Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Mar. 01, 2014 | Jun. 30, 2013 | |
Document and Entity Information | ' | ' | ' |
Entity Registrant Name | 'MoSys, Inc. | ' | ' |
Entity Central Index Key | '0000890394 | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Amendment Flag | 'false | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Filer Category | 'Accelerated Filer | ' | ' |
Entity Public Float | ' | ' | $187,432,524 |
Entity Common Stock, Shares Outstanding | ' | 49,165,240 | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current assets | ' | ' |
Cash and cash equivalents | $4,364 | $2,529 |
Short-term investments | 32,192 | 30,798 |
Accounts receivable, net | 148 | 287 |
Prepaid expenses and other current assets | 1,671 | 1,362 |
Total current assets | 38,375 | 34,976 |
Long-term investments | 13,926 | 7,383 |
Property and equipment, net | 706 | 1,238 |
Goodwill | 23,134 | 23,134 |
Intangible assets, net | 1,655 | 2,654 |
Other assets | 193 | 149 |
Total assets | 77,989 | 69,534 |
Current liabilities | ' | ' |
Accounts payable | 276 | 393 |
Accrued expenses and other liabilities | 1,909 | 3,947 |
Deferred revenue | 170 | 481 |
Total current liabilities | 2,355 | 4,821 |
Long-term liabilities | 216 | 171 |
Commitments and contingencies (Note 12) | ' | ' |
Stockholders' equity | ' | ' |
Preferred stock, $0.01 par value; 20,000 shares authorized; none issued and outstanding | ' | ' |
Common stock, $0.01 par value; 120,000 shares authorized; 48,894 shares and 40,054 shares issued and outstanding at December 31, 2013 and 2012, respectively | 489 | 401 |
Additional paid-in capital | 192,723 | 157,143 |
Accumulated other comprehensive income | 13 | 11 |
Accumulated deficit | -117,807 | -93,013 |
Total stockholders' equity | 75,418 | 64,542 |
Total liabilities and stockholders' equity | $77,989 | $69,534 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, except Per Share data, unless otherwise specified | ||
CONSOLIDATED BALANCE SHEETS | ' | ' |
Preferred stock, par value (in dollars per share) | $0.01 | $0.01 |
Preferred stock, shares authorized | 20,000 | 20,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, shares authorized | 120,000 | 120,000 |
Common stock, shares issued | 48,894 | 40,054 |
Common stock, shares outstanding | 48,894 | 40,054 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Net revenue | ' | ' | ' |
Licensing and other | $781 | $1,340 | $5,987 |
Royalty | 3,617 | 4,742 | 8,120 |
Total net revenue | 4,398 | 6,082 | 14,107 |
Cost of net revenue | ' | ' | ' |
Licensing and other | 474 | 334 | 3,295 |
Total cost of net revenue | 474 | 334 | 3,295 |
Gross profit | 3,924 | 5,748 | 10,812 |
Operating expenses | ' | ' | ' |
Research and development | 23,325 | 28,480 | 26,216 |
Selling, general and administrative | 6,161 | 8,218 | 8,869 |
Gain on sale of assets | -630 | -3,291 | -35,611 |
Total operating expenses | 28,856 | 33,407 | -526 |
Income (loss) from operations | -24,932 | -27,659 | 11,338 |
Other income, net | 209 | 155 | 206 |
Income (loss) before income taxes | -24,723 | -27,504 | 11,544 |
Income tax provision | 71 | 110 | 288 |
Net income (loss) | -24,794 | -27,614 | 11,256 |
Other comprehensive income (loss), net of tax: | ' | ' | ' |
Net unrealized gains (losses) on available-for-sale securities | 2 | 10 | -3 |
Comprehensive income (loss) | ($24,792) | ($27,604) | $11,253 |
Net income (loss) per share | ' | ' | ' |
Basic (in dollars per share) | ($0.55) | ($0.70) | $0.30 |
Diluted (in dollars per share) | ($0.55) | ($0.70) | $0.28 |
Shares used in computing net income (loss) per share | ' | ' | ' |
Basic (in shares) | 45,246 | 39,176 | 37,861 |
Diluted (in shares) | 45,246 | 39,176 | 40,377 |
CONSOLIDATED_STATEMENTS_OF_STO
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (USD $) | Total | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income | Accumulated Deficit |
In Thousands, unless otherwise specified | |||||
Balance at Dec. 31, 2010 | $67,057 | $372 | $143,336 | $4 | ($76,655) |
Balance (in shares) at Dec. 31, 2010 | ' | 37,225 | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' |
Issuance of common stock for exercise of options, employee stock purchase plan and release of awards | 3,403 | 12 | 3,391 | ' | ' |
Issuance of common stock for exercise of options, employee stock purchase plan and release of awards (in shares) | ' | 1,198 | ' | ' | ' |
Stock-based compensation | 3,780 | ' | 3,780 | ' | ' |
Other comprehensive income (loss)-change in unrealized gain (loss) on available-for-sale investments | -3 | ' | ' | -3 | ' |
Net income (loss) | 11,256 | ' | ' | ' | 11,256 |
Balance at Dec. 31, 2011 | 85,493 | 384 | 150,507 | 1 | -65,399 |
Balance (in shares) at Dec. 31, 2011 | ' | 38,423 | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' |
Issuance of common stock for exercise of options, employee stock purchase plan and release of awards | 3,646 | 19 | 3,627 | ' | ' |
Issuance of common stock for exercise of options, employee stock purchase plan and release of awards (in shares) | ' | 1,881 | ' | ' | ' |
Repurchase of common stock | -828 | -2 | -826 | ' | ' |
Repurchase of common stock (in shares) | ' | -250 | ' | ' | ' |
Stock-based compensation | 3,835 | ' | 3,835 | ' | ' |
Other comprehensive income (loss)-change in unrealized gain (loss) on available-for-sale investments | 10 | ' | ' | 10 | ' |
Net income (loss) | -27,614 | ' | ' | ' | -27,614 |
Balance at Dec. 31, 2012 | 64,542 | 401 | 157,143 | 11 | -93,013 |
Balance (in shares) at Dec. 31, 2012 | 40,054 | 40,054 | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' |
Issuance of common stock for exercise of options, employee stock purchase plan and release of awards | 4,224 | 13 | 4,211 | ' | ' |
Issuance of common stock for exercise of options, employee stock purchase plan and release of awards (in shares) | ' | 1,365 | ' | ' | ' |
Issuance of common stock, net of costs of $2,154 | 27,746 | 75 | 27,671 | ' | ' |
Issuance of common stock, net of costs of $2,154 (in shares) | ' | 7,475 | ' | ' | ' |
Stock-based compensation | 3,698 | ' | 3,698 | ' | ' |
Other comprehensive income (loss)-change in unrealized gain (loss) on available-for-sale investments | 2 | ' | ' | 2 | ' |
Net income (loss) | -24,794 | ' | ' | ' | -24,794 |
Balance at Dec. 31, 2013 | $75,418 | $489 | $192,723 | $13 | ($117,807) |
Balance (in shares) at Dec. 31, 2013 | 48,894 | 48,894 | ' | ' | ' |
CONSOLIDATED_STATEMENTS_OF_STO1
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2013 |
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY | ' |
Issuance of common stock, costs | $2,154 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Cash flows from operating activities: | ' | ' | ' |
Net income (loss) | ($24,794) | ($27,614) | $11,256 |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ' | ' | ' |
Depreciation and amortization | 679 | 952 | 1,110 |
Amortization of intangible assets | 999 | 1,746 | 2,618 |
Stock-based compensation | 3,698 | 3,811 | 3,766 |
Gain on sale of assets | -630 | -3,291 | -35,611 |
Recovery of doubtful accounts | ' | ' | -125 |
Other non-cash items | 7 | ' | 19 |
Changes in assets and liabilities, net of effects of acquisition: | ' | ' | ' |
Accounts receivable | 139 | 682 | 235 |
Prepaid expenses and other assets | -314 | 371 | 2,375 |
Deferred revenue | -311 | -439 | -881 |
Accounts payable | -125 | -84 | -763 |
Accrued expenses and other liabilities | -1,993 | 1,850 | 305 |
Net cash used in operating activities | -22,645 | -22,016 | -15,696 |
Cash flows from investing activities: | ' | ' | ' |
Purchases of property and equipment | -154 | -738 | -349 |
Net cash paid for purchase of businesses | ' | ' | -1,500 |
Net proceeds from sale of assets | 630 | 3,437 | 34,831 |
Proceeds from sales and maturities of marketable securities | 49,267 | 34,371 | 36,836 |
Purchases of marketable securities | -57,202 | -54,592 | -31,587 |
Net cash (used in) provided by investing activities | -7,459 | -17,522 | 38,231 |
Cash flows from financing activities: | ' | ' | ' |
Proceeds from the sale of common stock, net of issuance costs | 27,746 | ' | ' |
Proceeds from issuance of common stock | 4,193 | 3,636 | 3,336 |
Repurchase of common stock | ' | -1,444 | ' |
Payments on capital lease obligations | ' | -150 | -186 |
Net cash provided by financing activities | 31,939 | 2,042 | 3,150 |
Net increase (decrease) in cash and cash equivalents | 1,835 | -37,496 | 25,685 |
Cash and cash equivalents at beginning of year | 2,529 | 40,025 | 14,340 |
Cash and cash equivalents at end of year | 4,364 | 2,529 | 40,025 |
Supplemental disclosure: | ' | ' | ' |
Cash paid for income taxes | 92 | 345 | 53 |
Patent license recorded in connection with patent sale | ' | ' | $780 |
The_Company_and_Summary_of_Sig
The Company and Summary of Significant Accounting Policies | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
The Company and Summary of Significant Accounting Policies | ' | |||||||||||||
The Company and Summary of Significant Accounting Policies | ' | |||||||||||||
Note 1: The Company and Summary of Significant Accounting Policies | ||||||||||||||
The Company | ||||||||||||||
MoSys, Inc. (the "Company") was incorporated in California in September 1991, and reincorporated in September 2000 in Delaware. The Company has been designing, developing, marketing and licensing high-performance semiconductor memory and high-speed parallel and serial interface, orSerDes, intellectual property (IP) used by the semiconductor industry and communications, networking and storage equipment manufacturers. In February 2010, the Company announced the commencement of a new product initiative to develop a family of integrated circuit (IC) products under the "Bandwidth Engine" product name. Bandwidth Engine ICs combine the Company's proprietary high-density embedded memory with its high-speed 10 gigabits per second and higher interface (I/O) technology. In March 2013, the Company announced another IC product line under the "LineSpeed" product name. LineSpeed ICs are non-memory based, high-speed SerDes devices with gearbox or retimer functionality, which convert lanes of data received on line cards into different configurations and/or ensure signal integrity. Both product lines are initially being marketed to networking and telecommunications systems companies. The Company's strategy and primary business objective is to become an IP-rich fabless semiconductor company focused on development and sale of IC products. The Company's future success and ability to achieve and maintain profitability depends on its success in developing a market for its ICs. | ||||||||||||||
Basis of Presentation | ||||||||||||||
The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany transactions and balances have been eliminated in consolidation. The Company's fiscal year ends on December 31 of each calendar year. | ||||||||||||||
Use of Estimates | ||||||||||||||
The preparation of financial statements in accordance with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues recognized under the percentage of completion method and expenses recognized during the reported period. Actual results could differ from those estimates. | ||||||||||||||
Foreign Currency | ||||||||||||||
The functional currency of the Company's foreign entities is the U.S. dollar. The financial statements of these entities are translated into U.S. dollars and the resulting gains or losses are included in other income, net in the consolidated statements of operations and comprehensive income (loss). Such gains and losses were not material for any period presented. | ||||||||||||||
Cash Equivalents and Investments | ||||||||||||||
The Company has invested its excess cash in money market accounts, certificates of deposit, corporate debt, government agency and municipal debt securities and considers all highly liquid debt instruments purchased with an original maturity of three months or less to be cash equivalents. Investments with original maturities greater than three months and remaining maturities less than one year are classified as short-term investments. Investments with remaining maturities greater than one year are classified as long-term investments. Management generally determines the appropriate classification of securities at the time of purchase. All securities are classified as available-for-sale. The Company's available-for-sale short-term and long-term investments are carried at fair value, with the unrealized holding gains and losses reported in accumulated other comprehensive income. Realized gains and losses and declines in the value judged to be other than temporary are included in the other income, net line item in the consolidated statements of operations and comprehensive income (loss). The cost of securities sold is based on the specific identification method. | ||||||||||||||
Fair Value Measurements | ||||||||||||||
The Company measures the fair value of financial instruments using a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels, as follows: | ||||||||||||||
Level 1—Inputs used to measure fair value are unadjusted quoted prices that are available in active markets for the identical assets or liabilities as of the reporting date. | ||||||||||||||
Level 2—Pricing is provided by third party sources of market information obtained through the Company's investment advisors rather than models. The Company does not adjust for or apply any additional assumptions or estimates to the pricing information it receives from advisors. The Company's Level 2 securities include cash equivalents and available-for-sale securities, which consisted primarily of certificates of deposit, corporate debt, and government agency and municipal debt securities from issuers with high quality credit ratings. The Company's investment advisors obtain pricing data from independent sources, such as Standard & Poor's, Bloomberg and Interactive Data Corporation, and rely on comparable pricing of other securities because the Level 2 securities are not actively traded and have fewer observable transactions. The Company considers this the most reliable information available for the valuation of the securities. | ||||||||||||||
Level 3—Unobservable inputs that are supported by little or no market activity and reflect the use of significant management judgment are used to measure fair value. These values are generally determined using pricing models for which the assumptions utilize management's estimates of market participant assumptions. The determination of fair value for Level 3 investments and other financial instruments involves the most management judgment and subjectivity. | ||||||||||||||
Allowance for Doubtful Accounts | ||||||||||||||
The Company establishes an allowance for doubtful accounts to ensure that its trade receivables balances are not overstated due to uncollectibility. The Company performs ongoing customer credit evaluations within the context of the industry in which it operates and generally does not require collateral from its customers. A specific allowance of up to 100% of the invoice value is provided for any problematic customer balances. Delinquent account balances are written off after management has determined that the likelihood of collection is remote. The Company grants credit only to customers deemed creditworthy in the judgment of management. There was no allowance for doubtful accounts receivable at December 31, 2013 or December 31, 2012. | ||||||||||||||
Inventory | ||||||||||||||
The Company values its inventories at the lower of cost, which approximates actual cost on a first-in, first-out basis, or market value. The Company records inventory reserves for estimated obsolescence or unmarketable inventories based upon assumptions about future demand and market conditions. Once a reserve is established, it is maintained until the product to which it relates is sold or otherwise disposed of. If actual market conditions are less favorable than those expected by management, additional adjustment to inventory valuation may be required. As of December 31, 2013 and 2012, inventory has been included in the prepaid expenses and other current assets line item of the consolidated balance sheets. | ||||||||||||||
Property and Equipment | ||||||||||||||
Property and equipment are originally recorded at cost. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, generally three to five years. Depreciation is recorded in operating expenses in the consolidated statements of operations and comprehensive income (loss). Leasehold improvements and assets acquired through capital leases are amortized over the shorter of their estimated useful life or the lease term. | ||||||||||||||
Valuation of Long-lived Assets | ||||||||||||||
The Company evaluates the recoverability of long-lived assets with finite lives whenever events or changes in circumstances occur that indicate that the carrying value of the asset or asset group may not be recoverable. Finite-lived intangible assets are being amortized on a straight-line basis over their estimated useful lives of three to seven years. An impairment charge is recognized as the difference between the net book value of such assets and the fair value of such assets at the date of measurement. The measurement of impairment requires management to estimate future cash flows and the fair value of long-lived assets. | ||||||||||||||
Intangible Assets | ||||||||||||||
Intangible assets acquired in business combinations, referred to as purchased intangible assets, are accounted for based on the fair value of assets purchased and are amortized over the period in which economic benefit is estimated to be received. In December 2011, the Company sold 73 of its memory technology patents and received a license to those patents for use in its Bandwidth Engine ICs and other limited instances. The fair value of the patent rights received was recorded as a patent license (see Note 5). Identifiable intangible assets relating to business combinations and the patent license were as follows (dollar amounts in thousands): | ||||||||||||||
December 31, 2013 | ||||||||||||||
Life | Gross | Accumulated | Net | |||||||||||
(years) | Carrying | Amortization | Carrying | |||||||||||
Amount | Amount | |||||||||||||
Developed technology | 5-Mar | $ | 9,240 | $ | 8,142 | $ | 1,098 | |||||||
Patent license | 7 | 780 | 223 | 557 | ||||||||||
| | | | | | | | | | | | | | |
Total | $ | 10,020 | $ | 8,365 | $ | 1,655 | ||||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
December 31, 2012 | ||||||||||||||
Life | Gross | Accumulated | Net | |||||||||||
(years) | Carrying | Amortization | Carrying | |||||||||||
Amount | Amount | |||||||||||||
Developed technology | 5-Mar | $ | 9,240 | $ | 7,255 | $ | 1,985 | |||||||
Customer relationships | 3 | 390 | 390 | — | ||||||||||
| | | | | | | | | | | | | | |
Subtotal purchased intangible assets | 9,630 | 7,645 | 1,985 | |||||||||||
Patent license | 7 | 780 | 111 | 669 | ||||||||||
| | | | | | | | | | | | | | |
Total | $ | 10,410 | $ | 7,756 | $ | 2,654 | ||||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Amortization expense has been included in research and development expense in the consolidated statements of operations and comprehensive income (loss). The estimated aggregate amortization expense to be recognized in future years is approximately $1.0 million for 2014, $0.3 million for 2015 and $0.1 million annually for 2016 and 2018. | ||||||||||||||
Goodwill | ||||||||||||||
The Company reviews goodwill for impairment on an annual basis or whenever events or changes in circumstances indicate the carrying value of an asset may not be recoverable. The Company first assesses qualitative factors to determine whether it is more-likely-than-not that the fair value of the reporting unit is less than the carrying amount as a basis for determining whether it is necessary to perform the two-step impairment test. If the qualitative assessment warrants further analysis, the Company compares the fair value of the reporting unit to its carrying value. The fair value of the reporting unit is determined using the market approach. If the fair value of the reporting unit exceeds the carrying value of net assets of the reporting unit, goodwill is not impaired, and the Company is not required to perform further testing. If the carrying value of the reporting unit's goodwill exceeds its implied fair value, then the Company must record an impairment charge equal to the difference. The Company has determined that it has a single reporting unit for purposes of performing its goodwill impairment test. As the Company uses the market approach to assess impairment in the second step of the analysis, the price of its common stock is an important component of the fair value calculation. If the Company's stock price continues to experience significant price and volume fluctuations, this will impact the fair value of the reporting unit, which can lead to potential impairment in future periods. The Company performed step one of the annual impairment test in September 2013, and concluded no factors indicated impairment of goodwill. As of December 31, 2013, the Company had not identified any factors to indicate there was an impairment of its goodwill and determined that no additional impairment analysis was required. | ||||||||||||||
Revenue Recognition | ||||||||||||||
General | ||||||||||||||
The Company generates revenue from the licensing of its IP and sales of IC products. The Company recognizes revenue when persuasive evidence of an arrangement exists, delivery or performance has occurred, the sales price is fixed or determinable, and collectibility is reasonably assured. Evidence of an arrangement generally consists of signed agreements or customer purchase orders. | ||||||||||||||
Licensing | ||||||||||||||
Licensing revenue consists of fees earned from license agreements, development services and support and maintenance. For stand-alone license agreements or license deliverables in multi-deliverable arrangements that do not require significant development, modification or customization, revenues are recognized when all revenue recognition criteria have been met. Delivery of the licensed technology is typically the final revenue recognition criterion met, at which time revenue is recognized. If any of the criteria are not met, revenue recognition is deferred until such time as all criteria have been met. | ||||||||||||||
When sales arrangements contain multiple deliverables (e.g., license and services), the Company reviews each deliverable to determine the separate units of accounting that exist within the agreement. If more than one unit of accounting exists, the consideration payable to the Company under the agreement is allocated to each unit of accounting using the relative fair value method. Revenue is recognized for each unit of accounting when the revenue recognition criteria have been met for that unit of accounting. The Company allocates revenue among the deliverables using the relative selling price method. Revenue allocated to each element is recognized when the basic revenue recognition criteria is met for each element. Under GAAP, the Company is required to apply a hierarchy to determine the selling price to be used for allocating revenue to deliverables: (i) vendor-specific objective evidence of fair value (VSOE), (ii) third-party evidence of selling price (TPE) and (iii) best estimate of the selling price (ESP). In general, the Company is unable to establish VSOE or TPE for license fees and development services. Therefore, revenue is allocated to these elements based on the Company's ESP, which the Company determines after considering multiple factors such as management approved pricing guidelines, geographic differences, market conditions, competitor pricing strategies, internal costs and gross margin objectives. These factors may vary over time depending upon the unique facts and circumstances related to each deliverable. If the facts and circumstances underlying the factors considered change or should future facts and circumstances lead the Company to consider additional factors, the Company's ESP for license fee and development services could change. | ||||||||||||||
For license agreements involving deliverables that do require significant production, modification or customization, and where the Company has significant experience in meeting the design specifications in the contract and the direct labor hours related to services under the contract can be reasonably estimated, the Company recognizes revenue over the period in which the contract services are performed. For these arrangements, the Company recognizes revenue using the percentage of completion method. Under this method, revenue recognized in any period depends on the Company's progress toward completion of projects in progress. Significant management judgment and discretion are used to estimate total direct labor hours. These judgmental elements include determining that the Company has the experience to meet the design specifications and estimate the total direct labor hours to perform the contract services, based on experience in developing prior licensees' designs. The direct labor hours for the development of the licensee's design are estimated at the beginning of the contract. As the direct labor hours are incurred, they are used as a measure of progress towards completion. During the contract performance period, the Company reviews estimates of direct labor hours to complete the contracts and will revise its estimates of revenue and gross profit under the contract if it revises the estimations of the direct labor hours to complete. The Company's policy is to reflect any revision in the contract gross profit estimate in reported income or loss in the period in which the facts giving rise to the revision become known. Under the percentage of completion method, provisions for estimated losses on uncompleted contracts are recorded in the period in which such losses are determined to be likely. | ||||||||||||||
The Company provides support and maintenance under many of its license agreements. Under these arrangements, the Company provides unspecified upgrades, design rule changes and technical support. No other upgrades, products or other post-contract support are provided. Support and maintenance revenue is recognized at its fair value established by VSOE, ratably over the period during which the obligation exists, typically 12 months. These arrangements are generally renewable annually by the customer. | ||||||||||||||
Royalty | ||||||||||||||
The Company's licensing contracts typically also provide for royalties based on the licensee's use of the Company's memory technology in their currently shipping commercial products. The Company recognizes royalties in the quarter in which it receives the licensee's report. | ||||||||||||||
IC products | ||||||||||||||
The Company sells products both directly to customers, as well as through distributors. Revenue from sales directly to customers is generally recognized at the time of shipment. The Company records an estimated allowance, at the time of shipment, for future returns and other charges against revenue consistent with the terms of sale. IC product revenue and costs relating to sales made through distributors with rights of return or stock rotation are deferred until the distributors sell the product to end customers due to the Company's inability to estimate future returns and credits to be issued. Distributors are generally able to return up to 10% of their purchases for slow, non-moving or obsolete inventory for credit every six months. At the time of shipment to distributors, an accounts receivable for the selling price is recorded, as there is a legally enforceable right to receive payment, and inventory is relieved, as legal title to the inventory is transferred upon shipment. Revenues are recognized upon receiving notification from the distributors that products have been sold to end customers. Distributors provide information regarding products and quantity, end customer shipments and remaining inventory on hand. The associated deferred margin is included in the deferred revenues line item in the consolidated balance sheet. The Company recorded initial IC product revenue in 2012, and a significant reserve for returns has been recorded due to the product's early stage of testing and deployment in customer systems. IC product revenue has been included in the licensing and other revenue line item in the consolidated statements of operations and comprehensive income (loss). | ||||||||||||||
Cost of Revenue | ||||||||||||||
Cost of licensing and other revenue consists primarily of direct and indirect costs of IC product sales and engineering personnel costs directly related to maintenance and support services specified in licensing agreements. Maintenance and support typically includes engineering support to assist in the commencement of production of a licensee's products. | ||||||||||||||
Adveristing Costs | ||||||||||||||
Advertising costs are expensed as incurred. Advertising costs were not significant in the years ended December 31, 2013, 2012 and 2011. | ||||||||||||||
Research and Development | ||||||||||||||
Engineering costs are recorded as research and development expense in the period incurred. | ||||||||||||||
Stock-Based Compensation | ||||||||||||||
The Company recognizes stock-based compensation for awards on a straight-line basis over the requisite service period, usually the vesting period, based on the grant-date fair value. | ||||||||||||||
The Company records stock-based compensation expense for stock options granted to non-employees, excluding non-employee directors, based upon the estimated then-current fair value of the equity instrument using the Black-Scholes pricing model. Assumptions used to value the equity instruments are consistent with equity instruments issued to employees. The Company charges the value of the equity instrument to earnings over the term of the service agreement and the unvested shares underlying the option are subject to periodic revaluation over the remaining vesting period. | ||||||||||||||
Per Share Amounts | ||||||||||||||
Basic net income (loss) per share is computed by dividing net income (loss) for the period by the weighted-average number of shares of common stock outstanding during the period. Diluted net income (loss) per share gives effect to all potentially dilutive common shares outstanding during the period. Potential common shares are composed of incremental shares of common stock issuable upon the exercise of stock options or restricted stock awards. As of December 31, 2013, 2012 and 2011, stock awards to purchase approximately 10,072,000, 10,384,000 and 9,015,000 shares, respectively, were excluded from the computation of diluted net income (loss) per share as their inclusion would be anti-dilutive. The following table sets forth the computation of basic and diluted net income (loss) per share for the periods indicated (in thousands, except per share amounts): | ||||||||||||||
Year Ended December 31, | ||||||||||||||
2013 | 2012 | 2011 | ||||||||||||
Numerator: | ||||||||||||||
Net income (loss) | $ | (24,794 | ) | $ | (27,614 | ) | $ | 11,256 | ||||||
Denominator: | ||||||||||||||
Add: weighted-average common shares outstanding | 45,246 | 39,176 | 37,942 | |||||||||||
Less: unvested common shares subject to repurchase | — | — | (81 | ) | ||||||||||
| | | | | | | | | | | ||||
Total shares: basic | 45,246 | 39,176 | 37,861 | |||||||||||
Add: weighted-average stock options outstanding | — | — | 2,435 | |||||||||||
Add: common shares subject to repurchase | — | — | 81 | |||||||||||
| | | | | | | | | | | ||||
Total shares: diluted | 45,246 | 39,176 | 40,377 | |||||||||||
Net income (loss) per share: | ||||||||||||||
Basic | $ | (0.55 | ) | $ | (0.70 | ) | $ | 0.3 | ||||||
Diluted | $ | (0.55 | ) | $ | (0.70 | ) | $ | 0.28 | ||||||
Income Taxes | ||||||||||||||
The Company determines deferred tax assets and liabilities based upon the differences between the financial statement and tax basis of the Company's assets and liabilities using tax rates in effect for the year in which the Company expects the differences to affect taxable income. A valuation allowance is established for any deferred tax assets for which it is more likely than not that all or a portion of the deferred tax assets will not be realized. | ||||||||||||||
The Company files U.S. federal and state and foreign income tax returns in jurisdictions with varying statutes of limitations. The Company is currently under tax examination in India. The 2003 through 2013 tax years generally remain subject to examination by federal, state and foreign tax authorities. | ||||||||||||||
As of December 31, 2013, the Company did not have any unrecognized tax benefits nor expect its unrecognized tax benefits to change significantly over the next 12 months. The Company recognizes interest related to unrecognized tax benefits in its income tax expense and penalties related to unrecognized tax benefits as other income and expenses. During the years ended December 31, 2013, 2012 and 2011, the Company did not recognize any interest or penalties related to unrecognized tax benefits. | ||||||||||||||
Recent Accounting Pronouncements | ||||||||||||||
In July 2013, the FASB issued Accounting Standards Update No. 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (ASU 2013-11). ASU 2013-11 requires an entity to present an unrecognized tax benefit, or a portion of an unrecognized tax benefit, 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, with limited exceptions. ASU 2013-11 is effective for interim and annual periods beginning after December 15, 2013 and may be applied retrospectively. The adoption of the provisions of ASU 2013-11 is not expected to have any impact on the Company's financial position or results of operations. | ||||||||||||||
Consolidated_Balance_Sheets_an
Consolidated Balance Sheets and Statements of Operations and Comprehensive Income (Loss) Components | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Consolidated Balance Sheets and Statements of Operations and Comprehensive Income (Loss) Components | ' | ||||||||||
Consolidated Balance Sheets and Statements of Operations and Comprehensive Income (Loss) Components | ' | ||||||||||
Note 2: Consolidated Balance Sheets and Statements of Operations and Comprehensive Income (Loss) Components | |||||||||||
December 31, | |||||||||||
2013 | 2012 | ||||||||||
(in thousands) | |||||||||||
Prepaid expenses and other current assets: | |||||||||||
Inventory | $ | 567 | $ | 252 | |||||||
Interest receivable | 382 | 263 | |||||||||
Prepaid expenses and other assets | 722 | 847 | |||||||||
| | | | | | | | ||||
$ | 1,671 | $ | 1,362 | ||||||||
| | | | | | | | ||||
| | | | | | | | ||||
Property and equipment: | |||||||||||
Equipment, furniture and fixtures and leasehold improvements | $ | 3,923 | $ | 4,135 | |||||||
Acquired software | 686 | 651 | |||||||||
| | | | | | | | ||||
4,609 | 4,786 | ||||||||||
Less: Accumulated depreciation and amortization | (3,903 | ) | (3,548 | ) | |||||||
| | | | | | | | ||||
$ | 706 | $ | 1,238 | ||||||||
| | | | | | | | ||||
| | | | | | | | ||||
Property and equipment included $198,000 of testing equipment purchased through capital leases. | |||||||||||
December 31, | |||||||||||
2013 | 2012 | ||||||||||
Accrued expenses and other liabilities: | |||||||||||
Accrued wages and employee benefits | $ | 818 | $ | 881 | |||||||
Employee stock purchase plan withholdings | 286 | 292 | |||||||||
Professional fees | 61 | 503 | |||||||||
Other | 744 | 2,271 | |||||||||
| | | | | | | | ||||
$ | 1,909 | $ | 3,947 | ||||||||
| | | | | | | | ||||
| | | | | | | | ||||
Other income, net: | |||||||||||
2013 | 2012 | 2011 | |||||||||
(in thousands) | |||||||||||
Interest income | $ | 174 | $ | 171 | $ | 143 | |||||
Other income (expense), net | 35 | (16 | ) | 63 | |||||||
| | | | | | | | | | | |
$ | 209 | $ | 155 | $ | 206 | ||||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Fair Value of Financial Instruments | ' | |||||||||||||
Fair Value of Financial Instruments | ' | |||||||||||||
Note 3: Fair Value of Financial Instruments | ||||||||||||||
The estimated fair values of financial instruments outstanding were as follows (in thousands): | ||||||||||||||
December 31, 2013 | ||||||||||||||
Cost | Unrealized | Unrealized | Fair | |||||||||||
Gains | Losses | Value | ||||||||||||
Cash and cash equivalents | $ | 4,364 | $ | — | $ | — | $ | 4,364 | ||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Short-term investments: | ||||||||||||||
U.S. government debt securities | $ | 19,944 | $ | 11 | $ | (1 | ) | $ | 19,954 | |||||
Corporate notes | 7,245 | 2 | (2 | ) | 7,245 | |||||||||
Certificates of deposit | 4,994 | 1 | (2 | ) | 4,993 | |||||||||
| | | | | | | | | | | | | | |
Total short-term investments | $ | 32,183 | $ | 14 | $ | (5 | ) | $ | 32,192 | |||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Long-term investments: | ||||||||||||||
U.S. government debt securities | $ | 3,016 | $ | — | $ | — | $ | 3,016 | ||||||
Corporate notes | 9,466 | 9 | (1 | ) | 9,474 | |||||||||
Certificates of deposit | 1,440 | — | (4 | ) | 1,436 | |||||||||
| | | | | | | | | | | | | | |
Total long-term investments | $ | 13,922 | $ | 9 | $ | (5 | ) | $ | 13,926 | |||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
December 31, 2012 | ||||||||||||||
Cost | Unrealized | Unrealized | Fair | |||||||||||
Gains | Losses | Value | ||||||||||||
Cash and cash equivalents | $ | 2,529 | $ | — | $ | — | $ | 2,529 | ||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Short-term investments: | ||||||||||||||
U.S. government debt securities | $ | 15,852 | $ | 6 | $ | (2 | ) | $ | 15,856 | |||||
Corporate notes | 14,471 | 8 | (4 | ) | 14,475 | |||||||||
Certificates of deposit | 467 | — | — | 467 | ||||||||||
| | | | | | | | | | | | | | |
Total short-term investments | $ | 30,790 | $ | 14 | $ | (6 | ) | $ | 30,798 | |||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Long-term investments: | ||||||||||||||
U.S. government debt securities | $ | 6,330 | $ | 2 | $ | — | $ | 6,332 | ||||||
Corporate notes | 1,050 | 1 | 1,051 | |||||||||||
| | | | | | | | | | | | | | |
Total long-term investments | $ | 7,380 | $ | 3 | $ | — | $ | 7,383 | ||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
U.S. government debt securities include securities for government-sponsored enterprises and state and local municipalities. | ||||||||||||||
The estimated fair values of available-for-sale securities with unrealized losses were as follows (in thousands): | ||||||||||||||
December 31, 2013 | ||||||||||||||
Cost | Unrealized | Fair Value | ||||||||||||
Losses | ||||||||||||||
Short-term investments: | ||||||||||||||
U.S. government debt securities | $ | 5,289 | $ | (1 | ) | $ | 5,288 | |||||||
Corporate notes | 3,844 | (2 | ) | 3,842 | ||||||||||
Certificates of deposit | 3,080 | (2 | ) | 3,078 | ||||||||||
| | | | | | | | | | | ||||
Total short-term investments | $ | 12,213 | $ | (5 | ) | $ | 12,208 | |||||||
| | | | | | | | | | | ||||
| | | | | | | | | | | ||||
Long-term investments: | ||||||||||||||
U.S. government debt securities | $ | 1,253 | $ | — | $ | 1,253 | ||||||||
Corporate notes | 1,001 | (1 | ) | 1,000 | ||||||||||
Certificates of deposit | 1,440 | (4 | ) | 1,436 | ||||||||||
| | | | | | | | | | | ||||
Total long-term investments | $ | 3,694 | $ | (5 | ) | $ | 3,689 | |||||||
| | | | | | | | | | | ||||
| | | | | | | | | | | ||||
December 31, 2012 | ||||||||||||||
Cost | Unrealized | Fair | ||||||||||||
Losses | Value | |||||||||||||
Short-term investments: | ||||||||||||||
U.S. government debt securities | $ | 2,546 | $ | (2 | ) | $ | 2,544 | |||||||
Corporate notes | 5,668 | (4 | ) | 5,664 | ||||||||||
| | | | | | | | | | | ||||
Total short-term investments | $ | 8,214 | $ | (6 | ) | $ | 8,208 | |||||||
| | | | | | | | | | | ||||
| | | | | | | | | | | ||||
As of December 31, 2013 and 2012, all of the available-for-sale securities with unrealized losses had been in a loss position for less than 12 months. | ||||||||||||||
Cost and fair value of investments based on two maturity groups were as follows (in thousands): | ||||||||||||||
December 31, 2013 | ||||||||||||||
Cost | Unrealized | Unrealized | Fair | |||||||||||
Gains | Losses | Value | ||||||||||||
Due within 1 year | $ | 32,183 | $ | 14 | $ | (5 | ) | $ | 32,192 | |||||
Due in 1-2 years | 13,922 | 9 | (5 | ) | 13,926 | |||||||||
| | | | | | | | | | | | | | |
Total | $ | 46,105 | $ | 23 | $ | (10 | ) | $ | 46,118 | |||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
December 31, 2012 | ||||||||||||||
Cost | Unrealized | Unrealized | Fair | |||||||||||
Gains | Losses | Value | ||||||||||||
Due within 1 year | $ | 30,790 | $ | 14 | $ | (6 | ) | $ | 30,798 | |||||
Due in 1-2 years | 7,380 | 3 | — | 7,383 | ||||||||||
| | | | | | | | | | | | | | |
Total | $ | 38,170 | $ | 17 | $ | (6 | ) | $ | 38,181 | |||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
The following table represents the Company's fair value hierarchy for its financial assets (cash equivalents and investments) as of December 31, 2013 and 2012 (in thousands): | ||||||||||||||
December 31, 2013 | ||||||||||||||
Fair Value | Level 1 | Level 2 | Level 3 | |||||||||||
Money market funds | $ | 3,012 | $ | 3,012 | $ | — | $ | — | ||||||
U.S. government debt securities | 22,970 | — | 22,970 | — | ||||||||||
Corporate notes | 16,719 | — | 16,719 | — | ||||||||||
Certificates of deposit | 6,429 | — | 6,429 | — | ||||||||||
| | | | | | | | | | | | | | |
Total assets | $ | 49,130 | $ | 3,012 | $ | 46,118 | $ | — | ||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
December 31, 2012 | ||||||||||||||
Fair Value | Level 1 | Level 2 | Level 3 | |||||||||||
Money market funds | $ | 1,407 | $ | 1,407 | $ | — | $ | — | ||||||
U.S. government debt securities | 22,289 | — | 22,289 | — | ||||||||||
Corporate notes | 16,226 | — | 16,226 | — | ||||||||||
Certificates of deposit | 467 | — | 467 | — | ||||||||||
| | | | | | | | | | | | | | |
Total assets | $ | 40,389 | $ | 1,407 | $ | 38,982 | $ | — | ||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
There were no transfers in or out of Level 1 and Level 2 securities during the years ended December 31, 2013 and 2012. | ||||||||||||||
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2013 | |
Acquisitions | ' |
Acquisitions | ' |
Note 4: Acquisitions | |
In March 2010, the Company acquired all of the outstanding stock of MagnaLynx, Inc. (MagnaLynx), a provider of semiconductor interface technology. Under the terms of the merger agreement, the Company paid approximately $2.2 million to settle debt and certain other liabilities of MagnaLynx and approximately $1.2 million to MagnaLynx shareholders. An additional $0.5 million, referred to as the indemnification holdback, was payable 18 months after the closing, net of any costs related to indemnification claims that may have arisen during such 18 month period. An additional $1.0 million was payable six months after the closing as earn-out consideration based on MagnaLynx meeting certain contractually agreed-upon development milestones. Both the indemnification holdback and earn-out were paid in 2011. The earn-out consideration was included in the acquisition price because the Company expected that it was more likely than not that the objectives related to this earn-out would be met. | |
Patent_Sale_and_License
Patent Sale and License | 12 Months Ended |
Dec. 31, 2013 | |
Patent Sale and License | ' |
Patent Sale and License | ' |
Note 5: Patent Sale and License | |
In December 2011, the Company entered into a patent purchase agreement for the sale of 43 United States and 30 related foreign memory technology patents for $35 million in cash and a license for the use of those patents in the Bandwidth Engine ICs and other limited uses. The Company recognized a $35.6 million gain on this transaction, which was recorded as a reduction of operating expenses in the consolidated statements of operations and comprehensive income (loss). The gain was comprised of the $35 million of cash proceeds, plus $0.8 million for the patent license, less transaction costs. | |
Under the patent purchase agreement, the Company received a license to the sold patents to cover its Bandwidth Engine IC product line and technology partners, along with related rights to offer sublicenses to current and future partners. This right to use the patents was valued to be $0.8 million and has been recorded as an intangible asset, referred to as a patent license in Note 1. The value was determined based on the present value of the future cash flows that could potentially be generated by the patent license over its estimated remaining life. The patent license is being amortized over its estimated useful life of seven years. | |
Sale_of_IO_Technology
Sale of I/O Technology | 12 Months Ended |
Dec. 31, 2013 | |
Sale of I/O Technology | ' |
Sale of I/O Technology | ' |
Note 6: Sale of I/O Technology | |
In March 2012, the Company entered into an asset purchase agreement for an exclusive license of a portion of its intellectual property pertaining to its high-speed serial I/O technology for approximately $4.3 million. As part of the agreement, the Company provided certain technology transfer support services, and 15 employees of the Company's India subsidiary accepted employment with the purchaser. The Company received approximately $2.2 million, net of transaction costs, in cash upon execution of the agreement. The agreement provided for an additional $1.9 million, referred to as the holdback payment, to be paid upon providing technology transfer support services, achievement of certain contractually agreed-upon development milestones and expiration of an indemnification period. In July 2012 and March 2013, $1.3 million and $0.6 million, respectively, of the holdback payments were received, and no further amounts are due to the Company. These amounts have been recorded as gains on sale of assets and reductions of operating expenses in the consolidated statements of operations and comprehensive income (loss). | |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Income Taxes | ' | ||||||||||
Income Taxes | ' | ||||||||||
Note 7: Income Taxes | |||||||||||
The income tax provision (benefit) consisted of the following (in thousands): | |||||||||||
Year Ended | |||||||||||
December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Current portion: | |||||||||||
Federal | $ | — | $ | (5 | ) | $ | 247 | ||||
State | 2 | 3 | 3 | ||||||||
Foreign | 69 | 112 | 38 | ||||||||
| | | | | | | | | | | |
$ | 71 | $ | 110 | $ | 288 | ||||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. | |||||||||||
Significant components of the Company's deferred tax assets and liabilities were as follows (in thousands): | |||||||||||
December 31, | |||||||||||
2013 | 2012 | ||||||||||
Deferred tax assets: | |||||||||||
Federal and state loss carryforwards | $ | 39,455 | $ | 30,977 | |||||||
Reserves, accruals and other | 372 | 341 | |||||||||
Depreciation and amortization | 1,797 | 1,991 | |||||||||
Deferred stock-based compensation | 3,793 | 3,319 | |||||||||
Research and development credit carryforwards | 9,512 | 7,476 | |||||||||
Foreign tax and other credits | 1,326 | 1,326 | |||||||||
| | | | | | | | ||||
Total deferred tax assets | 56,255 | 45,430 | |||||||||
Deferred tax liabilities: | |||||||||||
Acquired intangible assets and other | 1,618 | 1,652 | |||||||||
Less: Valuation allowance | (54,637 | ) | (43,778 | ) | |||||||
| | | | | | | | ||||
Net deferred tax assets | $ | — | $ | — | |||||||
| | | | | | | | ||||
| | | | | | | | ||||
The valuation allowance increased by $10.9 million and $11.4 million for the years ended December 31, 2013 and December 31, 2012, respectively. The valuation allowance at December 31, 2013 includes $1.8 million related to stock option deductions incurred prior to January 1, 2006, the benefit of which will be credited to additional paid-in capital if they become realized. | |||||||||||
As of December 31, 2013, the Company had net operating loss carryforwards of approximately $103.6 million for federal income tax purposes and approximately $94.3 million for state income tax purposes. These losses are available to reduce future taxable income and expire at various times from 2014 through 2033. Approximately $5.6 million of federal net operating loss carryforwards and $4.8 million of state net operating loss carryforwards are related to excess tax benefits from stock-based compensation and will be charged to additional paid-in capital when realized. | |||||||||||
The Company also had federal research and development tax credit carryforwards of approximately $6.3 million, which will begin expiring in 2018, and California research and development credits of approximately $5.2 million, which do not have an expiration date. The Company had foreign tax credits available for federal income tax purposes of approximately $1.1 million which will begin to expire in 2014. | |||||||||||
The Company considers its undistributed earnings of its foreign subsidiary permanently reinvested in foreign operations and has not provided for U.S. income taxes on such earnings. As of December 31, 2013 the Company's unremitted earnings from its foreign subsidiary was $0.7 million. The determination of the unrecognized deferred U.S. income tax liability, if any, is not practicable. | |||||||||||
Utilization of the Company's net operating loss and tax credit carryforwards may be subject to a substantial annual limitation due to the ownership change limitations provided by the Internal Revenue Code and similar state provisions. Such an annual limitation could result in the expiration or elimination of the net operating loss and tax credit carryforwards before utilization. Management does not believe it is likely that utilization will in fact be significantly limited due to ownership change limitation provisions. | |||||||||||
A reconciliation of income taxes provided at the federal statutory rate (35%) to actual income tax provision (benefit) follows (in thousands): | |||||||||||
Year Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Income tax benefit computed at U.S. statutory rate | $ | (8,653 | ) | $ | (9,626 | ) | $ | 4,040 | |||
Federal alternative minimum tax | — | — | 247 | ||||||||
State income tax (net of federal benefit) | 2 | 2 | 2 | ||||||||
Foreign income tax at rate different from U.S. statutory rate | (11 | ) | (13 | ) | (9 | ) | |||||
Research and development credits | (1,196 | ) | (691 | ) | (1,254 | ) | |||||
Foreign tax credit | — | — | (17 | ) | |||||||
Stock-based compensation | 91 | 252 | 292 | ||||||||
Amortization of intangible assets | (100 | ) | (100 | ) | (657 | ) | |||||
Valuation allowance changes affecting tax provision | 9,915 | 10,526 | (2,363 | ) | |||||||
Other | 23 | (240 | ) | 7 | |||||||
| | | | | | | | | | | |
Income tax provision | $ | 71 | $ | 110 | $ | 288 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
The domestic and foreign components of income (loss) before income tax provision were as follows (in thousands): | |||||||||||
Year Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
U.S. | $ | (24,906 | ) | $ | (27,737 | ) | $ | 11,363 | |||
Non-U.S. | 183 | 233 | 181 | ||||||||
| | | | | | | | | | | |
$ | (24,723 | ) | $ | (27,504 | ) | $ | 11,544 | ||||
| | | | | | | | | | | |
| | | | | | | | | | | |
StockBased_Compensation
Stock-Based Compensation | 12 Months Ended | |||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||
Stock-Based Compensation | ' | |||||||||||||||||||||||||
Stock-Based Compensation | ' | |||||||||||||||||||||||||
Note 8: Stock-Based Compensation | ||||||||||||||||||||||||||
Equity Compensation Plans | ||||||||||||||||||||||||||
Common Stock Option Plans | ||||||||||||||||||||||||||
In 2000, the Company adopted the 2000 Stock Plan, which was amended in 2004 (Amended 2000 Plan), and terminated in 2010. As of December 31, 2013, no options were available for future issuance under the Amended 2000 Plan and options to purchase approximately 1,879,000 shares were outstanding with a weighted-average exercise price of $3.79 per share. The Amended 2000 Plan will remain in effect as to outstanding equity awards granted under the plan prior to the date of expiration. | ||||||||||||||||||||||||||
In June 2010, the Company's stockholders approved the 2010 Equity Incentive Plan (2010 Plan). The 2010 Plan authorizes the board of directors or the compensation committee of the board of directors to grant a broad range of awards including stock options, stock appreciation rights, restricted stock, performance-based awards, and restricted stock units. Under the 2010 Plan, 4,000,000 shares were initially reserved for issuance and there will be an automatic annual increase in the share reserve of 500,000 on January 1 of each year. The 2010 Plan has a 10 year term and provides for annual option grants or other awards to our non-employee directors to acquire up to 40,000 shares and for a one-time grant of an option or other award to a non-employee director to acquire up to 120,000 shares upon his or her initial appointment or election to the board of directors. | ||||||||||||||||||||||||||
The term of options granted under the 2010 Plan may not exceed ten years. The term of all incentive stock options granted to a person who, at the time of grant, owns stock representing more than 10% of the voting power of all classes of the Company's stock may not exceed five years. | ||||||||||||||||||||||||||
The exercise price of stock options granted under the 2010 Plan must be at least equal to the fair market value of the shares on the date of grant. Generally, options granted under the 2010 Plan will vest over a four-year period and will have a six or ten-year term. In addition, the 2010 Plan provides for automatic acceleration of vesting for options granted to non-employee directors upon a change of control of the Company. | ||||||||||||||||||||||||||
The Amended 2000 Plan and 2010 Plan are referred to collectively as the "Plans." | ||||||||||||||||||||||||||
The Company may also award shares to new employees outside the Plans, as material inducements to the acceptance of employment with the Company. These grants must be approved by the compensation committee of the board of directors, a majority of the independent directors or an authorized executive officer. | ||||||||||||||||||||||||||
Employee Stock Purchase Plan | ||||||||||||||||||||||||||
In June 2010, the Company's stockholders approved the 2010 Employee Stock Purchase Plan (ESPP). A total of 2,000,000 shares of common stock have been reserved for issuance under the ESPP. The ESPP, which is intended to qualify under Section 423 of the Internal Revenue Code, is administered by the board of directors or the compensation committee of the board of directors. The ESPP provides that eligible employees may purchase up to $25,000 worth of the Company's common stock annually over the course of two six-month offering periods. The purchase price to be paid by participants is 85% of the price per share of the Company's common stock either at the beginning or the end of each six-month offering period, whichever is less. On September 1, 2010, the Company commenced the first offering period under the ESPP. For the year ended December 31, 2013, approximately 275,000 shares of common stock were issued at an aggregate purchase price of approximately $0.8 million under the ESPP. For the year ended December 31, 2012, approximately 351,000 shares of common stock were issued at an aggregate purchase price of approximately $1.1 million under the ESPP. For the year ended December 31, 2011, approximately 313,000 shares of common stock were issued at an aggregate purchase price of approximately $1.1 million under the ESPP. As of December 31, 2013, there were approximately 1,061,000 shares authorized and unissued under the ESPP. | ||||||||||||||||||||||||||
Stock-Based Compensation Expense | ||||||||||||||||||||||||||
The Company recorded $3.7 million, $3.8 million and $3.8 million of stock-based compensation expense in the years ended December 31, 2013, 2012 and 2011, respectively. The Company is required to present the tax benefits resulting from tax deductions in excess of the compensation cost recognized from the exercise of stock options as financing cash flows in the consolidated statements of cash flows. For the years ended December 31, 2013, 2012 and 2011, there were no such tax benefits associated with the exercise of stock options. | ||||||||||||||||||||||||||
In June 2011, the Company's executive vice president of engineering resigned from the Company and agreed to act as a consultant. As compensation for the consulting services, an option to purchase 675,000 shares of the Company's common stock that was granted to the executive vice president on June 26, 2009, of which the unvested and unexercised portion would have otherwise terminated by its terms following the termination of employment with the Company, remained in effect and continued to vest in accordance with its vesting terms until termination of the consulting agreement in August 2012. The Company accounted for this option as a variable award and the fair value compensation expense was recognized each period over the vesting term of the option. | ||||||||||||||||||||||||||
Valuation Assumptions and Expense Information for Stock-based Compensation | ||||||||||||||||||||||||||
The fair value of the Company's share-based payment awards for the years ended December 31, 2013, 2012 and 2011 was estimated on the grant dates using the Black-Scholes valuation option-pricing model with the following assumptions: | ||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||
Employee stock options: | 2013 | 2012 | 2011 | |||||||||||||||||||||||
Risk-free interest rate | 0.5% - 1.7 | % | 0.2% - 0.8 | % | 0.2% - 1.7 | % | ||||||||||||||||||||
Volatility | 57.7% - 62.9 | % | 59.5% - 73.1 | % | 40.7% - 65.4 | % | ||||||||||||||||||||
Expected life (years) | 4.0-5.0 | 4 | 4 | |||||||||||||||||||||||
Dividend yield | 0 | % | 0 | % | 0 | % | ||||||||||||||||||||
The risk-free interest rate was derived from the Daily Treasury Yield Curve Rates as published by the U.S. Department of the Treasury as of the grant date for terms equal to the expected terms of the options. The expected volatility was based on the historical volatility of the Company's stock price over the expected term of the options. The expected term of options granted was derived from historical data based on employee exercises and post-vesting employment termination behavior. A dividend yield of zero is applied because the Company has never paid dividends and has no intention to pay dividends in the near future. | ||||||||||||||||||||||||||
The stock-based compensation expense recorded is adjusted based on estimated forfeiture rates. An annualized forfeiture rate has been used as a best estimate of future forfeitures based on the Company's historical forfeiture experience. The stock-based compensation expense will be adjusted in later periods if the actual forfeiture rate is different from the estimate. | ||||||||||||||||||||||||||
A summary of activity under the Plans is presented below (in thousands, except exercise price): | ||||||||||||||||||||||||||
Shares | Number of | Weighted | ||||||||||||||||||||||||
Available | Options | Average | ||||||||||||||||||||||||
for Grant | outstanding | Exercise | ||||||||||||||||||||||||
Prices | ||||||||||||||||||||||||||
Balance at December 31, 2010 | 3,650 | 5,594 | $ | 4.64 | ||||||||||||||||||||||
Additional authorized under the 2010 Plan | 500 | — | — | |||||||||||||||||||||||
Options granted | (2,201 | ) | 2,201 | $ | 4.13 | |||||||||||||||||||||
Options cancelled | 743 | (743 | ) | $ | 5.41 | |||||||||||||||||||||
Options exercised | — | (524 | ) | $ | 3.34 | |||||||||||||||||||||
Options expired | (715 | ) | — | $ | 5.41 | |||||||||||||||||||||
| | | | | | | | | | | ||||||||||||||||
Balance at December 31, 2011 | 1,977 | 6,528 | $ | 4.48 | ||||||||||||||||||||||
Additional authorized under the 2010 Plan | 500 | — | — | |||||||||||||||||||||||
Options granted | (1,827 | ) | 1,827 | $ | 3.19 | |||||||||||||||||||||
Options cancelled | 1,217 | (1,217 | ) | $ | 5.42 | |||||||||||||||||||||
Options exercised | — | (266 | ) | $ | 2.38 | |||||||||||||||||||||
Options expired | (602 | ) | — | $ | 6.89 | |||||||||||||||||||||
| | | | | | | | | | | ||||||||||||||||
Balance at December 31, 2012 | 1,265 | 6,872 | $ | 4.05 | ||||||||||||||||||||||
Additional authorized under the 2010 Plan | 500 | — | — | |||||||||||||||||||||||
Restricted stock units granted | (35 | ) | — | — | ||||||||||||||||||||||
Options granted | (1,543 | ) | 1,543 | $ | 4.27 | |||||||||||||||||||||
Options cancelled | 1,123 | (1,123 | ) | $ | 6 | |||||||||||||||||||||
Options exercised | — | (565 | ) | $ | 3.05 | |||||||||||||||||||||
Options expired | (888 | ) | — | $ | 6.49 | |||||||||||||||||||||
| | | | | | | | | | | ||||||||||||||||
Balance at December 31, 2013 | 422 | 6,727 | $ | 3.86 | ||||||||||||||||||||||
| | | | | | | | | | | ||||||||||||||||
| | | | | | | | | | | ||||||||||||||||
A summary of the inducement grant option activity is presented below (in thousands, except exercise price): | ||||||||||||||||||||||||||
Options Outstanding | ||||||||||||||||||||||||||
Number of | Weighted | |||||||||||||||||||||||||
Shares | Average | |||||||||||||||||||||||||
Exercise Prices | ||||||||||||||||||||||||||
Balance at December 31, 2010 | 4,812 | $ | 2.92 | |||||||||||||||||||||||
Granted | 400 | $ | 6.06 | |||||||||||||||||||||||
Cancelled | (48 | ) | $ | 1.54 | ||||||||||||||||||||||
Exercised | (349 | ) | $ | 1.55 | ||||||||||||||||||||||
| | | | | | | | |||||||||||||||||||
Balance at December 31, 2011 | 4,815 | $ | 3.29 | |||||||||||||||||||||||
Granted | 350 | $ | 3.92 | |||||||||||||||||||||||
Cancelled | (550 | ) | $ | 1.55 | ||||||||||||||||||||||
Exercised | (1,257 | ) | $ | 1.55 | ||||||||||||||||||||||
| | | | | | | | |||||||||||||||||||
Balance at December 31, 2012 | 3,358 | $ | 4.29 | |||||||||||||||||||||||
Granted | 347 | $ | 3.94 | |||||||||||||||||||||||
Cancelled | (7 | ) | $ | 3.45 | ||||||||||||||||||||||
Exercised | (520 | ) | $ | 3.28 | ||||||||||||||||||||||
| | | | | | | | |||||||||||||||||||
Balance at December 31, 2013 | 3,178 | $ | 4.42 | |||||||||||||||||||||||
| | | | | | | | |||||||||||||||||||
| | | | | | | | |||||||||||||||||||
A summary of restricted stock unit activity is presented below (in thousands, except fair value): | ||||||||||||||||||||||||||
Number | Weighted | |||||||||||||||||||||||||
of | Average | |||||||||||||||||||||||||
Shares | Grant-Date | |||||||||||||||||||||||||
Fair Value | ||||||||||||||||||||||||||
Non-vested shares at December 31, 2009 | 46 | $ | 1.6 | |||||||||||||||||||||||
Vested | (15 | ) | $ | 1.6 | ||||||||||||||||||||||
| | | | | | | | |||||||||||||||||||
Non-vested shares at December 31, 2010 | 31 | $ | 1.6 | |||||||||||||||||||||||
Vested | (16 | ) | $ | 1.6 | ||||||||||||||||||||||
| | | | | | | | |||||||||||||||||||
Non-vested shares at December 31, 2011 | 15 | $ | 1.6 | |||||||||||||||||||||||
Vested | (12 | ) | $ | 1.62 | ||||||||||||||||||||||
Cancelled | (3 | ) | $ | 1.55 | ||||||||||||||||||||||
| | | | | | | | |||||||||||||||||||
Non-vested shares at December 31, 2012 | — | — | ||||||||||||||||||||||||
Granted | 35 | $ | 4.46 | |||||||||||||||||||||||
Vested | (8 | ) | $ | 4.46 | ||||||||||||||||||||||
| | | | | | | | |||||||||||||||||||
Non-vested shares at December 31, 2013 | 27 | $ | 4.46 | |||||||||||||||||||||||
| | | | | | | | |||||||||||||||||||
| | | | | | | | |||||||||||||||||||
The following table summarizes significant ranges of outstanding and exercisable options as of December 31, 2013 (in thousands, except contractual life and exercise price): | ||||||||||||||||||||||||||
Options Outstanding | Options Exercisable | |||||||||||||||||||||||||
Range of Exercise Price | Number | Weighted | Weighted | Aggregate | Number | Weighted | Weighted | Aggregate | ||||||||||||||||||
Outstanding | Average | Average | Intrinsic | Exercisable | Average | Average | Intrinsic | |||||||||||||||||||
Remaining | Exercise | value | Remaining | Exercise | value | |||||||||||||||||||||
Contractual | Price | Contractual | Price | |||||||||||||||||||||||
Life | Life | |||||||||||||||||||||||||
(in Years) | (in Years) | |||||||||||||||||||||||||
$1.50 - $3.23 | 2,846 | 3.28 | $ | 2.59 | $ | 8,330 | 1,807 | 2.63 | $ | 2.3 | $ | 5,814 | ||||||||||||||
$3.24 - $4.19 | 2,521 | 4.34 | $ | 3.77 | $ | 4,413 | 1,355 | 3.72 | $ | 3.76 | $ | 2,387 | ||||||||||||||
$4.20 - $5.61 | 3,621 | 3.93 | $ | 4.88 | $ | 2,422 | 2,493 | 1.95 | $ | 5.07 | $ | 1,240 | ||||||||||||||
$5.62 - $6.50 | 917 | 2.94 | $ | 5.98 | — | 672 | 2.8 | $ | 5.98 | — | ||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | |
9,905 | 3.76 | $ | 4.04 | $ | 15,165 | 6,327 | 2.61 | $ | 4.09 | $ | 9,441 | |||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
As of December 31, 2013, the Company had approximately 9.4 million shares subject to outstanding options fully vested and expected to vest, after estimated forfeitures, with a remaining contractual life of 3.62 years, weighted average exercise price of $4.05 and aggregate intrinsic value of approximately $14.4 million. | ||||||||||||||||||||||||||
The total fair value of shares subject to outstanding options vested during the years ended December 31, 2013 and December 31, 2012 calculated using the Black-Scholes valuation method was $3.2 million and $2.4 million, respectively. The total intrinsic value of employee stock options exercised during the years ended December 31, 2013, 2012 and 2011 was $1.4 million, $2.7 million and $2.4 million, respectively. | ||||||||||||||||||||||||||
Options to purchase 6.4 million shares with weighted average exercised prices of $4.41 per share were exercisable at December 31, 2012. As of December 31, 2013, total compensation costs related to unvested, but not yet recognized, stock-based awards was $5.5 million, net of estimated forfeitures. This cost will be amortized on a straight-line basis over a weighted average remaining period of 2.5 years and will be adjusted for subsequent change in estimated forfeitures. | ||||||||||||||||||||||||||
Stockholders_Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2013 | |
Stockholders' Equity | ' |
Stockholders' Equity | ' |
Note 9: Stockholders' Equity | |
In the second quarter of 2013, the Company completed a public offering and issued approximately 7.5 million shares of its common stock for approximately $27.7 million in net proceeds. The Company's chief executive officer purchased 250,000 shares at the public offering price. | |
Stockholder Rights Plan | |
On November 10, 2010, the Company executed a rights agreement in connection with the declaration by the Company's board of directors of a dividend of one preferred stock purchase right (a "Right") to be paid on November 10, 2010 (the "Record Date") for each share of the Company's common stock issued and outstanding at the close of business on the Record Date. Each Right entitles the registered holder to purchase one one-thousandth of a share of Series AA Preferred Stock, $0.01 par value per share (a "Preferred Share"), of the Company at a price of $48.00 per one one-thousandth of a Preferred Share, subject to adjustment. The rights will not be exercisable until a third party acquires 15.0% of the Company's common stock or commences or announces its intent to commence a tender offer for at least 15.0% of the common stock, other than holders of "grandfathered stock" as defined below. | |
"Grandfathered stock" refers to stock held by Carl E. Berg and his affiliates. The beneficial ownership threshold for a holder of grandfathered stock is 20%, rather than 15%. In 2011, the Company amended the rights agreement to designate Artis Capital Management L.P. and its affiliates (collectively, "Artis") as a holder of grandfathered stock. In 2012, an amendment removed this designation and reduced Artis' ownership threshold to 15%. In addition, under the rights agreement, the firm of Ingalls & Snyder, or I&S, and its managed account beneficial owners collectively will not trigger the rights as long as none of their shares are held for the purpose of acquiring control or effecting change or influence in control of the Company. This exclusion applies only to shares of common stock for which there is only shared dispositive power and I&S has only non-discretionary voting power. The rights agreement could delay, deter or prevent an investor from acquiring the Company in a transaction that could otherwise result in its stockholders receiving a premium over the market price for their shares of common stock. | |
Retirement_Savings_Plan
Retirement Savings Plan | 12 Months Ended |
Dec. 31, 2013 | |
Retirement Savings Plan | ' |
Retirement Savings Plan | ' |
Note 10: Retirement Savings Plan | |
Effective January 1997, the Company adopted the MoSys 401(k) Plan (the Savings Plan) which qualifies as a thrift plan under Section 401(k) of the Internal Revenue Code. Full-time and part-time employees who are at least 21 years of age are eligible to participate in the Savings Plan at the time of hire. Participants may contribute up to 15% of their earnings to the Savings Plan. No matching contributions were made by the Company in the years ended December 31, 2013, 2012 and 2011. | |
Business_Segments_Concentratio
Business Segments, Concentration of Credit Risk and Significant Customers | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Business Segments, Concentration of Credit Risk and Significant Customers | ' | ||||||||||
Business Segments, Concentration of Credit Risk and Significant Customers | ' | ||||||||||
Note 11: Business Segments, Concentration of Credit Risk and Significant Customers | |||||||||||
The Company operates in one business segment and uses one measurement of profitability for its business. Revenue attributed to the United States and to all foreign countries is based on the geographical location of the customer. | |||||||||||
Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash, cash equivalents, short-term and long-term investments and accounts receivable. Cash, cash equivalents and short-term and long term investments are deposited with high credit quality institutions. | |||||||||||
The Company recognized revenue from licensing of its technologies or shipment of ICs to customers in North America, Asia and Europe as follows (in thousands): | |||||||||||
Years Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Taiwan | $ | 1,831 | $ | 1,700 | $ | 3,197 | |||||
North America | 1,318 | 2,511 | 5,476 | ||||||||
Japan | 1,207 | 1,571 | 4,700 | ||||||||
Rest of Asia | 42 | 214 | 7 | ||||||||
Europe | — | 86 | 727 | ||||||||
| | | | | | | | | | | |
Total | $ | 4,398 | $ | 6,082 | $ | 14,107 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Customers who accounted for at least 10% of total revenues were as follows: | |||||||||||
Years Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Customer A | 41 | % | 28 | % | 23 | % | |||||
Customer B | 13 | % | 26 | % | 12 | % | |||||
Customer C | * | 12 | % | 17 | % | ||||||
* | |||||||||||
Represents percentage less than 10%. | |||||||||||
Two customers accounted for 96% of net accounts receivable at December 31, 2013. Three customers accounted for 100% of net accounts receivable at December 31, 2012. | |||||||||||
Net property and equipment, classified by major geographic areas, was as follows at December 31, 2013 and 2012 (in thousands): | |||||||||||
December 31, | |||||||||||
2013 | 2012 | ||||||||||
(in thousands) | |||||||||||
U.S. | $ | 610 | $ | 1,114 | |||||||
Non-U.S. | 96 | 124 | |||||||||
| | | | | | | | ||||
Total | $ | 706 | $ | 1,238 | |||||||
| | | | | | | | ||||
| | | | | | | | ||||
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Commitments and Contingencies | ' | ||||||||||
Commitments and Contingencies | ' | ||||||||||
Note 12: Commitments and Contingencies | |||||||||||
Leases and Purchase Commitments | |||||||||||
The Company leases its facilities under non-cancelable operating leases that expire at various dates through 2020. Rent expense was approximately $822,000, $895,000 and $915,000 for the years ended December 31, 2013, 2012 and 2011, respectively. The leases provide for monthly payments and are being charged to operations ratably over the lease terms. In addition to the minimum lease payments, the Company is responsible for property taxes, insurance and certain other operating costs. | |||||||||||
Future minimum lease payments under non-cancelable operating leases and purchase commitments are as follows (in thousands): | |||||||||||
Year ended December 31, | Operating | Purchase | Total | ||||||||
leases | commitments | ||||||||||
2014 | $ | 756 | $ | 2,875 | $ | 3,631 | |||||
2015 | 713 | 2,565 | 3,278 | ||||||||
2016 | 735 | 368 | 1,103 | ||||||||
2017 | 756 | — | 756 | ||||||||
2018 | 734 | — | 734 | ||||||||
Thereafter | 1,270 | — | 1,270 | ||||||||
| | | | | | | | | | | |
Total minimum payments | $ | 4,964 | $ | 5,808 | $ | 10,772 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Purchase commitments include licenses related to computer-aided design tools payable through March 2016. | |||||||||||
Indemnification | |||||||||||
In the ordinary course of business, the Company enters into contractual arrangements under which it may agree to indemnify the counterparties from any losses incurred relating to breach of representations and warranties, failure to perform certain covenants, or claims and losses arising from certain events as outlined within the particular contract, which may include, for example, losses arising from litigation or claims relating to past performance. Such indemnification clauses may not be subject to maximum loss clauses. The Company has entered into indemnification agreements with its officers and directors. No material amounts were reflected in the Company's consolidated financial statements for the years ended December 31, 2013, 2012 or 2011 related to these indemnifications. | |||||||||||
The Company has not estimated the maximum potential amount of indemnification liability under these agreements due to the limited history of prior claims and the unique facts and circumstances applicable to each particular agreement. To date, the Company has not made any payments related to these indemnification agreements. | |||||||||||
Legal Matters | |||||||||||
The Company is not a party to any material legal proceeding that the Company believes is likely to have a material adverse effect on its consolidated financial position or results of operations. From time to time the Company may be subject to legal proceedings and claims in the ordinary course of business. These claims, even if not meritorious, could result in the expenditure of significant financial resources and diversion of management efforts. | |||||||||||
In September 2010, a claimant filed suit against the Company seeking a contractual payment of approximately 200,000 shares of the Company's common stock, among other claims. In November 2010, the suit went to arbitration, and, in December 2010, the Company filed a counter claim against the claimant. On April 3, 2012, the arbitrator ruled against the Company and awarded the claimant a cash award of approximately $1.4 million, which was paid in the second quarter of 2012 and has been recorded as a repurchase of common stock in the consolidated statements of cash flows. The Company repurchased the disputed shares in the second quarter of 2012, and the shares were retired. In the first quarter of 2012, the value of the disputed shares, $0.8 million as of the arbitration settlement date, was recorded as a reduction to stockholders' equity as a stock repurchase. The remaining amount of $0.6 million was recorded as a selling, general and administrative expense in the Company's consolidated statements of operations and comprehensive income (loss). | |||||||||||
Related_Party_Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2013 | |
Related Party Transactions | ' |
Related Party Transactions | ' |
Note 13: Related Party Transactions | |
In February 2012, the Company entered into a strategic development and marketing agreement with Credo Semiconductor (Hong Kong) Ltd. (Credo), a privately-funded, fabless semiconductor company, to develop, market and sell integrated circuits. Two of the Company's executive officers between them loaned a total of $250,000 to Credo for a portion of the seed funding needed by Credo to commence its integrated circuit design efforts. These loans may be converted into minority equity interests in Credo. The agreement called for the Company to make payments to Credo upon Credo achieving certain development and verification milestones towards the development of IC products and provides the Company with exclusive sales and marketing rights for such IC products. In 2012, Credo achieved a number of the milestones set forth in the agreement, and the Company paid Credo $1.1 million. In 2013, the Company paid Credo an additional $1.4 million for achievement of additional development milestones, as well as for mask costs and wafer purchases from third-party vendors. All amounts incurred have been recorded as research and development expenses. In the first half of 2013, the Company announced prototype samples of SerDes products developed pursuant to the strategic development and marketing agreement. Under the agreement, the first $2.3 million of gross profits generated by the sale of these integrated circuits will be retained by the Company, and, thereafter, the gross profits will be shared equally by the Company and Credo. As of December 31, 2013, $0.2 million of future payments were recorded as a current liability. | |
Schedule_IIValuation_and_Quali
Schedule II-Valuation and Qualifying Accounts | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
Schedule II-Valuation and Qualifying Accounts | ' | |||||||||||||||||||
Schedule II-Valuation and Qualifying Accounts | ' | |||||||||||||||||||
Schedule II—Valuation and Qualifying Accounts | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Additions | Deductions | |||||||||||||||||||
Description | Balance at | Charged to | Charged to | Amounts | Amounts | Balance at | ||||||||||||||
beginning of | costs and | other | recovered | written | end of | |||||||||||||||
period | expenses | accounts | off | period | ||||||||||||||||
Allowance for doubtful accounts | ||||||||||||||||||||
Year ended December 31, 2013 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||
Year ended December 31, 2012 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||
Year ended December 31, 2011 | $ | 125 | $ | — | $ | — | $ | (125 | ) | $ | — | $ | — |
The_Company_and_Summary_of_Sig1
The Company and Summary of Significant Accounting Policies (Policies) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
The Company and Summary of Significant Accounting Policies | ' | |||||||||||||
Basis of Presentation | ' | |||||||||||||
Basis of Presentation | ||||||||||||||
The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany transactions and balances have been eliminated in consolidation. The Company's fiscal year ends on December 31 of each calendar year. | ||||||||||||||
Use of Estimates | ' | |||||||||||||
Use of Estimates | ||||||||||||||
The preparation of financial statements in accordance with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues recognized under the percentage of completion method and expenses recognized during the reported period. Actual results could differ from those estimates. | ||||||||||||||
Foreign Currency | ' | |||||||||||||
Foreign Currency | ||||||||||||||
The functional currency of the Company's foreign entities is the U.S. dollar. The financial statements of these entities are translated into U.S. dollars and the resulting gains or losses are included in other income, net in the consolidated statements of operations and comprehensive income (loss). Such gains and losses were not material for any period presented. | ||||||||||||||
Cash Equivalents and Investments | ' | |||||||||||||
Cash Equivalents and Investments | ||||||||||||||
The Company has invested its excess cash in money market accounts, certificates of deposit, corporate debt, government agency and municipal debt securities and considers all highly liquid debt instruments purchased with an original maturity of three months or less to be cash equivalents. Investments with original maturities greater than three months and remaining maturities less than one year are classified as short-term investments. Investments with remaining maturities greater than one year are classified as long-term investments. Management generally determines the appropriate classification of securities at the time of purchase. All securities are classified as available-for-sale. The Company's available-for-sale short-term and long-term investments are carried at fair value, with the unrealized holding gains and losses reported in accumulated other comprehensive income. Realized gains and losses and declines in the value judged to be other than temporary are included in the other income, net line item in the consolidated statements of operations and comprehensive income (loss). The cost of securities sold is based on the specific identification method. | ||||||||||||||
Fair Value Measurements | ' | |||||||||||||
Fair Value Measurements | ||||||||||||||
The Company measures the fair value of financial instruments using a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels, as follows: | ||||||||||||||
Level 1—Inputs used to measure fair value are unadjusted quoted prices that are available in active markets for the identical assets or liabilities as of the reporting date. | ||||||||||||||
Level 2—Pricing is provided by third party sources of market information obtained through the Company's investment advisors rather than models. The Company does not adjust for or apply any additional assumptions or estimates to the pricing information it receives from advisors. The Company's Level 2 securities include cash equivalents and available-for-sale securities, which consisted primarily of certificates of deposit, corporate debt, and government agency and municipal debt securities from issuers with high quality credit ratings. The Company's investment advisors obtain pricing data from independent sources, such as Standard & Poor's, Bloomberg and Interactive Data Corporation, and rely on comparable pricing of other securities because the Level 2 securities are not actively traded and have fewer observable transactions. The Company considers this the most reliable information available for the valuation of the securities. | ||||||||||||||
Level 3—Unobservable inputs that are supported by little or no market activity and reflect the use of significant management judgment are used to measure fair value. These values are generally determined using pricing models for which the assumptions utilize management's estimates of market participant assumptions. The determination of fair value for Level 3 investments and other financial instruments involves the most management judgment and subjectivity. | ||||||||||||||
Allowance for Doubtful Accounts | ' | |||||||||||||
Allowance for Doubtful Accounts | ||||||||||||||
The Company establishes an allowance for doubtful accounts to ensure that its trade receivables balances are not overstated due to uncollectibility. The Company performs ongoing customer credit evaluations within the context of the industry in which it operates and generally does not require collateral from its customers. A specific allowance of up to 100% of the invoice value is provided for any problematic customer balances. Delinquent account balances are written off after management has determined that the likelihood of collection is remote. The Company grants credit only to customers deemed creditworthy in the judgment of management. There was no allowance for doubtful accounts receivable at December 31, 2013 or December 31, 2012. | ||||||||||||||
Inventory | ' | |||||||||||||
Inventory | ||||||||||||||
The Company values its inventories at the lower of cost, which approximates actual cost on a first-in, first-out basis, or market value. The Company records inventory reserves for estimated obsolescence or unmarketable inventories based upon assumptions about future demand and market conditions. Once a reserve is established, it is maintained until the product to which it relates is sold or otherwise disposed of. If actual market conditions are less favorable than those expected by management, additional adjustment to inventory valuation may be required. As of December 31, 2013 and 2012, inventory has been included in the prepaid expenses and other current assets line item of the consolidated balance sheets. | ||||||||||||||
Property and Equipment | ' | |||||||||||||
Property and Equipment | ||||||||||||||
Property and equipment are originally recorded at cost. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, generally three to five years. Depreciation is recorded in operating expenses in the consolidated statements of operations and comprehensive income (loss). Leasehold improvements and assets acquired through capital leases are amortized over the shorter of their estimated useful life or the lease term. | ||||||||||||||
Valuation of Long-lived Assets | ' | |||||||||||||
Valuation of Long-lived Assets | ||||||||||||||
The Company evaluates the recoverability of long-lived assets with finite lives whenever events or changes in circumstances occur that indicate that the carrying value of the asset or asset group may not be recoverable. Finite-lived intangible assets are being amortized on a straight-line basis over their estimated useful lives of three to seven years. An impairment charge is recognized as the difference between the net book value of such assets and the fair value of such assets at the date of measurement. The measurement of impairment requires management to estimate future cash flows and the fair value of long-lived assets. | ||||||||||||||
Intangible Assets | ' | |||||||||||||
Intangible Assets | ||||||||||||||
Intangible assets acquired in business combinations, referred to as purchased intangible assets, are accounted for based on the fair value of assets purchased and are amortized over the period in which economic benefit is estimated to be received. In December 2011, the Company sold 73 of its memory technology patents and received a license to those patents for use in its Bandwidth Engine ICs and other limited instances. The fair value of the patent rights received was recorded as a patent license (see Note 5). Identifiable intangible assets relating to business combinations and the patent license were as follows (dollar amounts in thousands): | ||||||||||||||
December 31, 2013 | ||||||||||||||
Life | Gross | Accumulated | Net | |||||||||||
(years) | Carrying | Amortization | Carrying | |||||||||||
Amount | Amount | |||||||||||||
Developed technology | 5-Mar | $ | 9,240 | $ | 8,142 | $ | 1,098 | |||||||
Patent license | 7 | 780 | 223 | 557 | ||||||||||
| | | | | | | | | | | | | | |
Total | $ | 10,020 | $ | 8,365 | $ | 1,655 | ||||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
December 31, 2012 | ||||||||||||||
Life | Gross | Accumulated | Net | |||||||||||
(years) | Carrying | Amortization | Carrying | |||||||||||
Amount | Amount | |||||||||||||
Developed technology | 5-Mar | $ | 9,240 | $ | 7,255 | $ | 1,985 | |||||||
Customer relationships | 3 | 390 | 390 | — | ||||||||||
| | | | | | | | | | | | | | |
Subtotal purchased intangible assets | 9,630 | 7,645 | 1,985 | |||||||||||
Patent license | 7 | 780 | 111 | 669 | ||||||||||
| | | | | | | | | | | | | | |
Total | $ | 10,410 | $ | 7,756 | $ | 2,654 | ||||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Amortization expense has been included in research and development expense in the consolidated statements of operations and comprehensive income (loss). The estimated aggregate amortization expense to be recognized in future years is approximately $1.0 million for 2014, $0.3 million for 2015 and $0.1 million annually for 2016 and 2018. | ||||||||||||||
Goodwill | ' | |||||||||||||
Goodwill | ||||||||||||||
The Company reviews goodwill for impairment on an annual basis or whenever events or changes in circumstances indicate the carrying value of an asset may not be recoverable. The Company first assesses qualitative factors to determine whether it is more-likely-than-not that the fair value of the reporting unit is less than the carrying amount as a basis for determining whether it is necessary to perform the two-step impairment test. If the qualitative assessment warrants further analysis, the Company compares the fair value of the reporting unit to its carrying value. The fair value of the reporting unit is determined using the market approach. If the fair value of the reporting unit exceeds the carrying value of net assets of the reporting unit, goodwill is not impaired, and the Company is not required to perform further testing. If the carrying value of the reporting unit's goodwill exceeds its implied fair value, then the Company must record an impairment charge equal to the difference. The Company has determined that it has a single reporting unit for purposes of performing its goodwill impairment test. As the Company uses the market approach to assess impairment in the second step of the analysis, the price of its common stock is an important component of the fair value calculation. If the Company's stock price continues to experience significant price and volume fluctuations, this will impact the fair value of the reporting unit, which can lead to potential impairment in future periods. The Company performed step one of the annual impairment test in September 2013, and concluded no factors indicated impairment of goodwill. As of December 31, 2013, the Company had not identified any factors to indicate there was an impairment of its goodwill and determined that no additional impairment analysis was required. | ||||||||||||||
Revenue Recognition | ' | |||||||||||||
Revenue Recognition | ||||||||||||||
General | ||||||||||||||
The Company generates revenue from the licensing of its IP and sales of IC products. The Company recognizes revenue when persuasive evidence of an arrangement exists, delivery or performance has occurred, the sales price is fixed or determinable, and collectibility is reasonably assured. Evidence of an arrangement generally consists of signed agreements or customer purchase orders. | ||||||||||||||
Licensing | ||||||||||||||
Licensing revenue consists of fees earned from license agreements, development services and support and maintenance. For stand-alone license agreements or license deliverables in multi-deliverable arrangements that do not require significant development, modification or customization, revenues are recognized when all revenue recognition criteria have been met. Delivery of the licensed technology is typically the final revenue recognition criterion met, at which time revenue is recognized. If any of the criteria are not met, revenue recognition is deferred until such time as all criteria have been met. | ||||||||||||||
When sales arrangements contain multiple deliverables (e.g., license and services), the Company reviews each deliverable to determine the separate units of accounting that exist within the agreement. If more than one unit of accounting exists, the consideration payable to the Company under the agreement is allocated to each unit of accounting using the relative fair value method. Revenue is recognized for each unit of accounting when the revenue recognition criteria have been met for that unit of accounting. The Company allocates revenue among the deliverables using the relative selling price method. Revenue allocated to each element is recognized when the basic revenue recognition criteria is met for each element. Under GAAP, the Company is required to apply a hierarchy to determine the selling price to be used for allocating revenue to deliverables: (i) vendor-specific objective evidence of fair value (VSOE), (ii) third-party evidence of selling price (TPE) and (iii) best estimate of the selling price (ESP). In general, the Company is unable to establish VSOE or TPE for license fees and development services. Therefore, revenue is allocated to these elements based on the Company's ESP, which the Company determines after considering multiple factors such as management approved pricing guidelines, geographic differences, market conditions, competitor pricing strategies, internal costs and gross margin objectives. These factors may vary over time depending upon the unique facts and circumstances related to each deliverable. If the facts and circumstances underlying the factors considered change or should future facts and circumstances lead the Company to consider additional factors, the Company's ESP for license fee and development services could change. | ||||||||||||||
For license agreements involving deliverables that do require significant production, modification or customization, and where the Company has significant experience in meeting the design specifications in the contract and the direct labor hours related to services under the contract can be reasonably estimated, the Company recognizes revenue over the period in which the contract services are performed. For these arrangements, the Company recognizes revenue using the percentage of completion method. Under this method, revenue recognized in any period depends on the Company's progress toward completion of projects in progress. Significant management judgment and discretion are used to estimate total direct labor hours. These judgmental elements include determining that the Company has the experience to meet the design specifications and estimate the total direct labor hours to perform the contract services, based on experience in developing prior licensees' designs. The direct labor hours for the development of the licensee's design are estimated at the beginning of the contract. As the direct labor hours are incurred, they are used as a measure of progress towards completion. During the contract performance period, the Company reviews estimates of direct labor hours to complete the contracts and will revise its estimates of revenue and gross profit under the contract if it revises the estimations of the direct labor hours to complete. The Company's policy is to reflect any revision in the contract gross profit estimate in reported income or loss in the period in which the facts giving rise to the revision become known. Under the percentage of completion method, provisions for estimated losses on uncompleted contracts are recorded in the period in which such losses are determined to be likely. | ||||||||||||||
The Company provides support and maintenance under many of its license agreements. Under these arrangements, the Company provides unspecified upgrades, design rule changes and technical support. No other upgrades, products or other post-contract support are provided. Support and maintenance revenue is recognized at its fair value established by VSOE, ratably over the period during which the obligation exists, typically 12 months. These arrangements are generally renewable annually by the customer. | ||||||||||||||
Royalty | ||||||||||||||
The Company's licensing contracts typically also provide for royalties based on the licensee's use of the Company's memory technology in their currently shipping commercial products. The Company recognizes royalties in the quarter in which it receives the licensee's report. | ||||||||||||||
IC products | ||||||||||||||
The Company sells products both directly to customers, as well as through distributors. Revenue from sales directly to customers is generally recognized at the time of shipment. The Company records an estimated allowance, at the time of shipment, for future returns and other charges against revenue consistent with the terms of sale. IC product revenue and costs relating to sales made through distributors with rights of return or stock rotation are deferred until the distributors sell the product to end customers due to the Company's inability to estimate future returns and credits to be issued. Distributors are generally able to return up to 10% of their purchases for slow, non-moving or obsolete inventory for credit every six months. At the time of shipment to distributors, an accounts receivable for the selling price is recorded, as there is a legally enforceable right to receive payment, and inventory is relieved, as legal title to the inventory is transferred upon shipment. Revenues are recognized upon receiving notification from the distributors that products have been sold to end customers. Distributors provide information regarding products and quantity, end customer shipments and remaining inventory on hand. The associated deferred margin is included in the deferred revenues line item in the consolidated balance sheet. The Company recorded initial IC product revenue in 2012, and a significant reserve for returns has been recorded due to the product's early stage of testing and deployment in customer systems. IC product revenue has been included in the licensing and other revenue line item in the consolidated statements of operations and comprehensive income (loss). | ||||||||||||||
Cost of Revenue | ' | |||||||||||||
Cost of Revenue | ||||||||||||||
Cost of licensing and other revenue consists primarily of direct and indirect costs of IC product sales and engineering personnel costs directly related to maintenance and support services specified in licensing agreements. Maintenance and support typically includes engineering support to assist in the commencement of production of a licensee's products. | ||||||||||||||
Advertising Costs | ' | |||||||||||||
Adveristing Costs | ||||||||||||||
Advertising costs are expensed as incurred. Advertising costs were not significant in the years ended December 31, 2013, 2012 and 2011. | ||||||||||||||
Research and Development | ' | |||||||||||||
Research and Development | ||||||||||||||
Engineering costs are recorded as research and development expense in the period incurred. | ||||||||||||||
Stock-Based Compensation | ' | |||||||||||||
Stock-Based Compensation | ||||||||||||||
The Company recognizes stock-based compensation for awards on a straight-line basis over the requisite service period, usually the vesting period, based on the grant-date fair value. | ||||||||||||||
The Company records stock-based compensation expense for stock options granted to non-employees, excluding non-employee directors, based upon the estimated then-current fair value of the equity instrument using the Black-Scholes pricing model. Assumptions used to value the equity instruments are consistent with equity instruments issued to employees. The Company charges the value of the equity instrument to earnings over the term of the service agreement and the unvested shares underlying the option are subject to periodic revaluation over the remaining vesting period. | ||||||||||||||
Per Share Amounts | ' | |||||||||||||
Per Share Amounts | ||||||||||||||
Basic net income (loss) per share is computed by dividing net income (loss) for the period by the weighted-average number of shares of common stock outstanding during the period. Diluted net income (loss) per share gives effect to all potentially dilutive common shares outstanding during the period. Potential common shares are composed of incremental shares of common stock issuable upon the exercise of stock options or restricted stock awards. As of December 31, 2013, 2012 and 2011, stock awards to purchase approximately 10,072,000, 10,384,000 and 9,015,000 shares, respectively, were excluded from the computation of diluted net income (loss) per share as their inclusion would be anti-dilutive. The following table sets forth the computation of basic and diluted net income (loss) per share for the periods indicated (in thousands, except per share amounts): | ||||||||||||||
Year Ended December 31, | ||||||||||||||
2013 | 2012 | 2011 | ||||||||||||
Numerator: | ||||||||||||||
Net income (loss) | $ | (24,794 | ) | $ | (27,614 | ) | $ | 11,256 | ||||||
Denominator: | ||||||||||||||
Add: weighted-average common shares outstanding | 45,246 | 39,176 | 37,942 | |||||||||||
Less: unvested common shares subject to repurchase | — | — | (81 | ) | ||||||||||
| | | | | | | | | | | ||||
Total shares: basic | 45,246 | 39,176 | 37,861 | |||||||||||
Add: weighted-average stock options outstanding | — | — | 2,435 | |||||||||||
Add: common shares subject to repurchase | — | — | 81 | |||||||||||
| | | | | | | | | | | ||||
Total shares: diluted | 45,246 | 39,176 | 40,377 | |||||||||||
Net income (loss) per share: | ||||||||||||||
Basic | $ | (0.55 | ) | $ | (0.70 | ) | $ | 0.3 | ||||||
Diluted | $ | (0.55 | ) | $ | (0.70 | ) | $ | 0.28 | ||||||
Income Taxes | ' | |||||||||||||
Income Taxes | ||||||||||||||
The Company determines deferred tax assets and liabilities based upon the differences between the financial statement and tax basis of the Company's assets and liabilities using tax rates in effect for the year in which the Company expects the differences to affect taxable income. A valuation allowance is established for any deferred tax assets for which it is more likely than not that all or a portion of the deferred tax assets will not be realized. | ||||||||||||||
The Company files U.S. federal and state and foreign income tax returns in jurisdictions with varying statutes of limitations. The Company is currently under tax examination in India. The 2003 through 2013 tax years generally remain subject to examination by federal, state and foreign tax authorities. | ||||||||||||||
As of December 31, 2013, the Company did not have any unrecognized tax benefits nor expect its unrecognized tax benefits to change significantly over the next 12 months. The Company recognizes interest related to unrecognized tax benefits in its income tax expense and penalties related to unrecognized tax benefits as other income and expenses. During the years ended December 31, 2013, 2012 and 2011, the Company did not recognize any interest or penalties related to unrecognized tax benefits. | ||||||||||||||
Recent Accounting Pronouncements | ' | |||||||||||||
Recent Accounting Pronouncements | ||||||||||||||
In July 2013, the FASB issued Accounting Standards Update No. 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (ASU 2013-11). ASU 2013-11 requires an entity to present an unrecognized tax benefit, or a portion of an unrecognized tax benefit, 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, with limited exceptions. ASU 2013-11 is effective for interim and annual periods beginning after December 15, 2013 and may be applied retrospectively. The adoption of the provisions of ASU 2013-11 is not expected to have any impact on the Company's financial position or results of operations. | ||||||||||||||
The_Company_and_Summary_of_Sig2
The Company and Summary of Significant Accounting Policies (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
The Company and Summary of Significant Accounting Policies | ' | |||||||||||||
Schedule of identifiable intangible assets | ' | |||||||||||||
Identifiable intangible assets relating to business combinations and the patent license were as follows (dollar amounts in thousands): | ||||||||||||||
December 31, 2013 | ||||||||||||||
Life | Gross | Accumulated | Net | |||||||||||
(years) | Carrying | Amortization | Carrying | |||||||||||
Amount | Amount | |||||||||||||
Developed technology | 5-Mar | $ | 9,240 | $ | 8,142 | $ | 1,098 | |||||||
Patent license | 7 | 780 | 223 | 557 | ||||||||||
| | | | | | | | | | | | | | |
Total | $ | 10,020 | $ | 8,365 | $ | 1,655 | ||||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
December 31, 2012 | ||||||||||||||
Life | Gross | Accumulated | Net | |||||||||||
(years) | Carrying | Amortization | Carrying | |||||||||||
Amount | Amount | |||||||||||||
Developed technology | 5-Mar | $ | 9,240 | $ | 7,255 | $ | 1,985 | |||||||
Customer relationships | 3 | 390 | 390 | — | ||||||||||
| | | | | | | | | | | | | | |
Subtotal purchased intangible assets | 9,630 | 7,645 | 1,985 | |||||||||||
Patent license | 7 | 780 | 111 | 669 | ||||||||||
| | | | | | | | | | | | | | |
Total | $ | 10,410 | $ | 7,756 | $ | 2,654 | ||||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Schedule of computation of basic and diluted net income (loss) per share | ' | |||||||||||||
The following table sets forth the computation of basic and diluted net income (loss) per share for the periods indicated (in thousands, except per share amounts): | ||||||||||||||
Year Ended December 31, | ||||||||||||||
2013 | 2012 | 2011 | ||||||||||||
Numerator: | ||||||||||||||
Net income (loss) | $ | (24,794 | ) | $ | (27,614 | ) | $ | 11,256 | ||||||
Denominator: | ||||||||||||||
Add: weighted-average common shares outstanding | 45,246 | 39,176 | 37,942 | |||||||||||
Less: unvested common shares subject to repurchase | — | — | (81 | ) | ||||||||||
| | | | | | | | | | | ||||
Total shares: basic | 45,246 | 39,176 | 37,861 | |||||||||||
Add: weighted-average stock options outstanding | — | — | 2,435 | |||||||||||
Add: common shares subject to repurchase | — | — | 81 | |||||||||||
| | | | | | | | | | | ||||
Total shares: diluted | 45,246 | 39,176 | 40,377 | |||||||||||
Net income (loss) per share: | ||||||||||||||
Basic | $ | (0.55 | ) | $ | (0.70 | ) | $ | 0.3 | ||||||
Diluted | $ | (0.55 | ) | $ | (0.70 | ) | $ | 0.28 |
Consolidated_Balance_Sheets_an1
Consolidated Balance Sheets and Statements of Operations and Comprehensive Income (Loss) Components (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Consolidated Balance Sheets and Statements of Operations and Comprehensive Income (Loss) Components | ' | ||||||||||
Schedule of prepaid expenses and other current assets and property and equipment | ' | ||||||||||
December 31, | |||||||||||
2013 | 2012 | ||||||||||
(in thousands) | |||||||||||
Prepaid expenses and other current assets: | |||||||||||
Inventory | $ | 567 | $ | 252 | |||||||
Interest receivable | 382 | 263 | |||||||||
Prepaid expenses and other assets | 722 | 847 | |||||||||
| | | | | | | | ||||
$ | 1,671 | $ | 1,362 | ||||||||
| | | | | | | | ||||
| | | | | | | | ||||
Property and equipment: | |||||||||||
Equipment, furniture and fixtures and leasehold improvements | $ | 3,923 | $ | 4,135 | |||||||
Acquired software | 686 | 651 | |||||||||
| | | | | | | | ||||
4,609 | 4,786 | ||||||||||
Less: Accumulated depreciation and amortization | (3,903 | ) | (3,548 | ) | |||||||
| | | | | | | | ||||
$ | 706 | $ | 1,238 | ||||||||
| | | | | | | | ||||
| | | | | | | | ||||
Schedule of accrued expenses and other liabilities | ' | ||||||||||
December 31, | |||||||||||
2013 | 2012 | ||||||||||
Accrued expenses and other liabilities: | |||||||||||
Accrued wages and employee benefits | $ | 818 | $ | 881 | |||||||
Employee stock purchase plan withholdings | 286 | 292 | |||||||||
Professional fees | 61 | 503 | |||||||||
Other | 744 | 2,271 | |||||||||
| | | | | | | | ||||
$ | 1,909 | $ | 3,947 | ||||||||
| | | | | | | | ||||
| | | | | | | | ||||
Schedule of other income, net | ' | ||||||||||
2013 | 2012 | 2011 | |||||||||
(in thousands) | |||||||||||
Interest income | $ | 174 | $ | 171 | $ | 143 | |||||
Other income (expense), net | 35 | (16 | ) | 63 | |||||||
| | | | | | | | | | | |
$ | 209 | $ | 155 | $ | 206 | ||||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Fair Value of Financial Instruments | ' | |||||||||||||
Schedule of estimated fair values of financial instruments outstanding | ' | |||||||||||||
The estimated fair values of financial instruments outstanding were as follows (in thousands): | ||||||||||||||
December 31, 2013 | ||||||||||||||
Cost | Unrealized | Unrealized | Fair | |||||||||||
Gains | Losses | Value | ||||||||||||
Cash and cash equivalents | $ | 4,364 | $ | — | $ | — | $ | 4,364 | ||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Short-term investments: | ||||||||||||||
U.S. government debt securities | $ | 19,944 | $ | 11 | $ | (1 | ) | $ | 19,954 | |||||
Corporate notes | 7,245 | 2 | (2 | ) | 7,245 | |||||||||
Certificates of deposit | 4,994 | 1 | (2 | ) | 4,993 | |||||||||
| | | | | | | | | | | | | | |
Total short-term investments | $ | 32,183 | $ | 14 | $ | (5 | ) | $ | 32,192 | |||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Long-term investments: | ||||||||||||||
U.S. government debt securities | $ | 3,016 | $ | — | $ | — | $ | 3,016 | ||||||
Corporate notes | 9,466 | 9 | (1 | ) | 9,474 | |||||||||
Certificates of deposit | 1,440 | — | (4 | ) | 1,436 | |||||||||
| | | | | | | | | | | | | | |
Total long-term investments | $ | 13,922 | $ | 9 | $ | (5 | ) | $ | 13,926 | |||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
December 31, 2012 | ||||||||||||||
Cost | Unrealized | Unrealized | Fair | |||||||||||
Gains | Losses | Value | ||||||||||||
Cash and cash equivalents | $ | 2,529 | $ | — | $ | — | $ | 2,529 | ||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Short-term investments: | ||||||||||||||
U.S. government debt securities | $ | 15,852 | $ | 6 | $ | (2 | ) | $ | 15,856 | |||||
Corporate notes | 14,471 | 8 | (4 | ) | 14,475 | |||||||||
Certificates of deposit | 467 | — | — | 467 | ||||||||||
| | | | | | | | | | | | | | |
Total short-term investments | $ | 30,790 | $ | 14 | $ | (6 | ) | $ | 30,798 | |||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Long-term investments: | ||||||||||||||
U.S. government debt securities | $ | 6,330 | $ | 2 | $ | — | $ | 6,332 | ||||||
Corporate notes | 1,050 | 1 | 1,051 | |||||||||||
| | | | | | | | | | | | | | |
Total long-term investments | $ | 7,380 | $ | 3 | $ | — | $ | 7,383 | ||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Schedule of estimated fair values of available-for-sale securities with unrealized losses | ' | |||||||||||||
The estimated fair values of available-for-sale securities with unrealized losses were as follows (in thousands): | ||||||||||||||
December 31, 2013 | ||||||||||||||
Cost | Unrealized | Fair Value | ||||||||||||
Losses | ||||||||||||||
Short-term investments: | ||||||||||||||
U.S. government debt securities | $ | 5,289 | $ | (1 | ) | $ | 5,288 | |||||||
Corporate notes | 3,844 | (2 | ) | 3,842 | ||||||||||
Certificates of deposit | 3,080 | (2 | ) | 3,078 | ||||||||||
| | | | | | | | | | | ||||
Total short-term investments | $ | 12,213 | $ | (5 | ) | $ | 12,208 | |||||||
| | | | | | | | | | | ||||
| | | | | | | | | | | ||||
Long-term investments: | ||||||||||||||
U.S. government debt securities | $ | 1,253 | $ | — | $ | 1,253 | ||||||||
Corporate notes | 1,001 | (1 | ) | 1,000 | ||||||||||
Certificates of deposit | 1,440 | (4 | ) | 1,436 | ||||||||||
| | | | | | | | | | | ||||
Total long-term investments | $ | 3,694 | $ | (5 | ) | $ | 3,689 | |||||||
| | | | | | | | | | | ||||
| | | | | | | | | | | ||||
December 31, 2012 | ||||||||||||||
Cost | Unrealized | Fair | ||||||||||||
Losses | Value | |||||||||||||
Short-term investments: | ||||||||||||||
U.S. government debt securities | $ | 2,546 | $ | (2 | ) | $ | 2,544 | |||||||
Corporate notes | 5,668 | (4 | ) | 5,664 | ||||||||||
| | | | | | | | | | | ||||
Total short-term investments | $ | 8,214 | $ | (6 | ) | $ | 8,208 | |||||||
| | | | | | | | | | | ||||
| | | | | | | | | | | ||||
Schedule of cost and fair value of investments based on maturity groups | ' | |||||||||||||
Cost and fair value of investments based on two maturity groups were as follows (in thousands): | ||||||||||||||
December 31, 2013 | ||||||||||||||
Cost | Unrealized | Unrealized | Fair | |||||||||||
Gains | Losses | Value | ||||||||||||
Due within 1 year | $ | 32,183 | $ | 14 | $ | (5 | ) | $ | 32,192 | |||||
Due in 1-2 years | 13,922 | 9 | (5 | ) | 13,926 | |||||||||
| | | | | | | | | | | | | | |
Total | $ | 46,105 | $ | 23 | $ | (10 | ) | $ | 46,118 | |||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
December 31, 2012 | ||||||||||||||
Cost | Unrealized | Unrealized | Fair | |||||||||||
Gains | Losses | Value | ||||||||||||
Due within 1 year | $ | 30,790 | $ | 14 | $ | (6 | ) | $ | 30,798 | |||||
Due in 1-2 years | 7,380 | 3 | — | 7,383 | ||||||||||
| | | | | | | | | | | | | | |
Total | $ | 38,170 | $ | 17 | $ | (6 | ) | $ | 38,181 | |||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Schedule of fair value hierarchy for financial assets (cash equivalents and investments) | ' | |||||||||||||
The following table represents the Company's fair value hierarchy for its financial assets (cash equivalents and investments) as of December 31, 2013 and 2012 (in thousands): | ||||||||||||||
December 31, 2013 | ||||||||||||||
Fair Value | Level 1 | Level 2 | Level 3 | |||||||||||
Money market funds | $ | 3,012 | $ | 3,012 | $ | — | $ | — | ||||||
U.S. government debt securities | 22,970 | — | 22,970 | — | ||||||||||
Corporate notes | 16,719 | — | 16,719 | — | ||||||||||
Certificates of deposit | 6,429 | — | 6,429 | — | ||||||||||
| | | | | | | | | | | | | | |
Total assets | $ | 49,130 | $ | 3,012 | $ | 46,118 | $ | — | ||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
December 31, 2012 | ||||||||||||||
Fair Value | Level 1 | Level 2 | Level 3 | |||||||||||
Money market funds | $ | 1,407 | $ | 1,407 | $ | — | $ | — | ||||||
U.S. government debt securities | 22,289 | — | 22,289 | — | ||||||||||
Corporate notes | 16,226 | — | 16,226 | — | ||||||||||
Certificates of deposit | 467 | — | 467 | — | ||||||||||
| | | | | | | | | | | | | | |
Total assets | $ | 40,389 | $ | 1,407 | $ | 38,982 | $ | — | ||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Income Taxes | ' | ||||||||||
Schedule of income tax provision (benefit) | ' | ||||||||||
The income tax provision (benefit) consisted of the following (in thousands): | |||||||||||
Year Ended | |||||||||||
December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Current portion: | |||||||||||
Federal | $ | — | $ | (5 | ) | $ | 247 | ||||
State | 2 | 3 | 3 | ||||||||
Foreign | 69 | 112 | 38 | ||||||||
| | | | | | | | | | | |
$ | 71 | $ | 110 | $ | 288 | ||||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Schedule of significant components of the Company's deferred tax assets and liabilities | ' | ||||||||||
Significant components of the Company's deferred tax assets and liabilities were as follows (in thousands): | |||||||||||
December 31, | |||||||||||
2013 | 2012 | ||||||||||
Deferred tax assets: | |||||||||||
Federal and state loss carryforwards | $ | 39,455 | $ | 30,977 | |||||||
Reserves, accruals and other | 372 | 341 | |||||||||
Depreciation and amortization | 1,797 | 1,991 | |||||||||
Deferred stock-based compensation | 3,793 | 3,319 | |||||||||
Research and development credit carryforwards | 9,512 | 7,476 | |||||||||
Foreign tax and other credits | 1,326 | 1,326 | |||||||||
| | | | | | | | ||||
Total deferred tax assets | 56,255 | 45,430 | |||||||||
Deferred tax liabilities: | |||||||||||
Acquired intangible assets and other | 1,618 | 1,652 | |||||||||
Less: Valuation allowance | (54,637 | ) | (43,778 | ) | |||||||
| | | | | | | | ||||
Net deferred tax assets | $ | — | $ | — | |||||||
| | | | | | | | ||||
| | | | | | | | ||||
Schedule of reconciliation of income taxes provided at the federal statutory rate (35%) to actual income tax provision (benefit) | ' | ||||||||||
A reconciliation of income taxes provided at the federal statutory rate (35%) to actual income tax provision (benefit) follows (in thousands): | |||||||||||
Year Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Income tax benefit computed at U.S. statutory rate | $ | (8,653 | ) | $ | (9,626 | ) | $ | 4,040 | |||
Federal alternative minimum tax | — | — | 247 | ||||||||
State income tax (net of federal benefit) | 2 | 2 | 2 | ||||||||
Foreign income tax at rate different from U.S. statutory rate | (11 | ) | (13 | ) | (9 | ) | |||||
Research and development credits | (1,196 | ) | (691 | ) | (1,254 | ) | |||||
Foreign tax credit | — | — | (17 | ) | |||||||
Stock-based compensation | 91 | 252 | 292 | ||||||||
Amortization of intangible assets | (100 | ) | (100 | ) | (657 | ) | |||||
Valuation allowance changes affecting tax provision | 9,915 | 10,526 | (2,363 | ) | |||||||
Other | 23 | (240 | ) | 7 | |||||||
| | | | | | | | | | | |
Income tax provision | $ | 71 | $ | 110 | $ | 288 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Schedule of domestic and foreign components of income (loss) before income tax provision (benefit) | ' | ||||||||||
The domestic and foreign components of income (loss) before income tax provision were as follows (in thousands): | |||||||||||
Year Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
U.S. | $ | (24,906 | ) | $ | (27,737 | ) | $ | 11,363 | |||
Non-U.S. | 183 | 233 | 181 | ||||||||
| | | | | | | | | | | |
$ | (24,723 | ) | $ | (27,504 | ) | $ | 11,544 | ||||
| | | | | | | | | | | |
| | | | | | | | | | | |
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 12 Months Ended | |||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||
Stock-Based Compensation | ' | |||||||||||||||||||||||||
Schedule of assumptions used in estimation of fair value of the share-based payment awards on the grant date | ' | |||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||
Employee stock options: | 2013 | 2012 | 2011 | |||||||||||||||||||||||
Risk-free interest rate | 0.5% - 1.7 | % | 0.2% - 0.8 | % | 0.2% - 1.7 | % | ||||||||||||||||||||
Volatility | 57.7% - 62.9 | % | 59.5% - 73.1 | % | 40.7% - 65.4 | % | ||||||||||||||||||||
Expected life (years) | 4.0-5.0 | 4 | 4 | |||||||||||||||||||||||
Dividend yield | 0 | % | 0 | % | 0 | % | ||||||||||||||||||||
Summary of activity under the Plans | ' | |||||||||||||||||||||||||
A summary of activity under the Plans is presented below (in thousands, except exercise price): | ||||||||||||||||||||||||||
Shares | Number of | Weighted | ||||||||||||||||||||||||
Available | Options | Average | ||||||||||||||||||||||||
for Grant | outstanding | Exercise | ||||||||||||||||||||||||
Prices | ||||||||||||||||||||||||||
Balance at December 31, 2010 | 3,650 | 5,594 | $ | 4.64 | ||||||||||||||||||||||
Additional authorized under the 2010 Plan | 500 | — | — | |||||||||||||||||||||||
Options granted | (2,201 | ) | 2,201 | $ | 4.13 | |||||||||||||||||||||
Options cancelled | 743 | (743 | ) | $ | 5.41 | |||||||||||||||||||||
Options exercised | — | (524 | ) | $ | 3.34 | |||||||||||||||||||||
Options expired | (715 | ) | — | $ | 5.41 | |||||||||||||||||||||
| | | | | | | | | | | ||||||||||||||||
Balance at December 31, 2011 | 1,977 | 6,528 | $ | 4.48 | ||||||||||||||||||||||
Additional authorized under the 2010 Plan | 500 | — | — | |||||||||||||||||||||||
Options granted | (1,827 | ) | 1,827 | $ | 3.19 | |||||||||||||||||||||
Options cancelled | 1,217 | (1,217 | ) | $ | 5.42 | |||||||||||||||||||||
Options exercised | — | (266 | ) | $ | 2.38 | |||||||||||||||||||||
Options expired | (602 | ) | — | $ | 6.89 | |||||||||||||||||||||
| | | | | | | | | | | ||||||||||||||||
Balance at December 31, 2012 | 1,265 | 6,872 | $ | 4.05 | ||||||||||||||||||||||
Additional authorized under the 2010 Plan | 500 | — | — | |||||||||||||||||||||||
Restricted stock units granted | (35 | ) | — | — | ||||||||||||||||||||||
Options granted | (1,543 | ) | 1,543 | $ | 4.27 | |||||||||||||||||||||
Options cancelled | 1,123 | (1,123 | ) | $ | 6 | |||||||||||||||||||||
Options exercised | — | (565 | ) | $ | 3.05 | |||||||||||||||||||||
Options expired | (888 | ) | — | $ | 6.49 | |||||||||||||||||||||
| | | | | | | | | | | ||||||||||||||||
Balance at December 31, 2013 | 422 | 6,727 | $ | 3.86 | ||||||||||||||||||||||
| | | | | | | | | | | ||||||||||||||||
| | | | | | | | | | | ||||||||||||||||
Summary of the inducement grant option activity | ' | |||||||||||||||||||||||||
A summary of the inducement grant option activity is presented below (in thousands, except exercise price): | ||||||||||||||||||||||||||
Options Outstanding | ||||||||||||||||||||||||||
Number of | Weighted | |||||||||||||||||||||||||
Shares | Average | |||||||||||||||||||||||||
Exercise Prices | ||||||||||||||||||||||||||
Balance at December 31, 2010 | 4,812 | $ | 2.92 | |||||||||||||||||||||||
Granted | 400 | $ | 6.06 | |||||||||||||||||||||||
Cancelled | (48 | ) | $ | 1.54 | ||||||||||||||||||||||
Exercised | (349 | ) | $ | 1.55 | ||||||||||||||||||||||
| | | | | | | | |||||||||||||||||||
Balance at December 31, 2011 | 4,815 | $ | 3.29 | |||||||||||||||||||||||
Granted | 350 | $ | 3.92 | |||||||||||||||||||||||
Cancelled | (550 | ) | $ | 1.55 | ||||||||||||||||||||||
Exercised | (1,257 | ) | $ | 1.55 | ||||||||||||||||||||||
| | | | | | | | |||||||||||||||||||
Balance at December 31, 2012 | 3,358 | $ | 4.29 | |||||||||||||||||||||||
Granted | 347 | $ | 3.94 | |||||||||||||||||||||||
Cancelled | (7 | ) | $ | 3.45 | ||||||||||||||||||||||
Exercised | (520 | ) | $ | 3.28 | ||||||||||||||||||||||
| | | | | | | | |||||||||||||||||||
Balance at December 31, 2013 | 3,178 | $ | 4.42 | |||||||||||||||||||||||
| | | | | | | | |||||||||||||||||||
| | | | | | | | |||||||||||||||||||
Summary of restricted stock unit activity | ' | |||||||||||||||||||||||||
A summary of restricted stock unit activity is presented below (in thousands, except fair value): | ||||||||||||||||||||||||||
Number | Weighted | |||||||||||||||||||||||||
of | Average | |||||||||||||||||||||||||
Shares | Grant-Date | |||||||||||||||||||||||||
Fair Value | ||||||||||||||||||||||||||
Non-vested shares at December 31, 2009 | 46 | $ | 1.6 | |||||||||||||||||||||||
Vested | (15 | ) | $ | 1.6 | ||||||||||||||||||||||
| | | | | | | | |||||||||||||||||||
Non-vested shares at December 31, 2010 | 31 | $ | 1.6 | |||||||||||||||||||||||
Vested | (16 | ) | $ | 1.6 | ||||||||||||||||||||||
| | | | | | | | |||||||||||||||||||
Non-vested shares at December 31, 2011 | 15 | $ | 1.6 | |||||||||||||||||||||||
Vested | (12 | ) | $ | 1.62 | ||||||||||||||||||||||
Cancelled | (3 | ) | $ | 1.55 | ||||||||||||||||||||||
| | | | | | | | |||||||||||||||||||
Non-vested shares at December 31, 2012 | — | — | ||||||||||||||||||||||||
Granted | 35 | $ | 4.46 | |||||||||||||||||||||||
Vested | (8 | ) | $ | 4.46 | ||||||||||||||||||||||
| | | | | | | | |||||||||||||||||||
Non-vested shares at December 31, 2013 | 27 | $ | 4.46 | |||||||||||||||||||||||
| | | | | | | | |||||||||||||||||||
| | | | | | | | |||||||||||||||||||
Summary of significant ranges of outstanding and exercisable options | ' | |||||||||||||||||||||||||
The following table summarizes significant ranges of outstanding and exercisable options as of December 31, 2013 (in thousands, except contractual life and exercise price): | ||||||||||||||||||||||||||
Options Outstanding | Options Exercisable | |||||||||||||||||||||||||
Range of Exercise Price | Number | Weighted | Weighted | Aggregate | Number | Weighted | Weighted | Aggregate | ||||||||||||||||||
Outstanding | Average | Average | Intrinsic | Exercisable | Average | Average | Intrinsic | |||||||||||||||||||
Remaining | Exercise | value | Remaining | Exercise | value | |||||||||||||||||||||
Contractual | Price | Contractual | Price | |||||||||||||||||||||||
Life | Life | |||||||||||||||||||||||||
(in Years) | (in Years) | |||||||||||||||||||||||||
$1.50 - $3.23 | 2,846 | 3.28 | $ | 2.59 | $ | 8,330 | 1,807 | 2.63 | $ | 2.3 | $ | 5,814 | ||||||||||||||
$3.24 - $4.19 | 2,521 | 4.34 | $ | 3.77 | $ | 4,413 | 1,355 | 3.72 | $ | 3.76 | $ | 2,387 | ||||||||||||||
$4.20 - $5.61 | 3,621 | 3.93 | $ | 4.88 | $ | 2,422 | 2,493 | 1.95 | $ | 5.07 | $ | 1,240 | ||||||||||||||
$5.62 - $6.50 | 917 | 2.94 | $ | 5.98 | — | 672 | 2.8 | $ | 5.98 | — | ||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | |
9,905 | 3.76 | $ | 4.04 | $ | 15,165 | 6,327 | 2.61 | $ | 4.09 | $ | 9,441 | |||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Business_Segments_Concentratio1
Business Segments, Concentration of Credit Risk and Significant Customers (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Business Segments, Concentration of Credit Risk and Significant Customers | ' | ||||||||||
Schedule of revenue from customers in North America, Asia and Europe | ' | ||||||||||
The Company recognized revenue from licensing of its technologies or shipment of ICs to customers in North America, Asia and Europe as follows (in thousands): | |||||||||||
Years Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Taiwan | $ | 1,831 | $ | 1,700 | $ | 3,197 | |||||
North America | 1,318 | 2,511 | 5,476 | ||||||||
Japan | 1,207 | 1,571 | 4,700 | ||||||||
Rest of Asia | 42 | 214 | 7 | ||||||||
Europe | — | 86 | 727 | ||||||||
| | | | | | | | | | | |
Total | $ | 4,398 | $ | 6,082 | $ | 14,107 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Schedule of customers who accounted for at least 10% of total revenues | ' | ||||||||||
Years Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Customer A | 41 | % | 28 | % | 23 | % | |||||
Customer B | 13 | % | 26 | % | 12 | % | |||||
Customer C | * | 12 | % | 17 | % | ||||||
* | |||||||||||
Represents percentage less than 10%. | |||||||||||
Schedule of net property and equipment, classified by major geographic areas | ' | ||||||||||
Net property and equipment, classified by major geographic areas, was as follows at December 31, 2013 and 2012 (in thousands): | |||||||||||
December 31, | |||||||||||
2013 | 2012 | ||||||||||
(in thousands) | |||||||||||
U.S. | $ | 610 | $ | 1,114 | |||||||
Non-U.S. | 96 | 124 | |||||||||
| | | | | | | | ||||
Total | $ | 706 | $ | 1,238 | |||||||
| | | | | | | | ||||
| | | | | | | | ||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Commitments and Contingencies | ' | ||||||||||
Schedule of future minimum lease payments under non-cancelable operating leases and purchase commitments | ' | ||||||||||
Future minimum lease payments under non-cancelable operating leases and purchase commitments are as follows (in thousands): | |||||||||||
Year ended December 31, | Operating | Purchase | Total | ||||||||
leases | commitments | ||||||||||
2014 | $ | 756 | $ | 2,875 | $ | 3,631 | |||||
2015 | 713 | 2,565 | 3,278 | ||||||||
2016 | 735 | 368 | 1,103 | ||||||||
2017 | 756 | — | 756 | ||||||||
2018 | 734 | — | 734 | ||||||||
Thereafter | 1,270 | — | 1,270 | ||||||||
| | | | | | | | | | | |
Total minimum payments | $ | 4,964 | $ | 5,808 | $ | 10,772 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
The_Company_and_Summary_of_Sig3
The Company and Summary of Significant Accounting Policies (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
GB | ||
The Company and Summary of Significant Accounting Policies | ' | ' |
Speed per second of high-speed interface technology of Bandwidth Engine ICs (in gigabits) | 10 | ' |
Allowance for Doubtful Accounts | ' | ' |
Maximum specific allowance as percentage of invoice value for problematic customer balances | 100.00% | ' |
Allowance for doubtful accounts receivable | $0 | $0 |
Minimum | ' | ' |
Property and Equipment | ' | ' |
Estimated useful lives | '3 years | ' |
Maximum | ' | ' |
Property and Equipment | ' | ' |
Estimated useful lives | '5 years | ' |
The_Company_and_Summary_of_Sig4
The Company and Summary of Significant Accounting Policies (Details 2) (USD $) | 12 Months Ended | 12 Months Ended | 1 Months Ended | |||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Minimum | Maximum | Purchased intangible assets | Developed technology | Developed technology | Developed technology | Developed technology | Developed technology | Developed technology | Customer relationships | Patent license | Patent license | Memory technology patents | ||||
Minimum | Minimum | Maximum | Maximum | Item | ||||||||||||
Intangible assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of intangible assets sold | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 73 |
Life | ' | ' | ' | '3 years | '7 years | ' | ' | ' | '3 years | '3 years | '5 years | '5 years | '3 years | '7 years | '7 years | ' |
Gross Carrying Amount | $10,020,000 | $10,410,000 | ' | ' | ' | $9,630,000 | $9,240,000 | $9,240,000 | ' | ' | ' | ' | $390,000 | $780,000 | $780,000 | ' |
Accumulated Amortization | 8,365,000 | 7,756,000 | ' | ' | ' | 7,645,000 | 8,142,000 | 7,255,000 | ' | ' | ' | ' | 390,000 | 223,000 | 111,000 | ' |
Net Carrying Amount | 1,655,000 | 2,654,000 | ' | ' | ' | 1,985,000 | 1,098,000 | 1,985,000 | ' | ' | ' | ' | ' | 557,000 | 669,000 | ' |
Estimated aggregate amortization expense to be recognized in future | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2014 | 1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2015 | 300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2016 | 100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2018 | 100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue Recognition | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Support and maintenance revenue recognition period based on fair value established by VSOE | '12 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Threshold purchase return percentage by distributors for slow, non-moving or obsolete inventory | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Specified period for return of threshold percentage of purchases by distributors for slow, non-moving or obsolete inventory | '6 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Per Share Amounts | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Anti-dilutive securities excluded from computation of diluted net loss per share | 10,072,000 | 10,384,000 | 9,015,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Numerator: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income (loss) | ($24,794,000) | ($27,614,000) | $11,256,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Denominator: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Add: weighted-average common shares outstanding | 45,246,000 | 39,176,000 | 37,942,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Less: unvested common shares subject to repurchase | ' | ' | -81,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total shares: basic | 45,246,000 | 39,176,000 | 37,861,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Add: weighted-average stock options outstanding (in shares) | ' | ' | 2,435,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Add: common shares subject to repurchase | ' | ' | 81,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total shares: diluted | 45,246,000 | 39,176,000 | 40,377,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income (loss) per share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basic (in dollars per share) | ($0.55) | ($0.70) | $0.30 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Diluted (in dollars per share) | ($0.55) | ($0.70) | $0.28 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income Taxes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Period over which the Company expects its unrecognized tax benefits to not change significantly | '12 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Consolidated_Balance_Sheets_an2
Consolidated Balance Sheets and Statements of Operations and Comprehensive Income (Loss) Components (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Prepaid expenses and other current assets: | ' | ' |
Inventory | $567,000 | $252,000 |
Interest receivable | 382,000 | 263,000 |
Prepaid expenses and other assets | 722,000 | 847,000 |
Total | 1,671,000 | 1,362,000 |
Property and equipment: | ' | ' |
Property and equipment, gross | 4,609,000 | 4,786,000 |
Less: Accumulated depreciation and amortization | -3,903,000 | -3,548,000 |
Property and equipment, net | 706,000 | 1,238,000 |
Equipment, furniture and fixtures and leasehold improvements | ' | ' |
Property and equipment: | ' | ' |
Property and equipment, gross | 3,923,000 | 4,135,000 |
Acquired software | ' | ' |
Property and equipment: | ' | ' |
Property and equipment, gross | 686,000 | 651,000 |
Testing equipment purchased through capital leases | ' | ' |
Property and equipment: | ' | ' |
Property and equipment, gross | $198,000 | ' |
Consolidated_Balance_Sheets_an3
Consolidated Balance Sheets and Statements of Operations and Comprehensive Income (Loss) Components (Details 2) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Accrued expenses and other liabilities: | ' | ' | ' |
Accrued wages and employee benefits | $818 | $881 | ' |
Employee stock purchase plan withholdings | 286 | 292 | ' |
Professional fees | 61 | 503 | ' |
Other | 744 | 2,271 | ' |
Total | 1,909 | 3,947 | ' |
Other income, net: | ' | ' | ' |
Interest income | 174 | 171 | 143 |
Other income (expense), net | 35 | -16 | 63 |
Total | $209 | $155 | $206 |
Fair_Value_of_Financial_Instru2
Fair Value of Financial Instruments (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
In Thousands, unless otherwise specified | ||||
Fair Value of Financial Instruments | ' | ' | ' | ' |
Cash and cash equivalents, cost | $4,364 | $2,529 | $40,025 | $14,340 |
Cash and cash equivalents, fair value | 4,364 | 2,529 | ' | ' |
Estimated fair values of financial instruments | ' | ' | ' | ' |
Unrealized Gains | -23 | -17 | ' | ' |
Unrealized Losses | 10 | 6 | ' | ' |
Short-term investments | ' | ' | ' | ' |
Estimated fair values of financial instruments | ' | ' | ' | ' |
Cost | 32,183 | 30,790 | ' | ' |
Unrealized Gains | 14 | 14 | ' | ' |
Unrealized Losses | -5 | -6 | ' | ' |
Fair Value | 32,192 | 30,798 | ' | ' |
Short-term investments | U.S. government debt securities | ' | ' | ' | ' |
Estimated fair values of financial instruments | ' | ' | ' | ' |
Cost | 19,944 | 15,852 | ' | ' |
Unrealized Gains | 11 | 6 | ' | ' |
Unrealized Losses | -1 | -2 | ' | ' |
Fair Value | 19,954 | 15,856 | ' | ' |
Short-term investments | Corporate notes | ' | ' | ' | ' |
Estimated fair values of financial instruments | ' | ' | ' | ' |
Cost | 7,245 | 14,471 | ' | ' |
Unrealized Gains | 2 | 8 | ' | ' |
Unrealized Losses | -2 | -4 | ' | ' |
Fair Value | 7,245 | 14,475 | ' | ' |
Short-term investments | Certificates of deposit | ' | ' | ' | ' |
Estimated fair values of financial instruments | ' | ' | ' | ' |
Cost | 4,994 | 467 | ' | ' |
Unrealized Gains | 1 | ' | ' | ' |
Unrealized Losses | -2 | ' | ' | ' |
Fair Value | 4,993 | 467 | ' | ' |
Long-term investments | ' | ' | ' | ' |
Estimated fair values of financial instruments | ' | ' | ' | ' |
Cost | 13,922 | 7,380 | ' | ' |
Unrealized Gains | 9 | 3 | ' | ' |
Unrealized Losses | -5 | ' | ' | ' |
Fair Value | 13,926 | 7,383 | ' | ' |
Long-term investments | U.S. government debt securities | ' | ' | ' | ' |
Estimated fair values of financial instruments | ' | ' | ' | ' |
Cost | 3,016 | 6,330 | ' | ' |
Unrealized Gains | ' | 2 | ' | ' |
Fair Value | 3,016 | 6,332 | ' | ' |
Long-term investments | Corporate notes | ' | ' | ' | ' |
Estimated fair values of financial instruments | ' | ' | ' | ' |
Cost | 9,466 | 1,050 | ' | ' |
Unrealized Gains | 9 | 1 | ' | ' |
Unrealized Losses | -1 | ' | ' | ' |
Fair Value | 9,474 | 1,051 | ' | ' |
Long-term investments | Certificates of deposit | ' | ' | ' | ' |
Estimated fair values of financial instruments | ' | ' | ' | ' |
Cost | 1,440 | ' | ' | ' |
Unrealized Losses | -4 | ' | ' | ' |
Fair Value | $1,436 | ' | ' | ' |
Fair_Value_of_Financial_Instru3
Fair Value of Financial Instruments (Details 2) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Item | ||
Estimated fair values of available-for-sale securities with unrealized losses | ' | ' |
Number of maturity groups | 2 | ' |
Investments by rolling maturity, Cost | ' | ' |
Due within 1 year | $32,183 | $30,790 |
Due in 1-2 years | 13,922 | 7,380 |
Total | 46,105 | 38,170 |
Investments by rolling maturity, Unrealized Gains | ' | ' |
Due within 1 year | 14 | 14 |
Due in 1-2 years | 9 | 3 |
Total | 23 | 17 |
Investments by rolling maturity, Unrealized Losses | ' | ' |
Due within 1 year | -5 | -6 |
Due in 1-2 years | -5 | ' |
Total | -10 | -6 |
Investments by rolling maturity, Fair Value | ' | ' |
Due within 1 year | 32,192 | 30,798 |
Due in 1-2 years | 13,926 | 7,383 |
Total | 46,118 | 38,181 |
Short-term investments | ' | ' |
Estimated fair values of available-for-sale securities with unrealized losses | ' | ' |
Cost | 12,213 | 8,214 |
Unrealized Losses | -5 | -6 |
Fair Value | 12,208 | 8,208 |
Investments by rolling maturity, Unrealized Gains | ' | ' |
Total | -14 | -14 |
Investments by rolling maturity, Unrealized Losses | ' | ' |
Total | 5 | 6 |
Short-term investments | U.S. government debt securities | ' | ' |
Estimated fair values of available-for-sale securities with unrealized losses | ' | ' |
Cost | 5,289 | 2,546 |
Unrealized Losses | -1 | -2 |
Fair Value | 5,288 | 2,544 |
Investments by rolling maturity, Unrealized Gains | ' | ' |
Total | -11 | -6 |
Investments by rolling maturity, Unrealized Losses | ' | ' |
Total | 1 | 2 |
Short-term investments | Corporate notes | ' | ' |
Estimated fair values of available-for-sale securities with unrealized losses | ' | ' |
Cost | 3,844 | 5,668 |
Unrealized Losses | -2 | -4 |
Fair Value | 3,842 | 5,664 |
Investments by rolling maturity, Unrealized Gains | ' | ' |
Total | -2 | -8 |
Investments by rolling maturity, Unrealized Losses | ' | ' |
Total | 2 | 4 |
Short-term investments | Certificates of deposit | ' | ' |
Estimated fair values of available-for-sale securities with unrealized losses | ' | ' |
Cost | 3,080 | ' |
Unrealized Losses | -2 | ' |
Fair Value | 3,078 | ' |
Investments by rolling maturity, Unrealized Gains | ' | ' |
Total | -1 | ' |
Investments by rolling maturity, Unrealized Losses | ' | ' |
Total | 2 | ' |
Long-term investments | ' | ' |
Estimated fair values of available-for-sale securities with unrealized losses | ' | ' |
Cost | 3,694 | ' |
Unrealized Losses | -5 | ' |
Fair Value | 3,689 | ' |
Investments by rolling maturity, Unrealized Gains | ' | ' |
Total | -9 | -3 |
Investments by rolling maturity, Unrealized Losses | ' | ' |
Total | 5 | ' |
Long-term investments | U.S. government debt securities | ' | ' |
Estimated fair values of available-for-sale securities with unrealized losses | ' | ' |
Cost | 1,253 | ' |
Fair Value | 1,253 | ' |
Investments by rolling maturity, Unrealized Gains | ' | ' |
Total | ' | -2 |
Long-term investments | Corporate notes | ' | ' |
Estimated fair values of available-for-sale securities with unrealized losses | ' | ' |
Cost | 1,001 | ' |
Unrealized Losses | -1 | ' |
Fair Value | 1,000 | ' |
Investments by rolling maturity, Unrealized Gains | ' | ' |
Total | -9 | -1 |
Investments by rolling maturity, Unrealized Losses | ' | ' |
Total | 1 | ' |
Long-term investments | Certificates of deposit | ' | ' |
Estimated fair values of available-for-sale securities with unrealized losses | ' | ' |
Cost | 1,440 | ' |
Unrealized Losses | -4 | ' |
Fair Value | 1,436 | ' |
Investments by rolling maturity, Unrealized Losses | ' | ' |
Total | $4 | ' |
Fair_Value_of_Financial_Instru4
Fair Value of Financial Instruments (Details 3) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Fair value hierarchy for its financial assets | ' | ' |
Transfer of assets between Level 1 to Level 2 | $0 | $0 |
Transfer of liabilities between Level 1 to Level 2 | 0 | 0 |
Transfer of assets between Level 2 to Level 1 | 0 | 0 |
Transfer of liabilities between Level 2 to Level 1 | 0 | 0 |
Fair Value | ' | ' |
Fair value hierarchy for its financial assets | ' | ' |
Money market funds | 3,012 | 1,407 |
Total assets | 49,130 | 40,389 |
Fair Value | U.S. government debt securities | ' | ' |
Fair value hierarchy for its financial assets | ' | ' |
Available-for-sale securities | 22,970 | 22,289 |
Fair Value | Certificates of deposit | ' | ' |
Fair value hierarchy for its financial assets | ' | ' |
Available-for-sale securities | 6,429 | 467 |
Fair Value | Corporate notes | ' | ' |
Fair value hierarchy for its financial assets | ' | ' |
Available-for-sale securities | 16,719 | 16,226 |
Level 1 | ' | ' |
Fair value hierarchy for its financial assets | ' | ' |
Money market funds | 3,012 | 1,407 |
Total assets | 3,012 | 1,407 |
Level 2 | ' | ' |
Fair value hierarchy for its financial assets | ' | ' |
Total assets | 46,118 | 38,982 |
Level 2 | U.S. government debt securities | ' | ' |
Fair value hierarchy for its financial assets | ' | ' |
Available-for-sale securities | 22,970 | 22,289 |
Level 2 | Certificates of deposit | ' | ' |
Fair value hierarchy for its financial assets | ' | ' |
Available-for-sale securities | 6,429 | 467 |
Level 2 | Corporate notes | ' | ' |
Fair value hierarchy for its financial assets | ' | ' |
Available-for-sale securities | $16,719 | $16,226 |
Acquisitions_Details
Acquisitions (Details) (MagnaLynx, USD $) | 1 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2010 |
MagnaLynx | ' |
Acquisitions | ' |
Amount of cash paid to settle debt and certain other liabilities | $2.20 |
Amount of cash paid to shareholders of the acquired entity | 1.2 |
Indemnification holdback | 0.5 |
Period after the closing for indemnification holdback payment | '18 months |
Acquisition-related earnout | $1 |
Period after the closing for earn-out consideration payment | '6 months |
Patent_Sale_and_License_Detail
Patent Sale and License (Details) (USD $) | 12 Months Ended | 1 Months Ended | |||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2011 | Dec. 31, 2011 | Dec. 31, 2011 | Dec. 31, 2011 | |
Memory technology patents | Sale of memory technology patents | Sale of memory technology patents | Sale of memory technology patents | ||||
Item | Memory technology patents | Domestic memory technology patents | Foreign memory technology patents | ||||
Item | Item | ||||||
Patent Sale and License | ' | ' | ' | ' | ' | ' | ' |
Number of intangible assets sold | ' | ' | ' | 73 | ' | 43 | 30 |
Cash consideration | ' | ' | ' | ' | $35,000,000 | ' | ' |
Gain on sale of assets | ' | ' | ' | ' | 35,600,000 | ' | ' |
Net cash proceeds from sale of assets | 630,000 | 3,437,000 | 34,831,000 | ' | 35,000,000 | ' | ' |
Patent license recorded in connection with patent sale | ' | ' | 780,000 | ' | 800,000 | ' | ' |
Valuation of right to use patents | ' | ' | ' | ' | $800,000 | ' | ' |
Estimated useful life | ' | ' | ' | ' | '7 years | ' | ' |
Sale_of_IO_Technology_Details
Sale of I/O Technology (Details) (Sale of license of a portion of intellectual property pertaining to high-speed serial I/O technology, USD $) | 1 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2013 | Jul. 31, 2012 | Mar. 31, 2012 | Dec. 31, 2013 |
Item | ||||
Sale of license of a portion of intellectual property pertaining to high-speed serial I/O technology | ' | ' | ' | ' |
Patent Sale and License | ' | ' | ' | ' |
Purchase agreement amount | ' | ' | $4.30 | ' |
Number of employees of entity's India subsidiary accepted employment in purchaser | ' | ' | 15 | ' |
Cash received upon execution of the agreement, net of transaction costs | ' | ' | 2.2 | ' |
Holdback amount | ' | ' | 1.9 | ' |
Holdback payment received | 0.6 | 1.3 | ' | ' |
Amount due | ' | ' | ' | $0 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Income tax provision, Current portion: | ' | ' | ' |
Federal | ' | ($5,000) | $247,000 |
State | 2,000 | 3,000 | 3,000 |
Foreign | 69,000 | 112,000 | 38,000 |
Total | 71,000 | 110,000 | 288,000 |
Deferred tax assets: | ' | ' | ' |
Federal and state loss carryforwards | 39,455,000 | 30,977,000 | ' |
Reserves, accruals and other | 372,000 | 341,000 | ' |
Depreciation and amortization | 1,797,000 | 1,991,000 | ' |
Deferred stock-based compensation | 3,793,000 | 3,319,000 | ' |
Research and development credit carryforwards | 9,512,000 | 7,476,000 | ' |
Foreign tax and other credits | 1,326,000 | 1,326,000 | ' |
Total deferred tax assets | 56,255,000 | 45,430,000 | ' |
Deferred tax liabilities: | ' | ' | ' |
Acquired intangible assets and other | 1,618,000 | 1,652,000 | ' |
Less: Valuation allowance | -54,637,000 | -43,778,000 | ' |
Increase in valuation allowance during the year | 10,900,000 | 11,400,000 | ' |
Valuation allowance related to stock option deductions incurred prior to January 1, 2006, the benefit of which will be credited to additional paid-in capital if they become realized | 1,800,000 | ' | ' |
Federal | ' | ' | ' |
Net operating loss carryforwards | ' | ' | ' |
Net operating loss carryforwards, amount | 103,600,000 | ' | ' |
Net operating loss related to excess tax benefits from stock-based compensation that will be charged to additional paid-in capital when realized | 5,600,000 | ' | ' |
State | ' | ' | ' |
Net operating loss carryforwards | ' | ' | ' |
Net operating loss carryforwards, amount | 94,300,000 | ' | ' |
Net operating loss related to excess tax benefits from stock-based compensation that will be charged to additional paid-in capital when realized | $4,800,000 | ' | ' |
Income_Taxes_Details_2
Income Taxes (Details 2) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Tax credit carryforwards | ' | ' | ' |
Undistributed earnings of foreign subsidiaries | $700,000 | ' | ' |
Reconciliation of income taxes provided at the federal statutory rate (35%) to actual income tax provision (benefit) | ' | ' | ' |
Federal statutory rate | 35.00% | ' | ' |
Income tax benefit computed at U.S. statutory rate | -8,653,000 | -9,626,000 | 4,040,000 |
Federal alternative minimum tax | ' | ' | 247,000 |
State income tax (net of federal benefit) | 2,000 | 2,000 | 2,000 |
Foreign income tax at rate different from U.S. statutory rate | -11,000 | -13,000 | -9,000 |
Research and development credits | -1,196,000 | -691,000 | -1,254,000 |
Foreign tax credit | ' | ' | -17,000 |
Stock-based compensation | 91,000 | 252,000 | 292,000 |
Amortization of intangible assets | -100,000 | -100,000 | -657,000 |
Valuation allowance changes affecting tax provision | 9,915,000 | 10,526,000 | -2,363,000 |
Other | 23,000 | -240,000 | 7,000 |
Total | 71,000 | 110,000 | 288,000 |
Domestic and foreign components of income (loss) before income tax provision (benefit) | ' | ' | ' |
U.S. | -24,906,000 | -27,737,000 | 11,363,000 |
Non-U.S. | 183,000 | 233,000 | 181,000 |
Income (loss) before income taxes | -24,723,000 | -27,504,000 | 11,544,000 |
Federal | ' | ' | ' |
Tax credit carryforwards | ' | ' | ' |
Foreign tax credit carryforward that begin to expire in 2014 | 1,100,000 | ' | ' |
Research and development | Federal | ' | ' | ' |
Tax credit carryforwards | ' | ' | ' |
Tax credit carryforwards with expiration | 6,300,000 | ' | ' |
Research and development | California | ' | ' | ' |
Tax credit carryforwards | ' | ' | ' |
Tax credit carryforwards without expiration | $5,200,000 | ' | ' |
StockBased_Compensation_Detail
Stock-Based Compensation (Details) (USD $) | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | ||||||||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2010 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Jun. 30, 2010 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Jun. 30, 2010 | Dec. 31, 2013 | Jun. 30, 2010 | Jun. 30, 2010 | Jun. 30, 2010 | |
Options | Options | Options | Options | Inducement grant options | Inducement grant options | Inducement grant options | ESPP | ESPP | ESPP | ESPP | ESPP | ESPP | ESPP | Plans | Plans | Plans | Plans | Amended 2000 Plan | Amended 2000 Plan | 2010 Plan | 2010 Plan | 2010 Plan | 2010 Plan | 2010 Plan | ||||
Executive vice president | Item | Minimum | Maximum | Maximum | Options | Options | Options | RSU's | Options | Options | Options | Options | Options | |||||||||||||||
Minimum | Maximum | |||||||||||||||||||||||||||
Stock-Based Compensation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares outstanding | ' | ' | ' | ' | ' | ' | ' | 3,178,000 | 3,358,000 | 4,815,000 | ' | ' | ' | ' | ' | ' | ' | 6,727,000 | 6,872,000 | 6,528,000 | ' | ' | 1,879,000 | ' | ' | ' | ' | ' |
Weighted-average exercise price (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | $4.42 | $4.29 | $3.29 | ' | ' | ' | ' | ' | ' | ' | $3.86 | $4.05 | $4.48 | ' | ' | $3.79 | ' | ' | ' | ' | ' |
Number of shares reserved for issuance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,000,000 | ' | ' | ' | ' |
Annual increase in the share reserved for issuance (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 500,000 | 500,000 | 500,000 | ' | ' | ' | 500,000 | ' | ' | ' | ' |
Term of Plan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '10 years | ' | ' | '6 years | '10 years |
Maximum annual option grants or other awards to the entity's non-employee directors (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 40,000 | ' | ' |
Maximum one-time grant of an option or other awards to the entity's non-employee directors (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 120,000 | ' | ' |
Maximum term of options granted | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '10 years | ' | ' | ' |
Minimum percentage of voting rights required for applicability of a specific expiration term | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% | ' | ' | ' |
Maximum expiration term of options granted | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | ' | ' |
Vesting period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '4 years | ' | ' | ' |
Employee Stock Purchase Plan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares reserved for issuance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,000,000 | ' | ' | ' | ' |
Maximum amount of shares that eligible employee may purchase annually (in dollars) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $25,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of offering periods | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Offering period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '6 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchase price to be paid by participants as a percentage of price per share either at the beginning or the end of each six-month offering period, whichever is less | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 85.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares of common stock issued under the plan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 275,000 | 351,000 | 313,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate purchase price (in dollars) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 800,000 | 1,100,000 | 1,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares authorized and unissued | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,061,000 | ' | ' | ' | ' | ' | 422,000 | 1,265,000 | 1,977,000 | ' | 0 | ' | ' | ' | ' | ' | ' |
Stock-based compensation expense | 3,700,000 | 3,800,000 | 3,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Tax benefits associated with exercise of stock options | ' | ' | ' | $0 | $0 | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Option granted as compensation for the consulting services (in shares) | ' | ' | ' | ' | ' | ' | 675,000 | 347,000 | 350,000 | 400,000 | ' | ' | ' | ' | ' | ' | ' | 1,543,000 | 1,827,000 | 2,201,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Assumptions used in estimation of fair value of the share-based payment awards on the grant date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Risk-free interest rate, minimum (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.50% | 0.20% | 0.20% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Risk-free interest rate, maximum (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.70% | 0.80% | 1.70% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Volatility, minimum (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 57.70% | 59.50% | 40.70% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Volatility, maximum (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 62.90% | 73.10% | 65.40% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected life | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '4 years | '4 years | '4 years | ' | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividend yield (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.00% | 0.00% | 0.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Available for Grant | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance at the beginning of the period (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,265,000 | 1,977,000 | 3,650,000 | ' | 0 | ' | ' | ' | ' | ' | ' |
Additional shares authorized under the 2010 Plan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 500,000 | 500,000 | 500,000 | ' | ' | ' | 500,000 | ' | ' | ' | ' |
Restricted stock units granted (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -35,000 | ' | ' | ' | ' | ' | ' | ' |
Options granted (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -1,543,000 | -1,827,000 | -2,201,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Options cancelled (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,123,000 | 1,217,000 | 743,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Options expired (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -888,000 | -602,000 | -715,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Balance at the end of the period (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,061,000 | ' | ' | ' | ' | ' | 422,000 | 1,265,000 | 1,977,000 | ' | 0 | ' | ' | ' | ' | ' | ' |
Number of Shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance at the beginning of the period (in shares) | ' | ' | ' | ' | ' | ' | ' | 3,358,000 | 4,815,000 | 4,812,000 | ' | ' | ' | ' | ' | ' | ' | 6,872,000 | 6,528,000 | 5,594,000 | ' | ' | 1,879,000 | ' | ' | ' | ' | ' |
Options granted (in shares) | ' | ' | ' | ' | ' | ' | 675,000 | 347,000 | 350,000 | 400,000 | ' | ' | ' | ' | ' | ' | ' | 1,543,000 | 1,827,000 | 2,201,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Options cancelled (in shares) | ' | ' | ' | ' | ' | ' | ' | -7,000 | -550,000 | -48,000 | ' | ' | ' | ' | ' | ' | ' | -1,123,000 | -1,217,000 | -743,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Options exercised (in shares) | ' | ' | ' | ' | ' | ' | ' | -520,000 | -1,257,000 | -349,000 | ' | ' | ' | ' | ' | ' | ' | -565,000 | -266,000 | -524,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Balance at the end of the period (in shares) | ' | ' | ' | ' | ' | ' | ' | 3,178,000 | 3,358,000 | 4,815,000 | ' | ' | ' | ' | ' | ' | ' | 6,727,000 | 6,872,000 | 6,528,000 | ' | ' | 1,879,000 | ' | ' | ' | ' | ' |
Weighted Average Exercise Prices | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance at the beginning of the period (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | $4.29 | $3.29 | $2.92 | ' | ' | ' | ' | ' | ' | ' | $4.05 | $4.48 | $4.64 | ' | ' | $3.79 | ' | ' | ' | ' | ' |
Options granted (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | $3.94 | $3.92 | $6.06 | ' | ' | ' | ' | ' | ' | ' | $4.27 | $3.19 | $4.13 | ' | ' | ' | ' | ' | ' | ' | ' |
Options cancelled (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | $3.45 | $1.55 | $1.54 | ' | ' | ' | ' | ' | ' | ' | $6 | $5.42 | $5.41 | ' | ' | ' | ' | ' | ' | ' | ' |
Options exercised (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | $3.28 | $1.55 | $1.55 | ' | ' | ' | ' | ' | ' | ' | $3.05 | $2.38 | $3.34 | ' | ' | ' | ' | ' | ' | ' | ' |
Options expired (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $6.49 | $6.89 | $5.41 | ' | ' | ' | ' | ' | ' | ' | ' |
Balance at the end of the period (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | $4.42 | $4.29 | $3.29 | ' | ' | ' | ' | ' | ' | ' | $3.86 | $4.05 | $4.48 | ' | ' | $3.79 | ' | ' | ' | ' | ' |
StockBased_Compensation_Detail1
Stock-Based Compensation (Details 2) (Plans, RSU's, USD $) | 12 Months Ended | |||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Plans | RSU's | ' | ' | ' | ' |
Number of Shares | ' | ' | ' | ' |
Non-vested shares at the beginning of the period | ' | 15 | 31 | 46 |
Granted (in shares) | 35 | ' | ' | ' |
Vested (in shares) | -8 | -12 | -16 | -15 |
Cancelled (in shares) | ' | -3 | ' | ' |
Non-vested shares at the end of the period | 27 | ' | 15 | 31 |
Weighted Average Grant-Date Fair Value | ' | ' | ' | ' |
Non-vested shares at the beginning of the period (in dollars per share) | ' | $1.60 | $1.60 | $1.60 |
Granted (in dollars per share) | $4.46 | ' | ' | ' |
Vested (in dollars per share) | $4.46 | $1.62 | $1.60 | $1.60 |
Cancelled (in dollars per share) | ' | $1.55 | ' | ' |
Non-vested shares at the end of the period (in dollars per share) | $4.46 | ' | $1.60 | $1.60 |
StockBased_Compensation_Detail2
Stock-Based Compensation (Details 3) (USD $) | 12 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 |
Options Outstanding | ' |
Number Outstanding (in shares) | 9,905 |
Weighted Average Remaining Contractual Life | '3 years 9 months 4 days |
Weighted Average Exercise Price (in dollars per share) | $4.04 |
Aggregate Intrinsic value (in dollars) | $15,165 |
Options Exercisable | ' |
Number Exercisable (in shares) | 6,327 |
Weighted Average Remaining Contractual Life | '2 years 7 months 10 days |
Weighted Average Exercise Price (in dollars per share) | $4.09 |
Aggregate Intrinsic value (in dollars) | 9,441 |
$1.50 - $3.23 | ' |
Exercise price range | ' |
Low end of the range (in dollars per share) | $1.50 |
High end of the range (in dollars per share) | $3.23 |
Options Outstanding | ' |
Number Outstanding (in shares) | 2,846 |
Weighted Average Remaining Contractual Life | '3 years 3 months 11 days |
Weighted Average Exercise Price (in dollars per share) | $2.59 |
Aggregate Intrinsic value (in dollars) | 8,330 |
Options Exercisable | ' |
Number Exercisable (in shares) | 1,807 |
Weighted Average Remaining Contractual Life | '2 years 7 months 17 days |
Weighted Average Exercise Price (in dollars per share) | $2.30 |
Aggregate Intrinsic value (in dollars) | 5,814 |
$3.24 - $4.19 | ' |
Exercise price range | ' |
Low end of the range (in dollars per share) | $3.24 |
High end of the range (in dollars per share) | $4.19 |
Options Outstanding | ' |
Number Outstanding (in shares) | 2,521 |
Weighted Average Remaining Contractual Life | '4 years 4 months 2 days |
Weighted Average Exercise Price (in dollars per share) | $3.77 |
Aggregate Intrinsic value (in dollars) | 4,413 |
Options Exercisable | ' |
Number Exercisable (in shares) | 1,355 |
Weighted Average Remaining Contractual Life | '3 years 8 months 19 days |
Weighted Average Exercise Price (in dollars per share) | $3.76 |
Aggregate Intrinsic value (in dollars) | 2,387 |
$4.20 - $5.61 | ' |
Exercise price range | ' |
Low end of the range (in dollars per share) | $4.20 |
High end of the range (in dollars per share) | $5.61 |
Options Outstanding | ' |
Number Outstanding (in shares) | 3,621 |
Weighted Average Remaining Contractual Life | '3 years 11 months 5 days |
Weighted Average Exercise Price (in dollars per share) | $4.88 |
Aggregate Intrinsic value (in dollars) | 2,422 |
Options Exercisable | ' |
Number Exercisable (in shares) | 2,493 |
Weighted Average Remaining Contractual Life | '1 year 11 months 12 days |
Weighted Average Exercise Price (in dollars per share) | $5.07 |
Aggregate Intrinsic value (in dollars) | $1,240 |
$5.62 - $6.50 | ' |
Exercise price range | ' |
Low end of the range (in dollars per share) | $5.62 |
High end of the range (in dollars per share) | $6.50 |
Options Outstanding | ' |
Number Outstanding (in shares) | 917 |
Weighted Average Remaining Contractual Life | '2 years 11 months 8 days |
Weighted Average Exercise Price (in dollars per share) | $5.98 |
Options Exercisable | ' |
Number Exercisable (in shares) | 672 |
Weighted Average Remaining Contractual Life | '2 years 9 months 18 days |
Weighted Average Exercise Price (in dollars per share) | $5.98 |
StockBased_Compensation_Detail3
Stock-Based Compensation (Details 4) (Options, USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Options | ' | ' | ' |
Stock-Based Compensation | ' | ' | ' |
Outstanding options fully vested and expected to vest (in shares) | 9.4 | ' | ' |
Remaining contractual life of options fully vested and expected to vest | '3 years 7 months 13 days | ' | ' |
Weighted average exercise price of options fully vested and expected to vest (in dollars per share) | $4.05 | ' | ' |
Aggregate intrinsic value of options fully vested and expected to vest (in dollars) | $14.40 | ' | ' |
Fair value of shares vested (in dollars) | 3.2 | 2.4 | ' |
Total intrinsic value of awards exercised (in dollars) | 1.4 | 2.7 | 2.4 |
Awards exercisable (in shares) | ' | 6.4 | ' |
Weighted average exercise price of awards exercisable (in dollars per share) | ' | $4.41 | ' |
Unamortized compensation cost, net of expected forfeitures | $5.50 | ' | ' |
Weighted average period for recognition of unamortized compensation cost | '2 years 6 months | ' | ' |
Stockholders_Equity_Details
Stockholders' Equity (Details) (USD $) | 0 Months Ended | 3 Months Ended | 12 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Nov. 10, 2010 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 |
Item | ||||
Stockholders' Equity | ' | ' | ' | ' |
Number of shares of common stock issued in equity and public offering | ' | 7,500,000 | ' | ' |
Net proceeds from issue of shares of common stock in equity and public offering | ' | $27,700 | $27,746 | ' |
Number of shares issued to MoSys' chief executive officer | ' | 250,000 | ' | ' |
Stockholder Rights Plan | ' | ' | ' | ' |
Number of preferred share purchase rights declared as dividend for each outstanding share of common stock | 1 | ' | ' | ' |
Number of shares of Series AA Preferred Stock that a registered holder of right is entitled to purchase | 0.001 | ' | ' | ' |
Preferred stock, par value (in dollars per share) | $0.01 | ' | $0.01 | $0.01 |
Exercise price (in dollars per one-thousandth of a share) | $48 | ' | ' | ' |
Percentage of the company's common stock acquired by a third party upon which the rights become exercisable | 15.00% | ' | ' | ' |
Minimum percentage of the company's common stock that must receive a tender offer from a third party upon which the rights become exercisable | 15.00% | ' | ' | ' |
Beneficial ownership threshold for a holder of grandfathered stock (as a percent) | 20.00% | ' | ' | ' |
Beneficial ownership threshold for a holder of grandfathered stock after amendment (as a percent) | ' | ' | ' | 15.00% |
Retirement_Savings_Plan_Detail
Retirement Savings Plan (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Item | |||
Retirement Savings Plan | ' | ' | ' |
Minimum age for eligibility to participate in the Savings Plan | 21 | ' | ' |
Maximum contribution by the participants (as a percent) | 15.00% | ' | ' |
Matching contribution by the Company | $0 | $0 | $0 |
Business_Segments_Concentratio2
Business Segments, Concentration of Credit Risk and Significant Customers (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Item | |||
Business Segments, Concentration of Credit Risk and Significant Customers | ' | ' | ' |
Number of business segments | 1 | ' | ' |
Number of measurements of profitability | 1 | ' | ' |
Business Segments | ' | ' | ' |
Revenue | $4,398 | $6,082 | $14,107 |
Net property and equipment | 706 | 1,238 | ' |
Taiwan | ' | ' | ' |
Business Segments | ' | ' | ' |
Revenue | 1,831 | 1,700 | 3,197 |
North America | ' | ' | ' |
Business Segments | ' | ' | ' |
Revenue | 1,318 | 2,511 | 5,476 |
Japan | ' | ' | ' |
Business Segments | ' | ' | ' |
Revenue | 1,207 | 1,571 | 4,700 |
Rest of Asia | ' | ' | ' |
Business Segments | ' | ' | ' |
Revenue | 42 | 214 | 7 |
Europe | ' | ' | ' |
Business Segments | ' | ' | ' |
Revenue | ' | 86 | 727 |
U.S. | ' | ' | ' |
Business Segments | ' | ' | ' |
Net property and equipment | 610 | 1,114 | ' |
Non-U.S. | ' | ' | ' |
Business Segments | ' | ' | ' |
Net property and equipment | $96 | $124 | ' |
Business_Segments_Concentratio3
Business Segments, Concentration of Credit Risk and Significant Customers (Details 2) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Total revenues | Customer concentration risk | Customer A | ' | ' | ' |
Significant Customers | ' | ' | ' |
Percentage of concentration risk | 41.00% | 28.00% | 23.00% |
Total revenues | Customer concentration risk | Customer B | ' | ' | ' |
Significant Customers | ' | ' | ' |
Percentage of concentration risk | 13.00% | 26.00% | 12.00% |
Total revenues | Customer concentration risk | Customer C | ' | ' | ' |
Significant Customers | ' | ' | ' |
Percentage of concentration risk | ' | 12.00% | 17.00% |
Net accounts receivable | Credit concentration | Three customers | ' | ' | ' |
Significant Customers | ' | ' | ' |
Percentage of concentration risk | ' | 100.00% | ' |
Number of customers | ' | 3 | ' |
Net accounts receivable | Credit concentration | Two customers | ' | ' | ' |
Significant Customers | ' | ' | ' |
Percentage of concentration risk | 96.00% | ' | ' |
Number of customers | 2 | ' | ' |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details) (USD $) | 12 Months Ended | 0 Months Ended | 1 Months Ended | 3 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Apr. 03, 2012 | Sep. 30, 2010 | Mar. 31, 2012 | |
Settled litigation | Settled litigation | Settled litigation | ||||
Commitments and Contingencies | ' | ' | ' | ' | ' | ' |
Rent expense | $822,000 | $895,000 | $915,000 | ' | ' | ' |
Future minimum lease payments, Operating leases | ' | ' | ' | ' | ' | ' |
2014 | 756,000 | ' | ' | ' | ' | ' |
2015 | 713,000 | ' | ' | ' | ' | ' |
2016 | 735,000 | ' | ' | ' | ' | ' |
2017 | 756,000 | ' | ' | ' | ' | ' |
2018 | 734,000 | ' | ' | ' | ' | ' |
Thereafter | 1,270,000 | ' | ' | ' | ' | ' |
Total minimum payments | 4,964,000 | ' | ' | ' | ' | ' |
Future minimum lease payments, Purchase commitments | ' | ' | ' | ' | ' | ' |
2014 | 2,875,000 | ' | ' | ' | ' | ' |
2015 | 2,565,000 | ' | ' | ' | ' | ' |
2016 | 368,000 | ' | ' | ' | ' | ' |
Total minimum payments | 5,808,000 | ' | ' | ' | ' | ' |
Future minimum lease payments, Total | ' | ' | ' | ' | ' | ' |
2014 | 3,631,000 | ' | ' | ' | ' | ' |
2015 | 3,278,000 | ' | ' | ' | ' | ' |
2016 | 1,103,000 | ' | ' | ' | ' | ' |
2017 | 756,000 | ' | ' | ' | ' | ' |
2018 | 734,000 | ' | ' | ' | ' | ' |
Thereafter | 1,270,000 | ' | ' | ' | ' | ' |
Total minimum payments | 10,772,000 | ' | ' | ' | ' | ' |
Commitments and Contingencies | ' | ' | ' | ' | ' | ' |
Contractual payment sought (in shares) | ' | ' | ' | ' | 200,000 | ' |
Cash award | ' | ' | ' | 1,400,000 | ' | ' |
Value of shares retired, which were sought as damages | ' | ' | ' | ' | ' | 800,000 |
Amount recorded as expense | ' | ' | ' | ' | ' | $600,000 |
Related_Party_Transactions_Det
Related Party Transactions (Details) (Credo, USD $) | 1 Months Ended | 12 Months Ended | |
Feb. 29, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | |
officer | |||
Credo | ' | ' | ' |
Related party transactions | ' | ' | ' |
Number of executive officers who loaned a portion of seed funding to related parties | ' | 2 | ' |
Amount of loan provided by executive officers to related party | $250,000 | ' | ' |
Payment made to related party | ' | 1,400,000 | 1,100,000 |
Initial amount of gross profits which will be retained by the entity | ' | 2,300,000 | ' |
Research and development expense included in a current liability | ' | $200,000 | ' |
Schedule_IIValuation_and_Quali1
Schedule II-Valuation and Qualifying Accounts (Details) (Allowance for doubtful accounts, USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2011 |
Allowance for doubtful accounts | ' |
Changes in valuation and qualifying accounts | ' |
Balance at beginning of period | $125 |
Deductions, Amounts recovered | ($125) |