Peraso (PRSO) 10-Q 6 Nov 15 2015 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2015	Oct. 30, 2015
Document and Entity Information
Entity Registrant Name	MoSys, Inc.
Entity Central Index Key	890,394
Document Type	10-Q
Document Period End Date	Sep. 30, 2015
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		65,495,715
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q3

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Current assets
Cash and cash equivalents	$ 1,585	$ 3,110
Short-term investments	21,597	20,439
Accounts receivable, net	426	177
Inventories, net	1,264	881
Prepaid expenses and other	1,369	887
Total current assets	26,241	25,494
Long-term investments	2,269	2,245
Property and equipment, net	860	854
Goodwill	23,134	23,134
Other assets	756	899
Total assets	53,260	52,626
Current liabilities
Accounts payable	378	495
Accrued expenses and other	2,057	2,350
Total current liabilities	2,435	2,845
Long-term liabilities	$ 249	$ 241
Commitments and contingencies (Note 4)
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; 65,496 shares and 49,793 shares issued and outstanding at September 30, 2015 and December 31, 2014, respectively	$ 655	$ 498
Additional paid-in capital	225,389	199,541
Accumulated other comprehensive loss	(3)	(10)
Accumulated deficit	(175,465)	(150,489)
Total stockholders' equity	50,576	49,540
Total liabilities and stockholders' equity	$ 53,260	$ 52,626

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Thousands	Sep. 30, 2015	Dec. 31, 2014
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	65,496	49,793
Common stock, shares outstanding	65,496	49,793

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Net revenue
Product	$ 565	$ 437	$ 1,288	$ 1,993
Royalty and other	457	716	1,504	2,241
Total net revenue	1,022	1,153	2,792	4,234
Cost of net revenue	793	447	1,593	2,046
Gross profit	229	706	1,199	2,188
Operating expenses
Research and development	8,793	7,507	21,475	20,993
Selling, general and administrative	1,547	1,689	4,711	4,976
Total operating expenses	10,340	9,196	26,186	25,969
Loss from operations	(10,111)	(8,490)	(24,987)	(23,781)
Other income, net	19	30	71	115
Loss before income taxes	(10,092)	(8,460)	(24,916)	(23,666)
Income tax provision	13	23	60	65
Net loss	(10,105)	(8,483)	(24,976)	(23,731)
Other comprehensive income (loss), net of tax:
Net unrealized gains (losses) on available-for-sale securities	6	(17)	7	(20)
Comprehensive loss	$ (10,099)	$ (8,500)	$ (24,969)	$ (23,751)
Net loss per share
Basic and diluted (in dollars per share)	$ (0.15)	$ (0.17)	$ (0.41)	$ (0.48)
Shares used in computing net loss per share
Basic and diluted (in shares)	65,317	49,634	61,486	49,441

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Cash flows from operating activities:
Net loss	$ (24,976)	$ (23,731)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	466	313
Stock-based compensation	2,864	3,596
Amortization of intangible assets	293	750
Changes in assets and liabilities:
Accounts receivable	(249)	(27)
Inventories	(383)	(190)
Prepaid expenses and other assets	(624)	357
Accounts payable	(238)	(118)
Accrued expenses and other liabilities	(275)	339
Net cash used in operating activities	(23,122)	(18,711)
Cash flows from investing activities:
Purchases of property and equipment	(369)	(289)
Proceeds from sales and maturities of marketable securities	34,172	32,985
Purchases of marketable securities	(35,347)	(15,859)
Net cash (used in) provided by investing activities	(1,544)	16,837
Cash flows from financing activities:
Proceeds from the sale of common stock, net of issuance costs	21,368
Proceeds from issuance of common stock	1,773	2,195
Net cash provided by financing activities	23,141	2,195
Net increase (decrease) in cash and cash equivalents	(1,525)	321
Cash and cash equivalents at beginning of period	3,110	4,364
Cash and cash equivalents at end of period	$ 1,585	$ 4,685

The Company and Summary of Sign

The Company and Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2015
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. The LineSpeed IC product line is comprised of non-memory based, high-speed SerDes devices with gearbox or retimer functionality that convert lanes of data received on line cards or by optical modules into different configurations and/or ensure signal integrity. Both product lines are being marketed to networking and communications 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, 2014 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 and nine months ended September 30, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015 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. 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. Reclassification Certain prior year amounts have been reclassified to conform to the current year presentation. Previously reported intangible asset amounts have been included in the other assets line item of the condensed consolidated balance sheets. 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. Cash Equivalents and Investments The Company has invested its excess cash in money market accounts, certificates of deposit, commercial paper, corporate debt, government-sponsored enterprise bonds and municipal bonds 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 loss. 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 condensed 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: 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 uncollectability. 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 either September 30, 2015 or December 31, 2014. Inventory Inventories are valued at the lower of cost or market. Charges for obsolete and slow moving inventories are recorded based upon an analysis of specific identification of obsolete inventory items and quantification of slow moving inventory items. For slow moving inventory, this analysis compares the quantity of inventory on hand to the projected sales of such inventory items. As a result of this analysis, we record an estimated charge for slow moving inventory in the form of an inventory reserve that increases cost of goods sold and decreases gross profit. When the obsolete or slow moving inventory subsequently experiences increased sales and inventory that was previously impaired is sold, cost of goods sold is decreased and gross profit is increased. Charges for the three and nine months ended September 30, 2015 were $0.2 million. 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 collectability is reasonably assured. Evidence of an arrangement generally consists of signed agreements or customer purchase orders. 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 may record 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 generally 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 account 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 deferred margin recorded on sales to distributors where the product has not sold through to end customers is included in the accrued expenses and other line item in the condensed consolidated balance sheets. Royalty The Company’s licensing contracts typically also provide for royalties based on the licensees’ 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. 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. There was no licensing revenue for the three or nine months ended September 30, 2015. Licensing revenue was less than $0.1 million for each of the three and nine months ended September 30, 2014. 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 2015, and concluded no factors indicated impairment of goodwill. As of September 30, 2015, 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. 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 September 30, 2015 and 2014, stock awards to purchase approximately 9,322,000 and 10,190,000 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 and nine months ended September 30, 2015 and 2014 were not considered significant.

Fair Value of Financial Instrum

Fair Value of Financial Instruments	9 Months Ended
	Sep. 30, 2015
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 (in thousands): September 30, 2015 Cost Unrealized Gains Unrealized Losses Fair Value Cash and cash equivalents $ $ — $ — $ Short-term investments: U.S. government-sponsored enterprise bonds $ $ $ ) $ Corporate notes — ) Municipal bonds — — Certificates of deposit — — Commercial paper — — — — Total short-term investments $ $ $ ) $ Long-term investments: Corporate notes — ) Total long-term investments $ $ — $ ) $ December 31, 2014 Cost Unrealized Gains Unrealized Losses Fair Value Cash and cash equivalents $ $ — $ — $ Short-term investments: U.S. government-sponsored enterprise bonds $ $ — $ — $ Municipal bonds — — Corporate notes ) Certificates of deposit — Total short-term investments $ $ $ ) $ Long-term investments: U.S. government-sponsored enterprise bonds $ $ — $ ) $ Corporate notes — ) Total long-term investments $ $ — $ ) $ The estimated fair values of available-for-sale securities with unrealized losses were (in thousands): September 30, 2015 Cost Unrealized Losses Fair Value Short-term investments: U.S. government-sponsored enterprise bonds $ $ ) $ Corporate notes ) Total short-term investments $ $ ) $ Long-term investments: Corporate notes ) Total long-term investments $ $ ) $ December 31, 2014 Cost Unrealized Losses Fair Value Short-term investments: Corporate notes $ $ ) $ Total short-term investments $ $ ) $ Long-term investments: U.S. government-sponsored enterprise bonds $ $ ) $ Corporate notes ) Total long-term investments $ $ ) $ As of September 30, 2015 and December 31, 2014, all of the available-for-sale securities with unrealized losses had been in a loss position for less than 12 months. Cost and fair value of investments based on two maturity groups were (in thousands): September 30, 2015 Cost Unrealized Gains Unrealized Losses Fair Value Due within 1 year $ $ $ ) $ Due in 1-2 years — ) Total $ $ $ ) $ December 31, 2014 Cost Unrealized Gains Unrealized Losses Fair Value Due within 1 year $ $ $ ) $ Due in 1-2 years — ) Total $ $ $ ) $ The following table represents the Company’s fair value hierarchy for its financial assets (cash equivalents and investments) as of September 30, 2015 and December 31, 2014 (in thousands): September 30, 2015 Fair Value Level 1 Level 2 Level 3 Money market funds $ $ $ — $ — U.S. government-sponsored enterprise bonds — — Corporate notes — — Municipal bonds — — Certificates of deposit — — Commercial paper — — Total assets $ $ $ $ — December 31, 2014 Fair Value Level 1 Level 2 Level 3 Money market funds $ $ $ — $ — U.S. government-sponsored enterprise bonds — — Municipal bonds — — Corporate notes — — Certificates of deposit — — Total assets $ $ $ $ — There were no transfers in or out of Level 1 and Level 2 securities during the three or nine months ended September 30, 2015 and 2014.

Balance Sheet Detail

Balance Sheet Detail	9 Months Ended
	Sep. 30, 2015
Balance Sheet Detail
Balance Sheet Detail	Note 3. Balance Sheet Detail September 30, 2015 December 31, 2014 (in thousands) Inventories: Work-in-process $ $ Finished goods $ $ Identifiable intangible assets relating to business combinations and a patent license were (dollar amounts in thousands): September 30, 2015 Life (years) Gross Carrying Amount Accumulated Amortization Net Carrying Value Developed technology 3-5 $ $ $ — Patent license 7 Total $ $ $ December 31, 2014 Life (years) Gross Carrying Amount Accumulated Amortization Net Carrying Value Developed technology 3-5 $ $ $ Patent license 7 Total $ $ $ 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. The net carrying value of identifiable assets has been included in the other assets line item in the condensed consolidated balance sheets. 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 less than $0.1 million for the remainder of 2015 and $0.1 million annually for 2016 through 2018.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2015
Commitments and Contingencies
Commitments and Contingencies	Note 4. 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 also 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 or nine months ended September 30, 2015 or 2014 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 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, Concentratio

Business Segments, Concentration of Credit Risk and Significant Customers	9 Months Ended
	Sep. 30, 2015
Business Segments, Concentration of Credit Risk and Significant Customers
Business Segments, Concentration of Credit Risk and Significant Customers	Note 5. Business Segments, Concentration of Credit Risk and Significant Customers The Company operates in one business segment and uses one measurement of profitability for its business. Net revenue attributed to the United States and to all foreign countries is based on the geographical location of the customer. Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash, cash equivalents, short-term and long-term investments and accounts receivable. Cash, cash equivalents and short-term and long term investments are deposited with high credit-quality institutions. The Company recognized revenue from licensing of its technologies and shipment of ICs to customers by geographical location as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 United States $ $ $ $ Taiwan Japan Rest of world Total net revenue $ $ $ $ Customers who accounted for at least 10% of total net revenue were: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Customer A % * % * Customer B % % % % Customer C % % % % Customer D * % % % *Represents less than 10% One customer accounted for 76% of net accounts receivable at September 30, 2015. Three customers accounted for 97% of net accounts receivable at December 31, 2014.

Income Tax Provision

Income Tax Provision	9 Months Ended
	Sep. 30, 2015
Income Tax Provision
Income Tax Provision	Note 6. 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. 2004 through 2014 tax years generally remain subject to examination by federal, state and foreign tax authorities. As of September 30, 2015, the Company has not recorded any liability for unrecognized tax benefits related to uncertain tax positions.

Stock-Based Compensation

Stock-Based Compensation	9 Months Ended
	Sep. 30, 2015
Stock-Based Compensation
Stock-Based Compensation	Note 7. Stock-Based Compensation 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 September 30, 2015 was $2.9 million related to stock options and is expected to be recognized as expense over a weighted average period of approximately 2.2 years. The expense related to restricted stock units (RSUs) 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 September 30, 2015 was $0.7 million related to RSUs and is expected to be recognized as expense over a weighted average period of approximately 1.6 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 and nine months ended September 30, 2015 and 2014, there were no such tax benefits associated with the exercise of stock options due to the Company’s loss positions. Valuation Assumptions The fair value of the Company’s share-based payment options for the three and nine months ended September 30, 2015 and 2014 was estimated on the grant dates using the Black-Scholes valuation option-pricing model with the following assumptions: Three Months Ended September 30, Nine Months Ended September 30, Employee stock options: 2015 2014 2015 2014 Risk-free interest rate 1.4% 1.3% - 1.7% 0.6% – 1.7% 1.3% – 1.7% Volatility 59.3% 53.7% – 55.6% 55.7% – 59.3% 53.7% – 57.5% Expected life (years) 4.0 4.0-5.0 4.0-5.0 4.0-5.0 Dividend yield 0% 0% 0% 0% The risk-free interest rate was derived from the Daily Treasury Yield Curve Rates as published by the U.S. Department of the Treasury as of the grant date for terms equal to the expected terms of the options. The expected volatility was based on the historical volatility of the Company’s stock price over the expected term of the options. The expected term of options granted was derived from historical data based on employee exercises and post-vesting employment termination behavior. A dividend yield of zero is applied because the Company has never paid dividends and has no intention to pay dividends in the near future. The stock-based compensation expense recorded is adjusted based on estimated forfeiture rates. An annualized forfeiture rate has been used as a best estimate of future forfeitures based on the Company’s historical forfeiture experience. The stock-based compensation expense will be adjusted in later periods if the actual forfeiture rate is different from the estimate. Common Stock Options and Restricted Stock A summary of the option and RSU activity under the Company’s Amended and Restated 2000 Stock Option and Equity Incentive Plan (Amended 2000 Plan) and Amended and Restated 2010 Equity Incentive Plan (Amended 2010 Plan), referred to collectively as the “Plans,” is presented below (in thousands, except exercise price): Options Outstanding Available for Grant Number of Shares Weighted Average Exercise Prices Balance at December 31, 2014 $ Additional shares authorized under the Amended 2010 Plan — — Restricted stock units cancelled — — Options granted ) $ Options cancelled ) $ Options exercised — ) $ Options expired ) — $ Balance at March 31, 2015 $ Additional shares authorized under the Amended 2010 Plan — — — Restricted stock units cancelled — — Options granted ) $ Options cancelled ) $ Options exercised — ) $ Options expired ) — $ Balance at June 30, 2015 $ Additional shares authorized under the Amended 2010 Plan — — — Restricted stock units cancelled — — Options granted ) $ Options cancelled ) $ Options exercised — ) $ Options expired ) — $ Balance at September 30, 2015 $ 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 Shares Weighted Average Exercise Prices Balance at December 31, 2014 and March 31, 2015 $ Granted — — Cancelled ) $ Exercised ) $ Expired ) $ Balance at June 30, 2015 $ Granted — — Cancelled ) $ Exercised ) $ Expired — $ — Balance at September 30, 2015 $ A summary of RSU activity under the Plans is presented below (in thousands, except for fair value): Number of Shares Weighted Average Grant-Date Fair Value Non-vested shares at December 31, 2014 $ Vested ) $ Cancelled ) $ Non-vested shares at March 31, 2015 $ Vested ) $ Cancelled ) $ Non-vested shares at June 30, 2015 $ Vested ) $ Cancelled ) $ Non-vested shares at September 30, 2015 $ The total intrinsic value of the restricted stock units outstanding as of September 30, 2015 was $0.4 million. The following table summarizes significant ranges of outstanding and exercisable options as of September 30, 2015 (in thousands, except contractual life and exercise price): Options Outstanding Options Exercisable Range of Exercise Price Number Outstanding Weighted Average Remaining Contractual Life (in Years) Weighted Average Exercise Price Number Exercisable Weighted Average Exercise Price Aggregate Intrinsic Value $1.68 - $2.24 $ $ $2.25 - $3.15 $ $ $3.16 - $3.80 $ $ $3.81 - $4.34 $ $ $4.35 - $4.69 $ $ $4.70 - $6.11 $ $ $1.68 - $6.11 $ $ $ — Vested and expected to vest $ $ — Exercisable $ $ — The aggregate intrinsic value of employee stock options exercised during the nine months ended September 30, 2015 and 2014 was approximately $0.3 million and $0.7 million, respectively. 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 were initially reserved for issuance under the ESPP in 2010. On September 1, 2010, the Company commenced the first offering period under the ESPP. On April 16, 2015, the board of directors approved an amendment to the ESPP to increase the number of shares reserved for issuance by 2,000,000 shares, subject to stockholder approval. At the Annual Meeting of Stockholders held on May 26, 2015, the Company’s stockholders approved the increase. 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 February 28, 2015, approximately 339,000 shares of common stock were issued at an aggregate purchase price of $518,000 under the ESPP. On August 31, 2015, approximately 268,000 shares of common stock were issued at an aggregate purchase price of $339,000 under the ESPP. As of September 30, 2015, there were approximately 2.2 million shares authorized and unissued under the ESPP.

Stockholders' Equity

Stockholders' Equity	9 Months Ended
	Sep. 30, 2015
Stockholders' Equity
Stockholders' Equity	Note 8. Stockholders’ Equity On March 4, 2015, the Company sold 14,375,000 shares of common stock in an equity offering and raised approximately $21.4 million, net of transaction expenses. Two of the Company’s executive officers between them purchased a total of 406,250 shares at the public offering price.

Related Party Transactions

Related Party Transactions	9 Months Ended
	Sep. 30, 2015
Related Party Transactions
Related Party Transactions	Note 9. 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 strategic development and marketing agreement, as amended, 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. As of September 30, 2015, the Company has paid Credo $4.7 million for achievement of 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. Currently, under the strategic development and marketing agreement, the Company is entitled to a remaining reimbursement amount of $3.6 million of development costs based on payments made to Credo to date. This amount is subject to increase as additional payments are made to Credo. The reimbursement will be funded by the gross profits earned by the Company from the sale of the products, with the initial gross profits being primarily applied to reimbursing the Company for these development payments and a portion paid to Credo. Once the full amount has been reimbursed, the gross profits will be shared equally by the Company and Credo.

The Company and Summary of Si15

The Company and Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2015
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.
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.
Reclassification	Reclassification Certain prior year amounts have been reclassified to conform to the current year presentation. Previously reported intangible asset amounts have been included in the other assets line item of the condensed consolidated balance sheets. 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.
Cash Equivalents and Investments	Cash Equivalents and Investments The Company has invested its excess cash in money market accounts, certificates of deposit, commercial paper, corporate debt, government-sponsored enterprise bonds and municipal bonds 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 loss. 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 condensed 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: 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 uncollectability. 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 either September 30, 2015 or December 31, 2014.
Inventory	Inventory Inventories are valued at the lower of cost or market. Charges for obsolete and slow moving inventories are recorded based upon an analysis of specific identification of obsolete inventory items and quantification of slow moving inventory items. For slow moving inventory, this analysis compares the quantity of inventory on hand to the projected sales of such inventory items. As a result of this analysis, we record an estimated charge for slow moving inventory in the form of an inventory reserve that increases cost of goods sold and decreases gross profit. When the obsolete or slow moving inventory subsequently experiences increased sales and inventory that was previously impaired is sold, cost of goods sold is decreased and gross profit is increased. Charges for the three and nine months ended September 30, 2015 were $0.2 million.
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 collectability is reasonably assured. Evidence of an arrangement generally consists of signed agreements or customer purchase orders. 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 may record 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 generally 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 account 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 deferred margin recorded on sales to distributors where the product has not sold through to end customers is included in the accrued expenses and other line item in the condensed consolidated balance sheets. Royalty The Company’s licensing contracts typically also provide for royalties based on the licensees’ 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. 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. There was no licensing revenue for the three or nine months ended September 30, 2015. Licensing revenue was less than $0.1 million for each of the three and nine months ended September 30, 2014.
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 2015, and concluded no factors indicated impairment of goodwill. As of September 30, 2015, 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.
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 September 30, 2015 and 2014, stock awards to purchase approximately 9,322,000 and 10,190,000 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 and nine months ended September 30, 2015 and 2014 were not considered significant.

Fair Value of Financial Instr16

Fair Value of Financial Instruments (Tables)	9 Months Ended
	Sep. 30, 2015
Fair Value of Financial Instruments
Schedule of estimated fair values of financial instruments outstanding	The estimated fair values of financial instruments outstanding were (in thousands): September 30, 2015 Cost Unrealized Gains Unrealized Losses Fair Value Cash and cash equivalents $ $ — $ — $ Short-term investments: U.S. government-sponsored enterprise bonds $ $ $ ) $ Corporate notes — ) Municipal bonds — — Certificates of deposit — — Commercial paper — — — — Total short-term investments $ $ $ ) $ Long-term investments: Corporate notes — ) Total long-term investments $ $ — $ ) $ December 31, 2014 Cost Unrealized Gains Unrealized Losses Fair Value Cash and cash equivalents $ $ — $ — $ Short-term investments: U.S. government-sponsored enterprise bonds $ $ — $ — $ Municipal bonds — — Corporate notes ) Certificates of deposit — Total short-term investments $ $ $ ) $ Long-term investments: U.S. government-sponsored enterprise bonds $ $ — $ ) $ Corporate notes — ) Total long-term investments $ $ — $ ) $
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 (in thousands): September 30, 2015 Cost Unrealized Losses Fair Value Short-term investments: U.S. government-sponsored enterprise bonds $ $ ) $ Corporate notes ) Total short-term investments $ $ ) $ Long-term investments: Corporate notes ) Total long-term investments $ $ ) $ December 31, 2014 Cost Unrealized Losses Fair Value Short-term investments: Corporate notes $ $ ) $ Total short-term investments $ $ ) $ Long-term investments: U.S. government-sponsored enterprise bonds $ $ ) $ Corporate notes ) Total long-term investments $ $ ) $
Schedule of cost and fair value of investments based on maturity groups	Cost and fair value of investments based on two maturity groups were (in thousands): September 30, 2015 Cost Unrealized Gains Unrealized Losses Fair Value Due within 1 year $ $ $ ) $ Due in 1-2 years — ) Total $ $ $ ) $ December 31, 2014 Cost Unrealized Gains Unrealized Losses Fair Value Due within 1 year $ $ $ ) $ Due in 1-2 years — ) Total $ $ $ ) $
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 September 30, 2015 and December 31, 2014 (in thousands): September 30, 2015 Fair Value Level 1 Level 2 Level 3 Money market funds $ $ $ — $ — U.S. government-sponsored enterprise bonds — — Corporate notes — — Municipal bonds — — Certificates of deposit — — Commercial paper — — Total assets $ $ $ $ — December 31, 2014 Fair Value Level 1 Level 2 Level 3 Money market funds $ $ $ — $ — U.S. government-sponsored enterprise bonds — — Municipal bonds — — Corporate notes — — Certificates of deposit — — Total assets $ $ $ $ —

Balance Sheet Detail (Tables)

Balance Sheet Detail (Tables)	9 Months Ended
	Sep. 30, 2015
Balance Sheet Detail
Schedule of inventory	September 30, 2015 December 31, 2014 (in thousands) Inventories: Work-in-process $ $ Finished goods $ $
Schedule of identifiable intangible assets relating to business combinations and a patent license	Identifiable intangible assets relating to business combinations and a patent license were (dollar amounts in thousands): September 30, 2015 Life (years) Gross Carrying Amount Accumulated Amortization Net Carrying Value Developed technology 3-5 $ $ $ — Patent license 7 Total $ $ $ December 31, 2014 Life (years) Gross Carrying Amount Accumulated Amortization Net Carrying Value Developed technology 3-5 $ $ $ Patent license 7 Total $ $ $

Business Segments, Concentrat18

Business Segments, Concentration of Credit Risk and Significant Customers (Tables)	9 Months Ended
	Sep. 30, 2015
Business Segments, Concentration of Credit Risk and Significant Customers
Schedule of revenue from licensing technologies and shipment of ICs to customers by geographical location:	The Company recognized revenue from licensing of its technologies and shipment of ICs to customers by geographical location as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 United States $ $ $ $ Taiwan Japan Rest of world Total net revenue $ $ $ $
Schedule of customers who accounted for at least 10% of total net revenue	Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Customer A % * % * Customer B % % % % Customer C % % % % Customer D * % % % *Represents less than 10%

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	9 Months Ended
	Sep. 30, 2015
Stock-Based Compensation
Schedule of assumptions used in estimation of fair value of the share-based payment awards on the grant date	Three Months Ended September 30, Nine Months Ended September 30, Employee stock options: 2015 2014 2015 2014 Risk-free interest rate 1.4% 1.3% - 1.7% 0.6% – 1.7% 1.3% – 1.7% Volatility 59.3% 53.7% – 55.6% 55.7% – 59.3% 53.7% – 57.5% Expected life (years) 4.0 4.0-5.0 4.0-5.0 4.0-5.0 Dividend yield 0% 0% 0% 0%
Summary of option and RSU activity under Amended and Restated 2000 Stock Option and Equity Incentive Plan and Amended and Restated 2010 Equity Incentive Plan	A summary of the option and RSU activity under the Company’s Amended and Restated 2000 Stock Option and Equity Incentive Plan (Amended 2000 Plan) and Amended and Restated 2010 Equity Incentive Plan (Amended 2010 Plan), referred to collectively as the “Plans,” is presented below (in thousands, except exercise price): Options Outstanding Available for Grant Number of Shares Weighted Average Exercise Prices Balance at December 31, 2014 $ Additional shares authorized under the Amended 2010 Plan — — Restricted stock units cancelled — — Options granted ) $ Options cancelled ) $ Options exercised — ) $ Options expired ) — $ Balance at March 31, 2015 $ Additional shares authorized under the Amended 2010 Plan — — — Restricted stock units cancelled — — Options granted ) $ Options cancelled ) $ Options exercised — ) $ Options expired ) — $ Balance at June 30, 2015 $ Additional shares authorized under the Amended 2010 Plan — — — Restricted stock units cancelled — — Options granted ) $ Options cancelled ) $ Options exercised — ) $ Options expired ) — $ Balance at September 30, 2015 $
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 Shares Weighted Average Exercise Prices Balance at December 31, 2014 and March 31, 2015 $ Granted — — Cancelled ) $ Exercised ) $ Expired ) $ Balance at June 30, 2015 $ Granted — — Cancelled ) $ Exercised ) $ Expired — $ — Balance at September 30, 2015 $
Summary of RSU activity under the Plans	A summary of RSU activity under the Plans is presented below (in thousands, except for fair value): Number of Shares Weighted Average Grant-Date Fair Value Non-vested shares at December 31, 2014 $ Vested ) $ Cancelled ) $ Non-vested shares at March 31, 2015 $ Vested ) $ Cancelled ) $ Non-vested shares at June 30, 2015 $ Vested ) $ Cancelled ) $ Non-vested shares at September 30, 2015 $
Summary of significant ranges of outstanding and exercisable options	The following table summarizes significant ranges of outstanding and exercisable options as of September 30, 2015 (in thousands, except contractual life and exercise price): Options Outstanding Options Exercisable Range of Exercise Price Number Outstanding Weighted Average Remaining Contractual Life (in Years) Weighted Average Exercise Price Number Exercisable Weighted Average Exercise Price Aggregate Intrinsic Value $1.68 - $2.24 $ $ $2.25 - $3.15 $ $ $3.16 - $3.80 $ $ $3.81 - $4.34 $ $ $4.35 - $4.69 $ $ $4.70 - $6.11 $ $ $1.68 - $6.11 $ $ $ — Vested and expected to vest $ $ — Exercisable $ $ —

The Company and Summary of Si20

The Company and Summary of Significant Accounting Policies (Details)	3 Months Ended	9 Months Ended
	Sep. 30, 2015USD ($)	Sep. 30, 2015USD ($)item	Dec. 31, 2014USD ($)
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%	100.00%
Allowance for doubtful accounts receivable | $	$ 0	$ 0	$ 0
Charges for obsolete and slow moving inventories | $	$ 200,000	$ 200,000

The Company and Summary of Si21

The Company and Summary of Significant Accounting Policies (Details 2) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
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	$ 0	$ 100,000	$ 0	$ 100,000
Net loss per share
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount			9,322,000	10,190,000

Fair Value of Financial Instr22

Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014	Sep. 30, 2014	Dec. 31, 2013
Fair Value of Financial Instruments
Cash and cash equivalents, cost	$ 1,585	$ 3,110	$ 4,685	$ 4,364
Cash and cash equivalents, fair value	1,585	3,110
Estimated fair values of financial instruments
Unrealized Gains	2	3
Unrealized Losses	(5)	(13)
Short-term investments.
Estimated fair values of financial instruments
Cost	21,599	20,442
Unrealized Gains	2	3
Unrealized Losses	(4)	(6)
Fair Value	21,597	20,439
Short-term investments. | U.S. government-sponsored enterprise bonds
Estimated fair values of financial instruments
Cost	8,439	1,250
Unrealized Gains	2
Unrealized Losses	(1)
Fair Value	8,440	1,250
Short-term investments. | Corporate notes
Estimated fair values of financial instruments
Cost	11,924	15,921
Unrealized Gains		2
Unrealized Losses	(3)	(6)
Fair Value	11,921	15,917
Short-term investments. | Municipal Bonds
Estimated fair values of financial instruments
Cost	996	841
Fair Value	996	841
Short-term investments. | Certificates of deposit
Estimated fair values of financial instruments
Cost	240	2,430
Unrealized Gains		1
Fair Value	240	2,431
Long-term investments
Estimated fair values of financial instruments
Cost	2,270	2,252
Unrealized Losses	(1)	(7)
Fair Value	2,269	2,245
Long-term investments | U.S. government-sponsored enterprise bonds
Estimated fair values of financial instruments
Cost		1,000
Unrealized Losses		(2)
Fair Value		998
Long-term investments | Corporate notes
Estimated fair values of financial instruments
Cost	2,270	1,252
Unrealized Losses	(1)	(5)
Fair Value	$ 2,269	$ 1,247

Fair Value of Financial Instr23

Fair Value of Financial Instruments (Details 2) $ in Thousands	9 Months Ended
	Sep. 30, 2015USD ($)item	Dec. 31, 2014USD ($)
Estimated fair values of available-for-sale securities with unrealized losses
Number of maturity groups | item	2
Investments by rolling maturity, Cost
Due within 1 year	$ 21,599	$ 20,442
Due in 1-2 years	2,270	2,252
Total	23,869	22,694
Investments by rolling maturity, Unrealized Gains
Due within 1 year	2	3
Total	2	3
Investments by rolling maturity, Unrealized Losses
Due within 1 year	(4)	(6)
Due in 1-2 years	(1)	(7)
Total	(5)	(13)
Investments by rolling maturity, Fair Value
Due within 1 year	21,597	20,439
Due in 1-2 years	2,269	2,245
Total	23,866	22,684
Short-term investments.
Estimated fair values of available-for-sale securities with unrealized losses
Cost	10,824	13,006
Unrealized Losses	(4)	(6)
Fair Value	10,820	13,000
Investments by rolling maturity, Unrealized Gains
Total	2	3
Investments by rolling maturity, Unrealized Losses
Total	(4)	(6)
Short-term investments. | U.S. government-sponsored enterprise bonds
Estimated fair values of available-for-sale securities with unrealized losses
Cost	3,363
Unrealized Losses	(1)
Fair Value	3,362
Investments by rolling maturity, Unrealized Gains
Total	2
Investments by rolling maturity, Unrealized Losses
Total	(1)
Short-term investments. | Corporate notes
Estimated fair values of available-for-sale securities with unrealized losses
Cost	7,461	13,006
Unrealized Losses	(3)	(6)
Fair Value	7,458	13,000
Investments by rolling maturity, Unrealized Gains
Total		2
Investments by rolling maturity, Unrealized Losses
Total	(3)	(6)
Short-term investments. | Certificates of deposit
Investments by rolling maturity, Unrealized Gains
Total		1
Long-term investments
Estimated fair values of available-for-sale securities with unrealized losses
Cost	2,270	2,252
Unrealized Losses	(1)	(7)
Fair Value	2,269	2,245
Investments by rolling maturity, Unrealized Losses
Total	(1)	(7)
Long-term investments | U.S. government-sponsored enterprise bonds
Estimated fair values of available-for-sale securities with unrealized losses
Cost		1,000
Unrealized Losses		(2)
Fair Value		998
Investments by rolling maturity, Unrealized Losses
Total		(2)
Long-term investments | Corporate notes
Estimated fair values of available-for-sale securities with unrealized losses
Cost	2,270	1,252
Unrealized Losses	(1)	(5)
Fair Value	2,269	1,247
Investments by rolling maturity, Unrealized Losses
Total	$ (1)	$ (5)

Fair Value of Financial Instr24

Fair Value of Financial Instruments (Details 3) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014	Sep. 30, 2014
Fair value hierarchy for its financial assets
Cash equivalents	$ 1,585	$ 3,110
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, Measurements, Recurring [Member]
Fair value hierarchy for its financial assets
Total assets	24,884		25,168
Fair Value, Measurements, Recurring [Member] | Money market funds
Fair value hierarchy for its financial assets
Cash equivalents	203		1,837
Fair Value, Measurements, Recurring [Member] | U.S. government-sponsored enterprise bonds
Fair value hierarchy for its financial assets
Available-for-sale securities	8,440		2,248
Fair Value, Measurements, Recurring [Member] | Municipal Bonds
Fair value hierarchy for its financial assets
Available-for-sale securities	996		1,243
Fair Value, Measurements, Recurring [Member] | Corporate notes
Fair value hierarchy for its financial assets
Available-for-sale securities	14,190		17,164
Fair Value, Measurements, Recurring [Member] | Certificates of deposit
Fair value hierarchy for its financial assets
Available-for-sale securities	405		2,676
Fair Value, Measurements, Recurring [Member] | Commercial Paper
Fair value hierarchy for its financial assets
Available-for-sale securities	650
Fair Value, Measurements, Recurring [Member] | Level 1
Fair value hierarchy for its financial assets
Total assets	203		1,837
Fair Value, Measurements, Recurring [Member] | Level 1 | Money market funds
Fair value hierarchy for its financial assets
Cash equivalents	203		1,837
Fair Value, Measurements, Recurring [Member] | Level 2
Fair value hierarchy for its financial assets
Total assets	24,681		23,331
Fair Value, Measurements, Recurring [Member] | Level 2 | U.S. government-sponsored enterprise bonds
Fair value hierarchy for its financial assets
Available-for-sale securities	8,440		2,248
Fair Value, Measurements, Recurring [Member] | Level 2 | Municipal Bonds
Fair value hierarchy for its financial assets
Available-for-sale securities	996		1,243
Fair Value, Measurements, Recurring [Member] | Level 2 | Corporate notes
Fair value hierarchy for its financial assets
Available-for-sale securities	14,190		17,164
Fair Value, Measurements, Recurring [Member] | Level 2 | Certificates of deposit
Fair value hierarchy for its financial assets
Available-for-sale securities	405		$ 2,676
Fair Value, Measurements, Recurring [Member] | Level 2 | Commercial Paper
Fair value hierarchy for its financial assets
Available-for-sale securities	$ 650

Balance Sheet Details (Details)

Balance Sheet Details (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Inventory, Finished Goods and Work in Process, Net of Reserves
Work-in-process	$ 1,214	$ 651
Finished goods	50	230
Inventory, Net	1,264	881
Intangible assets
Gross Carrying Amount	10,020	10,020
Accumulated Amortization	9,658	9,365
Net Carrying Value	362	655
Estimated aggregate amortization expense to be recognized in future
Remainder of 2015	100
2016 through 2018	100
Developed technology
Intangible assets
Gross Carrying Amount	9,240	9,240
Accumulated Amortization	$ 9,240	9,031
Net Carrying Value		$ 209
Developed technology | Minimum
Intangible assets
Life	3 years	3 years
Developed technology | Maximum
Intangible assets
Life	5 years	5 years
Patent license
Intangible assets
Life	7 years	7 years
Gross Carrying Amount	$ 780	$ 780
Accumulated Amortization	418	334
Net Carrying Value	$ 362	$ 446

Business Segments and Significa

Business Segments and Significant Customers (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015USD ($)	Sep. 30, 2014USD ($)	Sep. 30, 2015USD ($)item	Sep. 30, 2014USD ($)
Business Segments, Concentration of Credit Risk and Significant Customers
Number of business segments | item			1
Number of measurements of profitability | item			1
Business Segments
Total net revenue	$ 1,022	$ 1,153	$ 2,792	$ 4,234
United States
Business Segments
Total net revenue	507	311	1,233	1,094
Taiwan
Business Segments
Total net revenue	329	485	1,065	1,358
Japan
Business Segments
Total net revenue	177	356	431	1,755
Rest of world
Business Segments
Total net revenue	$ 9	$ 1	$ 63	$ 27

Business Segments and Signifi27

Business Segments and Significant Customers (Details 2) - customer	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Total revenues | Customer concentration risk | Customer A
Significant Customers
Percentage of concentration risk	36.00%		27.00%
Total revenues | Customer concentration risk | Customer B
Significant Customers
Percentage of concentration risk	32.00%	40.00%	37.00%	31.00%
Total revenues | Customer concentration risk | Customer C
Significant Customers
Percentage of concentration risk	14.00%	27.00%	12.00%	37.00%
Total revenues | Customer concentration risk | Customer D
Significant Customers
Percentage of concentration risk		10.00%	10.00%	11.00%
Net accounts receivable | Credit concentration | One customer
Significant Customers
Percentage of concentration risk			76.00%
Number of customers	1		1
Net accounts receivable | Credit concentration | Three customers
Significant Customers
Percentage of concentration risk					97.00%
Number of customers					3

Stock-Based Compensation (Detai

Stock-Based Compensation (Details) - USD ($) $ / shares in Units, shares in Thousands	3 Months Ended				6 Months Ended	9 Months Ended
	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Sep. 30, 2014	Jun. 30, 2015	Sep. 30, 2015	Sep. 30, 2014
Options
Stock-Based Compensation
Unamortized compensation cost, net of expected forfeitures	$ 2,900,000					$ 2,900,000
Weighted average expected period over which the expense is to be recognized						2 years 2 months 12 days
Tax benefits associated with exercise of stock options	$ 0			$ 0		$ 0	$ 0
Inducement grant options
Available for Grant
Balance at the beginning of the year (in dollars per share)	$ 4.34	$ 3.68
Number of Shares
Balance at the beginning of the period (in shares)	1,703	2,233
Options cancelled (in shares)	(28)				(2)
Options exercised (in shares)	(6)				(512)
Options expired (in shares)					(16)
Balance at the end of the period (in shares)	1,669	1,703	2,233		1,703	1,669
Weighted Average Exercise Prices
Options cancelled (in dollars per share)	$ 3.57				$ 3.86
Options exercised (in dollars per share)	1.50				1.55
Options expired (in dollars per share)					1.55
Balance at the end of the year (in dollars per share)	$ 4.36	$ 4.34	$ 3.68		$ 4.34	$ 4.36
RSU's
Stock-Based Compensation
Weighted average expected period over which the expense is to be recognized						1 year 7 months 6 days
Unamortized compensation cost for awards other than options, net of expected forfeitures	$ 700,000					$ 700,000
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
Amended 2010 Plan
Available for Grant
Additional shares authorized under the Amended 2010 Plan			500
The Plans
Available for Grant
Balance at the beginning of the year (in shares)	1,046	1,018	1,760		1,760	1,760
Balance at the beginning of the year (in dollars per share)	$ 3.50	$ 3.52	$ 3.87		$ 3.87	$ 3.87
Restricted stock units cancelled (in shares)	4	10	6
Options granted (in shares)	(120)	(95)	(1,323)
Options cancelled (in shares)	203	128	153
Options expired (in shares)	(121)	(15)	(78)
Balance at the end of the year (in shares)	1,012	1,046	1,018		1,046	1,012
Number of Shares
Balance at the beginning of the period (in shares)	7,069	7,142	5,994		5,994	5,994
Options granted (in shares)	120	95	1,323
Options cancelled (in shares)	(203)	(128)	(153)
Options exercised (in shares)	(20)	(40)	(22)
Balance at the end of the period (in shares)	6,966	7,069	7,142		7,069	6,966
Weighted Average Exercise Prices
Options granted (in dollars per share)	$ 1.70	$ 2.04	$ 2.05
Options cancelled (in dollars per share)	2.90	4	5
Options exercised (in dollars per share)	1.65	1.65	1.60
Options expired (in dollars per share)	2.26	4.35	5.79
Balance at the end of the year (in dollars per share)	$ 3.49	$ 3.50	$ 3.52		$ 3.50	$ 3.49
The Plans | RSU's
Available for Grant
Restricted stock units cancelled (in shares)			6		10	4

Stock-Based Compensation (Det29

Stock-Based Compensation (Details 2)	Aug. 31, 2015USD ($)shares	May. 26, 2015shares	Feb. 28, 2015USD ($)shares	Jun. 30, 2010USD ($)itemshares	Sep. 30, 2015$ / sharesshares	Sep. 30, 2014	Sep. 30, 2015$ / sharesshares	Sep. 30, 2014
Stock-Based Compensation
Outstanding options fully vested and expected to vest (in shares)					8,415,000		8,415,000
Weighted average exercise price of options fully vested and expected to vest (in dollars per share) | $ / shares					$ 3.69		$ 3.69
Awards exercisable (in shares)					6,109,000		6,109,000
Weighted average exercise price of awards exercisable (in dollars per share) | $ / shares					$ 3.98		$ 3.98
Options
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)					1.40%	1.30%	0.60%	1.30%
Risk-free interest rate, maximum (as a percent)						1.70%	1.70%	1.70%
Volatility, minimum (as a percent)					59.30%	53.70%	55.70%	53.70%
Volatility, maximum (as a percent)						55.60%	59.30%	57.50%
Expected life					4 years
Dividend yield (as a percent)					0.00%	0.00%	0.00%	0.00%
Options | Minimum
Assumptions used in estimation of fair value of the share-based payment awards on the grant date
Expected life						4 years	4 years	4 years
Options | Maximum
Assumptions used in estimation of fair value of the share-based payment awards on the grant date
Expected life						5 years	5 years	5 years
ESPP
Employee Stock Purchase Plan
Number of shares reserved for issuance				2,000,000
Increase in 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 | item				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	268,000		339,000
Aggregate purchase price (in dollars) | $	$ 339,000		$ 518,000
Shares authorized and unissued					2,200,000		2,200,000

Stock-Based Compensation (Det30

Stock-Based Compensation (Details 3) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions	3 Months Ended			6 Months Ended	9 Months Ended
	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Jun. 30, 2015	Sep. 30, 2015
RSU's
Weighted Average Grant-Date Fair Value
Total intrinsic value of the restricted stock units outstanding	$ 0.4				$ 0.4
The Plans
Number of Shares
Cancelled (in shares)	(4)	(10)	(6)
The Plans | RSU's
Number of Shares
Non-vested shares at the beginning of the year	255	268	394	394	394
Vested (in shares)			(120)	(3)	(8)
Cancelled (in shares)			(6)	(10)	(4)
Non-vested shares at the end of the year	243	255	268	255	243
Weighted Average Grant-Date Fair Value
Non-vested shares at the beginning of the year (in dollars per share)	$ 4.60	$ 4.61	$ 4.61	$ 4.61	$ 4.61
Vested (in dollars per share)			4.60	4.46	4.46
Cancelled (in dollars per share)			4.60	4.62	4.62
Non-vested shares at the end of the year (in dollars per share)	$ 4.76	$ 4.60	$ 4.61	$ 4.60	$ 4.76

Stock-Based Compensation (Det31

Stock-Based Compensation (Details 4) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Options Outstanding
Weighted Average Remaining Contractual Life	4 years 4 months 6 days
Vested and expected to vest Options Outstanding, Number Outstanding	8,415
Vested and expected to vest Options Outstanding, Weighted Average Exercise Price	$ 3.69
Exercisable, Number Outstanding	6,109
Exercisable, Weighted Average Exercise Price	$ 3.98
Options Exercisable
Weighted Average Remaining Contractual Life	3 years 1 month 17 days
$1.68 - $2.24
Exercise price range
Low end of the range (in dollars per share)	$ 1.68
High end of the range (in dollars per share)	$ 2.24
Options Outstanding
Number Outstanding (in shares)	1,612
Weighted Average Exercise Price (in dollars per share)	$ 2.01
Options Exercisable
Number Exercisable (in shares)	261
Weighted Average Exercise Price (in dollars per share)	$ 2.05
Weighted Average Remaining Contractual Life	9 years 2 months 9 days
$2.25 - $3.15
Exercise price range
Low end of the range (in dollars per share)	$ 2.25
High end of the range (in dollars per share)	$ 3.15
Options Outstanding
Number Outstanding (in shares)	1,429
Weighted Average Exercise Price (in dollars per share)	$ 2.97
Options Exercisable
Number Exercisable (in shares)	1,196
Weighted Average Exercise Price (in dollars per share)	$ 2.96
Weighted Average Remaining Contractual Life	2 years 11 months 9 days
$3.16 - $3.80
Exercise price range
Low end of the range (in dollars per share)	$ 3.16
High end of the range (in dollars per share)	$ 3.80
Options Outstanding
Number Outstanding (in shares)	1,483
Weighted Average Exercise Price (in dollars per share)	$ 3.42
Options Exercisable
Number Exercisable (in shares)	1,239
Weighted Average Exercise Price (in dollars per share)	$ 3.43
Weighted Average Remaining Contractual Life	2 years 10 months 24 days
$3.81 - $4.34
Exercise price range
Low end of the range (in dollars per share)	$ 3.81
High end of the range (in dollars per share)	$ 4.34
Options Outstanding
Number Outstanding (in shares)	1,435
Weighted Average Exercise Price (in dollars per share)	$ 3.96
Options Exercisable
Number Exercisable (in shares)	1,222
Weighted Average Exercise Price (in dollars per share)	$ 3.96
Weighted Average Remaining Contractual Life	3 years 3 months 29 days
$4.35 - $4.69
Exercise price range
Low end of the range (in dollars per share)	$ 4.35
High end of the range (in dollars per share)	$ 4.69
Options Outstanding
Number Outstanding (in shares)	1,386
Weighted Average Exercise Price (in dollars per share)	$ 4.47
Options Exercisable
Number Exercisable (in shares)	974
Weighted Average Exercise Price (in dollars per share)	$ 4.46
Weighted Average Remaining Contractual Life	5 years 6 months 29 days
$4.70 - $6.11
Exercise price range
Low end of the range (in dollars per share)	$ 4.70
High end of the range (in dollars per share)	$ 6.11
Options Outstanding
Number Outstanding (in shares)	1,290
Weighted Average Exercise Price (in dollars per share)	$ 5.56
Options Exercisable
Number Exercisable (in shares)	1,217
Weighted Average Exercise Price (in dollars per share)	$ 5.57
Weighted Average Remaining Contractual Life	2 years 4 days
$1.68 - $6.11
Exercise price range
Low end of the range (in dollars per share)	$ 1.68
High end of the range (in dollars per share)	$ 6.11
Options Outstanding
Number Outstanding (in shares)	8,635
Weighted Average Exercise Price (in dollars per share)	$ 3.66
Options Exercisable
Number Exercisable (in shares)	6,109
Weighted Average Exercise Price (in dollars per share)	$ 3.98
Weighted Average Remaining Contractual Life	4 years 5 months 12 days
Options
Options Exercisable
Total intrinsic value of awards exercised (in dollars)	$ 0.3	$ 0.7

Stockholders' Equity (Details)

Stockholders' Equity (Details) $ in Thousands	Mar. 04, 2015USD ($)itemshares	Sep. 30, 2015USD ($)
Stockholders' Equity
Number of shares of common stock issued in equity and public offering	14,375,000
Net proceeds from issue of shares of common stock in equity and public offering | $	$ 21,400	$ 21,368
Number of executive officers | item	2
Shares purchased by executive officers	406,250

Related Party Transactions (Det

Related Party Transactions (Details)	1 Months Ended	9 Months Ended
	Feb. 29, 2012USD ($)item	Sep. 30, 2015USD ($)	Mar. 04, 2015item
Related party transactions
Number of executive officers who loaned a portion of seed funding to related parties | item			2
Credo
Related party transactions
Number of executive officers who loaned a portion of seed funding to related parties | item	2
Amount of loan provided by executive officers to related party	$ 250,000
Payment made to related party		$ 4,700,000
Initial amount of gross profits which will be retained by the entity		$ 3,600,000