Document and Entity Information
Document and Entity Information - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Feb. 28, 2018 | Jun. 30, 2017 | |
Document Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | NPTN | ||
Entity Registrant Name | NEOPHOTONICS CORP | ||
Entity Central Index Key | 1,227,025 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 44,278,392 | ||
Entity Public Float | $ 256,840 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 78,906 | $ 82,500 |
Short-term investments | 12,311 | 19,015 |
Restricted cash | 2,658 | 4,085 |
Accounts receivable, net of allowance for doubtful accounts | 67,229 | 80,610 |
Inventories | 67,301 | 48,237 |
Assets held for sale | 0 | 13,953 |
Prepaid expenses and other current assets | 36,235 | 22,396 |
Total current assets | 264,640 | 270,796 |
Property, plant and equipment, net | 127,565 | 106,867 |
Purchased intangible assets, net | 4,294 | 5,562 |
Goodwill | 1,115 | 1,115 |
Other long-term assets | 5,339 | 6,547 |
Total assets | 402,953 | 390,887 |
Current liabilities: | ||
Accounts payable | 69,017 | 84,766 |
Notes payable and short-term borrowing | 35,607 | 30,190 |
Current portion of long-term debt | 6,005 | 747 |
Accrued and other current liabilities | 43,242 | 30,625 |
Total current liabilities | 153,871 | 146,328 |
Long-term debt, net of current portion | 40,556 | 10,215 |
Other noncurrent liabilities | 14,075 | 8,939 |
Total liabilities | 208,502 | 165,482 |
Commitments and contingencies (Note 13) | ||
Stockholders’ equity: | ||
Preferred stock, $0.0025 par value, 10,000 shares authorized, no shares issued or outstanding | 0 | 0 |
Common stock, $0.0025 par value, At December 31, 2017, 44,219 shares issued and outstanding; at December 31, 2016, 42,526 shares issued and outstanding | 111 | 106 |
Additional paid-in capital | 545,953 | 532,378 |
Accumulated other comprehensive income (loss) | 398 | (8,401) |
Accumulated deficit | (352,011) | (298,678) |
Total stockholders’ equity | 194,451 | 225,405 |
Total liabilities and stockholders’ equity | $ 402,953 | $ 390,887 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (USD per share) | $ 0.0025 | $ 0.0025 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (USD per share) | $ 0.0025 | $ 0.0025 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 44,219,000 | 42,526,000 |
Common stock, shares outstanding (in shares) | 44,219,000 | 42,526,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Statement [Abstract] | |||
Revenue | $ 292,894 | $ 411,423 | $ 339,439 |
Cost of goods sold | 231,415 | 294,290 | 240,358 |
Gross profit | 61,479 | 117,133 | 99,081 |
Operating expenses: | |||
Research and development | 58,287 | 57,376 | 44,533 |
Sales and marketing | 17,760 | 18,595 | 15,823 |
General and administrative | 34,453 | 34,409 | 31,635 |
Amortization of purchased intangible assets | 472 | 1,609 | 1,791 |
Acquisition and asset sale related costs | 130 | 2,125 | 934 |
Restructuring charges | 3,934 | 0 | 44 |
Gain on asset sale | (2,193) | 0 | 0 |
Asset impairment charges | 0 | 0 | 368 |
Total operating expenses | 112,843 | 114,114 | 95,128 |
Income (loss) from operations | (51,364) | 3,019 | 3,953 |
Interest income | 198 | 303 | 121 |
Interest expense | (1,362) | (402) | (1,243) |
Other income, net | 104 | 472 | 3,941 |
Total interest and other income (expense), net | (1,060) | 373 | 2,819 |
Income (loss) before income taxes | (52,424) | 3,392 | 6,772 |
Provision for income taxes | (909) | (3,597) | (3,104) |
Net income (loss) | $ (53,333) | $ (205) | $ 3,668 |
Basic net income (loss) per share (USD per share) | $ (1.23) | $ 0 | $ 0.10 |
Diluted net income (loss) per share (USD per share) | $ (1.23) | $ 0 | $ 0.09 |
Weighted average shares used to compute basic net income (loss) (in shares) | 43,431 | 41,798 | 37,421 |
Weighted average shares used to compute diluted net income (loss) (in shares) | 43,431 | 41,798 | 38,686 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ (53,333) | $ (205) | $ 3,668 |
Other comprehensive income (loss): | |||
Foreign currency translation adjustments, net of zero tax | 8,803 | (6,640) | (6,987) |
Unrealized gains (losses) on available-for-sale securities, net of zero tax | 17 | 10 | (35) |
Defined benefit pension plans: | |||
Loss arising during the period | (32) | (72) | (40) |
Curtailments, settlements and other | 0 | 0 | 0 |
Tax | 11 | 24 | 13 |
Total other comprehensive income (loss) | 8,799 | (6,678) | (7,049) |
Comprehensive loss | $ (44,534) | $ (6,883) | $ (3,381) |
Consolidated Statements of Com6
Consolidated Statements of Comprehensive Loss (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | |||
Foreign currency translation adjustments, tax | $ 0 | $ 0 | $ 0 |
Unrealized gains (losses) on available-for-sale securities, tax | $ 0 | $ 0 | $ 0 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common stock | Additional paid-in capital | Accumulated other comprehensive income (loss) | Accumulated deficit |
Beginning balance (in shares) at Dec. 31, 2014 | 32,752,000 | ||||
Beginning balance at Dec. 31, 2014 | $ 159,456 | $ 82 | $ 456,189 | $ 5,326 | $ (302,141) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Comprehensive loss | $ (3,381) | (7,049) | 3,668 | ||
Issuance of common stock from public stock offering, net of discount and offering costs (in shares) | 6,866,689 | 6,867,000 | |||
Issuance of common stock from public stock offering, net of discount and offering costs | $ 45,638 | $ 17 | 45,621 | ||
Issuance of common stock upon exercise of stock options (in shares) | 304,000 | ||||
Issuance of common stock upon exercise of stock options | 1,178 | $ 1 | 1,177 | ||
Issuance of common stock under employee stock purchase plan (in shares) | 600,000 | ||||
Issuance of common stock under employee stock purchase plan | 1,539 | $ 1 | 1,538 | ||
Issuance of common stock for vested restricted stock units (in shares) | 558,000 | ||||
Issuance of common stock for vested restricted stock units | 0 | $ 1 | (1) | ||
Tax withholding related to vesting of restricted stock units (in shares) | (95,000) | ||||
Tax withholding related to vesting of restricted stock units | (727) | (727) | |||
Stock-based compensation costs | 7,953 | 7,953 | |||
Ending Balance (in shares) at Dec. 31, 2015 | 40,986,000 | ||||
Ending balance at Dec. 31, 2015 | 211,656 | $ 102 | 511,750 | (1,723) | (298,473) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Comprehensive loss | (6,883) | (6,678) | (205) | ||
Issuance of common stock from public stock offering, net of discount and offering costs | 0 | ||||
Issuance of common stock upon exercise of stock options (in shares) | 1,013,000 | ||||
Issuance of common stock upon exercise of stock options | 3,671 | $ 3 | 3,668 | ||
Issuance of common stock under employee stock purchase plan (in shares) | 351,000 | ||||
Issuance of common stock under employee stock purchase plan | 2,779 | $ 1 | 2,778 | ||
Issuance of common stock for vested restricted stock units (in shares) | 226,000 | ||||
Issuance of common stock for vested restricted stock units | 0 | ||||
Tax withholding related to vesting of restricted stock units (in shares) | (50,000) | ||||
Tax withholding related to vesting of restricted stock units | (615) | (615) | |||
Stock-based compensation costs | 14,797 | 14,797 | |||
Ending Balance (in shares) at Dec. 31, 2016 | 42,526,000 | ||||
Ending balance at Dec. 31, 2016 | 225,405 | $ 106 | 532,378 | (8,401) | (298,678) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Comprehensive loss | (44,534) | 8,799 | (53,333) | ||
Issuance of common stock upon exercise of stock options (in shares) | 665,000 | ||||
Issuance of common stock upon exercise of stock options | 2,483 | $ 2 | 2,481 | ||
Issuance of common stock under employee stock purchase plan (in shares) | 349,000 | ||||
Issuance of common stock under employee stock purchase plan | 2,393 | $ 1 | 2,392 | ||
Issuance of common stock for vested restricted stock units (in shares) | 806,000 | ||||
Issuance of common stock for vested restricted stock units | 0 | $ 2 | (2) | ||
Tax withholding related to vesting of restricted stock units (in shares) | (127,000) | ||||
Tax withholding related to vesting of restricted stock units | (998) | (998) | |||
Stock-based compensation costs | 9,702 | 9,702 | |||
Ending Balance (in shares) at Dec. 31, 2017 | 44,219,000 | ||||
Ending balance at Dec. 31, 2017 | $ 194,451 | $ 111 | $ 545,953 | $ 398 | $ (352,011) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flows from operating activities | |||
Net income (loss) | $ (53,333) | $ (205) | $ 3,668 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 28,350 | 22,400 | 22,875 |
Stock-based compensation expense | 8,206 | 17,076 | 7,763 |
Deferred taxes | 792 | (668) | (641) |
Amortization of investment, debt and other | 247 | 159 | 296 |
Loss (gain) on disposal of property and equipment | (1,746) | 185 | 394 |
Loss (gain) on foreign currency hedges | (2,104) | 1,640 | 0 |
Allowance for doubtful accounts | 577 | (382) | 640 |
Write-down of inventories | 8,349 | 2,983 | 6,486 |
Foreign currency remeasurement and other, net | 2,583 | (2,661) | (2,992) |
Asset impairment charges | 324 | 0 | 368 |
Adjustment to fair value of Rusnano payment derivative | 0 | 0 | (141) |
Change in assets and liabilities, net of effects of acquisitions: | |||
Accounts receivable | 13,166 | 2,496 | 2,529 |
Inventories | (22,347) | (1,332) | (14,899) |
Prepaid expenses and other assets | (11,409) | (11,184) | (1,691) |
Accounts payable | (10,874) | 23,111 | (4,692) |
Accrued and other liabilities | 6,452 | 218 | 6,175 |
Net cash (used in) provided by operating activities | (32,767) | 53,836 | 26,138 |
Cash flows from investing activities | |||
Purchase of property, plant and equipment | (47,409) | (51,693) | (16,837) |
Proceeds from sale of property, plant and equipment and other assets | 21,809 | 179 | 245 |
Purchase of marketable securities | (52,062) | (82,728) | (37,130) |
Proceeds from sale of marketable securities | 52,272 | 63,841 | 18,103 |
Proceeds from maturity of marketable securities | 6,458 | 23,148 | 4,000 |
Change in restricted cash | 1,638 | (618) | 10,135 |
Settlement of foreign currency hedges | 1,618 | (1,599) | 0 |
Acquisition of businesses, net | 0 | 0 | (422) |
Net cash used in investing activities | (15,676) | (49,470) | (21,906) |
Cash flows from financing activities | |||
Proceeds from exercise of stock options and issuance of stock under ESPP | 4,893 | 6,587 | 2,717 |
Tax withholding on restricted stock units | (998) | (615) | (727) |
Proceeds from (payments for) public stock offering, net of offering costs | (117) | (164) | 45,648 |
Proceeds from bank loans | 112,834 | 95,200 | 80,256 |
Repayment of bank and acquisition-related loans | (68,492) | (96,119) | (94,032) |
Proceeds from issuance of notes payable | 6,621 | 16,032 | 21,259 |
Repayment of notes payable | (11,639) | (18,007) | (25,498) |
Proceeds from government grants | 0 | 602 | 0 |
Net cash provided by financing activities | 43,102 | 3,516 | 29,623 |
Effect of exchange rates on cash and cash equivalents | 1,747 | (1,470) | (802) |
Net increase (decrease) in cash and cash equivalents | (3,594) | 6,412 | 33,053 |
Cash and cash equivalents at the beginning of the period | 82,500 | 76,088 | 43,035 |
Cash and cash equivalents at the end of the period | 78,906 | 82,500 | 76,088 |
Supplemental disclosure of cash flow information: | |||
Cash paid for interest | 732 | 263 | 878 |
Cash paid for income taxes | 5,388 | 2,215 | 264 |
Supplemental disclosure of noncash investing and financing activities: | |||
Restricted cash receipt and payable related to asset purchase agreement | 0 | 1,039 | 0 |
Unpaid deferred offering costs | 0 | 117 | 0 |
Decrease (increase) in unpaid property, plant and equipment | 6,072 | (13,629) | (396) |
Modification of bank loan with Comerica | 0 | 0 | 15,786 |
Issuance of note to seller of acquired business | 0 | 0 | 15,482 |
Transfer of restricted investments to short-term investments | 0 | 0 | 8,296 |
Asset Retirement Obligation, Liabilities Incurred | $ 2,146 | $ 0 | $ 0 |
The Company and basis of presen
The Company and basis of presentation | 12 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
The Company and basis of presentation | The Company and basis of presentation Business and organization NeoPhotonics Corporation and its subsidiaries (NeoPhotonics or the Company) develops, manufactures and sells optoelectronic products that transmit, receive and switch high speed digital optical signals for communications networks. The Company sells its products worldwide, primarily to leading network equipment manufacturers. Certain Significant Risks and Uncertainties The Company operates in a dynamic industry and, accordingly, can be affected by a variety of factors. For example, any of the following areas could have a negative effect on the Company in terms of its future financial position, results of operations or cash flows: the general state of the U.S., China and world economies; the highly cyclical nature of the industries the Company serves; the loss of any of a small number of its larger customers; ability to obtain additional financing; inability to meet certain debt covenants; failure to successfully integrate completed acquisitions; fundamental changes in the technology underlying the Company’s products; the hiring, training and retention of key employees; successful and timely completion of product design efforts; and new product design introductions by competitors. Consolidation The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. Intercompany accounts and transactions have been eliminated in consolidation. Going Concern Accounting Standards Update (“ASU”) No. 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern, requires an entity to disclose information about its potential inability to continue as a going concern when conditions and events indicate that it is probable that the entity may be unable to meet its obligations as they become due within one year. Management has assessed the Company’s ability to continue as a going concern within one year of the filing date of this Annual Report on Form 10-K with the Securities and Exchange Commission ("SEC") in March 2018. The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. As of December 31, 2017, the Company’s working capital was $110.8 million , including available cash, cash equivalents, short-term investments and restricted cash of approximately $93.9 million . In 2017, the Company had operating losses of $51.4 million and negative cash flows from operations of $32.8 million . It had an accumulated deficit of approximately $352.0 million as of December 31, 2017. The Company's operating results and cash flows for 2017 have been negatively affected by reduced demand in China stemming from delayed provincial deployments and a buildup of inventory at one or more of our leading customers, which is expected to continue into early 2018. In response, the Company implemented restructuring plans in May and September 2017 that included a reduction in force and consolidation of facilities, which are expected to reduce expenses. The Company has also reduced or delayed certain product development projects and capital expenditures, aggressively pursued collections of accounts and notes receivable and continued to closely manage production and inventory levels. In September 2017, the Company entered into a revolving line of credit agreement with Wells Fargo Bank, National Association ("Wells Fargo") which provides for borrowings under an accounts receivable based formula up to a maximum of $50.0 million . As of December 31, 2017, $30.0 million was outstanding under this line. The remaining borrowing capacity as of December 31, 2017 was $20.0 million , of which $5.0 million is required to be maintained as unused borrowing capacity. Borrowings under the Wells Fargo line are not due until June 30, 2022 as long as the borrowing base is not less than the outstanding amount (see Note 11). The Company also has approximately $5.5 million available for short-term borrowings under two line of credit agreements with Pudong Bank in China that expire in July 2019 and approximately $37.9 million under third line of credit agreement with CITIC Bank in China which was renewed in December 2017 and expires in November 2018. In February 2018, the Company borrowed $17.0 million under this third line of credit agreement with CITIC Bank in China. The Company believes it will have sufficient resources to fund its currently planned operations and expenditures over the next twelve months without additional financing or other actions. In addition, the Company believes there are a number of ongoing and potential actions that may further strengthen its projected cash and projected financial position. The Company operates in an industry that makes its prospects difficult to evaluate with certainty. Future declines in China market demand or other changes to the Company’s forecasts could adversely affect the Company’s results of operations, financial position and cash flows. As a result, the Company may need to raise additional debt or equity capital to fund its operations. Any additional debt arrangements may likely require regular interest and principal payments which could adversely affect the Company’s operations. There can be no assurance that additional debt or equity capital will be available on acceptable terms, or at all. |
Summary of significant accounti
Summary of significant accounting policies | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Summary of significant accounting policies | Summary of significant accounting policies Use of estimates The preparation of financial statements in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) 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 financial statements and the reported revenue and expenses during the reporting period. Significant estimates made by management include: the useful lives of property, plant and equipment and intangible assets as well as future cash flows to be generated by those assets; fair values of identifiable assets acquired and liabilities assumed in business combinations; allowances for doubtful accounts; valuation allowances for deferred tax assets; write off of excess and obsolete inventories; the valuation of the Rusnano payment derivative and the valuations and recognition of stock-based compensation, among others. Actual results could differ from these estimates. Concentration of credit risk and significant customers Financial instruments that potentially subject the Company to concentrations of credit risk are primarily cash and cash equivalents and trade accounts receivable. The Company’s investment policy requires cash and cash equivalents to be placed with high-credit quality institutions and limits on the amount of credit risk from any one issuer. The Company performs ongoing credit evaluations of its customers’ financial condition whenever deemed necessary and generally does not require collateral. The Company maintains an allowance for doubtful accounts based upon the expected collectability of all accounts receivable, which takes into consideration an analysis of historical bad debts, specific customer creditworthiness and current economic trends. For the year ended December 31, 2017, two customers accounted for 40% and 16% of the Company’s total revenue. For the year ended December 31, 2016, two customers accounted for 50% and 15% of the Company’s total revenue. For the year ended December 31, 2015, two customers accounted for 44% and 21% of the Company’s total revenue. The percentage of revenue from top five customers was 78% , 82% and 82% for the years ended December 31, 2017, 2016 and 2015, respectively. As of December 31, 2017, three customers accounted for approximately 36% , 14% and 10% , respectively, of the Company’s total accounts receivable. As of December 31, 2016, three customers accounted for 42% , 12% and 12% of the Company’s total accounts receivable. Restricted cash As a condition of the notes payable lending arrangements and the line of credit facilities, the Company is required to keep a compensating balance at the issuing banks. In addition, the Company also maintained restricted cash in connection with the asset purchase agreement executed in December 2016, see Note 9. These balances have been excluded from the Company’s cash and cash equivalents balance and are classified as restricted cash in the Company’s consolidated balance sheets. As of December 31, 2017 and 2016, the amount of restricted cash was $2.7 million and $4.1 million , respectively. Cash, cash equivalents and investments Highly liquid investments with a maturity of 90 days or less at the date of purchase are considered cash equivalents, with the exception of money market funds and commercial paper which are classified as short-term investments. Marketable securities are reported at fair value and are classified as available-for-sale investments in our current assets because they represent investments of cash available for current operations and for strategic reasons. As a result, the Company recorded all its marketable securities in short-term investments regardless of the contractual maturity date of the securities. The Company regularly reviews its investment portfolio to identify and evaluate investments that have indications of possible impairment. Factors considered in determining whether a loss is other-than-temporary include: the length of time and extent to which the fair market value has been lower than the cost basis, the financial condition and near-term prospects of the investee, credit quality, likelihood of recovery, and the Company’s ability to hold the investment for a period of time sufficient to allow for any anticipated recovery in fair market value. Unrealized gains and losses, net of tax, are included in accumulated other comprehensive loss as a separate component of stockholders’ equity on the consolidated balance sheets. The amortization of premiums and discounts on the investments, and realized gains and losses on available-for-sale securities are included in other income, net in the consolidated statements of operations. The Company uses the specific-identification method to determine cost in calculating realized gains and losses upon the sale of its marketable securities. Fair Value Measurements Fair value is defined as the price at which an asset could be exchanged in a current transaction between knowledgeable, willing parties. A liability’s fair value is defined as the amount that would be paid to transfer the liability to a new obligor, not the amount that would be paid to settle the liability with the creditor. Where available, fair value is based on observable market prices or parameters or derived from such prices or parameters. Where observable prices or inputs are not available, valuation models are applied. These valuation techniques involve some level of management estimation and judgment, the degree of which is dependent on the price transparency for the instruments or market and the instruments’ complexity. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The authoritative accounting guidance describes a fair value hierarchy based on three levels of inputs that may be used to measure fair value, of which the first two are considered observable and the last is considered unobservable. These levels of inputs are as follows: Level 1—Observable inputs such as unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date. Level 2—Inputs (other than quoted prices included in Level 1) are either directly or indirectly observable for the asset or liability. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active. Level 3—Unobservable inputs that reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. Consideration is given to the risk inherent in the valuation technique and the risk inherent in the inputs to the model. For marketable securities measured at fair value using Level 2 inputs, we review trading activity and pricing for these investments as of the measurement date. When sufficient quoted pricing for identical securities is not available, we use market pricing and other observable market inputs for similar securities obtained from various third party data providers. These inputs either represent quoted prices for similar assets in active markets or have been derived from observable market data. Accounts receivable Accounts receivable include trade receivables and notes receivable from customers. The notes are generally due within six months . The Company receives notes receivable in exchange for accounts receivable from certain customers in China that are secured by the customer’s affiliated financial institution. An allowance for doubtful accounts is calculated based on the aging of the Company’s trade receivables, historical experience, and management judgment. The Company writes off trade receivables against the allowance when management determines a balance is uncollectible and is no longer actively pursuing collection of the receivable. Inventories Inventories consist of on-hand raw materials, work-in-progress inventories and finished goods. Raw materials and work-in-progress inventories are stored mainly on the Company’s premises. Finished goods are stored on the Company’s premises as well as on consignment at certain customer sites. Inventories are stated at the lower of standard cost, which approximates actual cost determined on the weighted average basis, or net realizable value. Inventories are recorded using the first-in, first-out method. The Company routinely evaluates quantities and values of inventories in light of current market conditions and market trends, and records a write-down for quantities in excess of demand and product obsolescence. The evaluation may take into consideration historic usage, expected demand, anticipated sales price, new product development schedules, the effect new products might have on the sale of existing products, product obsolescence, customer concentrations, product merchantability and other factors. Market conditions are subject to change and actual consumption of inventory could differ from forecasted demand. The Company also regularly reviews the cost of inventories against their estimated market value and records a lower of cost or market write-down for inventories that have a cost in excess of estimated market value, resulting in a new cost basis for the related inventories which is not reversed. Business Combinations We allocate the fair value of purchase consideration to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values as of the close of acquisition. The excess of the fair value of purchase consideration over the fair values of these identifiable assets and liabilities is recorded as goodwill. When determining the fair values of assets acquired and liabilities assumed, management makes significant estimates and assumptions through established and generally accepted valuation techniques. Fair value estimates are based on the assumptions management believes a market participant would use in pricing the asset or liability. Critical estimates in valuing certain intangible assets include, but are not limited to, future expected cash flows from customer relationships and acquired patents and developed technology; and discount rates. Management’s estimates of fair value are based upon assumptions believed to be reasonable, but which are inherently uncertain and unpredictable and, as a result, actual results may differ from estimates. Amounts recorded in a business combination may change during the measurement period, which is a period not to exceed one year from the date of acquisition, as additional information about conditions existing at the acquisition date becomes available. Goodwill Goodwill is reviewed for impairment annually in the fourth fiscal quarter or more frequently if events or changes in circumstances indicate that the carrying value of goodwill may not be recoverable. The Company will assess the qualitative factors to determine whether it is more likely than not that the fair value of its reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment. If the Company determines that it is more likely than not that its fair value is less than its carrying amount, then the two-step goodwill impairment test is performed. The first step, identifying a potential impairment, compares the fair value of the reporting unit with its carrying amount. If the carrying amount exceeds its fair value, the second step would need to be performed; otherwise, no further steps are required. The second step, measuring the impairment loss, compares the implied fair value of the goodwill with the carrying amount of the goodwill. Any excess of the goodwill carrying amount over the implied fair value is recognized as an impairment loss, and the carrying value of goodwill is written down to fair value. The Company had no goodwill impairment in 2017 or 2016. Long-lived assets Property, plant and equipment are stated at cost, net of accumulated depreciation and amortization. Repairs and maintenance costs are expensed as incurred. Depreciation and amortization are computed using the straight-line method over the following estimated useful lives: Buildings 20-30 years Machinery and equipment 2-7 years Furniture, fixtures and office equipment 3-5 years Software 5-7 years Leasehold improvements life of the asset or lease term, if shorter Intangible assets acquired in a business combination are recorded at fair value. Identifiable finite-lived intangible assets are amortized over the period of estimated benefit using the straight-line method, reflecting the pattern of economic benefits associated with these assets. The estimated useful lives of the Company’s finite-lived intangible assets generally range from two to seven years. The acquired land use rights in China have an estimated useful life of 45 years. Assets held for sale are measured at the lower of carrying value or the fair value less cost to sell. The carrying value of intangible assets and other long-lived assets is reviewed on a regular basis for the existence of facts or circumstances, both internally and externally, that may suggest impairment. Some factors which the Company considers to be triggering events for impairment review include a significant decrease in the market value of an asset, a significant change in the extent or manner in which an asset is used, a significant adverse change in the business climate that could affect the value of an asset, an accumulation of costs for an asset in excess of the amount originally expected, a current period operating loss or cash flow decline combined with a history of operating loss or cash flow uses or a projection that demonstrates continuing losses and a current expectation that, it is more likely than not, a long-lived asset will be disposed of at a loss before the end of its estimated useful life. If one or more of such facts or circumstances exist, the Company will evaluate the carrying value of long-lived assets to determine if impairment exists by comparing it to estimated undiscounted future cash flows over the remaining useful life of the assets. If the carrying value of the assets is greater than the estimated future cash flow, the assets are written down to the estimated fair value. The Company’s cash flow estimates contain management’s best estimates, using appropriate and customary assumptions and projections at the time. Any write-down would be treated as a permanent reduction in the carrying amount of the asset and an operating loss would be recognized. The Company recorded asset impairment charges of $0.4 million in restructuring charges in 2017 (see Note 10). There were no asset impairment charges in 2016. The Company recorded asset impairment charges of $0.4 million in 2015 related to certain held-for-sale property, plant and equipment. Revenue recognition Revenue is derived from the sale of the Company’s products. The Company recognizes revenue provided that persuasive evidence of an arrangement exists, delivery has occurred, the price is fixed or determinable and collectability is reasonably assured. Contracts and/or customer purchase orders are used to determine the existence of an arrangement. Delivery is considered to have occurred when title and risk of loss have transferred to the customer. The price is equal to the amount invoiced to the customer and is not subject to adjustment and customers do not have the right of return. The Company evaluates the creditworthiness of its customers to determine that appropriate credit limits are established prior to the acceptance of an order. Revenue is recognized when the product is delivered and title have transferred to the buyer. The Company generally bears all costs and risks of loss or damage to the goods up to that point. Revenue related to the sale of consignment inventory at customer vendor managed locations is not recognized until the product is pulled from inventory stock by customers. In instances where acceptance of the product or solutions is specified by the customer, revenue is deferred until such required acceptance criteria have been met. Shipping and handling costs are included in the cost of goods sold. The Company presents revenue net of sales taxes and any similar assessments. Product warranties The Company generally provides warranties to cover defects in workmanship, materials and manufacturing for a period of one to three years to meet the stated functionality as agreed to in each sales arrangement. Products are tested against specified functionality requirements prior to delivery, but the Company nevertheless from time to time experiences claims under its warranty guarantees. The Company accrues for estimated warranty costs under those guarantees based upon historical experience, and for specific items, at the time their existence is known and the amounts are determinable. Research and development Research and development expense consists of personnel costs, including stock-based compensation expense, for the Company’s research and development personnel and product development costs, including engineering services, development software and hardware tools, depreciation of capital equipment and facility costs. Research and development costs are expensed as incurred. Advertising costs Advertising costs are expensed as incurred and, to date, have not been significant. Stock-based compensation The Company grants stock-based awards to employees, consultants and directors. The stock-based awards, including stock options, restricted stock units, employee stock purchase rights, stock appreciation units and market-based awards, are accounted for at estimated fair values. Vesting of stock-based awards is generally subject to the grantee’s continuing service to the Company. The Company generally determines the fair value of stock options and stock appreciation rights utilizing the Black-Scholes-Merton option-pricing model, or a lattice-binomial option-pricing model for stock-based awards with a market condition. The fair value of employee grants is measured on the date of grant and then recognized over the period during which an employee is required to provide services in exchange for the award, known as the requisite service period (usually the vesting period) on a straight-line basis. The fair value of non-employee grants is measured on the date of grant and then marked to market until vest dates and then recognized over the requisite service period. The Company records expense and an equal adjustment to the liability for stock appreciation units equal to the fair value of the vested portion of the awards as of each period end. Each reporting period thereafter, compensation expense will be recorded based on the remaining service period and the then fair value of the award until vesting of the award is completed. After vesting is completed, the Company will continue to re-measure the fair value of the liability each reporting period until the award is exercised or expires, with changes in the fair value of the liability recorded in the consolidated statements of operations. Restricted stock units are valued at the closing sales price as quoted on the New York Stock Exchange on the date of grant, and are converted into shares of common stock upon vesting on a one-for-one basis. The compensation expense related to the restricted stock units is determined using the fair value of common stock on the date of grant, and the expense is recognized on a straight-line basis over the vesting period. Employee stock purchase rights are accounted for at fair value, utilizing the Black-Scholes-Merton option-pricing model. Stock-based compensation expense for modified stock-based awards are recognized using the pool approach, under which the remaining compensation cost from the original awards plus the incremental costs, if any, of the related modified awards is recognized in its entirety over the remaining portion of the requisition service period of the corresponding modified awards. Stock-based compensation expense recognized at fair value includes the impact of estimated forfeitures. The Company estimates future forfeitures at the date of grant and revises the estimates, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Income taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the carrying amounts of existing assets and liabilities in the financial statements and their respective tax bases, and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities from a change in tax rates is recognized in the consolidated statement of operations in the period that includes the enactment date. The Company operates in various tax jurisdictions and is subject to audit by various tax authorities. In preparing the Company’s consolidated financial statements, the Company is required to estimate its taxes in each of the jurisdictions in which it operates. The Company estimates actual current tax exposure as well as assesses temporary differences resulting from different treatment of items, such as accruals and allowances not currently deductible for tax purposes. These differences result in deferred tax assets which represent future tax benefits to be received when certain expenses previously recognized in the financial statements become deductible expenses under applicable income tax laws, or loss credit carryforwards are utilized. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of a deferred tax asset will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. A valuation allowance is recorded for loss carryforwards and other deferred tax assets where it is more likely than not that such deferred tax assets will not be realized. The Company classifies its net deferred tax assets as other long-term assets and deferred tax liabilities as noncurrent liabilities on its consolidated balance sheet. Foreign currency Generally the functional currency of the Company’s international subsidiaries is the local currency. The Company translates the financial statements of these subsidiaries to U.S. dollars using month-end rates of exchange for assets and liabilities, and average rates of exchange for revenue, costs, and expenses. Translation gains and losses are recorded in accumulated other comprehensive income (loss) as a component of stockholders’ equity. Effective July 1, 2016, the Company has established a hedging program using monthly forward exchange contracts as economic hedges to protect against volatility of foreign exchange rate exposure of its net intercompany activities based on a cost-benefit analysis that considers that magnitude of the exposure, the volatility of the exchange rate and the cost of the hedging instruments. The forward contracts are not designated for hedge accounting and are marked to market at fair value and reported as either other current assets or accounts payable. Any changes in the fair value are recorded as foreign exchange gain (loss) and help mitigate the changes in the value of the underlying net intercompany balances. The Company recognized a $2.1 million gain and $1.6 million loss in 2017 and 2016, respectively, relating to its foreign currency contracts within other income, net. Net foreign exchange gain (loss) was ($0.5) million , $(0.1) million , and $3.4 million in 2017, 2016, and 2015, respectively. These gains and losses were recorded as other income (expense), net in the Company’s consolidated statements of operations. The Company presents the cash flows relating to these foreign exchange contracts as investing activities in its consolidated statements of cash flows. Net income (loss) per share Basic net income (loss) per share is calculated by dividing net income (loss) by the weighted average number of common shares outstanding for the period. Diluted net income (loss) per share is calculated by dividing net income (loss) by the weighted average number of common shares and potential dilutive common share equivalents outstanding during the period if the effect is dilutive. Accounting standards update recently adopted Effective January 1, 2017, the Company adopted ASU 2016-9, Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting (“ASU 2016-9”). ASU 2016-9 simplifies certain aspects of the accounting for shared-based payment transactions, including income taxes, classification of awards and classification in the statement of cash flows. It eliminates the requirement to delay the recognition of excess tax benefits until current taxes payable are reduced. Upon adoption, the Company’s previously unrecognized excess tax benefits of $8.6 million had no impact on its accumulated deficit balance as the related U.S. deferred tax assets were fully offset by a valuation allowance. The Company elected to apply the change in presentation in the statements of cash flows prospectively and elected to continue to account for estimated forfeitures over the vesting period of the share-based awards. Effective January 1, 2017, the Company also adopted ASU 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory (“ASU 2015-11”). ASU 2015-11 requires entities to measure most inventories “at the lower of cost and net realizable value” but does not apply to inventories that are measured by using either the last-in, first-out method or the retail inventory method. The impact on the Company’s consolidated financial statements upon the adoption of this standard was immaterial. Recent accounting standards update not yet effective In May 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2017-9, Compensation—Stock Compensation (718)—Scope of Modification Accounting (ASU 2017-9”). This guidance redefines which changes to the terms and conditions of a share-based payment award require an entity to apply modification accounting for a share-based payment. ASU 2017-9 is effective for interim and annual periods after December 15, 2017 and early adoption is permitted in any interim period. The Company has not yet determined whether it will elect early adoption and has determined that the adoption of this standard will not have a significant impact on its consolidated financial statements and related disclosures. In March 2017, the FASB issued ASU No. 2017-7, Compensation-Retirement Benefits (Topic 715)-Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost (“ASU 2017-7”). This guidance revises the presentation of employer-sponsored defined benefit pension and other postretirement plans for the net periodic benefit cost in the statement of operations and requires that the service cost component of net periodic benefit be presented in the same income statement line items as other employee compensation costs for services rendered during the period. The other components of the net benefit costs are required to be presented in the statement of operations separately from the service cost component and outside the subtotal of income from operations. This guidance allows only the service cost component of net periodic benefit costs to be eligible for capitalization. ASU 2017-7 is effective for interim and annual periods after December 15, 2018 and early adoption is permitted as of the beginning of an annual reporting period. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial statements and related disclosures. In January 2017, the FASB issued ASU 2017-4, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment (“ASU 2017-4”). This standard amends the goodwill impairment test to compare the fair value of a reporting unit with its carrying amount and recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value, up to the total amount of goodwill allocated to that reporting unit. ASU 2017-4 is effective prospectively for interim and annual periods beginning after December 15, 2019. Early adoption is permitted for interim and annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company has not determined whether it will elect early adoption and is currently evaluating the impact of the adoption of this standard on its consolidated financial statements and related disclosures. In January 2017, the FASB issued ASU 2017-1, Business Combinations (Topic 805): Clarifying the Definition of a Business (“ASU 2017-1”). This standard provides a framework in determining when a set of assets and activities is a business. ASU 2017-1 is effective for interim and annual periods beginning after December 15, 2017 on a prospective basis. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial statements and related disclosures. In November 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update ("ASU") 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (“ASC 2016-18”). This standard provides guidance on the classification and presentation of restricted cash in the statement of cash flows and must be applied retrospectively. ASU 2016-18 is effective for fiscal years beginning after December 15, 2017. Early adoption is permitted. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial statements and related disclosures In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory (“ASU 2016-16”). This standard provides guidance on the tax accounting for the transferring and receiving entities upon transfer of an asset. ASU 2016-16 is effective for the Company’s interim and annual periods beginning after December 15, 2017 and should be applied on a modified retrospective basis. Early adoption is permitted. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial statements and related disclosures. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”). This standard provides guidance on the classification of certain cash receipts and payments in the statement of cash flows. It is effective, retrospectively, for the Company’s annual and interim reporting periods beginning after December 15, 2017 or prospectively from the earliest date practicable if retrospective application is impracticable. Early adoption is permitted. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial statements and related disclosures. In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). ASU 2016-13 amends existing guidance on the impairment of financial assets and adds an impairment model that is based on expected losses rather than incurred losses and requires an entity to recognize as an allowance its estimate of expected credit losses for its financial assets. An entity will apply this guidance through a cumulative-effect adjustment to retained earnings upon adoption (a modified-retrospective approach) while a prospective transition approach is required for debt securities for which an other-than-temporary impairment had been recognized before the effective date. It is effective for the Company’s annual and interim reporting periods beginning after December 15, 2019. Early adoption is permitted. The Company is in the process of evaluating the impact of the adoption on its consolidated financial statements and related disclosure. In February 2016, the FASB issued ASU 2016-2, Leases (Topic 842) (“ASU 2016-2”). ASU 2016-2 introduces a lessee model that re |
Cash, cash equivalents, short-t
Cash, cash equivalents, short-term investments, and restricted cash | 12 Months Ended |
Dec. 31, 2017 | |
Cash and Cash Equivalents [Abstract] | |
Cash, cash equivalents, short-term investments and restricted cash | Cash, cash equivalents, short-term investments and restricted cash The following table summarizes the Company’s cash, cash equivalents, short-term investments, and restricted cash at December 31, 2017 and 2016 (in thousands): December 31, 2017 December 31, 2016 Cash and cash equivalents: Cash $ 78,906 58,691 Cash equivalents — 23,809 Cash and cash equivalents $ 78,906 $ 82,500 Short-term investments $ 12,311 $ 19,015 Restricted cash $ 2,658 $ 4,085 The following table summarizes the Company’s unrealized gains and losses related to the cash equivalents and short-term investments in marketable securities designated as available-for-sale (in thousands): As of December 31, 2017 As of December 31, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Loss Fair Value Amortized Cost Gross Unrealized Gains Gross Unrealized Loss Fair Value Marketable securities: Money market accounts $ — $ — $ — $ — $ 23,809 $ — $ — $ 23,809 Money market funds 11,561 — — 11,561 199 — — 199 Corporate debt securities — — — — 9,438 4 (3 ) 9,439 Government agency securities — — — — 3,767 — (10 ) 3,757 U.S. government securities 751 — (1 ) 750 5,008 — (10 ) 4,998 Sovereign government bonds — — — — 622 — — 622 Total $ 12,312 $ — $ (1 ) $ 12,311 $ 42,843 $ 4 $ (23 ) $ 42,824 Reported as: Cash equivalents $ — $ — $ — $ — $ 23,809 $ — $ — $ 23,809 Short-term investments 12,312 — (1 ) 12,311 19,034 4 (23 ) 19,015 Total $ 12,312 $ — $ (1 ) $ 12,311 $ 42,843 $ 4 $ (23 ) $ 42,824 As of December 31, 2017 and 2016, maturities of marketable securities were as follows (in thousands): December 31, 2017 December 31, 2016 Less than 1 year $ 12,311 $ 36,054 Due in 1 to 2 years — 6,468 Due in 3 to 5 years — 302 Total $ 12,311 $ 42,824 Realized gains and losses on the sale of marketable securities during the years ended December 31, 2017, 2016 and 2015 were immaterial. The Company did not recognize any impairment losses on its marketable securities during the years ended December 31, 2017, 2016 or 2015. As of December 31, 2017, the Company did not have any investments in marketable securities that were in an unrealized loss position for a period in excess of 12 months. |
Fair value measurements
Fair value measurements | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair value measurements | Fair value measurements Assets and Liabilities Measured at Fair Value on a Recurring Basis The following table presents the Company’s assets that are measured at fair value on a recurring basis (in thousands): December 31, 2017 December 31, 2016 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Cash equivalents and short-term investments: Money market funds $ 11,561 $ — $ — $ 11,561 $ 199 $ — $ — $ 199 U.S. government securities 750 — — 750 4,998 — — 4,998 Money market accounts — — — — — 23,809 — 23,809 Corporate debt securities — — — — — 9,439 — 9,439 Government agency securities — — — — — 3,757 — 3,757 Sovereign government bonds — — — — — 622 — 622 Total $ 12,311 $ — $ — $ 12,311 $ 5,197 $ 37,627 $ — $ 42,824 Mutual funds held in Rabbi Trust, recorded in other long-term assets $ 523 $ — $ — $ 523 $ 622 $ — $ — $ 622 The Company offers a Non-Qualified Deferred Compensation Plan (“NQDC Plan”) to a select group of its highly compensated employees to provide participants the opportunity to defer payment of certain compensation as defined in the NQDC Plan. A Rabbi Trust has been established to fund the NQDC Plan obligation, which was fully funded as of December 31, 2017 and 2016. The assets held by the Rabbi Trust are in the form of exchange traded mutual funds and are included in the Company’s other long-term assets on its consolidated balance sheets as of December 31, 2017 and 2016. Level 1 assets are determined by using quoted prices in active markets for identical assets. The fair values of Level 2 assets are priced based on quoted market prices for similar instruments or non-binding market prices that are corroborated by observable market data using inputs such as benchmark yields, broker quotes and other similar data. The following table presents the Company’s liabilities that are measured at fair value on a recurring basis (in thousands): As of December 31, 2017 As of December 31, 2016 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Rusnano payment derivative $ — $ — $ 389 $ 389 $ — $ — $ 389 $ 389 Foreign currency forward contracts — (43 ) — (43 ) — 41 — 41 $ — $ (43 ) $ 389 $ 346 $ — $ 41 $ 389 $ 430 The fair value of the Rusnano payment derivative is based on the Company’s estimate (see Note 13). The fair values of the foreign currency forward contracts are based on quoted market rates and market observable data for similar instruments. There were no transfers between levels of the fair value hierarchy during the periods presented. Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis In 2017 and 2016, there were no assets or liabilities measured at fair value on a nonrecurring basis. In 2015, the Company wrote off $0.2 million of property, plant and equipment and $0.2 million of held-for-sale assets recognized and recognized asset impairment charges of $0.4 million within operating expenses (Level 3). These assets were measured at fair value due to events or circumstances the Company identified as having significant impact on their fair value during the respective periods. To arrive at the valuation of these assets, the Company considered the discounted cash flows and categorized the fair value measurement as Level 3 as significant unobservable inputs were used in the valuation. Assets and Liabilities Not Measured at Fair Value The carrying values of cash, restricted cash, accounts receivable, accounts payable, notes payable and short-term borrowing approximate their fair values due to the short-term nature and liquidity of these financial instruments. The fair value of the Company’s long-term debt have been calculated using an estimate of the interest rate the Company would have had to pay on the issuance of liabilities with a similar maturity and discounting the cash flows at that rate which it considers to be a level 2 fair value measurement and was not materially different than the carrying value as of December 31, 2017 and 2016 as the interest rates approximated rates currently available to the Company. The fair values do not necessarily give an indication of the amount that the Company would currently have to pay to extinguish any of this debt. |
Net income (loss) per share
Net income (loss) per share | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Net income (loss) per share | Net income (loss) per share The following table sets forth the computation of the basic and diluted net income (loss) per share attributable to NeoPhotonics Corporation common stockholders for the periods indicated (in thousands, except per share amounts): Years Ended December 31, 2017 2016 2015 Numerator: Net income (loss) $ (53,333 ) $ (205 ) $ 3,668 Denominator: Weighted average shares used to compute per share amount: Basic 43,431 41,798 37,421 Dilutive effect of equity awards — — 1,265 Diluted 43,431 41,798 38,686 Basic net income (loss) per share $ (1.23 ) (0.00) $ 0.10 Diluted net income (loss) per share $ (1.23 ) (0.00) $ 0.09 The Company has excluded the impact of the following outstanding employee stock options, restricted stock units, common stock warrants and shares expected to be issued under its employee stock purchase plan from the computation of diluted net income (loss) per share, as their effect would have been antidilutive (in thousands): December 31, 2017 2016 2015 Employee stock options 3,934 4,301 2,176 Restricted stock units 2,405 2,089 954 Employee stock purchase plan 421 306 318 6,760 6,696 3,448 |
Business combinations
Business combinations | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
Business combinations | Business Combinations EMCORE Corporation On January 2, 2015, the Company closed an acquisition of certain assets and assumed certain liabilities of the tunable laser product lines of EMCORE Corporation (“EMCORE”) for an original purchase price of $17.5 million , pursuant to the terms of the Asset Purchase Agreement between the parties dated October 22, 2014. Consideration for the transaction consisted of $1.5 million in cash and a promissory note (the “EMCORE Note”) of approximately $16.0 million , which was subsequently adjusted to $15.5 million in connection with a True-Up Confirmation Agreement (the “True-Up Agreement”) executed by and between the Company and EMCORE on April 16, 2015. The final adjusted purchase price for the acquisition was approximately $17.0 million . The Company accounted for this acquisition as a business combination. With the acquisition of the EMCORE ultra narrow linewidth tunable laser products, the Company aims to strengthen its portfolio of High Speed Products. In connection with the acquisition, the Company incurred approximately $0.9 million in total acquisition-related costs related to legal, accounting and other professional services. The acquisition costs were expensed as incurred and included in operating expenses in the Company’s consolidated statement of operations. The fair values assigned to intangible assets acquired were based on valuations using estimates and assumptions provided by management, with the assistance of an independent third party appraisal firm. The excess purchase price over those fair values was recorded as goodwill. The Company used best estimates and assumptions as part of the purchase price allocation process to value assets acquired and liabilities assumed at the acquisition date and during the Company’s process of obtaining further information, further refined estimates and assumptions, including the acquired property, plant and equipment, prepaid and other current assets, which primarily consisted of held-for-sale assets and accounts payable. As a result, during the measurement period completed in 2015, the Company recorded adjustments related to the acquired net accounts receivable, the acquired net inventories, the assumed sales tax accrual and the acquired prepaid expenses and other current assets by immaterial amounts, and decreased goodwill by a corresponding net amount. Goodwill recorded consisted of a valuable assembled workforce and market synergy. The amounts assigned to goodwill are deductible for income tax purposes. The following table summarizes the allocation of the assets acquired and liabilities assumed as of the acquisition date and subsequent adjustments (in thousands): Total purchase consideration: Cash paid $ 1,500 Notes payable 15,482 Total $ 16,982 Fair value of assets acquired: Accounts receivable $ 9,274 Inventories 1,693 Prepaid expenses and other current assets 670 Property, plant and equipment 6,917 Intangible assets acquired: Developed technology 4,100 Customer relationships 700 Total $ 23,354 Less: fair value of liabilities assumed: Accounts payable $ (7,427 ) Accrued liabilities (60 ) Total $ (7,487 ) Goodwill $ 1,115 Purchased intangibles with finite lives will be amortized on a straight-line basis over their respective estimated useful lives. The following table presents details of the purchase price allocated to the acquired intangible assets at the acquisition date: Useful Life Purchased intangible assets (In years) (In thousands) Developed technology 7 $ 4,100 Customer relationships 2 700 Total purchased intangible assets $ 4,800 The following unaudited supplemental pro forma information presents the combined results of operations of NeoPhotonics Corporation for the periods presented as though the companies had been combined as of the beginning of 2014. In the year ended December 31, 2017, 2016 and 2015, revenue related to products acquired from EMCORE was approximately $96.0 million , $80.8 million and $55.8 million , respectively. The pro forma financial information reflects adjustments related to transaction costs of $0.3 million and $0.6 million in the years ended December 31, 2015 and 2014, respectively, as well as immaterial employee expense in the year ended December 31, 2015. Incremental intangible amortization, inventory and depreciation adjustments were also added to the 2014 period. There were no sales between the business acquired from EMCORE and the Company in the periods presented. The unaudited pro forma results do not assume any operating efficiencies as a result of the consolidation of operations (in thousands, except per share data): Years Ended December 31, 2015 2014 Revenue $ 339,439 $ 353,003 Net income (loss) $ 4,088 $ (23,221 ) Basic net income (loss) per share $ 0.11 $ (0.72 ) Diluted net income (loss) per share $ 0.11 $ (0.72 ) EigenLight Corporation In November 2015 the Company closed an acquisition of the business and products of EigenLight Corporation for cash consideration of $0.4 million in an asset transaction. The Company accounted for this as a business combination and the majority of the purchase price was allocated to inventory and property, plant and equipment. |
Purchased intangible assets
Purchased intangible assets | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Purchased intangible assets | Purchased intangible assets Purchased intangible assets consist of the following (in thousands): December 31, 2017 December 31, 2016 Gross Assets Accumulated Amortization Net Assets Gross Assets Accumulated Amortization Net Assets Technology and patents $ 37,684 $ (34,923 ) $ 2,761 $ 36,918 $ (33,316 ) $ 3,602 Customer relationships 15,425 (14,835 ) 590 15,039 (13,990 ) 1,049 Leasehold interest 1,309 (366 ) 943 1,226 (315 ) 911 $ 54,418 $ (50,124 ) $ 4,294 $ 53,183 $ (47,621 ) $ 5,562 Amortization expense relating to technology and patents and the leasehold interest intangible assets is included within cost of goods sold, and customer relationships and the non-compete agreements within operating expenses. The following table presents details of the amortization expense of the Company’s purchased intangible assets as reported in the consolidated statements of operations (in thousands): Years ended December 31, 2017 2016 2015 Cost of goods sold $ 869 $ 2,871 $ 3,349 Operating expenses 472 1,609 1,791 Total $ 1,341 $ 4,480 $ 5,140 The estimated future amortization expense of purchased intangible assets as of December 31, 2017, is as follows (in thousands): 2018 $ 1,208 2019 807 2020 689 2021 689 2022 103 Thereafter 798 $ 4,294 |
Balance Sheet Components
Balance Sheet Components | 12 Months Ended |
Dec. 31, 2017 | |
Balance Sheet Related Disclosures [Abstract] | |
Balance sheet components | Balance sheet components Restricted Cash Restricted cash was as follows (in thousands): December 31, 2017 2016 Restricted in connection with notes payable and short-term borrowing (see Note 11) $ 2,658 $ 2,098 Restricted in connection with asset purchase agreement (see Note 9) — 1,987 Total restricted cash $ 2,658 $ 4,085 Reported as: Restricted cash $ 2,658 $ 4,085 Accounts receivable, net Accounts receivable, net were as follows (in thousands): December 31, 2017 2016 Accounts receivable $ 65,499 $ 78,143 Trade notes receivable 2,356 2,892 Allowance for doubtful accounts (626 ) (425 ) $ 67,229 $ 80,610 The table below summarizes the movement in the Company’s allowance for doubtful accounts (in thousands): Balance at December 31, 2014 $ (241 ) Provision for bad debt (640 ) Write-offs, net of recoveries 38 Balance at December 31, 2015 (843 ) Reversal of provision for bad debt 382 Write-offs, net of recoveries 36 Balance at December 31, 2016 (425 ) Provision for bad debt (577 ) Write-offs, net of recoveries 376 Balance at December 31, 2017 $ (626 ) Inventories Inventories were as follows (in thousands): December 31, 2017 2016 Raw materials $ 33,400 $ 23,348 Work in process 13,246 10,996 Finished goods (1) 20,655 13,893 $ 67,301 $ 48,237 (1) Included in finished goods was $7.1 million and $8.3 million of inventory at customer vendor managed inventory locations at December 31, 2017 and 2016 , respectively. Prepaid expenses and other current assets Prepaid expenses and other current assets were as follows (in thousands): December 31, 2017 2016 Prepaid taxes and taxes receivable $ 15,162 $ 16,102 Transition services agreement receivable (see Note 9) 12,817 — Deposits and other prepaid expenses 4,138 3,571 Other receivable 4,118 2,723 $ 36,235 $ 22,396 Property, plant and equipment, net Property, plant and equipment, net were as follows (in thousands): December 31, 2017 2016 Land $ 3,083 $ 2,847 Buildings 24,102 22,107 Machinery and equipment 189,527 160,314 Furniture, fixtures, software and office equipment 9,948 8,413 Leasehold improvements 26,007 14,541 252,667 208,222 Less: Accumulated depreciation (125,102 ) (101,355 ) $ 127,565 $ 106,867 Depreciation expense was $27.0 million , $17.9 million and $17.7 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. In 2017, the Company wrote off certain leasehold improvements in its facilities in California and recorded a restructuring charge of $0.1 million in connection with the Company’s restructuring actions. Purchases of property, plant and equipment unpaid as of December 31, 2017, 2016 and 2015 was $10.0 million , $16.1 million and $2.5 million , respectively. Accrued and other current liabilities Accrued and other current liabilities were as follows (in thousands): December 31, 2017 2016 Employee-related $ 12,990 $ 18,654 Transition services agreement payables (see Note 9) 11,222 — Asset sale related contingent liabilities (see Note 9) 7,135 — Income and other taxes payable 542 3,956 Deferred revenue, current 939 956 Accrued warranty 1,334 678 Rusnano payment derivative — 389 Other accrued expenses 9,080 5,992 $ 43,242 $ 30,625 Accrued warranty The table below summarizes the movement in the warranty accrual, which is included in accrued and other current liabilities (in thousands): Years ended December 31, 2017 2016 2015 Beginning balance $ 678 $ 1,175 $ 1,751 Warranty accruals 1,263 102 79 Settlements (607 ) (599 ) (655 ) Ending balance $ 1,334 $ 678 $ 1,175 Other noncurrent liabilities Other noncurrent liabilities were as follows (in thousands): December 31, 2017 2016 Pension and other employee-related $ 4,675 $ 5,045 Deferred rent 2,908 1,509 Deferred revenue 617 136 Government grant 1,095 1,048 Rusnano payment derivative 389 — Deferred income tax liabilities 106 46 Asset retirement obligations and other 4,285 1,155 $ 14,075 $ 8,939 |
Asset sale
Asset sale | 12 Months Ended |
Dec. 31, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Asset sale | Asset sale In January 2017, the Company completed the sale of its Low Speed Transceiver Products’ assets to APAT OE pursuant to an asset purchase agreement dated December 14, 2016 for consideration of approximately $25.0 million (in RMB equivalent) plus approximately $1.4 million (in RMB equivalent) post-closing transaction service fees to be received under a transition services agreement with APAT OE in which the Company will provide short-term manufacturing and other specific services pursuant to such agreement. The related supply chain purchase commitments and value-added tax obligations have been assumed by APAT OE. The receivable and payable balances related to the transition service arrangement were $12.8 million and $11.2 million , respectively, as of December 31, 2017. As of December 31, 2016, the balance in assets held for sale was $13.9 million , consisting of $13.1 million in inventories and $0.8 million in property, plant and equipment. As a result of post-closing adjustments, total consideration was reduced by approximately $3.4 million for inventory. In addition, an immaterial amount of property, plant and equipment was reclassified from assets held for sale. Upon closing, assets sold to APAT OE were approximately $12.8 million , including approximately $12.1 million in inventories and $0.7 million in property, plant and equipment. The adjusted consideration received of approximately $21.6 million is subject to further reduction of up to $10.0 million for any indemnification claims. As of December 31, 2017, the Company has a reserve of $7.1 million within accrued and other current liabilities for warranty claims. The indemnification warranties expired on June 30, 2017. The Company recognized a $2.2 million gain on the sale of these assets within operating loss in 2017. All of the Low Speed Transceiver Products were part of the Company’s Network Products and Solution product group and included the low speed optical network (PON) products for which the end-of-life plan was announced in mid-2016. |
Restructuring
Restructuring | 12 Months Ended |
Dec. 31, 2017 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Restructuring In 2017, the Company initiated restructuring actions in order to focus on key growth initiatives and a lower break even revenue level through lower operating expenses and manufacturing costs. Actions included a reduction in force, facilities consolidation and certain asset-related adjustments. The Company recorded $0.8 million and $3.9 million in restructuring charges within cost of goods sold and operating expenses in 2017, respectively. Additionally, the Company recorded a charge of $2.0 million to cost of goods sold in 2017 for discontinued product inventory write-downs related the Company's decisions to end-of-life certain products. There were no restructuring charges in 2016. There were no restructuring liabilities as of December 31, 2016. Employee Severance Facilities Consolidation Asset-Related Total Restructuring obligations December 31, 2016 $ — $ — $ — $ — Charges 2,308 2,003 434 4,745 Cash payments (2,308 ) (310 ) (177 ) (2,795 ) Non-cash settlements and other — (113 ) (214 ) (327 ) Restructuring obligations December 31, 2017 $ — $ 1,580 $ 43 $ 1,623 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Debt | Debt The table below summarizes the carrying amount and weighted average interest rate of the Company’s debt (in thousands, except percentages): December 31, 2017 December 31, 2016 Carrying Amount Interest Rate Carrying Amount Interest Rate Note payable to Pudong Bank $ 17,000 4.10 % $ — — Note payable to CITIC Bank $ 17,000 4.00 % $ — — Notes payable to suppliers $ 1,607 $ 6,390 — Short-term borrowing under Comerica Bank Credit Facility — 23,800 3.37 % Total notes payable and short-term borrowing $ 35,607 $ 30,190 Long-term debt, current and non-current: Borrowing under Wells Fargo Credit Facility $ 30,018 3.29 % $ — Mitsubishi Bank loans $ 16,924 1.05% -1.45% $ 11,253 1.43 % Unaccreted discount and issuance costs within current portion of long-term debt (86 ) (108 ) Unaccreted discount and issuance costs within long-term debt, net of current portion (295 ) (183 ) Total long-term debt, net of unaccreted discount and issuance costs $ 46,561 $ 10,962 Reported as: Current portion of long-term debt $ 6,005 $ 747 Long-term debt, net of current portion 40,556 10,215 Total long-term debt, net of unaccreted discount and issuance costs $ 46,561 $ 10,962 Notes payable The Company regularly issues notes payable to its suppliers in China. These notes are supported by non-interest bearing bank acceptance drafts issued under the Company’s existing line of credit facilities and are due three to six months after issuance. As a condition of the notes payable arrangements, the Company is required to keep a compensating balance at the issuing banks that is a percentage of the total notes payable balance until the amounts are settled. As of December 31, 2017, the Company’s subsidiary in China had three , line of credit facilities with banking institutions: • Under the first line of credit facility with Pudong Bank, the Company can borrow up to RMB 120.0 million ( $18.4 million ) for short-term loans at varying interest rates, or up to approximately RMB 171.4 million ( $26.3 million ) for bank acceptance drafts (with a 30% compensating balance requirement). This line of credit facility expires in July 2019. In November 2017, the Company borrowed $17.0 million under this line which bears interest at 4.1% and will mature in May 2018. • Under the second line of credit facility with Pudong Bank, which expires in July 2019 , the Company can borrow up to RMB 30.0 million ( $4.6 million ) for short-term loans at varying interest rates, or up to approximately RMB 42.9 million ( $6.6 million ) for bank acceptance drafts (with a 30% compensating balance requirement). • In December 2017, the Company's subsidiary in China entered into a third line of credit facility with CITIC Bank in China, which expires in November 2018. The purpose of the credit facility is to provide short-term borrowings, bank acceptance drafts and letters of credits. Under this credit facility, the Company can borrow up to approximately RMB 250 million ( $38.4 million ) at varying interest rates. The Company had another line of credit facility with CITIC Bank in China which expired during September 2017. In July 2017, the Company borrowed $17.0 million under this line which bore interest at LIBOR plus 2.55% . The amount of $17.0 million under this line was repaid to CITIC Bank in January 2018. Under these line of credit facilities, the non-interest bearing bank acceptance drafts issued in connection with the Company's notes payable to its suppliers in China, had an outstanding balance of $1.6 million and $6.4 million as of December 31, 2017 and December 31, 2016, respectively. In addition to the outstanding notes payable, three letters of credit totaling $1.6 million were issued to its suppliers in 2016 for equipment purchases delivered by December 2016. These letters of credit required a 30% compensating balance. As of December 31, 2016, the outstanding balance of these letters of credit was immaterial and was fully repaid as of December 31, 2017. The total amount available for short-term borrowings under these line of credit facilities as of December 31, 2017 was $43.4 million . As of December 31, 2017 and December 31, 2016, compensating balances relating to bank acceptance drafts and letters of credit issued to suppliers and the Company's subsidiaries totaled $0.5 million and $2.1 million , respectively. Compensating balances are classified as restricted cash on the Company’s consolidated balance sheets. Credit Facilities The Company had a credit agreement, as amended with the Comerica Bank as lead bank in the U.S. (the “Comerica Bank Credit Facility”) with a borrowing capacity to $30.0 million . In January 2017, the Company amended the Comerica Bank Credit Facility to extend the maturity to April 30, 2017 and to remove the financial covenant related to EBDITA. In April 2017, the Company amended the Comerica Bank Credit Facility to extend the maturity date to July 31, 2017 and to add a financial covenant that required maintenance of a modified EBITDA. In June 2017, the Company amended the Comerica Bank Credit Facility to extend the maturity to August 31, 2017, to allow NeoPhotonics China to borrow up to $17.0 million , to limit the indebtedness under the facility to $20.0 million and to modify the EBITDA requirement. In August 2017, the Credit Facility was further amended to extend the maturity to September 30, 2017. As of December 31, 2016, the Company was in compliance with the covenants of the credit facility except for exceeding the capital expenditure limit as of December 31, 2016 for which a waiver was obtained subsequent to the year end. Borrowings under the Comerica Bank Credit Facility bore interest at an interest rate option of a base rate as defined in the agreement plus 1.75% or LIBOR plus 2.75% . The base rate was the greater of (a) the effective prime rate, (b) the Federal Funds effective rate plus one percent, and (c) the daily adjusting LIBOR rate plus one percent. The outstanding balance was $23.8 million as of December 31, 2016 and the rate on the LIBOR option was 3.37% . In September 2017, the Company entered into a revolving line of credit agreement with Wells Fargo as the administrative agent for a lender group (the "Wells Fargo Credit Facility" or "Credit Facility"), and the amount outstanding under the Comerica Bank Credit Facility was paid in full. The Wells Fargo Credit Facility provides for borrowings equal to the lower of (a) a maximum revolver amount of $50.0 million , or (b) an amount equal to 80% - 85% of eligible accounts receivable plus 100% of qualified cash balances up to $15.0 million , less certain discretionary adjustments ("Borrowing Base"). The maximum revolver amount may be increased by up to $25.0 million , subject to certain conditions. At closing, $50.0 million was available, of which $30.0 million was drawn. The Company used $20.0 million of this amount to pay the principal and interest due under the Comerica Bank Credit Facility, which has since been terminated. The Credit Facility matures on June 30, 2022 and borrowings bear interest at an interest rate option of either (a) the LIBOR rate, plus an applicable margin ranging from 1.50% to 1.75% per annum, or (b) the prime lending rate, plus an applicable margin ranging from 0.50% to 0.75% per annum. The Company is also required to pay a commitment fee equal to 0.25% of the unused portion of the Credit Facility. The Credit Facility agreement ("Agreement") requires prepayment of the borrowings to the extent the outstanding balance is greater than the lesser of (a) the most recently calculated Borrowing Base, or (b) the maximum revolver amount. The Company is required to maintain a combination of certain defined cash balances and unused borrowing capacity under the Credit Facility of at least $20.0 million , of which at least $5.0 million shall include unused borrowing capacity. The Agreement also restricts the Company's ability to dispose of assets, permit change in control, merge or consolidate, make acquisitions, incur indebtedness, grant liens, make investments and make certain restricted payments. Borrowings under the Credit Facility are collateralized by substantially all of the Company's assets. The Company was in compliance with the covenants of this Credit Facility as of December 31, 2017. As of December 31, 2017, the outstanding balance under the Credit Facility was $30.0 million and the weighted average rate under the LIBOR option was 3.29% The remaining borrowing capacity as of December 31, 2017 was $20.0 million , of which $5.0 million is required to be maintained as unused borrowing capacity. Acquisition-related In 2015, the Company repaid in full the $15.5 million note issued for the acquisition of the tunable laser products of EMCORE in January 2015 as well as the remaining balance of the 1,050 million Japanese Yen (the “JPY”) loan issued for the acquisition of NeoPhotonics Semiconductor in March 2013. Mitsubishi Bank Loans On February 25, 2015, the Company entered into certain loan agreements and related agreements with the Bank of Tokyo-Mitsubishi UFJ, Ltd. (the "Mitsubishi Bank") that provided for (i) a term loan in the aggregate principal amount of 500 million Japanese Yen (the “JPY”) ( $4.4 million ) (the “Term Loan A”) and (ii) a term loan in the aggregate principal amount of one billion JPY ( $8.9 million ) (the “Term Loan B” and together with the Term Loan A, the “2015 Mitsubishi Bank Loans”). The Mitsubishi Bank Loans are secured by a mortgage on certain real property and buildings owned by our Japanese subsidiary. Interest on the 2015 Mitsubishi Bank Loans accrues and is paid monthly based upon the annual rate of the monthly Tokyo Interbank Offer Rate (TIBOR) plus 1.40% . The Term Loan A requires interest only payments until the maturity date of February 23, 2018 , with a lump sum payment of the aggregate principal amount on the maturity date. The Term Loan B requires equal monthly payments of principal equal to 8,333,000 JPY until the maturity date of February 25, 2025, with a lump sum payment of the balance of 8,373,000 JPY on the maturity date. Interest on the Term Loan B is accrued based upon monthly TIBOR plus 1.40% and is secured by real estate collateral. In conjunction with the execution of the Bank Loans, the Company paid a loan structuring fee, including consumption tax, of 40,500,000 JPY ( $0.4 million ). The Term Loan A of 500 million JPY (approximately $4.4 million ) was repaid to the Mitsubishi Bank in January 2018. The 2015 Mitsubishi Bank Loans contain customary representations and warranties and customary affirmative and negative covenants applicable to the Company’s Japanese subsidiary, including, among other things, restrictions on cessation in business, management, mergers or acquisitions. The 2015 Mitsubishi Bank Loans contain financial covenants relating to minimum net assets, maximum ordinary loss and a dividends covenant. Outstanding principal balance under the 2015 Mitsubishi Bank Loans and unamortized debt issuance costs were approximately 1.2 billion JPY (approximately $4.4 million for Term Loan A and $6.4 million for Term Loan B) and 43.0 million JPY (approximately $0.4 million ), respectively, as of December 31, 2017. The Company was in compliance with the related covenants as of December 31, 2017 and December 31, 2016. In March 2017, the Company entered into a loan agreement and related agreements with the Mitsubishi Bank for a term loan of 690 million JPY (approximately $6.1 million ) (the “2017 Mitsubishi Bank Loan”) to acquire manufacturing equipment for its Japanese subsidiary. This loan is secured by the manufacturing equipment acquired from the loan proceeds. Interest on the 2017 Mitsubishi Bank Loan is based on the annual rate of the monthly TIBOR rate plus 1.00% . The 2017 Mitsubishi Bank Loan matures on March 29, 2024 and requires monthly interest and principal payments over 72 months commencing in April 2018. The loan contains customary covenants relating to minimum net assets, maximum ordinary loss and a dividends covenant. The loan is available from March 31, 2017 to March 30, 2018 and 690 million JPY (approximately $6.1 million ) under this loan was drawn as of December 31, 2017. At December 31, 2017, maturities of long-term debt were as follows (in thousands): 2018 $ 6,091 2019 1,908 2020 1,908 2021 1,908 2022 31,926 Thereafter 3,201 $ 46,942 |
Pension Plans
Pension Plans | 12 Months Ended |
Dec. 31, 2017 | |
Compensation and Retirement Disclosure [Abstract] | |
Pension Plans | Pension Plans Japan defined benefit pension plans In connection with its acquisition of NeoPhotonics Semiconductor in 2013, the Company assumed responsibility for two defined benefit plans that provide retirement benefits to its NeoPhotonics Semiconductor employees in Japan: the Retirement Allowance Plan (“RAP”) and the Defined Benefit Corporate Pension Plan (“DBCPP”). The RAP is an unfunded plan administered by the Company. Effective February 28, 2014, the DBCPP was converted to a defined contribution plan (“DCP”). In May 2014, LAPIS transferred approximately $2.0 million into the newly formed DCP which was the allowable amount that can be transferred according to the Japanese regulations. LAPIS also paid the Company approximately $0.3 million in connection with the conversion of the plan. Additionally, the Company transferred the net unfunded projected benefit obligation amount from the DBCPP to the RAP and froze the RAP benefit at the February 28, 2014 amount. Under the RAP, lump sum benefits are provided upon retirement or upon certain instances of termination. In 2014, the Company reclassified $0.2 million and $0.1 million from accumulated other comprehensive income to cost of goods sold and operating expenses, respectively. The funded status of these plans for the years ended December 31, 2017, 2016 and 2015 was as follows (in thousands): 2017 2016 2015 RAP RAP RAP Change in projected benefit obligation: Projected benefit obligation, beginning of period $ 4,802 $ 5,086 $ 5,054 Service cost — — — Interest cost 5 11 10 Benefits paid (411 ) (551 ) — Actuarial (gain)/loss 32 72 40 Curtailment/Settlement — — — Transfer from DBCPP to RAP — — — Currency translation adjustment 188 184 (18 ) Projected benefit obligation, end of period $ 4,616 $ 4,802 $ 5,086 Change in plan assets: Plan assets at fair value, beginning of period $ — $ — $ — Employer contributions — — — Benefits paid — — — Transfer to DCP — — — Currency translation adjustment — — — Plan assets at calculated amount, end of period $ — $ — $ — Amounts recognized in consolidated balance sheets: Accrued and other current liabilities $ 488 $ 393 $ 497 Other noncurrent liabilities $ 4,128 $ 4,409 $ 4,589 Amount recognized in accumulated other comprehensive loss: Defined benefit pension plans adjustment $ 271 $ 230 $ 153 Accumulated benefit obligation, end of period $ 4,616 $ 4,802 $ 5,086 Net periodic pension cost associated with these plans for the years ended December 31, 2017, 2016 and 2015 included the following components (in thousands): 2017 2016 2015 RAP RAP RAP Service cost $ — $ — $ — Interest cost 5 11 10 Other — — — Curtailment/settlement (gain) loss — — — Net periodic pension (gain) costs $ 5 $ 11 $ 10 The projected and accumulated benefit obligations for the RAP were calculated as of December 31, 2017 and 2016 using a discount rate assumption of 0.1% and 0.1% , respectively. Estimated future benefit payments under the RAP are as follows (in thousands): 2018 $ 387 2019 183 2020 501 2021 611 2022 288 2023 - 2026 1,342 Thereafter 1,304 $ 4,616 401(k) Plan The Company maintains a savings and retirement plan qualified under Section 401(k) of the Internal Revenue Code of 1986, as amended (the "IRC"). The Company currently matches a portion of all eligible employee contributions which vest immediately. The Company’s matching contributions to the plan totaled $0.5 million , $0.4 million and $0.3 million , respectively, for the years ended December 31, 2017, 2016, and 2015. |
Commitments and contingencies
Commitments and contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and contingencies | Commitments and contingencies Leases The Company leases various facilities under non-cancelable operating leases expiring through 2027. On June 13, 2017, the Company entered into an office lease for approximately 39,000 square feet for the Company’s current headquarters in San Jose (the “Lease”) with a commencement date of June 1, 2017. The Company’s existing office lease for the facility was terminated and replaced by the new Lease. Upon commencement, the Lease had an initial term of one hundred and twenty-three ( 123 ) months, ending September 30, 2027, (the “Initial Term”) with a monthly rental rate of $41,388 , escalating annually to a maximum monthly rental rate of approximately $72,525 in the last year of the Initial Term. Upon termination of the Lease, the Company anticipates a restoration cost of approximately $0.7 million . In September 2016, the Company entered into an office lease for approximately 64,000 square feet of office and laboratory space located adjacent to the Company’s current headquarters in San Jose (the “Lease”). The term of the Lease commenced on January 1, 2017. Upon commencement, the Lease has an initial term of one hundred and twenty-nine ( 129 ) months, ending on September 30, 2027 (the “Initial Term”), with a monthly rental rate of $144,000 , escalating annually to a maximum monthly rental rate of approximately $194,000 in the last year of the Initial Term. The Landlord has agreed to provide the office and laboratory space to the Company free of charge for the first nine months of the Initial Term through September 30, 2017. Upon termination of the Lease, the Company anticipates a restoration cost of approximately $3.1 million . As of December 31, 2017, the future minimum commitments under the Company’s non-cancelable operating leases are as follows (in thousands): Years ending December 31, 2018 $ 3,512 2019 3,608 2020 3,069 2021 2,977 2022 2,939 Thereafter 14,370 $ 30,475 The total minimum lease commitment amount above does not include minimum sublease rent income of $1.7 million receivable in the future under non-cancelable sublease agreements. The Company recognizes rent expense on a straight-line basis over the lease period. Rent expense under the Company’s operating leases was $4.6 million , $2.4 million and $2.2 million , respectively, in the years ended December 31, 2017, 2016, and 2015. Litigation From time to time, the Company is subject to various claims and legal proceedings, either asserted or unasserted, that arise in the ordinary course of business. The Company accrues for legal contingencies if the Company can estimate the potential liability and if the Company believes it is probable that the case will be ruled against it. If a legal claim for which the Company did not accrue is resolved against it, the Company would record the expense in the period in which the ruling was made. The Company believes that the likelihood of an ultimate amount of liability, if any, for any pending claims of any type (alone or combined) that will materially affect the Company’s financial position, results of operations or cash flows is remote. The ultimate outcome of any litigation is uncertain, however, and unfavorable outcomes could have a material negative impact on the Company’s financial condition and operating results. Regardless of outcome, litigation can have an adverse impact on the Company because of defense costs, negative publicity, diversion of management resources and other factors. On January 5, 2010, Finisar Corporation, or Finisar, filed a complaint in the U.S. District Court for the Northern District of California against Source Photonics, Inc., MRV Communications, Inc., Oplink Communications, Inc. and the Company, or collectively, the co-defendants. In the complaint Finisar alleged infringement of certain of its U.S. patents. In 2010 the Company filed an answer to the complaint and counterclaims, asserting two claims of patent infringement and additional claims. The court dismissed without prejudice all co-defendants (including the Company) except Source Photonics, Inc., on grounds that such claims should have been asserted in four separate lawsuits, one against each defendant. This dismissal does not prevent Finisar from bringing a new similar lawsuit against the Company. In 2011 the Company and Finisar agreed to suspend their respective claims and in 2012 they further agreed to toll their respective claims. While there has been no action on this matter since 2012, the Company is currently unable to predict the outcome of this dispute and therefore cannot determine the likelihood of loss nor estimate a range of possible loss. In January 2013, the Company was served with a lawsuit, filed in Belgium by a distributor called Laser 2000 Beneluo SA (“Laser 2000”) claiming unpaid commissions. The distributor agreement was formally terminated as of January 3, 2012. The Company paid $492,000 to Laser 2000 as partial settlement of claims and to avoid penalties from the Court and submitted a legal brief to court on September 16, 2013. Laser 2000 filed a response on December 16, 2013 and the Company filed the final rebuttal brief on January 30, 2014. In March 2015, the Belgian Court issued a ruling awarding Laser 2000 approximately one million euros in damages (approximately $1,100,000 at current exchange rates). The Company did not believe it would ultimately be liable for the full amount of damage and accrued $0.3 million in March 2015 for estimated probable net litigation expense relating to this matter. The Company appealed this verdict and, in April 2017 settled this case and paid approximately $250,000 . On December 27, 2016 the Company was served with a lawsuit filed by Lestina International Ltd. (“Lestina”), in Santa Clara County, CA. The lawsuit is regarding a dispute of approximately $3 million related to purchase orders for the Company’s Low Speed Transceiver Products that was soon thereafter sold by the Company to APAT OE in January 2017. The purchase orders in question were included in the asset sale and were assumed liabilities by the purchaser of the business. The Company is unable to predict with certainty the outcome of this matter, but is seeking to resolve the matter either through a court dismissal of the action or a resolution with the plaintiff and/or the purchaser of the Low Speed Transceiver Products’ assets. Discovery is currently in process. Because the purchase orders in question were an assumed liability of the Low Speed Transceiver Products’ assets that were transferred to the purchaser, the Company does not expect that the ultimate costs to resolve these matters will have a material adverse effect on its consolidated financial position, results of operations or cash flows. APAT Arbitration On June 16, 2017, APAT Optoelectronics Components Co., Ltd. filed an arbitration claim against NeoPhotonics (China) Co., Ltd. (the Company’s China subsidiary), claiming that approximately $1.5 million of the inventory that was sold to APAT OE by NeoChina in an Asset Purchase Agreement executed between the parties on December 14, 2016 was aged inventory and of no value. The arbitration was heard in the Shenzhen Court of International Arbitration on August 2, 2017. On October 25, 2017, NeoPhotonics (China) Co., Ltd. was informed that it was successful in the defense of the dispute and was also successful in its counterclaim against APAT Optoelectronics Components Co., Ltd. NeoPhotonics (China) Co. Ltd. was awarded approximately RMB 700,000 (approximately USD $100,000 ) in compensatory damages and attorney fees as well as having the approximately $1.5 million claim against it rejected in its entirety. Indemnifications In the normal course of business, the Company enters into agreements that contain a variety of representations and warranties and provide for general indemnification. The Company’s exposure under these agreements is unknown because it involves claims that may be made against the Company in the future, but have not yet been made. To date, the Company has not paid any claims or been required to defend any action related to its indemnification obligations. However, the Company may record charges in the future as a result of these indemnification obligations. In November 2016 Oyster Communications, Inc. filed nine patent lawsuits against several defendants in the U.S. District Court for the Eastern District of Texas, including one against Cisco Systems, Inc. One defendant has successfully transferred their case to the U.S. District Court for the Northern District of California. Additional defendant requested venue changes are still pending. The Company was not named as a defendant in any of the lawsuits. In July 2017, however, Cisco notified the Company that it would be seeking indemnification from the Company for claims against Cisco arising from the lawsuits. The Company is investigating the matter but is currently unable to predict the outcome of this matter and therefore cannot determine the likelihood of loss nor estimate a range of possible loss. Purchase obligations The Company has open purchase orders with its suppliers for the purchase of inventory and other items in the ordinary course of its business. As of December 31, 2017, the Company’s estimate of outstanding amounts under these purchase orders was approximately $32.1 million , primarily expected to be purchased within the next 12 months. Certain of these open purchase orders may be cancellable without penalty. Penalty Payment Derivative In connection with a private placement transaction with Joint Stock Company "Rusano" in 2012, (formerly Open Joint Stock Company “RUSNANO"), or Rusnano, in 2012, the Company agreed to certain performance obligations including establishing a wholly-owned subsidiary in Russia and making a $30.0 million investment commitment (the ‘Investment Commitment’) towards the Company’s Russian operations, which could be partially satisfied by cash and/or non-cash investment inside or outside of Russia and/or by way of non-cash asset transfers. The Rights Agreement as amended in 2015 (the "Amended Rights Agreement") limits the maximum amount of penalties and/or exit fee (the "Rusano Payment") to be paid by the Company to $5.0 million in the aggregate and allows such payment to be reduced when certain milestones are met over time. The Amended Rights Agreement also provides for an updated investment plan for the Company’s Russian subsidiaries that includes non-cash transfer of licensing rights to intellectual property, non-cash transfers of existing equipment and commitments to complete the remaining investment milestones through 2019. The Company fulfilled its investment commitment required by 2016 and had contributed over $21.0 million in cash and assets to its subsidiaries in Russia as of December 31, 2016. Therefore, no amounts of the Rusnano Payment were due as of December 31, 2016 or December 31, 2017. As of December 31, 2017, the remaining Investment Commitment was approximately $8.0 million to be invested at any time on or before December 31, 2019. At any point between December 31, 2017 and December 31, 2019, the Company may elect to pay a $2.0 million exit fee to terminate any remaining obligations associated with the Investment Commitment. In August 2016, the Company entered into a letter of agreement with Rusnano to agree to transfer a 10G SFP+ transceiver product line and incur expected costs of approximately $0.1 million , by July 30, 2017, which will not be counted toward the Company’s overall Investment Commitment. Since the asset sale of the Company’s Low Speed Transceiver Products was completed in January 2017, the Company may undertake such expense by spending such amount in another manner to be discussed and agreed between the parties. Rusnano has non-transferable veto rights over the Company’s Russian subsidiaries’ annual budget during the investment period and must approve non-cash asset transfers to be made in satisfaction of the Investment Commitment. The Company accounted for the Rusnano Payment as an embedded derivative instrument. The fair value of the Penalty Payment derivative has been estimated at the date of the original common stock sale (April 27, 2012) and at each subsequent balance sheet date using a probability-weighted discounted future cash flow approach using unobservable inputs, which are classified as Level 3 within the fair value hierarchy. The primary inputs for this approach include the probability of achieving the Investment Commitment and a discount rate that approximates the Company’s incremental borrowing rate. After the initial measurement, changes in the fair value of this derivative are recorded in other income (expense), net. The estimated fair value of this derivative was $0.4 million as of each of December 31, 2017 and December 31, 2016. As of December 31, 2017, the derivative was reported within other noncurrent liabilities and as of December 31, 2016 the derivative was reported within accrued and other current liabilities on the Company’s consolidated balance sheets. See Note 8. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2017 | |
Stockholders' Equity Note [Abstract] | |
Stockholders’ Equity | Stockholders’ Equity Common stock As of December 31, 2017, the Company had reserved 7,297,302 shares of common stock for issuance under its stock plans and 278,673 shares of common stock for issuance under its employee stock purchase plan. Resale Registration Statement In December 2014, the Company entered into a Commitment to File a Registration Statement and Related Waiver of Registration Rights, whereby Rusnano waived certain registration rights in connection with a potential offering by the Company of shares of the Company’s common stock, and the Company committed to file with the U.S. Securities and Exchange Commission a resale registration statement on Form S-1 covering the resale of all shares of the Company’s common stock held by Rusnano. In each of 2015 and 2016, the Company filed such resale registration statement, which registered 4,972,905 shares of the Company’s common stock, at a par value of $0.0025 per share, held by Rusnano. The Company does not receive any proceeds from any sales of the Company’s common stock held by Rusnano (See Note 13). Follow-On Public Offering In 2015, the Company completed a follow-on public offering, in which the Company sold 6,866,689 shares of its common stock, including 895,655 shares of common stock sold upon the exercise in full of the overallotment option by the underwriters, at a public offering price of $7.25 per share. The Company raised approximately $45.6 million , net of underwriting discounts of $3.0 million and other offering expenses of approximately $1.2 million . Accumulated Other Comprehensive Income (Loss) The following table shows the components of accumulated other comprehensive income (loss), net of taxes, as of December 31, 2017 and 2016 (in thousands): December 31, 2017 December 31, 2016 Foreign currency translation adjustments $ 567 $ (8,235 ) Unrealized gains on available-for-sale securities (1 ) (19 ) Defined benefit pension plan adjustment (168 ) (147 ) $ 398 $ (8,401 ) No material amounts related to available-for-sale securities or the defined benefit pension plan were reclassified out of accumulated other comprehensive income (loss) during the years ended December 31, 2017, 2016 or 2015. Accumulated Deficit Approximately $8.8 million and $8.7 million of the Company’s retained earnings within its accumulated deficit at December 31, 2017 and 2016, respectively, was subject to restriction due to a requirement that its subsidiaries in China set aside at least 10% of their respective accumulated profits each year to fund statutory common reserves as well as allocate a discretional portion of their after-tax profits to their staff welfare and bonus fund. |
Stock-based compensation
Stock-based compensation | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-based compensation | Stock-based compensation Equity incentive programs 2004 Stock Option Plan In March 2004, the Company adopted the 2004 Stock Option Plan (the “2004 Plan”) for the benefit of its eligible employees, consultants and independent directors. In February 2011, in connection with the closing of the Company’s initial public offering and execution of the associated underwriting agreement, shares authorized for issuance under the 2004 Plan were cancelled (except for those shares reserved for issuance upon exercise of outstanding stock options). As of December 31, 2017, options to purchase 481,725 shares were outstanding under the 2004 Plan and no shares were available for future grant. 2007 Stock Appreciation Grants Plan In October 2007, the Company adopted its 2007 Stock Appreciation Grants Plan (the “2007 Plan”). The 2007 Plan provides for the grant of units (“stock appreciation units”) entitling the holder upon exercise to receive cash in an amount equal to the amount by which the Company’s common stock has appreciated in value. Each stock appreciation unit entitles a participant to a cash payment in the amount of the excess of the fair market value of a share of common stock on the exercise date over the fair market value of a share of common stock on the award date. The total appreciation available to a participant from the exercise of an award is equal to the number of stock appreciation units being exercised, multiplied by the amount of appreciation per stock appreciation unit. The stock appreciation units granted under the 2007 Plan were primarily granted to employees or consultants of the Company’s subsidiaries in China. As of December 31, 2017, 49,824 stock appreciation units were outstanding, of which 49,824 stock appreciation units were vested. The Company does not intend to grant additional stock appreciation units under the 2007 Plan. 2010 Equity Incentive Plan In April 2010, the Company adopted its 2010 Equity Incentive Plan (the “2010 Plan”). The 2010 Plan will terminate on April 13, 2020, unless sooner terminated by the board of directors. The 2010 Plan provides for the grant of incentive stock options, non-statutory stock options, stock appreciation rights, restricted stock awards, restricted stock unit awards, market-based stock awards, and other forms of equity compensation, or collectively, stock awards, all of which may be granted to employees, including officers, and to non-employee directors and consultants. Additionally, the 2010 Plan provides for the grant of market-based cash awards. Incentive stock options may be granted only to employees. All other awards may be granted to employees, including officers, and to non-employee directors and consultants. Under the terms of the 2010 Plan, awards may be granted at prices not less than 100% of the fair value of the Company’s common stock, as determined by the Company’s board of directors, on the date of grant for an incentive stock option and not less than 85% of the fair value of the Company’s common stock on the date of grant for a non-qualified stock option. Options vest over a period of time as determined by the board of directors, generally over a three to four year period, and expire ten years from date of grant. Initially, the aggregate number of shares of the Company’s common stock that may be issued pursuant to stock awards under the 2010 Plan was 865,420 shares. The number of shares of the Company’s common stock reserved for issuance under the 2010 Plan automatically increase on January 1st each year, starting on January 1, 2012 and continuing through January 1, 2020, by 3.5% of the total number of shares of the Company’s common stock outstanding on December 31 of the preceding calendar year, or such lesser number of shares of common stock as determined by the Company’s board of directors. The maximum number of shares that may be issued pursuant to the exercise of incentive stock options under the 2010 Plan is 8,000,000 shares. As of December 31, 2017, stock options to purchase and restricted stock units to convert to a total of 5,301,808 shares of common stock were outstanding under the 2010 Plan and 909,805 shares were reserved for future issuance. 2010 Employee Stock Purchase Plan In February 2011, the Company adopted its 2010 Employee Stock Purchase Plan (the “2010 ESPP”). The 2010 ESPP was implemented through a series of offerings of purchase rights to eligible U.S. employees. The offering period is for 12 months beginning November 16 th of each year, with two purchase dates on May 15 th and November 15 th . Due to the delay in filing its 2013 Annual Report on Form 10-K, in May 2014 the Compensation Committee of the Company’s Board of Directors (the “Committee”) rescheduled the May 15 purchase date under the then offering period to June 17, 2014. Additionally, the Committee waived the existing purchase limits for the June 17, 2014 purchase only and created a modification of the purchase price formula for such offering period. In connection with this modification, the Company recorded an immaterial charge as stock based compensation expense in its 2014 consolidated statements of operations. The 2010 ESPP initially authorized the issuance of 342,568 shares of the Company’s common stock pursuant to purchase rights granted to employees or to employees of designated affiliates. The number of shares of common stock reserved for issuance automatically increase on January 1st of each year, starting January 1, 2012 and continuing through January 1, 2020, in an amount equal to the lesser of (1) 3.5% of the total number of shares of common stock outstanding on December 31 st of the preceding calendar year, (2) 600,000 shares of common stock or (3) such lesser number of shares of common stock as determined by the Company’s board of directors. As of December 31, 2017, the Company had 278,673 shares reserved for future issuance. 2011 Inducement Award Plan In September 2011, the Company adopted its 2011 Inducement Award Plan (the “2011 Plan”). The 2011 Plan provides for awarding options, stock appreciation rights, restricted stock grants, restricted stock units and other awards to new employees of the Company and its affiliates, including as a result of future business acquisitions. All options under this plan will be designated as non-statutory stock options. The number of shares initially reserved for issuance under the 2011 Plan was 750,000 shares. The exercise price of awards shall be not less than 100% of the fair market value of the Company’s common stock on the date of grant. Each stock appreciation right grant will be denominated in shares of common stock equivalents. Options and stock appreciation rights have a maximum term of ten years measured from the date of grant, subject to earlier termination following the individual’s cessation of service with the Company. In 2015, an additional 100,000 shares were authorized for issuance by the Company’s board of directors. As of December 31, 2017, stock options to purchase and restricted stock units to convert to a total of 554,633 shares of common stock were outstanding under the 2011 Plan and 49,331 shares were reserved for future issuance. Determining Fair Value The Company estimated the fair value of certain stock-based awards using a Black-Scholes-Merton valuation model with the following assumptions: Years ended December 31, Stock options 2017 2016 2015 Weighted-average expected term (years) 5.99 5.75 5.33 Weighted-average volatility 65% 65% 60% Risk-free interest rate 2.02%-2.08% 1.01%-1.76% 1.37%-1.85% Expected dividends — % — % — % Stock appreciation units Weighted-average expected term (years) 2.30 2.77 3.54 Weighted-average volatility 69% 61% 62% Risk-free interest rate 0.51%-1.62% 0.45%-1.47% 0.25%-1.57% Expected dividends — % — % — % ESPP Weighted-average expected term (years) 0.72 0.73 0.69 Weighted-average volatility 61% 54% 58% Risk-free interest rate 0.91%-1.31% 0.39%-0.45% 0.03%-0.14% Expected dividends — % — % — % Expected term. The expected term for stock options was estimated using the Company’s historical exercise behavior and expected future exercise behavior. Vested stock appreciation units first became exercisable upon the expiration of the lock-up period associated with the initial public offering. Therefore, the Company estimated the term of the award based on an average of the weighted-average exercise period and the remaining contractual term. The expected term for the ESPP represents the period of time from the beginning of the offering period to the purchase date. Volatility. Due to the limited history of the trading of the Company’s common stock since the initial public offering in February 2011, the expected volatility used by the Company is based on a combination of its own volatility and the volatility of similar entities. In evaluating similarity, factors such as industry, stage of life cycle, size, and financial leverage are taken into consideration. The term over which volatility was measured was commensurate with the expected term. Risk-free interest rate . The risk-free rate that the Company uses in the Black-Scholes-Merton option valuation model is based on U.S. Treasury zero-coupon issues with remaining terms similar to the expected term on the options. Expected dividends. The Company has never declared or paid any cash dividends and does not plan to pay cash dividends in the foreseeable future, and, therefore, used an expected dividend yield of zero in the valuation model. Stock-Based Compensation Expense The following table summarizes the stock-based compensation expense recognized for the years ended December 31, 2017, 2016 and 2015. Unamortized stock-based compensation costs capitalized as part of inventory were immaterial in each of the periods presented (in thousands): Years ended December 31, 2017 2016 2015 Cost of goods sold $ 1,098 $ 3,130 $ 1,335 Research and development 2,491 4,760 2,049 Sales and marketing 1,697 4,105 1,794 General and administrative 2,920 5,081 2,585 $ 8,206 $ 17,076 $ 7,763 2014 Stock Option and Stock Appreciation Rights Repricing Offer On December 18, 2014, the Company completed an offer to certain of its current employees (or engaged as a consultant to the Company) to receive the opportunity to reduce the exercise price of certain outstanding eligible options or eligible stock appreciation rights to the closing trading price of the Company’s common stock on December 18, 2014 , in exchange for such holders’ agreement to accept a new vesting schedule (the “Repricing Offer”). The eligible stock options and stock appreciation rights covered an aggregate of 2,373,692 shares of the Company’s common stock. On December 18, 2014, options to purchase 1,948,631 shares of the Company’s common stock and stock appreciation rights to purchase 87,354 shares of the Company’s common stock were repriced in the Repricing Offer. The repriced eligible options and eligible stock appreciation rights had a grant date compensation cost, net of forecasted forfeitures, of approximately $2.6 million , which included incremental compensation cost of approximately $0.9 million . The new exercise price per share for each repriced eligible option or eligible stock appreciation right is $3.50 . Each of the repriced eligible options or eligible stock appreciation rights was subject to a new vesting schedule as follows: 50% of the shares subject to such repriced eligible option or eligible stock appreciation right vested and became exercisable on January 1, 2016, and the remaining 50% vested and became exercisable in 12 equal monthly installments on each monthly anniversary thereafter, in each case subject to continued service with the Company on each applicable vesting date; provided, however, that alternative vesting applied to certain eligible options or eligible stock appreciation rights if the expiration date of such eligible options or eligible stock appreciation rights was after January 30, 2016, but on or before January 1, 2017 , then 50% of the shares subject to the repriced awards vested and became exercisable on January 1, 2016 and the remaining shares were subject to ratable monthly vesting over the remaining term ending 60 days prior to the expiration date of the repriced awards; if the expiration date of such eligible options or eligible stock appreciation rights was prior to January 30, 2016, then 100% of the shares subject to the repriced awards vested and became exercisable on the 60 th day prior to the expiration date. Stock Option and Restricted Stock Unit Activity The following table summarizes the Company’s stock option and restricted stock unit, or RSU, activity during the year ended December 31, 2017: Stock Options Restricted Stock Units Shares Available for Grant Number of Shares Weighted Average Exercise Price Number of Units Weighted Average Grant Date Fair Value Balance at December 31, 2016 768,046 4,301,340 $ 5.18 2,089,473 $ 10.15 Authorized for issuance 1,488,411 Granted (1,889,536 ) 502,746 7.37 1,386,790 7.86 Exercised/Converted (665,393 ) 3.73 (805,463 ) 9.48 Cancelled/Forfeited 592,215 (205,164 ) 8.11 (266,163 ) 10.42 Balance at December 31, 2017 959,136 3,933,529 $ 5.55 2,404,637 $ 9.02 The following table summarizes information about stock options outstanding as of December 31, 2017: Options Outstanding Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (in Thousands) Vested and expected to vest 3,830,959 $ 5.48 5.83 $ 6,919,879 Exercisable 3,084,096 $ 4.78 5.08 $ 6,706,040 The fair value of options vested during the years ended December 31, 2017, 2016 and 2015 was $1.5 million , $3.9 million and $1.3 million , respectively. The intrinsic value of options vested and expected to vest and exercisable as of December 31, 2017 is calculated based on the difference between the exercise price and the fair value of the Company’s common stock as of December 31, 2017. The intrinsic value of options exercised during the years ended December 31, 2017, 2016 and 2015, was $3.0 million , $9.7 million and $1.6 million , respectively. The weighted-average fair value of options granted was $4.43 , $7.05 and $3.87 per share for the years ended December 31, 2017, 2016 and 2015, respectively. At December 31, 2017, there was $3.2 million of unrecognized stock-based compensation expense for stock options, net of estimated forfeitures, which will be recognized over the remaining weighted-average period of 2.2 years. Included in the outstanding stock options at December 31, 2017 are 1.0 million shares of market-based stock options granted to key personnel. The fair value of its market-based option grants was $4.72 for 2015 and $1.65 for 2014 using a Monte Carlo simulation model with the assumptions discussed above. These options vested in September 2016 as a result of the satisfaction of the market condition requiring the average closing price of the Company’s common stock over a period of 20 consecutive trading days to be equal to or greater than $15.00 per share and the recipients remaining in continuous service with the Company through such period. The Company recorded approximately $4.8 million in related stock-based compensation expense for these options in 2016. The following table summarizes information about RSUs outstanding as of December 31, 2017: Restricted Stock Units Outstanding Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (in Thousands) Vested and expected to vest 2,098,888 $ — 1.26 $ 13,810,684 The fair value of RSUs vested during the years ended December 31, 2017, 2016 and 2015 was $7.6 million , $1.6 million and $3.3 million , respectively. The intrinsic value of RSUs vested and expected to vest as of December 31, 2017 is calculated based on the fair value of the Company’s common stock as of December 31, 2017. The intrinsic value of RSUs converted during the years ended December 31, 2017, 2016 and 2015, was $6.4 million , $2.8 million and $4.3 million , respectively. The weighted-average fair value of RSUs granted was $7.86 , $12.33 and $7.46 per share for the years ended December 31, 2017, 2016 and 2015, respectively. At December 31, 2017, the Company had $15.3 million of unrecognized stock-based compensation expense for RSUs, net of estimated forfeitures, which will be recognized over the remaining weighted-average period of 2.1 years. The majority of the Company’s RSUs that were converted during the years ended December 31, 2017, 2016 and 2015 were net share settled. Upon each settlement date, RSUs were withheld to cover the minimum withholding tax and the remaining amounts were delivered to the recipient as shares of the Company’s common stock. In 2017, 2016 and 2015, the Company withheld 126,999 , 49,838 and 95,227 shares, respectively, and remitted cash of $1.0 million , $0.6 million and $0.7 million , respectively, to the appropriate tax authorities. Stock Appreciation Unit Activity The following table summarizes the Company’s stock appreciation unit activity during the year ended December 31, 2017: Stock Appreciation Units Weighted-Average Exercise Price Stock appreciation units outstanding as of December 31, 2016 286,768 $ 4.87 Stock appreciation units exercised (42,618 ) $ 4.50 Stock appreciation units cancelled (4,326 ) $ 4.24 Stock appreciation units outstanding as of December 31, 2017 239,824 $ 4.95 The fair value of stock appreciation units vested was immaterial in 2017, $3.7 million in 2016 and immaterial in 2015. The intrinsic value of stock appreciation units is calculated based on the difference between the exercise price and the fair value of the Company’s common stock as of December 31, 2017. Cash paid for stock appreciation units exercised was $0.2 million in 2017, $0.5 million in 2016, and $0.1 million in 2015. As of December 31, 2017 and 2016 the liability for settlement of stock appreciation units was approximately $0.8 million and $2.0 million , respectively, and was included in accrued and other current liabilities on the consolidated balance sheet, based on the fair value of the stock appreciation units, that will be recognized through settlement. Included in the outstanding stock appreciation units at December 31, 2017 were 0.2 million shares of market-based stock appreciation units granted to key personnel which were granted during 2013. These market-based units vested in September 2016 upon the satisfaction of the market condition requiring the average closing price of the Company’s common stock over a period of 20 consecutive trading days to be equal to or greater than $15.00 per share and the recipients remaining in continuous service with the Company through such period. In 2017, the Company recorded approximately $0.3 million gain as compared to expense of approximately $0.9 million in 2016, in related stock-based compensation for these stock appreciation units. Employee Stock Purchase Plan The Company issued 349,175 shares under the 2010 ESPP during the year ended December 31, 2017. As of December 31, 2017, there was $0.8 million of unrecognized stock-based compensation expense for stock purchase rights that will be recognized over the remaining offering period, through November 2018. |
Income taxes
Income taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income taxes | Income taxes The provision for income taxes is based upon the income (loss) before income taxes as follows (in thousands): Years Ended December 31, 2017 2016 2015 U.S. operations $ (52,725 ) $ (10,217 ) $ (7,212 ) Non-U.S. operations 301 13,609 13,984 $ (52,424 ) $ 3,392 $ 6,772 The components of the provision for income taxes consisted of the following (in thousands): Years Ended December 31, 2017 2016 2015 Current Federal $ (144 ) $ (127 ) $ (48 ) State 3 (13 ) (8 ) Foreign 363 (3,925 ) (3,725 ) 222 (4,065 ) (3,781 ) Deferred Federal 4 (24 ) (22 ) State — — — Foreign (1,135 ) 492 699 Total provision $ (909 ) $ (3,597 ) $ (3,104 ) The provision for income taxes differs from the amount obtained by applying the U.S. federal statutory tax rate as follows (in thousands, except percentages): Years Ended December 31, 2017 2016 2015 Federal statutory rate 35 % 35 % 35 % Tax at federal statutory rate $ 18,354 $ (1,185 ) $ (2,378 ) State taxes, net of federal benefit 2 (8 ) (8 ) Mandatory repatriation/Section 956 (5,718 ) (19 ) (66 ) Nondeductible expenses (67 ) (727 ) (135 ) Stock-based compensation (314 ) (877 ) (465 ) Change in valuation allowance 16,273 (1,455 ) (958 ) Research and development 851 1,175 1,017 Foreign rate differences (2,819 ) (1,215 ) (844 ) Foreign tax credit 144 127 30 Change in prior year deferred balances (28,262 ) 920 417 Other 647 (333 ) 286 Total provision for income taxes from continuing operations $ (909 ) $ (3,597 ) $ (3,104 ) Change in prior year deferred balances of $28.3 million include approximately $30.0 million related to remeasurement of U.S. federal deferred tax assets from corporate tax rate of 35% to 21%, based on the newly enacted tax laws in December 2017. See below for more discussion related to newly enacted tax laws in December 2017. Deferred income tax assets and liabilities comprise the following (in thousands): December 31, 2017 2016 Deferred Tax Assets: Net operating loss carryforwards $ 44,912 $ 55,274 Federal and state credits 26,170 23,372 Reserves, accruals and other 9,698 14,423 Fixed assets and intangibles 1,259 1,817 Total deferred tax assets 82,039 94,886 Valuation allowance (76,101 ) (90,060 ) Total deferred tax assets, net of valuation allowance 5,938 4,826 Less deferred tax liabilities: Acquired intangibles (2,054 ) (2,295 ) Property, plant and equipment (3,338 ) (949 ) Net deferred tax assets $ 546 $ 1,582 Reported as: Long term deferred tax assets, included within other long-term assets $ 652 $ 1,628 Long term deferred income tax liabilities, included within noncurrent liabilities (106 ) (46 ) Net deferred tax assets $ 546 $ 1,582 The net valuation allowance decreased by $14.0 million in 2017 and increased by $1.1 million in 2016. The changes are primarily due to changes in the U.S. deferred tax assets. U.S. deferred tax assets and the corresponding valuation allowance have been re-measured based on the newly enacted tax rate in December 2017. The change in valuation allowance balance in 2017 has reflected such accounting impact. See more discussion below for change in U.S. tax laws. The Company did not record a full valuation allowance against its net deferred tax assets in most foreign jurisdictions as it believes these deferred tax assets were realizable on a more likely than not basis as of December 31, 2017. Based upon the weight of available evidence, which includes the Company’s historical operating performance and the reported cumulative net losses to date, the Company continues to maintain a full valuation allowance against its net U.S. deferred tax assets with the exception of indefinite deferred tax liabilities. The Company adopted ASU 2016-9 effective January 1, 2017. Upon adoption, the Company's previously unrecognized excess tax benefits of $8.6 million had no impact on its accumulated deficit balance as the related U.S. deferred tax assets were fully offset by a valuation allowance. As of December 31, 2017, the Company had federal and state net operating loss, or NOL, carryforwards of $244.7 million and $51.7 million , respectively. Federal NOL carryforwards start to expire in 2022 and a portion of the California NOL carryforwards will begin to expire in 2028. As of December 31, 2017, the Company also had federal and state research credit carryovers of $8.3 million and $15.8 million , respectively. The federal credits will begin to expire in 2018 and the state credits can be carried forward indefinitely. The Company also had $10.4 million of foreign tax credit carryforwards which will start to expire in 2022 if not utilized. Utilization of NOL carryforwards and carried over tax credits may be subject to substantial annual limitation due to federal and state ownership limitations. The annual limitation may result in the expiration of NOL and tax credit carryforwards before utilization. The deferred tax assets listed above do not include NOL carryforwards that are expected to expire unutilized as a result of existing ownership changes. On December 22, 2017, the U.S. President signed into U.S. law the Tax Cuts and Jobs Act of 2017 ("Tax Reform"). The new legislation, among other provisions, will lower the corporate tax rate from 35% to 21%. In addition to applying the new lower corporate tax rate in 2018 and thereafter to any taxable income we may have, the legislation affects the way we can use and carry forward net operating losses previously accumulated and results in a revaluation of deferred tax assets recorded on our balance sheet. Given that the deferred tax assets are offset by a full valuation allowance, these changes will have no net impact on the Company's financial position and net loss. However, if and when we become profitable, we will receive a reduced benefit from such deferred tax assets. In addition, the Tax Reform includes a one-time mandatory repatriation transition tax on the net accumulated earnings and profits of a US taxpayer's foreign subsidiaries. We have performed an earnings and profits analysis, and as a result of net operating loss carry forward available to fully offset the anticipated transition tax, there will be no income tax effect in the current period. Therefore, the preliminary accounting for this matter is generally complete. Although foreign earnings have been included in US taxable income under the mandatory repatriation transition tax regime as discussed here, the Company has not changed its assertion to permanently reinvest the foreign earnings. The SEC staff issued Staff Accounting Bulletin 118 (“SAB 118”), which provides guidance on accounting for the tax effects of the Tax Reform. SAB 118 provides a measurement period that should not extend beyond one year from the Tax Reform enactment date for companies to complete the accounting under ASC 740, Income Taxes. In accordance with SAB 118, a company must reflect the income tax effects of those aspects of the Tax Reform for which the accounting under ASC 740 is complete. To the extent that a company’s accounting for certain income tax effects of the Tax Reform is incomplete but it is able to determine a reasonable estimate, it must record a provisional estimate in the financial statements. If a company cannot determine a provisional estimate to be included in the financial statements, it should continue to apply ASC 740 on the basis of the provisions of the tax laws that were in effect immediately before the enactment of the Tax Reform. We expect to complete our analysis within the measurement period in accordance with SAB 118. One of the Company’s China subsidiaries qualified for a preferential 15% tax rate that is available under the China Enterprise Income Tax Law, or the EIT law, for new and high technology enterprises and was granted a 15% tax rate for tax years 2015 and 2014. In June 2016, China’s State Administration of Taxation issued a notice to adjust the requirements for high technology enterprise status and as a result, the Company’s China subsidiary did not meet the requirements for the tax year 2016 and computed its tax provision for 2016 based on a 25% regular corporate tax rate and remeasured its deferred tax assets accordingly. The Company realized benefits from the reduced tax rate of $0.9 million and $0.5 million in the years ended December 31, 2015 and 2014 , respectively. The tax provision for 2017 was based on the 25% regular corporate tax rate. At December 31, 2017, the Company’s gross unrecognized tax benefits were approximately $25.5 million , of which $0.2 million would impact the effective tax rate if recognized. Substantial portion of these unrecognized tax benefits could be subject to a valuation allowance if and when recognized in a future period, which could impact the timing of any related effective tax rate benefit. The Company does not believe that the amount of unrecognized tax benefits will change significantly in the next twelve months. There were no interest or penalties related to unrecognized tax benefits. The Company’s policy is to classify interest and penalties associated with unrecognized tax benefits as income tax expense. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands): Balance at December 31, 2014 $ 18,372 Gross increases for tax positions of current year 2,314 Balance at December 31, 2015 20,686 Gross increases for tax positions of current year 2,920 Balance at December 31, 2016 23,606 Gross increases for tax positions of current year 1,933 Balance at December 31, 2017 $ 25,539 The Company’s material tax jurisdictions are the United States federal, California, Japan and China. As a result of NOL carryforwards, substantially all of the Company’s tax years remain open to U.S. federal and state tax examination. Tax years for 2011 and forward remain open for Chinese tax examination. |
Segment and geographic informat
Segment and geographic information | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Segment and geographic information | Segment and geographic information The Company’s Chief Executive Officer, who is considered to be the chief operating decision maker, manages the Company’s operations as a whole and reviews financial information presented on a consolidated basis for purposes of evaluating financial performance and allocating resources. In 2017, 2016 and 2015, the Company operated in one reportable segment. Through 2017, the Company has aligned its products to High Speed Products and Network Products and Solutions. The following presents revenue by product group (in thousands): Years Ended December 31, 2017 2016 2015 Revenue: High Speed Products $ 241,780 $ 277,258 $ 195,831 Network Products and Solutions 51,114 134,165 143,608 Total revenue $ 292,894 $ 411,423 $ 339,439 The following tables set forth the Company’s revenue and asset information by geographic region. Revenue is classified based on the ship to location of the customer. Such classification recognizes that for many customers, including those in North America or in Europe, designated shipping points are often in China or elsewhere in Asia (in thousands): Years Ended December 31, 2017 2016 2015 Revenue: China $ 161,637 $ 254,685 $ 182,504 United States 41,538 67,807 77,867 Japan 8,586 12,037 12,713 Rest of world 81,133 76,894 66,355 Total revenue $ 292,894 $ 411,423 $ 339,439 As of December 31, 2017 2016 Property, plant and equipment, net: China $ 37,212 $ 38,589 United States 42,243 31,101 Japan 43,826 31,784 Rest of world 4,284 5,393 Total $ 127,565 $ 106,867 |
Selected Quarterly Financial Da
Selected Quarterly Financial Data (unaudited) | 12 Months Ended |
Dec. 31, 2017 | |
Selected Quarterly Financial Information [Abstract] | |
Selected Quarterly Financial Data (unaudited) | Selected Quarterly Financial Data (unaudited) The following tables set forth a summary of the Company’s quarterly financial information for each of the four quarters for the years ended December 31, 2017 and 2016: Year ended December 31, 2017 First Quarter Second Quarter Third Quarter Fourth Quarter (In thousands, except per share data) Revenues $ 71,688 $ 73,214 $ 71,121 $ 76,871 Gross profit 18,503 16,777 10,513 15,686 Net income (loss) (11,522 ) (9,341 ) (18,187 ) (14,283 ) Basic net income (loss) per share $ (0.27 ) $ (0.22 ) $ (0.42 ) $ (0.32 ) Diluted net income (loss) per share $ (0.27 ) $ (0.22 ) $ (0.42 ) $ (0.32 ) Weighted averages shares used to compute basic net income (loss) per share 42,615 43,219 43,790 44,079 Weighted averages shares used to compute diluted net income (loss) per share 42,615 43,219 43,790 44,079 Year ended December 31, 2016 First Quarter Second Quarter Third Quarter Fourth Quarter (In thousands, except per share data) Revenues $ 99,145 $ 99,129 $ 103,312 $ 109,837 Gross profit 31,122 27,529 27,449 31,033 Net income (loss) 2,310 2,676 (7,187 ) 1,996 Basic net income (loss) per share $ 0.06 $ 0.06 $ (0.17 ) $ 0.05 Diluted net income (loss) per share 0.05 0.06 (0.17 ) 0.04 Weighted averages shares used to compute basic net income (loss) per share 41,121 41,603 42,038 42,421 Weighted averages shares used to compute diluted net income (loss) per share 43,648 44,320 42,038 45,767 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Subsequent events included the following: New term loan and repayment of Term Loan A in Japan In January 2018, the Company entered into a term loan agreement with Mitsubishi Bank and The Yamanashi Chou Bank, Ltd. for a term loan in the aggregate principal amount of 850 million JPY (approximately $7.8 million ) (the “Term Loan C”). The purpose of the Term Loan C is to obtain machinery for the core parts of the manufacturing line and payments for related expenses by the Company's subsidiary in Japan. The Term Loan C will be secured by the assets owned by the Company's subsidiary in Japan. The Term Loan C is available from January 29, 2018 to January 29, 2025. The full amount of the Term Loan C was drawn on January 29, 2018. Interest on the Term Loan C is based upon the annual rate of the three months TIBOR rate plus 1.00% . The Term Loan C requires quarterly interest payments, along with the principal payments, over 82 months commencing in April 2018. In January 2018, the Company repaid Term Loan A of 500 million JPY to Mitsubishi Bank. Repayment of note payable to financial institution In January 2018, the Company repaid $17.0 million to CITIC Bank, which was borrowed under a line of credit facility with CITIC Bank which expired in September 2017. Note payable to financial institution In February 2018, the Company borrowed $17.0 million from CITIC Bank, under the credit facility with CITIC Bank, which expires in November 2018. |
Summary of significant accoun28
Summary of significant accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Use of estimates | Use of estimates The preparation of financial statements in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) 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 financial statements and the reported revenue and expenses during the reporting period. Significant estimates made by management include: the useful lives of property, plant and equipment and intangible assets as well as future cash flows to be generated by those assets; fair values of identifiable assets acquired and liabilities assumed in business combinations; allowances for doubtful accounts; valuation allowances for deferred tax assets; write off of excess and obsolete inventories; the valuation of the Rusnano payment derivative and the valuations and recognition of stock-based compensation, among others. Actual results could differ from these estimates. |
Concentration of credit risk and significant customers | Concentration of credit risk and significant customers Financial instruments that potentially subject the Company to concentrations of credit risk are primarily cash and cash equivalents and trade accounts receivable. The Company’s investment policy requires cash and cash equivalents to be placed with high-credit quality institutions and limits on the amount of credit risk from any one issuer. The Company performs ongoing credit evaluations of its customers’ financial condition whenever deemed necessary and generally does not require collateral. The Company maintains an allowance for doubtful accounts based upon the expected collectability of all accounts receivable, which takes into consideration an analysis of historical bad debts, specific customer creditworthiness and current economic trends. |
Restricted cash | Restricted cash As a condition of the notes payable lending arrangements and the line of credit facilities, the Company is required to keep a compensating balance at the issuing banks. In addition, the Company also maintained restricted cash in connection with the asset purchase agreement executed in December 2016, see Note 9. These balances have been excluded from the Company’s cash and cash equivalents balance and are classified as restricted cash in the Company’s consolidated balance sheets. |
Cash, cash equivalents and investments | Cash, cash equivalents and investments Highly liquid investments with a maturity of 90 days or less at the date of purchase are considered cash equivalents, with the exception of money market funds and commercial paper which are classified as short-term investments. Marketable securities are reported at fair value and are classified as available-for-sale investments in our current assets because they represent investments of cash available for current operations and for strategic reasons. As a result, the Company recorded all its marketable securities in short-term investments regardless of the contractual maturity date of the securities. The Company regularly reviews its investment portfolio to identify and evaluate investments that have indications of possible impairment. Factors considered in determining whether a loss is other-than-temporary include: the length of time and extent to which the fair market value has been lower than the cost basis, the financial condition and near-term prospects of the investee, credit quality, likelihood of recovery, and the Company’s ability to hold the investment for a period of time sufficient to allow for any anticipated recovery in fair market value. Unrealized gains and losses, net of tax, are included in accumulated other comprehensive loss as a separate component of stockholders’ equity on the consolidated balance sheets. The amortization of premiums and discounts on the investments, and realized gains and losses on available-for-sale securities are included in other income, net in the consolidated statements of operations. The Company uses the specific-identification method to determine cost in calculating realized gains and losses upon the sale of its marketable securities. |
Fair Value Measurements | Fair Value Measurements Fair value is defined as the price at which an asset could be exchanged in a current transaction between knowledgeable, willing parties. A liability’s fair value is defined as the amount that would be paid to transfer the liability to a new obligor, not the amount that would be paid to settle the liability with the creditor. Where available, fair value is based on observable market prices or parameters or derived from such prices or parameters. Where observable prices or inputs are not available, valuation models are applied. These valuation techniques involve some level of management estimation and judgment, the degree of which is dependent on the price transparency for the instruments or market and the instruments’ complexity. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The authoritative accounting guidance describes a fair value hierarchy based on three levels of inputs that may be used to measure fair value, of which the first two are considered observable and the last is considered unobservable. These levels of inputs are as follows: Level 1—Observable inputs such as unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date. Level 2—Inputs (other than quoted prices included in Level 1) are either directly or indirectly observable for the asset or liability. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active. Level 3—Unobservable inputs that reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. Consideration is given to the risk inherent in the valuation technique and the risk inherent in the inputs to the model. For marketable securities measured at fair value using Level 2 inputs, we review trading activity and pricing for these investments as of the measurement date. When sufficient quoted pricing for identical securities is not available, we use market pricing and other observable market inputs for similar securities obtained from various third party data providers. These inputs either represent quoted prices for similar assets in active markets or have been derived from observable market data. |
Accounts receivable | Accounts receivable Accounts receivable include trade receivables and notes receivable from customers. The notes are generally due within six months . The Company receives notes receivable in exchange for accounts receivable from certain customers in China that are secured by the customer’s affiliated financial institution. An allowance for doubtful accounts is calculated based on the aging of the Company’s trade receivables, historical experience, and management judgment. The Company writes off trade receivables against the allowance when management determines a balance is uncollectible and is no longer actively pursuing collection of the receivable. |
Inventories | Inventories Inventories consist of on-hand raw materials, work-in-progress inventories and finished goods. Raw materials and work-in-progress inventories are stored mainly on the Company’s premises. Finished goods are stored on the Company’s premises as well as on consignment at certain customer sites. Inventories are stated at the lower of standard cost, which approximates actual cost determined on the weighted average basis, or net realizable value. Inventories are recorded using the first-in, first-out method. The Company routinely evaluates quantities and values of inventories in light of current market conditions and market trends, and records a write-down for quantities in excess of demand and product obsolescence. The evaluation may take into consideration historic usage, expected demand, anticipated sales price, new product development schedules, the effect new products might have on the sale of existing products, product obsolescence, customer concentrations, product merchantability and other factors. Market conditions are subject to change and actual consumption of inventory could differ from forecasted demand. The Company also regularly reviews the cost of inventories against their estimated market value and records a lower of cost or market write-down for inventories that have a cost in excess of estimated market value, resulting in a new cost basis for the related inventories which is not reversed. |
Business Combinations | Business Combinations We allocate the fair value of purchase consideration to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values as of the close of acquisition. The excess of the fair value of purchase consideration over the fair values of these identifiable assets and liabilities is recorded as goodwill. When determining the fair values of assets acquired and liabilities assumed, management makes significant estimates and assumptions through established and generally accepted valuation techniques. Fair value estimates are based on the assumptions management believes a market participant would use in pricing the asset or liability. Critical estimates in valuing certain intangible assets include, but are not limited to, future expected cash flows from customer relationships and acquired patents and developed technology; and discount rates. Management’s estimates of fair value are based upon assumptions believed to be reasonable, but which are inherently uncertain and unpredictable and, as a result, actual results may differ from estimates. Amounts recorded in a business combination may change during the measurement period, which is a period not to exceed one year from the date of acquisition, as additional information about conditions existing at the acquisition date becomes available. |
Goodwill | Goodwill Goodwill is reviewed for impairment annually in the fourth fiscal quarter or more frequently if events or changes in circumstances indicate that the carrying value of goodwill may not be recoverable. The Company will assess the qualitative factors to determine whether it is more likely than not that the fair value of its reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment. If the Company determines that it is more likely than not that its fair value is less than its carrying amount, then the two-step goodwill impairment test is performed. The first step, identifying a potential impairment, compares the fair value of the reporting unit with its carrying amount. If the carrying amount exceeds its fair value, the second step would need to be performed; otherwise, no further steps are required. The second step, measuring the impairment loss, compares the implied fair value of the goodwill with the carrying amount of the goodwill. Any excess of the goodwill carrying amount over the implied fair value is recognized as an impairment loss, and the carrying value of goodwill is written down to fair value. The Company had no goodwill impairment in 2017 or 2016. |
Long-lived assets | Long-lived assets Property, plant and equipment are stated at cost, net of accumulated depreciation and amortization. Repairs and maintenance costs are expensed as incurred. Depreciation and amortization are computed using the straight-line method over the following estimated useful lives: Buildings 20-30 years Machinery and equipment 2-7 years Furniture, fixtures and office equipment 3-5 years Software 5-7 years Leasehold improvements life of the asset or lease term, if shorter Intangible assets acquired in a business combination are recorded at fair value. Identifiable finite-lived intangible assets are amortized over the period of estimated benefit using the straight-line method, reflecting the pattern of economic benefits associated with these assets. The estimated useful lives of the Company’s finite-lived intangible assets generally range from two to seven years. The acquired land use rights in China have an estimated useful life of 45 years. Assets held for sale are measured at the lower of carrying value or the fair value less cost to sell. The carrying value of intangible assets and other long-lived assets is reviewed on a regular basis for the existence of facts or circumstances, both internally and externally, that may suggest impairment. Some factors which the Company considers to be triggering events for impairment review include a significant decrease in the market value of an asset, a significant change in the extent or manner in which an asset is used, a significant adverse change in the business climate that could affect the value of an asset, an accumulation of costs for an asset in excess of the amount originally expected, a current period operating loss or cash flow decline combined with a history of operating loss or cash flow uses or a projection that demonstrates continuing losses and a current expectation that, it is more likely than not, a long-lived asset will be disposed of at a loss before the end of its estimated useful life. If one or more of such facts or circumstances exist, the Company will evaluate the carrying value of long-lived assets to determine if impairment exists by comparing it to estimated undiscounted future cash flows over the remaining useful life of the assets. If the carrying value of the assets is greater than the estimated future cash flow, the assets are written down to the estimated fair value. The Company’s cash flow estimates contain management’s best estimates, using appropriate and customary assumptions and projections at the time. Any write-down would be treated as a permanent reduction in the carrying amount of the asset and an operating loss would be recognized. |
Revenue recognition | Revenue recognition Revenue is derived from the sale of the Company’s products. The Company recognizes revenue provided that persuasive evidence of an arrangement exists, delivery has occurred, the price is fixed or determinable and collectability is reasonably assured. Contracts and/or customer purchase orders are used to determine the existence of an arrangement. Delivery is considered to have occurred when title and risk of loss have transferred to the customer. The price is equal to the amount invoiced to the customer and is not subject to adjustment and customers do not have the right of return. The Company evaluates the creditworthiness of its customers to determine that appropriate credit limits are established prior to the acceptance of an order. Revenue is recognized when the product is delivered and title have transferred to the buyer. The Company generally bears all costs and risks of loss or damage to the goods up to that point. Revenue related to the sale of consignment inventory at customer vendor managed locations is not recognized until the product is pulled from inventory stock by customers. In instances where acceptance of the product or solutions is specified by the customer, revenue is deferred until such required acceptance criteria have been met. Shipping and handling costs are included in the cost of goods sold. The Company presents revenue net of sales taxes and any similar assessments. |
Product warranties | Product warranties The Company generally provides warranties to cover defects in workmanship, materials and manufacturing for a period of one to three years to meet the stated functionality as agreed to in each sales arrangement. Products are tested against specified functionality requirements prior to delivery, but the Company nevertheless from time to time experiences claims under its warranty guarantees. The Company accrues for estimated warranty costs under those guarantees based upon historical experience, and for specific items, at the time their existence is known and the amounts are determinable. |
Research and development | Research and development Research and development expense consists of personnel costs, including stock-based compensation expense, for the Company’s research and development personnel and product development costs, including engineering services, development software and hardware tools, depreciation of capital equipment and facility costs. Research and development costs are expensed as incurred. |
Advertising costs | Advertising costs Advertising costs are expensed as incurred and, to date, have not been significant. |
Stock-based compensation | Stock-based compensation The Company grants stock-based awards to employees, consultants and directors. The stock-based awards, including stock options, restricted stock units, employee stock purchase rights, stock appreciation units and market-based awards, are accounted for at estimated fair values. Vesting of stock-based awards is generally subject to the grantee’s continuing service to the Company. The Company generally determines the fair value of stock options and stock appreciation rights utilizing the Black-Scholes-Merton option-pricing model, or a lattice-binomial option-pricing model for stock-based awards with a market condition. The fair value of employee grants is measured on the date of grant and then recognized over the period during which an employee is required to provide services in exchange for the award, known as the requisite service period (usually the vesting period) on a straight-line basis. The fair value of non-employee grants is measured on the date of grant and then marked to market until vest dates and then recognized over the requisite service period. The Company records expense and an equal adjustment to the liability for stock appreciation units equal to the fair value of the vested portion of the awards as of each period end. Each reporting period thereafter, compensation expense will be recorded based on the remaining service period and the then fair value of the award until vesting of the award is completed. After vesting is completed, the Company will continue to re-measure the fair value of the liability each reporting period until the award is exercised or expires, with changes in the fair value of the liability recorded in the consolidated statements of operations. Restricted stock units are valued at the closing sales price as quoted on the New York Stock Exchange on the date of grant, and are converted into shares of common stock upon vesting on a one-for-one basis. The compensation expense related to the restricted stock units is determined using the fair value of common stock on the date of grant, and the expense is recognized on a straight-line basis over the vesting period. Employee stock purchase rights are accounted for at fair value, utilizing the Black-Scholes-Merton option-pricing model. Stock-based compensation expense for modified stock-based awards are recognized using the pool approach, under which the remaining compensation cost from the original awards plus the incremental costs, if any, of the related modified awards is recognized in its entirety over the remaining portion of the requisition service period of the corresponding modified awards. Stock-based compensation expense recognized at fair value includes the impact of estimated forfeitures. The Company estimates future forfeitures at the date of grant and revises the estimates, if necessary, in subsequent periods if actual forfeitures differ from those estimates. |
Income taxes | Income taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the carrying amounts of existing assets and liabilities in the financial statements and their respective tax bases, and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities from a change in tax rates is recognized in the consolidated statement of operations in the period that includes the enactment date. The Company operates in various tax jurisdictions and is subject to audit by various tax authorities. In preparing the Company’s consolidated financial statements, the Company is required to estimate its taxes in each of the jurisdictions in which it operates. The Company estimates actual current tax exposure as well as assesses temporary differences resulting from different treatment of items, such as accruals and allowances not currently deductible for tax purposes. These differences result in deferred tax assets which represent future tax benefits to be received when certain expenses previously recognized in the financial statements become deductible expenses under applicable income tax laws, or loss credit carryforwards are utilized. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of a deferred tax asset will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. A valuation allowance is recorded for loss carryforwards and other deferred tax assets where it is more likely than not that such deferred tax assets will not be realized. The Company classifies its net deferred tax assets as other long-term assets and deferred tax liabilities as noncurrent liabilities on its consolidated balance sheet. |
Foreign currency | Foreign currency Generally the functional currency of the Company’s international subsidiaries is the local currency. The Company translates the financial statements of these subsidiaries to U.S. dollars using month-end rates of exchange for assets and liabilities, and average rates of exchange for revenue, costs, and expenses. Translation gains and losses are recorded in accumulated other comprehensive income (loss) as a component of stockholders’ equity. Effective July 1, 2016, the Company has established a hedging program using monthly forward exchange contracts as economic hedges to protect against volatility of foreign exchange rate exposure of its net intercompany activities based on a cost-benefit analysis that considers that magnitude of the exposure, the volatility of the exchange rate and the cost of the hedging instruments. The forward contracts are not designated for hedge accounting and are marked to market at fair value and reported as either other current assets or accounts payable. Any changes in the fair value are recorded as foreign exchange gain (loss) and help mitigate the changes in the value of the underlying net intercompany balances. The Company recognized a $2.1 million gain and $1.6 million loss in 2017 and 2016, respectively, relating to its foreign currency contracts within other income, net. Net foreign exchange gain (loss) was ($0.5) million , $(0.1) million , and $3.4 million in 2017, 2016, and 2015, respectively. These gains and losses were recorded as other income (expense), net in the Company’s consolidated statements of operations. The Company presents the cash flows relating to these foreign exchange contracts as investing activities in its consolidated statements of cash flows. |
Net income (loss) per share | Net income (loss) per share Basic net income (loss) per share is calculated by dividing net income (loss) by the weighted average number of common shares outstanding for the period. Diluted net income (loss) per share is calculated by dividing net income (loss) by the weighted average number of common shares and potential dilutive common share equivalents outstanding during the period if the effect is dilutive. |
Accounting standards update recently adopted and not yet effective | Accounting standards update recently adopted Effective January 1, 2017, the Company adopted ASU 2016-9, Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting (“ASU 2016-9”). ASU 2016-9 simplifies certain aspects of the accounting for shared-based payment transactions, including income taxes, classification of awards and classification in the statement of cash flows. It eliminates the requirement to delay the recognition of excess tax benefits until current taxes payable are reduced. Upon adoption, the Company’s previously unrecognized excess tax benefits of $8.6 million had no impact on its accumulated deficit balance as the related U.S. deferred tax assets were fully offset by a valuation allowance. The Company elected to apply the change in presentation in the statements of cash flows prospectively and elected to continue to account for estimated forfeitures over the vesting period of the share-based awards. Effective January 1, 2017, the Company also adopted ASU 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory (“ASU 2015-11”). ASU 2015-11 requires entities to measure most inventories “at the lower of cost and net realizable value” but does not apply to inventories that are measured by using either the last-in, first-out method or the retail inventory method. The impact on the Company’s consolidated financial statements upon the adoption of this standard was immaterial. Recent accounting standards update not yet effective In May 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2017-9, Compensation—Stock Compensation (718)—Scope of Modification Accounting (ASU 2017-9”). This guidance redefines which changes to the terms and conditions of a share-based payment award require an entity to apply modification accounting for a share-based payment. ASU 2017-9 is effective for interim and annual periods after December 15, 2017 and early adoption is permitted in any interim period. The Company has not yet determined whether it will elect early adoption and has determined that the adoption of this standard will not have a significant impact on its consolidated financial statements and related disclosures. In March 2017, the FASB issued ASU No. 2017-7, Compensation-Retirement Benefits (Topic 715)-Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost (“ASU 2017-7”). This guidance revises the presentation of employer-sponsored defined benefit pension and other postretirement plans for the net periodic benefit cost in the statement of operations and requires that the service cost component of net periodic benefit be presented in the same income statement line items as other employee compensation costs for services rendered during the period. The other components of the net benefit costs are required to be presented in the statement of operations separately from the service cost component and outside the subtotal of income from operations. This guidance allows only the service cost component of net periodic benefit costs to be eligible for capitalization. ASU 2017-7 is effective for interim and annual periods after December 15, 2018 and early adoption is permitted as of the beginning of an annual reporting period. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial statements and related disclosures. In January 2017, the FASB issued ASU 2017-4, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment (“ASU 2017-4”). This standard amends the goodwill impairment test to compare the fair value of a reporting unit with its carrying amount and recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value, up to the total amount of goodwill allocated to that reporting unit. ASU 2017-4 is effective prospectively for interim and annual periods beginning after December 15, 2019. Early adoption is permitted for interim and annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company has not determined whether it will elect early adoption and is currently evaluating the impact of the adoption of this standard on its consolidated financial statements and related disclosures. In January 2017, the FASB issued ASU 2017-1, Business Combinations (Topic 805): Clarifying the Definition of a Business (“ASU 2017-1”). This standard provides a framework in determining when a set of assets and activities is a business. ASU 2017-1 is effective for interim and annual periods beginning after December 15, 2017 on a prospective basis. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial statements and related disclosures. In November 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update ("ASU") 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (“ASC 2016-18”). This standard provides guidance on the classification and presentation of restricted cash in the statement of cash flows and must be applied retrospectively. ASU 2016-18 is effective for fiscal years beginning after December 15, 2017. Early adoption is permitted. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial statements and related disclosures In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory (“ASU 2016-16”). This standard provides guidance on the tax accounting for the transferring and receiving entities upon transfer of an asset. ASU 2016-16 is effective for the Company’s interim and annual periods beginning after December 15, 2017 and should be applied on a modified retrospective basis. Early adoption is permitted. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial statements and related disclosures. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”). This standard provides guidance on the classification of certain cash receipts and payments in the statement of cash flows. It is effective, retrospectively, for the Company’s annual and interim reporting periods beginning after December 15, 2017 or prospectively from the earliest date practicable if retrospective application is impracticable. Early adoption is permitted. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial statements and related disclosures. In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). ASU 2016-13 amends existing guidance on the impairment of financial assets and adds an impairment model that is based on expected losses rather than incurred losses and requires an entity to recognize as an allowance its estimate of expected credit losses for its financial assets. An entity will apply this guidance through a cumulative-effect adjustment to retained earnings upon adoption (a modified-retrospective approach) while a prospective transition approach is required for debt securities for which an other-than-temporary impairment had been recognized before the effective date. It is effective for the Company’s annual and interim reporting periods beginning after December 15, 2019. Early adoption is permitted. The Company is in the process of evaluating the impact of the adoption on its consolidated financial statements and related disclosure. In February 2016, the FASB issued ASU 2016-2, Leases (Topic 842) (“ASU 2016-2”). ASU 2016-2 introduces a lessee model that requires recognition of assets and liabilities arising from qualified leases on the consolidated balance sheets and consolidated statements of operations and to disclose qualitative and quantitative information about lease transactions. It is effective for interim and annual periods beginning after December 15, 2018. Early adoption is permitted. A modified retrospective transition is required with certain optional practical expedients allowed. The Company is in the process of evaluating the impact of the adoption on its consolidated financial statements and related disclosure. In January 2016, the FASB issued ASU 2016-1, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-1”). ASU 2016-1 revises an entity’s accounting related to (1) the classification and measurement of investments in equity securities and (2) the presentation of certain fair value changes for financial liabilities measured at fair value. It also amends certain disclosure requirements associated with the fair value of financial instruments and is effective for the Company’s annual and interim reporting periods beginning after December 15, 2017. Early adoption is permitted. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial statements and related disclosures. In May 2014, the FASB issued ASU No. 2014-9, Revenue from Contracts with Customers (“ASU 2014-9”). The standard, along with the amendments issued in 2016 and 2015, provides companies with a single model for use in accounting for revenue arising from contracts with customers and supersedes current revenue recognition guidance, including industry-specific revenue guidance. The core principle of the model is to recognize revenue when control of the goods or services transfers to the customer, as opposed to recognizing revenue when the risks and rewards transfer to the customer under the existing revenue guidance. ASU 2014-9 is required to be adopted, using either of two methods: (i) retrospective to each prior reporting period presented with the option to elect certain practical expedients as defined within ASU 2014-9; or (ii) retrospective with the cumulative effect of initially applying ASU 2014-9 recognized at the date of initial application and providing certain additional disclosures. This standard, as amended, is effective for annual and interim periods beginning after December 15, 2017 and permits entities to early adopt for annual and interim reporting periods beginning after December 15, 2016. The Company will adopt this standard in the first quarter of 2018, using the full retrospective transition method. We have substantially completed our analysis and the adoption of this guidance will not have a material impact on our consolidated financial statements and our internal controls over financial reporting. |
Summary of significant accoun29
Summary of significant accounting policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Estimated Useful Lives of Property, Plant and Equipment | Depreciation and amortization are computed using the straight-line method over the following estimated useful lives: Buildings 20-30 years Machinery and equipment 2-7 years Furniture, fixtures and office equipment 3-5 years Software 5-7 years Leasehold improvements life of the asset or lease term, if shorter |
Cash, cash equivalents, short30
Cash, cash equivalents, short-term investments, and restricted cash and investments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of Restricted Cash and Cash Equivalents | The following table summarizes the Company’s cash, cash equivalents, short-term investments, and restricted cash at December 31, 2017 and 2016 (in thousands): December 31, 2017 December 31, 2016 Cash and cash equivalents: Cash $ 78,906 58,691 Cash equivalents — 23,809 Cash and cash equivalents $ 78,906 $ 82,500 Short-term investments $ 12,311 $ 19,015 Restricted cash $ 2,658 $ 4,085 |
Summary of Unrealized Gains and Losses Related to Cash Equivalents and Investments in Marketable Securities | The following table summarizes the Company’s unrealized gains and losses related to the cash equivalents and short-term investments in marketable securities designated as available-for-sale (in thousands): As of December 31, 2017 As of December 31, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Loss Fair Value Amortized Cost Gross Unrealized Gains Gross Unrealized Loss Fair Value Marketable securities: Money market accounts $ — $ — $ — $ — $ 23,809 $ — $ — $ 23,809 Money market funds 11,561 — — 11,561 199 — — 199 Corporate debt securities — — — — 9,438 4 (3 ) 9,439 Government agency securities — — — — 3,767 — (10 ) 3,757 U.S. government securities 751 — (1 ) 750 5,008 — (10 ) 4,998 Sovereign government bonds — — — — 622 — — 622 Total $ 12,312 $ — $ (1 ) $ 12,311 $ 42,843 $ 4 $ (23 ) $ 42,824 Reported as: Cash equivalents $ — $ — $ — $ — $ 23,809 $ — $ — $ 23,809 Short-term investments 12,312 — (1 ) 12,311 19,034 4 (23 ) 19,015 Total $ 12,312 $ — $ (1 ) $ 12,311 $ 42,843 $ 4 $ (23 ) $ 42,824 |
Maturities of Marketable Securities | As of December 31, 2017 and 2016, maturities of marketable securities were as follows (in thousands): December 31, 2017 December 31, 2016 Less than 1 year $ 12,311 $ 36,054 Due in 1 to 2 years — 6,468 Due in 3 to 5 years — 302 Total $ 12,311 $ 42,824 |
Fair value measurements (Tables
Fair value measurements (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Assets | The following table presents the Company’s assets that are measured at fair value on a recurring basis (in thousands): December 31, 2017 December 31, 2016 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Cash equivalents and short-term investments: Money market funds $ 11,561 $ — $ — $ 11,561 $ 199 $ — $ — $ 199 U.S. government securities 750 — — 750 4,998 — — 4,998 Money market accounts — — — — — 23,809 — 23,809 Corporate debt securities — — — — — 9,439 — 9,439 Government agency securities — — — — — 3,757 — 3,757 Sovereign government bonds — — — — — 622 — 622 Total $ 12,311 $ — $ — $ 12,311 $ 5,197 $ 37,627 $ — $ 42,824 Mutual funds held in Rabbi Trust, recorded in other long-term assets $ 523 $ — $ — $ 523 $ 622 $ — $ — $ 622 |
Fair Value of Financial Liabilities | The following table presents the Company’s liabilities that are measured at fair value on a recurring basis (in thousands): As of December 31, 2017 As of December 31, 2016 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Rusnano payment derivative $ — $ — $ 389 $ 389 $ — $ — $ 389 $ 389 Foreign currency forward contracts — (43 ) — (43 ) — 41 — 41 $ — $ (43 ) $ 389 $ 346 $ — $ 41 $ 389 $ 430 |
Net income (loss) per share (Ta
Net income (loss) per share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Net Income per Share | The following table sets forth the computation of the basic and diluted net income (loss) per share attributable to NeoPhotonics Corporation common stockholders for the periods indicated (in thousands, except per share amounts): Years Ended December 31, 2017 2016 2015 Numerator: Net income (loss) $ (53,333 ) $ (205 ) $ 3,668 Denominator: Weighted average shares used to compute per share amount: Basic 43,431 41,798 37,421 Dilutive effect of equity awards — — 1,265 Diluted 43,431 41,798 38,686 Basic net income (loss) per share $ (1.23 ) (0.00) $ 0.10 Diluted net income (loss) per share $ (1.23 ) (0.00) $ 0.09 |
Potentially Dilutive Securities Excluded from Computation of Diluted Net Income per Share Attributable to Common Stockholders | The Company has excluded the impact of the following outstanding employee stock options, restricted stock units, common stock warrants and shares expected to be issued under its employee stock purchase plan from the computation of diluted net income (loss) per share, as their effect would have been antidilutive (in thousands): December 31, 2017 2016 2015 Employee stock options 3,934 4,301 2,176 Restricted stock units 2,405 2,089 954 Employee stock purchase plan 421 306 318 6,760 6,696 3,448 |
Business combinations (Tables)
Business combinations (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
Summary of Purchase Accounting and Tangible and Intangible Assets Acquired and Liabilities Assumed | The following table summarizes the allocation of the assets acquired and liabilities assumed as of the acquisition date and subsequent adjustments (in thousands): Total purchase consideration: Cash paid $ 1,500 Notes payable 15,482 Total $ 16,982 Fair value of assets acquired: Accounts receivable $ 9,274 Inventories 1,693 Prepaid expenses and other current assets 670 Property, plant and equipment 6,917 Intangible assets acquired: Developed technology 4,100 Customer relationships 700 Total $ 23,354 Less: fair value of liabilities assumed: Accounts payable $ (7,427 ) Accrued liabilities (60 ) Total $ (7,487 ) Goodwill $ 1,115 |
Purchase Price Allocation of Intangible Assets | The following table presents details of the purchase price allocated to the acquired intangible assets at the acquisition date: Useful Life Purchased intangible assets (In years) (In thousands) Developed technology 7 $ 4,100 Customer relationships 2 700 Total purchased intangible assets $ 4,800 |
Pro forma Information for Business Acquisition | The unaudited pro forma results do not assume any operating efficiencies as a result of the consolidation of operations (in thousands, except per share data): Years Ended December 31, 2015 2014 Revenue $ 339,439 $ 353,003 Net income (loss) $ 4,088 $ (23,221 ) Basic net income (loss) per share $ 0.11 $ (0.72 ) Diluted net income (loss) per share $ 0.11 $ (0.72 ) |
Purchased intangible assets (Ta
Purchased intangible assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Purchased Intangible Assets | Purchased intangible assets consist of the following (in thousands): December 31, 2017 December 31, 2016 Gross Assets Accumulated Amortization Net Assets Gross Assets Accumulated Amortization Net Assets Technology and patents $ 37,684 $ (34,923 ) $ 2,761 $ 36,918 $ (33,316 ) $ 3,602 Customer relationships 15,425 (14,835 ) 590 15,039 (13,990 ) 1,049 Leasehold interest 1,309 (366 ) 943 1,226 (315 ) 911 $ 54,418 $ (50,124 ) $ 4,294 $ 53,183 $ (47,621 ) $ 5,562 |
Amortization Expense of Purchased Intangible Assets | The following table presents details of the amortization expense of the Company’s purchased intangible assets as reported in the consolidated statements of operations (in thousands): Years ended December 31, 2017 2016 2015 Cost of goods sold $ 869 $ 2,871 $ 3,349 Operating expenses 472 1,609 1,791 Total $ 1,341 $ 4,480 $ 5,140 |
Estimated Future Amortization Expense of Purchased Intangible Assets | The estimated future amortization expense of purchased intangible assets as of December 31, 2017, is as follows (in thousands): 2018 $ 1,208 2019 807 2020 689 2021 689 2022 103 Thereafter 798 $ 4,294 |
Balance sheet components (Table
Balance sheet components (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Balance Sheet Related Disclosures [Abstract] | |
Restricted Cash | Restricted cash was as follows (in thousands): December 31, 2017 2016 Restricted in connection with notes payable and short-term borrowing (see Note 11) $ 2,658 $ 2,098 Restricted in connection with asset purchase agreement (see Note 9) — 1,987 Total restricted cash $ 2,658 $ 4,085 Reported as: Restricted cash $ 2,658 $ 4,085 |
Accounts Receivable, Net | Accounts receivable, net were as follows (in thousands): December 31, 2017 2016 Accounts receivable $ 65,499 $ 78,143 Trade notes receivable 2,356 2,892 Allowance for doubtful accounts (626 ) (425 ) $ 67,229 $ 80,610 |
Summary of Movement in Allowance for Doubtful Accounts | The table below summarizes the movement in the Company’s allowance for doubtful accounts (in thousands): Balance at December 31, 2014 $ (241 ) Provision for bad debt (640 ) Write-offs, net of recoveries 38 Balance at December 31, 2015 (843 ) Reversal of provision for bad debt 382 Write-offs, net of recoveries 36 Balance at December 31, 2016 (425 ) Provision for bad debt (577 ) Write-offs, net of recoveries 376 Balance at December 31, 2017 $ (626 ) |
Inventories, net | Inventories were as follows (in thousands): December 31, 2017 2016 Raw materials $ 33,400 $ 23,348 Work in process 13,246 10,996 Finished goods (1) 20,655 13,893 $ 67,301 $ 48,237 (1) Included in finished goods was $7.1 million and $8.3 million of inventory at customer vendor managed inventory locations at December 31, 2017 and 2016 , respectively. |
Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets were as follows (in thousands): December 31, 2017 2016 Prepaid taxes and taxes receivable $ 15,162 $ 16,102 Transition services agreement receivable (see Note 9) 12,817 — Deposits and other prepaid expenses 4,138 3,571 Other receivable 4,118 2,723 $ 36,235 $ 22,396 |
Property, Plant and Equipment, Net | Property, plant and equipment, net were as follows (in thousands): December 31, 2017 2016 Land $ 3,083 $ 2,847 Buildings 24,102 22,107 Machinery and equipment 189,527 160,314 Furniture, fixtures, software and office equipment 9,948 8,413 Leasehold improvements 26,007 14,541 252,667 208,222 Less: Accumulated depreciation (125,102 ) (101,355 ) $ 127,565 $ 106,867 |
Accrued and Other Current Liabilities | Accrued and other current liabilities were as follows (in thousands): December 31, 2017 2016 Employee-related $ 12,990 $ 18,654 Transition services agreement payables (see Note 9) 11,222 — Asset sale related contingent liabilities (see Note 9) 7,135 — Income and other taxes payable 542 3,956 Deferred revenue, current 939 956 Accrued warranty 1,334 678 Rusnano payment derivative — 389 Other accrued expenses 9,080 5,992 $ 43,242 $ 30,625 |
Accrued Warranty | The table below summarizes the movement in the warranty accrual, which is included in accrued and other current liabilities (in thousands): Years ended December 31, 2017 2016 2015 Beginning balance $ 678 $ 1,175 $ 1,751 Warranty accruals 1,263 102 79 Settlements (607 ) (599 ) (655 ) Ending balance $ 1,334 $ 678 $ 1,175 |
Other Noncurrent Liabilities | Other noncurrent liabilities were as follows (in thousands): December 31, 2017 2016 Pension and other employee-related $ 4,675 $ 5,045 Deferred rent 2,908 1,509 Deferred revenue 617 136 Government grant 1,095 1,048 Rusnano payment derivative 389 — Deferred income tax liabilities 106 46 Asset retirement obligations and other 4,285 1,155 $ 14,075 $ 8,939 |
Restructuring (Tables)
Restructuring (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Reserve by Type | Employee Severance Facilities Consolidation Asset-Related Total Restructuring obligations December 31, 2016 $ — $ — $ — $ — Charges 2,308 2,003 434 4,745 Cash payments (2,308 ) (310 ) (177 ) (2,795 ) Non-cash settlements and other — (113 ) (214 ) (327 ) Restructuring obligations December 31, 2017 $ — $ 1,580 $ 43 $ 1,623 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Components of Debt, Obligations, Weighted Average Interest Rate and Additional Fair Value Information Relating to Outstanding Debt Instruments | The table below summarizes the carrying amount and weighted average interest rate of the Company’s debt (in thousands, except percentages): December 31, 2017 December 31, 2016 Carrying Amount Interest Rate Carrying Amount Interest Rate Note payable to Pudong Bank $ 17,000 4.10 % $ — — Note payable to CITIC Bank $ 17,000 4.00 % $ — — Notes payable to suppliers $ 1,607 $ 6,390 — Short-term borrowing under Comerica Bank Credit Facility — 23,800 3.37 % Total notes payable and short-term borrowing $ 35,607 $ 30,190 Long-term debt, current and non-current: Borrowing under Wells Fargo Credit Facility $ 30,018 3.29 % $ — Mitsubishi Bank loans $ 16,924 1.05% -1.45% $ 11,253 1.43 % Unaccreted discount and issuance costs within current portion of long-term debt (86 ) (108 ) Unaccreted discount and issuance costs within long-term debt, net of current portion (295 ) (183 ) Total long-term debt, net of unaccreted discount and issuance costs $ 46,561 $ 10,962 Reported as: Current portion of long-term debt $ 6,005 $ 747 Long-term debt, net of current portion 40,556 10,215 Total long-term debt, net of unaccreted discount and issuance costs $ 46,561 $ 10,962 |
Maturities of Long-term Debt | At December 31, 2017, maturities of long-term debt were as follows (in thousands): 2018 $ 6,091 2019 1,908 2020 1,908 2021 1,908 2022 31,926 Thereafter 3,201 $ 46,942 |
Pension Plans (Tables)
Pension Plans (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Compensation and Retirement Disclosure [Abstract] | |
Funded Status Plans | The funded status of these plans for the years ended December 31, 2017, 2016 and 2015 was as follows (in thousands): 2017 2016 2015 RAP RAP RAP Change in projected benefit obligation: Projected benefit obligation, beginning of period $ 4,802 $ 5,086 $ 5,054 Service cost — — — Interest cost 5 11 10 Benefits paid (411 ) (551 ) — Actuarial (gain)/loss 32 72 40 Curtailment/Settlement — — — Transfer from DBCPP to RAP — — — Currency translation adjustment 188 184 (18 ) Projected benefit obligation, end of period $ 4,616 $ 4,802 $ 5,086 Change in plan assets: Plan assets at fair value, beginning of period $ — $ — $ — Employer contributions — — — Benefits paid — — — Transfer to DCP — — — Currency translation adjustment — — — Plan assets at calculated amount, end of period $ — $ — $ — Amounts recognized in consolidated balance sheets: Accrued and other current liabilities $ 488 $ 393 $ 497 Other noncurrent liabilities $ 4,128 $ 4,409 $ 4,589 Amount recognized in accumulated other comprehensive loss: Defined benefit pension plans adjustment $ 271 $ 230 $ 153 Accumulated benefit obligation, end of period $ 4,616 $ 4,802 $ 5,086 |
Periodic Pension Cost | Net periodic pension cost associated with these plans for the years ended December 31, 2017, 2016 and 2015 included the following components (in thousands): 2017 2016 2015 RAP RAP RAP Service cost $ — $ — $ — Interest cost 5 11 10 Other — — — Curtailment/settlement (gain) loss — — — Net periodic pension (gain) costs $ 5 $ 11 $ 10 |
Estimated Future Benefit Payments Under Plans | Estimated future benefit payments under the RAP are as follows (in thousands): 2018 $ 387 2019 183 2020 501 2021 611 2022 288 2023 - 2026 1,342 Thereafter 1,304 $ 4,616 |
Commitments and contingencies (
Commitments and contingencies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future Minimum Commitments Under All Operating Leases | As of December 31, 2017, the future minimum commitments under the Company’s non-cancelable operating leases are as follows (in thousands): Years ending December 31, 2018 $ 3,512 2019 3,608 2020 3,069 2021 2,977 2022 2,939 Thereafter 14,370 $ 30,475 |
Stockholders' equity (Tables)
Stockholders' equity (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Accumulated Other Comprehensive Income, Net of Related Taxes | The following table shows the components of accumulated other comprehensive income (loss), net of taxes, as of December 31, 2017 and 2016 (in thousands): December 31, 2017 December 31, 2016 Foreign currency translation adjustments $ 567 $ (8,235 ) Unrealized gains on available-for-sale securities (1 ) (19 ) Defined benefit pension plan adjustment (168 ) (147 ) $ 398 $ (8,401 ) |
Stock-based compensation (Table
Stock-based compensation (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Estimated Fair Value of Certain Stock-Based Awards Using Black-Scholes-Merton Valuation Model | The Company estimated the fair value of certain stock-based awards using a Black-Scholes-Merton valuation model with the following assumptions: Years ended December 31, Stock options 2017 2016 2015 Weighted-average expected term (years) 5.99 5.75 5.33 Weighted-average volatility 65% 65% 60% Risk-free interest rate 2.02%-2.08% 1.01%-1.76% 1.37%-1.85% Expected dividends — % — % — % Stock appreciation units Weighted-average expected term (years) 2.30 2.77 3.54 Weighted-average volatility 69% 61% 62% Risk-free interest rate 0.51%-1.62% 0.45%-1.47% 0.25%-1.57% Expected dividends — % — % — % ESPP Weighted-average expected term (years) 0.72 0.73 0.69 Weighted-average volatility 61% 54% 58% Risk-free interest rate 0.91%-1.31% 0.39%-0.45% 0.03%-0.14% Expected dividends — % — % — % |
Summary of Stock Based Compensation Expense | Unamortized stock-based compensation costs capitalized as part of inventory were immaterial in each of the periods presented (in thousands): Years ended December 31, 2017 2016 2015 Cost of goods sold $ 1,098 $ 3,130 $ 1,335 Research and development 2,491 4,760 2,049 Sales and marketing 1,697 4,105 1,794 General and administrative 2,920 5,081 2,585 $ 8,206 $ 17,076 $ 7,763 |
Summary of Stock Option and Restricted Stock Unit Activity | The following table summarizes the Company’s stock option and restricted stock unit, or RSU, activity during the year ended December 31, 2017: Stock Options Restricted Stock Units Shares Available for Grant Number of Shares Weighted Average Exercise Price Number of Units Weighted Average Grant Date Fair Value Balance at December 31, 2016 768,046 4,301,340 $ 5.18 2,089,473 $ 10.15 Authorized for issuance 1,488,411 Granted (1,889,536 ) 502,746 7.37 1,386,790 7.86 Exercised/Converted (665,393 ) 3.73 (805,463 ) 9.48 Cancelled/Forfeited 592,215 (205,164 ) 8.11 (266,163 ) 10.42 Balance at December 31, 2017 959,136 3,933,529 $ 5.55 2,404,637 $ 9.02 |
Summary of Information about Stock Options Outstanding | The following table summarizes information about stock options outstanding as of December 31, 2017: Options Outstanding Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (in Thousands) Vested and expected to vest 3,830,959 $ 5.48 5.83 $ 6,919,879 Exercisable 3,084,096 $ 4.78 5.08 $ 6,706,040 |
Summary of Information about Restricted Stock Units Outstanding | The following table summarizes information about RSUs outstanding as of December 31, 2017: Restricted Stock Units Outstanding Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (in Thousands) Vested and expected to vest 2,098,888 $ — 1.26 $ 13,810,684 |
Summary of Stock Appreciation Unit Activity | The following table summarizes the Company’s stock appreciation unit activity during the year ended December 31, 2017: Stock Appreciation Units Weighted-Average Exercise Price Stock appreciation units outstanding as of December 31, 2016 286,768 $ 4.87 Stock appreciation units exercised (42,618 ) $ 4.50 Stock appreciation units cancelled (4,326 ) $ 4.24 Stock appreciation units outstanding as of December 31, 2017 239,824 $ 4.95 |
Income taxes (Tables)
Income taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income (Loss) before Income Taxes | The provision for income taxes is based upon the income (loss) before income taxes as follows (in thousands): Years Ended December 31, 2017 2016 2015 U.S. operations $ (52,725 ) $ (10,217 ) $ (7,212 ) Non-U.S. operations 301 13,609 13,984 $ (52,424 ) $ 3,392 $ 6,772 |
Components of Provision for Income Taxes | The components of the provision for income taxes consisted of the following (in thousands): Years Ended December 31, 2017 2016 2015 Current Federal $ (144 ) $ (127 ) $ (48 ) State 3 (13 ) (8 ) Foreign 363 (3,925 ) (3,725 ) 222 (4,065 ) (3,781 ) Deferred Federal 4 (24 ) (22 ) State — — — Foreign (1,135 ) 492 699 Total provision $ (909 ) $ (3,597 ) $ (3,104 ) |
Difference in Provision for Income Taxes from Amount Obtained by Applying U.S. Federal Statutory Rate | The provision for income taxes differs from the amount obtained by applying the U.S. federal statutory tax rate as follows (in thousands, except percentages): Years Ended December 31, 2017 2016 2015 Federal statutory rate 35 % 35 % 35 % Tax at federal statutory rate $ 18,354 $ (1,185 ) $ (2,378 ) State taxes, net of federal benefit 2 (8 ) (8 ) Mandatory repatriation/Section 956 (5,718 ) (19 ) (66 ) Nondeductible expenses (67 ) (727 ) (135 ) Stock-based compensation (314 ) (877 ) (465 ) Change in valuation allowance 16,273 (1,455 ) (958 ) Research and development 851 1,175 1,017 Foreign rate differences (2,819 ) (1,215 ) (844 ) Foreign tax credit 144 127 30 Change in prior year deferred balances (28,262 ) 920 417 Other 647 (333 ) 286 Total provision for income taxes from continuing operations $ (909 ) $ (3,597 ) $ (3,104 ) |
Components of Deferred Income Tax Assets and Liabilities | Deferred income tax assets and liabilities comprise the following (in thousands): December 31, 2017 2016 Deferred Tax Assets: Net operating loss carryforwards $ 44,912 $ 55,274 Federal and state credits 26,170 23,372 Reserves, accruals and other 9,698 14,423 Fixed assets and intangibles 1,259 1,817 Total deferred tax assets 82,039 94,886 Valuation allowance (76,101 ) (90,060 ) Total deferred tax assets, net of valuation allowance 5,938 4,826 Less deferred tax liabilities: Acquired intangibles (2,054 ) (2,295 ) Property, plant and equipment (3,338 ) (949 ) Net deferred tax assets $ 546 $ 1,582 Reported as: Long term deferred tax assets, included within other long-term assets $ 652 $ 1,628 Long term deferred income tax liabilities, included within noncurrent liabilities (106 ) (46 ) Net deferred tax assets $ 546 $ 1,582 |
Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands): Balance at December 31, 2014 $ 18,372 Gross increases for tax positions of current year 2,314 Balance at December 31, 2015 20,686 Gross increases for tax positions of current year 2,920 Balance at December 31, 2016 23,606 Gross increases for tax positions of current year 1,933 Balance at December 31, 2017 $ 25,539 |
Segment and geographic inform43
Segment and geographic information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Revenue and Long-Lived Assets By Geographical Region | Through 2017, the Company has aligned its products to High Speed Products and Network Products and Solutions. The following presents revenue by product group (in thousands): Years Ended December 31, 2017 2016 2015 Revenue: High Speed Products $ 241,780 $ 277,258 $ 195,831 Network Products and Solutions 51,114 134,165 143,608 Total revenue $ 292,894 $ 411,423 $ 339,439 The following tables set forth the Company’s revenue and asset information by geographic region. Revenue is classified based on the ship to location of the customer. Such classification recognizes that for many customers, including those in North America or in Europe, designated shipping points are often in China or elsewhere in Asia (in thousands): Years Ended December 31, 2017 2016 2015 Revenue: China $ 161,637 $ 254,685 $ 182,504 United States 41,538 67,807 77,867 Japan 8,586 12,037 12,713 Rest of world 81,133 76,894 66,355 Total revenue $ 292,894 $ 411,423 $ 339,439 As of December 31, 2017 2016 Property, plant and equipment, net: China $ 37,212 $ 38,589 United States 42,243 31,101 Japan 43,826 31,784 Rest of world 4,284 5,393 Total $ 127,565 $ 106,867 |
Selected Quarterly Financial 44
Selected Quarterly Financial Data (unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Selected Quarterly Financial Information [Abstract] | |
Summary of Quarterly Financial Information | The following tables set forth a summary of the Company’s quarterly financial information for each of the four quarters for the years ended December 31, 2017 and 2016: Year ended December 31, 2017 First Quarter Second Quarter Third Quarter Fourth Quarter (In thousands, except per share data) Revenues $ 71,688 $ 73,214 $ 71,121 $ 76,871 Gross profit 18,503 16,777 10,513 15,686 Net income (loss) (11,522 ) (9,341 ) (18,187 ) (14,283 ) Basic net income (loss) per share $ (0.27 ) $ (0.22 ) $ (0.42 ) $ (0.32 ) Diluted net income (loss) per share $ (0.27 ) $ (0.22 ) $ (0.42 ) $ (0.32 ) Weighted averages shares used to compute basic net income (loss) per share 42,615 43,219 43,790 44,079 Weighted averages shares used to compute diluted net income (loss) per share 42,615 43,219 43,790 44,079 Year ended December 31, 2016 First Quarter Second Quarter Third Quarter Fourth Quarter (In thousands, except per share data) Revenues $ 99,145 $ 99,129 $ 103,312 $ 109,837 Gross profit 31,122 27,529 27,449 31,033 Net income (loss) 2,310 2,676 (7,187 ) 1,996 Basic net income (loss) per share $ 0.06 $ 0.06 $ (0.17 ) $ 0.05 Diluted net income (loss) per share 0.05 0.06 (0.17 ) 0.04 Weighted averages shares used to compute basic net income (loss) per share 41,121 41,603 42,038 42,421 Weighted averages shares used to compute diluted net income (loss) per share 43,648 44,320 42,038 45,767 |
The Company and basis of pres45
The Company and basis of presentation - Narrative (Details) | 1 Months Ended | 12 Months Ended | ||||
Feb. 28, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2017CNY (¥) | Sep. 30, 2017USD ($) | |
Concentration Risk [Line Items] | ||||||
Working capital | $ 110,800,000 | |||||
Cash, cash equivalents, short-term investments and restricted cash | 93,900,000 | |||||
Operating losses | 51,364,000 | $ (3,019,000) | $ (3,953,000) | |||
Cash outflows from operating activities | 32,767,000 | (53,836,000) | $ (26,138,000) | |||
Accumulated deficit | 352,011,000 | $ 298,678,000 | ||||
Revolving Credit Facility | Wells Fargo Bank, National Association | ||||||
Concentration Risk [Line Items] | ||||||
Line of credit maximum borrowing capacity | $ 50,000,000 | |||||
Amount outstanding on line of credit | 30,000,000 | |||||
Line of credit remaining borrowing capacity | 20,000,000 | |||||
Required amount to be maintained as unused borrowing capacity | 5,000,000 | |||||
China | Line of Credit | Pudong Bank | ||||||
Concentration Risk [Line Items] | ||||||
Line of credit remaining borrowing capacity | $ 5,500,000 | |||||
Number of debt instruments | 2 | 2 | ||||
China | Line of Credit | CITIC Bank | ||||||
Concentration Risk [Line Items] | ||||||
Line of credit maximum borrowing capacity | $ 38,400,000 | ¥ 250,000,000 | ||||
Line of credit remaining borrowing capacity | $ 37,900,000 | |||||
Subsequent Event | China | Line of Credit | CITIC Bank | ||||||
Concentration Risk [Line Items] | ||||||
Borrowing on line of credit | $ 17,000,000 |
Summary of significant accoun46
Summary of significant accounting policies - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Summary Of Significant Accounting Policies [Line Items] | |||
Restricted cash | $ 2,658,000 | $ 4,085,000 | |
Goodwill impairment charges | 0 | 0 | |
Asset impairment charges | 400,000 | 0 | $ 400,000 |
Gain on foreign currency contracts | 2,100,000 | ||
Loss on foreign currency contracts | 1,600,000 | ||
Net gains (losses) resulting from foreign exchange transactions | (500,000) | $ (100,000) | $ 3,400,000 |
Effective income tax rate reconciliation, share-based compensation, excess tax benefit, amount | $ 8,600,000 | ||
Land use rights | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Useful Life | 45 years | ||
Minimum | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Useful Life | 2 years | ||
Product warranty period | 1 year | ||
Maximum | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Useful Life | 7 years | ||
Product warranty period | 3 years | ||
Notes Receivable | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Receivable due period, general | 6 months | ||
Customer Concentration Risk | Customer One | Revenue | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Percentage of concentration of credit risk | 40.00% | 50.00% | 44.00% |
Customer Concentration Risk | Customer One | Accounts Receivable | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Percentage of concentration of credit risk | 36.00% | 42.00% | |
Customer Concentration Risk | Customer Two | Revenue | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Percentage of concentration of credit risk | 16.00% | 15.00% | 21.00% |
Customer Concentration Risk | Customer Two | Accounts Receivable | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Percentage of concentration of credit risk | 14.00% | 12.00% | |
Customer Concentration Risk | Customer Three | Accounts Receivable | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Percentage of concentration of credit risk | 10.00% | 12.00% | |
Customer Concentration Risk | Top Five Customers | Revenue | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Percentage of concentration of credit risk | 78.00% | 82.00% | 82.00% |
Accounting Standards Update 2016-09 | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Effective income tax rate reconciliation, share-based compensation, excess tax benefit, amount | $ 8,600,000 |
Summary of significant accoun47
Summary of significant accounting policies - Estimated Useful Lives of Property, Plant and Equipment (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Buildings | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful lives (in years) | 20 years |
Buildings | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful lives (in years) | 30 years |
Machinery and equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful lives (in years) | 2 years |
Machinery and equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful lives (in years) | 7 years |
Furniture, fixtures, software and office equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful lives (in years) | 3 years |
Furniture, fixtures, software and office equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful lives (in years) | 5 years |
Software | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful lives (in years) | 5 years |
Software | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful lives (in years) | 7 years |
Cash, cash equivalents, short48
Cash, cash equivalents, short-term investments and restricted cash - Short term investments and restricted cash and investments (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Cash and cash equivalents: | ||||
Cash | $ 78,906 | $ 58,691 | ||
Cash equivalents | 0 | 23,809 | ||
Cash and cash equivalents | 78,906 | 82,500 | $ 76,088 | $ 43,035 |
Short-term investments | 12,311 | 19,015 | ||
Restricted cash | $ 2,658 | $ 4,085 |
Cash, cash equivalents, short49
Cash, cash equivalents, short-term investments and restricted cash - Unrealized Gains and Losses Related to Cash Equivalents and Investments in Marketable Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 12,312 | $ 42,843 |
Gross Unrealized Gains | 0 | 4 |
Gross Unrealized Loss | (1) | (23) |
Fair Value | 12,311 | 42,824 |
Money market accounts | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 0 | 23,809 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Loss | 0 | 0 |
Fair Value | 0 | 23,809 |
Money market funds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 11,561 | 199 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Loss | 0 | 0 |
Fair Value | 11,561 | 199 |
Corporate debt securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 0 | 9,438 |
Gross Unrealized Gains | 0 | 4 |
Gross Unrealized Loss | 0 | (3) |
Fair Value | 0 | 9,439 |
Government agency securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 0 | 3,767 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Loss | 0 | (10) |
Fair Value | 0 | 3,757 |
U.S. government securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 751 | 5,008 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Loss | (1) | (10) |
Fair Value | 750 | 4,998 |
Sovereign government bonds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 0 | 622 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Loss | 0 | 0 |
Fair Value | 0 | 622 |
Cash equivalents | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 0 | 23,809 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Loss | 0 | 0 |
Fair Value | 0 | 23,809 |
Short-term investments | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 12,312 | 19,034 |
Gross Unrealized Gains | 0 | 4 |
Gross Unrealized Loss | (1) | (23) |
Fair Value | $ 12,311 | $ 19,015 |
Cash, cash equivalents, short50
Cash, cash equivalents, short-term investments and restricted cash - Maturities of marketable securities and additional information (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Cash and Cash Equivalents [Abstract] | ||
Less than 1 year | $ 12,311 | $ 36,054 |
Due in 1 to 2 years | 0 | 6,468 |
Due in 3 to 5 years | 0 | 302 |
Total | $ 12,311 | $ 42,824 |
Cash, cash equivalents, short51
Cash, cash equivalents, short-term investments, and restricted cash Cash, cash equivalents, short-term investments and restricted cash - Narrative (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017USD ($)defined_benfit_plan | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Cash and Cash Equivalents [Abstract] | |||
Impairment losses on its marketable securities | $ | $ 0 | $ 0 | $ 0 |
Investments in marketable securities in unrealized loss position in excess of 12 months item | defined_benfit_plan | 0 |
Fair value measurements- Assets
Fair value measurements- Assets and liabilities measured at fair value on recurring basis (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value assets (liabilities) | $ 12,311 | $ 42,824 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value assets (liabilities) | 12,311 | 5,197 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value assets (liabilities) | 0 | 37,627 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value assets (liabilities) | 0 | 0 |
Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value assets (liabilities) | 11,561 | 199 |
Money market funds | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value assets (liabilities) | 11,561 | 199 |
Money market funds | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value assets (liabilities) | 0 | 0 |
Money market funds | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value assets (liabilities) | 0 | 0 |
U.S. government securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value assets (liabilities) | 750 | 4,998 |
U.S. government securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value assets (liabilities) | 750 | 4,998 |
U.S. government securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value assets (liabilities) | 0 | 0 |
U.S. government securities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value assets (liabilities) | 0 | 0 |
Money market accounts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value assets (liabilities) | 0 | 23,809 |
Money market accounts | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value assets (liabilities) | 0 | 0 |
Money market accounts | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value assets (liabilities) | 0 | 23,809 |
Money market accounts | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value assets (liabilities) | 0 | 0 |
Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value assets (liabilities) | 0 | 9,439 |
Corporate debt securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value assets (liabilities) | 0 | 0 |
Corporate debt securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value assets (liabilities) | 0 | 9,439 |
Corporate debt securities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value assets (liabilities) | 0 | 0 |
Government agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value assets (liabilities) | 0 | 3,757 |
Government agency securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value assets (liabilities) | 0 | 0 |
Government agency securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value assets (liabilities) | 0 | 3,757 |
Government agency securities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value assets (liabilities) | 0 | 0 |
Sovereign government bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value assets (liabilities) | 0 | 622 |
Sovereign government bonds | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value assets (liabilities) | 0 | 0 |
Sovereign government bonds | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value assets (liabilities) | 0 | 622 |
Sovereign government bonds | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value assets (liabilities) | 0 | 0 |
Mutual funds held in Rabbi Trust, recorded in other long-term assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value assets (liabilities) | 523 | 622 |
Mutual funds held in Rabbi Trust, recorded in other long-term assets | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value assets (liabilities) | 523 | 622 |
Mutual funds held in Rabbi Trust, recorded in other long-term assets | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value assets (liabilities) | 0 | 0 |
Mutual funds held in Rabbi Trust, recorded in other long-term assets | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value assets (liabilities) | 0 | 0 |
Fair Value, Measurements, Recurring | Rusnano payment derivative | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value assets (liabilities) | 389 | 389 |
Fair Value, Measurements, Recurring | Rusnano payment derivative | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value assets (liabilities) | 0 | 0 |
Fair Value, Measurements, Recurring | Rusnano payment derivative | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value assets (liabilities) | 0 | 0 |
Fair Value, Measurements, Recurring | Rusnano payment derivative | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value assets (liabilities) | 389 | 389 |
Fair Value, Measurements, Recurring | Foreign currency forward contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value assets (liabilities) | (43) | 41 |
Fair Value, Measurements, Recurring | Foreign currency forward contracts | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value assets (liabilities) | 0 | 0 |
Fair Value, Measurements, Recurring | Foreign currency forward contracts | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value assets (liabilities) | (43) | 41 |
Fair Value, Measurements, Recurring | Foreign currency forward contracts | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value assets (liabilities) | 0 | 0 |
Fair Value, Measurements, Recurring | Derivative | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value assets (liabilities) | 346 | 430 |
Fair Value, Measurements, Recurring | Derivative | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value assets (liabilities) | 0 | 0 |
Fair Value, Measurements, Recurring | Derivative | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value assets (liabilities) | (43) | 41 |
Fair Value, Measurements, Recurring | Derivative | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value assets (liabilities) | $ 389 | $ 389 |
Fair value measurements - Asset
Fair value measurements - Assets and liabilities measured at fair value on a nonrecurring basis (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair value assets (liabilities) | $ 12,311,000 | $ 42,824,000 | |
Asset impairment charges | 0 | 0 | $ 368,000 |
Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair value assets (liabilities) | 0 | $ 0 | |
Fair Value, Measurements, Nonrecurring | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair value assets (liabilities) | $ 0 | ||
Fair Value, Measurements, Nonrecurring | Property, plant and equipment | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Asset impairment charges | 200,000 | ||
Fair Value, Measurements, Nonrecurring | Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Asset impairment charges | 200,000 | ||
Operating Expense | Fair Value, Measurements, Nonrecurring | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Asset impairment charges | $ 400,000 |
Net income (loss) per share - C
Net income (loss) per share - Computation 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 | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Numerator: | |||||||||||
Net income (loss) | $ (14,283) | $ (18,187) | $ (9,341) | $ (11,522) | $ 1,996 | $ (7,187) | $ 2,676 | $ 2,310 | $ (53,333) | $ (205) | $ 3,668 |
Denominator: | |||||||||||
Weighted average shares used to compute per share amount, basic (in shares) | 44,079 | 43,790 | 43,219 | 42,615 | 42,421 | 42,038 | 41,603 | 41,121 | 43,431 | 41,798 | 37,421 |
Dilutive effect of equity awards (in shares) | 0 | 0 | 1,265 | ||||||||
Weighted average shares used to compute diluted net (loss) income (in shares) | 44,079 | 43,790 | 43,219 | 42,615 | 45,767 | 42,038 | 44,320 | 43,648 | 43,431 | 41,798 | 38,686 |
Basic net income (loss) per share (USD per share) | $ (0.32) | $ (0.42) | $ (0.22) | $ (0.27) | $ 0.05 | $ (0.17) | $ 0.06 | $ 0.06 | $ (1.23) | $ 0 | $ 0.10 |
Diluted net income (loss) per share (USD per share) | $ (0.32) | $ (0.42) | $ (0.22) | $ (0.27) | $ 0.04 | $ (0.17) | $ 0.06 | $ 0.05 | $ (1.23) | $ 0 | $ 0.09 |
Net income (loss) per share - P
Net income (loss) per share - Potentially Dilutive Securities Excluded From Computation of Diluted Net Loss per Share Attributable to Common Stockholders (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share | |||
Potentially dilutive securities, excluded from computation of diluted net income (loss) per share | 6,760 | 6,696 | 3,448 |
Employee stock options | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share | |||
Potentially dilutive securities, excluded from computation of diluted net income (loss) per share | 3,934 | 4,301 | 2,176 |
Restricted stock units | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share | |||
Potentially dilutive securities, excluded from computation of diluted net income (loss) per share | 2,405 | 2,089 | 954 |
Employee stock purchase plan | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share | |||
Potentially dilutive securities, excluded from computation of diluted net income (loss) per share | 421 | 306 | 318 |
Business Combinations (Details)
Business Combinations (Details) - USD ($) | Apr. 16, 2015 | Jan. 02, 2015 | Nov. 30, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Business Acquisition [Line Items] | |||||||
Cash consideration paid | $ 0 | $ 0 | $ 422,000 | ||||
Acquisition and asset sale related costs | 130,000 | 2,125,000 | 934,000 | ||||
Tunable Laser Product Lines From EMCORE Corporation | |||||||
Business Acquisition [Line Items] | |||||||
Purchase price | $ 16,982,000 | $ 17,500,000 | |||||
Cash consideration paid | 1,500,000 | 1,500,000 | |||||
Issuance of notes to the seller of acquired business | $ 15,482,000 | $ 16,000,000 | |||||
Acquisition and asset sale related costs | 900,000 | ||||||
Tunable Laser Product Lines From EMCORE Corporation | Pro Forma | |||||||
Business Acquisition [Line Items] | |||||||
Acquisition and asset sale related costs | 300,000 | $ 600,000 | |||||
Revenues | 96,000,000 | 80,800,000 | 55,800,000 | ||||
Tunable Laser Product Lines From EMCORE Corporation | Intersegment Eliminations | Pro Forma | |||||||
Business Acquisition [Line Items] | |||||||
Sales between business acquired from ENCORE and the Company | $ 0 | $ 0 | $ 0 | ||||
EigenLight Corporation | |||||||
Business Acquisition [Line Items] | |||||||
Cash consideration paid | $ 400,000 |
Business Combinations - Allocat
Business Combinations - Allocation of Assets acquired, liabilites assumed and Purchase price (Details) - USD ($) $ in Thousands | Apr. 16, 2015 | Jan. 02, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Total purchase consideration: | |||||
Cash paid | $ 0 | $ 0 | $ 422 | ||
Liabilities assumed: | |||||
Goodwill | $ 1,115 | $ 1,115 | |||
Tunable Laser Product Lines From EMCORE Corporation | |||||
Total purchase consideration: | |||||
Cash paid | $ 1,500 | $ 1,500 | |||
Notes payable | 15,482 | 16,000 | |||
Total | 16,982 | 17,500 | |||
Fair value of assets acquired: | |||||
Accounts receivable | 9,274 | ||||
Inventories | 1,693 | ||||
Prepaid expenses and other current assets | 670 | ||||
Property, plant and equipment | 6,917 | ||||
Intangible assets acquired: | |||||
Purchased intangible assets | $ 4,800 | ||||
Total | 23,354 | ||||
Liabilities assumed: | |||||
Accounts payable | (7,427) | ||||
Accrued liabilities | (60) | ||||
Total | (7,487) | ||||
Goodwill | 1,115 | ||||
Tunable Laser Product Lines From EMCORE Corporation | Developed technology | |||||
Fair value of assets acquired: | |||||
Useful Life | 7 years | ||||
Intangible assets acquired: | |||||
Purchased intangible assets | 4,100 | $ 4,100 | |||
Tunable Laser Product Lines From EMCORE Corporation | Customer relationships | |||||
Fair value of assets acquired: | |||||
Useful Life | 2 years | ||||
Intangible assets acquired: | |||||
Purchased intangible assets | $ 700 | $ 700 |
Business Combinations - Summary
Business Combinations - Summary of Intangible Assets Acquired (Details) - Tunable Laser Product Lines From EMCORE Corporation - USD ($) $ in Thousands | Jan. 02, 2015 | Apr. 16, 2015 |
Business Acquisition [Line Items] | ||
Purchased intangible assets | $ 4,800 | |
Developed technology | ||
Business Acquisition [Line Items] | ||
Useful Life | 7 years | |
Purchased intangible assets | $ 4,100 | $ 4,100 |
Customer relationships | ||
Business Acquisition [Line Items] | ||
Useful Life | 2 years | |
Purchased intangible assets | $ 700 | $ 700 |
Business Combinations - Pro for
Business Combinations - Pro forma results (Details) - Tunable Laser Product Lines From EMCORE Corporation - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||
Revenue | $ 339,439 | $ 353,003 |
Net income (loss) | $ 4,088 | $ (23,221) |
Basic net income (loss) per share (USD per share) | $ 0.11 | $ (0.72) |
Diluted net income (loss) per share (USD per share) | $ 0.11 | $ (0.72) |
Purchased intangible assets - C
Purchased intangible assets - Components (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Assets | $ 54,418 | $ 53,183 |
Accumulated Amortization | (50,124) | (47,621) |
Net Assets | 4,294 | 5,562 |
Technology and patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Assets | 37,684 | 36,918 |
Accumulated Amortization | (34,923) | (33,316) |
Net Assets | 2,761 | 3,602 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Assets | 15,425 | 15,039 |
Accumulated Amortization | (14,835) | (13,990) |
Net Assets | 590 | 1,049 |
Leasehold interest | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Assets | 1,309 | 1,226 |
Accumulated Amortization | (366) | (315) |
Net Assets | $ 943 | $ 911 |
Purchased intangible assets - A
Purchased intangible assets - Amortization expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Cost of goods sold | $ 869 | $ 2,871 | $ 3,349 |
Operating expenses | 472 | 1,609 | 1,791 |
Total | $ 1,341 | $ 4,480 | $ 5,140 |
Purchased intangible assets - E
Purchased intangible assets - Estimated future amortization expense (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2,018 | $ 1,208 | |
2,019 | 807 | |
2,020 | 689 | |
2,021 | 689 | |
2,022 | 103 | |
Thereafter | 798 | |
Net Assets | $ 4,294 | $ 5,562 |
Balance sheet components - Rest
Balance sheet components - Restricted Cash and Investments (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash and investments | $ 2,658 | $ 4,085 |
Restricted cash | 2,658 | 4,085 |
Restricted in connection with asset purchase agreement | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash and investments | 0 | 1,987 |
Restricted in connection with notes payable and short-term borrowing | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash and investments | $ 2,658 | $ 2,098 |
Balance sheet components - Acco
Balance sheet components - Accounts receivable, net (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Balance Sheet Related Disclosures [Abstract] | ||
Accounts receivable | $ 65,499 | $ 78,143 |
Trade notes receivable | 2,356 | 2,892 |
Allowance for doubtful accounts | (626) | (425) |
Accounts receivable, Net ,Total | $ 67,229 | $ 80,610 |
Balance sheet components - Allo
Balance sheet components - Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Provision for bad debt | $ (577) | $ 382 | $ (640) |
Allowance for Doubtful Accounts | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Beginning Balance | (425) | (843) | (241) |
Provision for bad debt | (577) | 382 | (640) |
Write-offs, net of recoveries | 376 | 36 | 38 |
Ending Balance | $ (626) | $ (425) | $ (843) |
Balance sheet components - Inve
Balance sheet components - Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Balance Sheet Related Disclosures [Abstract] | ||
Raw materials | $ 33,400 | $ 23,348 |
Work in process | 13,246 | 10,996 |
Finished goods | 20,655 | 13,893 |
Inventories | 67,301 | 48,237 |
Finished goods, at vendor managed inventory locations | $ 7,100 | $ 8,300 |
Balance sheet components - Prep
Balance sheet components - Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Balance Sheet Related Disclosures [Abstract] | ||
Prepaid taxes and taxes receivable | $ 15,162 | $ 16,102 |
Transition services agreement receivable (see Note 9) | 12,817 | 0 |
Deposits and other prepaid expenses | 4,138 | 3,571 |
Other receivable | 4,118 | 2,723 |
Prepaid expenses and other current assets | $ 36,235 | $ 22,396 |
Balance sheet components - Prop
Balance sheet components - Property, Plant and Equipment, net (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | $ 252,667,000 | $ 208,222,000 | |
Less: Accumulated depreciation | (125,102,000) | (101,355,000) | |
Property, plant and equipment, net | 127,565,000 | 106,867,000 | |
Depreciation expense | 27,000,000 | 17,900,000 | $ 17,700,000 |
Asset impairment charges | 400,000 | 0 | 400,000 |
Purchases of property, plant and equipment, unpaid | 10,000,000 | 16,100,000 | $ 2,500,000 |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | 3,083,000 | 2,847,000 | |
Buildings | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | 24,102,000 | 22,107,000 | |
Asset impairment charges | 100,000 | ||
Machinery and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | 189,527,000 | 160,314,000 | |
Furniture, fixtures, software and office equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | 9,948,000 | 8,413,000 | |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | $ 26,007,000 | $ 14,541,000 |
Balance sheet components - Accr
Balance sheet components - Accrued and other current liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Balance Sheet Related Disclosures [Abstract] | ||
Employee-related | $ 12,990 | $ 18,654 |
Transition services agreement payables (see Note 9) | 11,222 | 0 |
Asset sale related contingent liabilities (see Note 9) | 7,135 | 0 |
Income and other taxes payable | 542 | 3,956 |
Deferred revenue, current | 939 | 956 |
Accrued warranty | 1,334 | 678 |
Rusnano payment derivative | 0 | 389 |
Other accrued expenses | 9,080 | 5,992 |
Accrued and other current liabilities | $ 43,242 | $ 30,625 |
Balance sheet components - Ac70
Balance sheet components - Accrued warrranty (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease) [Roll Forward] | |||
Beginning balance | $ 678 | $ 1,175 | $ 1,751 |
Warranty accruals | 1,263 | 102 | 79 |
Settlements | (607) | (599) | (655) |
Ending balance | $ 1,334 | $ 678 | $ 1,175 |
Balance sheet components - Othe
Balance sheet components - Other noncurrent liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Balance Sheet Related Disclosures [Abstract] | ||
Pension and other employee-related | $ 4,675 | $ 5,045 |
Deferred rent | 2,908 | 1,509 |
Deferred revenue | 617 | 136 |
Government grant | 1,095 | 1,048 |
Rusnano payment derivative | 389 | 0 |
Deferred income tax liabilities | 106 | 46 |
Asset retirement obligations and other | 4,285 | 1,155 |
Other noncurrent liabilities | $ 14,075 | $ 8,939 |
Asset sale (Details)
Asset sale (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Jan. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Transition services agreement receivable (Note 5) | $ 12,817 | $ 0 | ||
Transition services agreement payables (Note 5) | 11,222 | 0 | ||
Assets held for sale | 0 | 13,953 | ||
Gain within operating income | 2,193 | 0 | $ 0 | |
Other current liabilities | Indemnification agreement | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Contingent liability | $ 7,100 | |||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Assets held for sale | 13,900 | |||
Reclassification from assets held-for-sale | $ 3,400 | |||
Assets sold | 12,800 | |||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Inventories | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Assets held for sale, other | 13,100 | |||
Assets sold | 12,100 | |||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Property, plant and equipment | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Assets held for sale, other | $ 800 | |||
Assets sold | 700 | |||
APAT OE | Disposal Group, Disposed of by Sale, Not Discontinued Operations | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Consideration received pursuant to asset purchase agreement | 25,000 | |||
Proceeds from post-closing transaction services fees under transition services agreement | 1,400 | |||
Disposal group consideration adjustment | 21,600 | |||
Consideration adjustment for potential indemnification claims | $ 10,000 |
Restructuring (Details)
Restructuring (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Restructuring Cost and Reserve [Line Items] | |||
Write-down of inventories | $ 8,349,000 | $ 2,983,000 | $ 6,486,000 |
Restructuring Reserve [Roll Forward] | |||
Restructuring obligations December 31, 2016 | 0 | ||
Charges | 4,745,000 | ||
Cash payments | (2,795,000) | ||
Non-cash settlements and other | (327,000) | ||
Restructuring obligations December 31, 2017 | 1,623,000 | 0 | |
Employee Severance | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring obligations December 31, 2016 | 0 | ||
Charges | 2,308,000 | ||
Cash payments | (2,308,000) | ||
Non-cash settlements and other | 0 | ||
Restructuring obligations December 31, 2017 | 0 | 0 | |
Facilities Consolidation | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring obligations December 31, 2016 | 0 | ||
Charges | 2,003,000 | ||
Cash payments | (310,000) | ||
Non-cash settlements and other | (113,000) | ||
Restructuring obligations December 31, 2017 | 1,580,000 | 0 | |
Asset-Related | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring obligations December 31, 2016 | 0 | ||
Charges | 434,000 | ||
Cash payments | (177,000) | ||
Non-cash settlements and other | (214,000) | ||
Restructuring obligations December 31, 2017 | 43,000 | $ 0 | |
Cost of goods sold | |||
Restructuring Cost and Reserve [Line Items] | |||
Write-down of inventories | 2,000,000 | ||
Restructuring Reserve [Roll Forward] | |||
Charges | 800,000 | ||
Operating Expense | |||
Restructuring Reserve [Roll Forward] | |||
Charges | $ 3,900,000 |
Debt - Components of Debt, Obli
Debt - Components of Debt, Obligations, Weighted Average Interest Rate (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
Total notes payable and short-term borrowing | $ 35,607 | $ 30,190 |
Total long-term debt, net of unaccreted discount and issuance costs | 46,561 | 10,962 |
Current portion of long-term debt | 6,005 | 747 |
Long-term debt, net of current portion | 40,556 | 10,215 |
Mitsubishi Bank | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 16,924 | $ 11,253 |
Interest Rate | 1.43% | |
Bank Borrowings | ||
Debt Instrument [Line Items] | ||
Total notes payable and short-term borrowing | 0 | $ 23,800 |
Bank Borrowings | Comerica Bank Term Loan | ||
Debt Instrument [Line Items] | ||
Interest Rate | 3.37% | |
Long Term Debt Current | ||
Debt Instrument [Line Items] | ||
Unaccreted discount and issuance costs within current portion of long-term debt | (86) | $ (108) |
Long Term Debt Non Current | ||
Debt Instrument [Line Items] | ||
Unaccreted discount and issuance costs within long-term debt, net of current portion | (295) | (183) |
Wells Fargo Credit Facility | Line of Credit | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 30,018 | 0 |
Interest Rate | 3.29% | |
Notes Payable to Banks | Note payable to Pudong Bank | ||
Debt Instrument [Line Items] | ||
Total notes payable and short-term borrowing | $ 17,000 | 0 |
Interest Rate | 4.10% | |
Notes Payable to Banks | Note payable to CITIC Bank | ||
Debt Instrument [Line Items] | ||
Total notes payable and short-term borrowing | $ 17,000 | 0 |
Interest Rate | 4.00% | |
Notes Payable | ||
Debt Instrument [Line Items] | ||
Total notes payable and short-term borrowing | $ 1,607 | $ 6,390 |
Minimum | Mitsubishi Bank | ||
Debt Instrument [Line Items] | ||
Interest Rate | 1.05% | |
Maximum | Mitsubishi Bank | ||
Debt Instrument [Line Items] | ||
Interest Rate | 1.45% |
Debt - Narrative (Details)
Debt - Narrative (Details) | Feb. 25, 2015JPY (¥) | Feb. 28, 2018USD ($) | Jan. 31, 2018USD ($) | Jan. 31, 2018JPY (¥) | Nov. 30, 2017USD ($) | Sep. 30, 2017USD ($) | Jul. 31, 2017USD ($) | Mar. 31, 2017USD ($) | Mar. 10, 2017 | Sep. 30, 2017USD ($) | Dec. 31, 2017USD ($)debt_instrument | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2015JPY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2017JPY (¥) | Jun. 30, 2017USD ($) | Mar. 31, 2017JPY (¥) | Feb. 25, 2015USD ($) | Feb. 25, 2015JPY (¥) |
Debt Instrument [Line Items] | ||||||||||||||||||||
Repayment of notes payable | $ 11,639,000 | $ 18,007,000 | $ 25,498,000 | |||||||||||||||||
Long-term debt | 46,561,000 | 10,962,000 | ||||||||||||||||||
Comerica | Revolving Credit Facility | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Outstanding balance of line of credit facilities | 23,800,000 | |||||||||||||||||||
Current borrowing capacity | $ 30,000,000 | |||||||||||||||||||
Mitsubishi Bank | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Short-term line of credit facility | ¥ | ¥ 1,200,000,000 | |||||||||||||||||||
Interest Rate | 1.43% | |||||||||||||||||||
NeoPhotonics Semiconductor | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Debt repaid | ¥ | ¥ 1,050,000,000 | |||||||||||||||||||
Libor Plus Rate | Comerica | Revolving Credit Facility | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Line of credit facility, interest rate | 3.37% | |||||||||||||||||||
Term Loan B | Mitsubishi Bank | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Debt, aggregate principal amount | $ 8,900,000 | ¥ 1,000,000,000 | ||||||||||||||||||
Debt, periodic principal payments | ¥ | ¥ 8,333,000 | |||||||||||||||||||
Debt, lump sum payment on the maturity date | ¥ | ¥ 8,373,000 | |||||||||||||||||||
Debt issuance costs | 400,000 | 40,500,000 | ||||||||||||||||||
Term Loan B | Tunable Laser Product Lines From EMCORE Corporation | Mitsubishi Bank | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Debt repaid | $ 15,500,000 | |||||||||||||||||||
Term Loan B | Tokyo Interbank Offered Rate (TIBOR) | Mitsubishi Bank | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Debt instrument, basis spread | 1.40% | |||||||||||||||||||
Senior Secured Revolving Credit Facility, expires April 2017 | Libor Plus Rate | Comerica | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Debt instrument, basis spread | 2.75% | |||||||||||||||||||
Senior Secured Revolving Credit Facility, expires April 2017 | Credit Facility Base Rate | Comerica | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Debt instrument, basis spread | 1.75% | |||||||||||||||||||
Senior Secured Revolving Credit Facility, expires April 2017 | Federal Funds Effective Rate | Comerica | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Debt instrument, basis spread | 1.00% | |||||||||||||||||||
Senior Secured Revolving Credit Facility, expires April 2017 | Daily Adjusting LIBOR Rate | Comerica | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Debt instrument, basis spread | 1.00% | |||||||||||||||||||
Wells Fargo Credit Facility | Line of Credit | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Line of credit maximum borrowing capacity | $ 50,000,000 | $ 50,000,000 | ||||||||||||||||||
Short-term line of credit facility | $ 30,000,000 | $ 30,000,000 | ||||||||||||||||||
Outstanding balance of line of credit facilities | 30,000,000 | |||||||||||||||||||
Cash balance available for borrowing | 100.00% | |||||||||||||||||||
Cash balance max borrowing | $ 15,000,000 | |||||||||||||||||||
Line of credit facility, increase (decrease) | 25,000,000 | |||||||||||||||||||
Repayment of notes payable | $ 20,000,000 | |||||||||||||||||||
Line of credit facility, collateral | 20 | |||||||||||||||||||
Unused borrowing capacity | $ 5,000,000 | |||||||||||||||||||
Interest Rate | 3.29% | 3.29% | 3.29% | |||||||||||||||||
Line of credit remaining borrowing capacity | $ 20,000,000 | |||||||||||||||||||
Required amount to be maintained as unused borrowing capacity | 5,000,000 | |||||||||||||||||||
Wells Fargo Credit Facility | Prime Rate | Line of Credit | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Commitment fee | 0.25% | |||||||||||||||||||
Term Loan A | Mitsubishi Bank | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Debt, aggregate principal amount | $ 4,400,000 | ¥ 500,000,000 | ||||||||||||||||||
Term Loan A | Tokyo Interbank Offered Rate (TIBOR) | Mitsubishi Bank | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Debt instrument, basis spread | 1.40% | |||||||||||||||||||
Mitsubishi Bank Term Loan A | Notes Payable to Banks | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Short-term line of credit facility | 4,400,000 | |||||||||||||||||||
Mitsubishi Bank Term Loan B | Notes Payable to Banks | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Long-term debt | 6,400,000 | |||||||||||||||||||
Mitsubishi Bank Loans | Notes Payable to Banks | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Unamortized debt issuance costs | 400,000 | ¥ 43,000,000 | ||||||||||||||||||
Mitsubishi Bank Loan 2017 | Notes Payable to Banks | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Short-term line of credit facility | 6,100,000 | ¥ 690,000,000 | ||||||||||||||||||
Debt, aggregate principal amount | $ 6,100,000 | ¥ 690,000,000 | ||||||||||||||||||
Mitsubishi Bank Loan 2017 | Tokyo Interbank Offered Rate (TIBOR) | Notes Payable to Banks | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Debt instrument, basis spread | 1.00% | |||||||||||||||||||
Notes Payable | Second Line Of Credit, Expires July 2019 | Subsidiary in China | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Short-term line of credit facility | 4,600,000 | ¥ 30,000,000 | ||||||||||||||||||
Bankers Acceptance | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Restricted cash and investments, current | $ 500,000 | $ 2,100,000 | ||||||||||||||||||
Bankers Acceptance | Subsidiary in China | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Outstanding balance of line of credit facilities | 6,400,000 | |||||||||||||||||||
Bankers Acceptance | Second Line Of Credit, Expires July 2019 | Subsidiary in China | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Percentage of compensating balance requirement for bank acceptance drafts | 30.00% | |||||||||||||||||||
Short-term line of credit facility | $ 6,600,000 | ¥ 42,900,000 | ||||||||||||||||||
Bankers Acceptance | First Credit Facility Expires July 2019 | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Percentage of compensating balance requirement for bank acceptance drafts | 30.00% | |||||||||||||||||||
Notes Payable to Banks | Note payable to CITIC Bank | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Debt instrument, basis spread | 2.55% | |||||||||||||||||||
Borrowing on line of credit | $ 17,000,000 | |||||||||||||||||||
Interest Rate | 4.00% | 4.00% | 4.00% | |||||||||||||||||
Line of Credit | Amended Comerica Bank Credit Facility | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Current borrowing capacity | $ 17,000,000 | |||||||||||||||||||
Line of credit facility, maximum indebtedness under debt covenant | $ 20,000,000 | |||||||||||||||||||
China | CITIC Bank | Line of Credit | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Line of credit maximum borrowing capacity | $ 38,400,000 | ¥ 250,000,000 | ||||||||||||||||||
Line of credit remaining borrowing capacity | $ 37,900,000 | |||||||||||||||||||
China | First Credit Facility Expires June 2016 | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Percentage of compensating balance requirement for bank acceptance drafts | 30.00% | |||||||||||||||||||
China | Notes Payable | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Number of credit facilities | debt_instrument | 3 | |||||||||||||||||||
China | Notes Payable | First Credit Facility Expires June 2016 | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Short-term line of credit facility | $ 18,400,000 | 120,000,000 | ||||||||||||||||||
Borrowing on line of credit | $ 17,000,000 | |||||||||||||||||||
China | Bankers Acceptance | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Outstanding balance of line of credit facilities | 1,600,000 | |||||||||||||||||||
Line of credit remaining borrowing capacity | 43,400,000 | |||||||||||||||||||
China | Bankers Acceptance | First Credit Facility Expires June 2016 | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Line of credit maximum borrowing capacity | $ 26,300,000 | ¥ 171,400,000 | ||||||||||||||||||
Debt instrument, basis spread | 4.10% | |||||||||||||||||||
Minimum | Mitsubishi Bank | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Interest Rate | 1.05% | 1.05% | 1.05% | |||||||||||||||||
Minimum | Wells Fargo Credit Facility | Line of Credit | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Revolver accounts receivable | 80.00% | |||||||||||||||||||
Minimum | Wells Fargo Credit Facility | Credit Facility Base Rate | Line of Credit | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Debt instrument, basis spread | 1.50% | |||||||||||||||||||
Minimum | Wells Fargo Credit Facility | Prime Rate | Line of Credit | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Debt instrument, basis spread | 0.50% | |||||||||||||||||||
Maximum | Mitsubishi Bank | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Interest Rate | 1.45% | 1.45% | 1.45% | |||||||||||||||||
Maximum | Wells Fargo Credit Facility | Line of Credit | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Revolver accounts receivable | 85.00% | |||||||||||||||||||
Maximum | Wells Fargo Credit Facility | Credit Facility Base Rate | Line of Credit | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Debt instrument, basis spread | 1.75% | |||||||||||||||||||
Maximum | Wells Fargo Credit Facility | Prime Rate | Line of Credit | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Debt instrument, basis spread | 0.75% | |||||||||||||||||||
Financial Standby Letter of Credit | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Outstanding letters of credit | $ 1,600,000 | |||||||||||||||||||
Subsequent Event | Mitsubishi Bank Term Loan A | Notes Payable to Banks | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Repayments of lines of credit | $ 4,400,000 | ¥ 500,000,000 | ||||||||||||||||||
Subsequent Event | Notes Payable to Banks | Note payable to CITIC Bank | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Repayments of lines of credit | 17,000,000 | |||||||||||||||||||
Borrowing on line of credit | $ 17,000,000 | |||||||||||||||||||
Subsequent Event | China | CITIC Bank | Line of Credit | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Borrowing on line of credit | $ 17,000,000 | |||||||||||||||||||
Subsequent Event | China | Notes Payable to Banks | Note payable to CITIC Bank | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Repayments of lines of credit | $ 17,000,000 |
Debt - Maturities of Long-Term
Debt - Maturities of Long-Term debt (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Debt Disclosure [Abstract] | |
2,018 | $ 6,091 |
2,019 | 1,908 |
2,020 | 1,908 |
2,021 | 1,908 |
2,022 | 31,926 |
Thereafter | 3,201 |
Long Term Debt | $ 46,942 |
Pension Plans - Narrative (Deta
Pension Plans - Narrative (Details) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | May 31, 2014USD ($) | Dec. 31, 2013defined_benfit_plan | |
Defined Benefit Plan Disclosure [Line Items] | ||||||
Number of defined benefit plans | defined_benfit_plan | 2 | |||||
Cost of goods sold | $ 231,415 | $ 294,290 | $ 240,358 | |||
Operating expenses | $ 112,843 | $ 114,114 | $ 95,128 | |||
Discount rate | 0.10% | 0.10% | ||||
Reclassification out of Accumulated Other Comprehensive Income | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Cost of goods sold | $ 200 | |||||
Operating expenses | $ 100 | |||||
Pension Plan | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Plan assets | $ 2,000 | |||||
Receivable from LAPIS | $ 300 |
Pension Plans - Funded Status (
Pension Plans - Funded Status (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Change in projected benefit obligation: | |||
Projected benefit obligation, beginning of period | $ 4,802 | $ 5,086 | $ 5,054 |
Service cost | 0 | 0 | 0 |
Interest cost | 5 | 11 | 10 |
Benefits paid | (411) | (551) | 0 |
Actuarial (gain)/loss | 32 | 72 | 40 |
Curtailment/Settlement | 0 | 0 | 0 |
Transfer from DBCPP to RAP | 0 | 0 | 0 |
Currency translation adjustment | 188 | 184 | (18) |
Projected benefit obligation, end of period | 4,616 | 4,802 | 5,086 |
Change in plan assets: | |||
Plan assets at fair value, beginning of period | 0 | 0 | 0 |
Employer contributions | 0 | ||
Benefits paid | 0 | ||
Transfer to DCP | 0 | ||
Currency translation adjustment | 0 | ||
Plan assets at calculated amount, end of period | 0 | 0 | 0 |
Amounts recognized in consolidated balance sheets: | |||
Accrued and other current liabilities | 488 | 393 | 497 |
Other noncurrent liabilities | 4,128 | 4,409 | 4,589 |
Amount recognized in accumulated other comprehensive loss: | |||
Defined benefit pension plans adjustment | 271 | 230 | 153 |
Accumulated benefit obligation, end of period | $ 4,616 | $ 4,802 | $ 5,086 |
Pension Plans - Periodic Pensio
Pension Plans - Periodic Pension Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |||
Service cost | $ 0 | $ 0 | $ 0 |
Interest cost | 5 | 11 | 10 |
Other | 0 | 0 | 0 |
Curtailment/settlement (gain) loss | 0 | 0 | 0 |
Net periodic pension (gain) costs | $ 5 | $ 11 | $ 10 |
Pension Plans - Estimated Futur
Pension Plans - Estimated Future Benefit Payments Under Plans (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Compensation and Retirement Disclosure [Abstract] | ||||
2,018 | $ 387 | |||
2,019 | 183 | |||
2,020 | 501 | |||
2,021 | 611 | |||
2,022 | 288 | |||
2023 - 2026 | 1,342 | |||
Thereafter | 1,304 | |||
Defined benefit plan, benefit obligation | $ 4,616 | $ 4,802 | $ 5,086 | $ 5,054 |
Pension Plans - 401 (k) Plan (D
Pension Plans - 401 (k) Plan (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |||
Matching contributions to 401(k) plan | $ 0.5 | $ 0.4 | $ 0.3 |
Commitments and contingencies -
Commitments and contingencies - Narrative (Details) ft² in Thousands, € in Millions, ¥ in Millions | Oct. 25, 2017USD ($) | Oct. 25, 2017CNY (¥) | Jun. 16, 2017USD ($) | Jun. 13, 2017USD ($)ft² | Dec. 27, 2016USD ($) | Sep. 16, 2013USD ($) | Apr. 30, 2017USD ($) | Sep. 30, 2016USD ($)ft² | Aug. 31, 2016USD ($) | Mar. 31, 2015USD ($) | Mar. 31, 2015EUR (€) | Dec. 31, 2019USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2010defendantclaim | Dec. 31, 2012USD ($)claim |
Commitments And Contingencies Disclosure [Line Items] | |||||||||||||||||
Area of office lease | ft² | 39 | 64 | |||||||||||||||
Office lease term, months | 123 months | 129 months | |||||||||||||||
Expected lease restoration charges | $ 700,000 | $ 3,100,000 | |||||||||||||||
Lease period, with no rent charge | 9 months | ||||||||||||||||
Operating leases, future minimum, sublease receipts | $ 1,700,000 | ||||||||||||||||
Rent expense | 4,600,000 | $ 2,400,000 | $ 2,200,000 | ||||||||||||||
Total outstanding purchase obligations | 32,100,000 | ||||||||||||||||
Other non-current liability | 0 | ||||||||||||||||
Amount of contribution | 21,000,000 | ||||||||||||||||
Fair value of derivative | 400,000 | 400,000 | |||||||||||||||
Expected Costs to Transfer Product Line | $ 100,000 | ||||||||||||||||
Laser2000 Case | |||||||||||||||||
Commitments And Contingencies Disclosure [Line Items] | |||||||||||||||||
Payments for legal settlements | $ 250,000 | ||||||||||||||||
Lestina International Ltd. Litigation | |||||||||||||||||
Commitments And Contingencies Disclosure [Line Items] | |||||||||||||||||
Damages sought | $ 3,000,000 | ||||||||||||||||
Apat Optoelectronics Components Co Arbitration | |||||||||||||||||
Commitments And Contingencies Disclosure [Line Items] | |||||||||||||||||
Damages sought | $ 1,500,000 | ||||||||||||||||
Proceeds from legal settlements | $ 100,000 | ¥ 0.7 | |||||||||||||||
Minimum | |||||||||||||||||
Commitments And Contingencies Disclosure [Line Items] | |||||||||||||||||
Office lease, monthly rental rate | 41,388 | 144,000 | |||||||||||||||
Maximum | |||||||||||||||||
Commitments And Contingencies Disclosure [Line Items] | |||||||||||||||||
Office lease, monthly rental rate | $ 72,525 | 194,000 | |||||||||||||||
Pending Litigation Member | Laser2000 Case | |||||||||||||||||
Commitments And Contingencies Disclosure [Line Items] | |||||||||||||||||
Estimated litigation liability | $ 300,000 | ||||||||||||||||
Infringement of United States Patents | Finisar | |||||||||||||||||
Commitments And Contingencies Disclosure [Line Items] | |||||||||||||||||
Claims of patent infringement | claim | 2 | 4 | |||||||||||||||
Number of defendants | defendant | 1 | ||||||||||||||||
Termination Of Distributor Agreement | Pending Litigation Member | Laser 2000 | |||||||||||||||||
Commitments And Contingencies Disclosure [Line Items] | |||||||||||||||||
Partial settlement of claims payment | $ 492,000 | ||||||||||||||||
Accrual for estimated net litigation expense | $ 1,100,000 | € 1 | |||||||||||||||
Private Placement | Performance Guarantee | |||||||||||||||||
Commitments And Contingencies Disclosure [Line Items] | |||||||||||||||||
Other non-current liability | $ 8,000,000 | $ 30,000,000 | |||||||||||||||
Embedded Derivative Financial Instruments | Maximum | |||||||||||||||||
Commitments And Contingencies Disclosure [Line Items] | |||||||||||||||||
Other non-current liability | $ 5,000,000 | ||||||||||||||||
Rusnano | |||||||||||||||||
Commitments And Contingencies Disclosure [Line Items] | |||||||||||||||||
Other non-current liability | $ 0 | ||||||||||||||||
Scenario, Forecast | RUSSIAN FEDERATION | |||||||||||||||||
Commitments And Contingencies Disclosure [Line Items] | |||||||||||||||||
Exit fees for future | $ 2,000,000 |
Commitments and contingencies83
Commitments and contingencies - Future minimum commitments under the Company's non-cancelable operating leases (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,018 | $ 3,512 |
2,019 | 3,608 |
2,020 | 3,069 |
2,021 | 2,977 |
2,022 | 2,939 |
Thereafter | 14,370 |
Total future minimum lease payments | $ 30,475 |
Stockholders' Equity - Common s
Stockholders' Equity - Common stock, resale registration statement, and follow-on public offering (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Class of Stock [Line Items] | ||||
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 | ||
Common stock, par value (USD per share) | $ 0.0025 | $ 0.0025 | ||
Issuance of common stock from public stock offering, net of discount and offering costs (in shares) | 895,655 | 6,866,689 | ||
Public offering price (USD per share) | $ 7.25 | |||
Proceeds from issuance of common stock | $ 45,600,000 | |||
Underwriting discounts | 3,000,000 | |||
Other offering expenses | 1,200,000 | |||
Reclassified out of accumulated other comprehensive loss for realized gains or losses on available for sale securities | $ 0 | $ 0 | $ 0 | |
Accumulated deficit subject to restriction | $ (8,800,000) | $ (8,700,000) | ||
Resale Registration Statement | ||||
Class of Stock [Line Items] | ||||
Common stock, shares authorized (in shares) | 4,972,905 | 4,972,905 | ||
Common stock, par value (USD per share) | $ 0.0025 | $ 0.0025 | ||
Minimum | ||||
Class of Stock [Line Items] | ||||
Accumulated profits | 10.00% | |||
Employee stock options | ||||
Class of Stock [Line Items] | ||||
Common stock reserved for future issuance (in shares) | 7,297,302 | |||
Employee stock purchase plan | ||||
Class of Stock [Line Items] | ||||
Common stock reserved for future issuance (in shares) | 278,673 |
Stockholders' Equity - Accumula
Stockholders' Equity - Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Stockholders' Equity Note [Abstract] | ||
Foreign currency translation adjustments | $ 567 | $ (8,235) |
Unrealized gains on available-for-sale securities | (1) | (19) |
Defined benefit pension plan adjustment | (168) | (147) |
Accumulated other comprehensive income (loss), net of taxes | $ 398 | $ (8,401) |
Stock-based Compensation - Narr
Stock-based Compensation - Narrative (Details) $ / shares in Units, $ in Thousands | Dec. 18, 2014USD ($) | Dec. 18, 2014USD ($)shares | Sep. 30, 2016 | Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2016USD ($)installment$ / sharesshares | Dec. 31, 2015USD ($)$ / sharesshares | Dec. 31, 2014$ / shares | Feb. 28, 2011shares | Apr. 30, 2010shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Remitted cash to appropriate tax authorities | $ | $ 998 | $ 615 | $ 727 | ||||||
Stock Appreciation Units (SARs) | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Options to purchase shares, outstanding (in shares) | 239,824 | 286,768 | |||||||
Intrinsic value of options exercised | $ | $ 200 | $ 500 | 100 | ||||||
Number of days for stock price to be traded above mentioned price | 20 days | ||||||||
Minimum closing stock price (USD per share) | $ / shares | $ 15 | ||||||||
Share-based compensation expense (gain) | $ | $ (300) | 900 | |||||||
Stock grants vested value | $ | $ 0 | $ 3,700 | 0 | ||||||
Employee stock options | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Options to purchase shares, outstanding (in shares) | 3,933,529 | 4,301,340 | |||||||
Shares available for future grant (in shares) | 959,136 | 768,046 | |||||||
Authorized for issuance (in shares) | 1,488,411 | ||||||||
Unrecognized stock-based compensation expense | $ | $ 3,200 | ||||||||
Fair value of options vested | $ | 1,500 | $ 3,900 | 1,300 | ||||||
Intrinsic value of options exercised | $ | $ 3,000 | $ 9,700 | $ 1,600 | ||||||
Weighted-average fair value of options granted (USD per share) | $ / shares | $ 4.43 | $ 7.05 | $ 3.87 | ||||||
Remaining weighted-average period | 2 years 2 months 12 days | ||||||||
Stock Option and Restricted Stock Unit Activity | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Performance-based stock appreciation units (in shares) | 1,000,000 | ||||||||
Weighted-average fair value granted (USD per share) | $ / shares | 4.72 | ||||||||
Number of days for stock price to be traded above mentioned price | 20 days | ||||||||
Minimum closing stock price (USD per share) | $ / shares | $ 15 | ||||||||
Share-based compensation expense (gain) | $ | $ 4,800 | ||||||||
Stock Option and Restricted Stock Unit Activity | Maximum | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Weighted-average fair value granted (USD per share) | $ / shares | $ 1.65 | ||||||||
Restricted stock units | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Shares outstanding (in shares) | 2,404,637 | 2,089,473 | |||||||
Vested (in shares) | 805,463 | ||||||||
Unrecognized stock-based compensation expense | $ | $ 15,300 | ||||||||
Remaining weighted-average period | 2 years 1 month 6 days | ||||||||
Performance-based stock appreciation units (in shares) | 1,386,790 | ||||||||
Weighted-average fair value granted (USD per share) | $ / shares | $ 7.86 | $ 12.33 | $ 7.46 | ||||||
Stock grants vested value | $ | $ 7,600 | $ 1,600 | $ 3,300 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Aggregate Intrinsic Value, Vested | $ | $ 6,400 | $ 2,800 | $ 4,300 | ||||||
Common stock withheld shares (in shares) | 126,999 | 49,838 | 95,227 | ||||||
Remitted cash to appropriate tax authorities | $ | $ 1,000 | $ 600 | $ 700 | ||||||
Stock Appreciation Units | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Options to purchase shares, outstanding (in shares) | 200,000 | ||||||||
Liability for settlement | $ | $ 800 | $ 2,000 | |||||||
Employee stock purchase plan | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Unrecognized stock-based compensation expense | $ | $ 800 | ||||||||
2004 Stock Option Plan | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Options to purchase shares, outstanding (in shares) | 481,725 | ||||||||
Shares available for future grant (in shares) | 0 | ||||||||
2007 Stock Appreciation Grants Plan | Stock Appreciation Units (SARs) | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Shares outstanding (in shares) | 49,824 | ||||||||
Vested (in shares) | 49,824 | ||||||||
2010 Equity Incentive Plan | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Shares available for future grant (in shares) | 909,805 | ||||||||
Shares outstanding (in shares) | 5,301,808 | ||||||||
Awards expiration period from date of grant | 10 years | ||||||||
Maximum aggregate number of shares of common stock that may be issued (in shares) | 8,000,000 | 865,420 | |||||||
Number of shares of common stock outstanding increase percentage | 3.50% | ||||||||
2010 Equity Incentive Plan | Minimum | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Exercise price, percentage of fair value of common stock on grant date | 100.00% | ||||||||
Options vesting period | 3 years | ||||||||
2010 Equity Incentive Plan | Maximum | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Options vesting period | 4 years | ||||||||
2010 Equity Incentive Plan | Nonqualified Stock Options | Minimum | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Exercise price, percentage of fair value of common stock on grant date | 85.00% | ||||||||
2010 ESPP | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Shares available for future grant (in shares) | 278,673 | ||||||||
Maximum aggregate number of shares of common stock that may be issued (in shares) | 600,000 | 342,568 | |||||||
Number of shares of common stock outstanding increase percentage | 3.50% | ||||||||
Offering period | 12 months | ||||||||
2011 Inducement Award Plan | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Shares available for future grant (in shares) | 49,331 | ||||||||
Shares outstanding (in shares) | 554,633 | ||||||||
Exercise price, percentage of fair value of common stock on grant date | 100.00% | ||||||||
Awards expiration period from date of grant | 10 years | ||||||||
Maximum aggregate number of shares of common stock that may be issued (in shares) | 750,000 | ||||||||
Authorized for issuance (in shares) | 100,000 | ||||||||
2014 Repricing Offer | Stock Appreciation Units (SARs) | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Shares issued under repricing offer (in shares) | 87,354 | ||||||||
2014 Repricing Offer | Stock Options and Stock Appreciation Rights | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Shares issued under repricing offer (in shares) | 2,373,692 | ||||||||
Unrecognized stock-based compensation expense | $ | $ 2,600 | $ 2,600 | |||||||
Incremental compensation cost | $ | $ 900 | ||||||||
Exercise price per share (USD per share) | $ / shares | $ 3.50 | ||||||||
Percentage of shares subject to repriced eligible stock | 50.00% | ||||||||
Number of monthly installments | installment | 12 | ||||||||
Remaining vesting term | 60 days | ||||||||
Perod prior to expiration date when repriced awards vested and become exercisable | 60 days | ||||||||
2014 Repricing Offer | Stock Options and Stock Appreciation Rights | Vesting In 12 Equal Monthly Installments | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Percentage of shares subject to repriced eligible stock | 50.00% | ||||||||
2014 Repricing Offer | Stock Options and Stock Appreciation Rights | 60th Day Prior to Expiration Date | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Percentage of shares subject to repriced eligible stock | 100.00% | ||||||||
2014 Repricing Offer | Employee stock options | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Shares issued under repricing offer (in shares) | 1,948,631 |
Stock-based compensation - Esti
Stock-based compensation - Estimated fair vale of stock-based awards (Details) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Employee stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted-average expected term (years) | 5 years 11 months 27 days | 5 years 9 months | 5 years 3 months 29 days |
Weighted-average volatility | 65.00% | 65.00% | 60.00% |
Risk-free interest rate Minimum | 2.02% | 1.01% | 1.37% |
Risk-free interest rate Maximum | 2.08% | 1.76% | 1.85% |
Expected dividends | 0.00% | 0.00% | 0.00% |
Stock Appreciation Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted-average expected term (years) | 2 years 3 months 18 days | 2 years 9 months 7 days | 3 years 6 months 15 days |
Weighted-average volatility | 69.00% | 61.00% | 62.00% |
Risk-free interest rate Minimum | 0.51% | 0.45% | 0.25% |
Risk-free interest rate Maximum | 1.62% | 1.47% | 1.57% |
Expected dividends | 0.00% | 0.00% | 0.00% |
Employee stock purchase plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted-average expected term (years) | 8 months 19 days | 8 months 23 days | 8 months 9 days |
Weighted-average volatility | 61.00% | 54.00% | 58.00% |
Risk-free interest rate Minimum | 0.91% | 0.39% | 0.03% |
Risk-free interest rate Maximum | 1.31% | 0.45% | 0.14% |
Expected dividends | 0.00% | 0.00% | 0.00% |
Stock-based compensation - Summ
Stock-based compensation - Summary of stock compensation expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Share based compensation | $ 8,206 | $ 17,076 | $ 7,763 |
Cost of goods sold | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Share based compensation | 1,098 | 3,130 | 1,335 |
Research and development | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Share based compensation | 2,491 | 4,760 | 2,049 |
Sales and marketing | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Share based compensation | 1,697 | 4,105 | 1,794 |
General and administrative | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Share based compensation | $ 2,920 | $ 5,081 | $ 2,585 |
Stock-based compensation - Stoc
Stock-based compensation - Stock Options and RSUs (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Employee stock options | |||
Shares Available for Grant | |||
Beginning Balance (in shares) | 768,046 | ||
Authorized for issuance (in shares) | 1,488,411 | ||
Granted (in shares) | (1,889,536) | ||
Cancelled/Forfeited (in shares) | (592,215) | ||
Ending Balance (in shares) | 959,136 | 768,046 | |
Number of Shares | |||
Beginning Balance (in shares) | 4,301,340 | ||
Granted (in shares) | 502,746 | ||
Exercised/Converted (in shares) | (665,393) | ||
Cancelled/Forfeited (in shares) | (205,164) | ||
Ending Balance (in shares) | 3,933,529 | 4,301,340 | |
Weighted Average Exercise Price | |||
Beginning Balance (USD per share) | $ 5.18 | ||
Granted (USD per share) | 7.37 | ||
Exercised/Converted (USD per share) | 3.73 | ||
Cancelled/Forfeited (USD per share) | 8.11 | ||
Ending Balance (USD per share) | $ 5.55 | $ 5.18 | |
Restricted stock units | |||
Number of Units | |||
Beginning Balance (in shares) | 2,089,473 | ||
Granted (in shares) | 1,386,790 | ||
Exercised/Converted (in shares) | (805,463) | ||
Cancelled/Forfeited (in shares) | (266,163) | ||
Ending Balance (in shares) | 2,404,637 | 2,089,473 | |
Weighted Average Exercise Price | |||
Beginning Balance (USD per share) | $ 10.15 | ||
Granted (USD per share) | 7.86 | $ 12.33 | $ 7.46 |
Exercised/Converted (USD per share) | 9.48 | ||
Cancelled/Forfeited (USD per share) | 10.42 | ||
Ending Balance (USD per share) | $ 9.02 | $ 10.15 |
Stock-based Compensation - Su90
Stock-based Compensation - Summary of Information about Stock Options Outstanding (Details) $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($)$ / sharesshares | |
Number of Shares | |
Vested and expected to vest (in shares) | shares | 3,830,959 |
Exercisable (in shares) | shares | 3,084,096 |
Weighted Average Exercise Price | |
Vested and expected to vest (USD per share) | $ / shares | $ 5.48 |
Exercisable (USD per share) | $ / shares | $ 4.78 |
Weighted Average Remaining Contractual Term (Years) | |
Vested and expected to vest | 5 years 9 months 29 days |
Exercisable | 5 years 29 days |
Aggregate Intrinsic Value (in Thousands) | |
Vested and expected to vest | $ | $ 6,919,879 |
Exercisable | $ | $ 6,706,040 |
Stock-based Compensation - Su91
Stock-based Compensation - Summary of Information about Restricted Stock Units Outstanding (Details) - Restricted stock units $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($)shares | |
Number of Shares | |
Vested and expected to vest (in shares) | shares | 2,098,888 |
Weighted Average Remaining Contractual Term (Years) | |
Vested and expected to vest | 1 year 3 months 4 days |
Aggregate Intrinsic Value | |
Vested and expected to vest | $ | $ 13,810,684 |
Stock-based Compensation - Su92
Stock-based Compensation - Summary of Company's Stock Appreciation Unit Activity (Details) - Stock Appreciation Units (SARs) | 12 Months Ended |
Dec. 31, 2017$ / sharesshares | |
Number of Units | |
Beginning Balance (in shares) | shares | 286,768 |
Exercised/Converted (in shares) | shares | (42,618) |
Cancelled/Forfeited (in shares) | shares | (4,326) |
Ending Balance (in shares) | shares | 239,824 |
Weighted-Average Exercise Price | |
Beginning Balance (USD per share) | $ / shares | $ 4.87 |
Exercised/Converted (USD per share) | $ / shares | 4.50 |
Cancelled/Forfeited (USD per share) | $ / shares | 4.24 |
Ending Balance (USD per share) | $ / shares | $ 4.95 |
Stock-based Compensation - Empl
Stock-based Compensation - Employee Stock Purchase Plan (Details) - Employee stock purchase plan $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($)shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Issuance of common stock under employee stock purchase plan (in shares) | shares | 349,175 |
Unrecognized stock-based compensation expense | $ | $ 0.8 |
Income taxes - Income (Loss) be
Income taxes - Income (Loss) before Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
U.S. operations | $ (52,725) | $ (10,217) | $ (7,212) |
Non-U.S. operations | 301 | 13,609 | 13,984 |
Income (loss) before income taxes | $ (52,424) | $ 3,392 | $ 6,772 |
Income taxes - Components of Pr
Income taxes - Components of Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Current | |||
Federal | $ (144) | $ (127) | $ (48) |
State | 3 | (13) | (8) |
Foreign | 363 | (3,925) | (3,725) |
Provision for income tax, current | 222 | (4,065) | (3,781) |
Deferred | |||
Federal | 4 | (24) | (22) |
State | 0 | 0 | 0 |
Foreign | (1,135) | 492 | 699 |
Total provision | $ (909) | $ (3,597) | $ (3,104) |
Income taxes - Difference in Pr
Income taxes - Difference in Provision for Income Taxes from Amount Obtained by Applying U.S. Federal Statutory Rate (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Federal statutory rate | 35.00% | 35.00% | 35.00% |
Tax at federal statutory rate | $ 18,354 | $ (1,185) | $ (2,378) |
State taxes, net of federal benefit | 2 | (8) | (8) |
Mandatory repatriation/Section 956 | (5,718) | (19) | (66) |
Nondeductible expenses | (67) | (727) | (135) |
Stock-based compensation | (314) | (877) | (465) |
Change in valuation allowance | 16,273 | (1,455) | (958) |
Research and development | 851 | 1,175 | 1,017 |
Foreign rate differences | (2,819) | (1,215) | (844) |
Foreign tax credit | 144 | 127 | 30 |
Change in prior year deferred balances | (28,262) | 920 | 417 |
Other | 647 | (333) | 286 |
Total provision | $ (909) | $ (3,597) | $ (3,104) |
Income taxes - Components of De
Income taxes - Components of Deferred Income Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred Tax Assets: | ||
Net operating loss carryforwards | $ 44,912 | $ 55,274 |
Federal and state credits | 26,170 | 23,372 |
Reserves, accruals and other | 9,698 | 14,423 |
Fixed assets and intangibles | 1,259 | 1,817 |
Total deferred tax assets | 82,039 | 94,886 |
Valuation allowance | (76,101) | (90,060) |
Total deferred tax assets, net of valuation allowance | 5,938 | 4,826 |
Less deferred tax liabilities: | ||
Acquired intangibles | (2,054) | (2,295) |
Property, plant and equipment | (3,338) | (949) |
Net deferred tax assets | 546 | 1,582 |
Reported as: | ||
Long term deferred tax assets, included within other long-term assets | 652 | 1,628 |
Deferred income tax liabilities | 106 | 46 |
Net deferred tax assets | $ 546 | $ 1,582 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Taxes [Line Items] | |||||
Effective Income Tax Rate Reconciliation, Prior Year Income Taxes, Amount | $ 28,262,000 | $ (920,000) | $ (417,000) | ||
Tax cuts and jobs act of 2017, incomplete accounting, change in tax rate, deferred tax asset, provisional income tax expense | $ 30,000,000 | ||||
(Decrease) increase in net valuation allowance | (14,000,000) | $ 1,100,000 | |||
Previously unrecognized excess tax benefits | $ 8,600,000 | ||||
Income tax statutory rate | 35.00% | 35.00% | 35.00% | ||
Gross unrecognized tax benefits | 25,539,000 | $ 25,539,000 | $ 23,606,000 | $ 20,686,000 | $ 18,372,000 |
Unrecognized tax benefits affecting effective tax rate if recognized | 200,000 | 200,000 | |||
Interest and income tax penalties | 0 | ||||
Federal | |||||
Income Taxes [Line Items] | |||||
Net operating loss carryforwards | 244,700,000 | 244,700,000 | |||
Research credit | 8,300,000 | 8,300,000 | |||
State | |||||
Income Taxes [Line Items] | |||||
Net operating loss carryforwards | 51,700,000 | 51,700,000 | |||
Research credit | 15,800,000 | 15,800,000 | |||
Foreign Tax Authority | |||||
Income Taxes [Line Items] | |||||
Research credit | $ 10,400,000 | $ 10,400,000 | |||
Benefits realized from reduced tax rate | $ 900,000 | $ 500,000 | |||
Foreign Tax Authority | Subsidiary in China | |||||
Income Taxes [Line Items] | |||||
Preferential enterprise income tax rate | 15.00% | ||||
Income tax statutory rate | 15.00% | ||||
Corporate effective income tax rate | 25.00% |
Income taxes - Reconciliation o
Income taxes - Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning Balance | $ 23,606 | $ 20,686 | $ 18,372 |
Gross increases for tax positions of current year | 1,933 | 2,920 | 2,314 |
Ending Balance | $ 25,539 | $ 23,606 | $ 20,686 |
Segment and Geographic Infor100
Segment and Geographic Information - Additional Information (Details) - segment | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting [Abstract] | |||
Number of reportable segments | 1 | 1 | 1 |
Segment and georgraphic informa
Segment and georgraphic information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenue | $ 76,871 | $ 71,121 | $ 73,214 | $ 71,688 | $ 109,837 | $ 103,312 | $ 99,129 | $ 99,145 | $ 292,894 | $ 411,423 | $ 339,439 |
Property, plant and equipment, net | 127,565 | 106,867 | 127,565 | 106,867 | |||||||
China | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 161,637 | 254,685 | 182,504 | ||||||||
Property, plant and equipment, net | 37,212 | 38,589 | 37,212 | 38,589 | |||||||
United States | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 41,538 | 67,807 | 77,867 | ||||||||
Property, plant and equipment, net | 42,243 | 31,101 | 42,243 | 31,101 | |||||||
Japan | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 8,586 | 12,037 | 12,713 | ||||||||
Property, plant and equipment, net | 43,826 | 31,784 | 43,826 | 31,784 | |||||||
Rest of world | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 81,133 | 76,894 | 66,355 | ||||||||
Property, plant and equipment, net | $ 4,284 | $ 5,393 | 4,284 | 5,393 | |||||||
High Speed Products | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 241,780 | 277,258 | 195,831 | ||||||||
Network Products and Solutions | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | $ 51,114 | $ 134,165 | $ 143,608 |
Selected Quarterly Financial In
Selected Quarterly Financial Information (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Selected Quarterly Financial Information [Abstract] | |||||||||||
Revenue | $ 76,871 | $ 71,121 | $ 73,214 | $ 71,688 | $ 109,837 | $ 103,312 | $ 99,129 | $ 99,145 | $ 292,894 | $ 411,423 | $ 339,439 |
Gross profit | 15,686 | 10,513 | 16,777 | 18,503 | 31,033 | 27,449 | 27,529 | 31,122 | 61,479 | 117,133 | 99,081 |
Net income (loss) | $ (14,283) | $ (18,187) | $ (9,341) | $ (11,522) | $ 1,996 | $ (7,187) | $ 2,676 | $ 2,310 | $ (53,333) | $ (205) | $ 3,668 |
Basic net income (loss) per share (USD per share) | $ (0.32) | $ (0.42) | $ (0.22) | $ (0.27) | $ 0.05 | $ (0.17) | $ 0.06 | $ 0.06 | $ (1.23) | $ 0 | $ 0.10 |
Diluted net income (loss) per share (USD per share) | $ (0.32) | $ (0.42) | $ (0.22) | $ (0.27) | $ 0.04 | $ (0.17) | $ 0.06 | $ 0.05 | $ (1.23) | $ 0 | $ 0.09 |
Weighted average shares used to compute basic net income (loss) (in shares) | 44,079 | 43,790 | 43,219 | 42,615 | 42,421 | 42,038 | 41,603 | 41,121 | 43,431 | 41,798 | 37,421 |
Weighted average shares used to compute diluted net (loss) income (in shares) | 44,079 | 43,790 | 43,219 | 42,615 | 45,767 | 42,038 | 44,320 | 43,648 | 43,431 | 41,798 | 38,686 |
Subsequent Events (Details)
Subsequent Events (Details) $ in Millions | 1 Months Ended | ||||
Feb. 28, 2018USD ($) | Jan. 31, 2018USD ($) | Jan. 31, 2018JPY (¥) | Jul. 31, 2017USD ($) | Jan. 31, 2018JPY (¥) | |
Term Loan C | Mitsubishi Bank and The Tamanashi Chou Ban, Ltd. | Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Line of credit maximum borrowing capacity | $ 7.8 | ¥ 850,000,000 | |||
Term Loan A | Mitsubishi Bank | Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Repayments of lines of credit | ¥ | ¥ 500,000,000 | ||||
Notes Payable to Banks | Note payable to CITIC Bank | |||||
Subsequent Event [Line Items] | |||||
Debt instrument, basis spread | 2.55% | ||||
Borrowing on line of credit | $ 17 | ||||
Notes Payable to Banks | Note payable to CITIC Bank | Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Repayments of lines of credit | $ 17 | ||||
Borrowing on line of credit | $ 17 | ||||
Tokyo Interbank Offered Rate (TIBOR) | Term Loan C | Mitsubishi Bank and The Tamanashi Chou Ban, Ltd. | Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Debt instrument, basis spread | 1.00% | 1.00% |