Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2016 | May. 02, 2016 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | ZHNE | |
Entity Registrant Name | ZHONE TECHNOLOGIES INC | |
Entity Central Index Key | 1,101,680 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 34,350,172 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 9,330 | $ 10,113 |
Accounts receivable, net of allowances for sales returns and doubtful accounts of $981 as of March 31, 2016 and $960 as of December 31, 2015 | 24,827 | 28,209 |
Inventories | 14,576 | 14,802 |
Prepaid expenses and other current assets | 3,044 | 1,914 |
Total current assets | 51,777 | 55,038 |
Property and equipment, net | 2,223 | 1,358 |
Other assets | 249 | 249 |
Total assets | 54,249 | 56,645 |
Current liabilities: | ||
Accounts payable | 10,226 | 10,053 |
Line of credit | 2,000 | 5,000 |
Accrued and other liabilities | 6,070 | 5,742 |
Total current liabilities | 18,296 | 20,795 |
Other long-term liabilities | 2,698 | 1,693 |
Total liabilities | 20,994 | 22,488 |
Stockholders’ equity: | ||
Common stock, $0.001 par value. Authorized 180,000 shares; issued and outstanding 34,347 and 33,813 shares as of March 31, 2016 and December 31, 2015, respectively | 34 | 34 |
Additional paid-in capital | 1,080,024 | 1,077,459 |
Other comprehensive loss | (391) | (356) |
Accumulated deficit | (1,046,412) | (1,042,980) |
Total stockholders’ equity | 33,255 | 34,157 |
Total liabilities and stockholders’ equity | $ 54,249 | $ 56,645 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowances for sales returns and doubtful accounts | $ 981 | $ 960 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, Authorized | 180,000,000 | 180,000,000 |
Common stock, issued | 34,347,000 | 33,813,000 |
Common stock, outstanding | 34,347,000 | 33,813,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Income Statement [Abstract] | ||
Net revenue | $ 20,599 | $ 27,122 |
Cost of revenue | 12,348 | 16,951 |
Gross profit | 8,251 | 10,171 |
Operating expenses: | ||
Research and product development | 3,558 | 4,050 |
Sales and marketing | 3,802 | 4,382 |
General and administrative | 4,253 | 2,277 |
Total operating expenses | 11,613 | 10,709 |
Operating loss | (3,362) | (538) |
Interest expense, net | (5) | (53) |
Other income, net | (36) | 11 |
Loss before income taxes | (3,403) | (580) |
Income tax provision | 29 | 22 |
Net loss | (3,432) | (602) |
Other comprehensive loss | (35) | (89) |
Comprehensive loss | $ (3,467) | $ (691) |
Basic and diluted net loss per share | $ (0.10) | $ (0.02) |
Weighted average shares outstanding used to compute basic net loss per share | 33,841 | 32,605 |
Weighted average shares outstanding used to compute diluted net loss per share | 33,841 | 32,605 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Cash flows from operating activities: | ||
Net loss | $ (3,432) | $ (602) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 191 | 210 |
Stock-based compensation | 2,536 | 173 |
Allowance for (recovery of) sales returns and doubtful accounts | 21 | (104) |
Changes in operating assets and liabilities: | ||
Accounts receivable | 3,361 | (1,872) |
Inventories | 226 | 2,735 |
Prepaid expenses and other assets | (130) | 158 |
Accounts payable | 173 | (229) |
Accrued and other liabilities | 333 | (298) |
Net cash provided by operating activities | 3,279 | 171 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (1,056) | (362) |
Net cash used in investing activities | (1,056) | (362) |
Cash flows from financing activities: | ||
Proceeds from exercise of stock options | 29 | 95 |
Repayment of debt | (3,000) | 0 |
Net cash (used in) provided by financing activities | (2,971) | 95 |
Effect of exchange rate changes on cash | (35) | (89) |
Net decrease in cash and cash equivalents | (783) | (185) |
Cash and cash equivalents at beginning of period | 10,113 | 11,528 |
Cash and cash equivalents at end of period | 9,330 | 11,343 |
Non-cash investing activities: | ||
Changes in accrued and other liabilities related to property and equipment purchases | $ 0 | $ (142) |
Organization and Summary of Sig
Organization and Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Organization and Summary of Significant Accounting Policies | Organization and Summary of Significant Accounting Policies (a) Description of Business Zhone Technologies, Inc. (sometimes referred to, collectively with its subsidiaries, as “Zhone” or the “Company”) designs, develops and manufactures communications network equipment for telecommunications operators and enterprises worldwide. The Company’s products provide enterprise solutions that enable both network service providers and enterprises to deliver high speed fiber access, while transporting voice, video and data to the end user. The Company was incorporated under the laws of the state of Delaware in June 1999. The Company began operations in September 1999 and is headquartered in Oakland, California. (b) Basis of Presentation The condensed consolidated financial statements are unaudited and reflect all adjustments (consisting only of normal recurring adjustments) that, in the opinion of management, are necessary for a fair presentation of the results for the interim periods presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”). All significant inter-company transactions and balances have been eliminated in consolidation. The results of operations for the current interim period are not necessarily indicative of results to be expected for the current year or any other period. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015. (c) Risks and Uncertainties The accompanying condensed consolidated financial statements have been prepared assuming that the Company will continue as a going concern. The Company incurred a net loss of $2.0 million for the year ended December 31, 2015 and a net loss of $3.4 million for the first quarter of 2016, which net losses have continued to reduce cash and cash equivalents. As of March 31, 2016 , the Company had approximately $9.3 million in cash and cash equivalents and $2.0 million in current debt outstanding under its revolving line of credit and letter of credit facility (the “WFB Facility”) with Wells Fargo Bank (“WFB”). The Company currently expects to repay the WFB Facility within the next twelve months. The maturity date under the WFB Facility is March 31, 2019. See Note 6 for additional information. The Company’s current lack of liquidity could harm it by: • increasing its vulnerability to adverse economic conditions in its industry or the economy in general; • requiring substantial amounts of cash to be used for debt servicing, rather than other purposes, including operations; • limiting its ability to plan for, or react to, changes in its business and industry; and • influencing investor and customer perceptions about its financial stability and limiting its ability to obtain financing or acquire customers. In order to meet the Company’s liquidity needs and finance its capital expenditures and working capital needs for the business, the Company may be required to sell assets, issue debt or equity securities, purchase credit insurance, or borrow on unfavorable terms. In addition, the Company may be required to reduce its operations in low margin regions, including reductions in headcount. In October 2015, the Company took steps to reduce its expenses to minimize additional cash burn, including reduction in headcount and in salaries. The Company may be unable to sell assets, issue securities or access additional indebtedness to meet these needs on favorable terms, or at all. If additional capital is raised through the issuance of debt securities or other debt financing, the terms of such debt may include covenants, restrictions and financial ratios that may restrict the Company’s ability to operate its business. Likewise, any equity financing could result in additional dilution of the Company’s stockholders. If the Company is unable to sell assets, issue securities or access additional indebtedness to meet these needs on favorable terms, or at all, the Company may become unable to pay its ordinary expenses, including its debt service, on a timely basis and may be required to reduce the scope of its planned product development and sales and marketing efforts beyond the reductions it has previously taken. Based on the Company’s current plans and business conditions, it believes that its existing cash, cash equivalents and available credit facilities will be sufficient to satisfy its anticipated cash requirements for at least the next twelve months. The Company's financial condition and results of operations could be materially and adversely affected by various factors, including: • Potential deferment of purchases and orders by customers; • Customers’ inability to obtain financing to make purchases from the Company and/or maintain their business; • Negative impact from increased financial pressures on third-party dealers, distributors and retailers; • Intense competition in the communication equipment market; • Commercial acceptance of the Company’s Single Line Multi-Service (“SLMS”) products in its core and FiberLAN businesses; and • Negative impact from increased financial pressures on key suppliers. The Company may experience material adverse impacts on its business, operating results and financial condition as a result of weak or recessionary economic or market conditions in the United States or the rest of the world. (d) Use of Estimates The preparation of the condensed consolidated financial statements in conformity with generally accepted accounting principles in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ materially from those estimates. (e) Revenue Recognition The Company recognizes revenue when the earnings process is complete. The Company recognizes product revenue upon shipment of product under contractual terms which transfer title to customers upon shipment, under normal credit terms, net of estimated sales returns and allowances at the time of shipment. Revenue is deferred if there are significant post-delivery obligations or if the fees are not fixed or determinable. When significant post-delivery obligations exist, revenue is deferred until such obligations are fulfilled. The Company’s arrangements generally do not have any significant post-delivery obligations. If the Company’s arrangements include customer acceptance provisions, revenue is recognized upon obtaining the signed acceptance certificate from the customer, unless the Company can objectively demonstrate that the delivered products or services meet all the acceptance criteria specified in the arrangement prior to obtaining the signed acceptance. In those instances where revenue is recognized prior to obtaining the signed acceptance certificate, the Company uses successful completion of customer testing as the basis to objectively demonstrate that the delivered products or services meet all the acceptance criteria specified in the arrangement. The Company also considers historical acceptance experience with the customer, as well as the payment terms specified in the arrangement, when revenue is recognized prior to obtaining the signed acceptance certificate. When collectability is not reasonably assured, revenue is recognized when cash is collected. The Company makes certain sales to product distributors. These customers are given certain privileges to return a portion of inventory. Return privileges generally allow distributors to return inventory based on a percent of purchases made within a specific period of time. The Company recognizes revenue on sales to distributors that have contractual return rights when the products have been sold by the distributors, unless there is sufficient customer specific sales and sales returns history to support revenue recognition upon shipment. In those instances when revenue is recognized upon shipment to distributors, the Company uses historical rates of return from the distributors to provide for estimated product returns. The Company derives revenue primarily from stand-alone sales of its products. In certain cases, the Company’s products are sold along with services, which include education, training, installation, and/or extended warranty services. As such, some of the Company’s sales have multiple deliverables. The Company’s products and services qualify as separate units of accounting and are deemed to be non-contingent deliverables as the Company’s arrangements typically do not have any significant performance, cancellation, termination and refund type provisions. Products are typically considered delivered upon shipment. Revenue from services is recognized ratably over the period during which the services are to be performed. For multiple deliverable revenue arrangements, the Company allocates revenue to products and services using the relative selling price method to recognize revenue when the revenue recognition criteria for each deliverable are met. The selling price of a deliverable is based on a hierarchy and if the Company is unable to establish vendor-specific objective evidence of selling price (“VSOE”) it uses third-party evidence of selling price (“TPE”), and if no such data is available, it uses a best estimated selling price (“BSP”). In most instances, particularly as it relates to products, the Company is not able to establish VSOE for all deliverables in an arrangement with multiple elements. This may be due to infrequently selling each element separately, not pricing products within a narrow range, or only having a limited sales history. When VSOE cannot be established, the Company attempts to establish the selling price of each element based on TPE. Generally, the Company’s marketing strategy differs from that of the Company’s peers and the Company’s offerings contain a significant level of customization and differentiation such that the comparable pricing of products with similar functionality cannot be obtained. Furthermore, the Company is unable to reliably determine what similar competitor products’ selling prices are on a stand-alone basis. Therefore, the Company is typically not able to determine TPE for the Company’s products. When the Company is unable to establish selling price using VSOE or TPE, the Company uses BSP. The objective of BSP is to determine the price at which the Company would transact a sale if the product or service were sold on a stand-alone basis. The BSP of each deliverable is determined using average discounts from list price from historical sales transactions or cost plus margin approaches based on the factors, including but not limited to, the Company’s gross margin objectives and pricing practices plus customer and market specific considerations. The Company has established TPE for its training, education and installation services. TPE is determined based on competitor prices for similar deliverables when sold separately. These service arrangements are typically short term in nature and are largely completed shortly after delivery of the product. Training and education services are based on a daily rate per person and vary according to the type of class offered. Installation services are based on daily rate per person and vary according to the complexity of the products being installed. Extended warranty services are priced based on the type of product and are sold in one to five year durations. Extended warranty services include the right to warranty coverage beyond the standard warranty period. In substantially all of the arrangements with multiple deliverables pertaining to arrangements with these services, the Company has used and intends to continue using VSOE to determine the selling price for the services. The Company determines VSOE based on its normal pricing practices for these specific services when sold separately. (f) Fair Value of Financial Instruments The Company had no financial assets and liabilities as of March 31, 2016 and December 31, 2015 recorded at fair value. The following financial instruments are not measured at fair value on the Company’s condensed consolidated balance sheet as of March 31, 2016 and December 31, 2015 , but require disclosure of their fair values: cash and cash equivalents, accounts receivable, accounts payable, accrued liabilities, and debt. The estimated fair value of such instruments at March 31, 2016 and December 31, 2015 approximated their carrying value as reported on the condensed consolidated balance sheet. The fair value of such financial instruments is determined using the income approach based on the present value of estimated future cash flows. The fair value of these instruments would be categorized as Level 2 in the fair value hierarchy, with the exception of cash and cash equivalents, which would be categorized as Level 1. (g) Concentration of Risk The Company’s customers include competitive and incumbent local exchange carriers, competitive access providers, Internet service providers, wireless carriers and resellers serving these markets. The Company performs ongoing credit evaluations of its customers and generally does not require collateral. Allowances are maintained for potential doubtful accounts. For the three months ended March 31, 2016 and 2015 , three customers represented 35% and 34% of net revenue, respectively. Three customers accounted for 42% and 44% of net accounts receivable as of March 31, 2016 and December 31, 2015 , respectively. As of March 31, 2016 and December 31, 2015 , receivables from customers in countries other than the United States represented 82% and 83% , respectively, of net accounts receivable. (h) Comprehensive Loss There have been no items reclassified out of accumulated other comprehensive loss and into net loss. The Company’s other comprehensive loss for the three months ended March 31, 2016 and 2015 is comprised of only foreign exchange translation adjustments. (i) Recent Accounting Pronouncements On May 28, 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09, "Revenue from Contracts with Customers", which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The standard permits the use of either the retrospective or cumulative effect transition method. In August 2015, the FASB issued ASU 2015-14, which defers the effective date of the guidance in ASU No. 2014-09, Revenue from Contracts with Customer, for all entities by one year. With the deferral, the new standard is effective for the Company on January 1, 2018. Early adoption is permitted, but not before the original effective date of January 1, 2017. The Company is evaluating the effect that ASU 2014-09 will have on its consolidated financial statements and related disclosures. The Company has not yet selected a transition method nor has it determined the effect of the standard on its ongoing financial reporting. In August 2014, the FASB issued ASU No. 2014-15, "Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern", which describes how an entity should assess its ability to meet obligations and sets rules for how this information should be disclosed in financial statements. The new standard is effective for the Company on January 1, 2017. Early application is permitted. The Company is evaluating the effect that ASU 2014-15 will have on its consolidated financial statements and related disclosures. In July 2015, the FASB issued ASU No. 2015-11, "Simplifying the Measurement of Inventory", which requires an entity to measure inventory at the lower of cost and net realizable value. The guidance does not apply to inventory that is measured using last-in, first-out ("LIFO") or the retail inventory method. The guidance applies to all other inventory, which includes inventory that is measured using first-in, first-out ("FIFO") or average cost. The guidance is effective for the Company on January 1, 2017. ASU No. 2015-11 should be applied prospectively with earlier application permitted as of the beginning of an interim or annual reporting period. The Company is evaluating the effect that ASU 2015-11 will have on its consolidated financial statements and related disclosures. In February 2016, the FASB issued ASU 2016-02, "Leases". ASU 2016-02 requires that lease arrangements longer than 12 months result in an entity recognizing an asset and liability. The updated guidance is effective for the Company on January 1, 2019, and early adoption is permitted. The Company has not yet evaluated the impact of the guidance on its consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, "Improvements to Employee Share-Based Payment Accounting", which requires entities to simplify several aspects of the accounting for share-based payment transactions, including income tax consequences, classification of awards as either equity or liabilities, and classification on statement of cash flows. The guidance is effective for the Company on January 1, 2017, and early adoption is permitted. The Company has not yet evaluated the impact of the guidance on its consolidated financial statements. |
Merger Agreement (Notes)
Merger Agreement (Notes) | 3 Months Ended |
Mar. 31, 2016 | |
Business Combinations [Abstract] | |
Merger Agreement | Merger Agreement On April 11, 2016, the Company, Dragon Acquisition Corporation, a California corporation and wholly owned subsidiary of the Company (“Merger Sub”), DASAN Networks, Inc., a company incorporated under the laws of Korea (“DASAN”), and Dasan Network Solutions, Inc., a California corporation (“DNS”), entered into an Agreement and Plan of Merger (the “Merger Agreement”). The Merger Agreement provides that, upon the terms and subject to the conditions set forth therein, Merger Sub will merge with and into DNS, with DNS surviving as a wholly owned subsidiary of the Company (the “Merger”), in exchange for shares of Zhone common stock to be issued to DASAN. As a result of the Merger, DASAN will receive shares of Zhone common stock in an amount equal to 58% of the issued and outstanding shares of Zhone common stock immediately following the Merger, and Zhone’s then-existing stockholders will retain 42% of such shares. The Merger and the Merger Agreement have been unanimously approved by the Company’s Board of Directors. The consummation of the Merger, which is currently expected to occur by the end of the third quarter of 2016, is subject to certain customary closing conditions, including, among others, receipt of regulatory approvals, authorization for listing of Zhone common stock on the Nasdaq Capital Market, and approval by Zhone stockholders of the issuance of the shares of Zhone common stock to DASAN under the Merger Agreement. The Merger Agreement also contains certain termination rights for each of the Company and DASAN, including a provision permitting the termination of the Merger Agreement by either such party if the Merger is not consummated by December 31, 2016. In addition, the Merger Agreement may be terminated by the Company if, after following certain procedures and adhering to certain restrictions, the Board of Directors has determined that it is necessary to terminate the Merger Agreement and enter into an agreement to effect a Superior Proposal (as defined in the Merger Agreement) in order to comply with its fiduciary duties under applicable law. The Merger Agreement further provides that, upon termination of the Merger Agreement, under specified circumstances, the Company will be required to pay DASAN a termination fee of $2,500,000 , and under specified circumstances, the Company will be required to reimburse DASAN, or DASAN will be required to reimburse the Company, for certain transaction expenses in an amount of up to $5,000,000 . Additional information regarding the proposed Merger and Merger Agreement is contained in the Company’s Current Report on Form 8-K filed with the SEC on April 12, 2016. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories as of March 31, 2016 and December 31, 2015 were as follows (in thousands): March 31, December 31, Raw materials $ 9,240 $ 9,764 Work in process 1,413 1,273 Finished goods 3,923 3,765 $ 14,576 $ 14,802 |
Property and Equipment, Net
Property and Equipment, Net | 3 Months Ended |
Mar. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | Property and Equipment, net Property and equipment, net, as of March 31, 2016 and December 31, 2015 were as follows (in thousands): March 31, December 31, Machinery and equipment $ 10,807 $ 10,783 Computers and acquired software 3,911 3,911 Furniture and fixtures 124 124 Leasehold improvements 2,936 1,920 17,778 16,738 Less accumulated depreciation and amortization (15,555 ) (15,380 ) $ 2,223 $ 1,358 Depreciation and amortization expense associated with property and equipment amounted to $ 0.2 million for each of the three months ended March 31, 2016 and 2015 . |
Net Income (Loss) Per Share
Net Income (Loss) Per Share | 3 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Share | Net Loss Per Share Basic net loss per share is computed by dividing the net loss applicable to holders of common stock for the period by the weighted average number of shares of common stock outstanding during the period. The calculation of diluted net loss per share gives effect to common stock equivalents; however, potential common equivalent shares are excluded if their effect is antidilutive. Potential common equivalent shares are composed of incremental shares of common equivalent shares issuable upon the exercise of stock options and warrants. The following table is a reconciliation of the numerator and denominator in the basic and diluted net loss per share calculation (in thousands, except per share data): Three Months Ended March 31, 2016 2015 Net loss: $ (3,432 ) $ (602 ) Weighted average number of shares outstanding: Basic 33,841 32,605 Effect of dilutive securities: Stock options and share awards — — Diluted 33,841 32,605 Net loss per share: Basic $ (0.10 ) $ (0.02 ) Diluted $ (0.10 ) $ (0.02 ) The following tables set forth potential common stock that is not included in the diluted net loss per share calculation because their effect would be antidilutive for the periods indicated (in thousands, except exercise price per share data): Three Months Ended March 31, 2016 Weighted Average Exercise Price Outstanding stock options and unvested restricted shares 2,183 $ 1.83 Three Months Ended March 31, 2015 Weighted Average Exercise Price Outstanding stock options and unvested restricted shares 5,618 $ 1.86 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
Debt | Debt As of March 31, 2016 , the Company had a $25.0 million revolving line of credit and letter of credit facility with WFB. Under the WFB Facility, the Company has the option of borrowing funds at agreed upon interest rates. The amount that the Company is able to borrow under the WFB Facility varies based on eligible accounts receivable and inventory, as defined in the agreement, as long as the aggregate amount outstanding does not exceed $25.0 million less the amount committed as security for letters of credit, which at March 31, 2016 was $9.7 million . To maintain availability of funds under the WFB Facility, the Company pays a commitment fee on the unused portion. The commitment fee is 0.25% per annum and is recorded as interest expense. The Company had $2.0 million outstanding at March 31, 2016 under its WFB Facility. In addition, $3.3 million was committed as security for letters of credit. The Company had $ 4.4 million of borrowing availability remaining under the WFB Facility as of March 31, 2016 . The maturity date under the WFB Facility is March 31, 2019. The amounts borrowed under the WFB Facility bear interest, payable monthly, at a floating rate equal to the three-month LIBOR plus a margin based on our average excess availability (as calculated under the WFB Facility). At March 31, 2016, the interest rate on the WFB Facility was 2.93% . The Company’s obligations under the WFB Facility are secured by substantially all of its personal property assets and those of its subsidiaries that guarantee the WFB Facility, including their intellectual property. The WFB Facility contains certain financial covenants, and customary affirmative covenants and negative covenants. If the Company defaults under the WFB Facility due to a covenant breach or otherwise, WFB may be entitled to, among other things, require the immediate repayment of all outstanding amounts and sell the Company’s assets to satisfy the obligations under the WFB Facility. As of March 31, 2016 , the Company was in compliance with these covenants. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Operating Leases The Company has entered into operating leases for certain office space and equipment, some of which contain renewal options. Estimated future lease payments under all non-cancelable operating leases with terms in excess of one year, including taxes and service fees, are as follows (in thousands): Operating Leases Year ending December 31: 2016 (remainder of the year) $ 876 2017 1,280 2018 995 2019 523 2020 and thereafter 4,130 Total minimum lease payments $ 7,804 Warranties The Company accrues for warranty costs based on historical trends for the expected material and labor costs to provide warranty services. Warranty periods are generally one year from the date of shipment. The following table reconciles changes in the Company’s accrued warranties and related costs for the three months ended March 31, 2016 and 2015 (in thousands): Three Months Ended March 31, 2016 2015 Beginning balance $ 652 $ 952 Charged to cost of revenue 137 171 Claims and settlements (160 ) (161 ) Ending balance $ 629 $ 962 Performance Bonds In the normal course of operations, from time to time, the Company arranges for the issuance of various types of surety bonds, such as bid and performance bonds, which are agreements under which the surety company guarantees that the Company will perform in accordance with contractual or legal obligations. As of March 31, 2016, the Company did not have any outstanding surety bonds. Purchase Commitments The Company has agreements with various contract manufacturers which include non-cancellable inventory purchase commitments. The amount of non-cancellable purchase commitments outstanding was $5.7 million as of March 31, 2016 . Royalties The Company has certain royalty commitments associated with the shipment and licensing of certain products. Royalty expense is generally based on a dollar amount per unit shipped or a percentage of the underlying revenue and is recorded in cost of revenue. Legal Proceedings The Company is subject to various legal proceedings, claims and litigation arising in the ordinary course of business. While the outcome of these matters is currently not determinable, the Company does not expect that the ultimate costs to resolve these matters will have a material adverse effect on its consolidated financial position or results of operations. However, litigation is subject to inherent uncertainties, and unfavorable rulings could occur. If an unfavorable ruling were to occur, there exists the possibility of a material adverse impact on the results of operations of the period in which the ruling occurs, or future periods. |
Enterprise-Wide Information
Enterprise-Wide Information | 3 Months Ended |
Mar. 31, 2016 | |
Segment Reporting [Abstract] | |
Enterprise-Wide Information | Enterprise-Wide Information The Company designs, develops and manufactures communications network equipment for enterprises and telecommunications operators worldwide. The Company derives substantially all of its revenues from the sales of the Zhone product family. The Company’s chief operating decision maker is the Company’s Chief Executive Officer. The Chief Executive Officer reviews financial information presented on a consolidated basis accompanied by disaggregated information about revenues by geographic region for purposes of making operating decisions and assessing financial performance. The Company has determined that it has operated within one discrete reportable business segment since inception. The following summarizes required disclosures about geographic concentrations and revenue by products and services (in thousands): Three Months Ended March 31, 2016 2015 Revenue by Geography: United States $ 8,440 $ 9,124 Canada 960 1,038 Total North America 9,400 10,162 Latin America 4,603 6,297 Europe, Middle East, Africa 5,819 9,220 Asia Pacific 777 1,443 Total International 11,199 16,960 $ 20,599 $ 27,122 Three Months Ended March 31, 2016 2015 Revenue by Products and Services: Products $ 18,968 $ 25,570 Services 1,631 1,552 Total $ 20,599 $ 27,122 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The total amount of unrecognized tax benefits, including interest and penalties, at March 31, 2016 was not material. The amount of tax benefits that would impact the effective income tax rate, if recognized, is not expected to be material. There were no significant changes to unrecognized tax benefits during the quarters ended March 31, 2016 and 2015 . The Company does not anticipate any significant changes with respect to unrecognized tax benefits within the next 12 months. The Company or one of its subsidiaries files income tax returns in the U.S. federal jurisdiction, and various state and foreign jurisdictions. The open tax years for the major jurisdictions are as follows: • Federal 2012 –2015 • California and Canada 2011 – 2015 • Brazil 2010 – 2015 • Germany 2008 – 2015 • United Kingdom 2011 – 2015 However, due to the fact the Company had net operating losses and credits carried forward in most jurisdictions, certain items attributable to technically closed years are still subject to adjustment by the relevant taxing authority through an adjustment to tax attributes carried forward to open years. The Company estimates that its foreign income will generally be subject to taxation in the United States on a current basis and that its foreign subsidiaries and representative offices will therefore not have any material untaxed earnings subject to deferred taxes. In addition, to the extent the Company is deemed to have a sufficient connection to a particular taxing jurisdiction to enable that jurisdiction to tax the Company but the Company has not filed an income tax return in that jurisdiction for the year(s) at issue, the jurisdiction would typically be able to assert a tax liability for such years without limitation on the number of years it may examine. The Company is not currently under examination for income taxes in any material jurisdiction. |
Organization and Summary of S15
Organization and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The condensed consolidated financial statements are unaudited and reflect all adjustments (consisting only of normal recurring adjustments) that, in the opinion of management, are necessary for a fair presentation of the results for the interim periods presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”). All significant inter-company transactions and balances have been eliminated in consolidation. The results of operations for the current interim period are not necessarily indicative of results to be expected for the current year or any other period. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015. |
Use of Estimates | Use of Estimates The preparation of the condensed consolidated financial statements in conformity with generally accepted accounting principles in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ materially from those estimates. |
Revenue Recognition | Revenue Recognition The Company recognizes revenue when the earnings process is complete. The Company recognizes product revenue upon shipment of product under contractual terms which transfer title to customers upon shipment, under normal credit terms, net of estimated sales returns and allowances at the time of shipment. Revenue is deferred if there are significant post-delivery obligations or if the fees are not fixed or determinable. When significant post-delivery obligations exist, revenue is deferred until such obligations are fulfilled. The Company’s arrangements generally do not have any significant post-delivery obligations. If the Company’s arrangements include customer acceptance provisions, revenue is recognized upon obtaining the signed acceptance certificate from the customer, unless the Company can objectively demonstrate that the delivered products or services meet all the acceptance criteria specified in the arrangement prior to obtaining the signed acceptance. In those instances where revenue is recognized prior to obtaining the signed acceptance certificate, the Company uses successful completion of customer testing as the basis to objectively demonstrate that the delivered products or services meet all the acceptance criteria specified in the arrangement. The Company also considers historical acceptance experience with the customer, as well as the payment terms specified in the arrangement, when revenue is recognized prior to obtaining the signed acceptance certificate. When collectability is not reasonably assured, revenue is recognized when cash is collected. The Company makes certain sales to product distributors. These customers are given certain privileges to return a portion of inventory. Return privileges generally allow distributors to return inventory based on a percent of purchases made within a specific period of time. The Company recognizes revenue on sales to distributors that have contractual return rights when the products have been sold by the distributors, unless there is sufficient customer specific sales and sales returns history to support revenue recognition upon shipment. In those instances when revenue is recognized upon shipment to distributors, the Company uses historical rates of return from the distributors to provide for estimated product returns. The Company derives revenue primarily from stand-alone sales of its products. In certain cases, the Company’s products are sold along with services, which include education, training, installation, and/or extended warranty services. As such, some of the Company’s sales have multiple deliverables. The Company’s products and services qualify as separate units of accounting and are deemed to be non-contingent deliverables as the Company’s arrangements typically do not have any significant performance, cancellation, termination and refund type provisions. Products are typically considered delivered upon shipment. Revenue from services is recognized ratably over the period during which the services are to be performed. For multiple deliverable revenue arrangements, the Company allocates revenue to products and services using the relative selling price method to recognize revenue when the revenue recognition criteria for each deliverable are met. The selling price of a deliverable is based on a hierarchy and if the Company is unable to establish vendor-specific objective evidence of selling price (“VSOE”) it uses third-party evidence of selling price (“TPE”), and if no such data is available, it uses a best estimated selling price (“BSP”). In most instances, particularly as it relates to products, the Company is not able to establish VSOE for all deliverables in an arrangement with multiple elements. This may be due to infrequently selling each element separately, not pricing products within a narrow range, or only having a limited sales history. When VSOE cannot be established, the Company attempts to establish the selling price of each element based on TPE. Generally, the Company’s marketing strategy differs from that of the Company’s peers and the Company’s offerings contain a significant level of customization and differentiation such that the comparable pricing of products with similar functionality cannot be obtained. Furthermore, the Company is unable to reliably determine what similar competitor products’ selling prices are on a stand-alone basis. Therefore, the Company is typically not able to determine TPE for the Company’s products. When the Company is unable to establish selling price using VSOE or TPE, the Company uses BSP. The objective of BSP is to determine the price at which the Company would transact a sale if the product or service were sold on a stand-alone basis. The BSP of each deliverable is determined using average discounts from list price from historical sales transactions or cost plus margin approaches based on the factors, including but not limited to, the Company’s gross margin objectives and pricing practices plus customer and market specific considerations. The Company has established TPE for its training, education and installation services. TPE is determined based on competitor prices for similar deliverables when sold separately. These service arrangements are typically short term in nature and are largely completed shortly after delivery of the product. Training and education services are based on a daily rate per person and vary according to the type of class offered. Installation services are based on daily rate per person and vary according to the complexity of the products being installed. Extended warranty services are priced based on the type of product and are sold in one to five year durations. Extended warranty services include the right to warranty coverage beyond the standard warranty period. In substantially all of the arrangements with multiple deliverables pertaining to arrangements with these services, the Company has used and intends to continue using VSOE to determine the selling price for the services. The Company determines VSOE based on its normal pricing practices for these specific services when sold separately. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company had no financial assets and liabilities as of March 31, 2016 and December 31, 2015 recorded at fair value. The following financial instruments are not measured at fair value on the Company’s condensed consolidated balance sheet as of March 31, 2016 and December 31, 2015 , but require disclosure of their fair values: cash and cash equivalents, accounts receivable, accounts payable, accrued liabilities, and debt. The estimated fair value of such instruments at March 31, 2016 and December 31, 2015 approximated their carrying value as reported on the condensed consolidated balance sheet. The fair value of such financial instruments is determined using the income approach based on the present value of estimated future cash flows. The fair value of these instruments would be categorized as Level 2 in the fair value hierarchy, with the exception of cash and cash equivalents, which would be categorized as Level 1. |
Concentration of Risk | Concentration of Risk The Company’s customers include competitive and incumbent local exchange carriers, competitive access providers, Internet service providers, wireless carriers and resellers serving these markets. The Company performs ongoing credit evaluations of its customers and generally does not require collateral. Allowances are maintained for potential doubtful accounts. |
Comprehensive Income (Loss) | Comprehensive Loss There have been no items reclassified out of accumulated other comprehensive loss and into net loss. The Company’s other comprehensive loss for the three months ended March 31, 2016 and 2015 is comprised of only foreign exchange translation adjustments. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements On May 28, 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09, "Revenue from Contracts with Customers", which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The standard permits the use of either the retrospective or cumulative effect transition method. In August 2015, the FASB issued ASU 2015-14, which defers the effective date of the guidance in ASU No. 2014-09, Revenue from Contracts with Customer, for all entities by one year. With the deferral, the new standard is effective for the Company on January 1, 2018. Early adoption is permitted, but not before the original effective date of January 1, 2017. The Company is evaluating the effect that ASU 2014-09 will have on its consolidated financial statements and related disclosures. The Company has not yet selected a transition method nor has it determined the effect of the standard on its ongoing financial reporting. In August 2014, the FASB issued ASU No. 2014-15, "Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern", which describes how an entity should assess its ability to meet obligations and sets rules for how this information should be disclosed in financial statements. The new standard is effective for the Company on January 1, 2017. Early application is permitted. The Company is evaluating the effect that ASU 2014-15 will have on its consolidated financial statements and related disclosures. In July 2015, the FASB issued ASU No. 2015-11, "Simplifying the Measurement of Inventory", which requires an entity to measure inventory at the lower of cost and net realizable value. The guidance does not apply to inventory that is measured using last-in, first-out ("LIFO") or the retail inventory method. The guidance applies to all other inventory, which includes inventory that is measured using first-in, first-out ("FIFO") or average cost. The guidance is effective for the Company on January 1, 2017. ASU No. 2015-11 should be applied prospectively with earlier application permitted as of the beginning of an interim or annual reporting period. The Company is evaluating the effect that ASU 2015-11 will have on its consolidated financial statements and related disclosures. In February 2016, the FASB issued ASU 2016-02, "Leases". ASU 2016-02 requires that lease arrangements longer than 12 months result in an entity recognizing an asset and liability. The updated guidance is effective for the Company on January 1, 2019, and early adoption is permitted. The Company has not yet evaluated the impact of the guidance on its consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, "Improvements to Employee Share-Based Payment Accounting", which requires entities to simplify several aspects of the accounting for share-based payment transactions, including income tax consequences, classification of awards as either equity or liabilities, and classification on statement of cash flows. The guidance is effective for the Company on January 1, 2017, and early adoption is permitted. The Company has not yet evaluated the impact of the guidance on its consolidated financial statements. |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories as of March 31, 2016 and December 31, 2015 were as follows (in thousands): March 31, December 31, Raw materials $ 9,240 $ 9,764 Work in process 1,413 1,273 Finished goods 3,923 3,765 $ 14,576 $ 14,802 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | Property and equipment, net, as of March 31, 2016 and December 31, 2015 were as follows (in thousands): March 31, December 31, Machinery and equipment $ 10,807 $ 10,783 Computers and acquired software 3,911 3,911 Furniture and fixtures 124 124 Leasehold improvements 2,936 1,920 17,778 16,738 Less accumulated depreciation and amortization (15,555 ) (15,380 ) $ 2,223 $ 1,358 |
Net Income (Loss) Per Share (Ta
Net Income (Loss) Per Share (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share [Abstract] | |
Reconciliation of Numerator and Denominator of Basic and Diluted Net Income (Loss) Per Share | The following table is a reconciliation of the numerator and denominator in the basic and diluted net loss per share calculation (in thousands, except per share data): Three Months Ended March 31, 2016 2015 Net loss: $ (3,432 ) $ (602 ) Weighted average number of shares outstanding: Basic 33,841 32,605 Effect of dilutive securities: Stock options and share awards — — Diluted 33,841 32,605 Net loss per share: Basic $ (0.10 ) $ (0.02 ) Diluted $ (0.10 ) $ (0.02 ) |
Potential Common Stock not Included in Diluted Net Income (Loss) Per Share Calculation | The following tables set forth potential common stock that is not included in the diluted net loss per share calculation because their effect would be antidilutive for the periods indicated (in thousands, except exercise price per share data): Three Months Ended March 31, 2016 Weighted Average Exercise Price Outstanding stock options and unvested restricted shares 2,183 $ 1.83 Three Months Ended March 31, 2015 Weighted Average Exercise Price Outstanding stock options and unvested restricted shares 5,618 $ 1.86 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Estimated Future Lease Payments under All Non Cancelable Operating Leases | Estimated future lease payments under all non-cancelable operating leases with terms in excess of one year, including taxes and service fees, are as follows (in thousands): Operating Leases Year ending December 31: 2016 (remainder of the year) $ 876 2017 1,280 2018 995 2019 523 2020 and thereafter 4,130 Total minimum lease payments $ 7,804 |
Reconciliation of Changes in Accrued Warranties and Related Costs | The following table reconciles changes in the Company’s accrued warranties and related costs for the three months ended March 31, 2016 and 2015 (in thousands): Three Months Ended March 31, 2016 2015 Beginning balance $ 652 $ 952 Charged to cost of revenue 137 171 Claims and settlements (160 ) (161 ) Ending balance $ 629 $ 962 |
Enterprise-Wide Information (Ta
Enterprise-Wide Information (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Segment Reporting [Abstract] | |
Revenue by Geography | The following summarizes required disclosures about geographic concentrations and revenue by products and services (in thousands): Three Months Ended March 31, 2016 2015 Revenue by Geography: United States $ 8,440 $ 9,124 Canada 960 1,038 Total North America 9,400 10,162 Latin America 4,603 6,297 Europe, Middle East, Africa 5,819 9,220 Asia Pacific 777 1,443 Total International 11,199 16,960 $ 20,599 $ 27,122 |
Revenue by Products and Services | Three Months Ended March 31, 2016 2015 Revenue by Products and Services: Products $ 18,968 $ 25,570 Services 1,631 1,552 Total $ 20,599 $ 27,122 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Open Tax Years for Major Jurisdictions | The Company or one of its subsidiaries files income tax returns in the U.S. federal jurisdiction, and various state and foreign jurisdictions. The open tax years for the major jurisdictions are as follows: • Federal 2012 –2015 • California and Canada 2011 – 2015 • Brazil 2010 – 2015 • Germany 2008 – 2015 • United Kingdom 2011 – 2015 |
Organization and Summary of S22
Organization and Summary of Significant Accounting Policies - Additional Information (Detail) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2016USD ($)customer | Mar. 31, 2015USD ($)customer | Dec. 31, 2015USD ($)customer | Dec. 31, 2014USD ($) | |
Significant Accounting Policies [Line Items] | ||||
Net loss | $ 3,432 | $ 602 | $ 2,000 | |
Cash and cash equivalents | 9,330 | $ 11,343 | 10,113 | $ 11,528 |
Line of credit | $ 2,000 | $ 5,000 | ||
Minimum | ||||
Significant Accounting Policies [Line Items] | ||||
Extended product warranty, term | 1 year | |||
Maximum | ||||
Significant Accounting Policies [Line Items] | ||||
Extended product warranty, term | 5 years | |||
Net Revenue | ||||
Significant Accounting Policies [Line Items] | ||||
Number of customers | customer | 3 | 3 | ||
Net Revenue | Customer Concentration Risk | Three major customers | ||||
Significant Accounting Policies [Line Items] | ||||
Percentage of net revenue | 35.00% | 34.00% | ||
Accounts Receivable | ||||
Significant Accounting Policies [Line Items] | ||||
Number of customers | customer | 3 | 3 | ||
Accounts Receivable | Customer Concentration Risk | Three major customers | ||||
Significant Accounting Policies [Line Items] | ||||
Percentage of net revenue | 42.00% | 44.00% | ||
Other than the United States | Accounts Receivable | Geographic Concentration Risk | ||||
Significant Accounting Policies [Line Items] | ||||
Percentage of net revenue | 82.00% | 83.00% |
Merger Agreement (Details)
Merger Agreement (Details) - Subsequent Event - Merger Agreement with Dragon Acquisition Company | Apr. 11, 2016USD ($) |
Business Acquisition [Line Items] | |
Percent of voting interest acquired | 58.00% |
Voting interest retained by existing shareholders | 42.00% |
Scenario, Forecast | |
Business Acquisition [Line Items] | |
Termination fee | $ 2,500,000 |
Transaction expense reimbursement | $ 5,000,000 |
Inventories (Detail)
Inventories (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 9,240 | $ 9,764 |
Work in process | 1,413 | 1,273 |
Finished goods | 3,923 | 3,765 |
Inventories | $ 14,576 | $ 14,802 |
Property and Equipment, Net (De
Property and Equipment, Net (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Property, Plant and Equipment [Abstract] | ||
Machinery and equipment | $ 10,807 | $ 10,783 |
Computers and acquired software | 3,911 | 3,911 |
Furniture and fixtures | 124 | 124 |
Leasehold improvements | 2,936 | 1,920 |
Property and equipment, Gross, Total | 17,778 | 16,738 |
Less accumulated depreciation and amortization | (15,555) | (15,380) |
Property and equipment, net | $ 2,223 | $ 1,358 |
Property and Equipment, Net -
Property and Equipment, Net - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation and amortization associated with property and equipment | $ 191 | $ 210 |
Net Income (Loss) Per Share - R
Net Income (Loss) Per Share - Reconciliation of Numerator and Denominator of Basic and Diluted Net Income (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |||
Net income (loss): | $ (3,432) | $ (602) | $ (2,000) |
Weighted average number of shares outstanding: | |||
Basic, in shares | 33,841 | 32,605 | |
Effect of dilutive securities: | |||
Stock options and share awards | 0 | 0 | |
Diluted, in shares | 33,841 | 32,605 | |
Basic, in dollars per share | $ (0.10) | $ (0.02) | |
Diluted, in dollars per share | $ (0.10) | $ (0.02) |
Net Income (Loss) Per Share -
Net Income (Loss) Per Share - Potential Common Stock not Included in Diluted Net Income (Loss) Per Share Calculation (Details) - Outstanding stock options and unvested restricted shares - $ / shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of loss per share calculation, shares | 2,183 | 5,618 |
Weighted average exercise price of outstanding stock options and unvested restricted shares, in dollars per share | $ 1.83 | $ 1.86 |
Debt - Additional Information
Debt - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Debt Disclosure [Abstract] | |
WFB credit facility, maximum borrowing capacity | $ 25,000,000 |
WFB credit facility, current borrowing base | $ 9,700,000 |
WFB credit facility, commitment fee on unused capacity, percentage | 0.25% |
WFB credit facility, outstanding amount | $ 2,000,000 |
WFB credit facility, commitment as security for various letters of credit | 3,300,000 |
WFB credit facility, unused borrowing availability | $ 4,400,000 |
WFB credit facility, interest rate | 2.93% |
Commitments and Contingencies -
Commitments and Contingencies - Estimated Future Lease Payments under All Non-Cancelable Operating Leases (Details) $ in Thousands | Mar. 31, 2016USD ($) |
Operating leases | |
2016 (remainder of the year) | $ 876 |
2,017 | 1,280 |
2,018 | 995 |
2,019 | 523 |
2020 and thereafter | 4,130 |
Total minimum lease payments | $ 7,804 |
Commitments and Contingencies
Commitments and Contingencies - Additional Information (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
Product warranty period from the date of shipment | 1 year |
Amount of non-cancellable purchase commitments outstanding | $ 5.7 |
Commitments and Contingencies32
Commitments and Contingencies - Reconciliation of Changes in Accrued Warranties and Related Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Beginning balance | $ 652 | $ 952 |
Charged to cost of revenue | 137 | 171 |
Claims and settlements | (160) | (161) |
Ending balance | $ 629 | $ 962 |
Enterprise-Wide Information - R
Enterprise-Wide Information - Revenue by Geography (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Revenue from External Customer [Line Items] | ||
Net revenue | $ 20,599 | $ 27,122 |
United States | ||
Revenue from External Customer [Line Items] | ||
Net revenue | 8,440 | 9,124 |
Canada | ||
Revenue from External Customer [Line Items] | ||
Net revenue | 960 | 1,038 |
Total North America | ||
Revenue from External Customer [Line Items] | ||
Net revenue | 9,400 | 10,162 |
Latin America | ||
Revenue from External Customer [Line Items] | ||
Net revenue | 4,603 | 6,297 |
Europe, Middle East, Africa | ||
Revenue from External Customer [Line Items] | ||
Net revenue | 5,819 | 9,220 |
Asia Pacific | ||
Revenue from External Customer [Line Items] | ||
Net revenue | 777 | 1,443 |
Total International | ||
Revenue from External Customer [Line Items] | ||
Net revenue | $ 11,199 | $ 16,960 |
Enterprise-Wide Information -
Enterprise-Wide Information - Revenue by Products and Services (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Revenue from External Customer [Line Items] | ||
Net revenue | $ 20,599 | $ 27,122 |
Products | ||
Revenue from External Customer [Line Items] | ||
Net revenue | 18,968 | 25,570 |
Services | ||
Revenue from External Customer [Line Items] | ||
Net revenue | $ 1,631 | $ 1,552 |
Income Taxes (Detail)
Income Taxes (Detail) | 3 Months Ended |
Mar. 31, 2016 | |
Federal | Minimum | |
Income Taxes [Line Items] | |
Open tax years | 2,012 |
Federal | Maximum | |
Income Taxes [Line Items] | |
Open tax years | 2,015 |
California and Canada | Minimum | |
Income Taxes [Line Items] | |
Open tax years | 2,011 |
California and Canada | Maximum | |
Income Taxes [Line Items] | |
Open tax years | 2,015 |
Brazil | Minimum | |
Income Taxes [Line Items] | |
Open tax years | 2,010 |
Brazil | Maximum | |
Income Taxes [Line Items] | |
Open tax years | 2,015 |
Germany | Minimum | |
Income Taxes [Line Items] | |
Open tax years | 2,008 |
Germany | Maximum | |
Income Taxes [Line Items] | |
Open tax years | 2,015 |
United Kingdom | Minimum | |
Income Taxes [Line Items] | |
Open tax years | 2,011 |
United Kingdom | Maximum | |
Income Taxes [Line Items] | |
Open tax years | 2,015 |