Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Oct. 31, 2019 | Dec. 02, 2019 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Oct. 31, 2019 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | AMBA | |
Entity Registrant Name | AMBARELLA INC | |
Entity Central Index Key | 0001280263 | |
Current Fiscal Year End Date | --01-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Current Reporting Status | Yes | |
Entity Common Stock, Shares Outstanding | 33,544,802 | |
Entity File Number | 001-35667 | |
Entity Tax Identification Number | 98-0459628 | |
Entity Address, Address Line One | 3101 Jay Street | |
Entity Address, City or Town | Santa Clara | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 95054 | |
City Area Code | 408 | |
Local Phone Number | 734-8888 | |
Entity Incorporation, State or Country Code | E9 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Title of 12(b) Security | Ordinary Shares, $0.00045 Par Value Per Share | |
Security Exchange Name | NASDAQ | |
Entity Interactive Data Current | Yes |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Oct. 31, 2019 | Jan. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 252,310 | $ 194,047 |
Marketable debt securities | 148,481 | 164,861 |
Accounts receivable, net | 21,609 | 26,212 |
Inventories | 19,845 | 18,252 |
Restricted cash | 9 | 11 |
Prepaid expenses and other current assets | 5,174 | 6,206 |
Total current assets | 447,428 | 409,589 |
Property and equipment, net | 5,927 | 6,728 |
Deferred tax assets, non-current | 10,320 | 10,587 |
Intangible assets, net | 8,232 | 10,936 |
Operating lease right-of-use assets, net | 10,595 | 0 |
Goodwill | 26,601 | 26,601 |
Other non-current assets | 5,386 | 2,412 |
Total assets | 514,489 | 466,853 |
Current liabilities: | ||
Accounts payable | 18,697 | 12,801 |
Accrued and other current liabilities | 28,447 | 24,700 |
Operating lease liabilities, current | 2,161 | 0 |
Income taxes payable | 955 | 993 |
Deferred revenue, current | 545 | 529 |
Total current liabilities | 50,805 | 39,023 |
Operating lease liabilities, non-current | 8,519 | 0 |
Other long-term liabilities | 9,925 | 8,341 |
Total liabilities | 69,249 | 47,364 |
Commitments and contingencies (Note 13) | 0 | 0 |
Shareholders' equity: | ||
Preference shares, $0.00045 par value per share, 20,000,000 shares authorized and no shares issued and outstanding at October 31, 2019 and January 31, 2019, respectively | 0 | 0 |
Ordinary shares, $0.00045 par value per share, 200,000,000 shares authorized at October 31, 2019 and January 31, 2019, respectively; 33,540,324 shares issued and outstanding at October 31, 2019; 32,303,540 shares issued and outstanding at January 31, 2019 | 15 | 15 |
Additional paid-in capital | 245,490 | 188,516 |
Accumulated other comprehensive income | 685 | 97 |
Retained earnings | 199,050 | 230,861 |
Total shareholders’ equity | 445,240 | 419,489 |
Total liabilities and shareholders' equity | $ 514,489 | $ 466,853 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Oct. 31, 2019 | Jan. 31, 2019 |
Statement Of Financial Position [Abstract] | ||
Preference shares, par value | $ 0.00045 | $ 0.00045 |
Preference shares, shares authorized | 20,000,000 | 20,000,000 |
Preference shares, shares issued | 0 | 0 |
Preference shares, shares outstanding | 0 | 0 |
Ordinary shares, par value | $ 0.00045 | $ 0.00045 |
Ordinary shares, shares authorized | 200,000,000 | 200,000,000 |
Ordinary shares, shares issued | 33,540,324 | 32,303,540 |
Ordinary shares, shares outstanding | 33,540,324 | 32,303,540 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2019 | Oct. 31, 2018 | |
Income Statement [Abstract] | ||||
Revenue | $ 67,922 | $ 57,286 | $ 171,520 | $ 176,698 |
Cost of revenue | 28,819 | 22,701 | 72,127 | 69,208 |
Gross profit | 39,103 | 34,585 | 99,393 | 107,490 |
Operating expenses: | ||||
Research and development | 32,480 | 31,653 | 95,917 | 95,446 |
Selling, general and administrative | 13,791 | 12,354 | 39,293 | 38,098 |
Total operating expenses | 46,271 | 44,007 | 135,210 | 133,544 |
Loss from operations | (7,168) | (9,422) | (35,817) | (26,054) |
Other income, net | 1,917 | 993 | 6,308 | 2,517 |
Loss before income taxes | (5,251) | (8,429) | (29,509) | (23,537) |
Provision (benefit) for income taxes | (942) | 592 | 2,302 | 2,367 |
Net loss | $ (4,309) | $ (9,021) | $ (31,811) | $ (25,904) |
Net loss per share attributable to ordinary shareholders: | ||||
Basic | $ (0.13) | $ (0.28) | $ (0.97) | $ (0.79) |
Diluted | $ (0.13) | $ (0.28) | $ (0.97) | $ (0.79) |
Weighted-average shares used to compute net loss per share attributable to ordinary shareholders: | ||||
Basic | 33,304,171 | 32,171,890 | 32,885,729 | 32,908,614 |
Diluted | 33,304,171 | 32,171,890 | 32,885,729 | 32,908,614 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2019 | Oct. 31, 2018 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net loss | $ (4,309) | $ (9,021) | $ (31,811) | $ (25,904) |
Other comprehensive income, net of tax: | ||||
Net unrealized gains on investments | 140 | 26 | 588 | 94 |
Other comprehensive income, net of tax | 140 | 26 | 588 | 94 |
Comprehensive loss | $ (4,169) | $ (8,995) | $ (31,223) | $ (25,810) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Outstanding Ordinary Shares [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Retained Earnings [Member] |
Beginning Balance, Amount at Jan. 31, 2018 | $ 482,187 | $ 15 | $ 221,186 | $ (279) | $ 261,265 |
Beginning Balance, Shares at Jan. 31, 2018 | 33,489,614 | ||||
Cumulative effect of change in accounting principle | 43 | $ 0 | 0 | 0 | 43 |
Issuance of shares through employee equity incentive plan, Amount | 305 | $ 0 | 305 | 0 | 0 |
Issuance of shares through employee equity incentive plan, Shares | 272,723 | ||||
Issuance of shares through employee stock purchase plan, Amount | 2,818 | $ 0 | 2,818 | 0 | 0 |
Issuance of shares through employee stock purchase plan, Shares | 71,415 | ||||
Stock repurchase, Amount | (20,624) | $ 0 | (20,624) | 0 | 0 |
Stock repurchase, Shares | (437,448) | ||||
Stock-based compensation expense related to stock awards granted to employees and consultants | 14,195 | $ 0 | 14,195 | 0 | 0 |
Net unrealized gains (losses) on investments - net of taxes | (110) | 0 | 0 | (110) | 0 |
Net loss | (10,006) | 0 | 0 | 0 | (10,006) |
Ending Balance, Amount at Apr. 30, 2018 | 468,808 | $ 15 | 217,880 | (389) | 251,302 |
Ending Balance, Shares at Apr. 30, 2018 | 33,396,304 | ||||
Beginning Balance, Amount at Jan. 31, 2018 | 482,187 | $ 15 | 221,186 | (279) | 261,265 |
Beginning Balance, Shares at Jan. 31, 2018 | 33,489,614 | ||||
Net unrealized gains (losses) on investments - net of taxes | 94 | ||||
Net loss | (25,904) | ||||
Ending Balance, Amount at Oct. 31, 2018 | 411,139 | $ 14 | 175,906 | (185) | 235,404 |
Ending Balance, Shares at Oct. 31, 2018 | 32,149,520 | ||||
Beginning Balance, Amount at Apr. 30, 2018 | 468,808 | $ 15 | 217,880 | (389) | 251,302 |
Beginning Balance, Shares at Apr. 30, 2018 | 33,396,304 | ||||
Issuance of shares through employee equity incentive plan, Amount | 642 | $ 0 | 642 | 0 | 0 |
Issuance of shares through employee equity incentive plan, Shares | 373,126 | ||||
Stock repurchase, Amount | (44,989) | $ 0 | (44,989) | 0 | 0 |
Stock repurchase, Shares | (1,119,193) | ||||
Stock-based compensation expense related to stock awards granted to employees and consultants | 15,130 | $ 0 | 15,130 | 0 | 0 |
Net unrealized gains (losses) on investments - net of taxes | 178 | 0 | 0 | 178 | 0 |
Net loss | (6,877) | 0 | 0 | 0 | (6,877) |
Ending Balance, Amount at Jul. 31, 2018 | 432,892 | $ 15 | 188,663 | (211) | 244,425 |
Ending Balance, Shares at Jul. 31, 2018 | 32,650,237 | ||||
Issuance of shares through employee equity incentive plan, Amount | 117 | $ 0 | 117 | 0 | 0 |
Issuance of shares through employee equity incentive plan, Shares | 249,002 | ||||
Issuance of shares through employee stock purchase plan, Amount | 2,318 | $ 0 | 2,318 | 0 | 0 |
Issuance of shares through employee stock purchase plan, Shares | 75,472 | ||||
Stock repurchase, Amount | (30,805) | $ (1) | (30,804) | 0 | 0 |
Stock repurchase, Shares | (825,191) | ||||
Stock-based compensation expense related to stock awards granted to employees and consultants | 15,612 | $ 0 | 15,612 | 0 | 0 |
Net unrealized gains (losses) on investments - net of taxes | 26 | 0 | 0 | 26 | 0 |
Net loss | (9,021) | 0 | 0 | 0 | (9,021) |
Ending Balance, Amount at Oct. 31, 2018 | 411,139 | $ 14 | 175,906 | (185) | 235,404 |
Ending Balance, Shares at Oct. 31, 2018 | 32,149,520 | ||||
Beginning Balance, Amount at Jan. 31, 2019 | $ 419,489 | $ 15 | 188,516 | 97 | 230,861 |
Beginning Balance, Shares at Jan. 31, 2019 | 32,303,540 | 32,303,540 | |||
Issuance of shares through employee equity incentive plan, Amount | $ 1,520 | $ 0 | 1,520 | 0 | 0 |
Issuance of shares through employee equity incentive plan, Shares | 335,301 | ||||
Issuance of shares through employee stock purchase plan, Amount | 3,063 | $ 0 | 3,063 | 0 | 0 |
Issuance of shares through employee stock purchase plan, Shares | 99,759 | ||||
Stock-based compensation expense related to stock awards granted to employees and consultants | 15,423 | $ 0 | 15,423 | 0 | 0 |
Net unrealized gains (losses) on investments - net of taxes | 254 | 0 | 0 | 254 | 0 |
Net loss | (17,311) | 0 | 0 | 0 | (17,311) |
Ending Balance, Amount at Apr. 30, 2019 | 422,438 | $ 15 | 208,522 | 351 | 213,550 |
Ending Balance, Shares at Apr. 30, 2019 | 32,738,600 | ||||
Beginning Balance, Amount at Jan. 31, 2019 | $ 419,489 | $ 15 | 188,516 | 97 | 230,861 |
Beginning Balance, Shares at Jan. 31, 2019 | 32,303,540 | 32,303,540 | |||
Stock repurchase, Shares | 0 | ||||
Net unrealized gains (losses) on investments - net of taxes | $ 588 | ||||
Net loss | (31,811) | ||||
Ending Balance, Amount at Oct. 31, 2019 | $ 445,240 | $ 15 | 245,490 | 685 | 199,050 |
Ending Balance, Shares at Oct. 31, 2019 | 33,540,324 | 33,540,324 | |||
Beginning Balance, Amount at Apr. 30, 2019 | $ 422,438 | $ 15 | 208,522 | 351 | 213,550 |
Beginning Balance, Shares at Apr. 30, 2019 | 32,738,600 | ||||
Issuance of shares through employee equity incentive plan, Amount | 988 | $ 0 | 988 | 0 | 0 |
Issuance of shares through employee equity incentive plan, Shares | 295,019 | ||||
Stock-based compensation expense related to stock awards granted to employees and consultants | 15,032 | $ 0 | 15,032 | 0 | 0 |
Net unrealized gains (losses) on investments - net of taxes | 194 | 0 | 0 | 194 | 0 |
Net loss | (10,191) | 0 | 0 | 0 | (10,191) |
Ending Balance, Amount at Jul. 31, 2019 | 428,461 | $ 15 | 224,542 | 545 | 203,359 |
Ending Balance, Shares at Jul. 31, 2019 | 33,033,619 | ||||
Issuance of shares through employee equity incentive plan, Amount | 2,711 | $ 0 | 2,711 | 0 | 0 |
Issuance of shares through employee equity incentive plan, Shares | 428,600 | ||||
Issuance of shares through employee stock purchase plan, Amount | $ 2,904 | $ 0 | 2,904 | 0 | 0 |
Issuance of shares through employee stock purchase plan, Shares | 78,105 | ||||
Stock repurchase, Shares | 0 | ||||
Stock-based compensation expense related to stock awards granted to employees and consultants | $ 15,333 | $ 0 | 15,333 | 0 | 0 |
Net unrealized gains (losses) on investments - net of taxes | 140 | 0 | 0 | 140 | 0 |
Net loss | (4,309) | 0 | 0 | 0 | (4,309) |
Ending Balance, Amount at Oct. 31, 2019 | $ 445,240 | $ 15 | $ 245,490 | $ 685 | $ 199,050 |
Ending Balance, Shares at Oct. 31, 2019 | 33,540,324 | 33,540,324 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Oct. 31, 2019 | Oct. 31, 2018 | |
Cash flows from operating activities: | ||
Net loss | $ (31,811) | $ (25,904) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 8,231 | 5,355 |
Amortization/accretion of marketable debt securities | (879) | (311) |
Stock-based compensation | 49,968 | 44,937 |
Other non-cash items, net | 87 | 358 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 4,603 | (1,123) |
Inventories | (1,593) | 55 |
Prepaid expenses and other current assets | 857 | 700 |
Deferred tax assets | 267 | (285) |
Other assets | (2,974) | (213) |
Accounts payable | 5,896 | (8,681) |
Accrued liabilities | 3,658 | (5,192) |
Income taxes payable | (38) | (181) |
Deferred revenue | 16 | 140 |
Lease Liabilities | (2,238) | 0 |
Other long-term liabilities | 1,234 | 843 |
Net cash provided by operating activities | 35,284 | 10,498 |
Cash flows from investing activities: | ||
Purchase of investments | (160,988) | (139,816) |
Sales of investments | 72,773 | 50,618 |
Maturities of investments | 105,995 | 40,928 |
Purchase of property and equipment | (1,425) | (2,380) |
Net cash provided by (used in) investing activities | 16,355 | (50,650) |
Cash flows from financing activities: | ||
Stock repurchase | 0 | (96,419) |
Proceeds from exercise of stock options and employee stock purchase plan | 9,552 | 4,722 |
Payment for intangible asset | (2,930) | (2,483) |
Net cash provided by (used in) financing activities | 6,622 | (94,180) |
Net increase (decrease) in cash, cash equivalents and restricted cash | 58,261 | (134,332) |
Cash, cash equivalents and restricted cash at beginning of period | 194,058 | 346,681 |
Cash, cash equivalents and restricted cash at end of period | 252,319 | 212,349 |
Supplemental disclosure of cash flow information: | ||
Cash paid for income taxes | 1,664 | 1,263 |
Supplemental disclosure of noncash investing and financing activities: | ||
Unpaid liabilities related to intangible and fixed assets additions | $ 618 | $ 299 |
Organization and Summary of Sig
Organization and Summary of Significant Accounting Policies | 9 Months Ended |
Oct. 31, 2019 | |
Accounting Policies [Abstract] | |
Organization and Summary of Significant Accounting Policies | 1. Organization and Summary of Significant Accounting Policies Organization Ambarella, Inc. (the “Company”) was incorporated in the Cayman Islands on January 15, 2004. The Company is a leading developer of low-power, high-definition (HD) and Ultra HD video compression and image processing solutions, and computer vision solutions. The Company combines its processor design capabilities with its expertise in video and image processing, algorithms and software to provide a technology platform that is designed to be easily scalable across multiple applications and enable rapid and efficient product development. The Company’s system-on-a-chip, or SoC, designs fully integrated high-definition video processing, image processing, analysis, audio processing and system functions onto a single chip, delivering exceptional video and image quality, differentiated functionality and low power consumption. Currently the Company is combining advanced computer vision technology with its state-of-the-art video to enable the next generation of intelligent cameras, advanced driver assistance systems (ADAS), electronic mirror, drive recorder, driver/cabin monitoring, autonomous driving and other robotic applications. The Company sells its solutions to leading original design manufacturers, or ODMs, and original equipment manufacturers, or OEMs, globally. Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared by the Company in accordance with the instructions to Form 10-Q pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) and, therefore, do not include all information and notes normally provided in audited financial statements. The accounting policies are described in the “Notes to Consolidated Financial Statements” in the Annual Report on Form 10-K for the 2019 fiscal year filed with the SEC on March 29, 2019 (the “Form 10-K”) and updated, as necessary, in this Form 10-Q. The year-end condensed consolidated balance sheet data presented for comparative purposes was derived from audited financial statements, but does not include all disclosures required by generally accepted accounting principles in the United States (“U.S. GAAP”). In the opinion of management, all adjustments (consisting of normal recurring accruals and adjustments) considered necessary for a fair statement have been included. The results of operations for any interim period are not necessarily indicative of, nor comparable to, the results of operations for any other interim period or for a full fiscal year. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes contained in the Form 10-K. Basis of Consolidation The Company’s fiscal year ends on January 31. The condensed consolidated financial statements of the Company and its subsidiaries have been prepared in conformity with U.S. GAAP. All intercompany transactions and balances have been eliminated upon consolidation. Use of Estimates The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expense during the reported periods. Actual results could differ from those estimates. On an ongoing basis, management evaluates its estimates and assumptions, including those related to (i) the collectability of accounts receivable; (ii) write down of excess and obsolete inventories; (iii) intangible assets and goodwill; (iv) the estimated useful lives of long-lived assets; (v) impairment of long-lived assets and financial instruments; (vi) warranty obligations; (vii) the valuation of stock-based compensation awards and financial instruments; (viii) the probability of performance objectives achievement; (ix) the realization of tax assets and estimates of tax liabilities, including reserves for uncertain tax positions; and (x) the recognition and disclosure of contingent liabilities. These estimates and assumptions are based on historical experience and on various other factors which the Company believes to be reasonable under the circumstances. The Company may engage third-party valuation specialists to assist with estimates related to the valuation of financial instruments, assets and stock awards associated with various contractual arrangements. Such estimates often require the selection of appropriate valuation methodologies and significant judgment. Actual results could differ from these estimates under different assumptions or circumstances and such differences could be material. Concentration of Risk The Company’s products are manufactured, assembled and tested by third-party contractors located primarily in Asia. The Company does not have long-term agreements with these contractors. A significant disruption in the operations of one or more of these contractors would impact the production of the Company’s products which could have a material adverse effect on its business, financial condition and results of operations. A substantial portion of the Company’s revenue is derived from sales through one of its distributors, Wintech Microelectronics Co., Ltd., or Wintech, which serves as its non-exclusive sales representative in Asia other than Japan, and directly to one ODM customer, Chicony Electronics Co., Ltd., or Chicony. Termination of the relationships with these customers could result in a temporary or permanent loss of revenue. Furthermore, any credit issues from these customers could impair their abilities to make timely payment to the Company. See Note 14 for additional information regarding revenue and credit concentration with these customers. Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash, cash equivalents, marketable debt securities and accounts receivable. The Company maintains its cash primarily in checking accounts with reputable financial institutions. Cash deposits held with these financial institutions may exceed the amount of insurance provided on such deposits. The Company has not experienced any losses on deposits of its cash. In order to limit the exposure of each investment, the cash equivalents and marketable debt securities consist primarily of money market funds, asset-backed securities, commercial paper, U.S. government securities and debt securities of corporations which management assesses to be highly liquid. The Company does not hold or issue financial instruments for trading purposes. The Company performs ongoing credit evaluations of its customers and adjusts credit limits based upon payment history and customers’ credit worthiness. The Company regularly monitors collections and payments from its customers. Cash Equivalents and Marketable Debt Securities The Company considers all highly liquid debt security investments with original maturities of less than three months at the time of purchase to be cash equivalents. Debt security investments that are highly liquid with original maturities at the time of purchase greater than three months are considered marketable debt securities. The Company classifies these investments as “available-for-sale” securities carried at fair value, based on quoted market prices of similar assets, with the unrealized gains or losses reported, net of tax, as a separate component of shareholders’ equity and included in accumulated other comprehensive income in the condensed consolidated balance sheets. The amortization of premiums and accretion of discounts and the realized gains and losses are both recorded in other income, net, in the condensed consolidated statements of operations. The Company reviews its investments for possible other-than-temporary impairments on a regular basis. If any loss on investment is believed to be other-than-temporary, a charge will be recorded and a new cost basis in the investment will be established. In evaluating whether a loss on a security is other-than-temporary, the Company considers the following factors: (i) general market conditions, (ii) the duration and extent to which the fair value is less than cost and (iii) the Company’s intent and ability to hold the investment. For securities in an unrealized loss position which is deemed to be other-than-temporary, the difference between the security’s then-current amortized cost basis and fair value is separated into (i) the amount of the impairment related to the credit loss (i.e., the credit loss component) and (ii) the amount of the impairment related to all other factors (i.e., the non-credit loss component). The credit loss component is recognized in earnings. The non-credit loss component is recognized in accumulated other comprehensive loss. Due to the relative short term nature of the investments, there have been no other-than-temporary impairments recorded to date. Restricted Cash Amounts included in restricted cash represent those required to be set aside to secure certain transactions in a foreign entity. As of October 31, 2019 and January 31, 2019, the restricted cash was immaterial. The following table presents cash, cash equivalents and restricted cash reported on the condensed consolidated balance sheets and the sums are presented on the condensed consolidated statements of cash flows: As of October 31, 2019 January 31, 2019 October 31, 2018 January 31, 2018 (in thousands) Cash and cash equivalents $ 252,310 $ 194,047 $ 212,338 $ 346,672 Restricted cash 9 11 11 9 Total as presented in the consolidated statements of cash flows $ 252,319 $ 194,058 $ 212,349 $ 346,681 Inventories The Company records inventories at the lower of cost or net realizable value. The cost includes materials and other production costs and is computed using standard cost on a first-in, first-out basis. Inventory reserves are recorded for estimated obsolescence or unmarketable inventories based on forecast of future demand and market conditions. Any adjustments to reduce the cost of inventories to their net realizable value are recognized in earnings in the current period. Noncancelable Internal-Use Software License The Company accounts for a noncancelable on premise internal-use software license as the acquisition of an intangible asset and the incurrence of a liability to the extent that all or a portion of the software licensing fees are not paid on or before the license acquisition date. The intangible asset and related liability are recorded at net present value and interest expense is recorded over the payment term. Leases Effective February 1, 2019, the Company adopted Accounting Standards Codification (“ASC”) Topic 842, Leases, using the alternative transition method with an adjustment to the opening balance in the period of adoption without adjustment of comparative period financial statements. Under this new guidance, the Company recognizes leases as right-of-use (“ROU”) assets and corresponding lease liabilities at the lease commencement date based on the present value of future lease payments, while recognizing lease expenses under straight-line method through the lease term. The Company also elected the other available practical expedients, and has elected not to recognize ROU assets and lease liabilities that arise from short-term (12 months or less) leases and not to reassess the following for existing leases as of February 1, 2019: (i) whether contracts are or contain leases, (ii) lease classification, and (iii) initial direct costs. The Company does not combine lease components with non-lease components, and as a result, the non-lease components are accounted for separately. In determining the present value of lease payments, the Company uses the implicit interest rate if readily determinable. When the implicit rate is not readily determinable, the Company uses its incremental borrowing rate based on the information available at the lease commencement date. The Company's leases mainly include its worldwide office facilities which are all classified as operating leases. Certain leases include renewal options that are under the Company's discretion. The renewal options are included in the ROU and liability calculation if it is reasonably certain that the Company will exercise the option. As of February 1, 2019, the Company recognized approximately $8.6 million of ROU assets, net of previously recognized prepaid rent and accrued liabilities, and corresponding lease liabilities of $8.7 million. The Company's finance leases are immaterial as of October 31, 2019 and February 1, 2019, respectively. Revenue Recognition Effective February 1, 2018, the Company adopted ASC 606, Revenue from Contracts with Customers. As a result, the Company recognizes product revenue upon shipment and transfer of control to distributors (known as “sell-in” revenue recognition) rather than shipment to the end customers (known as “sell-through” revenue recognition) based on its estimate of the consideration it expects to receive. Revenue recognition is evaluated through the following five steps: (i) identification of the contract, or contracts, with a customer; (ii) identification of the performance obligations in the contract; (iii) determination of the transaction price; (iv) allocation of the transaction price to the performance obligations in the contract; and (v) recognition of revenue when or as a performance obligation is satisfied. The sale of semiconductor products accounts for the substantial majority of the Company’s consolidated revenue. Sales agreements with customers are renewable periodically and contain terms and conditions with respect to payment, delivery, warranty, supply and other rights. The Company considers an accepted customer purchase order, governed by sales agreement, to be the contract with the customer. For each contract, the Company considers the promise to transfer tangible products to be the identified performance obligation. Product sales contracts may include volume-based tiered pricing or rebates that are fulfilled in cash or product. In determining the transaction price, the Company accounts for the right of returns, cash rebates, commissions and other pricing adjustments as variable consideration and estimates these amounts based on the expected amount to be provided to customers and reduces the revenue recognized. The Company estimates sales returns and rebates based on the Company’s historical patterns of return and pricing credits. As the Company’s standard payment terms are 30 days to 60 days, the contracts have no financing component. Under ASC 606, the Company estimates the total consideration to be received by using the expected value method for each contract, computes weighted average selling price for each unit shipped in cases where there is a material right due to the presence of volume-based tiered pricing, allocates the total consideration between the identified performance obligations, and recognizes revenue when control of its goods and services is transferred to its customers. The Company considers product control to be transferred at shipment or delivery because the Company has a present right to payment at that time, the customer has legal title to the asset, the Company has transferred physical possession of the asset, and the customer has significant risk and rewards of ownership of the asset. The Company also enters into fixed-price engineering service agreements with certain customers. These agreements may include multiple performance obligations, such as software development services, licensing of intellectual property and post-contract customer support, or PCS. These multiple performance obligations are highly interdependent, highly interrelated, are typically not sold separately and do not have standalone selling prices. They are all inputs to generate one combined output which is incorporating the Company’s SoC into the customer’s product. Accordingly, the Company determines that they are not separately identifiable and shall be treated as a single performance obligation. Customers usually pay based on milestones achieved. Because payments received do not correspond directly with the value of the Company’s performance to date, for fixed-price engineering services arrangements, revenue is recognized using the time-based straight line method, which best depicts the Company’s performance toward complete satisfaction of the performance obligation based on the nature of such professional services. Revenues from engineering service agreements were not material for the three and nine months ended October 31, 2019 and 2018, respectively. The Company records contract assets when revenue is recognized prior to invoicing. The Company’s contract liabilities are primarily related to the portion of transaction price that exceeds the weighted average selling price for products sold to date under tiered-pricing contracts which contain material rights. These contract liabilities are expected to be recognized over the course of the contract when products are delivered for future pricing below the weighted average selling price of the contract. For the three and nine months ended October 31, 2019 and 2018, the Company did not recognize any material revenue adjustment related to performance obligations satisfied in prior periods released from these contract liabilities. As of October 31, 2019 and January 31, 2019, the contract liabilities were not material. Additionally, the transaction price allocated to unsatisfied, or partially unsatisfied, purchase orders for contracts that are greater than a year was not material as of October 31, 2019 and January 31, 2019, respectively. Cost of Revenue Cost of revenue includes cost of materials, cost associated with packaging and assembly, testing and shipping, cost of personnel, stock-based compensation, logistics and quality assurance, warranty cost, royalty expense, write-downs of inventories and allocation of overhead. Research and Development Research and development costs are expensed as incurred and consist primarily of personnel costs, product development costs, which include engineering services, development software and hardware tools, license fees, costs of fabrication of masks for prototype products, other development materials costs, depreciation of equipment and tools and allocation of facility costs, net of any research and development grants. As of October 31, 2019, there was approximately $1.2 million of grants recorded in prepaid expenses and other current assets and approximately $2.9 million of grants recorded in other non-current assets in the condensed consolidated balance sheets. Income Taxes The Company records income taxes using the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in its financial statements or tax returns. In estimating future tax consequences, generally all expected future events other than enactments or changes in the tax law or rates are considered. Valuation allowances are provided when necessary to reduce deferred tax assets to the amount expected to be realized. The Company applies authoritative guidance for the accounting for uncertainty in income taxes. The guidance requires that tax effects of a position be recognized only if it is “more likely than not” to be sustained based solely on its technical merits as of the reporting date. Upon estimating its tax positions and tax benefits, the Company considers and evaluates numerous factors, which may require periodic adjustments and which may not reflect the final tax liabilities. The Company adjusts its financial statements to reflect only those tax positions that are more likely than not to be sustained under examination. As part of the process of preparing condensed 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 together with assessing temporary differences resulting from differing treatment of items, such as accruals and allowances not currently deductible for tax purposes. These differences result in deferred tax assets, which are included in the condensed consolidated balance sheets. In general, deferred tax assets represent future tax benefits to be received when certain expenses previously recognized in the condensed consolidated statements of operations become deductible expenses under applicable income tax laws, or loss or credit carryforwards are utilized. In assessing whether deferred tax assets may be realized, the Company considers whether it is more likely than not that some portion or all of deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income. The Company makes estimates and judgments about its future taxable income based on assumptions that are consistent with its plans and estimates. Should the actual amounts differ from estimates, the amount of valuation allowance could be materially impacted. Any adjustment to the deferred tax asset valuation allowance would be recorded in the condensed consolidated income statement for the periods in which the adjustment is determined to be required. Net Income (Loss) Per Ordinary Share Basic earnings (losses) per share is computed by dividing net income (loss) available to ordinary shareholders by the weighted-average number of ordinary shares outstanding during the period. Diluted earnings (losses) per share is computed by dividing net income (loss) available to ordinary shareholders by the weighted-average number of ordinary shares outstanding during the period increased to include the number of additional ordinary shares that would have been outstanding if the potentially dilutive securities had been issued. Potentially dilutive securities include outstanding stock options, shares to be purchased under the Company’s employee stock purchase plan, unvested restricted stock and restricted stock units. The dilutive effect of potentially dilutive securities is reflected in diluted earnings (losses) per share by application of the treasury stock method. Comprehensive Income (Loss) Comprehensive income (loss) includes unrealized gains or losses from available-for-sale securities that are excluded from net income (loss). Recent Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326), to introduce a new impairment model for recognizing credit losses on financial instruments based on an estimate of current expected credit losses (“ECL”). Under the new model, an entity is required to estimate ECL on available-for-sale (AFS) debt securities only when the fair value is below the amortized cost of the asset and is no longer based on an impairment being “other-than-temporary”. The new model also requires the impairment calculation on an individual security level and requires an entity use present value of cash flows when estimating the ECL. The credit-related losses are required to be recognized through earnings and non-credit related losses are reported in other comprehensive income. In April 2019, the FASB further clarified the scope of the credit losses standard and addressed issues related to accrued interest receivable balances, recoveries, variable interest rates and prepayment. The ASU will be effective for public entities in fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The new guidance will require modified retrospective application to all outstanding instruments, with a cumulative effect adjustment recorded to opening retained earnings as of the beginning of the first period in which the guidance becomes effective. The Company does not believe the adoption of this new guidance will have a material impact on its consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test of Goodwill Impairment, to eliminate the requirement to calculate the implied fair value of goodwill to measure a goodwill impairment cha rge. Instead, entities will record an impairment charge based on the excess of a reporting unit’s carrying amount over its fair value. This new guidance will be applied prospectively and is effective for annual and interim periods beginning after December 15, 2019. The Company does not believe the adoption of this new guidance will have a material impact on its financial position, results of operations and disclosures . In August 2018, the FASB issued 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement. Under this new guidance, the entities will no longer be required to disclose the amount of and the reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, but will be required to disclose the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements. The guidance is effective for fiscal years beginning after December 15, 2019 and for the interim periods within those fiscal years. Early adoption is permitted. The Company does not believe the adoption of this new guidance will have a material impact on its financial position, results of operations and disclosures. In August 2018, the FASB issued 2018-15, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. Under this new guidance, the entities are required to capitalize implementation costs related to a hosting arrangement that is a service contract and amortize the costs over the term of the hosting arrangement, beginning when the module or component of the hosting arrangement is ready for its intended use. The guidance is effective for fiscal years beginning after December 15, 2019 and for the interim periods within those fiscal years. Early adoption is permitted. The Company does not believe the adoption of this new guidance will have a material impact on its financial position, results of operations and disclosures. In April 2019, the FASB issued ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments – Credit Losses, Topic 815, Derivatives and Hedging, and Topic 25, Financial Instruments. The new guidance further clarifies that equity instruments without readily determinable fair values for which an entity has elected the measurement alternative should be remeasured to fair value as of the date that an observable transaction occurred. The FASB also amended the guidance to clarify that the nonrecurring fair value disclosure is applicable to equity instruments accounted for under the measurement alternative. The ASU will be effective for public entities in fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, with early adoption permitted and requires a prospective method for those related to equity securities without readily determinable fair values that are measured using the measurement alternative. The Company does not believe the adoption of this new amendment will have a material impact on its consolidated financial statements. In November 2019, the FASB issued ASU 2019-08, Compensation – Stock Compensation (Topic 718) and Revenue from Contracts with Customers (Topic 606): Codification Improvements – Share-Based Consideration Payable to a Customer. Under this new guidance, share-based payment award issued to a customer should be recorded as a reduction of the transaction price in revenue with an amount measured under the grant-date fair value of the award. Changes in the measurement of the share-based payments after the grant date that are due to the form of the consideration are not included in the transaction price and are recorded elsewhere in the income statement. The award is measured and classified under ASC 718 for its entire life, unless the award is modified after it vests and the grantee is no longer a customer. The new guidance is effective for public entities that have adopted ASU 2018-07 in fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted. The Company does not believe the adoption of this new guidance will have an impact on its consolidated financial statements. |
Financial Instruments and Fair
Financial Instruments and Fair Value | 9 Months Ended |
Oct. 31, 2019 | |
Investments All Other Investments [Abstract] | |
Financial Instruments and Fair Value | 2. Financial Instruments and Fair Value The Company invests a portion of its cash in debt securities that are denominated in United States dollars. The investment portfolio consists of money market funds, asset-backed securities, commercial paper, U.S. government securities, and debt securities of corporations. All of the investments are classified as available-for-sale securities and reported at fair value in the condensed consolidated balance sheets as follows: As of October 31, 2019 Amortized Unrealized Unrealized Losses Fair Value (in thousands) Money market funds $ 23,595 $ — $ — $ 23,595 Commercial paper 66,320 — — 66,320 Corporate bonds 85,890 617 (12 ) 86,495 Asset-backed securities 16,516 43 (6 ) 16,553 U.S. government securities 16,823 43 — 16,866 Total cash equivalents and marketable debt securities $ 209,144 $ 703 $ (18 ) $ 209,829 As of January 31, 2019 Amortized Unrealized Gains Unrealized Losses Fair Value (in thousands) Money market funds $ 8,914 $ — $ — $ 8,914 Certificates of Deposit 7,012 — — 7,012 Commercial paper 68,233 — — 68,233 Corporate bonds 87,250 170 (60 ) 87,360 Asset-backed securities 11,607 3 (6 ) 11,604 U.S. government securities 21,993 3 (13 ) 21,983 Total cash equivalents and marketable debt securities $ 205,009 $ 176 $ (79 ) $ 205,106 As of October 31, 2019 January (in thousands) Included in cash equivalents $ 61,348 $ 40,245 Included in marketable debt securities 148,481 164,861 Total cash equivalents and marketable debt securities $ 209,829 $ 205,106 The contractual maturities of the investments at October 31, 2019 and January 31, 2019 were as follows: As of October 31, 2019 January (in thousands) Due within one year $ 153,433 $ 151,991 Due within one to three years 56,396 53,115 Total cash equivalents and marketable debt securities $ 209,829 $ 205,106 The unrealized losses on the available-for-sale securities were primarily caused by fluctuations in market value and interest rates as a result of the economic environment. As the decline in market value was attributable to changes in market conditions and not credit quality, and because the Company neither intended to sell nor was it more likely than not that it will be required to sell these investments prior to a recovery of par value, the Company did not consider these investments to be other-than temporarily impaired as of October 31, 2019 and January 31, 2019, respectively. The following fair value hierarchy is applied for disclosure of the inputs used to measure fair value. This hierarchy prioritizes the inputs into three broad levels as follows: Level 1—Inputs are unadjusted quoted prices in active markets for identical assets or liabilities. Level 2—Inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the assets or liabilities, either directly or indirectly through market corroboration, for substantially the full term of the financial instruments. Level 3—Unobservable inputs based on the Company’s own assumptions used to measure assets and liabilities at fair value. The inputs require significant management judgment or estimation. The Company measures the fair value of money market funds and certificates of deposit using quoted prices in active markets for identical assets and classifies them within Level 1. The respective fair values of the Company’s investments in other debt securities are obtained based on quoted prices for similar assets in active markets and are classified within Level 2. The following table presents the fair value of the financial instruments measured on a recurring basis as of October 31, 2019 and January 31, 2019: As of October 31, 2019 Total Level 1 Level 2 Level 3 (in thousands) Money market funds $ 23,595 $ 23,595 $ — $ — Commercial paper 66,320 — 66,320 — Corporate bonds 86,495 — 86,495 — Asset-backed securities 16,553 — 16,553 — U.S. government securities 16,866 — 16,866 — Total cash equivalents and marketable debt securities $ 209,829 $ 23,595 $ 186,234 $ — As of January 31, 2019 Total Level 1 Level 2 Level 3 (in thousands) Money market funds $ 8,914 $ 8,914 $ — $ — Certificates of Deposit 7,012 7,012 — — Commercial paper 68,233 — 68,233 — Corporate bonds 87,360 — 87,360 — Asset-backed securities 11,604 — 11,604 — U.S. government securities 21,983 — 21,983 — Total cash equivalents and marketable debt securities $ 205,106 $ 15,926 $ 189,180 $ — |
Inventories
Inventories | 9 Months Ended |
Oct. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | 3. Inventories Inventories at October 31, 2019 and January 31, 2019 consisted of the following: As of October 31, 2019 January (in thousands) Work-in-progress $ 11,830 $ 9,430 Finished goods 8,015 8,822 Total $ 19,845 $ 18,252 |
Property and Equipment, Net
Property and Equipment, Net | 9 Months Ended |
Oct. 31, 2019 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment, Net | 4. Property and Equipment, Net Depreciation expense was approximately $0.7 million and $0.6 million for the three months ended October 31, 2019 and 2018, respectively. Depreciation expense was approximately $2.1 million and $1.9 million for the nine months ended October 31, 2019 and 2018, respectively. Property and equipment at October 31, 2019 and January 31, 2019 consisted of the following: As of October 31, 2019 January (in thousands) Computer equipment and software $ 10,095 $ 9,098 Machinery and equipment 6,162 5,659 Furniture and fixtures 969 969 Leasehold improvements 2,345 2,331 Construction in progress 49 330 19,620 18,387 Less: accumulated depreciation and amortization (13,693 ) (11,659 ) Total property and equipment, net $ 5,927 $ 6,728 |
Intangible Assets, Net
Intangible Assets, Net | 9 Months Ended |
Oct. 31, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangible Assets, Net | 5. Intangible Assets, Net Intangible assets primarily consist of $4.1 million of in-process research and development (“IPR&D”) from the acquisition of VisLab S.r.l., or VisLab, The Company enters into certain internal-use noncancelable software license agreements with third parties from time-to-time. The licenses have been capitalized as intangible assets, and the corresponding future payments have been recorded as liabilities at net present value. As of October 31, 2019 and January 31, 2019, $2.8 million and $4.9 million was recorded in accrued and other current liabilities, respectively, and $0.7 million and $0.3 million was recorded in other long-term liabilities, respectively, in the condensed consolidated balance sheets. The carrying amounts of intangible assets as of October 31, 2019 and January 31, 2019 were as follows : As of October 31, 2019 As of January 31, 2019 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount (in thousands) In-process research and development $ 4,100 $ — $ 4,100 $ 4,100 $ — $ 4,100 Internal-use software licenses 15,654 (11,522 ) 4,132 14,448 (7,612 ) 6,836 Total acquired intangible assets $ 19,754 $ (11,522 ) $ 8,232 $ 18,548 $ (7,612 ) $ 10,936 The amortization expense related to these software licenses was approximately $1.3 million and $1.2 million for the three months ended October 31, 2019 and 2018, respectively. The amortization expense related to these software licenses was approximately $3.9 million and $3.5 million for the nine months ended October 31, 2019 and 2018, respectively. The estimated future amortization expense of these software licenses as of October 31, 2019 is as follows: As of October 31, 2019 Fiscal Year (in thousands) 2020 (3 months remaining) $ 1,359 2021 2,099 2022 552 2023 122 2024 — Thereafter — Total future amortization expenses: $ 4,132 IPR&D is required to be tested for impairment at least annually in the fourth fiscal quarter or sooner whenever events or changes in circumstances indicate that the assets may be impaired. There were no intangible asset impairments for the three and nine months ended October 31, 2019 and 2018, respectively. |
Accrued and Other Current Liabi
Accrued and Other Current Liabilities | 9 Months Ended |
Oct. 31, 2019 | |
Payables And Accruals [Abstract] | |
Accrued and Other Current Liabilities | 6. Accrued and Other Current Liabilities Accrued and other current liabilities at October 31, 2019 and January 31, 2019 consisted of the following: As of October 31, 2019 January (in thousands) Accrued employee compensation $ 14,982 $ 10,645 Accrued rebates 247 311 Accrued product development costs 8,017 6,393 Software license liabilities, current 2,839 4,879 Other accrued liabilities 2,362 2,472 Total accrued and other current liabilities $ 28,447 $ 24,700 |
Leases
Leases | 9 Months Ended |
Oct. 31, 2019 | |
Leases [Abstract] | |
Leases | 7. Leases The Company has entered into various operating leases for its worldwide office buildings and research and development facilities. During the three months ended October 31, 2019, the Company exercised the renewal option to extend its U.S. office lease for a period of 63 months beginning from June 1, 2020 through August 31, 2025 and renewed its Shanghai office lease for another two years beginning from December 1, 2019 to November 30, 2021. The Company accounted these two renewed contracts as lease modifications and recorded an increase to the operating lease right-of-use assets and corresponding operating lease liabilities by approximately $4.0 million, respectively, in the condensed consolidated balance sheets. The Company also signed a separate lease for additional space for its U.S. office for a period of 56 months beginning from January 1, 2021 through August 31, 2025 and will record it in the balance sheet upon commencement date on January 1, 2021. T he total estimated future undiscounted cash payments for this lease are approximately $1.7 million In August 2019, VisLab, a wholly-owned subsidiary, was granted a land lease for 35 years with an obligation to construct a building on the land in Parma, Italy (“Parma lease”). The Company will be responsible for the costs of construction and occupy the building after completion of construction for the remainder of the lease term. which is expected to be two years after The total estimated future undiscounted cash payments are approximately $2.2 million, of which $1.8 million will be paid in the first two years and the remaining balance of $0.4 million will be paid over the remainder of the lease term. For the three and nine months ended October 31, 2019, the Company recorded approximately $0.7 million and $2.2 million of operating lease expense, respectively. The Company's short-term leases and finance leases are immaterial as of October 31, 2019 . The cumulative effect of the changes made to the condensed consolidated balance sheet as of February 1, 2019 for the adoption of ASC 842 was as follows: Balance as of Opening Balance as of January 31, 2019 Adjustment February 1, (in thousands) Operating lease right-of-use assets $ — $ 8,581 $ 8,581 Prepaid expenses and other current assets $ 6,206 $ (174 ) $ 6,032 Accrued and other current liabilities $ 24,700 $ (279 ) $ 24,421 Operating lease liabilities, current $ — $ 2,534 $ 2,534 Operating lease liabilities, non-current $ — $ 6,152 $ 6,152 Supplemental cash flow information related to leases is as follows: Three Months Ended Nine Months Ended October 31, 2019 October 31, 2019 (in thousands) Cash paid for operating leases included in operating cash flows $ 784 $ 2,238 Supplemental non-cash information related to lease liabilities arising from obtaining right-of-use assets $ 82 $ 210 Leased assets obtained in exchange for operating lease liabilities arising from lease modifications $ 4,021 $ 4,021 As of October 31, 2019, the weighted average remaining lease term is 5.17 years, and the weighted average discount rate is 4.43 percent. Future minimum lease payments for the lease liabilities, excluding the additional space for the U.S. office and the Parma lease described above, are as follows : As of October 31, 2019 Fiscal Year (in thousands) 2020 (3 months remaining) $ 633 2021 2,487 2022 2,353 2023 1,644 2024 1,693 Thereafter 2,947 Total future annual minimum lease payments 11,757 Less: interest (1,077 ) Total lease liabilities $ 10,680 Prior to the adoption of the new leases guidance, future minimum undiscounted lease payments as of January 31, 2019 were as follows: As of January 31, 2019 Fiscal Year (in thousands) 2020 $ 2,592 2021 1,040 2022 356 2023 143 2024 147 Thereafter 576 Total future annual minimum lease payments $ 4,854 The increased liabilities, as compared to the minimum lease payments as of January 31, 2019, were primarily attributable to a renewal option exercised and lease modifications during the nine months ended October 31, 2019. |
Other Long-Term Liabilities
Other Long-Term Liabilities | 9 Months Ended |
Oct. 31, 2019 | |
Other Liabilities Disclosure [Abstract] | |
Other Long-Term Liabilities | 8. Other Long-Term Liabilities Other long-term liabilities at October 31, 2019 and January 31, 2019 consisted of the following: As of October 31, 2019 January (in thousands) Unrecognized tax benefits, including interest $ 7,872 $ 6,732 Deferred tax liabilities, non-current 1,293 1,293 Software license liabilities, non-current 660 310 Other long-term liabilities 100 6 Total other long-term liabilities $ 9,925 $ 8,341 |
Capital Stock
Capital Stock | 9 Months Ended |
Oct. 31, 2019 | |
Equity [Abstract] | |
Capital Stock | 9. Capital Stock Preference shares After completion of the Company’s initial public offering in 2012, a total of 20,000,000 preference shares, with a $0.00045 par value per share, were authorized. There were no preference shares issued and outstanding as of October 31, 2019 and January 31, 2019, respectively. Ordinary shares As of October 31, 2019 and January 31, 2019, a total of 200,000,000 ordinary shares were authorized. On February 1, 2019, the Company added 1,453,659 ordinary shares to the ordinary shares reserved for issuance, pursuant to an “evergreen” provision contained in the 2012 Equity Incentive Plan, or EIP. Pursuant to such provision, for each fiscal year, the number of ordinary shares reserved for issuance under the EIP is automatically increased by a number equal to the lesser of (i) 3,500,000 ordinary shares, (ii) four and one half percent (4.5%) of the aggregate number of ordinary shares outstanding on January 31st of the preceding fiscal year, or (iii) a lesser number of shares that may be determined by the Company’s Board of Directors. On February 1, 2019, the Company added 403,794 ordinary shares to the ordinary shares reserved for issuance, pursuant to an “evergreen” provision contained in the Amended and Restated 2012 Employee Stock Purchase Plan, or ESPP. Pursuant to such provision, for each fiscal year, the number of ordinary shares reserved for issuance under the ESPP is automatically increased by a number equal to the lesser of (i) 1,500,000 ordinary shares, (ii) one and one quarter percent (1.25%) of the aggregate number of ordinary shares outstanding on such date, or (iii) an amount determined by the Company’s Board of Directors or a duly authorized committee of the Board of Directors. As of October 31, 2019 and January 31, 2019, the following ordinary shares were reserved for future issuance under the EIP and ESPP: As of October 31, 2019 January 31, 2019 Shares reserved for options, restricted stock and restricted stock units under EIP 6,310,393 5,915,654 Shares reserved for ESPP 2,059,504 1,833,574 Shares repurchased On June 4, 2018, the Company’s Board of Directors authorized the repurchase of up to $100.0 million of the Company’s ordinary shares over a twelve-month |
Stock-based Compensation
Stock-based Compensation | 9 Months Ended |
Oct. 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-based Compensation | 10. Stock-based Compensation The following table presents the classification of stock-based compensation for the periods indicated: Three Months Ended October 31, Nine Months Ended October 31, 2019 2018 2019 2018 (in thousands) Stock-based compensation: Cost of revenue $ 335 $ 310 $ 922 $ 942 Research and development 10,601 9,720 31,306 27,847 Selling, general and administrative 6,372 5,582 17,740 16,148 Total stock-based compensation $ 17,308 $ 15,612 $ 49,968 $ 44,937 During the three and nine months ended October 31, 2019, approximately $2.0 million and $4.2 million of stock-based compensation expense was accrued in the accrued and other current liabilities in the condensed consolidated balance sheets, respectively. As of October 31, 2019, total unrecognized compensation cost related to unvested stock options was $4.1 million and is expected to be recognized over a weighted-average period of 2.61 years. Total unrecognized compensation cost related to unvested restricted stock units was $128.2 million and is expected to be recognized over a weighted-average period of 2.68 years. All restricted stock awards were fully vested as of October 31, 2019. The following table sets forth the weighted-average assumptions used to estimate the fair value of stock options and employee stock purchase plan awards for the periods indicated: Three Months Ended October 31, Nine Months Ended October 31, 2019 2018 2019 2018 Stock Options: Volatility 52 % 53 % 52 % 54 % Risk-free interest rate 1.39 % 2.78 % 1.84 % 2.75 % Expected term (years) 6.09 5.45 6.02 5.40 Dividend yield 0 % 0 % 0 % 0 % Employee stock purchase plan awards: Volatility 46 % 44 % 47 % 45 % Risk-free interest rate 1.93 % 2.35 % 2.23 % 2.15 % Expected term (years) 0.5 0.5 0.5 0.5 Dividend yield 0 % 0 % 0 % 0 % The following table summarizes stock option activities for the period indicated: Option Outstanding Weighted- Total Average Weighted- Value Of Remaining Aggregate Weighted- Average Options Contractual Intrinsic Average Grant-date Exercised Term Value Shares Exercise Fair Value (in (in years) (in Outstanding at January 31, 2019 1,459,064 $ 28.31 Granted 57,350 49.79 $ 25.06 Exercised (338,289 ) 15.43 $ 12,054 Forfeited (13,306 ) 45.65 Expired (9,751 ) 55.95 Outstanding at October 31, 2019 1,155,068 32.71 4.54 $ 26,387 Exercisable at October 31, 2019 981,191 $ 29.94 3.80 $ 25,280 The intrinsic value of options outstanding and exercisable is calculated based on the difference between the fair market value of the Company’s ordinary shares on the reporting date and the exercise price. The closing price of the Company’s ordinary shares on October 31, 2019 was $52.63, as reported by The NASDAQ Global Market. The intrinsic value of exercised options is calculated by the difference between the fair market value of the Company’s ordinary shares on the exercise date and the exercise price. The following table summarizes restricted stock and restricted stock units activities for the period indicated: Weighted- Average Grant-Date Shares Fair Value Unvested at January 31, 2019 2,395,516 $ 48.49 Granted 1,296,053 54.48 Vested (775,893 ) 51.41 Forfeited (80,496 ) 55.50 Unvested at October 31, 2019 2,835,180 $ 50.23 As of October 31, 2019, the aggregate intrinsic value of unvested restricted stock units was $149.2 million. |
Net Loss Per Ordinary Share
Net Loss Per Ordinary Share | 9 Months Ended |
Oct. 31, 2019 | |
Earnings Per Share [Abstract] | |
Net Loss Per Ordinary Share | 11. Net Loss Per Ordinary Share The following table sets forth the computation of basic and diluted loss per ordinary share for the periods indicated: Three Nine 2019 2018 2019 2018 (in thousands, except share and per share data) Numerator: Net loss $ (4,309 ) $ (9,021 ) $ (31,811 ) $ (25,904 ) Denominator: Weighted-average ordinary shares - basic 33,304,171 32,171,890 32,885,729 32,908,614 Weighted-average ordinary shares - diluted 33,304,171 32,171,890 32,885,729 32,908,614 Net loss per ordinary share: Basic $ (0.13 ) $ (0.28 ) $ (0.97 ) $ (0.79 ) Diluted $ (0.13 ) $ (0.28 ) $ (0.97 ) $ (0.79 ) The following weighted-average potentially dilutive securities were excluded from the computation of diluted loss per ordinary share as their effect would have been antidilutive: Three Months Ended October 31, Nine Months Ended October 31, 2019 2018 2019 2018 Options to purchase ordinary shares 873,515 1,247,117 948,283 1,172,152 Restricted stock and restricted stock units 1,675,570 2,243,272 1,195,320 1,494,860 Employee stock purchase plan 13,672 58,530 11,204 35,204 2,562,757 3,548,919 2,154,807 2,702,216 |
Income Taxes
Income Taxes | 9 Months Ended |
Oct. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 12. Income Taxes The following table provides details of income taxes for the periods indicated: Three Months Ended October 31, Nine Months Ended October 31, 2019 2018 2019 2018 (in thousands) Loss before income taxes $ (5,251 ) $ (8,429 ) $ (29,509 ) $ (23,537 ) Provision (benefit) for income taxes (942 ) 592 2,302 2,367 Effective tax rate 17.9% (7.0)% (7.8%) (10.1%) The income tax expense decreased for the three and nine months ended October 31, 2019, respectively, as compared to the same periods in the prior fiscal year, primarily due to an increase in tax benefits from excess stock-based compensation deductions, partially offset by a decrease in the proportion of profits generated in lower tax jurisdictions . The Company files federal and state income tax returns in the United States and in various foreign jurisdictions. The tax years 2013 to 2018 remain open to examination by U.S. federal tax authorities. The tax years 2009 to 2018 remain open to examination by U.S. state tax authorities. The tax years 2013 to 2018 remain open to examination by foreign tax authorities. Fiscal years outside of the normal statute of limitations remain open to audit by tax authorities due to tax attributes generated in those earlier years, which have been carried forward and may be audited in subsequent years when utilized. The Company regularly assesses the likelihood of adverse outcomes resulting from potential tax examinations to determine the adequacy of its provision for income taxes. These assessments can require considerable estimates and judgments. As of October 31, 2019, the gross amount of unrecognized tax benefits was approximately $40.5 million. If the estimates of income tax liabilities prove to be less than the ultimate assessment, then a further charge to expense could be required. If events occur, and the payment of these amounts ultimately proves to be unnecessary, the reversal of the liabilities could result in tax benefits being recognized in the period in which the Company determines the liabilities are no longer necessary. The Company does not anticipate significant changes to its uncertain tax positions during the next twelve months. On July 27, 2015, the United States Tax Court issued a decision (“Tax Court Decision”) in Altera Corp. v. Commissioner Altera |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Oct. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 13. Commitments and Contingencies Contract Manufacturer Commitments The Company’s components and products are procured and built by independent contract manufacturers based on sales forecasts. These forecasts include estimates of future demand, historical trends, analysis of sales and marketing activities, and adjustment of overall market conditions. The Company regularly issues purchase orders to independent contract manufacturers which are cancelable upon agreement between the Company and the third-party manufacturers. As of October 31, 2019 and January 31, 2019, total manufacturing purchase commitments were approximately $27.6 million and $28.2 million, respectively. Indemnification The Company, from time to time, in the normal course of business, indemnifies certain vendors with whom it enters into contractual relationships. The Company has agreed to hold the other party harmless against third-party claims in connection with the Company’s future products. The Company also indemnifies certain customers against third-party claims related to certain intellectual property matters. It is not possible to determine the maximum potential amount of liability under these indemnification obligations due to the limited history of prior indemnification claims and the unique facts and circumstances that are likely to be involved in each particular claim. The Company has not made payments under these obligations, and no liabilities have been recorded for these obligations in the condensed consolidated balance sheets as of October 31, 2019 and January 31, 2019, respectively. |
Segment Reporting
Segment Reporting | 9 Months Ended |
Oct. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Reporting | 14. Segment Reporting The Company operates in one reportable segment related to the development and sales of low-power, high-definition (HD), Ultra HD video compression, image processing and computer vision solutions. The Chief Executive Officer of the Company has been identified as the Chief Operating Decision Maker (the “CODM”) and manages the Company’s operations as a whole. For the purpose of evaluating financial performance and allocating resources, the CODM reviews financial information presented on a consolidated basis accompanied by information by customer and geographic region. Geog raphic Revenue The following table sets forth the Company’s revenue by geographic region based on bill-to location for the periods indicated: Three Months Ended October 31, Nine Months Ended October 31, 2019 2018 2019 2018 (in thousands) Taiwan $ 42,986 $ 28,300 $ 101,567 $ 100,650 Asia Pacific 18,011 20,971 49,745 55,372 Europe 2,264 5,734 9,848 13,191 North America other than United States 2,804 1,531 6,688 5,040 United States 1,857 750 3,672 2,445 Total revenue $ 67,922 $ 57,286 $ 171,520 $ 176,698 As of October 31, 2019, substantially all of the Company’s property and equipment, net, was located in the United States, Asia Pacific region and Europe with approximate net amounts of $1.8 million, $2.8 million and $1.3 million, respectively. Major Customers The customers representing 10% or more of revenue and accounts receivable were Wintech and Chicony, which accounted for approximately 63.2% and 15.7% of total revenue for the three months ended October 31, 2019, respectively, and accounted for approximately 59.2% and 17.8% of total revenue for the nine months ended October 31, 2019, respectively. The customers representing 10% or more of revenue and accounts receivable were Wintech and Chicony, which accounted for approximately 49.4% and 22.7% of total revenue for the three months ended October 31, 2018, respectively, and accounted for approximately 57.0% and 16.3% of total revenue for the nine months ended October 31, 2018, respectively. Accounts receivable with Wintech and Chicony were approximately $5.9 million and $10.7 million as of October 31, 2019, respectively. Accounts receivable with Wintech and Chicony were approximately $14.3 million and $6.9 million as of January 31, 2019, respectively. |
Organization and Summary of S_2
Organization and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Oct. 31, 2019 | |
Accounting Policies [Abstract] | |
Organization | Organization Ambarella, Inc. (the “Company”) was incorporated in the Cayman Islands on January 15, 2004. The Company is a leading developer of low-power, high-definition (HD) and Ultra HD video compression and image processing solutions, and computer vision solutions. The Company combines its processor design capabilities with its expertise in video and image processing, algorithms and software to provide a technology platform that is designed to be easily scalable across multiple applications and enable rapid and efficient product development. The Company’s system-on-a-chip, or SoC, designs fully integrated high-definition video processing, image processing, analysis, audio processing and system functions onto a single chip, delivering exceptional video and image quality, differentiated functionality and low power consumption. Currently the Company is combining advanced computer vision technology with its state-of-the-art video to enable the next generation of intelligent cameras, advanced driver assistance systems (ADAS), electronic mirror, drive recorder, driver/cabin monitoring, autonomous driving and other robotic applications. The Company sells its solutions to leading original design manufacturers, or ODMs, and original equipment manufacturers, or OEMs, globally. |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared by the Company in accordance with the instructions to Form 10-Q pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) and, therefore, do not include all information and notes normally provided in audited financial statements. The accounting policies are described in the “Notes to Consolidated Financial Statements” in the Annual Report on Form 10-K for the 2019 fiscal year filed with the SEC on March 29, 2019 (the “Form 10-K”) and updated, as necessary, in this Form 10-Q. The year-end condensed consolidated balance sheet data presented for comparative purposes was derived from audited financial statements, but does not include all disclosures required by generally accepted accounting principles in the United States (“U.S. GAAP”). In the opinion of management, all adjustments (consisting of normal recurring accruals and adjustments) considered necessary for a fair statement have been included. The results of operations for any interim period are not necessarily indicative of, nor comparable to, the results of operations for any other interim period or for a full fiscal year. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes contained in the Form 10-K. |
Basis of Consolidation | Basis of Consolidation The Company’s fiscal year ends on January 31. The condensed consolidated financial statements of the Company and its subsidiaries have been prepared in conformity with U.S. GAAP. All intercompany transactions and balances have been eliminated upon consolidation. |
Use of Estimates | Use of Estimates The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expense during the reported periods. Actual results could differ from those estimates. On an ongoing basis, management evaluates its estimates and assumptions, including those related to (i) the collectability of accounts receivable; (ii) write down of excess and obsolete inventories; (iii) intangible assets and goodwill; (iv) the estimated useful lives of long-lived assets; (v) impairment of long-lived assets and financial instruments; (vi) warranty obligations; (vii) the valuation of stock-based compensation awards and financial instruments; (viii) the probability of performance objectives achievement; (ix) the realization of tax assets and estimates of tax liabilities, including reserves for uncertain tax positions; and (x) the recognition and disclosure of contingent liabilities. These estimates and assumptions are based on historical experience and on various other factors which the Company believes to be reasonable under the circumstances. The Company may engage third-party valuation specialists to assist with estimates related to the valuation of financial instruments, assets and stock awards associated with various contractual arrangements. Such estimates often require the selection of appropriate valuation methodologies and significant judgment. Actual results could differ from these estimates under different assumptions or circumstances and such differences could be material. |
Concentration of Risk | Concentration of Risk The Company’s products are manufactured, assembled and tested by third-party contractors located primarily in Asia. The Company does not have long-term agreements with these contractors. A significant disruption in the operations of one or more of these contractors would impact the production of the Company’s products which could have a material adverse effect on its business, financial condition and results of operations. A substantial portion of the Company’s revenue is derived from sales through one of its distributors, Wintech Microelectronics Co., Ltd., or Wintech, which serves as its non-exclusive sales representative in Asia other than Japan, and directly to one ODM customer, Chicony Electronics Co., Ltd., or Chicony. Termination of the relationships with these customers could result in a temporary or permanent loss of revenue. Furthermore, any credit issues from these customers could impair their abilities to make timely payment to the Company. See Note 14 for additional information regarding revenue and credit concentration with these customers. Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash, cash equivalents, marketable debt securities and accounts receivable. The Company maintains its cash primarily in checking accounts with reputable financial institutions. Cash deposits held with these financial institutions may exceed the amount of insurance provided on such deposits. The Company has not experienced any losses on deposits of its cash. In order to limit the exposure of each investment, the cash equivalents and marketable debt securities consist primarily of money market funds, asset-backed securities, commercial paper, U.S. government securities and debt securities of corporations which management assesses to be highly liquid. The Company does not hold or issue financial instruments for trading purposes. The Company performs ongoing credit evaluations of its customers and adjusts credit limits based upon payment history and customers’ credit worthiness. The Company regularly monitors collections and payments from its customers. |
Cash Equivalents and Marketable Debt Securities | Cash Equivalents and Marketable Debt Securities The Company considers all highly liquid debt security investments with original maturities of less than three months at the time of purchase to be cash equivalents. Debt security investments that are highly liquid with original maturities at the time of purchase greater than three months are considered marketable debt securities. The Company classifies these investments as “available-for-sale” securities carried at fair value, based on quoted market prices of similar assets, with the unrealized gains or losses reported, net of tax, as a separate component of shareholders’ equity and included in accumulated other comprehensive income in the condensed consolidated balance sheets. The amortization of premiums and accretion of discounts and the realized gains and losses are both recorded in other income, net, in the condensed consolidated statements of operations. The Company reviews its investments for possible other-than-temporary impairments on a regular basis. If any loss on investment is believed to be other-than-temporary, a charge will be recorded and a new cost basis in the investment will be established. In evaluating whether a loss on a security is other-than-temporary, the Company considers the following factors: (i) general market conditions, (ii) the duration and extent to which the fair value is less than cost and (iii) the Company’s intent and ability to hold the investment. For securities in an unrealized loss position which is deemed to be other-than-temporary, the difference between the security’s then-current amortized cost basis and fair value is separated into (i) the amount of the impairment related to the credit loss (i.e., the credit loss component) and (ii) the amount of the impairment related to all other factors (i.e., the non-credit loss component). The credit loss component is recognized in earnings. The non-credit loss component is recognized in accumulated other comprehensive loss. Due to the relative short term nature of the investments, there have been no other-than-temporary impairments recorded to date. |
Restricted Cash | Restricted Cash Amounts included in restricted cash represent those required to be set aside to secure certain transactions in a foreign entity. As of October 31, 2019 and January 31, 2019, the restricted cash was immaterial. The following table presents cash, cash equivalents and restricted cash reported on the condensed consolidated balance sheets and the sums are presented on the condensed consolidated statements of cash flows: As of October 31, 2019 January 31, 2019 October 31, 2018 January 31, 2018 (in thousands) Cash and cash equivalents $ 252,310 $ 194,047 $ 212,338 $ 346,672 Restricted cash 9 11 11 9 Total as presented in the consolidated statements of cash flows $ 252,319 $ 194,058 $ 212,349 $ 346,681 |
Inventories | Inventories The Company records inventories at the lower of cost or net realizable value. The cost includes materials and other production costs and is computed using standard cost on a first-in, first-out basis. Inventory reserves are recorded for estimated obsolescence or unmarketable inventories based on forecast of future demand and market conditions. Any adjustments to reduce the cost of inventories to their net realizable value are recognized in earnings in the current period. |
Noncancelable Internal-Use Software License | Noncancelable Internal-Use Software License The Company accounts for a noncancelable on premise internal-use software license as the acquisition of an intangible asset and the incurrence of a liability to the extent that all or a portion of the software licensing fees are not paid on or before the license acquisition date. The intangible asset and related liability are recorded at net present value and interest expense is recorded over the payment term. |
Leases | Leases Effective February 1, 2019, the Company adopted Accounting Standards Codification (“ASC”) Topic 842, Leases, using the alternative transition method with an adjustment to the opening balance in the period of adoption without adjustment of comparative period financial statements. Under this new guidance, the Company recognizes leases as right-of-use (“ROU”) assets and corresponding lease liabilities at the lease commencement date based on the present value of future lease payments, while recognizing lease expenses under straight-line method through the lease term. The Company also elected the other available practical expedients, and has elected not to recognize ROU assets and lease liabilities that arise from short-term (12 months or less) leases and not to reassess the following for existing leases as of February 1, 2019: (i) whether contracts are or contain leases, (ii) lease classification, and (iii) initial direct costs. The Company does not combine lease components with non-lease components, and as a result, the non-lease components are accounted for separately. In determining the present value of lease payments, the Company uses the implicit interest rate if readily determinable. When the implicit rate is not readily determinable, the Company uses its incremental borrowing rate based on the information available at the lease commencement date. The Company's leases mainly include its worldwide office facilities which are all classified as operating leases. Certain leases include renewal options that are under the Company's discretion. The renewal options are included in the ROU and liability calculation if it is reasonably certain that the Company will exercise the option. As of February 1, 2019, the Company recognized approximately $8.6 million of ROU assets, net of previously recognized prepaid rent and accrued liabilities, and corresponding lease liabilities of $8.7 million. The Company's finance leases are immaterial as of October 31, 2019 and February 1, 2019, respectively. |
Revenue Recognition | Revenue Recognition Effective February 1, 2018, the Company adopted ASC 606, Revenue from Contracts with Customers. As a result, the Company recognizes product revenue upon shipment and transfer of control to distributors (known as “sell-in” revenue recognition) rather than shipment to the end customers (known as “sell-through” revenue recognition) based on its estimate of the consideration it expects to receive. Revenue recognition is evaluated through the following five steps: (i) identification of the contract, or contracts, with a customer; (ii) identification of the performance obligations in the contract; (iii) determination of the transaction price; (iv) allocation of the transaction price to the performance obligations in the contract; and (v) recognition of revenue when or as a performance obligation is satisfied. The sale of semiconductor products accounts for the substantial majority of the Company’s consolidated revenue. Sales agreements with customers are renewable periodically and contain terms and conditions with respect to payment, delivery, warranty, supply and other rights. The Company considers an accepted customer purchase order, governed by sales agreement, to be the contract with the customer. For each contract, the Company considers the promise to transfer tangible products to be the identified performance obligation. Product sales contracts may include volume-based tiered pricing or rebates that are fulfilled in cash or product. In determining the transaction price, the Company accounts for the right of returns, cash rebates, commissions and other pricing adjustments as variable consideration and estimates these amounts based on the expected amount to be provided to customers and reduces the revenue recognized. The Company estimates sales returns and rebates based on the Company’s historical patterns of return and pricing credits. As the Company’s standard payment terms are 30 days to 60 days, the contracts have no financing component. Under ASC 606, the Company estimates the total consideration to be received by using the expected value method for each contract, computes weighted average selling price for each unit shipped in cases where there is a material right due to the presence of volume-based tiered pricing, allocates the total consideration between the identified performance obligations, and recognizes revenue when control of its goods and services is transferred to its customers. The Company considers product control to be transferred at shipment or delivery because the Company has a present right to payment at that time, the customer has legal title to the asset, the Company has transferred physical possession of the asset, and the customer has significant risk and rewards of ownership of the asset. The Company also enters into fixed-price engineering service agreements with certain customers. These agreements may include multiple performance obligations, such as software development services, licensing of intellectual property and post-contract customer support, or PCS. These multiple performance obligations are highly interdependent, highly interrelated, are typically not sold separately and do not have standalone selling prices. They are all inputs to generate one combined output which is incorporating the Company’s SoC into the customer’s product. Accordingly, the Company determines that they are not separately identifiable and shall be treated as a single performance obligation. Customers usually pay based on milestones achieved. Because payments received do not correspond directly with the value of the Company’s performance to date, for fixed-price engineering services arrangements, revenue is recognized using the time-based straight line method, which best depicts the Company’s performance toward complete satisfaction of the performance obligation based on the nature of such professional services. Revenues from engineering service agreements were not material for the three and nine months ended October 31, 2019 and 2018, respectively. The Company records contract assets when revenue is recognized prior to invoicing. The Company’s contract liabilities are primarily related to the portion of transaction price that exceeds the weighted average selling price for products sold to date under tiered-pricing contracts which contain material rights. These contract liabilities are expected to be recognized over the course of the contract when products are delivered for future pricing below the weighted average selling price of the contract. For the three and nine months ended October 31, 2019 and 2018, the Company did not recognize any material revenue adjustment related to performance obligations satisfied in prior periods released from these contract liabilities. As of October 31, 2019 and January 31, 2019, the contract liabilities were not material. Additionally, the transaction price allocated to unsatisfied, or partially unsatisfied, purchase orders for contracts that are greater than a year was not material as of October 31, 2019 and January 31, 2019, respectively. |
Cost of Revenue | Cost of Revenue Cost of revenue includes cost of materials, cost associated with packaging and assembly, testing and shipping, cost of personnel, stock-based compensation, logistics and quality assurance, warranty cost, royalty expense, write-downs of inventories and allocation of overhead. |
Research and Development | Research and Development Research and development costs are expensed as incurred and consist primarily of personnel costs, product development costs, which include engineering services, development software and hardware tools, license fees, costs of fabrication of masks for prototype products, other development materials costs, depreciation of equipment and tools and allocation of facility costs, net of any research and development grants. As of October 31, 2019, there was approximately $1.2 million of grants recorded in prepaid expenses and other current assets and approximately $2.9 million of grants recorded in other non-current assets in the condensed consolidated balance sheets. |
Income Taxes | Income Taxes The Company records income taxes using the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in its financial statements or tax returns. In estimating future tax consequences, generally all expected future events other than enactments or changes in the tax law or rates are considered. Valuation allowances are provided when necessary to reduce deferred tax assets to the amount expected to be realized. The Company applies authoritative guidance for the accounting for uncertainty in income taxes. The guidance requires that tax effects of a position be recognized only if it is “more likely than not” to be sustained based solely on its technical merits as of the reporting date. Upon estimating its tax positions and tax benefits, the Company considers and evaluates numerous factors, which may require periodic adjustments and which may not reflect the final tax liabilities. The Company adjusts its financial statements to reflect only those tax positions that are more likely than not to be sustained under examination. As part of the process of preparing condensed 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 together with assessing temporary differences resulting from differing treatment of items, such as accruals and allowances not currently deductible for tax purposes. These differences result in deferred tax assets, which are included in the condensed consolidated balance sheets. In general, deferred tax assets represent future tax benefits to be received when certain expenses previously recognized in the condensed consolidated statements of operations become deductible expenses under applicable income tax laws, or loss or credit carryforwards are utilized. In assessing whether deferred tax assets may be realized, the Company considers whether it is more likely than not that some portion or all of deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income. The Company makes estimates and judgments about its future taxable income based on assumptions that are consistent with its plans and estimates. Should the actual amounts differ from estimates, the amount of valuation allowance could be materially impacted. Any adjustment to the deferred tax asset valuation allowance would be recorded in the condensed consolidated income statement for the periods in which the adjustment is determined to be required. |
Net Income (Loss) Per Ordinary Share | Net Income (Loss) Per Ordinary Share Basic earnings (losses) per share is computed by dividing net income (loss) available to ordinary shareholders by the weighted-average number of ordinary shares outstanding during the period. Diluted earnings (losses) per share is computed by dividing net income (loss) available to ordinary shareholders by the weighted-average number of ordinary shares outstanding during the period increased to include the number of additional ordinary shares that would have been outstanding if the potentially dilutive securities had been issued. Potentially dilutive securities include outstanding stock options, shares to be purchased under the Company’s employee stock purchase plan, unvested restricted stock and restricted stock units. The dilutive effect of potentially dilutive securities is reflected in diluted earnings (losses) per share by application of the treasury stock method. |
Comprehensive Income (Loss) | Comprehensive Income (Loss) Comprehensive income (loss) includes unrealized gains or losses from available-for-sale securities that are excluded from net income (loss). |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326), to introduce a new impairment model for recognizing credit losses on financial instruments based on an estimate of current expected credit losses (“ECL”). Under the new model, an entity is required to estimate ECL on available-for-sale (AFS) debt securities only when the fair value is below the amortized cost of the asset and is no longer based on an impairment being “other-than-temporary”. The new model also requires the impairment calculation on an individual security level and requires an entity use present value of cash flows when estimating the ECL. The credit-related losses are required to be recognized through earnings and non-credit related losses are reported in other comprehensive income. In April 2019, the FASB further clarified the scope of the credit losses standard and addressed issues related to accrued interest receivable balances, recoveries, variable interest rates and prepayment. The ASU will be effective for public entities in fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The new guidance will require modified retrospective application to all outstanding instruments, with a cumulative effect adjustment recorded to opening retained earnings as of the beginning of the first period in which the guidance becomes effective. The Company does not believe the adoption of this new guidance will have a material impact on its consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test of Goodwill Impairment, to eliminate the requirement to calculate the implied fair value of goodwill to measure a goodwill impairment cha rge. Instead, entities will record an impairment charge based on the excess of a reporting unit’s carrying amount over its fair value. This new guidance will be applied prospectively and is effective for annual and interim periods beginning after December 15, 2019. The Company does not believe the adoption of this new guidance will have a material impact on its financial position, results of operations and disclosures . In August 2018, the FASB issued 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement. Under this new guidance, the entities will no longer be required to disclose the amount of and the reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, but will be required to disclose the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements. The guidance is effective for fiscal years beginning after December 15, 2019 and for the interim periods within those fiscal years. Early adoption is permitted. The Company does not believe the adoption of this new guidance will have a material impact on its financial position, results of operations and disclosures. In August 2018, the FASB issued 2018-15, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. Under this new guidance, the entities are required to capitalize implementation costs related to a hosting arrangement that is a service contract and amortize the costs over the term of the hosting arrangement, beginning when the module or component of the hosting arrangement is ready for its intended use. The guidance is effective for fiscal years beginning after December 15, 2019 and for the interim periods within those fiscal years. Early adoption is permitted. The Company does not believe the adoption of this new guidance will have a material impact on its financial position, results of operations and disclosures. In April 2019, the FASB issued ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments – Credit Losses, Topic 815, Derivatives and Hedging, and Topic 25, Financial Instruments. The new guidance further clarifies that equity instruments without readily determinable fair values for which an entity has elected the measurement alternative should be remeasured to fair value as of the date that an observable transaction occurred. The FASB also amended the guidance to clarify that the nonrecurring fair value disclosure is applicable to equity instruments accounted for under the measurement alternative. The ASU will be effective for public entities in fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, with early adoption permitted and requires a prospective method for those related to equity securities without readily determinable fair values that are measured using the measurement alternative. The Company does not believe the adoption of this new amendment will have a material impact on its consolidated financial statements. In November 2019, the FASB issued ASU 2019-08, Compensation – Stock Compensation (Topic 718) and Revenue from Contracts with Customers (Topic 606): Codification Improvements – Share-Based Consideration Payable to a Customer. Under this new guidance, share-based payment award issued to a customer should be recorded as a reduction of the transaction price in revenue with an amount measured under the grant-date fair value of the award. Changes in the measurement of the share-based payments after the grant date that are due to the form of the consideration are not included in the transaction price and are recorded elsewhere in the income statement. The award is measured and classified under ASC 718 for its entire life, unless the award is modified after it vests and the grantee is no longer a customer. The new guidance is effective for public entities that have adopted ASU 2018-07 in fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted. The Company does not believe the adoption of this new guidance will have an impact on its consolidated financial statements. |
Organization and Summary of S_3
Organization and Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Oct. 31, 2019 | |
Accounting Policies [Abstract] | |
Schedule of Cash, Cash Equivalents and Restricted Cash | The following table presents cash, cash equivalents and restricted cash reported on the condensed consolidated balance sheets and the sums are presented on the condensed consolidated statements of cash flows: As of October 31, 2019 January 31, 2019 October 31, 2018 January 31, 2018 (in thousands) Cash and cash equivalents $ 252,310 $ 194,047 $ 212,338 $ 346,672 Restricted cash 9 11 11 9 Total as presented in the consolidated statements of cash flows $ 252,319 $ 194,058 $ 212,349 $ 346,681 |
Financial Instruments and Fai_2
Financial Instruments and Fair Value (Tables) | 9 Months Ended |
Oct. 31, 2019 | |
Investments All Other Investments [Abstract] | |
Schedule of Available-for-Sale Securities at Fair Value | All of the investments are classified as available-for-sale securities and reported at fair value in the condensed consolidated balance sheets as follows: As of October 31, 2019 Amortized Unrealized Unrealized Losses Fair Value (in thousands) Money market funds $ 23,595 $ — $ — $ 23,595 Commercial paper 66,320 — — 66,320 Corporate bonds 85,890 617 (12 ) 86,495 Asset-backed securities 16,516 43 (6 ) 16,553 U.S. government securities 16,823 43 — 16,866 Total cash equivalents and marketable debt securities $ 209,144 $ 703 $ (18 ) $ 209,829 As of January 31, 2019 Amortized Unrealized Gains Unrealized Losses Fair Value (in thousands) Money market funds $ 8,914 $ — $ — $ 8,914 Certificates of Deposit 7,012 — — 7,012 Commercial paper 68,233 — — 68,233 Corporate bonds 87,250 170 (60 ) 87,360 Asset-backed securities 11,607 3 (6 ) 11,604 U.S. government securities 21,993 3 (13 ) 21,983 Total cash equivalents and marketable debt securities $ 205,009 $ 176 $ (79 ) $ 205,106 |
Schedule of Cash Equivalents and Marketable Debt Securities | As of October 31, 2019 January (in thousands) Included in cash equivalents $ 61,348 $ 40,245 Included in marketable debt securities 148,481 164,861 Total cash equivalents and marketable debt securities $ 209,829 $ 205,106 |
Summary of Contractual Maturities of Investments | The contractual maturities of the investments at October 31, 2019 and January 31, 2019 were as follows: As of October 31, 2019 January (in thousands) Due within one year $ 153,433 $ 151,991 Due within one to three years 56,396 53,115 Total cash equivalents and marketable debt securities $ 209,829 $ 205,106 |
Schedule of Fair Value of Financial Instruments Measured on Recurring Basis | The following table presents the fair value of the financial instruments measured on a recurring basis as of October 31, 2019 and January 31, 2019: As of October 31, 2019 Total Level 1 Level 2 Level 3 (in thousands) Money market funds $ 23,595 $ 23,595 $ — $ — Commercial paper 66,320 — 66,320 — Corporate bonds 86,495 — 86,495 — Asset-backed securities 16,553 — 16,553 — U.S. government securities 16,866 — 16,866 — Total cash equivalents and marketable debt securities $ 209,829 $ 23,595 $ 186,234 $ — As of January 31, 2019 Total Level 1 Level 2 Level 3 (in thousands) Money market funds $ 8,914 $ 8,914 $ — $ — Certificates of Deposit 7,012 7,012 — — Commercial paper 68,233 — 68,233 — Corporate bonds 87,360 — 87,360 — Asset-backed securities 11,604 — 11,604 — U.S. government securities 21,983 — 21,983 — Total cash equivalents and marketable debt securities $ 205,106 $ 15,926 $ 189,180 $ — |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Oct. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventories at October 31, 2019 and January 31, 2019 consisted of the following: As of October 31, 2019 January (in thousands) Work-in-progress $ 11,830 $ 9,430 Finished goods 8,015 8,822 Total $ 19,845 $ 18,252 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 9 Months Ended |
Oct. 31, 2019 | |
Property Plant And Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment at October 31, 2019 and January 31, 2019 consisted of the following: As of October 31, 2019 January (in thousands) Computer equipment and software $ 10,095 $ 9,098 Machinery and equipment 6,162 5,659 Furniture and fixtures 969 969 Leasehold improvements 2,345 2,331 Construction in progress 49 330 19,620 18,387 Less: accumulated depreciation and amortization (13,693 ) (11,659 ) Total property and equipment, net $ 5,927 $ 6,728 |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 9 Months Ended |
Oct. 31, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Summary of Carrying Amounts of Intangible Assets | The carrying amounts of intangible assets as of October 31, 2019 and January 31, 2019 were as follows : As of October 31, 2019 As of January 31, 2019 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount (in thousands) In-process research and development $ 4,100 $ — $ 4,100 $ 4,100 $ — $ 4,100 Internal-use software licenses 15,654 (11,522 ) 4,132 14,448 (7,612 ) 6,836 Total acquired intangible assets $ 19,754 $ (11,522 ) $ 8,232 $ 18,548 $ (7,612 ) $ 10,936 |
Summary of Estimated Future Amortization Expense of Software Licenses | The estimated future amortization expense of these software licenses as of October 31, 2019 is as follows: As of October 31, 2019 Fiscal Year (in thousands) 2020 (3 months remaining) $ 1,359 2021 2,099 2022 552 2023 122 2024 — Thereafter — Total future amortization expenses: $ 4,132 |
Accrued and Other Current Lia_2
Accrued and Other Current Liabilities (Tables) | 9 Months Ended |
Oct. 31, 2019 | |
Payables And Accruals [Abstract] | |
Schedule of Accrued and Other Current Liabilities | Accrued and other current liabilities at October 31, 2019 and January 31, 2019 consisted of the following: As of October 31, 2019 January (in thousands) Accrued employee compensation $ 14,982 $ 10,645 Accrued rebates 247 311 Accrued product development costs 8,017 6,393 Software license liabilities, current 2,839 4,879 Other accrued liabilities 2,362 2,472 Total accrued and other current liabilities $ 28,447 $ 24,700 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Oct. 31, 2019 | |
Schedule of Supplemental Cash Flow Information Related to Leases | Supplemental cash flow information related to leases is as follows: Three Months Ended Nine Months Ended October 31, 2019 October 31, 2019 (in thousands) Cash paid for operating leases included in operating cash flows $ 784 $ 2,238 Supplemental non-cash information related to lease liabilities arising from obtaining right-of-use assets $ 82 $ 210 Leased assets obtained in exchange for operating lease liabilities arising from lease modifications $ 4,021 $ 4,021 |
Schedule of Future Minimum Lease Payments for Lease Liabilities Excluding Additional Space for U.S. Office and Parma Lease | As of October 31, 2019, the weighted average remaining lease term is 5.17 years, and the weighted average discount rate is 4.43 percent. Future minimum lease payments for the lease liabilities, excluding the additional space for the U.S. office and the Parma lease described above, are as follows : As of October 31, 2019 Fiscal Year (in thousands) 2020 (3 months remaining) $ 633 2021 2,487 2022 2,353 2023 1,644 2024 1,693 Thereafter 2,947 Total future annual minimum lease payments 11,757 Less: interest (1,077 ) Total lease liabilities $ 10,680 |
Schedule of Future Minimum Undiscounted Lease Payments | Prior to the adoption of the new leases guidance, future minimum undiscounted lease payments as of January 31, 2019 were as follows: As of January 31, 2019 Fiscal Year (in thousands) 2020 $ 2,592 2021 1,040 2022 356 2023 143 2024 147 Thereafter 576 Total future annual minimum lease payments $ 4,854 |
Leases (ASC 842) [Member] | |
Schedule of Cumulative Effect of the Changes to the Condensed Consolidated Balance Sheet | The cumulative effect of the changes made to the condensed consolidated balance sheet as of February 1, 2019 for the adoption of ASC 842 was as follows: Balance as of Opening Balance as of January 31, 2019 Adjustment February 1, (in thousands) Operating lease right-of-use assets $ — $ 8,581 $ 8,581 Prepaid expenses and other current assets $ 6,206 $ (174 ) $ 6,032 Accrued and other current liabilities $ 24,700 $ (279 ) $ 24,421 Operating lease liabilities, current $ — $ 2,534 $ 2,534 Operating lease liabilities, non-current $ — $ 6,152 $ 6,152 |
Other Long-Term Liabilities (Ta
Other Long-Term Liabilities (Tables) | 9 Months Ended |
Oct. 31, 2019 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Other Long-Term Liabilities | Other long-term liabilities at October 31, 2019 and January 31, 2019 consisted of the following: As of October 31, 2019 January (in thousands) Unrecognized tax benefits, including interest $ 7,872 $ 6,732 Deferred tax liabilities, non-current 1,293 1,293 Software license liabilities, non-current 660 310 Other long-term liabilities 100 6 Total other long-term liabilities $ 9,925 $ 8,341 |
Capital Stock (Tables)
Capital Stock (Tables) | 9 Months Ended |
Oct. 31, 2019 | |
Equity [Abstract] | |
Schedule of Ordinary Shares Reserved for Future Issuance under EIP and ESPP | As of October 31, 2019 and January 31, 2019, the following ordinary shares were reserved for future issuance under the EIP and ESPP: As of October 31, 2019 January 31, 2019 Shares reserved for options, restricted stock and restricted stock units under EIP 6,310,393 5,915,654 Shares reserved for ESPP 2,059,504 1,833,574 |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 9 Months Ended |
Oct. 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Classification of Stock-based Compensation | The following table presents the classification of stock-based compensation for the periods indicated: Three Months Ended October 31, Nine Months Ended October 31, 2019 2018 2019 2018 (in thousands) Stock-based compensation: Cost of revenue $ 335 $ 310 $ 922 $ 942 Research and development 10,601 9,720 31,306 27,847 Selling, general and administrative 6,372 5,582 17,740 16,148 Total stock-based compensation $ 17,308 $ 15,612 $ 49,968 $ 44,937 |
Weighted-Average Assumptions Used to Estimate Fair Value | The following table sets forth the weighted-average assumptions used to estimate the fair value of stock options and employee stock purchase plan awards for the periods indicated: Three Months Ended October 31, Nine Months Ended October 31, 2019 2018 2019 2018 Stock Options: Volatility 52 % 53 % 52 % 54 % Risk-free interest rate 1.39 % 2.78 % 1.84 % 2.75 % Expected term (years) 6.09 5.45 6.02 5.40 Dividend yield 0 % 0 % 0 % 0 % Employee stock purchase plan awards: Volatility 46 % 44 % 47 % 45 % Risk-free interest rate 1.93 % 2.35 % 2.23 % 2.15 % Expected term (years) 0.5 0.5 0.5 0.5 Dividend yield 0 % 0 % 0 % 0 % |
Stock Option Activities | The following table summarizes stock option activities for the period indicated: Option Outstanding Weighted- Total Average Weighted- Value Of Remaining Aggregate Weighted- Average Options Contractual Intrinsic Average Grant-date Exercised Term Value Shares Exercise Fair Value (in (in years) (in Outstanding at January 31, 2019 1,459,064 $ 28.31 Granted 57,350 49.79 $ 25.06 Exercised (338,289 ) 15.43 $ 12,054 Forfeited (13,306 ) 45.65 Expired (9,751 ) 55.95 Outstanding at October 31, 2019 1,155,068 32.71 4.54 $ 26,387 Exercisable at October 31, 2019 981,191 $ 29.94 3.80 $ 25,280 |
Restricted Stock and Restricted Stock Units Activities | The following table summarizes restricted stock and restricted stock units activities for the period indicated: Weighted- Average Grant-Date Shares Fair Value Unvested at January 31, 2019 2,395,516 $ 48.49 Granted 1,296,053 54.48 Vested (775,893 ) 51.41 Forfeited (80,496 ) 55.50 Unvested at October 31, 2019 2,835,180 $ 50.23 |
Net Loss Per Ordinary Share (Ta
Net Loss Per Ordinary Share (Tables) | 9 Months Ended |
Oct. 31, 2019 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Loss Per Ordinary Share | The following table sets forth the computation of basic and diluted loss per ordinary share for the periods indicated: Three Nine 2019 2018 2019 2018 (in thousands, except share and per share data) Numerator: Net loss $ (4,309 ) $ (9,021 ) $ (31,811 ) $ (25,904 ) Denominator: Weighted-average ordinary shares - basic 33,304,171 32,171,890 32,885,729 32,908,614 Weighted-average ordinary shares - diluted 33,304,171 32,171,890 32,885,729 32,908,614 Net loss per ordinary share: Basic $ (0.13 ) $ (0.28 ) $ (0.97 ) $ (0.79 ) Diluted $ (0.13 ) $ (0.28 ) $ (0.97 ) $ (0.79 ) |
Weighted-Average Potentially Dilutive Securities Excluded from Computation of Diluted Loss Per Ordinary Share | The following weighted-average potentially dilutive securities were excluded from the computation of diluted loss per ordinary share as their effect would have been antidilutive: Three Months Ended October 31, Nine Months Ended October 31, 2019 2018 2019 2018 Options to purchase ordinary shares 873,515 1,247,117 948,283 1,172,152 Restricted stock and restricted stock units 1,675,570 2,243,272 1,195,320 1,494,860 Employee stock purchase plan 13,672 58,530 11,204 35,204 2,562,757 3,548,919 2,154,807 2,702,216 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Oct. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Summary of Income Taxes | The following table provides details of income taxes for the periods indicated: Three Months Ended October 31, Nine Months Ended October 31, 2019 2018 2019 2018 (in thousands) Loss before income taxes $ (5,251 ) $ (8,429 ) $ (29,509 ) $ (23,537 ) Provision (benefit) for income taxes (942 ) 592 2,302 2,367 Effective tax rate 17.9% (7.0)% (7.8%) (10.1%) |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Oct. 31, 2019 | |
Segment Reporting [Abstract] | |
Company's Revenue by Geographic Region Based on Bill-to Location | The following table sets forth the Company’s revenue by geographic region based on bill-to location for the periods indicated: Three Months Ended October 31, Nine Months Ended October 31, 2019 2018 2019 2018 (in thousands) Taiwan $ 42,986 $ 28,300 $ 101,567 $ 100,650 Asia Pacific 18,011 20,971 49,745 55,372 Europe 2,264 5,734 9,848 13,191 North America other than United States 2,804 1,531 6,688 5,040 United States 1,857 750 3,672 2,445 Total revenue $ 67,922 $ 57,286 $ 171,520 $ 176,698 |
Organization and Summary of S_4
Organization and Summary of Significant Accounting Policies - Schedule of Cash, Cash Equivalents and Restricted Cash (Detail) - USD ($) $ in Thousands | Oct. 31, 2019 | Jan. 31, 2019 | Oct. 31, 2018 | Jan. 31, 2018 |
Cash And Cash Equivalents [Abstract] | ||||
Cash and cash equivalents | $ 252,310 | $ 194,047 | $ 212,338 | $ 346,672 |
Restricted cash | 9 | 11 | 11 | 9 |
Total as presented in the consolidated statements of cash flows | $ 252,319 | $ 194,058 | $ 212,349 | $ 346,681 |
Organization and Summary of S_5
Organization and Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2019 | Oct. 31, 2018 | Feb. 01, 2019 | Jan. 31, 2019 | |
Summary Of Significant Accounting Policies [Line Items] | ||||||
Material inventory losses recognized | $ 0 | $ 0 | $ 0 | $ 0 | ||
Right-of-use assets | 10,595,000 | 10,595,000 | $ 0 | |||
Lease liabilities | 10,680,000 | 10,680,000 | ||||
Prepaid Expenses and Other Current Assets [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Grants recorded | 1,200,000 | 1,200,000 | ||||
Other Non-current Assets [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Grants recorded | $ 2,900,000 | $ 2,900,000 | ||||
ASU 2016-02 [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Right-of-use assets | $ 8,581,000 | |||||
Lease liabilities | $ 8,700,000 |
Financial Instruments and Fai_3
Financial Instruments and Fair Value - Schedule of Available-for-Sale Securities at Fair Value (Detail) - USD ($) $ in Thousands | Oct. 31, 2019 | Jan. 31, 2019 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 209,144 | $ 205,009 |
Unrealized Gains | 703 | 176 |
Unrealized Losses | (18) | (79) |
Fair Value | 209,829 | 205,106 |
Money market funds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 23,595 | 8,914 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Fair Value | 23,595 | 8,914 |
Certificates of Deposit [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 7,012 | |
Unrealized Gains | 0 | |
Unrealized Losses | 0 | |
Fair Value | 7,012 | |
Commercial paper [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 66,320 | 68,233 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Fair Value | 66,320 | 68,233 |
Corporate bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 85,890 | 87,250 |
Unrealized Gains | 617 | 170 |
Unrealized Losses | (12) | (60) |
Fair Value | 86,495 | 87,360 |
Asset-backed securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 16,516 | 11,607 |
Unrealized Gains | 43 | 3 |
Unrealized Losses | (6) | (6) |
Fair Value | 16,553 | 11,604 |
U.S. government securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 16,823 | 21,993 |
Unrealized Gains | 43 | 3 |
Unrealized Losses | (13) | |
Fair Value | $ 16,866 | $ 21,983 |
Financial Instruments and Fai_4
Financial Instruments and Fair Value - Schedule of Cash Equivalents and Marketable Debt Securities (Detail) - USD ($) $ in Thousands | Oct. 31, 2019 | Jan. 31, 2019 |
Schedule of Available-for-sale Securities [Line Items] | ||
Total cash equivalents and marketable debt securities | $ 209,829 | $ 205,106 |
Included in cash equivalents [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total cash equivalents and marketable debt securities | 61,348 | 40,245 |
Included in marketable debt securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total cash equivalents and marketable debt securities | $ 148,481 | $ 164,861 |
Financial Instruments and Fai_5
Financial Instruments and Fair Value - Summary of Contractual Maturities of Investments (Detail) - USD ($) $ in Thousands | Oct. 31, 2019 | Jan. 31, 2019 |
Available For Sale Securities Debt Maturities Fair Value [Abstract] | ||
Due within one year | $ 153,433 | $ 151,991 |
Due within one to three years | 56,396 | 53,115 |
Total cash equivalents and marketable debt securities | $ 209,829 | $ 205,106 |
Financial Instruments and Fai_6
Financial Instruments and Fair Value - Schedule of Fair Value of Financial Instruments Measured on Recurring Basis (Detail) - USD ($) $ in Thousands | Oct. 31, 2019 | Jan. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents and marketable debt securities | $ 209,829 | $ 205,106 |
Money market funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents and marketable debt securities | 23,595 | 8,914 |
Certificates of Deposit [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents and marketable debt securities | 7,012 | |
Commercial paper [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents and marketable debt securities | 66,320 | 68,233 |
Corporate bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents and marketable debt securities | 86,495 | 87,360 |
Asset-backed securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents and marketable debt securities | 16,553 | 11,604 |
U.S. government securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents and marketable debt securities | 16,866 | 21,983 |
Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents and marketable debt securities | 23,595 | 15,926 |
Level 1 [Member] | Money market funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents and marketable debt securities | 23,595 | 8,914 |
Level 1 [Member] | Certificates of Deposit [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents and marketable debt securities | 7,012 | |
Level 1 [Member] | Commercial paper [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents and marketable debt securities | 0 | 0 |
Level 1 [Member] | Corporate bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents and marketable debt securities | 0 | 0 |
Level 1 [Member] | Asset-backed securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents and marketable debt securities | 0 | 0 |
Level 1 [Member] | U.S. government securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents and marketable debt securities | 0 | 0 |
Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents and marketable debt securities | 186,234 | 189,180 |
Level 2 [Member] | Money market funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents and marketable debt securities | 0 | 0 |
Level 2 [Member] | Certificates of Deposit [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents and marketable debt securities | 0 | |
Level 2 [Member] | Commercial paper [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents and marketable debt securities | 66,320 | 68,233 |
Level 2 [Member] | Corporate bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents and marketable debt securities | 86,495 | 87,360 |
Level 2 [Member] | Asset-backed securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents and marketable debt securities | 16,553 | 11,604 |
Level 2 [Member] | U.S. government securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents and marketable debt securities | 16,866 | 21,983 |
Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents and marketable debt securities | 0 | 0 |
Level 3 [Member] | Money market funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents and marketable debt securities | 0 | 0 |
Level 3 [Member] | Certificates of Deposit [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents and marketable debt securities | 0 | |
Level 3 [Member] | Commercial paper [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents and marketable debt securities | 0 | 0 |
Level 3 [Member] | Corporate bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents and marketable debt securities | 0 | 0 |
Level 3 [Member] | Asset-backed securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents and marketable debt securities | 0 | 0 |
Level 3 [Member] | U.S. government securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents and marketable debt securities | $ 0 | $ 0 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventory (Detail) - USD ($) $ in Thousands | Oct. 31, 2019 | Jan. 31, 2019 |
Inventory Disclosure [Abstract] | ||
Work-in-progress | $ 11,830 | $ 9,430 |
Finished goods | 8,015 | 8,822 |
Total | $ 19,845 | $ 18,252 |
Property and Equipment, Net - A
Property and Equipment, Net - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2019 | Oct. 31, 2018 | |
Property Plant And Equipment [Abstract] | ||||
Depreciation of property and equipment | $ 0.7 | $ 0.6 | $ 2.1 | $ 1.9 |
Property and Equipment, Net - S
Property and Equipment, Net - Schedule of Property and Equipment (Detail) - USD ($) $ in Thousands | Oct. 31, 2019 | Jan. 31, 2019 |
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 19,620 | $ 18,387 |
Less: accumulated depreciation and amortization | (13,693) | (11,659) |
Total property and equipment, net | 5,927 | 6,728 |
Computer equipment and software [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 10,095 | 9,098 |
Machinery and equipment [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 6,162 | 5,659 |
Furniture and fixtures [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 969 | 969 |
Leasehold improvements [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 2,345 | 2,331 |
Construction in progress [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 49 | $ 330 |
Intangible Assets, Net - Additi
Intangible Assets, Net - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2019 | Oct. 31, 2018 | Jan. 31, 2019 | Jun. 25, 2015 | |
Finite Lived Intangible Assets [Line Items] | ||||||
Intangible assets, net of amortization expense | $ 8,232,000 | $ 8,232,000 | $ 10,936,000 | |||
Accumulated amortization of intangible asset | 11,522,000 | 11,522,000 | 7,612,000 | |||
Liabilities associated with noncancelable internal-use software license at net present value, current | 2,839,000 | 2,839,000 | 4,879,000 | |||
Liabilities associated with noncancelable internal-use software license at net present value, non-current | 660,000 | 660,000 | 310,000 | |||
Impairment of intangible assets | 0 | $ 0 | 0 | $ 0 | ||
IPR&D [Member] | ||||||
Finite Lived Intangible Assets [Line Items] | ||||||
Intangible assets, net of amortization expense | 4,100,000 | 4,100,000 | 4,100,000 | |||
Accumulated amortization of intangible asset | 0 | 0 | 0 | |||
IPR&D [Member] | Vis Lab SRL [Member] | ||||||
Finite Lived Intangible Assets [Line Items] | ||||||
Intangible assets acquired | $ 4,100,000 | |||||
Internal-use software licenses [Member] | ||||||
Finite Lived Intangible Assets [Line Items] | ||||||
Intangible assets, net of amortization expense | 4,132,000 | 4,132,000 | 6,836,000 | |||
Accumulated amortization of intangible asset | 11,522,000 | 11,522,000 | $ 7,612,000 | |||
Amortization expense | $ 1,300,000 | $ 1,200,000 | $ 3,900,000 | $ 3,500,000 |
Intangible Assets, Net - Summar
Intangible Assets, Net - Summary of Carrying Amounts of Intangible Assets (Detail) - USD ($) | Oct. 31, 2019 | Jan. 31, 2019 |
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 19,754,000 | $ 18,548,000 |
Accumulated Amortization | (11,522,000) | (7,612,000) |
Net Carrying Amount | 8,232,000 | 10,936,000 |
In-process research and development [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 4,100,000 | 4,100,000 |
Accumulated Amortization | 0 | 0 |
Net Carrying Amount | 4,100,000 | 4,100,000 |
Internal-use software licenses [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 15,654,000 | 14,448,000 |
Accumulated Amortization | (11,522,000) | (7,612,000) |
Net Carrying Amount | $ 4,132,000 | $ 6,836,000 |
Intangible Assets, Net - Summ_2
Intangible Assets, Net - Summary of Estimated Future Amortization Expense of Software Licenses (Detail) - USD ($) $ in Thousands | Oct. 31, 2019 | Jan. 31, 2019 |
Finite Lived Intangible Assets [Line Items] | ||
Net Carrying Amount | $ 8,232 | $ 10,936 |
Internal-use software licenses [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
2020 (3 months remaining) | 1,359 | |
2021 | 2,099 | |
2022 | 552 | |
2023 | 122 | |
2024 | 0 | |
Thereafter | 0 | |
Net Carrying Amount | $ 4,132 | $ 6,836 |
Accrued and Other Current Lia_3
Accrued and Other Current Liabilities - Schedule of Accrued and Other Current Liabilities (Detail) - USD ($) $ in Thousands | Oct. 31, 2019 | Jan. 31, 2019 |
Payables And Accruals [Abstract] | ||
Accrued employee compensation | $ 14,982 | $ 10,645 |
Accrued rebates | 247 | 311 |
Accrued product development costs | 8,017 | 6,393 |
Software license liabilities, current | 2,839 | 4,879 |
Other accrued liabilities | 2,362 | 2,472 |
Total accrued and other current liabilities | $ 28,447 | $ 24,700 |
Leases - Additional Information
Leases - Additional Information (Detail) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended |
Aug. 31, 2019 | Oct. 31, 2019USD ($)Contract | Oct. 31, 2019USD ($) | |
Lessee Lease Description [Line Items] | |||
Operating leases, existence of options to extend | true | ||
Future undiscounted cash payments | $ 11,757 | $ 11,757 | |
Operating lease expense | $ 700 | $ 2,200 | |
Weighted-average remaining lease term – operating leases | 5 years 2 months 1 day | 5 years 2 months 1 day | |
Weighted-average discount rate – operating leases | 4.43% | 4.43% | |
Parma Lease [Member] | |||
Lessee Lease Description [Line Items] | |||
Future undiscounted cash payments | $ 2,200 | $ 2,200 | |
Future undiscounted cash payments in first two years | 1,800 | 1,800 | |
Future undiscounted cash payments, paid in remainder of lease term | $ 400 | $ 400 | |
Renewed Contract [Member] | |||
Lessee Lease Description [Line Items] | |||
Operating lease number of renewed contracts | Contract | 2 | ||
An increase to operating lease right-of-use assets | $ 4,000 | ||
An increase to operating lease liabilities | $ 4,000 | ||
U.S. [Member] | Additional Office Space [Member] | |||
Lessee Lease Description [Line Items] | |||
Lease term | 56 months | 56 months | |
Commencement date | Jan. 1, 2021 | ||
Expiration date | Aug. 31, 2025 | ||
Future undiscounted cash payments | $ 1,700 | $ 1,700 | |
U.S. [Member] | Renewed Contract [Member] | |||
Lessee Lease Description [Line Items] | |||
Lease term | 63 months | 63 months | |
Commencement date | Jun. 1, 2020 | ||
Expiration date | Aug. 31, 2025 | ||
Shanghai [Member] | Renewed Contract [Member] | |||
Lessee Lease Description [Line Items] | |||
Lease term | 2 years | 2 years | |
Commencement date | Dec. 1, 2019 | ||
Expiration date | Nov. 30, 2021 | ||
Italy [Member] | Building [Member] | |||
Lessee Lease Description [Line Items] | |||
Lease term | 35 years | ||
Construction completion period | 2 years |
Leases - Schedule of Cumulative
Leases - Schedule of Cumulative Effect of Changes to Condensed Consolidated Balance Sheet for Adoption of ASC 842 (Detail) - USD ($) $ in Thousands | Oct. 31, 2019 | Feb. 01, 2019 | Jan. 31, 2019 |
Leases Disclosure [Line Items] | |||
Operating lease right-of-use assets | $ 10,595 | $ 0 | |
Prepaid expenses and other current assets | 5,174 | 6,206 | |
Accrued and other current liabilities | 28,447 | 24,700 | |
Operating lease liabilities, current | 2,161 | 0 | |
Operating lease liabilities, non-current | $ 8,519 | $ 0 | |
Leases (ASC 842) [Member] | |||
Leases Disclosure [Line Items] | |||
Operating lease right-of-use assets | $ 8,581 | ||
Prepaid expenses and other current assets | 6,032 | ||
Accrued and other current liabilities | 24,421 | ||
Operating lease liabilities, current | 2,534 | ||
Operating lease liabilities, non-current | 6,152 | ||
Leases (ASC 842) [Member] | Restatement Adjustment [Member] | |||
Leases Disclosure [Line Items] | |||
Operating lease right-of-use assets | 8,581 | ||
Prepaid expenses and other current assets | (174) | ||
Accrued and other current liabilities | (279) | ||
Operating lease liabilities, current | 2,534 | ||
Operating lease liabilities, non-current | $ 6,152 |
Leases - Schedule of Supplement
Leases - Schedule of Supplemental Cash Flow Information Related to Leases (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Oct. 31, 2019 | Oct. 31, 2019 | |
Leases [Abstract] | ||
Cash paid for operating leases included in operating cash flows | $ 784 | $ 2,238 |
Supplemental non-cash information related to lease liabilities arising from obtaining right-of-use assets | 82 | 210 |
Leased assets obtained in exchange for operating lease liabilities arising from lease modifications | $ 4,021 | $ 4,021 |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Lease Payments for Lease Liabilities Excluding Additional Space for U.S. Office and Parma Lease (Detail) $ in Thousands | Oct. 31, 2019USD ($) |
Leases [Abstract] | |
2020 (3 months remaining) | $ 633 |
2021 | 2,487 |
2022 | 2,353 |
2023 | 1,644 |
2024 | 1,693 |
Thereafter | 2,947 |
Total future annual minimum lease payments | 11,757 |
Less: interest | (1,077) |
Total lease liabilities | $ 10,680 |
Leases - Schedule of Future M_2
Leases - Schedule of Future Minimum Undiscounted Lease Payments (Detail) $ in Thousands | Jan. 31, 2019USD ($) |
Leases [Abstract] | |
2020 | $ 2,592 |
2021 | 1,040 |
2022 | 356 |
2023 | 143 |
2024 | 147 |
Thereafter | 576 |
Total future annual minimum lease payments | $ 4,854 |
Other Long-Term Liabilities - S
Other Long-Term Liabilities - Schedule of Other Long-Term Liabilities (Detail) - USD ($) $ in Thousands | Oct. 31, 2019 | Jan. 31, 2019 |
Other Liabilities Disclosure [Abstract] | ||
Unrecognized tax benefits, including interest | $ 7,872 | $ 6,732 |
Deferred tax liabilities, non-current | 1,293 | 1,293 |
Software license liabilities, non-current | 660 | 310 |
Other long-term liabilities | 100 | 6 |
Total other long-term liabilities | $ 9,925 | $ 8,341 |
Capital Stock - Additional Info
Capital Stock - Additional Information (Detail) - USD ($) | May 29, 2019 | Feb. 01, 2019 | Jun. 04, 2018 | Oct. 31, 2019 | Oct. 31, 2019 | Jan. 31, 2019 |
Class Of Stock [Line Items] | ||||||
Preference shares, shares authorized | 20,000,000 | 20,000,000 | 20,000,000 | |||
Preference shares, par value | $ 0.00045 | $ 0.00045 | $ 0.00045 | |||
Preference shares, shares issued | 0 | 0 | 0 | |||
Preference shares, shares outstanding | 0 | 0 | 0 | |||
Ordinary shares, shares authorized | 200,000,000 | 200,000,000 | 200,000,000 | |||
Stock repurchased during period, shares | 0 | 0 | ||||
Amount available under stock repurchase program | $ 50,000,000 | $ 50,000,000 | ||||
2012 Equity Incentive Plan [Member] | ||||||
Class Of Stock [Line Items] | ||||||
Additional ordinary shares reserved for issuance | 1,453,659 | |||||
2012 Equity Incentive Plan [Member] | Scenario, plan automatically increased by the lessor of [Member] | ||||||
Class Of Stock [Line Items] | ||||||
Annual increase in ordinary shares for available for future issuance | 3,500,000 | |||||
Annual shares increase for future issuance by percentage under 2012 equity incentive plan | 4.50% | |||||
Amended and Restated 2012 Employee Stock Purchase Plan [Member] | ||||||
Class Of Stock [Line Items] | ||||||
Additional ordinary shares reserved for issuance | 403,794 | |||||
Amended and Restated 2012 Employee Stock Purchase Plan [Member] | Scenario, plan automatically increased by the lessor of [Member] | ||||||
Class Of Stock [Line Items] | ||||||
Annual increase in ordinary shares for available for future issuance | 1,500,000 | |||||
Annual shares increase for future issuance by percentage under 2012 employee stock purchase plan | 1.25% | |||||
Stock Repurchase Program $100.0 Million Authorization [Member] | ||||||
Class Of Stock [Line Items] | ||||||
Stock repurchase program, authorization date | Jun. 4, 2018 | |||||
Stock repurchase program, period | 12 months | |||||
Stock repurchase program, expiration date | Jun. 4, 2019 | |||||
Stock Repurchase Program $100.0 Million Authorization [Member] | Maximum [Member] | ||||||
Class Of Stock [Line Items] | ||||||
Amount authorized under stock repurchase program | $ 100,000,000 | |||||
Stock Repurchase Program $50.0 Million Authorization [Member] | ||||||
Class Of Stock [Line Items] | ||||||
Stock repurchase program, authorization date | May 29, 2019 | |||||
Stock repurchase program, expiration date | Jun. 30, 2020 | |||||
Stock Repurchase Program $50.0 Million Authorization [Member] | Maximum [Member] | ||||||
Class Of Stock [Line Items] | ||||||
Amount authorized under stock repurchase program | $ 50,000,000 |
Capital Stock - Schedule of Ord
Capital Stock - Schedule of Ordinary Shares Reserved for Future Issuance under EIP and ESPP (Detail) - shares | Oct. 31, 2019 | Jan. 31, 2019 |
EIP [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Shares reserved | 6,310,393 | 5,915,654 |
ESPP [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Shares reserved | 2,059,504 | 1,833,574 |
Stock-based Compensation - Clas
Stock-based Compensation - Classification of Stock-based Compensation (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2019 | Oct. 31, 2018 | |
Stock-based compensation: | ||||
Total stock-based compensation | $ 17,308 | $ 15,612 | $ 49,968 | $ 44,937 |
Cost of revenue [Member] | ||||
Stock-based compensation: | ||||
Total stock-based compensation | 335 | 310 | 922 | 942 |
Research and development [Member] | ||||
Stock-based compensation: | ||||
Total stock-based compensation | 10,601 | 9,720 | 31,306 | 27,847 |
Selling, general and administrative [Member] | ||||
Stock-based compensation: | ||||
Total stock-based compensation | $ 6,372 | $ 5,582 | $ 17,740 | $ 16,148 |
Stock-based Compensation - Addi
Stock-based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2019 | Oct. 31, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Total stock-based compensation | $ 17,308 | $ 15,612 | $ 49,968 | $ 44,937 |
Closing price of ordinary shares | $ 52.63 | $ 52.63 | ||
Accrued and other current liabilities [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Total stock-based compensation | $ 2,000 | $ 4,200 | ||
Stock options [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Total unrecognized compensation cost, stock options | 4,100 | $ 4,100 | ||
Weighted average recognition period | 2 years 7 months 9 days | |||
Restricted stock units [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Total unrecognized compensation cost, restricted stock units | 128,200 | $ 128,200 | ||
Weighted average recognition period | 2 years 8 months 4 days | |||
Aggregate intrinsic value of unvested restricted stock units | $ 149,200 | $ 149,200 | ||
Restricted Stock Awards [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Share based payment award fully vested | Oct. 31, 2019 |
Stock-based Compensation - Weig
Stock-based Compensation - Weighted-Average Assumptions Used to Estimate Fair Value (Detail) | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2019 | Oct. 31, 2018 | |
Stock options [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Volatility | 52.00% | 53.00% | 52.00% | 54.00% |
Risk-free interest rate | 1.39% | 2.78% | 1.84% | 2.75% |
Expected term (years) | 6 years 1 month 2 days | 5 years 5 months 12 days | 6 years 7 days | 5 years 4 months 24 days |
Dividend yield | 0.00% | 0.00% | 0.00% | 0.00% |
Employee stock purchase plan awards [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Volatility | 46.00% | 44.00% | 47.00% | 45.00% |
Risk-free interest rate | 1.93% | 2.35% | 2.23% | 2.15% |
Expected term (years) | 6 months | 6 months | 6 months | 6 months |
Dividend yield | 0.00% | 0.00% | 0.00% | 0.00% |
Stock-based Compensation - Stoc
Stock-based Compensation - Stock Option Activities (Detail) $ / shares in Units, $ in Thousands | 9 Months Ended |
Oct. 31, 2019USD ($)$ / sharesshares | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Shares, Outstanding | shares | 1,459,064 |
Shares, Granted | shares | 57,350 |
Shares, Exercised | shares | (338,289) |
Shares, Forfeited | shares | (13,306) |
Shares, Expired | shares | (9,751) |
Shares, Outstanding | shares | 1,155,068 |
Shares, Exercisable | shares | 981,191 |
Weighted-Average Exercise Price, Outstanding | $ 28.31 |
Weighted-Average Exercise Price, Granted | 49.79 |
Weighted-Average Exercise Price, Exercised | 15.43 |
Weighted-Average Exercise Price, Forfeited | 45.65 |
Weighted-Average Exercise Price, Expired | 55.95 |
Weighted-Average Exercise Price, Outstanding | 32.71 |
Weighted-Average Exercise Price, Exercisable | 29.94 |
Weighted-Average Grant-date Fair Value, Granted | $ 25.06 |
Total Intrinsic Value Of Options Exercised | $ | $ 12,054 |
Weighted-Average Remaining Contractual Term, Outstanding | 4 years 6 months 14 days |
Weighted-Average Remaining Contractual Term, Exercisable | 3 years 9 months 18 days |
Aggregate Intrinsic Value, Outstanding | $ | $ 26,387 |
Aggregate Intrinsic Value, Exercisable | $ | $ 25,280 |
Stock-based Compensation - Rest
Stock-based Compensation - Restricted Stock and Restricted Stock Units Activities (Detail) - Restricted stock and restricted stock units [Member] | 9 Months Ended |
Oct. 31, 2019$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Shares, Unvested, beginning balance | shares | 2,395,516 |
Shares, Granted | shares | 1,296,053 |
Shares, Vested | shares | (775,893) |
Shares, Forfeited | shares | (80,496) |
Shares, Unvested, ending balance | shares | 2,835,180 |
Weighted-Average Grant-Date Fair Value, Unvested, beginning balance | $ / shares | $ 48.49 |
Weighted-Average Grant-Date Fair Value, Granted | $ / shares | 54.48 |
Weighted-Average Grant-Date Fair Value, Vested | $ / shares | 51.41 |
Weighted-Average Grant-Date Fair Value, Forfeited | $ / shares | 55.50 |
Weighted-Average Grant-Date Fair Value, Unvested, ending balance | $ / shares | $ 50.23 |
Net Loss Per Ordinary Share - C
Net Loss Per Ordinary Share - Computation of Basic and Diluted Loss Per Ordinary Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Oct. 31, 2019 | Jul. 31, 2019 | Apr. 30, 2019 | Oct. 31, 2018 | Jul. 31, 2018 | Apr. 30, 2018 | Oct. 31, 2019 | Oct. 31, 2018 | |
Numerator: | ||||||||
Net loss | $ (4,309) | $ (10,191) | $ (17,311) | $ (9,021) | $ (6,877) | $ (10,006) | $ (31,811) | $ (25,904) |
Denominator: | ||||||||
Weighted-average ordinary shares - basic | 33,304,171 | 32,171,890 | 32,885,729 | 32,908,614 | ||||
Weighted-average ordinary shares - diluted | 33,304,171 | 32,171,890 | 32,885,729 | 32,908,614 | ||||
Net loss per ordinary share: | ||||||||
Basic | $ (0.13) | $ (0.28) | $ (0.97) | $ (0.79) | ||||
Diluted | $ (0.13) | $ (0.28) | $ (0.97) | $ (0.79) |
Net Loss Per Ordinary Share - W
Net Loss Per Ordinary Share - Weighted-Average Potentially Dilutive Securities Excluded from Computation of Diluted Loss Per Ordinary Share (Detail) - shares | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2019 | Oct. 31, 2018 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive shares excluded from computation of earnings per share | 2,562,757 | 3,548,919 | 2,154,807 | 2,702,216 |
Options to purchase ordinary shares [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive shares excluded from computation of earnings per share | 873,515 | 1,247,117 | 948,283 | 1,172,152 |
Restricted stock and restricted stock units [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive shares excluded from computation of earnings per share | 1,675,570 | 2,243,272 | 1,195,320 | 1,494,860 |
Employee stock purchase plan awards [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive shares excluded from computation of earnings per share | 13,672 | 58,530 | 11,204 | 35,204 |
Income Taxes - Summary of Incom
Income Taxes - Summary of Income Taxes (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2019 | Oct. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||||
Loss before income taxes | $ (5,251) | $ (8,429) | $ (29,509) | $ (23,537) |
Provision (benefit) for income taxes | $ (942) | $ 592 | $ 2,302 | $ 2,367 |
Effective tax rate | 17.90% | (7.00%) | (7.80%) | (10.10%) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) $ in Millions | 9 Months Ended |
Oct. 31, 2019USD ($) | |
Income Taxes [Line Items] | |
Unrecognized tax benefits | $ 40.5 |
U.S. federal tax authorities [Member] | Earliest tax year [Member] | |
Income Taxes [Line Items] | |
Income tax examination, year | 2013 |
U.S. federal tax authorities [Member] | Latest tax year [Member] | |
Income Taxes [Line Items] | |
Income tax examination, year | 2018 |
U.S. state tax authorities [Member] | Earliest tax year [Member] | |
Income Taxes [Line Items] | |
Income tax examination, year | 2009 |
U.S. state tax authorities [Member] | Latest tax year [Member] | |
Income Taxes [Line Items] | |
Income tax examination, year | 2018 |
Foreign tax authorities [Member] | Earliest tax year [Member] | |
Income Taxes [Line Items] | |
Income tax examination, year | 2013 |
Foreign tax authorities [Member] | Latest tax year [Member] | |
Income Taxes [Line Items] | |
Income tax examination, year | 2018 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) | 9 Months Ended | 12 Months Ended |
Oct. 31, 2019 | Jan. 31, 2019 | |
Loss Contingencies [Line Items] | ||
Total manufacturing purchase commitments | $ 27,600,000 | $ 28,200,000 |
Indemnification agreement [Member] | ||
Loss Contingencies [Line Items] | ||
Payments under indemnification obligations | 0 | 0 |
Liabilities recorded under indemnification obligations | $ 0 | $ 0 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Detail) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Oct. 31, 2019USD ($) | Oct. 31, 2018 | Oct. 31, 2019USD ($)Segment | Oct. 31, 2018 | Jan. 31, 2019USD ($) | |
Concentration Risk [Line Items] | |||||
Number of reportable segment | Segment | 1 | ||||
Property and equipment, net | $ 5,927 | $ 5,927 | $ 6,728 | ||
Accounts receivable | $ 21,609 | $ 21,609 | 26,212 | ||
Sales revenue, net [Member] | Wintech [Member] | Customer concentration risk [Member] | |||||
Concentration Risk [Line Items] | |||||
Percentage of revenue | 63.20% | 49.40% | 59.20% | 57.00% | |
Sales revenue, net [Member] | Chicony [Member] | Customer concentration risk [Member] | |||||
Concentration Risk [Line Items] | |||||
Percentage of revenue | 15.70% | 22.70% | 17.80% | 16.30% | |
Accounts receivable [Member] | Wintech [Member] | Credit concentration risk [Member] | |||||
Concentration Risk [Line Items] | |||||
Accounts receivable | $ 5,900 | $ 5,900 | 14,300 | ||
Accounts receivable [Member] | Chicony [Member] | Credit concentration risk [Member] | |||||
Concentration Risk [Line Items] | |||||
Accounts receivable | 10,700 | 10,700 | $ 6,900 | ||
United States [Member] | |||||
Concentration Risk [Line Items] | |||||
Property and equipment, net | 1,800 | 1,800 | |||
Asia Pacific [Member] | |||||
Concentration Risk [Line Items] | |||||
Property and equipment, net | 2,800 | 2,800 | |||
Europe [Member] | |||||
Concentration Risk [Line Items] | |||||
Property and equipment, net | $ 1,300 | $ 1,300 |
Segment Reporting - Company's R
Segment Reporting - Company's Revenue by Geographic Region Based on Bill-to Location (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2019 | Oct. 31, 2018 | |
Revenue from External Customer [Line Items] | ||||
Total revenue | $ 67,922 | $ 57,286 | $ 171,520 | $ 176,698 |
Taiwan [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Total revenue | 42,986 | 28,300 | 101,567 | 100,650 |
Asia Pacific [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Total revenue | 18,011 | 20,971 | 49,745 | 55,372 |
Europe [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Total revenue | 2,264 | 5,734 | 9,848 | 13,191 |
North America other than United States [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Total revenue | 2,804 | 1,531 | 6,688 | 5,040 |
United States [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Total revenue | $ 1,857 | $ 750 | $ 3,672 | $ 2,445 |