Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Mar. 09, 2015 | Jun. 30, 2014 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | MRV COMMUNICATIONS INC | ||
Entity Central Index Key | 887969 | ||
Current Fiscal Year End Date | -19 | ||
Entity Filer Category | Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | FALSE | ||
Entity Common Stock, Shares Outstanding | 7,089,264 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $111,708,379 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenue: | |||
Product revenue | $124,477 | $118,911 | $106,447 |
Service revenue | 47,579 | 47,290 | 45,214 |
Total revenue | 172,056 | 166,201 | 151,661 |
Cost of sales | 116,278 | 108,208 | 96,509 |
Gross profit | 55,778 | 57,993 | 55,152 |
Operating expenses: | |||
Product development and engineering | 20,833 | 19,381 | 15,344 |
Selling, general and administrative | 42,695 | 42,993 | 48,599 |
Impairment of goodwill | 0 | 0 | 1,056 |
Total operating expenses | 63,528 | 62,374 | 64,999 |
Operating loss | -7,750 | -4,381 | -9,847 |
Interest expense | -329 | -526 | -601 |
Gain from settlement of deferred consideration obligation | 0 | 0 | 2,314 |
Other income (loss), net | 227 | -407 | -54 |
Loss from continuing operations before provision for income taxes | -7,852 | -5,314 | -8,188 |
Provision (benefit) for income taxes | 4,303 | 1,508 | -1,013 |
Loss from continuing operations | -12,155 | -6,822 | -7,175 |
Income from discontinued operations, net of income taxes of $4,588 | 0 | 0 | 12,839 |
Net income (loss) | ($12,155) | ($6,822) | $5,664 |
Net income (loss) per share — basic and diluted | |||
From continuing operations (dollars per share) | ($1.66) | ($0.91) | ($0.92) |
From discontinued operations (dollars per share) | $0 | $0 | $1.64 |
Net income (loss) per share — basic and diluted (dollars per share) | ($1.66) | ($0.91) | $0.72 |
Weighted average number of shares: | |||
Basic (shares) | 7,344 | 7,484 | 7,813 |
Diluted (shares) | 7,344 | 7,484 | 7,817 |
Consolidated_Statements_of_Ope1
Consolidated Statements of Operations (Parenthetical) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2012 |
Income Statement [Abstract] | |
Income tax netted from Income from Discontinued Operations | $4,588 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | ($12,155) | ($6,822) | $5,664 |
Other comprehensive income (loss), net of tax | |||
Foreign currency translation gain (loss) | -3,265 | 882 | 1,152 |
Foreign currency translation effect realized upon divestiture of subsidiary | 0 | 0 | -16,106 |
Other comprehensive income (loss): | -3,265 | 882 | -14,954 |
Total comprehensive loss | ($15,420) | ($5,940) | ($9,290) |
Balance_Sheets
Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | |
In Thousands, unless otherwise specified | |||
Current assets: | |||
Cash and cash equivalents | $22,422 | $27,591 | [1] |
Restricted time deposits | 235 | 249 | |
Accounts receivable, net | 43,513 | 49,990 | |
Other receivables | 11,012 | 8,220 | |
Inventories | 21,683 | 22,981 | |
Income taxes receivable | 558 | 1,256 | |
Deferred income taxes | 535 | 1,219 | |
Other current assets | 5,454 | 5,664 | |
Total current assets | 105,412 | 117,170 | |
Property and equipment, net | 4,890 | 5,555 | |
Deferred income taxes, net of current portion | 2,105 | 3,694 | |
Intangible assets, net | 1,364 | 873 | |
Other assets | 801 | 655 | |
Total assets | 114,572 | 127,947 | |
Current liabilities: | |||
Short-term debt | 5,402 | 4,320 | |
Deferred consideration payable | 233 | 233 | |
Accounts payable | 24,327 | 23,991 | |
Accrued liabilities | 14,545 | 19,463 | |
Deferred revenue | 13,527 | 10,557 | |
Other current liabilities | 297 | 357 | |
Total current liabilities | 58,331 | 58,921 | |
Other long-term liabilities | 5,271 | 5,236 | |
Commitments and contingencies (Note 10) | |||
Stockholders' equity: | |||
Preferred Stock, $0.01 par value: Authorized — 1,000 shares; no shares issued or outstanding | 0 | 0 | |
Common Stock, $0.0017 par value: Authorized---16,000 shares; Issued---8,242 shares in 2014 and 8,143 shares in 2013; Outstanding — 7,386 shares in 2014 and 7,286 shares in 2013 | 270 | 270 | |
Additional paid-in capital | 1,284,483 | 1,281,883 | |
Accumulated deficit | -1,220,492 | -1,208,337 | |
Treasury stock — 856 shares in 2014 and 2013 | -10,412 | -10,412 | |
Accumulated other comprehensive (loss) income | -2,879 | 386 | |
Total stockholders' equity | 50,970 | 63,790 | |
Total liabilities and stockholders' equity | $114,572 | $127,947 | |
[1] | Cash and cash equivalents at the beginning of the period presented for December 31, 2012 include $25,126 from discontinued operations. |
Balance_Sheets_Parenthetical
Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 16,000,000 | 16,000,000 |
Common stock, shares issued | 8,242,000 | 8,143,000 |
Common stock, shares outstanding | 7,386,000 | 7,286,000 |
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Treasury stock, shares | 856,000 | 856,000 |
Statement_of_Stockholders_Equi
Statement of Stockholders' Equity (USD $) | Total | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Treasury Stock | Accumulated Other Comprehensive Income (Loss) |
In Thousands, except Share data, unless otherwise specified | ||||||
Total stockholders' equity, beginning balance at Dec. 31, 2011 | $142,213 | $270 | $1,337,935 | ($1,207,179) | ($3,271) | $14,458 |
Common stock, shares outstanding at Dec. 31, 2011 | 7,888,000 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Purchase of treasury shares, shares | -332,000 | |||||
Purchase of treasury shares, value | -3,257 | -3,257 | ||||
Share-based compensation expense, shares | 38,000 | |||||
Share-based compensation expense, value | 1,192 | 1,192 | ||||
Dividend to common stockholders | -57,957 | -57,957 | ||||
Net loss | 5,664 | 5,664 | ||||
Other comprehensive income (loss) | -14,954 | -14,954 | ||||
Total stockholders' equity, ending balance at Dec. 31, 2012 | 72,901 | 270 | 1,281,170 | -1,201,515 | -6,528 | -496 |
Common stock, shares outstanding at Dec. 31, 2012 | 7,594,000 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Purchase of treasury shares, shares | -389,000 | |||||
Purchase of treasury shares, value | -3,884 | -3,884 | ||||
Share-based compensation expense, shares | 81,000 | |||||
Share-based compensation expense, value | 713 | 713 | ||||
Net loss | -6,822 | -6,822 | ||||
Other comprehensive income (loss) | 882 | 882 | ||||
Total stockholders' equity, ending balance at Dec. 31, 2013 | 63,790 | 270 | 1,281,883 | -1,208,337 | -10,412 | 386 |
Common stock, shares outstanding at Dec. 31, 2013 | 7,286,000 | 7,286,000 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Exercise of stock options and warrants, shares | 100,000 | |||||
Exercise of stock options and warrants, value | 1,641 | 1,641 | ||||
Share-based compensation expense, value | 959 | 959 | ||||
Net loss | -12,155 | -12,155 | ||||
Other comprehensive income (loss) | -3,265 | -3,265 | ||||
Total stockholders' equity, ending balance at Dec. 31, 2014 | $50,970 | $270 | $1,284,483 | ($1,220,492) | ($10,412) | ($2,879) |
Common stock, shares outstanding at Dec. 31, 2014 | 7,386,000 | 7,386,000 |
Statements_of_Cash_Flows
Statements of Cash Flows (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Cash flows from operating activities: | ||||||
Net income (loss) | ($12,155) | ($6,822) | $5,664 | |||
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||||||
Depreciation and amortization | 2,256 | 1,833 | 2,016 | |||
Share-based compensation expense | 959 | 713 | 1,191 | |||
Provision for doubtful accounts | 95 | 580 | 116 | |||
Deferred income taxes | 1,922 | -57 | 653 | |||
Gain on sale of deferred consideration litigation | 0 | 0 | -2,314 | |||
Loss on disposition of property and equipment | 11 | 26 | 28 | |||
Loss on sale of subsidiary | 0 | 0 | -23,272 | |||
Impairment of goodwill | 0 | 0 | 3,007 | |||
Changes in operating assets and liabilities: | ||||||
Accounts receivable | 3,162 | -17,417 | 11,439 | |||
Inventories | 82 | -43 | -689 | |||
Other assets | -4,177 | 9,067 | -5,927 | |||
Accounts payable | 2,747 | 2,993 | -5,104 | |||
Accrued liabilities | -2,333 | 2,478 | -1,002 | |||
Income tax payable | 0 | -41 | -2,168 | |||
Deferred revenue | 3,459 | 3,146 | 155 | |||
Other current liabilities | -164 | -444 | 281 | |||
Net cash used in operating activities | -4,136 | -3,988 | -15,926 | |||
Cash flows from investing activities: | ||||||
Purchases of property and equipment | -1,491 | -3,662 | -2,909 | |||
Purchases of intangibles | -650 | -473 | -400 | |||
Change in restricted time deposits | 13 | -9 | 1,371 | |||
Proceeds from sale of property and equipment | 0 | 0 | 192 | |||
Proceeds from sale of subsidiaries, net of cash acquired | 0 | 0 | 38,233 | |||
Net cash (used in) provided by investing activities | -2,128 | -4,144 | 36,487 | |||
Cash flows from financing activities: | ||||||
Borrowings on short-term debt | 21,638 | 11,219 | 24,004 | |||
Payments on short-term debt | -19,843 | -12,347 | -27,958 | |||
Payments for shares repurchased for tax withholdings on vesting of restricted stock awards | 72 | 0 | 0 | |||
Payments for shares repurchased for tax withholdings on vesting of restricted stock awards | -87 | 0 | 0 | |||
Purchase of treasury shares | 0 | -3,884 | -3,257 | |||
Borrowing on long-term obligations | 0 | 0 | 459 | |||
Dividend payment | 0 | 0 | -57,957 | |||
Payments on long-term obligations | 0 | 0 | -230 | |||
Net cash provided by (used in) financing activities | 1,780 | -5,012 | -64,939 | |||
Effect of exchange rate changes on cash and cash equivalents | -685 | 126 | 1,271 | |||
Net decrease in cash and cash equivalents | -5,169 | -13,018 | -43,107 | |||
Cash and cash equivalents, beginning of year | 27,591 | [1] | 40,609 | [1] | 83,716 | [1] |
Cash and cash equivalents, end of year | 22,422 | 27,591 | [1] | 40,609 | [1] | |
Supplemental disclosure of cash flow information: | ||||||
Cash paid during year for interest | 283 | 291 | 416 | |||
Cash paid during year for income taxes — continuing operations | 1,791 | 1,800 | 1,540 | |||
Cash paid during year for income taxes — discontinued operations | 0 | 0 | 295 | |||
Cash paid during year for income taxes — Total | 1,791 | 1,800 | 1,835 | |||
Cash and cash equivalents from discontinued operations | $25,126 | |||||
[1] | Cash and cash equivalents at the beginning of the period presented for December 31, 2012 include $25,126 from discontinued operations. |
Description_of_Business_and_Ba
Description of Business and Basis of Presentation | 12 Months Ended |
Dec. 31, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business and Basis of Presentation | Description of Business and Basis of Presentation |
Description of Business | |
MRV Communications, Inc. ("MRV" or the "Company"), a Delaware corporation, is a global supplier of communications solutions to telecommunications service providers, enterprises and governments throughout the world. MRV's products enable customers to provide high-bandwidth data and video services and mobile communications services more efficiently and cost effectively. MRV markets and sells its products worldwide, through a variety of channels, which include a dedicated direct sales force, manufacturers' representatives, value-added-resellers, distributors and systems integrators. MRV conducts its business along two principal segments: the Network Equipment segment and the Network Integration segment. MRV's Network Equipment segment designs, manufactures, sells, and services equipment used by commercial customers, governments, and telecommunications service providers. Products include switches, optical transport platforms, physical layer products and out-of-band management products, and specialized networking products. The Network Integration segment which primarily operates in Italy, provides network system design, integration and distribution services that include products manufactured by third-party vendors. | |
Basis of Presentation | |
MRV's fiscal year is based on the calendar year ending on December 31. The accompanying consolidated financial statements include the accounts of MRV and its wholly-owned subsidiaries. All significant intercompany transactions and accounts have been eliminated. MRV consolidates the financial results of less than majority-owned subsidiaries when it has effective control, voting control, or has provided the entity's working capital. When investment by others in these enterprises reduces the Company's voting control below 50%, MRV discontinues consolidation and uses the cost or equity method of accounting for these investments, unless otherwise required. | |
On March 29, 2012, MRV sold all of the issued and outstanding capital stock of Creative Electronic Systems SA ("CES"), which was part of our Network Equipment segment. On October 12, 2012, we sold all of the issued and outstanding capital stock of Alcadon-MRV AB ("Alcadon"), which was part of our Network Integration segment. On October 16, 2012, we sold all of the issued and outstanding capital stock of Pedrena Enterprises B.V. ("Pedrena"), which was part of our Network Integration segment. We have reclassified the historical financial results of CES, Alcadon and Pedrena to discontinued operations for the year ended December 31, 2012. Cash flows from discontinued operations are presented combined with the cash flows from continuing operations in the accompanying Consolidated Statement of Cash Flows for the year ended December 31, 2012. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | |||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||
Accounting Policies [Abstract] | ||||||||||||||||||
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies | |||||||||||||||||
Foreign Currency | ||||||||||||||||||
Transactions originally denominated in other currencies are remeasured into functional currencies. Increases or decreases in the expected amount of cash flows upon settlement of the transaction caused by changes in exchange rates are recorded as foreign currency transaction gains and losses and are included in other income, net. | ||||||||||||||||||
Except for our operations in Israel, the Company's foreign operations use the local currency as the functional currency, and assets and liabilities are translated from the local currencies into U.S. dollars, the reporting currency of the Company, at the exchange rate prevailing at the balance sheet date. Revenues, expenses and cash flows are translated at weighted average exchange rates for the period to approximate translation at the exchange rate prevailing at the dates those elements are recognized in the financial statements. Translation adjustments resulting from the process of translating the local currency financial statements into U.S. dollars are included in determining comprehensive income or loss. The functional currency of our Israeli subsidiary is the U.S. dollar, as the U.S. dollar is the currency used in the primary operations in which the subsidiary operates. | ||||||||||||||||||
Revenue Recognition | ||||||||||||||||||
MRV's Network Equipment segment's major revenue-generating products consist of switches and routers, console management, physical layer products, and fiber optic components. We recognize product revenue, net of sales discounts, returns and allowances, when persuasive evidence of an arrangement exists, delivery has occurred and all significant contractual obligations have been satisfied, the fee is fixed or determinable and collection is considered reasonably assured. Products are generally shipped "FOB shipping point," with no right of return and revenue is recognized upon shipment. If revenue is to be recognized upon delivery, such delivery date is tracked through information provided by the third party shipping company we use to deliver the product to the customer. Network Integration resells third party products. We recognize revenue on these sales on a gross basis, as a principal, because we are the primary obligor in the arrangement, we are exposed to inventory and credit risk, we negotiate the selling prices, and we sell the products as part of a solution in which we provide services. Sales of services and system support are deferred and recognized ratably over the contract period. Sales to end customers with contingencies, such as rights of return, rotation rights, conditional acceptance provisions and price protection, are infrequent and insignificant and are deferred until the contingencies have been satisfied or the contingent period has lapsed. For sales to distributors, we generally recognize revenue when product is sold to the distributor rather than when the product is sold by the distributor to the end user. In certain circumstances, distributors have limited rights of return, including stock rotation rights, and/or are entitled to price protection, where a rebate credit may be provided to the customer if we lower our price on products held in the distributor's inventory. We estimate and establish allowances for expected future product returns and credits. We record a reduction in revenue for estimated future product returns and future credits to be issued to the customer in the period in which revenue is recognized, and for future credits to be issued in relation to price protection at the time we make changes to our distributor price book. We monitor product returns and potential price adjustments on an ongoing basis and estimate future returns and credits based on historical sales returns, analysis of credit memo data, and other factors known at the time of revenue recognition. | ||||||||||||||||||
MRV collects sales taxes from its customers to remit to the applicable taxing authorities. These amounts are not included in revenues, but are included on the balance sheet in accrued liabilities. | ||||||||||||||||||
Amounts billed to customers in a sale transaction related to shipping and handling represent revenues earned for goods provided and are classified as revenue. Shipping and handling costs are classified as cost of sales. | ||||||||||||||||||
MRV generally warrants its products against defects in materials and workmanship for 90 days to three year periods. The estimated cost of warranty obligations and sales returns and other allowances are recognized at the time of revenue recognition based on contract terms and prior claims experience. | ||||||||||||||||||
Accounting for Multiple-Element Arrangements entered into prior to January 1, 2011. Arrangements with customers may include multiple deliverables involving combinations of equipment, services and software. In accordance with ASC 605-25 Multiple-Element Arrangements, the entire fee from the arrangement is allocated to each respective element based on its relative fair value and recognized when revenue recognition criteria for each element is met. Fair value for each element is established based on the sales price charged when the same element is sold separately. If multiple element arrangements include software or software-related elements, we apply the provisions of ASC 985-605 Software to the software and software-related elements, or to the entire arrangement if the software is essential to the functionality of the non-software elements. | ||||||||||||||||||
Accounting for Multiple-Element Arrangements entered into or materially altered after January 1, 2011. We allocate arrangement consideration at the inception of the arrangement to all deliverables using the relative selling price method. The selling price we use for each deliverable is based on (a) vendor-specific objective evidence if available; (b) third-party evidence if vendor-specific objective evidence is not available; or (c) best estimate of selling price if neither vendor-specific objective evidence nor third-party evidence is available. We allocate discounts in the arrangement proportionally on the basis of the selling price of each deliverable. | ||||||||||||||||||
Cash and Cash Equivalents | ||||||||||||||||||
MRV treats highly liquid investments with an original maturity of 90 days or less as cash equivalents. Investments with maturities of less than one year are considered short-term and are included on the balance sheet in restricted time deposits. MRV maintains cash balances and investments in qualified financial institutions, and at various times such amounts are in excess of federal insured limits. As of December 31, 2014, the Company's U.S. entities held $13.3 million in various U.S. deposit accounts and a money market account. The remaining $9.1 million was held by the company's foreign subsidiaries in foreign bank deposit accounts. | ||||||||||||||||||
Restricted Time Deposits | ||||||||||||||||||
Restricted time deposits represent investments that are restricted as to withdrawal or use and are primarily in foreign subsidiaries. Restricted time deposits generally secure standby letters of credit, bank lines of credit, or bank loans. When investments in restricted time deposits are directly related to an underlying bank loan and the restricted funds will be used to repay the loans, the investment and the subsequent release of the restricted time deposit are treated as investing activities in the Company's Consolidated Statements of Cash Flows. The other investments in and releases of restricted time deposits are included in investing activities because the funds are invested in certificates of deposit. | ||||||||||||||||||
Concentration of Credit Risk, Accounts Receivable and Allowance for Doubtful Accounts | ||||||||||||||||||
Financial instruments that potentially subject the Company to concentrations of credit risk primarily consist of cash and cash equivalents placed with high credit quality institutions and accounts receivable due from customers. Management evaluates the collectability of accounts receivable based on a combination of factors. If management becomes aware of a customer's inability to meet its financial obligations after a sale has occurred, the Company records an allowance to reduce the net receivable to the amount that it reasonably believes to be collectable from the customer. If the financial conditions of MRV's customers were to deteriorate or if economic conditions worsen, additional allowances may be required in the future. Accounts receivable are charged off at the point they are considered uncollectible. | ||||||||||||||||||
The following table summarizes the changes in the allowance for doubtful accounts (in thousands): | ||||||||||||||||||
Year ended: | Balance at | Charged to | Deductions | Effect of | Balance at | |||||||||||||
beginning | expense | foreign | end of | |||||||||||||||
of period | currency | period | ||||||||||||||||
exchange | ||||||||||||||||||
rates | ||||||||||||||||||
December 31, 2012 | $ | 1,662 | 116 | (72 | ) | 26 | $ | 1,732 | ||||||||||
December 31, 2013 | $ | 1,732 | 580 | (167 | ) | 37 | $ | 2,182 | ||||||||||
December 31, 2014 | $ | 2,182 | 95 | (393 | ) | (126 | ) | $ | 1,758 | |||||||||
As of December 31, 2014 and 2013, Telecom Italia S.p.A., a Network Integration segment customer, accounted for 29% and 27% of gross accounts receivables, respectively. As of December 31, 2014 and 2013, Fastweb S.p.A., another Network Integration segment customer, accounted for 5% and 22% of gross accounts receivables, respectively. | ||||||||||||||||||
Inventories | ||||||||||||||||||
Inventories are stated at the lower of cost or market and consist of material, labor and overhead. Cost is computed using standard cost, which approximates actual cost, on a first-in, first-out basis. If management estimates that the net realizable value is less than the cost of the inventory, an adjustment to the cost basis is recorded through a charge to cost of sales to reduce the carrying value to net realizable value. At each balance sheet date, management evaluates the ending inventories for excess quantities or obsolescence. This evaluation includes analysis of sales levels and projections of future demand. Based on this evaluation, management writes down the inventory to net realizable value if necessary. At the time of recording the write-down, a new, lower cost basis for that inventory is established, and subsequent changes in facts and circumstances do not result in the restoration of, or increase in, that newly established cost basis. | ||||||||||||||||||
Inventories, net of reserves, consisted of the following (in thousands): | ||||||||||||||||||
December 31: | 2014 | 2013 | ||||||||||||||||
Raw materials | $ | 3,663 | $ | 5,723 | ||||||||||||||
Work-in process | 641 | 1,121 | ||||||||||||||||
Finished goods | 17,379 | 16,137 | ||||||||||||||||
Total inventories | $ | 21,683 | $ | 22,981 | ||||||||||||||
Property and Equipment | ||||||||||||||||||
Property and equipment are stated at cost. Maintenance and repairs are charged to expense as incurred and the costs of additions and betterments that increase the useful lives of the assets are capitalized. When property or equipment are disposed of, the cost and related accumulated depreciation and amortization are removed from the accounts and any gain or loss is included in other income, net, in the accompanying Consolidated Statements of Operations. | ||||||||||||||||||
Property and equipment, at cost, consisted of the following (in thousands): | ||||||||||||||||||
December 31: | 2014 | 2013 | ||||||||||||||||
Machinery and equipment | $ | 7,603 | $ | 7,448 | ||||||||||||||
Computer hardware and software | 6,650 | 6,653 | ||||||||||||||||
Leasehold improvements | 2,651 | 2,354 | ||||||||||||||||
Furniture and fixtures | 1,462 | 1,411 | ||||||||||||||||
Construction in progress | 181 | 413 | ||||||||||||||||
Total property and equipment, at cost | 18,547 | 18,279 | ||||||||||||||||
Less — accumulated depreciation and amortization | (13,657 | ) | (12,724 | ) | ||||||||||||||
Total property and equipment | $ | 4,890 | $ | 5,555 | ||||||||||||||
Depreciation is computed using the straight line method over the estimated useful lives of the related assets, as follows: | ||||||||||||||||||
Life (years) | ||||||||||||||||||
Asset category | From | To | ||||||||||||||||
Machinery and equipment | 2 | 5 | ||||||||||||||||
Computer hardware and software | 3 | 7 | ||||||||||||||||
Leasehold improvements | 1 | 10 | ||||||||||||||||
Furniture and fixtures | 3 | 15 | ||||||||||||||||
Depreciation expense for the years ended December 31, 2014, 2013 and 2012 was $2.1 million, $1.8 million and $1.4 million, respectively. | ||||||||||||||||||
Intangible Assets | ||||||||||||||||||
Intangible assets with indefinite lives are not amortized, but instead are measured for impairment at least annually, or when events indicate that impairment exists. MRV's annual impairment review date is October 1. Reviews for impairment are performed at each of MRV's reporting units. Intangible assets that are determined to have definite lives are amortized over their useful lives. The Company recorded an impairment charge of $0.1 million during the year ended December 31, 2014. The Company did not record any impairment charges for the years ended December 31, 2013 and 2012. See Note 4 "Goodwill and Other Intangible Assets" for further information. | ||||||||||||||||||
Impairment of Long-Lived Assets | ||||||||||||||||||
MRV evaluates its long-term tangible assets, such as property and equipment and other long-term assets, for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may be impaired. The Company takes into consideration events or changes such as product discontinuance, plant closures, product dispositions and history of operating losses or other changes in circumstances to indicate that the carrying amount may not be recoverable. The carrying value of an asset is considered impaired when the anticipated undiscounted cash flow from such asset is less than its carrying value. In that event, a loss is recognized based on the amount by which the carrying value exceeds the estimated fair value. Fair value is determined using the anticipated cash flows discounted at a rate based on our weighted average cost of capital, which represents the blended after-tax costs of debt and equity. There was no impairment loss on tangible assets during the three years ended December 31, 2014. | ||||||||||||||||||
Fair Value of Financial Instruments | ||||||||||||||||||
MRV's financial instruments including cash and cash equivalents, restricted time deposits, accounts receivable, other receivables, accounts payable, accrued liabilities and short-term debt obligations are carried at cost, which approximates their fair value. The fair values of accounts receivable and accounts payable approximate their carrying amounts due to their short-term nature. Short-term debt obligations have variable interest rates, which reset frequently; therefore, their carrying values do not materially differ from their calculated aggregate fair value. | ||||||||||||||||||
The Company follows a framework for measuring fair value, using a three-level hierarchy that prioritizes the use of observable inputs. The fair value hierarchy is divided into three levels based on the source of inputs as follows: Level 1 - Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access; Level 2 - Valuations for which all significant inputs are observable, either directly or indirectly, other than level 1 inputs for similar instruments; Level 3 - Valuations based on inputs that are unobservable and significant to the overall fair value measurement. | ||||||||||||||||||
All of MRV's financial assets and a majority of its financial liabilities that are measured at fair value are measured using the unadjusted quoted prices in active markets for identical assets or liabilities that are accessible at the measurement date. Under this standard, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the “exit price”) in an orderly transaction between market participants at the measurement date. Management has not elected the fair value for non-financial assets and liabilities. | ||||||||||||||||||
As of December 31, 2014 and 2013, the Company had cash equivalents consisting of money market funds of $10.6 million and $14.0 million, respectively that were classified as Level 1 investments and were quoted at market price. Cash equivalents are included in the consolidated balance sheets as follows (in thousands): | ||||||||||||||||||
Cost | Fair Value | |||||||||||||||||
31-Dec-14 | $ | 10,606 | $ | 10,606 | ||||||||||||||
31-Dec-13 | $ | 14,001 | $ | 14,001 | ||||||||||||||
During 2014, the Company updated the estimated fair value of 250,000 warrants originally recorded as a liability that was awarded to plaintiffs' counsel on February 18, 2014 in a litigation matter, see Note 10, Commitments and Contingencies. In calculating the fair value, the Company used Black Scholes option pricing model including a volatility of 41% based on the Company's historical quoted prices and peer company data, the risk free interest rate of 1.5% and the 5 years expected term of the warrants. Volatility based on both the Company's historical quoted prices and peer company data was used as the Company's stock is thinly traded. The resulting fair value was $6.59 per warrant. In relation to this revaluation, the Company recorded expense of $0.4 million for the three months ended March 31, 2014. No additional expense was recorded in any periods subsequent to the three months ended March 31, 2014. Upon issuance and revaluation, the warrants, met the requirements necessary for equity classification and were removed from liabilities and recorded as a component of additional paid in capital. | ||||||||||||||||||
During the three months ended December 31, 2014, one of plaintiffs' counsel exercised 152,500 warrants under the 'cashless' exercise provisions contained within the warrant agreement, leaving 97,500 warrants still available for future exercise. | ||||||||||||||||||
Other Current Assets | ||||||||||||||||||
Other current assets include prepaid expenses that will be consumed within a twelve month period. Prepaid expenses included in other assets were $4.7 million and $4.2 million as of December 31, 2014 and 2013, respectively. | ||||||||||||||||||
Liability for Severance Pay | ||||||||||||||||||
Under the laws of certain foreign jurisdictions, MRV is obligated to make severance payments to employees in those foreign jurisdictions on the basis of factors such as each employee's current salary and length of employment. The liability for severance pay is calculated as the amount that the Company would be required to pay if every employee were to separate as of the end of the period, and is recorded as part of other long-term liabilities. | ||||||||||||||||||
Cost of Sales | ||||||||||||||||||
Cost of sales includes material, depreciation on fixed assets used in the manufacturing process, shipping costs, direct labor and overhead. The portion of cost of sales related to product revenue was $82.6 million, $74.1 million, and $62.9 million for the years ended December 31, 2014, 2013, and 2012 respectively. The portion of cost of sales related to service revenue was $33.7 million, $34.1 million, and $33.6 million for the years ended December 31, 2014, 2013, and 2012 respectively. | ||||||||||||||||||
Product Development and Engineering | ||||||||||||||||||
Product development and engineering costs are charged to expense as incurred. | ||||||||||||||||||
Software Development Costs | ||||||||||||||||||
Development costs related to software products for sale or to be included in our products are expensed as incurred until the technological feasibility of the product has been established. Technological feasibility occurs when a working model is completed. After technological feasibility is established, additional costs are capitalized. We believe that our process for internally developed software is essentially completed concurrent with the establishment of technological feasibility, and, accordingly, no software development costs for internally developed software have been capitalized to date. | ||||||||||||||||||
Internal Use Software Development Costs | ||||||||||||||||||
Any software that we acquire, internally develop, or modify solely to meet our internal needs, and for which we have no substantive plan to market the software externally, is capitalized during the development phase. Costs incurred during the research phase are expensed as incurred. During the year ended December 31, 2013, we implemented a new enterprise-wide software for which we capitalized the development costs. The costs of which are included in property and equipment on the Consolidated Balance Sheets. There were no such costs capitalized during the year ended December 31, 2014. | ||||||||||||||||||
Sales and Marketing | ||||||||||||||||||
Sales and marketing costs are charged to expense as incurred. For the years ended December 31, 2014, 2013 and 2012, advertising and trade show costs were $1.2 million, $1.1 million and $1.2 million, respectively. | ||||||||||||||||||
Income Taxes | ||||||||||||||||||
We account for income taxes using the liability method which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined based on the differences between the financial statements and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. | ||||||||||||||||||
We record net deferred tax assets to the extent we believe these assets will more likely than not be realized. In making such determination, we consider all available positive and negative evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income, tax planning strategies and recent financial operations. In the event we were to determine that we would be able to realize our deferred income tax assets in the future in excess of their net recorded amount, we would make an adjustment to the valuation allowance which would reduce the provision for income taxes. | ||||||||||||||||||
We recognize interest and penalties related to unrecognized tax benefits within the income tax expense line in the accompanying consolidated statement of operations if the sustainability of the uncertain tax position does not meet the "more likely than not" recognition threshold based on its technical merits. Accrued interest and penalties are included within the related tax liability line in the consolidated balance sheet. | ||||||||||||||||||
Net Income (Loss) Per Share | ||||||||||||||||||
Basic net income (loss) per share is computed using the weighted average number of shares of common stock ("Common Stock") outstanding, including restricted shares which, although they are legally outstanding and have voting rights, are subject to vesting and are treated as common stock equivalents in calculating basic net income (loss) per share. Diluted net income (loss) per share is computed using the weighted average number of shares of Common Stock outstanding and dilutive potential shares of Common Stock from stock options outstanding during the period. Diluted shares outstanding include the dilutive effect of in-the-money options, which is calculated based on the average share price for each period using the treasury stock method. | ||||||||||||||||||
Employee equity share options, non-vested shares and similar equity instruments granted by MRV, are treated as potential shares of common stock outstanding in computing diluted net income per share. Under the treasury stock method, the amount the employee must pay for exercising stock options, the amount of compensation cost for future service not yet recognized, and the amount of income tax benefits that would be realized and recorded in additional paid-in capital if the deduction for the award would reduce income taxes payable are assumed to be used to repurchase shares. | ||||||||||||||||||
Outstanding stock options to purchase 309,309, 325,837 and 420,693 shares were excluded from the computation of dilutive shares for the years ended December 31, 2014, 2013 and 2012 as they were anti-dilutive because of the net loss from continuing operations. Treasury shares are excluded from the number of shares outstanding. | ||||||||||||||||||
On August 17, 2012, the Company entered into a Share Purchase Agreement with T2 Accredited Fund, L.P., T2 Qualified Fund, L.P. and Tilson Offshore Fund, Ltd. to purchase 292,171 shares of the Company's Common Stock owned by the sellers at a price of $9.60 per share for an aggregate price of $2.8 million, which was a discount of 7.7% percent from the last reported trading price of $10.40 per share for the Company's Common Stock on August 16, 2012. The sale was executed on August 20, 2012. | ||||||||||||||||||
On December 3, 2012, the Company's Board of Directors approved a repurchase of shares of Common Stock of the Company in an amount up to $10.0 million under a Stock Repurchase Program that expired on December 31, 2013. Under this program, the Company repurchased 261,873 shares at a total cost of $2.6 million during the year ended December 31, 2013 and 40,305 shares at a total cost of $0.4 million during the year ended December 31, 2012. The Company repurchased 302,178 shares at a total cost of approximately $3.0 million under this Stock Repurchase Program through December 31, 2013. | ||||||||||||||||||
On August 15, 2013, the Company's Board of Directors terminated the existing stock repurchase plan and approved a replacement repurchase plan on substantially the same terms in an amount up to $7.0 million that expired on May 14, 2014. From August 15, 2013, through December 31, 2013, the Company repurchased 127,510 shares at a total cost of approximately $1.3 million. No additional shares were repurchased during year ended December 31, 2014, under this plan. | ||||||||||||||||||
On December 16, 2014, the Company announced that the Board of Directors approved a repurchase of shares of Common Stock of the Company in an amount up to $8.0 million under a Stock Repurchase Program. The program expires on November 13, 2015. The Company did not have any share repurchases settle under this program through December 31, 2014. | ||||||||||||||||||
Share-Based Compensation | ||||||||||||||||||
The Company accounts for stock-based payment awards at fair value at the grant date. The fair value of stock options and warrants are determined using the Black-Scholes valuation model. The assumptions used in calculating the fair value of share-based payment awards represent MRV's best estimates. Those estimates may be impacted by certain variables including stock price volatility, employee stock option exercise behaviors, additional stock option grants, estimates of forfeitures, and the related income tax impact. Stock-based compensation cost is recorded as expense using the straight-line method over the requisite service period or vesting period. | ||||||||||||||||||
Accounting Standards Recently Adopted | ||||||||||||||||||
In July 2013, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2013-11, "Income Taxes - Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carry Forward, a Similar Tax Loss, or a Tax Credit Carry Forwards Exists" ("ASU 2013-11"). ASU 2013-11 requires entities to present the unrecognized tax benefits in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss or a tax credit carryforward. The Company adopted this standard effective January 1, 2014. The Company's adoption of ASU 2013-11 did not have a material impact on the consolidated financial statements and footnote disclosures. | ||||||||||||||||||
In November 2014, the FASB issued ASU No. 2014-17, "Pushdown Accounting" ("ASU 2014-17"). ASU 2014-17 provides guidance on determining and at what threshold pushdown accounting should be established in an acquired entity's separate financial statements. The amendments also provide that an acquired entity may elect to apply pushdown accounting in its separate financial statements upon a change-in-control event in which an acquirer obtains control of the acquired entity. The amendments in ASU 2014-17 are effective as of November 18, 2014. The Company's adoption of ASU 2014-17 did not have a material impact on the consolidated financial statements and footnote disclosures. | ||||||||||||||||||
Recently Issued Accounting Standards Not Yet Effective | ||||||||||||||||||
In May 2014, the FASB issued ASU No. 2014-09, "Revenue from Contracts with Customers (Topic 606)," ("ASU 2014-09"). ASU 2014-09 outlines a new, single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes current revenue recognition guidance, including industry-specific guidance. This new revenue recognition model provides a five-step analysis in determining when and how revenue is recognized. The new model will require revenue recognition to depict the transfer of promised goods or services to customers in an amount that reflects the consideration a company expects to receive in exchange for those goods or services. The pronouncement is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016, and early adoption is not permitted. The amendments may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of initial application. Management is currently evaluating the impact that adopting this new accounting guidance will have on its consolidated financial statements and footnote disclosures. | ||||||||||||||||||
In June 2014, the FASB issued ASU No. 2014-12, “Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period” (“ASU 2014-12”). The amendments in ASU 2014-12 require that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. A reporting entity should apply existing guidance in Accounting Standards Codification Topic No. 718, “Compensation - Stock Compensation” (“ASC 718”), as it relates to awards with performance conditions that affect vesting to account for such awards. The amendments in ASU 2014-12 are effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. Early adoption is permitted. Entities may apply the amendments in ASU 2014-12 either: (i) prospectively to all awards granted or modified after the effective date; or (ii) retrospectively to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented in the financial statements and to all new or modified awards thereafter. Management is currently evaluating the potential impact of the adoption of the new guidance, however does not expect the adoption of this new guidance to have a material impact on its consolidated financial statements and footnote disclosures. | ||||||||||||||||||
In August 2014, the FASB issued ASU No. 2014-15, "Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern" ("ASU 2014-15"). ASU 2014-15 provides guidance on management’s responsibility in evaluating whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. ASU 2014-15 is effective for the Company in its fourth quarter of fiscal 2017 with early adoption permitted. Management is currently evaluating the potential impact of the adoption of the new guidance, which may impact our disclosures at the time of adoption. | ||||||||||||||||||
In January 2015, the FASB issued ASU No. 2015-01, "Income Statement - Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items" (“ASU 2015-01”). ASU 2015-01 eliminates the concept of an extraordinary item from U.S. generally accepted accounting principles ("GAAP"). As a result, an entity will no longer be required to segregate extraordinary items from the results of ordinary operations, to separately present an extraordinary item on its income statement, net of tax, after income from continuing operations or to disclose income taxes and earnings-per-share data applicable to an extraordinary item. However, ASU 2015-01 will still retain the presentation and disclosure guidance for items that are unusual in nature and occur infrequently. ASU 2015-01 will be effective for the Company in its first quarter of fiscal 2017. Management is currently evaluating the potential impact of the adoption of the new guidance, however does not expect the adoption of this new guidance to have a material impact on its consolidated financial statements and footnote disclosures. | ||||||||||||||||||
Use of Estimates | ||||||||||||||||||
The preparation of these consolidated financial statements require management to make certain estimates, assumptions and judgments that can affect the reported amounts of assets and liabilities, revenue and expenses, and related disclosure of contingent assets and liabilities as of the date of the financial statements, and the reported amounts of revenues and expenses during the periods presented. On an ongoing basis, management evaluates its significant estimates and assumptions, including those related to revenue recognition, stock-based compensation, inventory valuation, accrued warranty, allowance for doubtful accounts, and accounting for income taxes. Management bases its estimates on historical and anticipated results, trends and on various other assumptions that it believes are reasonable under the circumstances, including assumptions as to future events. These estimates form the basis for making assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. By their nature, estimates are subject to an inherent degree of uncertainty. Actual results could differ materially from those estimates. | ||||||||||||||||||
Correction of an Immaterial Error | ||||||||||||||||||
During the six months ended June 30, 2014, the Company recorded an out-of-period adjustment to defer previously recognized revenue of $2.0 million, which resulted in an increase to after-tax net loss of $0.1 million for the six months ended June 30, 2014. The Company reduced cost of sales by $1.8 million, gross profit by $0.2 million and the provision for income taxes by $0.1 million related to prior periods to remove the effect of the previously recognized revenue for the six months ended June 30, 2014. These out of period adjustments also resulted in an increase in Inventory of $1.9 million, deferred revenue of $2.0 million and deferred income taxes, net of current portion by $0.1 million at of June 30, 2014. The impact on accumulated deficit and stockholder’s equity was a reduction of $0.1 million as of June 30, 2014. Management evaluated the effects of this adjustment on the Company’s consolidated financial statements and concluded that the error was not material to any prior periods, individually or in the aggregate. During the six months ended December 31, 2014, the Company recognized $1.4 million of revenue and $0.1 million gross profit, reducing the impact on deferred revenue, inventory and gross profit for the out-of-period adjustment to $0.6 million, $0.5 million and $0.1 million, respectively for the year ended December 31, 2014. The impact on accumulated deficit and stockholder’s equity was a reduction of $0.1 million as of December 31, 2014. |
Discontinued_Operations
Discontinued Operations | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Discontinued Operations and Disposal Groups [Abstract] | ||||
Discontinued Operations | Discontinued Operations | |||
On October 16, 2012, the Company completed the sale of its subsidiary, Pedrena. Pedrena is the parent company of Interdata, which is in turn, the parent company of J3TEL. The sale was completed pursuant to a Share Purchase Agreement, dated as of August 1, 2012 (the "Interdata Purchase Agreement") with IJ Next, a French "société par actions simplifiée," as purchaser. The purchaser was a wholly-owned subsidiary of the French company Holding Baelen Gaillard ("HBG"). | ||||
The purchase price was 14.6 million euros ($19.0 million) and was paid in cash at closing by HBG to the Company. Cash proceeds to the Company were subject to closing costs of approximately $0.8 million. In addition to the Interdata Purchase Agreement, the Company and purchaser entered into a Representations and Warranties Agreement on August 1, 2012 (the "Representation and Warranties Agreement") related to the transaction which included customary representations, warranties, covenants and indemnification obligations. The Interdata Purchase Agreement, Representations and Warranties Agreement and sale of Interdata were approved by the Company's stockholders at the Company's annual meeting of stockholders held on October 11, 2012. | ||||
The statements of operations for the year ended December 31, 2012 that would have been included if Pedrena had not been sold consisted of (in thousands): | ||||
Year ended December 31: | 2012 | |||
Revenue | $ | 27,602 | ||
Income (loss) before income taxes | (3,175 | ) | ||
Provision for income taxes | (244 | ) | ||
Income (loss) from operations of discontinued operations | (2,931 | ) | ||
Gain on sale of Interdata, net of income taxes of $623 | 5,542 | |||
Net income from discontinued operations, net of income taxes | $ | 2,611 | ||
In connection with the sale of Interdata, the Company entered into a channel partner agreement with the buyer whereby the Company will continue to sell its products to Interdata. The amount of intercompany revenues that were previously eliminated from the Company's financial statements in consolidation consisted of (in thousands): | ||||
Year ended December 31: | 2012 | |||
Revenues attributed to intercompany activities | $ | 4,249 | ||
On October 12, 2012, the Company completed the sale of all of the shares of its wholly-owned subsidiary Alcadon pursuant to a Stock Purchase Agreement, dated as of September 11, 2012 (the "Alcadon Purchase Agreement") with Deltaco Aktiebolag, a public corporation organized under the laws of Sweden (“Deltaco”). The Alcadon Purchase Agreement and sale of Alcadon were approved by the Company's stockholders at the Company's annual meeting of stockholders held on October 11, 2012. | ||||
The purchase price paid at closing to the Company by Deltaco was $6.5 million plus estimated net cash as of September 30, 2012 of $1.2 million for an aggregate of $7.7 million. The cash proceeds received were subject to an escrow amount of $0.8 million and approximately $0.3 million in closing costs. The escrow fund was released on December 28, 2012, subject to a 'true-up' adjustment of $0.7 million. Prior to the closing, Alcadon paid a cash dividend to MRV in the amount of $3.7 million. Total net cash proceeds to the Company were $10.6 million inclusive of the $3.7 million dividend and net of the true-up and other closing costs. | ||||
The statements of operations for the year ended December 31, 2012 that would have been included if Alcadon had not been sold consisted of (in thousands): | ||||
Year ended December 31: | 2012 | |||
Revenue | $ | 24,320 | ||
Loss before income taxes | (1,088 | ) | ||
Provision for income taxes | 643 | |||
Loss from operations of discontinued operations | (1,731 | ) | ||
Gain on sale of Alcadon, net of income taxes of $1,341 | 6,182 | |||
Net income from discontinued operations, net of income taxes | $ | 4,451 | ||
In connection with the sale of Interdata the Company entered into a channel partner agreement with the buyer whereby the Company will continue to sell its products to Alcadon. The amount of intercompany revenues that were previously eliminated from the Company's financial statements in consolidation consisted of (in thousands): | ||||
Year ended December 31: | 2012 | |||
Revenues attributed to intercompany activities | $ | 3,931 | ||
On March 29, 2012, the Company completed the sale of all of the issued and outstanding capital stock of its wholly-owned subsidiary CES. The sale was completed pursuant to a Stock Purchase Agreement (the "CES Purchase Agreement"), dated as of December 2, 2011, with CES Holding SA, as purchaser, represented for purpose of the Agreement by Vinci Capital Switzerland SA. The CES Purchase Agreement and sale of CES were approved by the Company's stockholders at the Company's annual meeting of stockholders held on January 9, 2012. The purchase price for CES paid on closing to the Company was CHF 25.8 million, or U.S. $28.4 million, with CHF 2.6 million, or U.S. $2.8 million of the proceeds going into an indemnification escrow account to be released in one year to the Company (subject to any indemnification claims that may be brought by the purchaser), which was released to the Company in March 2013. Cash proceeds to the Company were $24.2 million upon closing net of the escrowed funds and $1.2 million in other closing costs. | ||||
The historical financial results of CES prior to its sale have been reclassified as discontinued operations for all periods presented. The Company recorded net income of $5.8 million from discontinued operations, net of income tax expense, for the year ended December 31, 2012. The net income from discontinued operations for the year ended December 31, 2012 includes an $6.5 million gain partially offset by a $0.1 million operating loss and $0.4 million in withholding tax expense. | ||||
The statements of operations for the year ended December 31, 2012 that would have been included if CES had not been sold consisted of (in thousands): | ||||
Year ended December 31: | 2012 | |||
Revenue | $ | 6,829 | ||
Income (loss) before income taxes | (135 | ) | ||
Provision for income taxes | 556 | |||
Income (loss) from operations of discontinued operations | (691 | ) | ||
Gain on sale of CES, net of income taxes of $1,668 | 6,470 | |||
Net income from discontinued operations, net of income taxes | $ | 5,779 | ||
Goodwill_and_Other_Intangibles
Goodwill and Other Intangibles | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||
Goodwill and Other Intangibles | Goodwill and Other Intangible Assets | ||||||||||||
In accordance with ASC 350 Intangibles - Goodwill and Other, goodwill and intangibles with indefinite lives are not amortized, but instead measured for impairment at least annually or when events indicate that impairment exists. The following table summarizes the changes in the Company's goodwill accounts for the year ended December 31, 2012 (in thousands): | |||||||||||||
Network Integration | |||||||||||||
Goodwill | $ | 2,831 | |||||||||||
Accumulated impairment losses and amortization | (1,760 | ) | |||||||||||
Balance as of December 31, 2011 | 1,071 | ||||||||||||
Impairment of Tecnonet goodwill | (1,055 | ) | |||||||||||
Foreign currency translation adjustment, net | (16 | ) | |||||||||||
Goodwill | 2,831 | ||||||||||||
Accumulated impairment losses and amortization | (2,831 | ) | |||||||||||
Balance as of December 31, 2012 | $ | — | |||||||||||
The fair value of goodwill is tested for impairment on a non-recurring basis using Level 3 inputs. During the year ended December 31, 2012, the Company concluded that there was an indication of impairment to Tecnonet S.p.A, our Italian subsidiary. Below is a description of the Level 3 inputs used: | |||||||||||||
Quantitative Information about Level 3 Fair Value Measurements | |||||||||||||
($ in thousands) | |||||||||||||
Fair Value at September 30, 2012 | Valuation Technique | Unobservable Input | Range (Median) | ||||||||||
Equity investment in Tecnonet | $ | 20,100 | Income approach-discounted cash flow ("DCF") | Weighted average cost of capital | 19.8%-25.8% (22.8%) | ||||||||
Long term growth rate | 1.5%-4.5% (3.0%) | ||||||||||||
Based on the valuation of Tecnonet, the associated goodwill was determined to be impaired and was written off during the year ended December 31, 2012. Reasons for the impairment include lower revenue and lower profit forecast for the business due to worsening economic conditions in Italy. The amount of the impairment, $1.1 million, is equal to the total carrying amount of goodwill on the books as of September 30, 2012. | |||||||||||||
During the year ended December 31, 2012, the Company concluded that there was an indication of impairment to Alcadon-MRV AB ("Alcadon"), our Scandinavian subsidiary, which was subsequently sold in October 2012. Below is a description of the Level 3 inputs used: | |||||||||||||
Quantitative Information about Level 3 Fair Value Measurements | |||||||||||||
($ in thousands) | |||||||||||||
Fair Value at June 30, 2012 | Valuation Technique | Unobservable Input | Range (Median) | ||||||||||
Equity investment in Alcadon | $ | 13,100 | DCF | Weighted average cost of capital | 34.3%-40.3% (37.3%) | ||||||||
Long term growth rate | 1.5%-4.5% (3.0%) | ||||||||||||
$ | 11,900 | Non-binding offer from third party | N/A | $ | 11,900 | ||||||||
Based on the valuation of Alcadon, the goodwill associated with Alcadon was determined to be impaired and was written off during the year ended December 31, 2012. Reasons for the impairment include the loss of a key customer in the first half of 2012 lowering revenue and profit forecast for the business. The amount of the impairment was equal to the total carrying amount of goodwill on the books as of June 30, 2012, $3.7 million. | |||||||||||||
The Company did not have any remaining goodwill on its Consolidated Balance Sheets as of December 31, 2014 and 2013. | |||||||||||||
Intangible assets, net of amortization totaled $1.4 million and $0.9 million as of December 31, 2014 and 2013, respectively, and consist of intellectual property purchased during the years ended December 31, 2014 and 2013. A portion of these assets, approximating $0.4 million, which represent software license agreements, were placed into service during the year ended December 31, 2014. Amortization of intangible assets was $0.05 million for the year ended December 31, 2014. None of these assets were in service as of December 31, 2013, therefore amortization of other intangible assets was zero for the year ended December 31, 2013. The terms of the some of these license agreements provide for use of the licensed software into perpetuity while others are more definite. The Company plans to amortize the cost of the license agreements over the estimated useful life, which can range between three to five years. The Company recorded an impairment charge of $0.1 million during the year ended December 31, 2014 on one of the software license agreements placed into service. The Company did not record any impairment charges related to intangible assets for the years ended December 31, 2013 and 2012. As of December 31, 2014, intangible assets not yet placed into service totaled approximately $1.1 million. | |||||||||||||
The following table illustrates the estimated future amortization expense of intangible assets as of December 31, 2014 (in thousands): | |||||||||||||
Year ending December 31, | Estimated Amortization Expense | ||||||||||||
2015 | $ | 167 | |||||||||||
2016 | 328 | ||||||||||||
2017 | 280 | ||||||||||||
2018 | 214 | ||||||||||||
2019 | 214 | ||||||||||||
Thereafter | 161 | ||||||||||||
Total | $ | 1,364 | |||||||||||
Accrued_Liabilities
Accrued Liabilities | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Payables and Accruals [Abstract] | |||||||||
Accrued Liabilities | Accrued Liabilities | ||||||||
Accrued liabilities consisted of the following (in thousands): | |||||||||
December 31: | 2014 | 2013 | |||||||
Payroll and related | $ | 9,068 | $ | 9,537 | |||||
Professional fees | 1,441 | 1,400 | |||||||
Non-income taxes | 1,544 | 3,223 | |||||||
Product warranty | 616 | 578 | |||||||
Deferred rent | 160 | 278 | |||||||
Derivative litigation settlement | — | 1,241 | |||||||
Other | 1,716 | 3,206 | |||||||
Total accrued liabilities | $ | 14,545 | $ | 19,463 | |||||
Total derivative litigation cost in excess of insurance limits was $1.9 million through December 31, 2013. See Note 10, Commitments and Contingencies. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Income Taxes | Income Taxes | ||||||||||||
For financial reporting purposes, loss before provision for income taxes includes the following (in thousands): | |||||||||||||
Years ended December 31: | 2014 | 2013 | 2012 | ||||||||||
United States | $ | (7,993 | ) | $ | (4,096 | ) | $ | (11,018 | ) | ||||
Foreign | 141 | (1,218 | ) | 2,830 | |||||||||
Loss before provision for income taxes | $ | (7,852 | ) | $ | (5,314 | ) | $ | (8,188 | ) | ||||
The provision (benefit) for income taxes consists of the following (in thousands): | |||||||||||||
Years ended December 31: | 2014 | 2013 | 2012 | ||||||||||
Current: | |||||||||||||
State | $ | (89 | ) | $ | (56 | ) | $ | 300 | |||||
Foreign | 2,470 | 1,621 | 1,664 | ||||||||||
Total current | 2,381 | 1,565 | 1,964 | ||||||||||
Deferred: | |||||||||||||
Federal | — | — | (3,019 | ) | |||||||||
State | — | — | (614 | ) | |||||||||
Foreign | 1,922 | (57 | ) | 656 | |||||||||
Total deferred | 1,922 | (57 | ) | (2,977 | ) | ||||||||
Provision (benefit) for income taxes | $ | 4,303 | $ | 1,508 | $ | (1,013 | ) | ||||||
The income tax provision differs from the amount computed by applying the federal statutory income tax rate as follows: | |||||||||||||
Years ended December 31: | 2014 | 2013 | 2012 | ||||||||||
Income tax provision, at statutory federal rate | 34 | % | 34 | % | 34 | % | |||||||
State and local income taxes, net of federal income taxes effect | 6 | 5 | 6 | ||||||||||
Credits | — | — | 5 | ||||||||||
Permanent differences | (10 | ) | (13 | ) | (7 | ) | |||||||
Goodwill impairment | — | — | (4 | ) | |||||||||
Fiberxon settlement | — | — | — | ||||||||||
Foreign taxes at rates different than domestic rates | (4 | ) | (7 | ) | (1 | ) | |||||||
Change in valuation allowance | (76 | ) | (49 | ) | (20 | ) | |||||||
Change in reserve for uncertain tax positions | — | (3 | ) | — | |||||||||
Other adjustments | (5 | ) | 5 | — | |||||||||
Effective tax rate | (55 | )% | (28 | )% | 13 | % | |||||||
The components of deferred income taxes consist of the following (in thousands): | |||||||||||||
December 31: | 2014 | 2013 | |||||||||||
Allowance for doubtful accounts | $ | 389 | $ | 415 | |||||||||
Inventory reserve | 2,814 | 1,954 | |||||||||||
Accrued liabilities | 2,846 | 2,694 | |||||||||||
Other | 5,446 | 5,791 | |||||||||||
11,495 | 10,854 | ||||||||||||
Valuation allowance | (10,960 | ) | (9,635 | ) | |||||||||
Net current deferred income tax assets | 535 | 1,219 | |||||||||||
Net operating losses | 91,085 | 88,086 | |||||||||||
Depreciation and amortization | 370 | 439 | |||||||||||
Capital loss carry forwards | 38,755 | 38,951 | |||||||||||
130,210 | 127,476 | ||||||||||||
Valuation allowance | (128,105 | ) | (123,782 | ) | |||||||||
Net long-term deferred income tax asset | 2,105 | 3,694 | |||||||||||
Total deferred income taxes | $ | 2,640 | $ | 4,913 | |||||||||
MRV records valuation allowances against deferred income tax assets, when necessary. Realization of deferred income tax assets, such as net operating loss ("NOL") carry forwards and income tax credits, is dependent on future taxable earnings and is therefore uncertain. At least quarterly, the Company assesses the likelihood that the deferred income tax asset balance will be recovered from future taxable income. To the extent management believes that recovery is unlikely, the Company establishes a valuation allowance against the deferred income tax asset, which increases income tax expense in the period such determination is made. During the year ended December 31, 2014, the Company recorded an increase to the valuation allowance totaling $5.6 million against deferred income tax assets from: (1) $2.6 million and $1.1 million of deferred tax assets principally from current year domestic and foreign net operating losses; and (2) $1.9 million of deferred tax assets principally from prior year foreign net operating losses, respectively, that do not meet the more likely than not threshold for realization. Our unreserved net deferred tax assets amounted to $2.6 million at December 31, 2014, which was exclusively part of our Israeli subsidiary operations; and $4.9 million at December 31, 2013, which were part of our Israeli and German subsidiaries operations. | |||||||||||||
The change in the valuation allowance is as follows (in millions): | |||||||||||||
December 31: | 2014 | 2013 | 2012 | ||||||||||
Balance at beginning of period | $ | (133.4 | ) | $ | (138.2 | ) | $ | (158.8 | ) | ||||
(Increase) decrease in valuation allowance | (5.6 | ) | 4.8 | 20.6 | |||||||||
Balance at end of period | $ | (139.0 | ) | $ | (133.4 | ) | $ | (138.2 | ) | ||||
As of December 31, 2014, MRV had federal, state, and foreign NOL carry-forwards available of $179.7 million, $100.7 million and $97.3 million, respectively. For the year ended December 31, 2014, federal NOL carry-forwards increased by $7.4 million, and state net operating loss carry-forwards increased by $7.9 million. For federal and state income tax purposes, the NOLs expire beginning in 2015 and are available to offset future taxable income through 2034. Certain foreign NOL carry-forwards and tax credits are available indefinitely. Additionally, the Company had capital loss carry-forwards of $110.5 million and $24.0 million for federal and state tax purposes, respectively as December 31, 2014. The capital loss carry-forwards, which were generated by the sale of Source Photonics, expire in 2015. Under the Internal Revenue Code, if a corporation undergoes an "ownership change," the corporation's ability to use its pre-change NOLs, capital loss carry-forwards and other pre-change tax attributes to offset its post-change income may be limited. An ownership change is generally defined as a greater than 50% change in its equity ownership by value over a three-year period. We may experience an ownership change in the future as a result of subsequent shifts in our stock ownership. If we were to trigger an ownership change in the future, our ability to use any NOLs and capital loss carry-forwards existing at that time could be limited. As of December 31, 2014, the US federal and state NOLs had a full valuation allowance. | |||||||||||||
MRV recognizes tax benefits associated with the exercise of stock options and vesting of restricted stock directly to stockholders' equity only when realized. Accordingly, deferred tax assets are not recognized for NOL carry forwards resulting from these tax benefits. A tax benefit occurs when the actual tax benefit realized upon an employee's disposition of a share-based award exceeds the deferred tax asset, if any, associated with the award. At December 31, 2014, deferred tax assets do not include $3.2 million of loss carryovers from share-based compensation. | |||||||||||||
MRV has not recorded U.S. income tax expense for foreign earnings that it has declared as indefinitely reinvested offshore, thus reducing its overall income tax expense. At December 31, 2014, MRV had approximately $27.6 million of accumulated but undistributed earnings at certain foreign entities. The amount of earnings designated as indefinitely reinvested offshore is based upon our expectations of the future cash needs of the Company's foreign entities. Income tax considerations are also a factor in determining the amount of foreign earnings to be repatriated. In the event actual cash needs of the Company's U.S. entities exceed current expectations or the actual cash needs of the Company's foreign entities are less than expected, the Company may need to repatriate foreign earnings that have been designated as indefinitely reinvested offshore. This would result in recording additional U.S. income tax expense. It is not practicable to estimate the amount of deferred tax liability related to investments in these foreign subsidiaries. | |||||||||||||
The tax years 2002-2014 remain open to examination by the major taxing jurisdictions to which the Company is subject. The Company does not anticipate a significant change to the total amount of unrecognized tax benefits within the next 12 months. No reserve was recorded for uncertainty in income taxes as of December 31, 2012. | |||||||||||||
During the year ended December 31, 2012, the Company reported a loss from continuing operations and income from discontinued operations, which resulted in a reclassification of income tax benefit from discontinued operations to continuing operations. The amount of the benefit reclassified was $3.6 million. The Company recognized income tax expense of $4.6 million for the year ended December 31, 2012 with respect to its discontinued operations. | |||||||||||||
The Company or one of its subsidiaries files income tax returns in the US federal jurisdiction, and various state and foreign jurisdictions. A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows (in thousands): | |||||||||||||
December 31: | 2014 | 2013 | 2012 | ||||||||||
Balance at beginning of period | $ | (134 | ) | $ | — | $ | — | ||||||
Reductions related to prior year positions | 34 | (134 | ) | — | |||||||||
Balance at end of period | $ | (100 | ) | $ | (134 | ) | $ | — | |||||
Substantially all of the uncertain tax benefits as of December 31, 2014, if recognized, would affect the effective tax rate. The Company recognizes interest related to unrecognized tax benefits in interest expense and penalties in operating expenses. The tax years 2001-2014 remain open to examination by the major taxing jurisdictions to which the Company is subject. Management does not anticipate a significant change to the total amount of unrecognized tax benefits within the next 12 months. | |||||||||||||
On September 13, 2013, Treasury and the Internal Revenue Service issued final regulations regarding the deduction and capitalization of expenditures related to tangible property. The final regulations under Internal Revenue Code Sections 162, 167 and 263(a) apply to amounts paid to acquire, produce, or improve tangible property as well as dispositions of such property and are generally effective for tax years beginning on or after January 1, 2014. We have evaluated these regulations and determined they will not have a material impact on our consolidated results of operations, cash flows or financial position. |
ShortTerm_Debt
Short-Term Debt | 12 Months Ended |
Dec. 31, 2014 | |
Debt Disclosure [Abstract] | |
Short-Term Debt | Short-Term Debt |
Short-term debt consists of secured and unsecured lines of credit and a short-term loan. As of December 31, 2014 and 2013, short-term debt totaled $5.4 million and $4.3 million, respectively. Short-term debt bears interest ranging from 1.7% to 2.4%, and the weighted average interest rate was approximately 2.1% and 2.2% as of December 31, 2014 and 2013, respectively. These obligations are incurred and settled in local currencies of the respective subsidiaries. See Note 17, Accounts Receivable Factoring. |
Other_longterm_liabilities
Other long-term liabilities | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Other Liabilities Disclosure [Abstract] | |||||||||
Other long-term liabilities | Other long-term liabilities | ||||||||
Other long-term liabilities consisted of the following (in thousands): | |||||||||
December 31: | 2014 | 2013 | |||||||
Liability for severance pay | $ | 3,591 | $ | 3,658 | |||||
Long-term portion of deferred revenue | 1,330 | 1,444 | |||||||
Other | 350 | 134 | |||||||
Total other long-term liabilities | $ | 5,271 | $ | 5,236 | |||||
401k_Plan
401(k) Plan | 12 Months Ended |
Dec. 31, 2014 | |
Compensation and Retirement Disclosure [Abstract] | |
401(k) Plan | 401(k) Plan |
The Company sponsors a 401(k) plan to provide retirement benefits for its U.S. employees. As allowed under Section 401(k) of the Internal Revenue Code, MRV's plan provides for tax-deferred salary contributions for eligible employees. The Plan allows employees to contribute a portion of their annual compensation to the plan on a pretax basis. The Company currently matches pretax contributions up to 50% of the first 6% of eligible earnings contributed by employees. Matching contributions to the Plan totaled $562,299, $334,661, and $395,595 for the years ended December 31, 2014, 2013, and 2012, respectively. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Commitments and Contingencies Disclosure [Abstract] | ||||
Commitments and Contingencies | Commitments and Contingencies | |||
Lease Commitments | ||||
MRV leases certain facilities and equipment under non-cancelable lease agreements expiring in various years through 2020. Following are the aggregate minimum annual lease payments under leases in effect as of December 31, 2014 (in thousands): | ||||
Year ending December 31, | Operating leases | |||
2015 | $ | 2,302 | ||
2016 | 1,429 | |||
2017 | 1,072 | |||
2018 | 598 | |||
2019 | 413 | |||
Thereafter | 118 | |||
Total | $ | 5,932 | ||
Rental expense under non-cancelable operating lease agreements for the years ended December 31, 2014, 2013 and 2012, was $2.5 million, $2.4 million and $2.7 million, respectively. | ||||
On October 8, 1996, the Company entered into a lease amendment for the lease of office space located in Chatsworth, CA. The current term of the lease is for 10 years through April 1, 2017, with no option to extend the lease term. The remaining lease payments over the current term will approximate $0.5 million. Pursuant to the amendment, the Company was granted an improvement allowance of $70,000 which is being amortized as a reduction to rent expense over the life of the lease. | ||||
On June 30, 2005 the Company entered into a lease amendment as successor-in-interest to Luminent, Inc. for the lease of office and warehouse space located in Chatsworth, CA. The current term is through December 31, 2015, with an option to extend the lease five years. The remaining lease payments will approximate $0.2 million. | ||||
On June 30, 2008, the Company entered into a lease amendment for the lease of office space located in Rome, Italy. The Company exercised its right to extend the lease through January 31, 2020. The remaining lease payments over the current term will approximate $1.2 million. | ||||
On July 1, 2008, the Company entered into lease amendment for the lease of office space at another facility located in Rome, Italy. The Company exercised its right to extend the lease through January 31, 2020. The remaining lease payments over the current term will approximate $1.1 million. | ||||
On December 16, 2009, the Company entered into a lease amendment with Chelmsford Associates, LLC for the lease of office space located in Chelmsford, MA. The term of the lease is for five years, six months from March 1, 2010, with an option to extend the lease term for a five year period. The remaining lease payments over the current term will approximate $0.2 million. Pursuant to the lease, the Company was granted rent abatement of $146,000, which is being amortized as a reduction to rent expense over the life of the lease. | ||||
Purchase Commitments with Outsourcing Partners and Component Suppliers | ||||
We utilize several outsourcing partners to manufacture sub-assemblies for the Company’s products and to perform final assembly and testing of finished products. These outsourcing partners acquire components and build product based on demand information supplied by the Company, which typically covers periods up to 150 days. The Company also obtains individual components for its products from a wide variety of individual suppliers. Consistent with industry practice, the Company acquires components through a combination of purchase orders, supplier contracts, and open orders based on projected demand information. As of December 31, 2014, the Company had outstanding minimum future commitments for manufacturing and component purchases totaled $7.7 million. | ||||
Royalty Commitment | ||||
Certain of MRV's Israeli subsidiaries are obligated to the Office of the Chief Scientist of the Government of Israel ("Chief Scientist") with respect to the government's participation in research and development expenses for certain products. The royalty to the Chief Scientist is recorded in cost of goods sold, and is calculated at a rate of 2.0% to 5.0% of sales of such products developed with the participation, up to the cost of such participation. The outstanding obligation as of December 31, 2014 is approximately $287,000. We have further reserved approximately $243,000 against a disputed claim that was raised in 2005, though the last correspondence with the Chief Scientist on the matter occurred in 2008. Amounts received from the participation of the Chief Scientist are offset against the related research and development expenses incurred. MRV did not receive participation from the Chief Scientist for the years ended December 31, 2014, 2013, and 2012. | ||||
Indemnification Obligations | ||||
In connection with the sale by MRV of Source Photonics in October 2010, MRV agreed to indemnify the buyer against certain claims brought after the closing for prior-occurring events. Most of the indemnification obligations have expired, however any indemnification obligations related to intellectual property extend until the third anniversary of the closing, indemnification related to employee benefits, environmental liabilities and taxes extend until their applicable statute of limitations has run plus 90 days, and indemnification obligations are not time limited for title and ownership representations. These indemnification obligations are subject to a $1.0 million deductible and a $20.0 million cap and we have purchased an insurance policy to protect against such obligations. | ||||
In connection with the sale by MRV of CES in March 2012, MRV agreed to indemnify the buyer for the representations and warranties made in the sale purchase agreement, and we have purchased an insurance policy to protect us against any claims of indemnification related to the representations and warranties. Our sale purchase agreements for the sale of Interdata and Alcadon also include customary indemnification obligations. | ||||
We have agreements whereby our officers and directors are indemnified for certain events or occurrences while the officer or director is, or was, serving at our request in such capacity. The maximum potential amount of future payments we could be required to make under these indemnification agreements is unlimited; however, we retain directors and officers insurance that reduces our exposure and enables us to recover portions of amounts paid. As a result of our insurance coverage, we believe the estimated fair value of these indemnification agreements is minimal. | ||||
Accordingly, no liabilities have been recorded for these indemnifications agreements as of December 31, 2014 and 2013. | ||||
In the normal course of business to facilitate sales of its products, MRV indemnifies other parties, including customers, lessors and parties to other transactions with us, with respect to certain matters. The Company has agreed to hold the other parties harmless against losses arising from a breach of representation or covenants, for intellectual property infringement, or other claims made against certain parties. These agreements may limit the time within which an indemnification claim can be made and the amount of the claim. | ||||
In addition, the Company has indemnification obligations to its current and former officers, directors, employees and agents, as set forth in the Company's bylaws. | ||||
We cannot estimate the amount of potential future payments, if any, that it might be required to make as a result of these obligations. Over the last decade, the Company has not incurred any significant expense as a result of obligations of this type that were not otherwise covered by our insurance policies. Accordingly, the Company has not accrued any amounts for such indemnification obligations. However, there can be no assurances that expenses will not be incurred under these indemnification provisions in the future. | ||||
Litigation | ||||
We are subject to legal claims and litigation in the ordinary course of business, including but not limited to product liability, employment and intellectual property claims. The outcome of any such matters is currently not determinable. In addition, we were party to the litigation set forth below. | ||||
From June to August 2008, five purported stockholder derivative and securities class action lawsuits were filed in the U.S. District Court in the Central District of California and one derivative lawsuit was filed in the Superior Court of the State of California against the Company and certain of our former officers and directors. The five lawsuits filed in the Central District of California were consolidated. Claims were asserted under Section 10(b) and 20(a) of the Exchange Act, and Rule 10b-5 promulgated thereunder. In November 2010, the judge overseeing the securities class action lawsuits gave final approval to a stipulated $10.0 million settlement agreement, which was covered by our director and officer insurance policies. | ||||
On April 8, 2013 the Federal Court preliminarily approved a Stipulation of Settlement (the "Settlement Stipulation"), which includes, among other things, (a) a release of all claims relating to the derivative litigation for the Company, the individual defendants and the plaintiffs; (b) a provision that $2.5 million in cash be paid to the Company by the Company's insurance carriers; (c) payment of attorneys' fees to plaintiffs' counsel including $500,000 in cash and 250,000 warrants to purchase the Company's Common Stock, with a five-year term and strike price of the closing price of the Company's Common Stock on the date an order of the federal District Court approving the settlement becomes final; (d) the continued payment by the Company of applicable reasonable attorneys' fees for the individual defendants. On June 6, 2013, the Federal Court granted final approval of the Settlement Stipulation and on June 13, 2013 entered Judgment dismissing the federal derivative action with prejudice. On June 24, 2013, the State Court entered a dismissal with prejudice of the state derivative action. The Company was also required to undertake certain corporate governance reform actions, all of which have been implemented. | ||||
A majority of the costs related to the Company's and defendants' defense of these actions was paid by the Company's insurance carriers under its director and officer insurance policies, including the securities class action settlement. Insurance proceeds paid to the Company upon settlement of the derivative litigation were $1.0 million. However, MRV has paid and accrued $1.9 million for services of defense counsel and other parties through December 31, 2013 above the insured amount. | ||||
In May 2014, a former customer of Tecnonet S.p.A.(Tecnonet), the Company's Italian subsidiary, filed a claim in an Italian civil court alleging that Tecnonet, and two of its third-party subcontractors, breached certain supply agreements with the customer, entered into between 2009 and 2011, by failing to have performed the contracted services. The plaintiff further alleges that Tecnonet was aware, at the time of entering into the supply agreements, that the customer’s managing director had a conflict of interest involving the subcontractors. The plaintiff is claiming damages and restitution from Tecnonet and the subcontractors, jointly and severally, of approximately $3.0 million in the aggregate, plus costs. As of December 31, 2014, the Company has not accrued any liabilities related to this matter. While we believe that Tecnonet has valid defenses to the plaintiff's claims, we cannot provide assurance that such claims will not result in any liability to Tecnonet. | ||||
Nhan T. Vo, individually and on behalf of other aggrieved employees vs. the Company, Superior Court of California, County of Los Angeles. On June 27, 2013, the plaintiff in this matter filed a lawsuit against the Company alleging claims for failure to properly pay overtime or provide meal and rest breaks to its non-exempt employees in California, among other things. The complaint seeks an unspecified amount of damages and penalties under provisions of the Labor Code, including the Labor Code Private Attorneys General Act. The Company has filed an answer denying all allegations regarding the plaintiff’s claims and asserting various defenses. The Company is currently in the discovery phase of this case. The Company believes it has accrued adequate reserves for this matter and does not expect the matter to have a material adverse effect on its business or financial condition. However, depending on the actual outcome of this case, further provisions could be recorded in the future which may have a material adverse effect on the Company’s operating results. | ||||
From time to time, MRV has received notices from third parties alleging possible infringement of patents with respect to product features or manufacturing processes. Management believes such notices are common in the communications industry because of the large number of patents that have been filed on these subjects. The Company's policy is to discuss these notices with the parties in an effort to demonstrate that MRV's products and/or processes do not violate any patents. The Company has been involved in such discussions in the past with Alcatel-Lucent SA, Apcon, Inc., Finisar Corporation, International Business Machines, Mediacom Broadband LLC, Ortel Communications, Ltd., Nortel Networks Corporation, Rockwell Automation, Inc. and The Lemelson Foundation. Management does not believe that any of the matters will result in a material adverse outcome. | ||||
MRV and its subsidiaries have been named as a defendant in other lawsuits involving matters that the management considers routine to the nature of its business. Management is of the opinion that the ultimate resolution of such matters will not have a material adverse effect on our business, operating results and financial condition. |
Product_Warranty
Product Warranty | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Product Warranties Disclosures [Abstract] | |||||||||||||||||||||
Product Warranty | Product Warranty | ||||||||||||||||||||
As of December 31, 2014 and 2013, MRV's product warranty liability recorded in accrued liabilities was $0.6 million. The following table summarizes the activity related to the product warranty liability (in thousands): | |||||||||||||||||||||
Balance at beginning of period | Cost of warranty claims | Accruals for product warranties | Foreign currency translation adjustment | Balance at | |||||||||||||||||
end of | |||||||||||||||||||||
period | |||||||||||||||||||||
31-Dec-12 | $ | 1,126 | $ | (150 | ) | $ | 30 | $ | — | $ | 1,006 | ||||||||||
31-Dec-13 | $ | 1,006 | $ | (321 | ) | $ | (107 | ) | $ | — | $ | 578 | |||||||||
31-Dec-14 | $ | 578 | $ | (17 | ) | $ | 55 | $ | — | $ | 616 | ||||||||||
MRV accrues for warranty costs as part of its cost of sales based on associated material product costs, technical support labor costs and associated overhead. The products sold are generally covered by a warranty for periods of 90 days to three years. |
Stockholders_Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2014 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders' Equity |
Authorized Shares | |
The Company is authorized to issue up to 1 million shares of its $0.01 par value Preferred Stock. | |
Accumulated Other Comprehensive Income | |
Accumulated Other Comprehensive income is comprised of the effects of foreign currency translation adjustments to the financial statements. | |
Stock Repurchase Programs and Stock Repurchase | |
On August 17, 2012, the Company entered into a Share Purchase Agreement with T2 Accredited Fund, L.P., T2 Qualified Fund, L.P. and Tilson Offshore Fund, Ltd. to purchase 292,171 shares of the Company's Common Stock owned by the sellers at a price of $9.60 per share for an aggregate price of $2.8 million, which was a discount of 7.7% percent from the last reported trading price of $10.40 per share for the Company's Common Stock on August 16, 2012. The sale was executed on August 20, 2012. | |
On December 3, 2012, the Company's Board of Directors approved a repurchase of shares of Common Stock of the Company in an amount up to $10.0 million under a Stock Repurchase Program that expired on December 31, 2013. Under this program, the Company repurchased 261,873 shares at a total cost of $2.6 million during the year ended December 31, 2013 and 40,305 shares at a total cost of $0.4 million during the year ended December 31, 2012. The Company repurchased 302,178 shares at a total cost of approximately $3.0 million under this Stock Repurchase Program through December 31, 2013. | |
On August 15, 2013, the Company's Board of Directors terminated the existing stock repurchase plan and approved a replacement repurchase plan on substantially the same terms in an amount up to $7.0 million that expired on May 14, 2014. From August 15, 2013, through December 31, 2013, the Company repurchased 127,510 shares at a total cost of approximately $1.3 million. No additional shares were repurchased during year ended December 31, 2014, under this plan. | |
On December 16, 2014, the Company announced that the Board of Directors approved a repurchase of shares of Common Stock of the Company in an amount up to $8.0 million under a Stock Repurchase Program. The program expires on November 13, 2015. The Company did not have any share repurchases settle under this program through December 31, 2014. | |
Equity Grants | |
MRV's equity plans provide for granting options, restricted stock or other forms of equity to purchase shares of MRV's Common Stock, to employees, directors and non-employees performing consulting or advisory services for the Company. Under these plans, stock options exercise prices generally equal the fair market value of MRV's Common Stock at the date of grant and restricted stock grants do not have exercise prices. The options generally vest over one year to four years with expiration dates of ten years from the date of grant and all outstanding restricted stock grants vest one year from the date of grant. The Company's 2007 Omnibus Plan provides for granting options, restricted stock, and other forms of equity, and is at the discretion of the Board of Directors. As of December 31, 2014, 103,914 shares of Common Stock were available for future awards under the plan. See Note 13 Share-Based Compensation for additional discussion. | |
Dividends | |
On May 1, 2012, the Company's Board of Directors declared a dividend and payment to option holders totaling approximately $47.3 million, or $6.00 per share of the Company's Common Stock. The dividend was paid on May 25, 2012 to holders of record as of the close of business on May 16, 2012. The Board also approved a staggered cash payment to option holders equal to the loss in the Black-Scholes fair value of their options as a result of the dividend. Restricted stockholders received per share payments in the same amount as the Company's stockholders. Option holders who provided service to the Company at the time of the payment of the dividend received 50 percent of the payment amount in respect of their vested options promptly following payment of the dividend, and will receive 50 percent of the payment amount 12 months following, conditioned upon continuous service to MRV, subject to certain acceleration conditions such as involuntary termination without cause, death or disability, change of control, or a sale of the business unit in which the option holder is employed. Option holders with unvested options will receive the cash payment in 12 months, subject to the same conditions described above. | |
On December 3, 2012, the Company's Board of Directors declared a dividend and payment to option holders totaling approximately $10.6 million, or $1.40 per share of the Company's Common Stock. The dividend was paid on December 21, 2012 to holders of record as of the close of business on December 14, 2012. Restricted stockholders received per share payments in the same amount as the Company's stockholders. Option holders received a one-time payment equal to the loss in the Black-Scholes fair value of their options as a result of the dividend. |
ShareBased_Compensation
Share-Based Compensation | 12 Months Ended | |||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||
Share-Based Compensation | Share-Based Compensation | |||||||||||||||||
MRV records share-based compensation expense at fair value. The following table summarizes the impact on MRV's results of operations of recording share-based compensation for the years ended December 31, 2014, 2013 and 2012 (in thousands): | ||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||
Cost of goods sold | $ | 116 | $ | 98 | $ | 39 | ||||||||||||
Product development and engineering | 166 | 66 | 40 | |||||||||||||||
Selling, general and administrative | 677 | 549 | 1,050 | |||||||||||||||
Total share-based compensation expense (1) | $ | 959 | $ | 713 | $ | 1,129 | ||||||||||||
-1 | Income tax benefits realized from stock option exercises and similar awards were immaterial in all periods. | |||||||||||||||||
The Company granted 198,647, 80,242 and 17,736 stock options during the years ended December 31, 2014, 2013 and 2012, respectively with the related average fair value of $6.95, $4.89 and $9.65 per share, respectively. The Company granted restricted shares of 100,355, 91,388 and 39,326 at average fair values of $13.91, $9.98 and $16.18 per share during the years ended December 31, 2014, 2013 and 2012, respectively. As of December 31, 2014, the total unrecognized share-based compensation balance for unvested securities, net of expected forfeitures, was $1.3 million, which is expected to be amortized over a weighted-average period of 2 years. | ||||||||||||||||||
The following table summarizes the activity that relates to the Company's restricted stock awards for the years ended December 31, 2014, 2013 and 2012 (share amounts): | ||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||
Non-vested restricted stock awards, January 1, 2014 | 81,193 | 37,514 | 5,148 | |||||||||||||||
Granted | 100,355 | 91,388 | 39,326 | |||||||||||||||
Vested | -39,238 | -37,428 | -5,148 | |||||||||||||||
Forfeited | -39,276 | -10,281 | -1,812 | |||||||||||||||
Non-vested restricted stock awards, December 31, 2014 | 103,034 | 81,193 | 37,514 | |||||||||||||||
Valuation Assumptions | ||||||||||||||||||
MRV uses the Black-Scholes option pricing model to estimate the fair value of stock option awards or related modifications. The Black-Scholes model requires the use of subjective and complex assumptions including the option's expected life and the underlying stock price volatility. MRV bases volatility on the Company's historical quoted prices and peer company data. The following weighted average assumptions were used for estimating the fair value of options granted during the years ended December 31, 2014, 2013 and 2012: | ||||||||||||||||||
Year ended December 31, | 2014 | 2013 | 2012 | |||||||||||||||
Risk-free interest rate | 2 | % | 1.2 | % | 0.8 | % | ||||||||||||
Dividend yield (1) | — | — | — | |||||||||||||||
Volatility | 50 | % | 52 | % | 89 | % | ||||||||||||
Expected life (in years) | 5.9 | 5.7 | 5.5 | |||||||||||||||
-1 | As the Company does not pay a dividend on a regular basis, and dividends paid in the past have been special in nature, a dividend rate of zero was used. | |||||||||||||||||
Share-Based Payment Award Activity | ||||||||||||||||||
The following table summarizes option share-based payment award activity for the one-year period ended December 31, 2014: | ||||||||||||||||||
Shares | Weighted average | Weighted average | Aggregate | |||||||||||||||
under option | exercise price | remaining contractual term | intrinsic value | |||||||||||||||
(in years) | ||||||||||||||||||
Outstanding, January 1, 2014 | 349,454 | $ | 28.15 | |||||||||||||||
Granted | 198,647 | $ | 14.11 | |||||||||||||||
Exercised | (6,812 | ) | $ | 10.55 | ||||||||||||||
Canceled, forfeited or adjusted | (133,339 | ) | $ | 26.58 | ||||||||||||||
Outstanding, December 31, 2014 | 407,950 | $ | 22.12 | 4.89 | $ | 22,479 | ||||||||||||
Vested and expected to vest, December 31, 2014 | 383,752 | $ | 22.66 | 4.6 | $ | 22,065 | ||||||||||||
Exercisable, December 31, 2014 | 266,411 | $ | 26.58 | 2.56 | $ | 20,594 | ||||||||||||
The aggregate intrinsic value represents the total pre-tax intrinsic value, based on MRV's closing stock price of $9.93 at December 31, 2014, which would have been received by award holders had all award holders exercised in-the-money awards as of that date. | ||||||||||||||||||
A summary of the Company's non-vested options as of December 31, 2014: | ||||||||||||||||||
Shares | Weighted average | |||||||||||||||||
under option | exercise price | |||||||||||||||||
Non-vested options outstanding, January 1, 2014 | 89,480 | $ | 12.65 | |||||||||||||||
Granted | 198,647 | $ | 14.11 | |||||||||||||||
Vested | (79,805 | ) | $ | 13.77 | ||||||||||||||
Canceled, forfeited or adjusted | (66,783 | ) | $ | 13.36 | ||||||||||||||
Non-vested outstanding, December 31, 2014 | 141,539 | $ | 13.73 | |||||||||||||||
The following table summarizes significant ranges of outstanding and exercisable options at December 31, 2014: | ||||||||||||||||||
Range of Exercise prices | Options | Weighted | Weighted | Options | Weighted | |||||||||||||
outstanding | average | average | exercisable | average | ||||||||||||||
as of | remaining | exercise | as of | exercise | ||||||||||||||
December 31, | contractual | price | December 31, | price of | ||||||||||||||
2014 | life (years) | 2014 | exercisable | |||||||||||||||
options | ||||||||||||||||||
$9.10 - $10.55 | 57,787 | 7.02 | $ | 9.8 | 40,148 | $ | 9.65 | |||||||||||
$13.32 - $13.60 | 43,092 | 8.24 | $ | 13.44 | 10,204 | $ | 13.6 | |||||||||||
$14.51 - $14.51 | 99,234 | 8.43 | $ | 14.51 | 8,409 | $ | 14.51 | |||||||||||
$15.53 - $23.80 | 27,849 | 3.36 | $ | 23.06 | 27,849 | $ | 23.06 | |||||||||||
$25.00 - $25.00 | 87,500 | 0.93 | $ | 25 | 87,500 | $ | 25 | |||||||||||
$27.60 - $33.20 | 44,902 | 3.09 | $ | 28.69 | 44,902 | $ | 28.69 | |||||||||||
$34.60 - $52.60 | 44,211 | 1.75 | $ | 47.12 | 44,024 | $ | 47.17 | |||||||||||
$57.40 - $64.80 | 1,475 | 1.34 | $ | 62.21 | 1,475 | $ | 62.21 | |||||||||||
$73.20 - $73.20 | 500 | 1.33 | $ | 73.2 | 500 | $ | 73.2 | |||||||||||
$79.20 - $79.20 | 1,400 | 1.12 | $ | 79.2 | 1,400 | $ | 79.2 | |||||||||||
$9.10 - $79.20 | 407,950 | 4.89 | $ | 22.12 | 266,411 | $ | 26.58 | |||||||||||
The following table summarizes certain stock option exercise activity during the periods presented (in thousands): | ||||||||||||||||||
Year ended December 31, | 2014 | 2013 | 2012 | |||||||||||||||
Total intrinsic value of stock options exercised | $ | 17 | $ | — | $ | — | ||||||||||||
Cash received from stock options exercised | $ | 72 | $ | — | $ | — | ||||||||||||
Segment_Reporting_and_Geograph
Segment Reporting and Geographic Information | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Segment Reporting [Abstract] | |||||||||||||
Segment Reporting and Geographic Information | Segment Reporting and Geographic Information | ||||||||||||
MRV operates its business in two segments: the Network Equipment segment and the Network Integration segment. The Network Equipment segment designs, manufactures, distributes and services optical networking solutions and Internet infrastructure products, and the Network Integration distributes network solutions and Internet infrastructure products and provides value-added integration and support services for customers' networks. | |||||||||||||
The accounting policies of the segments are the same as those described in the summary of significant accounting polices set forth in Note 2, Summary of Significant Accounting Policies. Management evaluates segment performance based on revenues, gross profit and operating income (loss) of each segment. As such, there are no separately identifiable Consolidated Statements of Operations data below operating income (loss). | |||||||||||||
The following table summarizes revenues by segment, including intersegment revenues (in thousands): | |||||||||||||
Years Ended December 31, | 2014 | 2013 | 2012 | ||||||||||
Network Equipment segment | $ | 86,705 | $ | 90,711 | $ | 87,727 | |||||||
Network Integration segment | 85,518 | 75,636 | 72,421 | ||||||||||
Before intersegment adjustments | 172,223 | 166,347 | 160,148 | ||||||||||
Intersegment adjustments | (167 | ) | (146 | ) | (8,487 | ) | |||||||
Total | $ | 172,056 | $ | 166,201 | $ | 151,661 | |||||||
Network Equipment revenue primarily consists of optical communication systems that include metro ethernet equipment, optical transport equipment, lab automation equipment, out-of-band network equipment, and the related service revenue and fiber optic components sold as part of system solutions. Network Integration revenue primarily consists of value-added integration and support service revenue, related third-party product sales (including third-party product sales through distribution) and fiber optic components sold as part of system solutions. All Network Integration's sales are within Italy. | |||||||||||||
One customer accounted for $41.0 million, $46.6 million and $43.4 million of revenue in the Network Integration segment, or 24%, 28% and 29% of total revenue for the years ended December 31, 2014, 2013 and 2012. The same customer accounted for 5%, 22% and 20% of total accounts receivable before allowance for doubtful accounts as of December 31, 2014, 2013 and 2012 respectively. Another customer accounted for $27.6 million, $22.7 million, and $19.1 million of revenue in the Network Integration segment, or 16%, 14%, and 13% of total revenue for the years ended December 31, 2014, 2013 and 2012. The same customer in the Network Integration segment accounted for 29%, 27% and 9% of total accounts receivable before allowance for doubtful accounts as of December 31, 2014, 2013 and 2012, respectively. | |||||||||||||
The following table summarizes external revenue by geographic region (in thousands): | |||||||||||||
Years Ended December 31, | 2014 | 2013 | 2012 | ||||||||||
United States | $ | 51,036 | $ | 55,071 | $ | 47,250 | |||||||
Americas (Excluding the U.S.) | 1,507 | 4,200 | 6,008 | ||||||||||
Europe | 105,996 | 98,843 | 88,868 | ||||||||||
Asia Pacific | 13,517 | 8,087 | 9,521 | ||||||||||
Other regions | — | — | 14 | ||||||||||
Total | $ | 172,056 | $ | 166,201 | $ | 151,661 | |||||||
Revenue from external customers attributed to Italy totaled $86.3 million, $76.6 million, and $73.1 million for the years ended December 31, 2014, 2013 and 2012 respectively. No other individual foreign country accounted for more than 10% of consolidated revenue. The Company's revenue by geographical area is based on the customer's country of domicile. | |||||||||||||
The following table summarizes long-lived assets, consisting of property and equipment, by geographic region (in thousands): | |||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||
Americas | $ | 3,078 | $ | 3,326 | |||||||||
Europe | 1,786 | 2,194 | |||||||||||
Asia Pacific | 26 | 35 | |||||||||||
Total | $ | 4,890 | $ | 5,555 | |||||||||
The following table provides selected Statement of Operations information by business segment (in thousands): | |||||||||||||
Years ended December 31, | 2014 | 2013 | 2012 | ||||||||||
Gross profit | |||||||||||||
Network Equipment segment | $ | 42,601 | $ | 47,069 | $ | 43,325 | |||||||
Network Integration segment | 13,176 | 10,917 | 11,832 | ||||||||||
Before intersegment adjustments | 55,777 | 57,986 | 55,157 | ||||||||||
Corporate unallocated and intersegment adjustments (1) | 1 | 7 | (5 | ) | |||||||||
Total | $ | 55,778 | $ | 57,993 | $ | 55,152 | |||||||
Depreciation expense | |||||||||||||
Network Equipment segment | $ | 1,759 | $ | 1,417 | $ | 1,022 | |||||||
Network Integration segment | 204 | 219 | 234 | ||||||||||
Corporate | 134 | 197 | 192 | ||||||||||
Total | $ | 2,097 | $ | 1,833 | $ | 1,448 | |||||||
Operating income (loss) | |||||||||||||
Network Equipment segment | $ | (7,074 | ) | $ | (1,699 | ) | $ | 1,096 | |||||
Network Integration segment | 5,562 | 4,620 | 4,514 | ||||||||||
Before intersegment adjustments | (1,512 | ) | 2,921 | 5,610 | |||||||||
Corporate unallocated operating loss and adjustments (1) | (6,238 | ) | (7,302 | ) | (15,457 | ) | |||||||
Total operating income (loss) | $ | (7,750 | ) | $ | (4,381 | ) | $ | (9,847 | ) | ||||
Provision (benefit) for income taxes | |||||||||||||
Network Equipment segment | $ | 1,873 | $ | (38 | ) | $ | (2,468 | ) | |||||
Network Integration segment | 2,430 | 1,546 | 1,455 | ||||||||||
Total | $ | 4,303 | $ | 1,508 | $ | (1,013 | ) | ||||||
(1) Adjustments reflect the elimination of intersegment revenue and profit in inventory. | |||||||||||||
The following tables provide selected Balance Sheet and Statement of Cash Flow information by business segment (in thousands): | |||||||||||||
December 31: | 2014 | 2013 | |||||||||||
Additions to Fixed Assets | |||||||||||||
Network Equipment segment | $ | 1,230 | $ | 3,329 | |||||||||
Network Integration segment | 178 | 104 | |||||||||||
Corporate | 83 | 229 | |||||||||||
Total | $ | 1,491 | $ | 3,662 | |||||||||
Total Assets | |||||||||||||
Network Equipment segment | $ | 40,664 | $ | 48,955 | |||||||||
Network Integration segment | 56,921 | 54,625 | |||||||||||
Corporate and intersegment eliminations | 16,987 | 24,367 | |||||||||||
Total | $ | 114,572 | $ | 127,947 | |||||||||
Other_Income_Net
Other Income, Net | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Other Income and Expenses [Abstract] | |||||||||||||
Other Income, Net | Other Income, Net | ||||||||||||
Following is a summary of other income, net (in thousands): | |||||||||||||
Years ended December 31: | 2014 | 2013 | 2012 | ||||||||||
Interest income | $ | 7 | $ | 14 | $ | 7 | |||||||
Gain (loss) on foreign currency transactions | 473 | (336 | ) | (316 | ) | ||||||||
Other, net | (253 | ) | (85 | ) | 255 | ||||||||
Total | $ | 227 | $ | (407 | ) | $ | (54 | ) | |||||
Quarterly_Financial_Data_Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||
Quarterly Financial Data (Unaudited) | Quarterly Financial Data (Unaudited) | ||||||||||||||||
The following tables summarize MRV's Consolidated Statements of Operations for 2014 (in thousands): | |||||||||||||||||
Three months ended: | March 31, | June 30, | September 30, | December 31, | |||||||||||||
2014 | 2014 | 2014 | 2014 | ||||||||||||||
Revenue | $ | 42,318 | $ | 43,124 | $ | 43,170 | $ | 43,444 | |||||||||
Cost of sales | 29,067 | 28,342 | 28,454 | 30,415 | |||||||||||||
Gross profit | 13,251 | 14,782 | 14,716 | 13,029 | |||||||||||||
Operating expenses: | |||||||||||||||||
Product development and engineering | 5,578 | 5,392 | 5,060 | 4,803 | |||||||||||||
Selling, general and administrative | 11,522 | 10,516 | 10,080 | 10,577 | |||||||||||||
Total operating expenses | 17,100 | 15,908 | 15,140 | 15,380 | |||||||||||||
Operating loss | (3,849 | ) | (1,126 | ) | (424 | ) | (2,351 | ) | |||||||||
Interest expense | (150 | ) | (40 | ) | (116 | ) | (23 | ) | |||||||||
Other income (loss), net | 33 | (420 | ) | 227 | 387 | ||||||||||||
Loss before income taxes | (3,966 | ) | (1,586 | ) | (313 | ) | (1,987 | ) | |||||||||
Provision for income taxes | 251 | 681 | 727 | 2,644 | |||||||||||||
Net loss | $ | (4,217 | ) | $ | (2,267 | ) | $ | (1,040 | ) | $ | (4,631 | ) | |||||
Net loss per share — basic and diluted | $ | (0.58 | ) | $ | (0.31 | ) | (0.14 | ) | $ | (0.63 | ) | ||||||
Basic and diluted weighted average shares | 7,283 | 7,360 | 7,362 | 7,368 | |||||||||||||
The above table includes a $1.9 million increase in the provision for income taxes for the three months ended December 31, 2014 related to an increase in the Company's valuation allowance on deferred tax assets. See Note 6, Income Taxes. | |||||||||||||||||
The following tables summarize MRV's Consolidated Statements of Operations for 2013 (in thousands): | |||||||||||||||||
Three months ended: | March 31, | June 30, | September 30, | December 31, | |||||||||||||
2013 | 2013 | 2013 | 2013 | ||||||||||||||
Revenue | $ | 38,905 | $ | 38,175 | $ | 38,385 | $ | 50,736 | |||||||||
Cost of sales | 25,878 | 24,803 | 23,411 | 34,116 | |||||||||||||
Gross profit | 13,027 | 13,372 | 14,974 | 16,620 | |||||||||||||
Operating expenses: | |||||||||||||||||
Product development and engineering | 4,648 | 4,454 | 4,627 | 5,652 | |||||||||||||
Selling, general and administrative | 12,392 | 9,453 | 10,308 | 10,840 | |||||||||||||
Total operating expenses | 17,040 | 13,907 | 14,935 | 16,492 | |||||||||||||
Operating income (loss) | (4,013 | ) | (535 | ) | 39 | 128 | |||||||||||
Interest expense | (132 | ) | (241 | ) | (41 | ) | (112 | ) | |||||||||
Other income (loss), net | 17 | (102 | ) | (132 | ) | (190 | ) | ||||||||||
Loss before income taxes | (4,128 | ) | (878 | ) | (134 | ) | (174 | ) | |||||||||
Provision for income taxes | 306 | 115 | 12 | 1,075 | |||||||||||||
Net loss | $ | (4,434 | ) | $ | (993 | ) | $ | (146 | ) | $ | (1,249 | ) | |||||
Net loss per share — basic and diluted | $ | (0.59 | ) | $ | (0.13 | ) | $ | (0.02 | ) | $ | (0.17 | ) | |||||
Basic and diluted weighted average shares | 7,568 | 7,585 | 7,522 | 7,443 | |||||||||||||
Accounts_Receivable_Factoring
Accounts Receivable Factoring | 12 Months Ended |
Dec. 31, 2014 | |
Accounts Receivable Factoring [Abstract] | |
Accounts Receivable Factoring | Accounts Receivable Factoring |
The Company's Italian subsidiary has agreements with unrelated third-parties for the factoring of specific accounts receivable in Italy in order to reduce the amount of working capital required to fund such receivables. At December 31, 2014, Tecnonet's factoring facility agreements permitted the factoring of up to €15.0 million, or $18.2 million, worth of receivables outside of the United States. The factoring of accounts receivable under these agreements is accounted for as a sale, as the Company has no retained interests or servicing liabilities related to the accounts receivable that have been sold in Italy. | |
As of December 31, 2014 and 2013, the face amount of total outstanding accounts receivables sold by the Company pursuant to these agreements was $10.5 million and $17.2 million, respectively. Receivables transferred to the factor are derecognized at the date of sale and the proceeds are recorded at fair value. Proceeds consist of a receivable due from the factor. Cash received from the factor is recorded as a reduction of the receivable due from the factor. The related outstanding balances due from the factor were $10.4 million and $7.7 million as of December 31, 2014 and 2013, respectively, and are included in other receivables on the accompanying balance sheets. The related losses on the sale were $0.2 million and $0.3 million for the years ended December 31, 2014 and 2013, respectively, and is included in interest expense on the accompanying Consolidated Statements of Operations. |
Subsequent_Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2014 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Event |
On December 31, 2014, the Company entered into an arrangement through its broker to repurchase 179,168 shares of its own common stock under its Board of Director authorized share repurchase program announced on December 16, 2014. The repurchase of the shares did not officially settle until January 6, 2015. Total consideration for the stock repurchase was approximately $1.8 million. The Company has historically accounted for all share repurchases as of their settlement dates. Therefore, the Company's assets, liabilities and equity were not affected as of December 31, 2014 for the share repurchase of 179,168 shares. The Company repurchased 307,715 shares at a total cost of approximately $3.2 million under this Stock Repurchase Program through March 9, 2015. The Company has remaining authority to repurchase shares up to an additional $4.8 million under this Stock Repurchase Program prior to its expiration. See Note 12 "Stockholders' Equity" for additional discussion. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2014 | |
Accounting Policies [Abstract] | |
Foreign Currency | Foreign Currency |
Transactions originally denominated in other currencies are remeasured into functional currencies. Increases or decreases in the expected amount of cash flows upon settlement of the transaction caused by changes in exchange rates are recorded as foreign currency transaction gains and losses and are included in other income, net. | |
Except for our operations in Israel, the Company's foreign operations use the local currency as the functional currency, and assets and liabilities are translated from the local currencies into U.S. dollars, the reporting currency of the Company, at the exchange rate prevailing at the balance sheet date. Revenues, expenses and cash flows are translated at weighted average exchange rates for the period to approximate translation at the exchange rate prevailing at the dates those elements are recognized in the financial statements. Translation adjustments resulting from the process of translating the local currency financial statements into U.S. dollars are included in determining comprehensive income or loss. | |
Revenue Recognition | Revenue Recognition |
MRV's Network Equipment segment's major revenue-generating products consist of switches and routers, console management, physical layer products, and fiber optic components. We recognize product revenue, net of sales discounts, returns and allowances, when persuasive evidence of an arrangement exists, delivery has occurred and all significant contractual obligations have been satisfied, the fee is fixed or determinable and collection is considered reasonably assured. Products are generally shipped "FOB shipping point," with no right of return and revenue is recognized upon shipment. If revenue is to be recognized upon delivery, such delivery date is tracked through information provided by the third party shipping company we use to deliver the product to the customer. Network Integration resells third party products. We recognize revenue on these sales on a gross basis, as a principal, because we are the primary obligor in the arrangement, we are exposed to inventory and credit risk, we negotiate the selling prices, and we sell the products as part of a solution in which we provide services. Sales of services and system support are deferred and recognized ratably over the contract period. Sales to end customers with contingencies, such as rights of return, rotation rights, conditional acceptance provisions and price protection, are infrequent and insignificant and are deferred until the contingencies have been satisfied or the contingent period has lapsed. For sales to distributors, we generally recognize revenue when product is sold to the distributor rather than when the product is sold by the distributor to the end user. In certain circumstances, distributors have limited rights of return, including stock rotation rights, and/or are entitled to price protection, where a rebate credit may be provided to the customer if we lower our price on products held in the distributor's inventory. We estimate and establish allowances for expected future product returns and credits. We record a reduction in revenue for estimated future product returns and future credits to be issued to the customer in the period in which revenue is recognized, and for future credits to be issued in relation to price protection at the time we make changes to our distributor price book. We monitor product returns and potential price adjustments on an ongoing basis and estimate future returns and credits based on historical sales returns, analysis of credit memo data, and other factors known at the time of revenue recognition. | |
MRV collects sales taxes from its customers to remit to the applicable taxing authorities. These amounts are not included in revenues, but are included on the balance sheet in accrued liabilities. | |
Amounts billed to customers in a sale transaction related to shipping and handling represent revenues earned for goods provided and are classified as revenue. Shipping and handling costs are classified as cost of sales. | |
MRV generally warrants its products against defects in materials and workmanship for 90 days to three year periods. The estimated cost of warranty obligations and sales returns and other allowances are recognized at the time of revenue recognition based on contract terms and prior claims experience. | |
Accounting for Multiple-Element Arrangements entered into prior to January 1, 2011. Arrangements with customers may include multiple deliverables involving combinations of equipment, services and software. In accordance with ASC 605-25 Multiple-Element Arrangements, the entire fee from the arrangement is allocated to each respective element based on its relative fair value and recognized when revenue recognition criteria for each element is met. Fair value for each element is established based on the sales price charged when the same element is sold separately. If multiple element arrangements include software or software-related elements, we apply the provisions of ASC 985-605 Software to the software and software-related elements, or to the entire arrangement if the software is essential to the functionality of the non-software elements. | |
Accounting for Multiple-Element Arrangements entered into or materially altered after January 1, 2011. We allocate arrangement consideration at the inception of the arrangement to all deliverables using the relative selling price method. The selling price we use for each deliverable is based on (a) vendor-specific objective evidence if available; (b) third-party evidence if vendor-specific objective evidence is not available; or (c) best estimate of selling price if neither vendor-specific objective evidence nor third-party evidence is available. We allocate discounts in the arrangement proportionally on the basis of the selling price of each deliverable. | |
Cash and Cash Equivalents | Cash and Cash Equivalents |
MRV treats highly liquid investments with an original maturity of 90 days or less as cash equivalents. Investments with maturities of less than one year are considered short-term and are included on the balance sheet in restricted time deposits. MRV maintains cash balances and investments in qualified financial institutions, and at various times such amounts are in excess of federal insured limits. | |
Restricted Time Deposits | Restricted Time Deposits |
Restricted time deposits represent investments that are restricted as to withdrawal or use and are primarily in foreign subsidiaries. Restricted time deposits generally secure standby letters of credit, bank lines of credit, or bank loans. When investments in restricted time deposits are directly related to an underlying bank loan and the restricted funds will be used to repay the loans, the investment and the subsequent release of the restricted time deposit are treated as investing activities in the Company's Consolidated Statements of Cash Flows. The other investments in and releases of restricted time deposits are included in investing activities because the funds are invested in certificates of deposit. | |
Concentration of Credit Risk, Accounts Receivable and Allowance for Doubtful Accounts | Concentration of Credit Risk, Accounts Receivable and Allowance for Doubtful Accounts |
Financial instruments that potentially subject the Company to concentrations of credit risk primarily consist of cash and cash equivalents placed with high credit quality institutions and accounts receivable due from customers. Management evaluates the collectability of accounts receivable based on a combination of factors. If management becomes aware of a customer's inability to meet its financial obligations after a sale has occurred, the Company records an allowance to reduce the net receivable to the amount that it reasonably believes to be collectable from the customer. If the financial conditions of MRV's customers were to deteriorate or if economic conditions worsen, additional allowances may be required in the future. Accounts receivable are charged off at the point they are considered uncollectible. | |
Inventories | Inventories |
Inventories are stated at the lower of cost or market and consist of material, labor and overhead. Cost is computed using standard cost, which approximates actual cost, on a first-in, first-out basis. If management estimates that the net realizable value is less than the cost of the inventory, an adjustment to the cost basis is recorded through a charge to cost of sales to reduce the carrying value to net realizable value. At each balance sheet date, management evaluates the ending inventories for excess quantities or obsolescence. This evaluation includes analysis of sales levels and projections of future demand. Based on this evaluation, management writes down the inventory to net realizable value if necessary. At the time of recording the write-down, a new, lower cost basis for that inventory is established, and subsequent changes in facts and circumstances do not result in the restoration of, or increase in, that newly established cost basis. | |
Property and Equipment | Depreciation is computed using the straight line method over the estimated useful lives of the related assets |
Property and Equipment | |
Property and equipment are stated at cost. Maintenance and repairs are charged to expense as incurred and the costs of additions and betterments that increase the useful lives of the assets are capitalized. When property or equipment are disposed of, the cost and related accumulated depreciation and amortization are removed from the accounts and any gain or loss is included in other income, net, in the accompanying Consolidated Statements of Operations. | |
Intangible Assets | Intangible Assets |
Intangible assets with indefinite lives are not amortized, but instead are measured for impairment at least annually, or when events indicate that impairment exists. MRV's annual impairment review date is October 1. Reviews for impairment are performed at each of MRV's reporting units. Intangible assets that are determined to have definite lives are amortized over their useful lives. | |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets |
MRV evaluates its long-term tangible assets, such as property and equipment and other long-term assets, for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may be impaired. The Company takes into consideration events or changes such as product discontinuance, plant closures, product dispositions and history of operating losses or other changes in circumstances to indicate that the carrying amount may not be recoverable. The carrying value of an asset is considered impaired when the anticipated undiscounted cash flow from such asset is less than its carrying value. In that event, a loss is recognized based on the amount by which the carrying value exceeds the estimated fair value. Fair value is determined using the anticipated cash flows discounted at a rate based on our weighted average cost of capital, which represents the blended after-tax costs of debt and equity. | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments |
MRV's financial instruments including cash and cash equivalents, restricted time deposits, accounts receivable, other receivables, accounts payable, accrued liabilities and short-term debt obligations are carried at cost, which approximates their fair value. The fair values of accounts receivable and accounts payable approximate their carrying amounts due to their short-term nature. Short-term debt obligations have variable interest rates, which reset frequently; therefore, their carrying values do not materially differ from their calculated aggregate fair value. | |
The Company follows a framework for measuring fair value, using a three-level hierarchy that prioritizes the use of observable inputs. The fair value hierarchy is divided into three levels based on the source of inputs as follows: Level 1 - Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access; Level 2 - Valuations for which all significant inputs are observable, either directly or indirectly, other than level 1 inputs for similar instruments; Level 3 - Valuations based on inputs that are unobservable and significant to the overall fair value measurement. | |
All of MRV's financial assets and a majority of its financial liabilities that are measured at fair value are measured using the unadjusted quoted prices in active markets for identical assets or liabilities that are accessible at the measurement date. Under this standard, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the “exit price”) in an orderly transaction between market participants at the measurement date. Management has not elected the fair value for non-financial assets and liabilities. | |
Other Current Assets | Other Current Assets |
Other current assets include prepaid expenses that will be consumed within a twelve month period. | |
Liability for Severance Pay | Liability for Severance Pay |
Under the laws of certain foreign jurisdictions, MRV is obligated to make severance payments to employees in those foreign jurisdictions on the basis of factors such as each employee's current salary and length of employment. The liability for severance pay is calculated as the amount that the Company would be required to pay if every employee were to separate as of the end of the period, and is recorded as part of other long-term liabilities. | |
Cost of Sales | Cost of Sales |
Cost of sales includes material, depreciation on fixed assets used in the manufacturing process, shipping costs, direct labor and overhead. | |
Product Development and Engineering | Product Development and Engineering |
Product development and engineering costs are charged to expense as incurred. | |
Software Development Costs | Software Development Costs |
Development costs related to software products for sale or to be included in our products are expensed as incurred until the technological feasibility of the product has been established. Technological feasibility occurs when a working model is completed. After technological feasibility is established, additional costs are capitalized. We believe that our process for internally developed software is essentially completed concurrent with the establishment of technological feasibility, and, accordingly, no software development costs for internally developed software have been capitalized to date. | |
Internal Use Software Development Costs | |
Any software that we acquire, internally develop, or modify solely to meet our internal needs, and for which we have no substantive plan to market the software externally, is capitalized during the development phase. Costs incurred during the research phase are expensed as incurred. During the year ended December 31, 2013, we implemented a new enterprise-wide software for which we capitalized the development costs. The costs of which are included in property and equipment on the Consolidated Balance Sheets. | |
Sales and Marketing | Sales and Marketing |
Sales and marketing costs are charged to expense as incurred. | |
Income Taxes | Income Taxes |
We account for income taxes using the liability method which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined based on the differences between the financial statements and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. | |
We record net deferred tax assets to the extent we believe these assets will more likely than not be realized. In making such determination, we consider all available positive and negative evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income, tax planning strategies and recent financial operations. In the event we were to determine that we would be able to realize our deferred income tax assets in the future in excess of their net recorded amount, we would make an adjustment to the valuation allowance which would reduce the provision for income taxes. | |
We recognize interest and penalties related to unrecognized tax benefits within the income tax expense line in the accompanying consolidated statement of operations if the sustainability of the uncertain tax position does not meet the "more likely than not" recognition threshold based on its technical merits. Accrued interest and penalties are included within the related tax liability line in the consolidated balance sheet. | |
Net Income (Loss) Per Share | Net Income (Loss) Per Share |
Basic net income (loss) per share is computed using the weighted average number of shares of common stock ("Common Stock") outstanding, including restricted shares which, although they are legally outstanding and have voting rights, are subject to vesting and are treated as common stock equivalents in calculating basic net income (loss) per share. Diluted net income (loss) per share is computed using the weighted average number of shares of Common Stock outstanding and dilutive potential shares of Common Stock from stock options outstanding during the period. Diluted shares outstanding include the dilutive effect of in-the-money options, which is calculated based on the average share price for each period using the treasury stock method. | |
Employee equity share options, non-vested shares and similar equity instruments granted by MRV, are treated as potential shares of common stock outstanding in computing diluted net income per share. Under the treasury stock method, the amount the employee must pay for exercising stock options, the amount of compensation cost for future service not yet recognized, and the amount of income tax benefits that would be realized and recorded in additional paid-in capital if the deduction for the award would reduce income taxes payable are assumed to be used to repurchase shares. | |
Share-Based Compensation | Share-Based Compensation |
The Company accounts for stock-based payment awards at fair value at the grant date. The fair value of stock options and warrants are determined using the Black-Scholes valuation model. The assumptions used in calculating the fair value of share-based payment awards represent MRV's best estimates. Those estimates may be impacted by certain variables including stock price volatility, employee stock option exercise behaviors, additional stock option grants, estimates of forfeitures, and the related income tax impact. | |
New Accounting Pronouncements | Accounting Standards Recently Adopted |
In July 2013, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2013-11, "Income Taxes - Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carry Forward, a Similar Tax Loss, or a Tax Credit Carry Forwards Exists" ("ASU 2013-11"). ASU 2013-11 requires entities to present the unrecognized tax benefits in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss or a tax credit carryforward. The Company adopted this standard effective January 1, 2014. The Company's adoption of ASU 2013-11 did not have a material impact on the consolidated financial statements and footnote disclosures. | |
In November 2014, the FASB issued ASU No. 2014-17, "Pushdown Accounting" ("ASU 2014-17"). ASU 2014-17 provides guidance on determining and at what threshold pushdown accounting should be established in an acquired entity's separate financial statements. The amendments also provide that an acquired entity may elect to apply pushdown accounting in its separate financial statements upon a change-in-control event in which an acquirer obtains control of the acquired entity. The amendments in ASU 2014-17 are effective as of November 18, 2014. The Company's adoption of ASU 2014-17 did not have a material impact on the consolidated financial statements and footnote disclosures. | |
Recently Issued Accounting Standards Not Yet Effective | |
In May 2014, the FASB issued ASU No. 2014-09, "Revenue from Contracts with Customers (Topic 606)," ("ASU 2014-09"). ASU 2014-09 outlines a new, single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes current revenue recognition guidance, including industry-specific guidance. This new revenue recognition model provides a five-step analysis in determining when and how revenue is recognized. The new model will require revenue recognition to depict the transfer of promised goods or services to customers in an amount that reflects the consideration a company expects to receive in exchange for those goods or services. The pronouncement is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016, and early adoption is not permitted. The amendments may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of initial application. Management is currently evaluating the impact that adopting this new accounting guidance will have on its consolidated financial statements and footnote disclosures. | |
In June 2014, the FASB issued ASU No. 2014-12, “Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period” (“ASU 2014-12”). The amendments in ASU 2014-12 require that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. A reporting entity should apply existing guidance in Accounting Standards Codification Topic No. 718, “Compensation - Stock Compensation” (“ASC 718”), as it relates to awards with performance conditions that affect vesting to account for such awards. The amendments in ASU 2014-12 are effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. Early adoption is permitted. Entities may apply the amendments in ASU 2014-12 either: (i) prospectively to all awards granted or modified after the effective date; or (ii) retrospectively to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented in the financial statements and to all new or modified awards thereafter. Management is currently evaluating the potential impact of the adoption of the new guidance, however does not expect the adoption of this new guidance to have a material impact on its consolidated financial statements and footnote disclosures. | |
In August 2014, the FASB issued ASU No. 2014-15, "Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern" ("ASU 2014-15"). ASU 2014-15 provides guidance on management’s responsibility in evaluating whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. ASU 2014-15 is effective for the Company in its fourth quarter of fiscal 2017 with early adoption permitted. Management is currently evaluating the potential impact of the adoption of the new guidance, which may impact our disclosures at the time of adoption. | |
In January 2015, the FASB issued ASU No. 2015-01, "Income Statement - Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items" (“ASU 2015-01”). ASU 2015-01 eliminates the concept of an extraordinary item from U.S. generally accepted accounting principles ("GAAP"). As a result, an entity will no longer be required to segregate extraordinary items from the results of ordinary operations, to separately present an extraordinary item on its income statement, net of tax, after income from continuing operations or to disclose income taxes and earnings-per-share data applicable to an extraordinary item. However, ASU 2015-01 will still retain the presentation and disclosure guidance for items that are unusual in nature and occur infrequently. ASU 2015-01 will be effective for the Company in its first quarter of fiscal 2017. Management is currently evaluating the potential impact of the adoption of the new guidance, however does not expect the adoption of this new guidance to have a material impact on its consolidated financial statements and footnote disclosures. | |
Use of Estimates | Use of Estimates |
The preparation of these consolidated financial statements require management to make certain estimates, assumptions and judgments that can affect the reported amounts of assets and liabilities, revenue and expenses, and related disclosure of contingent assets and liabilities as of the date of the financial statements, and the reported amounts of revenues and expenses during the periods presented. On an ongoing basis, management evaluates its significant estimates and assumptions, including those related to revenue recognition, stock-based compensation, inventory valuation, accrued warranty, allowance for doubtful accounts, and accounting for income taxes. Management bases its estimates on historical and anticipated results, trends and on various other assumptions that it believes are reasonable under the circumstances, including assumptions as to future events. These estimates form the basis for making assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. By their nature, estimates are subject to an inherent degree of uncertainty. Actual results could differ materially from those estimates. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | |||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||
Accounting Policies [Abstract] | ||||||||||||||||||
Schedule of Allowance for Doubtful Accounts | The following table summarizes the changes in the allowance for doubtful accounts (in thousands): | |||||||||||||||||
Year ended: | Balance at | Charged to | Deductions | Effect of | Balance at | |||||||||||||
beginning | expense | foreign | end of | |||||||||||||||
of period | currency | period | ||||||||||||||||
exchange | ||||||||||||||||||
rates | ||||||||||||||||||
December 31, 2012 | $ | 1,662 | 116 | (72 | ) | 26 | $ | 1,732 | ||||||||||
December 31, 2013 | $ | 1,732 | 580 | (167 | ) | 37 | $ | 2,182 | ||||||||||
December 31, 2014 | $ | 2,182 | 95 | (393 | ) | (126 | ) | $ | 1,758 | |||||||||
Schedule of Inventory, Current | Inventories, net of reserves, consisted of the following (in thousands): | |||||||||||||||||
December 31: | 2014 | 2013 | ||||||||||||||||
Raw materials | $ | 3,663 | $ | 5,723 | ||||||||||||||
Work-in process | 641 | 1,121 | ||||||||||||||||
Finished goods | 17,379 | 16,137 | ||||||||||||||||
Total inventories | $ | 21,683 | $ | 22,981 | ||||||||||||||
Property, Plant and Equipment | Property and equipment, at cost, consisted of the following (in thousands): | |||||||||||||||||
December 31: | 2014 | 2013 | ||||||||||||||||
Machinery and equipment | $ | 7,603 | $ | 7,448 | ||||||||||||||
Computer hardware and software | 6,650 | 6,653 | ||||||||||||||||
Leasehold improvements | 2,651 | 2,354 | ||||||||||||||||
Furniture and fixtures | 1,462 | 1,411 | ||||||||||||||||
Construction in progress | 181 | 413 | ||||||||||||||||
Total property and equipment, at cost | 18,547 | 18,279 | ||||||||||||||||
Less — accumulated depreciation and amortization | (13,657 | ) | (12,724 | ) | ||||||||||||||
Total property and equipment | $ | 4,890 | $ | 5,555 | ||||||||||||||
Depreciation is computed using the straight line method over the estimated useful lives of the related assets, as follows: | ||||||||||||||||||
Life (years) | ||||||||||||||||||
Asset category | From | To | ||||||||||||||||
Machinery and equipment | 2 | 5 | ||||||||||||||||
Computer hardware and software | 3 | 7 | ||||||||||||||||
Leasehold improvements | 1 | 10 | ||||||||||||||||
Furniture and fixtures | 3 | 15 | ||||||||||||||||
Schedule of Cash and Cash Equivalents | Cash equivalents are included in the consolidated balance sheets as follows (in thousands): | |||||||||||||||||
Cost | Fair Value | |||||||||||||||||
31-Dec-14 | $ | 10,606 | $ | 10,606 | ||||||||||||||
31-Dec-13 | $ | 14,001 | $ | 14,001 | ||||||||||||||
Discontinued_Operations_Tables
Discontinued Operations (Tables) | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Interdata [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures | The statements of operations for the year ended December 31, 2012 that would have been included if Pedrena had not been sold consisted of (in thousands): | |||
Year ended December 31: | 2012 | |||
Revenue | $ | 27,602 | ||
Income (loss) before income taxes | (3,175 | ) | ||
Provision for income taxes | (244 | ) | ||
Income (loss) from operations of discontinued operations | (2,931 | ) | ||
Gain on sale of Interdata, net of income taxes of $623 | 5,542 | |||
Net income from discontinued operations, net of income taxes | $ | 2,611 | ||
Schedule Of Intercompany Transactions Previously Eliminated | The amount of intercompany revenues that were previously eliminated from the Company's financial statements in consolidation consisted of (in thousands): | |||
Year ended December 31: | 2012 | |||
Revenues attributed to intercompany activities | $ | 4,249 | ||
Alcadon [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures | The statements of operations for the year ended December 31, 2012 that would have been included if Alcadon had not been sold consisted of (in thousands): | |||
Year ended December 31: | 2012 | |||
Revenue | $ | 24,320 | ||
Loss before income taxes | (1,088 | ) | ||
Provision for income taxes | 643 | |||
Loss from operations of discontinued operations | (1,731 | ) | ||
Gain on sale of Alcadon, net of income taxes of $1,341 | 6,182 | |||
Net income from discontinued operations, net of income taxes | $ | 4,451 | ||
Schedule Of Intercompany Transactions Previously Eliminated | The amount of intercompany revenues that were previously eliminated from the Company's financial statements in consolidation consisted of (in thousands): | |||
Year ended December 31: | 2012 | |||
Revenues attributed to intercompany activities | $ | 3,931 | ||
CES [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures | The statements of operations for the year ended December 31, 2012 that would have been included if CES had not been sold consisted of (in thousands): | |||
Year ended December 31: | 2012 | |||
Revenue | $ | 6,829 | ||
Income (loss) before income taxes | (135 | ) | ||
Provision for income taxes | 556 | |||
Income (loss) from operations of discontinued operations | (691 | ) | ||
Gain on sale of CES, net of income taxes of $1,668 | 6,470 | |||
Net income from discontinued operations, net of income taxes | $ | 5,779 | ||
Goodwill_and_Other_Intangibles1
Goodwill and Other Intangibles (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||
Schedule of Goodwill | The following table summarizes the changes in the Company's goodwill accounts for the year ended December 31, 2012 (in thousands): | ||||||||||||
Network Integration | |||||||||||||
Goodwill | $ | 2,831 | |||||||||||
Accumulated impairment losses and amortization | (1,760 | ) | |||||||||||
Balance as of December 31, 2011 | 1,071 | ||||||||||||
Impairment of Tecnonet goodwill | (1,055 | ) | |||||||||||
Foreign currency translation adjustment, net | (16 | ) | |||||||||||
Goodwill | 2,831 | ||||||||||||
Accumulated impairment losses and amortization | (2,831 | ) | |||||||||||
Balance as of December 31, 2012 | $ | — | |||||||||||
Schedule of Fair Value of Goodwill, Tested for Impairment, Nonrecurring Basis | During the year ended December 31, 2012, the Company concluded that there was an indication of impairment to Tecnonet S.p.A, our Italian subsidiary. Below is a description of the Level 3 inputs used: | ||||||||||||
Quantitative Information about Level 3 Fair Value Measurements | |||||||||||||
($ in thousands) | |||||||||||||
Fair Value at September 30, 2012 | Valuation Technique | Unobservable Input | Range (Median) | ||||||||||
Equity investment in Tecnonet | $ | 20,100 | Income approach-discounted cash flow ("DCF") | Weighted average cost of capital | 19.8%-25.8% (22.8%) | ||||||||
Long term growth rate | 1.5%-4.5% (3.0%) | ||||||||||||
During the year ended December 31, 2012, the Company concluded that there was an indication of impairment to Alcadon-MRV AB ("Alcadon"), our Scandinavian subsidiary, which was subsequently sold in October 2012. Below is a description of the Level 3 inputs used: | |||||||||||||
Quantitative Information about Level 3 Fair Value Measurements | |||||||||||||
($ in thousands) | |||||||||||||
Fair Value at June 30, 2012 | Valuation Technique | Unobservable Input | Range (Median) | ||||||||||
Equity investment in Alcadon | $ | 13,100 | DCF | Weighted average cost of capital | 34.3%-40.3% (37.3%) | ||||||||
Long term growth rate | 1.5%-4.5% (3.0%) | ||||||||||||
$ | 11,900 | Non-binding offer from third party | N/A | $ | 11,900 | ||||||||
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | The following table illustrates the estimated future amortization expense of intangible assets as of December 31, 2014 (in thousands): | ||||||||||||
Year ending December 31, | Estimated Amortization Expense | ||||||||||||
2015 | $ | 167 | |||||||||||
2016 | 328 | ||||||||||||
2017 | 280 | ||||||||||||
2018 | 214 | ||||||||||||
2019 | 214 | ||||||||||||
Thereafter | 161 | ||||||||||||
Total | $ | 1,364 | |||||||||||
Accrued_Liabilities_Tables
Accrued Liabilities (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Payables and Accruals [Abstract] | |||||||||
Accrued liabilities | Accrued liabilities consisted of the following (in thousands): | ||||||||
December 31: | 2014 | 2013 | |||||||
Payroll and related | $ | 9,068 | $ | 9,537 | |||||
Professional fees | 1,441 | 1,400 | |||||||
Non-income taxes | 1,544 | 3,223 | |||||||
Product warranty | 616 | 578 | |||||||
Deferred rent | 160 | 278 | |||||||
Derivative litigation settlement | — | 1,241 | |||||||
Other | 1,716 | 3,206 | |||||||
Total accrued liabilities | $ | 14,545 | $ | 19,463 | |||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Schedule of income before income tax, domestic and foreign | For financial reporting purposes, loss before provision for income taxes includes the following (in thousands): | ||||||||||||
Years ended December 31: | 2014 | 2013 | 2012 | ||||||||||
United States | $ | (7,993 | ) | $ | (4,096 | ) | $ | (11,018 | ) | ||||
Foreign | 141 | (1,218 | ) | 2,830 | |||||||||
Loss before provision for income taxes | $ | (7,852 | ) | $ | (5,314 | ) | $ | (8,188 | ) | ||||
Provision for income taxes | The provision (benefit) for income taxes consists of the following (in thousands): | ||||||||||||
Years ended December 31: | 2014 | 2013 | 2012 | ||||||||||
Current: | |||||||||||||
State | $ | (89 | ) | $ | (56 | ) | $ | 300 | |||||
Foreign | 2,470 | 1,621 | 1,664 | ||||||||||
Total current | 2,381 | 1,565 | 1,964 | ||||||||||
Deferred: | |||||||||||||
Federal | — | — | (3,019 | ) | |||||||||
State | — | — | (614 | ) | |||||||||
Foreign | 1,922 | (57 | ) | 656 | |||||||||
Total deferred | 1,922 | (57 | ) | (2,977 | ) | ||||||||
Provision (benefit) for income taxes | $ | 4,303 | $ | 1,508 | $ | (1,013 | ) | ||||||
Schedule of effective income tax rate reconciliation | The income tax provision differs from the amount computed by applying the federal statutory income tax rate as follows: | ||||||||||||
Years ended December 31: | 2014 | 2013 | 2012 | ||||||||||
Income tax provision, at statutory federal rate | 34 | % | 34 | % | 34 | % | |||||||
State and local income taxes, net of federal income taxes effect | 6 | 5 | 6 | ||||||||||
Credits | — | — | 5 | ||||||||||
Permanent differences | (10 | ) | (13 | ) | (7 | ) | |||||||
Goodwill impairment | — | — | (4 | ) | |||||||||
Fiberxon settlement | — | — | — | ||||||||||
Foreign taxes at rates different than domestic rates | (4 | ) | (7 | ) | (1 | ) | |||||||
Change in valuation allowance | (76 | ) | (49 | ) | (20 | ) | |||||||
Change in reserve for uncertain tax positions | — | (3 | ) | — | |||||||||
Other adjustments | (5 | ) | 5 | — | |||||||||
Effective tax rate | (55 | )% | (28 | )% | 13 | % | |||||||
Components of deferred income taxes | The components of deferred income taxes consist of the following (in thousands): | ||||||||||||
December 31: | 2014 | 2013 | |||||||||||
Allowance for doubtful accounts | $ | 389 | $ | 415 | |||||||||
Inventory reserve | 2,814 | 1,954 | |||||||||||
Accrued liabilities | 2,846 | 2,694 | |||||||||||
Other | 5,446 | 5,791 | |||||||||||
11,495 | 10,854 | ||||||||||||
Valuation allowance | (10,960 | ) | (9,635 | ) | |||||||||
Net current deferred income tax assets | 535 | 1,219 | |||||||||||
Net operating losses | 91,085 | 88,086 | |||||||||||
Depreciation and amortization | 370 | 439 | |||||||||||
Capital loss carry forwards | 38,755 | 38,951 | |||||||||||
130,210 | 127,476 | ||||||||||||
Valuation allowance | (128,105 | ) | (123,782 | ) | |||||||||
Net long-term deferred income tax asset | 2,105 | 3,694 | |||||||||||
Total deferred income taxes | $ | 2,640 | $ | 4,913 | |||||||||
Summary of valuation allowance | The change in the valuation allowance is as follows (in millions): | ||||||||||||
December 31: | 2014 | 2013 | 2012 | ||||||||||
Balance at beginning of period | $ | (133.4 | ) | $ | (138.2 | ) | $ | (158.8 | ) | ||||
(Increase) decrease in valuation allowance | (5.6 | ) | 4.8 | 20.6 | |||||||||
Balance at end of period | $ | (139.0 | ) | $ | (133.4 | ) | $ | (138.2 | ) | ||||
Schedule of unrecognized tax benefits roll forward | A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows (in thousands): | ||||||||||||
December 31: | 2014 | 2013 | 2012 | ||||||||||
Balance at beginning of period | $ | (134 | ) | $ | — | $ | — | ||||||
Reductions related to prior year positions | 34 | (134 | ) | — | |||||||||
Balance at end of period | $ | (100 | ) | $ | (134 | ) | $ | — | |||||
Other_longterm_liabilities_Tab
Other long-term liabilities (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Other Liabilities Disclosure [Abstract] | |||||||||
Other Long-term Liabilities | Other long-term liabilities consisted of the following (in thousands): | ||||||||
December 31: | 2014 | 2013 | |||||||
Liability for severance pay | $ | 3,591 | $ | 3,658 | |||||
Long-term portion of deferred revenue | 1,330 | 1,444 | |||||||
Other | 350 | 134 | |||||||
Total other long-term liabilities | $ | 5,271 | $ | 5,236 | |||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Commitments and Contingencies Disclosure [Abstract] | ||||
Aggregate minimum annual lease payments under leases in effect | Following are the aggregate minimum annual lease payments under leases in effect as of December 31, 2014 (in thousands): | |||
Year ending December 31, | Operating leases | |||
2015 | $ | 2,302 | ||
2016 | 1,429 | |||
2017 | 1,072 | |||
2018 | 598 | |||
2019 | 413 | |||
Thereafter | 118 | |||
Total | $ | 5,932 | ||
Product_Warranty_Tables
Product Warranty (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Product Warranties Disclosures [Abstract] | |||||||||||||||||||||
Activity related to the product warranty liability | The following table summarizes the activity related to the product warranty liability (in thousands): | ||||||||||||||||||||
Balance at beginning of period | Cost of warranty claims | Accruals for product warranties | Foreign currency translation adjustment | Balance at | |||||||||||||||||
end of | |||||||||||||||||||||
period | |||||||||||||||||||||
31-Dec-12 | $ | 1,126 | $ | (150 | ) | $ | 30 | $ | — | $ | 1,006 | ||||||||||
31-Dec-13 | $ | 1,006 | $ | (321 | ) | $ | (107 | ) | $ | — | $ | 578 | |||||||||
31-Dec-14 | $ | 578 | $ | (17 | ) | $ | 55 | $ | — | $ | 616 | ||||||||||
ShareBased_Compensation_Tables
Share-Based Compensation (Tables) | 12 Months Ended | |||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||
Impact on results of operations of recording share-based compensation | The following table summarizes the impact on MRV's results of operations of recording share-based compensation for the years ended December 31, 2014, 2013 and 2012 (in thousands): | |||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||
Cost of goods sold | $ | 116 | $ | 98 | $ | 39 | ||||||||||||
Product development and engineering | 166 | 66 | 40 | |||||||||||||||
Selling, general and administrative | 677 | 549 | 1,050 | |||||||||||||||
Total share-based compensation expense (1) | $ | 959 | $ | 713 | $ | 1,129 | ||||||||||||
-1 | Income tax benefits realized from stock option exercises and similar awards were immaterial in all periods | |||||||||||||||||
Restricted stock awards | The following table summarizes the activity that relates to the Company's restricted stock awards for the years ended December 31, 2014, 2013 and 2012 (share amounts): | |||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||
Non-vested restricted stock awards, January 1, 2014 | 81,193 | 37,514 | 5,148 | |||||||||||||||
Granted | 100,355 | 91,388 | 39,326 | |||||||||||||||
Vested | -39,238 | -37,428 | -5,148 | |||||||||||||||
Forfeited | -39,276 | -10,281 | -1,812 | |||||||||||||||
Non-vested restricted stock awards, December 31, 2014 | 103,034 | 81,193 | 37,514 | |||||||||||||||
Weighted average assumptions used for estimating the fair value of options granted | The following weighted average assumptions were used for estimating the fair value of options granted during the years ended December 31, 2014, 2013 and 2012: | |||||||||||||||||
Year ended December 31, | 2014 | 2013 | 2012 | |||||||||||||||
Risk-free interest rate | 2 | % | 1.2 | % | 0.8 | % | ||||||||||||
Dividend yield (1) | — | — | — | |||||||||||||||
Volatility | 50 | % | 52 | % | 89 | % | ||||||||||||
Expected life (in years) | 5.9 | 5.7 | 5.5 | |||||||||||||||
-1 | As the Company does not pay a dividend on a regular basis, and dividends paid in the past have been special in nature, a dividend rate of zero was used. | |||||||||||||||||
Summary of nonvested options | A summary of the Company's non-vested options as of December 31, 2014: | |||||||||||||||||
Shares | Weighted average | |||||||||||||||||
under option | exercise price | |||||||||||||||||
Non-vested options outstanding, January 1, 2014 | 89,480 | $ | 12.65 | |||||||||||||||
Granted | 198,647 | $ | 14.11 | |||||||||||||||
Vested | (79,805 | ) | $ | 13.77 | ||||||||||||||
Canceled, forfeited or adjusted | (66,783 | ) | $ | 13.36 | ||||||||||||||
Non-vested outstanding, December 31, 2014 | 141,539 | $ | 13.73 | |||||||||||||||
Significant ranges of outstanding and exercisable options | The following table summarizes significant ranges of outstanding and exercisable options at December 31, 2014: | |||||||||||||||||
Range of Exercise prices | Options | Weighted | Weighted | Options | Weighted | |||||||||||||
outstanding | average | average | exercisable | average | ||||||||||||||
as of | remaining | exercise | as of | exercise | ||||||||||||||
December 31, | contractual | price | December 31, | price of | ||||||||||||||
2014 | life (years) | 2014 | exercisable | |||||||||||||||
options | ||||||||||||||||||
$9.10 - $10.55 | 57,787 | 7.02 | $ | 9.8 | 40,148 | $ | 9.65 | |||||||||||
$13.32 - $13.60 | 43,092 | 8.24 | $ | 13.44 | 10,204 | $ | 13.6 | |||||||||||
$14.51 - $14.51 | 99,234 | 8.43 | $ | 14.51 | 8,409 | $ | 14.51 | |||||||||||
$15.53 - $23.80 | 27,849 | 3.36 | $ | 23.06 | 27,849 | $ | 23.06 | |||||||||||
$25.00 - $25.00 | 87,500 | 0.93 | $ | 25 | 87,500 | $ | 25 | |||||||||||
$27.60 - $33.20 | 44,902 | 3.09 | $ | 28.69 | 44,902 | $ | 28.69 | |||||||||||
$34.60 - $52.60 | 44,211 | 1.75 | $ | 47.12 | 44,024 | $ | 47.17 | |||||||||||
$57.40 - $64.80 | 1,475 | 1.34 | $ | 62.21 | 1,475 | $ | 62.21 | |||||||||||
$73.20 - $73.20 | 500 | 1.33 | $ | 73.2 | 500 | $ | 73.2 | |||||||||||
$79.20 - $79.20 | 1,400 | 1.12 | $ | 79.2 | 1,400 | $ | 79.2 | |||||||||||
$9.10 - $79.20 | 407,950 | 4.89 | $ | 22.12 | 266,411 | $ | 26.58 | |||||||||||
Option share-based payment award activity | The following table summarizes certain stock option exercise activity during the periods presented (in thousands): | |||||||||||||||||
Year ended December 31, | 2014 | 2013 | 2012 | |||||||||||||||
Total intrinsic value of stock options exercised | $ | 17 | $ | — | $ | — | ||||||||||||
Cash received from stock options exercised | $ | 72 | $ | — | $ | — | ||||||||||||
The following table summarizes option share-based payment award activity for the one-year period ended December 31, 2014: | ||||||||||||||||||
Shares | Weighted average | Weighted average | Aggregate | |||||||||||||||
under option | exercise price | remaining contractual term | intrinsic value | |||||||||||||||
(in years) | ||||||||||||||||||
Outstanding, January 1, 2014 | 349,454 | $ | 28.15 | |||||||||||||||
Granted | 198,647 | $ | 14.11 | |||||||||||||||
Exercised | (6,812 | ) | $ | 10.55 | ||||||||||||||
Canceled, forfeited or adjusted | (133,339 | ) | $ | 26.58 | ||||||||||||||
Outstanding, December 31, 2014 | 407,950 | $ | 22.12 | 4.89 | $ | 22,479 | ||||||||||||
Vested and expected to vest, December 31, 2014 | 383,752 | $ | 22.66 | 4.6 | $ | 22,065 | ||||||||||||
Exercisable, December 31, 2014 | 266,411 | $ | 26.58 | 2.56 | $ | 20,594 | ||||||||||||
Segment_Reporting_and_Geograph1
Segment Reporting and Geographic Information (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Segment Reporting [Abstract] | |||||||||||||
Revenues by segment, including intersegment revenues | The following table summarizes revenues by segment, including intersegment revenues (in thousands): | ||||||||||||
Years Ended December 31, | 2014 | 2013 | 2012 | ||||||||||
Network Equipment segment | $ | 86,705 | $ | 90,711 | $ | 87,727 | |||||||
Network Integration segment | 85,518 | 75,636 | 72,421 | ||||||||||
Before intersegment adjustments | 172,223 | 166,347 | 160,148 | ||||||||||
Intersegment adjustments | (167 | ) | (146 | ) | (8,487 | ) | |||||||
Total | $ | 172,056 | $ | 166,201 | $ | 151,661 | |||||||
External revenue and long-lived assets by geographical region | The following table summarizes external revenue by geographic region (in thousands): | ||||||||||||
Years Ended December 31, | 2014 | 2013 | 2012 | ||||||||||
United States | $ | 51,036 | $ | 55,071 | $ | 47,250 | |||||||
Americas (Excluding the U.S.) | 1,507 | 4,200 | 6,008 | ||||||||||
Europe | 105,996 | 98,843 | 88,868 | ||||||||||
Asia Pacific | 13,517 | 8,087 | 9,521 | ||||||||||
Other regions | — | — | 14 | ||||||||||
Total | $ | 172,056 | $ | 166,201 | $ | 151,661 | |||||||
Revenue from external customers attributed to Italy totaled $86.3 million, $76.6 million, and $73.1 million for the years ended December 31, 2014, 2013 and 2012 respectively. No other individual foreign country accounted for more than 10% of consolidated revenue. The Company's revenue by geographical area is based on the customer's country of domicile. | |||||||||||||
The following table summarizes long-lived assets, consisting of property and equipment, by geographic region (in thousands): | |||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||
Americas | $ | 3,078 | $ | 3,326 | |||||||||
Europe | 1,786 | 2,194 | |||||||||||
Asia Pacific | 26 | 35 | |||||||||||
Total | $ | 4,890 | $ | 5,555 | |||||||||
Statement of Operations information by business segment | The following table provides selected Statement of Operations information by business segment (in thousands): | ||||||||||||
Years ended December 31, | 2014 | 2013 | 2012 | ||||||||||
Gross profit | |||||||||||||
Network Equipment segment | $ | 42,601 | $ | 47,069 | $ | 43,325 | |||||||
Network Integration segment | 13,176 | 10,917 | 11,832 | ||||||||||
Before intersegment adjustments | 55,777 | 57,986 | 55,157 | ||||||||||
Corporate unallocated and intersegment adjustments (1) | 1 | 7 | (5 | ) | |||||||||
Total | $ | 55,778 | $ | 57,993 | $ | 55,152 | |||||||
Depreciation expense | |||||||||||||
Network Equipment segment | $ | 1,759 | $ | 1,417 | $ | 1,022 | |||||||
Network Integration segment | 204 | 219 | 234 | ||||||||||
Corporate | 134 | 197 | 192 | ||||||||||
Total | $ | 2,097 | $ | 1,833 | $ | 1,448 | |||||||
Operating income (loss) | |||||||||||||
Network Equipment segment | $ | (7,074 | ) | $ | (1,699 | ) | $ | 1,096 | |||||
Network Integration segment | 5,562 | 4,620 | 4,514 | ||||||||||
Before intersegment adjustments | (1,512 | ) | 2,921 | 5,610 | |||||||||
Corporate unallocated operating loss and adjustments (1) | (6,238 | ) | (7,302 | ) | (15,457 | ) | |||||||
Total operating income (loss) | $ | (7,750 | ) | $ | (4,381 | ) | $ | (9,847 | ) | ||||
Provision (benefit) for income taxes | |||||||||||||
Network Equipment segment | $ | 1,873 | $ | (38 | ) | $ | (2,468 | ) | |||||
Network Integration segment | 2,430 | 1,546 | 1,455 | ||||||||||
Total | $ | 4,303 | $ | 1,508 | $ | (1,013 | ) | ||||||
(1) Adjustments reflect the elimination of intersegment revenue and profit in inventory. | |||||||||||||
Balance Sheet and Statement of Cash Flow information by business segment | The following tables provide selected Balance Sheet and Statement of Cash Flow information by business segment (in thousands): | ||||||||||||
December 31: | 2014 | 2013 | |||||||||||
Additions to Fixed Assets | |||||||||||||
Network Equipment segment | $ | 1,230 | $ | 3,329 | |||||||||
Network Integration segment | 178 | 104 | |||||||||||
Corporate | 83 | 229 | |||||||||||
Total | $ | 1,491 | $ | 3,662 | |||||||||
Total Assets | |||||||||||||
Network Equipment segment | $ | 40,664 | $ | 48,955 | |||||||||
Network Integration segment | 56,921 | 54,625 | |||||||||||
Corporate and intersegment eliminations | 16,987 | 24,367 | |||||||||||
Total | $ | 114,572 | $ | 127,947 | |||||||||
Other_Income_Net_Tables
Other Income, Net (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Other Income and Expenses [Abstract] | |||||||||||||
Summary of other income, net | Following is a summary of other income, net (in thousands): | ||||||||||||
Years ended December 31: | 2014 | 2013 | 2012 | ||||||||||
Interest income | $ | 7 | $ | 14 | $ | 7 | |||||||
Gain (loss) on foreign currency transactions | 473 | (336 | ) | (316 | ) | ||||||||
Other, net | (253 | ) | (85 | ) | 255 | ||||||||
Total | $ | 227 | $ | (407 | ) | $ | (54 | ) | |||||
Quarterly_Financial_Data_Unaud1
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||
Schedule of Quarterly Financial Information | The following tables summarize MRV's Consolidated Statements of Operations for 2014 (in thousands): | ||||||||||||||||
Three months ended: | March 31, | June 30, | September 30, | December 31, | |||||||||||||
2014 | 2014 | 2014 | 2014 | ||||||||||||||
Revenue | $ | 42,318 | $ | 43,124 | $ | 43,170 | $ | 43,444 | |||||||||
Cost of sales | 29,067 | 28,342 | 28,454 | 30,415 | |||||||||||||
Gross profit | 13,251 | 14,782 | 14,716 | 13,029 | |||||||||||||
Operating expenses: | |||||||||||||||||
Product development and engineering | 5,578 | 5,392 | 5,060 | 4,803 | |||||||||||||
Selling, general and administrative | 11,522 | 10,516 | 10,080 | 10,577 | |||||||||||||
Total operating expenses | 17,100 | 15,908 | 15,140 | 15,380 | |||||||||||||
Operating loss | (3,849 | ) | (1,126 | ) | (424 | ) | (2,351 | ) | |||||||||
Interest expense | (150 | ) | (40 | ) | (116 | ) | (23 | ) | |||||||||
Other income (loss), net | 33 | (420 | ) | 227 | 387 | ||||||||||||
Loss before income taxes | (3,966 | ) | (1,586 | ) | (313 | ) | (1,987 | ) | |||||||||
Provision for income taxes | 251 | 681 | 727 | 2,644 | |||||||||||||
Net loss | $ | (4,217 | ) | $ | (2,267 | ) | $ | (1,040 | ) | $ | (4,631 | ) | |||||
Net loss per share — basic and diluted | $ | (0.58 | ) | $ | (0.31 | ) | (0.14 | ) | $ | (0.63 | ) | ||||||
Basic and diluted weighted average shares | 7,283 | 7,360 | 7,362 | 7,368 | |||||||||||||
The above table includes a $1.9 million increase in the provision for income taxes for the three months ended December 31, 2014 related to an increase in the Company's valuation allowance on deferred tax assets. See Note 6, Income Taxes. | |||||||||||||||||
The following tables summarize MRV's Consolidated Statements of Operations for 2013 (in thousands): | |||||||||||||||||
Three months ended: | March 31, | June 30, | September 30, | December 31, | |||||||||||||
2013 | 2013 | 2013 | 2013 | ||||||||||||||
Revenue | $ | 38,905 | $ | 38,175 | $ | 38,385 | $ | 50,736 | |||||||||
Cost of sales | 25,878 | 24,803 | 23,411 | 34,116 | |||||||||||||
Gross profit | 13,027 | 13,372 | 14,974 | 16,620 | |||||||||||||
Operating expenses: | |||||||||||||||||
Product development and engineering | 4,648 | 4,454 | 4,627 | 5,652 | |||||||||||||
Selling, general and administrative | 12,392 | 9,453 | 10,308 | 10,840 | |||||||||||||
Total operating expenses | 17,040 | 13,907 | 14,935 | 16,492 | |||||||||||||
Operating income (loss) | (4,013 | ) | (535 | ) | 39 | 128 | |||||||||||
Interest expense | (132 | ) | (241 | ) | (41 | ) | (112 | ) | |||||||||
Other income (loss), net | 17 | (102 | ) | (132 | ) | (190 | ) | ||||||||||
Loss before income taxes | (4,128 | ) | (878 | ) | (134 | ) | (174 | ) | |||||||||
Provision for income taxes | 306 | 115 | 12 | 1,075 | |||||||||||||
Net loss | $ | (4,434 | ) | $ | (993 | ) | $ | (146 | ) | $ | (1,249 | ) | |||||
Net loss per share — basic and diluted | $ | (0.59 | ) | $ | (0.13 | ) | $ | (0.02 | ) | $ | (0.17 | ) | |||||
Basic and diluted weighted average shares | 7,568 | 7,585 | 7,522 | 7,443 | |||||||||||||
Description_of_Business_and_Ba1
Description of Business and Basis of Presentation (Details) | 12 Months Ended |
Dec. 31, 2014 | |
segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of business segments | 2 |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Changes in Allowance for Doubtful Accounts) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Balance at beginning of period | $2,182 | $1,732 | $1,662 |
Charged to expense | 95 | 580 | 116 |
Deductions | -393 | -167 | -72 |
Effect of foreign currency exchange rates | -126 | 37 | 26 |
Balance at end of period | $1,758 | $2,182 | $1,732 |
Network Integration segment [Member] | Telecom Italia S.p.A. [Member] | Credit Concentration Risk [Member] | Accounts Receivable [Member] | |||
Concentration Risk [Line Items] | |||
Percentage of Accounts Receivable (excceds percentage) | 29.00% | 27.00% | 9.00% |
Network Integration segment [Member] | Fastweb S.p.A. [Member] | Credit Concentration Risk [Member] | Accounts Receivable [Member] | |||
Concentration Risk [Line Items] | |||
Percentage of Accounts Receivable (excceds percentage) | 5.00% | 22.00% | 20.00% |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies (Net Inventories) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Accounting Policies [Abstract] | ||
Raw materials | $3,663 | $5,723 |
Work-in process | 641 | 1,121 |
Finished goods | 17,379 | 16,137 |
Total | $21,683 | $22,981 |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies (Property and Equipment) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Property, Plant and Equipment [Line Items] | |||
Property and equipment, at cost: | $18,547 | $18,279 | |
Less — accumulated depreciation and amortization | -13,657 | -12,724 | |
Total property and equipment | 4,890 | 5,555 | |
Depreciation expense | 2,097 | 1,833 | 1,448 |
Machinery and equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, at cost: | 7,603 | 7,448 | |
Machinery and equipment [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, useful life | 2 years | ||
Machinery and equipment [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, useful life | 5 years | ||
Computer hardware and software [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, at cost: | 6,650 | 6,653 | |
Computer hardware and software [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, useful life | 3 years | ||
Computer hardware and software [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, useful life | 7 years | ||
Leasehold improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, at cost: | 2,651 | 2,354 | |
Leasehold improvements [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, useful life | 1 year | ||
Leasehold improvements [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, useful life | 10 years | ||
Furniture and fixtures [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, at cost: | 1,462 | 1,411 | |
Furniture and fixtures [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, useful life | 3 years | ||
Furniture and fixtures [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, useful life | 15 years | ||
Construction in progress [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, at cost: | $181 | $413 |
Summary_of_Significant_Account6
Summary of Significant Accounting Policies (Narrative) (Details) (USD $) | 0 Months Ended | 3 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 13 Months Ended | 0 Months Ended | 5 Months Ended | 0 Months Ended | 6 Months Ended | |||||||||||
Apr. 08, 2013 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Aug. 20, 2012 | Dec. 03, 2013 | Dec. 31, 2013 | Aug. 15, 2013 | Dec. 31, 2013 | Dec. 16, 2014 | Dec. 31, 2014 | Jun. 30, 2014 | Aug. 16, 2012 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||||||||||||
Asset Impairment Charges | $0 | $0 | $0 | ||||||||||||||||||
Money Market Funds, at Carrying Value | 14,001,000 | 10,606,000 | 14,001,000 | 10,606,000 | 10,606,000 | 10,606,000 | 14,001,000 | ||||||||||||||
Stipulation of settlement, payment to plaintiff, warrants | 250,000 | 250,000 | 250,000 | 250,000 | |||||||||||||||||
Expected volatility rate | 41.00% | ||||||||||||||||||||
Risk free interest rate | 1.50% | ||||||||||||||||||||
Stipulation of Settlement, payment to plaintiff, warrants, term | 5 years | 5 years | |||||||||||||||||||
Warrants, fair value per share | 6.59 | 6.59 | 6.59 | ||||||||||||||||||
Fair Value Adjustment Of Warrants | 400,000 | ||||||||||||||||||||
Warrants exercised | 152,500 | ||||||||||||||||||||
Warrants outstanding | 97,500 | 97,500 | 97,500 | ||||||||||||||||||
Prepaid expenses included in other assets | 4,700,000 | 4,200,000 | 4,700,000 | 4,200,000 | 4,200,000 | 4,200,000 | 4,700,000 | ||||||||||||||
Cost of sales related to product revenue | 82,600,000 | 74,100,000 | 62,900,000 | ||||||||||||||||||
Cost of sales related to service revenue | 33,700,000 | 34,100,000 | 33,600,000 | ||||||||||||||||||
Capitalized costs for internally developed software | 0 | ||||||||||||||||||||
Advertising Expense | 1,200,000 | 1,100,000 | 1,200,000 | ||||||||||||||||||
Purchase of treasury shares, value | 3,884,000 | 3,257,000 | |||||||||||||||||||
Share price | $9.93 | $9.93 | $9.93 | ||||||||||||||||||
Revenue | 43,444,000 | 43,170,000 | 43,124,000 | 42,318,000 | 50,736,000 | 38,385,000 | 38,175,000 | 38,905,000 | 172,056,000 | 166,201,000 | 151,661,000 | ||||||||||
Net income (loss) | -4,631,000 | -1,040,000 | -2,267,000 | -4,217,000 | -1,249,000 | -146,000 | -993,000 | -4,434,000 | -12,155,000 | -6,822,000 | 5,664,000 | ||||||||||
Cost of sales | 30,415,000 | 28,454,000 | 28,342,000 | 29,067,000 | 34,116,000 | 23,411,000 | 24,803,000 | 25,878,000 | 116,278,000 | 108,208,000 | 96,509,000 | ||||||||||
Gross profit | 13,029,000 | 14,716,000 | 14,782,000 | 13,251,000 | 16,620,000 | 14,974,000 | 13,372,000 | 13,027,000 | 55,778,000 | 57,993,000 | 55,152,000 | ||||||||||
Provision for income taxes | 2,644,000 | 727,000 | 681,000 | 251,000 | 1,075,000 | 12,000 | 115,000 | 306,000 | 4,303,000 | 1,508,000 | -1,013,000 | ||||||||||
Inventories | 21,683,000 | 22,981,000 | 21,683,000 | 22,981,000 | 22,981,000 | 22,981,000 | 21,683,000 | ||||||||||||||
Deferred revenue | 3,459,000 | 3,146,000 | 155,000 | ||||||||||||||||||
Deferred income taxes | 535,000 | 1,219,000 | 535,000 | 1,219,000 | 1,219,000 | 1,219,000 | 535,000 | ||||||||||||||
Accumulated deficit | -1,220,492,000 | -1,208,337,000 | -1,220,492,000 | -1,208,337,000 | -1,208,337,000 | -1,208,337,000 | -1,220,492,000 | ||||||||||||||
Inventories | -82,000 | 43,000 | 689,000 | ||||||||||||||||||
Stock Options [Member] | |||||||||||||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||||||||||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 309,309 | 325,837 | 420,693 | ||||||||||||||||||
August 2012 Share Repurchase Agreement [Member] | |||||||||||||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||||||||||||
Purchase of treasury shares, shares | 292,171 | ||||||||||||||||||||
Treasury Stock Acquired, Average Cost Per Share | $9.60 | ||||||||||||||||||||
Purchase of treasury shares, value | 2,800,000 | ||||||||||||||||||||
Common stock, discount on shares, percent | 7.70% | ||||||||||||||||||||
Share price | $10.40 | ||||||||||||||||||||
December 2012 Share Repurchase Agreement [Member] | |||||||||||||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||||||||||||
Purchase of treasury shares, shares | 261,873 | 40,305 | 302,178 | ||||||||||||||||||
Purchase of treasury shares, value | 2,600,000 | 400,000 | 3,000,000 | ||||||||||||||||||
Stock repurchase program, authorized amount | 10,000,000 | ||||||||||||||||||||
August 2013 Share Repurchase Agreement [Member] | |||||||||||||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||||||||||||
Purchase of treasury shares, shares | 0 | 127,510 | |||||||||||||||||||
Purchase of treasury shares, value | 1,300,000 | ||||||||||||||||||||
Stock repurchase program, authorized amount | 7,013,838 | ||||||||||||||||||||
December 2014 Share Repurchase Agreement [Member] | |||||||||||||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||||||||||||
Stock repurchase program, authorized amount | 8,000,000 | ||||||||||||||||||||
Fair Value, Inputs, Level 1 [Member] | |||||||||||||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||||||||||||
Cash and Cash Equivalents, Fair Value Disclosure | 14,001,000 | 10,606,000 | 14,001,000 | 10,606,000 | 10,606,000 | 10,606,000 | 14,001,000 | ||||||||||||||
United States [Member] | |||||||||||||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||||||||||||
Cash and cash equivalents | 13,300,000 | 13,300,000 | 13,300,000 | ||||||||||||||||||
Revenue | 51,036,000 | 55,071,000 | 47,250,000 | ||||||||||||||||||
Foreign [Member] | |||||||||||||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||||||||||||
Cash and cash equivalents | 9,100,000 | 9,100,000 | 9,100,000 | ||||||||||||||||||
Restatement Adjustment [Member] | |||||||||||||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||||||||||||
Revenue | 1,400,000 | -2,000,000 | |||||||||||||||||||
Net income (loss) | 100,000 | -100,000 | |||||||||||||||||||
Cost of sales | -1,800,000 | ||||||||||||||||||||
Gross profit | -100,000 | -200,000 | |||||||||||||||||||
Provision for income taxes | -100,000 | ||||||||||||||||||||
Inventories | 1,900,000 | 1,900,000 | |||||||||||||||||||
Deferred revenue | -600,000 | 2,000,000 | |||||||||||||||||||
Deferred income taxes | 100,000 | 100,000 | |||||||||||||||||||
Accumulated deficit | -100,000 | -100,000 | -100,000 | -100,000 | -100,000 | ||||||||||||||||
Inventories | -500,000 | ||||||||||||||||||||
Software License Arrangement [Member] | |||||||||||||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||||||||||||
Impairment of intangible assets | $100,000 |
Discontinued_Operations_Income
Discontinued Operations (Income Statement and Balance Sheet) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | |||
Provision (benefit) for income taxes | $4,588 | ||
Net income (loss) from discontinued operations, net of income taxes | 0 | 0 | 12,839 |
Interdata [Member] | |||
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | |||
Revenue | 27,602 | ||
Income (loss) before income taxes | -3,175 | ||
Provision (benefit) for income taxes | -244 | ||
Income from operations of discontinued operations | -2,931 | ||
Gain on sale | 5,542 | ||
Tax effect of income (loss) from disposal of discontinued operation | 623 | ||
Net income (loss) from discontinued operations, net of income taxes | 2,611 | ||
Revenues attributed to intercompany activities | 4,249 | ||
Alcadon [Member] | |||
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | |||
Revenue | 24,320 | ||
Income (loss) before income taxes | -1,088 | ||
Provision (benefit) for income taxes | 643 | ||
Income from operations of discontinued operations | -1,731 | ||
Gain on sale | 6,182 | ||
Tax effect of income (loss) from disposal of discontinued operation | 1,341 | ||
Net income (loss) from discontinued operations, net of income taxes | 4,451 | ||
Revenues attributed to intercompany activities | 3,931 | ||
CES [Member] | |||
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | |||
Revenue | 6,829 | ||
Income (loss) before income taxes | -135 | ||
Provision (benefit) for income taxes | 556 | ||
Income from operations of discontinued operations | -691 | ||
Gain on sale | 6,470 | ||
Tax effect of income (loss) from disposal of discontinued operation | 1,668 | ||
Net income (loss) from discontinued operations, net of income taxes | $5,779 |
Discontinued_Operations_Narrat
Discontinued Operations (Narrative) (Details) | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | |||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Oct. 16, 2012 | Oct. 16, 2012 | Dec. 31, 2012 | Oct. 12, 2012 | Dec. 31, 2012 | Dec. 28, 2012 | Mar. 29, 2012 | Mar. 29, 2012 | Dec. 31, 2012 | |
USD ($) | USD ($) | USD ($) | Interdata [Member] | Interdata [Member] | Interdata [Member] | Alcadon [Member] | Alcadon [Member] | Alcadon [Member] | CES [Member] | CES [Member] | CES [Member] | |
USD ($) | EUR (€) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | CHF | USD ($) | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Discontinued operation, disposal of discontinued operation, purchase price | $19,000,000 | € 14,600,000 | $7,700,000 | $28,400,000 | 25,800,000 | |||||||
Transaction costs | 800,000 | 300,000 | ||||||||||
Divestiture of Business, Escrow Adjustment | 700,000 | |||||||||||
Proceeds from divestiture of business | 6,500,000 | |||||||||||
Cash divested from deconsolidation | 1,200,000 | |||||||||||
Share purchase agreement, potential purchase price allocation, cash less negotiated liabilities | 800,000 | |||||||||||
Payments of dividends | 3,700,000 | |||||||||||
Proceeds from Divestiture of Businesses, Net of Cash Divested | 10,600,000 | |||||||||||
Amount put into escrow | 2,800,000 | 2,600,000 | ||||||||||
Proceeds from sales of business | 24,200,000 | |||||||||||
Other closing costs | 1,200,000 | |||||||||||
Gain (loss) from discontinued operations | 0 | 0 | 12,839,000 | 2,611,000 | 4,451,000 | 5,779,000 | ||||||
Income from discontinued operation, before tax | 6,500,000 | |||||||||||
Loss from discontinued operation, before tax | 100,000 | |||||||||||
Income tax netted from Income from Discontinued Operations | $400,000 |
Goodwill_and_Other_Intangibles2
Goodwill and Other Intangibles (Narrative) (Details) (USD $) | 12 Months Ended | |||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2012 | Jun. 30, 2012 | |
Goodwill [Line Items] | ||||||
Goodwill | $0 | |||||
Impairment of goodwill | 0 | 0 | -3,007,000 | |||
Intangibles assets | 1,364,000 | 873,000 | ||||
Intangible assets, software license agreements | 400,000 | |||||
Amortization of intangible assets | 50,000 | 0 | ||||
Software License Arrangement [Member] | ||||||
Goodwill [Line Items] | ||||||
Impairment of intangible assets | 100,000 | |||||
Not Yet Placed in Service [Member] | ||||||
Goodwill [Line Items] | ||||||
Intangibles assets | 1,100,000 | |||||
Minimum [Member] | ||||||
Goodwill [Line Items] | ||||||
Estimated useful life of finite-lived intangible assets | 3 years | |||||
Maximum [Member] | ||||||
Goodwill [Line Items] | ||||||
Estimated useful life of finite-lived intangible assets | 5 years | |||||
Tecnonet [Member] | ||||||
Goodwill [Line Items] | ||||||
Impairment of goodwill | -1,100,000 | |||||
Alcadon [Member] | ||||||
Goodwill [Line Items] | ||||||
Impairment of goodwill | -3,700,000 | |||||
Network Integration group [Member] | ||||||
Goodwill [Line Items] | ||||||
Goodwill, gross | 2,831,000 | 2,831,000 | ||||
Accumulated impairment losses and amortization | -2,831,000 | -1,760,000 | ||||
Goodwill | 0 | 1,071,000 | ||||
Foreign currency translation adjustment, net | -16,000 | |||||
Network Integration group [Member] | Tecnonet [Member] | ||||||
Goodwill [Line Items] | ||||||
Impairment of goodwill | -1,055,000 | |||||
Fair Value, Measurements, Nonrecurring [Member] | Tecnonet [Member] | Discounted Cash Flow [Member] | Fair Value, Inputs, Level 3 [Member] | ||||||
Goodwill [Line Items] | ||||||
Equity investment | 20,100,000 | |||||
Fair Value, Measurements, Nonrecurring [Member] | Tecnonet [Member] | Discounted Cash Flow [Member] | Fair Value, Inputs, Level 3 [Member] | Minimum [Member] | ||||||
Goodwill [Line Items] | ||||||
Weighted average cost of capital | 19.80% | |||||
Long-term growth rate | 1.50% | |||||
Fair Value, Measurements, Nonrecurring [Member] | Tecnonet [Member] | Discounted Cash Flow [Member] | Fair Value, Inputs, Level 3 [Member] | Maximum [Member] | ||||||
Goodwill [Line Items] | ||||||
Weighted average cost of capital | 25.80% | |||||
Long-term growth rate | 4.50% | |||||
Fair Value, Measurements, Nonrecurring [Member] | Tecnonet [Member] | Discounted Cash Flow [Member] | Fair Value, Inputs, Level 3 [Member] | Median [Member] | ||||||
Goodwill [Line Items] | ||||||
Weighted average cost of capital | 22.80% | |||||
Long-term growth rate | 3.00% | |||||
Fair Value, Measurements, Nonrecurring [Member] | Alcadon [Member] | Discounted Cash Flow [Member] | Fair Value, Inputs, Level 3 [Member] | ||||||
Goodwill [Line Items] | ||||||
Equity investment | 13,100,000 | |||||
Fair Value, Measurements, Nonrecurring [Member] | Alcadon [Member] | Discounted Cash Flow [Member] | Fair Value, Inputs, Level 3 [Member] | Minimum [Member] | ||||||
Goodwill [Line Items] | ||||||
Weighted average cost of capital | 34.30% | |||||
Long-term growth rate | 1.50% | |||||
Fair Value, Measurements, Nonrecurring [Member] | Alcadon [Member] | Discounted Cash Flow [Member] | Fair Value, Inputs, Level 3 [Member] | Maximum [Member] | ||||||
Goodwill [Line Items] | ||||||
Weighted average cost of capital | 40.30% | |||||
Long-term growth rate | 4.50% | |||||
Fair Value, Measurements, Nonrecurring [Member] | Alcadon [Member] | Discounted Cash Flow [Member] | Fair Value, Inputs, Level 3 [Member] | Median [Member] | ||||||
Goodwill [Line Items] | ||||||
Weighted average cost of capital | 37.30% | |||||
Long-term growth rate | 3.00% | |||||
Fair Value, Measurements, Nonrecurring [Member] | Alcadon [Member] | Non-Binding Offer From Third Party [Member] | Fair Value, Inputs, Level 3 [Member] | ||||||
Goodwill [Line Items] | ||||||
Equity investment | $11,900,000 |
Goodwill_and_Other_Intangibles3
Goodwill and Other Intangibles (Amortization Expense Maturity Schedule) (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2015 | $167 |
2016 | 328 |
2017 | 280 |
2018 | 214 |
2019 | 214 |
Thereafter | 161 |
Total | $1,364 |
Accrued_Liabilities_Details
Accrued Liabilities (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2012 | Dec. 31, 2011 | |
Payables and Accruals [Abstract] | ||||
Payroll and related | $9,537,000 | $9,068,000 | ||
Professional fees | 1,400,000 | 1,441,000 | ||
Non-income taxes | 3,223,000 | 1,544,000 | ||
Product warranty | 578,000 | 616,000 | 1,006,000 | 1,126,000 |
Deferred rent | 278,000 | 160,000 | ||
Derivative litigation settlement | 1,241,000 | 0 | ||
Other | 3,206,000 | 1,716,000 | ||
Total accrued liabilities | 19,463,000 | 14,545,000 | ||
Derivative litigation costs in excess of insurance limits | $1,900,000 |
Income_Taxes_Income_Before_Inc
Income Taxes (Income Before Income Taxes) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest [Abstract] | |||||||||||
United States | ($7,993) | ($4,096) | ($11,018) | ||||||||
Foreign | 141 | -1,218 | 2,830 | ||||||||
Loss from continuing operations before provision for income taxes | ($1,987) | ($313) | ($1,586) | ($3,966) | ($174) | ($134) | ($878) | ($4,128) | ($7,852) | ($5,314) | ($8,188) |
Income_Taxes_Provision_for_Inc
Income Taxes (Provision for Income Taxes) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||||||||||
State, current | ($89) | ($56) | $300 | ||||||||
Foreign, current | 2,470 | 1,621 | 1,664 | ||||||||
Total current | 2,381 | 1,565 | 1,964 | ||||||||
Federal, deferred | 0 | 0 | -3,019 | ||||||||
State, deferred | 0 | 0 | -614 | ||||||||
Foreign, deferred | 1,922 | -57 | 656 | ||||||||
Total deferred | 1,922 | -57 | -2,977 | ||||||||
Income tax netted from Income from Discontinued Operations | 4,588 | ||||||||||
Total | $2,644 | $727 | $681 | $251 | $1,075 | $12 | $115 | $306 | $4,303 | $1,508 | ($1,013) |
Income_Taxes_Effective_Income_
Income Taxes (Effective Income Tax Rate Reconciliation) (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Tax Disclosure [Abstract] | |||
Income tax provision, at statutory federal rate | 34.00% | 34.00% | 34.00% |
State and local income taxes, net of federal income taxes effect | 6.00% | 5.00% | 6.00% |
Credits | 0.00% | 0.00% | 5.00% |
Permanent differences | -10.00% | -13.00% | -7.00% |
Goodwill impairment | 0.00% | 0.00% | -4.00% |
Fiberxon settlement | 0.00% | 0.00% | 0.00% |
Foreign taxes at rates different than domestic rates | -4.00% | -7.00% | -1.00% |
Change in valuation allowance | -76.00% | -49.00% | -20.00% |
Change in reserve for uncertain tax positions | 0.00% | -3.00% | 0.00% |
Other adjustments | -5.00% | 5.00% | 0.00% |
Effective tax rate | -55.00% | -28.00% | 13.00% |
Income_Taxes_Componentes_of_De
Income Taxes (Componentes of Deferred Income Taxes) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Income Tax Disclosure [Abstract] | ||
Allowance for doubtful accounts | $389 | $415 |
Inventory reserve | 2,814 | 1,954 |
Accrued liabilities | 2,846 | 2,694 |
Other, current | 5,446 | 5,791 |
Gross current deferred income tax assets | 11,495 | 10,854 |
Valuation allowance | -10,960 | -9,635 |
Net current deferred income tax assets | 535 | 1,219 |
Net operating losses | 91,085 | 88,086 |
Depreciation and amortization | 370 | 439 |
Capital loss carry forwards | 38,755 | 38,951 |
Gross long-term deferred income tax assets | 130,210 | 127,476 |
Valuation allowance | -128,105 | -123,782 |
Net long-term deferred income tax asset | 2,105 | 3,694 |
Total | $2,640 | $4,913 |
Income_Taxes_Summary_of_Valuat
Income Taxes (Summary of Valuation Allowance) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Valuation Allowance [Roll Forward] | |||
Balance at beginning of period | ($133.40) | ($138.20) | ($158.80) |
(Increase) decrease in valuation allowance | -5.6 | 4.8 | 20.6 |
Balance at end of period | ($139) | ($133.40) | ($138.20) |
Income_Taxes_Unrecognized_Tax_
Income Taxes Unrecognized Tax Benefits (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
Balance at beginning of period | ($134) | $0 | $0 |
Additions related to prior year positions | 34 | -134 | 0 |
Balance at end of period | ($100) | ($134) | $0 |
Income_Taxes_Narrative_Details
Income Taxes (Narrative) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Valuation Allowance [Line Items] | |||
Change in valuation allowance | $5,600,000 | ($4,800,000) | ($20,600,000) |
Operating Loss Carryforwards [Line Items] | |||
Deferred tax assets, net | 2,640,000 | 4,913,000 | |
Capital loss carry forwards | 38,755,000 | 38,951,000 | |
NOL carry forwards, federal | 179,700,000 | ||
NOL carry forwards, state | 100,700,000 | ||
NOL carry forwards, foreign | 97,300,000 | ||
NOL carry forwards increase, federal | 7,400,000 | ||
NOL carry forwards increase, state | 7,900,000 | ||
Loss carryovers from share-based compensation | 3,200,000 | ||
Undistributed earnings at foreign entities | 27,600,000 | ||
Reclassification of income tax benefit from discontinued operations to continuing operations | 3,600,000 | ||
Income tax netted from Income from Discontinued Operations | 4,588,000 | ||
Foreign Tax Authority [Member] | Israel Tax Authority [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Deferred tax assets, net | 2,640,000 | ||
Foreign Tax Authority [Member] | Israel Tax Authority and Federal Ministry of Finance, Germany [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Deferred tax assets, net | 4,913,000 | ||
Federal [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Capital loss carry forwards | 110,500,000 | ||
State [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Capital loss carry forwards | 24,000,000 | ||
Current Year Operating Loss Carryforwards, Domestic [Member] | |||
Valuation Allowance [Line Items] | |||
Change in valuation allowance | 2,600,000 | ||
Current Year Operating Loss Carryforwards, Foreign [Member] | |||
Valuation Allowance [Line Items] | |||
Change in valuation allowance | 1,100,000 | ||
Prior Year Operating Loss Carryforwards, Foreign [Member] | |||
Valuation Allowance [Line Items] | |||
Change in valuation allowance | $1,900,000 |
ShortTerm_Debt_Details
Short-Term Debt (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Debt Disclosure [Abstract] | ||
Short-term debt | $5,402 | $4,320 |
Interest rate, minimum | 1.70% | |
Interest rate, maximum | 2.40% | |
Interest rate, weighted average | 2.10% | 2.20% |
Other_longterm_liabilities_Det
Other long-term liabilities (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Other Liabilities Disclosure [Abstract] | ||
Liability for severance pay | $3,591 | $3,658 |
Long-term portion of deferred revenue | 1,330 | 1,444 |
Other | 350 | 134 |
Total | $5,271 | $5,236 |
401k_Plan_Details
401(k) Plan (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Compensation and Retirement Disclosure [Abstract] | |||
Percent of company match | 50.00% | ||
Percent of employees' annual compensation contributed, maximum | 6.00% | ||
Matching contributions to the plan | $562,299 | $334,661 | $395,595 |
Commitments_and_Contingencies_1
Commitments and Contingencies (Operating Leases) (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
Operating leases, 2015 | $2,302 |
Operating leases, 2016 | 1,429 |
Operating leases, 2017 | 1,072 |
Operating leases, 2018 | 598 |
Operating leases, 2019 | 413 |
Operating leases, Thereafter | 118 |
Operating leases, total | $5,932 |
Commitments_and_Contingencies_2
Commitments and Contingencies (Operating Leases - Narrative) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Operating Leased Assets [Line Items] | |||
Operating leases, rental expense | $2,500,000 | $2,400,000 | $2,700,000 |
Total lease payments over the lease term | 5,932,000 | ||
Bud H. Harris [Member] | |||
Operating Leased Assets [Line Items] | |||
Operating lease, term | 10 years | ||
Total lease payments over the lease term | 500,000 | ||
Operating lease, improvement allowance | 70,000 | ||
George DiRado [Member] | |||
Operating Leased Assets [Line Items] | |||
Operating lease, renewal term | 5 years | ||
Total lease payments over the lease term | 200,000 | ||
Tecla Immobillare [Member] | |||
Operating Leased Assets [Line Items] | |||
Total lease payments over the lease term | 1,200,000 | ||
Fanocle S.p.A. [Member] | |||
Operating Leased Assets [Line Items] | |||
Total lease payments over the lease term | 1,100,000 | ||
Chelmsford Associates, LLC [Member] | |||
Operating Leased Assets [Line Items] | |||
Operating lease, term | 5 years 6 months | ||
Operating lease, renewal term | 5 years | ||
Total lease payments over the lease term | 200,000 | ||
Operating lease, rent abatement | $146,000 |
Commitments_and_Contingencies_3
Commitments and Contingencies (Narrative) (Details) (USD $) | 0 Months Ended | 12 Months Ended | 1 Months Ended | 3 Months Ended | 1 Months Ended | |
Apr. 08, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Nov. 30, 2010 | Aug. 31, 2008 | 31-May-14 | |
claims | subcontractor | |||||
Commitments and Contingencies Disclosure [Abstract] | ||||||
Purchase commitments, product manufacturing term | 150 days | |||||
Manufacturing commitments and component purchase commitments | $7,700,000 | |||||
Royalties, percentage of sales of developed products, minimum | 2.00% | |||||
Royalties, percentage of sales of developed products, maximum | 5.00% | |||||
Royalties, remaining future obligation | 287,000 | |||||
Royalties, additional reserve | 243,000 | |||||
Loss Contingencies [Line Items] | ||||||
Stipulation of settlement, insurance carriers payment | 2,500,000 | |||||
Stipulation of settlement, payment to plaintiff | 500,000 | |||||
Stipulation of settlement, payment to plaintiff, warrants | 250,000 | 250,000 | ||||
Stipulation of Settlement, payment to plaintiff, warrants, term | 5 years | 5 years | ||||
Proceeds from Legal Settlements | 1,000,000 | |||||
Derivative litigation costs | 1,900,000 | |||||
Indemnification Agreement [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Indemnification Obligation, Days in Excess of Statute of Limitations | 90 days | |||||
Indemnification claims deductible | 1,000,000 | |||||
Indemnification claims cap | 20,000,000 | |||||
Loss contingency accrual, provision | 0 | 0 | ||||
Purported Stockholder Derivative and Securities Class Action Lawsuits [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Litigation Settlement, Amount | -10,000,000 | |||||
Purported Stockholder Derivative and Securities Class Action Lawsuits [Member] | U. S. District Court in the Central District of California [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Purported stockholder derivative and securities class action lawsuits | 5 | |||||
Purported Stockholder Derivative and Securities Class Action Lawsuits [Member] | Superior Court of the State of California [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Purported stockholder derivative and securities class action lawsuits | 1 | |||||
Pending Litigation [Member] | Purported Breach of Supply Agreements Claim [Member] | Italian Civil Court [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Loss Contingency, Number of Subcontractors | 2 | |||||
Loss Contingency, Damages Sought, Value | $3,000,000 |
Product_Warranty_Details
Product Warranty (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward] | |||
Beginning balance | $578 | $1,006 | $1,126 |
Cost of warranty claims | -17 | -321 | -150 |
Accruals for product warranties | 55 | -107 | 30 |
Foreign currency translation adjustment | 0 | 0 | 0 |
Balance at end of period | $616 | $578 | $1,006 |
Minimum [Member] | |||
Standard Product Warranty Period [Line Items] | |||
Standard product warranty period | 90 days | ||
Maximum [Member] | |||
Standard Product Warranty Period [Line Items] | |||
Standard product warranty period | 3 years |
Stockholders_Equity_Details
Stockholders' Equity (Details) (USD $) | 1 Months Ended | 12 Months Ended | |||
In Thousands, except Share data, unless otherwise specified | Dec. 21, 2012 | 25-May-12 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Preferred stock, shares authorized | 1,000,000 | 1,000,000 | |||
Preferred stock, par value | 0.01 | $0.01 | |||
Dividend, common stock declared and staggered cash payment for loss on fair value of options | $10,600 | $47,300 | $57,957 | ||
Dividend, common stock declared and stock option holder payment, per share | $1.40 | $6 | |||
Percentage of stock option payment paid immediately | 50.00% | ||||
Percentage of dividend paid in 12 months | 50.00% | ||||
Stock Options [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based payment award, expiration period | 10 years | ||||
Share-based payment award, number of shares available for grant | 103,914 | ||||
Stock Options [Member] | Minimum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based payment award, vesting period | 1 year | ||||
Stock Options [Member] | Maximum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based payment award, vesting period | 4 years | ||||
Restricted Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based payment award, vesting period | 1 year |
Stockholders_Equity_Share_Repu
Stockholders' Equity (Share Repurchase) (Details) (USD $) | 12 Months Ended | 0 Months Ended | 12 Months Ended | 13 Months Ended | 0 Months Ended | 5 Months Ended | 12 Months Ended | 0 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Aug. 20, 2012 | Dec. 03, 2013 | Dec. 31, 2013 | Aug. 15, 2013 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 16, 2014 | Aug. 16, 2012 | |
Equity, Class of Treasury Stock [Line Items] | ||||||||||
Purchase of treasury shares, value | $3,884,000 | $3,257,000 | ||||||||
Share price | 9.93 | |||||||||
August 2012 Share Repurchase Agreement [Member] | ||||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||||
Purchase of treasury shares, shares | 292,171 | |||||||||
Treasury stock acquired, average cost per share | $9.60 | |||||||||
Purchase of treasury shares, value | 2,800,000 | |||||||||
Common stock, discount on shares, percent | 7.70% | |||||||||
Share price | $10.40 | |||||||||
December 2012 Share Repurchase Agreement [Member] | ||||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||||
Purchase of treasury shares, shares | 261,873 | 40,305 | 302,178 | |||||||
Purchase of treasury shares, value | 2,600,000 | 400,000 | 3,000,000 | |||||||
Stock repurchase program, authorized amount | 10,000,000 | |||||||||
August 2013 Share Repurchase Agreement [Member] | ||||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||||
Purchase of treasury shares, shares | 127,510 | 0 | ||||||||
Purchase of treasury shares, value | 1,300,000 | |||||||||
Stock repurchase program, authorized amount | 7,013,838 | |||||||||
December 2014 Share Repurchase Agreement [Member] | ||||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||||
Stock repurchase program, authorized amount | $8,000,000 |
ShareBased_Compensation_ShareB
Share-Based Compensation (Share-Based Compensation) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation expense | $959 | $713 | $1,129 |
Cost of Goods Sold [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation expense | 116 | 98 | 39 |
Product Development and Engineering [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation expense | 166 | 66 | 40 |
Selling, General and Administrative [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation expense | $677 | $549 | $1,050 |
ShareBased_Compensation_Restri
Share-Based Compensation (Restricted Stock Awards) (Details) (Restricted Stock [Member]) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Restricted stock units as of January 1 | 81,193 | 37,514 | 5,148 |
Granted | 100,355 | 91,388 | 39,326 |
Vested | -39,238 | -37,428 | -5,148 |
Forfeited | -39,276 | -10,281 | -1,812 |
Restricted stock units as of December 31 | 103,034 | 81,193 | 37,514 |
ShareBased_Compensation_Valuat
Share-Based Compensation (Valuation Assumptions) (Details) (Stock Options [Member]) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate | 2.00% | 1.20% | 0.80% |
Dividend yield (1) | 0.00% | 0.00% | 0.00% |
Volatility | 50.00% | 52.00% | 89.00% |
Expected life (in years) | 5 years 11 months 4 days | 5 years 8 months 12 days | 5 years 6 months |
ShareBased_Compensation_ShareB1
Share-Based Compensation (Share-Based Payment Award Activity) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Outstanding, January 1, 2012, shares | 349,454 | ||
Granted, shares | 198,647 | ||
Exercised, shares | -6,812 | ||
Canceled and forfeited, shares | -133,339 | ||
Outstanding, December 31, 2012, shares | 407,950 | 349,454 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | |||
Outstanding, January 1, 2012, weighted average exercise price | $28.15 | ||
Granted, weighted average exercise price | $14.11 | ||
Exercised, weighted average exercise price | $10.55 | ||
Canceled and forfeited, weighted average exercise price | $26.58 | ||
Outstanding, December 31, 2012, weighted average exercise price | $22.12 | $28.15 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |||
Outstanding, weighted average remaining contractual term | 4 years 10 months 21 days | ||
Outstanding, aggregate intrinsic value | $22,479 | ||
Vested and expected to vest, shares | 383,752 | ||
Vested and expected to vest, weighted average exercise price | $22.66 | ||
Vested and expected to vest, weighted average remaining contractual term | 4 years 7 months 5 days | ||
Vested and expected to vest, aggregate intrinsic value | 22,065 | ||
Exercisable, shares | 266,411 | ||
Exercisable, weighted average exercise price | $26.58 | ||
Exercisable, weighted average remaining contractual term | 2 years 6 months 21 days | ||
Exercisable, aggregate intrinsic value, per share | 20,594 | ||
Total intrinsic value of stock options exercised | 17,000 | 0 | 0 |
Cash received from stock options exercised | $72,000 | $0 | $0 |
ShareBased_Compensation_Summar
Share-Based Compensation (Summary of Nonvested Options) (Details) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares [Roll Forward] | |
Nonvested options outstanding, January 1, 2012, shares | 89,480 |
Granted, shares | 198,647 |
Vested, shares | -79,805 |
Canceled and forfeited, shares | -66,783 |
Nonvested Outstanding, December 31, 2012, shares | 141,539 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Nonvested options outstanding, January 1, 2012, weighted average exercise price | $12.65 |
Granted, weighted average exercise price | $14.11 |
Vested, weighted average exercise price | $13.77 |
Canceled and forfeited, weighted average exercise price | $13.36 |
Nonvested Outstanding, December 31, 2012, weighted average exercise price | $13.73 |
ShareBased_Compensation_Signif
Share-Based Compensation (Significant Ranges of Outstanding and Exercisable Options) (Details) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise prices, lower range limit | $9.10 |
Range of Exercise prices, upper range limit | $79.20 |
Options outstanding as of December 31, 2014 | 407,950 |
Weighted average remaining contractual life (years) | 4 years 10 months 22 days |
Weighted average exercise price | $22.12 |
Options exercisable as of December 31, 2014 | 266,411 |
Weighted average exercise price of exercisable options | $26.58 |
$9.10 - $10.55 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise prices, lower range limit | $9.10 |
Range of Exercise prices, upper range limit | $10.55 |
Options outstanding as of December 31, 2014 | 57,787 |
Weighted average remaining contractual life (years) | 7 years 0 months 9 days |
Weighted average exercise price | $9.80 |
Options exercisable as of December 31, 2014 | 40,148 |
Weighted average exercise price of exercisable options | $9.65 |
$13.32 - $13.60 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise prices, lower range limit | $13.32 |
Range of Exercise prices, upper range limit | $13.60 |
Options outstanding as of December 31, 2014 | 43,092 |
Weighted average remaining contractual life (years) | 8 years 2 months 28 days |
Weighted average exercise price | $13.44 |
Options exercisable as of December 31, 2014 | 10,204 |
Weighted average exercise price of exercisable options | $13.60 |
$14.51 - $14.51 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise prices, lower range limit | $14.51 |
Range of Exercise prices, upper range limit | $14.51 |
Options outstanding as of December 31, 2014 | 99,234 |
Weighted average remaining contractual life (years) | 8 years 5 months 5 days |
Weighted average exercise price | $14.51 |
Options exercisable as of December 31, 2014 | 8,409 |
Weighted average exercise price of exercisable options | $14.51 |
$15.53 - $23.80 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise prices, lower range limit | $15.53 |
Range of Exercise prices, upper range limit | $23.80 |
Options outstanding as of December 31, 2014 | 27,849 |
Weighted average remaining contractual life (years) | 3 years 4 months 10 days |
Weighted average exercise price | $23.06 |
Options exercisable as of December 31, 2014 | 27,849 |
Weighted average exercise price of exercisable options | $23.06 |
$25.00 - $25.00 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise prices, lower range limit | $25 |
Range of Exercise prices, upper range limit | $25 |
Options outstanding as of December 31, 2014 | 87,500 |
Weighted average remaining contractual life (years) | 0 years 11 months 5 days |
Weighted average exercise price | $25 |
Options exercisable as of December 31, 2014 | 87,500 |
Weighted average exercise price of exercisable options | $25 |
$27.60 - $33.20 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise prices, lower range limit | $27.60 |
Range of Exercise prices, upper range limit | $33.20 |
Options outstanding as of December 31, 2014 | 44,902 |
Weighted average remaining contractual life (years) | 3 years 1 month 1 day |
Weighted average exercise price | $28.69 |
Options exercisable as of December 31, 2014 | 44,902 |
Weighted average exercise price of exercisable options | $28.69 |
$34.60 - $52.60 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise prices, lower range limit | $34.60 |
Range of Exercise prices, upper range limit | $52.60 |
Options outstanding as of December 31, 2014 | 44,211 |
Weighted average remaining contractual life (years) | 1 year 9 months 1 day |
Weighted average exercise price | $47.12 |
Options exercisable as of December 31, 2014 | 44,024 |
Weighted average exercise price of exercisable options | $47.17 |
$57.40 - $64.80 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise prices, lower range limit | $57.40 |
Range of Exercise prices, upper range limit | $64.80 |
Options outstanding as of December 31, 2014 | 1,475 |
Weighted average remaining contractual life (years) | 1 year 4 months 1 day |
Weighted average exercise price | $62.21 |
Options exercisable as of December 31, 2014 | 1,475 |
Weighted average exercise price of exercisable options | $62.21 |
$73.20 - $73.20 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise prices, lower range limit | $73.20 |
Range of Exercise prices, upper range limit | $73.20 |
Options outstanding as of December 31, 2014 | 500 |
Weighted average remaining contractual life (years) | 1 year 3 months 30 days |
Weighted average exercise price | $73.20 |
Options exercisable as of December 31, 2014 | 500 |
Weighted average exercise price of exercisable options | $73.20 |
$79.20 - $79.20 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise prices, lower range limit | $79.20 |
Range of Exercise prices, upper range limit | $79.20 |
Options outstanding as of December 31, 2014 | 1,400 |
Weighted average remaining contractual life (years) | 1 year 1 month 12 days |
Weighted average exercise price | $79.20 |
Options exercisable as of December 31, 2014 | 1,400 |
Weighted average exercise price of exercisable options | $79.20 |
ShareBased_Compensation_Narrat
Share-Based Compensation (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options, grants during period (in shares) | 198,647 | ||
Options, weighted-average fair value, grants during the period (dollars per share) | $14.11 | ||
Total compensation cost not yet recognized | $1.30 | ||
Total compensation cost not yet recognized, period for recognition | 2 years | ||
Share price | $9.93 | ||
Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options, grants during period (in shares) | 198,647 | 80,242 | 17,736 |
Options, weighted-average fair value, grants during the period (dollars per share) | $6.95 | $4.89 | $9.65 |
Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted stock, grants during period (in shares) | 100,355 | 91,388 | 39,326 |
Restricted stock, weighted-average fair value, grants during the period (dollars per share) | $13.91 | $9.98 | $16.18 |
Segment_Reporting_and_Geograph2
Segment Reporting and Geographic Information (Revenues by Segment) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenue | $43,444 | $43,170 | $43,124 | $42,318 | $50,736 | $38,385 | $38,175 | $38,905 | $172,056 | $166,201 | $151,661 |
Operating Segments [Member] | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenue | 172,223 | 166,347 | 160,148 | ||||||||
Network Equipment segment [Member] | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenue | 86,705 | 90,711 | 87,727 | ||||||||
Network Integration segment [Member] | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenue | 85,518 | 75,636 | 72,421 | ||||||||
Intersegment adjustments [Member] | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenue | ($167) | ($146) | ($8,487) |
Segment_Reporting_and_Geograph3
Segment Reporting and Geographic Information (External Revenue and Long-Lived Assets by Geographic Region) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | $43,444 | $43,170 | $43,124 | $42,318 | $50,736 | $38,385 | $38,175 | $38,905 | $172,056 | $166,201 | $151,661 |
Long-Lived Assets | 4,890 | 5,555 | 4,890 | 5,555 | |||||||
Americas [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Long-Lived Assets | 3,078 | 3,326 | 3,078 | 3,326 | |||||||
United States [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | 51,036 | 55,071 | 47,250 | ||||||||
Americas (Excluding the U.S.) [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | 1,507 | 4,200 | 6,008 | ||||||||
Europe [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | 105,996 | 98,843 | 88,868 | ||||||||
Long-Lived Assets | 1,786 | 2,194 | 1,786 | 2,194 | |||||||
Italy [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | 86,300 | 76,600 | 73,100 | ||||||||
Asia Pacific [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | 13,517 | 8,087 | 9,521 | ||||||||
Long-Lived Assets | 26 | 35 | 26 | 35 | |||||||
Other Regions [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | $0 | $0 | $14 |
Segment_Reporting_and_Geograph4
Segment Reporting and Geographic Information (Statement of Operations Information by Business Segment) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Gross profit | |||||||||||
Gross profit | $13,029 | $14,716 | $14,782 | $13,251 | $16,620 | $14,974 | $13,372 | $13,027 | $55,778 | $57,993 | $55,152 |
Depreciation expense | |||||||||||
Depreciation expense | 2,097 | 1,833 | 1,448 | ||||||||
Operating income (loss) | |||||||||||
Operating loss | -2,351 | -424 | -1,126 | -3,849 | 128 | 39 | -535 | -4,013 | -7,750 | -4,381 | -9,847 |
Provision (benefit) for income taxes | 2,644 | 727 | 681 | 251 | 1,075 | 12 | 115 | 306 | 4,303 | 1,508 | -1,013 |
Operating Segments [Member] | |||||||||||
Gross profit | |||||||||||
Gross profit | 55,777 | 57,986 | 55,157 | ||||||||
Operating income (loss) | |||||||||||
Operating loss | -1,512 | 2,921 | 5,610 | ||||||||
Network Equipment segment [Member] | |||||||||||
Gross profit | |||||||||||
Gross profit | 42,601 | 47,069 | 43,325 | ||||||||
Depreciation expense | |||||||||||
Depreciation expense | 1,759 | 1,417 | 1,022 | ||||||||
Operating income (loss) | |||||||||||
Operating loss | -7,074 | -1,699 | 1,096 | ||||||||
Provision (benefit) for income taxes | 1,873 | -38 | -2,468 | ||||||||
Network Integration segment [Member] | |||||||||||
Gross profit | |||||||||||
Gross profit | 13,176 | 10,917 | 11,832 | ||||||||
Depreciation expense | |||||||||||
Depreciation expense | 204 | 219 | 234 | ||||||||
Operating income (loss) | |||||||||||
Operating loss | 5,562 | 4,620 | 4,514 | ||||||||
Provision (benefit) for income taxes | 2,430 | 1,546 | 1,455 | ||||||||
Corporate Unallocated and Intersegment Adjustments [Member] | |||||||||||
Gross profit | |||||||||||
Gross profit | 1 | 7 | -5 | ||||||||
Operating income (loss) | |||||||||||
Operating loss | -6,238 | -7,302 | -15,457 | ||||||||
Corporate [Member] | |||||||||||
Depreciation expense | |||||||||||
Depreciation expense | $134 | $197 | $192 |
Segment_Reporting_and_Geograph5
Segment Reporting and Geographic Information (Balance Sheet and Statement of Cash Flow Information) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting Information [Line Items] | |||
Additions to Fixed Assets | $1,491 | $3,662 | $2,909 |
Assets | 114,572 | 127,947 | |
Network Equipment segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Additions to Fixed Assets | 1,230 | 3,329 | |
Assets | 40,664 | 48,955 | |
Network Integration segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Additions to Fixed Assets | 178 | 104 | |
Assets | 56,921 | 54,625 | |
Corporate [Member] | |||
Segment Reporting Information [Line Items] | |||
Additions to Fixed Assets | 83 | 229 | |
Corporate and Intersegment Eliminations [Member] | |||
Segment Reporting Information [Line Items] | |||
Assets | $16,987 | $24,367 |
Segment_Reporting_and_Geograph6
Segment Reporting and Geographic Information (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting [Abstract] | |||
Number of business segments | 2 | ||
Network Integration segment [Member] | Major Customer, One [Member] | |||
Segment Reporting Information [Line Items] | |||
Amount of Revenue from One Customer | $41 | $46.60 | $43.40 |
Network Integration segment [Member] | Major Customer, One [Member] | Sales Revenue, Segment [Member] | Customer Concentration Risk [Member] | |||
Segment Reporting Information [Line Items] | |||
Percentage of Revenue from One Customer | 24.00% | 28.00% | |
Network Integration segment [Member] | Major Customer, One [Member] | Accounts Receivable [Member] | Credit Concentration Risk [Member] | |||
Segment Reporting Information [Line Items] | |||
Percentage of Revenue from One Customer | 5.00% | 22.00% | 20.00% |
Network Integration segment [Member] | Major Customer, Two [Member] | |||
Segment Reporting Information [Line Items] | |||
Amount of Revenue from One Customer | $27.60 | $22.70 | $19.10 |
Network Integration segment [Member] | Major Customer, Two [Member] | Sales Revenue, Segment [Member] | Customer Concentration Risk [Member] | |||
Segment Reporting Information [Line Items] | |||
Percentage of Revenue from One Customer | 16.00% | 14.00% | 13.00% |
Network Integration segment [Member] | Major Customer, Two [Member] | Accounts Receivable [Member] | Credit Concentration Risk [Member] | |||
Segment Reporting Information [Line Items] | |||
Percentage of Revenue from One Customer | 29.00% | 27.00% | 9.00% |
Other_Income_Net_Details
Other Income, Net (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Other Income and Expenses [Abstract] | |||||||||||
Interest income | $7 | $14 | $7 | ||||||||
Gain (loss) on foreign currency transactions | 473 | -336 | -316 | ||||||||
Other, net | -253 | -85 | 255 | ||||||||
Total | $387 | $227 | ($420) | $33 | ($190) | ($132) | ($102) | $17 | $227 | ($407) | ($54) |
Quarterly_Financial_Data_Unaud2
Quarterly Financial Data (Unaudited) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
Share data in Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenue | $43,444,000 | $43,170,000 | $43,124,000 | $42,318,000 | $50,736,000 | $38,385,000 | $38,175,000 | $38,905,000 | $172,056,000 | $166,201,000 | $151,661,000 |
Cost of sales | 30,415,000 | 28,454,000 | 28,342,000 | 29,067,000 | 34,116,000 | 23,411,000 | 24,803,000 | 25,878,000 | 116,278,000 | 108,208,000 | 96,509,000 |
Gross profit | 13,029,000 | 14,716,000 | 14,782,000 | 13,251,000 | 16,620,000 | 14,974,000 | 13,372,000 | 13,027,000 | 55,778,000 | 57,993,000 | 55,152,000 |
Operating expenses: | |||||||||||
Product development and engineering | 4,803,000 | 5,060,000 | 5,392,000 | 5,578,000 | 5,652,000 | 4,627,000 | 4,454,000 | 4,648,000 | 20,833,000 | 19,381,000 | 15,344,000 |
Selling, general and administrative | 10,577,000 | 10,080,000 | 10,516,000 | 11,522,000 | 10,840,000 | 10,308,000 | 9,453,000 | 12,392,000 | 42,695,000 | 42,993,000 | 48,599,000 |
Total operating expenses | 15,380,000 | 15,140,000 | 15,908,000 | 17,100,000 | 16,492,000 | 14,935,000 | 13,907,000 | 17,040,000 | 63,528,000 | 62,374,000 | 64,999,000 |
Operating loss | -2,351,000 | -424,000 | -1,126,000 | -3,849,000 | 128,000 | 39,000 | -535,000 | -4,013,000 | -7,750,000 | -4,381,000 | -9,847,000 |
Interest expense | -23,000 | -116,000 | -40,000 | -150,000 | -112,000 | -41,000 | -241,000 | -132,000 | -329,000 | -526,000 | -601,000 |
Other income (loss), net | 387,000 | 227,000 | -420,000 | 33,000 | -190,000 | -132,000 | -102,000 | 17,000 | 227,000 | -407,000 | -54,000 |
Loss before income taxes | -1,987,000 | -313,000 | -1,586,000 | -3,966,000 | -174,000 | -134,000 | -878,000 | -4,128,000 | -7,852,000 | -5,314,000 | -8,188,000 |
Provision for income taxes | 2,644,000 | 727,000 | 681,000 | 251,000 | 1,075,000 | 12,000 | 115,000 | 306,000 | 4,303,000 | 1,508,000 | -1,013,000 |
Net loss | -4,631,000 | -1,040,000 | -2,267,000 | -4,217,000 | -1,249,000 | -146,000 | -993,000 | -4,434,000 | -12,155,000 | -6,822,000 | 5,664,000 |
Net loss per share — basic and diluted (usd per share) | ($0.63) | ($0.14) | ($0.31) | ($0.58) | ($0.17) | ($0.02) | ($0.13) | ($0.59) | ($1.66) | ($0.91) | $0.72 |
Basic and diluted weighted average shares | 7,368 | 7,362 | 7,360 | 7,283 | 7,443 | 7,522 | 7,585 | 7,568 | |||
increase in provision for income taxes related to increase in valuation allowance on deferred tax assets | $1,900,000 |
Accounts_Receivable_Factoring_
Accounts Receivable Factoring (Details) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 |
USD ($) | USD ($) | EUR (€) | |
Accounts Receivable Factoring [Abstract] | |||
Amount of factoring permitted per credit facility agreements | $18.20 | € 15 | |
Accounts receivables sold | 10.5 | 17.2 | |
Outstanding balances on accounts receivable | 10.4 | 7.7 | |
Gain (Loss) on Sale of Pledged Assets, Not Separately Reported, Finance Receivables | $0.20 | $0.30 |
Subsequent_Event_Details
Subsequent Event (Details) (USD $) | 12 Months Ended | 2 Months Ended | 0 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 09, 2015 | Jan. 06, 2015 | |
Subsequent Event [Line Items] | |||||
Purchase of treasury shares | $0 | $3,884,000 | $3,257,000 | ||
Subsequent Event [Member] | |||||
Subsequent Event [Line Items] | |||||
Stock repurchase program, remaining authorized repurchase amount | 4,800,000 | ||||
Subsequent Event [Member] | December 2014 Share Repurchase Agreement [Member] | |||||
Subsequent Event [Line Items] | |||||
Purchase of treasury shares, shares | 307,715 | 179,168 | |||
Purchase of treasury shares | $3,200,000 | $1,800,000 |