Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 28, 2014 | Oct. 30, 2014 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'QUICKLOGIC CORPORATION | ' |
Entity Central Index Key | '0000882508 | ' |
Current Fiscal Year End Date | '--12-28 | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Document Type | '10-Q | ' |
Document Period End Date | 28-Sep-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Amendment Flag | 'false | ' |
Entity Common Stock, Shares Outstanding | ' | 55,859,141 |
Condensed_Unaudited_Consolidat
Condensed Unaudited Consolidated Balance Sheets (USD $) | Sep. 28, 2014 | Dec. 29, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $31,159 | $37,406 |
Accounts receivable, net of allowances for doubtful accounts of $0 in both periods | 1,747 | 3,261 |
Inventories | 6,878 | 4,136 |
Other current assets | 964 | 1,272 |
Total current assets | 40,748 | 46,075 |
Property and equipment, net | 2,889 | 2,840 |
Other assets | 228 | 211 |
TOTAL ASSETS | 43,865 | 49,126 |
Current liabilities: | ' | ' |
Revolving line of credit | 0 | 1,000 |
Trade payables | 1,724 | 3,578 |
Accrued liabilities | 1,839 | 3,519 |
Current portion of capital lease obligations | 223 | 177 |
Total current liabilities | 3,786 | 8,274 |
Long-term liabilities: | ' | ' |
Revolving line of credit | 1,000 | 0 |
Capital lease obligations, less current portion | 225 | 133 |
Other long-term liabilities | 64 | 121 |
Total liabilities | 5,075 | 8,528 |
Commitments and contingencies (see Note 12) | ' | ' |
Stockholders' equity: | ' | ' |
Preferred stock, $0.001 par value; 10,000 shares authorized; no shares issued and outstanding | 0 | 0 |
Common stock, $0.001 par value; 100,000 shares authorized; 55,859 and 53,788 shares issued and outstanding, respectively | 56 | 54 |
Additional paid-in capital | 237,500 | 230,373 |
Accumulated deficit | -198,766 | -189,829 |
Total stockholders' equity | 38,790 | 40,598 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $43,865 | $49,126 |
Condensed_Unaudited_Condensed_
Condensed Unaudited Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 28, 2014 | Dec. 29, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Current Assets: | ' | ' |
Allowance for doubtful accounts | $0 | $0 |
Stockholders' Equity: | ' | ' |
Preferred stock, par value (in dollars per share) | $0.00 | $0.00 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $0.00 | $0.00 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 55,859,000 | 53,788,000 |
Common stock, shares outstanding | 55,859,000 | 53,788,000 |
Condensed_Unaudited_Consolidat1
Condensed Unaudited Consolidated Statements of Operations (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, except Per Share data, unless otherwise specified | Sep. 28, 2014 | Sep. 29, 2013 | Sep. 28, 2014 | Sep. 29, 2013 | ||||
Income Statement [Abstract] | ' | ' | ' | ' | ||||
Revenue | $4,124 | [1] | $9,066 | [1] | $22,124 | [1] | $17,209 | [1] |
Cost of revenue | 2,361 | 6,037 | 13,287 | 11,210 | ||||
Gross profit | 1,763 | 3,029 | 8,837 | 5,999 | ||||
Operating expenses: | ' | ' | ' | ' | ||||
Research and development | 3,057 | 2,052 | 8,754 | 5,902 | ||||
Selling, general and administrative | 2,579 | 3,207 | 8,892 | 8,648 | ||||
Restructuring costs | 0 | -32 | 0 | 181 | ||||
Total operating expenses | 5,636 | 5,227 | 17,646 | 14,731 | ||||
Loss from operations | -3,873 | -2,198 | -8,809 | -8,732 | ||||
Gain on sale of TowerJazz Semiconductor Ltd. Shares | 0 | 0 | 0 | 181 | ||||
Interest expense | -34 | -8 | -67 | -37 | ||||
Interest income and other expense, net | -17 | -74 | -79 | -130 | ||||
Loss before income taxes | -3,924 | -2,280 | -8,955 | -8,718 | ||||
Provision for (benefit from) income taxes | 6 | -18 | -18 | 369 | ||||
Net loss | ($3,930) | ($2,262) | ($8,937) | ($9,087) | ||||
Net loss per share: | ' | ' | ' | ' | ||||
Basic (in dollars per share) | ($0.07) | ($0.05) | ($0.16) | ($0.20) | ||||
Diluted (in dollars per share) | ($0.07) | ($0.05) | ($0.16) | ($0.20) | ||||
Weighted average shares: | ' | ' | ' | ' | ||||
Basic (in shares) | 55,812 | 44,761 | 55,208 | 44,640 | ||||
Diluted (in shares) | 55,812 | 44,761 | 55,208 | 44,640 | ||||
[1] | For all periods presented: New products include all products manufactured on 180 nanometer or smaller semiconductor processes. Mature products include all products produced on semiconductor processes larger than 180 nanometers. |
Condensed_Unaudited_Consolidat2
Condensed Unaudited Consolidated Statements of Comprehensive Loss (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 28, 2014 | Sep. 29, 2013 | Sep. 28, 2014 | Sep. 29, 2013 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' |
Net loss | ($3,930) | ($2,262) | ($8,937) | ($9,087) |
Other comprehensive loss, net of tax: | ' | ' | ' | ' |
Unrealized loss on available-for-sale investments | 0 | 0 | 0 | 11 |
Total comprehensive loss | ($3,930) | ($2,262) | ($8,937) | ($9,076) |
Condensed_Unaudited_Consolidat3
Condensed Unaudited Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 28, 2014 | Sep. 29, 2013 |
Cash flows from operating activities: | ' | ' |
Net loss | ($8,937) | ($9,087) |
Adjustments to reconcile net loss to net cash used in operating activities: | ' | ' |
Depreciation and amortization | 1,129 | 952 |
Stock-based compensation | 1,750 | 1,067 |
Write-down of inventories | 96 | 379 |
Gain on sale of TowerJazz Semiconductor Ltd. Shares | 0 | -181 |
(Gains) losses on disposal of equipment | -2 | 27 |
Write-off of equipment | 5 | 3 |
Tax effect on other comprehensive income | 0 | 273 |
Allowance for doubtful accounts | 0 | -20 |
Changes in operating assets and liabilities: | ' | ' |
Accounts receivable | 1,514 | -3,733 |
Inventories | -2,838 | -202 |
Other assets | 291 | 350 |
Trade payables | -2,106 | 862 |
Accrued liabilities | -635 | 1,396 |
Other long-term liabilities | -57 | -27 |
Net cash used in operating activities | -9,790 | -7,941 |
Cash flows from investing activities: | ' | ' |
Capital expenditures for property and equipment | -525 | -1,207 |
Proceeds from sale of fixed assets | 2 | 0 |
Proceeds from sale of TowerJazz Semiconductor Ltd. Shares | 0 | 265 |
Net cash used in investing activities | -523 | -942 |
Cash flows from financing activities: | ' | ' |
Payment of debt and capital lease obligations | -268 | -182 |
Stock issuance cost | 0 | -70 |
Proceeds from debt obligations | 0 | 1,000 |
Net proceeds from issuance of common stock | 4,334 | 428 |
Net cash provided by financing activities | 4,066 | 1,176 |
Net (decrease) in cash and cash equivalents | -6,247 | -7,707 |
Cash and cash equivalents at beginning of period | 37,406 | 22,578 |
Cash and cash equivalents at end of period | 31,159 | 14,871 |
Supplemental schedule of non-cash investing and financing activities : | ' | ' |
Capital lease obligation to finance capital expenditures | 448 | 194 |
Purchase of equipment included in accounts payable | $33 | $123 |
The_Company_and_Basis_of_Prese
The Company and Basis of Presentation | 9 Months Ended |
Sep. 28, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
The Company and Basis of Presentation | ' |
The Company and Basis of Presentation | |
QuickLogic Corporation ("QuickLogic" or "the Company"), was founded in 1988 and reincorporated in Delaware in 1999. The Company develops and markets low-power programmable solutions that enable customers to add differentiated features and capabilities to their mobile, consumer and industrial products. The Company is a fabless semiconductor company that designs, markets and supports Customer Specific Standard Products, or CSSPs, Field Programmable Gate Arrays, or FPGAs, application solutions, associated design software and programming hardware. | |
The accompanying interim condensed consolidated financial statements are unaudited. In the opinion of management, these statements have been prepared in accordance with generally accepted accounting principles, or GAAP, and include all adjustments, consisting only of normal recurring adjustments, necessary to provide a fair statement of results for the interim periods presented. The Company recommends that these condensed consolidated financial statements be read in conjunction with the Company's Form 10-K for the year ended December 29, 2013. Operating results for the nine months ended September 28, 2014 are not necessarily indicative of the results that may be expected for the full year. | |
QuickLogic's fiscal year ends on the Sunday closest to December 31 and the fiscal quarters each end on the Sunday closest to the end of each calendar quarter. QuickLogic's third fiscal quarter for 2014 and for 2013 ended on Sunday, September 28, 2014 and September 29, 2013, respectively. | |
Liquidity | |
The Company has financed its operations and capital investments through sales of common stock, capital and operating leases, and bank lines of credit. As of September 28, 2014, the Company's principal sources of liquidity consisted of cash and cash equivalents of $31.2 million and $5.0 million in available credit under its revolving line of credit with Silicon Valley Bank. Effective June 30, 2014, the Company entered into a Third Amended and Restated Loan and Security Agreement with Silicon Valley Bank as amended by the First Amendment to the Third Amended and Restated Loan and Security Agreement, dated September 26, 2014 to extend the line of credit for two years through June 27, 2016. The Third Loan Agreement provides for committed loan advances of up to $6.0 million, subject to increase at the Company's election to up to $10.0 million. | |
The Company currently uses its cash to fund its capital expenditures and operating losses. Based on past performance and current expectations, the Company believes that its existing cash and cash equivalents, together with available financial resources from the revolving line of credit with Silicon Valley Bank will be sufficient to fund its operations and capital expenditures and provide adequate working capital for the next twelve months. | |
Over the longer term, the Company believes that its existing cash and cash equivalents, together with financial resources from its revolving line of credit with Silicon Valley Bank and its ability to sell additional shares to capital markets will be sufficient to satisfy its operations and capital expenditures. | |
The Company's liquidity is affected by many factors including, among others: the level of revenue and gross profit as a result of the cyclicality of the semiconductor industry; the conversion of design opportunities into revenue; market acceptance of existing and new products including CSSPs based on its ArcticLink® and PolarPro® solution platforms; fluctuations in revenue as a result of product end-of-life; fluctuations in revenue as a result of the stage in the product life cycle of its customers' products; costs of securing access to and availability of adequate manufacturing capacity; levels of inventories; wafer and finished goods purchase commitments; customer credit terms; the amount and timing of research and development expenditures; the timing of new product introductions; production volumes; product quality; sales and marketing efforts; the value and liquidity of our investment portfolio; changes in operating assets and liabilities; the ability to obtain or renew debt financing and to remain in compliance with the terms of existing credit facilities; the ability to raise funds from the sale of equity in the Company; the issuance and exercise of stock options and participation in the Company's employee stock purchase plan; and other factors related to the uncertainties of the industry and global economics. Accordingly, there can be no assurance that events in the future will not require the Company to seek additional capital or, if so required, that such capital will be available on terms acceptable to the Company. | |
Principles of Consolidation | |
The consolidated financial statements include the accounts of QuickLogic and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated. | |
Foreign Currency | |
The functional currency of the Company's non-U.S. operations is the U.S. dollar. Accordingly, all monetary assets and liabilities of these foreign operations are translated into U.S. dollars at current period-end exchange rates and non-monetary assets and related elements of expense are translated using historical exchange rates. Income and expense elements are translated to U.S. dollars using the average exchange rates in effect during the period. Gains and losses from the foreign currency transactions of these subsidiaries are recorded as interest income and other expense, net in the condensed unaudited consolidated statements of operations. | |
Uses of Estimates | |
The preparation of these consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities and the reported amounts of revenue and expenses during the period. Actual results could differ from those estimates, particularly in relation to revenue recognition, the allowance for doubtful accounts, sales returns, valuation of investments, valuation of long-lived assets, valuation of inventories including identification of excess quantities, market value and obsolescence, measurement of stock-based compensation awards, accounting for income taxes and estimating accrued liabilities. | |
Concentration of Risk | |
The Company's accounts receivable are denominated in U.S. dollars and are derived primarily from sales to customers located in North America, Asia Pacific, and Europe. The Company performs ongoing credit evaluations of its customers and generally does not require collateral. See Note 11 for information regarding concentrations associated with accounts receivable. | |
For the three months and nine months ended September 28, 2014, the Company generated 27% and 53%, respectively, of its total revenue from shipments to Samsung Electronics Co., Ltd. ("Samsung"). See Note 11 for information regarding concentrations associated with customers and distributors. |
Significant_Accounting_Policie
Significant Accounting Policies | 9 Months Ended |
Sep. 28, 2014 | |
Accounting Policies [Abstract] | ' |
Significant Accounting Policies | ' |
Significant Accounting Policies | |
During the nine months ended September 28, 2014, there were no changes in the Company's significant accounting policies from its disclosure in the Annual Report on Form 10-K for the year ended December 29, 2013. For a discussion of the significant accounting policies, please see the Annual Report on Form 10-K for the fiscal year ended December 29, 2013, filed with the Securities Exchange Commission, or SEC, on March 6, 2014. | |
New Accounting Pronouncements | |
In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (ASU 2014-09), which supersedes nearly all existing revenue recognition guidance under U.S. GAAP. The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration to which an entity expects to be entitled for those goods or services. ASU 2014-09 defines a five-step process to achieve this core principle and, in doing so, more judgment and estimates may be required within the revenue recognition process than are required under existing GAAP. | |
The standard is effective for annual periods beginning after December 15, 2016, and interim periods therein, using either of the following transition methods: (i) a full retrospective approach reflecting the application of the standard in each prior reporting period with the option to elect certain practical expedients, or (ii) a retrospective approach with the cumulative effect of initially adopting ASU 2014-09 recognized at the date of adoption (which includes additional footnote disclosures). The Company is currently evaluating the impact of our pending adoption of ASU 2014-09 on its consolidated financial statements and has not yet determined the method by which it will adopt the standard in 2017. | |
In August 2014, the FASB issued Accounting Standards Update No. 2014-15, Presentation of Financial Statements - Going Concern (Sub Topic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern(ASU 2014-15). This ASU 2014-15 provides guidance to an entity’s management with principles and definitions that are intended to reduce diversity in the timing and content of disclosures that are currently commonly provided by entities today in the financial statement footnotes. This ASU 2014-15 is effective for annual periods ending after December 15, 2016, and interim periods within annual periods beginning after December 15, 2016. Early application is permitted for annual or interim reporting periods for which the financial statements have not previously been issued. The Company is currently evaluating the impact of ASU 2014-15 on its consolidated financial statements and footnote disclosures. |
Net_Loss_Per_Share
Net Loss Per Share | 9 Months Ended |
Sep. 28, 2014 | |
Earnings Per Share [Abstract] | ' |
Net Loss Per Share | ' |
Net Loss Per Share | |
Basic loss per share is computed by dividing net loss available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted net income (loss) per share was computed using the weighted average number of common shares outstanding during the period plus potentially dilutive common shares outstanding during the period under the treasury stock method. In computing diluted net income (loss) per share, the weighted average stock price for the period is used in determining the number of shares assumed to be purchased from the exercise of stock options and warrants. | |
The following shares were not included in the calculation of diluted net loss per share for the three months and nine months ended September 28, 2014 and September 29, 2013: (i) 6.6 million and 7.3 million of common shares associated with equity awards outstanding and the estimated number of shares to be purchased under the current offering period of the 2009 Employee Stock Purchase Plan, respectively, and (ii) warrants to purchase up to 4.2 million shares of common stock. These shares were not included as they were considered antidilutive due to the net loss the Company experienced during these periods. |
Balance_Sheet_Components
Balance Sheet Components | 9 Months Ended | |||||||
Sep. 28, 2014 | ||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | |||||||
Balance Sheet Components | ' | |||||||
Balance Sheet Components | ||||||||
As of | ||||||||
September 28, | December 29, | |||||||
2014 | 2013 | |||||||
(in thousands) | ||||||||
Inventories: | ||||||||
Raw materials | $ | — | $ | 19 | ||||
Work-in-process | 1,133 | 1,343 | ||||||
Finished goods | 5,745 | 2,774 | ||||||
$ | 6,878 | $ | 4,136 | |||||
Other current assets: | ||||||||
Prepaid expenses | $ | 880 | $ | 845 | ||||
Other | 84 | 427 | ||||||
$ | 964 | $ | 1,272 | |||||
Property and equipment: | ||||||||
Equipment | $ | 13,883 | $ | 13,294 | ||||
Software | 3,332 | 3,349 | ||||||
Furniture and fixtures | 710 | 710 | ||||||
Leasehold improvements | 646 | 640 | ||||||
18,571 | 17,993 | |||||||
Accumulated depreciation and amortization | (15,682 | ) | (15,153 | ) | ||||
$ | 2,889 | $ | 2,840 | |||||
Accrued liabilities: | ||||||||
Employee related accruals | $ | 1,452 | $ | 2,821 | ||||
Other | 387 | 698 | ||||||
$ | 1,839 | $ | 3,519 | |||||
Obligations
Obligations | 9 Months Ended | |||||||
Sep. 28, 2014 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Obligations | ' | |||||||
Obligations | ||||||||
As of | ||||||||
September 28, | December 29, | |||||||
2014 | 2013 | |||||||
(in thousands) | ||||||||
Debt and capital lease obligations: | ||||||||
Revolving line of credit | $ | 1,000 | $ | 1,000 | ||||
Capital leases | 448 | 310 | ||||||
1,448 | 1,310 | |||||||
Current portion of debt and capital lease obligations | (223 | ) | (1,177 | ) | ||||
Long term portion of capital lease obligations | $ | 1,225 | $ | 133 | ||||
Revolving Line of Credit | ||||||||
The Company has entered into the Third Loan Agreement. The terms of the Third Loan Agreement include a $6.0 million revolving line of credit available through June 27, 2016. Upon each advance, the Company can elect a fixed interest rate, which is the prime rate plus the prime rate margin, or a fixed rate, which is LIBOR plus the LIBOR rate margin. During the third quarter of 2014, the Company had $1.0 million of revolving debt outstanding with an interest rate of 3.75%. | ||||||||
Silicon Valley Bank has a first priority security interest in substantially all of the Company's tangible and intangible assets to secure any outstanding amounts under the Third Loan Agreement. Under the terms of the Third Loan Agreement, the Company must maintain a minimum tangible net worth of at least $15 million, an adjusted quick ratio of 2-to-1 and a minimum unrestricted cash or cash equivalents balance of at least $8 million. The Third Loan Agreement also has certain restrictions including, among others, restrictions on the incurrence of other indebtedness, the maintenance of depository accounts, the disposition of assets, mergers, acquisitions, investments, the granting of liens, cash balances with subsidiaries and the payment of dividends. The Company was in compliance with the financial covenants of the Third Loan Agreement as of the end of the current reporting period. | ||||||||
Capital Leases | ||||||||
In July 2014, the Company leased design software under a 41 month capital lease at an imputed interest rate of 3.15% per annum. Terms of the agreement require the Company to make payments of principal and interest of $42,000 in August 2014, $16,000 in December 2014, $58,000 in January 2016 and $58,000 in January 2017. The total payments for the lease will be $174,000. As of September 28, 2014, $126,000 was outstanding under this capital lease, of which $15,000 was classified as a current liability. | ||||||||
In May 2014, the Company leased design software under a three-year capital lease at an imputed interest rate of 4.80% per annum. Terms of the agreement require the Company to make annual payments of approximately $84,000 through April 2016, for a total of $252,000. As of September 28, 2014, $157,000 was outstanding under the capital lease, of which $77,000 was classified as a current liability. | ||||||||
In December 2013, the Company leased design software under a two-year capital lease at an imputed interest rate of 4.34% per annum. Terms of the agreement require the Company to make quarterly payments of approximately $34,000 through September 2015, for a total of $273,000. As of September 28, 2014, $165,000 was outstanding under the capital lease, of which $131,000 was classified as a current liability. |
Fair_Value_Measurements
Fair Value Measurements | 9 Months Ended | |||||||||||||||||||||||||||||||
Sep. 28, 2014 | ||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||||||||||||||||||
Fair Value Measurements | ' | |||||||||||||||||||||||||||||||
Fair Value Measurements | ||||||||||||||||||||||||||||||||
Pursuant to the accounting guidance for fair value measurements and its subsequent updates, fair value is defined as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Company considers the principal or most advantageous market and it considers assumptions that market participants would use when pricing the asset or liability. | ||||||||||||||||||||||||||||||||
The accounting guidance for fair value measurement also specifies a hierarchy of valuation techniques based upon whether the inputs to those valuation techniques reflect assumptions other market participants would use based upon market data obtained from independent sources (observable inputs) or reflect the company's own assumptions of market participant valuation (unobservable inputs). The fair value hierarchy consists of the following three levels: | ||||||||||||||||||||||||||||||||
• | Level 1 – Inputs are quoted prices in active markets for identical assets or liabilities. | |||||||||||||||||||||||||||||||
• | Level 2 – Inputs are quoted prices for similar assets or liabilities in an active market, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable and market-corroborated inputs which are derived principally from or corroborated by observable market data. | |||||||||||||||||||||||||||||||
• | Level 3 – Inputs are derived from valuation techniques in which one or more significant inputs or value drivers are unobservable. | |||||||||||||||||||||||||||||||
The following table presents the Company's financial assets that are measured at fair value on a recurring basis as of September 28, 2014 and December 29, 2013, consistent with the fair value hierarchy provisions of the authoritative guidance (in thousands): | ||||||||||||||||||||||||||||||||
As of September 28, 2014 | As of December 29, 2013 | |||||||||||||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||
Money market funds (1) | $ | 29,949 | $ | — | $ | 29,949 | $ | — | $ | 35,812 | $ | 35,812 | $ | — | $ | — | ||||||||||||||||
Total assets | $ | 29,949 | $ | — | $ | 29,949 | $ | — | $ | 35,812 | $ | 35,812 | $ | — | $ | — | ||||||||||||||||
_________________ | ||||||||||||||||||||||||||||||||
(1) Money market funds are presented as a part of cash and cash equivalents on the accompanying consolidated balance sheets as of September 28, 2014 and December 29, 2013. |
Stockholders_Equity
Stockholders' Equity | 9 Months Ended |
Sep. 28, 2014 | |
Stockholders' Equity Attributable to Parent [Abstract] | ' |
Stockholders' Equity | ' |
Stockholders' Equity | |
Common and Preferred Stock | |
The Company is authorized to issue 100 million shares of common stock and has 10 million shares of authorized but unissued shares of preferred stock. Without any further vote or action by the Company's stockholders, the Board of Directors has the authority to determine the powers, preferences, rights, qualifications, limitations or restrictions granted to or imposed upon any wholly unissued shares of undesignated preferred stock. | |
Issuance of Common Stock and Warrants | |
On July 31, 2013, the Company filed a shelf registration statement on Form S-3 under which the Company may, from time to time, sell securities in one or more offerings up to a total dollar amount of $40.0 million. The Company's shelf registration statement was declared effective on August 30, 2013 and expires in August 2016. | |
In November 2013, the Company issued an aggregate of 8,740,000 shares of common stock, $0.001 par value, in an underwritten public offering at a price of $2.90 per share. The Company received net proceeds from the offering of approximately $23.1 million, net of underwriter's commission and other offering expenses of $2.2 million. | |
In June 2012, the Company issued an aggregate of 5,122,000 shares of common stock and warrants to purchase up to an aggregate of 2,304,900 shares of common stock in a confidentially marketed underwritten offering. The common stock and warrants were issued in units (the “Units”), with each Unit consisting of (i) one share of common stock and (ii) a warrant to purchase 0.45 of a share of common stock, at a price of $2.50 per Unit. The Company received total net proceeds from the offering of $11.9 million, net of underwriting discounts and other offering expenses of $929,000 | |
The warrants are exercisable any time for a period of 60 months from the date of issuance on June 6, 2012, and are exercisable at a price of $2.98 per share. The Company allocated the proceeds between the common stock and the warrants based on the relative fair value of each on the date of issuance. The estimated grant date fair value was $0.97 per warrant and was calculated based on the following assumptions used in the Black-Scholes model: expected term of 5 years, risk-free interest rate of 0.89%, expected volatility of 62.18% and expected dividend of zero. |
Employee_Stock_Plans
Employee Stock Plans | 9 Months Ended |
Sep. 28, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' |
Employee Stock Plans | ' |
Employee Stock Plans | |
1999 Stock Plan | |
The 1999 Stock Plan, or 1999 Plan, provided for the issuance of incentive and non-qualified options, restricted stock units and restricted stock. Equity awards granted under the 1999 Plan have a term of up to ten years. Options typically vest at a rate of 25% one year after the vesting commencement date, and one forty-eighth for each month of service thereafter. In March 2009, the Board adopted the 2009 Stock Plan, which was approved by the Company's stockholders on April 22, 2009. Effective April 22, 2009, no further stock options may be granted under the 1999 Plan. | |
2009 Stock Plan | |
The 2009 Stock Plan, or 2009 Plan, was amended and restated by the Board of Directors in March 2011 and approved by the Company's stockholders on April 28, 2011 to, among other things, reserve an additional 1.5 million shares of common stock for issuance under the 2009 Plan. As of September 28, 2014, approximately 7.0 million shares were reserved for issuance under the 2009 Plan. Equity awards that are cancelled, forfeited or repurchased under the 1999 Plan become available for grant under the 2009 Plan, up to a maximum of an additional 7.5 million shares. Equity awards granted under the 2009 Plan have a term of up to ten years. Options typically vest at a rate of 25% one year after the vesting commencement date, and one forty-eighth for each month of service thereafter. The Company may implement different vesting schedules in the future with respect to any new equity awards. | |
Employee Stock Purchase Plan | |
The 2009 Employee Stock Purchase Plan, or 2009 ESPP, was adopted in March 2009. The Company has reserved 2.3 million shares for issuance under the 2009 ESPP. The 2009 ESPP provides for six month offering periods. Participants purchase shares through payroll deductions of up to 20% of an employee's total compensation (maximum of 20,000 shares per offering period). The 2009 ESPP permits the Board of Directors to determine, prior to each offering period, whether participants purchase shares at: (i) 85% of the fair market value of the common stock at the end of the offering period; or (ii) 85% of the lower of the fair market value of the common stock at the beginning or the end of an offering period. The Board of Directors has determined that, until further notice, future offering periods will be made at 85% of the lower of the fair market value of the common stock at the beginning or the end of an offering period. |
StockBased_Compensation
Stock-Based Compensation | 9 Months Ended | |||||||||||||||
Sep. 28, 2014 | ||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||||
Stock-Based Compensation | ' | |||||||||||||||
Stock-Based Compensation | ||||||||||||||||
The Company's equity incentive program is a broad-based, long-term retention program intended to attract, motivate, and retain talented employees as well as align stockholder and employee interests. The Company provides stock-based incentive compensation, or awards, to eligible employees and non-employee directors. Awards that may be granted under the program include non-qualified and incentive stock options, restricted stock units, or RSUs, performance-based restricted stock units, or PRSUs, and cash settlement of stock appreciation rights, or SARs. To date, awards granted under the program consist of stock options, RSUs and PRSUs. The majority of stock-based awards granted under the program vest over four years. Stock options granted under the program have a maximum contractual term of ten years. | ||||||||||||||||
The stock-based compensation expense included in the Company's consolidated financial statements for the three and nine months ended September 28, 2014 and September 29, 2013 was as follows (in thousands): | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 28, | September 29, | September 28, | September 29, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Cost of revenue | $ | 32 | $ | 24 | $ | 110 | $ | 76 | ||||||||
Research and development | 176 | 74 | 750 | 286 | ||||||||||||
Selling, general and administrative | 244 | 232 | 890 | 705 | ||||||||||||
Total costs and expenses | $ | 452 | $ | 330 | $ | 1,750 | $ | 1,067 | ||||||||
No stock-based compensation was capitalized during any period presented above. | ||||||||||||||||
Valuation Assumptions | ||||||||||||||||
The Company uses the Black-Scholes option pricing model to estimate the fair value of employee stock options and rights to purchase shares under the Company's 2009 ESPP. Using the Black-Scholes pricing model requires the Company to develop highly subjective assumptions including the expected term of awards, expected volatility of its stock, expected risk-free interest rate and expected dividend rate over the term of the award. The Company's expected term of awards assumption is based primarily on its historical experience with similar grants. The Company's expected stock price volatility assumption for both stock options and ESPP shares is based on the historical volatility of the Company's stock, using the daily average of the opening and closing prices and measured using historical data appropriate for the expected term. The risk-free interest rate assumption approximates the risk-free interest rate of a Treasury Constant Maturity bond with a maturity approximately equal to the expected term of the stock option or ESPP shares. This fair value is expensed over the requisite service period of the award. The fair value of RSUs and PRSUs is based on the closing price of the Company's common stock on the date of grant. Equity compensation awards which vest with service are expensed using the straight-line attribution method over the requisite service period. | ||||||||||||||||
In addition to the assumptions used in the Black-Scholes pricing model, the amended authoritative guidance requires that the Company recognize expense for awards ultimately expected to vest; therefore the Company is required to develop an estimate of the number of awards expected to be forfeited prior to vesting, or forfeiture rate. The forfeiture rate is estimated based on historical pre-vest cancellation experience and is applied to all share-based awards. | ||||||||||||||||
The following weighted average assumptions are included in the estimated fair value calculations for stock option grants: | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 28, | September 29, | September 28, | September 29, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Expected term (years) | 6.2 | 4.9 | 6.2 | 6.1 | ||||||||||||
Risk-free interest rate | 1.98 | % | 1.51 | % | 1.98 | % | 1.19 | % | ||||||||
Expected volatility | 55.1 | % | 62.62 | % | 55.1 | % | 60.53 | % | ||||||||
Expected dividend yield | — | — | — | — | ||||||||||||
The weighted average estimated fair value for options granted during the third quarter of 2014 and 2013 was $2.10 and $1.39 per option, respectively. The weighted average estimated fair value for options granted during the first nine months of 2014 and 2013 was $2.10 and $1.30, per option, respectively. As of September 28, 2014 and September 29, 2013, the fair value of unvested stock options, net of expected forfeitures, was approximately $1.9 million and $1.4 million, respectively. This unrecognized stock-based compensation expense is expected to be recorded over a weighted average period of 2.34 years. | ||||||||||||||||
Stock-Based Compensation Award Activity | ||||||||||||||||
The following table summarizes the activity in the shares available for grant under the 2009 Plan during the first nine months of 2014: | ||||||||||||||||
Shares | ||||||||||||||||
Available for Grant | ||||||||||||||||
(in thousands) | ||||||||||||||||
Balance at December 29, 2013 | 2,253 | |||||||||||||||
Options granted | (208 | ) | ||||||||||||||
Options forfeited or expired | 154 | |||||||||||||||
RSUs granted | (416 | ) | ||||||||||||||
PRSUs forfeited or expired | 24 | |||||||||||||||
Balance at September 28, 2014 | 1,807 | |||||||||||||||
Stock Options | ||||||||||||||||
The following table summarizes stock options outstanding and stock option activity under the 1999 Plan and the 2009 Plan, and the related weighted average exercise price, for the first nine months of 2014: | ||||||||||||||||
Number of Shares | Weighted | Weighted | Aggregate | |||||||||||||
Average Exercise | Average | Intrinsic Value | ||||||||||||||
Price | Remaining Term | |||||||||||||||
(in thousands) | (in years) | (in thousands) | ||||||||||||||
Balance outstanding at December 29, 2013 | 7,242 | $ | 2.62 | |||||||||||||
Granted | 208 | 3.84 | ||||||||||||||
Forfeited or expired | (154 | ) | 3.55 | |||||||||||||
Exercised | (1,687 | ) | 2.56 | |||||||||||||
Balance outstanding at September 28, 2014 | 5,609 | $ | 2.66 | 5.42 | $ | 3,237 | ||||||||||
Exercisable at September 28, 2014 | 4,461 | $ | 2.55 | 4.6 | $ | 2,992 | ||||||||||
Vested and expected to vest at September 28, 2014 | 5,404 | $ | 2.64 | 5.29 | $ | 3,199 | ||||||||||
The aggregate intrinsic value in the table above represents the total pretax intrinsic value, based on the Company's closing stock price of $3.03 as of the end of the Company's current reporting period, which would have been received by the option holders had all option holders exercised their options as of that date. | ||||||||||||||||
The total intrinsic value of options exercised during the first nine months of 2014 and 2013 was $3.7 million and $46,000, respectively. Total cash received from employees as a result of employee stock option exercises during the first nine months of 2014 and 2013 was approximately $4.3 million and $108,000 respectively. The Company settles employee stock option exercises with newly issued common shares. In connection with these exercises, there was no tax benefit realized by the Company due to the Company's current loss position. Total stock-based compensation related to stock options was $225,000 and $832,000 for the third quarter and first nine months ended September 28, 2014, respectively. | ||||||||||||||||
Restricted Stock Units and Performance-based Restricted Stock Units | ||||||||||||||||
The Company began issuing RSUs and PRSUs in the third quarter of 2007. RSUs entitle the holder to receive, at no cost, one common share for each restricted stock unit as it vests. The Company's policy is to withhold shares in settlement of employee tax withholding obligations upon the vesting of restricted stock units. The stock-based compensation related to RSUs and PRSUs was $154,000 and $2,000, respectively, for the third quarter of 2014. As of September 28, 2014, there was $515,000 in unrecognized compensation expense related to RSUs and PRSUs. | ||||||||||||||||
A summary of activity for the Company's RSUs and PRSUs for the nine months ended September 28, 2014 and information regarding RSUs and PRSUs outstanding and expected to vest as of September 28, 2014 is as follows: | ||||||||||||||||
RSUs & PRSUs Outstanding | ||||||||||||||||
Number of Shares | Weighted Average | |||||||||||||||
Grant Date Fair Value | ||||||||||||||||
(in thousands) | ||||||||||||||||
Nonvested at December 29, 2013 | 225 | $ | 3.17 | |||||||||||||
Granted | 416 | 4.47 | ||||||||||||||
Vested | (300 | ) | 4.76 | |||||||||||||
Forfeited | (24 | ) | — | |||||||||||||
Nonvested at September 28, 2014 | 317 | $ | 3.36 | |||||||||||||
Employee Stock Purchase Plan | ||||||||||||||||
The weighted average estimated fair value, as defined by the amended authoritative guidance, of rights issued pursuant to the Company's 2009 ESPP during the third quarter of 2014 and 2013 was $1.01 and $0.59 per right, respectively. | ||||||||||||||||
As of September 28, 2014, 1,002,000 shares remained available for issuance under the 2009 ESPP. For the third quarter of 2014, the Company recorded compensation expense related to the 2009 ESPP of $71,000. | ||||||||||||||||
The fair value of rights issued pursuant to the Company's 2009 ESPP was estimated on the commencement date of each offering period using the following weighted average assumptions: | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 28, | September 29, | September 28, | September 29, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Expected term (months) | 6.09 | 6.08 | 6.09 | 6.08 | ||||||||||||
Risk-free interest rate | 0.05 | % | 0.09 | % | 0.05 | % | 0.09 | % | ||||||||
Volatility | 49.17 | % | 39.03 | % | 49.17 | % | 39.03 | % | ||||||||
Dividend yield | — | — | — | — | ||||||||||||
As of September 28, 2014, the unrecognized stock-based compensation expense relating to the Company's 2009 ESPP was $37,000 and is expected to be recognized over a weighted average period of approximately 1.6 months. |
Income_Taxes
Income Taxes | 9 Months Ended |
Sep. 28, 2014 | |
Income Tax Disclosure [Abstract] | ' |
Income Taxes | ' |
Income Taxes | |
In the third quarter of 2014 and 2013, the Company recorded net income tax expense of $6,000 and a net tax benefit of $18,000, respectively. The income tax expense for the third quarter of 2014 relates to income taxes from its foreign operations which are cost-plus entities. The income tax benefit for the third quarter of 2013 resulted primarily from a reversal of a foreign tax accrual and its foreign operations which are cost-plus entities. | |
Based on the available objective evidence, management believes it is more likely than not that the Company's net deferred tax assets will not be fully realizable. Accordingly, with the exception of its foreign subsidiaries, the Company has provided a full valuation allowance against the associated deferred tax assets. The Company will continue to assess the realizability of the deferred tax assets in future periods. | |
The Company had approximately $47,000 and $79,000 of unrecognized tax benefits at September 28, 2014 and December 29, 2013, respectively, which, if recognized, would affect the Company's effective tax rate. The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. For the nine month period ended September 28, 2014, the Company accrued $4,000 of interest and penalties. As of September 28, 2014, the Company had approximately $21,000 of accrued interest and penalties related to uncertain tax positions. | |
Included in the balance of unrecognized tax benefits at September 28, 2014 is $16,000 related to tax positions, interest, and penalties for which it is reasonably possible that the statute of limitations will expire in various jurisdictions within the next twelve months. | |
The Company is no longer subject to U.S. federal, state and non-U.S. income tax audits by taxing authorities for fiscal years through 1997. |
Information_Concerning_Product
Information Concerning Product Lines, Geographic Information and Revenue Concentration | 9 Months Ended | |||||||||||||||
Sep. 28, 2014 | ||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||
Information Concerning Product Lines, Geographic Information and Revenue Concentration | ' | |||||||||||||||
Information Concerning Product Lines, Geographic Information and Revenue Concentration | ||||||||||||||||
The Company identifies its business segment based on business activities, management responsibility and geographic location. For all periods presented, the Company operated in a single reportable business segment. | ||||||||||||||||
The following is a breakdown of revenue by product line (in thousands): | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 28, | September 29, | September 28, | September 29, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Revenue by product line (1): | ||||||||||||||||
New products | $ | 2,236 | $ | 7,139 | $ | 15,634 | $ | 11,174 | ||||||||
Mature products | 1,888 | 1,927 | 6,490 | 6,035 | ||||||||||||
Total revenue | $ | 4,124 | $ | 9,066 | $ | 22,124 | $ | 17,209 | ||||||||
_________________ | ||||||||||||||||
(1) For all periods presented: New products include all products manufactured on 180 nanometer or smaller semiconductor processes. Mature products include all products produced on semiconductor processes larger than 180 nanometers. | ||||||||||||||||
The following is a breakdown of revenue by shipment destination (in thousands): | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 28, | September 29, | September 28, | September 29, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Revenue by geography: | ||||||||||||||||
Asia Pacific | $ | 2,341 | $ | 7,467 | $ | 16,179 | $ | 12,555 | ||||||||
North America | 1,084 | 1,025 | 3,158 | 3,292 | ||||||||||||
Europe | 699 | 574 | 2,787 | 1,362 | ||||||||||||
Total revenue | $ | 4,124 | $ | 9,066 | $ | 22,124 | $ | 17,209 | ||||||||
The following distributors and customers accounted for 10% or more of the Company's revenue for the periods presented: | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 28, | September 29, | September 28, | September 29, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Distributor "A" | 26 | % | 15 | % | 15 | % | 20 | % | ||||||||
Distributor "B" | 12 | % | * | * | * | |||||||||||
Customer "B" | 13 | % | * | * | 10 | % | ||||||||||
Customer "G" | 27 | % | 68 | % | 53 | % | 49 | % | ||||||||
* | Represents less than 10% of revenue for the period presented. | |||||||||||||||
The following distributors and customers accounted for 10% or more of the Company's accounts receivable as of the dates presented: | ||||||||||||||||
September 28, | December 29, | |||||||||||||||
2014 | 2013 | |||||||||||||||
Distributor "A" | 25 | % | 20 | % | ||||||||||||
Customer "G" | 53 | % | 71 | % | ||||||||||||
As of September 28, 2014, less than 10% of the Company's long-lived assets, including property and equipment and other assets, were located outside the United States. |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended | |||
Sep. 28, 2014 | ||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||
Commitments and Contingencies | ' | |||
Commitments and Contingencies | ||||
The Company's manufacturing suppliers require us to forecast wafer starts several months in advance. The Company is committed to take delivery of and pay for a portion of forecasted wafer volume. As of September 28, 2014 and December 29, 2013, the Company had $569,000 and $10.8 million, respectively, of outstanding commitments for the purchase of wafer and finished goods inventory. | ||||
The Company has obligations with certain suppliers for the purchase of other goods and services entered into in the ordinary course of business. As of September 28, 2014, total outstanding purchase obligations were $1.9 million, which are primarily due within the next twelve months. | ||||
The Company leases its primary facility under a non-cancelable operating lease that expires at the end of 2018. In addition, the Company rents development facilities in India as well as sales offices in Europe and Asia. Total rent expense, net of sublease income, for the third quarters of 2014 and 2013 was approximately $239,000 and $234,000, respectively. Total rent expense, net of sublease income, for the first nine months of 2014 and 2013 was approximately $710,000 and $726,000, respectively. | ||||
As of September 28, 2014, future minimum lease commitments under the Company's operating leases, excluding property taxes and insurance are as follows: | ||||
Operating | ||||
Leases | ||||
(in thousands) | ||||
Fiscal Years | ||||
2014 (Remaining 3 months) | $ | 226 | ||
2015 | 925 | |||
2016 | 847 | |||
2017 | 781 | |||
2018 | 799 | |||
$ | 3,578 | |||
Litigation
Litigation | 9 Months Ended |
Sep. 28, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Litigation | ' |
Litigation | |
From time to time, the Company may become involved in legal actions arising in the ordinary course of business including, but not limited to, intellectual property infringement and collection matters. Absolute assurance cannot be given that any such third party assertions will be resolved: (i) without costly litigation; (ii) in a manner that is not adverse to the Company's financial position, results of operations or cash flows; or (iii) without requiring royalty or other payments which may adversely impact gross profit. |
Subsequent_Event
Subsequent Event | 9 Months Ended |
Sep. 28, 2014 | |
Subsequent Events [Abstract] | ' |
Subsequent Event | ' |
Subsequent Events | |
Subsequent to September 28, 2014, the Company issued Purchase Orders to Staples, Inc. and also various other vendors for leasehold improvements at its headquarters for a total amount of approximately $469,000 |
The_Company_and_Basis_of_Prese1
The Company and Basis of Presentation (Policies) | 9 Months Ended |
Sep. 28, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Fiscal Period | ' |
QuickLogic's fiscal year ends on the Sunday closest to December 31 and the fiscal quarters each end on the Sunday closest to the end of each calendar quarter. QuickLogic's third fiscal quarter for 2014 and for 2013 ended on Sunday, September 28, 2014 and September 29, 2013, respectively. | |
Liquidity | ' |
Liquidity | |
The Company has financed its operations and capital investments through sales of common stock, capital and operating leases, and bank lines of credit. As of September 28, 2014, the Company's principal sources of liquidity consisted of cash and cash equivalents of $31.2 million and $5.0 million in available credit under its revolving line of credit with Silicon Valley Bank. Effective June 30, 2014, the Company entered into a Third Amended and Restated Loan and Security Agreement with Silicon Valley Bank as amended by the First Amendment to the Third Amended and Restated Loan and Security Agreement, dated September 26, 2014 to extend the line of credit for two years through June 27, 2016. The Third Loan Agreement provides for committed loan advances of up to $6.0 million, subject to increase at the Company's election to up to $10.0 million. | |
The Company currently uses its cash to fund its capital expenditures and operating losses. Based on past performance and current expectations, the Company believes that its existing cash and cash equivalents, together with available financial resources from the revolving line of credit with Silicon Valley Bank will be sufficient to fund its operations and capital expenditures and provide adequate working capital for the next twelve months. | |
Over the longer term, the Company believes that its existing cash and cash equivalents, together with financial resources from its revolving line of credit with Silicon Valley Bank and its ability to sell additional shares to capital markets will be sufficient to satisfy its operations and capital expenditures. | |
The Company's liquidity is affected by many factors including, among others: the level of revenue and gross profit as a result of the cyclicality of the semiconductor industry; the conversion of design opportunities into revenue; market acceptance of existing and new products including CSSPs based on its ArcticLink® and PolarPro® solution platforms; fluctuations in revenue as a result of product end-of-life; fluctuations in revenue as a result of the stage in the product life cycle of its customers' products; costs of securing access to and availability of adequate manufacturing capacity; levels of inventories; wafer and finished goods purchase commitments; customer credit terms; the amount and timing of research and development expenditures; the timing of new product introductions; production volumes; product quality; sales and marketing efforts; the value and liquidity of our investment portfolio; changes in operating assets and liabilities; the ability to obtain or renew debt financing and to remain in compliance with the terms of existing credit facilities; the ability to raise funds from the sale of equity in the Company; the issuance and exercise of stock options and participation in the Company's employee stock purchase plan; and other factors related to the uncertainties of the industry and global economics. Accordingly, there can be no assurance that events in the future will not require the Company to seek additional capital or, if so required, that such capital will be available on terms acceptable to the Company. | |
Principles of Consolidation | ' |
Principles of Consolidation | |
The consolidated financial statements include the accounts of QuickLogic and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated. | |
Foreign Currency | ' |
Foreign Currency | |
The functional currency of the Company's non-U.S. operations is the U.S. dollar. Accordingly, all monetary assets and liabilities of these foreign operations are translated into U.S. dollars at current period-end exchange rates and non-monetary assets and related elements of expense are translated using historical exchange rates. Income and expense elements are translated to U.S. dollars using the average exchange rates in effect during the period. Gains and losses from the foreign currency transactions of these subsidiaries are recorded as interest income and other expense, net in the condensed unaudited consolidated statements of operations. | |
Use of Estimates | ' |
Uses of Estimates | |
The preparation of these consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities and the reported amounts of revenue and expenses during the period. Actual results could differ from those estimates, particularly in relation to revenue recognition, the allowance for doubtful accounts, sales returns, valuation of investments, valuation of long-lived assets, valuation of inventories including identification of excess quantities, market value and obsolescence, measurement of stock-based compensation awards, accounting for income taxes and estimating accrued liabilities. | |
Concentration Risk | ' |
Concentration of Risk | |
The Company's accounts receivable are denominated in U.S. dollars and are derived primarily from sales to customers located in North America, Asia Pacific, and Europe. The Company performs ongoing credit evaluations of its customers and generally does not require collateral. See Note 11 for information regarding concentrations associated with accounts receivable. | |
New Accounting Pronouncements | ' |
New Accounting Pronouncements | |
In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (ASU 2014-09), which supersedes nearly all existing revenue recognition guidance under U.S. GAAP. The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration to which an entity expects to be entitled for those goods or services. ASU 2014-09 defines a five-step process to achieve this core principle and, in doing so, more judgment and estimates may be required within the revenue recognition process than are required under existing GAAP. | |
The standard is effective for annual periods beginning after December 15, 2016, and interim periods therein, using either of the following transition methods: (i) a full retrospective approach reflecting the application of the standard in each prior reporting period with the option to elect certain practical expedients, or (ii) a retrospective approach with the cumulative effect of initially adopting ASU 2014-09 recognized at the date of adoption (which includes additional footnote disclosures). The Company is currently evaluating the impact of our pending adoption of ASU 2014-09 on its consolidated financial statements and has not yet determined the method by which it will adopt the standard in 2017. | |
In August 2014, the FASB issued Accounting Standards Update No. 2014-15, Presentation of Financial Statements - Going Concern (Sub Topic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern(ASU 2014-15). This ASU 2014-15 provides guidance to an entity’s management with principles and definitions that are intended to reduce diversity in the timing and content of disclosures that are currently commonly provided by entities today in the financial statement footnotes. This ASU 2014-15 is effective for annual periods ending after December 15, 2016, and interim periods within annual periods beginning after December 15, 2016. Early application is permitted for annual or interim reporting periods for which the financial statements have not previously been issued. The Company is currently evaluating the impact of ASU 2014-15 on its consolidated financial statements and footnote disclosures. | |
Earnings Per Share | ' |
Basic loss per share is computed by dividing net loss available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted net income (loss) per share was computed using the weighted average number of common shares outstanding during the period plus potentially dilutive common shares outstanding during the period under the treasury stock method. In computing diluted net income (loss) per share, the weighted average stock price for the period is used in determining the number of shares assumed to be purchased from the exercise of stock options and warrants. | |
Valuation Assumptions | ' |
Valuation Assumptions | |
The Company uses the Black-Scholes option pricing model to estimate the fair value of employee stock options and rights to purchase shares under the Company's 2009 ESPP. Using the Black-Scholes pricing model requires the Company to develop highly subjective assumptions including the expected term of awards, expected volatility of its stock, expected risk-free interest rate and expected dividend rate over the term of the award. The Company's expected term of awards assumption is based primarily on its historical experience with similar grants. The Company's expected stock price volatility assumption for both stock options and ESPP shares is based on the historical volatility of the Company's stock, using the daily average of the opening and closing prices and measured using historical data appropriate for the expected term. The risk-free interest rate assumption approximates the risk-free interest rate of a Treasury Constant Maturity bond with a maturity approximately equal to the expected term of the stock option or ESPP shares. This fair value is expensed over the requisite service period of the award. The fair value of RSUs and PRSUs is based on the closing price of the Company's common stock on the date of grant. Equity compensation awards which vest with service are expensed using the straight-line attribution method over the requisite service period. | |
In addition to the assumptions used in the Black-Scholes pricing model, the amended authoritative guidance requires that the Company recognize expense for awards ultimately expected to vest; therefore the Company is required to develop an estimate of the number of awards expected to be forfeited prior to vesting, or forfeiture rate. The forfeiture rate is estimated based on historical pre-vest cancellation experience and is applied to all share-based awards. |
Balance_Sheet_Components_Table
Balance Sheet Components (Tables) | 9 Months Ended | |||||||
Sep. 28, 2014 | ||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | |||||||
Schedule of Supplemental Balance Sheet Disclosures | ' | |||||||
As of | ||||||||
September 28, | December 29, | |||||||
2014 | 2013 | |||||||
(in thousands) | ||||||||
Inventories: | ||||||||
Raw materials | $ | — | $ | 19 | ||||
Work-in-process | 1,133 | 1,343 | ||||||
Finished goods | 5,745 | 2,774 | ||||||
$ | 6,878 | $ | 4,136 | |||||
Other current assets: | ||||||||
Prepaid expenses | $ | 880 | $ | 845 | ||||
Other | 84 | 427 | ||||||
$ | 964 | $ | 1,272 | |||||
Property and equipment: | ||||||||
Equipment | $ | 13,883 | $ | 13,294 | ||||
Software | 3,332 | 3,349 | ||||||
Furniture and fixtures | 710 | 710 | ||||||
Leasehold improvements | 646 | 640 | ||||||
18,571 | 17,993 | |||||||
Accumulated depreciation and amortization | (15,682 | ) | (15,153 | ) | ||||
$ | 2,889 | $ | 2,840 | |||||
Accrued liabilities: | ||||||||
Employee related accruals | $ | 1,452 | $ | 2,821 | ||||
Other | 387 | 698 | ||||||
$ | 1,839 | $ | 3,519 | |||||
Obligations_Tables
Obligations (Tables) | 9 Months Ended | |||||||
Sep. 28, 2014 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Schedule of Obligations | ' | |||||||
As of | ||||||||
September 28, | December 29, | |||||||
2014 | 2013 | |||||||
(in thousands) | ||||||||
Debt and capital lease obligations: | ||||||||
Revolving line of credit | $ | 1,000 | $ | 1,000 | ||||
Capital leases | 448 | 310 | ||||||
1,448 | 1,310 | |||||||
Current portion of debt and capital lease obligations | (223 | ) | (1,177 | ) | ||||
Long term portion of capital lease obligations | $ | 1,225 | $ | 133 | ||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 9 Months Ended | |||||||||||||||||||||||||||||||
Sep. 28, 2014 | ||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||||||||||||||||||
Fair Value, Assets Measured on Recurring Basis | ' | |||||||||||||||||||||||||||||||
The following table presents the Company's financial assets that are measured at fair value on a recurring basis as of September 28, 2014 and December 29, 2013, consistent with the fair value hierarchy provisions of the authoritative guidance (in thousands): | ||||||||||||||||||||||||||||||||
As of September 28, 2014 | As of December 29, 2013 | |||||||||||||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||
Money market funds (1) | $ | 29,949 | $ | — | $ | 29,949 | $ | — | $ | 35,812 | $ | 35,812 | $ | — | $ | — | ||||||||||||||||
Total assets | $ | 29,949 | $ | — | $ | 29,949 | $ | — | $ | 35,812 | $ | 35,812 | $ | — | $ | — | ||||||||||||||||
_________________ | ||||||||||||||||||||||||||||||||
(1) Money market funds are presented as a part of cash and cash equivalents on the accompanying consolidated balance sheets as of September 28, 2014 and December 29, 2013. |
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 9 Months Ended | |||||||||||||||
Sep. 28, 2014 | ||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||||
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs | ' | |||||||||||||||
The stock-based compensation expense included in the Company's consolidated financial statements for the three and nine months ended September 28, 2014 and September 29, 2013 was as follows (in thousands): | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 28, | September 29, | September 28, | September 29, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Cost of revenue | $ | 32 | $ | 24 | $ | 110 | $ | 76 | ||||||||
Research and development | 176 | 74 | 750 | 286 | ||||||||||||
Selling, general and administrative | 244 | 232 | 890 | 705 | ||||||||||||
Total costs and expenses | $ | 452 | $ | 330 | $ | 1,750 | $ | 1,067 | ||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | ' | |||||||||||||||
The following weighted average assumptions are included in the estimated fair value calculations for stock option grants: | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 28, | September 29, | September 28, | September 29, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Expected term (years) | 6.2 | 4.9 | 6.2 | 6.1 | ||||||||||||
Risk-free interest rate | 1.98 | % | 1.51 | % | 1.98 | % | 1.19 | % | ||||||||
Expected volatility | 55.1 | % | 62.62 | % | 55.1 | % | 60.53 | % | ||||||||
Expected dividend yield | — | — | — | — | ||||||||||||
Schedule of Share-based Compensation, Activity | ' | |||||||||||||||
The following table summarizes the activity in the shares available for grant under the 2009 Plan during the first nine months of 2014: | ||||||||||||||||
Shares | ||||||||||||||||
Available for Grant | ||||||||||||||||
(in thousands) | ||||||||||||||||
Balance at December 29, 2013 | 2,253 | |||||||||||||||
Options granted | (208 | ) | ||||||||||||||
Options forfeited or expired | 154 | |||||||||||||||
RSUs granted | (416 | ) | ||||||||||||||
PRSUs forfeited or expired | 24 | |||||||||||||||
Balance at September 28, 2014 | 1,807 | |||||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity | ' | |||||||||||||||
The following table summarizes stock options outstanding and stock option activity under the 1999 Plan and the 2009 Plan, and the related weighted average exercise price, for the first nine months of 2014: | ||||||||||||||||
Number of Shares | Weighted | Weighted | Aggregate | |||||||||||||
Average Exercise | Average | Intrinsic Value | ||||||||||||||
Price | Remaining Term | |||||||||||||||
(in thousands) | (in years) | (in thousands) | ||||||||||||||
Balance outstanding at December 29, 2013 | 7,242 | $ | 2.62 | |||||||||||||
Granted | 208 | 3.84 | ||||||||||||||
Forfeited or expired | (154 | ) | 3.55 | |||||||||||||
Exercised | (1,687 | ) | 2.56 | |||||||||||||
Balance outstanding at September 28, 2014 | 5,609 | $ | 2.66 | 5.42 | $ | 3,237 | ||||||||||
Exercisable at September 28, 2014 | 4,461 | $ | 2.55 | 4.6 | $ | 2,992 | ||||||||||
Vested and expected to vest at September 28, 2014 | 5,404 | $ | 2.64 | 5.29 | $ | 3,199 | ||||||||||
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity | ' | |||||||||||||||
A summary of activity for the Company's RSUs and PRSUs for the nine months ended September 28, 2014 and information regarding RSUs and PRSUs outstanding and expected to vest as of September 28, 2014 is as follows: | ||||||||||||||||
RSUs & PRSUs Outstanding | ||||||||||||||||
Number of Shares | Weighted Average | |||||||||||||||
Grant Date Fair Value | ||||||||||||||||
(in thousands) | ||||||||||||||||
Nonvested at December 29, 2013 | 225 | $ | 3.17 | |||||||||||||
Granted | 416 | 4.47 | ||||||||||||||
Vested | (300 | ) | 4.76 | |||||||||||||
Forfeited | (24 | ) | — | |||||||||||||
Nonvested at September 28, 2014 | 317 | $ | 3.36 | |||||||||||||
Schedule of Share-based Payment Award, Employee Stock Purchase Plan, Valuation Assumption | ' | |||||||||||||||
The fair value of rights issued pursuant to the Company's 2009 ESPP was estimated on the commencement date of each offering period using the following weighted average assumptions: | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 28, | September 29, | September 28, | September 29, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Expected term (months) | 6.09 | 6.08 | 6.09 | 6.08 | ||||||||||||
Risk-free interest rate | 0.05 | % | 0.09 | % | 0.05 | % | 0.09 | % | ||||||||
Volatility | 49.17 | % | 39.03 | % | 49.17 | % | 39.03 | % | ||||||||
Dividend yield | — | — | — | — | ||||||||||||
Information_Concerning_Product1
Information Concerning Product Lines, Geographic Information and Revenue Concentration (Tables) | 9 Months Ended | |||||||||||||||
Sep. 28, 2014 | ||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||
Schedule of Revenue by Product Line | ' | |||||||||||||||
The following is a breakdown of revenue by product line (in thousands): | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 28, | September 29, | September 28, | September 29, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Revenue by product line (1): | ||||||||||||||||
New products | $ | 2,236 | $ | 7,139 | $ | 15,634 | $ | 11,174 | ||||||||
Mature products | 1,888 | 1,927 | 6,490 | 6,035 | ||||||||||||
Total revenue | $ | 4,124 | $ | 9,066 | $ | 22,124 | $ | 17,209 | ||||||||
_________________ | ||||||||||||||||
(1) For all periods presented: New products include all products manufactured on 180 nanometer or smaller semiconductor processes. Mature products include all products produced on semiconductor processes larger than 180 nanometers. | ||||||||||||||||
Schedule of Revenue by Geographical Areas | ' | |||||||||||||||
The following is a breakdown of revenue by shipment destination (in thousands): | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 28, | September 29, | September 28, | September 29, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Revenue by geography: | ||||||||||||||||
Asia Pacific | $ | 2,341 | $ | 7,467 | $ | 16,179 | $ | 12,555 | ||||||||
North America | 1,084 | 1,025 | 3,158 | 3,292 | ||||||||||||
Europe | 699 | 574 | 2,787 | 1,362 | ||||||||||||
Total revenue | $ | 4,124 | $ | 9,066 | $ | 22,124 | $ | 17,209 | ||||||||
Schedule of Customer Concentration | ' | |||||||||||||||
The following distributors and customers accounted for 10% or more of the Company's revenue for the periods presented: | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 28, | September 29, | September 28, | September 29, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Distributor "A" | 26 | % | 15 | % | 15 | % | 20 | % | ||||||||
Distributor "B" | 12 | % | * | * | * | |||||||||||
Customer "B" | 13 | % | * | * | 10 | % | ||||||||||
Customer "G" | 27 | % | 68 | % | 53 | % | 49 | % | ||||||||
* | Represents less than 10% of revenue for the period presented. | |||||||||||||||
Schedule Of Customers Accounting for More than 10% of Accounts Receivable | ' | |||||||||||||||
The following distributors and customers accounted for 10% or more of the Company's accounts receivable as of the dates presented: | ||||||||||||||||
September 28, | December 29, | |||||||||||||||
2014 | 2013 | |||||||||||||||
Distributor "A" | 25 | % | 20 | % | ||||||||||||
Customer "G" | 53 | % | 71 | % |
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 9 Months Ended | |||
Sep. 28, 2014 | ||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||
Future minimum lease commitments | ' | |||
As of September 28, 2014, future minimum lease commitments under the Company's operating leases, excluding property taxes and insurance are as follows: | ||||
Operating | ||||
Leases | ||||
(in thousands) | ||||
Fiscal Years | ||||
2014 (Remaining 3 months) | $ | 226 | ||
2015 | 925 | |||
2016 | 847 | |||
2017 | 781 | |||
2018 | 799 | |||
$ | 3,578 | |||
The_Company_and_Basis_of_Prese2
The Company and Basis of Presentation (Details) (USD $) | Sep. 28, 2014 | Dec. 29, 2013 | Sep. 29, 2013 | Dec. 30, 2012 | Sep. 28, 2014 | Jun. 30, 2014 | Sep. 28, 2014 | Sep. 28, 2014 |
Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Samsung [Member] | Samsung [Member] | |||||
Silicon Valley Bank [Member] | Silicon Valley Bank [Member] | |||||||
Liquidity [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Cash and cash equivalents | $31,159,000 | $37,406,000 | $14,871,000 | $22,578,000 | ' | ' | ' | ' |
Line of credit facility, additional borrowing capacity | ' | ' | ' | ' | 5,000,000 | ' | ' | ' |
Maximum borrowing capacity | ' | ' | ' | ' | ' | 6,000,000 | ' | ' |
Additional borrowing capacity | ' | ' | ' | ' | ' | $10,000,000 | ' | ' |
Percentage of revenue from major customer | ' | ' | ' | ' | ' | ' | 27.00% | 53.00% |
Net_Loss_Per_Share_Details
Net Loss Per Share (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 28, 2014 | Sep. 29, 2013 | Sep. 28, 2014 | Sep. 29, 2013 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Antidilutive securities excluded from computation of earnings per share (in shares) | 6,600,000 | 7,300,000 | 6,600,000 | 7,300,000 |
Warrant [Member] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Warrants available to purchase (in shares) | 4,205,000 | 4,200,000 | 4,200,000 | 4,200,000 |
Balance_Sheet_Components_Detai
Balance Sheet Components (Details) (USD $) | Sep. 28, 2014 | Dec. 29, 2013 |
In Thousands, unless otherwise specified | ||
Inventories: | ' | ' |
Raw materials | $0 | $19 |
Work-in-process | 1,133 | 1,343 |
Finished goods | 5,745 | 2,774 |
Inventories | 6,878 | 4,136 |
Other current assets: | ' | ' |
Prepaid expenses | 880 | 845 |
Other | 84 | 427 |
Other current assets | 964 | 1,272 |
Accrued liabilities: | ' | ' |
Employee related accruals | 1,452 | 2,821 |
Other | 387 | 698 |
Accrued liabilities | $1,839 | $3,519 |
Balance_Sheet_Components_Prope
Balance Sheet Components (Property and Equipment) (Details) (USD $) | Sep. 28, 2014 | Dec. 29, 2013 |
In Thousands, unless otherwise specified | ||
Property and equipment: | ' | ' |
Property and equipment, gross | $18,571 | $17,993 |
Accumulated depreciation and amortization | -15,682 | -15,153 |
Property and equipment, net | 2,889 | 2,840 |
Equipment [Member] | ' | ' |
Property and equipment: | ' | ' |
Property and equipment, gross | 13,883 | 13,294 |
Software [Member] | ' | ' |
Property and equipment: | ' | ' |
Property and equipment, gross | 3,332 | 3,349 |
Furniture and Fixtures [Member] | ' | ' |
Property and equipment: | ' | ' |
Property and equipment, gross | 710 | 710 |
Leasehold Improvements [Member] | ' | ' |
Property and equipment: | ' | ' |
Property and equipment, gross | $646 | $640 |
Obligations_Schedule_of_Obliga
Obligations (Schedule of Obligations) (Details) (USD $) | Sep. 28, 2014 | Dec. 29, 2013 |
In Thousands, unless otherwise specified | ||
Debt and capital lease obligations: | ' | ' |
Revolving line of credit | $1,000 | $1,000 |
Capital leases | 448 | 310 |
Debt and capital lease obligations | 1,448 | 1,310 |
Current portion of debt and capital lease obligations | -223 | -1,177 |
Long term portion of capital lease obligations | $1,225 | $133 |
Obligations_Narrative_Details
Obligations (Narrative) (Details) (USD $) | Sep. 28, 2014 | Dec. 29, 2013 | Jul. 31, 2014 | Sep. 28, 2014 | Jul. 31, 2014 | Jul. 31, 2014 | Jul. 31, 2014 | Jul. 31, 2014 | Jul. 31, 2014 | 31-May-14 | Sep. 28, 2014 | 31-May-14 | Dec. 29, 2013 | Sep. 28, 2014 | Sep. 28, 2014 | Jun. 30, 2014 |
Capital Lease Obligation, Leased July 2014 [Member] | Capital Lease Obligation, Leased July 2014 [Member] | Capital Lease Obligation, Leased July 2014 [Member] | July Lease Payment One [Member] | July Lease Payment Two [Member] | July Lease Payment Three [Member] | July Lease Payment Four [Member] | Capital Lease Obligation, Leased May 2014 [Member] | Capital Lease Obligation, Leased May 2014 [Member] | Capital Lease Obligation, Leased May 2014 [Member] | Capital Lease Obligation, Leased December 2013 [Member] | Capital Lease Obligation, Leased December 2013 [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | |||
Software [Member] | Software [Member] | Software Tools [Member] | Software [Member] | Software [Member] | Software [Member] | Software [Member] | Software [Member] | Software [Member] | Software Tools [Member] | Software [Member] | Software [Member] | Silicon Valley Bank [Member] | Silicon Valley Bank [Member] | |||
Debt and Capital Lease Obligations [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum borrowing capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $6,000,000 |
Revolving line of credit | 1,000,000 | 1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | ' |
Interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.75% | ' |
Minimum net worth required for compliance with covenants | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15,000,000 | ' |
Minimum adjusted quick ratio required for compliance with covenants | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' |
Minimum cash balance required for compliance with covenants | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8,000,000 | ' |
Capital lease, term | ' | ' | ' | ' | '41 months | ' | ' | ' | ' | ' | ' | '3 years | '2 years | ' | ' | ' |
Capital lease, implied interest rate | ' | ' | 3.15% | ' | ' | ' | ' | ' | ' | 4.80% | ' | ' | 4.34% | ' | ' | ' |
Capital lease, periodic payment | ' | ' | 174,000 | ' | ' | 42,000 | 16,000 | 58,000 | 58,000 | 84,000 | ' | ' | 34,000 | ' | ' | ' |
Capital lease obligations | 448,000 | 310,000 | ' | 126,000 | ' | ' | ' | ' | ' | 252,000 | 157,000 | ' | 273,000 | 165,000 | ' | ' |
Current portion of capital lease obligations | $223,000 | $177,000 | ' | $15,000 | ' | ' | ' | ' | ' | ' | $77,000 | ' | ' | $131,000 | ' | ' |
Fair_Value_Measurements_Schedu
Fair Value Measurements (Schedule of Fair Value Assets Measured on Recurring Basis) (Details) (Fair Value, Measurements, Recurring [Member], USD $) | Sep. 28, 2014 | Dec. 29, 2013 | ||
In Thousands, unless otherwise specified | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Total assets | $29,949 | $35,812 | ||
Level 1 [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Total assets | 0 | 35,812 | ||
Level 2 [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Total assets | 29,949 | 0 | ||
Level 3 [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Total assets | 0 | 0 | ||
Money Market Funds [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Money market funds | 29,949 | [1] | 35,812 | [1] |
Money Market Funds [Member] | Level 1 [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Money market funds | 0 | [1] | 35,812 | [1] |
Money Market Funds [Member] | Level 2 [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Money market funds | 29,949 | [1] | 0 | |
Money Market Funds [Member] | Level 3 [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Money market funds | $0 | [1] | $0 | |
[1] | Money market funds are presented as a part of cash and cash equivalents on the accompanying consolidated balance sheets as of SeptemberB 28, 2014 and DecemberB 29, 2013. |
Stockholders_Equity_Details
Stockholders' Equity (Details) (USD $) | 1 Months Ended | 9 Months Ended | ||||
Nov. 30, 2013 | Jun. 30, 2012 | Sep. 28, 2014 | Sep. 29, 2013 | Dec. 29, 2013 | Jul. 31, 2013 | |
Class of Stock [Line Items] | ' | ' | ' | ' | ' | ' |
Common stock, shares authorized | ' | ' | 100,000,000 | ' | 100,000,000 | ' |
Preferred stock, shares authorized | ' | ' | 10,000,000 | ' | 10,000,000 | ' |
Maximum offering | ' | ' | ' | ' | ' | $40,000,000 |
Shares issued in aggregate (in shares) | 8,740,000 | 5,122,000 | ' | ' | ' | ' |
Common stock, par value (in dollars per share) | $0.00 | ' | $0.00 | ' | $0.00 | ' |
Closing stock price (in dollars per share) | $2.90 | ' | $3.03 | ' | ' | ' |
Proceeds from offering | 23,100,000 | 11,900,000 | ' | ' | ' | ' |
Stock issuance cost | $2,200,000 | $929,000 | $0 | $70,000 | ' | ' |
Common stock and warrant (in shares) | ' | 2,304,900 | ' | ' | ' | ' |
Warrant [Member] | ' | ' | ' | ' | ' | ' |
Class of Stock [Line Items] | ' | ' | ' | ' | ' | ' |
Warrants (in shares) | ' | 0.45 | ' | ' | ' | ' |
Price (in dollars per unit) | ' | 2.5 | ' | ' | ' | ' |
Exercise period of warrants | ' | ' | '60 months | ' | ' | ' |
Exercise price of warrants (in dollars per unit) | ' | ' | $2.98 | ' | ' | ' |
Expected term | ' | ' | '5 years | ' | ' | ' |
Fair value grant date (in dollars per unit) | ' | ' | 0.97 | ' | ' | ' |
Risk free interest rate | ' | ' | 0.89% | ' | ' | ' |
Expected volatility rate | ' | ' | 62.18% | ' | ' | ' |
Expected dividend payments | ' | ' | $0 | ' | ' | ' |
Employee_Stock_Plans_Details
Employee Stock Plans (Details) | 9 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | |||||||
Sep. 28, 2014 | Sep. 28, 2014 | Sep. 28, 2014 | Sep. 28, 2014 | Sep. 28, 2014 | Apr. 28, 2011 | Sep. 28, 2014 | Sep. 28, 2014 | Sep. 28, 2014 | Sep. 28, 2014 | Sep. 28, 2014 | |
1999 Stock Plan [Member] | 1999 Stock Plan [Member] | 1999 Stock Plan [Member] | 1999 Stock Plan [Member] | 2009 Stock Plan [Member] | 2009 Stock Plan [Member] | 2009 Stock Plan [Member] | 2009 Stock Plan [Member] | 2009 Stock Plan [Member] | Employee Stock Purchase Plan [Member] | ||
Maximum [Member] | Stock Options [Member] | Initial Vesting [Member] | Periodic Vesting [Member] | Maximum [Member] | Initial Vesting [Member] | Periodic Vesting [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity award, term | ' | '10 years | ' | ' | ' | ' | ' | '10 years | ' | ' | ' |
Equity award vesting period | '4 years | ' | ' | '1 year | '1 month | ' | ' | ' | '1 year | '1 month | ' |
Percent of options vested | ' | ' | ' | 25.00% | 2.08% | ' | ' | ' | ' | 2.08% | ' |
Shares available for grant (in shares) | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' |
Additional shares reserved for issuance (in shares) | ' | ' | ' | ' | ' | 1,500,000 | ' | ' | ' | ' | ' |
Shares reserved for issuance (in shares) | ' | ' | ' | ' | ' | ' | 7,000,000 | ' | ' | ' | 2,300,000 |
Number of previously cancelled, forfeited or repurchased shares available for reissuance (in shares) | ' | ' | ' | ' | ' | ' | ' | 7,500,000 | ' | ' | ' |
Maximum percent of employees total compensation allowed for purchase of shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20.00% |
Maximum number of shares per employee per period (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20,000 |
Purchase price of shares as a percentage of fair market value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 85.00% |
Duration of offering period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '6 months |
StockBased_Compensation_Schedu
Stock-Based Compensation (Schedule of Allocation of Recognized Period Cost) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 28, 2014 | Sep. 29, 2013 | Sep. 28, 2014 | Sep. 29, 2013 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Total costs and expenses | $452 | $330 | $1,750 | $1,067 |
Cost of revenue [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Total costs and expenses | 32 | 24 | 110 | 76 |
Research and development [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Total costs and expenses | 176 | 74 | 750 | 286 |
Selling, general and administrative [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Total costs and expenses | $244 | $232 | $890 | $705 |
StockBased_Compensation_Schedu1
Stock-Based Compensation (Schedule of Valuation Assumptions) (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 28, 2014 | Sep. 29, 2013 | Sep. 28, 2014 | Sep. 29, 2013 | |
Stock Options [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Expected term | '6 years 2 months 12 days | '4 years 10 months 24 days | '6 years 2 months 12 days | '6 years 1 month 6 days |
Risk-free interest rate | 1.98% | 1.51% | 1.98% | 1.19% |
Expected volatility | 55.10% | 62.62% | 55.10% | 60.53% |
Expected dividend yield | 0.00% | 0.00% | 0.00% | 0.00% |
Employee Stock Purchase Plan [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Expected term | '6 months 3 days | '6 months 3 days | '6 months 3 days | '6 months 3 days |
Risk-free interest rate | 0.05% | 0.09% | 0.05% | 0.09% |
Expected volatility | 49.17% | 39.03% | 49.17% | 39.03% |
Expected dividend yield | 0.00% | 0.00% | 0.00% | 0.00% |
StockBased_Compensation_Schedu2
Stock-Based Compensation (Schedule of Stock Based Compensation Award Activity) (Details) | 9 Months Ended |
Sep. 28, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award, Available for Grant, Number of Shares [Roll Forward] | ' |
Options granted (in shares) | -208,000 |
Options forfeited or expired (in shares) | 154,000 |
RSUs granted (in shares) | -416,000 |
PRSUs forfeited or expired (in shares) | 24,000 |
2009 Stock Plan [Member] | Restricted Stock Units (RSUs) [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Available for Grant, Number of Shares [Roll Forward] | ' |
Balance at beginning of period (in shares) | 2,253,000 |
Options granted (in shares) | -208,000 |
Options forfeited or expired (in shares) | 154,000 |
RSUs granted (in shares) | -416,000 |
PRSUs forfeited or expired (in shares) | 24,000 |
Balance at end of period (in shares) | 1,807,000 |
StockBased_Compensation_Schedu3
Stock-Based Compensation (Schedule of Stock Options Activity) (Details) (USD $) | 9 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Sep. 28, 2014 |
Number Of Shares | ' |
Balance outstanding at beginning of period, in shares | 7,242 |
Granted, in shares | 208 |
Forfeited or expired, in shares | -154 |
Exercised, in shares | -1,687 |
Balance outstanding at end of period, in shares | 5,609 |
Exercisable, in shares | 4,461 |
Vested and expected to vest, in shares | 5,404 |
Weighted Average Exercise Price | ' |
Balance outstanding at beginning of period, in dollars per share | $2.62 |
Granted, in dollars per share | $3.84 |
Forfeited or expired, in dollars per share | $3.55 |
Exercised, in dollars per share | $2.56 |
Balance outstanding at end of period, in dollars per share | $2.66 |
Exercisable, in dollars per share | $2.55 |
Vested and expected to vest, in dollars per share | $2.64 |
Weighted Average Remaining Term | ' |
Balance outstanding | '5 years 5 months 1 day |
Exercisable | '4 years 7 months 6 days |
Vested and expected to vest | '5 years 3 months 15 days |
Aggregate Intrinsic Value | ' |
Balance outstanding | $3,237 |
Exercisable | 2,992 |
Vested and expected to vest | $3,199 |
StockBased_Compensation_Schedu4
Stock-Based Compensation (Schedule of Restricted Stock and Restricted Stock Units Activity) (Details) (USD $) | 9 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Sep. 28, 2014 |
Number of Shares | ' |
Nonvested at beginning of period, in shares | 225 |
Granted, in shares | 416 |
Vested, in shares | -300 |
Forfeited, in shares | -24 |
Nonvested at end of period, in shares | 317 |
Weighted Average Grant Date Fair Value | ' |
Nonvested at beginning of period, in dollars per share | $3.17 |
Granted, in dollars per share | $4.47 |
Vested, in dollars per share | $4.76 |
Forfeited, in dollars per share | $0 |
Nonvested at end of period, in dollars per share | $3.36 |
StockBased_Compensation_Narrat
Stock-Based Compensation (Narrative) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||
Sep. 28, 2014 | Sep. 29, 2013 | Sep. 28, 2014 | Sep. 29, 2013 | Dec. 29, 2013 | Nov. 30, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' |
Equity award vesting period | ' | ' | '4 years | ' | ' | ' |
Weighted average estimated fair value, options (in dollars per share) | $2.10 | $1.39 | $2.10 | $1.30 | ' | ' |
Fair value of unvested stock options | $1,900,000 | $1,400,000 | $1,900,000 | $1,400,000 | ' | ' |
Closing stock price (in dollars per share) | $3.03 | ' | $3.03 | ' | ' | $2.90 |
The total intrinsic value of options exercised | ' | ' | 3,700,000 | 46,000 | ' | ' |
Total cash received from employees as a result of employee stock option exercises | ' | ' | 4,300,000 | 108,000 | ' | ' |
Stock-based compensation | 452,000 | 330,000 | 1,750,000 | 1,067,000 | ' | ' |
Unrecognized stock-based compensation expense | 37,000 | ' | 37,000 | ' | ' | ' |
Weighted average estimated fair value (in dollars per share) | $3.36 | ' | $3.36 | ' | $3.17 | ' |
Compensation expense related to ESPP | 71,000 | ' | ' | ' | ' | ' |
Stock Options [Member] | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' |
Expiration period | ' | ' | '10 years | ' | ' | ' |
Weighted average recognition period of unrecognized stock-based compensation expense | ' | ' | '2 years 4 months 2 days | ' | ' | ' |
Stock-based compensation | 225,000 | ' | 832,000 | ' | ' | ' |
Restricted Stock Award [Member] | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' |
Stock-based compensation | 154,000 | ' | ' | ' | ' | ' |
Performance Restricted Stock Unit [Member] | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' |
Stock-based compensation | 2,000 | ' | ' | ' | ' | ' |
Unrecognized stock-based compensation expense | $515,000 | ' | $515,000 | ' | ' | ' |
Employee Stock Purchase Plan [Member] | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' |
Weighted average recognition period of unrecognized stock-based compensation expense | ' | ' | '1 year 7 months 6 days | ' | ' | ' |
Weighted average estimated fair value (in dollars per share) | $1.01 | $0.59 | $1.01 | $0.59 | ' | ' |
Shares available for issuance (in shares) | 1,002,000 | ' | 1,002,000 | ' | ' | ' |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 28, 2014 | Sep. 29, 2013 | Sep. 28, 2014 | Sep. 29, 2013 | Dec. 29, 2013 |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' | ' |
Tax (benefit) provision from income taxes | $6 | ($18) | ($18) | $369 | ' |
Unrecognized tax benefits | 47 | ' | 47 | ' | 79 |
Penalties and interest expense | ' | ' | 4 | ' | ' |
Accrued interest and penalties related to uncertain tax positions | 21 | ' | 21 | ' | ' |
Unrecognized tax benefits expiring from lapse of applicable statute of limitation in next twelve months | $16 | ' | $16 | ' | ' |
Information_Concerning_Product2
Information Concerning Product Lines, Geographic Information and Revenue Concentration (Schedule of Revenue by Product Line) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 28, 2014 | Sep. 29, 2013 | Sep. 28, 2014 | Sep. 29, 2013 | ||||
segment | segment | segment | segment | |||||
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ||||
Number of reportable segments | 1 | 1 | 1 | 1 | ||||
Total revenue | $4,124 | [1] | $9,066 | [1] | $22,124 | [1] | $17,209 | [1] |
New Products [Member] | ' | ' | ' | ' | ||||
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ||||
Total revenue | 2,236 | [1] | 7,139 | [1] | 15,634 | [1] | 11,174 | [1] |
Mature Products [Member] | ' | ' | ' | ' | ||||
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ||||
Total revenue | $1,888 | [1] | $1,927 | [1] | $6,490 | [1] | $6,035 | [1] |
[1] | For all periods presented: New products include all products manufactured on 180 nanometer or smaller semiconductor processes. Mature products include all products produced on semiconductor processes larger than 180 nanometers. |
Information_Concerning_Product3
Information Concerning Product Lines, Geographic Information and Revenue Concentration (Schedule of Revenue by Geographical Area) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 28, 2014 | Sep. 29, 2013 | Sep. 28, 2014 | Sep. 29, 2013 | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ||||
Revenue | $4,124 | [1] | $9,066 | [1] | $22,124 | [1] | $17,209 | [1] |
Asia Pacific [Member] | ' | ' | ' | ' | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ||||
Revenue | 2,341 | 7,467 | 16,179 | 12,555 | ||||
United States [Member] | ' | ' | ' | ' | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ||||
Revenue | 1,084 | 1,025 | 3,158 | 3,292 | ||||
Europe [Member] | ' | ' | ' | ' | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ||||
Revenue | $699 | $574 | $2,787 | $1,362 | ||||
[1] | For all periods presented: New products include all products manufactured on 180 nanometer or smaller semiconductor processes. Mature products include all products produced on semiconductor processes larger than 180 nanometers. |
Information_Concerning_Product4
Information Concerning Product Lines, Geographic Information and Revenue Concentration (Schedule of Customer Concentration) (Details) | 3 Months Ended | 9 Months Ended | |||
Sep. 28, 2014 | Sep. 29, 2013 | Sep. 28, 2014 | Sep. 29, 2013 | Dec. 29, 2013 | |
Distributor A [Member] | ' | ' | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' | ' | ' |
Percentage of revenue from major customer | 26.00% | 15.00% | 15.00% | 20.00% | ' |
Percentage of accounts receivable from major customer | 25.00% | ' | 25.00% | ' | 20.00% |
Distributor B [Member] | ' | ' | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' | ' | ' |
Percentage of revenue from major customer | 12.00% | ' | ' | ' | ' |
Customer B [Member] | ' | ' | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' | ' | ' |
Percentage of revenue from major customer | 13.00% | ' | ' | 10.00% | ' |
Customer G [Member] | ' | ' | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' | ' | ' |
Percentage of revenue from major customer | 27.00% | 68.00% | 53.00% | 49.00% | ' |
Percentage of accounts receivable from major customer | 53.00% | ' | 53.00% | ' | 71.00% |
Commitments_and_Contingencies_1
Commitments and Contingencies (Schedule of Future Minimum Lease Payments for Operating Leases) (Details) (USD $) | Sep. 28, 2014 |
In Thousands, unless otherwise specified | |
Future minimum lease commitments under operating leases: | ' |
2014 (Remaining 3 months) | $226 |
2015 | 925 |
2016 | 847 |
2017 | 781 |
2018 | 799 |
Total | $3,578 |
Commitments_and_Contingencies_2
Commitments and Contingencies (Narrative) (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||||
In Thousands, unless otherwise specified | Sep. 28, 2014 | Sep. 29, 2013 | Sep. 28, 2014 | Sep. 29, 2013 | Sep. 28, 2014 | Dec. 29, 2013 | Sep. 28, 2014 |
Wafer purchase commitment [Member] | Wafer purchase commitment [Member] | Other goods and services [Member] | |||||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Outstanding commitment for purchases | ' | ' | ' | ' | $569 | $10,800 | $1,900 |
Total rent expense, net of sublease income | $239 | $234 | $710 | $726 | ' | ' | ' |
Subsequent_Event_Details
Subsequent Event (Details) (Subsequent Event [Member], USD $) | Oct. 22, 2014 |
In Thousands, unless otherwise specified | |
Subsequent Event [Member] | ' |
Subsequent Event [Line Items] | ' |
Purchase obligation for leasehold improvements | $469 |