Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Jan. 03, 2016 | Mar. 11, 2016 | Jun. 28, 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-K | ||
Document Period End Date | Jan. 3, 2016 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 56,976,921 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 81,507,156 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jan. 03, 2016 | Dec. 28, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 19,136 | $ 30,050 |
Accounts receivable, net of allowances for doubtful accounts of $0 | 1,601 | 1,552 |
Inventories | 2,878 | 4,952 |
Other current assets | 1,312 | 1,146 |
Total current assets | 24,927 | 37,700 |
Property and equipment, net | 3,315 | 3,217 |
Other assets | 219 | 222 |
TOTAL ASSETS | 28,461 | 41,139 |
Current liabilities: | ||
Trade payables | 4,032 | 2,506 |
Accrued liabilities | 1,482 | 1,574 |
Current portion of capital software lease obligations | 281 | 225 |
Total current liabilities | 5,795 | 4,305 |
Long-term liabilities: | ||
Revolving line of credit | 2,000 | 1,000 |
Capital software lease obligations, less current portion | 208 | 191 |
Other long-term liabilities | 133 | 76 |
Total liabilities | $ 8,136 | $ 5,572 |
Commitments and contingencies | ||
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; 56,904 and 56,182 shares issued and outstanding | 57 | 56 |
Additional paid-in capital | 241,024 | 238,419 |
Accumulated deficit | (220,756) | (202,908) |
Total stockholders' equity | 20,325 | 35,567 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 28,461 | $ 41,139 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jan. 03, 2016 | 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 | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 56,904,000 | 56,182,000 |
Common stock, shares outstanding | 56,904,000 | 56,182,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jan. 03, 2016 | Dec. 28, 2014 | Dec. 29, 2013 | |
Income Statement [Abstract] | |||
Revenue | $ 18,956 | $ 27,845 | $ 26,072 |
Cost of revenue | 11,411 | 16,796 | 17,305 |
Gross profit | 7,545 | 11,049 | 8,767 |
Operating expenses: | |||
Research and development | 14,144 | 12,186 | 8,375 |
Selling, general and administrative | 10,619 | 11,663 | 12,002 |
Restructuring costs | 295 | 0 | 181 |
Loss from operations | (17,513) | (12,800) | (11,791) |
Gain on sale of TowerJazz Semiconductor Ltd. Shares | 0 | 0 | 181 |
Interest expense | (82) | (85) | (54) |
Interest income and other expense, net | (107) | (126) | (157) |
Income (loss) before income taxes | (17,702) | (13,011) | (11,821) |
Provision for income taxes | 146 | 68 | 455 |
Net loss | $ (17,848) | $ (13,079) | $ (12,276) |
Net loss per share: | |||
Basic (in dollars per share) | $ (0.32) | $ (0.23) | $ (0.27) |
Diluted (in dollars per share) | $ (0.32) | $ (0.23) | $ (0.27) |
Weighted average shares: | |||
Basic (in shares) | 56,472 | 55,401 | 45,762 |
Diluted (in shares) | 56,472 | 55,401 | 45,762 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 03, 2016 | Dec. 28, 2014 | Dec. 29, 2013 | |
Statement of Comprehensive Income [Abstract] | |||
Net loss | $ (17,848) | $ (13,079) | $ (12,276) |
Other comprehensive income, net of tax: | |||
Change in unrealized gain on available-for-sale investments | 0 | 0 | 11 |
Total comprehensive loss | $ (17,848) | $ (13,079) | $ (12,265) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 03, 2016 | Dec. 28, 2014 | Dec. 29, 2013 | |
Cash flows from operating activities: | |||
Net loss | $ (17,848) | $ (13,079) | $ (12,276) |
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Depreciation and amortization | 1,409 | 1,510 | 1,338 |
Shares issued to third parties for services provided | 87 | 0 | 0 |
Stock-based compensation | 1,941 | 2,242 | 1,979 |
Write-down of inventories | 229 | 119 | 551 |
Gain on TowerJazz Semiconductor Ltd. Shares | 0 | 0 | (181) |
Tax effect on other comprehensive income (loss) | 0 | 0 | 273 |
Loss on disposal of equipment | 0 | 0 | 27 |
Write-off of equipment | 8 | 5 | 96 |
Bad debt expense | 0 | 0 | (20) |
Changes in operating assets and liabilities: | |||
Accounts receivable | (49) | 1,709 | (1,999) |
Inventories | 1,845 | (935) | (1,659) |
Other assets | 300 | 604 | (361) |
Trade payables | 260 | (2,002) | 1,379 |
Accrued liabilities | (94) | (882) | 1,817 |
Deferred income | 26 | 0 | 0 |
Other long-term liabilities | 57 | (45) | (20) |
Net cash used in operating activities | (11,829) | (10,754) | (9,056) |
Cash flows from investing activities: | |||
Capital expenditures for property and equipment | (346) | (1,046) | (1,257) |
Proceeds from sale of equipment | 0 | 2 | 0 |
Proceeds from sale provided by TowerJazz Semiconductor Ltd. shares | 0 | 0 | 265 |
Net cash used in investing activities | (346) | (1,044) | (992) |
Cash flows from financing activities: | |||
Payment of capital software lease obligations | $ (293) | (300) | (216) |
Stock issuance cost | 40 | (2,219) | |
Proceeds from line of credit | $ 1,000 | 0 | 1,000 |
Proceeds from issuance of common stock | 554 | 4,702 | 26,311 |
Net cash provided by financing activities | 1,261 | 4,442 | 24,876 |
Net (decrease)/increase in cash and cash equivalents | (10,914) | (7,356) | 14,828 |
Cash and cash equivalents at beginning of period | 30,050 | 37,406 | 22,578 |
Cash and cash equivalents at end of period | 19,136 | 30,050 | 37,406 |
Supplemental disclosures of cash flow information: | |||
Interest paid | 77 | 85 | 44 |
Income taxes paid | 121 | 48 | 100 |
Supplemental schedule of non-cash investing and financing activities : | |||
Capital software lease obligation to finance capital expenditures | 489 | 416 | 310 |
Purchase of equipment included in accounts payable | 977 | 441 | 33 |
Issuance of restricted stock units for accrued compensation | 0 | 1,064 | 0 |
Stock Warrants exercised in cashless transactions, net | $ 0 | $ 78 | $ 0 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock at Par Value | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit |
Beginning balance (in shares) at Dec. 30, 2012 | 44,506 | ||||
Beginning balance at Dec. 30, 2012 | $ 27,278 | $ 45 | $ 204,797 | $ (11) | $ (177,553) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Common stock issued under stock plans and employee stock purchase plans (in shares) | 542 | ||||
Common stock issued under stock plans and employee stock purchase plans | 966 | $ 1 | 965 | ||
Private stock Offering, net of issuance costs and warrants (in shares) | 8,740 | ||||
Private stock offering, net of issuance costs and warrants | 23,126 | $ 8 | 23,118 | ||
Change in unrealized gain on available-for-sale securities | 11 | 11 | |||
Stock-based compensation | 1,493 | 1,493 | |||
Net loss | (12,276) | (12,276) | |||
Ending balance (in shares) at Dec. 29, 2013 | 53,788 | ||||
Ending balance at Dec. 29, 2013 | 40,598 | $ 54 | 230,373 | 0 | (189,829) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Common stock issued under stock plans and employee stock purchase plans (in shares) | 2,358 | ||||
Common stock issued under stock plans and employee stock purchase plans | 4,702 | $ 2 | 4,700 | ||
Private stock Offering, net of issuance costs and warrants (in shares) | 0 | ||||
Private stock offering, net of issuance costs and warrants | 40 | $ 0 | 40 | ||
Issuance of common stock from exercise of warrants (in shares) | 36 | ||||
Stock-based compensation | 3,306 | 3,306 | |||
Net loss | (13,079) | (13,079) | |||
Ending balance (in shares) at Dec. 28, 2014 | 56,182 | ||||
Ending balance at Dec. 28, 2014 | 35,567 | $ 56 | 238,419 | 0 | (202,908) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Common stock issued under stock plans and employee stock purchase plans (in shares) | 722 | ||||
Common stock issued under stock plans and employee stock purchase plans | 554 | $ 1 | 553 | ||
Stock-based compensation | 2,052 | 2,052 | |||
Net loss | (17,848) | (17,848) | |||
Ending balance (in shares) at Jan. 03, 2016 | 56,904 | ||||
Ending balance at Jan. 03, 2016 | $ 20,325 | $ 57 | $ 241,024 | $ 0 | $ (220,756) |
THE COMPANY AND BASIS OF PRESEN
THE COMPANY AND BASIS OF PRESENTATION | 12 Months Ended |
Jan. 03, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
THE COMPANY AND BASIS OF PRESENTATION | THE COMPANY AND BASIS OF PRESENTATION QuickLogic Corporation, referenced herein as QuickLogic or the Company, was founded in 1988 and reincorporated in Delaware in 1999. The Company develops and markets low power customizable semiconductor and software algorithm solutions that enable customers to differentiate their products by adding new features, extending battery life, becoming more contextually aware and improving the visual experience of the Smartphone, Wearable, Tablet, Internet-of-Things (IoT) and electronics markets. The Company is a fabless semiconductor provider of comprehensive, flexible sensor processing solutions, ultra-low power display bridges, and ultra-low power Field Programmable Gate Arrays, or FPGAs. QuickLogic's fiscal year ends on the Sunday closest to December 31. Fiscal years 2015 , 2014 and 2013 ended on January 3, 2016 , December 28, 2014 , and December 29, 2013 , respectively. Liquidity The Company has financed its operations and capital investments through sales of common stock, capital and operating leases, and bank lines of credit. As of January 3, 2016 , the Company's principal sources of liquidity consisted of its cash and cash equivalents of $19.1 million and $4.0 million in available credit under its revolving line of credit with Silicon Valley Bank, which expires on September 25, 2017 . Additionally, we have an accumulated deficit of approximately $221 million and experienced net losses in the past years and expect such losses to continue through at least the year ending January 1, 2017 as we continue to develop new products, applications and technologies. 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 and equity funding raised during March 2016 will be sufficient to fund its operations and capital expenditures and provide adequate working capital for the next twelve months. 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 solutions 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 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 its 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. Over the longer term, the Company anticipates that the generation of sales from its new product offerings, existing cash and cash equivalents, together with financial resources from its revolving line of credit with Silicon Valley Bank and its ability to raise additional capital in the public capital markets will be sufficient to satisfy its operations and capital expenditures. However, the Company cannot provide any assurance that it will be able to raise additional capital, if required, or that such capital will be available on terms acceptable to the Company. The inability of the Company to generate sufficient sales from its new product offerings and/or raise additional capital if needed could have a material adverse effect on the Company’s operations and financial condition, including its ability to maintain compliance with its lender’s financial covenants. See Note 18 for the details of the subsequent event relating to the announcement of new Common Stock offering and pricing of the offering. Principles of Consolidation The consolidated financial statements have been prepared in accordance with Generally Accepted Accounting Principles, or GAAP, in the United States of America and the applicable rules and regulations of the Securities and Exchange Commission, or SEC, and 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 statements of operations. Use 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 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 13 for information regarding concentrations associated with accounts receivable. For the twelve months ended January 3, 2016 , the Company generated 43% of its total revenue from shipments to a tier one customer, Samsung Electronics Co., Ltd. ("Samsung"). See Note 13 for information regarding revenue concentrations associated with our customers and distributors. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Jan. 03, 2016 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | SIGNIFICANT ACCOUNTING POLICIES Cash Equivalents All highly liquid investments purchased with a remaining maturity of ninety days or less are considered cash equivalents. The Company's investment portfolio included in cash equivalents is generally comprised of investments that meet high credit quality standards. The Company's investment portfolio consists of money market funds, which are precluded from investing in auction rate securities. These funds invest in U.S. government obligations and repurchase agreements secured by U.S. Treasury obligations, U.S. government agency obligations, high quality commercial papers and other short term debt securities of U.S. and foreign corporations, debt securities issued or guaranteed by qualified U.S. and foreign banks, asset backed securities, repurchase agreements and reverse purchase agreements and taxable municipal obligations. The fair value of this portfolio is based on market prices for securities with active secondary and resale markets. Fair Value The guidance for the fair value option for financial assets and financial liabilities provides companies the irrevocable option to measure many financial assets and liabilities at fair value with changes in fair value recognized in earnings or equity. The Company has not elected to measure any financial assets or liabilities at fair value that were not previously required to be measured at fair value. Foreign Currency Transactions All of the Company's sales and cost of manufacturing are transacted in U.S. dollars. The Company conducts a portion of its research and development activities in Canada and India and has sales and marketing activities in various countries outside of the United States. Canada operations were closed down at the end of fiscal year 2015 as a part of restructuring plan initiated in the second quarter. Most of these international expenses are incurred in local currency. Foreign currency transaction gains and losses, which are not significant, are included in interest income and other expense, net, as they occur. Operating expenses denominated in foreign currencies were approximately 17% , 18% and 19% of total operating expenses in 2015 , 2014 , and 2013 , respectively. The Company incurred a majority of these foreign currency expenses in India, the United Kingdom and Korea in 2015, 2014 and 2013. The Company has not used derivative financial instruments to hedge its exposure to fluctuations in foreign currency and, therefore, is susceptible to fluctuations in foreign exchange gains or losses in its results of operations in future reporting periods. Inventories Inventories are stated at the lower of standard cost or net realizable value. Standard cost approximates actual cost on a first-in, first-out basis. The Company routinely evaluates quantities and values of its inventories in light of current market conditions and market trends and records reserves for quantities in excess of demand and product obsolescence. The evaluation, which inherently involves judgments as to assumptions about expected future demand and the impact of market conditions on these assumptions, takes into consideration historic usage, expected demand, anticipated sales price, the stage in the product life cycle of its customers' products, new product development schedules, the effect new products might have on the sale of existing products, product obsolescence, customer design activity, customer concentrations, product merchantability and other factors. Market conditions are subject to change. Actual consumption of inventories could differ from forecast demand, and this difference could have a material impact on the Company's gross margin and inventory balances based on additional provisions for excess or obsolete inventories or a benefit from inventories previously written down. The Company also regularly reviews the cost of inventories against estimated market value and records a lower of cost or market reserve for inventories that have a cost in excess of estimated market value, which could have a material impact on the Company's gross margin and inventory balances based on additional write-downs to net realizable value or a benefit from inventories previously written down. The Company's semiconductor products have historically had an unusually long product life cycle and obsolescence has not been a significant factor in the valuation of inventories. However, as the Company pursues opportunities in the mobile market and continues to develop new solutions and products, the Company believes its product life cycle will be shorter and increase the potential for obsolescence. A significant decrease in demand could result in an increase in the amount of excess inventory on hand. Although the Company makes every effort to ensure the accuracy of its forecasts of future product demand, any significant unanticipated changes in demand or frequent new product developments could have a significant impact on the value of its inventory and its results of operations. Property and Equipment Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation is calculated on a straight-line basis over the estimated useful lives of the assets, generally one to seven years. Amortization of leasehold improvements and capital leases is computed on a straight-line basis over the shorter of the lease term or the estimated useful lives of the assets, generally one to seven years. Long-Lived Assets The Company reviews the recoverability of its long-lived assets, such as property and equipment, and investments, annually and when events or changes in circumstances occur that indicate that the carrying value of the asset or asset group may not be recoverable. The assessment of possible impairment is based on the Company's ability to recover the carrying value of the asset or asset group from the expected future pre-tax cash flows, undiscounted and without interest charges, of the related operations. If these cash flows are less than the carrying value of the asset or asset group, an impairment loss is recognized for the difference between the estimated fair value and the carrying value, and the carrying value of the related assets is reduced by this difference. The measurement of impairment requires management to estimate future cash flows and the fair value of long-lived assets. During 2015 , 2014 and 2013 , the Company wrote-off equipment with a net book value of $8,000 , $5,000 and $96,000 , respectively. Licensed Intellectual Property The Company licenses intellectual property that is incorporated into its products. Costs incurred under license agreements prior to the establishment of technological feasibility are included in research and development expense as incurred. Costs incurred for intellectual property once technological feasibility has been established and that can be used in multiple products are capitalized as a long-term asset. Once a product incorporating licensed intellectual property has production sales, the amount is amortized over the estimated useful life of the asset, generally up to five years. Revenue Recognition The Company supplies standard products which must be programmed before they can be used in an application. The Company's products may be programmed by us, distributors, end-customers or third parties. The Company recognizes revenue as products are shipped if evidence of an arrangement exists, delivery has occurred, the sales price is fixed or determinable, collection of the resulting receivable is reasonably assured and product returns are reasonably estimable. Revenue is recognized upon shipment of programmed and unprogrammed parts to both OEM customers and distributors, provided that legal title and risk of ownership have transferred. Parts held by distributors may be returned for quality reasons only under its standard warranty policy. The Company records allowance for sales returns. Warranty Costs The Company warrants finished goods against defects in material and workmanship under normal use for twelve months from the date of shipment. The Company does not have significant product warranty related costs or liabilities. Advertising Costs related to advertising and promotion expenditures are charged to “Selling, general and administrative” expense in the consolidated statements of operations as incurred. Costs related to advertising and promotion expenditures were $60,000 in 2015. In 2014 and 2013 these costs were not material. Stock-Based Compensation The Company accounts for stock-based compensation under the provisions of the amended authoritative guidance, and related interpretations which require the measurement and recognition of expense related to the fair value of stock-based compensation awards. The fair value of stock-based compensation awards is measured at the grant date and re-measured upon modification, as appropriate. 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 1999 Employee Stock Purchase Plan, or ESPP, consistent with the provisions of the amended authoritative guidance. The fair value of restricted stock awards, or RSAs, and restricted stock units, or RSUs, 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 on a straight-line basis over the requisite service period. Service based Performance awards are expensed on a straight-line basis over the vesting period. If performance conditions are other than service, an accelerated method of amortization is used, which treats each vesting tranche as a separate award over the expected life of the unit. The Company regularly reviews the assumptions used to compute the fair value of its stock-based awards and it will revise its assumptions as appropriate. In the event that assumptions used to compute the fair value of its stock-based awards are later determined to be inaccurate or if the Company changes its assumptions significantly in future periods, stock-based compensation expense and the results of operations could be materially impacted. See Note 11 for further details. Accounting for Income Taxes As part of the process of preparing the Company's financial statements, it's required to estimate its income taxes in each of the jurisdictions in which the Company operates. This process involves estimating the Company's actual current tax exposure together with assessing temporary differences resulting from different tax and accounting treatment of items, such as deferred revenue, allowance for doubtful accounts, the impact of equity awards, depreciation and amortization and employee related accruals. These differences result in deferred tax assets and liabilities, which are included on the Company's balance sheets. The Company must then assess the likelihood that its deferred tax assets will be recovered from future taxable income and to the extent the Company believes that recovery is not likely, it must establish a valuation allowance. To the extent the Company establishes a valuation allowance or increase this allowance in a period, it must include an expense within the tax provision in the statements of operations. Significant management judgment is required in determining the Company's provision for income taxes, the Company's deferred tax assets and liabilities and any valuation allowance recorded against the Company's net deferred tax assets. The Company's deferred tax assets, consisting primarily of net operating loss carryforwards, amounted to $69.4 million tax effected as of the end of 2015 . The Company has also recorded a valuation allowance of $69.3 million , tax effected as of the end of 2015 due to uncertainties related to the Company's ability to utilize its U.S. deferred tax assets before they expire. In making such determination, the Company considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, ability to project future taxable income, and results of recent operations. If the Company determines that it would be able to realize its deferred tax assets in the future in excess of its net recorded amount, the Company would make an adjustment to the deferred tax assets valuation allowance, which would reduce its provision for income taxes. The Company accounts for uncertainty in income taxes using a two-step approach for recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon settlement. The Company classifies the liability for unrecognized tax benefits as current to the extent that it anticipates payment (or receipt) of cash within one year. Interest and penalties related to uncertain tax positions are recognized in the provision for income taxes. Accrued interest and penalties are included within the related tax liability line in the Consolidated Balance Sheet. Concentration of Credit and Suppliers Financial instruments, which potentially subject the Company to concentrations of credit risk, consist principally of cash and cash equivalents and accounts receivable. Cash and cash equivalents are maintained with high quality institutions. The Company's accounts receivable are denominated in U.S. dollars and are derived primarily from sales to customers located in North America, Europe and Asia Pacific. The Company performs ongoing credit evaluations of its customers and generally does not require collateral. See Note 13 for information regarding concentrations associated with accounts receivable. The Company depends on a limited number of contract manufacturers, subcontractors, and suppliers for wafer fabrication, assembly, programming and test of its devices, and for the supply of programming equipment, and these services are typically provided by one supplier for each of the Company's devices. The Company generally purchases these single or limited source services through standard purchase orders. Because the Company relies on independent subcontractors to perform these services, it cannot directly control its product delivery schedules, costs or quality levels. The Company's future success also depends on the financial viability of its independent subcontractors. Comprehensive Income (Loss) Comprehensive income (loss) includes all temporary changes in equity (net assets) during a period from non-owner sources. New Accounting Pronouncements In February 2016, the Financial Accounting Standards Board, or FASB issued Accounting Standards Update No. 2016-02, Leases . The new standard establishes a right-of-use (ROU) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. We are currently evaluating the impact of our pending adoption of the new standard on our consolidated financial statements. In November 2015, FASB issued ASU 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes. This update eliminates the current requirement for organizations to present deferred tax assets and liabilities as current and noncurrent in a classified balance sheet. Instead, organizations will be required to classify all deferred tax assets and liabilities as noncurrent. The amendments are effective for annual reporting periods beginning after December 15, 2016 and interim periods beginning after December 15, 2016 for public business entities, and for all other entities annual periods beginning December 15, 2017 and interim periods beginning after December 15, 2017. The amendments may be applied prospectively to all deferred assets and liabilities, or retrospectively for all periods presented. Early adoption of the amendments is permitted. The Company early adopted ASU 2015-17 retrospectively in the current reporting period. Adoption had no impact on our consolidated balance sheets. No reclassification was required in the prior year financial statements. In July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330): Simplifying the measurement of Inventory,which amends the accounting guidance on the valuation of inventory. The guidance requires an entity to measure in scope inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Subsequent measurement is unchanged for inventory measured using LIFO or the retail inventory method. The amendments do not apply to inventory that is measured using last-in, first-out (LIFO) or the retail inventory method. The amendments apply to all other inventory, which includes inventory that is measured using first-in, first-out (FIFO) or average cost. This guidance is effective for reporting periods beginning after December 15, 2016, including interim periods within those fiscal years. The Company is currently evaluating the impact of ASU 2015-11 on its consolidated financial statements and footnote disclosures. 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 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 beginning after December 15, 2015, and interim periods beginning after December 15, 2015. We are currently evaluating the impact of our pending adoption of the new standard on our consolidated financial statements. In January 2015, the FASB issued ASU 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 beginning after December 15, 2015, and interim periods beginning after December 15, 2015. We are currently evaluating the impact of our pending adoption of the new standard on our consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (ASU 2014-09), which supersedes nearly all existing revenue recognition guidance under U.S. GAAP. The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration to which an entity expects to be entitled for those goods or services. ASU 2014-09 defines a five-step process to achieve this core principle and, in doing so, more judgment and estimates may be required within the revenue recognition process than are required under existing GAAP. The standard is effective for annual periods beginning after December 15, 2016, and interim periods therein, using either of the following transition methods: (i) a full retrospective approach reflecting the application of the standard in each prior reporting period with the option to elect certain practical expedients, or (ii) a retrospective approach with the cumulative effect of initially adopting ASU 2014-09 recognized at the date of adoption (which includes additional footnote disclosures). In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers. The amendments in this ASU defer the effective date of ASU 2014-09. Public companies should apply the guidance in ASU 2014-09 to annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Early adoption is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. We continue to evaluate the expected impact of this new guidance and available adoption methods. In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements - Going Concern (Sub Topic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (ASU 2014-15). This ASU 2014-15 provides guidance to an entity’s management with principles and definitions that are intended to reduce diversity in the timing and content of disclosures that are currently commonly provided by entities in the financial statement footnotes. This ASU 2014-15 is effective for annual periods ending after December 15, 2016, and interim periods within annual periods beginning after December 15, 2016. Early application is permitted for annual or interim reporting periods for which the financial statements have not previously been issued. |
NET LOSS PER SHARE
NET LOSS PER SHARE | 12 Months Ended |
Jan. 03, 2016 | |
Earnings Per Share [Abstract] | |
NET LOSS PER SHARE | NET LOSS PER SHARE Basic net loss per share is computed by dividing net income 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. For 2015 , 2014 , and 2013 , 7.6 million shares, 7.0 million shares, and 8.0 million shares, respectively, 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 were not included in the calculation of diluted net loss per share, as they were considered antidilutive due to the net loss the Company experienced during those years. |
INVESTMENT IN TOWERJAZZ SEMICON
INVESTMENT IN TOWERJAZZ SEMICONDUCTOR LTD. | 12 Months Ended |
Jan. 03, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENT IN TOWERJAZZ SEMICONDUCTOR LTD. | INVESTMENT IN TOWERJAZZ SEMICONDUCTOR LTD. During the second quarter of fiscal year 2013, the Company sold its remaining 42,970 TowerJazz ordinary shares. This sale resulted in a gain of $181,000 . The number of TowerJazz ordinary shares sold by the Company reflect the 1 -to- 15 reverse stock split implemented by TowerJazz effective August 3, 2012. |
BALANCE SHEET COMPONENTS
BALANCE SHEET COMPONENTS | 12 Months Ended |
Jan. 03, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BALANCE SHEET COMPONENTS | BALANCE SHEET COMPONENTS January 3, December 28, (in thousands) Inventories: Raw materials $ — $ — Work-in-process 1,720 1,191 Finished goods 1,158 3,761 $ 2,878 $ 4,952 Other current assets: Prepaid expenses $ 1,184 $ 1,042 Other 128 104 $ 1,312 $ 1,146 Property and equipment: Equipment $ 14,531 $ 14,047 Software 3,114 3,332 Furniture and fixtures 131 710 Leasehold improvements 714 595 18,490 18,684 Accumulated depreciation and amortization (15,175 ) (15,467 ) $ 3,315 $ 3,217 Accrued liabilities: Employee related accruals $ 1,237 $ 1,356 Other $ 245 218 $ 1,482 $ 1,574 The Company recorded depreciation and amortization expense of $1.4 million , $1.5 million and $1.3 million for 2015 , 2014 and 2013 , respectively. Assets acquired under capital leases and included in property and equipment were $1.0 million and $1.2 million at the end of 2015 and 2014 , respectively. The Company recorded accumulated depreciation on leased assets of $503,000 and $689,000 as of the end of 2015 and 2014 , respectively. As of January 3, 2016 and December 28, 2014 , the capital lease obligation relating to these assets was $489,000 and $416,000 respectively. |
OBLIGATIONS
OBLIGATIONS | 12 Months Ended |
Jan. 03, 2016 | |
Debt Disclosure [Abstract] | |
OBLIGATIONS | OBLIGATIONS January 3, December 28, (in thousands) Debt and capital software lease obligations: Revolving line of credit $ 2,000 $ 1,000 Capital software leases 489 416 2,489 1,416 Current portion of debt and capital software lease obligations (281 ) (225 ) Long term portion of debt and capital software lease obligations $ 2,208 $ 1,191 Revolving Line of Credit On September 25, 2015, the Company entered into the Second Amendment to the Third Amended and Restated Loan and Security Agreement dated September 25, 2015 ("the Loan Agreement") with Silicon Valley Bank ("The Bank") to extend the line of credit for two years through September 25, 2017. The Second Amendment to the Loan Agreement provides for committed loan advances of up to $6.0 million , subject to increases at the Company's election of up to $12.0 million . Upon each advance, the Company can elect a prime rate advance, which is the prime rate plus the prime rate margin, or a LIBOR rate advance, which is LIBOR plus the LIBOR rate margin. As of January 3, 2016 , the Company has $ 2.0 million of revolving debt outstanding with an interest rate of 3.38% . The 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 Loan Agreement, the Company must maintain (i) a tangible net worth of at least $12 million , plus (a) 50% of the proceeds from any equity issuance, plus (b) 50% of the proceeds from any investments, tested as of the last day of each fiscal quarter; (ii) unrestricted cash or cash equivalents at the Bank or Bank's affiliates at all times in an amount of at least $6 million ; (iii) a ratio of quick assets to the results of (a) current liabilities minus (b) the current portion of deferred revenue, plus (c) the long-term portion of the obligations of at least 1.1 -to-1 tested as of the last day of each month. The 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 Loan Agreement as of the end of the current reporting period. See Note 18 for subsequent event regarding the new terms of the line of credit. Capital Leases In December 2015, the Company leased design software under a two -year capital lease at an imputed interest rate of 4.88% per annum. Terms of the agreement require the Company to make quarterly payments of approximately $22,750 through November 2017, for a total of $182,000 . As of January 3, 2016 , $173,000 was outstanding under the capital lease, $85,000 of which was classified as a current liability. In July 2015, the Company leased design software under a three -year capital lease at an imputed interest rate of 4.91% per annum. Terms of the agreement require the Company to make annual payments of approximately $67,300 through July 2017, for a total of $202,000 . As of January 3, 2016 , $125,000 was outstanding under the capital lease, of which $61,000 was classified as a current liability. 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 January 3, 2016 , $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 4.8% 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 January 3, 2016 , $80,000 was outstanding under the capital lease, all of which was classified as a current liability. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Jan. 03, 2016 | |
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 assumption 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. Money market funds classified within Level 2 because they are not actively traded, have been valued using quoted market prices or alternative pricing sources and models utilizing observable market inputs. The following table presents the Company's financial assets that are measured at fair value on a recurring basis as of January 3, 2016 and December 28, 2014 , consistent with the fair value hierarchy provisions of the authoritative guidance (in thousands): As of January 3, 2016 As of December 28, 2014 Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Assets: Money market funds (1) $ 18,021 $ 2,137 $ 15,884 $ — $ 29,425 $ 874 $ 28,551 $ — Total assets $ 18,021 $ 2,137 $ 15,884 $ — $ 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 January 3, 2016 and December 28, 2014 . |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Jan. 03, 2016 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The following table presents the U.S. and foreign components of consolidated income (loss) before income taxes and the provision for (benefit from) income taxes (in thousands): Fiscal Years 2015 2014 2013 Income (loss) before income taxes: U.S. $ (17,897 ) $ (13,172 ) $ (11,888 ) Foreign 195 161 67 Income (loss) before income taxes $ (17,702 ) $ (13,011 ) $ (11,821 ) Provision for (benefit from) income taxes: Current: Federal $ 37 $ — $ 58 State 2 — 1 Foreign 99 95 83 Subtotal 138 95 142 Deferred: Federal — — 225 State — — 48 Foreign 8 (27 ) 40 Subtotal 8 (27 ) 313 Provision for income taxes $ 146 $ 68 $ 455 Based on the available objective evidence, management believes it is more likely than not that the net deferred tax assets will not be fully realizable. Accordingly, the Company has provided a full valuation allowance against its U.S. federal and state deferred tax assets at January 3, 2016 . Any future release of the valuation allowance may be recorded as a tax benefit increasing net income or as an adjustment to paid-in capital, based on tax ordering requirements. The Company believes it is more likely than not it will be able to realize its foreign deferred tax assets. Deferred tax balances are comprised of the following (in thousands): January 3, 2016 December 28, 2014 Deferred tax assets: Net operating losses $ 45,148 $ 42,049 Capital losses 2,938 5,143 Accruals and reserves 1,732 2,247 Credits carryforward 5,831 5,455 Depreciation and amortization 12,738 10,709 Stock-based compensation 1,012 1,078 69,399 66,681 Valuation allowances (69,349 ) (66,618 ) Deferred tax asset $ 50 $ 63 Deferred tax liability — — In November 2015, the FASB issued ASU 2015-17, which simplifies the presentation of deferred income taxes. ASU 2017-17 requires that deferred tax assets and liabilities be classified as non-current in a statement of financial position. QuickLogic early adopted this guidance in the Company’s current fiscal year ending January 3, 2016 on a retrospective basis. Adoption of this guidance resulted in no reclassification of the net current deferred tax asset to the net non-current deferred tax asset in the consolidated balance sheet as of January 3, 2016 and December 28, 2004. A rate reconciliation between income tax provisions at the U.S. federal statutory rate and the effective rate reflected in the consolidated statements of operations is as follows: Fiscal Years 2015 2014 2013 Income tax (benefit) at statutory rate $ (5,962 ) $ (4,423 ) $ (4,019 ) State taxes 2 — 1 Stock compensation and other permanent differences 286 6 316 Foreign taxes 41 22 101 Benefit allocated from other comprehensive income (loss) — — 273 Future benefit of deferred tax assets not recognized 5,779 4,463 3,783 Provision for income taxes $ 146 $ 68 $ 455 As of January 3, 2016 , the Company had net operating loss carryforwards of approximately $134.4 million for federal and $50.8 million for state income tax purposes. If not utilized, these carryforwards will expire beginning in 2016 for federal and state purposes. Included in the net operating loss carryforwards amount is $9.6 million for federal and $4.3 million for state income tax purposes, in which, the Company expects to record a credit to additional paid-in capital when the windfall tax benefits are realized in the future. The Company has research credit carryforwards of approximately $3.5 million for federal and $4.2 million for state income tax purposes as of January 3, 2016. If not utilized, the federal carryforwards will expire in various amounts beginning in 2018. The California credit can be carried forward indefinitely. Under the Tax Reform Act of 1986, the amount of and the benefit from net operating loss carryforwards and credit carryforwards may be impaired or limited in certain circumstances. Events which may restrict utilization of a company's net operating loss and credit carryforwards include, but are not limited to, certain ownership change limitations as defined in Internal Revenue Code Section 382 and similar state provisions. In the event the Company has had a change of ownership, utilization of carryforwards could be restricted to an annual limitation. The annual limitation may result in the expiration of net operating loss carryforwards and credit carryforwards before utilization. The Company has not undertaken a study to determine if its net operating losses are limited. U.S. income taxes and foreign withholding taxes associated with the repatriation of earnings of foreign subsidiaries were not provided for on a cumulative total of $400,000 of undistributed earnings for certain foreign subsidiaries as of the end of fiscal 2015 . The Company intends to reinvest these earnings indefinitely in the Company's foreign subsidiaries. The Company believes that future domestic cash generation will be sufficient to meet future domestic cash needs. The Company has not recorded a deferred tax liability on the undistributed earnings of non-U.S. subsidiaries. If these earnings were distributed to the United States in the form of dividends or otherwise, or if the shares of the relevant foreign subsidiaries were sold or otherwise transferred, the Company would be subject to additional U.S. income taxes (subject to an adjustment for foreign tax credits) and foreign withholding taxes. The additional net taxes due would be immaterial or would not have a material impact on the Company’s financial position and results of operation. If the Company decides to repatriate foreign earnings, the Company would need to adjust its income tax provision in the period in which it is determined that the earnings will no longer be indefinitely reinvested outside the United States. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands): January 3, 2016 December 28, 2014 December 29, 2013 Beginning balance of unrecognized tax benefits $ 516 $ 79 $ 79 Additions for tax positions related to the prior year (3 ) 330 — Additions for tax positions related to the current year 199 162 — Lapse of statues of limitations (16 ) (55 ) — Ending balance of unrecognized tax benefits $ 696 $ 516 $ 79 Out of $696,000 of unrecognized tax benefits, approximately $36,000 of unrecognized tax benefit would result in a change in the Company's effective tax rate if recognized in future years. For the twelve month period ended January 3, 2016, the Company accrued $3,000 of interest. As of January 3, 2016 and December 28, 2014 the Company had approximately $17,000 and $25,000 of accrued interest and penalties related to uncertain tax positions. The Company is not currently under exam and the Company's historical net operating loss and credit carryforwards may be adjusted by the Internal Revenue Service, or IRS, and other tax authorities until the statute closes on the year in which such attributes are utilized. The Company estimates that its unrecognized tax benefits will not change significantly within 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 January 3, 2016 , fiscal years 2011 onward remain open to examination by the U.S. taxing authorities and fiscal years 2007 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. |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 12 Months Ended |
Jan. 03, 2016 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY | STOCKHOLDERS' EQUITY Common and Preferred Stock The Company is authorized to issue 100 million shares of common stock and has 10 million shares of authorized but unissued undesignated 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 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 this offering of $23.1 million , net of underwriter's commission and other offering expenses of $2.2 million . As of January 3, 2016, 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. Approximately 2.3 million warrants with a strike price of $2.98 were issued in conjunction with a June 2012 financing. These warrants expire in June 2017. After August 2016, the warrants can only be exercised on a cashless basis. See Note 18 for the details of the subsequent event relating to the announcement of new Common Stock offering and pricing of the offering. |
EMPLOYEE STOCK PLANS
EMPLOYEE STOCK PLANS | 12 Months Ended |
Jan. 03, 2016 | |
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 nonqualified 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 Plan. As of January 3, 2016 approximately 9.7 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 10.0 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 January 3, 2016 , approximately 3.3 million shares were reserved for issuance under the 2009 ESPP. The 2009 ESPP provides for six month offering periods. Participants purchase shares through payroll deductions of up to 20% of an employee's total compensation (maximum of 20,000 shares per offering period). The 2009 ESPP permits the Board of Directors to determine, prior to each offering period, whether participants purchase shares at: (i) 85% of the fair market value of the common stock at the end of the offering period; or (ii) 85% of the lower of the fair market value of the common stock at the beginning or the end of an offering period. The Board of Directors has determined that, until further notice, future offering periods will be made at 85% of the lower of the fair market value of the common stock at the beginning or the end of an offering period. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 12 Months Ended |
Jan. 03, 2016 | |
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 stock bonus units. 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. Stock-based compensation expense is recognized in the Company's consolidated statements of operations and includes compensation expense for the stock-based compensation awards granted or modified subsequent to January 1, 2006, based on the grant date fair value estimated in accordance with the provisions of the amended authoritative guidance. The impact on the Company's results of operations of recording stock-based compensation expense for fiscal years 2015 , 2014 , and 2013 was as follows (in thousands): Fiscal Years 2015 2014 2013 Cost of revenue $ 109 $ 137 $ 232 Research and development 826 924 666 Selling, general and administrative 1,064 1,181 1,081 Restructuring costs* 29 — — Total costs and expenses $ 2,028 $ 2,242 $ 1,979 * Stock-based compensation related to restructuring plan initiated in Q2-15. No stock-based compensation was capitalized during any period presented above. In 2015 , the Company granted restricted stock units, or RSUs, to employees with various vesting terms. Total stock-based compensation related to RSUs was $834,000 in 2015 . The Company issued net shares for the vested RSUs, withholding shares in settlement of employee tax withholding obligations. In 2015 , the Company also granted performance-based restricted stock units, or PRSUs, to new employees and the stock-based compensation related to PRSUs was $101,000 . The amount of stock-based compensation included in inventories at the end of 2015 , 2014 and 2013 was not significant. 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: Fiscal Years 2015 2014 2013 Expected term (years) 6.3 6.6 6.1 Risk-free interest rate 1.75 % 1.98 % 1.74 % Expected volatility 56 % 58 % 59 % Expected dividend — — — The methodologies for determining the above values were as follows: • Expected term: The expected term represents the period that the Company's stock-based awards are expected to be outstanding and is estimated based on historical experience. • Risk-free interest rate: The risk-free interest rate assumption is based upon the risk-free rate of a Treasury Constant Maturity bond with a maturity appropriate for the expected term of the Company's employee stock options. • Expected volatility: The Company determines expected volatility based on historical volatility of the Company's common stock according to the expected term of the options. • Expected dividend: The expected dividend assumption is based on the Company's intent not to issue a dividend under its dividend policy. The weighted average estimated fair value for options granted during 2015 , 2014 and 2013 was $0.87 , $1.99 , and $1.82 per option, respectively. As of the end of 2015 , the fair value of unvested stock options, net of expected forfeitures, was approximately $2.7 million . This unrecognized stock-based compensation expense is expected to be recorded over a weighted average period of 2.45 years. Stock-Based Compensation Award Activity The following table summarizes the shares available for grant under the 2009 Plan for 2015 : Shares Available for Grant (in thousands) Balance at December 28, 2014 1,139 Authorized 2,500 Options granted (225 ) Options forfeited or expired 521 RSUs granted (817 ) RSUs forfeited 122 PRSUs granted (311 ) Balance at January 3, 2016 2,929 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 2015 , 2014 and 2013 : Number of Shares Weighted Average Exercise Price Weighted Average Remaining Term Aggregate Intrinsic Value (in thousands) (in years) (in thousands) Balance outstanding at December 30, 2012 6,960 $ 2.55 Granted 716 3.26 Forfeited or expired (269 ) 2.65 Exercised (165 ) 2.21 Balance outstanding at December 29, 2013 7,242 2.62 Granted 428 3.51 Forfeited or expired (219 ) 3.56 Exercised (1,769 ) 2.57 Balance outstanding at December 28, 2014 5,682 2.67 Granted 225 1.64 Forfeited or expired (521 ) 2.87 Exercised (120 ) 0.98 Balance outstanding at January 3, 2016 5,266 $ 2.64 4.56 $ 94 Exercisable at January 3, 2016 4,546 $ 2.63 3.94 $ 94 Vested and expected to vest at January 3, 2016 5,132 $ 2.64 4.45 $ 94 The aggregate intrinsic value in the table above represents the total pretax intrinsic value, based on the Company's closing stock price of $1.13 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 2015 , 2014 and 2013 was $83,000 , $3.7 million and $139,000 , respectively. Total cash received from employees as a result of employee stock option exercises during 2015 , 2014 and 2013 was approximately $117,000 , $4.5 million and $365,000 , respectively. The Company settles employee stock option exercises with newly issued common shares. In connection with these exercises, there was no tax benefit realized by the Company due to the Company's current loss position. Total stock-based compensation related to stock options was $861,000 , $1.1 million , and $1.1 million for 2015 , 2014 , and 2013 , respectively. Significant exercise price ranges of options outstanding, related weighted average exercise prices and contractual life information at the end of 2015 were as follows: Options Outstanding Options Exercisable Range of Exercise Prices Options Outstanding Weighted Average Remaining Contractual Life Weighted Average Exercise Price Options Vested and Exercisable Weighted Average Exercise Price (in thousands) (in years) (in thousands) $0.78 - $1.55 552 4.63 $ 1.04 407 $ 0.90 1.63 - 1.63 793 3.10 1.63 792 1.63 2.00 - 2.52 529 6.69 2.21 367 2.25 2.65 - 2.76 41 3.15 2.73 38 2.73 2.78 - 2.78 1,459 4.53 2.78 1,460 2.78 2.82 - 3.20 585 3.74 3.02 451 2.97 3.21 - 3.48 612 7.09 3.40 416 3.40 3.54 - 3.92 166 7.71 3.69 86 3.68 4.17- 4.17 501 1.82 4.17 501 4.17 5.94 - 5.94 28 0.32 5.94 28 5.94 $0.78 - $5.94 5,266 4.56 $ 2.64 4,546 $ 2.63 Restricted Stock Units RSUs entitle the holder to receive, at no cost, one common share for each restricted stock unit on the vesting date as it vests. The Company withholds shares in settlement of employee tax withholding obligations upon the vesting of restricted stock units. The stock-based compensation related to grants of vested RSUs was $834,000 in 2015 . In 2015 , the Company also granted PRSUs to new employees and the stock-based compensation related to PRSUs was $101,000 . RSUs & PRSUs Outstanding Number of Shares Weighted Average Grant Date Fair Value (in thousands) Nonvested at December 28, 2014 650 $ 3.47 Granted 1,128 1.46 Vested (221 ) 1.42 Forfeited (122 ) — Nonvested at January 3, 2016 1,435 $ 2.30 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 ESPP during 2015 , 2014 and 2013 was $0.42 , $ 0.96 and $ 0.71 , respectively. Sales under the ESPP were 458,000 shares of common stock at an average price of $1.26 for 2015 , 278,000 shares of common stock at an average price of $2.76 for 2014 , and 357,000 shares of common stock at an average price of $1.74 for 2013 . Under the 2009 ESPP, the Company issued 458,000 shares at an average price of $1.26 per share during 2015 . As of January 3, 2016 , 1,420,000 shares under the 2009 ESPP remained available for issuance. For 2015 , the Company recorded compensation expenses related to the ESPP of $232,000 . The fair value of rights issued pursuant to the Company's ESPP was estimated on the commencement date of each offering period using the following weighted average assumptions: Fiscal Years 2015 2014 2013 Expected life (months) 6.0 6.0 6.1 Risk-free interest rate 0.21 % 0.07 % 0.09 % Volatility 55 % 49 % 39 % Dividend yield — — — The methodologies for determining the above values were as follows: • Expected term: The expected term represents the length of the purchase period contained in the ESPP. • Risk-free interest rate: The risk-free interest rate assumption is based upon the risk-free rate of a Treasury Constant Maturity bond with a maturity appropriate for the term of the purchase period. • Volatility: The Company determines expected volatility based on historical volatility of the Company's common stock for the term of the purchase period. • Dividend Yield: The expected dividend assumption is based on the Company's intent not to issue a dividend under its dividend policy. As of the end of 2015 , the unrecognized stock-based compensation expense relating to the Company's ESPP was $102,000 and was expected to be recognized over a weighted average period of approximately 4.4 months. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 12 Months Ended |
Jan. 03, 2016 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) There were no reclassifications out of accumulated other comprehensive income (loss) for the year ended January 3, 2016 and December 28, 2014. The following table provides details about reclassification out of accumulated other comprehensive income (loss) for the year ended December 29, 2013: Change in unrealized gains on available for sale securities (in thousands) Accumulated other comprehensive income (loss), net of tax, as of December 30, 2012 $ (11 ) Other comprehensive income (loss) before reclassifications (77 ) Amounts reclassified from accumulated other comprehensive income (loss) 88 Net change in other comprehensive income (loss) 11 Accumulated other comprehensive income (loss), net of tax, as of December 29, 2013 $ — |
INFORMATION CONCERNING PRODUCT
INFORMATION CONCERNING PRODUCT LINES, GEOGRAPHIC INFORMATION, ACCOUNTSRECEIVABLE AND REVENUE CONCENTRATION | 12 Months Ended |
Jan. 03, 2016 | |
Segment Reporting [Abstract] | |
INFORMATION CONCERNING PRODUCT LINES, GEOGRAPHIC INFORMATION, ACCOUNTS RECEIVABLE AND REVENUE CONCENTRATION | INFORMATION CONCERNING PRODUCT LINES, GEOGRAPHIC INFORMATION, ACCOUNTSRECEIVABLE AND REVENUE CONCENTRATION The Company identifies its business segments 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 family (in thousands): Fiscal Years 2015 2014 2013 Revenue by product line (1) : New products $ 12,020 $ 19,311 $ 18,219 Mature products 6,936 8,534 7,853 Total revenue $ 18,956 $ 27,845 $ 26,072 ___________________________ (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): Fiscal Years 2015 2014 2013 Revenue by geography: Asia Pacific (1) $ 12,650 $ 20,157 $ 20,099 Europe 1,859 3,371 1,788 North America (2) 4,447 4,317 4,185 Total revenue $ 18,956 $ 27,845 $ 26,072 __________________________ (1) Asia Pacific includes revenue from South Korea of $8.3 million or 44% of total revenue in 2015 and $14.4 million or 52% of total revenue in 2014. (2) North America includes revenue from the United States of $4.3 million or 22% of total revenue in 2015 and $4.1 million or 14% of total revenue in 2014. The following distributors and customers accounted for 10% or more of the Company's revenue for the periods presented: Fiscal Years 2015 2014 2013 Distributor “A” 23 % 16 % 18 % Customer “B” 13 % * * Customer "G" 43 % 52 % 56 % ___________________________ * 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: January 3, December 28, Distributor “A” 24 % 34 % Distributor “B” 11 % * Distributor "G" 11 % * Customer "G" 20 % 28 % Customer "H" 11 % * ___________________________ * Represents less than 10% of accounts receivable as of the date presented. As of January 3, 2016 , less than 10% of the Company's long-lived assets, including property and equipment and other assets were located outside the United States. |
SHELF REGISTRATION STATEMENT
SHELF REGISTRATION STATEMENT | 12 Months Ended |
Jan. 03, 2016 | |
Shelf Registration Statement [Abstract] | |
SHELF REGISTRATION STATEMENT | SHELF REGISTRATION STATEMENT 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 received net proceeds of $23.1 million , net of underwriter's commission and other expenses of $2.2 million , by issuing 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. As of January 3, 2016, the remaining balance on the shelf was approximately $14.7 million . See Note 18 for the details of the subsequent event relating to the announcement of new Common Stock offering and pricing of the offering pursuant to the above shelf registration. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Jan. 03, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Commitments Certain wafer manufacturers require the Company 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 the end of 2015 and 2014 , the Company had $1.4 million and $552,000 respectively, of outstanding commitments for the purchase of wafer inventory. The Company has purchase obligations with certain suppliers for the purchase of goods and services entered into in the ordinary course of business. As of January 3, 2016 , total outstanding purchase obligations due within the next 12 months were $1.3 million . The Company leases its primary facility under a non-cancelable operating lease that expires on December 31, 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, during 2015 , 2014 and 2013 was approximately $878,000 , $947,000 and $947,000 respectively. Future minimum lease commitments under the Company's operating leases, net of sublease income and excluding property taxes and insurance are as follows: Operating Leases (in thousands) Fiscal Years 2016 804 2017 704 2018 641 $ 2,149 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. The parties have agreed to mediate the matter and are in the process of selecting a mediator. As of January 3, 2016, the Company estimates the possible loss relating to this matter to be in the range of $25,000 to $250,000 . |
LITIGATION
LITIGATION | 12 Months Ended |
Jan. 03, 2016 | |
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 without costly litigation; in a manner that is not adverse to the Company's financial position, results of operations or cash flows; or without requiring royalty or other payments which may adversely impact gross profit. |
RESTRUCTURING CHARGES
RESTRUCTURING CHARGES | 12 Months Ended |
Jan. 03, 2016 | |
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 , $77,000 and $49,000 of restructuring charges in the second, third and fourth quarter of 2015, respectively, consisting primarily of employee severance related costs. The restructuring liabilities are included in the "Liabilities" line item in the consolidated balance sheet. The activities affecting the restructuring liabilities for the year ended January 3, 2016 are summarized as follows: Restructuring Liabilities In Thousands Balance at December 28, 2014 $ — Accruals 295 Payments and non-cash items adjustments (166 ) FX translation adjustment (8 ) Balance at January 3, 2016 $ 121 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Jan. 03, 2016 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS a) On February 10, 2016, the Company entered into a Third Amendment to Third Amended and Restated Loan and Security Agreement with the Bank to amend certain covenants contained in the Loan Agreement. As amended, the Company is required to maintain, beginning in the quarter ending March 31, 2016, (i) a tangible net worth of at least $12,000,000 , plus (a) 50% of the proceeds from any equity issuance, plus (b) 50% of the proceeds from any investments, tested as of the last day of each month; (ii) unrestricted cash or cash equivalents at the Bank or Bank's affiliates at all times in an amount of at least $6,000,000 ; and (iii) a ratio of quick assets to the results of (i) current liabilities minus (ii) the current portion of deferred revenue plus (iii) the long-term portion of the obligations of at least 2.00 to 1.00, tested as of the last day of each month. Beginning with the second fiscal quarter of 2016, the tangible net worth requirement, is reduced as follows: For the quarter ending June 30, 2016, at least $10,000,000 ; for the quarter ending September 30, 2016, at least $8,000,000 ; for the quarter ending December 31, 2016, at least $6,000,000 ; for the quarter ending March 31, 2017, at least $4,000,000 ; for the quarter ending June 30, 2017, at least $8,000,000 . Beginning with the third fiscal quarter of 2016, the Company is required to maintain a ratio of quick assets to the results of (i) current liabilities minus (ii) the current portion of deferred revenue plus (iii) the long-term portion of the obligations of at least 1.50 to 1.00 in the fiscal quarters ended September 30, 2016 and December 31, 2016 and of at least 1.25 to 1.00 in the fiscal quarters ended March 31, 2017 and June 30, 2017. b) On March 16, 2016 the Company announced the pricing of its firm underwritten public offering of an aggregate of 10.0 million newly issued shares of common stock at a price of $1.00 per share, $0.001 par value. The Company expects to receive gross proceeds of $10.0 million , before deducting underwriting discounts and other estimated offering expenses. The net proceeds to the Company from the Offering are expected to be approximately $8.9 million after deduction of underwriting discounts and assuming no exercise of the underwriters' over-allotment option. The underwriters have also been granted a 30 -day option to purchase up to 1.5 million shares of common stock to cover over-allotments, if any. The Company expects to use the net proceeds from the Offering for working capital and other general corporate purposes. The Company may also use a portion of the net proceeds to acquire and/or license technologies and acquire and/or invest in businesses when the opportunity arises. The Shares are being offered by the Company pursuant to a shelf registration statement previously filed with the the SEC, which was declared effective by the SEC on August 30, 2013, and as supplemented by a prospectus supplement dated March 17, 2016 filed with the Securities and Exchange Commission pursuant to Rule 424(b) under the Securities Act of 1933, as amended. See Note 14 for details. |
VALUATION AND QUALIFYING ACCOUN
VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Jan. 03, 2016 | |
Valuation and Qualifying Accounts [Abstract] | |
VALUATION AND QUALIFYING ACCOUNTS | Valuation and Qualifying Accounts (in thousands) Balance at Beginning of Period Charged to Costs and Expenses Deductions/Write-offs Balance at End of Period Allowance for Doubtful Accounts: Fiscal Year 2015 $ — $ — $ — $ — Fiscal Year 2014 $ — $ — $ — $ — Fiscal Year 2013 $ 20 $ (20 ) $ — $ — Allowance for Deferred Tax Assets: Fiscal Year 2015 $ 66,618 $ 2,731 $ — $ 69,349 Fiscal Year 2014 $ 63,528 $ 3,090 $ — $ 66,618 Fiscal Year 2013 $ 60,223 $ 3,305 $ — $ 63,528 |
SIGNIFICANT ACCOUNTING POLICI27
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Jan. 03, 2016 | |
Accounting Policies [Abstract] | |
Fiscal Period | QuickLogic's fiscal year ends on the Sunday closest to December 31. |
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 January 3, 2016 , the Company's principal sources of liquidity consisted of its cash and cash equivalents of $19.1 million and $4.0 million in available credit under its revolving line of credit with Silicon Valley Bank, which expires on September 25, 2017 . Additionally, we have an accumulated deficit of approximately $221 million and experienced net losses in the past years and expect such losses to continue through at least the year ending January 1, 2017 as we continue to develop new products, applications and technologies. 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 and equity funding raised during March 2016 will be sufficient to fund its operations and capital expenditures and provide adequate working capital for the next twelve months. 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 solutions 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 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 its 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. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements have been prepared in accordance with Generally Accepted Accounting Principles, or GAAP, in the United States of America and the applicable rules and regulations of the Securities and Exchange Commission, or SEC, and include the accounts of QuickLogic and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated. |
Foreign Currency Transactions | 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 statements of operations. Foreign Currency Transactions All of the Company's sales and cost of manufacturing are transacted in U.S. dollars. The Company conducts a portion of its research and development activities in Canada and India and has sales and marketing activities in various countries outside of the United States. Canada operations were closed down at the end of fiscal year 2015 as a part of restructuring plan initiated in the second quarter. Most of these international expenses are incurred in local currency. Foreign currency transaction gains and losses, which are not significant, are included in interest income and other expense, net, as they occur. Operating expenses denominated in foreign currencies were approximately 17% , 18% and 19% of total operating expenses in 2015 , 2014 , and 2013 , respectively. The Company incurred a majority of these foreign currency expenses in India, the United Kingdom and Korea in 2015, 2014 and 2013. The Company has not used derivative financial instruments to hedge its exposure to fluctuations in foreign currency and, therefore, is susceptible to fluctuations in foreign exchange gains or losses in its results of operations in future reporting periods. |
Use of Estimates | Use 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 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, Credit and Suppliers | 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 13 for information regarding concentrations associated with accounts receivable. Concentration of Credit and Suppliers Financial instruments, which potentially subject the Company to concentrations of credit risk, consist principally of cash and cash equivalents and accounts receivable. Cash and cash equivalents are maintained with high quality institutions. The Company's accounts receivable are denominated in U.S. dollars and are derived primarily from sales to customers located in North America, Europe and Asia Pacific. The Company performs ongoing credit evaluations of its customers and generally does not require collateral. See Note 13 for information regarding concentrations associated with accounts receivable. The Company depends on a limited number of contract manufacturers, subcontractors, and suppliers for wafer fabrication, assembly, programming and test of its devices, and for the supply of programming equipment, and these services are typically provided by one supplier for each of the Company's devices. The Company generally purchases these single or limited source services through standard purchase orders. Because the Company relies on independent subcontractors to perform these services, it cannot directly control its product delivery schedules, costs or quality levels. The Company's future success also depends on the financial viability of its independent subcontractors. |
Cash Equivalents | Cash Equivalents All highly liquid investments purchased with a remaining maturity of ninety days or less are considered cash equivalents. The Company's investment portfolio included in cash equivalents is generally comprised of investments that meet high credit quality standards. The Company's investment portfolio consists of money market funds, which are precluded from investing in auction rate securities. These funds invest in U.S. government obligations and repurchase agreements secured by U.S. Treasury obligations, U.S. government agency obligations, high quality commercial papers and other short term debt securities of U.S. and foreign corporations, debt securities issued or guaranteed by qualified U.S. and foreign banks, asset backed securities, repurchase agreements and reverse purchase agreements and taxable municipal obligations. The fair value of this portfolio is based on market prices for securities with active secondary and resale markets. |
Fair Value | Fair Value The guidance for the fair value option for financial assets and financial liabilities provides companies the irrevocable option to measure many financial assets and liabilities at fair value with changes in fair value recognized in earnings or equity. The Company has not elected to measure any financial assets or liabilities at fair value that were not previously required to be measured at fair value. |
Inventories | Inventories Inventories are stated at the lower of standard cost or net realizable value. Standard cost approximates actual cost on a first-in, first-out basis. The Company routinely evaluates quantities and values of its inventories in light of current market conditions and market trends and records reserves for quantities in excess of demand and product obsolescence. The evaluation, which inherently involves judgments as to assumptions about expected future demand and the impact of market conditions on these assumptions, takes into consideration historic usage, expected demand, anticipated sales price, the stage in the product life cycle of its customers' products, new product development schedules, the effect new products might have on the sale of existing products, product obsolescence, customer design activity, customer concentrations, product merchantability and other factors. Market conditions are subject to change. Actual consumption of inventories could differ from forecast demand, and this difference could have a material impact on the Company's gross margin and inventory balances based on additional provisions for excess or obsolete inventories or a benefit from inventories previously written down. The Company also regularly reviews the cost of inventories against estimated market value and records a lower of cost or market reserve for inventories that have a cost in excess of estimated market value, which could have a material impact on the Company's gross margin and inventory balances based on additional write-downs to net realizable value or a benefit from inventories previously written down. The Company's semiconductor products have historically had an unusually long product life cycle and obsolescence has not been a significant factor in the valuation of inventories. However, as the Company pursues opportunities in the mobile market and continues to develop new solutions and products, the Company believes its product life cycle will be shorter and increase the potential for obsolescence. A significant decrease in demand could result in an increase in the amount of excess inventory on hand. Although the Company makes every effort to ensure the accuracy of its forecasts of future product demand, any significant unanticipated changes in demand or frequent new product developments could have a significant impact on the value of its inventory and its results of operations. |
Property and Equipment and Long-Lived Assets | Property and Equipment Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation is calculated on a straight-line basis over the estimated useful lives of the assets, generally one to seven years. Amortization of leasehold improvements and capital leases is computed on a straight-line basis over the shorter of the lease term or the estimated useful lives of the assets, generally one to seven years. Long-Lived Assets The Company reviews the recoverability of its long-lived assets, such as property and equipment, and investments, annually and when events or changes in circumstances occur that indicate that the carrying value of the asset or asset group may not be recoverable. The assessment of possible impairment is based on the Company's ability to recover the carrying value of the asset or asset group from the expected future pre-tax cash flows, undiscounted and without interest charges, of the related operations. If these cash flows are less than the carrying value of the asset or asset group, an impairment loss is recognized for the difference between the estimated fair value and the carrying value, and the carrying value of the related assets is reduced by this difference. The measurement of impairment requires management to estimate future cash flows and the fair value of long-lived assets. |
Licensed Intellectual Property | Licensed Intellectual Property The Company licenses intellectual property that is incorporated into its products. Costs incurred under license agreements prior to the establishment of technological feasibility are included in research and development expense as incurred. Costs incurred for intellectual property once technological feasibility has been established and that can be used in multiple products are capitalized as a long-term asset. Once a product incorporating licensed intellectual property has production sales, the amount is amortized over the estimated useful life of the asset, generally up to five years. |
Revenue Recognition | Revenue Recognition The Company supplies standard products which must be programmed before they can be used in an application. The Company's products may be programmed by us, distributors, end-customers or third parties. The Company recognizes revenue as products are shipped if evidence of an arrangement exists, delivery has occurred, the sales price is fixed or determinable, collection of the resulting receivable is reasonably assured and product returns are reasonably estimable. Revenue is recognized upon shipment of programmed and unprogrammed parts to both OEM customers and distributors, provided that legal title and risk of ownership have transferred. Parts held by distributors may be returned for quality reasons only under its standard warranty policy. The Company records allowance for sales returns. |
Warranty Costs | Warranty Costs The Company warrants finished goods against defects in material and workmanship under normal use for twelve months from the date of shipment. The Company does not have significant product warranty related costs or liabilities. |
Advertising | Advertising Costs related to advertising and promotion expenditures are charged to “Selling, general and administrative” expense in the consolidated statements of operations as incurred. |
Stock-Based Compensation and Valuation Assumptions | Stock-Based Compensation The Company accounts for stock-based compensation under the provisions of the amended authoritative guidance, and related interpretations which require the measurement and recognition of expense related to the fair value of stock-based compensation awards. The fair value of stock-based compensation awards is measured at the grant date and re-measured upon modification, as appropriate. 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 1999 Employee Stock Purchase Plan, or ESPP, consistent with the provisions of the amended authoritative guidance. The fair value of restricted stock awards, or RSAs, and restricted stock units, or RSUs, 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 on a straight-line basis over the requisite service period. Service based Performance awards are expensed on a straight-line basis over the vesting period. If performance conditions are other than service, an accelerated method of amortization is used, which treats each vesting tranche as a separate award over the expected life of the unit. The Company regularly reviews the assumptions used to compute the fair value of its stock-based awards and it will revise its assumptions as appropriate. In the event that assumptions used to compute the fair value of its stock-based awards are later determined to be inaccurate or if the Company changes its assumptions significantly in future periods, stock-based compensation expense and the results of operations could be materially impacted. See Note 11 for further details. 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. |
Accounting for Income Taxes | Accounting for Income Taxes As part of the process of preparing the Company's financial statements, it's required to estimate its income taxes in each of the jurisdictions in which the Company operates. This process involves estimating the Company's actual current tax exposure together with assessing temporary differences resulting from different tax and accounting treatment of items, such as deferred revenue, allowance for doubtful accounts, the impact of equity awards, depreciation and amortization and employee related accruals. These differences result in deferred tax assets and liabilities, which are included on the Company's balance sheets. The Company must then assess the likelihood that its deferred tax assets will be recovered from future taxable income and to the extent the Company believes that recovery is not likely, it must establish a valuation allowance. To the extent the Company establishes a valuation allowance or increase this allowance in a period, it must include an expense within the tax provision in the statements of operations. Significant management judgment is required in determining the Company's provision for income taxes, the Company's deferred tax assets and liabilities and any valuation allowance recorded against the Company's net deferred tax assets. The Company's deferred tax assets, consisting primarily of net operating loss carryforwards, amounted to $69.4 million tax effected as of the end of 2015 . The Company has also recorded a valuation allowance of $69.3 million , tax effected as of the end of 2015 due to uncertainties related to the Company's ability to utilize its U.S. deferred tax assets before they expire. In making such determination, the Company considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, ability to project future taxable income, and results of recent operations. If the Company determines that it would be able to realize its deferred tax assets in the future in excess of its net recorded amount, the Company would make an adjustment to the deferred tax assets valuation allowance, which would reduce its provision for income taxes. The Company accounts for uncertainty in income taxes using a two-step approach for recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon settlement. The Company classifies the liability for unrecognized tax benefits as current to the extent that it anticipates payment (or receipt) of cash within one year. Interest and penalties related to uncertain tax positions are recognized in the provision for income taxes. Accrued interest and penalties are included within the related tax liability line in the Consolidated Balance Sheet. |
Comprehensive Income (Loss) | Comprehensive Income (Loss) Comprehensive income (loss) includes all temporary changes in equity (net assets) during a period from non-owner sources. |
New Accounting Pronouncements | New Accounting Pronouncements In February 2016, the Financial Accounting Standards Board, or FASB issued Accounting Standards Update No. 2016-02, Leases . The new standard establishes a right-of-use (ROU) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. We are currently evaluating the impact of our pending adoption of the new standard on our consolidated financial statements. In November 2015, FASB issued ASU 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes. This update eliminates the current requirement for organizations to present deferred tax assets and liabilities as current and noncurrent in a classified balance sheet. Instead, organizations will be required to classify all deferred tax assets and liabilities as noncurrent. The amendments are effective for annual reporting periods beginning after December 15, 2016 and interim periods beginning after December 15, 2016 for public business entities, and for all other entities annual periods beginning December 15, 2017 and interim periods beginning after December 15, 2017. The amendments may be applied prospectively to all deferred assets and liabilities, or retrospectively for all periods presented. Early adoption of the amendments is permitted. The Company early adopted ASU 2015-17 retrospectively in the current reporting period. Adoption had no impact on our consolidated balance sheets. No reclassification was required in the prior year financial statements. In July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330): Simplifying the measurement of Inventory,which amends the accounting guidance on the valuation of inventory. The guidance requires an entity to measure in scope inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Subsequent measurement is unchanged for inventory measured using LIFO or the retail inventory method. The amendments do not apply to inventory that is measured using last-in, first-out (LIFO) or the retail inventory method. The amendments apply to all other inventory, which includes inventory that is measured using first-in, first-out (FIFO) or average cost. This guidance is effective for reporting periods beginning after December 15, 2016, including interim periods within those fiscal years. The Company is currently evaluating the impact of ASU 2015-11 on its consolidated financial statements and footnote disclosures. 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 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 beginning after December 15, 2015, and interim periods beginning after December 15, 2015. We are currently evaluating the impact of our pending adoption of the new standard on our consolidated financial statements. In January 2015, the FASB issued ASU 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 beginning after December 15, 2015, and interim periods beginning after December 15, 2015. We are currently evaluating the impact of our pending adoption of the new standard on our consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (ASU 2014-09), which supersedes nearly all existing revenue recognition guidance under U.S. GAAP. The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration to which an entity expects to be entitled for those goods or services. ASU 2014-09 defines a five-step process to achieve this core principle and, in doing so, more judgment and estimates may be required within the revenue recognition process than are required under existing GAAP. The standard is effective for annual periods beginning after December 15, 2016, and interim periods therein, using either of the following transition methods: (i) a full retrospective approach reflecting the application of the standard in each prior reporting period with the option to elect certain practical expedients, or (ii) a retrospective approach with the cumulative effect of initially adopting ASU 2014-09 recognized at the date of adoption (which includes additional footnote disclosures). In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers. The amendments in this ASU defer the effective date of ASU 2014-09. Public companies should apply the guidance in ASU 2014-09 to annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Early adoption is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. We continue to evaluate the expected impact of this new guidance and available adoption methods. In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements - Going Concern (Sub Topic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (ASU 2014-15). This ASU 2014-15 provides guidance to an entity’s management with principles and definitions that are intended to reduce diversity in the timing and content of disclosures that are currently commonly provided by entities in the financial statement footnotes. This ASU 2014-15 is effective for annual periods ending after December 15, 2016, and interim periods within annual periods beginning after December 15, 2016. Early application is permitted for annual or interim reporting periods for which the financial statements have not previously been issued. |
Net Loss Per Share | Basic net loss per share is computed by dividing net income 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. |
BALANCE SHEET COMPONENTS (Table
BALANCE SHEET COMPONENTS (Tables) | 12 Months Ended |
Jan. 03, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of balance sheet components | January 3, December 28, (in thousands) Inventories: Raw materials $ — $ — Work-in-process 1,720 1,191 Finished goods 1,158 3,761 $ 2,878 $ 4,952 Other current assets: Prepaid expenses $ 1,184 $ 1,042 Other 128 104 $ 1,312 $ 1,146 Property and equipment: Equipment $ 14,531 $ 14,047 Software 3,114 3,332 Furniture and fixtures 131 710 Leasehold improvements 714 595 18,490 18,684 Accumulated depreciation and amortization (15,175 ) (15,467 ) $ 3,315 $ 3,217 Accrued liabilities: Employee related accruals $ 1,237 $ 1,356 Other $ 245 218 $ 1,482 $ 1,574 |
OBLIGATIONS (Tables)
OBLIGATIONS (Tables) | 12 Months Ended |
Jan. 03, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of obligations | January 3, December 28, (in thousands) Debt and capital software lease obligations: Revolving line of credit $ 2,000 $ 1,000 Capital software leases 489 416 2,489 1,416 Current portion of debt and capital software lease obligations (281 ) (225 ) Long term portion of debt and capital software lease obligations $ 2,208 $ 1,191 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Jan. 03, 2016 | |
Fair Value Disclosures [Abstract] | |
Schedule of financial assets measured at fair value on a recurring basis | The following table presents the Company's financial assets that are measured at fair value on a recurring basis as of January 3, 2016 and December 28, 2014 , consistent with the fair value hierarchy provisions of the authoritative guidance (in thousands): As of January 3, 2016 As of December 28, 2014 Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Assets: Money market funds (1) $ 18,021 $ 2,137 $ 15,884 $ — $ 29,425 $ 874 $ 28,551 $ — Total assets $ 18,021 $ 2,137 $ 15,884 $ — $ 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 January 3, 2016 and December 28, 2014 . |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Jan. 03, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of U.S. and foreign components of consolidated income (loss) before income taxes and the provision for (benefit from) income taxes | The following table presents the U.S. and foreign components of consolidated income (loss) before income taxes and the provision for (benefit from) income taxes (in thousands): Fiscal Years 2015 2014 2013 Income (loss) before income taxes: U.S. $ (17,897 ) $ (13,172 ) $ (11,888 ) Foreign 195 161 67 Income (loss) before income taxes $ (17,702 ) $ (13,011 ) $ (11,821 ) Provision for (benefit from) income taxes: Current: Federal $ 37 $ — $ 58 State 2 — 1 Foreign 99 95 83 Subtotal 138 95 142 Deferred: Federal — — 225 State — — 48 Foreign 8 (27 ) 40 Subtotal 8 (27 ) 313 Provision for income taxes $ 146 $ 68 $ 455 |
Schedule of deferred tax balances | Deferred tax balances are comprised of the following (in thousands): January 3, 2016 December 28, 2014 Deferred tax assets: Net operating losses $ 45,148 $ 42,049 Capital losses 2,938 5,143 Accruals and reserves 1,732 2,247 Credits carryforward 5,831 5,455 Depreciation and amortization 12,738 10,709 Stock-based compensation 1,012 1,078 69,399 66,681 Valuation allowances (69,349 ) (66,618 ) Deferred tax asset $ 50 $ 63 Deferred tax liability — — |
Schedule of rate reconciliation between income tax provisions at the U.S. federal statutory rate and the effective rate | A rate reconciliation between income tax provisions at the U.S. federal statutory rate and the effective rate reflected in the consolidated statements of operations is as follows: Fiscal Years 2015 2014 2013 Income tax (benefit) at statutory rate $ (5,962 ) $ (4,423 ) $ (4,019 ) State taxes 2 — 1 Stock compensation and other permanent differences 286 6 316 Foreign taxes 41 22 101 Benefit allocated from other comprehensive income (loss) — — 273 Future benefit of deferred tax assets not recognized 5,779 4,463 3,783 Provision for income taxes $ 146 $ 68 $ 455 |
Schedule of reconciliation of beginning and ending amount of unrecognized tax benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands): January 3, 2016 December 28, 2014 December 29, 2013 Beginning balance of unrecognized tax benefits $ 516 $ 79 $ 79 Additions for tax positions related to the prior year (3 ) 330 — Additions for tax positions related to the current year 199 162 — Lapse of statues of limitations (16 ) (55 ) — Ending balance of unrecognized tax benefits $ 696 $ 516 $ 79 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 12 Months Ended |
Jan. 03, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of impact on results of operations of recording stock-based compensation expense | The impact on the Company's results of operations of recording stock-based compensation expense for fiscal years 2015 , 2014 , and 2013 was as follows (in thousands): Fiscal Years 2015 2014 2013 Cost of revenue $ 109 $ 137 $ 232 Research and development 826 924 666 Selling, general and administrative 1,064 1,181 1,081 Restructuring costs* 29 — — Total costs and expenses $ 2,028 $ 2,242 $ 1,979 * Stock-based compensation related to restructuring plan initiated in Q2-15. |
Schedule of weighted average assumptions included in estimated fair value calculations for stock option grants | The following weighted average assumptions are included in the estimated fair value calculations for stock option grants: Fiscal Years 2015 2014 2013 Expected term (years) 6.3 6.6 6.1 Risk-free interest rate 1.75 % 1.98 % 1.74 % Expected volatility 56 % 58 % 59 % Expected dividend — — — |
Schedule of shares available for grant | The following table summarizes the shares available for grant under the 2009 Plan for 2015 : Shares Available for Grant (in thousands) Balance at December 28, 2014 1,139 Authorized 2,500 Options granted (225 ) Options forfeited or expired 521 RSUs granted (817 ) RSUs forfeited 122 PRSUs granted (311 ) Balance at January 3, 2016 2,929 |
Schedule of stock options outstanding and stock option activity and related weighted average exercise price | 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 2015 , 2014 and 2013 : Number of Shares Weighted Average Exercise Price Weighted Average Remaining Term Aggregate Intrinsic Value (in thousands) (in years) (in thousands) Balance outstanding at December 30, 2012 6,960 $ 2.55 Granted 716 3.26 Forfeited or expired (269 ) 2.65 Exercised (165 ) 2.21 Balance outstanding at December 29, 2013 7,242 2.62 Granted 428 3.51 Forfeited or expired (219 ) 3.56 Exercised (1,769 ) 2.57 Balance outstanding at December 28, 2014 5,682 2.67 Granted 225 1.64 Forfeited or expired (521 ) 2.87 Exercised (120 ) 0.98 Balance outstanding at January 3, 2016 5,266 $ 2.64 4.56 $ 94 Exercisable at January 3, 2016 4,546 $ 2.63 3.94 $ 94 Vested and expected to vest at January 3, 2016 5,132 $ 2.64 4.45 $ 94 |
Schedule of significant price ranges of options outstanding, related weighted average exercise prices and contractual life information | Significant exercise price ranges of options outstanding, related weighted average exercise prices and contractual life information at the end of 2015 were as follows: Options Outstanding Options Exercisable Range of Exercise Prices Options Outstanding Weighted Average Remaining Contractual Life Weighted Average Exercise Price Options Vested and Exercisable Weighted Average Exercise Price (in thousands) (in years) (in thousands) $0.78 - $1.55 552 4.63 $ 1.04 407 $ 0.90 1.63 - 1.63 793 3.10 1.63 792 1.63 2.00 - 2.52 529 6.69 2.21 367 2.25 2.65 - 2.76 41 3.15 2.73 38 2.73 2.78 - 2.78 1,459 4.53 2.78 1,460 2.78 2.82 - 3.20 585 3.74 3.02 451 2.97 3.21 - 3.48 612 7.09 3.40 416 3.40 3.54 - 3.92 166 7.71 3.69 86 3.68 4.17- 4.17 501 1.82 4.17 501 4.17 5.94 - 5.94 28 0.32 5.94 28 5.94 $0.78 - $5.94 5,266 4.56 $ 2.64 4,546 $ 2.63 |
Schedule of share-based compensation related to RSU | The stock-based compensation related to grants of vested RSUs was $834,000 in 2015 . In 2015 , the Company also granted PRSUs to new employees and the stock-based compensation related to PRSUs was $101,000 . RSUs & PRSUs Outstanding Number of Shares Weighted Average Grant Date Fair Value (in thousands) Nonvested at December 28, 2014 650 $ 3.47 Granted 1,128 1.46 Vested (221 ) 1.42 Forfeited (122 ) — Nonvested at January 3, 2016 1,435 $ 2.30 |
Schedule of weighted average assumptions | The fair value of rights issued pursuant to the Company's ESPP was estimated on the commencement date of each offering period using the following weighted average assumptions: Fiscal Years 2015 2014 2013 Expected life (months) 6.0 6.0 6.1 Risk-free interest rate 0.21 % 0.07 % 0.09 % Volatility 55 % 49 % 39 % Dividend yield — — — |
ACCUMULATED OTHER COMPREHENSI33
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 12 Months Ended |
Jan. 03, 2016 | |
Equity [Abstract] | |
Schedule of reclassification out of accumulated other comprehensive income (loss) | The following table provides details about reclassification out of accumulated other comprehensive income (loss) for the year ended December 29, 2013: Change in unrealized gains on available for sale securities (in thousands) Accumulated other comprehensive income (loss), net of tax, as of December 30, 2012 $ (11 ) Other comprehensive income (loss) before reclassifications (77 ) Amounts reclassified from accumulated other comprehensive income (loss) 88 Net change in other comprehensive income (loss) 11 Accumulated other comprehensive income (loss), net of tax, as of December 29, 2013 $ — |
INFORMATION CONCERNING PRODUC34
INFORMATION CONCERNING PRODUCT LINES, GEOGRAPHIC INFORMATION, ACCOUNTSRECEIVABLE AND REVENUE CONCENTRATION (Tables) | 12 Months Ended |
Jan. 03, 2016 | |
Segment Reporting [Abstract] | |
Schedule of revenue by product family | The following is a breakdown of revenue by product family (in thousands): Fiscal Years 2015 2014 2013 Revenue by product line (1) : New products $ 12,020 $ 19,311 $ 18,219 Mature products 6,936 8,534 7,853 Total revenue $ 18,956 $ 27,845 $ 26,072 ___________________________ (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 shipment destination | The following is a breakdown of revenue by shipment destination (in thousands): Fiscal Years 2015 2014 2013 Revenue by geography: Asia Pacific (1) $ 12,650 $ 20,157 $ 20,099 Europe 1,859 3,371 1,788 North America (2) 4,447 4,317 4,185 Total revenue $ 18,956 $ 27,845 $ 26,072 __________________________ (1) Asia Pacific includes revenue from South Korea of $8.3 million or 44% of total revenue in 2015 and $14.4 million or 52% of total revenue in 2014. (2) North America includes revenue from the United States of $4.3 million or 22% of total revenue in 2015 and $4.1 million or 14% of total revenue in 2014. |
Schedule of distributors and customers accounting for revenue | The following distributors and customers accounted for 10% or more of the Company's revenue for the periods presented: Fiscal Years 2015 2014 2013 Distributor “A” 23 % 16 % 18 % Customer “B” 13 % * * Customer "G" 43 % 52 % 56 % ___________________________ * Represents less than 10% of revenue for the period presented. |
Schedule of distributors and customers accounting for accounts receivable | The following distributors and customers accounted for 10% or more of the Company's accounts receivable as of the dates presented: January 3, December 28, Distributor “A” 24 % 34 % Distributor “B” 11 % * Distributor "G" 11 % * Customer "G" 20 % 28 % Customer "H" 11 % * ___________________________ * Represents less than 10% of accounts receivable as of the date presented. |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Jan. 03, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of future minimum lease commitments | Future minimum lease commitments under the Company's operating leases, net of sublease income and excluding property taxes and insurance are as follows: Operating Leases (in thousands) Fiscal Years 2016 804 2017 704 2018 641 $ 2,149 |
RESTRUCTURING CHARGES (Tables)
RESTRUCTURING CHARGES (Tables) | 12 Months Ended |
Jan. 03, 2016 | |
Restructuring and Related Activities [Abstract] | |
Schedule of activities affecting the restructuring liabilities | The activities affecting the restructuring liabilities for the year ended January 3, 2016 are summarized as follows: Restructuring Liabilities In Thousands Balance at December 28, 2014 $ — Accruals 295 Payments and non-cash items adjustments (166 ) FX translation adjustment (8 ) Balance at January 3, 2016 $ 121 |
THE COMPANY AND BASIS OF PRES37
THE COMPANY AND BASIS OF PRESENTATION (Details) - USD ($) $ in Thousands | Jan. 03, 2016 | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Cash and cash equivalents | $ 19,136 | $ 30,050 | $ 37,406 | $ 22,578 |
Liquidity [Line Items] | ||||
Accumulated deficit | 220,756 | $ 202,908 | ||
Silicon Valley Bank | Revolving Line of Credit | ||||
Liquidity [Line Items] | ||||
Available credit | $ 4,000 |
SIGNIFICANT ACCOUNTING POLICI38
SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 03, 2016 | Dec. 28, 2014 | Dec. 29, 2013 | |
Accounting Policies [Abstract] | |||
Percentage of total operating expenses | 17.00% | 18.00% | 19.00% |
Finite-Lived Intangible Assets [Line Items] | |||
Net book value | $ 8 | $ 5 | $ 96 |
Operating loss carryforward | 69,400 | ||
Valuation allowance | 69,349 | $ 66,618 | |
Selling, General and Administrative Expenses | |||
Finite-Lived Intangible Assets [Line Items] | |||
Costs related to advertising and promotion expenditures | $ 60 | ||
Licensed Intellectual Property | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated useful life (up to) | 5 years | ||
Minimum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated useful life | 1 year | ||
Minimum | Assets Held under Capital Leases | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated useful life | 1 year | ||
Maximum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated useful life | 7 years | ||
Maximum | Assets Held under Capital Leases | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated useful life | 7 years |
NET LOSS PER SHARE (Details)
NET LOSS PER SHARE (Details) - shares shares in Millions | 12 Months Ended | ||
Jan. 03, 2016 | Dec. 28, 2014 | Dec. 29, 2013 | |
Earnings Per Share [Abstract] | |||
Shares associated with equity awards outstanding | 7.6 | 7 | 8 |
INVESTMENT IN TOWERJAZZ SEMIC40
INVESTMENT IN TOWERJAZZ SEMICONDUCTOR LTD. (Details) - TowerJazz $ in Thousands | Aug. 03, 2012 | Jun. 30, 2013USD ($)shares |
Schedule of Available-for-sale Securities [Line Items] | ||
Remaining ordinary shares sold | shares | 42,970 | |
Gain on sale of remaining ordinary shares | $ | $ 181 | |
Reverse stock split | 0.0667 |
BALANCE SHEET COMPONENTS - Sche
BALANCE SHEET COMPONENTS - Schedule of Balance Sheet Components (Details) - USD ($) $ in Thousands | Jan. 03, 2016 | Dec. 28, 2014 |
Inventories: | ||
Raw materials | $ 0 | $ 0 |
Work-in-process | 1,720 | 1,191 |
Finished goods | 1,158 | 3,761 |
Inventories | 2,878 | 4,952 |
Other current assets: | ||
Prepaid expenses | 1,184 | 1,042 |
Other | 128 | 104 |
Other current assets | 1,312 | 1,146 |
Property and equipment: | ||
Property and equipment, gross | 18,490 | 18,684 |
Accumulated depreciation and amortization | (15,175) | (15,467) |
Property and equipment, net | 3,315 | 3,217 |
Accrued liabilities: | ||
Employee related accruals | 1,237 | 1,356 |
Other | 245 | 218 |
Accrued liabilities | 1,482 | 1,574 |
Equipment | ||
Property and equipment: | ||
Property and equipment, gross | 14,531 | 14,047 |
Software | ||
Property and equipment: | ||
Property and equipment, gross | 3,114 | 3,332 |
Furniture and fixtures | ||
Property and equipment: | ||
Property and equipment, gross | 131 | 710 |
Leasehold improvements | ||
Property and equipment: | ||
Property and equipment, gross | $ 714 | $ 595 |
BALANCE SHEET COMPONENTS - Narr
BALANCE SHEET COMPONENTS - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 03, 2016 | Dec. 28, 2014 | Dec. 29, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Depreciation and amortization expense | $ 1,409 | $ 1,510 | $ 1,338 |
Assets acquired under capital leases | 1,000 | 1,200 | |
Accumulated depreciation on capital lease assets | 503 | 689 | |
Capital software leases | $ 489 | $ 416 |
OBLIGATIONS - Schedule of Oblig
OBLIGATIONS - Schedule of Obligations (Details) - USD ($) $ in Thousands | Jan. 03, 2016 | Dec. 28, 2014 |
Debt and capital software lease obligations: | ||
Revolving line of credit | $ 2,000 | $ 1,000 |
Capital software leases | 489 | 416 |
Debt and capital software lease obligations | 2,489 | 1,416 |
Current portion of debt and capital software lease obligations | (281) | (225) |
Long term portion of debt and capital software lease obligations | $ 2,208 | $ 1,191 |
OBLIGATIONS - Revolving Line of
OBLIGATIONS - Revolving Line of Credit (Details) | Sep. 25, 2015USD ($) | Jan. 03, 2016USD ($) | Dec. 28, 2014USD ($) |
Line of Credit Facility [Line Items] | |||
Revolving debt outstanding | $ 2,000,000 | $ 1,000,000 | |
Revolving Line of Credit | Silicon Valley Bank | |||
Line of Credit Facility [Line Items] | |||
Line of credit extension period | 2 years | ||
Revolving line of credit (up to) | $ 6,000,000 | ||
Amount of increase in company in company election (up to) | 12,000,000 | ||
Revolving debt outstanding | $ 2,000,000 | ||
Interest rate | 3.38% | ||
Tangible net worth (at least) | $ 12,000,000 | ||
Percentage of proceeds from equity issuance | 0.5 | ||
Percentage of proceeds from investments | 0.5 | ||
Unrestricted cash or cash equivalents (at least) | $ 6,000,000 | ||
Long-term portion of obligations (at least) | 1.1 |
OBLIGATIONS - Capital Leases (D
OBLIGATIONS - Capital Leases (Details) - USD ($) | 1 Months Ended | 24 Months Ended | 25 Months Ended | 31 Months Ended | ||||||||||
Jan. 31, 2017 | Jan. 31, 2016 | Dec. 31, 2015 | Jul. 31, 2015 | Dec. 31, 2014 | Aug. 31, 2014 | Jul. 31, 2014 | May. 31, 2014 | Nov. 30, 2017 | Apr. 30, 2016 | Jul. 31, 2017 | Jan. 31, 2017 | Jan. 03, 2016 | Dec. 28, 2014 | |
Debt Instrument [Line Items] | ||||||||||||||
Outstanding amount under capital leases | $ 489,000 | $ 416,000 | ||||||||||||
Amount classified as current liability | 281,000 | $ 225,000 | ||||||||||||
Capital Lease Obligation Leased December 2015 | Software | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Capital lease term | 2 years | |||||||||||||
Imputed interest rate | 4.88% | |||||||||||||
Periodic payments | $ 22,750 | |||||||||||||
Outstanding amount under capital leases | 173,000 | |||||||||||||
Amount classified as current liability | 85,000 | |||||||||||||
Capital Lease Obligation Leased December 2015 | Software | Scenario, Forecast | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Periodic payments | $ 182,000 | |||||||||||||
Capital Lease Obligation Leased July 2015 | Software | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Capital lease term | 3 years | |||||||||||||
Imputed interest rate | 4.91% | |||||||||||||
Periodic payments | $ 67,300 | |||||||||||||
Outstanding amount under capital leases | 125,000 | |||||||||||||
Amount classified as current liability | 61,000 | |||||||||||||
Capital Lease Obligation Leased July 2015 | Software | Scenario, Forecast | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Periodic payments | $ 202,000 | |||||||||||||
Capital Lease Obligation, Leased July 2014 | Software | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Capital lease term | 41 months | |||||||||||||
Imputed interest rate | 3.15% | |||||||||||||
Periodic payments | $ 16,000 | $ 42,000 | ||||||||||||
Outstanding amount under capital leases | 111,000 | |||||||||||||
Amount classified as current liability | 55,000 | |||||||||||||
Capital Lease Obligation, Leased July 2014 | Software | Subsequent Event | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Periodic payments | $ 58,000 | |||||||||||||
Capital Lease Obligation, Leased July 2014 | Software | Scenario, Forecast | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Periodic payments | $ 58,000 | $ 174,000 | ||||||||||||
Capital Lease Obligation, Leased May 2014 | Software | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Capital lease term | 3 years | |||||||||||||
Imputed interest rate | 4.80% | |||||||||||||
Periodic payments | $ 84,000 | |||||||||||||
Outstanding amount under capital leases | $ 80,000 | |||||||||||||
Capital Lease Obligation, Leased May 2014 | Software | Scenario, Forecast | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Periodic payments | $ 252,000 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Jan. 03, 2016 | Dec. 28, 2014 |
Assets: | ||
Money market funds | $ 18,021 | $ 29,425 |
Total assets | 18,021 | 29,425 |
Level 1 | ||
Assets: | ||
Money market funds | 2,137 | 874 |
Total assets | 2,137 | 874 |
Level 2 | ||
Assets: | ||
Money market funds | 15,884 | 28,551 |
Total assets | 15,884 | 28,551 |
Level 3 | ||
Assets: | ||
Money market funds | 0 | 0 |
Total assets | $ 0 | $ 0 |
INCOME TAXES - Schedule of U.S.
INCOME TAXES - Schedule of U.S. and Foreign Components of Consolidated Income (Loss) before Income Taxes and Provision for (Benefit from) Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 03, 2016 | Dec. 28, 2014 | Dec. 29, 2013 | |
Income (loss) before income taxes: | |||
U.S. | $ (17,897) | $ (13,172) | $ (11,888) |
Foreign | 195 | 161 | 67 |
Income (loss) before income taxes | (17,702) | (13,011) | (11,821) |
Current: | |||
Federal | 37 | 0 | 58 |
State | 2 | 0 | 1 |
Foreign | 99 | 95 | 83 |
Subtotal | 138 | 95 | 142 |
Deferred: | |||
Federal | 0 | 0 | 225 |
State | 0 | 0 | 48 |
Foreign | 8 | (27) | 40 |
Subtotal | 8 | (27) | 313 |
Provision for income taxes | $ 146 | $ 68 | $ 455 |
INCOME TAXES - Schedule of Defe
INCOME TAXES - Schedule of Deferred Tax Assets (Details) - USD ($) $ in Thousands | Jan. 03, 2016 | Dec. 28, 2014 |
Deferred tax assets: | ||
Net operating losses | $ 45,148 | $ 42,049 |
Capital losses | 2,938 | 5,143 |
Accruals and reserves | 1,732 | 2,247 |
Credits carryforward | 5,831 | 5,455 |
Depreciation and amortization | 12,738 | 10,709 |
Stock-based compensation | 1,012 | 1,078 |
Deferred tax assets, gross | 69,399 | 66,681 |
Valuation allowances | (69,349) | (66,618) |
Deferred tax asset | 50 | 63 |
Deferred tax liability | $ 0 | $ 0 |
INCOME TAXES - Schedule of Rate
INCOME TAXES - Schedule of Rate Reconciliation Between Income Tax Provisions and Effective Rate (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 03, 2016 | Dec. 28, 2014 | Dec. 29, 2013 | |
Income Tax Disclosure [Abstract] | |||
Income tax (benefit) at statutory rate | $ (5,962) | $ (4,423) | $ (4,019) |
State taxes | 2 | 0 | 1 |
Stock compensation and other permanent differences | 286 | 6 | 316 |
Foreign taxes | 41 | 22 | 101 |
Benefit allocated from other comprehensive income (loss) | 0 | 0 | 273 |
Future benefit of deferred tax assets not recognized | 5,779 | 4,463 | 3,783 |
Provision for income taxes | $ 146 | $ 68 | $ 455 |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) $ in Thousands | Jan. 03, 2016 | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 30, 2012 |
Operating Loss Carryforwards [Line Items] | ||||
Undistributed earnings for certain foreign subsidiaries | $ 400 | |||
Unrecognized tax benefits | 696 | $ 516 | $ 79 | $ 79 |
Unrecognized tax benefits that would result in a change in effective tax rate | 36 | |||
Accrued interest | 3 | |||
Accrued interest and penalties related to uncertain tax positions | 17 | $ 25 | ||
Federal | ||||
Operating Loss Carryforwards [Line Items] | ||||
Net operating loss carryforwards | 134,400 | |||
Operating loss carryforwards that will result in credits to stockholders equity | 9,600 | |||
Federal | Research Tax Credit Carryforward | ||||
Operating Loss Carryforwards [Line Items] | ||||
Research credit carryforward | 3,500 | |||
State | ||||
Operating Loss Carryforwards [Line Items] | ||||
Net operating loss carryforwards | 50,800 | |||
Operating loss carryforwards that will result in credits to stockholders equity | 4,300 | |||
State | Research Tax Credit Carryforward | ||||
Operating Loss Carryforwards [Line Items] | ||||
Research credit carryforward | $ 4,200 |
INCOME TAXES - Schedule of Reco
INCOME TAXES - Schedule of Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 03, 2016 | Dec. 28, 2014 | Dec. 29, 2013 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning balance of unrecognized tax benefits | $ 516 | $ 79 | $ 79 |
Additions for tax positions related to the prior year | (3) | 330 | 0 |
Additions for tax positions related to the current year | 199 | 162 | 0 |
Lapse of statues of limitations | (16) | (55) | 0 |
Ending balance of unrecognized tax benefits | $ 696 | $ 516 | $ 79 |
STOCKHOLDERS' EQUITY (Details)
STOCKHOLDERS' EQUITY (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||
Nov. 30, 2013 | Jan. 03, 2016 | Dec. 28, 2014 | Dec. 29, 2013 | Jul. 31, 2013 | |
Equity [Abstract] | |||||
Shares of common stock authorized to issue | 100,000,000 | 100,000,000 | |||
Shares of authorized but unissued undesignated preferred stock | 10,000,000 | 10,000,000 | |||
Dollar amount of offerings (up to) | $ 40,000,000 | ||||
Aggregate amount of shares of common stock issued | 8,740,000 | ||||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | $ 0.001 | ||
Underwritten public offering price (in dollars per share) | $ 2.90 | $ 1.13 | |||
Net proceeds from offering | $ 23,100,000 | ||||
Underwriter's commission and other offering expenses | $ 2,200,000 | $ (40,000) | $ 2,219,000 | ||
Class of Warrant or Right [Line Items] | |||||
Warrants outstanding (in warrants) | 2,300,000 | ||||
November 2009 Financing | |||||
Class of Warrant or Right [Line Items] | |||||
Warrants outstanding (in warrants) | 1,900,000 | ||||
Strike price (in dollars per share) | $ 2.15 | ||||
June 2012 Financing | |||||
Class of Warrant or Right [Line Items] | |||||
Warrants outstanding (in warrants) | 2,300,000 | ||||
Strike price (in dollars per share) | $ 2.98 |
EMPLOYEE STOCK PLANS (Details)
EMPLOYEE STOCK PLANS (Details) - shares | Apr. 23, 2015 | Jan. 03, 2016 | Dec. 28, 2014 | Apr. 22, 2009 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Term of equity awards granted | 10 years | |||
Equity award vesting period | 4 years | |||
1999 Stock Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Term of equity awards granted | 10 years | |||
1999 Stock Plan | Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock options granted (in shares) | 0 | |||
1999 Stock Plan | Period 1 | Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options vesting rate | 25.00% | |||
Equity award vesting period | 1 year | |||
1999 Stock Plan | Period 2 | Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Periodic vesting percentage | 2.08% | |||
2009 Stock Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Term of equity awards granted | 10 years | |||
Stock options granted (in shares) | 2,929,000 | 1,139,000 | ||
Additional shares of common stock reserved for issuance | 2,500,000 | 2,500,000 | ||
Shares reserved for issuance | 9,700,000 | |||
Forfeited or repurchased available for reissuance (up to) (in shares) | 10,000,000 | |||
2009 Stock Plan | Period 1 | Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options vesting rate | 25.00% | |||
Equity award vesting period | 1 year | |||
2009 Stock Plan | Period 1 | Restricted Stock Units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options vesting rate | 25.00% | |||
Equity award vesting period | 1 year | |||
2009 Stock Plan | Period 2 | Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Periodic vesting percentage | 2.08% | |||
2009 Stock Plan | Period 2 | Restricted Stock Units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Periodic vesting percentage | 12.50% | |||
Employee Stock Purchase Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Additional shares of common stock reserved for issuance | 1,000,000 | |||
Shares reserved for issuance | 3,300,000 | |||
Duration of offering period | 6 months | |||
Percentage of employee's total compensation (up to) | 20.00% | |||
Maximum shares per offering period | 20,000 | |||
Percentage of fair market value of common stock | 85.00% |
STOCK-BASED COMPENSATION - Narr
STOCK-BASED COMPENSATION - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Jan. 03, 2016 | Dec. 28, 2014 | Dec. 29, 2013 | Nov. 30, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Equity award vesting period | 4 years | |||
Maximum contractual term | 10 years | |||
Stock-based compensation | $ 2,028 | $ 2,242 | $ 1,979 | |
Weighted average estimated fair value (in dollars per share) | $ 0.87 | $ 1.99 | $ 1.82 | |
Fair value of unvested stock options, net of forfeitures | $ 2,700 | |||
Closing stock price (in dollars per share) | $ 1.13 | $ 2.90 | ||
The total intrinsic value of options exercised | $ 83 | $ 3,700 | $ 139 | |
Total cash received from employees as a result of employee stock option exercises | 117 | 4,500 | 365 | |
Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation | $ 861 | $ 1,100 | $ 1,100 | |
Weighted average period | 2 years 5 months 12 days | |||
RSUs & PRSUs Outstanding | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation | $ 834 | |||
PRSU | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation | $ 101 | |||
Employee Stock Purchase Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted average period | 4 months 12 days | |||
Weighted average estimated fair value as defined by amended authoritative guidance (in dollars per share) | $ 0.42 | $ 0.96 | $ 0.71 | |
Sales under ESPP (in shares) | 458,000 | 278,000 | 357,000 | |
Average price of sales under ESPP (in dollars per share) | $ 1.26 | $ 2.76 | $ 1.74 | |
Shares available for issuance (in shares) | 1,420,000 | |||
Compensation expenses related to ESPP | $ 232,000 | |||
Unrecognized stock-based compensation expense | $ 102 |
STOCK-BASED COMPENSATION - Sche
STOCK-BASED COMPENSATION - Schedule of Impact on Results of Operations of Recording Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 03, 2016 | Dec. 28, 2014 | Dec. 29, 2013 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total costs and expenses | $ 2,028 | $ 2,242 | $ 1,979 |
Cost of revenue | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total costs and expenses | 109 | 137 | 232 |
Research and development | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total costs and expenses | 826 | 924 | 666 |
Selling, general and administrative | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total costs and expenses | 1,064 | 1,181 | 1,081 |
Restructuring Costs | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total costs and expenses | $ 29 | $ 0 | $ 0 |
STOCK-BASED COMPENSATION - Sc56
STOCK-BASED COMPENSATION - Schedule of Weighted Average Assumptions Included in Estimated Fair Value Calculations for Stock Option Grants (Details) - Stock Options | 12 Months Ended | ||
Jan. 03, 2016 | Dec. 28, 2014 | Dec. 29, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term | 6 years 3 months 8 days | 6 years 7 months 6 days | 6 years 1 month 6 days |
Risk-free interest rate | 1.75% | 1.98% | 1.74% |
Expected volatility | 56.00% | 58.00% | 59.00% |
Expected dividend | 0.00% | 0.00% | 0.00% |
STOCK-BASED COMPENSATION - Sc57
STOCK-BASED COMPENSATION - Schedule of Shares Available for Grant (Details) - shares shares in Thousands | Apr. 23, 2015 | Jan. 03, 2016 | Dec. 28, 2014 | Dec. 29, 2013 |
Shares Available for Grant | ||||
Options granted (in shares) | (225) | (428) | (716) | |
Forfeited (in shares) | 521 | 219 | 269 | |
2009 Stock Plan | ||||
Shares Available for Grant | ||||
Balance at beginning of period (in shares) | 1,139 | |||
Authorized (in shares) | 2,500 | 2,500 | ||
Options granted (in shares) | (225) | |||
Options forfeited or expired (in shares) | 521 | |||
Balance at end of period (in shares) | 2,929 | 1,139 | ||
2009 Stock Plan | RSUs | ||||
Shares Available for Grant | ||||
Granted (in shares) | (817) | |||
Forfeited (in shares) | 122 | |||
2009 Stock Plan | PRSU | ||||
Shares Available for Grant | ||||
Granted (in shares) | (311) |
STOCK-BASED COMPENSATION - Sc58
STOCK-BASED COMPENSATION - Schedule of Stock Options Outstanding and Stock Option Activity and Related Weighted Average Exercise Price (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jan. 03, 2016 | Dec. 28, 2014 | Dec. 29, 2013 | |
Number of Shares | |||
Balance outstanding at beginning of period (in shares) | 5,682 | 7,242 | 6,960 |
Granted (in shares) | 225 | 428 | 716 |
Forfeited or expired (in shares) | (521) | (219) | (269) |
Exercised (in shares) | (120) | (1,769) | (165) |
Balance outstanding at end of period (in shares) | 5,266 | 5,682 | 7,242 |
Exercisable (in shares) | 4,546 | ||
Vested and expected to vest (in shares) | 5,132 | ||
Weighted Average Exercise Price | |||
Balance outstanding at beginning of period (in dollars per share) | $ 2.67 | $ 2.62 | $ 2.55 |
Granted (in dollars per share) | 1.64 | 3.51 | 3.26 |
Forfeited or expired (in dollars per share) | 2.87 | 3.56 | 2.65 |
Exercised (in dollars per share) | 0.98 | 2.57 | 2.21 |
Balance outstanding at end of period (in dollars per share) | 2.64 | $ 2.67 | $ 2.62 |
Exercisable (in dollars per share) | 2.63 | ||
Vested and expected to vest (in dollars per share) | $ 2.64 | ||
Weighted Average Remaining Term | |||
Balance outstanding | 4 years 6 months 21 days | ||
Exercisable | 3 years 11 months 8 days | ||
Vested and expected to vest | 4 years 5 months 12 days | ||
Aggregate Intrinsic Value | |||
Balance outstanding | $ 94 | ||
Exercisable | 94 | ||
Vested and expected to vest | $ 94 |
STOCK-BASED COMPENSATION - Sc59
STOCK-BASED COMPENSATION - Schedule of Significant Price Ranges of Options Outstanding, Related Weighted Average Exercise Prices and Contractual Life Information (Details) shares in Thousands | 12 Months Ended |
Jan. 03, 2016$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options Outstanding (in shares) | shares | 5,266 |
Weighted Average Remaining Contractual Life | 4 years 6 months 21 days |
Weighted Average Exercise Price (in dollars per share) | $ 2.64 |
Options Vested and Exercisable (in shares) | shares | 4,546 |
Weighted Average Exercise Price (in dollars per share) | $ 2.63 |
Range of exercise price, minimum (in dollars per share) | 0.78 |
Range of exercise price, maximum (in dollars per share) | $ 5.94 |
$0.78 - $1.55 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options Outstanding (in shares) | shares | 552 |
Weighted Average Remaining Contractual Life | 4 years 7 months 17 days |
Weighted Average Exercise Price (in dollars per share) | $ 1.04 |
Options Vested and Exercisable (in shares) | shares | 407 |
Weighted Average Exercise Price (in dollars per share) | $ 0.90 |
Range of exercise price, minimum (in dollars per share) | 0.78 |
Range of exercise price, maximum (in dollars per share) | $ 1.55 |
1.63 - 1.63 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options Outstanding (in shares) | shares | 793 |
Weighted Average Remaining Contractual Life | 3 years 1 month 6 days |
Weighted Average Exercise Price (in dollars per share) | $ 1.63 |
Options Vested and Exercisable (in shares) | shares | 792 |
Weighted Average Exercise Price (in dollars per share) | $ 1.63 |
Range of exercise price, minimum (in dollars per share) | 1.63 |
Range of exercise price, maximum (in dollars per share) | $ 1.63 |
2.00 - 2.52 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options Outstanding (in shares) | shares | 529 |
Weighted Average Remaining Contractual Life | 6 years 8 months 9 days |
Weighted Average Exercise Price (in dollars per share) | $ 2.21 |
Options Vested and Exercisable (in shares) | shares | 367 |
Weighted Average Exercise Price (in dollars per share) | $ 2.25 |
Range of exercise price, minimum (in dollars per share) | 2 |
Range of exercise price, maximum (in dollars per share) | $ 2.52 |
2.65 - 2.76 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options Outstanding (in shares) | shares | 41 |
Weighted Average Remaining Contractual Life | 3 years 1 month 24 days |
Weighted Average Exercise Price (in dollars per share) | $ 2.73 |
Options Vested and Exercisable (in shares) | shares | 38 |
Weighted Average Exercise Price (in dollars per share) | $ 2.73 |
Range of exercise price, minimum (in dollars per share) | 2.65 |
Range of exercise price, maximum (in dollars per share) | $ 2.76 |
2.78 - 2.78 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options Outstanding (in shares) | shares | 1,459 |
Weighted Average Remaining Contractual Life | 4 years 6 months 10 days |
Weighted Average Exercise Price (in dollars per share) | $ 2.78 |
Options Vested and Exercisable (in shares) | shares | 1,460 |
Weighted Average Exercise Price (in dollars per share) | $ 2.78 |
Range of exercise price, minimum (in dollars per share) | 2.78 |
Range of exercise price, maximum (in dollars per share) | $ 2.78 |
2.82 - 3.20 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options Outstanding (in shares) | shares | 585 |
Weighted Average Remaining Contractual Life | 3 years 8 months 26 days |
Weighted Average Exercise Price (in dollars per share) | $ 3.02 |
Options Vested and Exercisable (in shares) | shares | 451 |
Weighted Average Exercise Price (in dollars per share) | $ 2.97 |
Range of exercise price, minimum (in dollars per share) | 2.82 |
Range of exercise price, maximum (in dollars per share) | $ 3.20 |
3.21 - 3.48 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options Outstanding (in shares) | shares | 612 |
Weighted Average Remaining Contractual Life | 7 years 1 month 2 days |
Weighted Average Exercise Price (in dollars per share) | $ 3.40 |
Options Vested and Exercisable (in shares) | shares | 416 |
Weighted Average Exercise Price (in dollars per share) | $ 3.40 |
Range of exercise price, minimum (in dollars per share) | 3.21 |
Range of exercise price, maximum (in dollars per share) | $ 3.48 |
3.54 - 3.92 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options Outstanding (in shares) | shares | 166 |
Weighted Average Remaining Contractual Life | 7 years 8 months 16 days |
Weighted Average Exercise Price (in dollars per share) | $ 3.69 |
Options Vested and Exercisable (in shares) | shares | 86 |
Weighted Average Exercise Price (in dollars per share) | $ 3.68 |
Range of exercise price, minimum (in dollars per share) | 3.54 |
Range of exercise price, maximum (in dollars per share) | $ 3.92 |
4.17- 4.17 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options Outstanding (in shares) | shares | 501 |
Weighted Average Remaining Contractual Life | 1 year 9 months 25 days |
Weighted Average Exercise Price (in dollars per share) | $ 4.17 |
Options Vested and Exercisable (in shares) | shares | 501 |
Weighted Average Exercise Price (in dollars per share) | $ 4.17 |
Range of exercise price, minimum (in dollars per share) | 4.17 |
Range of exercise price, maximum (in dollars per share) | $ 4.17 |
5.94 - 5.94 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options Outstanding (in shares) | shares | 28 |
Weighted Average Remaining Contractual Life | 3 months 26 days |
Weighted Average Exercise Price (in dollars per share) | $ 5.94 |
Options Vested and Exercisable (in shares) | shares | 28 |
Weighted Average Exercise Price (in dollars per share) | $ 5.94 |
Range of exercise price, minimum (in dollars per share) | 5.94 |
Range of exercise price, maximum (in dollars per share) | $ 5.94 |
STOCK-BASED COMPENSATION - Sc60
STOCK-BASED COMPENSATION - Schedule of Share-based Compensation Related to RSU (Details) - RSUs & PRSUs Outstanding shares in Thousands | 12 Months Ended |
Jan. 03, 2016$ / sharesshares | |
Number of Shares | |
Beginning balance (in shares) | shares | 650 |
Granted (in shares) | shares | 1,128 |
Vested (in shares) | shares | (221) |
Forfeited (in shares) | shares | (122) |
Ending balance (in shares) | shares | 1,435 |
Weighted Average Grant Date Fair Value | |
Beginning balance (in dollars per share) | $ / shares | $ 3.47 |
Granted (in dollars per share) | $ / shares | 1.46 |
Vested (in dollars per share) | $ / shares | 1.42 |
Forfeited (in dollars per share) | $ / shares | 0 |
Ending balance (in dollars per share) | $ / shares | $ 2.30 |
STOCK-BASED COMPENSATION - Sc61
STOCK-BASED COMPENSATION - Schedule of Weighted Average Assumptions (Details) - Employee Stock Purchase Plan | 12 Months Ended | ||
Jan. 03, 2016 | Dec. 28, 2014 | Dec. 29, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected life (months) | 6 months | 6 months | 6 months 3 days |
Risk-free interest rate | 0.21% | 0.07% | 0.09% |
Volatility | 55.00% | 49.00% | 39.00% |
Dividend yield | 0.00% | 0.00% | 0.00% |
ACCUMULATED OTHER COMPREHENSI62
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) $ in Thousands | 12 Months Ended |
Dec. 29, 2013USD ($) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |
Beginning balance | $ (11) |
Other comprehensive income (loss) before reclassifications | (77) |
Amounts reclassified from accumulated other comprehensive income (loss) | 88 |
Net change in other comprehensive income (loss) | 11 |
Ending balance | $ 0 |
INFORMATION CONCERNING PRODUC63
INFORMATION CONCERNING PRODUCT LINES, GEOGRAPHIC INFORMATION, ACCOUNTSRECEIVABLE AND REVENUE CONCENTRATION - Schedule of Revenue by Product Family (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 03, 2016 | Dec. 28, 2014 | Dec. 29, 2013 | |
Revenue from External Customer [Line Items] | |||
Total revenue | $ 18,956 | $ 27,845 | $ 26,072 |
New products | |||
Revenue from External Customer [Line Items] | |||
Total revenue | 12,020 | 19,311 | 18,219 |
Mature products | |||
Revenue from External Customer [Line Items] | |||
Total revenue | $ 6,936 | $ 8,534 | $ 7,853 |
INFORMATION CONCERNING PRODUC64
INFORMATION CONCERNING PRODUCT LINES, GEOGRAPHIC INFORMATION, ACCOUNTSRECEIVABLE AND REVENUE CONCENTRATION - Schedule of Revenue by Shipment Destination (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 03, 2016 | Dec. 28, 2014 | Dec. 29, 2013 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenue | $ 18,956 | $ 27,845 | $ 26,072 |
Asia Pacific | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenue | 12,650 | 20,157 | 20,099 |
Europe | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenue | 1,859 | 3,371 | 1,788 |
North America | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenue | 4,447 | 4,317 | $ 4,185 |
South Korea | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenue | $ 8,300 | $ 14,400 | |
Revenue percentage | 44.00% | 52.00% | |
United States | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenue | $ 4,300 | $ 4,100 | |
Revenue percentage | 22.00% | 14.00% |
INFORMATION CONCERNING PRODUC65
INFORMATION CONCERNING PRODUCT LINES, GEOGRAPHIC INFORMATION, ACCOUNTSRECEIVABLE AND REVENUE CONCENTRATION - Schedule of Distributors and Customers Accounting for Revenue (Details) - Revenue | 12 Months Ended | ||
Jan. 03, 2016 | Dec. 28, 2014 | Dec. 29, 2013 | |
Distributor “A” | |||
Revenue, Major Customer [Line Items] | |||
Percentage of revenue from distributors and customers | 23.00% | 16.00% | 18.00% |
Customer “B” | |||
Revenue, Major Customer [Line Items] | |||
Percentage of revenue from distributors and customers | 13.00% | ||
Customer G | |||
Revenue, Major Customer [Line Items] | |||
Percentage of revenue from distributors and customers | 43.00% | 52.00% | 56.00% |
INFORMATION CONCERNING PRODUC66
INFORMATION CONCERNING PRODUCT LINES, GEOGRAPHIC INFORMATION, ACCOUNTSRECEIVABLE AND REVENUE CONCENTRATION - Schedule of Distributors and Customers Accounting for Accounts Receivable (Details) - Accounts Receivable | Jan. 03, 2016 | Dec. 28, 2014 |
Distributor “A” | ||
Concentration Risk [Line Items] | ||
Percentage of accounts receivable from distributors and customers | 24.00% | 34.00% |
Distributor B [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of accounts receivable from distributors and customers | 11.00% | |
Distributor G | ||
Concentration Risk [Line Items] | ||
Percentage of accounts receivable from distributors and customers | 11.00% | |
Customer G | ||
Concentration Risk [Line Items] | ||
Percentage of accounts receivable from distributors and customers | 20.00% | 28.00% |
Customer H | ||
Concentration Risk [Line Items] | ||
Percentage of accounts receivable from distributors and customers | 11.00% |
SHELF REGISTRATION STATEMENT (D
SHELF REGISTRATION STATEMENT (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||
Nov. 30, 2013 | Jan. 03, 2016 | Dec. 28, 2014 | Dec. 29, 2013 | Jul. 31, 2013 | |
Shelf Registration Statement [Abstract] | |||||
Dollar amount of offerings (up to) | $ 40,000,000 | ||||
Net proceeds from offering | $ 23,100,000 | ||||
Underwriter's commission and other expenses | $ 2,200,000 | $ (40,000) | $ 2,219,000 | ||
Aggregate amount of shares of common stock issued | 8,740,000 | ||||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | $ 0.001 | ||
Underwritten public offering price (in dollars per share) | $ 2.90 | $ 1.13 | |||
Remaining balance on the shelf | $ 14,700,000 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Narrative (Details) - USD ($) | 12 Months Ended | ||
Jan. 03, 2016 | Dec. 28, 2014 | Dec. 29, 2013 | |
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |||
Total outstanding purchase obligation | $ 1,300,000 | ||
Total rent expense, net of sublease income | 878,000 | $ 947,000 | $ 947,000 |
Royalty Claims | |||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |||
Minimum possible loss | 25,000 | ||
Maximum possible loss | 250,000 | ||
Wafer purchase commitment | |||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |||
Outstanding commitment for purchase of wafer inventory | $ 1,400,000 | $ 552,000 |
COMMITMENTS AND CONTINGENCIES69
COMMITMENTS AND CONTINGENCIES - Schedule of Future Minimum Lease Commitments (Details) $ in Thousands | Jan. 03, 2016USD ($) |
Operating Leases | |
2,016 | $ 804 |
2,017 | 704 |
2,018 | 641 |
Total | $ 2,149 |
RESTRUCTURING CHARGES - Narrati
RESTRUCTURING CHARGES - Narrative (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||
Jun. 30, 2015employee | Jan. 03, 2016USD ($) | Sep. 27, 2015USD ($) | Jun. 28, 2015USD ($) | Jan. 03, 2016USD ($) | Dec. 28, 2014USD ($) | Dec. 29, 2013USD ($) | |
Restructuring and Related Activities [Abstract] | |||||||
Number of employees | employee | 9 | ||||||
Percentage of global workforce | 9.00% | ||||||
Restructuring charges | $ | $ 49 | $ 77 | $ 169 | $ 295 | $ 0 | $ 181 |
RESTRUCTURING CHARGES - Schedul
RESTRUCTURING CHARGES - Schedule of Activities Affecting the Restructuring Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Jan. 03, 2016 | Sep. 27, 2015 | Jun. 28, 2015 | Jan. 03, 2016 | Dec. 28, 2014 | Dec. 29, 2013 | |
Restructuring Reserve [Roll Forward] | ||||||
Beginning balance | $ 0 | |||||
Accruals | $ 49 | $ 77 | $ 169 | 295 | $ 0 | $ 181 |
Payments and non-cash items adjustments | (166) | |||||
FX translation adjustment | (8) | |||||
Ending balance | $ 121 | $ 121 | $ 0 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) | Mar. 31, 2016USD ($) | Mar. 16, 2016USD ($)$ / sharesshares | Sep. 25, 2015USD ($) | Nov. 30, 2013$ / sharesshares | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jan. 03, 2016USD ($)$ / shares | Dec. 28, 2014USD ($)$ / shares | Dec. 29, 2013USD ($) | Jun. 30, 2016USD ($) |
Subsequent Event [Line Items] | ||||||||||||
Aggregate amount of shares of common stock issued | shares | 8,740,000 | |||||||||||
Underwritten public offering price (in dollars per share) | $ / shares | $ 2.90 | $ 1.13 | ||||||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | |||||||||
Gross proceeds | $ 554,000 | $ 4,702,000 | $ 26,311,000 | |||||||||
Option period | 10 years | |||||||||||
Subsequent Event | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Aggregate amount of shares of common stock issued | shares | 10,000,000 | |||||||||||
Underwritten public offering price (in dollars per share) | $ / shares | $ 1 | |||||||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.001 | |||||||||||
Gross proceeds | $ 10,000,000 | |||||||||||
Net proceeds from offering | $ 8,900,000 | |||||||||||
Option period | 30 days | |||||||||||
Shares of common stock granted to purchase (up to) | shares | 1,500,000 | |||||||||||
Silicon Valley Bank | Revolving Line of Credit | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Tangible net worth (at least) | $ 12,000,000 | |||||||||||
Percentage of proceeds from equity issuance | 0.5 | |||||||||||
Percentage of proceeds from investments | 0.5 | |||||||||||
Unrestricted cash or cash equivalents (at least) | $ 6,000,000 | |||||||||||
Long-term portion of obligations (at least) | 1.1 | |||||||||||
Scenario, Forecast | Silicon Valley Bank | Revolving Line of Credit | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Tangible net worth (at least) | $ 12,000,000 | $ 8,000,000 | $ 4,000,000 | $ 6,000,000 | $ 8,000,000 | $ 10,000,000 | ||||||
Percentage of proceeds from equity issuance | 0.5 | |||||||||||
Percentage of proceeds from investments | 0.5 | |||||||||||
Unrestricted cash or cash equivalents (at least) | $ 6,000,000 | |||||||||||
Long-term portion of obligations (at least) | 2 | 1.25 | 1.25 | 1.50 | 1.50 |
VALUATION AND QUALIFYING ACCO73
VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 03, 2016 | Dec. 28, 2014 | Dec. 29, 2013 | |
Allowance for Doubtful Accounts | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | $ 0 | $ 0 | $ 20 |
Charged to Costs and Expenses | 0 | 0 | (20) |
Deductions/Write-offs | 0 | 0 | 0 |
Balance at End of Period | 0 | 0 | 0 |
Allowance for Deferred Tax Assets | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 66,618 | 63,528 | 60,223 |
Charged to Costs and Expenses | 2,731 | 3,090 | 3,305 |
Deductions/Write-offs | 0 | 0 | 0 |
Balance at End of Period | $ 69,349 | $ 66,618 | $ 63,528 |