Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 28, 2015 | Jul. 31, 2015 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | QUICKLOGIC CORPORATION | |
Entity Central Index Key | 882,508 | |
Current Fiscal Year End Date | --01-03 | |
Entity Filer Category | Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jun. 28, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 56,587,195 |
Condensed Unaudited Consolidate
Condensed Unaudited Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 28, 2015 | Dec. 28, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 26,415 | $ 30,050 |
Accounts receivable, net of allowances for doubtful accounts of $0 in both periods | 1,597 | 1,552 |
Inventories | 3,001 | 4,952 |
Other current assets | 873 | 1,146 |
Total current assets | 31,886 | 37,700 |
Property and equipment, net | 2,689 | 3,217 |
Other assets | 229 | 222 |
TOTAL ASSETS | 34,804 | 41,139 |
Current liabilities: | ||
Line of Credit, Current | 1,000 | 0 |
Trade payables | 2,152 | 2,506 |
Accrued liabilities | 2,069 | 1,574 |
Deferred revenue | 114 | 0 |
Current portion of capital lease obligations | 202 | 225 |
Total current liabilities | 5,537 | 4,305 |
Long-term liabilities: | ||
Revolving line of credit | 0 | 1,000 |
Capital lease obligations, less current portion | 56 | 191 |
Other long-term liabilities | 155 | 76 |
Total liabilities | $ 5,748 | $ 5,572 |
Commitments and contingencies (see Note 13) | ||
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; 56,580 and 56,182 shares issued and outstanding, respectively | 56 | 56 |
Additional paid-in capital | 239,824 | 238,419 |
Accumulated deficit | (210,824) | (202,908) |
Total stockholders' equity | 29,056 | 35,567 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 34,804 | $ 41,139 |
Condensed Unaudited Condensed C
Condensed Unaudited Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 28, 2015 | Dec. 28, 2014 |
Current Assets: | ||
Allowance for doubtful accounts | $ 0 | $ 0 |
Stockholders' Equity: | ||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 56,580,000 | 56,182,000 |
Common stock, shares outstanding (in shares) | 56,580,000 | 56,182,000 |
Condensed Unaudited Consolidat4
Condensed Unaudited Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 28, 2015 | Jun. 29, 2014 | Jun. 28, 2015 | Jun. 29, 2014 | ||
Income Statement [Abstract] | |||||
Revenue | [1] | $ 4,973 | $ 6,836 | $ 11,132 | $ 18,000 |
Cost of revenue | 2,830 | 3,820 | 6,110 | 10,926 | |
Gross profit | 2,143 | 3,016 | 5,022 | 7,074 | |
Operating expenses: | |||||
Research and development | 3,493 | 3,056 | 6,970 | 5,697 | |
Selling, general and administrative | 2,690 | 2,848 | 5,650 | 6,313 | |
Restructuring costs | 169 | 0 | 169 | 0 | |
Total operating expenses | 6,352 | 5,904 | 12,789 | 12,010 | |
Loss from operations | (4,209) | (2,888) | (7,767) | (4,936) | |
Interest expense | (15) | (17) | (29) | (33) | |
Interest income and other expense, net | (33) | (36) | (59) | (62) | |
Loss before income taxes | (4,257) | (2,941) | (7,855) | (5,031) | |
Provision for (benefit from) income taxes | 21 | (44) | 61 | (24) | |
Net loss | $ (4,278) | $ (2,897) | $ (7,916) | $ (5,007) | |
Net loss per share: (in dollars per share) | |||||
Basic | $ (0.08) | $ (0.05) | $ (0.14) | $ (0.09) | |
Diluted | $ (0.08) | $ (0.05) | $ (0.14) | $ (0.09) | |
Weighted average shares: (in shares) | |||||
Basic | 56,359 | 55,379 | 56,275 | 54,906 | |
Diluted | 56,359 | 55,379 | 56,275 | 54,906 | |
[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 Consolidat5
Condensed Unaudited Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 28, 2015 | Jun. 29, 2014 | Jun. 28, 2015 | Jun. 29, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (4,278) | $ (2,897) | $ (7,916) | $ (5,007) |
Total other comprehensive income, net of tax | 0 | 0 | 0 | 0 |
Total comprehensive loss | $ (4,278) | $ (2,897) | $ (7,916) | $ (5,007) |
Condensed Unaudited Consolidat6
Condensed Unaudited Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 28, 2015 | Jun. 29, 2014 | |
Cash flows from operating activities: | ||
Net loss | $ (7,916) | $ (5,007) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 727 | 727 |
Stock-based compensation | 988 | 1,298 |
Write-down of inventories | 13 | 99 |
Gains on disposal of equipment | 0 | (2) |
Changes in operating assets and liabilities: | ||
Accounts receivable | (45) | 1,285 |
Inventories | 1,938 | (3,614) |
Other assets | 409 | 234 |
Trade payables | (533) | (1,028) |
Accrued liabilities and deferred revenue | 617 | (583) |
Other long-term liabilities | 79 | (59) |
Net cash used in operating activities | (3,723) | (6,650) |
Cash flows from investing activities: | ||
Capital expenditures for property and equipment | (163) | (522) |
Proceeds from sale of fixed assets | 0 | 2 |
Net cash used in investing activities | (163) | (520) |
Cash flows from financing activities: | ||
Payment of debt and capital lease obligations | (158) | (114) |
Stock issued under share-based compensation, net | 409 | 4,208 |
Net cash provided by financing activities | 251 | 4,094 |
Net (decrease) in cash and cash equivalents | (3,635) | (3,076) |
Cash and cash equivalents at beginning of period | 30,050 | 37,406 |
Cash and cash equivalents at end of period | 26,415 | 34,330 |
Supplemental schedule of non-cash investing and financing activities : | ||
Capital lease obligation to finance capital expenditures | 258 | 435 |
Purchase of equipment included in accounts payable | $ 36 | $ 306 |
The Company and Basis of Presen
The Company and Basis of Presentation | 6 Months Ended |
Jun. 28, 2015 | |
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 ultra-low power, customizable Sensor Hub, Display, and Connectivity semiconductor solutions for smartphone, tablet, wearable, and mobile enterprise, Original Equipment Manufacturers, or OEMs. Called Customer Specific Standard Products, or CSSPs, these programmable ‘silicon plus software’ solutions enable our customers to bring hardware-differentiated products to market quickly and cost effectively. The Company also develops and markets low-power 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 United States generally accepted accounting principles, or U.S. 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 interim condensed consolidated financial statements be read in conjunction with the Company's Form 10-K for the year ended December 28, 2014 . Operating results for the six months ended June 28, 2015 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 second fiscal quarters for 2015 and for 2014 ended on Sunday, June 28, 2015 and June 29, 2014 , 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 June 28, 2015 , the Company's principal sources of liquidity consisted of cash and cash equivalents of $26.4 million and $5.0 million in available credit under its revolving line of credit with Silicon Valley Bank, which expires on June 27, 2016. This line of credit provides for committed loan advances of up to $6.0 million , subject to increase at the Company's election 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 U.S. 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 materially 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 and six months ended June 28, 2015 , the Company generated 41% and 40% 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 Policies
Significant Accounting Policies | 6 Months Ended |
Jun. 28, 2015 | |
Accounting Policies [Abstract] | |
Significant accounting policies | Significant Accounting Policies During the six months ended June 28, 2015 , 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 28, 2014 . For a discussion of the significant accounting policies, please see the Annual Report on Form 10-K for the fiscal year ended December 28, 2014 , filed with the Securities Exchange Commission, or SEC, on March 5, 2015 . New Accounting Pronouncements In April 2015, the FASB issued ASU 2015-03, Simplifying Presentation of Debt Issuance Costs which amends the accounting guidance on the presentation of debt issuance costs. The guidance requires an entity to present debt issuance costs related to a recognized debt liability as a direct deduction from the carrying amount of that debt, consistent with debt discounts. The guidance is effective for annual reporting periods beginning after December 31, 2015 and interim periods beginning after December 15, 2016, and must be applied retrospectively to each prior reporting period presented. The Company is currently evaluating the impact of ASU 2015-03 on its consolidated financial statements and footnote disclosures. In February 2015, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update No. 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis (ASU 2015-02) , which is intended to improve the targeted areas of consolidation guidance for legal entities such as limited partnerships, limited liability corporations and securitization structures. In addition to reducing the number of consolidation models from four to two, the new standard simplifies the FASB accounting standards codification and improves the current U.S. GAAP by: placing more emphasis on risk of loss when determining a controlling financial interest; reducing the frequency of the application of related party guidance when determining a controlling financial interest in a variable interest entity, or VIE and changing consolidation conclusions for public and private companies in several industries that typically make use of limited partnerships or VIEs. This ASU 2015-02 is effective for annual periods ending after December 15, 2015, and interim periods beginning after December 15, 2015. Early adoption is permitted including adoption in an interim period. The Company is currently evaluating the impact of ASU 2015-02 on its consolidated financial statements and footnote disclosures. In January 2015, the FASB issued Accounting Standards Update No. 2015-01, Income Statement - Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items (ASU 2015-01) . This ASU 2015-01 eliminates from U.S. GAAP the concept of extraordinary items. Subtopic 225-20, Income Statement - Extraordinary and Unusual Items, requires that an entity separately classify, present and disclose extraordinary events and transactions. Presently, an event or transaction is presumed to be an ordinary and usual activity of a reporting entity unless evidence clearly supports its classification as an extraordinary item. If an event or transaction meets the criteria for extraordinary classification, an entity is required to segregate the extraordinary item from the results of ordinary operations and show such item separately in the income statement, net of tax, after income from continuing operations. The entity is also required to disclose applicable income taxes and either present or disclose earnings-per-share data applicable to the extraordinary item. This ASU 2015-01 is effective for annual periods ending after December 15, 2015, and interim periods beginning after December 15, 2015. Early adoption is permitted provided that the adopted guidance is applied from the beginning of the annual year in which such guidance is adopted. The Company is currently evaluating the impact of ASU 2015-01 on its consolidated financial statements and footnote disclosures. Other new accounting pronouncements are disclosed on the Annual Report on Form 10-K for the fiscal year ended December 28, 2014 filed with the SEC on March 5, 2015. |
Net Loss Per Share
Net Loss Per Share | 6 Months Ended |
Jun. 28, 2015 | |
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 second quarter and six months ended June 28, 2015 and June 29, 2014 : (i) 7.1 million and 6.6 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 2.3 million as of June 28, 2015 and 4.2 million as of June 29, 2014 shares of common stock respectively. 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 | 6 Months Ended |
Jun. 28, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Balance sheet components | Balance Sheet Components As of June 28, December 28, (in thousands) Inventories: Raw material $ — $ — Work-in-process 1,798 1,191 Finished goods 1,203 3,761 $ 3,001 $ 4,952 Other current assets: Prepaid expenses $ 765 $ 1,042 Other 108 104 $ 873 $ 1,146 Property and equipment: Equipment $ 14,100 $ 14,047 Software 2,852 3,332 Furniture and fixtures 711 710 Leasehold improvements 714 595 18,377 18,684 Accumulated depreciation and amortization (15,688 ) (15,467 ) $ 2,689 $ 3,217 Accrued liabilities: Employee related accruals $ 1,792 $ 1,356 Restructuring accruals - See Note 12 169 — Other 108 218 $ 2,069 $ 1,574 |
Obligations
Obligations | 6 Months Ended |
Jun. 28, 2015 | |
Debt Disclosure [Abstract] | |
Obligations | Obligations As of June 28, December 28, (in thousands) Debt and capital lease obligations: Revolving line of credit $ 1,000 $ 1,000 Capital leases 258 416 1,258 1,416 Current portion of debt and capital lease obligations (1,202 ) (225 ) Long term portion of debt and capital lease obligations $ 56 $ 1,191 Revolving Line of Credit The Company and Silicon Valley Bank have entered into the Third Amended and Restated Loan and Security Agreement dated June 30, 2014, as amended September 26, 2014 ("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. As of the end of the second quarter of 2015 , the Company had $1.0 million of revolving debt outstanding with an interest rate of 3.06% . 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 June 28, 2015 , $111,000 was outstanding under this capital lease, of which $55,000 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 June 28, 2015 , $80,000 was outstanding under the capital lease, all of which 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 June 28, 2015 , $67,000 was outstanding under the capital lease, all of which was classified as a current liability. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 28, 2015 | |
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 June 28, 2015 and December 28, 2014 , consistent with the fair value hierarchy provisions of the authoritative guidance (in thousands): As of June 28, 2015 As of December 28, 2014 Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Assets: Money market funds (1) $ 26,318 $ 1,013 $ 25,305 $ — $ 29,425 $ 874 $ 28,551 $ — Total assets $ 26,318 $ 1,013 $ 25,305 $ — $ 29,425 $ 874 $ 28,551 $ — _________________ (1) Money market funds are presented as a part of cash and cash equivalents on the accompanying consolidated balance sheets as of June 28, 2015 and December 28, 2014 . |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 28, 2015 | |
Equity [Abstract] | |
Stockholders' equity | Stockholders' Equity Common Stock 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 . As of June 28, 2015 , 2.3 million warrants were outstanding. Approximately 1.9 million warrants with a strike price of $2.15 were issued in conjunction with a November 2009 financing. These warrants expired in May 2015. Remaining outstanding warrants approximately 2.3 million warrants with a strike price of $2.98 were issued in conjunction with June 2012 financing. These warrants expire in June 2017 and can be exercised on a cash or cashless basis until August 2016. After this date, the registration statement will no longer be effective and the warrants can only be exercised on a cashless basis. |
Employee Stock Plans
Employee Stock Plans | 6 Months Ended |
Jun. 28, 2015 | |
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 (" RSUs") 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 January 2015 and approved by the Company's stockholders on April 23, 2015 to, among other things, reserve an additional 2.5 million shares of common stock for issuance under the 2009 Plan. As of June 28, 2015 , approximately 9.6 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 10 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. RSUs typically vest at a rate of 25% one year after the vesting commencement date, and one eighth every six months 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. In January 2015, the 2009 ESPP was amended by the Board of Directors and approved by the Company's stockholders on April 23, 2015 to reserve an additional 1.0 million shares of common stock for issuance under the 2009 ESPP. As of June 28, 2015 approximately 3.3 million shares were reserved for issuance under the 2009 ESPP Plan. 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. |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 28, 2015 | |
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 six months ended June 28, 2015 and June 29, 2014 was as follows (in thousands): Three Months Ended Six Months Ended June 28, June 29, June 28, June 29, Cost of revenue $ 27 $ 36 $ 66 $ 78 Research and development 212 221 403 574 Selling, general and administrative 252 309 519 646 Total costs and expenses $ 491 $ 566 $ 988 $ 1,298 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 Six Months Ended June 28, June 29, June 28, June 29, Expected term (years) — 6.00 4.78 6.19 Risk-free interest rate — % 1.90 % 1.40 % 1.98 % Expected volatility — % 55.70 % 52.11 % 55.10 % Expected dividend yield — — — — No stock options were granted in the second quarter of 2015. The weighted average estimated fair value for options granted during the second quarter of 2014 was $1.86 per option. The weighted average estimated fair value for options granted during the six months of 2015 and 2014 was $0.90 and $2.10 , per option, respectively. As of June 28, 2015 and June 29, 2014 , the fair value of unvested stock options, net of expected forfeitures, was approximately $2.7 million and $2.1 million , respectively. This unrecognized stock-based compensation expense is expected to be recorded over a weighted average period of 2.26 years. Stock-Based Compensation Award Activity The following table summarizes the activity in the shares available for grant under the 2009 Plan during the six months ended June 28, 2015 : Shares Available for Grant (in thousands) Balance at December 28, 2014 1,139 Authorized 2,500 Options granted (80 ) Options forfeited or expired 174 RSUs granted (298 ) PRSUs granted (20 ) RSUs forfeited or expired 35 Balance at June 28, 2015 3,450 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 six months of 2015 : Number of Shares Weighted Average Exercise Price Weighted Average Remaining Term Aggregate Intrinsic Value (in thousands) (in years) (in thousands) Balance outstanding at December 28, 2014 5,682 $ 2.67 Granted 80 2.00 Forfeited or expired (174 ) 3.41 Exercised (117 ) 0.98 Balance outstanding at June 28, 2015 5,471 $ 2.67 4.84 $ 292 Exercisable at June 28, 2015 4,631 $ 2.61 4.20 $ 292 Vested and expected to vest at June 28, 2015 5,317 $ 2.66 4.72 $ 292 The aggregate intrinsic value in the table above represents the total pretax intrinsic value, based on the Company's closing stock price of $1.61 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 six months of 2015 and 2014 was $81,000 and $3.6 million , respectively. Total cash received from employees as a result of employee stock option exercises during the first six months of 2015 and 2014 was approximately $114,000 and $4.2 million 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 $211,000 and $459,000 for the three months and six months ended June 28, 2015 . 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 RSU as it vests. In general, the Company's policy is to withhold shares in settlement of employee tax withholding obligations upon the vesting of RSUs. The stock-based compensation related to RSUs and PRSUs was $188,000 and $20,000 , for the three months and $343,000 and $35,000 for the six months ended June 28, 2015 , respectively. As of June 28, 2015 , there was $1.7 million in unrecognized compensation expense related to RSUs and PRSUs. A summary of activity for the Company's RSUs and PRSUs for the six months ended June 28, 2015 and information regarding RSUs and PRSUs outstanding and expected to vest as of June 28, 2015 is as follows: RSUs & PRSUs Outstanding Number of Shares Weighted Average Grant Date Fair Value (in thousands) Nonvested at December 28, 2014 650 $ 3.47 Granted 318 1.85 Vested (54 ) 2.04 Forfeited (35 ) — Nonvested at June 28, 2015 879 $ 3.10 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 second quarters of 2015 and 2014 was $0.48 and $1.01 per right, respectively. As of June 28, 2015 , 1,634,000 shares remained available for issuance under the 2009 ESPP including 1.0 million additional shares authorized in the second quarter. For the second quarter and first six months ended June 28, 2015 , the Company recorded stock-based compensation expense related to the 2009 ESPP of $72,000 and $151,000 , respectively. 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 Six Months Ended June 28, June 29, June 28, June 29, Expected term (months) 6.08 6.09 6.08 6.09 Risk-free interest rate 0.08 % 0.05 % 0.08 % 0.05 % Volatility 51.54 % 49.17 % 51.54 % 49.17 % Dividend yield — — — As of June 28, 2015 , the unrecognized stock-based compensation expense relating to the Company's 2009 ESPP was $121,000 and is expected to be recognized over a weighted average period of approximately 4.5 months. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 28, 2015 | |
Income Tax Disclosure [Abstract] | |
Income taxes | Income Taxes In the second quarters of 2015 and 2014 , the Company recorded net income tax expense of $21,000 and a net income tax benefit of $44,000 , respectively. For the six months ended June 28, 2015 and June 29, 2014 , the Company recorded net income tax expense of $61,000 and a net income tax benefit of $24,000 , respectively. The income tax expense for the second quarter of 2015 relates to income taxes from the Company's foreign operations, which are cost-plus entities. The income tax benefit for the second quarter of 2014 includes the net effect of the following: (i) income taxes from its foreign operations which are cost-plus entities; and (ii) the release of an unrecognized tax benefit in the period. 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 $52,000 and $51,000 of unrecognized tax benefits at June 28, 2015 and December 28, 2014 , respectively, which will result in a change in the Company's effective tax rate if recognized in future years. The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. For the six month period ended June 28, 2015 , the Company accrued $3,000 of interest and penalties. As of June 28, 2015 , the Company had approximately $27,000 of accrued interest and penalties related to uncertain tax positions. Included in the balance of unrecognized tax benefits at June 28, 2015 is $17,000 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 subject to U.S. federal income tax as well as income taxes in many U.S. states and foreign jurisdictions in which the Company operates. As of December 28, 2014, fiscal years 2010 onward remain open to examination by the U.S. taxing authorities and fiscal years 2006 onward remain open to examination in Canada. The U.S. federal and U.S. state taxing authorities may choose to audit tax returns for tax years beyond the statute of limitation period due to significant tax attribute carryforwards from prior years, making adjustments only to carryforward attributes. |
Information Concerning Product
Information Concerning Product Lines, Geographic Information and Revenue Concentration | 6 Months Ended |
Jun. 28, 2015 | |
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 Six Months Ended June 28, June 29, June 28, 2015 June 29, Revenue by product line (1) : New products $ 2,953 $ 4,482 $ 7,097 $ 13,398 Mature products 2,020 2,354 4,035 4,602 Total revenue $ 4,973 $ 6,836 $ 11,132 $ 18,000 _________________ (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 Six Months Ended June 28, June 29, June 28, 2015 June 29, 2014 Revenue by geography: Asia Pacific (1) $ 3,482 $ 4,511 $ 7,290 $ 13,839 North America (2) 1,087 973 2,929 2,073 Europe 404 1,352 913 2,088 Total revenue $ 4,973 $ 6,836 $ 11,132 $ 18,000 ___________ (1) Asia Pacific includes revenue from South Korea of $2.1 million , or 42% , of total revenue and $2.7 million , or 39% , of total revenue for the quarters ended June 28, 2015 and June 29, 2014, respectively. For the six months ended June 28, 2015 and June 29, 2014, revenue from South Korea was $4.5 million , or 40% , of total revenue and $10.4 million , or 58% , respectively. (2) North America includes revenue from the United States of $1.0 million , or 20% , of total revenue and $891,000 , or 13% , for the quarters ended June 28, 2015 and June 29, 2014, respectively. For the six months ended June 28, 2015 and June 29, 2014, revenue from United States was $2.8 million , or 25% , and $2.0 million , or 11% , respectively. The following distributors and customers accounted for 10% or more of the Company's revenue for the periods presented: Three Months Ended Six Months Ended June 28, June 29, June 28, 2015 June 29, 2014 Distributor "A" 24 % 18 % 27 % 12 % Customer "B" 14 % 11 % 15 % * Customer "G" 41 % 40 % 40 % 59 % * 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: June 28, December 28, Distributor "A" 39 % 34 % Customer "G" 38 % 28 % As of June 28, 2015 , less than 10% of the Company's long-lived assets, including property and equipment and other assets, were located outside the United States. |
Restructuring Charges
Restructuring Charges | 6 Months Ended |
Jun. 28, 2015 | |
Restructuring and Related Activities [Abstract] | |
Restructuring charges | Restructuring Charges In June 2015, the Company implemented a restructuring plan to re-align the organization to support the Company's sensor processing provider business model and growth strategy. This re-alignment resulted in a reduction of nine employees or 9% of the Company's global workforce. Pursuant to the restructuring plan, the Company recorded $169,000 of restructuring liabilities, consisting primarily of employee severance related costs. The restructuring liabilities are included in the "Liabilities" line item in its consolidated balance sheet. The activities affecting the liabilities for the second quarter of 2015 are summarized as follows: Restructuring Liabilities (In Thousands) Balance at December 28, 2014 $ — Accruals 169 Payments — Balance at June 28, 2015 $ 169 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 28, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and contingencies | Commitments and Contingencies Commitments 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 June 28, 2015 and December 28, 2014 , the Company had $913,000 and $552,000 , 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 June 28, 2015 , total outstanding purchase obligations were $1.9 million , of which $1.6 million were 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 second quarters of 2015 and 2014 was approximately $238,000 and $240,000 , respectively. Total rent expense, net of sublease income, for the six months of 2015 and 2014 was $477,000 and $471,000 , respectively. As of June 28, 2015 , future minimum lease commitments under the Company's operating leases, excluding property taxes and insurance are as follows: Operating Leases (in thousands) Fiscal Years 2015 (Remaining 6 months) $ 395 2016 698 2017 628 2018 642 $ 2,363 |
Litigation
Litigation | 6 Months Ended |
Jun. 28, 2015 | |
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. |
The Company and Basis of Pres21
The Company and Basis of Presentation (Policies) | 6 Months Ended |
Jun. 28, 2015 | |
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 second fiscal quarters for 2015 and for 2014 ended on Sunday, June 28, 2015 and June 29, 2014 , 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 June 28, 2015 , the Company's principal sources of liquidity consisted of cash and cash equivalents of $26.4 million and $5.0 million in available credit under its revolving line of credit with Silicon Valley Bank, which expires on June 27, 2016. This line of credit provides for committed loan advances of up to $6.0 million , subject to increase at the Company's election 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 U.S. 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 materially 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, policy | New Accounting Pronouncements In April 2015, the FASB issued ASU 2015-03, Simplifying Presentation of Debt Issuance Costs which amends the accounting guidance on the presentation of debt issuance costs. The guidance requires an entity to present debt issuance costs related to a recognized debt liability as a direct deduction from the carrying amount of that debt, consistent with debt discounts. The guidance is effective for annual reporting periods beginning after December 31, 2015 and interim periods beginning after December 15, 2016, and must be applied retrospectively to each prior reporting period presented. The Company is currently evaluating the impact of ASU 2015-03 on its consolidated financial statements and footnote disclosures. In February 2015, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update No. 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis (ASU 2015-02) , which is intended to improve the targeted areas of consolidation guidance for legal entities such as limited partnerships, limited liability corporations and securitization structures. In addition to reducing the number of consolidation models from four to two, the new standard simplifies the FASB accounting standards codification and improves the current U.S. GAAP by: placing more emphasis on risk of loss when determining a controlling financial interest; reducing the frequency of the application of related party guidance when determining a controlling financial interest in a variable interest entity, or VIE and changing consolidation conclusions for public and private companies in several industries that typically make use of limited partnerships or VIEs. This ASU 2015-02 is effective for annual periods ending after December 15, 2015, and interim periods beginning after December 15, 2015. Early adoption is permitted including adoption in an interim period. The Company is currently evaluating the impact of ASU 2015-02 on its consolidated financial statements and footnote disclosures. In January 2015, the FASB issued Accounting Standards Update No. 2015-01, Income Statement - Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items (ASU 2015-01) . This ASU 2015-01 eliminates from U.S. GAAP the concept of extraordinary items. Subtopic 225-20, Income Statement - Extraordinary and Unusual Items, requires that an entity separately classify, present and disclose extraordinary events and transactions. Presently, an event or transaction is presumed to be an ordinary and usual activity of a reporting entity unless evidence clearly supports its classification as an extraordinary item. If an event or transaction meets the criteria for extraordinary classification, an entity is required to segregate the extraordinary item from the results of ordinary operations and show such item separately in the income statement, net of tax, after income from continuing operations. The entity is also required to disclose applicable income taxes and either present or disclose earnings-per-share data applicable to the extraordinary item. This ASU 2015-01 is effective for annual periods ending after December 15, 2015, and interim periods beginning after December 15, 2015. Early adoption is permitted provided that the adopted guidance is applied from the beginning of the annual year in which such guidance is adopted. The Company is currently evaluating the impact of ASU 2015-01 on its consolidated financial statements and footnote disclosures. Other new accounting pronouncements are disclosed on the Annual Report on Form 10-K for the fiscal year ended December 28, 2014 filed with the SEC on March 5, 2015. |
Earnings per share, policy | 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. |
Share-based compensation, option and incentive plans policy | 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) | 6 Months Ended |
Jun. 28, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of supplemental balance sheet disclosures | As of June 28, December 28, (in thousands) Inventories: Raw material $ — $ — Work-in-process 1,798 1,191 Finished goods 1,203 3,761 $ 3,001 $ 4,952 Other current assets: Prepaid expenses $ 765 $ 1,042 Other 108 104 $ 873 $ 1,146 Property and equipment: Equipment $ 14,100 $ 14,047 Software 2,852 3,332 Furniture and fixtures 711 710 Leasehold improvements 714 595 18,377 18,684 Accumulated depreciation and amortization (15,688 ) (15,467 ) $ 2,689 $ 3,217 Accrued liabilities: Employee related accruals $ 1,792 $ 1,356 Restructuring accruals - See Note 12 169 — Other 108 218 $ 2,069 $ 1,574 |
Obligations (Tables)
Obligations (Tables) | 6 Months Ended |
Jun. 28, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of obligations | As of June 28, December 28, (in thousands) Debt and capital lease obligations: Revolving line of credit $ 1,000 $ 1,000 Capital leases 258 416 1,258 1,416 Current portion of debt and capital lease obligations (1,202 ) (225 ) Long term portion of debt and capital lease obligations $ 56 $ 1,191 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 28, 2015 | |
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 June 28, 2015 and December 28, 2014 , consistent with the fair value hierarchy provisions of the authoritative guidance (in thousands): As of June 28, 2015 As of December 28, 2014 Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Assets: Money market funds (1) $ 26,318 $ 1,013 $ 25,305 $ — $ 29,425 $ 874 $ 28,551 $ — Total assets $ 26,318 $ 1,013 $ 25,305 $ — $ 29,425 $ 874 $ 28,551 $ — _________________ (1) Money market funds are presented as a part of cash and cash equivalents on the accompanying consolidated balance sheets as of June 28, 2015 and December 28, 2014 . |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 28, 2015 | |
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 six months ended June 28, 2015 and June 29, 2014 was as follows (in thousands): Three Months Ended Six Months Ended June 28, June 29, June 28, June 29, Cost of revenue $ 27 $ 36 $ 66 $ 78 Research and development 212 221 403 574 Selling, general and administrative 252 309 519 646 Total costs and expenses $ 491 $ 566 $ 988 $ 1,298 |
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 Six Months Ended June 28, June 29, June 28, June 29, Expected term (years) — 6.00 4.78 6.19 Risk-free interest rate — % 1.90 % 1.40 % 1.98 % Expected volatility — % 55.70 % 52.11 % 55.10 % 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 six months ended June 28, 2015 : Shares Available for Grant (in thousands) Balance at December 28, 2014 1,139 Authorized 2,500 Options granted (80 ) Options forfeited or expired 174 RSUs granted (298 ) PRSUs granted (20 ) RSUs forfeited or expired 35 Balance at June 28, 2015 3,450 |
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 six months of 2015 : Number of Shares Weighted Average Exercise Price Weighted Average Remaining Term Aggregate Intrinsic Value (in thousands) (in years) (in thousands) Balance outstanding at December 28, 2014 5,682 $ 2.67 Granted 80 2.00 Forfeited or expired (174 ) 3.41 Exercised (117 ) 0.98 Balance outstanding at June 28, 2015 5,471 $ 2.67 4.84 $ 292 Exercisable at June 28, 2015 4,631 $ 2.61 4.20 $ 292 Vested and expected to vest at June 28, 2015 5,317 $ 2.66 4.72 $ 292 |
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 six months ended June 28, 2015 and information regarding RSUs and PRSUs outstanding and expected to vest as of June 28, 2015 is as follows: RSUs & PRSUs Outstanding Number of Shares Weighted Average Grant Date Fair Value (in thousands) Nonvested at December 28, 2014 650 $ 3.47 Granted 318 1.85 Vested (54 ) 2.04 Forfeited (35 ) — Nonvested at June 28, 2015 879 $ 3.10 |
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 Six Months Ended June 28, June 29, June 28, June 29, Expected term (months) 6.08 6.09 6.08 6.09 Risk-free interest rate 0.08 % 0.05 % 0.08 % 0.05 % Volatility 51.54 % 49.17 % 51.54 % 49.17 % Dividend yield — — — |
Information Concerning Produc26
Information Concerning Product Lines, Geographic Information and Revenue Concentration (Tables) | 6 Months Ended |
Jun. 28, 2015 | |
Segment Reporting [Abstract] | |
Schedule of revenue by product line | The following is a breakdown of revenue by product line (in thousands): Three Months Ended Six Months Ended June 28, June 29, June 28, 2015 June 29, Revenue by product line (1) : New products $ 2,953 $ 4,482 $ 7,097 $ 13,398 Mature products 2,020 2,354 4,035 4,602 Total revenue $ 4,973 $ 6,836 $ 11,132 $ 18,000 _________________ (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 Six Months Ended June 28, June 29, June 28, 2015 June 29, 2014 Revenue by geography: Asia Pacific (1) $ 3,482 $ 4,511 $ 7,290 $ 13,839 North America (2) 1,087 973 2,929 2,073 Europe 404 1,352 913 2,088 Total revenue $ 4,973 $ 6,836 $ 11,132 $ 18,000 ___________ (1) Asia Pacific includes revenue from South Korea of $2.1 million , or 42% , of total revenue and $2.7 million , or 39% , of total revenue for the quarters ended June 28, 2015 and June 29, 2014, respectively. For the six months ended June 28, 2015 and June 29, 2014, revenue from South Korea was $4.5 million , or 40% , of total revenue and $10.4 million , or 58% , respectively. (2) North America includes revenue from the United States of $1.0 million , or 20% , of total revenue and $891,000 , or 13% , for the quarters ended June 28, 2015 and June 29, 2014, respectively. |
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 Six Months Ended June 28, June 29, June 28, 2015 June 29, 2014 Distributor "A" 24 % 18 % 27 % 12 % Customer "B" 14 % 11 % 15 % * Customer "G" 41 % 40 % 40 % 59 % * 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: June 28, December 28, Distributor "A" 39 % 34 % Customer "G" 38 % 28 % |
Restructuring Charges (Tables)
Restructuring Charges (Tables) | 6 Months Ended |
Jun. 28, 2015 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and related costs | Restructuring Liabilities (In Thousands) Balance at December 28, 2014 $ — Accruals 169 Payments — Balance at June 28, 2015 $ 169 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 28, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future minimum lease commitments | As of June 28, 2015 , future minimum lease commitments under the Company's operating leases, excluding property taxes and insurance are as follows: Operating Leases (in thousands) Fiscal Years 2015 (Remaining 6 months) $ 395 2016 698 2017 628 2018 642 $ 2,363 Contingencies One of the Company's licensors contends that the Company owes back royalties on sales of the Company's ArcticLink III VX devices. Based on the terms and conditions of the Amended and Restated License Agreement between the parties, the Company does not believe it is liable for any royalty payments on these sales. Counsel for the Company has spoken with counsel for the licensor; however, the matter remains unresolved. The possible loss relating to this matter ranges between $0 and $250,000 as of June 28, 2015. |
The Company and Basis of Pres29
The Company and Basis of Presentation (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 28, 2015 | Jun. 28, 2015 | Dec. 28, 2014 | Jun. 29, 2014 | Dec. 29, 2013 | |
Liquidity [Line Items] | |||||
Cash and cash equivalents | $ 26,415,000 | $ 26,415,000 | $ 30,050,000 | $ 34,330,000 | $ 37,406,000 |
Revolving credit facility | Silicon valley bank | |||||
Liquidity [Line Items] | |||||
Line of credit facility, additional borrowing capacity | 5,000,000 | 5,000,000 | |||
Maximum borrowing capacity | $ 6,000,000 | $ 6,000,000 | |||
Samsung | |||||
Liquidity [Line Items] | |||||
Percentage of revenue from major customer | 41.00% | 40.00% | |||
Maximum | Revolving credit facility | Silicon valley bank | |||||
Liquidity [Line Items] | |||||
Additional borrowing capacity | $ 10,000,000 | $ 10,000,000 |
Net Loss Per Share (Details)
Net Loss Per Share (Details) - shares shares in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 28, 2015 | Jun. 29, 2014 | Jun. 28, 2015 | Jun. 29, 2014 | |
Stock compensation plan | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 7.1 | 6.6 | 7.1 | 6.6 |
Warrant | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 2.3 | 4.2 |
Balance Sheet Components (Detai
Balance Sheet Components (Details) - USD ($) $ in Thousands | Jun. 28, 2015 | Dec. 28, 2014 |
Inventories: | ||
Raw material | $ 0 | $ 0 |
Work-in-process | 1,798 | 1,191 |
Finished goods | 1,203 | 3,761 |
Inventories | 3,001 | 4,952 |
Other current assets: | ||
Prepaid expenses | 765 | 1,042 |
Other | 108 | 104 |
Other current assets | 873 | 1,146 |
Accrued liabilities: | ||
Employee related accruals | 1,792 | 1,356 |
Restructuring accruals - See Note 12 | 169 | 0 |
Other | 108 | 218 |
Accrued liabilities | $ 2,069 | $ 1,574 |
Balance Sheet Components (Prope
Balance Sheet Components (Property and Equipment) (Details) - USD ($) $ in Thousands | Jun. 28, 2015 | Dec. 28, 2014 |
Property and equipment: | ||
Property and equipment, gross | $ 18,377 | $ 18,684 |
Accumulated depreciation and amortization | (15,688) | (15,467) |
Property and equipment, net | 2,689 | 3,217 |
Equipment | ||
Property and equipment: | ||
Property and equipment, gross | 14,100 | 14,047 |
Software | ||
Property and equipment: | ||
Property and equipment, gross | 2,852 | 3,332 |
Furniture and fixtures | ||
Property and equipment: | ||
Property and equipment, gross | 711 | 710 |
Leasehold improvements | ||
Property and equipment: | ||
Property and equipment, gross | $ 714 | $ 595 |
Schedule of Obligations (Detail
Schedule of Obligations (Details) - USD ($) $ in Thousands | Jun. 28, 2015 | Dec. 28, 2014 |
Debt and capital lease obligations: | ||
Revolving line of credit | $ 1,000 | $ 1,000 |
Capital leases | 258 | 416 |
Debt and capital lease obligations | 1,258 | 1,416 |
Current portion of debt and capital lease obligations | (1,202) | (225) |
Long term portion of debt and capital lease obligations | $ 56 | $ 1,191 |
Obligations (Narrative) (Detail
Obligations (Narrative) (Details) | 1 Months Ended | 6 Months Ended | |||||||||
Jan. 31, 2017USD ($) | Jan. 31, 2016USD ($) | Dec. 31, 2014USD ($) | Aug. 31, 2014USD ($) | Jul. 31, 2014 | May. 31, 2014USD ($) | Dec. 29, 2013USD ($) | Jun. 28, 2015USD ($) | Apr. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Dec. 28, 2014USD ($) | |
Debt and Capital Lease Obligations [Line Items] | |||||||||||
Revolving line of credit | $ 1,000,000 | $ 1,000,000 | |||||||||
Capital lease obligations | 258,000 | 416,000 | |||||||||
Current portion of capital lease obligations | 202,000 | $ 225,000 | |||||||||
Capital Lease Obligation, Leased July 2014 [Member] | Software | |||||||||||
Debt and Capital Lease Obligations [Line Items] | |||||||||||
Capital lease, term | 41 months | ||||||||||
Capital lease, implied interest rate | 3.15% | ||||||||||
Capital lease obligations | 111,000 | ||||||||||
Current portion of capital lease obligations | 55,000 | ||||||||||
July lease payment one | Software | |||||||||||
Debt and Capital Lease Obligations [Line Items] | |||||||||||
Capital lease, periodic payment | $ 42,000 | ||||||||||
July lease payment two | Software | |||||||||||
Debt and Capital Lease Obligations [Line Items] | |||||||||||
Capital lease, periodic payment | $ 16,000 | ||||||||||
Capital lease obligation, leased may 2014 | Software | |||||||||||
Debt and Capital Lease Obligations [Line Items] | |||||||||||
Capital lease, term | 3 years | ||||||||||
Capital lease, implied interest rate | 4.80% | ||||||||||
Capital lease, periodic payment | $ 84,000 | ||||||||||
Capital lease obligations | 80,000 | ||||||||||
Capital lease obligation, leased december 2013 | Software | |||||||||||
Debt and Capital Lease Obligations [Line Items] | |||||||||||
Capital lease, term | 2 years | ||||||||||
Capital lease, implied interest rate | 4.34% | ||||||||||
Capital lease, periodic payment | $ 34,000 | ||||||||||
Capital lease obligations | 67,000 | ||||||||||
Revolving credit facility | Silicon valley bank | |||||||||||
Debt and Capital Lease Obligations [Line Items] | |||||||||||
Maximum borrowing capacity | 6,000,000 | ||||||||||
Revolving line of credit | $ 1,000,000 | ||||||||||
Interest rate | 3.06% | ||||||||||
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 | ||||||||||
Scenario, forecast | Capital Lease Obligation, Leased July 2014 [Member] | Software | |||||||||||
Debt and Capital Lease Obligations [Line Items] | |||||||||||
Capital lease, periodic payment | $ 174,000 | ||||||||||
Scenario, forecast | July lease payment three | Software | |||||||||||
Debt and Capital Lease Obligations [Line Items] | |||||||||||
Capital lease, periodic payment | $ 58,000 | ||||||||||
Scenario, forecast | July lease payment four | Software | |||||||||||
Debt and Capital Lease Obligations [Line Items] | |||||||||||
Capital lease, periodic payment | $ 58,000 | ||||||||||
Scenario, forecast | Capital lease obligation, leased may 2014 | Software | |||||||||||
Debt and Capital Lease Obligations [Line Items] | |||||||||||
Capital lease obligations | $ 252,000 | ||||||||||
Scenario, forecast | Capital lease obligation, leased december 2013 | Software | |||||||||||
Debt and Capital Lease Obligations [Line Items] | |||||||||||
Capital lease obligations | $ 273,000 |
Schedule of Fair Value Assets M
Schedule of Fair Value Assets Measured on Recurring Basis (Details) - Fair value, measurements, recurring - USD ($) $ in Thousands | Jun. 28, 2015 | Dec. 28, 2014 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total assets | $ 26,318 | $ 29,425 | |
Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total assets | 1,013 | 874 | |
Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total assets | 25,305 | 28,551 | |
Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total assets | 0 | 0 | |
Money market funds | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Money market funds (1) | [1] | 26,318 | 29,425 |
Money market funds | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Money market funds (1) | [1] | 1,013 | 874 |
Money market funds | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Money market funds (1) | [1] | 25,305 | 28,551 |
Money market funds | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Money market funds (1) | [1] | $ 0 | $ 0 |
[1] | Money market funds are presented as a part of cash and cash equivalents on the accompanying consolidated balance sheets as of June 28, 2015 and December 28, 2014. |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) | 1 Months Ended | |||
Nov. 30, 2013 | Jun. 28, 2015 | Dec. 28, 2014 | Jul. 31, 2013 | |
Class of Stock [Line Items] | ||||
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 | ||
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 | ||
Maximum offering | $ 40,000,000 | |||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | $ 0.001 | |
Closing stock price (in dollars per share) | $ 2.90 | $ 1.61 | ||
Proceeds from offering | $ 23,100,000 | |||
Stock issuance cost | $ 2,200,000 | |||
Warrants outstanding (in warrants) | 2,300,000 | |||
November 2009 financing | ||||
Class of Stock [Line Items] | ||||
Warrants outstanding (in warrants) | 1,900,000 | |||
Exercise price of warrants (in dollars per unit) | $ 2.15 | |||
June 2012 financing | ||||
Class of Stock [Line Items] | ||||
Warrants outstanding (in warrants) | 2,300,000 | |||
Exercise price of warrants (in dollars per unit) | $ 2.98 | |||
Common stock | ||||
Class of Stock [Line Items] | ||||
Shares issued in aggregate (in shares) | 8,740,000 |
Employee Stock Plans (Details)
Employee Stock Plans (Details) - shares | Apr. 23, 2015 | Jun. 28, 2015 | Apr. 22, 2009 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | ||
Initial vesting | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percent of options vested | 25.00% | ||
1999 stock plan | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Term | 10 years | ||
1999 stock plan | Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares available for grant (in shares) | 0 | ||
1999 stock plan | Initial vesting | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 1 year | ||
1999 stock plan | Periodic vesting | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percent of options vested | 2.08% | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 1 month | ||
2009 stock plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares available for grant (in shares) | 9,600,000 | ||
Additional shares reserved for issuance (in shares) | 2,500,000 | ||
2009 stock plan | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of previously cancelled, forfeited or repurchased shares available for reissuance (in shares) | 10,000,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Term | 10 years | ||
2009 stock plan | Initial vesting | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 1 year | ||
2009 stock plan | Periodic vesting | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percent of options vested | 2.08% | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 1 month | ||
Employee stock purchase plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares available for grant (in shares) | 3,300,000 | ||
Additional shares reserved for issuance (in shares) | 1,000,000 | ||
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% | ||
Share-based Compensation Arrangement by Share-based Payment Award, Offering Period | 6 months |
Schedule of Allocation of Recog
Schedule of Allocation of Recognized Period Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 28, 2015 | Jun. 29, 2014 | Jun. 28, 2015 | Jun. 29, 2014 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total costs and expenses | $ 491 | $ 566 | $ 988 | $ 1,298 |
Cost of revenue | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total costs and expenses | 27 | 36 | 66 | 78 |
Research and development | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total costs and expenses | 212 | 221 | 403 | 574 |
Selling, general and administrative | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total costs and expenses | $ 252 | $ 309 | $ 519 | $ 646 |
Schedule of Valuation Assumptio
Schedule of Valuation Assumptions (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 28, 2015 | Jun. 29, 2014 | Jun. 28, 2015 | Jun. 29, 2014 | |
Stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected term | 6 years | 4 years 9 months 11 days | 6 years 2 months 9 days | |
Risk-free interest rate | 0.00% | 1.90% | 1.40% | 1.98% |
Expected volatility | 0.00% | 55.70% | 52.11% | 55.10% |
Expected dividend yield | 0.00% | 0.00% | 0.00% | 0.00% |
Employee stock purchase plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected term | 6 months 2 days | 6 months 3 days | 6 months 2 days | 6 months 3 days |
Risk-free interest rate | 0.08% | 0.05% | 0.08% | 0.05% |
Expected volatility | 51.54% | 49.17% | 51.54% | 49.17% |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Schedule of Stock Based Compens
Schedule of Stock Based Compensation Award Activity (Details) - shares | Apr. 23, 2015 | Jun. 28, 2015 |
Share-based Compensation Arrangement by Share-based Payment Award, Available for Grant, Number of Shares [Roll Forward] | ||
Options granted (in shares) | (80,000) | |
Options forfeited or expired (in shares) | 174,000 | |
RSUs granted (in shares) | (318,000) | |
PRSUs forfeited or expired (in shares) | 35,000 | |
2009 stock plan | ||
Share-based Compensation Arrangement by Share-based Payment Award, Available for Grant, Number of Shares [Roll Forward] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized | 2,500,000 | |
Balance at end of period (in shares) | 9,600,000 | |
2009 stock plan | Restricted stock units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award, Available for Grant, Number of Shares [Roll Forward] | ||
Balance at beginning of period (in shares) | 1,139,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized | 2,500,000 | |
Options granted (in shares) | (80,000) | |
Options forfeited or expired (in shares) | 174,000 | |
RSUs granted (in shares) | (298,000) | |
Balance at end of period (in shares) | 3,450,000 | |
2009 stock plan | Preferred restricted stock units | ||
Share-based Compensation Arrangement by Share-based Payment Award, Available for Grant, Number of Shares [Roll Forward] | ||
RSUs granted (in shares) | (20,000) | |
PRSUs forfeited or expired (in shares) | 35,000 |
Schedule of Stock Options Activ
Schedule of Stock Options Activity (Details) - Jun. 28, 2015 - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | Total |
Number Of Shares | |
Balance outstanding at beginning of period, in shares | 5,682 |
Granted, in shares | 80 |
Forfeited or expired, in shares | (174) |
Exercised, in shares | (117) |
Balance outstanding at end of period, in shares | 5,471 |
Exercisable, in shares | 4,631 |
Vested and expected to vest, in shares | 5,317 |
Weighted Average Exercise Price | |
Balance outstanding at beginning of period, in dollars per share | $ 2.67 |
Granted, in dollars per share | 2 |
Forfeited or expired, in dollars per share | 3.41 |
Exercised, in dollars per share | 0.98 |
Balance outstanding at end of period, in dollars per share | 2.67 |
Exercisable, in dollars per share | 2.61 |
Vested and expected to vest, in dollars per share | $ 2.66 |
Weighted Average Remaining Term | |
Balance outstanding | 4 years 10 months 2 days |
Exercisable | 4 years 2 months 12 days |
Vested and expected to vest | 4 years 8 months 19 days |
Aggregate Intrinsic Value | |
Balance outstanding | $ 292 |
Exercisable | 292 |
Vested and expected to vest | $ 292 |
Schedule of Restricted Stock an
Schedule of Restricted Stock and Restricted Stock Units Activity (Details) - 6 months ended Jun. 28, 2015 - $ / shares shares in Thousands | Total |
Number of Shares | |
Nonvested at beginning of period, in shares | 650 |
Granted, in shares | 318 |
Vested, in shares | (54) |
Forfeited, in shares | (35) |
Nonvested at end of period, in shares | 879 |
Weighted Average Grant Date Fair Value | |
Nonvested at beginning of period, in dollars per share | $ 3.47 |
Granted, in dollars per share | 1.85 |
Vested, in dollars per share | 2.04 |
Forfeited, in dollars per share | 0 |
Nonvested at end of period, in dollars per share | $ 3.10 |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 28, 2015 | Jun. 29, 2014 | Jun. 28, 2015 | Jun. 29, 2014 | Dec. 28, 2014 | 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) | $ 1.86 | $ 0.90 | $ 2.10 | |||
Fair value of unvested stock options | $ 2,700 | $ 2,100 | $ 2,700 | $ 2,100 | ||
Weighted average recognition period of unrecognized stock-based compensation expense | 4 months 15 days | |||||
Closing stock price (in dollars per share) | $ 1.61 | $ 1.61 | $ 2.90 | |||
Total cash received from employees as a result of employee stock option exercises | $ 114 | 4,200 | ||||
The total intrinsic value of options exercised | 81 | 3,600 | ||||
Stock-based compensation | $ 491 | $ 566 | $ 988 | $ 1,298 | ||
Weighted average estimated fair value (in dollars per share) | $ 3.10 | $ 3.10 | $ 3.47 | |||
Stock options | ||||||
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 3 months 4 days | |||||
Stock-based compensation | $ 211 | $ 459 | ||||
Restricted stock award | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock-based compensation | 188 | 343 | ||||
Performance restricted stock unit | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock-based compensation | 20 | 35 | ||||
Unrecognized stock-based compensation expense | 1,700 | $ 1,700 | ||||
Employee stock purchase plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Weighted average recognition period of unrecognized stock-based compensation expense | 1 month 15 days | |||||
Unrecognized stock-based compensation expense | $ 121 | $ 121 | ||||
Weighted average estimated fair value (in dollars per share) | $ 0.48 | $ 1.01 | $ 0.48 | $ 1.01 | ||
Shares available for issuance (in shares) | 1,634,000 | 1,634,000 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized | 1,000,000 | |||||
Compensation expense related to ESPP | $ 72 | $ 151 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 28, 2015 | Jun. 29, 2014 | Jun. 28, 2015 | Jun. 29, 2014 | Dec. 28, 2014 | |
Income Tax Disclosure [Abstract] | |||||
Tax (benefit) provision from income taxes | $ 21 | $ (44) | $ 61 | $ (24) | |
Unrecognized tax benefits | 52 | 52 | $ 51 | ||
Penalties and interest expense | 3 | ||||
Accrued interest and penalties related to uncertain tax positions | 27 | 27 | |||
Unrecognized tax benefits expiring from lapse of applicable statute of limitation in next twelve months | $ 17 | $ 17 |
Schedule of Revenue by Product
Schedule of Revenue by Product Line (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 28, 2015USD ($)segment | Jun. 29, 2014USD ($)segment | Jun. 28, 2015USD ($) | Jun. 29, 2014USD ($) | |||
Revenue from External Customer [Line Items] | ||||||
Number of reportable segments | segment | 1 | 1 | ||||
Total revenue | [1] | $ 4,973 | $ 6,836 | $ 11,132 | $ 18,000 | |
New products | ||||||
Revenue from External Customer [Line Items] | ||||||
Total revenue | 2,953 | [1] | 4,482 | 7,097 | 13,398 | |
Mature products | ||||||
Revenue from External Customer [Line Items] | ||||||
Total revenue | $ 2,020 | [1] | $ 2,354 | $ 4,035 | $ 4,602 | |
[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 Geograph
Schedule of Revenue by Geographical Area (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 28, 2015 | Jun. 29, 2014 | Jun. 28, 2015 | Jun. 29, 2014 | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue | [1] | $ 4,973 | $ 6,836 | $ 11,132 | $ 18,000 |
Asia pacific | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue | [2] | 3,482 | 4,511 | 7,290 | 13,839 |
North america | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue | [3] | 1,087 | 973 | 2,929 | 2,073 |
Europe | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue | 404 | 1,352 | 913 | 2,088 | |
Korea | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue | $ 2,100 | $ 2,700 | $ 4,500 | $ 10,400 | |
Revenue percentage | 42.00% | 39.00% | 40.00% | 58.00% | |
United States | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue | $ 1,000 | $ 891 | $ 2,800 | $ 2,000 | |
Revenue percentage | 20.00% | 13.00% | 25.00% | 11.00% | |
[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. | ||||
[2] | Asia Pacific includes revenue from South Korea of $2.1 million, or 42%, of total revenue and $2.7 million, or 39%, of total revenue for the quarters ended June 28, 2015 and June 29, 2014, respectively. | ||||
[3] | North America includes revenue from the United States of $1.0 million, or 20%, of total revenue and $891,000, or 13%, for the quarters ended June 28, 2015 and June 29, 2014, respectively. |
Schedule of Customer Concentrat
Schedule of Customer Concentration (Details) | 3 Months Ended | 6 Months Ended | |||
Jun. 28, 2015 | Jun. 29, 2014 | Jun. 28, 2015 | Jun. 29, 2014 | Dec. 28, 2014 | |
Distributor A | |||||
Revenue, Major Customer [Line Items] | |||||
Percentage of revenue from major customer | 24.00% | 18.00% | 27.00% | 12.00% | |
Percentage of accounts receivable from major customer | 39.00% | 39.00% | 34.00% | ||
Customer B | |||||
Revenue, Major Customer [Line Items] | |||||
Percentage of revenue from major customer | 14.00% | 11.00% | 15.00% | ||
Customer G | |||||
Revenue, Major Customer [Line Items] | |||||
Percentage of revenue from major customer | 41.00% | 40.00% | 40.00% | 59.00% | |
Percentage of accounts receivable from major customer | 38.00% | 38.00% | 28.00% |
Restructuring Charges Restructu
Restructuring Charges Restructuring Charges (Details) - Jun. 28, 2015 $ in Thousands | USD ($)employee | USD ($) |
Restructuring and Related Activities [Abstract] | ||
Restructuring and Related Cost, Number of Positions Eliminated | employee | 9 | |
Restructuring Percentage of Reduction of Employees | 9.00% | |
Restructuring Reserve [Roll Forward] | ||
Accruals | $ 169 | $ 169 |
Payments | 0 | |
Ending balance | $ 169 | $ 169 |
Schedule of Future Minimum Leas
Schedule of Future Minimum Lease Payments for Operating Leases (Details) $ in Thousands | Jun. 28, 2015USD ($) |
Future minimum lease commitments under operating leases: | |
2015 (Remaining 6 months) | $ 395 |
2,016 | 698 |
2,017 | 628 |
2,018 | 642 |
Total | $ 2,363 |
Commitments and Contingencies50
Commitments and Contingencies (Narrative) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 28, 2015 | Jun. 29, 2014 | Jun. 28, 2015 | Jun. 29, 2014 | Dec. 28, 2014 | |
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |||||
Total rent expense, net of sublease income | $ 238,000 | $ 240,000 | $ 477,000 | $ 471,000 | |
Wafer purchase commitment | |||||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |||||
Outstanding commitment for purchases | 913,000 | 913,000 | $ 552,000 | ||
Other goods and services | |||||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |||||
Purchase obligation | 1,900,000 | 1,900,000 | |||
Purchase obligations due in twelve months | 1,600,000 | 1,600,000 | |||
Royalty claims | |||||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |||||
Loss contingency, range of possible loss, minimum | 0 | 0 | |||
Loss contingency, range of possible loss, maximum | $ 250,000 | $ 250,000 |