFICs purchased by Murata over the four quarters starting from the fourth quarter of fiscal 2012 of up to $13,000. As of December 28, 2013, the Company repaid $12,084 under the supply and prepayment agreement with Murata resulting in a remaining customer deposit of $916. | |
As of December 29, 2012, the Company received prepayments on purchases made by Macnica, which were applied against outstanding accounts receivable balances. There is no remaining prepayment as of December 28, 2013 as the agreement concluded on March 31, 2013 and the deposit was fully utilized in April 2013. As of December 29, 2012, customer deposits included in prepayments on purchase orders from Macnica totaled $11,425. | |
During 2012, the Company paid $4,000 in deposits to suppliers to support production levels. During the year ended December 28, 2013, the Company received $3,755 in deposit repayments from suppliers resulting in a remaining balance of $245, which is included in prepaids and other current assets. |
Restructuring
Restructuring | 12 Months Ended | |||||||||||||||
Dec. 28, 2013 | ||||||||||||||||
Restructuring and Related Activities [Abstract] | ' | |||||||||||||||
Restructuring Charges | ' | |||||||||||||||
Restructuring | ||||||||||||||||
During December 2013, the Company made adjustments to reduce operating expense. These actions included consolidating office locations and reduction in employees across the Company’s operations in the U.S. and Japan. The restructuring was driven by long-term strategic and operational decisions. | ||||||||||||||||
The following table summarizes the restructuring activity and related accrual at December 28, 2013: | ||||||||||||||||
Balance at December 29, 2012 | Current Charges | Cash Payments | Balance at December 28, 2013 | |||||||||||||
Employee termination benefits | $ | — | $ | 636 | $ | (218 | ) | $ | 418 | |||||||
Lease and other contract termination costs | — | 73 | (35 | ) | 38 | |||||||||||
Total | $ | — | $ | 709 | $ | (253 | ) | $ | 456 | |||||||
The remaining restructuring accrual balance of $456 as of December 28, 2013 is included in accrued liabilities and is expected to be paid in the first quarter of fiscal 2014. The accrual balance approximates fair value due to the short-term payment period. During the year ended December 28, 2013, the Company recorded restructuring expense of $340 in cost of net revenues and $369 in selling, general and administrative. | ||||||||||||||||
Subsequent to the year ended December 28, 2013, on January 30, 2014, the Company approved a restructuring plan. The plan consists of a reduction in force which will be substantially completed by the end of the first quarter of 2014. The total charge resulting from this plan is expected to be approximately $1,500 to $2,000. |
Employee_Benefits
Employee Benefits | 12 Months Ended |
Dec. 28, 2013 | |
Postemployment Benefits [Abstract] | ' |
Employee Benefits | ' |
Employee Benefits | |
The Company has a defined contribution 401(k) plan for employees who are at least 21 years of age. Under the terms of the plan, employees may make voluntary contributions as a percent of compensation, but not in excess of the maximum amounts allowed under the Internal Revenue Code. The Company’s contributions to the plan are discretionary and no contributions were made by the Company for any of the periods presented. |
Concentrations_and_Geographic_
Concentrations and Geographic Information | 12 Months Ended | ||||||||||||||||||||
Dec. 28, 2013 | |||||||||||||||||||||
Risks and Uncertainties [Abstract] | ' | ||||||||||||||||||||
Concentrations and Geographic Information | ' | ||||||||||||||||||||
Concentrations and Geographic Information | |||||||||||||||||||||
The Company sells a majority of its products throughout North America, Asia and Europe. The Company makes periodic evaluations of the credit worthiness of its customers and does not require collateral for credit sales. The Company recognizes an allowance for doubtful accounts relating to accounts receivable for amounts deemed uncollectible. The Company considers customer specific issues, such as financial stability and ability to pay, when determining collectability of accounts receivable and appropriate allowances to record. The Company’s allowance for doubtful accounts was $100 as of December 28, 2013 and December 29, 2012. | |||||||||||||||||||||
Customers that exceeded 10% of total net revenue were as follows: | |||||||||||||||||||||
Years Ended | |||||||||||||||||||||
28-Dec-13 | 29-Dec-12 | December 25, | |||||||||||||||||||
2010 | |||||||||||||||||||||
Macnica | 69 | % | 72 | % | 48 | % | |||||||||||||||
Richardson | 11 | % | 11 | % | 16 | % | |||||||||||||||
Customers whose balance represented greater than 10% of accounts receivable were as follows: | |||||||||||||||||||||
28-Dec-13 | 29-Dec-12 | ||||||||||||||||||||
Macnica | 50 | % | 43 | % | |||||||||||||||||
Richardson | * | 14 | % | ||||||||||||||||||
* Less than 10% of accounts receivable for the respective period end | |||||||||||||||||||||
Net revenue is allocated to the geographic region where the customer, or its business unit that makes the purchase is geographically based, or where the services were provided. Net revenue by geographic region was as follows: | |||||||||||||||||||||
Years Ended | |||||||||||||||||||||
28-Dec-13 | 29-Dec-12 | 31-Dec-11 | |||||||||||||||||||
United States | $ | 35,089 | 17 | % | $ | 34,489 | 17 | % | $ | 31,921 | 30 | % | |||||||||
Japan | 142,389 | 71 | 147,458 | 72 | 52,062 | 48 | |||||||||||||||
All others | 24,838 | 12 | 21,961 | 11 | 23,788 | 22 | |||||||||||||||
$ | 202,316 | 100 | % | $ | 203,908 | 100 | % | $ | 107,771 | 100 | % | ||||||||||
As of December 28, 2013 and December 29, 2012 substantially all of the Company’s long-lived tangible assets are located in the U.S. | |||||||||||||||||||||
In addition, four vendors supplied 95% and 98% of the Company’s raw material for the years ended December 28, 2013 and December 29, 2012, respectively. |
Segment_Information
Segment Information | 12 Months Ended |
Dec. 28, 2013 | |
Segment Reporting [Abstract] | ' |
Segment Information | ' |
Segment Information | |
The Company operates in one segment related to the design, manufacturing and marketing of high performance RFICs for the space and military, broadband, industrial, mobile device, test and measurement equipment, and wireless infrastructure markets. The Company’s chief operating decision-maker is its chief executive officer, who reviews operating results on an aggregate basis and manages the Company’s resources and operations as a single operating segment. |
Quarterly_Financial_Data_Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended | |||||||||||||||
Dec. 28, 2013 | ||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | |||||||||||||||
Quarterly Financial Data (Unaudited) | ' | |||||||||||||||
Quarterly Financial Data (Unaudited) | ||||||||||||||||
The following table presents our unaudited quarterly financial data. In our opinion, this information has been prepared on a basis consistent with that of our audited consolidated financial statements and all necessary material adjustments, consisting of normal recurring accruals and adjustments, have been included to present fairly the unaudited quarterly financial data. Our quarterly results of operations for these periods are not necessarily indicative of future results of operations. | ||||||||||||||||
Net | Gross | Net | Diluted Net | |||||||||||||
Revenue | Profit | Income | Income | |||||||||||||
(Loss) | (Loss) | |||||||||||||||
Per Share * | ||||||||||||||||
Year Ended December 28, 2013 | ||||||||||||||||
Fourth Quarter | $ | 43,324 | $ | 15,607 | $ | (6,828 | ) | $ | (0.21 | ) | ||||||
Third Quarter | 60,002 | 25,253 | 4,433 | 0.12 | ||||||||||||
Second Quarter | 52,365 | 20,719 | (448 | ) | (0.01 | ) | ||||||||||
First Quarter | 46,625 | 19,817 | (1,208 | ) | (0.04 | ) | ||||||||||
Total | $ | 202,316 | $ | 81,396 | $ | (4,051 | ) | |||||||||
Year Ended December 29, 2012 | ||||||||||||||||
Fourth Quarter | $ | 62,999 | $ | 27,282 | $ | 5,627 | $ | 0.15 | ||||||||
Third Quarter | 60,575 | 25,015 | 4,713 | 0.1 | ||||||||||||
Second Quarter | 43,639 | 16,241 | (26 | ) | (0.01 | ) | ||||||||||
First Quarter | 36,695 | 11,235 | (3,042 | ) | (1.10 | ) | ||||||||||
Total | $ | 203,908 | $ | 79,773 | $ | 7,272 | ||||||||||
* The sum of the four quarters may not agree to the year total due to rounding within a quarter or the inclusion or exclusion of common stock equivalents in certain periods. |
Organization_and_Summary_of_Si1
Organization and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 28, 2013 | |
Accounting Policies [Abstract] | ' |
The Company | ' |
The Company | |
Peregrine Semiconductor Corporation (the Company) is a fabless provider of high performance radio frequency integrated circuits (RFICs). The Company’s solutions leverage its proprietary UltraCMOS technology which enables the design, manufacture, and integration of multiple RF, mixed signal, and digital functions on a single chip. The Company’s | |
solutions target a broad range of applications in the space and military, automotive, broadband, industrial, mobile device, test and measurement equipment, and wireless infrastructure markets. | |
Principles of Consolidation | ' |
Principles of Consolidation | |
The consolidated financial statements include the accounts of the Company and its subsidiaries. All significant intercompany transactions have been eliminated upon consolidation. | |
Accounting Periods | ' |
Accounting Periods | |
The Company uses a 52- or 53-week fiscal year ending on the last Saturday in December. Fiscal years 2013 and 2012 were 52-week years ending on December 28, 2013 and December 29, 2012, respectively. | |
Use of Estimates | ' |
Use of Estimates | |
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amount of assets and liabilities at the date of the financial statements as well as the reported amounts of net revenue and expense during the reporting period. The Company regularly evaluates estimates and assumptions related to areas such as revenue recognition, allowances for doubtful accounts, warranty obligations, inventory valuation, stock-based compensation expense, deferred income tax valuation allowances, litigation and other loss contingencies. These estimates and assumptions are based on current facts, historical experience and various other factors believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the recording of revenue, costs and expenses that are not readily apparent from other sources. Actual results may differ materially and adversely from these estimates. To the extent there are material differences between the estimates and actual results, the Company’s future results of operations will be affected. | |
Concentration of Credit Risk | ' |
Concentration of Credit Risk | |
Financial assets and liabilities, which potentially subject the Company to concentrations of credit risk, consist primarily of cash equivalents, marketable securities, and accounts receivable. The Company limits its exposure to credit loss by placing its cash in high credit quality financial investments. At times, such deposits may be in excess of insured limits. The Company has not experienced any significant losses on its investments. | |
Deferred Initial Public Offering Costs | ' |
Deferred Initial Public Offering Costs | |
Deferred IPO costs, consisting of direct legal, accounting, and other fees and costs, were capitalized and included in other assets on the Company’s consolidated balance sheet for the periods presented prior to August 2012. | |
Fair Value of Financial Instruments | ' |
Fair Value of Financial Instruments | |
The Company applies fair value accounting for all financial assets and liabilities that are recognized or disclosed at fair value in the financial statements on a recurring basis. The Company’s financial instruments consist principally of cash and cash equivalents and marketable securities. The fair value of a financial instrument is the amount that would be received in an asset sale or paid to transfer a liability in an orderly transaction between unaffiliated market participants. Assets and liabilities measured at fair value are categorized based on whether or not the inputs are observable in the market and the degree that the inputs are observable. The categorization of financial instruments within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The hierarchy is prioritized into three levels (with Level 3 being the lowest) defined as follows: | |
Level 1: Inputs are based on quoted market prices for identical assets or liabilities in active markets at the measurement date. | |
Level 2: Inputs include quoted prices for similar assets or liabilities in active markets and/or quoted prices for identical or similar assets or liabilities in markets that are not active near the measurement date. | |
Level 3: Inputs include management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. The inputs are unobservable in the market and significant to the instrument’s valuation. | |
The fair value of the Company’s cash equivalents was determined based on “Level 1” inputs. The fair value of marketable securities was determined based on “Level 2” inputs. The fair value of the Company’s “Level 2” instruments were valued based on the market approach technique which uses quoted market prices or model driven valuations using significant inputs derived from or corroborated by observable market data. The Company does not have any marketable securities in the “Level 3” category. The Company believes that the recorded values of all of the other financial assets and liabilities approximate their current fair values because of maturity and respective duration of these assets and liabilities. | |
Cash, Cash Equivalents and Marketable Securities | ' |
Cash, Cash Equivalents and Marketable Securities | |
The Company considers all highly liquid investments that are readily convertible into cash and have a maturity of three months or less at the time of purchase to be cash equivalents. The cost of these investments approximates their fair value. The Company maintains an investment portfolio of various security holdings, types and maturities. The Company defines marketable securities as income yielding securities that can be readily converted into cash. Marketable securities’ short-term and long-term classifications are based on remaining maturities at each reporting period. The Company’s marketable securities include U.S. agency securities, certificates of deposit, commercial paper, and corporate notes and bonds. The Company places its cash investments in instruments that meet various parameters, including credit quality standards as specified in the Company’s investment policy. | |
The Company accounts for marketable securities as available-for-sale. Management determines the appropriate classification of such securities at the time of purchase and re-evaluates such classification as of each balance sheet date. Cash equivalents and marketable securities are reported at fair value with the related unrealized gains and losses included in accumulated other comprehensive income (loss), a component of shareholders’ equity, net of tax. The Company assesses whether its investments with unrealized loss positions are other than temporarily impaired. Unrealized gains and losses and declines in value judged to be other than temporary, if any, are determined based on the specific identification method and are reported in other income, net in the consolidated statements of operations. | |
Inventories | ' |
Inventories | |
Inventories are stated at the lower of cost (first-in, first-out) or market. Inventory reserves or lower of cost or market allowances are established on a part specific basis for estimated obsolescence or unmarketable inventory equal to the difference between the cost of inventory and the estimated realizable value based upon assumptions about future demand and market conditions and reduce the carrying value of the related inventory. Such reductions establish a new cost basis for the specific parts. Shipping and handling costs are classified as a component of cost of net revenue in the consolidated statements of operations. | |
The Company continually assesses the recoverability of its inventory based on assumptions about demand and market conditions. Forecasted demand is determined based on historical sales and expected future sales. Determination of the market value may be complex, and therefore requires management to make assumptions and to apply judgment. In order for management to make the appropriate determination of market value, the following items are commonly considered: inventory turnover statistics, inventory quantities, unfilled customer order quantities, forecasted customer demand, competitive pricing, seasonality factors, consumer trends, and performance of similar products or accessories. Subsequent changes in facts or circumstances do not result in the reversal of previously recorded reserves. If actual market conditions are less favorable than those projected by management, additional inventory write-downs may be required that may adversely affect the Company’s operating results. If actual market conditions are more favorable, the Company may have higher gross profits when products are sold. | |
Property and Equipment | ' |
Property and Equipment | |
Property and equipment is carried at cost and is depreciated using the straight-line method over the useful lives of the assets ranging from three to seven years. Leasehold improvements are amortized over the estimated life of the asset or term of the lease, whichever is shorter. | |
Impairment of Long-Lived Assets | ' |
Impairment of Long-Lived Assets | |
The Company regularly reviews the carrying amount of its long-lived assets, as well as their useful lives, to determine whether indicators of impairment may exist which warrant adjustments to carrying values or estimated useful lives. An impairment loss would be recognized when the sum of the expected future undiscounted net cash flows is less than the carrying amount of the asset. Should impairment exist, the impairment loss would be measured based on the excess of the carrying amount of the asset over the asset’s fair value. The Company has not recognized any impairment losses through December 28, 2013. | |
Research and Development | ' |
Research and Development | |
Research and development costs are expensed as incurred. | |
Advertising Expense | ' |
Advertising Expense | |
The cost of advertising is expensed as incurred. | |
Revenue Recognition | ' |
Revenue Recognition | |
The Company recognizes revenue when each of the following have occurred: (1) there is persuasive evidence that an arrangement with the customer exists, which is generally a customer purchase order; (2) the products are delivered, which generally occurs when the products are shipped and title and risk of loss has been transferred to the customer; (3) the selling price is fixed or determinable; and (4) collection of the customer receivable is deemed reasonably assured. | |
The Company records revenue based on facts available at the time of sale. Amounts that are not probable of collection once the product has shipped and title has transferred to the customer are deferred until the amount that is probable of collection can be determined. Items that are considered when determining the amounts that will be ultimately collected are the customer’s overall creditworthiness and payment history. | |
For distributors with rights of return, revenue is not recognized until product is shipped to the end customer of the distributor and the amount that will ultimately be collected is determinable. The Company offers its distributors limited stock rotation, price protection, and in some situations, credits on pricing depending on their end customer (ship and debit credits). For these distributors revenue is not recognized until product is shipped to the end customer of the distributor and the amount that will ultimately be collected is determinable. On shipments where net revenue is not recognized, the Company records an accounts receivable and deferred revenue for the selling price as there is a legally enforceable right to payment. Inventory at distributors remains on the Company’s books at carrying value until sold by the distributor at which time the Company recognizes the net revenue and cost of net revenue. Revenues to these distributors are recorded net of any pricing adjustments for price protection or ship and debit credits in the same period as the sale of goods to their customers. The amount of any pricing adjustment is based on the difference between the price at which the distributor originally purchased the Company’s inventory and either: (1) a lower distribution price then being offered on those products for price protection; or (2) a special price offered to the distributor in order to meet competitive pressures in the marketplace for ship and debit credits. The Company does not currently offer rebates or other pricing incentives, except for volume purchase pricing at the time of sale, to direct customers or distributors. | |
The Company also maintains an allowance for doubtful accounts for estimated losses resulting from the inability of customers to make required payments. If the financial condition of any customer were to deteriorate, resulting in an impairment of its ability to make payments, additional allowances could be required. | |
Warranty Accrual | ' |
Warranty Accrual | |
The Company generally provides a product warranty for a period of one year; however, it may be longer for certain customers. Accordingly, the Company establishes provisions for estimated product warranty costs at the time net revenue is recognized based upon historical activity and, additionally, for any known product warranty issues. Warranty provisions are recorded as a cost of net revenue. The determination of such provisions requires the Company to make estimates of product return rates and expected costs to replace or rework the products under warranty. When the actual product failure rates, cost of replacements and rework costs differ from the original estimates, revisions to the estimated warranty accrual are made. Actual claims are charged against the warranty reserve. | |
Stock-Based Compensation | ' |
Stock-Based Compensation | |
The Company has stock incentive plans under which options to purchase common stock have been granted to employees, consultants and directors. The stock options have been granted to employees with exercise prices equal to or above the fair value of the underlying stock, as determined by the board of directors on the date the equity award was granted up until the Company’s initial public offering in August 2012. The board of directors determined the value of the underlying stock by considering a number of factors, including historical and projected financial results, the risks the Company faced at the time, the preferences of the Company’s preferred stock, and the lack of liquidity of the Company’s common stock. The fair value of equity instruments expected to vest are recognized and amortized on a straight-line basis over the requisite service period of the award, which is generally four years. | |
Foreign Currency Translation | ' |
Foreign Currency Translation | |
Functional currency of our international subsidiaries is the local currency. Resulting translation gains or losses are recognized as a component of other comprehensive income (loss). Transaction gains or losses related to balances denominated in a different currency than the functional currency are recognized in the statement of operations. | |
Other Income (Expense), net | ' |
Other Income (Expense), net | |
Other income (expense), net consists primarily of foreign currency exchange gains and losses. | |
Comprehensive Income (Loss) | ' |
Comprehensive Income (Loss) | |
Comprehensive income (loss) is defined as the change in equity during a period from transactions and other events and circumstances from non-owner sources. Net income (loss) and other comprehensive income (loss), consist of foreign currency translation adjustments and unrealized gains and losses on investments, are reported, net of their related tax effect, to arrive at comprehensive income (loss). | |
Income Taxes | ' |
Income Taxes | |
The Company accounts for income taxes using the asset and liability approach, the objective of which is to establish deferred tax assets and liabilities for the temporary differences between the financial reporting basis and the tax basis of our assets and liabilities, as measured by applying currently enacted tax laws. A valuation allowance is established for deferred tax assets if, based on the weight of available evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Future realization of the deferred tax asset is dependent on the reversal of existing taxable temporary differences, carryback potential, tax-planning strategies and on us generating sufficient taxable income in future years as the deferred income tax charges become currently deductible for tax reporting purposes. For the years ended December 28, 2013, December 29, 2012, and December 31, 2011, the Company has recorded a full valuation allowance against its domestic net deferred tax assets due to uncertainty of future realization. |
Net_Income_Loss_per_Share_Tabl
Net Income (Loss) per Share (Tables) | 12 Months Ended | |||||||||||
Dec. 28, 2013 | ||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||
Net Income (Loss) Per Share | ' | |||||||||||
Years Ended | ||||||||||||
December 28, | December 29, | December 31, | ||||||||||
2013 | 2012 | 2011 | ||||||||||
Numerator: | ||||||||||||
Net income (loss) | $ | (4,051 | ) | $ | 7,272 | $ | (9,682 | ) | ||||
Net income allocable to preferred stockholders | — | (4,515 | ) | — | ||||||||
Net income (loss) attributable to common stockholders | $ | (4,051 | ) | $ | 2,757 | $ | (9,682 | ) | ||||
Denominator: | ||||||||||||
Weighted average common shares outstanding | 32,296 | 14,303 | 2,737 | |||||||||
Less: weighted average unvested shares of common stock subject to repurchase | (2 | ) | (12 | ) | (22 | ) | ||||||
Weighted average common shares used in computing basic net income (loss) per share | 32,294 | 14,291 | 2,715 | |||||||||
Weighted average effect of potentially dilutive securities: | ||||||||||||
Stock options | — | 4,359 | — | |||||||||
Common stock warrants | — | 1 | — | |||||||||
Weighted average common shares used in computing diluted net income (loss) per share | 32,294 | 18,651 | 2,715 | |||||||||
Net income (loss) per share attributable to common stockholders: | ||||||||||||
Basic | $ | (0.13 | ) | $ | 0.19 | $ | (3.57 | ) | ||||
Diluted | $ | (0.13 | ) | $ | 0.15 | $ | (3.57 | ) | ||||
Historical outstanding anti-dilutive securities not included in diluted net income (loss) per share calculation: | ||||||||||||
Common stock options | 8,227 | 1,030 | 7,240 | |||||||||
Common stock warrants | 1 | — | 72 | |||||||||
Preferred stock (as converted) | — | — | 22,365 | |||||||||
Preferred stock warrants | — | — | 205 | |||||||||
8,228 | 1,030 | 29,882 | ||||||||||
Certain_Financial_Statement_In1
Certain Financial Statement Information (Tables) | 12 Months Ended | |||||||||
Dec. 28, 2013 | ||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | |||||||||
Inventories | ' | |||||||||
Inventories consisted of the following: | ||||||||||
December 28, | December 29, | |||||||||
2013 | 2012 | |||||||||
Raw materials | $ | 22,265 | $ | 20,986 | ||||||
Work in progress | 22,100 | 15,494 | ||||||||
Finished goods | 9,124 | 20,537 | ||||||||
$ | 53,489 | $ | 57,017 | |||||||
Property and Equipment | ' | |||||||||
Property and equipment consisted of the following: | ||||||||||
Useful Life | December 28, | December 29, | ||||||||
(Years) | 2013 | 2012 | ||||||||
Computer equipment and software | 3 – 5 | $ | 6,390 | $ | 5,171 | |||||
Machinery and equipment | 5 | 40,427 | 33,753 | |||||||
Office furniture and equipment | 7 | 1,081 | 775 | |||||||
Leasehold improvements | * | 5,180 | 4,477 | |||||||
Construction in progress | 1,544 | 3,831 | ||||||||
54,622 | 48,007 | |||||||||
Less accumulated depreciation and amortization | (31,500 | ) | (25,136 | ) | ||||||
$ | 23,122 | $ | 22,871 | |||||||
* Leasehold improvements are amortized over the estimated life of the asset or remaining term of the lease, whichever is shorter. | ||||||||||
Accrued Liabilities | ' | |||||||||
Accrued liabilities consisted of the following: | ||||||||||
28-Dec-13 | 29-Dec-12 | |||||||||
Accrued inventory purchases | $ | 1,717 | $ | 1,125 | ||||||
Accrued inventory repurchase obligation | 6,510 | 6,900 | ||||||||
Accrued other | 3,602 | 4,647 | ||||||||
$ | 11,829 | $ | 12,672 | |||||||
Financial_Instruments_Tables
Financial Instruments (Tables) | 12 Months Ended | |||||||||||||||||||||||||||
Dec. 28, 2013 | ||||||||||||||||||||||||||||
Investments, All Other Investments [Abstract] | ' | |||||||||||||||||||||||||||
Cash and Marketable Securities' Cost, Unrealized Gains, Unrealized Losses and Fair Value by Significant Investment | ' | |||||||||||||||||||||||||||
The following tables show the Company’s cash and marketable securities’ cost, unrealized gains, unrealized losses and fair value by significant investment category measured at fair value on a recurring basis and recorded as cash and cash equivalents or short- and long-term marketable securities as of December 28, 2013: | ||||||||||||||||||||||||||||
December 28, 2013 | ||||||||||||||||||||||||||||
Reported as | ||||||||||||||||||||||||||||
Cost | Unrealized | Unrealized | Fair | Cash and | Short- | Long-Term | ||||||||||||||||||||||
Gains | Losses | Value | Cash | Term | Marketable | |||||||||||||||||||||||
Equivalents | Marketable | Securities | ||||||||||||||||||||||||||
Securities | ||||||||||||||||||||||||||||
Cash | $ | 7,023 | $ | — | $ | — | $ | 7,023 | $ | 7,023 | $ | — | $ | — | ||||||||||||||
Level 1: | ||||||||||||||||||||||||||||
Money market funds | 9,226 | — | — | 9,226 | 9,226 | — | — | |||||||||||||||||||||
Subtotal | 9,226 | — | — | 9,226 | 9,226 | — | — | |||||||||||||||||||||
Level 2: | ||||||||||||||||||||||||||||
U.S. Agency securities | 22,929 | 4 | (3 | ) | 22,930 | — | 15,929 | 7,001 | ||||||||||||||||||||
Certificates of deposit | 8,840 | 4 | (10 | ) | 8,834 | — | 5,959 | 2,875 | ||||||||||||||||||||
Commercial paper | 998 | — | (1 | ) | 997 | — | 997 | — | ||||||||||||||||||||
Corporate notes and bonds | 14,156 | 9 | (3 | ) | 14,162 | — | 5,150 | 9,012 | ||||||||||||||||||||
Subtotal | 46,923 | 17 | (17 | ) | 46,923 | — | 28,035 | 18,888 | ||||||||||||||||||||
Total | $ | 63,172 | $ | 17 | $ | (17 | ) | $ | 63,172 | $ | 16,249 | $ | 28,035 | $ | 18,888 | |||||||||||||
Summary of Financial Instruments Measured on Recurring Basis | ' | |||||||||||||||||||||||||||
The following table presents a summary of the Company’s financial instruments that are measured on a recurring basis as of December 29, 2012: | ||||||||||||||||||||||||||||
29-Dec-12 | ||||||||||||||||||||||||||||
Reported as | ||||||||||||||||||||||||||||
Cost | Unrealized | Unrealized | Fair | Cash and | Short- | Long-Term | ||||||||||||||||||||||
Gains | Losses | Value | Cash | Term | Marketable | |||||||||||||||||||||||
Equivalents | Marketable | Securities | ||||||||||||||||||||||||||
Securities | ||||||||||||||||||||||||||||
Cash | $ | 24,703 | $ | — | $ | — | $ | 24,703 | $ | 24,703 | $ | — | $ | — | ||||||||||||||
Level 1: | ||||||||||||||||||||||||||||
Money market funds | 18,923 | — | — | 18,923 | 18,923 | — | — | |||||||||||||||||||||
Subtotal | 18,923 | — | — | 18,923 | 18,923 | — | — | |||||||||||||||||||||
Level 2: | ||||||||||||||||||||||||||||
U.S. Agency securities | 24,339 | 2 | (2 | ) | 24,339 | — | 13,317 | 11,022 | ||||||||||||||||||||
Certificates of deposit | 9,285 | 2 | (3 | ) | 9,284 | 480 | 6,642 | 2,162 | ||||||||||||||||||||
Commercial paper | 2,893 | 1 | — | 2,894 | — | 2,894 | — | |||||||||||||||||||||
Corporate notes and bonds | 13,211 | 9 | (4 | ) | 13,216 | — | 7,508 | 5,708 | ||||||||||||||||||||
Subtotal | 49,728 | 14 | (9 | ) | 49,733 | 480 | 30,361 | 18,892 | ||||||||||||||||||||
Total | $ | 93,354 | $ | 14 | $ | (9 | ) | $ | 93,359 | $ | 44,106 | $ | 30,361 | $ | 18,892 | |||||||||||||
There were no transfers between Level 1, Level 2 or Level 3 securities in the year ended December 29, 2012. |
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 12 Months Ended | ||||||||||||
Dec. 28, 2013 | |||||||||||||
Equity [Abstract] | ' | ||||||||||||
Fair Value of Stock Options | ' | ||||||||||||
The Company uses the Black-Scholes valuation model to calculate the fair value of stock options. The fair value of stock options was estimated at the grant date using the following weighted-average assumptions: | |||||||||||||
Years Ended | |||||||||||||
December 28, | December 29, | December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||||
Expected term (years) | 5 | 5 | 5.24 | ||||||||||
Risk-free interest rate | 0.8 | % | 0.72 | % | 1.26 | % | |||||||
Dividend rate | — | — | — | ||||||||||
Volatility | 61 | % | 62 | % | 61 | % | |||||||
Forfeiture rate | 3 | % | 3 | % | 3 | % | |||||||
Estimated fair value per stock option | $ | 5.26 | $ | 8.37 | $ | 4.47 | |||||||
Summary of Activity Related to Company's Stock Options | ' | ||||||||||||
The following summarizes activity related to the Company’s stock options under the 2004 Plan and 2012 Plan at December 28, 2013: | |||||||||||||
Options | Weighted-Average | Aggregate | Weighted-Average | ||||||||||
Outstanding | Exercise Price | Intrinsic Value | Remaining | ||||||||||
Contractual Term | |||||||||||||
(Years) | |||||||||||||
Outstanding at December 25, 2010 | 6,135 | $ | 2.86 | $ | 37,360 | 7.04 | |||||||
Granted | 1,349 | 9.69 | |||||||||||
Exercised | (105 | ) | 1.84 | ||||||||||
Forfeited | (139 | ) | 5.94 | ||||||||||
Outstanding at December 31, 2011 | 7,240 | $ | 4.11 | $ | 34,493 | 6.68 | |||||||
Granted | 903 | 15.98 | |||||||||||
Exercised | (432 | ) | 1.07 | ||||||||||
Forfeited | (109 | ) | 8.49 | ||||||||||
Outstanding at December 29, 2012 | 7,602 | $ | 5.61 | $ | 69,449 | 6.35 | |||||||
Granted | 1,862 | 10.27 | |||||||||||
Exercised | (857 | ) | 2.13 | ||||||||||
Forfeited | (380 | ) | 12.52 | ||||||||||
Outstanding at December 28, 2013 | 8,227 | $ | 6.71 | $ | 19,870 | 6.27 | |||||||
Vested and expected to vest at December 28, 2013 | 8,076 | $ | 6.63 | $ | 19,870 | 6.22 | |||||||
Exercisable at December 28, 2013 | 5,023 | $ | 4.15 | $ | 19,805 | 4.76 | |||||||
Stock-Based Compensation Expense Recognized | ' | ||||||||||||
Total stock-based compensation expense recognized during the years ended December 28, 2013, December 29, 2012, and December 31, 2011 was comprised of the following: | |||||||||||||
Years Ended | |||||||||||||
December 28, | December 29, | December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||||
Cost of net revenue | $ | 883 | $ | 588 | $ | 431 | |||||||
Research and development | 2,097 | 1,419 | 762 | ||||||||||
Selling, general and administrative | 3,635 | 2,430 | 1,891 | ||||||||||
$ | 6,615 | $ | 4,437 | $ | 3,084 | ||||||||
Common Stock Reserved for Future Issuance | ' | ||||||||||||
The following common stock is reserved for future issuance at December 28, 2013 and December 29, 2012: | |||||||||||||
December 28, | December 29, | ||||||||||||
2013 | 2012 | ||||||||||||
Common stock warrants | 2 | 2 | |||||||||||
Stock awards issued and outstanding | 8,227 | 7,602 | |||||||||||
Authorized for grants under the 2012 Plan and 2012 ESPP | 3,787 | 3,996 | |||||||||||
12,016 | 11,600 | ||||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||||
Dec. 28, 2013 | ||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||
Income (Loss) Before Income Tax | ' | |||||||||||
Income (loss) before income tax consisted of the following for the years ended: | ||||||||||||
December 28, | December 29, | December 31, | ||||||||||
2013 | 2012 | 2011 | ||||||||||
Domestic | $ | (4,404 | ) | $ | 6,946 | $ | (9,849 | ) | ||||
Foreign | 420 | 238 | 363 | |||||||||
Income (loss) before income taxes | $ | (3,984 | ) | $ | 7,184 | $ | (9,486 | ) | ||||
Provision for Income Taxes | ' | |||||||||||
The provision (benefit) for income taxes is as follows for the years ended: | ||||||||||||
December 28, | December 29, | December 31, | ||||||||||
2013 | 2012 | 2011 | ||||||||||
Current (benefit) provision: | ||||||||||||
Federal | $ | (81 | ) | $ | (300 | ) | $ | 20 | ||||
State | (32 | ) | 49 | — | ||||||||
Foreign | 137 | 141 | 175 | |||||||||
Total current | 24 | (110 | ) | 195 | ||||||||
Deferred provision: | ||||||||||||
Federal | — | — | — | |||||||||
State | — | — | — | |||||||||
Foreign | 43 | 22 | 1 | |||||||||
Total deferred | 43 | 22 | 1 | |||||||||
Total income tax provision (benefit) | $ | 67 | $ | (88 | ) | $ | 196 | |||||
Reconciliation of Federal Statutory Rate to Effective Rate | ' | |||||||||||
A reconciliation of the federal statutory rate to the effective rate is as follows: | ||||||||||||
December 28, | December 29, | December 31, | ||||||||||
2013 | 2012 | 2011 | ||||||||||
Income tax provision (benefit) on earnings at federal statutory rate | (35.0 | )% | 35 | % | (35.0 | )% | ||||||
State tax provision (benefit), net of federal benefit | 0.9 | 3.2 | (2.3 | ) | ||||||||
Federal and state tax credits | (74.6 | ) | (8.1 | ) | (15.8 | ) | ||||||
Change in valuation allowance | 116.2 | (47.9 | ) | 55.2 | ||||||||
Stock-based compensation | (7.9 | ) | 4.1 | 4.2 | ||||||||
Valuation of warrants | — | 3.1 | (0.1 | ) | ||||||||
Deemed repatriation of foreign earnings | — | 3.6 | — | |||||||||
Nondeductible expenses and other permanent differences, net | 2.1 | 5.8 | (4.1 | ) | ||||||||
Income tax provision (benefit) | 1.7 | % | (1.2 | )% | 2.1 | % | ||||||
Components of Company's Deferred Tax Assets | ' | |||||||||||
The components of the Company’s deferred tax assets and liabilities are summarized as follows: | ||||||||||||
December 28, | December 29, | |||||||||||
2013 | 2012 | |||||||||||
Deferred tax assets: | ||||||||||||
Net operating loss carryforwards | $ | 55,010 | $ | 55,758 | ||||||||
Research tax credit carryforwards | 10,177 | 7,232 | ||||||||||
Accrued expenses and reserves | 9,559 | 6,378 | ||||||||||
Foreign deferred tax assets | — | 12 | ||||||||||
Total deferred tax assets | 74,746 | 69,380 | ||||||||||
Deferred tax liabilities: | ||||||||||||
Depreciation | (3,669 | ) | (2,918 | ) | ||||||||
Foreign deferred tax liabilities | (32 | ) | — | |||||||||
Total deferred tax liabilities | (3,701 | ) | (2,918 | ) | ||||||||
Less valuation allowance | (71,077 | ) | (66,450 | ) | ||||||||
Net deferred tax asset (liability) | $ | (32 | ) | $ | 12 | |||||||
Unrecognized Tax Benefits | ' | |||||||||||
The following table summarizes the activity related to the Company’s unrecognized tax benefits: | ||||||||||||
28-Dec-13 | 29-Dec-12 | 31-Dec-11 | ||||||||||
Balance at beginning of year | $ | 3,742 | $ | 2,035 | $ | 1,863 | ||||||
Increases (decreases) related to prior year tax positions | 861 | 1,621 | (5 | ) | ||||||||
Increases related to current year tax positions | 1,196 | 279 | 177 | |||||||||
Expirations of the statute of limitations for the assessment of taxes | (68 | ) | (193 | ) | — | |||||||
Balance at end of year | $ | 5,731 | $ | 3,742 | $ | 2,035 | ||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | |||
Dec. 28, 2013 | ||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||
Schedule of Future Minimum Rental Payments for Operating Leases | ' | |||
Annual future minimum obligations under operating leases and licensing agreements as of December 28, 2013, are as follows: | ||||
Fiscal years: | ||||
2014 | $ | 2,428 | ||
2015 | 1,366 | |||
2016 | 51 | |||
Total minimum lease payments | $ | 3,845 | ||
Restructuring_Tables
Restructuring (Tables) | 12 Months Ended | |||||||||||||||
Dec. 28, 2013 | ||||||||||||||||
Restructuring and Related Activities [Abstract] | ' | |||||||||||||||
Restructuring and Related Costs | ' | |||||||||||||||
The following table summarizes the restructuring activity and related accrual at December 28, 2013: | ||||||||||||||||
Balance at December 29, 2012 | Current Charges | Cash Payments | Balance at December 28, 2013 | |||||||||||||
Employee termination benefits | $ | — | $ | 636 | $ | (218 | ) | $ | 418 | |||||||
Lease and other contract termination costs | — | 73 | (35 | ) | 38 | |||||||||||
Total | $ | — | $ | 709 | $ | (253 | ) | $ | 456 | |||||||
Concentrations_and_Geographic_1
Concentrations and Geographic Information (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 28, 2013 | |||||||||||||||||||||
Risks and Uncertainties [Abstract] | ' | ||||||||||||||||||||
Customers that Exceeded 10% of Total Net Revenue | ' | ||||||||||||||||||||
Customers that exceeded 10% of total net revenue were as follows: | |||||||||||||||||||||
Years Ended | |||||||||||||||||||||
28-Dec-13 | 29-Dec-12 | December 25, | |||||||||||||||||||
2010 | |||||||||||||||||||||
Macnica | 69 | % | 72 | % | 48 | % | |||||||||||||||
Richardson | 11 | % | 11 | % | 16 | % | |||||||||||||||
Customers Whose Balance Represented Greater than 10% of Accounts Receivable | ' | ||||||||||||||||||||
Customers whose balance represented greater than 10% of accounts receivable were as follows: | |||||||||||||||||||||
28-Dec-13 | 29-Dec-12 | ||||||||||||||||||||
Macnica | 50 | % | 43 | % | |||||||||||||||||
Richardson | * | 14 | % | ||||||||||||||||||
* Less than 10% of accounts receivable for the respective period end | |||||||||||||||||||||
Net Revenue by Geographic Region | ' | ||||||||||||||||||||
Net revenue is allocated to the geographic region where the customer, or its business unit that makes the purchase is geographically based, or where the services were provided. Net revenue by geographic region was as follows: | |||||||||||||||||||||
Years Ended | |||||||||||||||||||||
28-Dec-13 | 29-Dec-12 | 31-Dec-11 | |||||||||||||||||||
United States | $ | 35,089 | 17 | % | $ | 34,489 | 17 | % | $ | 31,921 | 30 | % | |||||||||
Japan | 142,389 | 71 | 147,458 | 72 | 52,062 | 48 | |||||||||||||||
All others | 24,838 | 12 | 21,961 | 11 | 23,788 | 22 | |||||||||||||||
$ | 202,316 | 100 | % | $ | 203,908 | 100 | % | $ | 107,771 | 100 | % | ||||||||||
Quarterly_Financial_Data_Unaud1
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended | |||||||||||||||
Dec. 28, 2013 | ||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | |||||||||||||||
Unaudited Quarterly Financial Data | ' | |||||||||||||||
Our quarterly results of operations for these periods are not necessarily indicative of future results of operations. | ||||||||||||||||
Net | Gross | Net | Diluted Net | |||||||||||||
Revenue | Profit | Income | Income | |||||||||||||
(Loss) | (Loss) | |||||||||||||||
Per Share * | ||||||||||||||||
Year Ended December 28, 2013 | ||||||||||||||||
Fourth Quarter | $ | 43,324 | $ | 15,607 | $ | (6,828 | ) | $ | (0.21 | ) | ||||||
Third Quarter | 60,002 | 25,253 | 4,433 | 0.12 | ||||||||||||
Second Quarter | 52,365 | 20,719 | (448 | ) | (0.01 | ) | ||||||||||
First Quarter | 46,625 | 19,817 | (1,208 | ) | (0.04 | ) | ||||||||||
Total | $ | 202,316 | $ | 81,396 | $ | (4,051 | ) | |||||||||
Year Ended December 29, 2012 | ||||||||||||||||
Fourth Quarter | $ | 62,999 | $ | 27,282 | $ | 5,627 | $ | 0.15 | ||||||||
Third Quarter | 60,575 | 25,015 | 4,713 | 0.1 | ||||||||||||
Second Quarter | 43,639 | 16,241 | (26 | ) | (0.01 | ) | ||||||||||
First Quarter | 36,695 | 11,235 | (3,042 | ) | (1.10 | ) | ||||||||||
Total | $ | 203,908 | $ | 79,773 | $ | 7,272 | ||||||||||
* The sum of the four quarters may not agree to the year total due to rounding within a quarter or the inclusion or exclusion of common stock equivalents in certain periods. |
Organization_and_Summary_of_Si2
Organization and Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 | Aug. 31, 2012 |
Accounting Policies [Abstract] | ' | ' | ' | ' |
Deferred offering costs | ' | ' | ' | $4,494 |
Advertising expense | $440 | $288 | $185 | ' |
Net_Income_Loss_per_Share_Deta
Net Income (Loss) per Share (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 28, 2013 | Sep. 28, 2013 | Jun. 29, 2013 | Mar. 30, 2013 | Dec. 29, 2012 | Sep. 29, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
Numerator: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income (loss) | ($6,828) | $4,433 | ($448) | ($1,208) | $5,627 | $4,713 | ($26) | ($3,042) | ($4,051) | $7,272 | ($9,682) |
Net income allocable to preferred stockholders | ' | ' | ' | ' | ' | ' | ' | ' | 0 | -4,515 | 0 |
Net income (loss) attributable to common stockholders | ' | ' | ' | ' | ' | ' | ' | ' | ($4,051) | $2,757 | ($9,682) |
Denominator: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average common shares outstanding | ' | ' | ' | ' | ' | ' | ' | ' | 32,296 | 14,303 | 2,737 |
Less: weighted average unvested shares of common stock subject to repurchase | ' | ' | ' | ' | ' | ' | ' | ' | -2 | -12 | -22 |
Weighted average common shares used in computing basic net income (loss) per share | ' | ' | ' | ' | ' | ' | ' | ' | 32,294 | 14,291 | 2,715 |
Weighted average effect of potentially dilutive securities: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock options | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 4,359 | 0 |
Common stock warrants | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 1 | 0 |
Weighted average common shares used in computing diluted net income (loss) per share | ' | ' | ' | ' | ' | ' | ' | ' | 32,294 | 18,651 | 2,715 |
Net income (loss) per share attributable to common stockholders: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basic, in dollars per share | ' | ' | ' | ' | ' | ' | ' | ' | ($0.13) | $0.19 | ($3.57) |
Diluted, in dollars per share | ($0.21) | $0.12 | ($0.01) | ($0.04) | $0.15 | $0.10 | ($0.01) | ($1.10) | ($0.13) | $0.15 | ($3.57) |
Historical outstanding anti-dilutive securities not included in diluted net income (loss) per share calculation: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Anti-dilutive securities not included in diluted net income (loss) per share calculation | ' | ' | ' | ' | ' | ' | ' | ' | 8,228 | 1,030 | 29,882 |
Common stock options | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Historical outstanding anti-dilutive securities not included in diluted net income (loss) per share calculation: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Anti-dilutive securities not included in diluted net income (loss) per share calculation | ' | ' | ' | ' | ' | ' | ' | ' | 8,227 | 1,030 | 7,240 |
Common stock warrants | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Historical outstanding anti-dilutive securities not included in diluted net income (loss) per share calculation: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Anti-dilutive securities not included in diluted net income (loss) per share calculation | ' | ' | ' | ' | ' | ' | ' | ' | 1 | 0 | 72 |
Preferred stock (as converted) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Historical outstanding anti-dilutive securities not included in diluted net income (loss) per share calculation: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Anti-dilutive securities not included in diluted net income (loss) per share calculation | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 22,365 |
Preferred stock warrants | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Historical outstanding anti-dilutive securities not included in diluted net income (loss) per share calculation: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Anti-dilutive securities not included in diluted net income (loss) per share calculation | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 205 |
Certain_Financial_Statement_In2
Certain Financial Statement Information - Inventories (Detail) (USD $) | Dec. 28, 2013 | Dec. 29, 2012 |
In Thousands, unless otherwise specified | ||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | ' |
Raw materials | $22,265 | $20,986 |
Work in progress | 22,100 | 15,494 |
Finished goods | 9,124 | 20,537 |
Net inventories | $53,489 | $57,017 |
Certain_Financial_Statement_In3
Certain Financial Statement Information - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | ' | ' |
Write downs to inventories | $5,725 | $1,920 | ' |
Reductions to the carrying value of inventory | 2,041 | ' | 3,355 |
Inventories held by third parties | 7,874 | 13,616 | ' |
Depreciation and amortization expense | $6,589 | $4,579 | $3,980 |
Certain_Financial_Statement_In4
Certain Financial Statement Information - Property and Equipment (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, Gross | $54,622 | $48,007 |
Less accumulated depreciation and amortization | -31,500 | -25,136 |
Property and equipment, Net | 23,122 | 22,871 |
Computer equipment and software | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, Gross | 6,390 | 5,171 |
Computer equipment and software | Minimum | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, Useful Life (Years) | '3 years | ' |
Computer equipment and software | Maximum | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, Useful Life (Years) | '5 years | ' |
Machinery and equipment | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, Useful Life (Years) | '5 years | ' |
Property and equipment, Gross | 40,427 | 33,753 |
Office furniture and equipment | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, Useful Life (Years) | '7 years | ' |
Property and equipment, Gross | 1,081 | 775 |
Leasehold improvements | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, Useful Life (Years) | '* | ' |
Property and equipment, Gross | 5,180 | 4,477 |
Construction in progress | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, Gross | $1,544 | $3,831 |
Accrued_Liabilities_Detail
- Accrued Liabilities (Detail) (USD $) | Dec. 28, 2013 | Dec. 29, 2012 |
In Thousands, unless otherwise specified | ||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | ' |
Accrued inventory purchases | $1,717 | $1,125 |
Accrued inventory repurchase obligation | 6,510 | 6,900 |
Accrued other | 3,602 | 4,647 |
Accrued liabilities | $11,829 | $12,672 |
Cash_and_Marketable_Securities
Cash and Marketable Securities' Cost, Unrealized Gains, Unrealized Losses and Fair Value by Significant Investment (Detail) (USD $) | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 | Dec. 25, 2010 |
In Thousands, unless otherwise specified | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' |
Cost | $63,172 | $93,354 | ' | ' |
Unrealized Gains | 17 | 14 | ' | ' |
Unrealized Losses | -17 | -9 | ' | ' |
Fair Value | 63,172 | 93,359 | ' | ' |
Cash and Cash Equivalents | 16,249 | 44,106 | 12,119 | 15,226 |
Short-term marketable securities | 28,035 | 30,361 | ' | ' |
Long-term marketable securities | 18,888 | 18,892 | ' | ' |
Cash | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' |
Cost | 7,023 | 24,703 | ' | ' |
Fair Value | 7,023 | 24,703 | ' | ' |
Cash and Cash Equivalents | 7,023 | 24,703 | ' | ' |
Level 1 | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' |
Cost | 9,226 | 18,923 | ' | ' |
Fair Value | 9,226 | 18,923 | ' | ' |
Cash and Cash Equivalents | 9,226 | 18,923 | ' | ' |
Level 1 | Money market funds | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' |
Cost | 9,226 | 18,923 | ' | ' |
Fair Value | 9,226 | 18,923 | ' | ' |
Cash and Cash Equivalents | 9,226 | 18,923 | ' | ' |
Level 2 | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' |
Cost | 46,923 | 49,728 | ' | ' |
Unrealized Gains | 17 | 14 | ' | ' |
Unrealized Losses | -17 | -9 | ' | ' |
Fair Value | 46,923 | 49,733 | ' | ' |
Cash and Cash Equivalents | 0 | 480 | ' | ' |
Short-term marketable securities | 28,035 | 30,361 | ' | ' |
Long-term marketable securities | 18,888 | 18,892 | ' | ' |
Level 2 | U.S. Agency securities | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' |
Cost | 22,929 | 24,339 | ' | ' |
Unrealized Gains | 4 | 2 | ' | ' |
Unrealized Losses | -3 | -2 | ' | ' |
Fair Value | 22,930 | 24,339 | ' | ' |
Short-term marketable securities | 15,929 | 13,317 | ' | ' |
Long-term marketable securities | 7,001 | 11,022 | ' | ' |
Level 2 | Certificates of deposit | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' |
Cost | 8,840 | 9,285 | ' | ' |
Unrealized Gains | 4 | 2 | ' | ' |
Unrealized Losses | -10 | -3 | ' | ' |
Fair Value | 8,834 | 9,284 | ' | ' |
Cash and Cash Equivalents | 0 | 480 | ' | ' |
Short-term marketable securities | 5,959 | 6,642 | ' | ' |
Long-term marketable securities | 2,875 | 2,162 | ' | ' |
Level 2 | Commercial paper | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' |
Cost | 998 | 2,893 | ' | ' |
Unrealized Gains | 0 | 1 | ' | ' |
Unrealized Losses | -1 | 0 | ' | ' |
Fair Value | 997 | 2,894 | ' | ' |
Short-term marketable securities | 997 | 2,894 | ' | ' |
Level 2 | Corporate notes and bonds | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' |
Cost | 14,156 | 13,211 | ' | ' |
Unrealized Gains | 9 | 9 | ' | ' |
Unrealized Losses | -3 | -4 | ' | ' |
Fair Value | 14,162 | 13,216 | ' | ' |
Short-term marketable securities | 5,150 | 7,508 | ' | ' |
Long-term marketable securities | $9,012 | $5,708 | ' | ' |
Financial_Instruments_Addition
Financial Instruments - Additional Information (Detail) (USD $) | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 28, 2013 | Dec. 28, 2013 |
In Thousands, unless otherwise specified | Investment | Minimum | Maximum | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' |
Long term marketable securities maturity period | ' | ' | '1 year | '2 years |
Number of investments in marketable securities under unrealized loss position | 39 | ' | ' | ' |
Fair value of Investments in marketable securities in unrealized loss position for less than 12 months | $23,361 | ' | ' | ' |
Unrealized Losses | $17 | $9 | ' | ' |
Stockholders_Equity_Additional
Stockholders' Equity - Additional Information (Detail) (USD $) | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | ||||
In Thousands, except Share data, unless otherwise specified | Aug. 31, 2012 | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 | 31-May-12 | Dec. 29, 2012 | Dec. 28, 2013 | Apr. 30, 2012 | Dec. 28, 2013 | Dec. 31, 2011 | 31-May-12 |
Series D1 convertible preferred stock | Series D1 convertible preferred stock | 2004 Plan | 2012 ESPP | Warrant | Warrant | Warrant | |||||
Interest Expense | Interest Expense | Series D1 convertible preferred stock | |||||||||
Class of Stock [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Convertible preferred stock outstanding converted into common stock | 22,412,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Warrants exercised in period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 80,000 |
Preferred stock issued upon exercise of warrants in period | ' | ' | ' | ' | ' | -8,912,000 | ' | ' | ' | ' | 19,000 |
Included in convertible preferred stock | ' | ' | ($1,285) | ' | $477 | ' | ' | ' | ' | ' | ' |
Changes in warrant liability recorded in interest expense | ' | ' | ' | ' | ' | ' | ' | ' | -634 | 36 | ' |
Authorized for issuance | ' | ' | ' | ' | ' | ' | 6,495,000 | 1,000,000 | ' | ' | ' |
Options vesting period, maximum | ' | ' | ' | ' | ' | ' | '4 years | ' | ' | ' | ' |
Options, expiration term | ' | ' | ' | ' | ' | ' | '10 years | ' | ' | ' | ' |
Annual vesting percentage | ' | ' | ' | ' | ' | ' | 25.00% | ' | ' | ' | ' |
Percentage of eligible compensation for purchase common stock at discount | ' | ' | ' | ' | ' | ' | ' | 15.00% | ' | ' | ' |
Purchase price of shares, lower rate | ' | ' | ' | ' | ' | ' | ' | 85.00% | ' | ' | ' |
Total intrinsic value of stock options exercised | ' | 6,926 | 5,491 | 757 | ' | ' | ' | ' | ' | ' | ' |
Stock options, unrecognized stock-based compensation | ' | $13,108 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock options, weighted-average recognition period of unrecognized stock-based compensation | ' | '2 years 1 month 6 days | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair_Value_of_Stock_Options_Es
Fair Value of Stock Options Estimated at Grant Date (Detail) (USD $) | 12 Months Ended | ||
Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 | |
Equity [Abstract] | ' | ' | ' |
Weighted-average expected term (years) | '5 years | '5 years | '5 years 2 months 27 days |
Risk-free interest rate | 0.80% | 0.72% | 1.26% |
Dividend rate | 0.00% | 0.00% | 0.00% |
Volatility | 61.00% | 62.00% | 61.00% |
Forfeiture rate | 3.00% | 3.00% | 3.00% |
Estimated weighted-average fair value per stock option | $5.26 | $8.37 | $4.47 |
Summary_of_Activity_Related_to
Summary of Activity Related to Company's Stock Options (Detail) (USD $) | 12 Months Ended | |||
In Thousands, except Per Share data, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 | Dec. 25, 2010 |
Number of shares | ' | ' | ' | ' |
Beginning Balance | 7,602 | 7,240 | 6,135 | ' |
Granted | 1,862 | 903 | 1,349 | ' |
Exercised | -857 | -432 | -105 | ' |
Forfeited | -380 | -109 | -139 | ' |
Ending Balance | 8,227 | 7,602 | 7,240 | 6,135 |
Vested and expected to vest at end of period | 8,076 | ' | ' | ' |
Exercisable at end of period | 5,023 | ' | ' | ' |
Average Exercise Price per Share | ' | ' | ' | ' |
Beginning Balance | $5.61 | $4.11 | $2.86 | ' |
Granted | $10.27 | $15.98 | $9.69 | ' |
Exercised | $2.13 | $1.07 | $1.84 | ' |
Forfeited | $12.52 | $8.49 | $5.94 | ' |
Ending Balance | $6.71 | $5.61 | $4.11 | $2.86 |
Vested and expected to vest at end of period | $6.63 | ' | ' | ' |
Exercisable at end of period | $4.15 | ' | ' | ' |
Aggregate Intrinsic Value Intrinsic Value | ' | ' | ' | ' |
Beginning Balance | $69,449 | $34,493 | $37,360 | ' |
Ending Balance | 19,870 | 69,449 | 34,493 | 37,360 |
Vested and expected to vest at end of period | 19,870 | ' | ' | ' |
Exercisable at end of period | $19,805 | ' | ' | ' |
Weighed Average Remaining Contractual Term in years | ' | ' | ' | ' |
Beginning balance | '6 years 3 months 7 days | '6 years 4 months 6 days | '6 years 8 months 5 days | '7 years 15 days |
Ending balance | '6 years 3 months 7 days | '6 years 4 months 6 days | '6 years 8 months 5 days | '7 years 15 days |
Vested and expected to vest at end of period | '6 years 2 months 19 days | ' | ' | ' |
Exercisable at end of period | '4 years 9 months 4 days | ' | ' | ' |
StockBased_Compensation_Expens
Stock-Based Compensation Expense Recognized (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Total stock-based compensation expense | $6,615 | $4,437 | $3,084 |
Cost of net revenue | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Total stock-based compensation expense | 883 | 588 | 431 |
Research and development | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Total stock-based compensation expense | 2,097 | 1,419 | 762 |
Selling, general and administrative | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Total stock-based compensation expense | $3,635 | $2,430 | $1,891 |
Stock_Reserved_for_Future_Issu
Stock Reserved for Future Issuance (Detail) | Dec. 28, 2013 | Dec. 29, 2012 |
In Thousands, unless otherwise specified | ||
Equity [Abstract] | ' | ' |
Common stock warrants | 2 | 2 |
Stock awards issued and outstanding | 8,227 | 7,602 |
Authorized for grants under the 2004 Plan, 2012 Plan, and 2012 ESPP | 3,787 | 3,996 |
Stock reserved for future issuance | 12,016 | 11,600 |
Income_Loss_Before_Income_Tax_
Income (Loss) Before Income Tax (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
Income Tax [Line Items] | ' | ' | ' |
Income (loss) before income taxes | ($3,984) | $7,184 | ($9,486) |
Domestic Tax Authority | ' | ' | ' |
Income Tax [Line Items] | ' | ' | ' |
Income (loss) before income taxes | -4,404 | 6,946 | -9,849 |
Foreign Tax Authority | ' | ' | ' |
Income Tax [Line Items] | ' | ' | ' |
Income (loss) before income taxes | $420 | $238 | $363 |
Provision_for_Income_Taxes_Det
Provision for Income Taxes (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
Current (benefit) provision: | ' | ' | ' |
Federal | ($81) | ($300) | $20 |
State | -32 | 49 | 0 |
Foreign | 137 | 141 | 175 |
Total current | 24 | -110 | 195 |
Deferred (benefit) provision: | ' | ' | ' |
Federal | 0 | 0 | 0 |
State | 0 | 0 | 0 |
Foreign | 43 | 22 | 1 |
Total deferred | 43 | 22 | 1 |
Total income tax provision (benefit) | $67 | ($88) | $196 |
Reconciliation_of_Federal_Stat
Reconciliation of Federal Statutory Rate to Effective Rate (Detail) | 12 Months Ended | ||
Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 | |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Income tax provision (benefit) on earnings at federal statutory rate | -35.00% | 35.00% | -35.00% |
State tax provision (benefit), net of federal benefit | 0.90% | 3.20% | -2.30% |
Federal and state tax credits | -74.60% | -8.10% | -15.80% |
Change in valuation allowance | 116.20% | -47.90% | 55.20% |
Stock-based compensation | -7.90% | 4.10% | 4.20% |
Valuation of warrants | 0.00% | 3.10% | -0.10% |
Deemed repatriation of foreign earnings | 0.00% | 3.60% | 0.00% |
Nondeductible expenses and other permanent differences, net | 2.10% | 5.80% | -4.10% |
Income tax provision (benefit) | 1.70% | -1.20% | 2.10% |
Components_of_Companys_Deferre
Components of Company's Deferred Tax Assets (Detail) (USD $) | Dec. 28, 2013 | Dec. 29, 2012 |
In Thousands, unless otherwise specified | ||
Deferred tax assets: | ' | ' |
Net operating loss carryforwards | $55,010 | $55,758 |
Research tax credit carryforwards | 10,177 | 7,232 |
Accrued expenses and reserves | 9,559 | 6,378 |
Foreign deferred tax assets | 0 | 12 |
Total deferred tax assets | 74,746 | 69,380 |
Deferred tax liabilities: | ' | ' |
Depreciation | -3,669 | -2,918 |
Foreign deferred tax liabilities | -32 | 0 |
Total deferred tax liabilities | -3,701 | -2,918 |
Less valuation allowance | -71,077 | -66,450 |
Net deferred tax asset | ($32) | $12 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
Income Tax [Line Items] | ' | ' | ' |
Federal net operating loss carryforwards | $147,545 | ' | ' |
State net operating loss carryforwards | 102,481 | ' | ' |
Net Operating Loss Carry Forwards Expire Period | 'The federal net loss carryforwards will expire between 2018 and 2031, unless previously utilized. The state net loss carryforwards will expire between 2014 and 2031, unless previously utilized | ' | ' |
Excess tax benefits | 1,654 | ' | ' |
Tax credit carryforwards expire period | 'The federal credits will begin to expire in 2024. The state research and development tax credit does not expire. | ' | ' |
Net operating loss carryforwards change in ownership minimum | 50.00% | ' | ' |
Net operating loss carryforwards testing period | '3 years | ' | ' |
Undistributed Earnings of Foreign Subsidiaries | 237 | ' | ' |
Unrecognized tax benefits that would not impact effective tax rate | ' | 68 | 261 |
Reversal of accrued interest, impact on effective tax rate | ' | 12 | ' |
Amount of interest and penalities recognized | 12 | 85 | 20 |
Undistributed earnings of foreign subsidiaries which taxes were recorded | 774 | 900 | ' |
Federal | ' | ' | ' |
Income Tax [Line Items] | ' | ' | ' |
Tax credit carryforwards | 7,226 | ' | ' |
State | ' | ' | ' |
Income Tax [Line Items] | ' | ' | ' |
Tax credit carryforwards | $9,934 | ' | ' |
Unrecognized_Tax_Benefits_Deta
Unrecognized Tax Benefits (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ' | ' | ' |
Balance at beginning of year | $3,742 | $2,035 | $1,863 |
Increases (decreases) related to prior year tax positions | 861 | 1,621 | -5 |
Increases related to current year tax positions | 1,196 | 279 | 177 |
Expirations of the statute of limitations for the assessment of taxes | -68 | -193 | 0 |
Balance at end of year | $5,731 | $3,742 | $2,035 |
Commitments_and_Contingencies_1
Commitments and Contingencies - Additional Information (Detail) (USD $) | 12 Months Ended | 12 Months Ended | |||||||
Dec. 28, 2013 | Dec. 29, 2012 | 31-May-13 | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 | Dec. 28, 2013 | Dec. 28, 2013 | Dec. 28, 2013 | |
claim | Accounts Receivable Financing | Office Space | Office Space | Office Space | LIBOR | LIBOR | LIBOR | ||
Minimum | Maximum | ||||||||
Debt and Capital Lease Obligations [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating lease future minimum annual payments for 2014 | $2,428,000 | ' | ' | $898,000 | ' | ' | ' | ' | ' |
Operating lease future minimum annual payments for 2015 | 1,366,000 | ' | ' | 953,000 | ' | ' | ' | ' | ' |
Operating lease and license expense | ' | ' | ' | 4,045,000 | 3,606,000 | 3,154,000 | ' | ' | ' |
Maximum line of credit availability | ' | ' | 25,000,000 | ' | ' | ' | ' | ' | ' |
Description of variable rate basis | ' | ' | ' | ' | ' | ' | 'LIBOR | ' | ' |
Interest rate basis spread | ' | ' | ' | ' | ' | ' | ' | 2.00% | 2.50% |
Maturity date | 31-Dec-15 | ' | ' | ' | ' | ' | ' | ' | ' |
Line of credit available | 19,178,000 | 14,414,000 | ' | ' | ' | ' | ' | ' | ' |
Loss Contingency, Monetary Penalty Per Violation, Maximum | 500 | ' | ' | ' | ' | ' | ' | ' | ' |
Loss Contingency, New Claims Filed, Number | 0 | ' | ' | ' | ' | ' | ' | ' | ' |
Loss Contingency Accrual | 0 | ' | ' | ' | ' | ' | ' | ' | ' |
Inventory purchase commitments | $12,345,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Annual_Future_Minimum_Obligati
Annual Future Minimum Obligations Under Operating Leases and Capital Leases (Detail) (USD $) | Dec. 28, 2013 |
In Thousands, unless otherwise specified | |
Commitments and Contingencies Disclosure [Abstract] | ' |
2014 | $2,428 |
2015 | 1,366 |
2016 | 51 |
Total minimum lease payments | $3,845 |
Supply_and_Prepayment_Agreemen1
Supply and Prepayment Agreement (Details) (USD $) | 3 Months Ended | 5 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 30, 2013 | Sep. 29, 2012 | Jul. 31, 2012 | Dec. 28, 2013 | Dec. 29, 2012 |
Payables and Accruals [Abstract] | ' | ' | ' | ' | ' |
Initial term of agreement | '18 months | ' | ' | ' | ' |
Proceeds to be paid | ' | $13,000 | $14,000 | ' | ' |
Deposits repaid under supply and prepayment agreement | ' | ' | ' | 12,084 | ' |
Customer deposits | ' | ' | ' | 916 | ' |
Balance received as prepayments on purchase orders from Macnica | ' | ' | ' | ' | 11,425 |
Deposits paid to suppliers for support production levels | ' | ' | ' | ' | 4,000 |
Deposit repayments from suppliers | ' | ' | ' | 3,755 | ' |
Remaining deposit to be collected | ' | ' | ' | $245 | ' |
Restructuring_Details
Restructuring (Details) (USD $) | 12 Months Ended | 0 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 28, 2013 | Dec. 28, 2013 | Dec. 28, 2013 | Dec. 28, 2013 | Dec. 28, 2013 | Jan. 30, 2014 | Jan. 30, 2014 |
Cost of net revenue | Selling, general and administrative | Employee termination benefits | Lease and other contract termination costs | Minimum | Maximum | ||
Subsequent Event [Member] | Subsequent Event [Member] | ||||||
Restructuring Reserve [Roll Forward] | ' | ' | ' | ' | ' | ' | ' |
Restructuring reserve, beginning balance | $0 | ' | ' | $0 | $0 | ' | ' |
Current Charges | 709 | 340 | 369 | 636 | 73 | ' | ' |
Cash Payments | -253 | ' | ' | -218 | -35 | ' | ' |
Restructuring reserve, ending balance | 456 | ' | ' | 418 | 38 | ' | ' |
Expected total charges resulting from restructuring plan | ' | ' | ' | ' | ' | $1,500 | $2,000 |
Employee_Benefits_Details
Employee Benefits (Details) | 12 Months Ended |
Dec. 28, 2013 | |
Postemployment Benefits [Abstract] | ' |
Minimum age of employee for defined contribution plan | '21 years |
Concentrations_and_Geographic_2
Concentrations and Geographic Information - Additional Information (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 |
Risks and Uncertainties [Abstract] | ' | ' |
Allowance for doubtful accounts | $100 | $100 |
Percentage of raw material supplied by vendors | 95.00% | 98.00% |
Customers_that_Exceeded_10_of_
Customers that Exceeded 10% of Total Net Revenue (Detail) | 12 Months Ended | ||
Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 | |
Macnica | ' | ' | ' |
Revenue [Line Items] | ' | ' | ' |
Net revenue, contribution by customers | 69.00% | 72.00% | 48.00% |
Richardson | ' | ' | ' |
Revenue [Line Items] | ' | ' | ' |
Net revenue, contribution by customers | 11.00% | 11.00% | 16.00% |
Customers_Whose_Balance_Repres
Customers Whose Balance Represented Greater Than 10% of Accounts Receivable (Detail) | 12 Months Ended | |
Dec. 28, 2013 | Dec. 29, 2012 | |
Macnica | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Percentage of accounts receivable | 50.00% | 43.00% |
Richardson | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Percentage of accounts receivable | ' | 14.00% |
Net_Revenue_by_Geographic_Regi
Net Revenue by Geographic Region (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 28, 2013 | Sep. 28, 2013 | Jun. 29, 2013 | Mar. 30, 2013 | Dec. 29, 2012 | Sep. 29, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
Geographic Reporting Disclosure [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net revenue | $43,324 | $60,002 | $52,365 | $46,625 | $62,999 | $60,575 | $43,639 | $36,695 | $202,316 | $203,908 | $107,771 |
Percentage of net revenue | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | 100.00% | 100.00% |
UNITED STATES | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Geographic Reporting Disclosure [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net revenue | ' | ' | ' | ' | ' | ' | ' | ' | 35,089 | 34,489 | 31,921 |
Percentage of net revenue | ' | ' | ' | ' | ' | ' | ' | ' | 17.00% | 17.00% | 30.00% |
JAPAN | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Geographic Reporting Disclosure [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net revenue | ' | ' | ' | ' | ' | ' | ' | ' | 142,389 | 147,458 | 52,062 |
Percentage of net revenue | ' | ' | ' | ' | ' | ' | ' | ' | 71.00% | 72.00% | 48.00% |
Other Countries | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Geographic Reporting Disclosure [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net revenue | ' | ' | ' | ' | ' | ' | ' | ' | $24,838 | $21,961 | $23,788 |
Percentage of net revenue | ' | ' | ' | ' | ' | ' | ' | ' | 12.00% | 11.00% | 22.00% |
Segment_Information_Additional
Segment Information - Additional Information (Detail) | 12 Months Ended |
Dec. 28, 2013 | |
Segment | |
Segment Reporting [Abstract] | ' |
Number of segments | 1 |
Unaudited_Quarterly_Financial_
Unaudited Quarterly Financial Data (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 28, 2013 | Sep. 28, 2013 | Jun. 29, 2013 | Mar. 30, 2013 | Dec. 29, 2012 | Sep. 29, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
Quarterly Financial Information Disclosure [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net revenue | $43,324 | $60,002 | $52,365 | $46,625 | $62,999 | $60,575 | $43,639 | $36,695 | $202,316 | $203,908 | $107,771 |
Gross Profit | 15,607 | 25,253 | 20,719 | 19,817 | 27,282 | 25,015 | 16,241 | 11,235 | 81,396 | 79,773 | 36,816 |
Net income (loss) | ($6,828) | $4,433 | ($448) | ($1,208) | $5,627 | $4,713 | ($26) | ($3,042) | ($4,051) | $7,272 | ($9,682) |
Diluted Net Income (Loss) Per Share, in dollars per share | ($0.21) | $0.12 | ($0.01) | ($0.04) | $0.15 | $0.10 | ($0.01) | ($1.10) | ($0.13) | $0.15 | ($3.57) |