Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | May 07, 2018 | |
Document Information [Line Items] | ||
Entity Registrant Name | PDF SOLUTIONS INC | |
Entity Central Index Key | 1,120,914 | |
Trading Symbol | pdfs | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Entity Common Stock, Shares Outstanding (in shares) | 31,975,853 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 98,522 | $ 101,267 |
Accounts receivable, net of allowance of $374 in both 2018 and in 2017 | 58,436 | 57,564 |
Prepaid expenses and other current assets | 9,654 | 5,069 |
Total current assets | 166,612 | 163,900 |
Property and equipment, net | 26,536 | 25,386 |
Goodwill | 1,923 | 1,923 |
Intangible assets, net | 5,821 | 6,074 |
Deferred tax assets | 15,896 | 16,348 |
Other non-current assets | 9,752 | 10,545 |
Total assets | 226,540 | 224,176 |
Current liabilities: | ||
Accounts payable | 2,588 | 2,536 |
Accrued compensation and related benefits | 5,322 | 6,493 |
Accrued and other current liabilities | 2,151 | 2,627 |
Deferred revenues – current portion | 8,474 | 7,981 |
Total current liabilities | 18,535 | 19,637 |
Long-term income taxes payable | 4,824 | 3,902 |
Other non-current liabilities | 1,122 | 2,269 |
Total liabilities | 24,481 | 25,808 |
Commitments and contingencies (Note 9) | ||
Stockholders’ equity: | ||
Preferred stock, $0.00015 par value, 5,000 shares authorized, no shares issued and outstanding | 0 | 0 |
Common stock, $0.00015 par value, 70,000 shares authorized: shares issued 40,026 and 39,799, respectively; shares outstanding 31,964 and 32,112, respectively | 5 | 5 |
Additional paid-in-capital | 301,867 | 297,950 |
Treasury stock at cost, 8,062 and 7,688 shares, respectively | (76,473) | (71,793) |
Accumulated deficit | (23,160) | (27,089) |
Accumulated other comprehensive loss | (180) | (705) |
Total stockholders’ equity | 202,059 | 198,368 |
Total liabilities and stockholders’ equity | $ 226,540 | $ 224,176 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) shares in Thousands, $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Accounts receivable, allowance | $ 374 | |
Preferred stock, par value (in dollars per share) | $ 0.00015 | $ 0.00015 |
Preferred stock, shares authorized (in shares) | 5,000 | 5,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.00015 | $ 0.00015 |
Common stock, shares authorized (in shares) | 70,000 | 70,000 |
Common stock, shares issued (in shares) | 40,026 | 39,799 |
Common stock, shares outstanding (in shares) | 31,964 | 32,112 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Revenues: | ||
Revenues | $ 24,737 | $ 24,289 |
Costs of Design-to-silicon-yield solutions | ||
Gross profit | 13,255 | 12,858 |
Operating expenses: | ||
Research and development | 7,245 | 7,282 |
Selling, general and administrative | 6,375 | 5,899 |
Amortization of other acquired intangible assets | 109 | 92 |
Total operating expenses | 13,729 | 13,273 |
Income (loss) from operations | (474) | (415) |
Interest and other income (expense), net | (331) | (230) |
Income (loss) before income taxes | (805) | (645) |
Income tax provision (benefits) | (381) | (1,162) |
Net income (loss) | $ (424) | $ 517 |
Net income (loss) per share: | ||
Basic (in dollars per share) | $ (0.01) | $ 0.02 |
Diluted (in dollars per share) | $ (0.01) | $ 0.02 |
Weighted average common shares: | ||
Basic (in shares) | 32,168 | 31,991 |
Diluted (in shares) | 32,168 | 33,594 |
Net income (loss) | $ (424) | $ 517 |
Other comprehensive income: | ||
Foreign currency translation adjustments, net of tax | 525 | 273 |
Comprehensive income (loss) | 101 | 790 |
License and Service [Member] | ||
Revenues: | ||
Revenues | 18,190 | 19,698 |
Costs of Design-to-silicon-yield solutions | ||
Direct costs of Design-to-silicon-yield solutions | 11,338 | 11,335 |
Amortization of acquired technology | 144 | 96 |
Total cost of Design-to-silicon-yield solutions | 11,482 | 11,431 |
Gainshare Performance Incentives [Member] | ||
Revenues: | ||
Revenues | $ 6,547 | $ 4,591 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Operating activities: | ||
Net income (loss) | $ (424) | $ 517 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 1,261 | 1,091 |
Stock-based compensation expense | 2,856 | 2,884 |
Amortization of acquired intangible assets | 253 | 188 |
Deferred taxes | 117 | (580) |
Loss on disposal of property and equipment | 3 | |
Unrealized loss (gain) on foreign currency forward contract | 58 | 92 |
Changes in operating assets and liabilities: | ||
Accounts receivable, net of allowance | (80) | (1,931) |
Prepaid expenses and other current assets | (2,183) | (1,395) |
Accounts payable | 497 | 476 |
Accrued compensation and related benefits | (1,278) | (1,040) |
Accrued and other liabilities | (532) | (587) |
Deferred revenues | 1,906 | 1,734 |
Billings in excess of recognized revenues | 112 | |
Other non-current assets | 798 | (1,977) |
Net cash (used in) provided by operating activities | 3,252 | (416) |
Investing activities: | ||
Purchases of property and equipment | (2,447) | (2,313) |
Net cash used in investing activities | (2,447) | (2,313) |
Financing activities: | ||
Proceeds from exercise of stock options | 39 | 717 |
Repurchases of common stock | (4,123) | |
Proceeds from employee stock purchase plan | 1,007 | 909 |
Payments for taxes related to net share settlement of equity awards | (556) | (844) |
Net cash (used in) provided by financing activities | (3,633) | 782 |
Effect of exchange rate changes on cash and cash equivalents | 83 | 86 |
Net change in cash and cash equivalents | (2,745) | (1,861) |
Cash and cash equivalents, beginning of period | 101,267 | 116,787 |
Cash and cash equivalents, end of period | 98,522 | 114,926 |
Supplemental disclosure of cash flow information: | ||
Taxes | 622 | 681 |
Property and equipment received and accrued in accounts payable and accrued and other liabilities | $ 1,185 | $ 885 |
Note 1 - Basis of Presentation
Note 1 - Basis of Presentation and Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2018 | |
Notes to Financial Statements | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | 1. AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The interim unaudited condensed consolidated financial statements included herein have been prepared by PDF Solutions, Inc. (the “Company”) pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”), including the instructions to the Quarterly Report on Form 10 10 X. not may 10 December 31, 2017. The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries after the elimination of all intercompany balances and transactions. The condensed consolidated balance sheet at December 31, 2017, not Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles in the United States (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates in these financial statements include significant estimates and judgments made in recognizing revenue, accounting for goodwill and intangible assets, stock-based compensation expense and accounting for income taxes. Actual results could differ from those estimates. For a discussion of significant estimates and judgments made in recognizing revenue under the new revenue standard, see Note 2. Recent Accounting Pronouncements – Recently Adopted Accounting Standards In May 2014, No. 2014 09, 606 605 606, five first first 2018. 2. In August 2016, No. 2016 15, 230 December 15, 2017, January 1, 2018 not In November 2016, No. 2016 18, 230 December 15, 2017, January 1, 2018, not In January 2017, No. 2017 01, December 15, 2017. January 1, 2018, not In May 2017, No. 2017 09, 718 718. December 15, 2017. January 1, 2018, not Accounting Standards Not In February 2016, No. 2016 02, 842 December 15, 2018, In January 2017, No. 2017 04, 350 2 December 15, 2019, not In February 2018, No. 2018 02, 220 December 2017. December 15, 2018 not In March 2018, 2018 05, 740 No. 118". December 22, 2017 118 118 740 not one 5, |
Note 2 - Revenue Recognition
Note 2 - Revenue Recognition | 3 Months Ended |
Mar. 31, 2018 | |
Notes to Financial Statements | |
Revenue from Contract with Customer [Text Block] | 2. On January 1, 2018, 606, not January 1, 2018. 2018 606 not The Company also considered the impact of subtopic ASC 340 40. 606, 340 40, The most significant impacts of the adoption of Topic 606 ● At the adoption date, the Company recorded a net decrease of $4.4 606 605, $0.8 $1.9 $2.5 $0.5 ● For fiscal 2018, 606 605. 605 2018 first 2018 not The adoption of Topic 606 may 605 606 605. In addition, under the Company’s previous accounting practices, revenue was recognized from Gainshare performance incentive agreements in the period of receipt of related Gainshare acknowledgement reports, generally one 606, not Under Topic 605, 606 The following table summarizes the effects of adopting Topic 606 March 31, 2018: As reported under Topic 606 Adjustments Balances under Topic 605 (In thousands) Accounts receivable, net of allowance $ 58,436 $ 764 $ 59,200 Prepaid expenses and other current assets 9,654 (3,959 ) 5,695 Deferred tax assets 15,896 316 16,212 Other non-current assets 9,752 (289 ) 9,463 Deferred revenues – current portion 8,474 1,348 9,822 Long-term income taxes payable 4,824 (1,032 ) 3,792 Other non-current liabilities 1,122 899 2,021 Accumulated deficit (23,160 ) (4,383 ) (27,543 ) The impact of adopting Topic 606 three March 31, 2018 not no The Company’s net cash provided by operating activities for the three March 31, 2018 not 606. 606 three March 31, 2018: As reported under Topic 606 Adjustments Balances under Topic 605 (In thousands) Net income $ (424 ) $ (30 ) $ (454 ) Changes in operating assets and liabilities: Accounts receivable, net of allowance (80 ) (1,556 ) (1,636 ) Prepaid expenses and other current assets (2,183 ) 1,569 (614 ) Other non-current assets 798 288 1,086 Deferred revenue 1,906 (271 ) 1,635 The Company derives revenue from two Revenue is recognized when control of products or services is transferred to customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those promised products or services. The Company determines revenue recognition through the following five ● Identification of the contract, or contracts, with a customer ● Identification of the performance obligations in the contract ● Determination of the transaction price ● Allocation of the transaction price to the performance obligations in the contract ● Recognition of revenue when, or as, performance obligations are satisfied The Company accounts for a contract when it has approval and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance and collectability of consideration is probable. The Company enters into contracts that can include various combinations of licenses, products and services, some of which are distinct and are accounted for as separate performance obligations. For contracts with multiple performance obligations, the Company allocates the transaction price of the contract to each performance obligation, generally on a relative basis using its standalone selling price. Nature of Products and Services Design-to-silicon-yield solutions — The Company recognizes revenue for each element of Design-to-silicon-yield solutions as follows: The Company generates a significant portion of its Design-to-silicon-yield solutions revenue from fixed-price solution implementation service contracts delivered over a specific period of time. Revenue under project–based contracts for solution implementation services is recognized as services are performed using a percentage of completion method based on costs or labor-hours inputs, whichever is the most appropriate measure of the progress towards completion of the contract. Due to the nature of the work performed in these arrangements, the estimation of costs or hours at completion is complex, subject to many variables and requires significant judgment. Key factors reviewed by the Company to estimate costs to complete each contract are future labor and product costs and expected productivity efficiencies. If circumstances arise that change the original estimates of revenues, costs, or extent of progress toward completion, revisions to the estimates are made. These revisions may On occasion, the Company includes its products as a component of its fixed-price service contracts. In such instances, the Company determines whether the services performed and products included, are distinct. In most cases, the arrangement is a single performance obligation and therefore follows the pattern of transfer as the service is provided. The Company applies a measure of progress (typically hours-to-hours or cost-to-cost) to any fixed consideration. As a result, revenue is generally recognized over the period the services are performed using percentage of completion method. This results in revenue recognition that corresponds with the value to the client of the services transferred to date relative to the remaining services promised. The Company also license our Design-for-Inspection (DFI) system as a separate component of fixed-price service contracts. The Company allocates revenue to all deliverables based on their standalone selling prices, or SSP. In such instances, the Company applies judgment to estimate the range of SSPs for each performance obligation. The Company licenses some of its software products separately from solution implementations, primarily its Exensio big data platform and related products. The majority of these products are delivered as on-premise software licenses, while others can be delivered entirely or partially through Software-as-a-Service (SaaS) or cloud delivery models. Revenue from perpetual ( one Gainshare Performance Incentives — When the Company enters into a contract to provide yield improvement services, the contract usually includes two 1 2 Disaggregation of revenue In accordance with ASC 606 10 50, The following table shows the revenues from contracts with customers by the nature of transactions for the three March 31, 2018: March 31 , 2018 Product and licenses $ 7,487 Support and Services 16,989 Other 261 Total $ 24,737 Product and licenses include a portion of time-based software, perpetual software which is recognized in the period and Gainshare performance incentives. The remaining portions of revenue from these contracts correspond to services or other types of performance obligations are reported as either services revenue or other revenue. Under Topic 606, 69% 31%, three March 31, 2018. 59% three March 31, 2018 53% three March 31, 2017. 7. Significant Judgments More judgments and estimates are required under Topic 606 605. 606 may may In services arrangements, the Company typically satisfies the performance obligation and recognizes revenue over time. In Design-to-silicon-yield service arrangements, the performance obligation is satisfied over time either because the client controls the asset as it is created (e.g., when the asset is built at the customer site) or because the Company’s performance does not For revenue under project–based contracts for fixed-price solution implementation services, revenue is recognized as services are performed using a percentage-of-completion method based on costs or labor-hours input method, whichever is the most appropriate measure of the progress towards completion of the contract. Due to the nature of the work performed in these arrangements, the estimation of percentage of completion method is complex, subject to many variables and requires significant judgment. Key factors reviewed by the Company to estimate costs to complete each contract are future labor and product costs and expected productivity efficiencies. If circumstances arise that change the original estimates of revenues, costs, or extent of progress toward completion, revisions to the estimates are made. These revisions may The Company’s contracts with customers often include promises to transfer products, licenses and services, including professional services, technical support services, and rights to unspecified updates to a customer. Determining whether products, licenses and services are distinct performance obligations that should be accounted for separately, or not not not may one may The Company is required to record Gainshare royalty revenue in the same period in which the usage occurs. Because the Company generally does not Contract Balances The Company performs its obligation under a contract with a customer by transferring products or services in exchange for consideration from the customer. The timing of the Company’s performance often differs from the timing of the customer’s payment, which results in the recognition of a receivable, a contract asset or a contract liability. The Company classifies the right to consideration in exchange for products or services transferred to a client as either a receivable or a contract asset. A receivable is a right to consideration that is unconditional as compared to a contract asset which is a right to consideration that is conditional upon factors other than the passage of time. The majority of the Company’s contract assets represent unbilled amounts related to fixed-price solution implementation service contracts when the costs or labor-hours input method of revenue recognition is utilized and revenue recognized exceeds the amount billed to the client, and the right to consideration is subject to milestone completion or client acceptance. The contract assets are generally classified as current and are recorded on a net basis with deferred revenue (i.e., contract liabilities) at the contract level. The contract assets is included in prepaid expenses and other in the condensed consolidated balance sheets. At March 31, 2018 January 1, 2018, $3.7 $1.9 twelve $0.5 $0.9 March 31, 2018 January 1, 2018. During the three March 31, 2018, $2.6 606, At March 31, 2018, $45.0 2 5 not not one Payment terms and conditions vary by contract type, although terms generally include a requirement of payment within 30 90 not not The amount of revenue recognized in the three March 31, 2018 $0.5 Costs to obtain or fulfill a contract The Company capitalizes the incremental costs to obtain or fulfill a contract with a customer, including direct sales commissions and related fees, when it expects to recover those costs. As a result, these costs will need to be capitalized and amortized over an appropriate period, which may not not March 31, 2018 $0.5 $0.1 three March 31, 2018. no no no $0.5 $0.6 March 31, 2018 December 31, 2017, |
Note 3 - Balance Sheet Componen
Note 3 - Balance Sheet Components | 3 Months Ended |
Mar. 31, 2018 | |
Notes to Financial Statements | |
Supplemental Balance Sheet Disclosures [Text Block] | 3 . BALANCE SHEET COMPONENTS Accounts receivable include amounts that are unbilled at the end of the period that are expected to be billed and collected within 12 $23.1 $22.2 March 31, 2018, December 31, 2017, not 12 $7.7 $8.6 March 31, 2018, December 31, 2017, Property and equipment, net consists of (in thousands): March 31 , 201 8 December 31, 2017 Property and equipment, net: Computer equipment $ 10,725 $ 10,729 Software 3,391 3,348 Furniture, fixtures and equipment 4,102 3,676 Leasehold improvements 2,025 1,980 Test equipment 14,209 13,796 Construction-in-progress 13,761 12,527 48,213 46,056 Less: accumulated depreciation (21,677 ) (20,670 ) Total $ 26,536 $ 25,386 Test equipment includes DFI assets at customer sites that are contributing to DFI solution revenues. The construction-in-progress balance as of March 31, 2018 December 31, 2017 $1.3 $1.1 three March 31, 2018 2017, As of both March 31, 2018, December 31, 2017, $1.9 Intangible assets balance was $5.8 $6.1 March 31, 2018, December 31, 2017, March 31, 2018 December 31, 2017 March 31, 2018 December 31, 2017 Amortization Period (Years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Acquired identifiable intangibles: Customer relationships 1 - 9 $ 6,740 $ (4,237 ) $ 2,503 $ 6,740 $ (4,145 ) $ 2,595 Developed technology 4 - 6 15,820 (12,974 ) 2,846 15,820 (12,829 ) 2,991 Tradename 2 - 4 790 (628 ) 162 790 (622 ) 168 Backlog 1 100 (100 ) - 100 (100 ) - Patent 7 - 10 1,800 (1,490 ) 310 1,800 (1,480 ) 320 Other acquired intangibles 4 255 (255 ) - 255 (255 ) - Total $ 25,505 $ (19,684 ) $ 5,821 $ 25,505 $ (19,431 ) $ 6,074 The weighted average amortization period for acquired identifiable intangible assets was 6.52 March 31, 2018. three March 31, 2018, 2017, $0.3 $0.2 Year ending December 31 , Amount 2018 (remaining nine months) $ 757 2019 1,009 2020 1,009 2021 833 2022 626 2023 and thereafter 1,587 Total future amortization expense $ 5,821 Intangible assets are amortized over their useful lives unless these lives are determined to be indefinite. Intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not three March 31, 2018, no |
Note 4 - Stockholders' Equity
Note 4 - Stockholders' Equity | 3 Months Ended |
Mar. 31, 2018 | |
Notes to Financial Statements | |
Shareholders' Equity and Share-based Payments [Text Block] | 4 . STOCKHOLDERS’ EQUITY Stock-based compensation is estimated at the grant date based on the award’s fair value and is recognized on a straight-line basis over the vesting periods, generally four . Three Months Ended March 31, 2018 2017 Cost of Design-to-silicon-yield solutions $ 1,014 $ 1,192 Research and development 879 834 Selling, general and administrative 963 858 Stock-based compensation expenses $ 2,856 $ 2,884 On March 31, 2018, Stock Plans — November 16, 2011, 2011 2017 May 31, 2017, third 2011 “2011 2011 may 7,800,000 3,500,000 2001 2001 November 16, 2011. 1.33 no ten four In 2001, 2001 “2001 2003, 2001 2001 2011. 2001 ten four no may 2001 2001 As of March 31, 2018, 9.6 2011 4.0 2011 0.5 2001 2011 March 31, 2018. March 31, 2018, no 2011, 2001 The Company estimated the fair value of share-based awards granted under the 2011 Three Months Ended March 31, 2018 2017 Expected life (in years) 4.43 4.41 Volatility 42.22 % 40.57 % Risk-free interest rate 2.52 % 1.87 % Expected dividend — — Weighted average fair value per share of options granted during the period $ 4.28 $ 7.85 Stock option activity under the Company’s Stock Plans during the three March 31, 2018, Number of Options (in thousands) Weighted Average Exercise Price per Share Weighted Average Remaining Contractual Term (years) Aggregate Intrinsic Value (in thousands) Outstanding, January 1, 2018 1,045 $ 9.65 Granted (weighted average fair value of $4.28 per share) 10 $ 11.26 Exercised (8 ) $ 4.86 Canceled (4 ) $ 13.77 Expired (1 ) $ 20.39 Outstanding, March 31, 2018 1,042 $ 9.67 4.69 $ 3,398 Vested and expected to vest, March 31, 2018 1,024 $ 9.56 4.61 $ 3,396 Exercisable, March 31, 2018 831 $ 8.17 3.60 $ 3,378 The aggregate intrinsic value in the table above represents the total intrinsic value based on the Company’s closing stock price of $11.66 March 31, 2018. three March 31, 2018, $0.1 As of March 31, 2018, $1.0 3.1 three March 31, 2018, $0.1 Nonvested restricted stock units activity during the three March 31, 2018, Shares (in thousands) Weighted Average Grant Date Fair Value Per Share Nonvested, January 1, 2018 1,617 $ 15.66 Granted 10 $ 11.26 Vested (110 ) $ 14.41 Forfeited (48 ) $ 15.62 Nonvested, March 31, 2018 1,469 $ 15.73 As of March 31, 2018, $17.9 2.4 not Employee Stock Purchase Plan July 2001, ten 10% 85% twenty-four four six January 1 2002, 1 675,000 2 2% 3 May 18, 2010, May 17, 2020. The Company estimated the fair value of purchase rights granted under the Purchase Plan during the period using the Black-Scholes-Merton option-pricing model with the following weighted average assumptions, resulting in the following weighted average fair values: Three Months Ended March 31, 2018 2017 Expected life (in years) 1.25 1.25 Volatility 37.23 % 33.32 % Risk-free interest rate 1.93 % 0.93 % Expected dividend — — Weighted average fair value per share of options granted during the period $ 4.32 $ 6.78 During the three March 31, 2018 2017, 108,000 100,000 $9.29 $9.13 March 31, 2018, $1.7 1.83 March 31, 2018, 4.3 Stock Repurchase Program October 25, 2016, $25.0 two three March 31, 2018, 338,207 March 31, 2018, 1,180,389 $14.86 $17.5 $7.5 |
Note 5 - Income Taxes
Note 5 - Income Taxes | 3 Months Ended |
Mar. 31, 2018 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 5. Income tax benefit decreased $0.8 three March 31, 2018, $0.4 $1.2 three March 31, 2017. 47% 180% three March 31, 2018 2017, three March 31, 2018, 2017, 35% 21%, The Company’s total amount of unrecognized tax benefits, excluding interest and penalties, as of March 31, 2018, $13.4 $7.9 December 31, 2017, $12.9 $7.7 March 31, 2018, $3.0 $10.4 $5.5 The valuation allowance was approximately $9.0 $9.1 March 31, 2018, December 31, 2017, not not In December 2017, No. 118, 118 not one fourth 2017, no 2017 10 Effective January 1, 2018, 1 2 first 2018, The Company conducts business globally and, as a result, files numerous consolidated and separate income tax returns in the U.S. federal, various state and foreign jurisdictions. Because the Company used some of the tax attributes carried forward from previous years to tax years that are still open, statutes of limitation remain open for all tax years to the extent of the attributes carried forward into tax year 2002 not |
Note 6 - Net Income Per Share
Note 6 - Net Income Per Share | 3 Months Ended |
Mar. 31, 2018 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | 6 . NET INCOME PER SHARE Basic net income per share is computed by dividing net income by weighted average number of common shares outstanding for the period (excluding outstanding stock options and shares subject to repurchase). Diluted net income per share is computed using the weighted-average number of common shares outstanding for the period plus the potential effect of dilutive securities which are convertible into common shares (using the treasury stock method), except in cases in which the effect would be anti-dilutive. The following is a reconciliation of the numerators and denominators used in computing basic and diluted net income per share (in thousands except per share amount): Three Months Ended March 31, 2018 2017 Numerator: Net income (loss) $ (424 ) $ 517 Denominator: Basic weighted-average shares outstanding 32,168 31,991 Effect of dilutive options and restricted stock - 1,603 Diluted weighted average shares outstanding 32,168 33,594 Net income (loss) per share - Basic $ (0.01 ) $ 0.02 Net income (loss) per share - Diluted $ (0.01 ) $ 0.02 For the period ended March 31, 2018, no The following table sets forth potential shares of common stock that are not Three Months Ended March 31, 2018 2017 Outstanding options - 40 Nonvested restricted stock units - - Employee Stock Purchase Plan - 30 Total - 70 |
Note 7 - Customer and Geographi
Note 7 - Customer and Geographic Information | 3 Months Ended |
Mar. 31, 2018 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | 7 . CUSTOMER AND GEOGRAPHIC INFORMATION Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker, or group, in deciding how to allocate resources and in assessing performance. The Company’s chief operating decision maker, the chief executive officer, reviews discrete financial information presented on a consolidated basis for purposes of regularly making operating decisions and assessing financial performance. Accordingly, the Company considers itself to be in one The Company had revenues from individual customers in excess of 10% Three Months Ended March 31, Customer 2018 2017 A 38 % 48 % The Company had gross accounts receivable from individual customers in excess of 10% Customer March 31, 2018 December 31, 2017 A 39 % 41 % B 17 % 15 % Revenues from customers by geographic area based on the location of the customers’ work sites are as follows (in thousands): Three Months Ended March 31 , 2018 2017 Revenues Percentage of Revenues Revenues Percentage of Revenues United States $ 10,083 41 % $ 11,634 47 % China 5,182 21 1,686 7 Taiwan 2,135 9 3,837 16 Germany 1,544 6 2,308 10 Rest of the world 5,793 23 4,824 20 Total revenue $ 24,737 100 % $ 24,289 100 % Long-lived assets, net by geographic area are as follows (in thousands): March 31 , 2018 December 31, 2017 United States $ 26,068 $ 24,883 Rest of the world 468 503 Total long-lived assets, net $ 26,536 $ 25,386 |
Note 8 - Fair Value Measurement
Note 8 - Fair Value Measurements | 3 Months Ended |
Mar. 31, 2018 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | 8 . FAIR VALUE MEASUREMENTS Fair value is the exit price, or the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date. The multiple assumptions used to value financial instruments are referred to as inputs, and a hierarchy for inputs used in measuring fair value is established, that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs reflect assumptions market participants would use in pricing an asset or liability based on market data obtained from independent sources while unobservable inputs reflect a reporting entity’s pricing based upon its own market assumptions. These inputs are ranked according to a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three Level 1 Inputs are quoted prices in active markets for identical assets or liabilities. Level 2 Inputs are quoted prices for similar assets or liabilities in an active market, quoted prices for identical or similar assets or liabilities in markets that are not Level 3 Inputs are derived from valuation techniques in which one The following table represents the Company’s assets measured at fair value on a recurring basis as of March 31, 2018, Assets Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Money market mutual funds $ 26,713 $ 26,713 $ — $ — The following table represents the Company’s assets measured at fair value on a recurring basis as of December 31, 2017, Assets Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Money market mutual funds $ 26,638 $ 26,638 $ — $ — The Company enters into foreign currency forward contracts to reduce the exposure to foreign currency exchange rate fluctuations on certain foreign currency denominated monetary assets and liabilities, primarily on third not not three March 31, 2018 2017, $46,000 $0.1 The Company carries these derivatives financial instruments on its Consolidated Balance Sheets at their fair values. The Company’s foreign currency forward contracts are classified as Level 2 not March 31, 2018, one $8.6 $46,000 December 31, 2017, one $8.2 $12,000 |
Note 9 - Commitments and Contin
Note 9 - Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2018 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | 9 . COMMITMENTS AND CONTINGENCIES Leases The Company leases administrative and sales offices and certain equipment under noncancelable operating leases, which contain various renewal options and, in some cases, require payment of common area costs, taxes and utilities. These operating leases expire at various times through 2024. $0.6 $0.5 three March 31, 2018 2017, Future minimum lease payments under noncancelable operating leases at March 31, 2018, Year ending December 31 , Amount 2018 (remaining nine months) $ 1,363 2019 800 2020 726 2021 645 2022 389 2023 and thereafter 51 Total future minimum lease payments $ 3,974 As of March 31, 2018, 28,600 September 2018. April 2018, 20,800 ten July 1, 2018. $7.0 $0.4 $1.3 Indemnifications 90 third not Purchase obligations March 31, 2018, $14.7 12 Indemnification of Officers and Directors In addition, the Bylaws of the Company provide that the Company is required to indemnify its officers and directors even when indemnification would otherwise be discretionary, and the Company is required to advance expenses to its officers and directors as incurred in connection with proceedings against them for which they may may not Litigation March 31, 2018, not no no |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation The interim unaudited condensed consolidated financial statements included herein have been prepared by PDF Solutions, Inc. (the “Company”) pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”), including the instructions to the Quarterly Report on Form 10 10 X. not may 10 December 31, 2017. The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries after the elimination of all intercompany balances and transactions. The condensed consolidated balance sheet at December 31, 2017, not |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles in the United States (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates in these financial statements include significant estimates and judgments made in recognizing revenue, accounting for goodwill and intangible assets, stock-based compensation expense and accounting for income taxes. Actual results could differ from those estimates. For a discussion of significant estimates and judgments made in recognizing revenue under the new revenue standard, see Note 2. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements – Recently Adopted Accounting Standards In May 2014, No. 2014 09, 606 605 606, five first first 2018. 2. In August 2016, No. 2016 15, 230 December 15, 2017, January 1, 2018 not In November 2016, No. 2016 18, 230 December 15, 2017, January 1, 2018, not In January 2017, No. 2017 01, December 15, 2017. January 1, 2018, not In May 2017, No. 2017 09, 718 718. December 15, 2017. January 1, 2018, not Accounting Standards Not In February 2016, No. 2016 02, 842 December 15, 2018, In January 2017, No. 2017 04, 350 2 December 15, 2019, not In February 2018, No. 2018 02, 220 December 2017. December 15, 2018 not In March 2018, 2018 05, 740 No. 118". December 22, 2017 118 118 740 not one 5, |
Note 2 - Revenue Recognition (T
Note 2 - Revenue Recognition (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Notes Tables | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block] | As reported under Topic 606 Adjustments Balances under Topic 605 (In thousands) Accounts receivable, net of allowance $ 58,436 $ 764 $ 59,200 Prepaid expenses and other current assets 9,654 (3,959 ) 5,695 Deferred tax assets 15,896 316 16,212 Other non-current assets 9,752 (289 ) 9,463 Deferred revenues – current portion 8,474 1,348 9,822 Long-term income taxes payable 4,824 (1,032 ) 3,792 Other non-current liabilities 1,122 899 2,021 Accumulated deficit (23,160 ) (4,383 ) (27,543 ) As reported under Topic 606 Adjustments Balances under Topic 605 (In thousands) Net income $ (424 ) $ (30 ) $ (454 ) Changes in operating assets and liabilities: Accounts receivable, net of allowance (80 ) (1,556 ) (1,636 ) Prepaid expenses and other current assets (2,183 ) 1,569 (614 ) Other non-current assets 798 288 1,086 Deferred revenue 1,906 (271 ) 1,635 |
Disaggregation of Revenue [Table Text Block] | March 31 , 2018 Product and licenses $ 7,487 Support and Services 16,989 Other 261 Total $ 24,737 |
Note 3 - Balance Sheet Compon17
Note 3 - Balance Sheet Components (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Notes Tables | |
Property, Plant and Equipment [Table Text Block] | March 31 , 201 8 December 31, 2017 Property and equipment, net: Computer equipment $ 10,725 $ 10,729 Software 3,391 3,348 Furniture, fixtures and equipment 4,102 3,676 Leasehold improvements 2,025 1,980 Test equipment 14,209 13,796 Construction-in-progress 13,761 12,527 48,213 46,056 Less: accumulated depreciation (21,677 ) (20,670 ) Total $ 26,536 $ 25,386 |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | March 31, 2018 December 31, 2017 Amortization Period (Years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Acquired identifiable intangibles: Customer relationships 1 - 9 $ 6,740 $ (4,237 ) $ 2,503 $ 6,740 $ (4,145 ) $ 2,595 Developed technology 4 - 6 15,820 (12,974 ) 2,846 15,820 (12,829 ) 2,991 Tradename 2 - 4 790 (628 ) 162 790 (622 ) 168 Backlog 1 100 (100 ) - 100 (100 ) - Patent 7 - 10 1,800 (1,490 ) 310 1,800 (1,480 ) 320 Other acquired intangibles 4 255 (255 ) - 255 (255 ) - Total $ 25,505 $ (19,684 ) $ 5,821 $ 25,505 $ (19,431 ) $ 6,074 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Year ending December 31 , Amount 2018 (remaining nine months) $ 757 2019 1,009 2020 1,009 2021 833 2022 626 2023 and thereafter 1,587 Total future amortization expense $ 5,821 |
Note 4 - Stockholders' Equity (
Note 4 - Stockholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Notes Tables | |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block] | Three Months Ended March 31, 2018 2017 Cost of Design-to-silicon-yield solutions $ 1,014 $ 1,192 Research and development 879 834 Selling, general and administrative 963 858 Stock-based compensation expenses $ 2,856 $ 2,884 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | Three Months Ended March 31, 2018 2017 Expected life (in years) 4.43 4.41 Volatility 42.22 % 40.57 % Risk-free interest rate 2.52 % 1.87 % Expected dividend — — Weighted average fair value per share of options granted during the period $ 4.28 $ 7.85 Three Months Ended March 31, 2018 2017 Expected life (in years) 1.25 1.25 Volatility 37.23 % 33.32 % Risk-free interest rate 1.93 % 0.93 % Expected dividend — — Weighted average fair value per share of options granted during the period $ 4.32 $ 6.78 |
Share-based Compensation, Stock Options, Activity [Table Text Block] | Number of Options (in thousands) Weighted Average Exercise Price per Share Weighted Average Remaining Contractual Term (years) Aggregate Intrinsic Value (in thousands) Outstanding, January 1, 2018 1,045 $ 9.65 Granted (weighted average fair value of $4.28 per share) 10 $ 11.26 Exercised (8 ) $ 4.86 Canceled (4 ) $ 13.77 Expired (1 ) $ 20.39 Outstanding, March 31, 2018 1,042 $ 9.67 4.69 $ 3,398 Vested and expected to vest, March 31, 2018 1,024 $ 9.56 4.61 $ 3,396 Exercisable, March 31, 2018 831 $ 8.17 3.60 $ 3,378 |
Schedule of Share-based Compensation, Restricted Stock Units Award Activity [Table Text Block] | Shares (in thousands) Weighted Average Grant Date Fair Value Per Share Nonvested, January 1, 2018 1,617 $ 15.66 Granted 10 $ 11.26 Vested (110 ) $ 14.41 Forfeited (48 ) $ 15.62 Nonvested, March 31, 2018 1,469 $ 15.73 |
Note 6 - Net Income Per Share (
Note 6 - Net Income Per Share (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months Ended March 31, 2018 2017 Numerator: Net income (loss) $ (424 ) $ 517 Denominator: Basic weighted-average shares outstanding 32,168 31,991 Effect of dilutive options and restricted stock - 1,603 Diluted weighted average shares outstanding 32,168 33,594 Net income (loss) per share - Basic $ (0.01 ) $ 0.02 Net income (loss) per share - Diluted $ (0.01 ) $ 0.02 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | Three Months Ended March 31, 2018 2017 Outstanding options - 40 Nonvested restricted stock units - - Employee Stock Purchase Plan - 30 Total - 70 |
Note 7 - Customer and Geograp20
Note 7 - Customer and Geographic Information (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Notes Tables | |
Schedule of Revenue by Major Customers by Reporting Segments [Table Text Block] | Three Months Ended March 31, Customer 2018 2017 A 38 % 48 % |
Receivables by Major Customers [Table Text Block] | Customer March 31, 2018 December 31, 2017 A 39 % 41 % B 17 % 15 % |
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Table Text Block] | Three Months Ended March 31 , 2018 2017 Revenues Percentage of Revenues Revenues Percentage of Revenues United States $ 10,083 41 % $ 11,634 47 % China 5,182 21 1,686 7 Taiwan 2,135 9 3,837 16 Germany 1,544 6 2,308 10 Rest of the world 5,793 23 4,824 20 Total revenue $ 24,737 100 % $ 24,289 100 % |
Schedule of Disclosure on Geographic Areas, Long-Lived Assets in Individual Foreign Countries by Country [Table Text Block] | March 31 , 2018 December 31, 2017 United States $ 26,068 $ 24,883 Rest of the world 468 503 Total long-lived assets, net $ 26,536 $ 25,386 |
Note 8 - Fair Value Measureme21
Note 8 - Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Notes Tables | |
Fair Value, Assets Measured on Recurring Basis [Table Text Block] | Assets Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Money market mutual funds $ 26,713 $ 26,713 $ — $ — Assets Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Money market mutual funds $ 26,638 $ 26,638 $ — $ — |
Note 9 - Commitments and Cont22
Note 9 - Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Notes Tables | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | Year ending December 31 , Amount 2018 (remaining nine months) $ 1,363 2019 800 2020 726 2021 645 2022 389 2023 and thereafter 51 Total future minimum lease payments $ 3,974 |
Note 2 - Revenue Recognition (D
Note 2 - Revenue Recognition (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | Jan. 01, 2018 | Dec. 31, 2017 | |
Retained Earnings (Accumulated Deficit), Ending Balance | $ (23,160) | $ (27,089) | ||
Capitalized Contract Cost, Net, Total | $ 500 | |||
Contract with Customer, Liability, Noncurrent | 500 | 900 | ||
Contract with Customer, Liability, Revenue Recognized | 2,600 | |||
Revenue, Remaining Performance Obligation, Amount | 45,000 | |||
Contract with Customer, Performance Obligation Satisfied in Previous Period | 500 | |||
Capitalized Contract Cost, Amortization | 100 | |||
Capitalized Contract Cost, Impairment Loss | 0 | |||
Prepaid Expenses and Other Current Assets [Member] | ||||
Contract with Customer, Asset, Net, Current, Total | 3,700 | 1,900 | ||
Prepaid Expenses and Other Current Assets and Other Non-current Assets [Member] | ||||
Deferred Costs, Total | $ 500 | $ 600 | ||
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | Transferred over Time [Member] | ||||
Concentration Risk, Percentage | 69.00% | |||
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | Transferred at Point in Time [Member] | ||||
Concentration Risk, Percentage | 31.00% | |||
Sales Revenue, Net [Member] | Geographic Concentration Risk [Member] | ||||
Concentration Risk, Percentage | 100.00% | 100.00% | ||
Sales Revenue, Net [Member] | Geographic Concentration Risk [Member] | Countries other than the United States [Member] | ||||
Concentration Risk, Percentage | 59.00% | 53.00% | ||
Accounting Standards Update 2014-09 [Member] | ||||
Retained Earnings (Accumulated Deficit), Ending Balance | (4,400) | |||
Accounts Receivable, Net, Total | 800 | |||
Contract with Customer, Asset, Net, Total | 1,900 | |||
Contract with Customer, Liability, Total | $ (2,500) |
Note 2 - Revenue Recognition -
Note 2 - Revenue Recognition - Adoption of ASC 606 (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | Jan. 01, 2018 | Dec. 31, 2017 | |
Accounts receivable, net of allowance | $ 58,436 | $ 57,564 | ||
Prepaid expenses and other current assets | 9,654 | 5,069 | ||
Deferred tax assets | 15,896 | 16,348 | ||
Other non-current assets | 9,752 | 10,545 | ||
Deferred revenues – current portion | 8,474 | 7,981 | ||
Long-term income taxes payable | 4,824 | 3,902 | ||
Other non-current liabilities | 1,122 | 2,269 | ||
Accumulated deficit | (23,160) | $ (27,089) | ||
Net income (loss) | (424) | $ 517 | ||
Accounts receivable, net of allowance | (80) | (1,931) | ||
Prepaid expenses and other current assets | (2,183) | (1,395) | ||
Other non-current assets | 798 | $ (1,977) | ||
Deferred revenue | 1,906 | |||
Accounting Standards Update 2014-09 [Member] | ||||
Accumulated deficit | $ (4,400) | |||
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Accounting Standards Update 2014-09 [Member] | ||||
Accounts receivable, net of allowance | 764 | |||
Prepaid expenses and other current assets | (3,959) | |||
Deferred tax assets | 316 | |||
Other non-current assets | (289) | |||
Deferred revenues – current portion | 1,348 | |||
Long-term income taxes payable | (1,032) | |||
Other non-current liabilities | 899 | |||
Accumulated deficit | (4,383) | |||
Net income (loss) | (30) | |||
Accounts receivable, net of allowance | (1,556) | |||
Prepaid expenses and other current assets | 1,569 | |||
Other non-current assets | 288 | |||
Deferred revenue | (271) | |||
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | ||||
Accounts receivable, net of allowance | 59,200 | |||
Prepaid expenses and other current assets | 5,695 | |||
Deferred tax assets | 16,212 | |||
Other non-current assets | 9,463 | |||
Deferred revenues – current portion | 9,822 | |||
Long-term income taxes payable | 3,792 | |||
Other non-current liabilities | 2,021 | |||
Accumulated deficit | (27,543) | |||
Net income (loss) | (454) | |||
Accounts receivable, net of allowance | (1,636) | |||
Prepaid expenses and other current assets | (614) | |||
Other non-current assets | 1,086 | |||
Deferred revenue | $ 1,635 |
Note 2 - Revenue Recognition 25
Note 2 - Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Product and licenses | $ 24,737 | $ 24,289 |
License [Member] | ||
Product and licenses | 7,487 | |
Service [Member] | ||
Product and licenses | 16,989 | |
Product and Service, Other [Member] | ||
Product and licenses | $ 261 |
Note 3 - Balance Sheet Compon26
Note 3 - Balance Sheet Components (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Unbilled Receivables, Current | $ 23,100 | $ 22,200 | |
Unbilled Receivables, Not Billable, Amount Expected to be Collected after Next Twelve Months | 7,700 | 8,600 | |
Depreciation, Depletion and Amortization, Nonproduction, Total | 1,300 | $ 1,100 | |
Goodwill, Ending Balance | 1,923 | 1,923 | |
Finite-Lived Intangible Assets, Net, Ending Balance | $ 5,821 | $ 6,074 | |
Finite-Lived Intangible Assets, Remaining Amortization Period | 6 years 189 days | ||
Amortization of Intangible Assets, Total | $ 253 | $ 188 | |
Impairment of Intangible Assets, Finite-lived | $ 0 |
Note 3 - Balance Sheet Compon27
Note 3 - Balance Sheet Components - Property and Equipment (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Property and equipment, gross | $ 48,213 | $ 46,056 |
Less: accumulated depreciation | (21,677) | (20,670) |
Total | 26,536 | 25,386 |
Computer Equipment [Member] | ||
Property and equipment, gross | 10,725 | 10,729 |
Software and Software Development Costs [Member] | ||
Property and equipment, gross | 3,391 | 3,348 |
Furniture and Fixtures [Member] | ||
Property and equipment, gross | 4,102 | 3,676 |
Leasehold Improvements [Member] | ||
Property and equipment, gross | 2,025 | 1,980 |
Test Equipment [Member] | ||
Property and equipment, gross | 14,209 | 13,796 |
Construction in Progress [Member] | ||
Property and equipment, gross | $ 13,761 | $ 12,527 |
Note 3 - Balance Sheet Compon28
Note 3 - Balance Sheet Components - Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | |
Gross Carrying Amount | $ 25,505 | $ 25,505 |
Accumulated Amortization | (19,684) | (19,431) |
Intangible assets, net | 5,821 | 6,074 |
Customer Relationships [Member] | ||
Gross Carrying Amount | 6,740 | 6,740 |
Accumulated Amortization | (4,237) | (4,145) |
Intangible assets, net | $ 2,503 | 2,595 |
Customer Relationships [Member] | Minimum [Member] | ||
Amortization Period (Year) | 1 year | |
Customer Relationships [Member] | Maximum [Member] | ||
Amortization Period (Year) | 9 years | |
Developed Technology Rights [Member] | ||
Gross Carrying Amount | $ 15,820 | 15,820 |
Accumulated Amortization | (12,974) | (12,829) |
Intangible assets, net | $ 2,846 | 2,991 |
Developed Technology Rights [Member] | Minimum [Member] | ||
Amortization Period (Year) | 4 years | |
Developed Technology Rights [Member] | Maximum [Member] | ||
Amortization Period (Year) | 6 years | |
Trade Names [Member] | ||
Gross Carrying Amount | $ 790 | 790 |
Accumulated Amortization | (628) | (622) |
Intangible assets, net | $ 162 | 168 |
Trade Names [Member] | Minimum [Member] | ||
Amortization Period (Year) | 2 years | |
Trade Names [Member] | Maximum [Member] | ||
Amortization Period (Year) | 4 years | |
Order or Production Backlog [Member] | ||
Amortization Period (Year) | 1 year | |
Gross Carrying Amount | $ 100 | 100 |
Accumulated Amortization | (100) | (100) |
Intangible assets, net | ||
Patents [Member] | ||
Gross Carrying Amount | 1,800 | 1,800 |
Accumulated Amortization | (1,490) | (1,480) |
Intangible assets, net | $ 310 | 320 |
Patents [Member] | Minimum [Member] | ||
Amortization Period (Year) | 7 years | |
Patents [Member] | Maximum [Member] | ||
Amortization Period (Year) | 10 years | |
Other Intangible Assets [Member] | ||
Amortization Period (Year) | 4 years | |
Gross Carrying Amount | $ 255 | 255 |
Accumulated Amortization | (255) | (255) |
Intangible assets, net |
Note 3 - Balance Sheet Compon29
Note 3 - Balance Sheet Components - Annual Amortization of Identifiable Intangible Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
2018 (remaining nine months) | $ 757 | |
2,019 | 1,009 | |
2,020 | 1,009 | |
2,021 | 833 | |
2,022 | 626 | |
2023 and thereafter | 1,587 | |
Total future amortization expense | $ 5,821 | $ 6,074 |
Note 4 - Stockholders' Equity30
Note 4 - Stockholders' Equity (Details Textual) - USD ($) $ / shares in Units, $ in Millions | May 31, 2017 | Oct. 25, 2016 | Jul. 31, 2001 | Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2001 | Mar. 31, 2018 | Dec. 31, 2017 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period | 4,000 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Ending Balance | 1,042,000 | 1,042,000 | 1,045,000 | |||||
Share Price | $ 11.66 | $ 11.66 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | $ 0.1 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value | $ 0.1 | |||||||
Stock Repurchase Program, Authorized Amount | $ 25 | |||||||
Stock Repurchase Program, Period in Force | 2 years | |||||||
Treasury Stock, Shares, Acquired | 338,207 | 1,180,389 | ||||||
Treasury Stock Acquired, Average Cost Per Share | $ 14.86 | |||||||
Treasury Stock, Value, Acquired, Cost Method | $ 17.5 | |||||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 7.5 | 7.5 | ||||||
Employee Stock Option [Member] | ||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Total | $ 1 | 1 | ||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 3 years 36 days | |||||||
Restricted Stock Units (RSUs) [Member] | ||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Total | $ 17.9 | $ 17.9 | ||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years 146 days | |||||||
Twenty Eleven Stock Incentive Plan [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 7,800,000 | |||||||
Share Based Compensation Arrangement By Share Based Payment Award Shares Reserved Decrease Rate | 1.33 | |||||||
Common Stock, Capital Shares Reserved for Future Issuance | 9,600,000 | 9,600,000 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 4,000,000 | 4,000,000 | ||||||
Twenty Eleven Stock Incentive Plan [Member] | Employee Stock Option [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | |||||||
Shares Previously Issued Under the 2001 Plan [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 3,500,000 | |||||||
IDS Plan [Member] | Employee Stock Option [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | |||||||
Two Thousand One Stock Incentive Plan [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period | 500,000 | |||||||
Outside of the 2011, 2001 or IDS Plans [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Ending Balance | 0 | 0 | ||||||
Employee Stock Purchase Plan [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | |||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Total | $ 1.7 | $ 1.7 | ||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 302 days | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Maximum Employee Subscription Rate | 10.00% | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Purchase Price of Common Stock, Percent | 85.00% | |||||||
ESPP Maximum Annual Share Replenishment | 675,000 | |||||||
ESPP Maximum Annual Share Replenishment Percentage of Prior Year Outstanding Company Common Stock | 2.00% | |||||||
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 108,000 | 100,000 | ||||||
Employee Stock Purchase Plan Weighted Average Purchase Price of Shares Purchased | $ 9.29 | $ 9.13 | ||||||
Number Of ESPP Shares Available For Future Issuance | 4,300,000 | 4,300,000 |
Note 4 - Stockholders' Equity -
Note 4 - Stockholders' Equity - Allocation of Recognized Period Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Allocation of recognized period costs | $ 2,856 | $ 2,884 |
Cost of Sales [Member] | ||
Allocation of recognized period costs | 1,014 | 1,192 |
Research and Development Expense [Member] | ||
Allocation of recognized period costs | 879 | 834 |
Selling, General and Administrative Expenses [Member] | ||
Allocation of recognized period costs | $ 963 | $ 858 |
Note 4 - Stockholders' Equity32
Note 4 - Stockholders' Equity - Stock Options, Valuation Assumptions (Details) - $ / shares | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Weighted average fair value (in dollars per share) | $ 4.28 | |
Stock Plans [Member] | ||
Expected life (Year) | 4 years 156 days | 4 years 149 days |
Volatility | 42.22% | 40.57% |
Risk-free interest rate | 2.52% | 1.87% |
Expected dividend | 0.00% | 0.00% |
Weighted average fair value (in dollars per share) | $ 4.28 | $ 7.85 |
Employee Stock Purchase Plan [Member] | ||
Expected life (Year) | 1 year 91 days | 1 year 91 days |
Volatility | 37.23% | 33.32% |
Risk-free interest rate | 1.93% | 0.93% |
Expected dividend | 0.00% | 0.00% |
Weighted average fair value (in dollars per share) | $ 4.32 | $ 6.78 |
Note 4 - Stockholders' Equity33
Note 4 - Stockholders' Equity - Stock Options Activity (Details) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended |
Mar. 31, 2018USD ($)$ / sharesshares | |
Outstanding (in shares) | 1,045 |
Outstanding, weighted average exercise price (in dollars per share) | $ / shares | $ 9.65 |
Granted (in shares) | 10 |
Exercised (in shares) | (8) |
Exercised, weighted average exercise price (in dollars per share) | $ / shares | $ 4.86 |
Canceled (in shares) | (4) |
Canceled, weighted average exercise price (in dollars per share) | $ / shares | $ 13.77 |
Expired (in shares) | (1) |
Expired, weighted average exercise price (in dollars per share) | $ / shares | $ 20.39 |
Outstanding (in shares) | 1,042 |
Outstanding, weighted average exercise price (in dollars per share) | $ / shares | $ 9.67 |
Outstanding, weighted average remaining term (Year) | 4 years 251 days |
Outstanding, intrinsic value | $ | $ 3,398 |
Vested and expected to vest, March 31, 2018 (in shares) | 1,024 |
Vested and expected to vest, weighted average exercise price (in dollars per share) | $ / shares | $ 9.56 |
Vested and expected to vest, weighted average remaining term (Year) | 4 years 222 days |
Vested and expected to vest, intrinsic value | $ | $ 3,396 |
Exercisable, March 31, 2018 (in shares) | 831 |
Exercisable, weighted average exercise price (in dollars per share) | $ / shares | $ 8.17 |
Exercisable, weighted average remaining term (Year) | 3 years 219 days |
Exercisable, intrinsic value | $ | $ 3,378 |
Note 4 - Stockholders' Equity34
Note 4 - Stockholders' Equity - Stock Options Activity (Details) (Parentheticals) | 3 Months Ended |
Mar. 31, 2018$ / shares | |
Weighted average fair value (in dollars per share) | $ 4.28 |
Note 4 - Stockholders' Equity35
Note 4 - Stockholders' Equity - Nonvested Restricted Stock Units Activity (Details) - Restricted Stock Units (RSUs) [Member] shares in Thousands | 3 Months Ended |
Mar. 31, 2018$ / sharesshares | |
Nonvested, Balance (in shares) | shares | 1,617 |
Nonvested, weighted average grant date fair value (in dollars per share) | $ / shares | $ 15.66 |
Granted (in shares) | shares | 10 |
Granted, weighted average grant date fair value (in dollars per share) | $ / shares | $ 11.26 |
Vested (in shares) | shares | (110) |
Vested, weighted average grant date fair value (in dollars per share) | $ / shares | $ 14.41 |
Forfeited (in shares) | shares | (48) |
Forfeited, weighted average grant date fair value (in dollars per share) | $ / shares | $ 15.62 |
Nonvested, Balance (in shares) | shares | 1,469 |
Nonvested, weighted average grant date fair value (in dollars per share) | $ / shares | $ 15.73 |
Note 5 - Income Taxes (Details
Note 5 - Income Taxes (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Increase (Decrease) in Income Taxes | $ 800 | |||
Income Tax Expense (Benefit), Total | $ (381) | $ (1,162) | ||
Effective Income Tax Rate Reconciliation, Percent, Total | 47.00% | 180.00% | ||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 35.00% | |||
Unrecognized Tax Benefits, Ending Balance | $ 13,400 | $ 12,900 | ||
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 7,900 | 7,700 | ||
Unrecognized Tax Benefits In Long Term Liabilities | 3,000 | |||
Unrecognized Tax Benefits In Deferred Tax Assets | 10,400 | |||
Unrecognized Tax Benefits In Deferred Tax Asset Subject To Full Valuation Allowance | 5,500 | |||
Deferred Tax Assets, Valuation Allowance, Total | $ 9,000 | $ 9,100 | ||
Scenario, Forecast [Member] | ||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% |
Note 6 - Net Income Per Share -
Note 6 - Net Income Per Share - Calculation of Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Net income (loss) | $ (424) | $ 517 |
Basic weighted-average shares outstanding (in shares) | 32,168 | 31,991 |
Effect of dilutive options and restricted stock (in shares) | 1,603 | |
Diluted weighted average shares outstanding (in shares) | 32,168 | 33,594 |
Net income (loss) per share - Basic (in dollars per share) | $ (0.01) | $ 0.02 |
Net income (loss) per share - Diluted (in dollars per share) | $ (0.01) | $ 0.02 |
Note 6 - Net Income Per Share38
Note 6 - Net Income Per Share - Anti-dilutive Securities (Details) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Anti-dilutive securities (in shares) | 70 | |
Employee Stock Option [Member] | ||
Anti-dilutive securities (in shares) | 40 | |
Restricted Stock Units (RSUs) [Member] | ||
Anti-dilutive securities (in shares) | ||
Employee Stock Purchase Plan [Member] | ||
Anti-dilutive securities (in shares) | 30 |
Note 7 - Customer and Geograp39
Note 7 - Customer and Geographic Information (Details Textual) | 3 Months Ended |
Mar. 31, 2018 | |
Number of Operating Segments | 1 |
Note 7 - Customer and Geograp40
Note 7 - Customer and Geographic Information - Revenue Percentage by Major Customers (Details) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Customer Concentration Risk [Member] | Sales Revenue, Net [Member] | Customer A [Member] | ||
Receivables percentage by major customer | 38.00% | 48.00% |
Note 7 - Customer and Geograp41
Note 7 - Customer and Geographic Information - Receivables Percentage by Major Customers (Details) - Customer Concentration Risk [Member] - Accounts Receivable [Member] | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Customer A [Member] | ||
Receivables percentage by major customer | 39.00% | 41.00% |
Customer B [Member] | ||
Receivables percentage by major customer | 17.00% | 15.00% |
Note 7 - Customer and Geograp42
Note 7 - Customer and Geographic Information - Revenues by Geographic Area (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Revenues | $ 24,737 | $ 24,289 |
Geographic Concentration Risk [Member] | Sales Revenue, Net [Member] | ||
Revenues | $ 24,737 | $ 24,289 |
Concentration Risk, Percentage | 100.00% | 100.00% |
Geographic Concentration Risk [Member] | Sales Revenue, Net [Member] | UNITED STATES | ||
Revenues | $ 10,083 | $ 11,634 |
Concentration Risk, Percentage | 41.00% | 47.00% |
Geographic Concentration Risk [Member] | Sales Revenue, Net [Member] | CHINA | ||
Revenues | $ 5,182 | $ 1,686 |
Concentration Risk, Percentage | 21.00% | 7.00% |
Geographic Concentration Risk [Member] | Sales Revenue, Net [Member] | TAIWAN, PROVINCE OF CHINA | ||
Revenues | $ 2,135 | $ 3,837 |
Concentration Risk, Percentage | 9.00% | 16.00% |
Geographic Concentration Risk [Member] | Sales Revenue, Net [Member] | GERMANY | ||
Revenues | $ 1,544 | $ 2,308 |
Concentration Risk, Percentage | 6.00% | 10.00% |
Geographic Concentration Risk [Member] | Sales Revenue, Net [Member] | Rest of the World [Member] | ||
Revenues | $ 5,793 | $ 4,824 |
Concentration Risk, Percentage | 23.00% | 20.00% |
Note 7 - Customer and Geograp43
Note 7 - Customer and Geographic Information - Long-lived Assets by Geographic Area (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Long-lived assets | $ 26,536 | $ 25,386 |
UNITED STATES | ||
Long-lived assets | 26,068 | 24,883 |
Rest of the World [Member] | ||
Long-lived assets | $ 468 | $ 503 |
Note 8 - Fair Value Measureme44
Note 8 - Fair Value Measurements (Details Textual) - Foreign Exchange Contract [Member] - USD ($) | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Derivative Asset, Notional Amount | $ 8,600,000 | $ 8,200,000 | |
Other Current Assets [Member] | |||
Derivative Asset, Current | 46,000 | $ 12,000 | |
Other Nonoperating Income (Expense) [Member] | |||
Derivative, Gain (Loss) on Derivative, Net, Total | $ (46,000) | $ 100,000 |
Note 8 - Fair Value Measureme45
Note 8 - Fair Value Measurements - Fair Value, Assets Measured on a Recurring Basis (Details) - Money Market Funds [Member] - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Money market mutual funds | $ 26,713 | $ 26,638 |
Fair Value, Inputs, Level 1 [Member] | ||
Money market mutual funds | 26,713 | 26,638 |
Fair Value, Inputs, Level 2 [Member] | ||
Money market mutual funds | ||
Fair Value, Inputs, Level 3 [Member] | ||
Money market mutual funds |
Note 9 - Commitments and Cont46
Note 9 - Commitments and Contingencies (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Jul. 01, 2018 | |
Operating Leases, Rent Expense, Net, Total | $ 600 | $ 500 | |
Operating Leases, Future Minimum Payments Due, Total | 3,974 | ||
Purchase Obligation, Due in Next Twelve Months | 14,700 | ||
Loss Contingency Accrual, Ending Balance | $ 0 | ||
Lease in Santa Clara, California [Member] | Subsequent Event [Member] | |||
Lessee, Operating Lease, Term of Contract | 10 years | ||
Operating Leases, Future Minimum Payments Due, Total | $ 7,000 | ||
Operating Lease, Abatement Allowance | 400 | ||
Operating Lease, Tenant Improvement Allowance | $ 1,300 |
Note 9 - Commitments and Cont47
Note 9 - Commitments and Contingencies - Future Minimum Lease Payments Under Noncancelable Operating Leases (Details) $ in Thousands | Mar. 31, 2018USD ($) |
2018 (remaining nine months) | $ 1,363 |
2,019 | 800 |
2,020 | 726 |
2,021 | 645 |
2,022 | 389 |
2023 and thereafter | 51 |
Total future minimum lease payments | $ 3,974 |