Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Jan. 31, 2020 | Jun. 28, 2019 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | Casa Systems Inc | ||
Entity Central Index Key | 0001333835 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | true | ||
Entity Ex Transition Period | false | ||
Entity Shell Company | false | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Public Float | $ 203.5 | ||
Entity Common Stock, Shares Outstanding | 84,136,613 | ||
Entity File Number | 001-38324 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 75-3108867 | ||
Entity Address, Address Line One | 100 Old River Road | ||
Entity Address, City or Town | Andover | ||
Entity Address, State or Province | MA | ||
Entity Address, Postal Zip Code | 01810 | ||
City Area Code | 978 | ||
Local Phone Number | 688-6706 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Title of 12(b) Security | Common Stock, $0.001 par value per share | ||
Trading Symbol | CASA | ||
Security Exchange Name | NASDAQ | ||
Documents Incorporated by Reference | Portions of the Registrant’s definitive proxy statement relating to its 2020 Annual Stockholders’ Meeting expected to be filed pursuant to Regulation 14A within 120 days after the Registrant’s fiscal year end of December 31, 2019 are incorporated by reference into Part III of this Annual Report on Form 10-K. |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 113,638 | $ 280,587 |
Accounts receivable, net of provision for doubtful accounts of $20 and $410 as of December 31, 2019 and 2018, respectively | 93,100 | 81,782 |
Inventory | 93,604 | 50,997 |
Prepaid expenses and other current assets | 4,884 | 3,755 |
Prepaid income taxes | 3,217 | 390 |
Total current assets | 308,443 | 417,511 |
Property and equipment, net | 35,910 | 29,879 |
Accounts receivable, net of current portion | 575 | 2,388 |
Deferred tax assets | 69 | 21,578 |
Goodwill | 50,347 | |
Intangible assets, net | 41,148 | |
Other assets | 7,820 | 3,293 |
Total assets | 444,312 | 474,649 |
Current liabilities: | ||
Accounts payable | 25,890 | 17,776 |
Accrued expenses and other current liabilities | 34,567 | 36,992 |
Accrued income taxes | 958 | |
Deferred revenue | 25,485 | 31,206 |
Current portion of long-term debt, net of unamortized debt issuance costs | 8,524 | 2,179 |
Total current liabilities | 94,466 | 89,111 |
Accrued income taxes, net of current portion | 12,381 | 4,923 |
Deferred tax liabilities | 8,993 | |
Deferred revenue, net of current portion | 4,583 | 12,479 |
Long-term debt, net of current portion and unamortized debt issuance costs | 284,756 | 293,280 |
Other non-current liabilities | 569 | |
Total liabilities | 405,748 | 399,793 |
Commitments and contingencies (Note 17) | ||
Stockholders’ equity: | ||
Preferred stock, $0.001 par value; 5,000 shares authorized as of December 31, 2019 and 2018, respectively; no shares issued and outstanding as of December 31, 2019 and 2018, respectively | ||
Common stock, $0.001 par value; 500,000 shares authorized as of December 31, 2019 and 2018, respectively; 84,333 and 82,961 shares issued as of December 31, 2019 and 2018, respectively | 84 | 83 |
Treasury stock, at cost; 495 shares at December 31, 2019 | (1,795) | |
Additional paid-in capital | 169,561 | 156,939 |
Accumulated other comprehensive loss | (2,222) | (1,158) |
Accumulated deficit | (127,064) | (81,008) |
Total stockholders’ equity | 38,564 | 74,856 |
Total liabilities and stockholders’ equity | $ 444,312 | $ 474,649 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Statement Of Financial Position [Abstract] | ||
Provision for doubtful accounts | $ 20 | $ 410 |
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares, outstanding | 0 | 0 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares issued | 84,333,000 | 82,961,000 |
Treasury stock, shares | 495,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenue: | |||
Total revenue | $ 282,297 | $ 297,127 | $ 351,575 |
Cost of revenue: | |||
Total cost of revenue | 119,765 | 79,161 | 93,511 |
Gross profit | 162,532 | 217,966 | 258,064 |
Operating expenses: | |||
Research and development | 83,331 | 70,974 | 60,677 |
Selling, general and administrative | 88,320 | 68,026 | 61,165 |
Total operating expenses | 171,651 | 139,000 | 121,842 |
(Loss) income from operations | (9,119) | 78,966 | 136,222 |
Other income (expense): | |||
Interest income | 4,406 | 6,259 | 2,439 |
Interest expense | (20,522) | (19,763) | (17,466) |
Gain (loss) on foreign currency, net | 298 | (911) | 886 |
Other income, net | 522 | 1,387 | 737 |
Total other income (expense), net | (15,296) | (13,028) | (13,404) |
(Loss) income before provision for (benefit from) income taxes | (24,415) | 65,938 | 122,818 |
Provision for (benefit from) income taxes | 23,791 | (7,068) | 34,318 |
Net (loss) income | (48,206) | 73,006 | 88,500 |
Other comprehensive income (loss) —foreign currency translation adjustment, net of tax | (1,064) | (1,352) | 1,933 |
Comprehensive (loss) income | (49,270) | 71,654 | $ 90,433 |
Cash dividends declared per common share or common share equivalent | $ 1.7576 | ||
Net (loss) income attributable to common stockholders: | |||
Basic | (48,206) | 73,006 | $ 11,849 |
Diluted | $ (48,206) | $ 73,006 | $ 11,849 |
Net (loss) income per share attributable to common stockholders: | |||
Basic | $ (0.57) | $ 0.87 | $ 0.34 |
Diluted | $ (0.57) | $ 0.79 | $ 0.26 |
Weighted-average shares used to compute net (loss) income per share attributable to common stockholders: | |||
Basic | 83,853 | 83,539 | 35,359 |
Diluted | 83,853 | 91,877 | 44,972 |
Product | |||
Revenue: | |||
Total revenue | $ 241,377 | $ 256,989 | $ 311,896 |
Cost of revenue: | |||
Total cost of revenue | 113,059 | 74,350 | 88,538 |
Service | |||
Revenue: | |||
Total revenue | 40,920 | 40,138 | 39,679 |
Cost of revenue: | |||
Total cost of revenue | $ 6,706 | $ 4,811 | $ 4,973 |
CONSOLIDATED STATEMENTS OF CONV
CONSOLIDATED STATEMENTS OF CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY (DEFICIT) - USD ($) $ in Thousands | Total | Series A, B and C Convertible Preferred Stock | Common Stock | Treasury Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings (Accumulated Deficit) |
Balance at Dec. 31, 2016 | $ (71,703) | $ 33 | $ (1,739) | $ (69,997) | |||
Balance, shares at Dec. 31, 2016 | 4,038,000 | ||||||
Balance at Dec. 31, 2016 | $ 97,479 | ||||||
Balance, shares at Dec. 31, 2016 | 33,184,000 | ||||||
Conversion of convertible preferred stock into common stock upon initial public offering | 97,479 | $ (97,479) | $ 40 | $ 97,439 | |||
Conversion of convertible preferred stockinto common stock upon initial public offering, shares | (4,038,000) | 40,382,000 | |||||
Issuance of common stock upon initial public offering, net of underwriting discounts and commissions and offering costs incurred of $10,373 | 79,327 | $ 7 | 79,320 | ||||
Issuance of common stock upon initial public offering, net of underwriting discounts and commissions and offering costs incurred of $10,373, shares | 6,900,000 | ||||||
Exercise of stock options and common stock issued upon vesting of equity awards, net of shares withheld for employee taxes | (3,771) | $ 1 | (3,772) | ||||
Exercise of stock options and common stock issued upon vesting of equity awards, net of shares withheld for employee taxes, shares | 577,000 | ||||||
Foreign currency translation adjustment, net of tax | 1,933 | 1,933 | |||||
Cash dividends declared | (149,785) | (52,365) | (97,420) | ||||
Stock-based compensation | 8,176 | 8,176 | |||||
Net (loss) income | 88,500 | 88,500 | |||||
Balance at Dec. 31, 2017 | 50,156 | $ 81 | 128,798 | 194 | (78,917) | ||
Balance, shares at Dec. 31, 2017 | 81,043,000 | ||||||
Exercise of stock options and common stock issued upon vesting of equity awards, net of shares withheld for employee taxes | 14,716 | $ 7 | 14,709 | ||||
Exercise of stock options and common stock issued upon vesting of equity awards, net of shares withheld for employee taxes, shares | 7,090,000 | ||||||
Foreign currency translation adjustment, net of tax | (1,352) | (1,352) | |||||
Follow-on offering selling stockholders profit disgorgement, net of offering costs of $41 | 3,770 | 3,770 | |||||
Stock repurchase program | (75,102) | $ (5) | (75,097) | ||||
Stock repurchase program, shares | (5,172,000) | ||||||
Stock-based compensation | 9,662 | 9,662 | |||||
Net (loss) income | 73,006 | 73,006 | |||||
Balance at Dec. 31, 2018 | 74,856 | $ 83 | 156,939 | (1,158) | (81,008) | ||
Balance, shares at Dec. 31, 2018 | 82,961,000 | ||||||
Exercise of stock options and common stock issued upon vesting of equity awards, net of shares withheld for employee taxes | 1,679 | $ 1 | 1,678 | ||||
Exercise of stock options and common stock issued upon vesting of equity awards, net of shares withheld for employee taxes, shares | 1,372,000 | ||||||
Foreign currency translation adjustment, net of tax | (1,064) | (1,064) | |||||
Effect of adopted accounting standards (Note 2) | 2,150 | 2,150 | |||||
Repurchases of treasury shares | (1,795) | $ (1,795) | |||||
Repurchases of treasury shares, shares | 495,000 | ||||||
Stock-based compensation | 10,944 | 10,944 | |||||
Net (loss) income | (48,206) | (48,206) | |||||
Balance at Dec. 31, 2019 | 38,564 | $ 84 | $ 169,561 | $ (2,222) | $ (127,064) | ||
Balance, shares at Dec. 31, 2019 | 84,333,000 | ||||||
Balance Treasury at Dec. 31, 2019 | $ 1,795 | $ (1,795) | |||||
Balance Treasury, shares at Dec. 31, 2019 | 495,000 | 495,000 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY (DEFICIT) (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Foreign currency translation adjustment, tax | $ 261 | $ (343) | $ 0 |
Equitable adjustment payments of stock option, SARs and RSUs per share | $ 1.7576 | ||
Underwriting discounts and commissions and offering costs | $ 10,373 | ||
Follow-on offering selling shareholders profit disgorgement, offering costs | $ 41 | ||
Series A, B and C Convertible Preferred Stock | |||
Dividends payable, amount per share | $ 17.5764 | ||
Common Stock | |||
Dividends payable, amount per share | $ 1.7576 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||||
Cash flows from operating activities: | ||||||
Net (loss) income | $ (48,206) | $ 73,006 | $ 88,500 | |||
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities: | ||||||
Depreciation and amortization | 14,722 | 9,454 | 7,738 | |||
Stock-based compensation | 9,821 | 8,894 | 9,136 | |||
Deferred income taxes | 19,641 | (11,517) | 11,422 | |||
Excess and obsolete inventory valuation adjustment | 545 | (5,883) | 4,115 | |||
Increase (decrease) in provision for doubtful accounts | 560 | (282) | 6 | |||
Changes in operating assets and liabilities: | ||||||
Accounts receivable | 1,881 | 34,716 | (25,726) | |||
Inventory | (21,276) | (11,051) | 21,859 | |||
Prepaid expenses and other assets | (3,679) | (1,084) | 3,519 | |||
Prepaid income taxes | 16 | 146 | (486) | |||
Accounts payable | 1,554 | 4,197 | (6,475) | |||
Accrued expenses and other current liabilities | (7,827) | 6,124 | 10,243 | |||
Accrued income taxes | 2,724 | (3,088) | (3,212) | |||
Deferred revenue | (9,498) | (5,087) | (25,631) | |||
Net cash (used in) provided by operating activities | (39,022) | 98,545 | 95,008 | |||
Cash flows (used in) provided by investing activities: | ||||||
Purchases of property and equipment | (8,591) | (7,966) | (7,014) | |||
Acquisition of a business, net of cash acquired | (109,431) | |||||
Proceeds from maturities of marketable securities | 14,589 | |||||
Net cash (used in) provided by investing activities | (118,022) | (7,966) | 7,575 | |||
Cash flows used in financing activities: | ||||||
Proceeds from initial public offering, net of underwriting discounts and commissions | 83,421 | |||||
Principal repayments of debt | (6,820) | (3,304) | (3,292) | |||
Proceeds from exercise of stock options | 2,687 | 14,730 | 274 | |||
Payments of dividends and equitable adjustments | (2,590) | (7,325) | (246,634) | |||
Follow-on offering selling stockholders profit disgorgement | 3,811 | |||||
Repurchases of common stock | (1,795) | (75,102) | ||||
Payments of initial public offering costs | 0 | (1,148) | (2,384) | |||
Employee taxes paid related to net share settlement of equity awards | (1,009) | (13) | (4,046) | |||
Net cash used in financing activities | (9,527) | (68,351) | (172,661) | |||
Effect of exchange rate changes on cash and cash equivalents | (378) | (1,442) | 1,344 | |||
Net (decrease) increase in cash, cash equivalents and restricted cash | (166,949) | 20,786 | (68,734) | |||
Cash, cash equivalents and restricted cash at beginning of year | 281,606 | [1] | 260,820 | [1] | 329,554 | |
Cash, cash equivalents and restricted cash at end of year | [1] | 114,657 | 281,606 | 260,820 | ||
Supplemental disclosures of cash flow information: | ||||||
Cash paid for interest | 18,885 | 18,348 | 16,275 | |||
Cash paid for income taxes | 4,334 | 7,268 | 26,297 | |||
Supplemental disclosures of non-cash investing and financing activities: | ||||||
Purchases of property and equipment included in accounts payable | 727 | 1,255 | 1,018 | |||
Deferred offering costs included in accounts payable and accrued expenses and other current liabilities | 1,193 | |||||
Unpaid dividends and equitable adjustments included in accrued expenses and other current liabilities | 731 | 3,336 | 10,661 | |||
Release of customer incentives included in accounts receivable and accrued expenses and other current liabilities | $ 5,735 | $ 8,556 | $ 15,468 | |||
[1] | See Note 2 of the accompanying notes for a reconciliation of the ending balance of cash, cash equivalents and restricted cash shown in these consolidated statements of cash flows. |
Nature of Business and Basis of
Nature of Business and Basis of Presentation | 12 Months Ended |
Dec. 31, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Nature of Business and Basis of Presentation | 1. Nature of Business and Basis of Presentation Casa Systems, Inc. (the “Company”) was incorporated under the laws of the State of Delaware on February 28, 2003. The Company is a global communications technology company headquartered in Andover, Massachusetts and has wholly owned subsidiaries in China, France, Canada, Ireland, Spain, Colombia, the Netherlands, Hong Kong, Australia, Germany, the United Kingdom and New Zealand. The Company offers converged solutions for next-generation centralized, distributed and virtualized architectures for cable broadband, fixed-line broadband and wireless networks. The Company’s solutions enable customers to cost-effectively and dynamically increase network speed, add bandwidth capacity and new services for consumers and enterprises, reduce network complexity and reduce operating and capital expenditures. The Company is subject to a number of risks similar to other companies of comparable size and other companies selling and providing services to the communications industry. These risks include, but are not limited to, the level of capital spending by the communications industry, a lengthy sales cycle, dependence on the development of new products and services, unfavorable economic and market conditions, competition from larger and more established companies, limited management resources, dependence on a limited number of contract manufacturers and suppliers, the rapidly changing nature of the technology used by the communications industry and reliance on resellers and sales agents. Failure by the Company to anticipate or to respond adequately to technological developments in its industry, changes in customer or supplier requirements, changes in regulatory requirements or industry standards, or any significant delays in the development or introduction of products could have a material adverse effect on the Company’s operating results, financial condition and cash flows. In December 2017, the Company closed its initial public offering (“IPO”) of 6,900 shares of its common stock at an offering price of $13.00 per share, including 900 shares pursuant to the underwriters’ option to purchase additional shares of the Company’s common stock. The Company received net proceeds of $79,327, after deducting underwriting discounts and commissions of $6,279 and offering costs of $4,094. Upon the closing of the IPO, all 4,038 shares of the Company’s then-outstanding preferred stock automatically converted on a ten-for-one basis into an aggregate of 40,382 shares of the Company’s common stock. Upon conversion of the preferred stock, the Company reclassified $97,439 from temporary equity to additional paid-in capital and $40 from temporary equity to common stock. On April 30, 2018, the Company closed its follow-on public offering in which certain stockholders sold 7,350 shares of the Company’s common stock at a price of $25.00 per share, before deducting underwriting discounts and commissions (the “follow-on offering”). The Company did not sell any common stock in the follow-on offering and did not receive any of the proceeds from the sale of the Company’s common stock by the selling stockholders. In connection with the sale of the Company’s common stock in the follow-on offering, certain of the selling stockholders disgorged $3,770 of profits recognized from the sale, after deducting $41 of offering costs, to the Company in accordance with Section 16(b) of the Securities Exchange Act of 1934, as amended, which was recorded as an increase in additional paid-in capital. The Company incurred $856 of transaction costs in connection with the follow-on offering, of which $815 was recorded in selling, general and administrative expenses in the accompanying consolidated statements of operations. On July 1, 2019, the Company acquired 100% of the equity interests in NetComm Wireless Limited (“NetComm”) for cash consideration of $161,963 Australian dollars (“AUD”) ($112,674 United States dollars (“USD”), based on an exchange rate of USD $0.700 per AUD $1.00 on July 1, 2019) (the “Acquisition”) The Company is an “emerging growth company,” as defined in the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”), and may remain an emerging growth company until the last day of the fiscal year following the fifth anniversary of the initial public offering, subject to specified conditions. The JOBS Act provides that an emerging growth company can take advantage of the extended transition period afforded by the JOBS Act for the implementation of new or revised accounting standards. The Company has elected not to “opt out” of such extended transition period, which means that when a standard is issued or revised and it has different application dates for public or private companies, the Company will adopt the new or revised standard at the time private companies adopt the new or revised standard, provided that the Company continues to be an emerging growth company. The JOBS Act provides that the decision to take advantage of the extended transition period for complying with new or revised accounting standards is irrevocable. The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and include the accounts and results of operations of the Company and its wholly owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting periods. Significant estimates and judgments relied upon by management in preparing these consolidated financial statements include revenue recognition, provision for doubtful accounts, reserves for excess and obsolete inventory, valuation of inventory and deferred inventory costs, the expensing and capitalization of software-related research and development costs, amortization and depreciation periods, recoverability of net deferred tax assets, valuations of uncertain tax positions, provision for (benefit from) income taxes, warranty allowances, the valuation of the Company’s common stock and other equity instruments, and stock-based compensation expense. Although the Company regularly reassesses the assumptions underlying these estimates, actual results could differ materially from these estimates. Changes in estimates are recorded in the period in which they become known. The Company bases its estimates on historical experience and various other assumptions that it believes to be reasonable under the circumstances existing at the time such estimates are made. Cash, Cash Equivalents and Restricted Cash Cash and cash equivalents include all highly liquid investments maturing within three months from the date of purchase. As of December 31, 2019 and 2018, the Company’s cash and cash equivalents consisted of investments in certificates of deposit and money market mutual funds. Restricted cash, which was included in other assets as of December 31, 2019 and 2018, consisted of a certificate of deposit of $1,019 in each period pledged as collateral for a stand-by letter of credit required to support a contractual obligation. The following table is a reconciliation of cash, cash equivalents and restricted cash included in the accompanying consolidated balance sheets that sum to the total cash, cash equivalents and restricted cash included in the accompanying consolidated statements of cash flows. December 31, 2019 December 31, 2018 Cash and cash equivalents $ 113,638 $ 280,587 Restricted cash included in other assets 1,019 1,019 $ 114,657 $ 281,606 Accounts Receivable Accounts receivable are presented net of a provision for doubtful accounts, which is an estimate of amounts that may not be collectible. Accounts receivable for arrangements with customary payment terms, which are one year or less, are recorded at invoiced amounts and do not bear interest. The Company generally does not require collateral, but the Company may, in certain instances based on its credit assessment, require full or partial prepayment prior to shipment. In limited instances, for certain customers and/or for certain transactions, the Company provides extended payment arrangements to allow the customer to pay for the purchased equipment in monthly, other periodic or lump-sum payments over a period of one to five years. In certain circumstances, the receivables may be collateralized by the underlying assets over the payment period. Payments due beyond 12 months from the balance sheet date are recorded as non-current assets. Accounts receivable as of December 31, 2019 and 2018 consisted of the following: December 31, 2019 2018 Current portion of accounts receivable, net: Accounts receivable, net $ 91,273 $ 79,526 Accounts receivable, extended payment arrangements 1,827 2,256 93,100 81,782 Accounts receivable, net of current portion: Accounts receivable, extended payment arrangements 575 2,388 $ 93,675 $ 84,170 The Company performs ongoing credit evaluations of its customers and, if necessary, provides a provision for doubtful accounts and expected losses. When assessing and recording its provision for doubtful accounts, the Company evaluates the age of its accounts receivable, current economic trends, creditworthiness of the customers, customer payment history, and other specific customer and transaction information. The Company writes off accounts receivable against the provision when it determines a balance is uncollectible and no longer actively pursues collection of the receivable. Adjustments to the provision for doubtful accounts are recorded as selling, general and administrative expenses in the consolidated statements of operations and comprehensive (loss) income. A summary of changes in the provision for doubtful accounts for the years ended December 31, 2019, 2018 and 2017 is as follows: Year Ended December 31, 2019 2018 2017 Provision for doubtful accounts at beginning of year $ 410 $ 692 $ 690 Provisions and recoveries 560 — 6 Write-offs (950 ) (282 ) (4 ) Provision for doubtful accounts at end of year $ 20 $ 410 $ 692 As of December 31, 2019 and 2018, the Company concluded that all amounts due under extended payment term arrangements were collectible and no reserve for credit losses was recorded. During the years ended December 31, 2019, 2018 and 2017, the Company did not provide a reserve for credit losses and did not write off any uncollectible receivables due under extended payment term arrangements. Inventories Inventories are valued at the lower of cost or market value. Cost is computed using the first-in first-out convention. Inventories are composed of hardware and related component parts of finished goods. The Company establishes provisions for excess and obsolete inventories after evaluating historical sales, future demand, market conditions, expected product life cycles, and current inventory levels to reduce such inventories to their estimated net realizable value. Such provisions are made in the normal course of business and charged to cost of revenue in the consolidated statements of operations and comprehensive (loss) income. Deferred inventory costs are included within inventory in the consolidated balance sheets. Deferred inventory costs represent the cost of products that have been delivered to the customer for which revenue associated with the arrangement has been deferred as a result of not meeting all of the required revenue recognition criteria, such as receipt of customer acceptance. Until the revenue recognition criteria are met, the Company retains the right to a return of the underlying inventory. Deferred inventory costs are recognized as cost of revenue in the consolidated statements of operations and comprehensive (loss) income when the related revenue is recognized. Property and Equipment Property and equipment is stated at historical cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. Leasehold improvements are recorded at cost with any reimbursement from the landlord being accounted for as deferred rent, which is amortized using the straight-line method over the lease term. Costs for trial systems held and used by the Company’s customers pursuant to evaluation agreements are also included within property and equipment. Trial systems held and used by the Company’s customers are depreciated over the estimated useful life of such assets, which is two years. Whenever a trial system is sold to a customer and the selling price is recorded as revenue, the related net book value of the trial system sold is removed from property and equipment and recorded as a cost of revenue. Maintenance and repairs expenditures are charged to expense as incurred. Estimated useful lives of the respective property and equipment assets are as follows: Estimated Useful Life Computers and purchased software 3 years Leasehold improvements Shorter of lease term or 7 years Furniture and fixtures 7 years Machinery and equipment 3 – 5 years Building 40 years Building improvements 5 – 40 years Trial systems at customers’ sites 2 years Upon retirement or sale, the cost of assets disposed of and the related accumulated depreciation are removed from the accounts and any resulting gain or loss is included in (loss) income from operations. Impairment of Long-Lived Assets The Company evaluates its long-lived assets, which consist primarily of property and equipment, for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Factors that the Company considers in deciding when to perform an impairment review include significant underperformance of the business in relation to expectations, significant negative industry or economic trends and significant changes or planned changes in the use of the assets. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the future undiscounted net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the asset exceeds the fair value of the asset, less the cost to sell. No events or changes in circumstances existed to require an impairment assessment during the years ended December 31, 2019, 2018 and 2017. Deferred Offering Costs Deferred offering costs of $4,094, consisting of legal, professional accounting and other third-party fees related to the IPO, were reclassified to additional paid-in capital as a reduction of the proceeds upon the closing of the IPO in December 2017. Deferred offering costs of $1,148 and $2,384 were paid during the years ended December 31, 2018 and 2017, respectively. No deferred offering costs were paid during the year ended December 31, 2019. Concentration of Risks Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents and accounts receivable. Cash and cash equivalents consist of demand deposits, savings accounts, commercial paper, money market mutual funds, and certificates of deposit with financial institutions, which may exceed Federal Deposit Insurance Corporation limits. The Company has not experienced any losses related to its cash and cash equivalents and does not believe that it is subject to unusual credit risk beyond the normal credit risk associated with commercial banking relationships. Significant customers are those that represent 10% or more of revenue or accounts receivable and are set forth in the following tables: Revenue Accounts Receivable, Net Year Ended December 31, December 31, 2019 2018 2017 2019 2018 Customer A 14 % 27 % 37 % 11 % 13 % Customer B * 11 % 11 % * 15 % Customer C * 12 % * 14 % 18 % Customer D * 14 % * * 28 % Customer E * * * 19 % * Customer F 12 % * * * * * Less than 10% of total Customer B was a related party until October 19, 2018, Liberty Global Affiliates (see Note 16). Certain of the components and subassemblies included in the Company’s products are obtained from a single source or a limited group of suppliers. Although the Company seeks to reduce dependence on those limited sources of suppliers and manufacturers, the partial or complete loss of certain of these sources could have a material adverse effect on the Company’s operating results, financial condition and cash flows and damage its customer relationships. Goodwill and Acquired Intangible Assets Goodwill represents the excess purchase price over the estimated fair value of net assets acquired as of the acquisition date. The Company tests goodwill for impairment on an annual basis and between annual tests when impairment indicators are identified, and goodwill is written down when impaired. Goodwill has been recognized in connection with the acquisition of NetComm on July 1, 2019 (refer to Note 3). The Company performs its annual goodwill impairment test during its fourth quarter. For its annual goodwill impairment test, the Company operates under one reporting unit and the fair value of its reporting unit has been determined based on the Company’s enterprise value. As part of the annual goodwill impairment test, the Company has the option to perform a qualitative assessment to determine whether further impairment testing is necessary. Examples of events and circumstances that might indicate that the reporting unit’s fair value is less than its carrying amount include macro-economic conditions such as deterioration in the entity’s operating environment or industry or market considerations; entity-specific events such as increasing costs, declining financial performance, or loss of key personnel; or other events such as a sustained decrease in the stock price on either an absolute basis or relative to peers. If, as a result of its qualitative assessment, it is more likely than not (i.e., greater than 50% chance) that the fair value of the Company’s reporting unit is less than its carrying amount, the quantitative impairment test will be required. Otherwise, no further testing will be required. The Company completed its qualitative assessment and concluded that as of December 31, 2019, it is not more likely than not that the fair value of the Company’s reporting unit is less than its carrying amount. The Company's intangible assets subject to amortization are amortized using the straight-line method over their estimated useful lives, ranging from three to ten years. The Company evaluates the recoverability of intangible assets periodically by taking into account events or circumstances that may warrant revised estimates of useful lives or that indicate the asset may be impaired. The Company considered potential impairment indicators of acquired intangible assets at December 31, 2019 and noted no indicators of impairment. Product Warranties Substantially all of the Company’s products are covered by a warranty for software and hardware for periods ranging from 90 days to one year. In addition, in conjunction with customers’ renewals of maintenance and support contracts, the Company offers an extended warranty for periods typically of one to three years for agreed-upon fees. In the event of a failure of a hardware product or software covered by these warranties, the Company must repair or replace the software or hardware or, if those remedies are insufficient, and at the discretion of the Company, provide a refund. The Company’s warranty reserve, which is included in accrued expenses and other current liabilities in the consolidated balance sheets, reflects estimated material, labor and other costs related to potential or actual software and hardware warranty claims for which the Company expects to incur an obligation. The Company’s estimates of anticipated rates of warranty claims and the costs associated therewith are primarily based on historical information and future forecasts. The Company periodically assesses the adequacy of the warranty reserve and adjusts the amount as necessary. If the historical data used to calculate the adequacy of the warranty reserve are not indicative of future requirements, additional or reduced warranty reserves may be required. A summary of changes in the amount reserved for warranty costs for the years ended December 31, 2019, 2018 and 2017 is as follows: Year Ended December 31, 2019 2018 2017 Warranty reserve at beginning of year $ 926 $ 1,246 $ 1,256 Provisions 3,603 1,886 1,829 Acquired warranty reserve 1,867 — — Charges (3,948 ) (2,206 ) (1,839 ) Warranty reserve at end of year $ 2,448 $ 926 $ 1,246 The increase in the warranty charges and reserve for the year ended December 31, 2019 is primarily due to warranty obligations obtained with the acquisition of NetComm on July 1, 2019. Revenue Recognition Effective January 1, 2019, the Company adopted ASC Topic 606, Revenue from Contracts with Customers (“ASC 606”) using the modified retrospective transition method. This method was applied to contracts that were not complete as of the date of initial application. The following is a summary of new and/or revised significant accounting policies affected by the Company’s adoption of ASC 606, which relate primarily to revenue and cost recognition. Refer to Note 2, Summary of Significant Accounting Policies, in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 for the policies in effect for revenue and cost recognition prior to January 1, 2019. The Company generates revenue from sales of its products, along with associated maintenance, support and extended hardware warranty services, and, to a lesser extent, from sales of professional services. The Company also generates revenue from sales of additional line cards and software-based capacity expansions. Maintenance and support services include telephone support, bug fixes and unspecified software upgrades and updates provided on a when-and-if-available basis and/or extended hardware warranty. In the Company’s consolidated statements of operations and comprehensive (loss) income, revenue from sales of broadband products, Axyom products and fixed wireless access and fiber-to-the-distribution-point (FTTdp) devices are classified as product revenue, and revenue from maintenance and support and professional services is classified as service revenue. In accordance with ASC 606, revenue is recognized when a customer obtains control of promised products or services. The amount of revenue recognized reflects the consideration that the Company expects to be entitled to receive in exchange for these products or services. To achieve the core principle of this standard, the Company applies the following five steps: 1) Identify the contract with a customer 2) Identify the performance obligations in the contract 3) Determine the transaction price 4) Allocate the transaction price to performance obligations in the contract 5) Recognize revenue when or as the Company satisfies a performance obligation Performance Obligations The majority of the Company’s contracts with customers contain multiple performance obligations including products and maintenance services, and on a limited basis, professional services. For these contracts, the Company accounts for individual performance obligations separately if they are considered distinct. The Company’s broadband products, Axyom products, maintenance services and professional services are considered distinct performance obligations. When multiple performance obligations exist in a customer contract, the transaction price is allocated to the separate performance obligations on a relative SSP basis. Determination of SSP requires judgment and is based on the best evidence available which may include the standalone selling price of products when sold on a standalone basis to similar customers in similar circumstances, or in the absence of standalone sales, taking into consideration the Company’s historical pricing practices by customer type, selling method (i.e. resellers or direct), and geographic-specific market factors. Product revenue The Company’s broadband products have both software and non-software (i.e., hardware) components that function together to deliver the products’ essential functionality. Broadband hardware products generally cannot be used apart from the embedded software and is considered one distinct performance obligation. Revenue on broadband hardware products with embedded software is recognized at a point in time when control of the products is transferred to the customer, which is typically when risk of loss has transferred and the right to payment is enforceable. This is generally when the product has shipped or been delivered, based on agreed-upon shipping terms. The Company also earns revenue from the sale of software-enabled capacity expansions. Revenue on software-enabled capacity expansions are distinct performance obligations as they are separately identifiable and provide additional bandwidth capacity on hardware products already purchased by the customer. Revenue is recognized on software-enabled capacity expansions when control is transferred, which is typically when risk of loss has transferred and the right to payment is enforceable. This is generally when the software-based capacity expansions are made available to the customer. The Company also generates revenue from the sale of its Axyom software platform and related delivery platform hardware including indoor and outdoor Apex small cells. Perpetual licenses and hardware are distinct performance obligations as they are separately identifiable, and the customer can benefit from the licenses and hardware on its own. Revenue is recognized at a point in time when control of the products is transferred to the customer, which is typically when risk of loss has transferred and the right to payment is enforceable. Generally, this occurs when software licenses are made available to customers and hardware products are shipped or delivered, based on agreed-upon shipping terms. The Company also generates revenue from the sale of its fixed wireless access and fiber-to-the-distribution-point (“FTTdp”) devices, the product line acquired via the acquisition of NetComm on July 1, 2019. The arrangements consist of a single hardware element making it a distinct performance obligation as they are separately identifiable, and the customer can benefit from the hardware on their own. Revenue is generally recognized at a point in time when control of the asset is transferred to the customer. Generally, this occurs when hardware products are shipped or delivered, based on agreed-upon shipping terms. When customer contracts require acceptance of product and services, the Company considers the nature of the acceptance provisions to determine if they are substantive or considered a formality that does not impact the timing of revenue recognition. When acceptance provisions are considered substantive, the Company will defer revenue on all performance obligations in the contract subject to acceptance until acceptance has been received. The Company does not defer revenue when acceptance provisions are deemed a formality. Maintenance and Support Services and Professional Services Revenue The Company’s broadband and Axyom products are sold with maintenance and support services, a distinct performance obligation, that includes the stand-ready obligation to provide telephone support, bug fixes and unspecified software upgrades and updates provided on a when-and-if-available basis and/or extended hardware warranty. The Company’s fixed wireless access and fiber-to-the-distribution-point (FTTdp) devices generally do not have a support component. After the initial sale, customers may purchase annual renewals of support contracts. The Company’s telephone support and unspecified upgrades and updates are delivered over time and therefore revenue is recognized ratably over the contract term, which is typically one year, but can be as long as five years. The Company also generates revenue from sales of professional services, such as installation, configuration and training. Professional services are a distinct performance obligation since the Company’s products are functional without these services and can generally be performed by the customer or a third party. Professional services are generally delivered over time, with revenue recognized as services are performed, which is generally based on labor hours incurred during the period compared to the total estimated labor hours. The sale of the Company’s products generally includes a 90-day warranty on the software and a one-year warranty on the hardware component of the products, which includes repair or replacement of the applicable hardware. These warranties are to ensure the products perform in accordance with the Company’s specifications and are therefore not a performance obligation. The Company records a warranty accrual for the initial software and hardware warranty included with product sales and does not defer revenue. Resellers and Sales Agents The Company markets and sell its products through its direct global sales force, supported by sales agents, and through resellers. The Company’s resellers receive an order from an end customer prior to placing an order with the Company, and the Company confirms the identification of or is aware of the end customer prior to accepting such order. The Company invoices the reseller an amount that reflects a reseller discount and records revenue based on the amount of the discounted transaction value. The Company’s resellers do not stock inventory received from the Company. When the Company transacts with a reseller, the contract is with the reseller and not with the end customer. Whether the Company transacts business with and receives the order from a reseller or directly from an end customer, its revenue recognition policy and resulting pattern of revenue recognition for the order are the same. The Company also uses sales agents that assist in the sales process with certain customers primarily located in the Latin America and Asia-Pacific regions. Sales agents are not resellers. If a sales agent is engaged in the sales process, the Company receives the order directly from and sells the products and services directly to the end customer, and the Company pays a commission to the sales agent, calculated as a percentage of the related transaction value. Accounting considerations related to sales agent commissions are discussed in the “Costs to Obtain or Fulfill a Contract” section below. The Company has assessed whether it is the principal (i.e., reports revenues on a gross basis) or agent (i.e., reports revenues on a net basis) by evaluating whether it has control of the good or service before it is transferred to the customer. Generally, the Company controls the promised good or service before transferring it to the customer and acts as the principal in the transaction. Accordingly, the Company reports revenues on a gross basis. Costs to Obtain or Fulfill a Contract The Company capitalizes commission expenses paid to internal sales personnel and sales agent commissions that are incremental to obtaining customer contracts, for which the related revenue is recognized over a future period. These costs are incurred on initial sales of product, maintenance and professional services and maintenance and support contract renewals. The Company defers these costs and amortizes them over the period of benefit, which the Company generally considers to be the contract term or length of the longest delivery period as contract capitalization costs in the consolidated balance sheets. Commissions paid relating to contract renewals are deferred and amortized on a straight-line basis over the related renewal period as commissions paid on renewals are commensurate with commissions paid on initial sales transactions. The Company periodically reviews the carrying amount of capitalized contract costs to determine whether events or changes in circumstances have occurred that could impact the period of benefit. The Company also pays commissions on maintenance and support contract renewals. Commissions paid on renewals are commensurate with commissions paid on the initial maintenance and support contracts. These commissions are deferred and amortized on a straight-line basis over the related renewal period. Costs to obtain a contract for professional services contracts are expensed as incurred in accordance with the practical expedient as the contractual period of the Company’s professional services contracts are one year or less. As of January 1, 2019 and December 31, 2019, the Company had short-term capitalized contract costs of $209 and $585, respectively, which are included in prepaid expenses and other current assets and had long-term capitalized contract costs of $128 and $70, respectively, which are included in other assets in the accompanying consolidated balance sheets. During the year ended December 31, 2019, amortization expense associated with capitalized contract costs was $695 which was recorded to selling, general and administrative expenses in the accompanying consolidated statements of operations and comprehensive (loss) income. Deferred Revenue Amounts billed in excess of revenue recognized are recorded as deferred revenue. Deferred revenue includes customer deposits, amounts billed for maintenance and support services contracts in advance of services being performed, amounts for trade-in right liabilities and amounts related to contracts that have been deferred as a result of not meeting the required revenue recognition criteria as of the end of the reporting period. Deferred revenue expected to be recognized as revenue more than one year subsequent to the balance sheet date is reported within long-term liabilities in the consolidated balance sheets. The Company defers recognition of direct costs, such as cost of goods and services, until recognition of the related revenue. Such costs are classified as current assets if the related deferred revenue is classified as current, and such costs are classified as non-current assets if the related deferred revenue is classified as non-current. Other Revenue Recognition Policies The Company’s customary payment terms are generally one year or less. The Company has elected to apply the practical expedient that allows an entity to not adjust the promised amount of consideration in customer contracts for the effect of a significant financing component when the period between the transfer of product and services and payment of the related consideration is less than one year. If the Company provides extended payment terms that represent a significant financing component, the Company adjusts the amount of promised consideration for the time value of money using its discounted rate and recognizes interest income separate from the revenue recognized on contracts with customers. During the year ended December 31, 2019, the Company recorded $160 in interest income in its consolidated statements of operations and comprehensive (loss) income. In limited instances, the Company has offered future rebates to customers based on a fixed or variable percentage of actual sales volumes over specified periods. The future rebates earned based on the customer’s purchasing from the Company in one period may be used as credits to be applied by them against accounts receivable due to the Company in later periods. The Company accounts for these future rebates as variable consideration and reduces the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the variable consideration is resolved. The reduction of the transaction price is estimated based on historical activity and other relevant factors and is recognized when the Company recognizes revenue for the transfer of goods and services to the customer on which the future rebate was earned. Other forms of contingent revenue or variable consideration are infrequent. When a customer contract includes future trade-in rights, which are distinct performance obligations, the Company accounts for the customer contract by recognizing the revenue on the products transferred, deferring revenue allocated to the future product based on a relative standalone selling price, and an asset for the value of the trade-in product to be recovered from the customer upon delivery of the future product. The Company assesses and updates these estimates each reporting period, and updates to these estimates may result in either an increase or decrease in the amount of the future product liability and product return asset. The Company recognizes revenue allocated to the future product when the product has shipped or been delivered, and control has transferred. As of December 31, 2019, there were no future product liabilities or product return assets. The Company excludes any taxes assessed by a governmental authority that are directly imposed on a revenue-producing transaction (e.g., sales, use and value added taxes) from its transaction price. Billings to customers for reimbursement of out-of-pocket expenses, including travel, lodging and meals, are recorded as revenue, and the associated costs incurred by the Company for those items are recorded as cost of revenue. Revenue related to the reimbursement of out-of-pocket costs are accounted for as variable consideration. The Company accounts for any shipping and handling activities as a fulfilment cost rather than an additional promised service. Shipping and handling billed to customers is recorded as an offset to cost of revenue. Contract Balances Con |
Business Acquisition
Business Acquisition | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Business Acquisition | 3. Business Acquisition On July 1, 2019, the Company acquired 100% of the equity interests in NetComm for cash consideration of $161,963 AUD ($112,674 USD, based on an exchange rate of USD $0.700 per AUD $1.00 on July 1, 2019) NetComm is a global leader in the development of fixed wireless and distribution point broadband solutions. With the Acquisition, the Company now offers a broad, highly competitive portfolio of 4G and 5G fixed wireless access products and customer premise equipment for vDSL2 and G.fast services for service providers. This factor contributed to a purchase price in excess of fair value of NetComm’s net tangible and intangible assets, leading to the recognition of goodwill. The total purchase price was preliminarily allocated to NetComm’s net tangible and intangible assets based upon their estimated fair values as of the date of Acquisition. NetComm’s cash and cash equivalents balance at the Acquisition date was $3,243; as such, total consideration net of cash acquired is $109,431. NetComm’s existing debt of approximately $3,507 as of the Acquisition date has been accounted for as an assumed liability. As of July 1, 2019, all contractual amounts receivable were expected to be collected. Based upon the purchase price and the valuation, the allocation of the total purchase price is as follows: Preliminary Purchase Price Allocation Assets acquired Fair value of tangible assets: Accounts receivable $ 18,142 Inventory 24,138 Prepaid expenses and other current assets 2,240 Property, plant and equipment 8,010 Deferred tax assets 365 Other assets 13 Goodwill 50,347 Identifiable intangible assets 44,000 Total assets acquired $ 147,255 Liabilities assumed Accounts payable $ (9,719 ) Accrued expenses (13,178 ) Accrued income taxes (140 ) Deferred tax liabilities (10,791 ) Current portion of long-term debt (3,507 ) Other liabilities (489 ) Total liabilities assumed $ (37,824 ) Net assets acquired $ 109,431 The fair value of receivables acquired totaled $18,142 and as of the acquisition date all amounts of contractual cash flows are expected to be collected. The preliminary allocation of the purchase price and the estimated useful lives associated with certain assets is as follows : Amount Estimated Useful Life Net tangible assets $ 15,084 — Identifiable intangible assets: Developed technology 25,000 7 years Customer relationships 18,000 10 years Trade name 1,000 3 years Goodwill 50,347 — Total purchase price $ 109,431 Intangible assets of $44,000 have been allocated to identifiable intangible assets consisting of developed technology, amortized over seven years using a straight-line amortization method; customer relationships, amortized over ten years using a straight-line amortization method; and a trade name, amortized over three years using a straight-line amortization method. The weighted average life of the identifiable intangible assets recognized from the Acquisition was 8.2 years. The intangibles acquired in the Acquisition are not deductible for tax purposes. Intangible assets recorded in the consolidated balance sheet at December 31, 2019 consists of the following: Gross Carrying Amount Accumulated Amortization Net Carrying Amount Developed technology 25,000 (1,786 ) 23,214 Customer relationships 18,000 (900 ) 17,100 Trade name 1,000 (166 ) 834 $ 44,000 $ (2,852 ) $ 41,148 The Company recorded total amortization expense of $2,852, of which $1,786 and $1,066 were included in product cost of revenue and selling, general and administrative expense, respectively, for the year ended December 31, 2019, in the consolidated statements of operations and comprehensive (loss) income. Estimated amortization expense for intangible assets is summarized as follows: Year Ending December 31, 2020 $ 5,704 2021 5,704 2022 5,542 2023 5,372 2024 5,372 Thereafter 13,454 $ 41,148 The Acquisition accounting resulted in goodwill of $50,347. Various factors contributed to the establishment of the goodwill, including: the strategic benefit of expanding the breadth of the Company’s product offerings; the value of NetComm’s highly trained work force; the expected revenue growth over time that is attributable to increased market penetration from future products and customers, and cross-selling by the sales force; and the synergies expected to result from reducing redundant infrastructure such as corporate costs and field operations. The goodwill acquired in the Acquisition is not deductible for tax purposes. The results of operations of NetComm have been included in the Company’s consolidated statements of operations and comprehensive (loss) income since the completion of the Acquisition on July 1, 2019. For the year ended December 31, 2019, NetComm contributed $75,769 to the Company’s consolidated net revenues and $1,424 in after tax losses to the Company’s consolidated net loss. Transactions costs of $3,494 are included in The unaudited pro forma financial information shown below summarizes the combined results of operations for the Company and NetComm as if the closing of the Acquisition had occurred on January 1, 2017, the first day of the Company’s fiscal year 2018. The unaudited pro forma financial information includes adjustments that are directly attributable to the business combination and are factually supportable. The adjustments primarily reflect the amortization of acquired intangible assets, the conversion of NetComm’s financial results from International Financial Reporting Standards to U.S. GAAP, transaction costs related to the Acquisition, as well as the pro forma tax impact for such adjustments at the statutory rate. The pro forma financial information also reflects a $3,200 adjustment for the amortization of the step up of inventory fair value that is directly attributable to the business combination, but is not expected to have a continuing impact on the results of operations. The unaudited pro forma results below do not reflect the expected realization of cost savings following the Acquisition or anticipated costs the Company will incur to realize such synergies. These savings are expected to result from streamlining of product development initiatives, alignment of overlapping functional areas, such as sales and marketing and certain general and administrative functions. Although management expects that cost savings will result from the Acquisition, there can be no assurance that these cost savings will be achieved. Accordingly, these unaudited pro forma results are presented for informational purposes only and are not necessarily indicative of what the actual results of operations of the combined company would have been if the Acquisition had occurred on January 1, 2017, nor are they indicative of future results of operations. The unaudited pro forma combined results of the Company and NetComm are as follows: Year Ended December 31, 2019 2018 2017 Net revenue $ 375,306 $ 436,791 $ 465,786 Net (loss) income (47,898 ) 68,808 76,432 |
Inventory
Inventory | 12 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventory | 4. Inventory Inventory as of December 31, 2019 and 2018 consisted of the following: December 31, 2019 2018 Raw materials $ 24,000 $ 6,524 Work in process 17 571 Finished goods: Manufactured finished goods 70,923 45,594 Deferred inventory costs 4,263 1,073 99,203 53,762 Valuation adjustment for excess and obsolete inventory (5,599 ) (2,765 ) $ 93,604 $ 50,997 The increase in gross inventory balances was primarily due to inventory acquired with the acquisition of NetComm on July 1, 2019. The increase in the reserve for excess and obsolete inventory was primarily due to the overall increase in inventory balances. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2019 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment | 5. Property and Equipment Property and equipment as of December 31, 2019 and 2018 consisted of the following: December 31, 2019 2018 Computers and purchased software $ 22,294 $ 15,706 Leasehold improvements 4,380 1,340 Furniture and fixtures 2,794 1,949 Machinery and equipment 40,002 21,979 Land 3,091 3,091 Building 4,765 4,765 Building improvements 6,776 5,245 Trial systems at customers’ sites 6,039 7,116 90,141 61,191 Less: Accumulated depreciation and amortization (54,231 ) (31,312 ) $ 35,910 $ 29,879 During the years ended December 31, 2019, 2018 and 2017, the Company transferred trial systems (into) from inventory into (from) property and equipment with values of $(502), $(357) and $877, respectively, net of transfers of trial systems to cost of revenue. In addition, the Company transferred $(261), $371 and $2,566 of equipment from inventory into property and equipment during the years ended December 31, 2019, 2018 and 2017, respectively. Total depreciation and amortization expense on property and equipment totaled $11,870, $9,454 and $7,738 for the years ended December 31, 2019, 2018 and 2017, respectively. |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Payables And Accruals [Abstract] | |
Accrued Expenses and Other Current Liabilities | 6. Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities as of December 31, 2019 and 2018 consisted of the following: December 31, 2019 2018 Accrued compensation and related taxes $ 18,540 $ 18,301 Accrued warranty (see Note 2) 2,448 926 Dividends and equitable adjustments payable (see Note 11) 750 3,336 Accrued customer incentives 233 5,368 Other accrued expenses 12,596 9,061 $ 34,567 $ 36,992 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 7. Fair Value Measurements The Company’s cash equivalents include certificates of deposit and money market mutual funds, which are valued using Level 1 or Level 2 inputs in the fair value hierarchy. The Company’s marketable securities consist of certificates of deposit, which are valued using Level 2 inputs in the fair value hierarchy. The Company’s foreign currency forward contracts are valued using Level 2 inputs in the fair value hierarchy. The Company’s SARs are valued using as Level 3 inputs in the fair value hierarchy based on management’s judgment and the assumptions set forth in Note 13 as there is no market activity to derive an estimate of their fair value. Changes in the fair value of SARs are recorded in operating expenses in the consolidated statements of operations and comprehensive (loss) income. The following tables present information about the fair value of the Company’s financial assets and liabilities as of December 31, 2019 and 2018 and indicate the level of the fair value hierarchy utilized to determine such fair values: Fair Value Measurements as of December 31, 2019 Using: Level 1 Level 2 Level 3 Total Assets: Certificates of deposit $ — $ 10,933 $ — $ 10,933 Certificates of deposit—restricted cash — 1,019 — 1,019 Money market mutual funds 53,763 — — 53,763 Foreign currency forward contracts — 23 — 23 $ 53,763 $ 11,975 $ — $ 65,738 Liabilities: SARs $ — $ — $ 264 $ 264 Foreign currency forward contracts — 50 — 50 $ — $ 50 $ 264 $ 314 Fair Value Measurements as of December 31, 2018 Using: Level 1 Level 2 Level 3 Total Assets: Certificates of deposit $ — $ 19,873 $ — $ 19,873 Certificates of deposit—restricted cash — 1,019 — 1,019 Money market mutual funds 252,963 — — 252,963 Foreign currency forward contracts — 254 — 254 $ 252,963 $ 21,146 $ — $ 274,109 Liabilities: SARs $ — $ — $ 1,387 $ 1,387 Foreign currency forward contracts — 252 — 252 $ — $ 252 $ 1,387 $ 1,639 During the years ended December 31, 2019, 2018 and 2017 there were no transfers between Level 1, Level 2 and Level 3. The liability for SARs in the table above consists of the fair value of the SARs granted to the Company’s employees. The fair values of the SARs are based on significant inputs not observable in the market, which represents a Level 3 measurement within the fair value hierarchy. The Company’s valuation of these SARs utilized the Black-Scholes option-pricing model, which incorporates assumptions and estimates to determine their fair values (see Note 13). The Company assesses these assumptions and estimates on a quarterly basis as additional information impacting the assumptions is obtained. Changes in the fair value of the SARs liability are recognized as stock-based compensation expense in the consolidated statements of operations and comprehensive (loss) income. The following table provides a summary of changes in the fair values of the Company’s SARs liability, for which fair value is determined by Level 3 inputs: Year Ended December 31, 2019 2018 2017 Fair value at beginning of the year $ 1,387 $ 2,155 $ 1,195 Change in fair value (1,123 ) (768 ) 960 Exercises — — — Fair value at end of year $ 264 $ 1,387 $ 2,155 The Company’s cash, cash equivalents and restricted cash as of December 31, 2019 and 2018 consisted of the following: December 31, 2019 2018 Cash $ 48,942 $ 7,751 Cash equivalents and restricted cash: Certificates of deposit 10,933 19,873 Certificates of deposit—restricted cash 1,019 1,019 Money market mutual funds 53,763 252,963 Total cash equivalents and restricted cash 65,715 273,855 Total cash, cash equivalents and restricted cash $ 114,657 $ 281,606 |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | 8. Derivative Instruments The Company has certain international customers that are billed in foreign currencies. To mitigate the volatility related to fluctuations in the foreign exchange rates for accounts receivable denominated in foreign currencies, the Company enters into foreign currency forward contracts. As of December 31, 2019, the Company had foreign currency forward contracts outstanding with notional amounts totaling 500 Euros and 900 USD related to the Company’s Australian subsidiary. These contracts mature during the first quarter of 2020. As of December 31, 2018, the Company had foreign currency forward contracts outstanding with notional amounts totaling 25,741 Euros maturing during the second and third quarters of 2019. The Company’s foreign currency forward contracts economically hedge certain risk but are not designated as hedges for financial reporting purposes, and accordingly, all changes in the fair value of these derivative instruments are recorded as unrealized foreign currency transaction gains or losses and are included in the consolidated statements of operations and comprehensive (loss) income as a component of other income (expense). The Company records all derivative instruments in the consolidated balance sheet at their fair values. As of December 31, 2019 and 2018, the Company recorded an asset of $23 and $254, respectively, and as of December 31, 2019 and 2018, the Company recorded a liability of $50 and $252, respectively, related to outstanding foreign currency forward contracts, which were included in prepaid expenses and other current assets and in accrued expenses and other current liabilities, respectively, in the consolidated balance sheets. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 9. Income Taxes Income before the provision for (benefit from) income taxes for the years ended December 31, 2019, 2018 and 2017 consisted of the following: Year Ended December 31, 2019 2018 2017 United States $ (40,055 ) $ 10,527 $ 77,410 Foreign 15,640 55,411 45,408 $ (24,415 ) $ 65,938 $ 122,818 The provision for (benefit from) income taxes for the years ended December 31, 2019, 2018 and 2017 consisted of the following: Year Ended December 31, 2019 2018 2017 Current income tax provision: Federal $ 4,698 $ (3,457 ) $ 17,498 State (121 ) (181 ) 589 Foreign (427 ) 8,087 4,809 Total current income tax provision 4,150 4,449 22,896 Deferred income tax provision (benefit): Federal 18,387 (10,699 ) 12,468 State 5,100 (1,108 ) (1,024 ) Foreign (3,846 ) 290 (22 ) Total deferred income tax (benefit) provision 19,641 (11,517 ) 11,422 Total income tax (benefit) provision $ 23,791 $ (7,068 ) $ 34,318 A reconciliation of the U.S. federal statutory rate to the Company’s effective income tax rate for the years ended December 31, 2019, 2018 and 2017 is as follows: Year Ended December 31, 2019 2018 2017 Federal statutory income tax rate 21.0 % 21.0 % 35.0 % State taxes, net of federal tax benefit 9.8 (0.8 ) 0.6 Research and development tax credits 10.3 (15.6 ) (3.5 ) Permanent differences (1.6 ) 1.1 0.5 Domestic manufacturing deduction — — (0.9 ) Foreign tax rate differential 10.2 (6.6 ) (7.0 ) Equitable adjustment payments 1.7 (1.8 ) (6.0 ) Excess tax benefit from stock-based transactions 3.3 (25.2 ) (1.6 ) Foreign taxes withheld (9.6 ) 3.3 — Impact of deferred tax rate decrease under TCJA — — 3.3 TCJA one-time deemed repatriation of accumulated earnings of foreign subsidiaries — — 7.1 Global intangible low-taxed income (4.1 ) 6.7 — Withholding tax on repatriation of accumulated earnings of foreign subsidiaries (0.1 ) 0.1 1.1 Valuation allowance on deferred tax assets (144.2 ) 6.0 — Other, net 2.3 1.1 — Foreign derived intangible income 3.9 — — Research and development costs (4.3 ) — — Provision to return 11.1 — — Uncertain tax positions (7.1 ) — (0.7 ) Effective income tax rate (97.4 )% (10.7 )% 27.9 % The income tax effect of each type of temporary difference and carryforward as of December 31, 2019 and 2018 was as follows: December 31, 2019 2018 Deferred tax assets: Stock compensation $ 3,827 $ 2,689 Tax credit carryforwards 9,900 7,599 Capitalized research and development costs 21,376 12,157 Inventory valuation 1,756 698 Accrued liabilities and reserves 5,207 2,473 Deferred revenue 1,520 3,147 Interest expense 2,149 480 Intellectual property rights 999 — Other 544 452 Total deferred tax assets 47,278 29,695 Valuation Allowance (39,124 ) (3,926 ) Deferred tax assets, net of valuation allowance 8,154 25,769 Deferred tax liabilities: Depreciation (1,159 ) (1,266 ) Amortization (12,727 ) — Deferred costs — (134 ) Withholding tax on unremitted earnings (2,604 ) (2,572 ) Prepaid expenses (588 ) (219 ) Total deferred tax liabilities (17,078 ) (4,191 ) Net deferred tax assets $ (8,924 ) $ 21,578 The Company has determined that it is more likely than not that a portion of its net U.S. deferred tax assets will not be realized. As of December 31, 2019, the Company recorded a valuation allowance of $39,124 against its net U.S. deferred tax assets, an increase of $35,198 during the year ended December 31, 2019. The change in valuation allowance is primarily due the fact that the Company does not anticipate sufficient taxable income or tax liability to utilize its U.S. deferred tax assets in in the foreseeable future. The Company will continue to monitor the realizability of its net U.S. deferred tax assets taking into account multiple factors, including recent operating results, future taxable income projections and feasible tax planning strategies. The Company intends to maintain a valuation allowance on all of its net U.S. deferred tax assets until there is sufficient evidence to support the reversal of all or some portion of the valuation allowances. The release of all, or a portion of the valuation allowance would result in the recognition of certain deferred tax assets and a decrease to income tax expense for the period the release is recorded. On December 22, 2017, the TCJA was enacted which, among other things, lowered the U.S. corporate income tax rate to 21% from 35%, repealed the domestic production activity deductions, limited the deductibility of certain executive compensation and interest expense, and established a modified territorial system requiring a mandatory deemed repatriation tax on undistributed earnings of foreign subsidiaries. Beginning in 2018, the TCJA also requires a minimum tax on certain future earnings generated by foreign subsidiaries while providing for future tax-free repatriation of such earnings through a 100% dividends-received deduction. While the intent of TCJA was to provide for a territorial tax system, effective for taxable years beginning after January 1, 2018, taxpayers are subjected to the GILTI provisions. The GILTI provisions require the Company to currently recognize in U.S. taxable income a deemed dividend inclusion of foreign subsidiary earnings in excess of an allowable return on the foreign subsidiary’s tangible assets. During the years ended December 31, 2019 and 2018, the Company recorded income tax charges $942 and $4,410, respectively, related to GILTI. The Company has made an accounting policy election, as allowed by the SEC and FASB, to recognize the impacts of GILTI within the period incurred. Therefore, no U.S. deferred taxes are provided on GILTI inclusions of future foreign subsidiary earnings. As of December 31, 2019, the Company had available state research and development tax credit carryforwards of $9,403 which begin to expire in 2030. Management believes that it is more likely than not that the Company will not realize the benefit of its state research and development tax credits and thus has recorded a valuation allowance against these tax credit carryforwards. As of December 31, 2019, the Company had foreign research and development tax credit carryforwards of $12,335, which do not expire. Management has recorded an uncertain tax position of $11,193 related these credits As of December 31, 2019, substantially all of the Company’s unremitted earnings have been taxed through either the deemed repatriation tax or as GILTI income. Of the total amount of undistributed earnings, $25,966 is not indefinitely reinvested and the Company has recorded a $2,597 deferred tax liability related to its withholding taxes associated with such undistributed earnings. The remaining unremitted earnings of the Company’s foreign subsidiaries are indefinitely reinvested. Interest and penalties related to uncertain tax positions are recorded in the consolidated statements of operations and comprehensive income within other income (expense) and totaled $1,278, $211 and $14 for the years ended December 31, 2019, 2018 and 2017, respectively. The liability recorded for potential penalties and interest was $1,646 and $369 as of December 31, 2019 and 2018, respectively. The Company had a total recorded liability of $10,211 and $3,038 related to uncertain tax positions, inclusive of penalties and interest, as of December 31, 2019 and 2018, respectively, which is included in accrued income taxes, net of current portion in the consolidated balance sheets. As of December 31, 2019, the amount of uncertain tax benefits that, if recognized, would impact the effective income tax rate is $2,835. The aggregate changes in the balance of gross uncertain tax positions, which excludes interest and penalties, for the years ended December 31, 2019, 2018 and 2017 were as follows: Balance at January 1, 2017 $ 318 Settlement/decreases related to tax positions taken during prior years — Increases related to tax positions taken during prior years — Increases related to tax positions taken during the current year 1,377 Balance at December 31, 2017 1,695 Settlement/decreases related to tax positions taken during prior years — Increases related to tax positions taken during prior years 241 Increases related to tax positions taken during the current year 810 Balance at December 31, 2018 2,746 Settlement/decreases related to tax positions taken during prior years (49 ) Increases related to tax positions taken during prior years 18,434 Increases related to tax positions taken during the current year 364 Balance at December 31, 2019 $ 21,495 The significant increase in tax positions taken during prior years relates to primarily to acquired positions of $12,653, and transfer pricing positions of $5,781. The Company and its subsidiaries file income tax returns in the U.S. federal jurisdiction as well as various states and foreign jurisdictions. The Company and certain subsidiaries have tax years that remain open and are subject to examination by tax authorities in the following major taxing jurisdictions: United States for tax years 2016 through 2019, Ireland for tax years 2015 through 2019, China for tax years 2009 through 2019 (for transfer pricing adjustments, the statute of limitation in China is ten years) and Australia for tax years 2015 through 2019. The Company files income tax returns on a combined, unitary, or stand-alone basis in multiple state and local jurisdictions, which generally have statutes of limitations from three to four years. If any issues addressed in the Company’s tax audits are resolved in a manner not consistent with management’s expectations, the Company would be required to adjust its provision for income tax in the period such resolution occurs. Although timing of the resolution and/or closure of audits is highly uncertain, the Company does not believe it is reasonably possible that its unrecognized tax benefits will materially change in the next 12 months. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt | 10. Debt The aggregate principal amount of debt outstanding as of December 31, 2019 and 2018 consisted of the following: December 31, 2019 2018 Term loans $ 291,000 $ 294,000 Mortgage loan 6,644 6,958 Total principal amount of debt outstanding $ 297,644 $ 300,958 Current and non-current debt obligations reflected in the consolidated balance sheets as of December 31, 2019 and 2018 consisted of the following: December 31, 2019 2018 Current liabilities: Term loans $ 3,000 $ 3,000 Mortgage loan 6,644 314 Current portion of principal payment obligations 9,644 3,314 Unamortized debt issuance costs, current portion (1,120 ) (1,135 ) Current portion of long-term debt, net of unamortized debt issuance costs $ 8,524 $ 2,179 Non-current liabilities: Term loans $ 288,000 $ 291,000 Mortgage loan — 6,644 Non-current portion of principal payment obligations 288,000 297,644 Unamortized debt issuance costs, non-current portion (3,244 ) (4,364 ) Long-term debt, net of current portion and unamortized debt issuance costs $ 284,756 $ 293,280 Term Loan and Revolving Credit Facilities On December 20, 2016, the Company entered into a credit agreement with JPMorgan Chase Bank, N.A., as administrative agent, various lenders and JPMorgan Chase Bank, N.A. and Barclays Bank PLC providing for (i) a term loan facility of $300,000 and (ii) a revolving credit facility of up to $25,000 in revolving credit loans and letters of credit. As of December 31, 2019 and 2018, $291,000 and $294,000 in principal amount, respectively, were outstanding under the term loan facility (the “Term Loans”) and as of December 31, 2019 we did not have any outstanding borrowings under the revolving credit facility; however, the Company had used $1,343 under the revolving credit facility for two stand-by letters of credit, one which served as collateral to one of the Company’s customers pursuant to a contractual obligation and one which is used as collateral for operating leases in Australia. The Company did not have any outstanding borrowings under the revolving credit facility as of December 31, 2018. In addition, the Company may, subject to certain conditions, including the consent of the administrative agent and the institutions providing such increases, increase the facilities by an unlimited amount so long as the Company is in compliance with specified leverage ratios, or otherwise by up to $70,000. Borrowings under the facilities bear interest at a floating rate, which can be either a Eurodollar rate plus an applicable margin or, at the Company’s option, a base rate (defined as the highest of (x) the JPMorgan Chase, N.A. prime rate, (y) the federal funds effective rate, plus one-half percent (0.50%) per annum and (z) a one-month Eurodollar rate plus 1.00% per annum) plus an applicable margin. The applicable margin for borrowings under the term loan facility is 4.00% per annum for Eurodollar rate loans (subject to a 1.00% per annum interest rate floor) and 3.00% per annum for base rate loans. As a result of the completion of the Company’s IPO in December 2017, the applicable margin for borrowings under the revolving credit facility is 1.75% per annum for Eurodollar rate loans and 0.75% per annum for base rate loans, subject to reduction based on the Company’s maintaining of specified net leverage ratios. The interest rates payable under the facilities are subject to an increase of 2.00% per annum during the continuance of any payment default. For Eurodollar rate loans, the Company may select interest periods of one, three or six months or, with the consent of all relevant affected lenders, twelve months. Interest will be payable at the end of the selected interest period, but no less frequently than every three months within the selected interest period. Interest on any base rate loan is not set for any specified period and is payable quarterly. The Company has the right to convert Eurodollar rate loans into base rate loans and the right to convert base rate loans into Eurodollar rate loans at its option, subject, in the case of Eurodollar rate loans, to prepayment penalties if the conversion is effected prior to the end of the applicable interest period. As of December 31, 2019, the interest rate on the Term Loans was 5.80% per annum, which was based on a one-month Eurodollar rate of 1.80% per annum plus the applicable margin of 4.00% per annum for Eurodollar rate loans. As of December 31, 2018, the interest rate on the Term Loans was 6.52% per annum, which was based on a one-month Eurodollar rate of 2.52% per annum plus the applicable margin of 4.00% per annum for Eurodollar rate loans. Upon entering into the term loan facility, the Company incurred debt issuance costs of $7,811, which were initially recorded as a reduction of the debt liability and are amortized to interest expense using the effective interest method from the issuance date of the Term Loan until the maturity date. Principal payments of $3,000 were made under the term loan facility during each of the years ended December 31, 2019, 2018 and 2017. Interest expense, including the amortization of debt issuance costs, totaled $19,728, $19,146 and $16,800 for the years ended December 31, 2019, 2018 and 2017, respectively. The revolving credit facility also requires payment of quarterly commitment fees at a rate of 0.25% per annum on the difference between committed amounts and amounts actually borrowed under the facility and customary letter of credit fees. For the years ended December 31, 2019, 2018 and 2017, interest expense related to the fee for the unused amount of the revolving credit facility totaled $59 $62 and $61, respectively. The Term Loans mature on December 20, 2023, and the revolving credit facility matures on December 20, 2021. The Term Loans are subject to amortization in equal quarterly installments, which commenced on March 31, 2017, of principal in an annual aggregate amount equal to 1.0% of the original principal amount of the Term Loans of $300,000, with the remaining outstanding balance payable at the date of maturity. Voluntary prepayments of principal amounts outstanding under the term loan facility are permitted at any time; however, if a prepayment of principal is made with respect to a Eurodollar loan on a date other than the last day of the applicable interest period, the Company is required to compensate the lenders for any funding losses and expenses incurred as a result of the prepayment. Prior to the revolving credit facility maturity date, funds borrowed under the revolving credit facility may be borrowed, repaid and reborrowed, without premium or penalty. In addition, the Company is required to make mandatory prepayments under the facilities with respect to (i) 100% of the net cash proceeds from certain asset dispositions (including casualty and condemnation events) by the Company or certain of its subsidiaries, subject to certain exceptions and reinvestment provisions, (ii) 100% of the net cash proceeds from the issuance or incurrence of any additional debt by the Company or certain of its subsidiaries, subject to certain exceptions, and (iii) 50% of the Company’s excess cash flow, as defined in the credit agreement, subject to reduction upon its achievement of specified performance targets. The facilities are secured by, among other things, a first priority security interest, subject to permitted liens, in substantially all of the Company’s assets and all of the assets of certain of its subsidiaries and a pledge of certain of the stock of certain of its subsidiaries, in each case subject to specified exceptions. The facilities contain customary affirmative and negative covenants, including certain restrictions on the Company’s ability to pay dividends, and, with respect to the revolving credit facility, a financial covenant requiring the Company to maintain a specified total net leverage ratio in the event that on the last day of any fiscal quarter the Company has utilized more than 30% of its borrowing capacity under the facility. The Company’s net leverage ratio exceeded the maximum on December 31, 2019; however, as the Company’s utilization of the revolving credit facility did not exceed the 30% testing threshold on December 31, 2019, the Company was not in default the revolving credit facility as a result of the Company’s net leverage ratio exceeding the maximum permitted amount. The Company was in compliance with all other applicable covenants of the facilities as of December 31, 2019 and with all applicable covenants as of December 31, 2018. Commercial Mortgage Loan On July 1, 2015, the Company entered into a commercial mortgage loan agreement in the amount of $7,950 (the “Mortgage Loan”). Borrowings under the Mortgage Loan bear interest at a rate of 3.5% per annum and are repayable in 60 monthly installments of $46, consisting of principal and interest based on a 20-year amortization schedule. The remaining amount of unpaid principal under the Mortgage Loan is due on the maturity date of July 1, 2020. Upon entering into the Mortgage Loan, the Company incurred debt issuance costs of $45, which were initially recorded as a direct deduction from the debt liability and are amortized to interest expense using the effective interest method from issuance date of the loan until the maturity date. The Company made principal payments under the Mortgage Loan of $314, $303 and $292 during the years ended December 31, 2019, 2018 and 2017, respectively. Interest expense, including the amortization of debt issuance costs, totaled $249, $260 and $272 for the years ended December 31, 2019, 2018 and 2017, respectively. The Mortgage Loan is secured by the land and building purchased in March 2015 and subjects the Company to various affirmative, negative and financial covenants, including maintenance of a minimum debt service ratio. The Company was in compliance with all covenants of the Mortgage Loan as of December 31, 2019 and 2018. As of December 31, 2019, aggregate minimum future principal payments of the Company’s debt are summarized as follows: Year Ending December 31, 2020 $ 9,644 2021 3,000 2022 3,000 2023 3,000 2024 279,000 Thereafter - $ 297,644 |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Stockholders’ Equity | 11. Stockholders’ Equity Upon the closing of the Company’s IPO on December 19, 2017, all shares of the Company’s then-outstanding preferred stock automatically converted on a ten-for-one basis into an aggregate of 40,382 shares of the Company’s common stock. In addition, the Company filed a restated certificate of incorporation, which authorized the issuance of preferred stock with rights and preferences, including voting rights, designated from time to time by the board of directors. As of December 31, 2019, there were 5,000 shares of preferred stock authorized with a par value of $0.001 per share, and no shares of preferred stock issued or outstanding. Special Dividends to Holders of Common and Preferred Stock November 2017 Special Dividend On November 30, 2017, the board of directors declared a special dividend to the holders of common stock and preferred stock of record on that date, contingent upon the closing of the Company’s IPO. The cash dividend declared to stockholders was $0.5802 per share of common stock, $5.8020 per share of Series B convertible preferred stock (the “Series B Preferred Stock”) and $5.8020 per share of Series C convertible preferred stock (the “Series C Preferred Stock”). Related to this special declared in November 2017, the Company paid $865 and $42,137 of dividends to the common and preferred stockholders during the years ended December 31, 2018 , respectively, and no dividend payments with respect to this special dividend were payable as of . In connection with this special dividend declared in November 2017, the board of directors also approved, contingent upon the payment of the November 2017 special dividend, cash payments to be made to holders of the Company’s stock options, SARs and RSUs as an equitable adjustment to the holders of such instruments in accordance with the provisions of the Company’s equity incentive plans. The equitable adjustment payments to the holders of the stock options, SARs and RSUs are equal to $0.5802 per share multiplied by the net number of shares subject to outstanding equity awards after applying the treasury stock method. The cash payments to such holders will be made as their equity awards vest through fiscal year 2021. During the years ended , the Company paid $426, $1,132 and $5,193, respectively, to the holders of such vested equity awards. As of , equitable adjustment payments to be made as equity awards vest through fiscal year 2021, net of estimated forfeitures, totaled $177 and $603, respectively, and were included in accrued expenses and other current liabilities in the accompanying consolidated balance sheets. The cash dividends declared to the holders of common stock, Series B Preferred Stock and Series C Preferred Stock totaled $19,572, $1,039 and $22,391, respectively, and the equitable adjustment to the holders of stock options, SARs and RSUs, net of estimated forfeitures, totaled $6,928. The $49,930 aggregate amount of such dividends and equitable adjustments was recorded as a charge to additional paid-in capital during the year ended December 31, 2017. May 2017 Special Dividend On May 10, 2017, the board of directors declared and the stockholders approved a special dividend to the holders of common stock and preferred stock of record on that date. The cash dividend declared to stockholders was $1.1774 per share of common stock, $11.7744 per share of Series B Preferred Stock and $11.7744 per share of Series C Preferred Stock. Related to this special dividend declared in May 2017, the Company paid 87,133 of dividends to the common and preferred stockholders during the year ended December 31, 2017 . December 31, 2019 In connection with the special dividend declared in May 2017, the board of directors also approved cash payments to be made to holders of the Company’s stock options, SARs and RSUs as an equitable adjustment to the holders of such instruments in accordance with the provisions of the Company’s equity incentive plans. The equitable adjustment payments to the holders of the stock options, SARs and RSUs are equal to $1.1774 per share multiplied by the net number of shares subject to outstanding equity awards after applying the treasury stock method. The cash payments to such holders will be made as their equity awards vest through fiscal year 2021. During the years ended December 31, 2019, 2018 and 2017, the Company paid $618, $1,492 and $10,431 to the holders of such vested equity awards. As of December 31, 2019 The cash dividends declared to the holders of common stock, Series B Preferred Stock and Series C Preferred Stock totaled $39,585, $2,108 and $45,440, respectively, and the equitable adjustment to the holders of stock options, SARs and RSUs, net of estimated forfeitures, totaled $12,723. The $99,856 aggregate amount of such dividends and equitable adjustments was recorded as a charge to additional paid-in capital (until reduced to zero) and a charge to accumulated deficit during the year ended December 2016 Special Dividend On December 21, 2016, the board of directors declared, and on December 29, 2016 the stockholders approved, a special dividend to the holders of common stock and preferred stock of record on December 27, 2016. The cash dividend declared to stockholders was $2.3306 per share of common stock, $23.3058 per share of Series B Preferred Stock and $23.3058 per share of Series C Preferred Stock. Related to this special dividend declared in December 2016, the Company paid In connection with the special dividend declared in December 2016, the board of directors also approved cash payments to be made to holders of the Company’s stock options, SARs and RSUs as an equitable adjustment to the holders of such instruments in accordance with the provisions of the Company’s equity incentive plans. The equitable adjustment payments to the holders of stock options, SARs and RSUs are equal to $2.3306 per share multiplied by the net number of shares subject to outstanding equity awards after applying the treasury stock method. The cash payments to such holders will be made as their equity awards vest through fiscal year 2020. During the years ended December 31, 2019, 2018 and 2017, the Company paid $1,286, $3,105 and $23,395, respectively, to the holders of such vested equity awards. As of December 31, 2019 and 2018, equitable adjustment payments to be made as equity awards vest through fiscal year 2020, net of estimated forfeitures, totaled $335 and $1,621, respectively, and were included in accrued expenses and other current liabilities in the accompanying consolidated balance sheet. June 2016 Special Dividend On June 17, 2016, the board of directors declared and the stockholders approved a special dividend to the holders of common stock and preferred stock of record on that date. The cash dividend declared to stockholders was $0.5891 per share of common stock, $5.8910 per share of Series B Preferred Stock, and $5.8910 per share of Series C Preferred Stock. Related to this special dividend declared in June 2016, the Company paid no dividends to the common and preferred stockholders during the years ended December 31, 2019, 2018 and 2017, and no dividend payments with respect to this special dividend were payable as of December 31, 2019 or 2018. In connection with the special dividend declared in June 2016, the board of directors also approved cash payments to be made to holders of the Company’s stock options, SARs and RSUs as an equitable adjustment to the holders of such instruments in accordance with the provisions of the Company’s equity incentive plans. The equitable adjustment payments to the holders of stock options, SARs and RSUs are equal to $0.5891 per share multiplied by the net number of shares subject to outstanding equity awards after applying the treasury stock method. The cash payments to such holders will be made as their equity awards vest through fiscal year 2020. During the years ended December 31, 2019, 2018 and 2017, the Company paid $259, $684 and $1,075, respectively to the holders of such vested equity awards. As of December 31, 2019 and 2018, equitable adjustment payments to be made as equity awards vest through fiscal year 2020, net of estimated forfeitures, totaled $37 and $296 and were included in accrued expenses and other current liabilities in the accompanying consolidated balance sheet. November 2014 Special Dividend On November 30, 2014, the board of directors declared and the stockholders approved a special dividend to the holders of common stock and preferred stock of record on that date. The cash dividend declared to stockholders was $0.3835 per share of common stock, $3.8346 per share of Series B Preferred Stock Series C Preferred Stock In connection with the special dividend declared in November 2014, the board of directors also approved cash payments to be made to holders of the Company’s stock options and SARs as an equitable adjustment to the holders of such instruments in accordance with the provisions of the Company’s equity incentive plans. The equitable adjustment payments to the holders of stock options and SARs are equal to $0.3835 per share multiplied by the net number of shares subject to outstanding equity awards after applying the treasury stock method. The cash payments to the holders of stock options and SARs were made as equity awards vested through fiscal year 2018. During the years ended December 31, 2019, 2018 and 2017, the Company paid $1, $43 and $117, respectively, to the holders of stock options and SARs for vested equity awards. As of December 31, 2018, equitable adjustment payments to be made as equity awards vested through fiscal year 2018, net of estimated forfeitures, totaled $20, and were included in accrued expenses and other current liabilities in the accompanying consolidated balance sheets. No equitable adjustment payments in connection with these awards remained outstanding as of December 31, 2019. |
Common Stock
Common Stock | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Common Stock | 12. Common Stock Upon the closing of the IPO on December 19, 2017, the Company filed a restated certificate of incorporation, which authorized the Company to issue 500,000 shares of $0.001 par value common stock. Each share of common stock entitles the holder to one vote on all matters submitted to a vote of the Company’s stockholders. Common stockholders are entitled to receive dividends, as may be declared by the board of directors, if any, subject to the preferential dividend rights of the preferred stock. Through December 31, 2019, except for the special cash dividends declared on November 30, 2014, June 17, 2016, December 21, 2016, May 10, 2017 and November 30, 2017 (see Note 11), no dividends have been declared by the board of directors. As of December 31, 2019, the Company had reserved 20,630 shares of common stock for the exercise of outstanding stock options, the vesting of outstanding RSUs, and the number of shares remaining available for grant under the Company’s 2017 Stock Incentive Plan (see Note 13). Stock Split On December 1, 2017, the Company effected a five-for-one stock split of its issued and outstanding shares of common stock and a proportional adjustment to the existing conversion ratio of each series of the Company’s Convertible Preferred Stock (see Note 11). Accordingly, all share and per share amounts for all periods presented in the accompanying consolidated financial statements and notes thereto have been adjusted retroactively, where applicable, to reflect this stock split and adjustment of the preferred stock conversion ratios. Stock Repurchase Program On February 21, 2019, the Company announced a stock repurchase program authorizing it to repurchase up to $75,000 of the Company’s common stock. During the year ended December 31, 2019, the Company repurchased 495 shares for $1,785, before commissions. As of December 31, 2019, $73,215 remained authorized for repurchases of the Company’s common stock under this stock repurchase program. On August 14, 2018, the Company announced a stock repurchase program authorizing it to repurchase up to $75,000 of the Company’s common stock. During the year ended December 31, 2018, the Company repurchased and retired 5,172 shares for $75,000, before commissions. Stock repurchases under this program are now complete. |
Stock-based Compensation
Stock-based Compensation | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-based Compensation | 13. Stock-based Compensation 2003 Stock Incentive Plan The Company’s 2003 Stock Incentive Plan, as amended (the “2003 Plan”), provided for the grant of qualified incentive stock options, nonqualified stock options, restricted stock or other stock-based awards to the Company’s employees, officers, directors, advisers and outside consultants. The number of shares authorized for grant under the 2003 Plan, as amended, was 32,500 shares. The 2003 Plan was administered by the board of directors, or at the discretion of the board of directors, by a committee of the board or by one or more executive officers of the Company. The exercise prices, vesting and other restrictions were determined at the discretion of the board of directors, or their committee or by one or more executive officers of the Company, if so delegated. The 2003 Plan was terminated in August 2011, and the remaining 2,140 shares available for issuance under the plan at that time were transferred to the Company’s 2011 Stock Incentive Plan (the “2011 Plan”). The shares of common stock underlying any awards that are forfeited, canceled, repurchased or are otherwise terminated by the Company under the 2003 Plan will be added back to the shares of common stock available for issuance under the Company’s 2017 Stock Incentive Plan (the “2017 Plan”). 2011 Stock Incentive Plan The 2011 Plan provided for the Company to sell or issue common stock or restricted common stock, or to grant qualified incentive stock options, nonqualified stock options, SARs, RSUs or other stock-based awards to the Company’s employees, officers, directors, advisers and outside consultants. The 2011 Plan was administered by the board of directors, or at the discretion of the board of directors, by a committee of the board. The exercise prices, vesting and other restrictions were determined at the discretion of the board of directors, or their committee if so delegated, except that the exercise price per share of stock options could not be less than 100% of the fair market value of common stock on the date of grant and the term of the stock option could not be greater than ten years. The stock options generally vest over a four-year period and expire ten years from the date of grant. Certain options provide for accelerated vesting if there is a change in control (as defined in the stock option agreements). The 2011 Plan was terminated for the purpose of making new grants in December 2017, and the remaining 2,855 shares available for issuance under the 2011 Plan at that time were transferred to the 2017 Plan. Awards outstanding under the 2011 Plan at the time of the 2011 Plan’s termination will continue to be governed by their existing terms. The shares of common stock underlying any awards that are forfeited, canceled, repurchased or are otherwise terminated by the Company under the 2011 Plan will be added back to the shares of common stock available for issuance under the 2017 Plan. 2017 Stock Incentive Plan On November 17, 2017, the Company’s board of directors adopted, and on November 30, 2017, the Company’s stockholders approved, the 2017 Plan, which became effective immediately prior to the effectiveness of the registration statement for the IPO. The 2017 Plan provides for the grant of incentive stock options, nonqualified stock options, stock appreciation rights, restricted stock awards, restricted stock units and other stock-based awards. The number of shares initially reserved for issuance under the 2017 Plan is the sum of 7,161 shares, plus the number of shares (up to 18,746 shares) equal to the sum of (i) the number of shares remaining available for issuance under the 2003 Plan and 2011 Plan upon the effectiveness of the 2017 Plan and (ii) the number of shares of common stock subject to outstanding awards under the 2003 Plan and 2011 Plan that expire, terminate or are otherwise surrendered, canceled, forfeited or repurchased by the Company at their original issuance price pursuant to a contractual repurchase right. The number of shares of common stock that may be issued under the 2017 Plan will automatically increase on each January 1, beginning with the fiscal year ending December 31, 2019 and continuing for each fiscal year until, and including, the fiscal year ending December 31, 2027, equal to the least of (i) 20,000 shares, (ii) 4% of the outstanding shares of common stock on such date and (iii) an amount determined by the Company’s board of directors. The shares of common stock underlying any awards that are forfeited, canceled, repurchased or are otherwise terminated by the Company under the 2017 Plan will be added back to the shares of common stock available for issuance under the 2017 Plan. The total number of shares authorized for issuance under the 2017 Plan was 13,565 shares as of December 31, 2019, of which 10,727 shares remained available for future grant. Stock Option Valuation The fair value of each option award is estimated on the date of grant using the Black-Scholes option-pricing model that uses the assumptions noted in the table below. Expected volatility for the Company’s common stock was determined based on an average of the historical volatility of a peer group of similar public companies. The expected term of options granted was calculated using the simplified method, which represents the average of the contractual term of the option and the weighted-average vesting period of the option. The Company uses the simplified method because it does not have sufficient historical option exercise data to provide a reasonable basis upon which to estimate the expected term. The expected dividend yield is based on the fact that the Company does not have a history of paying cash dividends, except for the special dividends declared in November 2014, June 2016, December 2016, May 2017 and November 2017 (see Note 11), and in those circumstances, the board of directors approved cash dividends to be paid to holders of the Company’s stock options and SARs upon vesting as an equitable adjustment to the holders of such instruments. The risk-free rate for periods within the expected life of the option is based upon the U.S. Treasury yield curve in effect at the time of grant. In determining the exercise prices for options granted prior to the Company’s IPO, the Company’s board of directors considered the fair value of the common stock as of the measurement date. The fair value of the common stock was determined by the board of directors at each award grant date based upon a variety of factors, including the results obtained from an independent third-party valuation of the Company’s common stock, the Company’s financial position and historical financial performance, the status of technological developments within the Company’s products, the composition and ability of the current management team, an evaluation or benchmark of the Company’s competition, the current business climate in the marketplace, the illiquid nature of the common stock, the effect of the rights and preferences of the holders of the Company’s convertible preferred stock, and the prospects of a liquidity event, among others. The assumptions used in the Black-Scholes option-pricing model were as follows: Year Ended December 31, 2019 2018 2017 Risk-free interest rate 1.6%-2.5% 2.7%–3.0% 2.0%–2.2% Expected term (in years) 6.1-6.2 6.0–6.2 6.0–6.2 Expected volatility 28.8%–30.6% 30.6%–32.6% 33.0%–38.5% Expected dividend yield 0.0% 0.0% 0.0% Stock Options A summary of option activity under the 2003 Plan, the 2011 Plan and the 2017 Plan for the year ended December 31, 2019 is as follows: Number of Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term Aggregate Intrinsic Value (in years) Outstanding at January 1, 2019 9,566 $ 7.29 6.35 $ 61,561 Granted 213 6.52 Exercised (1,129 ) 2.38 Forfeited (400 ) 11.69 Outstanding at December 31, 2019 8,250 $ 7.73 5.65 $ 4,235 Options exercisable at December 31, 2019 6,983 $ 6.65 5.22 $ 4,218 Vested or expected to vest at December 31, 2019 8,186 $ 7.69 5.63 $ 4,233 The weighted-average grant-date fair value of options granted during the years ended December 31, 2019, 2018 and 2017 was $2.13, $7.59 and $4.74 per share, respectively. Cash proceeds received upon the exercise of options were $2,687, $14,730 and $274 during the years ended December 31, 2019, 2018 and 2017, respectively. The intrinsic value of stock options exercised during the years ended December 31, 2019, 2018 and 2017 was $6,970, $105,787 and $1,915, respectively. The aggregate intrinsic value is calculated as the difference between the exercise price of the stock options and the fair value of the Company’s common stock for those stock options that had exercise prices lower than the fair value of the Company’s common stock. Restricted Stock Units On February 5, 2019, February 19, 2019, May 16, 2019, June 11, 2019, July 30, 2019, September 11, 2019, and December 11, 2019 the Company granted 714, 229, 68, 105, 134, 130, and 8 RSUs, respectively, under the 2017 Plan. On March 8, 2018, June 6, 2018, June 14, 2018, September 27, 2018, November 27, 2018, December 14, 2018, the Company granted 103, 7, 83, 185, 20 and 22 RSUs, respectively, under the 2017 Plan. On January 31, 2017 and May 15, 2017, the Company granted 176 and 15 RSUs, respectively, under the 2011 Plan. On December 15, 2017, the Company granted 35 RSUs under the 2017 Plan. On March 26, 2016 and January 23, 2015, the Company granted 244 and 2,103 RSUs, respectively, under the 2011 Plan. The RSUs vest ratably over a one- to four-year period from the date of grant. The grant-date fair value of each RSU award is being recorded as stock-based compensation expense on a straight-line basis, net of estimated forfeitures, over the requisite service period for the RSUs, which is generally one to four years. The fair value of each RSU on the date of grant is the estimated fair value of the underlying common stock on the date of the grant. A summary of RSU activity under the 2011 Plan and the 2017 Plan for the year ended December 31, 2019 is as follows: Number of Shares Weighted- Average Grant Date Fair Value Aggregate Fair Value Unvested balance at January 1, 2019 759 $ 13.40 Granted 1,389 10.08 Vested (320 ) 10.67 $ 3,659 Forfeited (175 ) 10.92 Unvested balance at December 31, 2019 1,653 $ 11.38 The Company withheld 77, 1 and 310 shares of common stock in settlement of employee tax withholding obligations due upon the vesting of RSUs during the years ended December 31, 2019, 2018 and 2017, respectively. Stock Appreciation Rights In January 2017, the Company granted 110 SARs that allow the holder the right, upon exercise, to receive in cash the amount of the difference between the fair market value of the Company’s common stock at the date of exercise and the price of the underlying common stock at the date of grant of each SAR. The price of the underlying common stock on the date of grant was $12.24 per share and the grant-date fair value was $4.52 per SAR. No SARs were granted during each of the years ended December 31, 2019 and 2018. The SARs vest over a four-year period from the date of grant and expire ten years from the date of grant. As of December 31, 2019, 220 SARs were outstanding, inclusive of grants made prior to 2017, of which 218 SARs were vested and exercisable, with a fair value of $1.21 per SAR, and 2 SARs were not yet vested. During the year ended December 31, 2019, 20 SARs were forfeited. The fair value of the SAR liability as of December 31, 2019 and 2018 was $264 and $1,387, respectively (see Note 7), and was included in accrued expenses and other current liabilities in the accompanying consolidated balance sheets. Stock-Based Compensation Expense The Company recorded stock-based compensation expense of $9,821, $8,894 and $9,136 during the years ended December 31, 2019, 2018 and 2017, respectively, which is based on the number of stock options, RSUs and SARs ultimately expected to vest. As of December 31, 2019, there was $18,413 of unrecognized compensation cost related to outstanding stock options, RSUs and SARs, which is expected to be recognized over a weighted-average period of 2.53 years. Stock-based compensation expense related to stock options, RSUs and SARs for the years ended December 31, 2019, 2018 and 2017 was classified in the consolidated statements of operations and comprehensive (loss) income as follows: Year Ended December 31, 2019 2018 2017 Cost of revenue $ 216 $ 249 $ 306 Research and development expenses 1,569 1,864 2,864 Selling, general and administrative 8,036 6,781 5,966 $ 9,821 $ 8,894 $ 9,136 |
Net (Loss) Income per Share
Net (Loss) Income per Share | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Net (Loss) Income per Share | 14. Net (Loss) Income per Share Basic and diluted net (loss) income per share attributable to common stockholders was calculated as follows: Year Ended December 31, 2019 2018 2017 Numerator: Net (loss) income $ (48,206 ) $ 73,006 $ 88,500 Cumulative dividends on convertible preferred stock — — (5,674 ) Dividends declared on convertible preferred stock — — (70,977 ) Net (loss) income attributable to common stockholders, basic and diluted $ (48,206 ) $ 73,006 $ 11,849 Denominator: Weighted-average shares used to compute net (loss) income per share attributable to common stockholders, basic 83,853 83,539 35,359 Dilutive effect of stock options — 8,086 9,141 Dilutive effect of restricted stock units — 252 472 Weighted-average shares used to compute net (loss) income per share attributable to common stockholders, diluted 83,853 91,877 44,972 Net (loss) income per share attributable to common stockholders: Basic $ (0.57 ) $ 0.87 $ 0.34 Diluted $ (0.57 ) $ 0.79 $ 0.26 The following potential common shares, presented based on amounts outstanding at each period end, were excluded from the computation of diluted net (loss) income per share attributable to common stockholders for the periods presented because including them would have been anti-dilutive: Year Ended December 31, 2019 2018 2017 Options to purchase common stock 4,641 2,213 2,281 Unvested restricted stock units 1,516 168 35 |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | 15. Segment Information The Company operates as one operating segment. Operating segments are defined as components of an enterprise for which separate financial information is regularly evaluated by the Company’s chief operating decision maker, or decision-making group, in deciding how to allocate resources and assess performance. The Company has determined that its chief operating decision maker is its President and Chief Executive Officer. The Company’s chief operating decision maker reviews the Company’s financial information on a consolidated basis for purposes of allocating resources and assessing financial performance. Since the Company operates as one operating segment, all required financial segment information can be found in these consolidated financial statements. The following table summarizes the Company’s revenue based on the customer’s location, as determined by the customer’s shipping address: Year Ended December 31, 2019 2018 2017 North America: United States $ 103,451 $ 104,124 $ 143,540 Canada 36,466 41,884 58,316 Total North America 139,917 146,008 201,856 Latin America 24,043 32,283 40,347 Europe, Middle East and Africa: Germany 13,773 45,864 13,396 Other 24,381 35,479 48,062 Total Europe, Middle East and Africa 38,154 81,343 61,458 Asia-Pacific Australia 42,218 24,354 18,348 Other 37,965 13,139 29,566 Total Asia-Pacific 80,183 37,493 47,914 Total revenue (1) $ 282,297 $ 297,127 $ 351,575 (1) Other than the United States, Canada, Germany and Australia, no individual countries represented 10% or more of the Company’s total revenue for any of the periods presented. The Company’s property and equipment, net by location was as follows: December 31, 2019 2018 United States $ 25,583 $ 25,088 China 3,277 2,623 Australia 4,041 — Other 3,009 2,168 Total property and equipment, net $ 35,910 $ 29,879 |
Related Parties
Related Parties | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Parties | 16. Related Parties Transactions Involving Liberty Global Ventures Holding B.V. and its Affiliates Liberty Global Ventures Holding B.V. was a principal stockholder of the Company through its ownership of common stock. Affiliates of Liberty Global Ventures Holding B.V. (“Liberty Global Affiliates”) are customers of the Company. Liberty Global Affiliates ceased being a principal stockholder as of October 19, 2018, when it disposed a portion of its ownership of the Company’s stock. During the periods in which it was a related party in the years ended December 31, 2018 and 2017, the Company recognized revenue of $22,252 and $39,370, respectively, from transactions with Liberty Global Affiliates and amounts received in cash from Liberty Global Affiliates totaled $30,432 and $38,273, respectively. Consulting Agreement with Bill Styslinger In March 2012, the Company entered into a consulting agreement with Bill Styslinger, a member of its board of directors, for the provision of sales management, corporate strategy and advisory services, which was initially scheduled to expire on January 31, 2014. The Company extended the term of the consulting agreement on two occasions, and the consulting agreement expired on December 31, 2016. Under the consulting agreement, Mr. Styslinger was granted stock options which entitled him to equitable adjustment payments (see Note 11). In connection with the special dividends declared in December 2016 and May 2017, the Company paid Mr. Styslinger $1,075 as equitable adjustments in the year ended December 31, 2017. The Company made no payments to Mr. Styslinger as equitable adjustments in the years ended December 31, 2019 and 2018. In addition, during both the years ended December 31, 2018 and 2017, the Company recognized selling, general and administrative expenses of $205 for Mr. Styslinger’s services as a non-employee director. As of December 31, 2018, $14 was due to Mr. Styslinger for his services as a non-employee director. No amount was due to Mr. Styslinger for his services as a non-employee director as of December 31, 2019. Employment of Rongke Xie Rongke Xie, who serves as Deputy General Manager of Guangzhou Casa Communication Technology LTD (“Casa China”), a subsidiary of the Company, is the sister of Lucy Xie, the Company’s Senior Vice President of Operations and a member of the Company’s board of directors. Casa China paid Rongke Xie $117, $143 and $160 in total compensation in the years ended December 31, 2019, 2018 and 2017, respectively, for her services as an employee. In addition, during the years ended December 31, 2019 and 2018, the Company granted to Rongke Xie 8 and 5 RSUs, respectively, which vest in annual installments over a four-year period. The grant-date fair value of the award totaled $100 and $100, respectively, which will be recorded as stock-based compensation expense over the vesting period of the award. During the years ended December 31, 2019 and 2018, the Company recognized selling, general and administrative expenses of $46 and $13 related to these awards, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 17. Commitments and Contingencies Operating Leases The Company leases manufacturing, warehouse and office space in the United States, China, Hong Kong, Spain, Australia and the United Kingdom under non-cancelable operating leases that expire through 2023. The Company also has a lease in Ireland that expires in 2026, but provides the Company the right to terminate in 2021. Rent expense for the years ended December 31, 2019, 2018 and 2017 was $2,459, $1,029 and $933, respectively. Rent expense is recorded on a straight-line basis, and, as a result, as of December 31, 2019 and 2018, the Company had a deferred rent liability of $212 and $184, respectively, which is included in accrued expenses and other current liabilities in the accompanying consolidated balance sheets. Future minimum lease payments under non-cancelable operating leases as of December 31, 2019 were as follows: Year Ending December 31, 2020 $ 2,723 2021 1,488 2022 114 2023 5 2024 — Thereafter — $ 4,330 Indemnification The Company has, in the ordinary course of business, agreed to defend and indemnify certain customers against third-party claims asserting infringement of certain intellectual property rights, which may include patents, copyrights, trademarks or trade secrets. As permitted under Delaware law, the Company indemnifies its officers, directors and employees for certain events or occurrences that happen by reason of their relationship with or position held at the Company. As of December 31, 2019 and 2018, the Company had not experienced any losses related to these indemnification obligations and no material claims were outstanding. The Company does not expect significant claims related to these indemnification obligations and, consequently, concluded that the fair value of these obligations is negligible, and no related liabilities were recorded in its consolidated financial statements. Litigation On May 29, 2019 and July 3, 2019, two putative class action lawsuits, Shen v. Chen et al. and Baig v. Chen et al., were filed in the Massachusetts Superior Court against the Company, certain of its current and former executive officers and directors, Summit Partners, the Company’s largest investor, and the underwriters from the Company’s December 15, 2017 initial public offering (the “IPO”) (collectively, the “defendants”). These complaints purport to be brought on behalf of all purchasers of the Company’s common stock in and/or traceable to the IPO. The complaints generally allege that (i) each of the defendants violated Section 11 and/or Section 12(a)(2) of the Securities Act of 1933, as amended, (the “Securities Act”), because documents related to the Company’s IPO including its registration statement and prospectus were materially misleading by containing untrue statements of material fact and/or omitting to state material facts necessary to make such statements not misleading and (ii) the individual defendants and Summit Partners acted as controlling persons within the meaning and in violation of Section 15 of the Securities Act. On August 13, 2019, the Court consolidated these actions and referred the consolidated actions to the Business Litigation Session of the Massachusetts Superior Court (the “BLS”). On September 3, 2019, the BLS accepted the consolidated action into its session for further proceedings. On November 12, 2019, the plaintiffs filed an amended shareholder class action complaint, purportedly on behalf of all purchasers of the Company’s common stock in and/or traceable to the IPO, which contains substantially similar allegations and asserts the same claims as the two initial complaints, described above. Plaintiffs seek compensatory damages, costs and expenses, including counsel and expert fees, rescission or a rescissory measure of damages, and equitable and injunctive relief. On January 14, 2020, the defendants filed motions to dismiss the amended complaint. On August 9, 2019, a third putative class action lawsuit, Donald Hook v. Casa Systems, Inc. et al., was filed in the Supreme Court of New York, New York County, against the Company, certain of its current and former executive officers and directors, Summit Partners, and the underwriters from the IPO. The complaint purports to be brought on behalf of all purchasers of the Company’s common stock in and/or traceable to the IPO and generally alleges that (i) each of the defendants violated Section 11 and/or Section 12(a)(2) of the Securities Act of 1933, as amended, or the Securities Act, because documents related to the IPO including its registration statement and prospectus were materially misleading by containing untrue statements of material fact and/or omitting to state material facts necessary to make such statements not misleading and (ii) the individual defendants and Summit Partners acted as controlling persons within the meaning and in violation of Section 15 of the Securities Act. On November 22, 2019, the plaintiff filed an amended complaint, purportedly on behalf of all purchasers of the Company’s common stock in and/or traceable to the IPO, which contains substantially similar allegations as the initial complaint, described above, and asserts claims for violations of Sections 11 and 15 of the Securities Act. The plaintiff seeks compensatory damages, costs and expenses, including counsel and expert fees, rescission or a rescissory measure of damages, disgorgement, and equitable and injunctive relief. On January 21, 2020, the defendants filed motions to dismiss the amended complaint. On August 13, 2019, a fourth putative class action lawsuit, Panther Partners, Inc. v. Guo et al., was filed in the Supreme Court of New York, New York County, against the Company, certain of its current and former executive officers and directors, and the underwriters from the Company’s April 30, 2018 follow-on offering of common stock, (the “Follow-on Offering”). The complaint purports to be brought on behalf of all purchasers of the Company’s common stock in the Follow-on Offering and generally alleges that (i) each of the defendants, other than Abraham Pucheril, violated Section 11 of the Securities Act, and each of the defendants violated Section 12(a)(2) of the Securities Act, because documents related to the Company’s Follow-on Offering, including its registration statement and prospectus, was materially misleading by containing untrue statements of material fact and/or omitting to state material facts necessary to make such statements not misleading and (ii) the individual defendants acted as controlling persons within the meaning and in violation of Section 15 of the Securities Act. On November 22, 2019, the plaintiff filed an amended class action complaint, purportedly on behalf of all purchasers of the Company’s common stock in the Follow-on Offering, which contains substantially similar allegations and asserts the same claims as the initial complaint, described above. The plaintiff seeks compensatory damages, costs and expenses, including counsel and expert fees, rescission or a rescissory measure of damages, and equitable and injunctive relief. On January 21, 2020, the defendants filed motions to dismiss the amended complaint No amounts have been accrued for any of the putative class action lawsuits referenced above as of December 31, 2019 as the Company does not believe the likelihood of a material loss is probable. Although the ultimate outcome of these matters cannot be predicted with certainty, the resolution of this matter could have a material impact on the Company’s results of operations in the period in which such matter is resolved. |
Employee Benefit Plan
Employee Benefit Plan | 12 Months Ended |
Dec. 31, 2019 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee Benefit Plan | 18. Employee Benefit Plan The Company has a Section 401(k) defined contribution savings plan for its employees. The plan covers substantially all employees in the United States who meet minimum age and service requirements and allows participants to defer a portion of their annual compensation on a pre-tax basis, subject to certain limitations. Company contributions to the plan may be made at the discretion of the board of directors. Effective January 1, 2014, the Company commenced matching contributions in the amount of 50% of the employee’s contributions of up to 6% of eligible wages. The Company made matching contributions to the plan of $1,762, $1,630 and $1,484 in the years ended December 31, 2019, 2018 and 2017, respectively. |
Selected Quarterly Financial In
Selected Quarterly Financial Information (Unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
Selected Quarterly Financial Information [Abstract] | |
Selected Quarterly Financial Information (Unaudited) | 19. Selected Quarterly Financial Information (Unaudited) The following tables set forth selected unaudited quarterly consolidated statements of (loss) income data for each of the quarters in the years ended December 31, 2019 and 2018: Three Months Ended Dec. 31, 2019 Sept. 30, 2019 June 30, 2019 Mar. 31, 2019 Dec. 31, 2018 Sept. 30, 2018 June 30, 2018 Mar. 31, 2018 (in thousands) Revenue: Product $ 101,182 $ 71,319 $ 42,223 $ 26,653 $ 57,446 $ 60,817 $ 58,537 $ 80,189 Service 11,712 10,497 9,878 8,833 10,379 10,689 10,185 8,885 Total revenue 112,894 81,816 52,101 35,486 67,825 71,506 68,722 89,074 Cost of revenue: Product 52,076 40,578 10,976 9,429 16,738 13,272 18,560 25,780 Services 1,302 2,024 1,820 1,560 1,408 1,303 761 1,339 Total cost of revenue 53,378 42,602 12,796 10,989 18,146 14,575 19,321 27,119 Gross profit 59,516 39,214 39,305 24,497 49,679 56,931 49,401 61,955 Operating expenses: Research and development 22,508 24,158 18,260 18,405 17,345 16,403 16,696 20,530 Selling, general and administrative 27,002 23,823 17,302 20,193 15,502 17,905 16,163 18,456 Total operating expenses 49,510 47,981 35,562 38,598 32,847 34,308 32,859 38,986 Income (loss) from operations 10,006 (8,767 ) 3,743 (14,101 ) 16,832 22,623 16,542 22,969 Other income (expense), net (3,535 ) (5,343 ) (3,010 ) (3,408 ) (3,578 ) (2,731 ) (3,319 ) (3,400 ) Income (loss) before provision for (benefit from) income taxes 6,471 (14,110 ) 733 (17,509 ) 13,254 19,892 13,223 19,569 Provision for (benefit from) income taxes 32,131 (5,612 ) (558 ) (2,170 ) (1,662 ) 995 (8,194 ) 1,793 Net (loss) income $ (25,660 ) $ (8,498 ) $ 1,291 $ (15,339 ) $ 14,916 $ 18,897 $ 21,417 $ 17,776 Net (loss) income per share attributable to common stockholders: Basic $ (0.31 ) $ (0.10 ) $ 0.02 $ (0.18 ) $ 0.18 $ 0.22 $ 0.26 $ 0.22 Diluted $ (0.31 ) $ (0.10 ) $ 0.01 $ (0.18 ) $ 0.17 $ 0.21 $ 0.23 $ 0.19 The net loss for the three months ended December 31, 2019 is primarily due to the recording of valuation allowances against our U.S. deferred tax assets of $35,198. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting periods. Significant estimates and judgments relied upon by management in preparing these consolidated financial statements include revenue recognition, provision for doubtful accounts, reserves for excess and obsolete inventory, valuation of inventory and deferred inventory costs, the expensing and capitalization of software-related research and development costs, amortization and depreciation periods, recoverability of net deferred tax assets, valuations of uncertain tax positions, provision for (benefit from) income taxes, warranty allowances, the valuation of the Company’s common stock and other equity instruments, and stock-based compensation expense. Although the Company regularly reassesses the assumptions underlying these estimates, actual results could differ materially from these estimates. Changes in estimates are recorded in the period in which they become known. The Company bases its estimates on historical experience and various other assumptions that it believes to be reasonable under the circumstances existing at the time such estimates are made. |
Cash and Cash Equivalents, Restricted Cash | Cash, Cash Equivalents and Restricted Cash Cash and cash equivalents include all highly liquid investments maturing within three months from the date of purchase. As of December 31, 2019 and 2018, the Company’s cash and cash equivalents consisted of investments in certificates of deposit and money market mutual funds. Restricted cash, which was included in other assets as of December 31, 2019 and 2018, consisted of a certificate of deposit of $1,019 in each period pledged as collateral for a stand-by letter of credit required to support a contractual obligation. The following table is a reconciliation of cash, cash equivalents and restricted cash included in the accompanying consolidated balance sheets that sum to the total cash, cash equivalents and restricted cash included in the accompanying consolidated statements of cash flows. December 31, 2019 December 31, 2018 Cash and cash equivalents $ 113,638 $ 280,587 Restricted cash included in other assets 1,019 1,019 $ 114,657 $ 281,606 |
Accounts Receivable | Accounts Receivable Accounts receivable are presented net of a provision for doubtful accounts, which is an estimate of amounts that may not be collectible. Accounts receivable for arrangements with customary payment terms, which are one year or less, are recorded at invoiced amounts and do not bear interest. The Company generally does not require collateral, but the Company may, in certain instances based on its credit assessment, require full or partial prepayment prior to shipment. In limited instances, for certain customers and/or for certain transactions, the Company provides extended payment arrangements to allow the customer to pay for the purchased equipment in monthly, other periodic or lump-sum payments over a period of one to five years. In certain circumstances, the receivables may be collateralized by the underlying assets over the payment period. Payments due beyond 12 months from the balance sheet date are recorded as non-current assets. Accounts receivable as of December 31, 2019 and 2018 consisted of the following: December 31, 2019 2018 Current portion of accounts receivable, net: Accounts receivable, net $ 91,273 $ 79,526 Accounts receivable, extended payment arrangements 1,827 2,256 93,100 81,782 Accounts receivable, net of current portion: Accounts receivable, extended payment arrangements 575 2,388 $ 93,675 $ 84,170 The Company performs ongoing credit evaluations of its customers and, if necessary, provides a provision for doubtful accounts and expected losses. When assessing and recording its provision for doubtful accounts, the Company evaluates the age of its accounts receivable, current economic trends, creditworthiness of the customers, customer payment history, and other specific customer and transaction information. The Company writes off accounts receivable against the provision when it determines a balance is uncollectible and no longer actively pursues collection of the receivable. Adjustments to the provision for doubtful accounts are recorded as selling, general and administrative expenses in the consolidated statements of operations and comprehensive (loss) income. A summary of changes in the provision for doubtful accounts for the years ended December 31, 2019, 2018 and 2017 is as follows: Year Ended December 31, 2019 2018 2017 Provision for doubtful accounts at beginning of year $ 410 $ 692 $ 690 Provisions and recoveries 560 — 6 Write-offs (950 ) (282 ) (4 ) Provision for doubtful accounts at end of year $ 20 $ 410 $ 692 As of December 31, 2019 and 2018, the Company concluded that all amounts due under extended payment term arrangements were collectible and no reserve for credit losses was recorded. During the years ended December 31, 2019, 2018 and 2017, the Company did not provide a reserve for credit losses and did not write off any uncollectible receivables due under extended payment term arrangements. |
Inventories | Inventories Inventories are valued at the lower of cost or market value. Cost is computed using the first-in first-out convention. Inventories are composed of hardware and related component parts of finished goods. The Company establishes provisions for excess and obsolete inventories after evaluating historical sales, future demand, market conditions, expected product life cycles, and current inventory levels to reduce such inventories to their estimated net realizable value. Such provisions are made in the normal course of business and charged to cost of revenue in the consolidated statements of operations and comprehensive (loss) income. Deferred inventory costs are included within inventory in the consolidated balance sheets. Deferred inventory costs represent the cost of products that have been delivered to the customer for which revenue associated with the arrangement has been deferred as a result of not meeting all of the required revenue recognition criteria, such as receipt of customer acceptance. Until the revenue recognition criteria are met, the Company retains the right to a return of the underlying inventory. Deferred inventory costs are recognized as cost of revenue in the consolidated statements of operations and comprehensive (loss) income when the related revenue is recognized. |
Property and Equipment | Property and Equipment Property and equipment is stated at historical cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. Leasehold improvements are recorded at cost with any reimbursement from the landlord being accounted for as deferred rent, which is amortized using the straight-line method over the lease term. Costs for trial systems held and used by the Company’s customers pursuant to evaluation agreements are also included within property and equipment. Trial systems held and used by the Company’s customers are depreciated over the estimated useful life of such assets, which is two years. Whenever a trial system is sold to a customer and the selling price is recorded as revenue, the related net book value of the trial system sold is removed from property and equipment and recorded as a cost of revenue. Maintenance and repairs expenditures are charged to expense as incurred. Estimated useful lives of the respective property and equipment assets are as follows: Estimated Useful Life Computers and purchased software 3 years Leasehold improvements Shorter of lease term or 7 years Furniture and fixtures 7 years Machinery and equipment 3 – 5 years Building 40 years Building improvements 5 – 40 years Trial systems at customers’ sites 2 years Upon retirement or sale, the cost of assets disposed of and the related accumulated depreciation are removed from the accounts and any resulting gain or loss is included in (loss) income from operations. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The Company evaluates its long-lived assets, which consist primarily of property and equipment, for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Factors that the Company considers in deciding when to perform an impairment review include significant underperformance of the business in relation to expectations, significant negative industry or economic trends and significant changes or planned changes in the use of the assets. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the future undiscounted net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the asset exceeds the fair value of the asset, less the cost to sell. No events or changes in circumstances existed to require an impairment assessment during the years ended December 31, 2019, 2018 and 2017. |
Deferred Offering Costs | Deferred Offering Costs Deferred offering costs of $4,094, consisting of legal, professional accounting and other third-party fees related to the IPO, were reclassified to additional paid-in capital as a reduction of the proceeds upon the closing of the IPO in December 2017. Deferred offering costs of $1,148 and $2,384 were paid during the years ended December 31, 2018 and 2017, respectively. No deferred offering costs were paid during the year ended December 31, 2019. |
Concentration of Risks | Concentration of Risks Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents and accounts receivable. Cash and cash equivalents consist of demand deposits, savings accounts, commercial paper, money market mutual funds, and certificates of deposit with financial institutions, which may exceed Federal Deposit Insurance Corporation limits. The Company has not experienced any losses related to its cash and cash equivalents and does not believe that it is subject to unusual credit risk beyond the normal credit risk associated with commercial banking relationships. Significant customers are those that represent 10% or more of revenue or accounts receivable and are set forth in the following tables: Revenue Accounts Receivable, Net Year Ended December 31, December 31, 2019 2018 2017 2019 2018 Customer A 14 % 27 % 37 % 11 % 13 % Customer B * 11 % 11 % * 15 % Customer C * 12 % * 14 % 18 % Customer D * 14 % * * 28 % Customer E * * * 19 % * Customer F 12 % * * * * * Less than 10% of total Customer B was a related party until October 19, 2018, Liberty Global Affiliates (see Note 16). Certain of the components and subassemblies included in the Company’s products are obtained from a single source or a limited group of suppliers. Although the Company seeks to reduce dependence on those limited sources of suppliers and manufacturers, the partial or complete loss of certain of these sources could have a material adverse effect on the Company’s operating results, financial condition and cash flows and damage its customer relationships. |
Goodwill and Acquired Intangible Assets | Goodwill and Acquired Intangible Assets Goodwill represents the excess purchase price over the estimated fair value of net assets acquired as of the acquisition date. The Company tests goodwill for impairment on an annual basis and between annual tests when impairment indicators are identified, and goodwill is written down when impaired. Goodwill has been recognized in connection with the acquisition of NetComm on July 1, 2019 (refer to Note 3). The Company performs its annual goodwill impairment test during its fourth quarter. For its annual goodwill impairment test, the Company operates under one reporting unit and the fair value of its reporting unit has been determined based on the Company’s enterprise value. As part of the annual goodwill impairment test, the Company has the option to perform a qualitative assessment to determine whether further impairment testing is necessary. Examples of events and circumstances that might indicate that the reporting unit’s fair value is less than its carrying amount include macro-economic conditions such as deterioration in the entity’s operating environment or industry or market considerations; entity-specific events such as increasing costs, declining financial performance, or loss of key personnel; or other events such as a sustained decrease in the stock price on either an absolute basis or relative to peers. If, as a result of its qualitative assessment, it is more likely than not (i.e., greater than 50% chance) that the fair value of the Company’s reporting unit is less than its carrying amount, the quantitative impairment test will be required. Otherwise, no further testing will be required. The Company completed its qualitative assessment and concluded that as of December 31, 2019, it is not more likely than not that the fair value of the Company’s reporting unit is less than its carrying amount. The Company's intangible assets subject to amortization are amortized using the straight-line method over their estimated useful lives, ranging from three to ten years. The Company evaluates the recoverability of intangible assets periodically by taking into account events or circumstances that may warrant revised estimates of useful lives or that indicate the asset may be impaired. The Company considered potential impairment indicators of acquired intangible assets at December 31, 2019 and noted no indicators of impairment. |
Product Warranties | Product Warranties Substantially all of the Company’s products are covered by a warranty for software and hardware for periods ranging from 90 days to one year. In addition, in conjunction with customers’ renewals of maintenance and support contracts, the Company offers an extended warranty for periods typically of one to three years for agreed-upon fees. In the event of a failure of a hardware product or software covered by these warranties, the Company must repair or replace the software or hardware or, if those remedies are insufficient, and at the discretion of the Company, provide a refund. The Company’s warranty reserve, which is included in accrued expenses and other current liabilities in the consolidated balance sheets, reflects estimated material, labor and other costs related to potential or actual software and hardware warranty claims for which the Company expects to incur an obligation. The Company’s estimates of anticipated rates of warranty claims and the costs associated therewith are primarily based on historical information and future forecasts. The Company periodically assesses the adequacy of the warranty reserve and adjusts the amount as necessary. If the historical data used to calculate the adequacy of the warranty reserve are not indicative of future requirements, additional or reduced warranty reserves may be required. A summary of changes in the amount reserved for warranty costs for the years ended December 31, 2019, 2018 and 2017 is as follows: Year Ended December 31, 2019 2018 2017 Warranty reserve at beginning of year $ 926 $ 1,246 $ 1,256 Provisions 3,603 1,886 1,829 Acquired warranty reserve 1,867 — — Charges (3,948 ) (2,206 ) (1,839 ) Warranty reserve at end of year $ 2,448 $ 926 $ 1,246 The increase in the warranty charges and reserve for the year ended December 31, 2019 is primarily due to warranty obligations obtained with the acquisition of NetComm on July 1, 2019. |
Revenue Recognition | Revenue Recognition Effective January 1, 2019, the Company adopted ASC Topic 606, Revenue from Contracts with Customers (“ASC 606”) using the modified retrospective transition method. This method was applied to contracts that were not complete as of the date of initial application. The following is a summary of new and/or revised significant accounting policies affected by the Company’s adoption of ASC 606, which relate primarily to revenue and cost recognition. Refer to Note 2, Summary of Significant Accounting Policies, in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 for the policies in effect for revenue and cost recognition prior to January 1, 2019. The Company generates revenue from sales of its products, along with associated maintenance, support and extended hardware warranty services, and, to a lesser extent, from sales of professional services. The Company also generates revenue from sales of additional line cards and software-based capacity expansions. Maintenance and support services include telephone support, bug fixes and unspecified software upgrades and updates provided on a when-and-if-available basis and/or extended hardware warranty. In the Company’s consolidated statements of operations and comprehensive (loss) income, revenue from sales of broadband products, Axyom products and fixed wireless access and fiber-to-the-distribution-point (FTTdp) devices are classified as product revenue, and revenue from maintenance and support and professional services is classified as service revenue. In accordance with ASC 606, revenue is recognized when a customer obtains control of promised products or services. The amount of revenue recognized reflects the consideration that the Company expects to be entitled to receive in exchange for these products or services. To achieve the core principle of this standard, the Company applies the following five steps: 1) Identify the contract with a customer 2) Identify the performance obligations in the contract 3) Determine the transaction price 4) Allocate the transaction price to performance obligations in the contract 5) Recognize revenue when or as the Company satisfies a performance obligation Performance Obligations The majority of the Company’s contracts with customers contain multiple performance obligations including products and maintenance services, and on a limited basis, professional services. For these contracts, the Company accounts for individual performance obligations separately if they are considered distinct. The Company’s broadband products, Axyom products, maintenance services and professional services are considered distinct performance obligations. When multiple performance obligations exist in a customer contract, the transaction price is allocated to the separate performance obligations on a relative SSP basis. Determination of SSP requires judgment and is based on the best evidence available which may include the standalone selling price of products when sold on a standalone basis to similar customers in similar circumstances, or in the absence of standalone sales, taking into consideration the Company’s historical pricing practices by customer type, selling method (i.e. resellers or direct), and geographic-specific market factors. Product revenue The Company’s broadband products have both software and non-software (i.e., hardware) components that function together to deliver the products’ essential functionality. Broadband hardware products generally cannot be used apart from the embedded software and is considered one distinct performance obligation. Revenue on broadband hardware products with embedded software is recognized at a point in time when control of the products is transferred to the customer, which is typically when risk of loss has transferred and the right to payment is enforceable. This is generally when the product has shipped or been delivered, based on agreed-upon shipping terms. The Company also earns revenue from the sale of software-enabled capacity expansions. Revenue on software-enabled capacity expansions are distinct performance obligations as they are separately identifiable and provide additional bandwidth capacity on hardware products already purchased by the customer. Revenue is recognized on software-enabled capacity expansions when control is transferred, which is typically when risk of loss has transferred and the right to payment is enforceable. This is generally when the software-based capacity expansions are made available to the customer. The Company also generates revenue from the sale of its Axyom software platform and related delivery platform hardware including indoor and outdoor Apex small cells. Perpetual licenses and hardware are distinct performance obligations as they are separately identifiable, and the customer can benefit from the licenses and hardware on its own. Revenue is recognized at a point in time when control of the products is transferred to the customer, which is typically when risk of loss has transferred and the right to payment is enforceable. Generally, this occurs when software licenses are made available to customers and hardware products are shipped or delivered, based on agreed-upon shipping terms. The Company also generates revenue from the sale of its fixed wireless access and fiber-to-the-distribution-point (“FTTdp”) devices, the product line acquired via the acquisition of NetComm on July 1, 2019. The arrangements consist of a single hardware element making it a distinct performance obligation as they are separately identifiable, and the customer can benefit from the hardware on their own. Revenue is generally recognized at a point in time when control of the asset is transferred to the customer. Generally, this occurs when hardware products are shipped or delivered, based on agreed-upon shipping terms. When customer contracts require acceptance of product and services, the Company considers the nature of the acceptance provisions to determine if they are substantive or considered a formality that does not impact the timing of revenue recognition. When acceptance provisions are considered substantive, the Company will defer revenue on all performance obligations in the contract subject to acceptance until acceptance has been received. The Company does not defer revenue when acceptance provisions are deemed a formality. Maintenance and Support Services and Professional Services Revenue The Company’s broadband and Axyom products are sold with maintenance and support services, a distinct performance obligation, that includes the stand-ready obligation to provide telephone support, bug fixes and unspecified software upgrades and updates provided on a when-and-if-available basis and/or extended hardware warranty. The Company’s fixed wireless access and fiber-to-the-distribution-point (FTTdp) devices generally do not have a support component. After the initial sale, customers may purchase annual renewals of support contracts. The Company’s telephone support and unspecified upgrades and updates are delivered over time and therefore revenue is recognized ratably over the contract term, which is typically one year, but can be as long as five years. The Company also generates revenue from sales of professional services, such as installation, configuration and training. Professional services are a distinct performance obligation since the Company’s products are functional without these services and can generally be performed by the customer or a third party. Professional services are generally delivered over time, with revenue recognized as services are performed, which is generally based on labor hours incurred during the period compared to the total estimated labor hours. The sale of the Company’s products generally includes a 90-day warranty on the software and a one-year warranty on the hardware component of the products, which includes repair or replacement of the applicable hardware. These warranties are to ensure the products perform in accordance with the Company’s specifications and are therefore not a performance obligation. The Company records a warranty accrual for the initial software and hardware warranty included with product sales and does not defer revenue. Resellers and Sales Agents The Company markets and sell its products through its direct global sales force, supported by sales agents, and through resellers. The Company’s resellers receive an order from an end customer prior to placing an order with the Company, and the Company confirms the identification of or is aware of the end customer prior to accepting such order. The Company invoices the reseller an amount that reflects a reseller discount and records revenue based on the amount of the discounted transaction value. The Company’s resellers do not stock inventory received from the Company. When the Company transacts with a reseller, the contract is with the reseller and not with the end customer. Whether the Company transacts business with and receives the order from a reseller or directly from an end customer, its revenue recognition policy and resulting pattern of revenue recognition for the order are the same. The Company also uses sales agents that assist in the sales process with certain customers primarily located in the Latin America and Asia-Pacific regions. Sales agents are not resellers. If a sales agent is engaged in the sales process, the Company receives the order directly from and sells the products and services directly to the end customer, and the Company pays a commission to the sales agent, calculated as a percentage of the related transaction value. Accounting considerations related to sales agent commissions are discussed in the “Costs to Obtain or Fulfill a Contract” section below. The Company has assessed whether it is the principal (i.e., reports revenues on a gross basis) or agent (i.e., reports revenues on a net basis) by evaluating whether it has control of the good or service before it is transferred to the customer. Generally, the Company controls the promised good or service before transferring it to the customer and acts as the principal in the transaction. Accordingly, the Company reports revenues on a gross basis. Costs to Obtain or Fulfill a Contract The Company capitalizes commission expenses paid to internal sales personnel and sales agent commissions that are incremental to obtaining customer contracts, for which the related revenue is recognized over a future period. These costs are incurred on initial sales of product, maintenance and professional services and maintenance and support contract renewals. The Company defers these costs and amortizes them over the period of benefit, which the Company generally considers to be the contract term or length of the longest delivery period as contract capitalization costs in the consolidated balance sheets. Commissions paid relating to contract renewals are deferred and amortized on a straight-line basis over the related renewal period as commissions paid on renewals are commensurate with commissions paid on initial sales transactions. The Company periodically reviews the carrying amount of capitalized contract costs to determine whether events or changes in circumstances have occurred that could impact the period of benefit. The Company also pays commissions on maintenance and support contract renewals. Commissions paid on renewals are commensurate with commissions paid on the initial maintenance and support contracts. These commissions are deferred and amortized on a straight-line basis over the related renewal period. Costs to obtain a contract for professional services contracts are expensed as incurred in accordance with the practical expedient as the contractual period of the Company’s professional services contracts are one year or less. As of January 1, 2019 and December 31, 2019, the Company had short-term capitalized contract costs of $209 and $585, respectively, which are included in prepaid expenses and other current assets and had long-term capitalized contract costs of $128 and $70, respectively, which are included in other assets in the accompanying consolidated balance sheets. During the year ended December 31, 2019, amortization expense associated with capitalized contract costs was $695 which was recorded to selling, general and administrative expenses in the accompanying consolidated statements of operations and comprehensive (loss) income. Deferred Revenue Amounts billed in excess of revenue recognized are recorded as deferred revenue. Deferred revenue includes customer deposits, amounts billed for maintenance and support services contracts in advance of services being performed, amounts for trade-in right liabilities and amounts related to contracts that have been deferred as a result of not meeting the required revenue recognition criteria as of the end of the reporting period. Deferred revenue expected to be recognized as revenue more than one year subsequent to the balance sheet date is reported within long-term liabilities in the consolidated balance sheets. The Company defers recognition of direct costs, such as cost of goods and services, until recognition of the related revenue. Such costs are classified as current assets if the related deferred revenue is classified as current, and such costs are classified as non-current assets if the related deferred revenue is classified as non-current. Other Revenue Recognition Policies The Company’s customary payment terms are generally one year or less. The Company has elected to apply the practical expedient that allows an entity to not adjust the promised amount of consideration in customer contracts for the effect of a significant financing component when the period between the transfer of product and services and payment of the related consideration is less than one year. If the Company provides extended payment terms that represent a significant financing component, the Company adjusts the amount of promised consideration for the time value of money using its discounted rate and recognizes interest income separate from the revenue recognized on contracts with customers. During the year ended December 31, 2019, the Company recorded $160 in interest income in its consolidated statements of operations and comprehensive (loss) income. In limited instances, the Company has offered future rebates to customers based on a fixed or variable percentage of actual sales volumes over specified periods. The future rebates earned based on the customer’s purchasing from the Company in one period may be used as credits to be applied by them against accounts receivable due to the Company in later periods. The Company accounts for these future rebates as variable consideration and reduces the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the variable consideration is resolved. The reduction of the transaction price is estimated based on historical activity and other relevant factors and is recognized when the Company recognizes revenue for the transfer of goods and services to the customer on which the future rebate was earned. Other forms of contingent revenue or variable consideration are infrequent. When a customer contract includes future trade-in rights, which are distinct performance obligations, the Company accounts for the customer contract by recognizing the revenue on the products transferred, deferring revenue allocated to the future product based on a relative standalone selling price, and an asset for the value of the trade-in product to be recovered from the customer upon delivery of the future product. The Company assesses and updates these estimates each reporting period, and updates to these estimates may result in either an increase or decrease in the amount of the future product liability and product return asset. The Company recognizes revenue allocated to the future product when the product has shipped or been delivered, and control has transferred. As of December 31, 2019, there were no future product liabilities or product return assets. The Company excludes any taxes assessed by a governmental authority that are directly imposed on a revenue-producing transaction (e.g., sales, use and value added taxes) from its transaction price. Billings to customers for reimbursement of out-of-pocket expenses, including travel, lodging and meals, are recorded as revenue, and the associated costs incurred by the Company for those items are recorded as cost of revenue. Revenue related to the reimbursement of out-of-pocket costs are accounted for as variable consideration. The Company accounts for any shipping and handling activities as a fulfilment cost rather than an additional promised service. Shipping and handling billed to customers is recorded as an offset to cost of revenue. Contract Balances Contract liabilities consist of deferred revenue and include payments received in advance of performance under the contract. Such amounts are recognized as revenue when the Company satisfies its performance obligations, consistent with the above methodology. For the year ended December 31, 2019, the Company recognized $22,273 of revenue that was included in deferred revenue as of January 1, 2019. The Company receives payments from customers based upon contractual billing terms. Accounts receivable are recorded when the right to consideration becomes unconditional. Contract assets include amounts related to the Company’s contractual right to consideration for both completed and partially completed performance obligations that may not have been invoiced. As of January 1, 2019 and December 31, 2019, contract assets of $28 and $50, respectively, were included in prepaid expenses and other current assets in the accompanying consolidated balance sheets. Transaction Price Allocated to the Remaining Performance Obligations As of December 31, 2019, the aggregate remaining amount of revenue expected to be recognized related to unsatisfied or partially unsatisfied performance obligations is $30,068. The Company expects approximately 85% of this amount to be recognized in the next twelve months with the remainder to be recognized over the next two to five years. Disaggregation of Revenue The Company disaggregates its revenue by product and service in the consolidated statements of operations and comprehensive (loss) income. Performance obligations related to product revenue are recognized at a point in time, while performance obligations related to service revenue are recognized over time. The Company also disaggregates its revenue based on geographic locations of its customers, as determined by the customer’s shipping address. Transition Disclosures In accordance with the modified retrospective method transition requirements, the Company has presented the financial statement line items impacted and adjusted to compare to presentation under ASC Topic 605, Revenue Recognition As of December 31, 2019 Balance Sheet As Reported under ASC 606 Adjustments Without adoption of ASC 606 Assets: Accounts receivable $ 93,100 $ 47 $ 93,147 Inventory 93,604 186 93,790 Prepaid expenses and other current assets 4,884 54 4,938 Prepaid income taxes 3,217 330 3,547 Accounts receivable, net of current portion 575 23 598 Deferred tax assets 69 1,757 1,826 Other assets 7,820 (69 ) 7,751 Total assets $ 444,312 $ 2,328 $ 446,640 Liabilities: Accrued expenses and other current liabilities $ 34,567 $ (491 ) $ 34,076 Deferred revenue 25,485 8,194 33,679 Deferred revenue, net of current portion 4,583 1,856 6,439 Total liabilities 405,748 9,559 415,307 Stockholders’ Equity: Accumulated deficit (127,064 ) (7,231 ) (134,295 ) Total stockholders’ equity 38,564 (7,231 ) 31,333 Total liabilities and stockholders’ equity $ 444,312 $ 2,328 $ 446,640 Total reported assets under ASC 606 as of December 31, 2019 were $2,328 less than the total assets without the adoption of ASC 606 largely due to decreases in deferred tax assets, prepaid income taxes and deferred inventory costs related to contracts for which deferred revenue was adjusted to retained earnings, partially offset by increases in prepaid expenses and other current assets and other assets related to contract costs capitalized under ASC 606 that would have been expensed when incurred under ASC 605. Total reported liabilities under ASC 606 as of December 31, 2019 were $9,559 less than the total liabilities without the adoption of ASC 606 primarily driven by the adjustment of deferred revenue related to a customer contract for which revenue was recognized based on receipt of cash payments under ASC 605 that would have been recognized upon product acceptance under ASC 606, offset by an increase in accrued partner commissions in accrued expenses and other current liabilities. These partner commissions were previously being recognized in the period in which cash was received and revenue was recognized. Upon the adoption of ASC 606, partner commissions are reflected as a cost to obtain a contract and they are expensed consistent with the pattern of revenue recognition on this contract. Year Ended December 31, 2019 Statement of Operations and Comprehensive (Loss) Income As Reported under ASC 606 Adjustments Without adoption of ASC 606 Revenue: Product $ 241,377 $ (6,201 ) $ 235,176 Service 40,920 197 41,117 Total revenue 282,297 (6,004 ) 276,293 Cost of revenue: Product 113,059 182 113,241 Gross profit 162,532 (6,186 ) 156,346 Operating expenses: Selling, general and administrative 88,320 231 88,551 Loss from operations (9,119 ) (6,417 ) (15,536 ) Other income (expense): Interest income 4,406 (159 ) 4,247 Loss before provision for (benefit from) income taxes (24,415 ) (6,576 ) (30,991 ) Provision for (benefit from) income taxes 23,791 (1,495 ) 22,296 Net loss (48,206 ) (5,081 ) (53,287 ) Comprehensive loss $ (49,270 ) $ (5,081 ) $ (54,351 ) Net loss per share attributable to common stockholders: Basic $ (0.57 ) $ (0.07 ) $ (0.64 ) Diluted $ (0.57 ) $ (0.07 ) $ (0.64 ) During the year ended December 31, 2019, the adoption of ASC 606 resulted in a net increase to product revenue due to certain contracts for which product revenue was recognized upon delivery that would have been deferred without the adoption of ASC 606 due to the lack of vendor-specific objective evidence. Year Ended December 31, 2019 Statement of Cash Flows As Reported under ASC 606 Adjustments Without adoption of ASC 606 Cash flows used in operating activities: Net loss $ (48,206 ) $ (5,081 ) $ (53,287 ) Deferred income taxes 19,641 (1,166 ) 18,475 Changes in operating assets and liabilities: Accounts receivable 1,881 159 2,040 Inventory (21,276 ) 182 (21,094 ) Prepaid expenses and other assets (3,679 ) (322 ) (4,001 ) Prepaid income taxes 16 (330 ) (314 ) Accrued expenses and other current liabilities (7,827 ) 554 (7,273 ) Deferred revenue (9,498 ) 6,004 (3,494 ) Net cash used in operating activities $ (39,022 ) $ — $ (39,022 ) During the year ended December 31, 2019, the adoption of ASC 606 resulted in offsetting changes in operating assets and liabilities and had no impact on net cash flow from operations. |
Stock-Based Compensation | Stock-Based Compensation The Company measures stock options and other stock-based awards granted to employees and directors based on the fair value on the date of the grant and recognizes compensation expense of those awards, net of estimated forfeitures, over the requisite service period, which is generally the vesting period of the respective award. Generally, the Company issues stock options with only service-based vesting conditions and records the expense for these awards using the straight-line method. For stock-based awards granted to non-employee consultants, compensation expense is recognized over the period during which services are rendered by such non-employee consultants until completed. At the end of each financial reporting period prior to completion of the service, the fair value of these awards is remeasured using the then-current fair value of the Company’s common stock and updated assumption inputs in the Black-Scholes option-pricing model. The Company classifies stock-based compensation expense in its consolidated statements of operations and comprehensive (loss) income in the same manner in which the award recipient’s payroll costs are classified or in which the award recipient’s service payments are classified. The Company recognizes compensation expense for only the portion of awards that are expected to vest. In developing a forfeiture rate estimate, the Company has considered its historical experience to estimate pre-vesting forfeitures for service-based awards. The impact of a forfeiture rate adjustment will be recognized in full in the period of adjustment, and if the actual forfeiture rate is materially different from the Company’s estimate, the Company may be required to record adjustments to stock-based compensation expense in future periods. The fair value of each stock option grant is estimated on the date of grant using the Black-Scholes option pricing model. The Company was a private company until December 14, 2017 and lacks sufficient company-specific historical and implied volatility information for its stock. Therefore, it estimates its expected stock volatility based on the historical volatility of publicly traded peer companies and expects to continue to do so until such time as it has adequate historical data regarding the volatility of its own traded stock price. The expected term of the Company’s stock options has been determined utilizing the “simplified” method for awards that qualify as “plain-vanilla” options. The expected term of stock options granted to non-employees is equal to the contractual term of the option award. The risk-free interest rate is determined by reference to the U.S. Treasury yield curve in effect at the time of grant of the award for time periods approximately equal to the expected term of the award. Expected dividend yield is based on the fact that the Company does not have a history of declaring or paying cash dividends, except for the special cash dividends declared in November 2014, June 2016, December 2016, May 2017 and November 2017 and in those circumstances the board of directors approved cash dividends to be paid to holders of the Company’s stock options, stock appreciation rights (“SARs”) and restricted stock units (“RSUs”) upon vesting as an equitable adjustment to the holders of such instruments. The Company has also granted SARs to certain employees, which require the Company to pay in cash upon exercise an amount equal to the product of the excess of the per share fair market value of the Company’s common stock on the date of exercise over the exercise price, multiplied by the number of shares of common stock with respect to which the SAR is exercised. Because these awards may require the Company to settle the awards in cash, they are accounted for as a liability in the Company’s consolidated balance sheets. The liability related to these awards, as well as related compensation expense, is recognized over the period during which services are rendered until completed. Changes in the fair value of the SAR liability are estimated using the Black-Scholes option pricing model and are recorded in the consolidated statements of operations and comprehensive (loss) income. After vesting is completed, the Company will continue to remeasure the fair market value of the liability until the award is either exercised or canceled, with changes in the fair value of the liability recorded in the consolidated statements of operations and comprehensive (loss) income. |
Research and Development Costs | Research and Development Costs The Company expenses research and development costs as incurred. Costs incurred to develop software to be licensed to customers are expensed prior to the establishment of technological feasibility of the software and are capitalized thereafter until commercial release of the software. The Company has not historically capitalized software development costs as the establishment of technological feasibility typically occurs shortly before the commercial release of its software, which is embedded in its products. As such, all software development costs related to software for license to customers are expensed as incurred and included within research and development expense in the accompanying consolidated statements of operations and comprehensive (loss) income. |
Advertising Costs | Advertising Costs Advertising costs are expensed as incurred and are included in selling, general and administrative expense in the accompanying consolidated statements of operations and comprehensive (loss) income. Advertising expenses were not significant for any periods presented. |
Foreign Currency Translation | Foreign Currency Translation For the Company’s subsidiaries in Ireland and Australia, the U.S. dollar is the functional currency. For each of the Company’s other foreign subsidiaries, the functional currency is its local currency. Assets and liabilities of these foreign subsidiaries are translated into U.S. dollars using period-end exchange rates, and revenues and expenses are translated into U.S. dollars using average exchange rates in effect during each period. The effects of these foreign currency translation adjustments are included in accumulated other comprehensive (loss) income, a separate component of stockholders’ equity (deficit). Foreign currency transaction gains (losses) are included in the consolidated statements of operations and comprehensive (loss) income as a component of other income (expense) and totaled $298, $(911) and $886 for the years ended December 31, 2019, 2018 and 2017, respectively. |
Fair Value Measurements | Fair Value Measurements Certain assets and liabilities are carried at fair value under GAAP. Fair value is defined as the price that would be received for an asset or the exit price that would be paid to transfer a liability in the principal or most advantageous market in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. Financial assets and liabilities carried at fair value are to be classified and disclosed in one of the following three levels of the fair value hierarchy, of which the first two are considered observable and the last is considered unobservable: Level 1— Quoted prices in active markets for identical assets and liabilities. Level 2— Observable inputs (other than Level 1 quoted prices), such as quoted prices in active markets for similar assets or liabilities at the measurement date; quoted prices in markets that are not active for identical or similar assets and liabilities; or other inputs that are observable or can be corroborated by observable market data. Level 3— Unobservable inputs that involve management judgment and are supported by little or no market activity, including pricing models, discounted cash flow methodologies and similar techniques. The categorization of a financial instrument within the valuation hierarchy is based on the lowest level of input that is significant to the fair value measurement. The Company’s cash equivalents, marketable securities, foreign currency forward contracts and SARs are carried at fair value, determined according to the fair value hierarchy described above (see Note 7). The fair values of accounts receivable, accounts payable and accrued expenses and other current liabilities approximate their fair values due to the short-term nature of these assets and liabilities, with the exception of amounts recorded by the Company as “accounts receivable, non-current,” which represent amounts billed to customers for which payment has not yet become due and for which an offsetting amount of deferred revenue has been recorded. The carrying values of the Company’s debt obligations (see Note 10) as of December 31, 2019 and 2018 approximated their fair values because the debt bears interest at rates the Company would be required to pay on the issuance of debt with similar terms, based on an analysis of recent market conditions and other Company-specific factors. |
Income Taxes | Income Taxes The Company accounts for 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 temporary differences between the financial statement and tax basis of assets and liabilities, as measured by enacted tax rates anticipated to be in effect when these differences reverse. This method also requires the recognition of future tax benefits to the extent that realization of such benefits is more likely than not. Deferred tax expense or benefit is the result of changes in the deferred tax assets and liabilities. The Company assesses the likelihood that its deferred tax assets will be recovered from future taxable income and, to the extent it believes, based upon the weight of available evidence, that it is more likely than not that all or a portion of the deferred tax assets will not be realized, a valuation allowance is established through a charge to income tax expense. Potential for recovery of deferred tax assets is evaluated by estimating the future taxable profits expected and considering prudent and feasible tax planning strategies. As of December 31, 2019, the Company determined that it is more likely than not that a portion of its net U.S. deferred tax assets will not be realized, and thus has recognized a valuation allowance of $39,124 against our net U.S. deferred tax assets that are not expected to be realized, an increase of $35,198 during the year ended December 31, 2019 (see Note 9). The Company records a liability for potential payments of taxes to various tax authorities related to uncertain tax positions and other tax matters. The recorded liability is based on a determination of whether and how much of a tax benefit taken by the Company in its tax filings or positions is “more likely than not” to be realized. The amount of the benefit that may be recognized in the financial statements is the largest amount that has a greater than 50% likelihood of being realized upon ultimate settlement. To the extent that the assessment of such tax positions changes, the change in estimate is recorded in the period in which the determination is made. The Company establishes a liability, which is included in accrued income taxes in the consolidated balance sheets, for tax-related uncertainties based on estimates of whether, and the extent to which, additional taxes will be due. These liabilities are established when the Company believes that certain positions might be challenged despite the Company’s belief that the tax return positions are fully supportable. The recorded liability is adjusted in light of changing facts and circumstances. The provision for (benefit from) income taxes includes the impact of the recorded liability and changes thereto. The Company recognizes interest and penalties related to uncertain tax positions within other income (expense) in the accompanying consolidated statements of operations and comprehensive (loss) income. Accrued interest and penalties are included in accrued income taxes in the consolidated balance sheets. On December 22, 2017, the Tax Cuts and Jobs Act (the “TCJA”) was enacted which, among other things, lowered the U.S. corporate income tax rate to 21% from 35%, repealed the domestic production activity deductions, limited the deductibility of certain executive compensation and interest expense, and established a modified territorial system requiring a mandatory deemed repatriation tax on undistributed earnings of foreign subsidiaries. Beginning in 2018, the TCJA also requires a minimum tax on certain future earnings generated by foreign subsidiaries while providing for future tax-free repatriation of such earnings through a 100% dividends-received deduction. While the intent of TCJA was to provide for a territorial tax system, effective for taxable years beginning after January 1, 2018, taxpayers are subjected to the global intangible low-taxed income (“GILTI”) provisions. The GILTI provisions require the Company to currently recognize in U.S. taxable income a deemed dividend inclusion of foreign subsidiary earnings in excess of an allowable return on the foreign subsidiary’s tangible assets. During the years ended December 31, 2019 and 2018, the Company recorded an income tax charge of $0.9 million and $4.4 million, respectively related to GILTI. The Company has made an accounting policy election, as allowed by the SEC and FASB, to recognize the impacts of GILTI within the period incurred. Therefore, no U.S. deferred taxes are provided on GILTI inclusions of future foreign subsidiary earnings. |
Comprehensive (Loss) Income | Comprehensive (Loss) Income Comprehensive (loss) income includes net (loss) income as well as other changes in stockholders’ equity (deficit) that result from transactions and economic events other than those with stockholders. Comprehensive (loss) income for the periods presented consists of net income and the change in the cumulative foreign currency translation adjustment. |
Net (Loss) Income per Share | Net (Loss) Income per Share The Company follows the two-class method when computing net (loss) income per share as the Company has issued shares that meet the definition of participating securities. The two-class method determines net (loss) income per share for each class of common and participating securities according to dividends declared or accumulated and participation rights in undistributed earnings. The two-class method requires income available to common stockholders for the period to be allocated between common and participating securities based upon their respective rights to receive dividends as if all income for the period had been distributed. Basic net (loss) income per share attributable to common stockholders is computed by dividing the net (loss) income attributable to common stockholders by the weighted-average number of shares of common stock outstanding for the period. Diluted net (loss) income attributable to common stockholders is computed by adjusting net (loss) income attributable to common stockholders to reallocate undistributed earnings based on the potential impact of dilutive securities. Diluted net (loss) income per share attributable to common stockholders is computed by dividing the diluted net (loss) income attributable to common stockholders by the weighted-average number of shares of common stock outstanding for the period, including potential dilutive common shares. For purpose of this calculation, outstanding stock-based awards and convertible preferred stock are considered potential dilutive common shares. |
Impact of Recently Adopted and Issued Accounting Standards | Impact of Recently Adopted Accounting Standards In May 2014, the FASB issued ASC 606, which supersedes existing revenue recognition guidance under GAAP. The core principle of this standard is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The Company adopted ASC 606 on January 1, 2019, using the modified retrospective method. Under this method of adoption, the Company recognized the cumulative effect of initially applying the new revenue standard as an adjustment to the opening balance of accumulated deficit. Comparative prior year periods were not adjusted. As a result of applying the modified retrospective method to adopt ASC 606, the following adjustments were made to the consolidated balance sheet as of January 1, 2019: December 31, 2018 January 1, 2019 As reported Adjustments As adjusted Assets: Accounts receivable $ 81,782 $ (153 ) $ 81,629 Inventory 50,997 (368 ) 50,629 Prepaid expenses and other current assets 3,755 209 3,964 Accounts receivable, net of current portion 2,388 (75 ) 2,313 Deferred tax assets 21,578 (592 ) 20,986 Other assets 3,293 128 3,421 Total assets $ 474,649 $ (851 ) $ 473,798 Liabilities: Accrued expenses and other current liabilities $ 36,992 $ 1,045 $ 38,037 Deferred revenue 31,206 (2,190 ) 29,016 Deferred revenue, net of current portion 12,479 (1,856 ) 10,623 Total liabilities 399,793 (3,001 ) 396,792 Stockholders’ equity: Accumulated deficit (81,008 ) 2,150 (78,858 ) Total stockholders’ equity 74,856 2,150 77,006 Total liabilities and stockholders’ equity $ 474,649 $ (851 ) $ 473,798 Upon adoption of ASC 606 on January 1, 2019, the Company recorded a decrease to accumulated deficit of $2,150 as a result of the transition. The impact of the adoption primarily relates to the cumulative effect of a $4,046 total decrease in deferred revenue and deferred revenue, net of current portion primarily related to a customer contract for which revenue was recognized based on receipt of cash payments under ASC 605 that would have been recognized upon product acceptance under ASC 606; a $1,045 increase in accrued expenses and other current liabilities related to partner commissions that were previously being recognized in the period in which cash was received and revenue was recognized, but would have been reflected as a cost to obtain a contract and expensed consistent with the pattern of revenue recognition on the contract; a $368 decrease in inventory related to the adjustment of deferred cost of goods sold on deferred revenue also adjusted as part of the adoption; a $337 total increase in prepaid expenses and other current assets and other assets for short term and long term capitalized contract costs on open contracts as of the adoption date; a $228 total decrease in accounts receivable and accounts receivable, net of current portion related to a contract with a significant financing component; and a $592 decrease in deferred tax assets related to the above items. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”), to address diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The standard is now effective for all entities and the Company has concluded that the adoption of ASU 2016-15 does not have an effect on its consolidated financial statements. In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfer of Assets Other than Inventory Impact of Recently Issued Accounting Standards In February 2016, the FASB issued ASU 2016-02, Leases Financial Instruments-Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates Codification Improvements to Topic 842: Leases Leases (Topic 842), Targeted Improvements Leases (Topic 842) – Narrow-Scope Improvements for Lessors In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments In November 2019, the FASB issued ASU 2019-10 to defer the effective dates of ASU 2016-13. This guidance is now effective for private companies, and emerging growth companies that choose to take advantage of the extended transition periods, for annual reporting periods beginning after December 15, 2020, and interim periods within fiscal years beginning after December 15, 2021. Additionally, in November 2018, the FASB issued ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments—Credit Losses (“ASU 2018-19”), which mitigates transition complexity by requiring that for nonpublic business entities the amendments in ASU 2016-13 are effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. The amendments in ASU 2018-19 also clarify that receivables arising from operating leases are not within the scope of Subtopic 326-20, but instead, should be accounted for in accordance with Topic 842, Leases. Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments n May 2019, the FASB issued update ASU 2019-05, Financial Instruments—Credit Losses (Topic 326): Targeted Transition Relief (“ASU 2019-05”), which provides an option to irrevocably elect the fair value option for certain financial assets previously measured at amortized cost basis. The Company In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging—Targeted Improvements to Accounting for Hedging Activities In June 2018, the FASB issued ASU 2018-07, Compensation – Stock Compensation (Topic 718) In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Reconciliation of Cash, Cash Equivalents and Restricted Cash in Accompanying Condensed Consolidated Balance Sheets | The following table is a reconciliation of cash, cash equivalents and restricted cash included in the accompanying consolidated balance sheets that sum to the total cash, cash equivalents and restricted cash included in the accompanying consolidated statements of cash flows. December 31, 2019 December 31, 2018 Cash and cash equivalents $ 113,638 $ 280,587 Restricted cash included in other assets 1,019 1,019 $ 114,657 $ 281,606 |
Schedule of Accounts Receivable | Accounts receivable as of December 31, 2019 and 2018 consisted of the following: December 31, 2019 2018 Current portion of accounts receivable, net: Accounts receivable, net $ 91,273 $ 79,526 Accounts receivable, extended payment arrangements 1,827 2,256 93,100 81,782 Accounts receivable, net of current portion: Accounts receivable, extended payment arrangements 575 2,388 $ 93,675 $ 84,170 |
Summary of Changes in Provision for Doubtful Accounts | A summary of changes in the provision for doubtful accounts for the years ended December 31, 2019, 2018 and 2017 is as follows: Year Ended December 31, 2019 2018 2017 Provision for doubtful accounts at beginning of year $ 410 $ 692 $ 690 Provisions and recoveries 560 — 6 Write-offs (950 ) (282 ) (4 ) Provision for doubtful accounts at end of year $ 20 $ 410 $ 692 |
Schedule of Estimated Useful Lives of Property and Equipment Assets | Estimated useful lives of the respective property and equipment assets are as follows: Estimated Useful Life Computers and purchased software 3 years Leasehold improvements Shorter of lease term or 7 years Furniture and fixtures 7 years Machinery and equipment 3 – 5 years Building 40 years Building improvements 5 – 40 years Trial systems at customers’ sites 2 years |
Schedule of Significant Customers Represent 10% or More of Revenue or Accounts Receivable | Significant customers are those that represent 10% or more of revenue or accounts receivable and are set forth in the following tables: Revenue Accounts Receivable, Net Year Ended December 31, December 31, 2019 2018 2017 2019 2018 Customer A 14 % 27 % 37 % 11 % 13 % Customer B * 11 % 11 % * 15 % Customer C * 12 % * 14 % 18 % Customer D * 14 % * * 28 % Customer E * * * 19 % * Customer F 12 % * * * * * Less than 10% of total |
Summary of Changes in Amount Reserved for Warranty Costs | A summary of changes in the amount reserved for warranty costs for the years ended December 31, 2019, 2018 and 2017 is as follows: Year Ended December 31, 2019 2018 2017 Warranty reserve at beginning of year $ 926 $ 1,246 $ 1,256 Provisions 3,603 1,886 1,829 Acquired warranty reserve 1,867 — — Charges (3,948 ) (2,206 ) (1,839 ) Warranty reserve at end of year $ 2,448 $ 926 $ 1,246 |
Impact of New Accounting Standards ASC 606 on Financial Statements | In accordance with the modified retrospective method transition requirements, the Company has presented the financial statement line items impacted and adjusted to compare to presentation under ASC Topic 605, Revenue Recognition As of December 31, 2019 Balance Sheet As Reported under ASC 606 Adjustments Without adoption of ASC 606 Assets: Accounts receivable $ 93,100 $ 47 $ 93,147 Inventory 93,604 186 93,790 Prepaid expenses and other current assets 4,884 54 4,938 Prepaid income taxes 3,217 330 3,547 Accounts receivable, net of current portion 575 23 598 Deferred tax assets 69 1,757 1,826 Other assets 7,820 (69 ) 7,751 Total assets $ 444,312 $ 2,328 $ 446,640 Liabilities: Accrued expenses and other current liabilities $ 34,567 $ (491 ) $ 34,076 Deferred revenue 25,485 8,194 33,679 Deferred revenue, net of current portion 4,583 1,856 6,439 Total liabilities 405,748 9,559 415,307 Stockholders’ Equity: Accumulated deficit (127,064 ) (7,231 ) (134,295 ) Total stockholders’ equity 38,564 (7,231 ) 31,333 Total liabilities and stockholders’ equity $ 444,312 $ 2,328 $ 446,640 Total reported liabilities under ASC 606 as of December 31, 2019 were $9,559 less than the total liabilities without the adoption of ASC 606 primarily driven by the adjustment of deferred revenue related to a customer contract for which revenue was recognized based on receipt of cash payments under ASC 605 that would have been recognized upon product acceptance under ASC 606, offset by an increase in accrued partner commissions in accrued expenses and other current liabilities. These partner commissions were previously being recognized in the period in which cash was received and revenue was recognized. Upon the adoption of ASC 606, partner commissions are reflected as a cost to obtain a contract and they are expensed consistent with the pattern of revenue recognition on this contract. Year Ended December 31, 2019 Statement of Operations and Comprehensive (Loss) Income As Reported under ASC 606 Adjustments Without adoption of ASC 606 Revenue: Product $ 241,377 $ (6,201 ) $ 235,176 Service 40,920 197 41,117 Total revenue 282,297 (6,004 ) 276,293 Cost of revenue: Product 113,059 182 113,241 Gross profit 162,532 (6,186 ) 156,346 Operating expenses: Selling, general and administrative 88,320 231 88,551 Loss from operations (9,119 ) (6,417 ) (15,536 ) Other income (expense): Interest income 4,406 (159 ) 4,247 Loss before provision for (benefit from) income taxes (24,415 ) (6,576 ) (30,991 ) Provision for (benefit from) income taxes 23,791 (1,495 ) 22,296 Net loss (48,206 ) (5,081 ) (53,287 ) Comprehensive loss $ (49,270 ) $ (5,081 ) $ (54,351 ) Net loss per share attributable to common stockholders: Basic $ (0.57 ) $ (0.07 ) $ (0.64 ) Diluted $ (0.57 ) $ (0.07 ) $ (0.64 ) Year Ended December 31, 2019 Statement of Cash Flows As Reported under ASC 606 Adjustments Without adoption of ASC 606 Cash flows used in operating activities: Net loss $ (48,206 ) $ (5,081 ) $ (53,287 ) Deferred income taxes 19,641 (1,166 ) 18,475 Changes in operating assets and liabilities: Accounts receivable 1,881 159 2,040 Inventory (21,276 ) 182 (21,094 ) Prepaid expenses and other assets (3,679 ) (322 ) (4,001 ) Prepaid income taxes 16 (330 ) (314 ) Accrued expenses and other current liabilities (7,827 ) 554 (7,273 ) Deferred revenue (9,498 ) 6,004 (3,494 ) Net cash used in operating activities $ (39,022 ) $ — $ (39,022 ) As a result of applying the modified retrospective method to adopt ASC 606, the following adjustments were made to the consolidated balance sheet as of January 1, 2019: December 31, 2018 January 1, 2019 As reported Adjustments As adjusted Assets: Accounts receivable $ 81,782 $ (153 ) $ 81,629 Inventory 50,997 (368 ) 50,629 Prepaid expenses and other current assets 3,755 209 3,964 Accounts receivable, net of current portion 2,388 (75 ) 2,313 Deferred tax assets 21,578 (592 ) 20,986 Other assets 3,293 128 3,421 Total assets $ 474,649 $ (851 ) $ 473,798 Liabilities: Accrued expenses and other current liabilities $ 36,992 $ 1,045 $ 38,037 Deferred revenue 31,206 (2,190 ) 29,016 Deferred revenue, net of current portion 12,479 (1,856 ) 10,623 Total liabilities 399,793 (3,001 ) 396,792 Stockholders’ equity: Accumulated deficit (81,008 ) 2,150 (78,858 ) Total stockholders’ equity 74,856 2,150 77,006 Total liabilities and stockholders’ equity $ 474,649 $ (851 ) $ 473,798 |
Business Acquisition (Tables)
Business Acquisition (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Schedule of Preliminarily Purchase Price and Valuation, Allocation of Total Purchase Price | Based upon the purchase price and the valuation, the allocation of the total purchase price is as follows: Preliminary Purchase Price Allocation Assets acquired Fair value of tangible assets: Accounts receivable $ 18,142 Inventory 24,138 Prepaid expenses and other current assets 2,240 Property, plant and equipment 8,010 Deferred tax assets 365 Other assets 13 Goodwill 50,347 Identifiable intangible assets 44,000 Total assets acquired $ 147,255 Liabilities assumed Accounts payable $ (9,719 ) Accrued expenses (13,178 ) Accrued income taxes (140 ) Deferred tax liabilities (10,791 ) Current portion of long-term debt (3,507 ) Other liabilities (489 ) Total liabilities assumed $ (37,824 ) Net assets acquired $ 109,431 |
Schedule of Preliminary Purchase Price and Estimated Useful Lives Associated with Certain Assets | The preliminary allocation of the purchase price and the estimated useful lives associated with certain assets is as follows : Amount Estimated Useful Life Net tangible assets $ 15,084 — Identifiable intangible assets: Developed technology 25,000 7 years Customer relationships 18,000 10 years Trade name 1,000 3 years Goodwill 50,347 — Total purchase price $ 109,431 |
Schedule of Intangible Assets in Consolidated Balance Sheet | Intangible assets recorded in the consolidated balance sheet at December 31, 2019 consists of the following: Gross Carrying Amount Accumulated Amortization Net Carrying Amount Developed technology 25,000 (1,786 ) 23,214 Customer relationships 18,000 (900 ) 17,100 Trade name 1,000 (166 ) 834 $ 44,000 $ (2,852 ) $ 41,148 |
Schedule of Estimated Amortization Expense For Intangible Assets | Estimated amortization expense for intangible assets is summarized as follows: Year Ending December 31, 2020 $ 5,704 2021 5,704 2022 5,542 2023 5,372 2024 5,372 Thereafter 13,454 $ 41,148 |
Schedule of Unaudited Pro Forma Results | The unaudited pro forma combined results of the Company and NetComm are as follows: Year Ended December 31, 2019 2018 2017 Net revenue $ 375,306 $ 436,791 $ 465,786 Net (loss) income (47,898 ) 68,808 76,432 |
Inventory (Tables)
Inventory (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventory as of December 31, 2019 and 2018 consisted of the following: December 31, 2019 2018 Raw materials $ 24,000 $ 6,524 Work in process 17 571 Finished goods: Manufactured finished goods 70,923 45,594 Deferred inventory costs 4,263 1,073 99,203 53,762 Valuation adjustment for excess and obsolete inventory (5,599 ) (2,765 ) $ 93,604 $ 50,997 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property Plant And Equipment [Abstract] | |
Summary of Components of Property and Equipment | Property and equipment as of December 31, 2019 and 2018 consisted of the following: December 31, 2019 2018 Computers and purchased software $ 22,294 $ 15,706 Leasehold improvements 4,380 1,340 Furniture and fixtures 2,794 1,949 Machinery and equipment 40,002 21,979 Land 3,091 3,091 Building 4,765 4,765 Building improvements 6,776 5,245 Trial systems at customers’ sites 6,039 7,116 90,141 61,191 Less: Accumulated depreciation and amortization (54,231 ) (31,312 ) $ 35,910 $ 29,879 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Payables And Accruals [Abstract] | |
Schedule of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities as of December 31, 2019 and 2018 consisted of the following: December 31, 2019 2018 Accrued compensation and related taxes $ 18,540 $ 18,301 Accrued warranty (see Note 2) 2,448 926 Dividends and equitable adjustments payable (see Note 11) 750 3,336 Accrued customer incentives 233 5,368 Other accrued expenses 12,596 9,061 $ 34,567 $ 36,992 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Assets and Liabilities | The following tables present information about the fair value of the Company’s financial assets and liabilities as of December 31, 2019 and 2018 and indicate the level of the fair value hierarchy utilized to determine such fair values: Fair Value Measurements as of December 31, 2019 Using: Level 1 Level 2 Level 3 Total Assets: Certificates of deposit $ — $ 10,933 $ — $ 10,933 Certificates of deposit—restricted cash — 1,019 — 1,019 Money market mutual funds 53,763 — — 53,763 Foreign currency forward contracts — 23 — 23 $ 53,763 $ 11,975 $ — $ 65,738 Liabilities: SARs $ — $ — $ 264 $ 264 Foreign currency forward contracts — 50 — 50 $ — $ 50 $ 264 $ 314 Fair Value Measurements as of December 31, 2018 Using: Level 1 Level 2 Level 3 Total Assets: Certificates of deposit $ — $ 19,873 $ — $ 19,873 Certificates of deposit—restricted cash — 1,019 — 1,019 Money market mutual funds 252,963 — — 252,963 Foreign currency forward contracts — 254 — 254 $ 252,963 $ 21,146 $ — $ 274,109 Liabilities: SARs $ — $ — $ 1,387 $ 1,387 Foreign currency forward contracts — 252 — 252 $ — $ 252 $ 1,387 $ 1,639 |
Summary of Changes in Fair Values of SARs Liability | The following table provides a summary of changes in the fair values of the Company’s SARs liability, for which fair value is determined by Level 3 inputs: Year Ended December 31, 2019 2018 2017 Fair value at beginning of the year $ 1,387 $ 2,155 $ 1,195 Change in fair value (1,123 ) (768 ) 960 Exercises — — — Fair value at end of year $ 264 $ 1,387 $ 2,155 |
Summary of Company's Cash and Cash Equivalents | The Company’s cash, cash equivalents and restricted cash as of December 31, 2019 and 2018 consisted of the following: December 31, 2019 2018 Cash $ 48,942 $ 7,751 Cash equivalents and restricted cash: Certificates of deposit 10,933 19,873 Certificates of deposit—restricted cash 1,019 1,019 Money market mutual funds 53,763 252,963 Total cash equivalents and restricted cash 65,715 273,855 Total cash, cash equivalents and restricted cash $ 114,657 $ 281,606 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Before Provision for (Benefit from) Income Taxes | Income before the provision for (benefit from) income taxes for the years ended December 31, 2019, 2018 and 2017 consisted of the following: Year Ended December 31, 2019 2018 2017 United States $ (40,055 ) $ 10,527 $ 77,410 Foreign 15,640 55,411 45,408 $ (24,415 ) $ 65,938 $ 122,818 |
Schedule of Provision for (Benefit from) Income Taxes | The provision for (benefit from) income taxes for the years ended December 31, 2019, 2018 and 2017 consisted of the following: Year Ended December 31, 2019 2018 2017 Current income tax provision: Federal $ 4,698 $ (3,457 ) $ 17,498 State (121 ) (181 ) 589 Foreign (427 ) 8,087 4,809 Total current income tax provision 4,150 4,449 22,896 Deferred income tax provision (benefit): Federal 18,387 (10,699 ) 12,468 State 5,100 (1,108 ) (1,024 ) Foreign (3,846 ) 290 (22 ) Total deferred income tax (benefit) provision 19,641 (11,517 ) 11,422 Total income tax (benefit) provision $ 23,791 $ (7,068 ) $ 34,318 |
Schedule of Reconciliation of U.S. Federal Statutory Rate to Effective Income Tax Rate | A reconciliation of the U.S. federal statutory rate to the Company’s effective income tax rate for the years ended December 31, 2019, 2018 and 2017 is as follows: Year Ended December 31, 2019 2018 2017 Federal statutory income tax rate 21.0 % 21.0 % 35.0 % State taxes, net of federal tax benefit 9.8 (0.8 ) 0.6 Research and development tax credits 10.3 (15.6 ) (3.5 ) Permanent differences (1.6 ) 1.1 0.5 Domestic manufacturing deduction — — (0.9 ) Foreign tax rate differential 10.2 (6.6 ) (7.0 ) Equitable adjustment payments 1.7 (1.8 ) (6.0 ) Excess tax benefit from stock-based transactions 3.3 (25.2 ) (1.6 ) Foreign taxes withheld (9.6 ) 3.3 — Impact of deferred tax rate decrease under TCJA — — 3.3 TCJA one-time deemed repatriation of accumulated earnings of foreign subsidiaries — — 7.1 Global intangible low-taxed income (4.1 ) 6.7 — Withholding tax on repatriation of accumulated earnings of foreign subsidiaries (0.1 ) 0.1 1.1 Valuation allowance on deferred tax assets (144.2 ) 6.0 — Other, net 2.3 1.1 — Foreign derived intangible income 3.9 — — Research and development costs (4.3 ) — — Provision to return 11.1 — — Uncertain tax positions (7.1 ) — (0.7 ) Effective income tax rate (97.4 )% (10.7 )% 27.9 % |
Schedule of Income Tax Effect of Each Type of Temporary Difference and Carryforward | The income tax effect of each type of temporary difference and carryforward as of December 31, 2019 and 2018 was as follows: December 31, 2019 2018 Deferred tax assets: Stock compensation $ 3,827 $ 2,689 Tax credit carryforwards 9,900 7,599 Capitalized research and development costs 21,376 12,157 Inventory valuation 1,756 698 Accrued liabilities and reserves 5,207 2,473 Deferred revenue 1,520 3,147 Interest expense 2,149 480 Intellectual property rights 999 — Other 544 452 Total deferred tax assets 47,278 29,695 Valuation Allowance (39,124 ) (3,926 ) Deferred tax assets, net of valuation allowance 8,154 25,769 Deferred tax liabilities: Depreciation (1,159 ) (1,266 ) Amortization (12,727 ) — Deferred costs — (134 ) Withholding tax on unremitted earnings (2,604 ) (2,572 ) Prepaid expenses (588 ) (219 ) Total deferred tax liabilities (17,078 ) (4,191 ) Net deferred tax assets $ (8,924 ) $ 21,578 |
Schedule of Changes in Balance of Gross Uncertain Tax Positions | The aggregate changes in the balance of gross uncertain tax positions, which excludes interest and penalties, for the years ended December 31, 2019, 2018 and 2017 were as follows: Balance at January 1, 2017 $ 318 Settlement/decreases related to tax positions taken during prior years — Increases related to tax positions taken during prior years — Increases related to tax positions taken during the current year 1,377 Balance at December 31, 2017 1,695 Settlement/decreases related to tax positions taken during prior years — Increases related to tax positions taken during prior years 241 Increases related to tax positions taken during the current year 810 Balance at December 31, 2018 2,746 Settlement/decreases related to tax positions taken during prior years (49 ) Increases related to tax positions taken during prior years 18,434 Increases related to tax positions taken during the current year 364 Balance at December 31, 2019 $ 21,495 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Aggregate Principal Amount of Debt Outstanding | The aggregate principal amount of debt outstanding as of December 31, 2019 and 2018 consisted of the following: December 31, 2019 2018 Term loans $ 291,000 $ 294,000 Mortgage loan 6,644 6,958 Total principal amount of debt outstanding $ 297,644 $ 300,958 |
Schedule of Current and Non-Current Debt Obligations | Current and non-current debt obligations reflected in the consolidated balance sheets as of December 31, 2019 and 2018 consisted of the following: December 31, 2019 2018 Current liabilities: Term loans $ 3,000 $ 3,000 Mortgage loan 6,644 314 Current portion of principal payment obligations 9,644 3,314 Unamortized debt issuance costs, current portion (1,120 ) (1,135 ) Current portion of long-term debt, net of unamortized debt issuance costs $ 8,524 $ 2,179 Non-current liabilities: Term loans $ 288,000 $ 291,000 Mortgage loan — 6,644 Non-current portion of principal payment obligations 288,000 297,644 Unamortized debt issuance costs, non-current portion (3,244 ) (4,364 ) Long-term debt, net of current portion and unamortized debt issuance costs $ 284,756 $ 293,280 |
Schedule of Aggregate Minimum Future Principal Payments of Debt | As of December 31, 2019, aggregate minimum future principal payments of the Company’s debt are summarized as follows: Year Ending December 31, 2020 $ 9,644 2021 3,000 2022 3,000 2023 3,000 2024 279,000 Thereafter - $ 297,644 |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Assumptions Used in Black-Scholes Option Pricing Model | The assumptions used in the Black-Scholes option-pricing model were as follows: Year Ended December 31, 2019 2018 2017 Risk-free interest rate 1.6%-2.5% 2.7%–3.0% 2.0%–2.2% Expected term (in years) 6.1-6.2 6.0–6.2 6.0–6.2 Expected volatility 28.8%–30.6% 30.6%–32.6% 33.0%–38.5% Expected dividend yield 0.0% 0.0% 0.0% |
Summary of Option Activity | A summary of option activity under the 2003 Plan, the 2011 Plan and the 2017 Plan for the year ended December 31, 2019 is as follows: Number of Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term Aggregate Intrinsic Value (in years) Outstanding at January 1, 2019 9,566 $ 7.29 6.35 $ 61,561 Granted 213 6.52 Exercised (1,129 ) 2.38 Forfeited (400 ) 11.69 Outstanding at December 31, 2019 8,250 $ 7.73 5.65 $ 4,235 Options exercisable at December 31, 2019 6,983 $ 6.65 5.22 $ 4,218 Vested or expected to vest at December 31, 2019 8,186 $ 7.69 5.63 $ 4,233 |
Summary of RSU Activity | A summary of RSU activity under the 2011 Plan and the 2017 Plan for the year ended December 31, 2019 is as follows: Number of Shares Weighted- Average Grant Date Fair Value Aggregate Fair Value Unvested balance at January 1, 2019 759 $ 13.40 Granted 1,389 10.08 Vested (320 ) 10.67 $ 3,659 Forfeited (175 ) 10.92 Unvested balance at December 31, 2019 1,653 $ 11.38 |
Schedule of Stock-based Compensation Expense | Stock-based compensation expense related to stock options, RSUs and SARs for the years ended December 31, 2019, 2018 and 2017 was classified in the consolidated statements of operations and comprehensive (loss) income as follows: Year Ended December 31, 2019 2018 2017 Cost of revenue $ 216 $ 249 $ 306 Research and development expenses 1,569 1,864 2,864 Selling, general and administrative 8,036 6,781 5,966 $ 9,821 $ 8,894 $ 9,136 |
Net (Loss) Income per Share (Ta
Net (Loss) Income per Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Net (Loss) Income Per Share Attributable to Common Stockholders | Basic and diluted net (loss) income per share attributable to common stockholders was calculated as follows: Year Ended December 31, 2019 2018 2017 Numerator: Net (loss) income $ (48,206 ) $ 73,006 $ 88,500 Cumulative dividends on convertible preferred stock — — (5,674 ) Dividends declared on convertible preferred stock — — (70,977 ) Net (loss) income attributable to common stockholders, basic and diluted $ (48,206 ) $ 73,006 $ 11,849 Denominator: Weighted-average shares used to compute net (loss) income per share attributable to common stockholders, basic 83,853 83,539 35,359 Dilutive effect of stock options — 8,086 9,141 Dilutive effect of restricted stock units — 252 472 Weighted-average shares used to compute net (loss) income per share attributable to common stockholders, diluted 83,853 91,877 44,972 Net (loss) income per share attributable to common stockholders: Basic $ (0.57 ) $ 0.87 $ 0.34 Diluted $ (0.57 ) $ 0.79 $ 0.26 |
Schedule of Potential Common Shares Excluded from the Computation of Diluted Net (Loss) Income Per Share Attributable to Common Stockholders | The following potential common shares, presented based on amounts outstanding at each period end, were excluded from the computation of diluted net (loss) income per share attributable to common stockholders for the periods presented because including them would have been anti-dilutive: Year Ended December 31, 2019 2018 2017 Options to purchase common stock 4,641 2,213 2,281 Unvested restricted stock units 1,516 168 35 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Summary of Revenue Based on Customer's Location Determined by Customer's Shipping Address | The following table summarizes the Company’s revenue based on the customer’s location, as determined by the customer’s shipping address: Year Ended December 31, 2019 2018 2017 North America: United States $ 103,451 $ 104,124 $ 143,540 Canada 36,466 41,884 58,316 Total North America 139,917 146,008 201,856 Latin America 24,043 32,283 40,347 Europe, Middle East and Africa: Germany 13,773 45,864 13,396 Other 24,381 35,479 48,062 Total Europe, Middle East and Africa 38,154 81,343 61,458 Asia-Pacific Australia 42,218 24,354 18,348 Other 37,965 13,139 29,566 Total Asia-Pacific 80,183 37,493 47,914 Total revenue (1) $ 282,297 $ 297,127 $ 351,575 (1) Other than the United States, Canada, Germany and Australia, no individual countries represented 10% or more of the Company’s total revenue for any of the periods presented. |
Schedule of Property and Equipment, Net by Location | The Company’s property and equipment, net by location was as follows: December 31, 2019 2018 United States $ 25,583 $ 25,088 China 3,277 2,623 Australia 4,041 — Other 3,009 2,168 Total property and equipment, net $ 35,910 $ 29,879 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Lease Payments under Non-cancelable Operating Leases | Future minimum lease payments under non-cancelable operating leases as of December 31, 2019 were as follows: Year Ending December 31, 2020 $ 2,723 2021 1,488 2022 114 2023 5 2024 — Thereafter — $ 4,330 |
Selected Quarterly Financial _2
Selected Quarterly Financial Information (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Selected Quarterly Financial Information [Abstract] | |
Schedule of Unaudited Quarterly Consolidated Statements of (Loss) Income | The following tables set forth selected unaudited quarterly consolidated statements of (loss) income data for each of the quarters in the years ended December 31, 2019 and 2018: Three Months Ended Dec. 31, 2019 Sept. 30, 2019 June 30, 2019 Mar. 31, 2019 Dec. 31, 2018 Sept. 30, 2018 June 30, 2018 Mar. 31, 2018 (in thousands) Revenue: Product $ 101,182 $ 71,319 $ 42,223 $ 26,653 $ 57,446 $ 60,817 $ 58,537 $ 80,189 Service 11,712 10,497 9,878 8,833 10,379 10,689 10,185 8,885 Total revenue 112,894 81,816 52,101 35,486 67,825 71,506 68,722 89,074 Cost of revenue: Product 52,076 40,578 10,976 9,429 16,738 13,272 18,560 25,780 Services 1,302 2,024 1,820 1,560 1,408 1,303 761 1,339 Total cost of revenue 53,378 42,602 12,796 10,989 18,146 14,575 19,321 27,119 Gross profit 59,516 39,214 39,305 24,497 49,679 56,931 49,401 61,955 Operating expenses: Research and development 22,508 24,158 18,260 18,405 17,345 16,403 16,696 20,530 Selling, general and administrative 27,002 23,823 17,302 20,193 15,502 17,905 16,163 18,456 Total operating expenses 49,510 47,981 35,562 38,598 32,847 34,308 32,859 38,986 Income (loss) from operations 10,006 (8,767 ) 3,743 (14,101 ) 16,832 22,623 16,542 22,969 Other income (expense), net (3,535 ) (5,343 ) (3,010 ) (3,408 ) (3,578 ) (2,731 ) (3,319 ) (3,400 ) Income (loss) before provision for (benefit from) income taxes 6,471 (14,110 ) 733 (17,509 ) 13,254 19,892 13,223 19,569 Provision for (benefit from) income taxes 32,131 (5,612 ) (558 ) (2,170 ) (1,662 ) 995 (8,194 ) 1,793 Net (loss) income $ (25,660 ) $ (8,498 ) $ 1,291 $ (15,339 ) $ 14,916 $ 18,897 $ 21,417 $ 17,776 Net (loss) income per share attributable to common stockholders: Basic $ (0.31 ) $ (0.10 ) $ 0.02 $ (0.18 ) $ 0.18 $ 0.22 $ 0.26 $ 0.22 Diluted $ (0.31 ) $ (0.10 ) $ 0.01 $ (0.18 ) $ 0.17 $ 0.21 $ 0.23 $ 0.19 |
Nature of Business and Basis _2
Nature of Business and Basis of Presentation - Additional Information (Details) | Jul. 01, 2019USD ($) | Jul. 01, 2019AUD ($) | Apr. 30, 2018USD ($)$ / sharesshares | Dec. 19, 2017USD ($)$ / sharesshares | Dec. 31, 2019 | Dec. 31, 2017shares |
Nature Of Business And Basis Of Presentation [Line Items] | ||||||
Initial public offering of common stock | shares | 6,900,000 | |||||
Common stock offering price per share | $ / shares | $ 13 | |||||
Additional shares of common stock | shares | 900,000 | |||||
Net proceeds after deducting underwriting discounts | $ 79,327,000 | |||||
Underwriting discounts and commission amount | 6,279,000 | |||||
Offering costs | $ 4,094,000 | |||||
Convertible outstanding preferred stock | shares | 4,038,000 | |||||
Aggregate shares of common stock | shares | 40,382,000 | 40,382,000 | ||||
Temporary equity to additional paid-in capital | $ 97,439,000 | |||||
Temporary equity to common stock | $ 40,000 | |||||
NetComm | ||||||
Nature Of Business And Basis Of Presentation [Line Items] | ||||||
Business combination acquisition of equity interests percentage | 100.00% | 100.00% | ||||
Cash consideration | $ 112,674,000 | $ 161,963,000 | ||||
Exchange rate | 0.700 | 0.700 | ||||
Follow-on Offering | ||||||
Nature Of Business And Basis Of Presentation [Line Items] | ||||||
Initial public offering of common stock | shares | 0 | |||||
Net proceeds after deducting underwriting discounts | $ 0 | |||||
Offering costs | $ 41,000 | |||||
Number of shares sold by selling stockholders | shares | 7,350,000 | |||||
Sale of stock, price per share | $ / shares | $ 25 | |||||
Profit after offering cost amount disgorged by selling shareholders in connection with sale of shares | $ 3,770,000 | |||||
Transaction costs incurred on behalf of selling stockholders | 856,000 | |||||
Follow-on Offering | Selling, General and Administrative Expenses | ||||||
Nature Of Business And Basis Of Presentation [Line Items] | ||||||
Transaction costs incurred on behalf of selling stockholders | $ 815,000 | |||||
Convertible Preferred Stock [Member] | ||||||
Nature Of Business And Basis Of Presentation [Line Items] | ||||||
Conversion of preferred stock, description | ten-for-one |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2019 | |
Significant Accounting Policies [Line Items] | ||||||||||||
Restricted cash | $ 1,019,000 | $ 1,019,000 | $ 1,019,000 | $ 1,019,000 | ||||||||
Restricted Cash and Cash Equivalents, Noncurrent, Asset, Statement of Financial Position [Extensible List] | us-gaap:OtherAssetsNoncurrent | us-gaap:OtherAssetsNoncurrent | us-gaap:OtherAssetsNoncurrent | us-gaap:OtherAssetsNoncurrent | ||||||||
Write off of uncollectible receivables | $ 950,000 | $ 282,000 | $ 4,000 | |||||||||
Deferred offering costs paid | $ 0 | 1,148,000 | 2,384,000 | |||||||||
Percentage of fair value of reporting unit | 50.00% | 50.00% | ||||||||||
Intangible assets amortization method | straight-line method | |||||||||||
Standard product warranty description | The Company’s products are covered by a warranty for software and hardware for periods ranging from 90 days to one year. | |||||||||||
Extended product warranty description | The Company offers an extended warranty for periods typically of one to three years for agreed-upon fees. | |||||||||||
Short-term capitalized contract costs included in prepaid assets and other current assets | $ 585,000 | $ 585,000 | $ 209,000 | |||||||||
Long-term capitalized contract costs included in included in other assets | 70,000 | 70,000 | 128,000 | |||||||||
Amortization of capitalized contract costs recorded to selling, general and administrative expenses | 695,000 | |||||||||||
Contract assets included in prepaid expenses and other current assets | 50,000 | 50,000 | 28,000 | |||||||||
Revenue remaining performance obligation amount | 30,068,000 | 30,068,000 | ||||||||||
Assets | 444,312,000 | $ 474,649,000 | 444,312,000 | 474,649,000 | ||||||||
Liabilities | 405,748,000 | 399,793,000 | 405,748,000 | 399,793,000 | ||||||||
Foreign currency transaction gains (losses) | 298,000 | (911,000) | $ 886,000 | |||||||||
Valuation allowance | 39,124,000 | 3,926,000 | 39,124,000 | $ 3,926,000 | ||||||||
Deferred tax asset valuation allowance increase (decrease) | 35,198,000 | $ 35,198,000 | ||||||||||
U.S. corporate income tax rate | 21.00% | 21.00% | 35.00% | |||||||||
Dividend deduction for future tax-free repatriation of earnings by foreign subsidiaries | 100.00% | |||||||||||
Income tax charge | 32,131,000 | $ (5,612,000) | $ (558,000) | $ (2,170,000) | (1,662,000) | $ 995,000 | $ (8,194,000) | $ 1,793,000 | $ 23,791,000 | $ (7,068,000) | $ 34,318,000 | |
Accumulated deficit | (127,064,000) | (81,008,000) | (127,064,000) | (81,008,000) | ||||||||
Accrued expenses and other current liabilities | 34,567,000 | 36,992,000 | 34,567,000 | 36,992,000 | ||||||||
Inventory | 93,604,000 | 50,997,000 | 93,604,000 | 50,997,000 | ||||||||
Accounts receivable, net | 93,675,000 | 84,170,000 | 93,675,000 | 84,170,000 | ||||||||
Deferred tax assets | 69,000 | 21,578,000 | 69,000 | 21,578,000 | ||||||||
Global Intangible Low Taxed Income | ||||||||||||
Significant Accounting Policies [Line Items] | ||||||||||||
Income tax charge | 900,000 | 4,400,000 | ||||||||||
Accounting Standards Update 2014-09 | ||||||||||||
Significant Accounting Policies [Line Items] | ||||||||||||
Assets | 473,798,000 | |||||||||||
Liabilities | 396,792,000 | |||||||||||
Accumulated deficit | (78,858,000) | |||||||||||
Accrued expenses and other current liabilities | 38,037,000 | |||||||||||
Inventory | 50,629,000 | |||||||||||
Deferred tax assets | 20,986,000 | |||||||||||
Accounting Standards Update 2014-09 | Adjustments | ||||||||||||
Significant Accounting Policies [Line Items] | ||||||||||||
Assets | 2,328,000 | 2,328,000 | (851,000) | |||||||||
Liabilities | 9,559,000 | 9,559,000 | (3,001,000) | |||||||||
Income tax charge | (1,495,000) | |||||||||||
Accumulated deficit | (7,231,000) | (7,231,000) | 2,150,000 | |||||||||
Deferred revenue, net | (4,046,000) | |||||||||||
Accrued expenses and other current liabilities | (491,000) | (491,000) | 1,045,000 | |||||||||
Inventory | 186,000 | 186,000 | (368,000) | |||||||||
Prepaid expenses and other current assets and other assets | 337,000 | |||||||||||
Accounts receivable, net | (228,000) | |||||||||||
Deferred tax assets | 1,757,000 | 1,757,000 | $ (592,000) | |||||||||
Deferred revenue | ||||||||||||
Significant Accounting Policies [Line Items] | ||||||||||||
Revenue | 22,273,000 | |||||||||||
Interest Income | ||||||||||||
Significant Accounting Policies [Line Items] | ||||||||||||
Other revenue | $ 160,000 | |||||||||||
Software | ||||||||||||
Significant Accounting Policies [Line Items] | ||||||||||||
Warranty period | 90 days | |||||||||||
Hardware | ||||||||||||
Significant Accounting Policies [Line Items] | ||||||||||||
Warranty period | 1 year | |||||||||||
IPO | ||||||||||||
Significant Accounting Policies [Line Items] | ||||||||||||
Deferred offering costs | 4,094,000 | |||||||||||
Deferred offering costs paid | 1,148,000 | 2,384,000 | ||||||||||
Trial Systems at Customers' Sites | ||||||||||||
Significant Accounting Policies [Line Items] | ||||||||||||
Property and equipment useful life | 2 years | |||||||||||
Accounts Receivable, Extended Payment Arrangements | ||||||||||||
Significant Accounting Policies [Line Items] | ||||||||||||
Reserve for credit losses | 0 | 0 | $ 0 | 0 | 0 | |||||||
Write off of uncollectible receivables | $ 0 | 0 | $ 0 | |||||||||
Minimum | ||||||||||||
Significant Accounting Policies [Line Items] | ||||||||||||
Extended payment period for certain customers and/or for certain transactions | 1 year | |||||||||||
Intangible assets, estimated useful lives | 3 years | |||||||||||
Product warranties period for software and hardware | 90 days | |||||||||||
Extended product warranty period for renewals of maintenance and support contracts | 1 year | |||||||||||
Maximum | ||||||||||||
Significant Accounting Policies [Line Items] | ||||||||||||
Extended payment period for certain customers and/or for certain transactions | 5 years | |||||||||||
Intangible assets, estimated useful lives | 10 years | |||||||||||
Product warranties period for software and hardware | 1 year | |||||||||||
Extended product warranty period for renewals of maintenance and support contracts | 3 years | |||||||||||
Maintenance and support services and professional services revenue, recognition period | 5 years | |||||||||||
Certificates of Deposit | ||||||||||||
Significant Accounting Policies [Line Items] | ||||||||||||
Restricted cash | $ 1,019,000 | $ 1,019,000 | $ 1,019,000 | $ 1,019,000 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Summary of Reconciliation of Cash, Cash Equivalents and Restricted Cash in Accompanying Condensed Consolidated Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | [1] | Dec. 31, 2016 | ||
Accounting Policies [Abstract] | |||||||
Cash and cash equivalents | $ 113,638 | $ 280,587 | |||||
Restricted cash included in other assets | $ 1,019 | $ 1,019 | |||||
Restricted Cash and Cash Equivalents, Noncurrent, Asset, Statement of Financial Position [Extensible List] | us-gaap:OtherAssetsNoncurrent | us-gaap:OtherAssetsNoncurrent | |||||
Cash and cash equivalents, restricted cash | $ 114,657 | [1] | $ 281,606 | [1] | $ 260,820 | $ 329,554 | |
[1] | See Note 2 of the accompanying notes for a reconciliation of the ending balance of cash, cash equivalents and restricted cash shown in these consolidated statements of cash flows. |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Schedule of Accounts Receivable (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Current portion of accounts receivable, net: | ||
Current portion of accounts receivable, net | $ 93,100 | $ 81,782 |
Accounts receivable, net of current portion: | ||
Accounts receivable, net of current portion | 575 | 2,388 |
Accounts receivable | 93,675 | 84,170 |
Accounts Receivable, Net | ||
Current portion of accounts receivable, net: | ||
Current portion of accounts receivable, net | 91,273 | 79,526 |
Accounts Receivable, Extended Payment Arrangements | ||
Current portion of accounts receivable, net: | ||
Current portion of accounts receivable, net | $ 1,827 | $ 2,256 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Summary of Changes in Provision for Doubtful Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accounting Policies [Abstract] | |||
Provision for doubtful accounts at beginning of year | $ 410 | $ 692 | $ 690 |
Provisions and recoveries | 560 | 6 | |
Write-offs | (950) | (282) | (4) |
Provision for doubtful accounts at end of year | $ 20 | $ 410 | $ 692 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Schedule of Estimated Useful Lives of Property and Equipment Assets (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Computers and Purchased Software | |
Property Plant And Equipment [Line Items] | |
Property and equipment useful life | 3 years |
Leasehold Improvements | |
Property Plant And Equipment [Line Items] | |
Property and equipment useful life | 7 years |
Property and equipment useful life | Shorter of lease term or 7 years |
Furniture and Fixtures | |
Property Plant And Equipment [Line Items] | |
Property and equipment useful life | 7 years |
Machinery and Equipment | Minimum | |
Property Plant And Equipment [Line Items] | |
Property and equipment useful life | 3 years |
Machinery and Equipment | Maximum | |
Property Plant And Equipment [Line Items] | |
Property and equipment useful life | 5 years |
Building | |
Property Plant And Equipment [Line Items] | |
Property and equipment useful life | 40 years |
Building Improvements | Minimum | |
Property Plant And Equipment [Line Items] | |
Property and equipment useful life | 5 years |
Building Improvements | Maximum | |
Property Plant And Equipment [Line Items] | |
Property and equipment useful life | 40 years |
Trial Systems at Customers' Sites | |
Property Plant And Equipment [Line Items] | |
Property and equipment useful life | 2 years |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Schedule of Significant Customers Represent 10% or More of Revenue or Accounts Receivable (Details) - Customer Concentration Risk | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenue | Customer A | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 14.00% | 27.00% | 37.00% |
Revenue | Customer B | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 11.00% | 11.00% | |
Revenue | Customer C | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 12.00% | ||
Revenue | Customer D | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 14.00% | ||
Revenue | Customer F | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 12.00% | ||
Accounts Receivable | Customer A | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 11.00% | 13.00% | |
Accounts Receivable | Customer B | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 15.00% | ||
Accounts Receivable | Customer C | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 14.00% | 18.00% | |
Accounts Receivable | Customer D | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 28.00% | ||
Accounts Receivable | Customer E | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 19.00% |
Summary of Significant Accou_10
Summary of Significant Accounting Policies - Summary of Changes in Amount Reserved for Warranty Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accounting Policies [Abstract] | |||
Warranty reserve at beginning of year | $ 926 | $ 1,246 | $ 1,256 |
Provisions | 3,603 | 1,886 | 1,829 |
Acquired warranty reserve | 1,867 | ||
Charges | (3,948) | (2,206) | (1,839) |
Warranty reserve at end of year | $ 2,448 | $ 926 | $ 1,246 |
Summary of Significant Accou_11
Summary of Significant Accounting Policies - Additional Information (Details1) | Dec. 31, 2019 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-01-01 | |
Significant Accounting Policies [Line Items] | |
Revenue remaining performance obligation, percentage | 85.00% |
Revenue, remaining performance obligation, expected timing of satisfaction period | 12 months |
Minimum | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2021-01-01 | |
Significant Accounting Policies [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction period | 2 years |
Maximum | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2021-01-01 | |
Significant Accounting Policies [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction period | 5 years |
Summary of Significant Accou_12
Summary of Significant Accounting Policies - Impact of New Accounting Standards ASC 606 on Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Assets | |||||
Accounts receivable | $ 93,100 | $ 81,782 | |||
Inventory | 93,604 | 50,997 | |||
Prepaid expenses and other current assets | 4,884 | 3,755 | |||
Prepaid income taxes | 3,217 | 390 | |||
Accounts receivable, net of current portion | 575 | 2,388 | |||
Deferred tax assets | 69 | 21,578 | |||
Other assets | 7,820 | 3,293 | |||
Total assets | 444,312 | 474,649 | |||
Liabilities: | |||||
Accrued expenses and other current liabilities | 34,567 | 36,992 | |||
Deferred revenue | 25,485 | 31,206 | |||
Deferred revenue, net of current portion | 4,583 | 12,479 | |||
Total liabilities | 405,748 | 399,793 | |||
Stockholders’ equity: | |||||
Accumulated deficit | (127,064) | (81,008) | |||
Total stockholders’ equity | 38,564 | 74,856 | $ 50,156 | $ (71,703) | |
Total liabilities and stockholders’ equity | 444,312 | $ 474,649 | |||
Accounting Standards Update 2014-09 | |||||
Assets | |||||
Accounts receivable | $ 81,629 | ||||
Inventory | 50,629 | ||||
Prepaid expenses and other current assets | 3,964 | ||||
Accounts receivable, net of current portion | 2,313 | ||||
Deferred tax assets | 20,986 | ||||
Other assets | 3,421 | ||||
Total assets | 473,798 | ||||
Liabilities: | |||||
Accrued expenses and other current liabilities | 38,037 | ||||
Deferred revenue | 29,016 | ||||
Deferred revenue, net of current portion | 10,623 | ||||
Total liabilities | 396,792 | ||||
Stockholders’ equity: | |||||
Accumulated deficit | (78,858) | ||||
Total stockholders’ equity | 77,006 | ||||
Total liabilities and stockholders’ equity | 473,798 | ||||
Accounting Standards Update 2014-09 | Adjustments | |||||
Assets | |||||
Accounts receivable | 47 | (153) | |||
Inventory | 186 | (368) | |||
Prepaid expenses and other current assets | 54 | 209 | |||
Prepaid income taxes | 330 | ||||
Accounts receivable, net of current portion | 23 | (75) | |||
Deferred tax assets | 1,757 | (592) | |||
Other assets | (69) | 128 | |||
Total assets | 2,328 | (851) | |||
Liabilities: | |||||
Accrued expenses and other current liabilities | (491) | 1,045 | |||
Deferred revenue | 8,194 | (2,190) | |||
Deferred revenue, net of current portion | 1,856 | (1,856) | |||
Total liabilities | 9,559 | (3,001) | |||
Stockholders’ equity: | |||||
Accumulated deficit | (7,231) | 2,150 | |||
Total stockholders’ equity | (7,231) | 2,150 | |||
Total liabilities and stockholders’ equity | 2,328 | $ (851) | |||
Accounting Standards Update 2014-09 | Without adoption of ASC 606 | |||||
Assets | |||||
Accounts receivable | 93,147 | ||||
Inventory | 93,790 | ||||
Prepaid expenses and other current assets | 4,938 | ||||
Prepaid income taxes | 3,547 | ||||
Accounts receivable, net of current portion | 598 | ||||
Deferred tax assets | 1,826 | ||||
Other assets | 7,751 | ||||
Total assets | 446,640 | ||||
Liabilities: | |||||
Accrued expenses and other current liabilities | 34,076 | ||||
Deferred revenue | 33,679 | ||||
Deferred revenue, net of current portion | 6,439 | ||||
Total liabilities | 415,307 | ||||
Stockholders’ equity: | |||||
Accumulated deficit | (134,295) | ||||
Total stockholders’ equity | 31,333 | ||||
Total liabilities and stockholders’ equity | $ 446,640 |
Summary of Significant Accou_13
Summary of Significant Accounting Policies - Impact of New Accounting Standards ASC 606 on Statement of Operations and Comprehensive Income (Loss) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenue: | |||||||||||
Total revenue | $ 112,894 | $ 81,816 | $ 52,101 | $ 35,486 | $ 67,825 | $ 71,506 | $ 68,722 | $ 89,074 | $ 282,297 | $ 297,127 | $ 351,575 |
Cost of revenue: | |||||||||||
Total cost of revenue | 53,378 | 42,602 | 12,796 | 10,989 | 18,146 | 14,575 | 19,321 | 27,119 | 119,765 | 79,161 | 93,511 |
Gross profit | 59,516 | 39,214 | 39,305 | 24,497 | 49,679 | 56,931 | 49,401 | 61,955 | 162,532 | 217,966 | 258,064 |
Operating expenses: | |||||||||||
Selling, general and administrative | 27,002 | 23,823 | 17,302 | 20,193 | 15,502 | 17,905 | 16,163 | 18,456 | 88,320 | 68,026 | 61,165 |
(Loss) income from operations | 10,006 | (8,767) | 3,743 | (14,101) | 16,832 | 22,623 | 16,542 | 22,969 | (9,119) | 78,966 | 136,222 |
Other income (expense): | |||||||||||
Interest income | 4,406 | 6,259 | 2,439 | ||||||||
(Loss) income before provision for (benefit from) income taxes | 6,471 | (14,110) | 733 | (17,509) | 13,254 | 19,892 | 13,223 | 19,569 | (24,415) | 65,938 | 122,818 |
Provision for (benefit from) income taxes | 32,131 | (5,612) | (558) | (2,170) | (1,662) | 995 | (8,194) | 1,793 | 23,791 | (7,068) | 34,318 |
Net (loss) income | $ (25,660) | $ (8,498) | $ 1,291 | $ (15,339) | $ 14,916 | $ 18,897 | $ 21,417 | $ 17,776 | (48,206) | 73,006 | 88,500 |
Comprehensive loss | $ (49,270) | $ 71,654 | $ 90,433 | ||||||||
Net (loss) income per share attributable to common stockholders: | |||||||||||
Basic | $ (0.31) | $ (0.10) | $ 0.02 | $ (0.18) | $ 0.18 | $ 0.22 | $ 0.26 | $ 0.22 | $ (0.57) | $ 0.87 | $ 0.34 |
Diluted | $ (0.31) | $ (0.10) | $ 0.01 | $ (0.18) | $ 0.17 | $ 0.21 | $ 0.23 | $ 0.19 | $ (0.57) | $ 0.79 | $ 0.26 |
Accounting Standards Update 2014-09 | Adjustments | |||||||||||
Revenue: | |||||||||||
Total revenue | $ (6,004) | ||||||||||
Cost of revenue: | |||||||||||
Gross profit | (6,186) | ||||||||||
Operating expenses: | |||||||||||
Selling, general and administrative | 231 | ||||||||||
(Loss) income from operations | (6,417) | ||||||||||
Other income (expense): | |||||||||||
Interest income | (159) | ||||||||||
(Loss) income before provision for (benefit from) income taxes | (6,576) | ||||||||||
Provision for (benefit from) income taxes | (1,495) | ||||||||||
Net (loss) income | (5,081) | ||||||||||
Comprehensive loss | $ (5,081) | ||||||||||
Net (loss) income per share attributable to common stockholders: | |||||||||||
Basic | $ (0.07) | ||||||||||
Diluted | $ (0.07) | ||||||||||
Accounting Standards Update 2014-09 | Without adoption of ASC 606 | |||||||||||
Revenue: | |||||||||||
Total revenue | $ 276,293 | ||||||||||
Cost of revenue: | |||||||||||
Gross profit | 156,346 | ||||||||||
Operating expenses: | |||||||||||
Selling, general and administrative | 88,551 | ||||||||||
(Loss) income from operations | (15,536) | ||||||||||
Other income (expense): | |||||||||||
Interest income | 4,247 | ||||||||||
(Loss) income before provision for (benefit from) income taxes | (30,991) | ||||||||||
Provision for (benefit from) income taxes | 22,296 | ||||||||||
Net (loss) income | (53,287) | ||||||||||
Comprehensive loss | $ (54,351) | ||||||||||
Net (loss) income per share attributable to common stockholders: | |||||||||||
Basic | $ (0.64) | ||||||||||
Diluted | $ (0.64) | ||||||||||
Product | |||||||||||
Revenue: | |||||||||||
Total revenue | $ 101,182 | $ 71,319 | $ 42,223 | $ 26,653 | $ 57,446 | $ 60,817 | $ 58,537 | $ 80,189 | $ 241,377 | $ 256,989 | $ 311,896 |
Cost of revenue: | |||||||||||
Total cost of revenue | 52,076 | 40,578 | 10,976 | 9,429 | 16,738 | 13,272 | 18,560 | 25,780 | 113,059 | 74,350 | 88,538 |
Product | Accounting Standards Update 2014-09 | Adjustments | |||||||||||
Revenue: | |||||||||||
Total revenue | (6,201) | ||||||||||
Cost of revenue: | |||||||||||
Total cost of revenue | 182 | ||||||||||
Product | Accounting Standards Update 2014-09 | Without adoption of ASC 606 | |||||||||||
Revenue: | |||||||||||
Total revenue | 235,176 | ||||||||||
Cost of revenue: | |||||||||||
Total cost of revenue | 113,241 | ||||||||||
Service | |||||||||||
Revenue: | |||||||||||
Total revenue | 11,712 | 10,497 | 9,878 | 8,833 | 10,379 | 10,689 | 10,185 | 8,885 | 40,920 | 40,138 | 39,679 |
Cost of revenue: | |||||||||||
Total cost of revenue | $ 1,302 | $ 2,024 | $ 1,820 | $ 1,560 | $ 1,408 | $ 1,303 | $ 761 | $ 1,339 | 6,706 | $ 4,811 | $ 4,973 |
Service | Accounting Standards Update 2014-09 | Adjustments | |||||||||||
Revenue: | |||||||||||
Total revenue | 197 | ||||||||||
Service | Accounting Standards Update 2014-09 | Without adoption of ASC 606 | |||||||||||
Revenue: | |||||||||||
Total revenue | $ 41,117 |
Summary of Significant Accou_14
Summary of Significant Accounting Policies - Impact of New Accounting Standards ASC 606 on Statement of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows used in operating activities: | |||||||||||
Net loss | $ (25,660) | $ (8,498) | $ 1,291 | $ (15,339) | $ 14,916 | $ 18,897 | $ 21,417 | $ 17,776 | $ (48,206) | $ 73,006 | $ 88,500 |
Deferred income taxes | 19,641 | (11,517) | 11,422 | ||||||||
Changes in operating assets and liabilities: | |||||||||||
Accounts receivable | 1,881 | 34,716 | (25,726) | ||||||||
Inventory | (21,276) | (11,051) | 21,859 | ||||||||
Prepaid expenses and other assets | (3,679) | (1,084) | 3,519 | ||||||||
Prepaid income taxes | 16 | ||||||||||
Accrued expenses and other current liabilities | (7,827) | 6,124 | 10,243 | ||||||||
Deferred revenue | (9,498) | (5,087) | (25,631) | ||||||||
Net cash (used in) provided by operating activities | (39,022) | $ 98,545 | $ 95,008 | ||||||||
Accounting Standards Update 2014-09 | Adjustments | |||||||||||
Cash flows used in operating activities: | |||||||||||
Net loss | (5,081) | ||||||||||
Deferred income taxes | (1,166) | ||||||||||
Changes in operating assets and liabilities: | |||||||||||
Accounts receivable | 159 | ||||||||||
Inventory | 182 | ||||||||||
Prepaid expenses and other assets | (322) | ||||||||||
Prepaid income taxes | (330) | ||||||||||
Accrued expenses and other current liabilities | 554 | ||||||||||
Deferred revenue | 6,004 | ||||||||||
Accounting Standards Update 2014-09 | Without adoption of ASC 606 | |||||||||||
Cash flows used in operating activities: | |||||||||||
Net loss | (53,287) | ||||||||||
Deferred income taxes | 18,475 | ||||||||||
Changes in operating assets and liabilities: | |||||||||||
Accounts receivable | 2,040 | ||||||||||
Inventory | (21,094) | ||||||||||
Prepaid expenses and other assets | (4,001) | ||||||||||
Prepaid income taxes | (314) | ||||||||||
Accrued expenses and other current liabilities | (7,273) | ||||||||||
Deferred revenue | (3,494) | ||||||||||
Net cash (used in) provided by operating activities | $ (39,022) |
Business Acquisition - Addition
Business Acquisition - Additional Information (Details) $ in Thousands | Jul. 01, 2019USD ($) | Jul. 01, 2019AUD ($) | Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Business Acquisition [Line Items] | |||||||||||||
Goodwill | $ 50,347 | $ 50,347 | |||||||||||
Net (loss) income | $ (25,660) | $ (8,498) | $ 1,291 | $ (15,339) | $ 14,916 | $ 18,897 | $ 21,417 | $ 17,776 | (48,206) | $ 73,006 | $ 88,500 | ||
NetComm | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Business combination acquisition of equity interests percentage | 100.00% | ||||||||||||
Cash consideration | $ 112,674 | $ 161,963,000 | |||||||||||
Exchange rate | 0.700 | ||||||||||||
Cash and cash equivalents balance | $ 3,243 | ||||||||||||
Consideration net of cash acquired | 109,431 | ||||||||||||
Existing debt | 3,507 | ||||||||||||
Fair value of receivables acquired | 18,142 | ||||||||||||
Identifiable intangible assets | $ 44,000 | ||||||||||||
Weighted average life of identifiable intangible assets | 8 years 2 months 12 days | 8 years 2 months 12 days | |||||||||||
Amortization expense | 2,852 | ||||||||||||
Goodwill | $ 50,347 | ||||||||||||
Net revenues | 75,769 | ||||||||||||
Net (loss) income | 1,424 | ||||||||||||
Transaction costs related to acquisition | 3,494 | ||||||||||||
Adjustment for amortization of step up of inventory fair value | 3,200 | ||||||||||||
NetComm | Cost of Revenue | Product | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Amortization expense | 1,786 | ||||||||||||
NetComm | Selling, General and Administrative Expenses | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Amortization expense | $ 1,066 | ||||||||||||
NetComm | Developed Technology | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Identifiable intangible assets | $ 25,000 | ||||||||||||
Intangible assets, estimated useful lives | 7 years | 7 years | |||||||||||
NetComm | Customer Relationships | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Identifiable intangible assets | $ 18,000 | ||||||||||||
Intangible assets, estimated useful lives | 10 years | 10 years | |||||||||||
NetComm | Trade Name | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Identifiable intangible assets | $ 1,000 | ||||||||||||
Intangible assets, estimated useful lives | 3 years | 3 years |
Business Acquisition - Schedule
Business Acquisition - Schedule of Preliminarily Purchase Price and Valuation, Allocation of Total Purchase Price (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Jul. 01, 2019 |
Fair value of tangible assets: | ||
Goodwill | $ 50,347 | |
NetComm | ||
Fair value of tangible assets: | ||
Accounts receivable | $ 18,142 | |
Inventory | 24,138 | |
Prepaid expenses and other current assets | 2,240 | |
Property, plant and equipment | 8,010 | |
Deferred tax assets | 365 | |
Other assets | 13 | |
Goodwill | 50,347 | |
Identifiable intangible assets | 44,000 | |
Total assets acquired | 147,255 | |
Liabilities assumed | ||
Accounts payable | (9,719) | |
Accrued expenses | (13,178) | |
Accrued income taxes | (140) | |
Deferred tax liabilities | (10,791) | |
Current portion of long-term debt | (3,507) | |
Other liabilities | (489) | |
Total liabilities assumed | (37,824) | |
Net assets acquired | $ 109,431 |
Business Acquisition - Schedu_2
Business Acquisition - Schedule of Preliminary Purchase Price and Estimated Useful Lives Associated with Certain Assets (Details) - USD ($) $ in Thousands | Jul. 01, 2019 | Dec. 31, 2019 |
Identifiable intangible assets: | ||
Goodwill | $ 50,347 | |
NetComm | ||
Business Acquisition [Line Items] | ||
Net tangible assets | $ 15,084 | |
Identifiable intangible assets: | ||
Identifiable intangible assets | 44,000 | |
Goodwill | 50,347 | |
Net assets acquired | 109,431 | |
NetComm | Developed Technology | ||
Identifiable intangible assets: | ||
Identifiable intangible assets | $ 25,000 | |
Identifiable intangible assets, Estimated Useful Life | 7 years | |
NetComm | Customer Relationships | ||
Identifiable intangible assets: | ||
Identifiable intangible assets | $ 18,000 | |
Identifiable intangible assets, Estimated Useful Life | 10 years | |
NetComm | Trade Name | ||
Identifiable intangible assets: | ||
Identifiable intangible assets | $ 1,000 | |
Identifiable intangible assets, Estimated Useful Life | 3 years |
Business Acquisition - Schedu_3
Business Acquisition - Schedule of Intangible Assets in Consolidated Balance Sheet (Details) - NetComm $ in Thousands | Dec. 31, 2019USD ($) |
Business Combination Recognized Identifiable Assets Acquired Finite Lived Intangible Assets [Line Items] | |
Gross Carrying Amount | $ 44,000 |
Accumulated Amortization | (2,852) |
Net Carrying Amount | 41,148 |
Developed Technology | |
Business Combination Recognized Identifiable Assets Acquired Finite Lived Intangible Assets [Line Items] | |
Gross Carrying Amount | 25,000 |
Accumulated Amortization | (1,786) |
Net Carrying Amount | 23,214 |
Customer Relationships | |
Business Combination Recognized Identifiable Assets Acquired Finite Lived Intangible Assets [Line Items] | |
Gross Carrying Amount | 18,000 |
Accumulated Amortization | (900) |
Net Carrying Amount | 17,100 |
Trade Name | |
Business Combination Recognized Identifiable Assets Acquired Finite Lived Intangible Assets [Line Items] | |
Gross Carrying Amount | 1,000 |
Accumulated Amortization | (166) |
Net Carrying Amount | $ 834 |
Business Acquisition - Schedu_4
Business Acquisition - Schedule of Estimated Amortization Expense For Intangible Assets (Details) - NetComm $ in Thousands | Dec. 31, 2019USD ($) |
Business Combination Recognized Identifiable Assets Acquired Finite Lived Intangible Assets [Line Items] | |
2020 | $ 5,704 |
2021 | 5,704 |
2022 | 5,542 |
2023 | 5,372 |
2024 | 5,372 |
Thereafter | 13,454 |
Net Carrying Amount | $ 41,148 |
Business Acquisition - Schedu_5
Business Acquisition - Schedule of Unaudited Pro Forma Results (Details) - NetComm - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Business Acquisition [Line Items] | |||
Net revenue | $ 375,306 | $ 436,791 | $ 465,786 |
Net (loss) income | $ (47,898) | $ 68,808 | $ 76,432 |
Inventory - Schedule of Invento
Inventory - Schedule of Inventory (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 24,000 | $ 6,524 |
Work in process | 17 | 571 |
Finished goods: | ||
Manufactured finished goods | 70,923 | 45,594 |
Deferred inventory costs | 4,263 | 1,073 |
Total finished goods | 99,203 | 53,762 |
Valuation adjustment for excess and obsolete inventory | (5,599) | (2,765) |
Total inventory | $ 93,604 | $ 50,997 |
Property and Equipment - Summar
Property and Equipment - Summary of Components of Property and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 90,141 | $ 61,191 |
Less: Accumulated depreciation and amortization | (54,231) | (31,312) |
Property and equipment, net | 35,910 | 29,879 |
Computers and Purchased Software | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 22,294 | 15,706 |
Leasehold Improvements | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 4,380 | 1,340 |
Furniture and Fixtures | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 2,794 | 1,949 |
Machinery and Equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 40,002 | 21,979 |
Land | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 3,091 | 3,091 |
Building | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 4,765 | 4,765 |
Building Improvements | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 6,776 | 5,245 |
Trial Systems at Customers' Sites | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 6,039 | $ 7,116 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property Plant And Equipment [Line Items] | |||
Depreciation and amortization expense on property and equipment | $ 11,870 | $ 9,454 | $ 7,738 |
Trial Systems | |||
Property Plant And Equipment [Line Items] | |||
Transfers from inventory into property and equipment | (502) | (357) | 877 |
Equipment | |||
Property Plant And Equipment [Line Items] | |||
Transfers from inventory into property and equipment | $ (261) | $ 371 | $ 2,566 |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities - Schedule of Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Payables And Accruals [Abstract] | ||
Accrued compensation and related taxes | $ 18,540 | $ 18,301 |
Accrued warranty (see Note 2) | 2,448 | 926 |
Dividends and equitable adjustments payable (see Note 10) | 750 | 3,336 |
Accrued customer incentives | 233 | 5,368 |
Other accrued expenses | 12,596 | 9,061 |
Total accrued expenses and other current liabilities | $ 34,567 | $ 36,992 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value of Financial Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Assets: | ||
Assets fair value | $ 65,738 | $ 274,109 |
Liabilities: | ||
Liabilities fair value | 314 | 1,639 |
Certificates of Deposit | ||
Assets: | ||
Assets fair value | 10,933 | 19,873 |
Certificates of Deposit—Restricted Cash | ||
Assets: | ||
Assets fair value | 1,019 | 1,019 |
Money Market Mutual Funds | ||
Assets: | ||
Assets fair value | 53,763 | 252,963 |
Foreign Currency Forward Contracts | Derivative Financial Instruments, Assets | ||
Assets: | ||
Assets fair value | 23 | 254 |
Foreign Currency Forward Contracts | Derivative Financial Instruments, Liabilities | ||
Liabilities: | ||
Liabilities fair value | 50 | 252 |
SARs | Share Based Compensation Liability | ||
Liabilities: | ||
Liabilities fair value | 264 | 1,387 |
Level 1 | ||
Assets: | ||
Assets fair value | 53,763 | 252,963 |
Level 1 | Money Market Mutual Funds | ||
Assets: | ||
Assets fair value | 53,763 | 252,963 |
Level 2 | ||
Assets: | ||
Assets fair value | 11,975 | 21,146 |
Liabilities: | ||
Liabilities fair value | 50 | 252 |
Level 2 | Certificates of Deposit | ||
Assets: | ||
Assets fair value | 10,933 | 19,873 |
Level 2 | Certificates of Deposit—Restricted Cash | ||
Assets: | ||
Assets fair value | 1,019 | 1,019 |
Level 2 | Foreign Currency Forward Contracts | Derivative Financial Instruments, Assets | ||
Assets: | ||
Assets fair value | 23 | 254 |
Level 2 | Foreign Currency Forward Contracts | Derivative Financial Instruments, Liabilities | ||
Liabilities: | ||
Liabilities fair value | 50 | 252 |
Level 3 | ||
Liabilities: | ||
Liabilities fair value | 264 | 1,387 |
Level 3 | SARs | Share Based Compensation Liability | ||
Liabilities: | ||
Liabilities fair value | $ 264 | $ 1,387 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |||
Fair value, assets, transfers from Level 1 to Level 2 | $ 0 | $ 0 | $ 0 |
Fair value, assets, transfers from Level 2 to Level 1 | 0 | 0 | 0 |
Fair value, liabilities, transfers from Level 1 to Level 2 | 0 | 0 | 0 |
Fair value, liabilities, transfers from Level 2 to Level 1 | 0 | 0 | 0 |
Fair value, assets, transfers into Level 3 | 0 | 0 | 0 |
Fair value, assets, transfers out of Level 3 | 0 | 0 | 0 |
Fair value, liabilities, transfers into Level 3 | 0 | 0 | 0 |
Fair value, liabilities, transfers out of Level 3 | $ 0 | $ 0 | $ 0 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Changes in Fair Values of SARs Liability (Details) - Level 3 - SARs - Share Based Compensation Liability - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Fair value at beginning of the year | $ 1,387 | $ 2,155 | $ 1,195 |
Change in fair value | (1,123) | (768) | 960 |
Fair value at end of year | $ 264 | $ 1,387 | $ 2,155 |
Fair Value Measurements - Sum_2
Fair Value Measurements - Summary of Company's Cash and Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | [1] | Dec. 31, 2016 | ||
Cash And Cash Equivalents [Line Items] | |||||||
Cash | $ 48,942 | $ 7,751 | |||||
Cash equivalents and restricted cash: | |||||||
Certificates of deposit | 10,933 | 19,873 | |||||
Money market mutual funds | 53,763 | 252,963 | |||||
Total cash equivalents and restricted cash | 65,715 | 273,855 | |||||
Cash and cash equivalents, restricted cash | 114,657 | [1] | 281,606 | [1] | $ 260,820 | $ 329,554 | |
Certificates of Deposit | |||||||
Cash equivalents and restricted cash: | |||||||
Restricted cash | $ 1,019 | $ 1,019 | |||||
[1] | See Note 2 of the accompanying notes for a reconciliation of the ending balance of cash, cash equivalents and restricted cash shown in these consolidated statements of cash flows. |
Derivative Instruments - Additi
Derivative Instruments - Additional Information (Details) - Foreign Currency Forward Contracts | Dec. 31, 2019USD ($) | Dec. 31, 2019EUR (€) | Dec. 31, 2018USD ($) | Dec. 31, 2018EUR (€) |
Derivatives Fair Value [Line Items] | ||||
Outstanding notional amounts | € | € 25,741,000 | |||
Prepaid Expenses and Other Current Assets | ||||
Derivatives Fair Value [Line Items] | ||||
Derivatives asset fair value | $ 23,000 | $ 254,000 | ||
Accrued Expenses And Other Current Liabilities | ||||
Derivatives Fair Value [Line Items] | ||||
Liability derivatives | 50,000 | $ 252,000 | ||
Australian Subsidiary | ||||
Derivatives Fair Value [Line Items] | ||||
Outstanding notional amounts | $ 900,000 | € 500,000 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Before Provision for (Benefit from) Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||||||||||
United States | $ (40,055) | $ 10,527 | $ 77,410 | ||||||||
Foreign | 15,640 | 55,411 | 45,408 | ||||||||
(Loss) income before provision for (benefit from) income taxes | $ 6,471 | $ (14,110) | $ 733 | $ (17,509) | $ 13,254 | $ 19,892 | $ 13,223 | $ 19,569 | $ (24,415) | $ 65,938 | $ 122,818 |
Income Taxes - Schedule of Prov
Income Taxes - Schedule of Provision for (Benefit from) Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current income tax provision: | |||||||||||
Federal | $ 4,698 | $ (3,457) | $ 17,498 | ||||||||
State | (121) | (181) | 589 | ||||||||
Foreign | (427) | 8,087 | 4,809 | ||||||||
Total current income tax provision | 4,150 | 4,449 | 22,896 | ||||||||
Deferred income tax provision (benefit): | |||||||||||
Federal | 18,387 | (10,699) | 12,468 | ||||||||
State | 5,100 | (1,108) | (1,024) | ||||||||
Foreign | (3,846) | 290 | (22) | ||||||||
Total deferred income tax (benefit) provision | 19,641 | (11,517) | 11,422 | ||||||||
Total income tax (benefit) provision | $ 32,131 | $ (5,612) | $ (558) | $ (2,170) | $ (1,662) | $ 995 | $ (8,194) | $ 1,793 | $ 23,791 | $ (7,068) | $ 34,318 |
Income Taxes - Schedule of Reco
Income Taxes - Schedule of Reconciliation of U.S. Federal Statutory Rate to Effective Income Tax Rate (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Federal statutory income tax rate | 21.00% | 21.00% | 35.00% |
State taxes, net of federal tax benefit | 9.80% | (0.80%) | 0.60% |
Research and development tax credits | 10.30% | (15.60%) | (3.50%) |
Permanent differences | (1.60%) | 1.10% | 0.50% |
Domestic manufacturing deduction | (0.90%) | ||
Foreign tax rate differential | 10.20% | (6.60%) | (7.00%) |
Equitable adjustment payments | 1.70% | (1.80%) | (6.00%) |
Excess tax benefit from stock-based transactions | 3.30% | (25.20%) | (1.60%) |
Foreign taxes withheld | (9.60%) | 3.30% | |
Impact of deferred tax rate decrease under TCJA | 3.30% | ||
TCJA one-time deemed repatriation of accumulated earnings of foreign subsidiaries | 7.10% | ||
Global intangible low-taxed income | (4.10%) | 6.70% | |
Withholding tax on repatriation of accumulated earnings of foreign subsidiaries | (0.10%) | 0.10% | 1.10% |
Valuation allowance on deferred tax assets | (144.20%) | 6.00% | |
Other, net | 2.30% | 1.10% | |
Foreign derived intangible income | 3.90% | ||
Research and development costs | (4.30%) | ||
Provision to return | 11.10% | ||
Uncertain tax positions | (7.10%) | (0.70%) | |
Effective income tax rate | (97.40%) | (10.70%) | 27.90% |
Income Taxes - Schedule of In_2
Income Taxes - Schedule of Income Tax Effect of Each Type of Temporary Difference and Carryforward (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets: | ||
Stock compensation | $ 3,827 | $ 2,689 |
Tax credit carryforwards | 9,900 | 7,599 |
Capitalized research and development costs | 21,376 | 12,157 |
Inventory valuation | 1,756 | 698 |
Accrued liabilities and reserves | 5,207 | 2,473 |
Deferred revenue | 1,520 | 3,147 |
Interest expense | 2,149 | 480 |
Intellectual property rights | 999 | |
Other | 544 | 452 |
Total deferred tax assets | 47,278 | 29,695 |
Valuation Allowance | (39,124) | (3,926) |
Deferred tax assets, net of valuation allowance | 8,154 | 25,769 |
Deferred tax liabilities: | ||
Depreciation | (1,159) | (1,266) |
Amortization | (12,727) | |
Deferred costs | (134) | |
Withholding tax on unremitted earnings | (2,604) | (2,572) |
Prepaid expenses | (588) | (219) |
Total deferred tax liabilities | (17,078) | (4,191) |
Net deferred tax (liabilities) | $ (8,924) | |
Net deferred tax assets | $ 21,578 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Taxes Disclosure [Line Items] | |||||
Valuation Allowance | $ 39,124 | $ 39,124 | $ 3,926 | ||
Deferred tax asset valuation allowance increase (decrease) | 35,198 | $ 35,198 | |||
U.S. corporate income tax rate | 21.00% | 21.00% | 35.00% | ||
TCJA dividends-received from foreign subsidiaries deduction percentage | 100.00% | ||||
Income tax charges related to global intangible low taxed income | $ 942 | $ 4,410 | |||
Undistributed earnings amount | 25,966 | 25,966 | |||
Deferred tax liability | 2,597 | 2,597 | |||
Liability recorded for potential penalties and interest | 1,646 | 1,646 | 369 | ||
Unrecognized tax benefits | 21,495 | 21,495 | 2,746 | $ 1,695 | $ 318 |
Unrecognized tax benefits that would impact effective tax rate | 2,835 | 2,835 | |||
Increase in tax positions related to acquired positions | 12,653 | ||||
Increase in tax positions related to transfer pricing positions | $ 5,781 | ||||
Minimum | |||||
Income Taxes Disclosure [Line Items] | |||||
Statute of limitation year | 3 years | ||||
Maximum | |||||
Income Taxes Disclosure [Line Items] | |||||
Statute of limitation year | 4 years | ||||
China | |||||
Income Taxes Disclosure [Line Items] | |||||
Statute of limitation year | 10 years | ||||
Start Year | United States | |||||
Income Taxes Disclosure [Line Items] | |||||
Examination tax year | 2016 | ||||
Start Year | Ireland | |||||
Income Taxes Disclosure [Line Items] | |||||
Examination tax year | 2015 | ||||
Start Year | China | |||||
Income Taxes Disclosure [Line Items] | |||||
Examination tax year | 2009 | ||||
Start Year | Australia | |||||
Income Taxes Disclosure [Line Items] | |||||
Examination tax year | 2015 | ||||
End Year | United States | |||||
Income Taxes Disclosure [Line Items] | |||||
Examination tax year | 2019 | ||||
End Year | Ireland | |||||
Income Taxes Disclosure [Line Items] | |||||
Examination tax year | 2019 | ||||
End Year | China | |||||
Income Taxes Disclosure [Line Items] | |||||
Examination tax year | 2019 | ||||
End Year | Australia | |||||
Income Taxes Disclosure [Line Items] | |||||
Examination tax year | 2019 | ||||
Other Income (Expense) | |||||
Income Taxes Disclosure [Line Items] | |||||
Interest and penalties related to uncertain tax positions | $ 1,278 | 211 | $ 14 | ||
Accrued Income Taxes Current | |||||
Income Taxes Disclosure [Line Items] | |||||
Unrecognized tax benefits | $ 10,211 | 10,211 | $ 3,038 | ||
State | |||||
Income Taxes Disclosure [Line Items] | |||||
Research and development tax credit carryforwards | $ 9,403 | ||||
Research and development tax credit carryforwards expiration year | 2030 | ||||
Foreign | |||||
Income Taxes Disclosure [Line Items] | |||||
Research and development tax credit carryforwards | $ 12,335 | ||||
Uncertain tax positions credits | $ 11,193 |
Income Taxes - Schedule of Chan
Income Taxes - Schedule of Changes in Balance of Gross Uncertain Tax Positions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Balance | $ 2,746 | $ 1,695 | $ 318 |
Settlement/decreases related to tax positions taken during prior years | (49) | ||
Increases related to tax positions taken during prior years | 18,434 | 241 | |
Increases related to tax positions taken during the current year | 364 | 810 | 1,377 |
Balance | $ 21,495 | $ 2,746 | $ 1,695 |
Debt - Schedule of Aggregate Pr
Debt - Schedule of Aggregate Principal Amount of Debt Outstanding (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Total principal amount of debt outstanding | $ 297,644 | $ 300,958 |
Term Loans | ||
Debt Instrument [Line Items] | ||
Total principal amount of debt outstanding | 291,000 | 294,000 |
Mortgage Loan | ||
Debt Instrument [Line Items] | ||
Total principal amount of debt outstanding | $ 6,644 | $ 6,958 |
Debt - Schedule of Current and
Debt - Schedule of Current and Non-Current Debt Obligations (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Current liabilities: | ||
Current portion of principal payment obligations | $ 9,644 | $ 3,314 |
Unamortized debt issuance costs, current portion | (1,120) | (1,135) |
Current portion of long-term debt, net of unamortized debt issuance costs | 8,524 | 2,179 |
Non-current liabilities: | ||
Non-current portion of principal payment obligations | 288,000 | 297,644 |
Unamortized debt issuance costs, non-current portion | (3,244) | (4,364) |
Long-term debt, net of current portion and unamortized debt issuance costs | 284,756 | 293,280 |
Term Loans | ||
Current liabilities: | ||
Current portion of principal payment obligations | 3,000 | 3,000 |
Non-current liabilities: | ||
Non-current portion of principal payment obligations | 288,000 | 291,000 |
Mortgage Loan | ||
Current liabilities: | ||
Current portion of principal payment obligations | $ 6,644 | 314 |
Non-current liabilities: | ||
Non-current portion of principal payment obligations | $ 6,644 |
Debt - Additional Information (
Debt - Additional Information (Details) | Dec. 20, 2016USD ($) | Jul. 01, 2015USD ($)Installment | Dec. 31, 2019USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Debt Instrument [Line Items] | ||||||
Outstanding borrowings | $ 297,644,000 | $ 297,644,000 | $ 300,958,000 | |||
Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit facility utilize percentage | 30.00% | 30.00% | ||||
JPMorgan Chase Bank, N.A. and Barclays Bank PLC and Various Lenders | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Maximum amount of increase in facilities | $ 70,000,000 | |||||
JPMorgan Chase Bank, N. A. | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, interest rate description | Borrowings under the facilities bear interest at a floating rate, which can be either a Eurodollar rate plus an applicable margin or, at the Company’s option, a base rate (defined as the highest of (x) the JPMorgan Chase, N.A. prime rate, (y) the federal funds effective rate, plus one-half percent (0.50%) per annum and (z) a one-month Eurodollar rate plus 1.00% per annum) plus an applicable margin. The applicable margin for borrowings under the term loan facility is 4.00% per annum for Eurodollar rate loans (subject to a 1.00% per annum interest rate floor) and 3.00% per annum for base rate loans. As a result of the completion of the Company’s IPO in December 2017, the applicable margin for borrowings under the revolving credit facility is 1.75% per annum for Eurodollar rate loans and 0.75% per annum for base rate loans, subject to reduction based on the Company’s maintaining of specified net leverage ratios. The interest rates payable under the facilities are subject to an increase of 2.00% per annum during the continuance of any payment default. | |||||
Debt instrument prepayment description | In addition, the Company is required to make mandatory prepayments under the facilities with respect to (i) 100% of the net cash proceeds from certain asset dispositions (including casualty and condemnation events) by the Company or certain of its subsidiaries, subject to certain exceptions and reinvestment provisions, (ii) 100% of the net cash proceeds from the issuance or incurrence of any additional debt by the Company or certain of its subsidiaries, subject to certain exceptions, and (iii) 50% of the Company’s excess cash flow, as defined in the credit agreement, subject to reduction upon its achievement of specified performance targets. | |||||
Percentage of net proceeds from asset dispositions to be used for mandatory prepayment | 100.00% | |||||
Percentage of net cash proceeds from issuances or incurrence of additional Debt to be used for mandatory prepayment | 100.00% | |||||
Percentage on excess cash flow for mandatory prepayments of debt | 50.00% | |||||
Line of credit facility, covenant terms | The facilities contain customary affirmative and negative covenants, including certain restrictions on the Company’s ability to pay dividends, and, with respect to the revolving credit facility, a financial covenant requiring the Company to maintain a specified total net leverage ratio in the event that on the last day of any fiscal quarter the Company has utilized more than 30% of its borrowing capacity under the facility. | |||||
Line of credit facility, Covenant compliance | The Company’s net leverage ratio exceeded the maximum on December 31, 2019; however, as the Company’s utilization of the revolving credit facility did not exceed the 30% testing threshold on December 31, 2019, the Company was not in default the revolving credit facility as a result of the Company’s net leverage ratio exceeding the maximum permitted amount. The Company was in compliance with all other applicable covenants of the facilities as of December 31, 2019 and with all applicable covenants as of December 31, 2018 | |||||
Term Loan Facility | ||||||
Debt Instrument [Line Items] | ||||||
Outstanding borrowings | $ 291,000,000 | $ 291,000,000 | 294,000,000 | |||
Term Loan Facility | JPMorgan Chase Bank, N.A. and Barclays Bank PLC and Various Lenders | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing amount under facility | $ 300,000,000 | |||||
Outstanding borrowings | $ 291,000,000 | $ 291,000,000 | $ 294,000,000 | |||
Term Loan Facility | JPMorgan Chase Bank, N. A. | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, interest rate stated percentage | 4.00% | |||||
Debt instrument, interest rate description | As of December 31, 2019, the interest rate on the Term Loans was 5.80% per annum, which was based on a one-month Eurodollar rate of 1.80% per annum plus the applicable margin of 4.00% per annum for Eurodollar rate loans. As of December 31, 2018, the interest rate on the Term Loans was 6.52% per annum, which was based on a one-month Eurodollar rate of 2.52% per annum plus the applicable margin of 4.00% per annum for Eurodollar rate loans. | |||||
Debt instrument, effective interest rate percentage | 5.80% | 5.80% | 6.52% | |||
Debt issuance costs | $ 7,811,000 | |||||
Debt instrument, principal payment | $ 3,000,000 | $ 3,000,000 | $ 3,000,000 | |||
Interest expense, including amortization of debt issuance costs | $ 19,728,000 | $ 19,146,000 | 16,800,000 | |||
Debt instrument, maturity date | Dec. 20, 2023 | |||||
Original principal amount of term loan amortization percentage | 1.00% | |||||
Principal amount of loan | $ 300,000,000 | |||||
Term Loan Facility | JPMorgan Chase Bank, N. A. | Eurodollar Rate | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, variable interest rate percentage | 4.00% | 4.00% | ||||
Debt instrument, effective interest rate percentage | 2.52% | |||||
Term Loan Facility | JPMorgan Chase Bank, N. A. | Floor Rate | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, interest rate stated percentage | 1.00% | |||||
Debt instrument, effective interest rate percentage | 1.80% | 1.80% | ||||
Term Loan Facility | JPMorgan Chase Bank, N. A. | Base Rate | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, interest rate stated percentage | 3.00% | |||||
Commercial Mortgage Loan | ||||||
Debt Instrument [Line Items] | ||||||
Outstanding borrowings | $ 6,644,000 | $ 6,644,000 | $ 6,958,000 | |||
Debt instrument, interest rate stated percentage | 3.50% | |||||
Debt instrument, principal payment | 314,000 | 303,000 | 292,000 | |||
Interest expense, including amortization of debt issuance costs | $ 249,000 | 260,000 | 272,000 | |||
Debt instrument, maturity date | Jul. 1, 2020 | |||||
Principal amount of loan | $ 7,950,000 | |||||
Debt instrument, number of periodic payment installments | Installment | 60 | |||||
Debt instrument, principal and interest payment | $ 46,000 | |||||
Debt instrument payment, amortization period | 20 years | |||||
Debt issuance costs | $ 45,000 | |||||
Debt instrument, Covenant description | The Mortgage Loan is secured by the land and building purchased in March 2015 and subjects the Company to various affirmative, negative and financial covenants, including maintenance of a minimum debt service ratio. The Company was in compliance with all covenants of the Mortgage Loan as of December 31, 2019 and 2018. | |||||
Revolving Credit Facility | JPMorgan Chase Bank, N.A. and Barclays Bank PLC and Various Lenders | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing amount under facility | $ 25,000,000 | |||||
Outstanding borrowings | $ 0 | $ 0 | 0 | |||
Revolving Credit Facility | JPMorgan Chase Bank, N. A. | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, interest rate increase | 2.00% | |||||
Payment of quarterly commitment fees percentage | 0.25% | |||||
Interest expense related to the fee for the unused amount | 59,000 | $ 62,000 | $ 61,000 | |||
Debt instrument, maturity date | Dec. 20, 2021 | |||||
Revolving Credit Facility | JPMorgan Chase Bank, N. A. | Federal Funds Effective Rate | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, variable interest rate percentage | 0.50% | |||||
Revolving Credit Facility | JPMorgan Chase Bank, N. A. | Eurodollar Rate | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, variable interest rate percentage | 1.00% | |||||
Debt instrument, interest rate stated percentage | 1.75% | |||||
Revolving Credit Facility | JPMorgan Chase Bank, N. A. | Base Rate | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, interest rate stated percentage | 0.75% | |||||
Stand-by Letter of Credit | JPMorgan Chase Bank, N.A. and Barclays Bank PLC and Various Lenders | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit facility, used as collateral amount | $ 1,343,000 | $ 1,343,000 |
Debt - Schedule of Aggregate Mi
Debt - Schedule of Aggregate Minimum Future Principal Payments of Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Disclosure [Abstract] | ||
2020 | $ 9,644 | |
2021 | 3,000 | |
2022 | 3,000 | |
2023 | 3,000 | |
2024 | 279,000 | |
Aggregate minimum future principal payments of debt | $ 297,644 | $ 300,958 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) - USD ($) | Dec. 19, 2017 | May 10, 2017 | Dec. 21, 2016 | Jun. 17, 2016 | Nov. 30, 2014 | Nov. 30, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Class Of Stock [Line Items] | |||||||||
Aggregate shares of common stock | 40,382,000 | 40,382,000 | |||||||
Preferred stock, shares authorized | 5,000,000 | 5,000,000 | |||||||
Preferred stock, par value | $ 0.001 | $ 0.001 | |||||||
Preferred stock, shares issued | 0 | 0 | |||||||
Preferred stock, shares, outstanding | 0 | 0 | |||||||
Equitable adjustment payments of stock option, SARs and RSUs per share | $ 1.7576 | ||||||||
Common Stock | |||||||||
Class Of Stock [Line Items] | |||||||||
Dividends payable, amount per share | $ 1.7576 | ||||||||
November 2017 Special Dividend | |||||||||
Class Of Stock [Line Items] | |||||||||
Dividends payable, date declared | Nov. 30, 2017 | ||||||||
Dividends to be paid | $ 0 | $ 0 | |||||||
Equitable adjustment payments of stock option, SARs and RSUs per share | $ 0.5802 | ||||||||
Equitable adjustment payments year of stock option, SARs and RSUs | 2021 | ||||||||
Equitable adjustment payments, net of estimated forfeitures | $ 6,928,000 | ||||||||
Common stock cash dividends declared | 19,572,000 | ||||||||
Dividends and equitable adjustments | 49,930,000 | ||||||||
November 2017 Special Dividend | Vested Equity Awards | |||||||||
Class Of Stock [Line Items] | |||||||||
Dividends paid | 426,000 | 1,132,000 | 5,193,000 | ||||||
November 2017 Special Dividend | Vested Equity Awards | Accrued Expenses And Other Current Liabilities | |||||||||
Class Of Stock [Line Items] | |||||||||
Equitable adjustment payments, net of estimated forfeitures | $ 177,000 | 603,000 | |||||||
November 2017 Special Dividend | Common Stock | |||||||||
Class Of Stock [Line Items] | |||||||||
Dividends payable, amount per share | $ 0.5802 | ||||||||
Dividends paid | 865,000 | 42,137,000 | |||||||
November 2017 Special Dividend | Preferred Stock | |||||||||
Class Of Stock [Line Items] | |||||||||
Dividends paid | 865,000 | 42,137,000 | |||||||
November 2017 Special Dividend | Series B Preferred Stock | |||||||||
Class Of Stock [Line Items] | |||||||||
Dividends payable, amount per share | 5.8020 | ||||||||
Preferred stock cash dividends declared | 1,039,000 | ||||||||
November 2017 Special Dividend | Series C Preferred Stock | |||||||||
Class Of Stock [Line Items] | |||||||||
Dividends payable, amount per share | $ 5.8020 | ||||||||
Preferred stock cash dividends declared | 22,391,000 | ||||||||
May 2017 Special Dividend | |||||||||
Class Of Stock [Line Items] | |||||||||
Dividends payable, date declared | May 10, 2017 | ||||||||
Dividends to be paid | $ 0 | 0 | |||||||
Equitable adjustment payments of stock option, SARs and RSUs per share | $ 1.1774 | ||||||||
Equitable adjustment payments year of stock option, SARs and RSUs | 2021 | ||||||||
Equitable adjustment payments, net of estimated forfeitures | 12,723,000 | ||||||||
Common stock cash dividends declared | 39,585,000 | ||||||||
Dividends and equitable adjustments | 99,856,000 | ||||||||
May 2017 Special Dividend | Vested Equity Awards | |||||||||
Class Of Stock [Line Items] | |||||||||
Dividends paid | 618,000 | 1,492,000 | 10,431,000 | ||||||
May 2017 Special Dividend | Vested Equity Awards | Accrued Expenses And Other Current Liabilities | |||||||||
Class Of Stock [Line Items] | |||||||||
Equitable adjustment payments, net of estimated forfeitures | $ 182,000 | 800,000 | |||||||
May 2017 Special Dividend | Common Stock | |||||||||
Class Of Stock [Line Items] | |||||||||
Dividends payable, amount per share | $ 1.1774 | ||||||||
Dividends paid | 87,133,000 | ||||||||
May 2017 Special Dividend | Preferred Stock | |||||||||
Class Of Stock [Line Items] | |||||||||
Dividends paid | 87,133,000 | ||||||||
May 2017 Special Dividend | Series B Preferred Stock | |||||||||
Class Of Stock [Line Items] | |||||||||
Dividends payable, amount per share | 11.7744 | ||||||||
Preferred stock cash dividends declared | 2,108,000 | ||||||||
May 2017 Special Dividend | Series C Preferred Stock | |||||||||
Class Of Stock [Line Items] | |||||||||
Dividends payable, amount per share | $ 11.7744 | ||||||||
Preferred stock cash dividends declared | 45,440,000 | ||||||||
December 2016 Special Dividend | |||||||||
Class Of Stock [Line Items] | |||||||||
Dividends payable, date declared | Dec. 21, 2016 | ||||||||
Dividends to be paid | $ 0 | 0 | |||||||
Equitable adjustment payments of stock option, SARs and RSUs per share | $ 2.3306 | ||||||||
Equitable adjustment payments year of stock option, SARs and RSUs | 2020 | ||||||||
Dividends payable, date of record | Dec. 27, 2016 | ||||||||
December 2016 Special Dividend | Vested Equity Awards | |||||||||
Class Of Stock [Line Items] | |||||||||
Dividends paid | $ 1,286,000 | 3,105,000 | 23,395,000 | ||||||
December 2016 Special Dividend | Vested Equity Awards | Accrued Expenses And Other Current Liabilities | |||||||||
Class Of Stock [Line Items] | |||||||||
Equitable adjustment payments, net of estimated forfeitures | $ 335,000 | 1,621,000 | |||||||
December 2016 Special Dividend | Common Stock | |||||||||
Class Of Stock [Line Items] | |||||||||
Dividends payable, amount per share | $ 2.3306 | ||||||||
Dividends paid | 77,153,000 | ||||||||
December 2016 Special Dividend | Preferred Stock | |||||||||
Class Of Stock [Line Items] | |||||||||
Dividends paid | 77,153,000 | ||||||||
December 2016 Special Dividend | Series B Preferred Stock | |||||||||
Class Of Stock [Line Items] | |||||||||
Dividends payable, amount per share | 23.3058 | ||||||||
December 2016 Special Dividend | Series C Preferred Stock | |||||||||
Class Of Stock [Line Items] | |||||||||
Dividends payable, amount per share | $ 23.3058 | ||||||||
June 2016 Special Dividend | |||||||||
Class Of Stock [Line Items] | |||||||||
Dividends payable, date declared | Jun. 17, 2016 | ||||||||
Dividends to be paid | $ 0 | 0 | |||||||
Equitable adjustment payments of stock option, SARs and RSUs per share | $ 0.5891 | ||||||||
Equitable adjustment payments year of stock option, SARs and RSUs | 2020 | ||||||||
June 2016 Special Dividend | Vested Equity Awards | |||||||||
Class Of Stock [Line Items] | |||||||||
Dividends paid | 259,000 | 684,000 | 1,075,000 | ||||||
June 2016 Special Dividend | Vested Equity Awards | Accrued Expenses And Other Current Liabilities | |||||||||
Class Of Stock [Line Items] | |||||||||
Equitable adjustment payments, net of estimated forfeitures | 37,000 | 296,000 | |||||||
June 2016 Special Dividend | Common Stock | |||||||||
Class Of Stock [Line Items] | |||||||||
Dividends payable, amount per share | $ 0.5891 | ||||||||
Dividends paid | 0 | 0 | 0 | ||||||
June 2016 Special Dividend | Preferred Stock | |||||||||
Class Of Stock [Line Items] | |||||||||
Dividends paid | $ 0 | 0 | 0 | ||||||
June 2016 Special Dividend | Series B Preferred Stock | |||||||||
Class Of Stock [Line Items] | |||||||||
Dividends payable, amount per share | 5.8910 | ||||||||
June 2016 Special Dividend | Series C Preferred Stock | |||||||||
Class Of Stock [Line Items] | |||||||||
Dividends payable, amount per share | $ 5.8910 | ||||||||
November 2014 Special Dividend | |||||||||
Class Of Stock [Line Items] | |||||||||
Dividends payable, date declared | Nov. 30, 2014 | ||||||||
Dividends to be paid | $ 0 | 0 | |||||||
Equitable adjustment payments of stock option and SARs per share | $ 0.3835 | ||||||||
Equitable adjustment payments year of stock option and SARs | 2018 | ||||||||
November 2014 Special Dividend | Vested Equity Awards | |||||||||
Class Of Stock [Line Items] | |||||||||
Dividends paid | 1,000 | 43,000 | 117,000 | ||||||
Equitable adjustment payments, net of estimated forfeitures | 0 | ||||||||
November 2014 Special Dividend | Vested Equity Awards | Accrued Expenses And Other Current Liabilities | |||||||||
Class Of Stock [Line Items] | |||||||||
Equitable adjustment payments, net of estimated forfeitures | 20,000 | ||||||||
November 2014 Special Dividend | Common Stock | |||||||||
Class Of Stock [Line Items] | |||||||||
Dividends payable, amount per share | $ 0.3835 | ||||||||
Dividends paid | 0 | 0 | 0 | ||||||
November 2014 Special Dividend | Preferred Stock | |||||||||
Class Of Stock [Line Items] | |||||||||
Dividends paid | $ 0 | $ 0 | $ 0 | ||||||
November 2014 Special Dividend | Series B Preferred Stock | |||||||||
Class Of Stock [Line Items] | |||||||||
Dividends payable, amount per share | 3.8346 | ||||||||
November 2014 Special Dividend | Series C Preferred Stock | |||||||||
Class Of Stock [Line Items] | |||||||||
Dividends payable, amount per share | $ 3.8346 |
Common Stock - Additional Infor
Common Stock - Additional Information (Details) | Dec. 19, 2017VotingRight$ / sharesshares | Dec. 01, 2017 | Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2017USD ($) | Feb. 21, 2019USD ($) | Aug. 14, 2018USD ($) | Nov. 30, 2017shares |
Class Of Stock [Line Items] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | shares | 500,000,000 | 500,000,000 | 500,000,000 | |||||
Common stock, par value | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | |||||
Common stock entitles to receive voting rights | VotingRight | 1 | |||||||
Stock split, conversion ratio | 5 | |||||||
Common Stock | ||||||||
Class Of Stock [Line Items] | ||||||||
Stock repurchase program, common stock remaining authorized to be repurchased | $ 73,215,000 | |||||||
Stock repurchase program, stock repurchased, shares | shares | 495 | |||||||
Stock repurchased and retired during period value before commissions | $ 1,785,000 | $ 75,000,000 | ||||||
Stock repurchase program, common stock repurchased and retired, shares | shares | 5,172,000 | |||||||
Common Stock | Maximum | ||||||||
Class Of Stock [Line Items] | ||||||||
Stock repurchase program, common stock authorized to be repurchased | $ 75,000,000 | $ 75,000,000 | ||||||
2017 Stock Incentive Plan | ||||||||
Class Of Stock [Line Items] | ||||||||
Common Stock, shares reserved for exercise of outstanding stock options | shares | 20,630 | 7,161,000 | ||||||
Board of Directors | ||||||||
Class Of Stock [Line Items] | ||||||||
Common stock cash dividends declared | $ 0 | |||||||
November 2014 Special Dividend | ||||||||
Class Of Stock [Line Items] | ||||||||
Dividends, declared date | Nov. 30, 2014 | |||||||
June 2016 Special Dividend | ||||||||
Class Of Stock [Line Items] | ||||||||
Dividends, declared date | Jun. 17, 2016 | |||||||
December 2016 Special Dividend | ||||||||
Class Of Stock [Line Items] | ||||||||
Dividends, declared date | Dec. 21, 2016 | |||||||
May 2017 Special Dividend | ||||||||
Class Of Stock [Line Items] | ||||||||
Dividends, declared date | May 10, 2017 | |||||||
Common stock cash dividends declared | $ 39,585,000 | |||||||
November 2017 Special Dividend | ||||||||
Class Of Stock [Line Items] | ||||||||
Dividends, declared date | Nov. 30, 2017 | |||||||
Common stock cash dividends declared | $ 19,572,000 |
Stock-based Compensation - Addi
Stock-based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | Dec. 11, 2019 | Sep. 11, 2019 | Jul. 30, 2019 | Jun. 11, 2019 | May 16, 2019 | Feb. 19, 2019 | Feb. 05, 2019 | Dec. 14, 2018 | Nov. 27, 2018 | Sep. 27, 2018 | Jun. 14, 2018 | Jun. 06, 2018 | Mar. 08, 2018 | Dec. 15, 2017 | May 15, 2017 | Jan. 31, 2017 | Mar. 26, 2016 | Jan. 23, 2015 | Jan. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Nov. 30, 2017 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||||||||||||
Cash proceeds received upon the exercise of options | $ 2,687 | $ 14,730 | $ 274 | ||||||||||||||||||||
Fair value of SAR liability | 314 | 1,639 | |||||||||||||||||||||
Stock-based compensation expense | 9,821 | $ 8,894 | $ 9,136 | ||||||||||||||||||||
Unrecognized compensation cost | $ 18,413 | ||||||||||||||||||||||
Weighted-average period of unrecognized compensation cost expected to be recognized | 2 years 6 months 10 days | ||||||||||||||||||||||
November 2014 Special Dividend | |||||||||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||||||||||||
Dividends payable, date declared month and year | 2014-11 | ||||||||||||||||||||||
June 2016 Special Dividend | |||||||||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||||||||||||
Dividends payable, date declared month and year | 2016-06 | ||||||||||||||||||||||
December 2016 Special Dividend | |||||||||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||||||||||||
Dividends payable, date declared month and year | 2016-12 | ||||||||||||||||||||||
May 2017 Special Dividend | |||||||||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||||||||||||
Dividends payable, date declared month and year | 2017-05 | ||||||||||||||||||||||
November 2017 Special Dividend | |||||||||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||||||||||||
Dividends payable, date declared month and year | 2017-11 | ||||||||||||||||||||||
Stock Options | |||||||||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||||||||||||
Weighted average grant date fair value per share of options | $ 2.13 | $ 7.59 | $ 4.74 | ||||||||||||||||||||
Cash proceeds received upon the exercise of options | $ 2,687 | $ 14,730 | $ 274 | ||||||||||||||||||||
Intrinsic value of stock options exercised | $ 6,970 | $ 105,787 | $ 1,915 | ||||||||||||||||||||
Restricted Stock Units | Minimum | |||||||||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||||||||||||
Award vesting period | 1 year | ||||||||||||||||||||||
Requisite service period for RSUs | 1 year | ||||||||||||||||||||||
Restricted Stock Units | Maximum | |||||||||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||||||||||||
Award vesting period | 4 years | ||||||||||||||||||||||
Requisite service period for RSUs | 4 years | ||||||||||||||||||||||
Stock Appreciation Rights | |||||||||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||||||||||||
Award vesting period | 4 years | ||||||||||||||||||||||
Award expiration period | 10 years | ||||||||||||||||||||||
Number of shares granted | 110,000 | 0 | 0 | ||||||||||||||||||||
Grant-date price per share | $ 12.24 | $ 12.24 | |||||||||||||||||||||
Grant-date fair value per share | $ 4.52 | ||||||||||||||||||||||
Number of award outstanding | 220,000 | ||||||||||||||||||||||
Number of award unvested | 2,000 | ||||||||||||||||||||||
Number of award vested and exercisable | 218,000 | ||||||||||||||||||||||
Fair value of SAR | $ 1.21 | ||||||||||||||||||||||
Number of shares forfeited | 20,000 | ||||||||||||||||||||||
Stock Appreciation Rights | Accrued Expenses And Other Current Liabilities | |||||||||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||||||||||||
Fair value of SAR liability | $ 264 | $ 1,387 | |||||||||||||||||||||
2003 Stock Incentive Plan | |||||||||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||||||||||||
Number of shares authorized for grant | 32,500,000 | ||||||||||||||||||||||
Award termination period | 2011-08 | ||||||||||||||||||||||
Number of remaining shares available for grant | 2,140,000 | ||||||||||||||||||||||
2011 Stock Incentive Plan | |||||||||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||||||||||||
Award termination period | 2017-12 | ||||||||||||||||||||||
Number of remaining shares available for grant | 2,855,000 | ||||||||||||||||||||||
2011 Stock Incentive Plan | Stock Options | |||||||||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||||||||||||
Award expiration period | 10 years | ||||||||||||||||||||||
2011 Stock Incentive Plan | Stock Options | Minimum | |||||||||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||||||||||||
Percentage on fair market value of common stock on the date of grant | 100.00% | ||||||||||||||||||||||
Award vesting period | 4 years | ||||||||||||||||||||||
2011 Stock Incentive Plan | Stock Options | Maximum | |||||||||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||||||||||||
Award grant period | 10 years | ||||||||||||||||||||||
2011 Stock Incentive Plan | Restricted Stock Units | |||||||||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||||||||||||
Number of shares granted | 15,000 | 176,000 | 244,000 | 2,103,000 | |||||||||||||||||||
2017 Stock Incentive Plan | |||||||||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||||||||||||
Number of shares authorized for grant | 13,565,000 | 18,746,000 | |||||||||||||||||||||
Number of remaining shares available for grant | 10,727,000 | ||||||||||||||||||||||
Common stock, initially reserved for future issuance | 20,630 | 7,161,000 | |||||||||||||||||||||
2017 Stock Incentive Plan | Minimum | |||||||||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||||||||||||
Number of shares issued in period | 20,000,000 | ||||||||||||||||||||||
Percentage of number of shares issued in period | 4.00% | ||||||||||||||||||||||
2017 Stock Incentive Plan | Restricted Stock Units | |||||||||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||||||||||||
Number of shares granted | 8,000 | 130,000 | 134,000 | 105,000 | 68,000 | 229,000 | 714,000 | 22,000 | 20,000 | 185,000 | 83,000 | 7,000 | 103,000 | 35,000 | |||||||||
2011 and 2017 Stock Incentive Plan | Restricted Stock Units | |||||||||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||||||||||||
Number of shares granted | 1,389,000 | ||||||||||||||||||||||
Grant-date fair value per share | $ 10.08 | ||||||||||||||||||||||
Number of award outstanding | 1,653,000 | 759,000 | |||||||||||||||||||||
Number of shares forfeited | 175,000 | ||||||||||||||||||||||
2011 and 2017 Stock Incentive Plan | Restricted Stock Units | Common Stock | |||||||||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||||||||||||
Shares of common stock in settlement of employee tax withholding obligations | 77,000 | 1,000 | 310,000 |
Stock-based Compensation - Assu
Stock-based Compensation - Assumptions Used in Black-Scholes Option Pricing Model (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Risk-free interest rate, Minimum | 1.60% | 2.70% | 2.00% |
Risk-free interest rate, Maximum | 2.50% | 3.00% | 2.20% |
Expected volatility, Minimum | 28.80% | 30.60% | 33.00% |
Expected volatility, Maximum | 30.60% | 32.60% | 38.50% |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Minimum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Expected term (in years) | 6 years 1 month 6 days | 6 years | 6 years |
Maximum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Expected term (in years) | 6 years 2 months 12 days | 6 years 2 months 12 days | 6 years 2 months 12 days |
Stock-based Compensation - Summ
Stock-based Compensation - Summary of Option Activity (Details) - 2003, 2011 and 2017 Stock Incentive Plan - Stock Options - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Number of Shares, Outstanding, Beginning Balance | 9,566 | |
Number of Shares, Granted | 213 | |
Number of Shares, Exercised | (1,129) | |
Number of Shares, Forfeited | (400) | |
Number of Shares, Outstanding, Ending Balance | 8,250 | 9,566 |
Number of Shares, Options exercisable at December 31, 2019 | 6,983 | |
Number of Shares, Vested or expected to vest at December 31, 2019 | 8,186 | |
Weighted-Average Exercise Price, Outstanding, Beginning Balance | $ 7.29 | |
Weighted-Average Exercise Price, Granted | 6.52 | |
Weighted-Average Exercise Price, Exercised | 2.38 | |
Weighted-Average Exercise Price, Forfeited | 11.69 | |
Weighted-Average Exercise Price, Outstanding, Ending Balance | 7.73 | $ 7.29 |
Weighted-Average Exercise Price, Options exercisable at December 31, 2019 | 6.65 | |
Weighted-Average Exercise Price, Vested or expected to vest at December 31, 2019 | $ 7.69 | |
Weighted-Average Remaining Contractual Term, Outstanding | 5 years 7 months 24 days | 6 years 4 months 6 days |
Weighted-Average Remaining Contractual Term, Options exercisable at December 31, 2019 | 5 years 2 months 19 days | |
Weighted-Average Remaining Contractual Term, Vested or expected to vest at December 31, 2019 | 5 years 7 months 17 days | |
Aggregate Intrinsic Value, Outstanding | $ 4,235 | $ 61,561 |
Aggregate Intrinsic Value, Options exercisable at December 31, 2019 | 4,218 | |
Aggregate Intrinsic Value, Vested or expected to vest at December 31, 2019 | $ 4,233 |
Stock-based Compensation - Su_2
Stock-based Compensation - Summary of RSU Activity (Details) - 2011 and 2017 Stock Incentive Plan - Restricted Stock Units $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($)$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of Shares, Unvested, Beginning Balance | shares | 759 |
Number of Shares, Granted | shares | 1,389 |
Number of Shares, Vested | shares | (320) |
Number of Shares, Forfeited | shares | (175) |
Number of Shares, Unvested, Ending Balance | shares | 1,653 |
Weighted-Average Grant Date Fair Value, Unvested, Beginning Balance | $ / shares | $ 13.40 |
Weighted-Average Grant Date Fair Value, Granted | $ / shares | 10.08 |
Weighted-Average Grant Date Fair Value, Vested | $ / shares | 10.67 |
Weighted-Average Grant Date Fair Value, Forfeited | $ / shares | 10.92 |
Weighted-Average Grant Date Fair Value, Unvested, Ending Balance | $ / shares | $ 11.38 |
Aggregate Fair Value, Vested | $ | $ 3,659 |
Stock-based Compensation - Sche
Stock-based Compensation - Schedule of Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 9,821 | $ 8,894 | $ 9,136 |
Cost of Revenue | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock-based compensation expense | 216 | 249 | 306 |
Research and Development Expenses | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock-based compensation expense | 1,569 | 1,864 | 2,864 |
Selling, General and Administrative | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 8,036 | $ 6,781 | $ 5,966 |
Net (Loss) Income per Share - S
Net (Loss) Income per Share - Schedule of Basic and Diluted Net (Loss) Income Per Share Attributable to Common Stockholders (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Numerator: | |||||||||||
Net (loss) income | $ (25,660) | $ (8,498) | $ 1,291 | $ (15,339) | $ 14,916 | $ 18,897 | $ 21,417 | $ 17,776 | $ (48,206) | $ 73,006 | $ 88,500 |
Cumulative dividends on convertible preferred stock | (5,674) | ||||||||||
Dividends declared on convertible preferred stock | (70,977) | ||||||||||
Net (loss) income attributable to common stockholders, basic and diluted | $ (48,206) | $ 73,006 | $ 11,849 | ||||||||
Denominator: | |||||||||||
Weighted-average shares used to compute net (loss) income per share attributable to common stockholders, basic | 83,853 | 83,539 | 35,359 | ||||||||
Dilutive effect of stock options | 8,086 | 9,141 | |||||||||
Dilutive effect of restricted stock units | 252 | 472 | |||||||||
Weighted-average shares used to compute net (loss) income per share attributable to common stockholders, diluted | 83,853 | 91,877 | 44,972 | ||||||||
Net (loss) income per share attributable to common stockholders: | |||||||||||
Basic | $ (0.31) | $ (0.10) | $ 0.02 | $ (0.18) | $ 0.18 | $ 0.22 | $ 0.26 | $ 0.22 | $ (0.57) | $ 0.87 | $ 0.34 |
Diluted | $ (0.31) | $ (0.10) | $ 0.01 | $ (0.18) | $ 0.17 | $ 0.21 | $ 0.23 | $ 0.19 | $ (0.57) | $ 0.79 | $ 0.26 |
Net (Loss) Income per Share -_2
Net (Loss) Income per Share - Schedule of Potential Common Shares Excluded from the Computation of Diluted Net (Loss) Income Per Share Attributable to Common Stockholders (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Options to Purchase Common Stock | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Potential common shares excluded from computation of diluted net income per share | 4,641 | 2,213 | 2,281 |
Unvested Restricted Stock Units | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Potential common shares excluded from computation of diluted net income per share | 1,516 | 168 | 35 |
Segment Information - Additiona
Segment Information - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2019Segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 1 |
Segment Information - Summary o
Segment Information - Summary of Revenue Based on Customer's Location Determined by Customer's Shipping Address (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | $ 112,894 | $ 81,816 | $ 52,101 | $ 35,486 | $ 67,825 | $ 71,506 | $ 68,722 | $ 89,074 | $ 282,297 | $ 297,127 | $ 351,575 |
North America - United States | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | 103,451 | 104,124 | 143,540 | ||||||||
North America - Canada | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | 36,466 | 41,884 | 58,316 | ||||||||
North America | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | 139,917 | 146,008 | 201,856 | ||||||||
Latin America | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | 24,043 | 32,283 | 40,347 | ||||||||
Europe, Middle East and Africa - Germany | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | 13,773 | 45,864 | 13,396 | ||||||||
Europe, Middle East and Africa - Other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | 24,381 | 35,479 | 48,062 | ||||||||
Europe, Middle East and Africa | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | 38,154 | 81,343 | 61,458 | ||||||||
Asia-Pacific - Australia | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | 42,218 | 24,354 | 18,348 | ||||||||
Asia-Pacific - Other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | 37,965 | 13,139 | 29,566 | ||||||||
Asia-Pacific | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | $ 80,183 | $ 37,493 | $ 47,914 |
Segment Information - Summary_2
Segment Information - Summary of Revenue Based on Customer's Location Determined by Customer's Shipping Address (Parenthetical) (Details) | 12 Months Ended |
Dec. 31, 2019Country | |
Other than United States, Canada, Germany, and Australia | |
Segment Reporting Information [Line Items] | |
Number of countries represents 10% or more of total revenue | 0 |
Revenue | Geographic Concentration Risk | |
Segment Reporting Information [Line Items] | |
Concentration risk percentage | 10.00% |
Segment Information - Schedule
Segment Information - Schedule of Property and Equipment, Net by Location (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Segment Reporting Information [Line Items] | ||
Property and equipment, net | $ 35,910 | $ 29,879 |
United States | ||
Segment Reporting Information [Line Items] | ||
Property and equipment, net | 25,583 | 25,088 |
China | ||
Segment Reporting Information [Line Items] | ||
Property and equipment, net | 3,277 | 2,623 |
Australia | ||
Segment Reporting Information [Line Items] | ||
Property and equipment, net | 4,041 | |
Other | ||
Segment Reporting Information [Line Items] | ||
Property and equipment, net | $ 3,009 | $ 2,168 |
Related Parties - Additional In
Related Parties - Additional Information (Details) | 1 Months Ended | 12 Months Ended | ||
Mar. 31, 2012Occasion | Dec. 31, 2019USD ($)shares | Dec. 31, 2018USD ($)shares | Dec. 31, 2017USD ($) | |
Consulting Agreement for Provision of Sales Management, Corporate Strategy and Advisory Services | Bill Styslinger Services as Non-Employee Director | ||||
Related Party Transaction [Line Items] | ||||
Amounts due to Mr. Styslinger | $ 0 | $ 14,000 | ||
Liberty Global Affiliates | ||||
Related Party Transaction [Line Items] | ||||
Revenue from transactions with Liberty Global Affiliates | 22,252,000 | $ 39,370,000 | ||
Amounts received in cash from Liberty Global Affiliates | 30,432,000 | 38,273,000 | ||
Bill Styslinger | Consulting Agreement for Provision of Sales Management, Corporate Strategy and Advisory Services | ||||
Related Party Transaction [Line Items] | ||||
Consulting agreement, initial expiration date | Jan. 31, 2014 | |||
Consulting agreement, extended term, number of occasions | Occasion | 2 | |||
Consulting agreement, extended expiration date | Dec. 31, 2016 | |||
Dividends paid | 0 | 0 | 1,075,000 | |
Selling, general and administrative expenses recognized | 205,000 | 205,000 | ||
Rongke Xie | ||||
Related Party Transaction [Line Items] | ||||
Compensation paid | 117,000 | 143,000 | $ 160,000 | |
Rongke Xie | Restricted Stock Units | ||||
Related Party Transaction [Line Items] | ||||
Selling, general and administrative expenses recognized | 46,000 | 13,000 | ||
Aggregate fair value vested | $ 100,000 | $ 100,000 | ||
Vesting period | 4 years | |||
Number of shares granted | shares | 8 | 5 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) | 1 Months Ended | 12 Months Ended | ||
Jul. 03, 2019lawsuit | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Commitments And Contingencies Disclosure [Line Items] | ||||
Accrued contingency | $ 0 | |||
Rent expense | 2,459,000 | $ 1,029,000 | $ 933,000 | |
Deferred rent liability | 212,000 | 184,000 | ||
Indemnification obligations material claims, outstanding | $ 0 | $ 0 | ||
Number of lawsuits | lawsuit | 2 | |||
United States | ||||
Commitments And Contingencies Disclosure [Line Items] | ||||
Non-cancelable operating leases expiration year | 2023 | |||
China | ||||
Commitments And Contingencies Disclosure [Line Items] | ||||
Non-cancelable operating leases expiration year | 2023 | |||
Hong Kong | ||||
Commitments And Contingencies Disclosure [Line Items] | ||||
Non-cancelable operating leases expiration year | 2023 | |||
Spain | ||||
Commitments And Contingencies Disclosure [Line Items] | ||||
Non-cancelable operating leases expiration year | 2023 | |||
United Kingdom | ||||
Commitments And Contingencies Disclosure [Line Items] | ||||
Non-cancelable operating leases expiration year | 2023 | |||
Australia | ||||
Commitments And Contingencies Disclosure [Line Items] | ||||
Non-cancelable operating leases expiration year | 2023 | |||
Ireland | ||||
Commitments And Contingencies Disclosure [Line Items] | ||||
Non-cancelable operating leases expiration year | 2026 | |||
Termination period of lease | 2021 |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule of Future Minimum Lease Payments under Non-cancelable Operating Leases (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
2020 | $ 2,723 |
2021 | 1,488 |
2022 | 114 |
2023 | 5 |
Total | $ 4,330 |
Employee Benefit Plan - Additio
Employee Benefit Plan - Additional Information (Details) - USD ($) $ in Thousands | Jan. 01, 2014 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Defined Contribution Plan Disclosure [Line Items] | ||||
Percentage by which employer contribution matches up to 6% of employee's contribution | 50.00% | |||
Employer matching contributions made to plan | $ 1,762 | $ 1,630 | $ 1,484 | |
Maximum | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Percentage of employee's contributions eligible for employer contribution match | 6.00% |
Selected Quarterly Financial _3
Selected Quarterly Financial Information (Unaudited) - Schedule of Unaudited Quarterly Consolidated Statements of (Loss) Income (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenue: | |||||||||||
Total revenue | $ 112,894 | $ 81,816 | $ 52,101 | $ 35,486 | $ 67,825 | $ 71,506 | $ 68,722 | $ 89,074 | $ 282,297 | $ 297,127 | $ 351,575 |
Cost of revenue: | |||||||||||
Total cost of revenue | 53,378 | 42,602 | 12,796 | 10,989 | 18,146 | 14,575 | 19,321 | 27,119 | 119,765 | 79,161 | 93,511 |
Gross profit | 59,516 | 39,214 | 39,305 | 24,497 | 49,679 | 56,931 | 49,401 | 61,955 | 162,532 | 217,966 | 258,064 |
Operating expenses: | |||||||||||
Research and development | 22,508 | 24,158 | 18,260 | 18,405 | 17,345 | 16,403 | 16,696 | 20,530 | 83,331 | 70,974 | 60,677 |
Selling, general and administrative | 27,002 | 23,823 | 17,302 | 20,193 | 15,502 | 17,905 | 16,163 | 18,456 | 88,320 | 68,026 | 61,165 |
Total operating expenses | 49,510 | 47,981 | 35,562 | 38,598 | 32,847 | 34,308 | 32,859 | 38,986 | 171,651 | 139,000 | 121,842 |
(Loss) income from operations | 10,006 | (8,767) | 3,743 | (14,101) | 16,832 | 22,623 | 16,542 | 22,969 | (9,119) | 78,966 | 136,222 |
Other income (expense), net | (3,535) | (5,343) | (3,010) | (3,408) | (3,578) | (2,731) | (3,319) | (3,400) | (15,296) | (13,028) | (13,404) |
(Loss) income before provision for (benefit from) income taxes | 6,471 | (14,110) | 733 | (17,509) | 13,254 | 19,892 | 13,223 | 19,569 | (24,415) | 65,938 | 122,818 |
Provision for (benefit from) income taxes | 32,131 | (5,612) | (558) | (2,170) | (1,662) | 995 | (8,194) | 1,793 | 23,791 | (7,068) | 34,318 |
Net (loss) income | $ (25,660) | $ (8,498) | $ 1,291 | $ (15,339) | $ 14,916 | $ 18,897 | $ 21,417 | $ 17,776 | $ (48,206) | $ 73,006 | $ 88,500 |
Net (loss) income per share attributable to common stockholders: | |||||||||||
Basic | $ (0.31) | $ (0.10) | $ 0.02 | $ (0.18) | $ 0.18 | $ 0.22 | $ 0.26 | $ 0.22 | $ (0.57) | $ 0.87 | $ 0.34 |
Diluted | $ (0.31) | $ (0.10) | $ 0.01 | $ (0.18) | $ 0.17 | $ 0.21 | $ 0.23 | $ 0.19 | $ (0.57) | $ 0.79 | $ 0.26 |
Product | |||||||||||
Revenue: | |||||||||||
Total revenue | $ 101,182 | $ 71,319 | $ 42,223 | $ 26,653 | $ 57,446 | $ 60,817 | $ 58,537 | $ 80,189 | $ 241,377 | $ 256,989 | $ 311,896 |
Cost of revenue: | |||||||||||
Total cost of revenue | 52,076 | 40,578 | 10,976 | 9,429 | 16,738 | 13,272 | 18,560 | 25,780 | 113,059 | 74,350 | 88,538 |
Service | |||||||||||
Revenue: | |||||||||||
Total revenue | 11,712 | 10,497 | 9,878 | 8,833 | 10,379 | 10,689 | 10,185 | 8,885 | 40,920 | 40,138 | 39,679 |
Cost of revenue: | |||||||||||
Total cost of revenue | $ 1,302 | $ 2,024 | $ 1,820 | $ 1,560 | $ 1,408 | $ 1,303 | $ 761 | $ 1,339 | $ 6,706 | $ 4,811 | $ 4,973 |
Selected Quarterly Financial _4
Selected Quarterly Financial Information (Unaudited) - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Dec. 31, 2019 | Dec. 31, 2019 | |
Selected Quarterly Financial Information [Abstract] | ||
Net loss primarily due to change in valuation allowance against U.S deferred tax assets | $ 35,198 | $ 35,198 |