Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2014 | Apr. 30, 2014 | |
Document and Entity Information | ' | ' |
Entity Registrant Name | 'MoSys, Inc. | ' |
Entity Central Index Key | '0000890394 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 31-Mar-14 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 49,485,864 |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets | ' | ' |
Cash and cash equivalents | $2,113 | $4,364 |
Short-term investments | 32,739 | 32,192 |
Accounts receivable, net | 353 | 148 |
Inventory | 924 | 567 |
Prepaid expenses and other current assets | 1,052 | 1,104 |
Total current assets | 37,181 | 38,375 |
Long-term investments | 10,824 | 13,926 |
Property and equipment, net | 697 | 706 |
Goodwill | 23,134 | 23,134 |
Intangible assets, net | 1,405 | 1,655 |
Other assets | 204 | 193 |
Total assets | 73,445 | 77,989 |
Current liabilities | ' | ' |
Accounts payable | 825 | 276 |
Accrued expenses and other liabilities | 1,845 | 1,909 |
Deferred revenue | 155 | 170 |
Total current liabilities | 2,825 | 2,355 |
Long-term liabilities | 224 | 216 |
Commitments and contingencies (Note 3) | ' | ' |
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; 49,478 shares and 48,894 shares issued and outstanding at March 31, 2014 and December 31, 2013, respectively | 495 | 489 |
Additional paid-in capital | 195,791 | 192,723 |
Accumulated other comprehensive income | 4 | 13 |
Accumulated deficit | -125,894 | -117,807 |
Total stockholders' equity | 70,396 | 75,418 |
Total liabilities and stockholders' equity | $73,445 | $77,989 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Per Share data, unless otherwise specified | ||
CONDENSED 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 | 49,478 | 48,894 |
Common stock, shares outstanding | 49,478 | 48,894 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Net revenue | ' | ' |
Product | $581 | $61 |
Royalty and other | 751 | 1,274 |
Total net revenue | 1,332 | 1,335 |
Cost of net revenue | 577 | 19 |
Gross profit | 755 | 1,316 |
Operating expenses | ' | ' |
Research and development | 7,054 | 5,320 |
Selling, general and administrative | 1,797 | 1,623 |
Gain on sale of assets | ' | -630 |
Total operating expenses | 8,851 | 6,313 |
Loss from operations | -8,096 | -4,997 |
Other income, net | 30 | 20 |
Loss before income taxes | -8,066 | -4,977 |
Income tax provision | 21 | 20 |
Net loss | -8,087 | -4,997 |
Other comprehensive income (loss), net of tax: | ' | ' |
Net unrealized gains (losses) on available-for-sale securities | -9 | 4 |
Comprehensive loss | ($8,096) | ($4,993) |
Net loss per share | ' | ' |
Basic and diluted (in dollars per share) | ($0.16) | ($0.12) |
Shares used in computing net loss per share | ' | ' |
Basic and diluted (in shares) | 49,174 | 40,264 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Cash flows from operating activities: | ' | ' |
Net loss | ($8,087) | ($4,997) |
Adjustments to reconcile net loss to net cash used in operating activities: | ' | ' |
Depreciation and amortization | 108 | 211 |
Stock-based compensation | 1,491 | 888 |
Amortization of intangible assets | 250 | 250 |
Gain on sale of assets | ' | -630 |
Other non-cash items | ' | 5 |
Changes in assets and liabilities: | ' | ' |
Accounts receivable | -205 | 219 |
Prepaid expenses and other assets | 158 | -88 |
Inventory | -80 | -10 |
Deferred revenue | -15 | -145 |
Accounts payable | 99 | 1,202 |
Accrued expenses and other liabilities | -56 | -1,892 |
Net cash used in operating activities | -6,337 | -4,987 |
Cash flows from investing activities: | ' | ' |
Purchases of property and equipment | -84 | -57 |
Net proceeds from sale of assets | ' | 630 |
Proceeds from sales and maturities of marketable securities | 13,531 | 15,589 |
Purchases of marketable securities | -10,985 | -9,433 |
Net cash provided by investing activities | 2,462 | 6,729 |
Cash flows from financing activities: | ' | ' |
Proceeds from issuance of common stock | 1,624 | 1,008 |
Net cash provided by financing activities | 1,624 | 1,008 |
Net (decrease) increase in cash and cash equivalents | -2,251 | 2,750 |
Cash and cash equivalents at beginning of period | 4,364 | 2,529 |
Cash and cash equivalents at end of period | $2,113 | $5,279 |
The_Company_and_Summary_of_Sig
The Company and Summary of Significant Accounting Policies | 3 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
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’s strategy and primary business objective is to be an IP-rich fabless semiconductor company focused on the development and sale of integrated circuit (IC) products. Prior to 2011, the Company’s primary business activities were designing, developing, marketing and licensing high-performance semiconductor memory and high-speed parallel and serial interface, or SerDes, intellectual property (IP) used by the semiconductor industry and communications, networking and storage equipment manufacturers. Since 2011, the Company has developed two IC product lines under the “Bandwidth Engine” and “LineSpeed” product names. Bandwidth Engine ICs combine the Company’s proprietary high-density embedded memory with its high-speed 10 gigabits per second and higher interface technology. In March 2013, the Company announced the LineSpeed IC product line, which is comprised of non-memory based, high-speed SerDes devices with gearbox or retimer functionality that 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 future success and ability to achieve and maintain profitability depends on its success in developing a market for its ICs. | |||||||||||||
The accompanying condensed consolidated financial statements of the Company have been prepared without audit in accordance with the rules and regulations of the Securities and Exchange Commission (SEC). The condensed consolidated balance sheet at December 31, 2013 has been derived from the audited consolidated financial statements at that date. Certain information and disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (GAAP) have been condensed or omitted in accordance with these rules and regulations. The information in this report should be read in conjunction with the Company’s consolidated financial statements and notes thereto included in its most recent annual report on Form 10-K filed with the SEC. | |||||||||||||
In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments (consisting only of normal recurring adjustments) necessary to summarize fairly the Company’s financial position, results of operations and cash flows for the interim periods presented. The operating results for the three months ended March 31, 2014 are not necessarily indicative of the results that may be expected for the year ending December 31, 2014 or for any other future period. | |||||||||||||
Basis of Presentation | |||||||||||||
The condensed 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 is the calendar year. | |||||||||||||
Reclassification | |||||||||||||
Certain prior year amounts have been reclassified to conform to the current year presentation. The reclassification includes reclassifying inventory as a separate line item, which was previously included in the prepaid expenses and other current assets line item of the condensed consolidated balance sheets. Revenue line items have been reclassified to create a separate line item for product revenue and to include licensing revenue in the royalty and other line item. The amounts for the prior periods have been reclassified to be consistent with the current year presentation and have no impact on previously reported total assets, total stockholders’ equity or net loss. | |||||||||||||
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 reported amounts of revenues and expenses recognized during the reported period. Actual results could differ from those estimates. | |||||||||||||
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 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 March 31, 2014 and December 31, 2013. | |||||||||||||
Revenue Recognition | |||||||||||||
General | |||||||||||||
The Company generates revenue from the sales of IC products and licensing of its IP. 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. | |||||||||||||
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 condensed consolidated balance sheets. The Company recorded initial IC product revenue in 2012, and a reserve for returns has been recorded due to the product’s early stage deployment in customer systems. | |||||||||||||
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. Support and maintenance revenue is recognized ratably over the period during which the obligation exists, typically 12 months. Licensing revenue was $41,000 and $188,000 for the three months ended March 31, 2014 and 2013, respectively. | |||||||||||||
Cost of Net Revenue | |||||||||||||
Cost of net 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. | |||||||||||||
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 March 31, 2014, 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. | |||||||||||||
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. Identifiable intangible assets relating to business combinations and the patent license were as follows (dollar amounts in thousands): | |||||||||||||
March 31, 2014 | |||||||||||||
Life | Gross | Accumulated | Net | ||||||||||
(years) | Carrying | Amortization | Carrying | ||||||||||
Amount | Value | ||||||||||||
Developed technology | 5-Mar | $ | 9,240 | $ | 8,364 | $ | 876 | ||||||
Patent license | 7 | 780 | 251 | 529 | |||||||||
Total | $ | 10,020 | $ | 8,615 | $ | 1,405 | |||||||
December 31, 2013 | |||||||||||||
Life | Gross | Accumulated | Net | ||||||||||
(years) | Carrying | Amortization | Carrying | ||||||||||
Amount | Value | ||||||||||||
Developed technology | 5-Mar | $ | 9,240 | $ | 8,142 | $ | 1,098 | ||||||
Patent license | 7 | 780 | 223 | 557 | |||||||||
Total | $ | 10,020 | $ | 8,365 | $ | 1,655 | |||||||
Amortization expense has been included in research and development expense in the condensed consolidated statements of operations and comprehensive loss. The estimated aggregate amortization expense to be recognized in future years is approximately $0.8 million for the remainder of 2014, $0.3 million for 2015 and $0.1 million annually for 2016, 2017 and 2018. | |||||||||||||
Per Share Amounts | |||||||||||||
Basic net loss per share is computed by dividing net loss for the period by the weighted-average number of shares of common stock outstanding during the period. Diluted net loss per share gives effect to all potentially dilutive common shares outstanding during the period. Potentially dilutive common shares consist of incremental shares of common stock issuable upon the exercise of stock options, vesting of stock awards and purchases under the employee stock purchase plan. As of March 31, 2014 and 2013, stock awards to purchase approximately 10,173,000 and 9,970,000 shares, respectively, were excluded from the computation of diluted net loss per share as their inclusion would be anti-dilutive. | |||||||||||||
Comprehensive Loss | |||||||||||||
Comprehensive loss includes unrealized gains and losses on available-for-sale securities. Realized gains and losses on available-for-sale securities are reclassified from accumulated other comprehensive loss and included in other income, net in the condensed consolidated statements of operations and comprehensive loss. All amounts recorded in the three months ended March 31, 2014 and 2013 are not considered significant. | |||||||||||||
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 3 Months Ended | |||||||||||||
Mar. 31, 2014 | ||||||||||||||
Fair Value of Financial Instruments | ' | |||||||||||||
Fair Value of Financial Instruments | ' | |||||||||||||
Note 2: Fair Value of Financial Instruments | ||||||||||||||
The estimated fair values of financial instruments outstanding were as follows (in thousands): | ||||||||||||||
March 31, 2014 | ||||||||||||||
Cost | Unrealized | Unrealized | Fair | |||||||||||
Gains | Losses | Value | ||||||||||||
Cash and cash equivalents | $ | 2,113 | $ | — | $ | — | $ | 2,113 | ||||||
Short-term investments: | ||||||||||||||
U.S. government debt securities | $ | 15,943 | $ | 7 | $ | (1 | ) | $ | 15,949 | |||||
Corporate notes | 12,558 | 13 | — | 12,571 | ||||||||||
Certificates of deposit | 4,219 | 1 | (1 | ) | 4,219 | |||||||||
Total short-term investments | $ | 32,720 | $ | 21 | $ | (2 | ) | $ | 32,739 | |||||
Long-term investments: | ||||||||||||||
U.S. government debt securities | $ | 2,801 | $ | — | $ | (6 | ) | $ | 2,795 | |||||
Corporate notes | 6,838 | 4 | (11 | ) | 6,831 | |||||||||
Certificates of deposit | 1,200 | — | (2 | ) | 1,198 | |||||||||
Total long-term investments | $ | 10,839 | $ | 4 | $ | (19 | ) | $ | 10,824 | |||||
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 | |||||
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): | ||||||||||||||
March 31, 2014 | ||||||||||||||
Cost | Unrealized | Fair Value | ||||||||||||
Losses | ||||||||||||||
Short-term investments: | ||||||||||||||
U.S. government debt securities | $ | 2,012 | $ | (1 | ) | $ | 2,011 | |||||||
Certificates of deposit | 2,600 | (1 | ) | 2,599 | ||||||||||
Total short-term investments | $ | 4,612 | $ | (2 | ) | $ | 4,610 | |||||||
Long-term investments: | ||||||||||||||
U.S. government debt securities | $ | 2,801 | $ | (6 | ) | $ | 2,795 | |||||||
Corporate notes | 4,827 | (11 | ) | 4,816 | ||||||||||
Certificates of deposit | 1,200 | (2 | ) | 1,198 | ||||||||||
Total long-term investments | $ | 8,828 | $ | (19 | ) | $ | 8,809 | |||||||
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 | |||||||
As of March 31, 2014 and December 31, 2013, all of the available-for-sale securities with unrealized losses were 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): | ||||||||||||||
March 31, 2014 | ||||||||||||||
Cost | Unrealized | Unrealized | Fair | |||||||||||
Gains | Losses | Value | ||||||||||||
Due within 1 year | $ | 32,720 | $ | 21 | $ | (2 | ) | $ | 32,739 | |||||
Due in 1-2 years | 10,839 | 4 | (19 | ) | 10,824 | |||||||||
Total | $ | 43,559 | $ | 25 | $ | (21 | ) | $ | 43,563 | |||||
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 | |||||
The following table represents the Company’s fair value hierarchy for its financial assets (cash equivalents and investments) as of March 31, 2014 and December 31, 2013 (in thousands): | ||||||||||||||
March 31, 2014 | ||||||||||||||
Fair Value | Level 1 | Level 2 | Level 3 | |||||||||||
Money market funds | $ | 1,167 | $ | 1,167 | $ | — | $ | — | ||||||
Certificates of deposit | 5,417 | — | 5,417 | — | ||||||||||
Corporate notes | 19,902 | — | 19,902 | — | ||||||||||
U.S. government debt securities | 18,744 | — | 18,744 | — | ||||||||||
Total assets | $ | 45,230 | $ | 1,167 | $ | 44,063 | $ | — | ||||||
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 | $ | — | ||||||
There were no transfers in or out of Level 1 and Level 2 securities during the three months ended March 31, 2014 and 2013. | ||||||||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2014 | |
Commitments and Contingencies | ' |
Commitments and Contingencies | ' |
Note 3. Commitments and Contingencies | |
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 condensed consolidated financial statements for the three months ended March 31, 2014 or 2013 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 material 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 condensed 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. | |
Business_Segments_and_Signific
Business Segments and Significant Customers | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Business Segments and Significant Customers | ' | |||||||
Business Segments and Significant Customers | ' | |||||||
Note 4. Business Segments and Significant Customers | ||||||||
The Company operates in one business segment and uses one measurement of profitability for its business. Net revenue attributed to the United States and to all foreign countries is based on the geographical location of the customer. | ||||||||
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): | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2014 | 2013 | |||||||
Japan | $ | 623 | $ | 534 | ||||
Taiwan | 337 | 448 | ||||||
North America | 350 | 348 | ||||||
Rest of Asia | 11 | 5 | ||||||
Europe | 11 | — | ||||||
Total net revenue | $ | 1,332 | $ | 1,335 | ||||
Customers who accounted for at least 10% of total net revenue were as follows: | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2014 | 2013 | |||||||
Customer A | 38 | % | * | |||||
Customer B | 24 | % | 33 | % | ||||
Customer C | 20 | % | 13 | % | ||||
Customer D | * | 14 | % | |||||
Customer E | * | 11 | % | |||||
*Represents less than 10% | ||||||||
Two customers accounted for 93% of net accounts receivable at March 31, 2014. Two customers accounted for 96% of net accounts receivable at December 31, 2013. | ||||||||
Income_Tax_Provision
Income Tax Provision | 3 Months Ended |
Mar. 31, 2014 | |
Income Tax Provision | ' |
Income Tax Provision | ' |
Note 5. Income Tax Provision | |
The Company determines deferred tax assets and liabilities based upon the differences between the financial statement and tax bases 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 March 31, 2014, the Company has not recorded any liability for unrecognized tax benefits related to uncertain tax positions. | |
StockBased_Compensation
Stock-Based Compensation | 3 Months Ended | |||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||
Stock-Based Compensation | ' | |||||||||||||||||||||
Stock-Based Compensation | ' | |||||||||||||||||||||
Note 6. Stock-Based Compensation | ||||||||||||||||||||||
The Company recorded approximately $1.5 million and $0.9 million of stock-based compensation expense for the three months ended March 31, 2014 and 2013, respectively. The expense relating to stock options is recognized on a straight-line basis over the requisite service period, usually the vesting period, based on the grant-date fair value. The unamortized compensation cost, net of expected forfeitures, as of March 31, 2014 was $5.1 million related to stock options and is expected to be recognized as expense over a weighted average period of approximately 2.38 years. The expense related to restricted stock units is recognized over a three-to-five year vesting period and is based on the fair value of the underlying stock on the dates of grant. The unamortized compensation cost, net of expected forfeitures, as of March 31, 2014 was $1.5 million related to restricted stock units and is expected to be recognized as expense over a weighted average period of approximately 2.95 years. | ||||||||||||||||||||||
The Company presents 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 condensed consolidated statements of cash flows. For the three months ended March 31, 2014 and 2013, there were no such tax benefits associated with the exercise of stock options due to the Company’s loss position. | ||||||||||||||||||||||
Common Stock Options and Restricted Stock | ||||||||||||||||||||||
A summary of the option activity under the Company’s Amended and Restated 2000 Stock Option and Equity Incentive Plan (Amended 2000 Plan) and 2010 Equity Incentive Plan (2010 Plan), referred to collectively as the “Plans,” is presented below (in thousands, except exercise price): | ||||||||||||||||||||||
Options Outstanding | ||||||||||||||||||||||
Available | Number of | Weighted | ||||||||||||||||||||
for Grant | Shares | Average | ||||||||||||||||||||
Exercise | ||||||||||||||||||||||
Prices | ||||||||||||||||||||||
Balance at December 31, 2013 | 422 | 6,727 | $ | 3.86 | ||||||||||||||||||
Additional shares authorized under the 2010 Plan | 500 | — | — | |||||||||||||||||||
Restricted stock units granted | (499 | ) | — | — | ||||||||||||||||||
Options granted | (49 | ) | 49 | $ | 4.69 | |||||||||||||||||
Options cancelled | 60 | (60 | ) | 3.42 | ||||||||||||||||||
Options exercised | — | (300 | ) | $ | 3.58 | |||||||||||||||||
Options expired | (60 | ) | — | 3.42 | ||||||||||||||||||
Balance at March 31, 2014 | 374 | 6,416 | $ | 3.89 | ||||||||||||||||||
The Company also has awarded options to new employees outside of the Plans and may continue to do so, as material inducements to the acceptance of employment with the Company, as permitted under the Listing Rules of the Nasdaq Stock Market. These grants must be approved by the compensation committee of the board of directors, a majority of the independent directors or, below a specified share level, by an authorized executive officer. | ||||||||||||||||||||||
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, 2013 | 3,178 | $ | 4.42 | |||||||||||||||||||
Granted | 118 | $ | 5.22 | |||||||||||||||||||
Cancelled | (40 | ) | $ | 4.47 | ||||||||||||||||||
Exercised | (32 | ) | $ | 3.88 | ||||||||||||||||||
Balance at March 31, 2014 | 3,224 | $ | 4.46 | |||||||||||||||||||
A summary of restricted stock unit activity is presented below (in thousands, except for fair value): | ||||||||||||||||||||||
Number | Weighted | |||||||||||||||||||||
of | Average | |||||||||||||||||||||
Shares | Grant-Date | |||||||||||||||||||||
Fair Value | ||||||||||||||||||||||
Non-vested shares at December 31, 2013 | 27 | $ | 4.46 | |||||||||||||||||||
Granted | 499 | $ | 4.62 | |||||||||||||||||||
Vested | (122 | ) | $ | 4.62 | ||||||||||||||||||
Non-vested shares at March 31, 2014 | 404 | $ | 4.61 | |||||||||||||||||||
The following table summarizes significant ranges of outstanding and exercisable options as of March 31, 2014 (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 | 2,735 | 3.04 | $ | 2.6 | $ | 5,313 | 1,789 | 2.45 | $ | 2.33 | $ | 3,948 | ||||||||||
$3.24 - $4.25 | 2,565 | 4.13 | $ | 3.81 | 1,866 | 1,508 | 4 | $ | 3.83 | 1,074 | ||||||||||||
$4.26 - $5.61 | 3,400 | 4.24 | $ | 4.94 | 150 | 2,269 | 2 | $ | 5.15 | 72 | ||||||||||||
$5.62 - $6.50 | 940 | 2.87 | $ | 5.98 | — | 719 | 2.59 | $ | 5.98 | — | ||||||||||||
9,640 | 3.74 | $ | 4.08 | $ | 7,329 | 6,285 | 2.68 | $ | 4.13 | $ | 5,094 | |||||||||||
As of March 31, 2014, the Company had 9.3 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 $4.08 and aggregate intrinsic value of $7.1 million. | ||||||||||||||||||||||
The total fair value of shares subject to outstanding options vested during the three months ended March 31, 2014 and 2013 calculated using the Black-Scholes valuation method was $0.8 million for each period. The total intrinsic value of employee stock options exercised during the three months ended March 31, 2014 and 2013 was $0.5 million and $0.4 million, respectively. | ||||||||||||||||||||||
Valuation Assumptions | ||||||||||||||||||||||
The fair value of the Company’s share-based payment awards for the three months ended March 31, 2014 and 2013 was estimated on the grant dates using the Black-Scholes valuation option-pricing model with the following assumptions: | ||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||
March 31, | ||||||||||||||||||||||
Employee stock options: | 2014 | 2013 | ||||||||||||||||||||
Risk-free interest rate | 1.5% - 1.7% | 0.60% | ||||||||||||||||||||
Volatility | 56.9% - 57.5% | 58.5% - 59.1% | ||||||||||||||||||||
Expected life (years) | 4.0-5.0 | 4 | ||||||||||||||||||||
Dividend yield | 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. | ||||||||||||||||||||||
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. On February 28, 2014, approximately 140,000 shares of common stock were issued at an aggregate purchase price of $434,000 under the ESPP. As of March 31, 2014, there were approximately 920,000 shares authorized and unissued under the ESPP. | ||||||||||||||||||||||
Related_Party_Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2014 | |
Related Party Transactions | ' |
Related Party Transactions | ' |
Note 7. 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 and its amendments calls 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. To date, the Company has paid Credo $2.8 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. Under the agreement, the first $2.5 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. In the first half of 2013, the Company announced prototype samples of SerDes products developed pursuant to the strategic development and marketing agreement. | |
Inventory
Inventory | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Inventory | ' | |||||||
Inventory | ' | |||||||
Note 8. Inventory | ||||||||
As of March 31, | As of December 31, | |||||||
2014 | 2013 | |||||||
(in thousands) | ||||||||
Work-in-process | $ | 845 | $ | 542 | ||||
Finished goods | 79 | 25 | ||||||
$ | 924 | $ | 567 |
The_Company_and_Summary_of_Sig1
The Company and Summary of Significant Accounting Policies (Policies) | 3 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
The Company and Summary of Significant Accounting Policies | ' | ||||||||||||
Basis of Presentation | ' | ||||||||||||
Basis of Presentation | |||||||||||||
The condensed 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 is the calendar year. | |||||||||||||
Reclassification | ' | ||||||||||||
Reclassification | |||||||||||||
Certain prior year amounts have been reclassified to conform to the current year presentation. The reclassification includes reclassifying inventory as a separate line item, which was previously included in the prepaid expenses and other current assets line item of the condensed consolidated balance sheets. Revenue line items have been reclassified to create a separate line item for product revenue and to include licensing revenue in the royalty and other line item. The amounts for the prior periods have been reclassified to be consistent with the current year presentation and have no impact on previously reported total assets, total stockholders’ equity or net loss. | |||||||||||||
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 reported amounts of revenues and expenses recognized during the reported period. Actual results could differ from those estimates. | |||||||||||||
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 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 March 31, 2014 and December 31, 2013. | |||||||||||||
Revenue Recognition | ' | ||||||||||||
Revenue Recognition | |||||||||||||
General | |||||||||||||
The Company generates revenue from the sales of IC products and licensing of its IP. 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. | |||||||||||||
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 condensed consolidated balance sheets. The Company recorded initial IC product revenue in 2012, and a reserve for returns has been recorded due to the product’s early stage deployment in customer systems. | |||||||||||||
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. Support and maintenance revenue is recognized ratably over the period during which the obligation exists, typically 12 months. Licensing revenue was $41,000 and $188,000 for the three months ended March 31, 2014 and 2013, respectively. | |||||||||||||
Cost of Net Revenue | ' | ||||||||||||
Cost of Net Revenue | |||||||||||||
Cost of net 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. | |||||||||||||
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 March 31, 2014, 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. | |||||||||||||
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. Identifiable intangible assets relating to business combinations and the patent license were as follows (dollar amounts in thousands): | |||||||||||||
March 31, 2014 | |||||||||||||
Life | Gross | Accumulated | Net | ||||||||||
(years) | Carrying | Amortization | Carrying | ||||||||||
Amount | Value | ||||||||||||
Developed technology | 5-Mar | $ | 9,240 | $ | 8,364 | $ | 876 | ||||||
Patent license | 7 | 780 | 251 | 529 | |||||||||
Total | $ | 10,020 | $ | 8,615 | $ | 1,405 | |||||||
December 31, 2013 | |||||||||||||
Life | Gross | Accumulated | Net | ||||||||||
(years) | Carrying | Amortization | Carrying | ||||||||||
Amount | Value | ||||||||||||
Developed technology | 5-Mar | $ | 9,240 | $ | 8,142 | $ | 1,098 | ||||||
Patent license | 7 | 780 | 223 | 557 | |||||||||
Total | $ | 10,020 | $ | 8,365 | $ | 1,655 | |||||||
Amortization expense has been included in research and development expense in the condensed consolidated statements of operations and comprehensive loss. The estimated aggregate amortization expense to be recognized in future years is approximately $0.8 million for the remainder of 2014, $0.3 million for 2015 and $0.1 million annually for 2016, 2017 and 2018. | |||||||||||||
Per Share Amounts | ' | ||||||||||||
Per Share Amounts | |||||||||||||
Basic net loss per share is computed by dividing net loss for the period by the weighted-average number of shares of common stock outstanding during the period. Diluted net loss per share gives effect to all potentially dilutive common shares outstanding during the period. Potentially dilutive common shares consist of incremental shares of common stock issuable upon the exercise of stock options, vesting of stock awards and purchases under the employee stock purchase plan. As of March 31, 2014 and 2013, stock awards to purchase approximately 10,173,000 and 9,970,000 shares, respectively, were excluded from the computation of diluted net loss per share as their inclusion would be anti-dilutive. | |||||||||||||
Comprehensive Loss | ' | ||||||||||||
Comprehensive Loss | |||||||||||||
Comprehensive loss includes unrealized gains and losses on available-for-sale securities. Realized gains and losses on available-for-sale securities are reclassified from accumulated other comprehensive loss and included in other income, net in the condensed consolidated statements of operations and comprehensive loss. All amounts recorded in the three months ended March 31, 2014 and 2013 are not considered significant. | |||||||||||||
The_Company_and_Summary_of_Sig2
The Company and Summary of Significant Accounting Policies (Tables) | 3 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
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): | |||||||||||||
March 31, 2014 | |||||||||||||
Life | Gross | Accumulated | Net | ||||||||||
(years) | Carrying | Amortization | Carrying | ||||||||||
Amount | Value | ||||||||||||
Developed technology | 5-Mar | $ | 9,240 | $ | 8,364 | $ | 876 | ||||||
Patent license | 7 | 780 | 251 | 529 | |||||||||
Total | $ | 10,020 | $ | 8,615 | $ | 1,405 | |||||||
December 31, 2013 | |||||||||||||
Life | Gross | Accumulated | Net | ||||||||||
(years) | Carrying | Amortization | Carrying | ||||||||||
Amount | Value | ||||||||||||
Developed technology | 5-Mar | $ | 9,240 | $ | 8,142 | $ | 1,098 | ||||||
Patent license | 7 | 780 | 223 | 557 | |||||||||
Total | $ | 10,020 | $ | 8,365 | $ | 1,655 | |||||||
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments (Tables) | 3 Months Ended | |||||||||||||
Mar. 31, 2014 | ||||||||||||||
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): | ||||||||||||||
March 31, 2014 | ||||||||||||||
Cost | Unrealized | Unrealized | Fair | |||||||||||
Gains | Losses | Value | ||||||||||||
Cash and cash equivalents | $ | 2,113 | $ | — | $ | — | $ | 2,113 | ||||||
Short-term investments: | ||||||||||||||
U.S. government debt securities | $ | 15,943 | $ | 7 | $ | (1 | ) | $ | 15,949 | |||||
Corporate notes | 12,558 | 13 | — | 12,571 | ||||||||||
Certificates of deposit | 4,219 | 1 | (1 | ) | 4,219 | |||||||||
Total short-term investments | $ | 32,720 | $ | 21 | $ | (2 | ) | $ | 32,739 | |||||
Long-term investments: | ||||||||||||||
U.S. government debt securities | $ | 2,801 | $ | — | $ | (6 | ) | $ | 2,795 | |||||
Corporate notes | 6,838 | 4 | (11 | ) | 6,831 | |||||||||
Certificates of deposit | 1,200 | — | (2 | ) | 1,198 | |||||||||
Total long-term investments | $ | 10,839 | $ | 4 | $ | (19 | ) | $ | 10,824 | |||||
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 | |||||
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): | ||||||||||||||
March 31, 2014 | ||||||||||||||
Cost | Unrealized | Fair Value | ||||||||||||
Losses | ||||||||||||||
Short-term investments: | ||||||||||||||
U.S. government debt securities | $ | 2,012 | $ | (1 | ) | $ | 2,011 | |||||||
Certificates of deposit | 2,600 | (1 | ) | 2,599 | ||||||||||
Total short-term investments | $ | 4,612 | $ | (2 | ) | $ | 4,610 | |||||||
Long-term investments: | ||||||||||||||
U.S. government debt securities | $ | 2,801 | $ | (6 | ) | $ | 2,795 | |||||||
Corporate notes | 4,827 | (11 | ) | 4,816 | ||||||||||
Certificates of deposit | 1,200 | (2 | ) | 1,198 | ||||||||||
Total long-term investments | $ | 8,828 | $ | (19 | ) | $ | 8,809 | |||||||
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 | |||||||
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): | ||||||||||||||
March 31, 2014 | ||||||||||||||
Cost | Unrealized | Unrealized | Fair | |||||||||||
Gains | Losses | Value | ||||||||||||
Due within 1 year | $ | 32,720 | $ | 21 | $ | (2 | ) | $ | 32,739 | |||||
Due in 1-2 years | 10,839 | 4 | (19 | ) | 10,824 | |||||||||
Total | $ | 43,559 | $ | 25 | $ | (21 | ) | $ | 43,563 | |||||
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 | |||||
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 March 31, 2014 and December 31, 2013 (in thousands): | ||||||||||||||
March 31, 2014 | ||||||||||||||
Fair Value | Level 1 | Level 2 | Level 3 | |||||||||||
Money market funds | $ | 1,167 | $ | 1,167 | $ | — | $ | — | ||||||
Certificates of deposit | 5,417 | — | 5,417 | — | ||||||||||
Corporate notes | 19,902 | — | 19,902 | — | ||||||||||
U.S. government debt securities | 18,744 | — | 18,744 | — | ||||||||||
Total assets | $ | 45,230 | $ | 1,167 | $ | 44,063 | $ | — | ||||||
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 | $ | — | ||||||
Business_Segments_and_Signific1
Business Segments and Significant Customers (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Business Segments 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): | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2014 | 2013 | |||||||
Japan | $ | 623 | $ | 534 | ||||
Taiwan | 337 | 448 | ||||||
North America | 350 | 348 | ||||||
Rest of Asia | 11 | 5 | ||||||
Europe | 11 | — | ||||||
Total net revenue | $ | 1,332 | $ | 1,335 | ||||
Schedule of customers who accounted for at least 10% of total net revenue | ' | |||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2014 | 2013 | |||||||
Customer A | 38 | % | * | |||||
Customer B | 24 | % | 33 | % | ||||
Customer C | 20 | % | 13 | % | ||||
Customer D | * | 14 | % | |||||
Customer E | * | 11 | % | |||||
*Represents less than 10% | ||||||||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 3 Months Ended | |||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||
Stock-Based Compensation | ' | |||||||||||||||||||||
Summary of the option activity under the Company's Amended and Restated 2000 Stock Option and Equity Incentive Plan (Amended 2000 Plan) and 2010 Equity Incentive Plan (2010 Plan), referred to collectively as the "Plans" | ' | |||||||||||||||||||||
A summary of the option activity under the Company’s Amended and Restated 2000 Stock Option and Equity Incentive Plan (Amended 2000 Plan) and 2010 Equity Incentive Plan (2010 Plan), referred to collectively as the “Plans,” is presented below (in thousands, except exercise price): | ||||||||||||||||||||||
Options Outstanding | ||||||||||||||||||||||
Available | Number of | Weighted | ||||||||||||||||||||
for Grant | Shares | Average | ||||||||||||||||||||
Exercise | ||||||||||||||||||||||
Prices | ||||||||||||||||||||||
Balance at December 31, 2013 | 422 | 6,727 | $ | 3.86 | ||||||||||||||||||
Additional shares authorized under the 2010 Plan | 500 | — | — | |||||||||||||||||||
Restricted stock units granted | (499 | ) | — | — | ||||||||||||||||||
Options granted | (49 | ) | 49 | $ | 4.69 | |||||||||||||||||
Options cancelled | 60 | (60 | ) | 3.42 | ||||||||||||||||||
Options exercised | — | (300 | ) | $ | 3.58 | |||||||||||||||||
Options expired | (60 | ) | — | 3.42 | ||||||||||||||||||
Balance at March 31, 2014 | 374 | 6,416 | $ | 3.89 | ||||||||||||||||||
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, 2013 | 3,178 | $ | 4.42 | |||||||||||||||||||
Granted | 118 | $ | 5.22 | |||||||||||||||||||
Cancelled | (40 | ) | $ | 4.47 | ||||||||||||||||||
Exercised | (32 | ) | $ | 3.88 | ||||||||||||||||||
Balance at March 31, 2014 | 3,224 | $ | 4.46 | |||||||||||||||||||
Summary of restricted stock unit activity | ' | |||||||||||||||||||||
A summary of restricted stock unit activity is presented below (in thousands, except for fair value): | ||||||||||||||||||||||
Number | Weighted | |||||||||||||||||||||
of | Average | |||||||||||||||||||||
Shares | Grant-Date | |||||||||||||||||||||
Fair Value | ||||||||||||||||||||||
Non-vested shares at December 31, 2013 | 27 | $ | 4.46 | |||||||||||||||||||
Granted | 499 | $ | 4.62 | |||||||||||||||||||
Vested | (122 | ) | $ | 4.62 | ||||||||||||||||||
Non-vested shares at March 31, 2014 | 404 | $ | 4.61 | |||||||||||||||||||
Summary of significant ranges of outstanding and exercisable options | ' | |||||||||||||||||||||
The following table summarizes significant ranges of outstanding and exercisable options as of March 31, 2014 (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 | 2,735 | 3.04 | $ | 2.6 | $ | 5,313 | 1,789 | 2.45 | $ | 2.33 | $ | 3,948 | ||||||||||
$3.24 - $4.25 | 2,565 | 4.13 | $ | 3.81 | 1,866 | 1,508 | 4 | $ | 3.83 | 1,074 | ||||||||||||
$4.26 - $5.61 | 3,400 | 4.24 | $ | 4.94 | 150 | 2,269 | 2 | $ | 5.15 | 72 | ||||||||||||
$5.62 - $6.50 | 940 | 2.87 | $ | 5.98 | — | 719 | 2.59 | $ | 5.98 | — | ||||||||||||
9,640 | 3.74 | $ | 4.08 | $ | 7,329 | 6,285 | 2.68 | $ | 4.13 | $ | 5,094 | |||||||||||
Schedule of assumptions used in estimation of fair value of the share-based payment awards on the grant date | ' | |||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||
March 31, | ||||||||||||||||||||||
Employee stock options: | 2014 | 2013 | ||||||||||||||||||||
Risk-free interest rate | 1.5% - 1.7% | 0.60% | ||||||||||||||||||||
Volatility | 56.9% - 57.5% | 58.5% - 59.1% | ||||||||||||||||||||
Expected life (years) | 4.0-5.0 | 4 | ||||||||||||||||||||
Dividend yield | 0% | 0% | ||||||||||||||||||||
Inventory_Tables
Inventory (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Inventory | ' | |||||||
Schedule of inventory | ' | |||||||
As of March 31, | As of December 31, | |||||||
2014 | 2013 | |||||||
(in thousands) | ||||||||
Work-in-process | $ | 845 | $ | 542 | ||||
Finished goods | 79 | 25 | ||||||
$ | 924 | $ | 567 |
The_Company_and_Summary_of_Sig3
The Company and Summary of Significant Accounting Policies (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2013 |
GB | ||
Item | ||
The Company and Summary of Significant Accounting Policies | ' | ' |
Number of IC products developed | 2 | ' |
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 |
The_Company_and_Summary_of_Sig4
The Company and Summary of Significant Accounting Policies (Details 2) (USD $) | 3 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | |
Developed technology | Developed technology | Developed technology | Developed technology | Developed technology | Developed technology | Patent license | Patent license | ||||
Minimum | Minimum | Maximum | Maximum | ||||||||
Revenue Recognition | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
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 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Support and maintenance revenue recognition period | '12 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Licensing revenue | $41,000 | $188,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Intangible assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Life | ' | ' | ' | ' | ' | '3 years | '3 years | '5 years | '5 years | '7 years | '7 years |
Gross Carrying Amount | 10,020,000 | ' | 10,020,000 | 9,240,000 | 9,240,000 | ' | ' | ' | ' | 780,000 | 780,000 |
Accumulated Amortization | 8,615,000 | ' | 8,365,000 | 8,364,000 | 8,142,000 | ' | ' | ' | ' | 251,000 | 223,000 |
Net Carrying Value | 1,405,000 | ' | 1,655,000 | 876,000 | 1,098,000 | ' | ' | ' | ' | 529,000 | 557,000 |
Estimated aggregate amortization expense to be recognized in future | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Remainder of 2014 | 800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2015 | 300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2016 | 100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2017 | 100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2018 | $100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Per Share Amounts | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Anti-dilutive securities excluded from computation of diluted net loss per share | 10,173,000 | 9,970,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair_Value_of_Financial_Instru2
Fair Value of Financial Instruments (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||||
Fair Value of Financial Instruments | ' | ' | ' | ' |
Cash and cash equivalents, cost | $2,113 | $4,364 | $5,279 | $2,529 |
Cash and cash equivalents, fair value | 2,113 | 4,364 | ' | ' |
Estimated fair values of financial instruments | ' | ' | ' | ' |
Unrealized Gains | 25 | 23 | ' | ' |
Unrealized Losses | -21 | -10 | ' | ' |
Short-term investments | ' | ' | ' | ' |
Estimated fair values of financial instruments | ' | ' | ' | ' |
Cost | 32,720 | 32,183 | ' | ' |
Unrealized Gains | 21 | 14 | ' | ' |
Unrealized Losses | -2 | -5 | ' | ' |
Fair Value | 32,739 | 32,192 | ' | ' |
Short-term investments | U.S. government debt securities | ' | ' | ' | ' |
Estimated fair values of financial instruments | ' | ' | ' | ' |
Cost | 15,943 | 19,944 | ' | ' |
Unrealized Gains | 7 | 11 | ' | ' |
Unrealized Losses | -1 | -1 | ' | ' |
Fair Value | 15,949 | 19,954 | ' | ' |
Short-term investments | Corporate notes | ' | ' | ' | ' |
Estimated fair values of financial instruments | ' | ' | ' | ' |
Cost | 12,558 | 7,245 | ' | ' |
Unrealized Gains | 13 | 2 | ' | ' |
Unrealized Losses | ' | -2 | ' | ' |
Fair Value | 12,571 | 7,245 | ' | ' |
Short-term investments | Certificates of deposit | ' | ' | ' | ' |
Estimated fair values of financial instruments | ' | ' | ' | ' |
Cost | 4,219 | 4,994 | ' | ' |
Unrealized Gains | 1 | 1 | ' | ' |
Unrealized Losses | -1 | -2 | ' | ' |
Fair Value | 4,219 | 4,993 | ' | ' |
Long-term investments | ' | ' | ' | ' |
Estimated fair values of financial instruments | ' | ' | ' | ' |
Cost | 10,839 | 13,922 | ' | ' |
Unrealized Gains | 4 | 9 | ' | ' |
Unrealized Losses | -19 | -5 | ' | ' |
Fair Value | 10,824 | 13,926 | ' | ' |
Long-term investments | U.S. government debt securities | ' | ' | ' | ' |
Estimated fair values of financial instruments | ' | ' | ' | ' |
Cost | 2,801 | 3,016 | ' | ' |
Unrealized Losses | -6 | ' | ' | ' |
Fair Value | 2,795 | 3,016 | ' | ' |
Long-term investments | Corporate notes | ' | ' | ' | ' |
Estimated fair values of financial instruments | ' | ' | ' | ' |
Cost | 6,838 | 9,466 | ' | ' |
Unrealized Gains | 4 | 9 | ' | ' |
Unrealized Losses | -11 | -1 | ' | ' |
Fair Value | 6,831 | 9,474 | ' | ' |
Long-term investments | Certificates of deposit | ' | ' | ' | ' |
Estimated fair values of financial instruments | ' | ' | ' | ' |
Cost | 1,200 | 1,440 | ' | ' |
Unrealized Losses | -2 | -4 | ' | ' |
Fair Value | $1,198 | $1,436 | ' | ' |
Fair_Value_of_Financial_Instru3
Fair Value of Financial Instruments (Details 2) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2013 |
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 | $32,720 | $32,183 |
Due in 1-2 years | 10,839 | 13,922 |
Total | 43,559 | 46,105 |
Investments by rolling maturity, Unrealized Gains | ' | ' |
Due within 1 year | 21 | 14 |
Due in 1-2 years | 4 | 9 |
Total | 25 | 23 |
Investments by rolling maturity, Unrealized Losses | ' | ' |
Due within 1 year | -2 | -5 |
Due in 1-2 years | -19 | -5 |
Total | -21 | -10 |
Investments by rolling maturity, Fair Value | ' | ' |
Due within 1 year | 32,739 | 32,192 |
Due in 1-2 years | 10,824 | 13,926 |
Total | 43,563 | 46,118 |
Short-term investments | ' | ' |
Estimated fair values of available-for-sale securities with unrealized losses | ' | ' |
Cost | 4,612 | 12,213 |
Unrealized Losses | -2 | -5 |
Fair Value | 4,610 | 12,208 |
Investments by rolling maturity, Unrealized Gains | ' | ' |
Total | 21 | 14 |
Investments by rolling maturity, Unrealized Losses | ' | ' |
Total | -2 | -5 |
Short-term investments | U.S. government debt securities | ' | ' |
Estimated fair values of available-for-sale securities with unrealized losses | ' | ' |
Cost | 2,012 | 5,289 |
Unrealized Losses | -1 | -1 |
Fair Value | 2,011 | 5,288 |
Investments by rolling maturity, Unrealized Gains | ' | ' |
Total | 7 | 11 |
Investments by rolling maturity, Unrealized Losses | ' | ' |
Total | -1 | -1 |
Short-term investments | Corporate notes | ' | ' |
Estimated fair values of available-for-sale securities with unrealized losses | ' | ' |
Cost | ' | 3,844 |
Unrealized Losses | ' | -2 |
Fair Value | ' | 3,842 |
Investments by rolling maturity, Unrealized Gains | ' | ' |
Total | 13 | 2 |
Investments by rolling maturity, Unrealized Losses | ' | ' |
Total | ' | -2 |
Short-term investments | Certificates of deposit | ' | ' |
Estimated fair values of available-for-sale securities with unrealized losses | ' | ' |
Cost | 2,600 | 3,080 |
Unrealized Losses | -1 | -2 |
Fair Value | 2,599 | 3,078 |
Investments by rolling maturity, Unrealized Gains | ' | ' |
Total | 1 | 1 |
Investments by rolling maturity, Unrealized Losses | ' | ' |
Total | -1 | -2 |
Long-term investments | ' | ' |
Estimated fair values of available-for-sale securities with unrealized losses | ' | ' |
Cost | 8,828 | 3,694 |
Unrealized Losses | -19 | -5 |
Fair Value | 8,809 | 3,689 |
Investments by rolling maturity, Unrealized Gains | ' | ' |
Total | 4 | 9 |
Investments by rolling maturity, Unrealized Losses | ' | ' |
Total | -19 | -5 |
Long-term investments | U.S. government debt securities | ' | ' |
Estimated fair values of available-for-sale securities with unrealized losses | ' | ' |
Cost | 2,801 | 1,253 |
Unrealized Losses | -6 | ' |
Fair Value | 2,795 | 1,253 |
Investments by rolling maturity, Unrealized Losses | ' | ' |
Total | -6 | ' |
Long-term investments | Corporate notes | ' | ' |
Estimated fair values of available-for-sale securities with unrealized losses | ' | ' |
Cost | 4,827 | 1,001 |
Unrealized Losses | -11 | -1 |
Fair Value | 4,816 | 1,000 |
Investments by rolling maturity, Unrealized Gains | ' | ' |
Total | 4 | 9 |
Investments by rolling maturity, Unrealized Losses | ' | ' |
Total | -11 | -1 |
Long-term investments | Certificates of deposit | ' | ' |
Estimated fair values of available-for-sale securities with unrealized losses | ' | ' |
Cost | 1,200 | 1,440 |
Unrealized Losses | -2 | -4 |
Fair Value | 1,198 | 1,436 |
Investments by rolling maturity, Unrealized Losses | ' | ' |
Total | ($2) | ($4) |
Fair_Value_of_Financial_Instru4
Fair Value of Financial Instruments (Details 3) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
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 | 1,167 | 3,012 |
Total assets | 45,230 | 49,130 |
Fair Value | Certificates of deposit | ' | ' |
Fair value hierarchy for its financial assets | ' | ' |
Available-for-sale securities | 5,417 | 6,429 |
Fair Value | Corporate notes | ' | ' |
Fair value hierarchy for its financial assets | ' | ' |
Available-for-sale securities | 19,902 | 16,719 |
Fair Value | U.S. government debt securities | ' | ' |
Fair value hierarchy for its financial assets | ' | ' |
Available-for-sale securities | 18,744 | 22,970 |
Level 1 | ' | ' |
Fair value hierarchy for its financial assets | ' | ' |
Money market funds | 1,167 | 3,012 |
Total assets | 1,167 | 3,012 |
Level 2 | ' | ' |
Fair value hierarchy for its financial assets | ' | ' |
Total assets | 44,063 | 46,118 |
Level 2 | Certificates of deposit | ' | ' |
Fair value hierarchy for its financial assets | ' | ' |
Available-for-sale securities | 5,417 | 6,429 |
Level 2 | Corporate notes | ' | ' |
Fair value hierarchy for its financial assets | ' | ' |
Available-for-sale securities | 19,902 | 16,719 |
Level 2 | U.S. government debt securities | ' | ' |
Fair value hierarchy for its financial assets | ' | ' |
Available-for-sale securities | $18,744 | $22,970 |
Business_Segments_and_Signific2
Business Segments and Significant Customers (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Item | ||
Business Segments and Significant Customers | ' | ' |
Number of business segments | 1 | ' |
Number of measurements of profitability | 1 | ' |
Business Segments | ' | ' |
Total net revenue | $1,332 | $1,335 |
Japan | ' | ' |
Business Segments | ' | ' |
Total net revenue | 623 | 534 |
Taiwan | ' | ' |
Business Segments | ' | ' |
Total net revenue | 337 | 448 |
North America | ' | ' |
Business Segments | ' | ' |
Total net revenue | 350 | 348 |
Rest of Asia | ' | ' |
Business Segments | ' | ' |
Total net revenue | 11 | 5 |
Europe | ' | ' |
Business Segments | ' | ' |
Total net revenue | $11 | ' |
Business_Segments_and_Signific3
Business Segments and Significant Customers (Details 2) | 3 Months Ended | 12 Months Ended | |||||||
Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2013 | Mar. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | |
Total revenues | Total revenues | Total revenues | Total revenues | Total revenues | Total revenues | Total revenues | Net accounts receivable | Net accounts receivable | |
Customer concentration risk | Customer concentration risk | Customer concentration risk | Customer concentration risk | Customer concentration risk | Customer concentration risk | Customer concentration risk | Credit concentration | Credit concentration | |
Customer A | Customer B | Customer B | Customer C | Customer C | Customer D | Customer E | Two customers | Two customers | |
Item | Item | ||||||||
Significant Customers | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of concentration risk | 38.00% | 24.00% | 33.00% | 20.00% | 13.00% | 14.00% | 11.00% | 93.00% | 96.00% |
Number of customers | ' | ' | ' | ' | ' | ' | ' | 2 | 2 |
StockBased_Compensation_Detail
Stock-Based Compensation (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Stock-Based Compensation | ' | ' |
Stock-based compensation expense | $1,500,000 | $900,000 |
Options | ' | ' |
Stock-Based Compensation | ' | ' |
Unamortized compensation cost, net of expected forfeitures | 5,100,000 | ' |
Weighted average expected period over which the expense is to be recognized | '2 years 4 months 17 days | ' |
Tax benefits associated with exercise of stock options | 0 | 0 |
RSU's | ' | ' |
Stock-Based Compensation | ' | ' |
Weighted average expected period over which the expense is to be recognized | '2 years 11 months 12 days | ' |
Unamortized compensation cost for awards other than options, net of expected forfeitures | $1,500,000 | ' |
RSU's | Minimum | ' | ' |
Stock-Based Compensation | ' | ' |
Stock-based compensation expense, recognition period | '3 years | ' |
RSU's | Maximum | ' | ' |
Stock-Based Compensation | ' | ' |
Stock-based compensation expense, recognition period | '5 years | ' |
Inducement grant options | ' | ' |
Number of Shares | ' | ' |
Balance at the beginning of the period (in shares) | 3,178,000 | ' |
Options granted (in shares) | 118,000 | ' |
Options cancelled (in shares) | -40,000 | ' |
Options exercised (in shares) | -32,000 | ' |
Balance at the end of the period (in shares) | 3,224,000 | ' |
Weighted Average Exercise Prices | ' | ' |
Balance at the beginning of the period (in dollars per share) | $4.42 | ' |
Options granted (in dollars per share) | $5.22 | ' |
Options cancelled (in dollars per share) | $4.47 | ' |
Options exercised (in dollars per share) | $3.88 | ' |
Balance at the end of the period (in dollars per share) | $4.46 | ' |
Plans | Options | ' | ' |
Available for Grant | ' | ' |
Balance at the beginning of the period (in shares) | 422,000 | ' |
Additional shares authorized under the 2010 Plan | 500,000 | ' |
Options granted (in shares) | -49,000 | ' |
Options cancelled (in shares) | 60,000 | ' |
Options expired (in shares) | -60,000 | ' |
Balance at the end of the period (in shares) | 374,000 | ' |
Number of Shares | ' | ' |
Balance at the beginning of the period (in shares) | 6,727,000 | ' |
Options granted (in shares) | 49,000 | ' |
Options cancelled (in shares) | -60,000 | ' |
Options exercised (in shares) | -300,000 | ' |
Balance at the end of the period (in shares) | 6,416,000 | ' |
Weighted Average Exercise Prices | ' | ' |
Balance at the beginning of the period (in dollars per share) | $3.86 | ' |
Options granted (in dollars per share) | $4.69 | ' |
Options cancelled (in dollars per share) | $3.42 | ' |
Options exercised (in dollars per share) | $3.58 | ' |
Options expired (in dollars per share) | $3.42 | ' |
Balance at the end of the period (in dollars per share) | $3.89 | ' |
Plans | RSU's | ' | ' |
Available for Grant | ' | ' |
Restricted stock units granted (in shares) | -499,000 | ' |
StockBased_Compensation_Detail1
Stock-Based Compensation (Details 2) (Plans, RSU's, USD $) | 3 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 |
Plans | RSU's | ' |
Number of Shares | ' |
Non-vested shares at the beginning of the period | 27 |
Granted (in shares) | 499 |
Vested (in shares) | -122 |
Non-vested shares at the end of the period | 404 |
Weighted Average Grant-Date Fair Value | ' |
Non-vested shares at the beginning of the period (in dollars per share) | $4.46 |
Granted (in dollars per share) | $4.62 |
Vested (in dollars per share) | $4.62 |
Non-vested shares at the end of the period (in dollars per share) | $4.61 |
StockBased_Compensation_Detail2
Stock-Based Compensation (Details 3) (USD $) | 3 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 |
Options Outstanding | ' |
Number Outstanding (in shares) | 9,640 |
Weighted Average Remaining Contractual Life | '3 years 8 months 26 days |
Weighted Average Exercise Price (in dollars per share) | $4.08 |
Aggregate Intrinsic value (in dollars) | $7,329 |
Options Exercisable | ' |
Number Exercisable (in shares) | 6,285 |
Weighted Average Remaining Contractual Life | '2 years 8 months 5 days |
Weighted Average Exercise Price (in dollars per share) | $4.13 |
Aggregate Intrinsic value (in dollars) | 5,094 |
$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) | 2,735 |
Weighted Average Remaining Contractual Life | '3 years 14 days |
Weighted Average Exercise Price (in dollars per share) | $2.60 |
Aggregate Intrinsic value (in dollars) | 5,313 |
Options Exercisable | ' |
Number Exercisable (in shares) | 1,789 |
Weighted Average Remaining Contractual Life | '2 years 5 months 12 days |
Weighted Average Exercise Price (in dollars per share) | $2.33 |
Aggregate Intrinsic value (in dollars) | 3,948 |
$3.24 - $4.25 | ' |
Exercise price range | ' |
Low end of the range (in dollars per share) | $3.24 |
High end of the range (in dollars per share) | $4.25 |
Options Outstanding | ' |
Number Outstanding (in shares) | 2,565 |
Weighted Average Remaining Contractual Life | '4 years 1 month 17 days |
Weighted Average Exercise Price (in dollars per share) | $3.81 |
Aggregate Intrinsic value (in dollars) | 1,866 |
Options Exercisable | ' |
Number Exercisable (in shares) | 1,508 |
Weighted Average Remaining Contractual Life | '4 years |
Weighted Average Exercise Price (in dollars per share) | $3.83 |
Aggregate Intrinsic value (in dollars) | 1,074 |
$4.26 - $5.61 | ' |
Exercise price range | ' |
Low end of the range (in dollars per share) | $4.26 |
High end of the range (in dollars per share) | $5.61 |
Options Outstanding | ' |
Number Outstanding (in shares) | 3,400 |
Weighted Average Remaining Contractual Life | '4 years 2 months 26 days |
Weighted Average Exercise Price (in dollars per share) | $4.94 |
Aggregate Intrinsic value (in dollars) | 150 |
Options Exercisable | ' |
Number Exercisable (in shares) | 2,269 |
Weighted Average Remaining Contractual Life | '2 years |
Weighted Average Exercise Price (in dollars per share) | $5.15 |
Aggregate Intrinsic value (in dollars) | $72 |
$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) | 940 |
Weighted Average Remaining Contractual Life | '2 years 10 months 13 days |
Weighted Average Exercise Price (in dollars per share) | $5.98 |
Options Exercisable | ' |
Number Exercisable (in shares) | 719 |
Weighted Average Remaining Contractual Life | '2 years 7 months 2 days |
Weighted Average Exercise Price (in dollars per share) | $5.98 |
StockBased_Compensation_Detail3
Stock-Based Compensation (Details 4) (USD $) | 3 Months Ended | 0 Months Ended | 1 Months Ended | ||||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Feb. 28, 2013 | Jun. 30, 2010 | Mar. 31, 2014 | |
Options | Options | Options | Options | ESPP | ESPP | ESPP | |
Minimum | Maximum | Item | |||||
Stock-Based Compensation | ' | ' | ' | ' | ' | ' | ' |
Outstanding options fully vested and expected to vest (in shares) | 9,300,000 | ' | ' | ' | ' | ' | ' |
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) | $4.08 | ' | ' | ' | ' | ' | ' |
Aggregate intrinsic value of options fully vested and expected to vest (in dollars) | $7,100,000 | ' | ' | ' | ' | ' | ' |
Fair value of shares vested (in dollars) | 800,000 | 800,000 | ' | ' | ' | ' | ' |
Total intrinsic value of awards exercised (in dollars) | 500,000 | 400,000 | ' | ' | ' | ' | ' |
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) | 1.50% | ' | ' | ' | ' | ' | ' |
Risk-free interest rate, maximum (as a percent) | 1.70% | ' | ' | ' | ' | ' | ' |
Risk-free interest rate | ' | 0.60% | ' | ' | ' | ' | ' |
Volatility, minimum (as a percent) | 56.90% | 58.50% | ' | ' | ' | ' | ' |
Volatility, maximum (as a percent) | 57.50% | 59.10% | ' | ' | ' | ' | ' |
Expected life | ' | '4 years | '4 years | '5 years | ' | ' | ' |
Dividend yield (as a percent) | 0.00% | 0.00% | ' | ' | ' | ' | ' |
Employee Stock Purchase Plan | ' | ' | ' | ' | ' | ' | ' |
Number of shares reserved for issuance | ' | ' | ' | ' | ' | 2,000,000 | ' |
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 | ' | ' | ' | ' | 140,000 | ' | ' |
Aggregate purchase price (in dollars) | ' | ' | ' | ' | $434,000 | ' | ' |
Shares authorized and unissued | ' | ' | ' | ' | ' | ' | 920,000 |
Related_Party_Transactions_Det
Related Party Transactions (Details) (Credo, USD $) | 1 Months Ended | 3 Months Ended | 26 Months Ended |
Feb. 29, 2012 | Mar. 31, 2014 | Mar. 31, 2014 | |
officer | officer | ||
Credo | ' | ' | ' |
Related party transactions | ' | ' | ' |
Number of executive officers who loaned a portion of seed funding to related parties | ' | 2 | 2 |
Amount of loan provided by executive officers to related party | $250,000 | ' | ' |
Payment made to related party | ' | ' | 2,800,000 |
Initial amount of gross profits which will be retained by the entity | ' | $2,500,000 | ' |
Inventory_Details
Inventory (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Inventory | ' | ' |
Work-in-process | $845 | $542 |
Finished goods | 79 | 25 |
Inventory | $924 | $567 |