Cover Page
Cover Page - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 21, 2020 | Jun. 30, 2019 | |
Cover page. | |||
Document Type | 10-K/A | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Transition Report | false | ||
Entity File Number | 001-35061 | ||
Entity Registrant Name | NeoPhotonics Corp | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 94-3253730 | ||
Entity Address, Address Line One | 3081 Zanker Road | ||
Entity Address, City or Town | San Jose | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 95134 | ||
City Area Code | 408 | ||
Local Phone Number | 232-9200 | ||
Title of 12(b) Security | Common Stock, par value $0.0025 per share | ||
Trading Symbol | NPTN | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 193,407 | ||
Entity Common Stock, Shares Outstanding | 48,636,526 | ||
Documents Incorporated by Reference | The Registrant has incorporated by reference into Part III of this Annual Report on Form 10-K portions of its Proxy Statement for its 2019 Annual Meeting of Stockholders to be filed pursuant to Regulation 14A. The Proxy Statement will be filed within 120 days of Registrant’s fiscal year ended December 31, 2019. | ||
Entity Central Index Key | 0001227025 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | true | ||
Amendment Description | NeoPhotonics Corporation and its subsidiaries (the "Company", "we", or "our") is filing this Amendment No. 1 on Form 10-K/A (the “Amendment”) to amend our Annual Report on Form 10-K (the “Original Filing”) for the year ended December 31, 2019 filed with the Securities and Exchange Commission (“the SEC”) on February 27, 2020. We are filing this Amendment solely to include the conformed signature of Deloitte & Touche LLP (“Deloitte”) for the Report of Independent Registered Public Accounting Firm required by Item 8, Part II and for the Report of Independent Registered Public Accounting Firm required by Item 9A, Part II (collectively, the “Reports”). The Original Filing inadvertently omitted Deloitte’s conformed signatures for the Reports. In connection with the filing of this Amendment and pursuant to the rules of the SEC, we are including with this Amendment certain new certifications by our principal executive officer and principal financial officer. Accordingly, Item 15 of Part IV has also been amended to reflect the new certifications. Other than with respect to the foregoing, this Amendment does not modify or update in any way the disclosures made in the Original Filing, including the disclosures contained in Part I, Part II and Part III of the Original Filing. This Amendment speaks as of the date of the Original Filing and does not reflect events that may have occurred subsequent to the filing of the Original Filing. Accordingly, this Amendment should be read in conjunction with the filings that we have made with the SEC subsequent to the date on which we filed the Original Filing, together with any amendments to those filings. |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 70,467 | $ 58,185 |
Short-term investments | 7,638 | 7,481 |
Restricted cash | 10,972 | 11,053 |
Accounts receivable, net of allowance for doubtful accounts | 68,890 | 74,751 |
Inventories | 46,930 | 52,159 |
Assets held for sale | 0 | 2,971 |
Prepaid expenses and other current assets | 25,851 | 26,605 |
Total current assets | 230,748 | 233,205 |
Property, plant and equipment, net | 81,133 | 100,090 |
Operating lease right-of-use assets | 15,603 | |
Purchased intangible assets, net | 2,151 | 3,018 |
Goodwill | 1,115 | 1,115 |
Other long-term assets | 3,929 | 3,148 |
Total assets | 334,679 | 340,576 |
Current liabilities: | ||
Accounts payable | 58,554 | 58,403 |
Notes payable and short-term borrowing | 0 | 4,795 |
Current portion of long-term debt | 3,044 | 2,897 |
Accrued and other current liabilities | 47,481 | 50,288 |
Total current liabilities | 109,079 | 116,383 |
Long-term debt, net of current portion | 39,237 | 50,454 |
Operating lease liabilities, non-current | 16,543 | |
Other noncurrent liabilities | 9,614 | 13,499 |
Total liabilities | 174,473 | 180,336 |
Commitments and contingencies (Note 14) | ||
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, 100,000 shares authorized, At December 31, 2019, 48,526 shares issued and outstanding; at December 31, 2018, 46,378 shares issued and outstanding | 121 | 116 |
Additional paid-in capital | 582,504 | 564,722 |
Accumulated other comprehensive loss | (7,871) | (7,126) |
Accumulated deficit | (414,548) | (397,472) |
Total stockholders’ equity | 160,206 | 160,240 |
Total liabilities and stockholders’ equity | $ 334,679 | $ 340,576 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2019 | Dec. 31, 2018 |
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) | 48,526,000 | 46,378,000 |
Common stock, shares outstanding (in shares) | 48,526,000 | 46,378,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement [Abstract] | |||
Revenue | $ 356,804 | $ 322,540 | $ 292,894 |
Cost of goods sold | 267,991 | 256,367 | 231,415 |
Gross profit | 88,813 | 66,173 | 61,479 |
Operating expenses: | |||
Research and development | 57,634 | 53,818 | 58,287 |
Sales and marketing | 16,088 | 16,728 | 17,760 |
General and administrative | 29,759 | 30,403 | 34,453 |
Amortization of purchased intangible assets | 119 | 475 | 472 |
Asset sale related costs | 397 | 427 | 130 |
Restructuring charges | 261 | 3,135 | 3,934 |
Litigation settlement | 0 | 2,645 | 0 |
Loss (gain) on asset sale | (903) | 200 | (2,193) |
Total operating expenses | 103,355 | 107,831 | 112,843 |
Loss from operations | (14,542) | (41,658) | (51,364) |
Interest income | 376 | 397 | 198 |
Interest expense | (1,919) | (2,493) | (1,362) |
Other income, net | 642 | 1,446 | 104 |
Total interest and other income (expense), net | (901) | (650) | (1,060) |
Loss before income taxes | (15,443) | (42,308) | (52,424) |
Provision for income taxes | (1,633) | (1,329) | (909) |
Net loss | $ (17,076) | $ (43,637) | $ (53,333) |
Basic and diluted net loss per share (USD per share) | $ (0.36) | $ (0.97) | $ (1.23) |
Weighted average shares used to compute basic and diluted net loss per share (in shares) | 47,304 | 45,144 | 43,431 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Net loss | $ (17,076) | $ (43,637) | $ (53,333) |
Other comprehensive income (loss): | |||
Foreign currency translation adjustments, net of zero tax | (745) | (7,464) | 8,803 |
Unrealized gain on available-for-sale securities, net of zero tax | 0 | 1 | 17 |
Defined benefit pension plans: | |||
Loss arising during the period | 0 | (95) | (32) |
Tax | 0 | 34 | 11 |
Total other comprehensive income (loss) | (745) | (7,524) | 8,799 |
Comprehensive loss | $ (17,821) | $ (51,161) | $ (44,534) |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Loss (Parenthetical) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
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 ($) shares in Thousands, $ in Thousands | Total | Common stock | Additional paid-in capital | Accumulated other comprehensive income (loss) | Accumulated deficit |
Beginning balance (in shares) at Dec. 31, 2016 | 42,526 | ||||
Beginning balance at Dec. 31, 2016 | $ 225,405 | $ 106 | $ 532,378 | $ (8,401) | $ (298,678) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Comprehensive income (loss) | (44,534) | 8,799 | (53,333) | ||
Issuance of common stock upon exercise of stock options (in shares) | 665 | ||||
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 | ||||
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 | ||||
Issuance of common stock for vested restricted stock units | 0 | $ 2 | (2) | ||
Tax withholding related to vesting of restricted stock units (in shares) | (127) | ||||
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 | ||||
Ending balance at Dec. 31, 2017 | 194,451 | $ 111 | 545,953 | 398 | (352,011) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Impact of adoption of new accounting standard ASU 2016-16 | (1,824) | (1,824) | |||
Comprehensive income (loss) | (51,161) | (7,524) | (43,637) | ||
Issuance of common stock upon exercise of stock options (in shares) | 779 | ||||
Issuance of common stock upon exercise of stock options | 3,422 | $ 2 | 3,420 | ||
Issuance of common stock under employee stock purchase plan (in shares) | 404 | ||||
Issuance of common stock under employee stock purchase plan | 2,191 | $ 1 | 2,190 | ||
Issuance of common stock for vested restricted stock units (in shares) | 1,124 | ||||
Issuance of common stock for vested restricted stock units | 0 | $ 2 | (2) | ||
Tax withholding related to vesting of restricted stock units (in shares) | (148) | ||||
Tax withholding related to vesting of restricted stock units | (954) | (954) | |||
Stock-based compensation costs | 14,115 | 14,115 | |||
Ending Balance (in shares) at Dec. 31, 2018 | 46,378 | ||||
Ending balance at Dec. 31, 2018 | 160,240 | $ 116 | 564,722 | (7,126) | (397,472) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Comprehensive income (loss) | (17,821) | (745) | (17,076) | ||
Issuance of common stock in exchange for research and development services, net of issuance costs of $46 (in shares) | 442 | ||||
Issuance of common stock in exchange for research and development services, net of issuance costs of $46 | 2,454 | $ 1 | 2,453 | ||
Issuance of common stock upon exercise of stock options (in shares) | 486 | ||||
Issuance of common stock upon exercise of stock options | 1,893 | $ 1 | 1,892 | ||
Issuance of common stock under employee stock purchase plan (in shares) | 357 | ||||
Issuance of common stock under employee stock purchase plan | 1,953 | $ 1 | 1,952 | ||
Issuance of common stock for vested restricted stock units (in shares) | 1,018 | ||||
Issuance of common stock for vested restricted stock units | 0 | $ 2 | (2) | ||
Tax withholding related to vesting of restricted stock units (in shares) | (155) | ||||
Tax withholding related to vesting of restricted stock units | (733) | (733) | |||
Stock-based compensation costs | 12,220 | 12,220 | |||
Ending Balance (in shares) at Dec. 31, 2019 | 48,526 | ||||
Ending balance at Dec. 31, 2019 | $ 160,206 | $ 121 | $ 582,504 | $ (7,871) | $ (414,548) |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parenthetical) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Statement of Stockholders' Equity [Abstract] | |
Issuance costs | $ 46 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities | |||
Net loss | $ (17,076) | $ (43,637) | $ (53,333) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 30,788 | 31,105 | 28,350 |
Stock-based compensation expense | 12,456 | 14,142 | 8,206 |
Deferred taxes | (287) | (328) | 792 |
Amortization of investment, debt and other | 414 | 438 | 247 |
Loss (gain) on disposal of property and equipment | (872) | 1,322 | (1,746) |
Amortization of operating lease right-of-use assets | 1,774 | 0 | 0 |
Loss (gain) on foreign currency hedges | 0 | 2,220 | (2,104) |
Allowance for doubtful accounts | (13) | 61 | 577 |
Write-down of inventories | 7,847 | 6,133 | 8,349 |
Foreign currency remeasurement and other, net | (910) | (3,944) | 2,583 |
Issuance of common stock in exchange for research and development services | 2,500 | 0 | 0 |
Asset impairment charges | 0 | 0 | 324 |
Change in assets and liabilities: | |||
Accounts receivable | 5,838 | (7,874) | 13,166 |
Inventories | (2,891) | 7,368 | (22,347) |
Prepaid expenses and other assets | 429 | 8,162 | (11,409) |
Accounts payable | (41) | (1,411) | (10,874) |
Accrued and other liabilities | (5,269) | 5,838 | 6,452 |
Net cash provided by (used in) operating activities | 34,687 | 19,595 | (32,767) |
Cash flows from investing activities | |||
Purchase of property, plant and equipment | (9,532) | (14,867) | (47,409) |
Proceeds from sale of property, plant and equipment and other assets | 2,242 | 32 | 21,809 |
Purchase of marketable securities | (157) | (920) | (52,062) |
Proceeds from sale of marketable securities | 0 | 5,000 | 52,272 |
Proceeds from maturity of marketable securities | 0 | 750 | 6,458 |
Settlement of foreign currency hedges | 0 | (1,776) | 1,618 |
Net cash used in investing activities | (7,447) | (11,781) | (17,314) |
Cash flows from financing activities | |||
Proceeds from exercise of stock options and issuance of stock under ESPP | 3,846 | 5,614 | 4,893 |
Offering costs | (46) | 0 | 0 |
Tax withholding on restricted stock units | (733) | (954) | (998) |
Payments for public stock offering, net of offering costs | 0 | 0 | (117) |
Proceeds from bank loans | 5,000 | 34,305 | 112,834 |
Repayment of bank loans | (18,084) | (63,040) | (68,492) |
Proceeds from issuance of notes payable | 0 | 7,137 | 6,621 |
Repayment of finance lease liabilities | (87) | 0 | 0 |
Repayment of notes payable | (4,774) | (3,732) | (11,639) |
Proceeds from government grants | 0 | 1,210 | 0 |
Net cash (used in) provided by financing activities | (14,878) | (19,460) | 43,102 |
Effect of exchange rates on cash, cash equivalents and restricted cash | (161) | (680) | 1,958 |
Net increase (decrease) in cash, cash equivalents and restricted cash | 12,201 | (12,326) | (5,021) |
Cash, cash equivalents and restricted cash at the beginning of the period | 69,238 | 81,564 | 86,585 |
Cash, cash equivalents and restricted cash at the end of the period | 81,439 | 69,238 | 81,564 |
Supplemental disclosure of cash flow information: | |||
Cash paid for interest | 278 | 1,600 | 732 |
Net cash paid (received) for income taxes | 1,289 | (1,383) | 5,388 |
Supplemental disclosure of noncash investing and financing activities: | |||
Neo Russia penalty settlement | 2,000 | 0 | 0 |
Debt interest rolled into principal | 1,368 | 0 | 0 |
Government approved expenditures incurred after receipt of government funds | 579 | 0 | 0 |
Decrease (increase) in unpaid property, plant and equipment | (374) | 8,548 | 6,072 |
Capital lease | 0 | 362 | 0 |
Asset retirement obligation | $ 0 | $ 0 | $ 2,146 |
The Company and basis of presen
The Company and basis of presentation | 12 Months Ended |
Dec. 31, 2019 | |
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. |
Summary of significant accounti
Summary of significant accounting policies | 12 Months Ended |
Dec. 31, 2019 | |
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. 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. 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. Customers accounting for more than 10% of our total revenue and revenue from our top five customers for the years ended December 31, 2019, 2018 and 2017 were as follows: Years Ended December 31, 2019 2018 2017 Percent of revenue from customers accounting for 10% or more of total revenue: Huawei Technologies Co., Ltd 41 % 46 % 40 % Ciena Corporation 29 % 24 % 16 % Percent of revenue from top five customers 84 % 87 % 78 % As of December 31, 2019, two customers accounted for approximately 37% and 19% , respectively, of the Company’s total accounts receivable. As of December 31, 2018, two customers accounted for 35% and 17% 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), government grants received in advance and cash balances temporarily restricted for regular business operations until a legal dispute is resolved (see Note 14). 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, 2019 and 2018, the amount of restricted cash was $11.0 million and $11.1 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, the Company reviews trading activity and pricing for these investments as of the measurement date. When sufficient quoted pricing for identical securities is not available, the Company uses 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 nine 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 The Company allocates 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 as well as 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 2019, 2018 and 2017. 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 incurred asset impairment charges of $1.0 million and $0.4 million in restructuring charges in 2018 and 2017, respectively. There were no asset impairment charges in 2019 (see Note 10). Leases The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use ("ROU") assets, other current liabilities and operating lease liabilities on the Company's consolidated balance sheet. Finance leases are included in property, plant and equipment, current portion of long-term debt and long-term debt, net of current portion on the consolidated balance sheets. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. As most of our leases do not provide an implicit rate, the Company uses an estimate of its incremental borrowing rate based on observed market data and other information available at the lease commencement date. The operating lease ROU assets also include any lease payments made and exclude lease incentives. Lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise such options. The Company does not record leases on the consolidated balance sheet with a term of one year or less. The Company does not separate lease and non-lease components but rather account for each separate component as a single lease component for all underlying classes of assets. Variable lease payments are expensed as incurred and are not included within the operating lease ROU asset and lease liability calculation. Variable lease payments primarily include reimbursements of costs incurred by lessors for common area maintenance and utilities. Lease expense for minimum operating lease payments is recognized on a straight-line basis over the lease term. Revenue recognition See Note 3. 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 $2.2 million loss in 2018 relating to its foreign currency contracts within other income, net. Net foreign exchange gain (loss) was $0.2 million , $1.4 million , and $(0.5) million in 2019, 2018, and 2017, respectively. These gains and losses were recorded as other income, 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. During the six months ended December 31, 2018, the Company temporarily discontinued entering into forward exchange contracts. This may increase the risks to us arising from the short-term impact of foreign currency fluctuations. 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 In February 2016, the Financial Accounting Standards Board ("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 using the modified retrospective transition method. In July 2018, the FASB issued ASU 2018- 11, Leases (ASC 842): Targeted Improvements. The update provides an optional transition method that allows entities to change the date of initial application to the beginning of the period of adoption. The Company adopted the guidance on January 1, 2019 under the optional transition method and the consolidated balance sheet as of December 31, 2018 continue to be reported under the previous lease accounting standard, ASC 840. Certain optional practical expedients are allowed. The Company elected the package of practical expedients permitted under the transition guidance, which allowed the Company to carryforward historical lease classification, assessment on whether a contract was or contains a lease, and initial direct costs for any leases that existed prior to January 1, 2019. The Company also elected to combine lease and non-lease components and to keep leases with an initial term of 12 months or less off the consolidated balance sheet. As a result of adopting Topic 842 on January 1, 2019, the Company recognized operating lease right-of-use assets of $17.3 million and corresponding operating lease liabilities of $20.8 million from existing leases on the Company's consolidated balance sheet. Refer to Note 12 for further details. The adoption of Topic 842 had no impact on the Company's consolidated statement of operations or consolidated statement of cash flows. Recent accounting standards update not yet effective 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 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 adoption of this standard is not expected to have a material impact on the Company’s consolidated financial statements and related disclosures. |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Adoption of ASC Topic 606, “Revenue from Contracts with Customers” On January 1, 2018, the Company adopted Topic 606 using the full retrospective method which required it to restate each prior reporting period presented. The adoption did not have a material impact on the Company's consolidated financial statements and as a result, no changes were made to prior reporting periods presented. Product revenue The Company develops, manufactures and sells optoelectronic products that transmit, receive, modify and switch high speed digital optical signals for communications networks. Revenue is derived primarily from the sale of hardware products. The Company sells its products worldwide, primarily to leading network equipment manufacturers. Revenue recognition Revenue is recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration the Company expects to receive in exchange for those products or services. The Company generally bears all costs, risk of loss or damage and retains title to the goods up to the point of transfer of control of promised products to customer. Revenue related to the sale of consignment inventories at customer vendor managed locations is not recognized until the products are pulled from consignment inventories 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. Nature of products Revenue from sale of hardware products is recognized upon transfer of control to the customer. The performance obligation for the sale of hardware products is satisfied at a point in time. The Company has aligned its products in two groups - High Speed Products and Network Products and Solutions. The following presents revenue by product group (in thousands): Years Ended December 31, 2019 2018 2017 High Speed Products $ 323,804 $ 275,803 $ 241,780 Network Products and Solutions 33,000 46,737 51,114 Total revenue $ 356,804 $ 322,540 $ 292,894 The following table presents the Company's revenue information by geographical region. Revenue is classified based on the ship to location requested by 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, 2019 2018 2017 China $ 186,157 $ 187,277 $ 161,637 Americas 82,741 70,906 52,973 Rest of world 87,906 64,357 78,284 Total revenue $ 356,804 $ 322,540 $ 292,894 Certain prior period amounts have been reclassified to conform to the current period presentation. Deferred revenue The Company records deferred revenue when cash payments are received or due in advance of the Company's performance. Refer to Note 8 for disclosure of deferred revenue balances. There were no increase in deferred revenue balances in 2019. The Company has $1.1 million of deferred revenue as of December 31, 2018 which was recognized as a revenue in 2019. The increase in the deferred revenue balances during 2018 was immaterial, offset by approximately $0.9 million of revenue recognized during 2018 included in the deferred revenue balances as of December 31, 2017. Contract assets Contract assets are rights to consideration in exchange for goods or services that the Company has transferred to a customer when such right is conditional on something other than the passage of time. The balance of contract assets are excluding any amounts presented as an accounts receivables. There were no contract assets balances as of December 31, 2019 and December 31 2018. Refund liabilities The Company recognizes a refund liability if the Company receives consideration from a customer and expects to refund some or all of that consideration to the customer. The balance of refund liabilities as of December 31, 2019 and December 31, 2018 was immaterial. |
Cash, cash equivalents, short-t
Cash, cash equivalents, short-term investments and restricted cash | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 and 2018 (in thousands): December 31, 2019 December 31, 2018 Cash and cash equivalents: Cash $ 70,467 $ 58,185 Cash equivalents — — Cash and cash equivalents $ 70,467 $ 58,185 Short-term investments $ 7,638 $ 7,481 Restricted cash $ 10,972 $ 11,053 December 31, 2019 December 31, 2018 Cash and cash equivalents $ 70,467 $ 58,185 Restricted cash 10,972 11,053 Total cash, cash equivalents and restricted cash shown in the consolidated statement of cash flows $ 81,439 $ 69,238 The following table summarizes the Company’s unrealized gains and losses related to the short-term investments in marketable securities designated as available-for-sale (in thousands): As of December 31, 2019 As of December 31, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Loss Fair Value Amortized Cost Gross Unrealized Gains Gross Unrealized Loss Fair Value Marketable securities: Money market funds $ 7,638 $ — $ — $ 7,638 $ 7,481 $ — $ — $ 7,481 Total $ 7,638 $ — $ — $ 7,638 $ 7,481 $ — $ — $ 7,481 Reported as: Short-term investments $ 7,638 $ — $ — $ 7,638 $ 7,481 $ — $ — $ 7,481 Total $ 7,638 $ — $ — $ 7,638 $ 7,481 $ — $ — $ 7,481 As of December 31, 2019 and 2018, maturities of marketable securities were as follows (in thousands): December 31, 2019 December 31, 2018 Less than 1 year $ 7,638 $ 7,481 Due in 1 to 2 years — — Due in 3 to 5 years — — Total $ 7,638 $ 7,481 Realized gains and losses on the sale of marketable securities during the years ended December 31, 2019, 2018 and 2017 were immaterial. The Company did no t recognize any impairment losses on its marketable securities during the years ended December 31, 2019, 2018 or 2017. As of December 31, 2019, the Company did no |
Fair value measurements
Fair value measurements | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 December 31, 2018 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Cash equivalents and short-term investments: Money market funds $ 7,638 $ — $ — $ 7,638 $ 7,481 $ — $ — $ 7,481 Total $ 7,638 $ — $ — $ 7,638 $ 7,481 $ — $ — $ 7,481 Mutual funds held in Rabbi Trust, recorded in other long-term assets $ 616 $ — $ — $ 616 $ 465 $ — $ — $ 465 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, 2019 and 2018. 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, 2019 and 2018. 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, 2018 Level 1 Level 2 Level 3 Total Rusnano payment derivative $ — $ — $ 2,000 $ 2,000 Total $ — $ — $ 2,000 $ 2,000 There were no liabilities that are measured at fair value on a recurring basis as of December 31, 2019. The fair value of the Rusnano payment derivative is based on the Company’s estimate (see Note 14). 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 There were no assets and liabilities measured on a nonrecurring basis as of December 31, 2019. In 2018, the Company reclassified $2.5 million of property, plant and equipment within assets held for sale. The estimated fair value less direct costs of sale approximates the related carrying value of these assets as of December 31, 2018 (see Note 9). In 2018, the Company wrote-off $1.0 million of property, plant and equipment within operating expenses. These assets were measured at fair value which is zero due to events or circumstances the Company identified as having significant impact on their fair value during 2018. 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. |
Net loss per share
Net loss per share | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Net loss per share | Net loss per share The following table sets forth the computation of the basic and diluted net loss per share attributable to NeoPhotonics Corporation common stockholders for the periods indicated (in thousands, except per share amounts): Years Ended December 31, 2019 2018 2017 Numerator: Net loss $ (17,076 ) $ (43,637 ) $ (53,333 ) Denominator: Weighted average shares used to compute per share amount: Basic 47,304 45,144 43,431 Dilutive effect of equity awards — — — Diluted 47,304 45,144 43,431 Basic net loss per share $ (0.36 ) $ (0.97 ) $ (1.23 ) Diluted net loss per share $ (0.36 ) $ (0.97 ) $ (1.23 ) 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 loss per share, as their effect would have been antidilutive (in thousands): December 31, 2019 2018 2017 Employee stock options 2,599 3,203 3,934 Restricted stock units 3,171 2,486 2,405 Market-based restricted stock units 641 695 — Employee stock purchase plan 298 414 421 6,709 6,798 6,760 |
Purchased intangible assets
Purchased intangible assets | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Purchased intangible assets | Purchased intangible assets Purchased intangible assets consist of the following (in thousands): December 31, 2019 December 31, 2018 Gross Assets Accumulated Amortization Net Assets Gross Assets Accumulated Amortization Net Assets Technology and patents $ 36,880 $ (35,555 ) $ 1,325 $ 37,029 $ (34,995 ) $ 2,034 Customer relationships 15,089 (15,089 ) — 15,146 (15,026 ) 120 Leasehold interest 1,222 (396 ) 826 1,238 (374 ) 864 $ 53,191 $ (51,040 ) $ 2,151 $ 53,413 $ (50,395 ) $ 3,018 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, 2019 2018 2017 Cost of goods sold $ 737 $ 756 $ 869 Operating expenses 119 475 472 Total $ 856 $ 1,231 $ 1,341 The estimated future amortization expense of purchased intangible assets as of December 31, 2019, is as follows (in thousands): 2020 $ 736 2021 644 2022 27 2023 27 2024 27 Thereafter 690 $ 2,151 |
Balance sheet components
Balance sheet components | 12 Months Ended |
Dec. 31, 2019 | |
Balance Sheet Related Disclosures [Abstract] | |
Balance sheet components | Balance sheet components Restricted Cash Restricted cash was as follows (in thousands): December 31, 2019 2018 Restricted in connection with notes payable and short-term borrowing (see Note 11) $ 2,559 $ 2,589 Restricted in connection with asset purchase agreement (see Note 9) 1,999 2,019 Restricted in connection with a current legal dispute with APAT OE (See Note 9) 5,989 5,156 Restricted in connection with government grants received in advance 425 1,289 Total restricted cash $ 10,972 $ 11,053 Reported as: Restricted cash $ 10,972 $ 11,053 Accounts receivable, net Accounts receivable, net were as follows (in thousands): December 31, 2019 2018 Accounts receivable $ 68,988 $ 74,343 Trade notes receivable 156 672 Allowance for doubtful accounts (254 ) (264 ) $ 68,890 $ 74,751 The table below summarizes the movement in the Company’s allowance for doubtful accounts (in thousands): Balance at December 31, 2016 $ (425 ) Provision for bad debt, net (577 ) Write-offs, net of recoveries 376 Balance at December 31, 2017 (626 ) Reversal of provision for bad debt, net 428 Write-offs, net of recoveries (66 ) Balance at December 31, 2018 (264 ) Reversal of provision for bad debt, net 15 Write-offs, net of recoveries (5 ) Balance at December 31, 2019 $ (254 ) Inventories Inventories were as follows (in thousands): December 31, 2019 2018 Raw materials $ 19,350 $ 27,806 Work in process 12,262 13,044 Finished goods (1) 15,318 11,309 $ 46,930 $ 52,159 (1) Included in finished goods was $1.6 million and $5.6 million of inventory at customer vendor managed inventory locations at December 31, 2019 and 2018 , respectively. Prepaid expenses and other current assets Prepaid expenses and other current assets were as follows (in thousands): December 31, 2019 2018 Prepaid taxes and taxes receivable $ 6,979 $ 5,461 Transition services agreement receivable (see Note 9) 11,861 11,999 Deposits and other prepaid expenses 2,512 3,020 Other receivable 4,499 6,125 $ 25,851 $ 26,605 Property, plant and equipment, net Property, plant and equipment, net were as follows (in thousands): December 31, 2019 2018 Land $ 3,197 $ 3,157 Buildings 23,624 23,379 Machinery and equipment 181,596 187,746 Furniture, fixtures, software and office equipment 10,736 10,201 Leasehold improvements 22,058 22,000 241,211 246,483 Less: Accumulated depreciation (160,078 ) (146,393 ) $ 81,133 $ 100,090 Depreciation expense was $27.7 million , $29.9 million and $27.0 million for the years ended December 31, 2019 , 2018 and 2017 , 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, 2019, 2018 and 2017 was $1.9 million , $1.5 million and $10.0 million , respectively. Accrued and other current liabilities Accrued and other current liabilities were as follows (in thousands): December 31, 2019 2018 Employee-related $ 17,877 $ 14,899 Transition services agreement payables (see Note 9) 11,765 11,769 Asset sale related contingent liabilities (see Note 9) 6,664 6,751 Operating lease liabilities, current 2,086 — Income and other taxes payable 2,036 1,580 Deferred revenue, current — 1,114 Accrued warranty 712 672 Rusnano payment derivative — 2,000 Accrued litigation settlement — 2,645 Other accrued expenses 6,341 8,858 $ 47,481 $ 50,288 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, 2019 2018 2017 Beginning balance $ 672 $ 1,334 $ 678 Warranty accruals 782 399 1,263 Settlements (742 ) (1,061 ) (607 ) Ending balance $ 712 $ 672 $ 1,334 Other noncurrent liabilities Other noncurrent liabilities were as follows (in thousands): December 31, 2019 2018 Pension and other employee-related $ 4,125 $ 4,529 Deferred rent — 3,058 Government grant 1,380 2,108 Deferred income tax liabilities 528 — Capital lease obligation — 282 *Asset retirement obligations 3,529 3,391 Other 52 131 $ 9,614 $ 13,499 *Asset retirement obligations are legal obligations associated with the retirement of long-lived assets pertaining to leasehold improvements. In 2019 accretion related to the asset retirement obligations was $0.2 million . |
Asset sale
Asset sale | 12 Months Ended |
Dec. 31, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Asset sale | Asset sale NeoRussia In December 2018, the Company entered into an agreement with Joint Stock Company Rusnano, a related party, for Joint Stock Company Rusnano group to purchase the 100% interest in the operations of NeoPhotonics Corporation, LLC, the Company's manufacturing operations in Russia. In 2018, the Company recorded additional restructuring expense of $1.6 million related to these operations, bringing the total amount accrued for the Rusnano payment derivative to $2.0 million . As of December 31, 2018, the Company had recorded assets with a carrying value of $3.0 million as held for sale. The balance for liabilities held for sale as of December 31, 2018 was immaterial. In April 2019, the Company completed the sale of 100% interest in the operations of NeoPhotonics Corporation, LLC, to Joint Stock Company Rusnano, a related party. In connection with the sale, the Company received $2.0 million in cash, settled the $2.0 million exit fee and recognized a gain on asset sale of $0.9 million within operating expenses during the 2019. APAT 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 Company recognized a $2.2 million gain on the sale of assets within operating loss in 2017. The receivable and payable balances related to the transition service arrangement were $11.9 million and $11.8 million , respectively, as of December 31, 2019. As of December 31, 2019, the Company has a reserve of $6.7 million within accrued and other current liabilities for warranty claims. |
Restructuring
Restructuring | 12 Months Ended |
Dec. 31, 2019 | |
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 $0.3 million in restructuring charges within operating expenses in 2019. The Company recorded $0.2 million and $3.1 million in restructuring charges within cost of goods sold and operating expenses in 2018, 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. Employee Severance Facilities Consolidation Others Total Restructuring obligations December 31, 2018 $ 436 $ 769 $ 1,611 $ 2,816 Charges 88 — 173 261 Cash payments (524 ) (149 ) (173 ) (846 ) *Non-cash settlements and other — (620 ) (1,611 ) (2,231 ) Restructuring obligations December 31, 2019 $ — $ — $ — $ — *Includes reclassification of the operating lease liability of $0.6 million and $1.6 million related to the NeoRussia penalty settlement. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 December 31, 2018 Carrying Amount Interest Rate Carrying Amount Interest Rate Notes payable to suppliers $ — $ 4,795 Total notes payable and short-term borrowing $ — $ 4,795 Long-term debt, current and non-current: Borrowing under Wells Fargo Credit Facility $ 27,329 3.72 % $ 35,961 4.41 % Mitsubishi Bank loans 9,255 1.04%-1.44% 11,094 1.05%-1.45% Mitsubishi Bank and Yamanashi Chou Bank loan 5,868 1.07 % 6,898 1.10 % Finance lease liability 275 — Unaccreted discount and issuance costs (446 ) (602 ) Total long-term debt, net of unaccreted discount and issuance costs $ 42,281 $ 53,351 Reported as: Current portion of long-term debt $ 3,044 $ 2,897 Long-term debt, net of current portion 39,237 50,454 Total long-term debt, net of unaccreted discount and issuance costs $ 42,281 $ 53,351 The effective interest rates of the debt in the table above approximated their stated interest rates. Notes payable and short-term borrowing 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, 2019, the Company’s subsidiary in China had two line of credit facilities with the following banking institutions: • Under the first line of credit facility with Shanghai Pudong Development Bank, the Company can borrow up to RMB 120.0 million ( $17.2 million ) for short-term loans at varying interest rates, or up to approximately RMB 240.0 million ( $34.4 million ) for bank acceptance drafts (with up to 50% compensating balance requirement). This line of credit facility expires in November 2021. In November 2017, the Company borrowed $17.0 million under this line which bears interest at 4.1% , which was repaid in May 2018. • Under the second line of credit facility with Shanghai Pudong Development Bank, which expires in November 2021 , the Company can borrow up to RMB 30.0 million ( $4.3 million ) for short-term loans at varying interest rates, or up to approximately RMB 60.0 million ( $8.6 million ) for bank acceptance drafts (with up to 50% compensating balance requirement). • In December 2017, the Company's subsidiary in China entered into a third line of credit facility with China CITIC Bank in China, which expired in November 2018. The purpose of the credit facility was to provide short-term borrowings, bank acceptance drafts and letters of credits. Under this credit facility, the Company could borrow up to approximately RMB 250 million ( $35.9 million ) at varying interest rates, or up to approximately RMB 390.6 million ( $56.1 million ) for bank acceptance drafts (with up to 36% compensating balance requirement). In February 2018, the Company borrowed $17.0 million under this line which bore interest at 4.7% . The amount of $17.0 million under this line was repaid in August 2018. • The Company had a line of credit facility previously with China 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 no outstanding balance at December 31, 2019 and an outstanding balance of $4.8 million as of December 31, 2018, respectively. As of December 31, 2019 and December 31, 2018, compensating balances relating to bank acceptance drafts and letters of credit issued to suppliers and the Company's subsidiaries totaled to $2.5 million and $2.6 million , respectively. Compensating balances are classified as restricted cash on the Company’s consolidated balance sheets. In China, when there is a case pending in judicial court, banks may choose to limit borrowing against existing credit lines, regardless of the legitimacy of the case. The Company has a dispute pending with APAT OE in judicial court (See Note 14). The Company does not expect to make any additional draws against its credit facilities in China until this matter is resolved. 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 of up 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 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. 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. 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"). 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. On June 14, 2019, the Company entered into a First Amendment to the Credit Facility (the "Amended Credit Facility"). The Amendment removes Huawei from the list of “Eligible Accounts” as a basis for the Company’s borrowing while Huawei is on the U.S. Bureau of Industry and Security (“BIS”) “Entity List”. During the period of time while Huawei remains on the Entity List, the concentration limits of certain other customers are increased to partially offset the removal of Huawei. Additionally, until Huawei is no longer on the Entity List, the Company is required to maintain a temporary combination of certain defined unrestricted cash and unused borrowing capacity under the Credit Facility of at least $30.0 million in the U.S. and $40.0 million world-wide, of which at least $5.0 million shall include unused borrowing capacity. The Company was in compliance with the covenants of this Credit Facility as of December 31, 2019. As of December 31, 2019, the outstanding balance under the Credit Facility was $27.3 million and the weighted average rate under the LIBOR option was 3.72% . The remaining borrowing capacity as of December 31, 2019 was $10.4 million , of which $5.0 million is required to be maintained as unused borrowing capacity. The Company repaid $10.0 million borrowed revolving line of credit in 2019. In 2019, $1.4 million accrued interest were rolled into the principal amount of Wells Fargo Credit Facility . Mitsubishi Bank Loans On February 25, 2015, the Company entered into certain loan agreements and related agreements with MUFG Bank, 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 ( $9.2 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 8.3 million JPY until the maturity date of February 25, 2025, with a lump sum payment of the balance of 8.4 million 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 40.5 million 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 coverage ratio covenant. The Company was in compliance with the related covenants as of December 31, 2019 and December 31, 2018. Outstanding principal balance for Term Loan B and unamortized debt issuance costs were approximately 516.7 million JPY (approximately $4.8 million ) and 48.5 million JPY (approximately $0.4 million ), respectively, as of December 31, 2019. 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 $6.4 million ) (the “2017 Mitsubishi Bank Loan”) to acquire manufacturing equipment for its Japanese subsidiary. This loan is secured by the manufacturing equipment owned by the Company's subsidiary in Japan. 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 coverage ratio covenant. The Company was in compliance with these covenants as of December 31, 2019. The loan was available from March 31, 2017 to March 30, 2018 and 690 million JPY (approximately $6.4 million ) under this loan was fully drawn in March 2017. Outstanding principal balance for the 2017 Mitsubishi Bank Loan was approximately 488.8 million JPY (approximately $4.5 million ) as of December 31, 2019. Mitsubishi Bank and Yamanashi Chou Bank loan 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 was available from January 29, 2018 to January 29, 2025. The full amount of the Term Loan C was drawn in January 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. The Term Loan C loan agreement contains customary representations and warranties and customary affirmative and negative covenants applicable to the Japanese Subsidiary, including, among other things, restrictions on cessation in business, management, mergers or acquisitions. The Term Loan C loan agreement contains financial covenants relating to minimum net assets and maximum ordinary loss. The Company was in compliance with these covenants as of December 31, 2019. Outstanding principal balance for the Mitsubishi Bank and Yamanashi Chou Bank Loan was approximately 637.5 million JPY (approximately $5.9 million ) as of December 31, 2019. At December 31, 2019, maturities of long-term debt were as follows (in thousands): 2020 $ 3,192 2021 3,192 2022 30,511 2023 3,097 2024 2,303 Thereafter 432 $ 42,727 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases | Leases The Company has operating leases for offices, research and development facilities and manufacturing facilities. Leases have remaining terms of less than one year to seven years , some of which include options to extend the leases and some of which may include options to terminate the leases within one year . 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. 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 $41,000 , escalating annually to a maximum monthly rental rate of approximately $73,000 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 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 an initial 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, 2019 and December 31, 2018, an asset recorded in property, plant and equipment under a finance lease was immaterial. The components of lease expense were as follows (in thousands): Year Ended 2019 Operating lease cost $ 3,026 Variable and short-term lease cost 1,482 Total lease cost $ 4,508 Other information related to leases was as follows (in thousands, except lease term and discount rate): Year Ended 2019 Supplemental cash flow information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 3,600 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 136 Weighted average remaining lease term (in years) Operating leases 7.4 Weighted average discount rate Operating leases 6.4 % Future minimum lease payments under non-cancelable leases as of December 31, 2019 were as follows (in thousands): Operating Leases 2020 $ 3,227 2021 3,099 2022 3,094 2023 3,043 2024 2,944 Thereafter 8,257 Total future minimum lease payments 23,664 Less imputed interest (5,035 ) Total $ 18,629 Reported as of December 31, 2019: Operating Leases Accrued and other current liabilities $ 2,086 Operating lease liabilities, noncurrent 16,543 Total $ 18,629 As of December 31, 2018, the future minimum payments under lease agreements in accordance with our historical accounting policies under Topic 840 were as follows (in thousands): Operating Leases 2019 $ 3,618 2020 3,113 2021 3,059 2022 3,056 2023 3,049 Thereafter 11,437 Total future minimum lease payments $ 27,332 The Company recognized rent expense on a straight-line basis over the lease period. Rent expense under the Company’s operating leases was $4.2 million and $4.6 million , respectively, in the years ended December 31, 2018 and 2017. |
Pension Plans
Pension Plans | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [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 Semiconductor Co., Ltd. ("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, 2019, 2018 and 2017 was as follows (in thousands): 2019 2018 2017 RAP RAP RAP Change in projected benefit obligation: Projected benefit obligation, beginning of period $ 4,308 $ 4,616 $ 4,802 Service cost — — — Interest cost 4 4 5 Benefits paid (276 ) (517 ) (411 ) Actuarial (gain)/loss — 95 32 Curtailment/Settlement — — — Transfer from DBCPP to RAP — — — Currency translation adjustment 54 110 188 Projected benefit obligation, end of period $ 4,090 $ 4,308 $ 4,616 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 $ 585 $ 257 $ 488 Other noncurrent liabilities $ 3,505 $ 4,051 $ 4,128 Amount recognized in accumulated other comprehensive loss: Defined benefit pension plans adjustment $ 378 $ 373 $ 271 Accumulated benefit obligation, end of period $ 4,090 $ 4,308 $ 4,616 Net periodic pension cost associated with these plans for the years ended December 31, 2019, 2018 and 2017 included the following components (in thousands): 2019 2018 2017 RAP RAP RAP Service cost $ — $ — $ — Interest cost 4 4 5 Other — — — Curtailment/settlement (gain) loss — — — Net periodic pension costs $ 4 $ 4 $ 5 The projected and accumulated benefit obligations for the RAP were calculated as of December 31, 2019 and 2018 using a discount rate assumption of 0.1% and 0.1% , respectively. Estimated future benefit payments under the RAP are as follows (in thousands): 2020 $ 520 2021 610 2022 299 2023 — 2024 414 2025 - 2029 1,562 Thereafter 685 $ 4,090 401(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 $0.5 million |
Commitments and contingencies
Commitments and contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and contingencies | Commitments and contingencies 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. In January 2010, Finisar Corporation, or Finisar, filed a complaint in the U.S. District Court for the Northern District of California, or the Court, 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 the Company and Finisar 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 December 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 $3.0 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 parties engaged in extensive negotiations and in January 2019, the parties agreed to a proposed settlement which was placed on the record of the Superior Court of Santa Clara County agreeing that NeoPhotonics Dongguan Co., Ltd. (“NeoDongguan”) (the Company’s wholly owned subsidiary located in China) would pay to Lestina a total of $2.2 million . These payments were completed in two installments paid in February and June 2019. Upon Lestina's receipt of the final payment in June 2019, Lestina shipped to NeoDongguan the remaining parts from the original purchase orders. In April 2018, APAT OE filed a lawsuit in the Qianhai Court in Shenzhen, China against NeoPhotonics (China) Co., Ltd. and NeoPhotonics Dongguan Co. Ltd. (collectively "NeoChina") and NeoPhotonics Corporation with a claim of approximately $20.0 million . The lawsuit relates to the sale of the low speed transceiver business to APAT OE from NeoChina. APAT OE claims that the business has been losing money and that APAT OE was not given all of the information about the business they purchased prior to signing the Asset Purchase Agreement. In May 2018, counsel on behalf of NeoChina filed a motion objecting to the jurisdiction, claiming that the proper jurisdiction for any dispute between these parties is the Shenzhen Court of International Arbitration (or the "Arbitration Court") and the proper parties to this dispute are NeoChina and APAT OE, pursuant to the Asset Purchase Agreement signed by APAT OE and NeoChina (or the "APA"). In June 2018 a hearing was held in the Qianhai Court in Shenzhen, China and in August 2018 the Court ruled in favor of APAT OE. In October 2018, a hearing was held in the Intermediate Court of Shenzhen (or the "Intermediate Court") on an appeal which was filed by NeoChina and in November 2018 the Intermediate Court ruled in favor of NeoChina and dismissed in totality the litigation against NeoChina, ruling that arbitration was the proper forum for such dispute resolution between the parties. The litigation continued against NeoPhotonics Corporation in Qianhai Court and Intermediate Court, where NeoPhotonics Corporation claims that there is no existing contract between APAT OE and NeoPhotonics Corporation and therefore there is no basis for litigation. In December 2019, NeoPhotonics Corporation received a notice that the case against NeoPhotonics Corporation had been dismissed in the Qianhai Court in Shenzhen, China. APAT OE has appealed this decision to the Shenzhen Intermediate Court. The Company is unable to predict the outcome of this matter and is not currently aware of the precise amount of the ongoing claim by APAT against NeoPhotonics Corporation in this lawsuit. In December 2018, APAT OE officially filed claims through two lawsuits against NeoChina, NeoPhotonics Corporation Limited Hong Kong (or NeoHK), Novel Centennial Limited BVI (or NeoBVI) and NeoPhotonics Corporation in the Intermediate Court in addition to a pre-trial preservation order. On the same day the Court issued the order to preserve approximately $29.0 million of NeoChina assets, which is the approximate amount of the revised claims by APAT OE against all defendants in the first lawsuit. In January 2019, there was an additional pre-trial preservation order to preserve approximately $3.8 million of NeoChina assets. The temporary pre-trial preservation order was made simultaneously to the filing of the two lawsuits, but the defendants were not served or aware of the lawsuit until later in January 2019. In the first lawsuit, the legal claims are the same as the ones APAT OE filed in April 2018 in Qianhai Court in Shenzhen, China (as described above). The difference is that instead of distributing claims in separate cases, APAT OE has combined its claims to one single case and added the additional defendants of NeoHK and NeoBVI and increased the claimed damages to approximately $29.0 million . In the second lawsuit, the claims are new and related to the alleged new issues related to a contract manufacturer located in the Philippines and claiming damages in the amount of RMB 50.9 million (approximately $7.6 million ). APAT OE claims that the defendants have interfered with APAT OE’s ability to sign an engagement agreement with the contract manufacturer. The defendants believe this dispute is related to and should be under the jurisdiction that was agreed to in the APA, and therefore should be properly transferred to the Shenzhen Court of International Arbitration. In March 2019 the Shenzhen Intermediate Court assigned a judge for the two lawsuits, but no hearing date has been set yet. The Company is unable to predict the outcome of this matter. In February 2019, NeoChina filed a case in the Qianhai Court in Shenzhen, China against APAT OE and Zhejiang Merchants Property Insurance Company for losses and damages caused to NeoChina from APAT OE’s previously granted property preservation. The claim was for approximately RMB 350,000 (approximately $52,000 ) in damages and legal fees and was heard in May 2019. In December 2019 NeoChina received a final judgment in favor of the defendants. APAT Arbitration In June 2017, APAT OE filed an arbitration claim in the Shenzhen Court of International Arbitration (or the Arbitration Court) against NeoChina (collectively both of the Company’s China subsidiaries), 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 Arbitration Court in August 2017. In October 2017, NeoChina was informed that it was successful in the defense of the dispute and was also successful in its counterclaim against APAT OE. NeoChina was awarded approximately RMB 700,000 (approximately $110,000 ) in compensatory damages and attorney fees as well as having the approximately $1.5 million claim against it rejected in its entirety. In April 2018, APAT OE filed a Notice of Judicial Review of the arbitration judgment in the Shenzhen Intermediate Court in Shenzhen, China. The case was heard in May 2018, and NeoChina was successful in disputing the Judicial Review, which means that the arbitration judgment against APAT OE and in favor of NeoChina stands. In July 2018, NeoChina applied together to the Shenzhen Intermediate Court for enforcement of the previous arbitration ruling because APAT OE had refused to perform the arbitral award. In October 2018, the Court enforced the award, officially closing this arbitration matter. In July 2018, NeoChina filed an arbitration claim against APAT OE in the Arbitration Court claiming approximately $12.0 million in damages as related to liability under the APA. NeoChina also was granted a property preservation of APAT OE’s bank accounts. In February 2019 NeoChina applied to the Arbitration Court to reduce the claim to $7.1 million according to the evidence of confirmation requests received by NeoChina. In August 2019, NeoChina applied to the Arbitration Court to modify the claim to $8.1 million subject to the supplementary evidence of NeoChina. A hearing occurred on September 23, 2019. No judgment has been issued to date. The Company is unable to predict the outcome of this matter. In November 2018, APAT OE filed an additional arbitration claim against NeoChina and NeoPhotonics Corporation claiming approximately $7.8 million for liability under the APA. In March 2019, NeoChina filed a response and counterclaim against APAT OE including a claim for attorney fees in the amount of RMB 810,000 (approximately $121,000 ). This matter is scheduled to be heard in the same hearing as the NeoChina arbitration claim referenced above, which matter was heard on September 23, 2019. No judgment has been issued to date. The Company is unable to predict the outcome of this ma tter. 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 no t 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 ("Cisco"). One defendant successfully transferred their case to the U.S. District Court for the Northern District of California. Additional defendants requested venue changes are still pending. The Company was not named as a defendant in any of the lawsuits. In July 2017, Cisco notified the Company that it would be seeking indemnification from the Company for claims against Cisco arising from the lawsuits and the parties engaged in discussions and negotiations. In September 2018, the Company and Cisco signed a settlement agreement under which the Company agreed to pay to Cisco $0.3 million , which was paid in January 31, 2019 and $0.2 million in product credit, which was issued in December, 2019. This settlement resolved Cisco's indemnification claims against the Company in this matter. 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, 2019, the Company’s estimate of outstanding amounts under these purchase orders was approximately $62.1 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 "Rusnano" (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 "Rusnano 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. As of December 31, 2018, the remaining Investment Commitment was approximately $6.7 million to be invested at any time on or before December 31, 2019. At any point between December 31, 2018 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. 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 $2.0 million as of December 31, 2018 and $0.4 million as of December 31, 2017. As of December 31, 2018, and December 31, 2017, the derivative was reported within Accrued and other current liabilities and other noncurrent liabilities, respectively on the Company’s consolidated balance sheets. See Note 8. In December 2018, the Company signed a definitive agreement with Rusnano to sell the Company’s 100% interest in NeoPhotonics Corporation, LLC, the subsidiary for the Company’s manufacturing operations in Russia, for approximately book value. The purchase price agreed to be paid by Rusnano consisted of approximately $3.0 million in cash and $1.0 million in cancellation of the remaining penalty payment that would otherwise be owed to Rusnano as consideration for the Company's obligations to provide manufacturing process transition to NeoPhotonics Corporation, LLC. This transaction was completed in April 2019. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |
Stockholders’ Equity | Stockholders’ Equity Common stock As of December 31, 2019, the Company had reserved 7,720,441 shares of common stock for issuance under its stock plans and 1,717,211 shares of common stock for issuance under its employee stock purchase plan. In August 2019, the Company filed a prospectus supplement with SEC to issue 103,734 shares of common stock and additional shares of common stock with an aggregate offering price of up to $4.5 million to one of the Company’s vendors as a consideration for research and development services. In 2019 the Company issued common shares totaling 441,410 for a total consideration of $2.5 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, 2019 and 2018 (in thousands): December 31, 2019 December 31, 2018 Foreign currency translation adjustments $ (7,641 ) $ (6,897 ) Unrealized loss on available-for-sale securities — — Defined benefit pension plan adjustment, net of taxes (230 ) (229 ) $ (7,871 ) $ (7,126 ) 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, 2019, 2018 or 2017. Accumulated Deficit Approximately $9.2 million and $9.0 million of the Company’s retained earnings within its accumulated deficit at December 31, 2019 and 2018, respectively, was subject to restriction due to a requirement that its subsidiaries in China set aside at least 10% |
Restricted net assets
Restricted net assets | 12 Months Ended |
Dec. 31, 2019 | |
Restricted Net Assets [Abstract] | |
Restricted net assets | Restricted net assets The Company’s consolidated subsidiaries operating in China and Japan are restricted from transferring funds or assets to its parent company in the form of cash dividends, loans or advances. As of December 31, 2019 and December 31, 2018, the Company's consolidated subsidiaries had $21.1 million and $20.9 million , respectively, of restricted net assets. This compares to the Company's consolidated net assets of $160.2 million and $160.2 million as of December 31, 2019 and December 31, 2018, respectively, which consisted of (in thousands): December 31, 2019 December 31, 2018 Cash restricted in China as a result of ongoing litigation and unfulfilled government grants $ 10,936 $ 11,018 China earnings restricted to fund statutory common reserves in China 9,240 9,005 Loan agreements in Japan requiring local subsidiaries to maintain minimum net asset levels 920 909 Total restricted net assets in the Company's consolidated subsidiaries $ 21,096 $ 20,932 |
Stock-based compensation
Stock-based compensation | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [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, 2019, options to purchase 65,644 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, 2019, 13,471 stock appreciation units were outstanding, all of which 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, 2019, stock options to purchase and restricted stock units to convert to a total of 5,831,720 shares of common stock were outstanding under the 2010 Plan and 1,093,354 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 16th of each year, with two purchase dates on May 15th and November 15th. 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, in an amount equal to the lesser of (1) 3.5% of the total number of shares of common stock outstanding on December 31st 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, 2019, the Company had 1,717,211 shares reserved for future issuance. In June 2019, the Company’s stockholders approved an amendment and restatement of the 2010 ESPP, which authorized 1,500,000 additional shares for issuance under the 2010 ESPP and eliminated the annual automatic increase provisions from the 2010 ESPP. 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, 2019, stock options to purchase and restricted stock units to convert to a total of 513,862 shares of common stock were outstanding under the 2011 Plan and 215,861 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 2019 2018 2017 Weighted-average expected term (years) 6.00 6.02 5.99 Weighted-average volatility 67% 65% 65% Risk-free interest rate 1.82%-2.27% 2.27%-2.62% 2.02%-2.08% Expected dividends —% —% —% Stock appreciation units Weighted-average expected term (years) 1.52 1.94 2.30 Weighted-average volatility 64% 66% 69% Risk-free interest rate 1.63%-2.63% 1.03%-2.81% 0.51%-1.62% Expected dividends —% —% —% ESPP Weighted-average expected term (years) 0.71 0.72 0.72 Weighted-average volatility 71% 61% 61% Risk-free interest rate 1.75%-2.44% 1.93%-2.59% 0.91%-1.31% 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 was based on a combination of its own volatility and the volatility of similar entities through end of 2016. In evaluating similarity, factors such as industry, stage of life cycle, size, and financial leverage were taken into consideration. The term over which volatility was measured was commensurate with the expected term. Starting 2017, the volatility assumption is based on the historical volatility of our common stock over the expected term of the stock options. 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, 2019, 2018 and 2017. Unamortized stock-based compensation costs capitalized as part of inventory were immaterial in each of the periods presented (in thousands): Years ended December 31, 2019 2018 2017 Cost of goods sold $ 2,244 $ 2,596 $ 1,098 Research and development 3,138 3,570 2,491 Sales and marketing 2,411 3,248 1,697 General and administrative 4,663 4,728 2,920 $ 12,456 $ 14,142 $ 8,206 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, 2019: 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, 2018 1,102,323 3,202,745 $ 5.73 2,486,028 $ 7.87 Authorized for issuance 1,623,244 — — — — Granted (2,087,020 ) 103,001 4.34 1,974,019 4.90 Exercised/Converted — (485,832 ) 3.90 (1,018,143 ) 8.72 Cancelled/Forfeited 670,668 (221,169 ) 6.81 (270,923 ) 7.23 Balance at December 31, 2019 1,309,215 2,598,745 $ 5.93 3,170,981 $ 5.80 The following table summarizes information about stock options outstanding as of December 31, 2019: 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 2,582,127 $ 5.92 4.88 $ 8,280 Exercisable 2,351,411 $ 5.87 4.57 $ 7,723 The fair value of options vested during the years ended December 31, 2019, 2018 and 2017 was $1.6 million , $2.3 million and $1.5 million , respectively. The intrinsic value of options vested and expected to vest and exercisable as of December 31, 2019 is calculated based on the difference between the exercise price and the fair value of the Company’s common stock as of December 31, 2019. The intrinsic value of options exercised during the years ended December 31, 2019, 2018 and 2017, was $1.3 million , $2.4 million and $3.0 million , respectively. The weighted-average fair value of options granted was $2.68 , $4.03 and $4.43 per share for the years ended December 31, 2019, 2018 and 2017, respectively. At December 31, 2019, there was $0.8 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 1.2 years. Included in the outstanding stock options at December 31, 2019 are 0.6 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, 2019: 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 2,743,267 $ — 1.35 $ 24,196 The fair value of RSUs vested during the years ended December 31, 2019, 2018 and 2017 was $8.9 million , $9.8 million and $7.6 million , respectively. The intrinsic value of RSUs vested and expected to vest as of December 31, 2019 is calculated based on the fair value of the Company’s common stock as of December 31, 2019. The intrinsic value of RSUs converted during the years ended December 31, 2019, 2018 and 2017, was $4.7 million , $7.4 million and $6.4 million , respectively. The weighted-average fair value of RSUs granted was $4.90 , $6.83 and $7.86 per share for the years ended December 31, 2019, 2018 and 2017, respectively. At December 31, 2019, the Company had $12.3 million of unrecognized stock-based compensation expense for RSUs, net of estimated forfeitures, which will be recognized over the remaining weighted-average period of 2.4 years. The majority of the Company’s RSUs that were converted during the years ended December 31, 2019, 2018 and 2017 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 2019, 2018 and 2017, the Company withheld 155,267 , 147,572 and 126,999 shares, respectively, and remitted cash of $0.7 million , $1.0 million and $1.0 million , respectively, to the appropriate tax authorities. Market-based Restricted Stock Unit Activity In 2019 and 2018, the Company granted 10,000 shares and 695,000 shares, respectively, of market-based RSUs to certain employees. These RSUs will vest if the 30-day weighted average closing price of the Company's common stock is equal to or greater than certain price targets per share and the recipients remain in continuous service with the Company through such service period. 63,500 RSU's were canceled during 2019, no RSUs were canceled in 2018. There were no RSUs vested in 2019 and 2018. The weighted average grant-date fair value per share of market-based RSUs granted during 2019 and 2018 was approximately $4.86 and $5.82 , respectively. As of December 31, 2019, the Company had $1.3 million of unrecognized stock-based compensation expense for RSUs, net of estimated forfeitures, which will be recognized over the remaining weighted-average period of 1 year. The fair value of market-based RSUs was measured on the grant date using Monte Carlo simulation model with the following assumptions: Years ended December 31, 2019 2018 Weighted-average volatility 66% 66% Risk-free interest rate 2.79% 2.79% Expected dividends —% —% Market-based RSUs expire seven years from the date of grant. As of December 31, 2019, the weighted average remaining contractual term for market-based RSUs is 5.6 years. Stock Appreciation Unit Activity The following table summarizes the Company’s stock appreciation unit activity during the year ended December 31, 2019: Stock Appreciation Units Weighted-Average Exercise Price Stock appreciation units outstanding as of December 31, 2018 192,872 $ 4.91 Stock appreciation units exercised (11,252 ) $ 3.52 Stock appreciation units canceled (18,149 ) $ 4.84 Stock appreciation units outstanding as of December 31, 2019 163,471 $ 5.01 The fair value of stock appreciation units vested was immaterial in 2019, 2018 and 2017. 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, 2019. Cash paid for stock appreciation units exercised was $0.1 million in 2019, $0.1 million in 2018, and $0.2 million in 2017. As of December 31, 2019 and 2018, the liability for settlement of stock appreciation units was approximately $0.8 million and $0.6 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, 2019 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 2019, the Company recorded approximately $0.2 million loss as compared to approximately $0.1 million gain in 2018, in related stock-based compensation for these stock appreciation units. Employee Stock Purchase Plan The Company issued 357,251 shares under the 2010 ESPP during the year ended December 31, 2019. As of December 31, 2019, there was $0.8 million |
Income taxes
Income taxes | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 2018 2017 U.S. operations $ (21,579 ) $ (43,384 ) $ (52,725 ) Non-U.S. operations 6,136 1,076 301 $ (15,443 ) $ (42,308 ) $ (52,424 ) The components of the provision for income taxes consisted of the following (in thousands): Years Ended December 31, 2019 2018 2017 Current Federal $ (71 ) $ (49 ) $ (144 ) State (3 ) 36 3 Foreign (1,854 ) (1,634 ) 363 (1,928 ) (1,647 ) 222 Deferred Federal — 42 4 State — — — Foreign 295 276 (1,135 ) Total provision $ (1,633 ) $ (1,329 ) $ (909 ) The tax provision differs from the amount obtained by applying the U.S. federal statutory tax rate as follows (in thousands, except percentages): Years Ended December 31, 2019 2018 2017 Federal statutory rate 21 % 21 % 35 % Tax at federal statutory rate $ 3,255 $ 8,869 $ 18,354 State taxes, net of federal benefit (3 ) 36 2 Mandatory repatriation/Section 956 — — (5,718 ) Permanent differences 1,514 (371 ) (67 ) Stock-based compensation (1,014 ) (1,079 ) (314 ) Change in valuation allowance (5,186 ) (10,094 ) 16,273 Research and development 932 914 851 Foreign rate differences (531 ) (697 ) (2,819 ) Foreign tax credit (405 ) 49 144 Change in prior year deferred balances — 1,653 (28,262 ) Other (195 ) (609 ) 647 Total provision for income taxes from continuing operations $ (1,633 ) $ (1,329 ) $ (909 ) Deferred income tax assets and liabilities comprise the following (in thousands): December 31, 2019 2018 Deferred Tax Assets: Net operating loss carryforwards $ 54,339 $ 56,828 Federal and state credits 30,111 28,328 Reserves, accruals and other 14,132 11,265 Fixed assets and intangibles 2,783 2,398 Total deferred tax assets 101,365 98,819 Valuation allowance (92,149 ) (92,891 ) Total deferred tax assets, net of valuation allowance 9,216 5,928 Less deferred tax liabilities: Acquired intangibles (283 ) (313 ) Property, plant and equipment (4,663 ) (4,754 ) Right-of-Use Lease Assets (3,124 ) — Net deferred tax assets $ 1,146 $ 861 Reported as: Long term deferred tax assets, included within other long-term assets $ 1,674 $ 861 Long term deferred income tax liabilities, included within noncurrent liabilities (528 ) — Net deferred tax assets $ 1,146 $ 861 The net valuation allowance increased by $0.7 million in 2019 and increased by $16.8 million in 2018. There was no material change to the valuation allowance in 2019. 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, 2019. 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. The Company adopted ASU 2016-16 on a modified retrospective basis effective January 1, 2018. Upon adoption of this standard on January 1, 2018, the Company recorded $1.8 million to accumulated deficit balance for intra-entity transfer of an asset other than inventory in prior years. As of December 31, 2019, the Company had federal and state net operating loss, or NOL, carryforwards of approximately $290.4 million and $52.1 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, 2019, the Company also had federal and state research and development tax credit carryovers of $10.2 million and $18.8 million , respectively. The federal credits will begin to expire in 2020 and the state credits can be carried forward indefinitely. The Company also had $10.5 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. The Company maintains its position for undistributed foreign earnings to be indefinite and does not provide for outside basis differences under the indefinite reinvestment assertion of ASC 740-30. Accordingly, the Company does not anticipate the need to provide for additional taxes for basis differences or withholding taxes on remitted foreign earnings in the immediate future. At December 31, 2019, the Company’s gross unrecognized tax benefits were approximately $20.7 million , of which $0.1 million would impact the effective tax rate if recognized. 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, 2016 $ 23,606 Gross increases for tax positions of current year 1,933 Balance at December 31, 2017 25,539 Gross increases for tax positions of current year 657 Balance at December 31, 2018 26,196 Net changes in tax positions in current year (5,544 ) Balance at December 31, 2019 $ 20,652 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 2013 |
Segment and geographic informat
Segment and geographic information | 12 Months Ended |
Dec. 31, 2019 | |
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 2019, 2018 and 2017, the Company operated in one reportable segment. Through 2019, the Company has aligned its products to High Speed Products and Network Products and Solutions (see Note 3). The following tables set forth the Company’s asset information by geographic region (in thousands): As of December 31, 2019 2018 Property, plant and equipment, net: China $ 19,230 $ 27,329 United States 26,068 29,054 Japan 25,772 29,631 Rest of world 10,063 14,076 Total $ 81,133 $ 100,090 |
Selected Quarterly Financial Da
Selected Quarterly Financial Data (unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 and 2018: Year ended December 31, 2019 First Quarter Second Quarter Third Quarter Fourth Quarter (In thousands, except per share value) Revenues $ 79,366 $ 81,690 $ 92,392 $ 103,356 Gross profit 15,737 15,675 26,199 31,202 Net income (loss) (14,091 ) (7,326 ) 2,272 2,069 Basic net income (loss) per share $ (0.30 ) $ (0.16 ) $ 0.05 $ 0.04 Diluted net income (loss) per share $ (0.30 ) $ (0.16 ) $ 0.05 $ 0.04 Weighted averages shares used to compute basic net income (loss) per share 46,414 46,754 47,666 48,358 Weighted averages shares used to compute diluted net income (loss) per share 46,414 46,754 48,615 50,238 Year ended December 31, 2018 First Quarter Second Quarter Third Quarter Fourth Quarter (In thousands, except per share value) Revenues $ 68,586 $ 81,102 $ 81,748 $ 91,104 Gross profit 9,182 15,472 18,933 22,586 Net loss (18,246 ) (10,537 ) (8,125 ) (6,729 ) Basic net loss per share $ (0.41 ) $ (0.24 ) $ (0.18 ) $ (0.15 ) Diluted net loss per share (0.41 ) (0.24 ) (0.18 ) (0.15 ) Weighted averages shares used to compute basic net loss per share 44,259 44,665 45,476 46,150 Weighted averages shares used to compute diluted net loss per share 44,259 44,665 45,476 46,150 |
Summary of significant accoun_2
Summary of significant accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Consolidation | 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. |
Use of estimates | Use of estimates The preparation of financial statements in accordance with 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. 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 |
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, the Company reviews trading activity and pricing for these investments as of the measurement date. When sufficient quoted pricing for identical securities is not available, the Company uses 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 nine 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 The Company allocates 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 as well as 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 |
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. |
Leases | Leases The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use ("ROU") assets, other current liabilities and operating lease liabilities on the Company's consolidated balance sheet. Finance leases are included in property, plant and equipment, current portion of long-term debt and long-term debt, net of current portion on the consolidated balance sheets. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. As most of our leases do not provide an implicit rate, the Company uses an estimate of its incremental borrowing rate based on observed market data and other information available at the lease commencement date. The operating lease ROU assets also include any lease payments made and exclude lease incentives. Lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise such options. The Company does not record leases on the consolidated balance sheet with a term of one year or less. The Company does not separate lease and non-lease components but rather account for each separate component as a single lease component for all underlying classes of assets. Variable lease payments are expensed as incurred and are not included within the operating lease ROU asset and lease liability calculation. Variable lease payments primarily include reimbursements of costs incurred by lessors for common area maintenance and utilities. Lease expense for minimum operating lease payments is recognized on a straight-line basis over the lease term. |
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 $2.2 million loss in 2018 relating to its foreign currency contracts within other income, net. Net foreign exchange gain (loss) was $0.2 million , $1.4 million , and $(0.5) million in 2019, 2018, and 2017, respectively. These gains and losses were recorded as other income, 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. During the six months ended December 31, 2018, the Company temporarily discontinued entering into forward exchange contracts. This may increase the risks to us arising from the short-term impact of foreign currency fluctuations. |
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 In February 2016, the Financial Accounting Standards Board ("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 using the modified retrospective transition method. In July 2018, the FASB issued ASU 2018- 11, Leases (ASC 842): Targeted Improvements. The update provides an optional transition method that allows entities to change the date of initial application to the beginning of the period of adoption. The Company adopted the guidance on January 1, 2019 under the optional transition method and the consolidated balance sheet as of December 31, 2018 continue to be reported under the previous lease accounting standard, ASC 840. Certain optional practical expedients are allowed. The Company elected the package of practical expedients permitted under the transition guidance, which allowed the Company to carryforward historical lease classification, assessment on whether a contract was or contains a lease, and initial direct costs for any leases that existed prior to January 1, 2019. The Company also elected to combine lease and non-lease components and to keep leases with an initial term of 12 months or less off the consolidated balance sheet. As a result of adopting Topic 842 on January 1, 2019, the Company recognized operating lease right-of-use assets of $17.3 million and corresponding operating lease liabilities of $20.8 million from existing leases on the Company's consolidated balance sheet. Refer to Note 12 for further details. The adoption of Topic 842 had no impact on the Company's consolidated statement of operations or consolidated statement of cash flows. Recent accounting standards update not yet effective 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 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 adoption of this standard is not expected to have a material impact on the Company’s consolidated financial statements and related disclosures. |
Revenue recognition | Revenue recognition Revenue is recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration the Company expects to receive in exchange for those products or services. The Company generally bears all costs, risk of loss or damage and retains title to the goods up to the point of transfer of control of promised products to customer. Revenue related to the sale of consignment inventories at customer vendor managed locations is not recognized until the products are pulled from consignment inventories 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. |
Summary of significant accoun_3
Summary of significant accounting policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Schedule of Product Information | Customers accounting for more than 10% of our total revenue and revenue from our top five customers for the years ended December 31, 2019, 2018 and 2017 were as follows: Years Ended December 31, 2019 2018 2017 Percent of revenue from customers accounting for 10% or more of total revenue: Huawei Technologies Co., Ltd 41 % 46 % 40 % Ciena Corporation 29 % 24 % 16 % Percent of revenue from top five customers 84 % 87 % 78 % |
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 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Revenue by Product Group and Geographical Region | Revenue from sale of hardware products is recognized upon transfer of control to the customer. The performance obligation for the sale of hardware products is satisfied at a point in time. The Company has aligned its products in two groups - High Speed Products and Network Products and Solutions. The following presents revenue by product group (in thousands): Years Ended December 31, 2019 2018 2017 High Speed Products $ 323,804 $ 275,803 $ 241,780 Network Products and Solutions 33,000 46,737 51,114 Total revenue $ 356,804 $ 322,540 $ 292,894 The following table presents the Company's revenue information by geographical region. Revenue is classified based on the ship to location requested by 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, 2019 2018 2017 China $ 186,157 $ 187,277 $ 161,637 Americas 82,741 70,906 52,973 Rest of world 87,906 64,357 78,284 Total revenue $ 356,804 $ 322,540 $ 292,894 |
Cash, cash equivalents, short_2
Cash, cash equivalents, short-term investments and restricted cash (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Cash and Cash Equivalents [Abstract] | |
Schedule Of Cash, Cash Equivalents Short Term Investments And Restricted Cash And Investments | The following table summarizes the Company’s cash, cash equivalents, short-term investments, and restricted cash at December 31, 2019 and 2018 (in thousands): December 31, 2019 December 31, 2018 Cash and cash equivalents: Cash $ 70,467 $ 58,185 Cash equivalents — — Cash and cash equivalents $ 70,467 $ 58,185 Short-term investments $ 7,638 $ 7,481 Restricted cash $ 10,972 $ 11,053 December 31, 2019 December 31, 2018 Cash and cash equivalents $ 70,467 $ 58,185 Restricted cash 10,972 11,053 Total cash, cash equivalents and restricted cash shown in the consolidated statement of cash flows $ 81,439 $ 69,238 |
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 short-term investments in marketable securities designated as available-for-sale (in thousands): As of December 31, 2019 As of December 31, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Loss Fair Value Amortized Cost Gross Unrealized Gains Gross Unrealized Loss Fair Value Marketable securities: Money market funds $ 7,638 $ — $ — $ 7,638 $ 7,481 $ — $ — $ 7,481 Total $ 7,638 $ — $ — $ 7,638 $ 7,481 $ — $ — $ 7,481 Reported as: Short-term investments $ 7,638 $ — $ — $ 7,638 $ 7,481 $ — $ — $ 7,481 Total $ 7,638 $ — $ — $ 7,638 $ 7,481 $ — $ — $ 7,481 |
Maturities of Marketable Securities | As of December 31, 2019 and 2018, maturities of marketable securities were as follows (in thousands): December 31, 2019 December 31, 2018 Less than 1 year $ 7,638 $ 7,481 Due in 1 to 2 years — — Due in 3 to 5 years — — Total $ 7,638 $ 7,481 |
Fair value measurements (Tables
Fair value measurements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 December 31, 2018 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Cash equivalents and short-term investments: Money market funds $ 7,638 $ — $ — $ 7,638 $ 7,481 $ — $ — $ 7,481 Total $ 7,638 $ — $ — $ 7,638 $ 7,481 $ — $ — $ 7,481 Mutual funds held in Rabbi Trust, recorded in other long-term assets $ 616 $ — $ — $ 616 $ 465 $ — $ — $ 465 |
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, 2018 Level 1 Level 2 Level 3 Total Rusnano payment derivative $ — $ — $ 2,000 $ 2,000 Total $ — $ — $ 2,000 $ 2,000 |
Net loss per share (Tables)
Net loss per share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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 loss per share attributable to NeoPhotonics Corporation common stockholders for the periods indicated (in thousands, except per share amounts): Years Ended December 31, 2019 2018 2017 Numerator: Net loss $ (17,076 ) $ (43,637 ) $ (53,333 ) Denominator: Weighted average shares used to compute per share amount: Basic 47,304 45,144 43,431 Dilutive effect of equity awards — — — Diluted 47,304 45,144 43,431 Basic net loss per share $ (0.36 ) $ (0.97 ) $ (1.23 ) Diluted net loss per share $ (0.36 ) $ (0.97 ) $ (1.23 ) |
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 loss per share, as their effect would have been antidilutive (in thousands): December 31, 2019 2018 2017 Employee stock options 2,599 3,203 3,934 Restricted stock units 3,171 2,486 2,405 Market-based restricted stock units 641 695 — Employee stock purchase plan 298 414 421 6,709 6,798 6,760 |
Purchased intangible assets (Ta
Purchased intangible assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Purchased Intangible Assets | Purchased intangible assets consist of the following (in thousands): December 31, 2019 December 31, 2018 Gross Assets Accumulated Amortization Net Assets Gross Assets Accumulated Amortization Net Assets Technology and patents $ 36,880 $ (35,555 ) $ 1,325 $ 37,029 $ (34,995 ) $ 2,034 Customer relationships 15,089 (15,089 ) — 15,146 (15,026 ) 120 Leasehold interest 1,222 (396 ) 826 1,238 (374 ) 864 $ 53,191 $ (51,040 ) $ 2,151 $ 53,413 $ (50,395 ) $ 3,018 |
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, 2019 2018 2017 Cost of goods sold $ 737 $ 756 $ 869 Operating expenses 119 475 472 Total $ 856 $ 1,231 $ 1,341 |
Estimated Future Amortization Expense of Purchased Intangible Assets | The estimated future amortization expense of purchased intangible assets as of December 31, 2019, is as follows (in thousands): 2020 $ 736 2021 644 2022 27 2023 27 2024 27 Thereafter 690 $ 2,151 |
Balance sheet components (Table
Balance sheet components (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Balance Sheet Related Disclosures [Abstract] | |
Restricted Cash | Restricted cash was as follows (in thousands): December 31, 2019 2018 Restricted in connection with notes payable and short-term borrowing (see Note 11) $ 2,559 $ 2,589 Restricted in connection with asset purchase agreement (see Note 9) 1,999 2,019 Restricted in connection with a current legal dispute with APAT OE (See Note 9) 5,989 5,156 Restricted in connection with government grants received in advance 425 1,289 Total restricted cash $ 10,972 $ 11,053 Reported as: Restricted cash $ 10,972 $ 11,053 $160.2 million and $160.2 million as of December 31, 2019 and December 31, 2018, respectively, which consisted of (in thousands): December 31, 2019 December 31, 2018 Cash restricted in China as a result of ongoing litigation and unfulfilled government grants $ 10,936 $ 11,018 China earnings restricted to fund statutory common reserves in China 9,240 9,005 Loan agreements in Japan requiring local subsidiaries to maintain minimum net asset levels 920 909 Total restricted net assets in the Company's consolidated subsidiaries $ 21,096 $ 20,932 |
Accounts Receivable, Net | Accounts receivable, net were as follows (in thousands): December 31, 2019 2018 Accounts receivable $ 68,988 $ 74,343 Trade notes receivable 156 672 Allowance for doubtful accounts (254 ) (264 ) $ 68,890 $ 74,751 |
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, 2016 $ (425 ) Provision for bad debt, net (577 ) Write-offs, net of recoveries 376 Balance at December 31, 2017 (626 ) Reversal of provision for bad debt, net 428 Write-offs, net of recoveries (66 ) Balance at December 31, 2018 (264 ) Reversal of provision for bad debt, net 15 Write-offs, net of recoveries (5 ) Balance at December 31, 2019 $ (254 ) |
Inventories, net | Inventories were as follows (in thousands): December 31, 2019 2018 Raw materials $ 19,350 $ 27,806 Work in process 12,262 13,044 Finished goods (1) 15,318 11,309 $ 46,930 $ 52,159 (1) Included in finished goods was $1.6 million and $5.6 million of inventory at customer vendor managed inventory locations at December 31, 2019 and 2018 , respectively. |
Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets were as follows (in thousands): December 31, 2019 2018 Prepaid taxes and taxes receivable $ 6,979 $ 5,461 Transition services agreement receivable (see Note 9) 11,861 11,999 Deposits and other prepaid expenses 2,512 3,020 Other receivable 4,499 6,125 $ 25,851 $ 26,605 |
Property, Plant and Equipment, Net | Property, plant and equipment, net were as follows (in thousands): December 31, 2019 2018 Land $ 3,197 $ 3,157 Buildings 23,624 23,379 Machinery and equipment 181,596 187,746 Furniture, fixtures, software and office equipment 10,736 10,201 Leasehold improvements 22,058 22,000 241,211 246,483 Less: Accumulated depreciation (160,078 ) (146,393 ) $ 81,133 $ 100,090 |
Accrued and Other Current Liabilities | Accrued and other current liabilities were as follows (in thousands): December 31, 2019 2018 Employee-related $ 17,877 $ 14,899 Transition services agreement payables (see Note 9) 11,765 11,769 Asset sale related contingent liabilities (see Note 9) 6,664 6,751 Operating lease liabilities, current 2,086 — Income and other taxes payable 2,036 1,580 Deferred revenue, current — 1,114 Accrued warranty 712 672 Rusnano payment derivative — 2,000 Accrued litigation settlement — 2,645 Other accrued expenses 6,341 8,858 $ 47,481 $ 50,288 |
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, 2019 2018 2017 Beginning balance $ 672 $ 1,334 $ 678 Warranty accruals 782 399 1,263 Settlements (742 ) (1,061 ) (607 ) Ending balance $ 712 $ 672 $ 1,334 |
Other Noncurrent Liabilities | Other noncurrent liabilities were as follows (in thousands): December 31, 2019 2018 Pension and other employee-related $ 4,125 $ 4,529 Deferred rent — 3,058 Government grant 1,380 2,108 Deferred income tax liabilities 528 — Capital lease obligation — 282 *Asset retirement obligations 3,529 3,391 Other 52 131 $ 9,614 $ 13,499 *Asset retirement obligations are legal obligations associated with the retirement of long-lived assets pertaining to leasehold improvements. In 2019 accretion related to the asset retirement obligations was $0.2 million . |
Restructuring (Tables)
Restructuring (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Reserve by Type | Employee Severance Facilities Consolidation Others Total Restructuring obligations December 31, 2018 $ 436 $ 769 $ 1,611 $ 2,816 Charges 88 — 173 261 Cash payments (524 ) (149 ) (173 ) (846 ) *Non-cash settlements and other — (620 ) (1,611 ) (2,231 ) Restructuring obligations December 31, 2019 $ — $ — $ — $ — *Includes reclassification of the operating lease liability of $0.6 million and $1.6 million related to the NeoRussia penalty settlement. |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 December 31, 2018 Carrying Amount Interest Rate Carrying Amount Interest Rate Notes payable to suppliers $ — $ 4,795 Total notes payable and short-term borrowing $ — $ 4,795 Long-term debt, current and non-current: Borrowing under Wells Fargo Credit Facility $ 27,329 3.72 % $ 35,961 4.41 % Mitsubishi Bank loans 9,255 1.04%-1.44% 11,094 1.05%-1.45% Mitsubishi Bank and Yamanashi Chou Bank loan 5,868 1.07 % 6,898 1.10 % Finance lease liability 275 — Unaccreted discount and issuance costs (446 ) (602 ) Total long-term debt, net of unaccreted discount and issuance costs $ 42,281 $ 53,351 Reported as: Current portion of long-term debt $ 3,044 $ 2,897 Long-term debt, net of current portion 39,237 50,454 Total long-term debt, net of unaccreted discount and issuance costs $ 42,281 $ 53,351 |
Maturities of Long-term Debt | At December 31, 2019, maturities of long-term debt were as follows (in thousands): 2020 $ 3,192 2021 3,192 2022 30,511 2023 3,097 2024 2,303 Thereafter 432 $ 42,727 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Schedule of lease, cost | The components of lease expense were as follows (in thousands): Year Ended 2019 Operating lease cost $ 3,026 Variable and short-term lease cost 1,482 Total lease cost $ 4,508 Other information related to leases was as follows (in thousands, except lease term and discount rate): Year Ended 2019 Supplemental cash flow information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 3,600 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 136 Weighted average remaining lease term (in years) Operating leases 7.4 Weighted average discount rate Operating leases 6.4 % |
Schedule of future minimum lease payments under non-cancellable leases | Future minimum lease payments under non-cancelable leases as of December 31, 2019 were as follows (in thousands): Operating Leases 2020 $ 3,227 2021 3,099 2022 3,094 2023 3,043 2024 2,944 Thereafter 8,257 Total future minimum lease payments 23,664 Less imputed interest (5,035 ) Total $ 18,629 |
Schedule of operating leases | Reported as of December 31, 2019: Operating Leases Accrued and other current liabilities $ 2,086 Operating lease liabilities, noncurrent 16,543 Total $ 18,629 |
Schedule of Future Minimum Rental Payments for Operating Leases | As of December 31, 2018, the future minimum payments under lease agreements in accordance with our historical accounting policies under Topic 840 were as follows (in thousands): Operating Leases 2019 $ 3,618 2020 3,113 2021 3,059 2022 3,056 2023 3,049 Thereafter 11,437 Total future minimum lease payments $ 27,332 |
Pension Plans (Tables)
Pension Plans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Funded Status Plans | The funded status of these plans for the years ended December 31, 2019, 2018 and 2017 was as follows (in thousands): 2019 2018 2017 RAP RAP RAP Change in projected benefit obligation: Projected benefit obligation, beginning of period $ 4,308 $ 4,616 $ 4,802 Service cost — — — Interest cost 4 4 5 Benefits paid (276 ) (517 ) (411 ) Actuarial (gain)/loss — 95 32 Curtailment/Settlement — — — Transfer from DBCPP to RAP — — — Currency translation adjustment 54 110 188 Projected benefit obligation, end of period $ 4,090 $ 4,308 $ 4,616 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 $ 585 $ 257 $ 488 Other noncurrent liabilities $ 3,505 $ 4,051 $ 4,128 Amount recognized in accumulated other comprehensive loss: Defined benefit pension plans adjustment $ 378 $ 373 $ 271 Accumulated benefit obligation, end of period $ 4,090 $ 4,308 $ 4,616 |
Periodic Pension Cost | Net periodic pension cost associated with these plans for the years ended December 31, 2019, 2018 and 2017 included the following components (in thousands): 2019 2018 2017 RAP RAP RAP Service cost $ — $ — $ — Interest cost 4 4 5 Other — — — Curtailment/settlement (gain) loss — — — Net periodic pension costs $ 4 $ 4 $ 5 |
Estimated Future Benefit Payments Under Plans | Estimated future benefit payments under the RAP are as follows (in thousands): 2020 $ 520 2021 610 2022 299 2023 — 2024 414 2025 - 2029 1,562 Thereafter 685 $ 4,090 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 and 2018 (in thousands): December 31, 2019 December 31, 2018 Foreign currency translation adjustments $ (7,641 ) $ (6,897 ) Unrealized loss on available-for-sale securities — — Defined benefit pension plan adjustment, net of taxes (230 ) (229 ) $ (7,871 ) $ (7,126 ) |
Restricted net assets (Tables)
Restricted net assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Restricted Net Assets [Abstract] | |
Schdule of restrictions on net assets | Restricted cash was as follows (in thousands): December 31, 2019 2018 Restricted in connection with notes payable and short-term borrowing (see Note 11) $ 2,559 $ 2,589 Restricted in connection with asset purchase agreement (see Note 9) 1,999 2,019 Restricted in connection with a current legal dispute with APAT OE (See Note 9) 5,989 5,156 Restricted in connection with government grants received in advance 425 1,289 Total restricted cash $ 10,972 $ 11,053 Reported as: Restricted cash $ 10,972 $ 11,053 $160.2 million and $160.2 million as of December 31, 2019 and December 31, 2018, respectively, which consisted of (in thousands): December 31, 2019 December 31, 2018 Cash restricted in China as a result of ongoing litigation and unfulfilled government grants $ 10,936 $ 11,018 China earnings restricted to fund statutory common reserves in China 9,240 9,005 Loan agreements in Japan requiring local subsidiaries to maintain minimum net asset levels 920 909 Total restricted net assets in the Company's consolidated subsidiaries $ 21,096 $ 20,932 |
Stock-based compensation (Table
Stock-based compensation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [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 2019 2018 2017 Weighted-average expected term (years) 6.00 6.02 5.99 Weighted-average volatility 67% 65% 65% Risk-free interest rate 1.82%-2.27% 2.27%-2.62% 2.02%-2.08% Expected dividends —% —% —% Stock appreciation units Weighted-average expected term (years) 1.52 1.94 2.30 Weighted-average volatility 64% 66% 69% Risk-free interest rate 1.63%-2.63% 1.03%-2.81% 0.51%-1.62% Expected dividends —% —% —% ESPP Weighted-average expected term (years) 0.71 0.72 0.72 Weighted-average volatility 71% 61% 61% Risk-free interest rate 1.75%-2.44% 1.93%-2.59% 0.91%-1.31% 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, 2019 2018 2017 Cost of goods sold $ 2,244 $ 2,596 $ 1,098 Research and development 3,138 3,570 2,491 Sales and marketing 2,411 3,248 1,697 General and administrative 4,663 4,728 2,920 $ 12,456 $ 14,142 $ 8,206 |
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, 2019: 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, 2018 1,102,323 3,202,745 $ 5.73 2,486,028 $ 7.87 Authorized for issuance 1,623,244 — — — — Granted (2,087,020 ) 103,001 4.34 1,974,019 4.90 Exercised/Converted — (485,832 ) 3.90 (1,018,143 ) 8.72 Cancelled/Forfeited 670,668 (221,169 ) 6.81 (270,923 ) 7.23 Balance at December 31, 2019 1,309,215 2,598,745 $ 5.93 3,170,981 $ 5.80 |
Summary of Information about Stock Options Outstanding | The following table summarizes information about stock options outstanding as of December 31, 2019: 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 2,582,127 $ 5.92 4.88 $ 8,280 Exercisable 2,351,411 $ 5.87 4.57 $ 7,723 |
Summary of Information about Restricted Stock Units Outstanding | The following table summarizes information about RSUs outstanding as of December 31, 2019: 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 2,743,267 $ — 1.35 $ 24,196 |
Stock Options - Schedule of Share-based Payment Award, Equity Instruments Other Than Options, Valuation Assumptions | The fair value of market-based RSUs was measured on the grant date using Monte Carlo simulation model with the following assumptions: Years ended December 31, 2019 2018 Weighted-average volatility 66% 66% Risk-free interest rate 2.79% 2.79% Expected dividends —% —% |
Summary of Stock Appreciation Unit Activity | The following table summarizes the Company’s stock appreciation unit activity during the year ended December 31, 2019: Stock Appreciation Units Weighted-Average Exercise Price Stock appreciation units outstanding as of December 31, 2018 192,872 $ 4.91 Stock appreciation units exercised (11,252 ) $ 3.52 Stock appreciation units canceled (18,149 ) $ 4.84 Stock appreciation units outstanding as of December 31, 2019 163,471 $ 5.01 |
Income taxes (Tables)
Income taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 2018 2017 U.S. operations $ (21,579 ) $ (43,384 ) $ (52,725 ) Non-U.S. operations 6,136 1,076 301 $ (15,443 ) $ (42,308 ) $ (52,424 ) |
Components of Provision for Income Taxes | The components of the provision for income taxes consisted of the following (in thousands): Years Ended December 31, 2019 2018 2017 Current Federal $ (71 ) $ (49 ) $ (144 ) State (3 ) 36 3 Foreign (1,854 ) (1,634 ) 363 (1,928 ) (1,647 ) 222 Deferred Federal — 42 4 State — — — Foreign 295 276 (1,135 ) Total provision $ (1,633 ) $ (1,329 ) $ (909 ) |
Difference in Provision for Income Taxes from Amount Obtained by Applying U.S. Federal Statutory Rate | The tax provision differs from the amount obtained by applying the U.S. federal statutory tax rate as follows (in thousands, except percentages): Years Ended December 31, 2019 2018 2017 Federal statutory rate 21 % 21 % 35 % Tax at federal statutory rate $ 3,255 $ 8,869 $ 18,354 State taxes, net of federal benefit (3 ) 36 2 Mandatory repatriation/Section 956 — — (5,718 ) Permanent differences 1,514 (371 ) (67 ) Stock-based compensation (1,014 ) (1,079 ) (314 ) Change in valuation allowance (5,186 ) (10,094 ) 16,273 Research and development 932 914 851 Foreign rate differences (531 ) (697 ) (2,819 ) Foreign tax credit (405 ) 49 144 Change in prior year deferred balances — 1,653 (28,262 ) Other (195 ) (609 ) 647 Total provision for income taxes from continuing operations $ (1,633 ) $ (1,329 ) $ (909 ) |
Components of Deferred Income Tax Assets and Liabilities | Deferred income tax assets and liabilities comprise the following (in thousands): December 31, 2019 2018 Deferred Tax Assets: Net operating loss carryforwards $ 54,339 $ 56,828 Federal and state credits 30,111 28,328 Reserves, accruals and other 14,132 11,265 Fixed assets and intangibles 2,783 2,398 Total deferred tax assets 101,365 98,819 Valuation allowance (92,149 ) (92,891 ) Total deferred tax assets, net of valuation allowance 9,216 5,928 Less deferred tax liabilities: Acquired intangibles (283 ) (313 ) Property, plant and equipment (4,663 ) (4,754 ) Right-of-Use Lease Assets (3,124 ) — Net deferred tax assets $ 1,146 $ 861 Reported as: Long term deferred tax assets, included within other long-term assets $ 1,674 $ 861 Long term deferred income tax liabilities, included within noncurrent liabilities (528 ) — Net deferred tax assets $ 1,146 $ 861 |
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, 2016 $ 23,606 Gross increases for tax positions of current year 1,933 Balance at December 31, 2017 25,539 Gross increases for tax positions of current year 657 Balance at December 31, 2018 26,196 Net changes in tax positions in current year (5,544 ) Balance at December 31, 2019 $ 20,652 |
Segment and geographic inform_2
Segment and geographic information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Revenue and Long-Lived Assets By Geographical Region | The following tables set forth the Company’s asset information by geographic region (in thousands): As of December 31, 2019 2018 Property, plant and equipment, net: China $ 19,230 $ 27,329 United States 26,068 29,054 Japan 25,772 29,631 Rest of world 10,063 14,076 Total $ 81,133 $ 100,090 |
Selected Quarterly Financial _2
Selected Quarterly Financial Data (unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 and 2018: Year ended December 31, 2019 First Quarter Second Quarter Third Quarter Fourth Quarter (In thousands, except per share value) Revenues $ 79,366 $ 81,690 $ 92,392 $ 103,356 Gross profit 15,737 15,675 26,199 31,202 Net income (loss) (14,091 ) (7,326 ) 2,272 2,069 Basic net income (loss) per share $ (0.30 ) $ (0.16 ) $ 0.05 $ 0.04 Diluted net income (loss) per share $ (0.30 ) $ (0.16 ) $ 0.05 $ 0.04 Weighted averages shares used to compute basic net income (loss) per share 46,414 46,754 47,666 48,358 Weighted averages shares used to compute diluted net income (loss) per share 46,414 46,754 48,615 50,238 Year ended December 31, 2018 First Quarter Second Quarter Third Quarter Fourth Quarter (In thousands, except per share value) Revenues $ 68,586 $ 81,102 $ 81,748 $ 91,104 Gross profit 9,182 15,472 18,933 22,586 Net loss (18,246 ) (10,537 ) (8,125 ) (6,729 ) Basic net loss per share $ (0.41 ) $ (0.24 ) $ (0.18 ) $ (0.15 ) Diluted net loss per share (0.41 ) (0.24 ) (0.18 ) (0.15 ) Weighted averages shares used to compute basic net loss per share 44,259 44,665 45,476 46,150 Weighted averages shares used to compute diluted net loss per share 44,259 44,665 45,476 46,150 |
Summary of significant accoun_4
Summary of significant accounting policies - Concentration of Risk (Details) - Customer Concentration Risk - Revenue from Contract with Customer | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Huawei Technologies Co., Ltd | |||
Concentration Risk [Line Items] | |||
Percentage of concentration of credit risk | 41.00% | 46.00% | 40.00% |
Ciena Corporation | |||
Concentration Risk [Line Items] | |||
Percentage of concentration of credit risk | 29.00% | 24.00% | 16.00% |
Top Five Customers | |||
Concentration Risk [Line Items] | |||
Percentage of concentration of credit risk | 84.00% | 87.00% | 78.00% |
Summary of significant accoun_5
Summary of significant accounting policies - Narrative (Details) | 12 Months Ended | |||
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Jan. 01, 2019USD ($) | |
Summary Of Significant Accounting Policies [Line Items] | ||||
Restricted cash | $ 10,972,000 | $ 11,053,000 | ||
Goodwill impairment charges | 0 | 0 | $ 0 | |
Asset impairment charges | 0 | 1,000,000 | 400,000 | |
Loss on foreign currency contracts | 2,200,000 | |||
Net gains (losses) resulting from foreign exchange transactions | $ 200,000 | $ 1,400,000 | $ (500,000) | |
Conversion of stock, shares issued ratio | 1 | |||
Operating lease right-of-use assets | $ 15,603,000 | $ 17,300,000 | ||
Operating lease, liability | $ 18,629,000 | $ 20,800,000 | ||
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 | 9 months | |||
Customer Concentration Risk | Customer One | Accounts Receivable | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Percentage of concentration of credit risk | 37.00% | 35.00% | ||
Customer Concentration Risk | Customer Two | Accounts Receivable | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Percentage of concentration of credit risk | 19.00% | 17.00% |
Summary of significant accoun_6
Summary of significant accounting policies - Estimated Useful Lives of Property, Plant and Equipment (Details) | 12 Months Ended |
Dec. 31, 2019 | |
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 |
Revenue - Revenue by Product Gr
Revenue - Revenue by Product Group (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | $ 103,356 | $ 92,392 | $ 81,690 | $ 79,366 | $ 91,104 | $ 81,748 | $ 81,102 | $ 68,586 | $ 356,804 | $ 322,540 | $ 292,894 |
High Speed Products | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 323,804 | 275,803 | 241,780 | ||||||||
Network Products and Solutions | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | $ 33,000 | $ 46,737 | $ 51,114 |
Revenue - Revenue From External
Revenue - Revenue From External Customers By Geographic Region (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | $ 103,356 | $ 92,392 | $ 81,690 | $ 79,366 | $ 91,104 | $ 81,748 | $ 81,102 | $ 68,586 | $ 356,804 | $ 322,540 | $ 292,894 |
China | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 186,157 | 187,277 | 161,637 | ||||||||
Americas | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 82,741 | 70,906 | 52,973 | ||||||||
Rest of world | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | $ 87,906 | $ 64,357 | $ 78,284 |
Revenue - Narrative (Details)
Revenue - Narrative (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | ||
Increase (decrease) in deferred revenue | $ 0 | |
Deferred revenue | $ 1,100,000 | |
Contract with customer, liability, revenue recognized | 1,100,000 | 900,000 |
Contract assets | $ 0 | $ 0 |
Cash, cash equivalents, short_3
Cash, cash equivalents, short-term investments and restricted cash - Short Term Investments and Restricted Cash and Investments (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Cash and cash equivalents: | ||||
Cash | $ 70,467 | $ 58,185 | ||
Cash equivalents | 0 | 0 | ||
Cash and cash equivalents | 70,467 | 58,185 | ||
Short-term investments | 7,638 | 7,481 | ||
Cash and cash equivalents | 70,467 | 58,185 | ||
Restricted cash | 10,972 | 11,053 | ||
Total cash, cash equivalents and restricted cash shown in the consolidated statement of cash flows | $ 81,439 | $ 69,238 | $ 81,564 | $ 86,585 |
Cash, cash equivalents, short_4
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, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 7,638 | $ 7,481 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Loss | 0 | 0 |
Fair Value | 7,638 | 7,481 |
Short-term investments | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 7,638 | 7,481 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Loss | 0 | 0 |
Fair Value | 7,638 | 7,481 |
Money market funds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 7,638 | 7,481 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Loss | 0 | 0 |
Fair Value | $ 7,638 | $ 7,481 |
Cash, cash equivalents, short_5
Cash, cash equivalents, short-term investments and restricted cash - Maturities of Marketable Securities and Additional Information (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Cash and Cash Equivalents [Abstract] | ||
Less than 1 year | $ 7,638 | $ 7,481 |
Due in 1 to 2 years | 0 | 0 |
Due in 3 to 5 years | 0 | 0 |
Total | $ 7,638 | $ 7,481 |
Cash, cash equivalents, short_6
Cash, cash equivalents, short-term investments and restricted cash - Narrative (Details) | 12 Months Ended | ||
Dec. 31, 2019USD ($)investment | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
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 | investment | 0 |
Fair value measurements - Asset
Fair value measurements - Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value assets | $ 7,638 | $ 7,481 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value assets | 7,638 | 7,481 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value assets | 0 | 0 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value assets | 0 | 0 |
Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value assets | 7,638 | 7,481 |
Money market funds | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value assets | 7,638 | 7,481 |
Money market funds | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value assets | 0 | 0 |
Money market funds | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value assets | 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 | 616 | 465 |
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 | 616 | 465 |
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 | 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 | $ 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 | 2,000 | |
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 | 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 | 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 | 2,000 | |
Fair Value, Measurements, Recurring | Derivative | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value assets | 2,000 | |
Fair Value, Measurements, Recurring | Derivative | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value assets | 0 | |
Fair Value, Measurements, Recurring | Derivative | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value assets | 0 | |
Fair Value, Measurements, Recurring | Derivative | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value assets | $ 2,000 |
Fair value measurements - Narra
Fair value measurements - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value assets (liabilities) | $ 7,481 | $ 7,638 |
Assets held for sale | 2,971 | 0 |
Fair Value, Measurements, Nonrecurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value assets (liabilities) | $ 0 | |
Fair Value, Measurements, Nonrecurring | Property, plant and equipment | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Asset impairment charges | 1,000 | |
Property, plant and equipment | Fair Value, Measurements, Nonrecurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets held for sale | $ 2,500 |
Net loss per share - Computatio
Net 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, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Numerator: | |||||||||||
Net loss | $ 2,069 | $ 2,272 | $ (7,326) | $ (14,091) | $ (6,729) | $ (8,125) | $ (10,537) | $ (18,246) | $ (17,076) | $ (43,637) | $ (53,333) |
Denominator: | |||||||||||
Weighted average shares used to compute per share amount, basic (in shares) | 48,358 | 47,666 | 46,754 | 46,414 | 46,150 | 45,476 | 44,665 | 44,259 | 47,304 | 45,144 | 43,431 |
Dilutive effect of equity awards (in shares) | 0 | 0 | 0 | ||||||||
Weighted average shares used to compute diluted net (loss) income (in shares) | 50,238 | 48,615 | 46,754 | 46,414 | 46,150 | 45,476 | 44,665 | 44,259 | 47,304 | 45,144 | 43,431 |
Basic net loss per share (USD per share) | $ 0.04 | $ 0.05 | $ (0.16) | $ (0.30) | $ (0.15) | $ (0.18) | $ (0.24) | $ (0.41) | $ (0.36) | $ (0.97) | $ (1.23) |
Diluted net loss per share (USD per share) | $ 0.04 | $ 0.05 | $ (0.16) | $ (0.30) | $ (0.15) | $ (0.18) | $ (0.24) | $ (0.41) | $ (0.36) | $ (0.97) | $ (1.23) |
Net loss per share - Potentiall
Net 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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share | |||
Potentially dilutive securities, excluded from computation of diluted net income (loss) per share (in shares) | 6,709 | 6,798 | 6,760 |
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 (in shares) | 2,599 | 3,203 | 3,934 |
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 (in shares) | 3,171 | 2,486 | 2,405 |
Market-based 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 (in shares) | 641 | 695 | 0 |
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 (in shares) | 298 | 414 | 421 |
Purchased intangible assets - C
Purchased intangible assets - Components (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Assets | $ 53,191 | $ 53,413 |
Accumulated Amortization | (51,040) | (50,395) |
Net Assets | 2,151 | 3,018 |
Technology and patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Assets | 36,880 | 37,029 |
Accumulated Amortization | (35,555) | (34,995) |
Net Assets | 1,325 | 2,034 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Assets | 15,089 | 15,146 |
Accumulated Amortization | (15,089) | (15,026) |
Net Assets | 0 | 120 |
Leasehold interest | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Assets | 1,222 | 1,238 |
Accumulated Amortization | (396) | (374) |
Net Assets | $ 826 | $ 864 |
Purchased intangible assets - A
Purchased intangible assets - Amortization Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Cost of goods sold | $ 737 | $ 756 | $ 869 |
Operating expenses | 119 | 475 | 472 |
Total | $ 856 | $ 1,231 | $ 1,341 |
Purchased intangible assets - E
Purchased intangible assets - Estimated Future Amortization Expense (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2020 | $ 736 | |
2021 | 644 | |
2022 | 27 | |
2023 | 27 | |
2024 | 27 | |
Thereafter | 690 | |
Net Assets | $ 2,151 | $ 3,018 |
Balance sheet components - Rest
Balance sheet components - Restricted Cash and Investments (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash and investments | $ 10,972 | $ 11,053 |
Restricted cash | 10,972 | 11,053 |
Restricted in connection with asset purchase agreement | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash and investments | 1,999 | 2,019 |
Restricted in connection with notes payable and short-term borrowing | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash and investments | 2,559 | 2,589 |
APAT OE Legal Dispute | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash and investments | 5,989 | |
APAT OE Legal Dispute | APAT OE Legal Dispute | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash and investments | 5,156 | |
Advances, Government Grants Received | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash and investments | $ 425 | $ 1,289 |
Balance sheet components - Acco
Balance sheet components - Accounts Receivable, Net (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Balance Sheet Related Disclosures [Abstract] | ||
Accounts receivable | $ 68,988 | $ 74,343 |
Trade notes receivable | 156 | 672 |
Allowance for doubtful accounts | (254) | (264) |
Accounts receivable, Net ,Total | $ 68,890 | $ 74,751 |
Balance sheet components - Allo
Balance sheet components - Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Reversal of provision for bad debt, net | $ 13 | $ (61) | $ (577) |
Allowance for Doubtful Accounts | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Beginning Balance | (264) | (626) | (425) |
Reversal of provision for bad debt, net | 15 | 428 | (577) |
Write-offs, net of recoveries | (5) | (66) | 376 |
Ending Balance | $ (254) | $ (264) | $ (626) |
Balance sheet components - Inve
Balance sheet components - Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Balance Sheet Related Disclosures [Abstract] | ||
Raw materials | $ 19,350 | $ 27,806 |
Work in process | 12,262 | 13,044 |
Finished goods | 15,318 | 11,309 |
Inventories | 46,930 | 52,159 |
Finished goods, at vendor managed inventory locations | $ 1,600 | $ 5,600 |
Balance sheet components - Prep
Balance sheet components - Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Balance Sheet Related Disclosures [Abstract] | ||
Prepaid taxes and taxes receivable | $ 6,979 | $ 5,461 |
Transition services agreement receivable (see Note 9) | 11,861 | 11,999 |
Deposits and other prepaid expenses | 2,512 | 3,020 |
Other receivable | 4,499 | 6,125 |
Prepaid expenses and other current assets | $ 25,851 | $ 26,605 |
Balance sheet components - Prop
Balance sheet components - Property, Plant and Equipment, net (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | $ 241,211,000 | $ 246,483,000 | |
Less: Accumulated depreciation | (160,078,000) | (146,393,000) | |
Property, plant and equipment, net | 81,133,000 | 100,090,000 | |
Depreciation expense | 27,700,000 | 29,900,000 | $ 27,000,000 |
Asset impairment charges | 0 | 1,000,000 | 400,000 |
Purchases of property, plant and equipment, unpaid | 1,900,000 | 1,500,000 | 10,000,000 |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | 3,197,000 | 3,157,000 | |
Buildings | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | 23,624,000 | 23,379,000 | |
Asset impairment charges | $ 100,000 | ||
Machinery and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | 181,596,000 | 187,746,000 | |
Furniture, fixtures, software and office equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | 10,736,000 | 10,201,000 | |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | $ 22,058,000 | $ 22,000,000 |
Balance sheet components - Accr
Balance sheet components - Accrued and Other Current Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Balance Sheet Related Disclosures [Abstract] | ||
Employee-related | $ 17,877 | $ 14,899 |
Transition services agreement payables (see Note 9) | 11,765 | 11,769 |
Asset sale related contingent liabilities (see Note 9) | 6,664 | 6,751 |
Operating lease liabilities, current | 2,086 | |
Income and other taxes payable | 2,036 | 1,580 |
Deferred revenue, current | 0 | 1,114 |
Accrued warranty | 712 | 672 |
Rusnano payment derivative | 0 | 2,000 |
Accrued litigation settlement | 0 | 2,645 |
Other accrued expenses | 6,341 | 8,858 |
Accrued and other current liabilities | $ 47,481 | $ 50,288 |
Balance sheet components - Ac_2
Balance sheet components - Accrued Warranty (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease) [Roll Forward] | |||
Beginning balance | $ 672 | $ 1,334 | $ 678 |
Warranty accruals | 782 | 399 | 1,263 |
Settlements | (742) | (1,061) | (607) |
Ending balance | $ 712 | $ 672 | $ 1,334 |
Balance sheet components - Othe
Balance sheet components - Other Noncurrent LIabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2016 | |
Balance Sheet Related Disclosures [Abstract] | |||
Pension and other employee-related | $ 4,125 | $ 4,529 | |
Deferred rent | 3,058 | ||
Government grant | 1,380 | 2,108 | |
Deferred income tax liabilities | 528 | 0 | |
Capital lease obligation | 282 | ||
Asset retirement obligations | 3,529 | 3,391 | $ 3,100 |
Other | 52 | 131 | |
Other noncurrent liabilities | 9,614 | $ 13,499 | |
Accretion of asset retirement obligations | $ 200 |
Asset sale (Details)
Asset sale (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Jan. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Apr. 30, 2019 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Restructuring charges | $ 261 | $ 3,135 | $ 3,934 | ||
Assets held for sale | 0 | 2,971 | |||
Gain within operating income | 903 | (200) | 2,193 | ||
Warranty reserve | 6,700 | ||||
Joint Stock Company Rusnano | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Accrued payment derivative, amount | $ 2,000 | ||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | APAT OE | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Consideration received pursuant to asset purchase agreement | $ 25,000 | ||||
Gain within operating income | $ 2,200 | ||||
Proceeds from post-closing transaction services fees under transition services agreement | $ 1,400 | ||||
Receivables | 11,900 | ||||
Payables | $ 11,800 | ||||
NeoPhotonics Corporation, LLC | Disposal Group, Disposed of by Sale, Not Discontinued Operations | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Percent of interest to be disposed | 100.00% | ||||
Restructuring charges | $ 1,600 | ||||
Assets held for sale | $ 3,000 | ||||
Ownership interest disposed | 100.00% | ||||
Consideration received pursuant to asset purchase agreement | $ 2,000 | ||||
Exit fee settlements | $ 2,000 |
Restructuring (Details)
Restructuring (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2019 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ 261 | |||
Write-down of inventories | 7,847 | $ 6,133 | $ 8,349 | |
Restructuring Reserve [Roll Forward] | ||||
Restructuring obligations December 31, 2018 | 2,816 | |||
Charges | 261 | |||
Cash payments | (846) | |||
Non-cash settlements and other | (2,231) | |||
Restructuring obligations December 31, 2019 | 0 | 2,816 | ||
Operating lease, liability | 18,629 | $ 20,800 | ||
Employee Severance | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 88 | |||
Restructuring Reserve [Roll Forward] | ||||
Restructuring obligations December 31, 2018 | 436 | |||
Charges | 88 | |||
Cash payments | (524) | |||
Non-cash settlements and other | 0 | |||
Restructuring obligations December 31, 2019 | 0 | 436 | ||
Facilities Consolidation | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 0 | |||
Restructuring Reserve [Roll Forward] | ||||
Restructuring obligations December 31, 2018 | 769 | |||
Charges | 0 | |||
Cash payments | (149) | |||
Non-cash settlements and other | (620) | |||
Restructuring obligations December 31, 2019 | 0 | 769 | ||
Operating lease, liability | 600 | |||
Others | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 173 | |||
Restructuring Reserve [Roll Forward] | ||||
Restructuring obligations December 31, 2018 | 1,611 | |||
Charges | 173 | |||
Cash payments | (173) | |||
Non-cash settlements and other | (1,611) | |||
Restructuring obligations December 31, 2019 | 0 | 1,611 | ||
Operating lease, liability | 1,600 | |||
Operating Expense | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 300 | 3,100 | ||
Restructuring Reserve [Roll Forward] | ||||
Charges | $ 300 | 3,100 | ||
Cost of goods sold | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 200 | |||
Write-down of inventories | $ 2,000 | |||
Restructuring Reserve [Roll Forward] | ||||
Charges | $ 200 |
Debt - Components of Debt, Obli
Debt - Components of Debt, Obligations, Weighted Average Interest Rate (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Total notes payable and short-term borrowing | $ 0 | $ 4,795 |
Total long-term debt, net of unaccreted discount and issuance costs | 42,281 | 53,351 |
Current portion of long-term debt | 3,044 | 2,897 |
Long-term debt, net of current portion | 39,237 | 50,454 |
Long Term Debt Current | ||
Debt Instrument [Line Items] | ||
Finance lease liability | 275 | |
Long Term Debt Non Current | ||
Debt Instrument [Line Items] | ||
Unaccreted discount and issuance costs | (446) | (602) |
Line of Credit | Wells Fargo Credit Facility | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 27,329 | $ 35,961 |
Interest Rate | 3.72% | 4.41% |
Mitsubishi Bank | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 9,255 | $ 11,094 |
Mitsubishi Bank | Minimum | ||
Debt Instrument [Line Items] | ||
Interest Rate | 1.04% | 1.05% |
Mitsubishi Bank | Maximum | ||
Debt Instrument [Line Items] | ||
Interest Rate | 1.44% | 1.45% |
Notes Payable to Banks | Mitsubishi Bank Loans And Yamanashi Chou Bank Loans | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 5,868 | $ 6,898 |
Interest Rate | 1.07% | 1.10% |
Notes Payable | ||
Debt Instrument [Line Items] | ||
Total notes payable and short-term borrowing | $ 0 | $ 4,795 |
Debt - Narrative (Details)
Debt - Narrative (Details) | Feb. 25, 2015JPY (¥) | Aug. 31, 2018USD ($) | Feb. 28, 2018USD ($) | Jan. 31, 2018USD ($) | Jan. 31, 2018JPY (¥) | Dec. 31, 2017USD ($) | Nov. 30, 2017USD ($) | Sep. 30, 2017USD ($) | Jul. 31, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2019USD ($)debt_instrument | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2019JPY (¥) | Dec. 31, 2019CNY (¥) | Jun. 14, 2019USD ($) | Jan. 31, 2018JPY (¥) | Dec. 31, 2017CNY (¥) | Jun. 30, 2017USD ($) | Mar. 31, 2017JPY (¥) | Feb. 25, 2015USD ($) | Feb. 25, 2015JPY (¥) |
Debt Instrument [Line Items] | ||||||||||||||||||||||
Repayment of notes payable | $ 4,774,000 | $ 3,732,000 | $ 11,639,000 | |||||||||||||||||||
Long-term debt | 42,281,000 | $ 53,351,000 | ||||||||||||||||||||
Accrued interest rolled into principal amount | 1,400,000 | |||||||||||||||||||||
Comerica | Revolving Credit Facility | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Current borrowing capacity | $ 30,000,000 | 30,000,000 | ||||||||||||||||||||
Mitsubishi Bank | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Short-term line of credit facility | ¥ | ¥ 516,700,000 | |||||||||||||||||||||
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 | Libor Plus Rate | Comerica | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Debt instrument, basis spread | 2.75% | |||||||||||||||||||||
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 | |||||||||||||||||||||
Short-term line of credit facility | 30,000,000 | |||||||||||||||||||||
Repayments of lines of credit | 10,000,000 | |||||||||||||||||||||
Outstanding balance of line of credit facilities | $ 27,300,000 | |||||||||||||||||||||
Line of credit facility, maximum indebtedness under debt covenant | $ 20,000,000 | |||||||||||||||||||||
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 | |||||||||||||||||||||
Unused borrowing capacity | $ 5,000,000 | $ 5,000,000 | ||||||||||||||||||||
Interest rate | 3.72% | 4.41% | 3.72% | 3.72% | ||||||||||||||||||
Line of credit remaining borrowing capacity | $ 10,400,000 | |||||||||||||||||||||
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% | |||||||||||||||||||||
Term Loan B | Mitsubishi Bank | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Debt, aggregate principal amount | 9,200,000 | 1,000,000,000 | ||||||||||||||||||||
Debt, periodic principal payments | ¥ | ¥ 8,300,000 | |||||||||||||||||||||
Debt, lump sum payment on the maturity date | ¥ | ¥ 8,400,000 | |||||||||||||||||||||
Debt issuance costs | $ 400,000 | ¥ 40,500,000 | ||||||||||||||||||||
Term Loan B | 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 | 4,800,000 | |||||||||||||||||||||
Repayments of lines of credit | $ 4,400,000 | ¥ 500,000,000 | ||||||||||||||||||||
Mitsubishi Bank Loans | Notes Payable to Banks | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Unamortized debt issuance costs | 400,000 | ¥ 48,500,000 | ||||||||||||||||||||
Mitsubishi Bank Loan 2017 | Notes Payable to Banks | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Short-term line of credit facility | $ 6,400,000 | ¥ 690,000,000 | ||||||||||||||||||||
Debt, aggregate principal amount | $ 6,400,000 | ¥ 690,000,000 | ||||||||||||||||||||
Debt instrument term | 72 months | 72 months | ||||||||||||||||||||
Long-term debt | 4,500,000 | 488,800,000 | ||||||||||||||||||||
Mitsubishi Bank Loan 2017 | Tokyo Interbank Offered Rate (TIBOR) | Notes Payable to Banks | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Debt instrument, basis spread | 1.00% | |||||||||||||||||||||
Term Loan C | Mitsubishi Bank and The Tamanashi Chou Ban, Ltd. | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Line of credit maximum borrowing capacity | $ 7,800,000 | ¥ 850,000,000 | ||||||||||||||||||||
Debt instrument term | 82 months | 82 months | ||||||||||||||||||||
Long-term debt | 5,900,000 | ¥ 637,500,000 | ||||||||||||||||||||
Term Loan C | Tokyo Interbank Offered Rate (TIBOR) | Mitsubishi Bank and The Tamanashi Chou Ban, Ltd. | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Debt instrument, basis spread | 1.00% | 1.00% | ||||||||||||||||||||
Notes Payable | Second Line Of Credit, Expires July 2019 | Subsidiary in China | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Short-term line of credit facility | 4,300,000 | ¥ 30,000,000 | ||||||||||||||||||||
Bankers Acceptance | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Restricted cash and investments, current | 2,500,000 | $ 2,600,000 | ||||||||||||||||||||
Bankers Acceptance | Subsidiary in China | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Outstanding balance of line of credit facilities | $ 0 | $ 4,800,000 | ||||||||||||||||||||
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 | 50.00% | |||||||||||||||||||||
Short-term line of credit facility | $ 8,600,000 | 60,000,000 | ||||||||||||||||||||
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 | |||||||||||||||||||||
Notes Payable to Banks | Note payable to China CITIC Bank | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Borrowing on line of credit | $ 17,000,000 | $ 17,000,000 | ||||||||||||||||||||
Debt instrument, basis spread | 2.55% | |||||||||||||||||||||
Stated interest rate | 4.70% | |||||||||||||||||||||
Repayments of lines of credit | $ 17,000,000 | |||||||||||||||||||||
China | CITIC Bank | Line of Credit | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Line of credit maximum borrowing capacity | 35,900,000 | 35,900,000 | ¥ 250,000,000 | |||||||||||||||||||
China | CITIC Bank | Bank Acceptance Drafts | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Line of credit maximum borrowing capacity | $ 56,100,000 | $ 56,100,000 | ¥ 390,600,000 | |||||||||||||||||||
Percentage of compensating balance requirement for bank acceptance drafts | 36.00% | |||||||||||||||||||||
China | First Credit Facility Expires June 2016 | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Percentage of compensating balance requirement for bank acceptance drafts | 50.00% | |||||||||||||||||||||
China | Notes Payable | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Number of credit facilities | debt_instrument | 2 | |||||||||||||||||||||
China | Notes Payable | First Credit Facility Expires June 2016 | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Short-term line of credit facility | $ 17,200,000 | 120,000,000 | ||||||||||||||||||||
Borrowing on line of credit | $ 17,000,000 | |||||||||||||||||||||
China | Bankers Acceptance | First Credit Facility Expires June 2016 | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Line of credit maximum borrowing capacity | $ 34,400,000 | ¥ 240,000,000 | ||||||||||||||||||||
Debt instrument, basis spread | 4.10% | |||||||||||||||||||||
China | Notes Payable to Banks | Note payable to China CITIC Bank | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Repayments of lines of credit | $ 17,000,000 | |||||||||||||||||||||
United States | Wells Fargo Credit Facility | Line of Credit | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Liquidity requirements under line of credit facility | 30,000,000 | |||||||||||||||||||||
Non-US | Wells Fargo Credit Facility | Line of Credit | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Liquidity requirements under line of credit facility | $ 40,000,000 | |||||||||||||||||||||
Minimum | Mitsubishi Bank | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Interest rate | 1.04% | 1.05% | 1.04% | 1.04% | ||||||||||||||||||
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 | 1.44% | 1.45% | 1.44% | 1.44% | ||||||||||||||||||
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% |
Debt - Maturities of Long-Term
Debt - Maturities of Long-Term debt (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Debt Disclosure [Abstract] | |
2020 | $ 3,192 |
2021 | 3,192 |
2022 | 30,511 |
2023 | 3,097 |
2024 | 2,303 |
Thereafter | 432 |
Long Term Debt | $ 42,727 |
Leases - Narrative (Details)
Leases - Narrative (Details) ft² in Thousands, $ in Thousands | Jun. 13, 2017USD ($)ft² | Sep. 30, 2016USD ($)ft² | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Lessee, Lease, Description [Line Items] | |||||
Termination period | 1 year | ||||
Office lease term, months | 123 months | 129 months | |||
Expected lease restoration charges | $ 3,100 | $ 3,529 | $ 3,391 | ||
Operating leases, rent expense | $ 4,200 | $ 4,600 | |||
Office Building | |||||
Lessee, Lease, Description [Line Items] | |||||
Net rentable area | ft² | 39 | ||||
Monthly rental rate | $ 41 | ||||
Expected lease restoration charges | 700 | ||||
Office Building and Laboratory | |||||
Lessee, Lease, Description [Line Items] | |||||
Area of office lease | ft² | 64 | ||||
Lease, period free of charge | 9 months | ||||
Minimum | |||||
Lessee, Lease, Description [Line Items] | |||||
Remaining lease term | 1 year | ||||
Minimum | Office Building and Laboratory | |||||
Lessee, Lease, Description [Line Items] | |||||
Office lease, monthly rental rate | $ 144 | ||||
Maximum | |||||
Lessee, Lease, Description [Line Items] | |||||
Remaining lease term | 7 years | ||||
Maximum | Office Building | |||||
Lessee, Lease, Description [Line Items] | |||||
Monthly rental rate | $ 73 | ||||
Maximum | Office Building and Laboratory | |||||
Lessee, Lease, Description [Line Items] | |||||
Office lease, monthly rental rate | $ 194 |
Leases - Lease Cost (Details)
Leases - Lease Cost (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating lease cost | $ 3,026 |
Variable and short-term lease cost | 1,482 |
Total lease cost | $ 4,508 |
Leases - Cash Flows (Details)
Leases - Cash Flows (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Cash paid for amounts included in the measurement of lease liabilities: | |
Operating cash flows from operating leases | $ 3,600 |
Right-of-use assets obtained in exchange for lease obligations: | |
Right-of-use assets obtained in exchange for lease obligations: Operating leases | $ 136 |
Weighted average remaining lease term (in years) | |
Weighted average remaining lease term, Operating leases | 7 years 4 months 24 days |
Weighted average discount rate | |
Weighted average discount rate, Operating leases | 6.40% |
Leases - Leases, Liability, Mat
Leases - Leases, Liability, Maturity (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Jan. 01, 2019 |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | ||
2020 | $ 3,227 | |
2021 | 3,099 | |
2022 | 3,094 | |
2023 | 3,043 | |
2023 | 2,944 | |
Thereafter | 8,257 | |
Total future minimum lease payments | 23,664 | |
Less imputed interest | (5,035) | |
Total | $ 18,629 | $ 20,800 |
Leases - Balance Sheet Informat
Leases - Balance Sheet Information (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Jan. 01, 2019 |
Leases [Abstract] | ||
Accrued and other current liabilities | $ 2,086 | |
Operating lease liabilities, noncurrent | 16,543 | |
Total | $ 18,629 | $ 20,800 |
Leases Leases - Future Minimum
Leases Leases - Future Minimum Payments under Topic 840 (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Leases [Abstract] | |
2019 | $ 3,618 |
2020 | 3,113 |
2021 | 3,059 |
2022 | 3,056 |
2023 | 3,049 |
Thereafter | 11,437 |
Total future minimum lease payments | $ 27,332 |
Pension Plans - Narrative (Deta
Pension Plans - Narrative (Details) $ in Thousands | 12 Months Ended | ||||||
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2016USD ($) | May 31, 2014USD ($) | Dec. 31, 2013defined_benfit_plan | |
Defined Benefit Plan Disclosure [Line Items] | |||||||
Number of defined benefit plans | defined_benfit_plan | 2 | ||||||
Plan assets | $ 0 | $ 0 | $ 0 | $ 0 | |||
Cost of goods sold | 267,991 | 256,367 | 231,415 | ||||
Operating expenses | $ 103,355 | $ 107,831 | $ 112,843 | ||||
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Change in projected benefit obligation: | |||
Projected benefit obligation, beginning of period | $ 4,308 | $ 4,616 | $ 4,802 |
Service cost | 0 | 0 | 0 |
Interest cost | 4 | 4 | 5 |
Benefits paid | (276) | (517) | (411) |
Actuarial (gain)/loss | 0 | 95 | 32 |
Curtailment/Settlement | 0 | 0 | 0 |
Transfer from DBCPP to RAP | 0 | 0 | 0 |
Currency translation adjustment | 54 | 110 | 188 |
Projected benefit obligation, end of period | 4,090 | 4,308 | 4,616 |
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 fair value, end of period | 0 | 0 | 0 |
Amounts recognized in consolidated balance sheets: | |||
Accrued and other current liabilities | 585 | 257 | 488 |
Other noncurrent liabilities | 3,505 | 4,051 | 4,128 |
Amount recognized in accumulated other comprehensive loss: | |||
Defined benefit pension plans adjustment | 378 | 373 | 271 |
Accumulated benefit obligation, end of period | $ 4,090 | $ 4,308 | $ 4,616 |
Pension Plans - Periodic Pensio
Pension Plans - Periodic Pension Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |||
Service cost | $ 0 | $ 0 | $ 0 |
Interest cost | 4 | 4 | 5 |
Other | 0 | 0 | 0 |
Curtailment/settlement (gain) loss | 0 | 0 | 0 |
Net periodic pension costs | $ 4 | $ 4 | $ 5 |
Pension Plans - Estimated Futur
Pension Plans - Estimated Future Benefit Payments Under Plans (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Retirement Benefits [Abstract] | ||||
2020 | $ 520 | |||
2021 | 610 | |||
2022 | 299 | |||
2023 | 0 | |||
2024 | 414 | |||
2025 - 2029 | 1,562 | |||
Thereafter | 685 | |||
Defined benefit plan, benefit obligation | $ 4,090 | $ 4,308 | $ 4,616 | $ 4,802 |
Pension Plans - 401 (k) Plan (D
Pension Plans - 401 (k) Plan (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |||
Matching contributions to 401(k) plan | $ 0.5 | $ 0.4 | $ 0.5 |
Commitments and contingencies (
Commitments and contingencies (Details) ¥ in Thousands | Jan. 31, 2019USD ($) | Oct. 25, 2017USD ($) | Oct. 25, 2017CNY (¥) | Jun. 16, 2017USD ($) | Dec. 27, 2016USD ($) | Dec. 31, 2019USD ($) | Aug. 31, 2019USD ($) | Feb. 28, 2019USD ($) | Feb. 28, 2019CNY (¥) | Jan. 31, 2019USD ($) | Dec. 31, 2018USD ($)lawsuit | Dec. 31, 2018CNY (¥)lawsuit | Nov. 30, 2018USD ($) | Nov. 30, 2018CNY (¥) | Jul. 31, 2018USD ($) | Apr. 30, 2018USD ($) | Nov. 30, 2016lawsuit | Dec. 31, 2019USD ($) | Dec. 31, 2010lawsuitclaim | Dec. 31, 2017USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2012USD ($) |
Commitments And Contingencies Disclosure [Line Items] | ||||||||||||||||||||||
Number of defendants | lawsuit | 4 | |||||||||||||||||||||
Total outstanding purchase obligations | $ 62,100,000 | $ 62,100,000 | ||||||||||||||||||||
Fair value of derivative | $ 2,000,000 | $ 400,000 | ||||||||||||||||||||
Russian federation | ||||||||||||||||||||||
Commitments And Contingencies Disclosure [Line Items] | ||||||||||||||||||||||
Exit fees for future | 2,000,000 | |||||||||||||||||||||
Embedded Derivative Financial Instruments | Maximum | ||||||||||||||||||||||
Commitments And Contingencies Disclosure [Line Items] | ||||||||||||||||||||||
Other non-current liability | $ 5,000,000 | |||||||||||||||||||||
Indemnification Agreement | ||||||||||||||||||||||
Commitments And Contingencies Disclosure [Line Items] | ||||||||||||||||||||||
Payment for legal settlement | $ 0 | |||||||||||||||||||||
Performance guarantee | Private Placement | ||||||||||||||||||||||
Commitments And Contingencies Disclosure [Line Items] | ||||||||||||||||||||||
Other non-current liability | $ 6,700,000 | $ 30,000,000 | ||||||||||||||||||||
Rusnano Group | NeoPhotonics Corporation, LLC | Disposal Group, Not Discontinued Operations | ||||||||||||||||||||||
Commitments And Contingencies Disclosure [Line Items] | ||||||||||||||||||||||
Ownership to be disposed | 100.00% | |||||||||||||||||||||
Consideration received pursuant to asset purchase agreement | $ 3,000,000 | |||||||||||||||||||||
Penalty payment cancellation | $ 1,000,000 | |||||||||||||||||||||
Oyster Communications, Inc. | ||||||||||||||||||||||
Commitments And Contingencies Disclosure [Line Items] | ||||||||||||||||||||||
New claims filed, number | lawsuit | 9 | |||||||||||||||||||||
Finisar Corp | ||||||||||||||||||||||
Commitments And Contingencies Disclosure [Line Items] | ||||||||||||||||||||||
Pending claims | claim | 2 | |||||||||||||||||||||
Lestina International Ltd. litigation | ||||||||||||||||||||||
Commitments And Contingencies Disclosure [Line Items] | ||||||||||||||||||||||
Damages sought, value | $ 3,000,000 | |||||||||||||||||||||
Lawsuit Filed by Lestina International Ltd. | NeoPhotonics Dongguan Co., Ltd | Lestina International Ltd. | ||||||||||||||||||||||
Commitments And Contingencies Disclosure [Line Items] | ||||||||||||||||||||||
Loss contingency, damages awarded, value | $ 2,200,000 | |||||||||||||||||||||
APAT OE Legal Dispute | ||||||||||||||||||||||
Commitments And Contingencies Disclosure [Line Items] | ||||||||||||||||||||||
Damages sought, value | $ 20,000,000 | |||||||||||||||||||||
APAT OE Legal Dispute | APAT OE | ||||||||||||||||||||||
Commitments And Contingencies Disclosure [Line Items] | ||||||||||||||||||||||
New claims filed, number | lawsuit | 2 | 2 | ||||||||||||||||||||
APAT OE and NeoChina | ||||||||||||||||||||||
Commitments And Contingencies Disclosure [Line Items] | ||||||||||||||||||||||
Damages sought, value | $ 7,600,000 | ¥ 50,900 | ||||||||||||||||||||
Assets ordered to be preserved | $ 3,800,000 | $ 3,800,000 | $ 29,000,000 | |||||||||||||||||||
Claim Against APAT OE and Zheijiang Merchants Property Insurance Company | NeoChina | ||||||||||||||||||||||
Commitments And Contingencies Disclosure [Line Items] | ||||||||||||||||||||||
Damages sought, value | $ 52,000 | ¥ 350 | ||||||||||||||||||||
APAT Arbitration | ||||||||||||||||||||||
Commitments And Contingencies Disclosure [Line Items] | ||||||||||||||||||||||
Damages sought, value | $ 1,500,000 | $ 8,100,000 | $ 7,100,000 | $ 7,800,000 | $ 12,000,000 | |||||||||||||||||
Damages awarded to company | $ 110,000 | ¥ 700 | ||||||||||||||||||||
Attorney fees | $ 121,000 | ¥ 810 | ||||||||||||||||||||
Cisco Settlement Agreement | ||||||||||||||||||||||
Commitments And Contingencies Disclosure [Line Items] | ||||||||||||||||||||||
Loss contingency, damages awarded, value | $ 300,000 | |||||||||||||||||||||
Amount awarded to other party, production credits | $ 200,000 |
Stockholders' Equity - Common S
Stockholders' Equity - Common Stock, Resale Registration Statement, and Follow-on Public Offering (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Aug. 31, 2019 | |
Class of Stock [Line Items] | ||||
Stock issued during period (in shares) | 441,410 | |||
Stock issued during period | $ 2,500 | |||
Reclassified out of accumulated other comprehensive loss for realized gains or losses on available for sale securities | 0 | $ 0 | $ 0 | |
Retained earnings subject to restriction | $ 9,200 | $ 9,000 | ||
Minimum | ||||
Class of Stock [Line Items] | ||||
Accumulated profits | 10.00% | |||
Vendor | ||||
Class of Stock [Line Items] | ||||
Common stock reserved for future issuance (in shares) | 103,734 | |||
Common stock, capital shares reserved for future issuance | $ 4,500 | |||
Employee stock options | ||||
Class of Stock [Line Items] | ||||
Common stock reserved for future issuance (in shares) | 7,720,441 | |||
Employee stock purchase plan | ||||
Class of Stock [Line Items] | ||||
Common stock reserved for future issuance (in shares) | 1,717,211 |
Stockholders' Equity - Accumula
Stockholders' Equity - Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Stockholders' equity | $ 160,206 | $ 160,240 | $ 194,451 | $ 225,405 |
Foreign currency translation adjustments | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Stockholders' equity | (7,641) | (6,897) | ||
Unrealized loss on available-for-sale securities | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Stockholders' equity | 0 | 0 | ||
Defined benefit pension plan adjustment, net of taxes | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Stockholders' equity | 230 | 229 | ||
AOCI Attributable to Parent | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Stockholders' equity | $ (7,871) | $ (7,126) | $ 398 | $ (8,401) |
Restricted net assetS (Details)
Restricted net assetS (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Total restricted net assets in the Company's consolidated subsidiaries | $ 21,096 | $ 20,932 |
Consolidated net assets | 160,200 | 160,200 |
Cash restricted in China as a result of ongoing litigation and unfulfilled government grants | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Total restricted net assets in the Company's consolidated subsidiaries | 10,936 | 11,018 |
China earnings restricted to fund statutory common reserves in China | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Total restricted net assets in the Company's consolidated subsidiaries | 9,240 | 9,005 |
Loan agreements in Japan requiring local subsidiaries to maintain minimum net asset levels | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Total restricted net assets in the Company's consolidated subsidiaries | $ 920 | $ 909 |
Stock-based compensation - Narr
Stock-based compensation - Narrative (Details) $ / shares in Units, $ in Thousands | Jan. 01, 2017 | Jan. 30, 2016 | Dec. 18, 2014USD ($)installment$ / sharesshares | Feb. 28, 2011shares | Apr. 30, 2010shares | Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2016USD ($) | Dec. 31, 2015$ / sharesshares | Dec. 31, 2014$ / shares | Jun. 30, 2019shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Remitted cash to appropriate tax authorities | $ | $ 733 | $ 954 | $ 998 | |||||||||
Stock Appreciation Units (SARs) | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Options to purchase shares, outstanding (in shares) | 163,471 | 192,872 | ||||||||||
Intrinsic value of options exercised | $ | $ 100 | $ 100 | 200 | |||||||||
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) | $ | $ 200 | (100) | ||||||||||
Stock grants vested value | $ | $ 0 | $ 0 | ||||||||||
Employee stock options | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Options to purchase shares, outstanding (in shares) | 2,598,745 | 3,202,745 | ||||||||||
Shares available for future grant (in shares) | 1,309,215 | 1,102,323 | ||||||||||
Authorized for issuance (in shares) | 1,623,244 | |||||||||||
Unrecognized stock-based compensation expense | $ | $ 800 | |||||||||||
Fair value of options vested | $ | 1,600 | $ 2,300 | 1,500 | |||||||||
Intrinsic value of options exercised | $ | $ 1,300 | $ 2,400 | $ 3,000 | |||||||||
Weighted-average fair value of options granted (USD per share) | $ / shares | $ 2.68 | $ 4.03 | $ 4.43 | |||||||||
Remaining weighted-average period | 1 year 2 months 12 days | |||||||||||
Stock Option and Restricted Stock Unit Activity | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Restricted stock units (in shares) | 600,000 | |||||||||||
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) | 3,170,981 | 2,486,028 | ||||||||||
Unrecognized stock-based compensation expense | $ | $ 12,300 | |||||||||||
Remaining weighted-average period | 2 years 4 months 24 days | |||||||||||
Restricted stock units (in shares) | 1,974,019 | |||||||||||
Weighted-average fair value granted (USD per share) | $ / shares | $ 4.90 | $ 6.83 | $ 7.86 | |||||||||
Stock grants vested value | $ | $ 8,900 | $ 9,800 | $ 7,600 | |||||||||
Aggregate intrinsic value, vested | $ | $ 4,700 | $ 7,400 | $ 6,400 | |||||||||
Common stock withheld shares (in shares) | 155,267 | 147,572 | 126,999 | |||||||||
Remitted cash to appropriate tax authorities | $ | $ 700 | $ 1,000 | $ 1,000 | |||||||||
Vested (in shares) | 1,018,143 | |||||||||||
Market-based Restricted Stock Units | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Awards expiration period from date of grant | 7 years | |||||||||||
Remaining weighted-average period | 1 year | |||||||||||
Restricted stock units (in shares) | 10,000 | 695,000 | ||||||||||
Weighted-average fair value granted (USD per share) | $ / shares | $ 4.86 | $ 5.82 | ||||||||||
Canceled during period | 63,500 | 0 | ||||||||||
Vested (in shares) | 0 | 0 | ||||||||||
Employee service share-based compensation, nonvested awards, compensation not yet recognized, stock options | $ | $ 1,300 | |||||||||||
Remaining contractual term | 5 years 7 months 6 days | |||||||||||
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 | $ 600 | ||||||||||
2004 Stock Option Plan | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Options to purchase shares, outstanding (in shares) | 65,644 | |||||||||||
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) | 13,471 | |||||||||||
2010 Equity Incentive Plan | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Shares available for future grant (in shares) | 1,093,354 | |||||||||||
Shares outstanding (in shares) | 5,831,720 | |||||||||||
Awards expiration period from date of grant | 10 years | |||||||||||
Maximum aggregate number of shares of common stock that may be issued (in shares) | 865,420 | 8,000,000 | ||||||||||
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) | 1,717,211 | |||||||||||
Maximum aggregate number of shares of common stock that may be issued (in shares) | 342,568 | 600,000 | 1,500,000 | |||||||||
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) | 215,861 | |||||||||||
Shares outstanding (in shares) | 513,862 | |||||||||||
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 | |||||||||||
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 | |||||||||||
Period 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 | 50.00% | 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 - Assu
Stock-based compensation - Assumptions (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Employee stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted-average expected term (years) | 6 years | 6 years 7 days | 5 years 11 months 26 days |
Weighted-average volatility | 67.00% | 65.00% | 65.00% |
Risk-free interest rate Minimum | 1.82% | 2.27% | 2.02% |
Risk-free interest rate Maximum | 2.27% | 2.62% | 2.08% |
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) | 1 year 6 months 7 days | 1 year 11 months 8 days | 2 years 3 months 18 days |
Weighted-average volatility | 64.00% | 66.00% | 69.00% |
Risk-free interest rate Minimum | 1.63% | 1.03% | 0.51% |
Risk-free interest rate Maximum | 2.63% | 2.81% | 1.62% |
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) | 21 days | 21 days | 21 days |
Weighted-average volatility | 71.00% | 61.00% | 61.00% |
Risk-free interest rate Minimum | 1.75% | 1.93% | 0.91% |
Risk-free interest rate Maximum | 2.44% | 2.59% | 1.31% |
Expected dividends | 0.00% | 0.00% | 0.00% |
Market-based restricted stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted-average volatility | 66.00% | 66.00% | |
Risk-free interest rate | 2.79% | 2.79% | |
Expected dividends | 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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Share based compensation | $ 12,456 | $ 14,142 | $ 8,206 |
Cost of goods sold | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Share based compensation | 2,244 | 2,596 | 1,098 |
Research and development | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Share based compensation | 3,138 | 3,570 | 2,491 |
Sales and marketing | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Share based compensation | 2,411 | 3,248 | 1,697 |
General and administrative | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Share based compensation | $ 4,663 | $ 4,728 | $ 2,920 |
Stock-based compensation - Stoc
Stock-based compensation - Stock Options and RSUs (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Employee stock options | |||
Shares Available for Grant | |||
Beginning Balance (in shares) | 1,102,323 | ||
Authorized for issuance (in shares) | 1,623,244 | ||
Granted (in shares) | (2,087,020) | ||
Exercised/Converted (in shares) | 0 | ||
Cancelled/Forfeited (in shares) | (670,668) | ||
Ending Balance (in shares) | 1,309,215 | 1,102,323 | |
Number of Shares | |||
Beginning Balance (in shares) | 3,202,745 | ||
Authorized for issuance (in shares) | 0 | ||
Granted (in shares) | 103,001 | ||
Exercised/Converted (in shares) | (485,832) | ||
Cancelled/Forfeited (in shares) | (221,169) | ||
Ending Balance (in shares) | 2,598,745 | 3,202,745 | |
Weighted Average Exercise Price | |||
Beginning Balance (USD per share) | $ 5.73 | ||
Authorized for issuance (in shares) | 0 | ||
Granted (USD per share) | 4.34 | ||
Exercised/Converted (USD per share) | 3.90 | ||
Cancelled/Forfeited (USD per share) | 6.81 | ||
Ending Balance (USD per share) | $ 5.93 | $ 5.73 | |
Restricted stock units | |||
Number of Units | |||
Beginning Balance (in shares) | 2,486,028 | ||
Authorized for issuance (in shares) | 0 | ||
Granted (in shares) | 1,974,019 | ||
Exercised/Converted (in shares) | (1,018,143) | ||
Cancelled/Forfeited (in shares) | (270,923) | ||
Ending Balance (in shares) | 3,170,981 | 2,486,028 | |
Weighted Average Exercise Price | |||
Beginning Balance (USD per share) | $ 7.87 | ||
Authorized for issuance (in shares) | 0 | ||
Granted (USD per share) | 4.90 | $ 6.83 | $ 7.86 |
Exercised/Converted (USD per share) | 8.72 | ||
Cancelled/Forfeited (USD per share) | 7.23 | ||
Ending Balance (USD per share) | $ 5.80 | $ 7.87 |
Stock-based compensation - Su_2
Stock-based compensation - Summary of Information about Stock Options Outstanding (Details) $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($)$ / sharesshares | |
Number of Shares | |
Vested and expected to vest (in shares) | shares | 2,582,127 |
Exercisable (in shares) | shares | 2,351,411 |
Weighted Average Exercise Price | |
Vested and expected to vest (USD per share) | $ / shares | $ 5.92 |
Exercisable (USD per share) | $ / shares | $ 5.87 |
Weighted Average Remaining Contractual Term (Years) | |
Vested and expected to vest | 4 years 10 months 17 days |
Exercisable | 4 years 6 months 25 days |
Aggregate Intrinsic Value (in Thousands) | |
Vested and expected to vest | $ | $ 8,280 |
Exercisable | $ | $ 7,723 |
Stock-based compensation - Su_3
Stock-based compensation - Summary of Information about Restricted Stock Units Outstanding (Details) - Restricted stock units $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($)$ / sharesshares | |
Number of Shares | |
Vested and expected to vest (in shares) | shares | 2,743,267 |
Weighted Average Exercise Price | |
Vested and expected to vest (in USD per share) | $ / shares | $ 0 |
Weighted Average Remaining Contractual Term (Years) | |
Vested and expected to vest | 1 year 4 months 6 days |
Aggregate Intrinsic Value | |
Vested and expected to vest | $ | $ 24,196 |
Stock-based compensation - Su_4
Stock-based compensation - Summary of Company's Stock Appreciation Unit Activity (Details) - Stock Appreciation Units (SARs) | 12 Months Ended |
Dec. 31, 2019$ / sharesshares | |
Number of Units | |
Beginning Balance (in shares) | shares | 192,872 |
Exercised/Converted (in shares) | shares | (11,252) |
Canceled (in shares) | shares | (18,149) |
Ending Balance (in shares) | shares | 163,471 |
Weighted-Average Exercise Price | |
Beginning Balance (USD per share) | $ / shares | $ 4.91 |
Exercised/Converted (USD per share) | $ / shares | 3.52 |
Canceled (USD per share) | $ / shares | 4.84 |
Ending Balance (USD per share) | $ / shares | $ 5.01 |
Stock-based compensation - Empl
Stock-based compensation - Employee Stock Purchase Plan (Details) - Employee stock purchase plan $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($)shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Issuance of common stock under employee stock purchase plan (in shares) | shares | 357,251 |
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
U.S. operations | $ (21,579) | $ (43,384) | $ (52,725) |
Non-U.S. operations | 6,136 | 1,076 | 301 |
Loss before income taxes | $ (15,443) | $ (42,308) | $ (52,424) |
Income taxes - Components of Pr
Income taxes - Components of Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current | |||
Federal | $ (71) | $ (49) | $ (144) |
State | (3) | 36 | 3 |
Foreign | (1,854) | (1,634) | 363 |
Provision for income tax, current | (1,928) | (1,647) | 222 |
Deferred | |||
Federal | 0 | 42 | 4 |
State | 0 | 0 | 0 |
Foreign | 295 | 276 | (1,135) |
Total provision | $ (1,633) | $ (1,329) | $ (909) |
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Federal statutory rate | 21.00% | 21.00% | 35.00% |
Tax at federal statutory rate | $ 3,255 | $ 8,869 | $ 18,354 |
State taxes, net of federal benefit | (3) | 36 | 2 |
Mandatory repatriation/Section 956 | 0 | 0 | (5,718) |
Permanent differences | 1,514 | (371) | (67) |
Stock-based compensation | (1,014) | (1,079) | (314) |
Change in valuation allowance | (5,186) | (10,094) | 16,273 |
Research and development | 932 | 914 | 851 |
Foreign rate differences | (531) | (697) | (2,819) |
Foreign tax credit | (405) | 49 | 144 |
Change in prior year deferred balances | 0 | 1,653 | (28,262) |
Other | (195) | (609) | 647 |
Total provision | $ (1,633) | $ (1,329) | $ (909) |
Income taxes - Components of De
Income taxes - Components of Deferred Income Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred Tax Assets: | ||
Net operating loss carryforwards | $ 54,339 | $ 56,828 |
Federal and state credits | 30,111 | 28,328 |
Reserves, accruals and other | 14,132 | 11,265 |
Fixed assets and intangibles | 2,783 | 2,398 |
Total deferred tax assets | 101,365 | 98,819 |
Valuation allowance | (92,149) | (92,891) |
Total deferred tax assets, net of valuation allowance | 9,216 | 5,928 |
Less deferred tax liabilities: | ||
Acquired intangibles | (283) | (313) |
Property, plant and equipment | (4,663) | (4,754) |
Right-of-Use Lease Assets | (3,124) | 0 |
Net deferred tax assets | 1,146 | 861 |
Reported as: | ||
Long term deferred tax assets, included within other long-term assets | 1,674 | 861 |
Long term deferred income tax liabilities, included within noncurrent liabilities | (528) | 0 |
Net deferred tax assets | $ 1,146 | $ 861 |
Income taxes - Narrative (Detai
Income taxes - Narrative (Details) (Details) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Examination [Line Items] | |||||
Valuation allowance, increase (decrease) | $ 700,000 | $ 16,800,000 | |||
Impact of adoption of new accounting standard ASU 2016-16 | $ (1,824,000) | ||||
Unrecognized tax benefits | 20,652,000 | $ 26,196,000 | $ 25,539,000 | $ 23,606,000 | |
Unrecognized tax benefits that would impact the effective tax rate | 100,000 | ||||
Unrecognized tax benefits, income tax penalties and interest expense | 0 | ||||
Domestic Tax Authority | |||||
Income Tax Examination [Line Items] | |||||
Operating loss carryforwards | 290,400,000 | ||||
State and Local Jurisdiction | |||||
Income Tax Examination [Line Items] | |||||
Operating loss carryforwards | 52,100,000 | ||||
Accounting Standards Update 2016-16 | |||||
Income Tax Examination [Line Items] | |||||
Impact of adoption of new accounting standard ASU 2016-16 | $ 1,800,000 | ||||
Research Tax Credit Carryforward | Domestic Tax Authority | |||||
Income Tax Examination [Line Items] | |||||
Tax credit carryforward | 10,200,000 | ||||
Research Tax Credit Carryforward | State and Local Jurisdiction | |||||
Income Tax Examination [Line Items] | |||||
Tax credit carryforward | 18,800,000 | ||||
Research Tax Credit Carryforward | Foreign Tax Authority | |||||
Income Tax Examination [Line Items] | |||||
Tax credit carryforward | $ 10,500,000 |
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning Balance | $ 26,196 | $ 25,539 | $ 23,606 |
Gross increases for tax positions of current year | 657 | 1,933 | |
Net changes in tax positions in current year | (5,544) | ||
Ending Balance | $ 20,652 | $ 26,196 | $ 25,539 |
Segment and geographic Inform_3
Segment and geographic Information - Additional Information (Details) - segment | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting [Abstract] | |||
Number of reportable segments | 1 | 1 | 1 |
Segment and geographic inform_4
Segment and geographic information (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | $ 81,133 | $ 100,090 |
China | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | 19,230 | 27,329 |
United States | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | 26,068 | 29,054 |
Japan | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | 25,772 | 29,631 |
Rest of world | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | $ 10,063 | $ 14,076 |
Selected Quarterly Financial _3
Selected Quarterly Financial Data (unaudited) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Selected Quarterly Financial Information [Abstract] | |||||||||||
Revenue | $ 103,356 | $ 92,392 | $ 81,690 | $ 79,366 | $ 91,104 | $ 81,748 | $ 81,102 | $ 68,586 | $ 356,804 | $ 322,540 | $ 292,894 |
Gross profit | 31,202 | 26,199 | 15,675 | 15,737 | 22,586 | 18,933 | 15,472 | 9,182 | 88,813 | 66,173 | 61,479 |
Net income (loss) | $ 2,069 | $ 2,272 | $ (7,326) | $ (14,091) | $ (6,729) | $ (8,125) | $ (10,537) | $ (18,246) | $ (17,076) | $ (43,637) | $ (53,333) |
Basic net income (loss) per share (USD per share) | $ 0.04 | $ 0.05 | $ (0.16) | $ (0.30) | $ (0.15) | $ (0.18) | $ (0.24) | $ (0.41) | $ (0.36) | $ (0.97) | $ (1.23) |
Diluted net income (loss) per share (USD per share) | $ 0.04 | $ 0.05 | $ (0.16) | $ (0.30) | $ (0.15) | $ (0.18) | $ (0.24) | $ (0.41) | $ (0.36) | $ (0.97) | $ (1.23) |
Weighted average shares used to compute basic net income (loss) per share (in shares) | 48,358 | 47,666 | 46,754 | 46,414 | 46,150 | 45,476 | 44,665 | 44,259 | 47,304 | 45,144 | 43,431 |
Weighted average shares used to compute diluted net income (loss) per share (in shares) | 50,238 | 48,615 | 46,754 | 46,414 | 46,150 | 45,476 | 44,665 | 44,259 | 47,304 | 45,144 | 43,431 |