Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jul. 03, 2016 | Aug. 05, 2016 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | QUICKLOGIC CORPORATION | |
Entity Central Index Key | 882,508 | |
Current Fiscal Year End Date | --01-01 | |
Entity Filer Category | Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jul. 3, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 67,783,682 |
CONDENSED UNAUDITED CONSOLIDATE
CONDENSED UNAUDITED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jul. 03, 2016 | Jan. 03, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 18,970 | $ 19,136 |
Accounts receivable, net of allowances for doubtful accounts of $0 in both periods | 1,485 | 1,601 |
Inventories | 2,318 | 2,878 |
Other current assets | 983 | 1,312 |
Total current assets | 23,756 | 24,927 |
Property and equipment, net | 3,090 | 3,315 |
Other assets | 307 | 219 |
TOTAL ASSETS | 27,153 | 28,461 |
Current liabilities: | ||
Trade payables | 1,537 | 4,032 |
Accrued liabilities | 1,434 | 1,482 |
Current portion of capital lease obligations | 142 | 281 |
Total current liabilities | 3,113 | 5,795 |
Long-term liabilities: | ||
Revolving line of credit | 4,000 | 2,000 |
Capital lease obligations, less current portion | 109 | 208 |
Other long-term liabilities | 120 | 133 |
Total liabilities | 7,342 | 8,136 |
Commitments and contingencies (see Note 12) | ||
Stockholders' equity: | ||
Preferred stock, $0.001 par value; 10,000 shares authorized; no shares issued and outstanding | 0 | 0 |
Common stock, $0.001 par value; 100,000 shares authorized; 67,768 and 56,904 shares issued and outstanding, respectively | 68 | 57 |
Additional paid-in capital | 251,166 | 241,024 |
Accumulated deficit | (231,423) | (220,756) |
Total stockholders' equity | 19,811 | 20,325 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 27,153 | $ 28,461 |
CONDENSED UNAUDITED CONSOLIDAT3
CONDENSED UNAUDITED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jul. 03, 2016 | Jan. 03, 2016 |
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 | 67,768,000 | 56,904,000 |
Common stock, shares outstanding | 67,768,000 | 56,904,000 |
CONDENSED UNAUDITED CONSOLIDAT4
CONDENSED UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 03, 2016 | Jun. 28, 2015 | Jul. 03, 2016 | Jun. 28, 2015 | |
Income Statement [Abstract] | ||||
Revenue | $ 2,717 | $ 4,973 | $ 5,667 | $ 11,132 |
Cost of revenue | 1,941 | 2,830 | 3,735 | 6,110 |
Gross profit | 776 | 2,143 | 1,932 | 5,022 |
Operating expenses: | ||||
Research and development | 3,683 | 3,493 | 7,130 | 6,970 |
Selling, general and administrative | 2,591 | 2,690 | 5,284 | 5,650 |
Restructuring costs | 0 | 169 | 0 | 169 |
Total operating expenses | 6,274 | 6,352 | 12,414 | 12,789 |
Loss from operations | (5,498) | (4,209) | (10,482) | (7,767) |
Interest expense | (34) | (15) | (72) | (29) |
Interest income and other expense, net | (15) | (33) | (22) | (59) |
Loss before income taxes | (5,547) | (4,257) | (10,576) | (7,855) |
Provision for income taxes | 27 | 21 | 91 | 61 |
Net loss | $ (5,574) | $ (4,278) | $ (10,667) | $ (7,916) |
Net loss per share: | ||||
Basic (in dollars per share) | $ (0.08) | $ (0.08) | $ (0.17) | $ (0.14) |
Diluted (in dollars per share) | $ (0.08) | $ (0.08) | $ (0.17) | $ (0.14) |
Weighted average shares: | ||||
Basic (in shares) | 67,415 | 56,359 | 62,893 | 56,275 |
Diluted (in shares) | 67,415 | 56,359 | 62,893 | 56,275 |
CONDENSED UNAUDITED CONSOLIDAT5
CONDENSED UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 03, 2016 | Jun. 28, 2015 | Jul. 03, 2016 | Jun. 28, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (5,574) | $ (4,278) | $ (10,667) | $ (7,916) |
Total other comprehensive income, net of tax | 0 | 0 | 0 | 0 |
Total comprehensive loss | $ (5,574) | $ (4,278) | $ (10,667) | $ (7,916) |
CONDENSED UNAUDITED CONSOLIDAT6
CONDENSED UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jul. 03, 2016 | Jun. 28, 2015 | |
Cash flows from operating activities: | ||
Net loss | $ (10,667) | $ (7,916) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 631 | 727 |
Shares issued to third parties for services provided | 78 | 0 |
Stock-based compensation | 923 | 988 |
Write-down of inventories | 235 | 13 |
Write-off of equipment | 312 | 0 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 116 | (45) |
Inventories | 325 | 1,938 |
Other assets | 357 | 409 |
Trade payables | (1,816) | (533) |
Accrued liabilities and deferred revenue | (43) | 617 |
Other long-term liabilities | (13) | 79 |
Net cash used in operating activities | (9,562) | (3,723) |
Cash flows from investing activities: | ||
Capital expenditures for property and equipment | (1,513) | (163) |
Net cash used in investing activities | (1,513) | (163) |
Cash flows from financing activities: | ||
Payment of debt and capital lease obligations | (238) | (158) |
Proceeds from line of credit | 2,000 | 0 |
Proceeds from issuance of common stock | 10,344 | 409 |
Stock issuance costs | (1,197) | 0 |
Net cash provided by financing activities | 10,909 | 251 |
Net decrease in cash and cash equivalents | (166) | (3,635) |
Cash and cash equivalents at beginning of period | 19,136 | 30,050 |
Cash and cash equivalents at end of period | 18,970 | 26,415 |
Supplemental schedule of non-cash investing and financing activities : | ||
Capital lease obligation to finance capital expenditures | 251 | 258 |
Purchase of equipment included in accounts payable | $ 8 | $ 36 |
The Company and Basis of Presen
The Company and Basis of Presentation | 6 Months Ended |
Jul. 03, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
The Company and Basis of Presentation | The Company and Basis of Presentation QuickLogic Corporation ("QuickLogic" or "the Company") was founded in 1988 and reincorporated in Delaware in 1999. The Company enables Original Equipment Manufacturers ("OEMs") to maximize battery life for highly differentiated, immersive user experiences with Smartphone, Wearable, Tablet and Internet-of-Things devices. QuickLogic delivers these benefits through industry leading ultra-low power customer programmable System on Chip ("SoC") semiconductor solutions, embedded software, and algorithm solutions for always-on voice and sensor processing, and enhanced visual experiences. 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. The accompanying interim condensed consolidated financial statements are unaudited. In the opinion of management, these statements have been prepared in accordance with United States generally accepted accounting principles ("U.S. GAAP"), and include all adjustments, consisting only of normal recurring adjustments, necessary to provide a fair statement of results for the interim periods presented. The Company recommends that these interim condensed consolidated financial statements be read in conjunction with the Company's Form 10-K for the year ended January 3, 2016 . Operating results for the six months ended July 3, 2016 are not necessarily indicative of the results that may be expected for the full year. QuickLogic's fiscal year ends on the Sunday closest to December 31 and the fiscal quarters each end on the Sunday closest to the end of each calendar quarter. QuickLogic's second fiscal quarters for 2016 and for 2015 ended on Sunday, July 3, 2016 and June 28, 2015 , 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 July 3, 2016 , the Company's principal sources of liquidity consisted of cash and cash equivalents of $19.0 million and $2.0 million in available credit under its revolving line of credit with Silicon Valley Bank, which expires on September 25, 2017. On September 25, 2015, the Company entered into a Second Amendment to Third Amended and Restated Loan and Security Agreement with Silicon Valley Bank to extend the line of credit for two years through September 25, 2017. This amendment modifies some of the financial covenants. This line of credit 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 . On February 10, 2016, the Company entered into a Third Amendment to Third and Restated Loan and Security Agreement to further modify the covenants. See Note 5 for a description of the modified covenants. The Company is in compliance with all loan covenants as of the end of the current reporting period. On March 21, 2016, the Company issued 10.0 million shares of common stock at a price of $1.00 per share, $0.001 par value. The Company received net proceeds of approximately $8.8 million , after deducting underwriting commissions and other offering related expenses. The Company uses 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 were offered pursuant to a shelf registration statement previously filed with 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 ("SEC") pursuant to Rule 424(b) under the Securities Act of 1933, as amended. The Company currently uses its cash to fund its capital expenditures and operating losses. Based on past operating performance and current annual operating plans, 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 EOS TM , 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 requirements. 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. Principles of Consolidation The consolidated financial statements include the accounts of QuickLogic and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated. Foreign Currency The functional currency of the Company's non-U.S. operations is the U.S. dollar. Accordingly, all monetary assets and liabilities of these foreign operations are translated into U.S. dollars at current period-end exchange rates and non-monetary assets and related elements of expense are translated using historical exchange rates. Income and expense elements are translated to U.S. dollars using the average exchange rates in effect during the period. Gains and losses from the foreign currency transactions of these subsidiaries are recorded as interest income and other expense, net in the condensed unaudited consolidated statements of operations. Uses of Estimates The preparation of these consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities and the reported amounts of revenue and expenses during the period. Actual results could differ materially from those estimates, particularly in relation to revenue recognition, the allowance for doubtful accounts, sales returns, valuation of investments, valuation of long-lived assets including mask sets, valuation of inventories including identification of excess quantities, market value and obsolescence, measurement of stock-based compensation awards, accounting for income taxes and estimating accrued liabilities. Concentration of Risk The Company's accounts receivable are denominated in U.S. dollars and are derived primarily from sales to customers located in North America, Asia Pacific, and Europe. The Company performs ongoing credit evaluations of its customers and generally does not require collateral. See Note 11 for information regarding concentrations associated with accounts receivable. For the three and six months ended July 3, 2016 , the Company generated 31% and 33% of its total revenue from shipments to Samsung Electronics Co., Ltd. ("Samsung"). See Note 11 for information regarding concentrations associated with customers and distributors. |
Significant Accounting Policies
Significant Accounting Policies | 6 Months Ended |
Jul. 03, 2016 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies During the six months ended July 3, 2016 , there were no changes in the Company's significant accounting policies from its disclosure in the Annual Report on Form 10-K for the year ended January 3, 2016 . For a discussion of the significant accounting policies, please see the Annual Report on Form 10-K for the fiscal year ended January 3, 2016 , filed with the SEC, on March 18, 2016 . New Accounting Pronouncements In May 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU"), No. 2016-12, Revenue from contracts with customers (Topic 606): Narrow Scope Improvements and Practical Expedients . This update among other things: (1) clarify the object of the collectibility criterion for applying paragraph 606-10-25-7; (2) permit an entity to exclude amounts collected from customers for all sales (and other similar) taxes from transaction price; (3) specify that the measurement date for noncash consideration is contract inception; (4) provide a practical expedient that permits an entity to reflect the aggregate effect of all modifications that occur before the beginning of the earliest period presented when identifying the satisfied and unsatisfied performance obligations, determining the transaction price, and allocating the transaction price to the satisfied and unsatisfied performance obligations; (5) clarify that a completed contract for purposes of transition is a contract for which all (or substantially all) of the revenue was recognized under legacy GAAP before the date of initial application, and (6) clarify that an entity that retrospectively applies the guidance in Topic 606 to each prior period reporting is not required to disclose the effect of the accounting change for the period of adoption. This amendment is effective for public entities for annual reports beginning after December 15, 2017, including interim periods therein. For nonpublic entities one year later. We are currently evaluating the impact of our pending adoption of the new standard on our consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting . This update was issued as part of the FASB’s simplification initiative and affects all entities that issue share-based payment awards to their employees. The amendments in this update cover such areas as the recognition of excess tax benefits and deficiencies, the classification of those excess tax benefits on the statement of cash flows, an accounting policy election for forfeitures, the amount an employer can withhold to cover income taxes and still qualify for equity classification and the classification of those taxes paid on the statement of cash flows. This update is effective for annual and interim periods beginning after December 15, 2016, which will require us to adopt these provisions in the first quarter of fiscal year 2017. This guidance can be applied either prospectively, retrospectively or using a modified retrospective transition method, depending on the area covered in this update. Early adoption is permitted. We are currently evaluating the impact of our pending adoption of the new standard on our consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-08, Revenue from contracts with customers (Topic 606): Principal versus Agent Considerations Reporting Revenue Gross versus Net. The amendments are intended to improve the operability and understandability of the implementation guidance on principal versus agent considerations by amending certain existing illustrative examples and adding additional illustrative examples to assist in the application of the guidance. The effective date and transition of these amendments is the same as the effective date and transition of ASU 2014-09. Public entities should apply the amendments in ASU 2014-09 for annual reporting periods beginning after December 15, 2017, including interim reporting periods therein (i.e., January 1, 2018, for a calendar year entity). Private entities must apply the amendments one year later. We are currently evaluating the impact of our pending adoption of the new standard on our consolidated financial statements. In February 2016, the FASB issued ASU 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 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. The amendment applies to inventory valued at first-in, first-out 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. Other new accounting pronouncements are disclosed on the Annual Report on Form 10-K for the fiscal year ended January 3, 2016 filed with the SEC on March 18, 2016 . |
Net Loss Per Share
Net Loss Per Share | 6 Months Ended |
Jul. 03, 2016 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | Net Loss Per Share Basic loss per share is computed by dividing net loss available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted net income (loss) per share was computed using the weighted average number of common shares outstanding during the period plus potentially dilutive common shares outstanding during the period under the treasury stock method. In computing diluted net income (loss) per share, the weighted average stock price for the period is used in determining the number of shares assumed to be purchased from the exercise of stock options and warrants. The following shares were not included in the calculation of diluted net loss per share for the three and six months ended July 3, 2016 and June 28, 2015 : (i) 7.3 million and 7.1 million of common shares associated with equity awards outstanding and the estimated number of shares to be purchased under the current offering period of the 2009 Employee Stock Purchase Plan, respectively, and (ii) warrants to purchase up to 2.3 million shares of common stock as of July 3, 2016 and June 28, 2015 , respectively. These shares were not included as they were considered antidilutive due to the net loss the Company experienced during these periods. |
Balance Sheet Components
Balance Sheet Components | 6 Months Ended |
Jul. 03, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Balance Sheet Components | Balance Sheet Components As of July 3, January 3, (in thousands) Inventories: Raw materials $ — $ — Work-in-process 989 1,720 Finished goods 1,329 1,158 $ 2,318 $ 2,878 Other current assets: Prepaid expenses $ 864 $ 1,184 Other 119 128 $ 983 $ 1,312 Property and equipment: Equipment $ 14,189 $ 14,531 Software 3,162 3,114 Furniture and fixtures 129 131 Leasehold improvements 714 714 18,194 18,490 Accumulated depreciation and amortization (15,104 ) (15,175 ) $ 3,090 $ 3,315 Accrued liabilities: Employee related accruals $ 1,134 $ 1,237 Other 300 245 $ 1,434 $ 1,482 |
Obligations
Obligations | 6 Months Ended |
Jul. 03, 2016 | |
Debt Disclosure [Abstract] | |
Obligations | Obligations As of July 3, January 3, (in thousands) Debt and capital lease obligations: Revolving line of credit $ 4,000 $ 2,000 Capital leases 251 489 4,251 2,489 Current portion of debt and capital lease obligations (142 ) (281 ) Long term portion of debt and capital lease obligations $ 4,109 $ 2,208 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"). The terms of the Loan Agreement include a $6.0 million revolving line of credit available through September 25, 2017 , subject to increases at the Company's election of up to $12 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 advance, which is LIBOR rate plus the LIBOR rate margin. As of the second quarter ended July 3, 2016 , the Company had $4.0 million of revolving debt outstanding with an interest rate of 3.44% . On February 10, 2016, the Company entered into a Third Amendment to the 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 $12.0 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 month; (ii) unrestricted cash or cash equivalents at the Bank or Bank's affiliates at all times in an amount of at least $6.0 million ; 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 $10.0 million ; for the quarter ending September 30, 2016, at least $8.0 million ; for the quarter ending December 31, 2016, at least $6.0 million ; for the quarter ending March 31, 2017, at least $4.0 million ; for the quarter ending June 30, 2017, at least $8.0 million . 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. 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. 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 July 3, 2016 , $131,000 was outstanding under the capital lease, $86,000 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 July 3, 2016 , $64,000 was outstanding under the capital lease, all of which was classified as a long-term 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 July 3, 2016 , $56,000 was outstanding under this capital lease, all of which was classified as a current liability. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jul. 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 assumptions of market participant valuation (unobservable inputs). The fair value hierarchy consists of the following three levels: • Level 1 – Inputs are quoted prices in active markets for identical assets or liabilities. • Level 2 – Inputs are quoted prices for similar assets or liabilities in an active market, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable and market-corroborated inputs which are derived principally from or corroborated by observable market data. • Level 3 – Inputs are derived from valuation techniques in which one or more significant inputs or value drivers are unobservable. The following table presents the Company's financial assets that are measured at fair value on a recurring basis as of July 3, 2016 and January 3, 2016 , consistent with the fair value hierarchy provisions of the authoritative guidance (in thousands): July 3, 2016 January 3, 2016 Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Assets: Money market funds (1) $ 18,249 $ 1,146 $ 17,103 $ — $ 18,021 $ 2,137 $ 15,884 $ — Total assets $ 18,249 $ 1,146 $ 17,103 $ — $ 18,021 $ 2,137 $ 15,884 $ — _________________ (1) Money market funds are presented as a part of cash and cash equivalents on the accompanying consolidated balance sheets as of July 3, 2016 and January 3, 2016 . |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jul. 03, 2016 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders' Equity Common Stock and Preferred Stock The Company is authorized to issue 100 million shares of common stock and has 10 million shares of authorized but unissued shares of preferred stock. Without any further vote or action by the Company's stockholders, the Board of Directors has the authority to determine the powers, preferences, rights, qualifications, limitations or restrictions granted to or imposed upon any wholly unissued shares of undesignated preferred stock. Issuance of Common Stock and Warrants On July 31, 2013, the Company filed a shelf registration statement on Form S-3 under which the Company may, from time to time, sell securities in one or more offerings up to a total dollar amount of $40.0 million . The Company's shelf registration statement was declared effective on August 30, 2013 and will expire on August 30, 2016. In November 2013, the Company issued an aggregate of 8,740,000 shares of common stock, $0.001 par value, in an underwritten public offering at a price of $2.90 per share. The Company received net proceeds from the offering of approximately $23.1 million , net of underwriter's commission and other offering expenses of $2.2 million . In March 2016, the Company issued an aggregate of 10,000,000 shares of common stock, $0.001 par value, in an underwritten public offering at a price of $1.00 per share. The Company received net proceeds from the offering of approximately $8.8 million , net of underwriter's commission and other offering expenses of $1.2 million . As of July 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 will expire in June 2017. After August 2016, the warrants can only be exercised on a cashless basis. |
Employee Stock Plans
Employee Stock Plans | 6 Months Ended |
Jul. 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 non-qualified options, restricted stock units ("RSUs") and restricted stock. Equity awards granted under the 1999 Plan have a term of up to ten years. Options typically vest at a rate of 25% one year after the vesting commencement date, and one forty-eighth for each month of service thereafter. In March 2009, the Board adopted the 2009 Stock Plan, which was approved by the Company's stockholders on April 22, 2009. Effective April 22, 2009, no further stock options may be granted under the 1999 Plan. 2009 Stock Plan The 2009 Stock Plan, or 2009 Plan, was amended and restated by the Board of Directors in January 2015 and approved by the Company's stockholders on April 23, 2015 to, among other things, reserve an additional 2.5 million shares of common stock for issuance under the 2009 Plan. As of July 3, 2016 , approximately 9.8 million shares were reserved for issuance under the 2009 Plan. Equity awards that are cancelled, forfeited or repurchased under the 1999 Plan become available for grant under the 2009 Plan, up to a maximum of an additional 10 million shares. Equity awards granted under the 2009 Plan have a term of up to ten years. Options typically vest at a rate of 25% one year after the vesting commencement date, and one forty-eighth for each month of service thereafter. RSUs typically vest at a rate of 25% one year after the vesting commencement date, and one eighth every six months thereafter. The Company may implement different vesting schedules in the future with respect to any new equity awards. Employee Stock Purchase Plan The 2009 Employee Stock Purchase Plan, or 2009 ESPP, was adopted in March 2009. In January 2015, the 2009 ESPP was amended by the Board of Directors and approved by the Company's stockholders on April 23, 2015 to reserve an additional 1.0 million shares of common stock for issuance under the 2009 ESPP. As of July 3, 2016 , approximately 3.3 million shares were reserved for issuance under the 2009 ESPP Plan. The 2009 ESPP provides for six month offering periods. Participants purchase shares through payroll deductions of up to 20% of an employee's total compensation (maximum of 20,000 shares per offering period). The 2009 ESPP permits the Board of Directors to determine, prior to each offering period, whether participants purchase shares at: (i) 85% of the fair market value of the common stock at the end of the offering period; or (ii) 85% of the lower of the fair market value of the common stock at the beginning or the end of an offering period. The Board of Directors has determined that, until further notice, future offering periods will be made at 85% of the lower of the fair market value of the common stock at the beginning or the end of an offering period. Stock-Based Compensation The Company's equity incentive program is a broad-based, long-term retention program intended to attract, motivate, and retain talented employees as well as align stockholder and employee interests. The Company provides stock-based incentive compensation, or awards, to eligible employees and non-employee directors. Awards that may be granted under the program include non-qualified and incentive stock options, restricted stock units, or RSUs, performance-based restricted stock units, or PRSUs, and cash settlement of stock appreciation rights, or SARs. To date, awards granted under the program consist of stock options, RSUs and PRSUs. The majority of stock-based awards granted under the program vest over four years. Stock options granted under the program have a maximum contractual term of ten years. The stock-based compensation expense included in the Company's consolidated financial statements for the three and six months ended July 3, 2016 and June 28, 2015 was as follows (in thousands): Three Months Ended Six Months Ended July 3, June 28, July 3, June 28, Cost of revenue $ 47 $ 27 $ 85 $ 66 Research and development 175 212 466 403 Selling, general and administrative 217 252 450 519 Total costs and expenses $ 439 $ 491 $ 1,001 $ 988 No stock-based compensation was capitalized during any period presented above. Valuation Assumptions The Company uses the Black-Scholes option pricing model to estimate the fair value of employee stock options and rights to purchase shares under the Company's 2009 ESPP. Using the Black-Scholes pricing model requires the Company to develop highly subjective assumptions including the expected term of awards, expected volatility of its stock, expected risk-free interest rate and expected dividend rate over the term of the award. The Company's expected term of awards assumption is based primarily on its historical experience with similar grants. The Company's expected stock price volatility assumption for both stock options and ESPP shares is based on the historical volatility of the Company's stock, using the daily average of the opening and closing prices and measured using historical data appropriate for the expected term. The risk-free interest rate assumption approximates the risk-free interest rate of a Treasury Constant Maturity bond with a maturity approximately equal to the expected term of the stock option or ESPP shares. This fair value is expensed over the requisite service period of the award. The fair value of RSUs and PRSUs is based on the closing price of the Company's common stock on the date of grant. Equity compensation awards which vest with service are expensed using the straight-line attribution method over the requisite service period. In addition to the assumptions used in the Black-Scholes pricing model, the amended authoritative guidance requires that the Company recognize expense for awards ultimately expected to vest; therefore the Company is required to develop an estimate of the number of awards expected to be forfeited prior to vesting, or forfeiture rate. The forfeiture rate is estimated based on historical pre-vest cancellation experience and is applied to all share-based awards. The following weighted average assumptions are included in the estimated fair value calculations for stock option grants: Three Months Ended Six Months Ended July 3, June 28, July 3, June 28, Expected term (years) 0 0 0 4.78 Risk-free interest rate — % — % — % 1.40 % Expected volatility — % — % — % 52.11 % Expected dividend yield — — — — No stock options were granted during the first six months of 2016 and second quarter of 2015. The weighted average estimated fair value for options granted during the six months of 2015 was $0.90 per option. As of July 3, 2016 and June 28, 2015 , the fair value of unvested stock options, net of expected forfeitures, was approximately $2.0 million and $2.7 million , respectively. This unrecognized stock-based compensation expense is expected to be recorded over a weighted average period of 1.94 years. Stock-Based Compensation Award Activity The following table summarizes the activity in the shares available for grant under the 2009 Plan during the six months ended July 3, 2016 : Shares Available for Grant (in thousands) Balance at January 03, 2016 2,929 Options forfeited or expired 373 RSUs granted (612 ) PRSUs granted (193 ) RSUs forfeited or expired 159 PRSUs forfeited or expired 201 Balance at July 3, 2016 2,857 Stock Options The following table summarizes stock options outstanding and stock option activity under the 1999 Plan and the 2009 Plan, and the related weighted average exercise price, for the first six months of 2016 : Number of Shares Weighted Average Exercise Price Weighted Average Remaining Term Aggregate Intrinsic Value (in thousands) (in years) (in thousands) Balance outstanding at January 3, 2016 5,266 $ 2.64 Forfeited or expired (373 ) $ 2.74 Balance outstanding at July 3, 2016 4,893 $ 2.63 3.82 $ 17 Exercisable at July 3, 2016 4,542 $ 2.62 3.50 $ 17 Vested and expected to vest at July 3, 2016 4,838 $ 2.63 3.77 $ 17 The aggregate intrinsic value in the table above represents the total pretax intrinsic value, based on the Company's closing stock price of $0.94 as of the end of the Company's current reporting period, which would have been received by the option holders had all option holders exercised their options as of that date. The total intrinsic value of options exercised during the first six months of 2016 and 2015 was $0 and $81,000 , respectively. Total cash received from employees as a result of employee stock option exercises during the first six months of 2016 and 2015 was approximately $0 and $114,000 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 $100,000 and $214,000 for the three months and six months ended July 3, 2016 . Restricted Stock Units and Performance-based Restricted Stock Units The Company began issuing RSUs and PRSUs in the third quarter of 2007. RSUs entitle the holder to receive, at no cost, one common share for each RSU as it vests. In general, the Company's policy is to withhold shares in settlement of employee tax withholding obligations upon the vesting of RSUs. The stock-based compensation related to RSUs and PRSUs was $235,000 and $14,000 for the three months and $539,000 and $88,000 for the six months ended July 3, 2016 , respectively. As of July 3, 2016 , there was $1.6 million in unrecognized compensation expense related to RSUs and PRSUs. A summary of activity for the Company's RSUs and PRSUs for the six months ended July 3, 2016 and information regarding RSUs and PRSUs outstanding and expected to vest as of July 3, 2016 is as follows: RSUs & PRSUs Outstanding Number of Shares Weighted Average Grant Date Fair Value (in thousands) Nonvested at January 3, 2016 1,435 $ 2.30 Granted 805 1.11 Vested (442 ) 1.04 Forfeited (360 ) — Nonvested at July 3, 2016 1,438 $ 2.08 Employee Stock Purchase Plan The weighted average estimated fair value, as defined by the amended authoritative guidance, of rights issued pursuant to the Company's 2009 ESPP during the second quarters of 2016 and 2015 was $0.31 and $0.48 per right, respectively. As of July 3, 2016 , 917,000 shares remained available for issuance under the 2009 ESPP. For the three and six months ended July 3, 2016 , the Company recorded stock-based compensation expense related to the 2009 ESPP of $90,000 and $160,000 , respectively. The fair value of rights issued pursuant to the Company's 2009 ESPP was estimated on the commencement date of each offering period using the following weighted average assumptions: Three Months Ended Six Months Ended July 3, June 28, July 3, June 28, Expected term (months) 6.08 6.08 6.08 6.08 Risk-free interest rate 0.40 % 0.08 % 1.04 % 0.08 % Volatility 54.31 % 51.54 % 61.06 % 51.54 % Dividend yield — — — — As of July 3, 2016 , the unrecognized stock-based compensation expense relating to the Company's 2009 ESPP was $96,000 and is expected to be recognized over a weighted average period of approximately 4.5 months. |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jul. 03, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Employee Stock Plans 1999 Stock Plan The 1999 Stock Plan, or 1999 Plan, provided for the issuance of incentive and non-qualified options, restricted stock units ("RSUs") and restricted stock. Equity awards granted under the 1999 Plan have a term of up to ten years. Options typically vest at a rate of 25% one year after the vesting commencement date, and one forty-eighth for each month of service thereafter. In March 2009, the Board adopted the 2009 Stock Plan, which was approved by the Company's stockholders on April 22, 2009. Effective April 22, 2009, no further stock options may be granted under the 1999 Plan. 2009 Stock Plan The 2009 Stock Plan, or 2009 Plan, was amended and restated by the Board of Directors in January 2015 and approved by the Company's stockholders on April 23, 2015 to, among other things, reserve an additional 2.5 million shares of common stock for issuance under the 2009 Plan. As of July 3, 2016 , approximately 9.8 million shares were reserved for issuance under the 2009 Plan. Equity awards that are cancelled, forfeited or repurchased under the 1999 Plan become available for grant under the 2009 Plan, up to a maximum of an additional 10 million shares. Equity awards granted under the 2009 Plan have a term of up to ten years. Options typically vest at a rate of 25% one year after the vesting commencement date, and one forty-eighth for each month of service thereafter. RSUs typically vest at a rate of 25% one year after the vesting commencement date, and one eighth every six months thereafter. The Company may implement different vesting schedules in the future with respect to any new equity awards. Employee Stock Purchase Plan The 2009 Employee Stock Purchase Plan, or 2009 ESPP, was adopted in March 2009. In January 2015, the 2009 ESPP was amended by the Board of Directors and approved by the Company's stockholders on April 23, 2015 to reserve an additional 1.0 million shares of common stock for issuance under the 2009 ESPP. As of July 3, 2016 , approximately 3.3 million shares were reserved for issuance under the 2009 ESPP Plan. The 2009 ESPP provides for six month offering periods. Participants purchase shares through payroll deductions of up to 20% of an employee's total compensation (maximum of 20,000 shares per offering period). The 2009 ESPP permits the Board of Directors to determine, prior to each offering period, whether participants purchase shares at: (i) 85% of the fair market value of the common stock at the end of the offering period; or (ii) 85% of the lower of the fair market value of the common stock at the beginning or the end of an offering period. The Board of Directors has determined that, until further notice, future offering periods will be made at 85% of the lower of the fair market value of the common stock at the beginning or the end of an offering period. Stock-Based Compensation The Company's equity incentive program is a broad-based, long-term retention program intended to attract, motivate, and retain talented employees as well as align stockholder and employee interests. The Company provides stock-based incentive compensation, or awards, to eligible employees and non-employee directors. Awards that may be granted under the program include non-qualified and incentive stock options, restricted stock units, or RSUs, performance-based restricted stock units, or PRSUs, and cash settlement of stock appreciation rights, or SARs. To date, awards granted under the program consist of stock options, RSUs and PRSUs. The majority of stock-based awards granted under the program vest over four years. Stock options granted under the program have a maximum contractual term of ten years. The stock-based compensation expense included in the Company's consolidated financial statements for the three and six months ended July 3, 2016 and June 28, 2015 was as follows (in thousands): Three Months Ended Six Months Ended July 3, June 28, July 3, June 28, Cost of revenue $ 47 $ 27 $ 85 $ 66 Research and development 175 212 466 403 Selling, general and administrative 217 252 450 519 Total costs and expenses $ 439 $ 491 $ 1,001 $ 988 No stock-based compensation was capitalized during any period presented above. Valuation Assumptions The Company uses the Black-Scholes option pricing model to estimate the fair value of employee stock options and rights to purchase shares under the Company's 2009 ESPP. Using the Black-Scholes pricing model requires the Company to develop highly subjective assumptions including the expected term of awards, expected volatility of its stock, expected risk-free interest rate and expected dividend rate over the term of the award. The Company's expected term of awards assumption is based primarily on its historical experience with similar grants. The Company's expected stock price volatility assumption for both stock options and ESPP shares is based on the historical volatility of the Company's stock, using the daily average of the opening and closing prices and measured using historical data appropriate for the expected term. The risk-free interest rate assumption approximates the risk-free interest rate of a Treasury Constant Maturity bond with a maturity approximately equal to the expected term of the stock option or ESPP shares. This fair value is expensed over the requisite service period of the award. The fair value of RSUs and PRSUs is based on the closing price of the Company's common stock on the date of grant. Equity compensation awards which vest with service are expensed using the straight-line attribution method over the requisite service period. In addition to the assumptions used in the Black-Scholes pricing model, the amended authoritative guidance requires that the Company recognize expense for awards ultimately expected to vest; therefore the Company is required to develop an estimate of the number of awards expected to be forfeited prior to vesting, or forfeiture rate. The forfeiture rate is estimated based on historical pre-vest cancellation experience and is applied to all share-based awards. The following weighted average assumptions are included in the estimated fair value calculations for stock option grants: Three Months Ended Six Months Ended July 3, June 28, July 3, June 28, Expected term (years) 0 0 0 4.78 Risk-free interest rate — % — % — % 1.40 % Expected volatility — % — % — % 52.11 % Expected dividend yield — — — — No stock options were granted during the first six months of 2016 and second quarter of 2015. The weighted average estimated fair value for options granted during the six months of 2015 was $0.90 per option. As of July 3, 2016 and June 28, 2015 , the fair value of unvested stock options, net of expected forfeitures, was approximately $2.0 million and $2.7 million , respectively. This unrecognized stock-based compensation expense is expected to be recorded over a weighted average period of 1.94 years. Stock-Based Compensation Award Activity The following table summarizes the activity in the shares available for grant under the 2009 Plan during the six months ended July 3, 2016 : Shares Available for Grant (in thousands) Balance at January 03, 2016 2,929 Options forfeited or expired 373 RSUs granted (612 ) PRSUs granted (193 ) RSUs forfeited or expired 159 PRSUs forfeited or expired 201 Balance at July 3, 2016 2,857 Stock Options The following table summarizes stock options outstanding and stock option activity under the 1999 Plan and the 2009 Plan, and the related weighted average exercise price, for the first six months of 2016 : Number of Shares Weighted Average Exercise Price Weighted Average Remaining Term Aggregate Intrinsic Value (in thousands) (in years) (in thousands) Balance outstanding at January 3, 2016 5,266 $ 2.64 Forfeited or expired (373 ) $ 2.74 Balance outstanding at July 3, 2016 4,893 $ 2.63 3.82 $ 17 Exercisable at July 3, 2016 4,542 $ 2.62 3.50 $ 17 Vested and expected to vest at July 3, 2016 4,838 $ 2.63 3.77 $ 17 The aggregate intrinsic value in the table above represents the total pretax intrinsic value, based on the Company's closing stock price of $0.94 as of the end of the Company's current reporting period, which would have been received by the option holders had all option holders exercised their options as of that date. The total intrinsic value of options exercised during the first six months of 2016 and 2015 was $0 and $81,000 , respectively. Total cash received from employees as a result of employee stock option exercises during the first six months of 2016 and 2015 was approximately $0 and $114,000 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 $100,000 and $214,000 for the three months and six months ended July 3, 2016 . Restricted Stock Units and Performance-based Restricted Stock Units The Company began issuing RSUs and PRSUs in the third quarter of 2007. RSUs entitle the holder to receive, at no cost, one common share for each RSU as it vests. In general, the Company's policy is to withhold shares in settlement of employee tax withholding obligations upon the vesting of RSUs. The stock-based compensation related to RSUs and PRSUs was $235,000 and $14,000 for the three months and $539,000 and $88,000 for the six months ended July 3, 2016 , respectively. As of July 3, 2016 , there was $1.6 million in unrecognized compensation expense related to RSUs and PRSUs. A summary of activity for the Company's RSUs and PRSUs for the six months ended July 3, 2016 and information regarding RSUs and PRSUs outstanding and expected to vest as of July 3, 2016 is as follows: RSUs & PRSUs Outstanding Number of Shares Weighted Average Grant Date Fair Value (in thousands) Nonvested at January 3, 2016 1,435 $ 2.30 Granted 805 1.11 Vested (442 ) 1.04 Forfeited (360 ) — Nonvested at July 3, 2016 1,438 $ 2.08 Employee Stock Purchase Plan The weighted average estimated fair value, as defined by the amended authoritative guidance, of rights issued pursuant to the Company's 2009 ESPP during the second quarters of 2016 and 2015 was $0.31 and $0.48 per right, respectively. As of July 3, 2016 , 917,000 shares remained available for issuance under the 2009 ESPP. For the three and six months ended July 3, 2016 , the Company recorded stock-based compensation expense related to the 2009 ESPP of $90,000 and $160,000 , respectively. The fair value of rights issued pursuant to the Company's 2009 ESPP was estimated on the commencement date of each offering period using the following weighted average assumptions: Three Months Ended Six Months Ended July 3, June 28, July 3, June 28, Expected term (months) 6.08 6.08 6.08 6.08 Risk-free interest rate 0.40 % 0.08 % 1.04 % 0.08 % Volatility 54.31 % 51.54 % 61.06 % 51.54 % Dividend yield — — — — As of July 3, 2016 , the unrecognized stock-based compensation expense relating to the Company's 2009 ESPP was $96,000 and is expected to be recognized over a weighted average period of approximately 4.5 months. |
Income Taxes
Income Taxes | 6 Months Ended |
Jul. 03, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes In the second quarters of 2016 and 2015 , the Company recorded net income tax expense of $27,000 and $21,000 , respectively. For the six months ended July 3, 2016 and June 28, 2015, the Company recorded net income tax expense of $91,000 and $61,000 , respectively. The income tax expense for the second quarters and the first six months of 2016 and 2015 relates to income taxes from the Company's foreign operations, which are cost-plus entities. Based on the available objective evidence, management believes it is more likely than not that the Company's net deferred tax assets will not be fully realizable. Accordingly, with the exception of its foreign subsidiaries, the Company has provided a full valuation allowance against the associated deferred tax assets. The Company will continue to assess the realizability of the deferred tax assets in future periods. As of July 3, 2016 and at January 3, 2016, the amount of unrecognized tax benefits that would affect the effective tax rate if recognized was approximated $36,000 . The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. For the six month period ended July 3, 2016 , the Company accrued $2,000 of interest and penalties. As of July 3, 2016 , the Company had approximately $19,000 of accrued interest and penalties related to uncertain tax positions. Included in the balance of unrecognized tax benefits at July 3, 2016 was $20,000 related to tax positions, interest, and penalties for which it is reasonably possible that the statute of limitations for these items will expire in various jurisdictions within the next twelve months. The Company is subject to U.S. federal income tax as well as income taxes in many U.S. states and foreign jurisdictions in which the Company operates. As of July 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. |
Information Concerning Product
Information Concerning Product Lines, Geographic Information and Revenue Concentration | 6 Months Ended |
Jul. 03, 2016 | |
Segment Reporting [Abstract] | |
Information Concerning Product Lines, Geographic Information and Revenue Concentration | Information Concerning Product Lines, Geographic Information and Revenue Concentration The Company identifies its business segment based on business activities, management responsibility and geographic location. For all periods presented, the Company operated in a single reportable business segment. The following is a breakdown of revenue by product line (in thousands): Three Months Ended Six Months Ended July 3, June 28, July 3, 2016 June 28, Revenue by product line (1) : New products $ 1,197 $ 2,953 $ 2,689 $ 7,097 Mature products 1,520 2,020 2,978 4,035 Total revenue $ 2,717 $ 4,973 $ 5,667 $ 11,132 _________________ (1) For all periods presented: New products include all products manufactured on 180 nanometer or smaller semiconductor processes. Mature products include all products produced on semiconductor processes larger than 180 nanometers. The following is a breakdown of revenue by shipment destination (in thousands): Three Months Ended Six Months Ended July 3, June 28, July 3, 2016 June 28, 2015 Revenue by geography: Asia Pacific (1) $ 1,779 $ 3,482 $ 3,506 $ 7,290 North America (2) 638 1,087 1,457 2,929 Europe 300 404 704 913 Total revenue $ 2,717 $ 4,973 $ 5,667 $ 11,132 ___________ (1) Asia Pacific includes revenue from South Korea of $875,000 , or 32% , of total revenue and $2.1 million , or 42% , of total revenue for the quarters ended July 3, 2016 and June 28, 2015, respectively. For the six months ended July 3, 2016 and June 28, 2015, revenue from South Korea was $2.0 million , or 35% , of total revenue and $4.5 million or 40% , respectively. (2) North America includes revenue from the United States of $604,000 , or 22% , of total revenue and $1.0 million , or 20% , for the quarters ended July 3 2016 and June 28, 2015, respectively. For the six months ended July 3, 2016 and June 28, 2015, revenue from United States was $1.4 million , or 25% , of total revenue and $2.8 million or 25% , respectively. The following distributors and customers accounted for 10% or more of the Company's revenue for the periods presented: Three Months Ended Six Months Ended July 3, June 28, July 3, 2016 June 28, 2015 Distributor "A" 31 % 24 % 30 % 27 % Customer "B" 17 % 14 % 18 % 15 % Customer "G" 31 % 41 % 33 % 40 % The following distributors and customers accounted for 10% or more of the Company's accounts receivable as of the dates presented: July 3, January 3, Distributor "A" 44 % 24 % Distributor “B” * 11 % Distributor "G" 13 % 11 % Customer "G" 20 % 20 % Customer "H" * 11 % * Represents less than 10% of accounts receivable as of the date presented. As of July 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. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jul. 03, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Commitments The Company's manufacturing suppliers require us to forecast wafer starts several months in advance. The Company is required to take delivery of and pay for a portion of forecasted wafer volume. As of July 3, 2016 , and January 3, 2016 , the Company had $357,000 and $1.4 million , respectively, of outstanding commitments for the purchase of wafer and finished goods inventory. The Company has obligations with certain suppliers for the purchase of other goods and services entered into in the ordinary course of business. As of July 3, 2016 , total outstanding purchase obligations were $1.2 million , all of which are due within the next twelve months. The Company leases its primary facility under a non-cancelable operating lease that expires at the end of 2018. In addition, the Company rents development facilities in India as well as sales offices in Europe and Asia. Total rent expense for the second quarters of 2016 and 2015 was approximately $206,000 and 238,000 , respectively. Total rent expense for the six months of 2016 and 2015 was $404,000 and $477,000 , respectively. As of July 3, 2016 , future minimum lease commitments under the Company's operating leases, excluding property taxes and insurance are as follows: Operating Leases (in thousands) Fiscal Years 2016 (Remaining 6 months) $ 424 2017 793 2018 798 2019 164 2020 169 2021 84 $ 2,432 Contingencies One of the Company's licensors contends that the Company owes back royalties on sales of the Company's ArcticLink III VX devices. After mediation in June 2016, the parties agreed upon a settlement of $40,000 to be paid by the Company and are finalizing the terms for such settlement. The Company accrued for this liability in the quarter ended July 3, 2016. |
Litigation
Litigation | 6 Months Ended |
Jul. 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: (i) without costly litigation; (ii) in a manner that is not adverse to the Company's financial position, results of operations or cash flows; or (iii) without requiring royalty or other payments which may adversely impact gross profit. |
Subsequent Event
Subsequent Event | 6 Months Ended |
Jul. 03, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Event In July 2016, the Company implemented strategic re-alignment measures that resulted in a reduction of eight employees. The Company expects to incur a one-time severance charge of approximately $170,000 in the third quarter of 2016 associated with this reduction. |
The Company and Basis of Pres21
The Company and Basis of Presentation (Policies) | 6 Months Ended |
Jul. 03, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Fiscal period | QuickLogic's fiscal year ends on the Sunday closest to December 31 and the fiscal quarters each end on the Sunday closest to the end of each calendar quarter. QuickLogic's second fiscal quarters for 2016 and for 2015 ended on Sunday, July 3, 2016 and June 28, 2015 , respectively. |
Liquidity | Liquidity The Company has financed its operations and capital investments through sales of common stock, capital and operating leases, and bank lines of credit. As of July 3, 2016 , the Company's principal sources of liquidity consisted of cash and cash equivalents of $19.0 million and $2.0 million in available credit under its revolving line of credit with Silicon Valley Bank, which expires on September 25, 2017. On September 25, 2015, the Company entered into a Second Amendment to Third Amended and Restated Loan and Security Agreement with Silicon Valley Bank to extend the line of credit for two years through September 25, 2017. This amendment modifies some of the financial covenants. This line of credit 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 . On February 10, 2016, the Company entered into a Third Amendment to Third and Restated Loan and Security Agreement to further modify the covenants. See Note 5 for a description of the modified covenants. The Company is in compliance with all loan covenants as of the end of the current reporting period. On March 21, 2016, the Company issued 10.0 million shares of common stock at a price of $1.00 per share, $0.001 par value. The Company received net proceeds of approximately $8.8 million , after deducting underwriting commissions and other offering related expenses. The Company uses 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 were offered pursuant to a shelf registration statement previously filed with 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 ("SEC") pursuant to Rule 424(b) under the Securities Act of 1933, as amended. The Company currently uses its cash to fund its capital expenditures and operating losses. Based on past operating performance and current annual operating plans, 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 EOS TM , 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 requirements. 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. |
Principles of consolidation | Principles of Consolidation The consolidated financial statements include the accounts of QuickLogic and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated. |
Foreign currency | Foreign Currency The functional currency of the Company's non-U.S. operations is the U.S. dollar. Accordingly, all monetary assets and liabilities of these foreign operations are translated into U.S. dollars at current period-end exchange rates and non-monetary assets and related elements of expense are translated using historical exchange rates. Income and expense elements are translated to U.S. dollars using the average exchange rates in effect during the period. Gains and losses from the foreign currency transactions of these subsidiaries are recorded as interest income and other expense, net in the condensed unaudited consolidated statements of operations. |
Uses of estimates | Uses of Estimates The preparation of these consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities and the reported amounts of revenue and expenses during the period. Actual results could differ materially from those estimates, particularly in relation to revenue recognition, the allowance for doubtful accounts, sales returns, valuation of investments, valuation of long-lived assets including mask sets, 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 | Concentration of Risk The Company's accounts receivable are denominated in U.S. dollars and are derived primarily from sales to customers located in North America, Asia Pacific, and Europe. The Company performs ongoing credit evaluations of its customers and generally does not require collateral. See Note 11 for information regarding concentrations associated with accounts receivable. |
New accounting pronouncements | New Accounting Pronouncements In May 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU"), No. 2016-12, Revenue from contracts with customers (Topic 606): Narrow Scope Improvements and Practical Expedients . This update among other things: (1) clarify the object of the collectibility criterion for applying paragraph 606-10-25-7; (2) permit an entity to exclude amounts collected from customers for all sales (and other similar) taxes from transaction price; (3) specify that the measurement date for noncash consideration is contract inception; (4) provide a practical expedient that permits an entity to reflect the aggregate effect of all modifications that occur before the beginning of the earliest period presented when identifying the satisfied and unsatisfied performance obligations, determining the transaction price, and allocating the transaction price to the satisfied and unsatisfied performance obligations; (5) clarify that a completed contract for purposes of transition is a contract for which all (or substantially all) of the revenue was recognized under legacy GAAP before the date of initial application, and (6) clarify that an entity that retrospectively applies the guidance in Topic 606 to each prior period reporting is not required to disclose the effect of the accounting change for the period of adoption. This amendment is effective for public entities for annual reports beginning after December 15, 2017, including interim periods therein. For nonpublic entities one year later. We are currently evaluating the impact of our pending adoption of the new standard on our consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting . This update was issued as part of the FASB’s simplification initiative and affects all entities that issue share-based payment awards to their employees. The amendments in this update cover such areas as the recognition of excess tax benefits and deficiencies, the classification of those excess tax benefits on the statement of cash flows, an accounting policy election for forfeitures, the amount an employer can withhold to cover income taxes and still qualify for equity classification and the classification of those taxes paid on the statement of cash flows. This update is effective for annual and interim periods beginning after December 15, 2016, which will require us to adopt these provisions in the first quarter of fiscal year 2017. This guidance can be applied either prospectively, retrospectively or using a modified retrospective transition method, depending on the area covered in this update. Early adoption is permitted. We are currently evaluating the impact of our pending adoption of the new standard on our consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-08, Revenue from contracts with customers (Topic 606): Principal versus Agent Considerations Reporting Revenue Gross versus Net. The amendments are intended to improve the operability and understandability of the implementation guidance on principal versus agent considerations by amending certain existing illustrative examples and adding additional illustrative examples to assist in the application of the guidance. The effective date and transition of these amendments is the same as the effective date and transition of ASU 2014-09. Public entities should apply the amendments in ASU 2014-09 for annual reporting periods beginning after December 15, 2017, including interim reporting periods therein (i.e., January 1, 2018, for a calendar year entity). Private entities must apply the amendments one year later. We are currently evaluating the impact of our pending adoption of the new standard on our consolidated financial statements. In February 2016, the FASB issued ASU 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 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. The amendment applies to inventory valued at first-in, first-out 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. Other new accounting pronouncements are disclosed on the Annual Report on Form 10-K for the fiscal year ended January 3, 2016 filed with the SEC on March 18, 2016 . |
Net loss per share | Basic loss per share is computed by dividing net loss available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted net income (loss) per share was computed using the weighted average number of common shares outstanding during the period plus potentially dilutive common shares outstanding during the period under the treasury stock method. In computing diluted net income (loss) per share, the weighted average stock price for the period is used in determining the number of shares assumed to be purchased from the exercise of stock options and warrants. |
Value assumptions | Valuation Assumptions The Company uses the Black-Scholes option pricing model to estimate the fair value of employee stock options and rights to purchase shares under the Company's 2009 ESPP. Using the Black-Scholes pricing model requires the Company to develop highly subjective assumptions including the expected term of awards, expected volatility of its stock, expected risk-free interest rate and expected dividend rate over the term of the award. The Company's expected term of awards assumption is based primarily on its historical experience with similar grants. The Company's expected stock price volatility assumption for both stock options and ESPP shares is based on the historical volatility of the Company's stock, using the daily average of the opening and closing prices and measured using historical data appropriate for the expected term. The risk-free interest rate assumption approximates the risk-free interest rate of a Treasury Constant Maturity bond with a maturity approximately equal to the expected term of the stock option or ESPP shares. This fair value is expensed over the requisite service period of the award. The fair value of RSUs and PRSUs is based on the closing price of the Company's common stock on the date of grant. Equity compensation awards which vest with service are expensed using the straight-line attribution method over the requisite service period. In addition to the assumptions used in the Black-Scholes pricing model, the amended authoritative guidance requires that the Company recognize expense for awards ultimately expected to vest; therefore the Company is required to develop an estimate of the number of awards expected to be forfeited prior to vesting, or forfeiture rate. The forfeiture rate is estimated based on historical pre-vest cancellation experience and is applied to all share-based awards. |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 6 Months Ended |
Jul. 03, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of supplemental balance sheet disclosures | As of July 3, January 3, (in thousands) Inventories: Raw materials $ — $ — Work-in-process 989 1,720 Finished goods 1,329 1,158 $ 2,318 $ 2,878 Other current assets: Prepaid expenses $ 864 $ 1,184 Other 119 128 $ 983 $ 1,312 Property and equipment: Equipment $ 14,189 $ 14,531 Software 3,162 3,114 Furniture and fixtures 129 131 Leasehold improvements 714 714 18,194 18,490 Accumulated depreciation and amortization (15,104 ) (15,175 ) $ 3,090 $ 3,315 Accrued liabilities: Employee related accruals $ 1,134 $ 1,237 Other 300 245 $ 1,434 $ 1,482 |
Obligations (Tables)
Obligations (Tables) | 6 Months Ended |
Jul. 03, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of obligations | As of July 3, January 3, (in thousands) Debt and capital lease obligations: Revolving line of credit $ 4,000 $ 2,000 Capital leases 251 489 4,251 2,489 Current portion of debt and capital lease obligations (142 ) (281 ) Long term portion of debt and capital lease obligations $ 4,109 $ 2,208 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jul. 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 July 3, 2016 and January 3, 2016 , consistent with the fair value hierarchy provisions of the authoritative guidance (in thousands): July 3, 2016 January 3, 2016 Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Assets: Money market funds (1) $ 18,249 $ 1,146 $ 17,103 $ — $ 18,021 $ 2,137 $ 15,884 $ — Total assets $ 18,249 $ 1,146 $ 17,103 $ — $ 18,021 $ 2,137 $ 15,884 $ — _________________ (1) Money market funds are presented as a part of cash and cash equivalents on the accompanying consolidated balance sheets as of July 3, 2016 and January 3, 2016 . |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jul. 03, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of stock based compensation expense | The stock-based compensation expense included in the Company's consolidated financial statements for the three and six months ended July 3, 2016 and June 28, 2015 was as follows (in thousands): Three Months Ended Six Months Ended July 3, June 28, July 3, June 28, Cost of revenue $ 47 $ 27 $ 85 $ 66 Research and development 175 212 466 403 Selling, general and administrative 217 252 450 519 Total costs and expenses $ 439 $ 491 $ 1,001 $ 988 |
Schedule of weighted average assumptions included in the 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: Three Months Ended Six Months Ended July 3, June 28, July 3, June 28, Expected term (years) 0 0 0 4.78 Risk-free interest rate — % — % — % 1.40 % Expected volatility — % — % — % 52.11 % Expected dividend yield — — — — |
Summary of the activity in the shares available for grant under the 2009 plan | The following table summarizes the activity in the shares available for grant under the 2009 Plan during the six months ended July 3, 2016 : Shares Available for Grant (in thousands) Balance at January 03, 2016 2,929 Options forfeited or expired 373 RSUs granted (612 ) PRSUs granted (193 ) RSUs forfeited or expired 159 PRSUs forfeited or expired 201 Balance at July 3, 2016 2,857 |
Summary of stock options outstanding and stock option activity under the 1999 plan and the 2009 plan, and the 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 the first six months of 2016 : Number of Shares Weighted Average Exercise Price Weighted Average Remaining Term Aggregate Intrinsic Value (in thousands) (in years) (in thousands) Balance outstanding at January 3, 2016 5,266 $ 2.64 Forfeited or expired (373 ) $ 2.74 Balance outstanding at July 3, 2016 4,893 $ 2.63 3.82 $ 17 Exercisable at July 3, 2016 4,542 $ 2.62 3.50 $ 17 Vested and expected to vest at July 3, 2016 4,838 $ 2.63 3.77 $ 17 |
Summary of activity for RSUs and PRSUs | A summary of activity for the Company's RSUs and PRSUs for the six months ended July 3, 2016 and information regarding RSUs and PRSUs outstanding and expected to vest as of July 3, 2016 is as follows: RSUs & PRSUs Outstanding Number of Shares Weighted Average Grant Date Fair Value (in thousands) Nonvested at January 3, 2016 1,435 $ 2.30 Granted 805 1.11 Vested (442 ) 1.04 Forfeited (360 ) — Nonvested at July 3, 2016 1,438 $ 2.08 |
Summary of the fair value of rights issued pursuant to ESPP | The fair value of rights issued pursuant to the Company's 2009 ESPP was estimated on the commencement date of each offering period using the following weighted average assumptions: Three Months Ended Six Months Ended July 3, June 28, July 3, June 28, Expected term (months) 6.08 6.08 6.08 6.08 Risk-free interest rate 0.40 % 0.08 % 1.04 % 0.08 % Volatility 54.31 % 51.54 % 61.06 % 51.54 % Dividend yield — — — — |
Information Concerning Produc26
Information Concerning Product Lines, Geographic Information and Revenue Concentration (Tables) | 6 Months Ended |
Jul. 03, 2016 | |
Segment Reporting [Abstract] | |
Schedule of revenue by product line | The following is a breakdown of revenue by product line (in thousands): Three Months Ended Six Months Ended July 3, June 28, July 3, 2016 June 28, Revenue by product line (1) : New products $ 1,197 $ 2,953 $ 2,689 $ 7,097 Mature products 1,520 2,020 2,978 4,035 Total revenue $ 2,717 $ 4,973 $ 5,667 $ 11,132 _________________ (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): Three Months Ended Six Months Ended July 3, June 28, July 3, 2016 June 28, 2015 Revenue by geography: Asia Pacific (1) $ 1,779 $ 3,482 $ 3,506 $ 7,290 North America (2) 638 1,087 1,457 2,929 Europe 300 404 704 913 Total revenue $ 2,717 $ 4,973 $ 5,667 $ 11,132 ___________ (1) Asia Pacific includes revenue from South Korea of $875,000 , or 32% , of total revenue and $2.1 million , or 42% , of total revenue for the quarters ended July 3, 2016 and June 28, 2015, respectively. For the six months ended July 3, 2016 and June 28, 2015, revenue from South Korea was $2.0 million , or 35% , of total revenue and $4.5 million or 40% , respectively. (2) North America includes revenue from the United States of $604,000 , or 22% , of total revenue and $1.0 million , or 20% , for the quarters ended July 3 2016 and June 28, 2015, respectively. For the six months ended July 3, 2016 and June 28, 2015, revenue from United States was $1.4 million , or 25% , of total revenue and $2.8 million or 25% , respectively. |
Summary of distributors and customers accounting for 10% or more of revenue | The following distributors and customers accounted for 10% or more of the Company's revenue for the periods presented: Three Months Ended Six Months Ended July 3, June 28, July 3, 2016 June 28, 2015 Distributor "A" 31 % 24 % 30 % 27 % Customer "B" 17 % 14 % 18 % 15 % Customer "G" 31 % 41 % 33 % 40 % |
Schedule of distributors and customers accounting for 10% or more of accounts receivable | The following distributors and customers accounted for 10% or more of the Company's accounts receivable as of the dates presented: July 3, January 3, Distributor "A" 44 % 24 % Distributor “B” * 11 % Distributor "G" 13 % 11 % Customer "G" 20 % 20 % Customer "H" * 11 % * Represents less than 10% of accounts receivable as of the date presented. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jul. 03, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of future minimum lease commitments under operating leases | As of July 3, 2016 , future minimum lease commitments under the Company's operating leases, excluding property taxes and insurance are as follows: Operating Leases (in thousands) Fiscal Years 2016 (Remaining 6 months) $ 424 2017 793 2018 798 2019 164 2020 169 2021 84 $ 2,432 |
The Company and Basis of Pres28
The Company and Basis of Presentation - Liquidity (Details) - USD ($) | Mar. 21, 2016 | Sep. 25, 2015 | Mar. 31, 2016 | Nov. 30, 2013 | Jul. 03, 2016 | Jun. 28, 2015 | Jan. 03, 2016 | Dec. 28, 2014 |
Liquidity [Line Items] | ||||||||
Cash and cash equivalents | $ 18,970,000 | $ 26,415,000 | $ 19,136,000 | $ 30,050,000 | ||||
Share price (in dollars per share) | $ 1 | $ 1 | $ 2.90 | $ 0.94 | ||||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | |||
Net proceeds | $ 8,800,000 | $ 8,800,000 | $ 23,100,000 | $ 10,344,000 | $ 409,000 | |||
Common stock | ||||||||
Liquidity [Line Items] | ||||||||
Shares of common stock issued (in shares) | 10,000,000 | 10,000,000 | 8,740,000 | |||||
Revolving line of credit | Silicon Valley Bank | ||||||||
Liquidity [Line Items] | ||||||||
Cash and cash equivalents in available credit | $ 2,000,000 | |||||||
Extended period of line of credit | 2 years | |||||||
Loan advances | $ 6,000,000 | |||||||
Loan advances subject to increase | $ 12,000,000 |
The Company and Basis of Pres29
The Company and Basis of Presentation - Concentration of Risk (Details) | 3 Months Ended | 6 Months Ended |
Jul. 03, 2016 | Jul. 03, 2016 | |
Customer concentration risk | Samsung | Revenue | ||
Concentration Risk [Line Items] | ||
Percentage of total revenue generated from shipment | 31.00% | 33.00% |
Net Loss Per Share (Details)
Net Loss Per Share (Details) - shares shares in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 03, 2016 | Jun. 28, 2015 | Jul. 03, 2016 | Jun. 28, 2015 | |
2009 Stock Plans | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Common shares (in shares) | 7.3 | 7.1 | 7.3 | 7.1 |
Warrant | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Common shares (in shares) | 2.3 | 2.3 | 2.3 | 2.3 |
Balance Sheet Components (Detai
Balance Sheet Components (Details) - USD ($) $ in Thousands | Jul. 03, 2016 | Jan. 03, 2016 |
Inventories: | ||
Raw materials | $ 0 | $ 0 |
Work-in-process | 989 | 1,720 |
Finished goods | 1,329 | 1,158 |
Inventories | 2,318 | 2,878 |
Other current assets: | ||
Prepaid expenses | 864 | 1,184 |
Other | 119 | 128 |
Other current assets | 983 | 1,312 |
Property and equipment: | ||
Property and equipment, gross | 18,194 | 18,490 |
Accumulated depreciation and amortization | (15,104) | (15,175) |
Property and equipment, net | 3,090 | 3,315 |
Accrued liabilities: | ||
Employee related accruals | 1,134 | 1,237 |
Other | 300 | 245 |
Accrued liabilities | 1,434 | 1,482 |
Equipment | ||
Property and equipment: | ||
Property and equipment, gross | 14,189 | 14,531 |
Software | ||
Property and equipment: | ||
Property and equipment, gross | 3,162 | 3,114 |
Furniture and fixtures | ||
Property and equipment: | ||
Property and equipment, gross | 129 | 131 |
Leasehold improvements | ||
Property and equipment: | ||
Property and equipment, gross | $ 714 | $ 714 |
Obligations - Schedule of Oblig
Obligations - Schedule of Obligations (Details) - USD ($) $ in Thousands | Jul. 03, 2016 | Jan. 03, 2016 |
Debt and capital lease obligations: | ||
Revolving line of credit | $ 4,000 | $ 2,000 |
Capital leases | 251 | 489 |
Debt and capital lease obligations | 4,251 | 2,489 |
Current portion of debt and capital lease obligations | (142) | (281) |
Long term portion of debt and capital lease obligations | $ 4,109 | $ 2,208 |
Obligations - Revolving Line of
Obligations - Revolving Line of Credit (Details) | Sep. 25, 2015USD ($) | Mar. 31, 2017USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2017USD ($) | Dec. 31, 2016USD ($) | Jul. 03, 2016USD ($) | Jun. 30, 2016USD ($) | Jan. 03, 2016USD ($) |
Line of Credit Facility [Line Items] | ||||||||
Revolving debt outstanding | $ 4,000,000 | $ 2,000,000 | ||||||
Revolving line of credit | Bank | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Revolving line of credit | $ 6,000,000 | |||||||
Amount of increase in company in company election | 12,000,000 | |||||||
Revolving debt outstanding | $ 4,000,000 | |||||||
Interest | 3.44% | |||||||
Tangible net worth | $ 12,000,000 | $ 10,000,000 | ||||||
Percentage of proceeds from equity issuance | 0.5 | |||||||
Percentage of proceeds from investments | 0.5 | |||||||
Unrestricted cash or cash equivalents | $ 6,000,000 | |||||||
Ratio of quick assets to quick liabilities | 2 | |||||||
Revolving line of credit | Bank | Scenario, forecast | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Tangible net worth | $ 4,000,000 | $ 8,000,000 | $ 8,000,000 | $ 6,000,000 | ||||
Ratio of quick assets to quick liabilities | 1.25 | 1.50 |
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 | Nov. 30, 2017 | Jul. 31, 2017 | Jan. 31, 2017 | Jul. 03, 2016 | Jan. 03, 2016 | |
Debt Instrument [Line Items] | ||||||||||||
Capital lease outstanding | $ 251,000 | $ 489,000 | ||||||||||
Capital lease classified as current liability | 142,000 | $ 281,000 | ||||||||||
Design Software | Capital lease obligation, leased December 2015 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Capital lease term | 2 years | |||||||||||
Imputed interest rate | 4.88% | |||||||||||
Periodic payments | $ 22,750 | |||||||||||
Capital lease outstanding | 131,000 | |||||||||||
Capital lease classified as current liability | 86,000 | |||||||||||
Design Software | Capital lease obligation, leased December 2015 | Scenario, forecast | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Periodic payments | $ 182,000 | |||||||||||
Design Software | Capital lease obligation, leased July 2015 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Capital lease term | 3 years | |||||||||||
Imputed interest rate | 4.91% | |||||||||||
Periodic payments | $ 67,300 | |||||||||||
Capital lease outstanding | 64,000 | |||||||||||
Design Software | Capital lease obligation, leased July 2015 | Scenario, forecast | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Periodic payments | $ 202,000 | |||||||||||
Design Software | Capital lease obligation, leased July 2014 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Capital lease term | 41 months | |||||||||||
Imputed interest rate | 3.15% | |||||||||||
Periodic payments | $ 58,000 | $ 16,000 | $ 42,000 | |||||||||
Capital lease outstanding | $ 56,000 | |||||||||||
Design Software | Capital lease obligation, leased July 2014 | Scenario, forecast | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Periodic payments | $ 58,000 | $ 174,000 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - Fair value, measurements, recurring - USD ($) $ in Thousands | Jul. 03, 2016 | Jan. 03, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | $ 18,249 | $ 18,021 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 1,146 | 2,137 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 17,103 | 15,884 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 0 | 0 |
Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 18,249 | 18,021 |
Money market funds | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 1,146 | 2,137 |
Money market funds | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 17,103 | 15,884 |
Money market funds | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | $ 0 | $ 0 |
Stockholders' Equity - Common S
Stockholders' Equity - Common Stock and Preferred Stock (Details) - shares | Jul. 03, 2016 | Jan. 03, 2016 |
Equity [Abstract] | ||
Common stock authorized to issue (in shares) | 100,000,000 | 100,000,000 |
Preferred stock, authorized but unissued (in shares) | 10,000,000 | 10,000,000 |
Stockholders' Equity - Issuance
Stockholders' Equity - Issuance of Common Stock and Warrants (Details) - USD ($) | Mar. 21, 2016 | Mar. 31, 2016 | Nov. 30, 2013 | Jul. 03, 2016 | Jun. 28, 2015 | Jan. 03, 2016 | Jul. 31, 2013 |
Class of Stock [Line Items] | |||||||
Offerings | $ 40,000,000 | ||||||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | ||
Underwritten public offering price (in dollars per share) | $ 1 | $ 1 | $ 2.90 | $ 0.94 | |||
Net proceeds | $ 8,800,000 | $ 8,800,000 | $ 23,100,000 | $ 10,344,000 | $ 409,000 | ||
Offering expenses | $ 1,200,000 | $ 2,200,000 | $ 1,197,000 | $ 0 | |||
Warrants outstanding (in shares) | 2,300,000 | ||||||
November 2009 financing | |||||||
Class of Stock [Line Items] | |||||||
Warrants expired (in shares) | 1,900,000 | ||||||
Strike price of warrants (in dollars per share) | $ 2.15 | ||||||
June 2012 financing | |||||||
Class of Stock [Line Items] | |||||||
Warrants outstanding (in shares) | 2,300,000 | ||||||
Strike price of warrants (in dollars per share) | $ 2.98 | ||||||
Common stock | |||||||
Class of Stock [Line Items] | |||||||
Aggregate shares of common stock issued | 10,000,000 | 10,000,000 | 8,740,000 |
Employee Stock Plans - 1999 Sto
Employee Stock Plans - 1999 Stock Plan (Details) - shares | 6 Months Ended | |
Jul. 03, 2016 | Apr. 22, 2009 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock based award vesting period | 4 years | |
Stock options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Equity awards, term period | 10 years | |
1999 Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Equity awards, term period | 10 years | |
1999 Plan | Stock options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares reserved for issuance | 0 | |
1999 Plan | Initial vesting | Stock options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options vesting rate | 25.00% | |
Stock based award vesting period | 1 year | |
1999 Plan | Each month of service after vesting commencement date | Stock options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Periodic vesting percentage | 2.08% |
Employee Stock Plans - 2009 Sto
Employee Stock Plans - 2009 Stock Plan (Details) - shares | Apr. 23, 2015 | Jul. 03, 2016 | Jan. 03, 2016 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock based award vesting period | 4 years | ||
Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Equity awards, term period | 10 years | ||
2009 Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Additional shares of common stock reserved for issuance (in shares) | 2,500,000 | ||
Shares reserved for issuance | 9,800,000 | ||
Maximum additional shares | 10,000,000 | ||
Equity awards, term period | 10 years | ||
2009 Plan | RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares reserved for issuance | 2,857,000 | 2,929,000 | |
2009 Plan | Initial vesting | Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options vesting rate | 25.00% | ||
Stock based award vesting period | 1 year | ||
2009 Plan | Initial vesting | RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options vesting rate | 25.00% | ||
Stock based award vesting period | 1 year | ||
2009 Plan | Each month of service after vesting commencement date | Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Periodic vesting percentage | 2.08% | ||
2009 Plan | Each month of service after vesting commencement date | RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Periodic vesting percentage | 12.50% |
Employee Stock Plans - Employee
Employee Stock Plans - Employee Stock Purchase Plan (Details) - 2009 ESPP - shares | Apr. 23, 2015 | Jul. 03, 2016 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Additional shares of common stock reserved for issuance (in shares) | 1,000,000 | |
Shares reserved for issuance | 3,300,000 | |
Duration of offering period | 6 months | |
Percentage of employee's total compensation | 20.00% | |
Maximum number of shares per offering period (in shares) | 20,000 | |
Fair market value of common stock (as a percent) | 85.00% |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - USD ($) $ / shares in Units, shares in Thousands | 3 Months Ended | 6 Months Ended | ||||||
Jul. 03, 2016 | Jun. 28, 2015 | Jul. 03, 2016 | Jun. 28, 2015 | Mar. 31, 2016 | Mar. 21, 2016 | Jan. 03, 2016 | Nov. 30, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Stock based award vesting period | 4 years | |||||||
Weighted average estimated fair value, options (in dollars per share) | $ 0.90 | |||||||
Fair value of unvested stock options, net of unvested forfeitures | $ 2,000,000 | $ 2,700,000 | $ 2,000,000 | $ 2,700,000 | ||||
Closing stock price (in dollars per share) | $ 0.94 | $ 0.94 | $ 1 | $ 1 | $ 2.90 | |||
The total intrinsic value of options exercised | $ 0 | 81,000 | ||||||
Total cash received from employees as a result of employee stock option exercises | 0 | 114,000 | ||||||
Total stock-based compensation | $ 439,000 | $ 491,000 | $ 1,001,000 | $ 988,000 | ||||
Weighted average estimated fair value (in dollars per share) | $ 2.08 | $ 2.08 | $ 2.30 | |||||
Stock options | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Stock options maximum contractual term | 10 years | |||||||
Unrecognized stock-based compensation expense weighted average period | 1 year 11 months 8 days | |||||||
Total stock-based compensation | $ 100,000 | $ 214,000 | ||||||
RSU | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Total stock-based compensation | 235,000 | 539,000 | ||||||
Unrecognized compensation expense | 1,600,000 | 1,600,000 | ||||||
PRSUs | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Total stock-based compensation | 14,000 | $ 88,000 | ||||||
ESPP | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Unrecognized stock-based compensation expense weighted average period | 4 months 15 days | |||||||
Unrecognized compensation expense | $ 96,000 | $ 96,000 | ||||||
Weighted average estimated fair value (in dollars per share) | $ 0.31 | $ 0.48 | $ 0.31 | $ 0.48 | ||||
Shares available for issuance (in shares) | 917 | 917 | ||||||
Stock-based compensation expense | $ 90,000 | $ 160,000 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Allocation of Recognized Period Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 03, 2016 | Jun. 28, 2015 | Jul. 03, 2016 | Jun. 28, 2015 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total costs and expenses | $ 439 | $ 491 | $ 1,001 | $ 988 |
Cost of revenue | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total costs and expenses | 47 | 27 | 85 | 66 |
Research and development | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total costs and expenses | 175 | 212 | 466 | 403 |
Selling, general and administrative | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total costs and expenses | $ 217 | $ 252 | $ 450 | $ 519 |
Stock-Based Compensation - Sc43
Stock-Based Compensation - Schedule of Valuation Assumptions (Details) | 3 Months Ended | 6 Months Ended | ||
Jul. 03, 2016 | Jun. 28, 2015 | Jul. 03, 2016 | Jun. 28, 2015 | |
Stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected term (years) | 4 years 9 months 11 days | |||
Risk-free interest rate | 0.00% | 0.00% | 0.00% | 1.40% |
Expected volatility | 0.00% | 0.00% | 0.00% | 52.11% |
Expected dividend yield | 0.00% | 0.00% | 0.00% | 0.00% |
ESPP | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected term (years) | 6 months 2 days | 6 months 2 days | 6 months 2 days | 6 months 2 days |
Risk-free interest rate | 0.40% | 0.08% | 1.04% | 0.08% |
Expected volatility | 54.31% | 51.54% | 61.06% | 51.54% |
Expected dividend yield | 0.00% | 0.00% | 0.00% | 0.00% |
Stock-Based Compensation - Sc44
Stock-Based Compensation - Schedule of Stock Based Compensation Award Activity (Details) shares in Thousands | 6 Months Ended |
Jul. 03, 2016shares | |
Shares Available for Grant | |
Options forfeited or expired (in shares) | 373 |
RSUs and PRSUs granted (in shares) | (805) |
RSUs forfeited or expired (in shares) | 360 |
2009 Plan | |
Shares Available for Grant | |
Balance at end of period (in shares) | 9,800 |
2009 Plan | Restricted stock units (RSUs) | |
Shares Available for Grant | |
Balance at beginning of period (in shares) | 2,929 |
Options forfeited or expired (in shares) | 373 |
RSUs and PRSUs granted (in shares) | (612) |
RSUs forfeited or expired (in shares) | 159 |
Balance at end of period (in shares) | 2,857 |
2009 Plan | PRSUs | |
Shares Available for Grant | |
RSUs and PRSUs granted (in shares) | (193) |
RSUs forfeited or expired (in shares) | 201 |
Stock-Based Compensation - Sc45
Stock-Based Compensation - Schedule of Stock Options Activity (Details) $ / shares in Units, shares in Thousands, $ in Thousands | 6 Months Ended |
Jul. 03, 2016USD ($)$ / sharesshares | |
Number of Shares | |
Balance outstanding at beginning of period, (in shares) | shares | 5,266 |
Forfeited or expired, (in shares) | shares | (373) |
Balance outstanding at end of period, (in shares) | shares | 4,893 |
Exercisable, (in shares) | shares | 4,542 |
Vested and expected to vest, (in shares) | shares | 4,838 |
Weighted Average Exercise Price | |
Balance outstanding at beginning of period, (in dollars per share) | $ / shares | $ 2.64 |
Forfeited or expired, (in dollars per share) | $ / shares | 2.74 |
Balance outstanding at end of period, (in dollars per share) | $ / shares | 2.63 |
Exercisable, (in dollars per share) | $ / shares | 2.62 |
Vested and expected to vest, (in dollars per share) | $ / shares | $ 2.63 |
Weighted Average Remaining Term | |
Balance outstanding | 3 years 9 months 25 days |
Exercisable | 3 years 6 months |
Vested and expected to vest | 3 years 9 months 7 days |
Aggregate Intrinsic Value | |
Balance outstanding | $ | $ 17 |
Exercisable | $ | 17 |
Vested and expected to vest | $ | $ 17 |
Stock-Based Compensation - Sc46
Stock-Based Compensation - Schedule of Restricted Stock and Restricted Stock Units Activity (Details) shares in Thousands | 6 Months Ended |
Jul. 03, 2016$ / sharesshares | |
Number of Shares | |
Nonvested at beginning of period, (in shares) | shares | 1,435 |
Granted, (in shares) | shares | 805 |
Vested, (in shares) | shares | (442) |
Forfeited, (in shares) | shares | (360) |
Nonvested at end of period, (in shares) | shares | 1,438 |
Weighted Average Grant Date Fair Value | |
Nonvested at beginning of period, (in dollars per share) | $ / shares | $ 2.30 |
Granted, (in dollars per share) | $ / shares | 1.11 |
Vested, (in dollars per share) | $ / shares | 1.04 |
Forfeited, (in dollars per shares) | $ / shares | 0 |
Nonvested at end of period, (in dollars per share) | $ / shares | $ 2.08 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jul. 03, 2016 | Jun. 28, 2015 | Jul. 03, 2016 | Jun. 28, 2015 | Jan. 03, 2016 | |
Income Tax Disclosure [Abstract] | |||||
Net income tax expense | $ 27 | $ 21 | $ 91 | $ 61 | |
Unrecognized tax benefits | 36 | 36 | $ 36,000 | ||
Penalties and interest accrued | 2 | ||||
Penalties and interest accrued related to uncertain tax positions | 19 | 19 | |||
Unrecognized tax benefits related to tax positions | $ 20 | $ 20 |
Information Concerning Produc48
Information Concerning Product Lines, Geographic Information and Revenue Concentration - Schedule of Revenue by Product Line (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 03, 2016 | Jun. 28, 2015 | Jul. 03, 2016 | Jun. 28, 2015 | |
Revenue from External Customer [Line Items] | ||||
Total revenue | $ 2,717 | $ 4,973 | $ 5,667 | $ 11,132 |
New products | ||||
Revenue from External Customer [Line Items] | ||||
Total revenue | 1,197 | 2,953 | 2,689 | 7,097 |
Mature products | ||||
Revenue from External Customer [Line Items] | ||||
Total revenue | $ 1,520 | $ 2,020 | $ 2,978 | $ 4,035 |
Information Concerning Produc49
Information Concerning Product Lines, Geographic Information and Revenue Concentration - Schedule of Revenue by Shipment Destination (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 03, 2016 | Jun. 28, 2015 | Jul. 03, 2016 | Jun. 28, 2015 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total revenue | $ 2,717 | $ 4,973 | $ 5,667 | $ 11,132 |
Asia Pacific (1) | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total revenue | 1,779 | 3,482 | 3,506 | 7,290 |
North America (2) | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total revenue | 638 | 1,087 | 1,457 | 2,929 |
Europe | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total revenue | 300 | 404 | 704 | 913 |
South Korea | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total revenue | $ 875 | $ 2,100 | $ 2,000 | $ 4,500 |
Percentage of total revenue | 32.00% | 42.00% | 35.00% | 40.00% |
United States | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total revenue | $ 604 | $ 1,000 | $ 1,400 | $ 2,800 |
Percentage of total revenue | 22.00% | 20.00% | 25.00% | 25.00% |
Information Concerning Produc50
Information Concerning Product Lines, Geographic Information and Revenue Concentration - Schedule of Customer and Distributor Concentration (Details) | 3 Months Ended | 6 Months Ended | |||
Jul. 03, 2016 | Jun. 28, 2015 | Jul. 03, 2016 | Jun. 28, 2015 | Jan. 03, 2016 | |
Distributor A | |||||
Revenue, Major Customer [Line Items] | |||||
Percentage of revenue from major distributors and customers | 31.00% | 24.00% | 30.00% | 27.00% | |
Percentage of accounts receivable from major customer | 44.00% | 44.00% | 24.00% | ||
Distributor “B” | |||||
Revenue, Major Customer [Line Items] | |||||
Percentage of accounts receivable from major customer | 11.00% | ||||
Customer B | |||||
Revenue, Major Customer [Line Items] | |||||
Percentage of revenue from major distributors and customers | 17.00% | 14.00% | 18.00% | 15.00% | |
Distributor G | |||||
Revenue, Major Customer [Line Items] | |||||
Percentage of accounts receivable from major customer | 13.00% | 13.00% | 11.00% | ||
Customer G | |||||
Revenue, Major Customer [Line Items] | |||||
Percentage of revenue from major distributors and customers | 31.00% | 41.00% | 33.00% | 40.00% | |
Percentage of accounts receivable from major customer | 20.00% | 20.00% | 20.00% | ||
Customer H | |||||
Revenue, Major Customer [Line Items] | |||||
Percentage of accounts receivable from major customer | 11.00% |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jul. 03, 2016 | Jun. 28, 2015 | Jul. 03, 2016 | Jun. 28, 2015 | Jan. 03, 2016 | |
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |||||
Total rent expense, net of sublease income | $ 206 | $ 238 | $ 404 | $ 477 | |
Wafer and finished goods inventory | |||||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |||||
Outstanding commitment for purchases | 357 | 357 | $ 1,400 | ||
Other goods and services | |||||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |||||
Total outstanding purchase obligations | $ 1,200 | $ 1,200 |
Commitments and Contingencies52
Commitments and Contingencies - Schedule of Future Minimum Lease Payments for Operating Leases (Details) $ in Thousands | 6 Months Ended |
Jul. 03, 2016USD ($) | |
Fiscal Years | |
2016 (Remaining 6 months) | $ 424 |
2,017 | 793 |
2,018 | 798 |
2,019 | 164 |
2,020 | 169 |
2,021 | 84 |
Total | 2,432 |
Royalty claims | |
Loss Contingencies [Line Items] | |
Litigation settlement, amount | $ 40 |
Subsequent Event (Details)
Subsequent Event (Details) - Employee severance - Subsequent event $ in Thousands | Jul. 16, 2016USD ($)employee |
Subsequent Event [Line Items] | |
Restructuring and related cast, number of positions eliminated | employee | 8 |
Severance Costs | $ | $ 170 |