Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2022 | Apr. 22, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2022 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | CASA | |
Entity Registrant Name | Casa Systems, Inc. | |
Entity Central Index Key | 0001333835 | |
Current Fiscal Year End Date | --12-31 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Shell Company | false | |
Entity Small Business | false | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity File Number | 001-38324 | |
Entity Tax Identification Number | 75-3108867 | |
Entity Incorporation, State or Country Code | DE | |
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 | |
Entity Common Stock, Shares Outstanding | 94,180,160 | |
Title of 12(b) Security | Common Stock, $0.001 par value per share | |
Security Exchange Name | NASDAQ |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 168,580 | $ 154,703 |
Accounts receivable, net of provision for doubtful accounts of $370 and $117 as of March 31, 2022 and December 31, 2021, respectively | 48,106 | 85,774 |
Inventory | 85,284 | 84,828 |
Prepaid expenses and other current assets | 6,052 | 5,746 |
Prepaid income taxes | 2,627 | 23,963 |
Total current assets | 310,649 | 355,014 |
Property and equipment, net | 22,360 | 23,508 |
Accounts receivable, net of current portion | 57 | 115 |
Deferred tax assets | 108 | 101 |
Goodwill | 50,177 | 50,177 |
Intangible assets, net | 29,615 | 31,144 |
Other assets | 8,552 | 8,648 |
Total assets | 421,518 | 468,707 |
Current liabilities: | ||
Accounts payable | 14,031 | 28,087 |
Accrued expenses and other current liabilities | 27,507 | 41,382 |
Accrued income taxes | 11,320 | 4,991 |
Deferred revenue | 19,139 | 14,473 |
Current portion of long-term debt, net of unamortized debt issuance costs | 1,927 | 1,924 |
Total current liabilities | 73,924 | 90,857 |
Accrued income taxes, net of current portion | 10,389 | 7,732 |
Deferred tax liabilities | 5,666 | 5,293 |
Deferred revenue, net of current portion | 6,474 | 7,012 |
Long-term debt, net of current portion and unamortized debt issuance costs | 273,710 | 274,193 |
Other liabilities, net of current portion | 1,774 | 1,701 |
Total liabilities | 371,937 | 386,788 |
Commitments and contingencies (Note 16) | ||
Stockholders’ equity: | ||
Preferred stock, $0.001 par value; 5,000 shares authorized as of March 31, 2022 and December 31, 2021; no shares issued and outstanding as of March 31, 2022 and December 31, 2021 | ||
Common stock, $0.001 par value; 500,000 shares authorized; 88,452 and 87,815 shares issued as of March 31, 2022 and December 31, 2021, respectively; 84,855 and 84,422 shares outstanding as of March 31, 2022 and December 31, 2021, respectively | 88 | 88 |
Treasury stock, at cost; 3,597 and 3,393 shares as of March 31, 2022 and December 31, 2021, respectively | (14,837) | (13,645) |
Additional paid-in capital | 194,973 | 193,654 |
Accumulated other comprehensive income | 997 | 878 |
Accumulated deficit | (131,640) | (99,056) |
Total stockholders’ equity | 49,581 | 81,919 |
Total liabilities and stockholders’ equity | $ 421,518 | $ 468,707 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Statement Of Financial Position [Abstract] | ||
Provision for doubtful accounts | $ 370 | $ 117 |
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 | 88,452,000 | 87,815,000 |
Common stock, shares outstanding | 84,855,000 | 84,422,000 |
Treasury stock, shares | 3,597,000 | 3,393,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Revenue: | ||
Total revenue | $ 64,399 | $ 104,277 |
Cost of revenue: | ||
Total cost of revenue | 37,720 | 48,237 |
Gross profit | 26,679 | 56,040 |
Operating expenses: | ||
Research and development | 22,673 | 21,606 |
Selling, general and administrative | 22,329 | 21,880 |
Total operating expenses | 45,002 | 43,486 |
(Loss) income from operations | (18,323) | 12,554 |
Other income (expense): | ||
Interest income | 34 | 114 |
Interest expense | (3,688) | (3,918) |
Loss on foreign currency, net | (273) | (747) |
Other income, net | 18 | 72 |
Total other income (expense), net | (3,909) | (4,479) |
(Loss) income before provision for income taxes | (22,232) | 8,075 |
Provision for income taxes | 10,352 | 2,326 |
Net (loss) income | (32,584) | 5,749 |
Other comprehensive income (loss) —foreign currency translation adjustment, net of tax | 119 | (336) |
Comprehensive (loss) income | $ (32,465) | $ 5,413 |
Net (loss) income per share attributable to common stockholders: | ||
Basic | $ (0.39) | $ 0.07 |
Diluted | $ (0.39) | $ 0.06 |
Weighted-average shares used to compute net (loss) income per share attributable to common stockholders: | ||
Basic | 84,583 | 84,242 |
Diluted | 84,583 | 88,568 |
Product | ||
Revenue: | ||
Total revenue | $ 52,545 | $ 93,798 |
Cost of revenue: | ||
Total cost of revenue | 36,228 | 47,026 |
Service | ||
Revenue: | ||
Total revenue | 11,854 | 10,479 |
Cost of revenue: | ||
Total cost of revenue | $ 1,492 | $ 1,211 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Treasury Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit |
Balances at Dec. 31, 2020 | $ 76,374 | $ 85 | $ 183,041 | $ 337 | $ (102,263) | |
Balances, shares at Dec. 31, 2020 | 85,329 | |||||
Balance Treasury, shares at Dec. 31, 2020 | 1,722 | |||||
Balance Treasury at Dec. 31, 2020 | $ (4,826) | |||||
Exercise of stock options and common stock issued upon vesting of equity awards, net of shares withheld for employee taxes | (4,057) | $ 1 | (4,058) | |||
Exercise of stock options and common stock issued upon vesting of equity awards, net of shares withheld for employee taxes, shares | 1,173 | |||||
Foreign currency translation adjustment | (336) | (336) | ||||
Stock-based compensation | 3,105 | 3,105 | ||||
Net income (loss) | 5,749 | 5,749 | ||||
Balances at Mar. 31, 2021 | 80,835 | $ 86 | 182,088 | 1 | (96,514) | |
Balances, shares at Mar. 31, 2021 | 86,502 | |||||
Balance Treasury, shares at Mar. 31, 2021 | 1,722 | |||||
Balance Treasury at Mar. 31, 2021 | $ (4,826) | |||||
Balances at Dec. 31, 2021 | $ 81,919 | $ 88 | 193,654 | 878 | (99,056) | |
Balances, shares at Dec. 31, 2021 | 87,815 | |||||
Balance Treasury, shares at Dec. 31, 2021 | 3,393 | 3,393 | ||||
Balance Treasury at Dec. 31, 2021 | $ 13,645 | $ (13,645) | ||||
Exercise of stock options and common stock issued upon vesting of equity awards, net of shares withheld for employee taxes | (1,412) | (1,412) | ||||
Exercise of stock options and common stock issued upon vesting of equity awards, net of shares withheld for employee taxes, shares | 637 | |||||
Foreign currency translation adjustment | 119 | 119 | ||||
Repurchases of treasury shares | (1,192) | $ (1,192) | ||||
Repurchases of treasury shares, shares | 204 | |||||
Stock-based compensation | 2,731 | 2,731 | ||||
Net income (loss) | (32,584) | (32,584) | ||||
Balances at Mar. 31, 2022 | $ 49,581 | $ 88 | $ 194,973 | $ 997 | $ (131,640) | |
Balances, shares at Mar. 31, 2022 | 88,452 | |||||
Balance Treasury, shares at Mar. 31, 2022 | 3,597 | 3,597 | ||||
Balance Treasury at Mar. 31, 2022 | $ 14,837 | $ (14,837) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | ||
Operating activities: | |||
Net income (loss) | $ (32,584) | $ 5,749 | |
Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 3,615 | 4,209 | |
Stock-based compensation | 2,628 | 3,453 | |
Deferred income taxes | 369 | 138 | |
Increase in provision for doubtful accounts | 253 | 91 | |
Change in provision for excess and obsolete inventory | (27) | 113 | |
Changes in operating assets and liabilities: | |||
Accounts receivable | 37,487 | 469 | |
Inventory | (514) | 4,558 | |
Prepaid expenses and other assets | (205) | (5,834) | |
Prepaid income taxes | 21,333 | (680) | |
Accounts payable | (13,661) | (15,607) | |
Accrued expenses and other current liabilities | (13,707) | (10,118) | |
Accrued income taxes | 8,985 | 2,225 | |
Deferred revenue | 4,125 | 6,079 | |
Net cash provided by (used in) operating activities | 18,097 | (5,155) | |
Investing activities: | |||
Purchases of property and equipment | (962) | (852) | |
Purchases of software licenses | (4) | (1,400) | |
Net cash used in investing activities | (966) | (2,252) | |
Financing activities: | |||
Principal repayments of debt | (750) | (750) | |
Proceeds from exercise of stock options | 79 | 574 | |
Employee taxes paid related to net share settlement of equity awards | (1,490) | (4,630) | |
Payments of dividends and equitable adjustments | (1) | (13) | |
Repurchases of common stock | (1,192) | ||
Net cash used in financing activities | (3,354) | (4,819) | |
Effect of exchange rate changes on cash and cash equivalents | 100 | (266) | |
Net increase (decrease) in cash, cash equivalents and restricted cash | 13,877 | (12,492) | |
Cash, cash equivalents and restricted cash at beginning of period | 157,804 | 158,461 | |
Cash, cash equivalents and restricted cash at end of period | [1] | 171,681 | 145,969 |
Supplemental disclosures of cash flow information: | |||
Cash paid for interest | 3,478 | 3,682 | |
Cash paid for income taxes | 1,806 | 290 | |
Supplemental disclosures of non-cash operating, investing and financing activities: | |||
Purchases of property and equipment included in accounts payable | $ 60 | 325 | |
Unpaid equitable adjustments included in accrued expenses and other current liabilities | 50 | ||
Release of customer incentives included in accounts receivable and accrued expenses and other current liabilities | $ 1,076 | ||
[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 unaudited condensed consolidated statements of cash flows. |
Nature of Business and Basis of
Nature of Business and Basis of Presentation | 3 Months Ended |
Mar. 31, 2022 | |
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 physical, virtual and cloud-native 5G infrastructure and customer premise networking equipment solutions to help CSPs transform and expand their public and private high-speed data and multi-service communications networks so they can meet the growing demand for bandwidth and new services. The Company’s core and edge broadband technology enables CSPs and enterprises to cost-effectively and dynamically increase data network speed, add bandwidth capacity and new services, reduce network complexity and reduce operating and capital expenditures regardless of access technology. 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 CSP industry. These risks include, but are not limited to, the level of capital spending by CSPs, 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 CSPs 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. 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 Company’s 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 is required to adopt the new or revised standard at or prior to the time private companies are required to 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 condensed consolidated balance sheet as of March 31, 2022, the condensed consolidated statements of operations and comprehensive (loss) income for the three months ended March 31, 2022 and 2021, the condensed consolidated statements of cash flows for the three months ended March 31, 2022 and 2021 and the condensed consolidated statements of stockholders’ equity for the three months ended March 31, 2022 and 2021 are unaudited. The financial data and other information disclosed in these notes related to the three months ended March 31, 2022 and 2021 are also unaudited. The accompanying condensed consolidated balance sheet as of December 31, 2021 was derived from the Company’s audited consolidated financial statements for the year ended December 31, 2021 included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on February 25, 2022 (the “Annual Report on Form 10-K”). The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) regarding interim financial reporting. Certain information and note disclosures normally included in the consolidated financial statements prepared in accordance with GAAP have been condensed or omitted. Therefore, these condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in the Annual Report on Form 10-K. There have been no changes to the Company’s accounting policies from those disclosed in the Annual Report on Form 10-K that would have a material impact on the Company’s condensed consolidated financial statements. The unaudited interim condensed consolidated financial statements have been prepared on a basis consistent with that used to prepare the audited annual consolidated financial statements and, in the opinion of management, include all adjustments, consisting of only normal recurring adjustments, necessary for a fair statement of the financial position, results of operations and cash flows for the interim periods, but are not necessarily indicative of the results of operations and cash flows to be anticipated for the full year ending December 31, 2022 or any future period. The accompanying condensed consolidated financial statements 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 | 3 Months Ended |
Mar. 31, 2022 | |
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 condensed consolidated financial statements include revenue recognition, 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, the recoverability of net deferred tax assets, valuations of uncertain tax positions, warranty allowances, the valuation of 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. The COVID-19 pandemic presents various risks to the Company, which could continue to have a material effect upon the estimates and judgments relied upon by management in preparing these condensed consolidated financial statements. While the Company remains fully operational, during the three months ended March 31, 2022, the effects of the COVID-19 pandemic on the global supply chain had a significant adverse effect on the Company’s financial results. In particular, certain of the Company’s products utilize components, whose availability was significantly exceeded by global demand. As a result, during the three months ended March 31, 2022, the Company continued to see shortages of supply that resulted in the Company’s inability to fulfill certain customer orders within normal lead times. This adversely impacted the Company’s revenue and operating results for the three months ended March 31, 2022. Additionally, shipping bottlenecks and delays negatively affected the Company’s ability to timely fulfill customer orders, thereby delaying its ability to consummate sales and recognize revenue. The Company also experienced, in some cases, significant increases in shipping costs. While the Company continues to work with its supply chain, contract manufacturers, logistics partners, and customers to minimize the extent of such impacts, the Company expects the effects of global supply chain issues to continue and cannot predict when such effects will subside. This may prevent the Company from being able to fulfill its customers’ orders in a timely manner or at all, which could lead to one or more of its customers cancelling their orders. At this time the Company is neither able to estimate the extent of these impacts nor predict whether its efforts to minimize or contain them will be successful. The Company intends to continue to monitor its business very closely for any effects of COVID-19 for as long as necessary. Subsequent Event Considerations The Company considers events or transactions that occur after the balance sheet date but prior to the issuance of the financial statements to provide additional evidence for certain estimates or to identify matters that require additional disclosure. Subsequent events have been evaluated as required. Other than the agreement with Verizon Ventures LLC, as discussed in Note 17, Subsequent Events, the Company has evaluated all subsequent events and determined that there are no additional material recognized or unrecognized subsequent events requiring disclosure in these condensed consolidated financial statements. 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 March 31, 2022 and December 31, 2021, the Company’s cash and cash equivalents consisted of investments in money market mutual funds. Restricted cash as of March 31, 2022 and December 31, 2021 consisted of a certificate of deposit of $1,001, pledged as collateral for a stand-by letter of credit required to support a contractual obligation. Restricted cash also included cash of $2,100 pledged as collateral in connection with five and two letters of credit to support contractual obligations at March 31, 2022 and December 31, 2021, respectively. The following table is a reconciliation of cash, cash equivalents and restricted cash included in the accompanying condensed consolidated balance sheets that sum to the total cash, cash equivalents and restricted cash included in the accompanying condensed consolidated statements of cash flows: March 31, 2022 March 31, 2021 Cash and cash equivalents $ 168,580 $ 144,961 Restricted cash included in other assets 3,101 1,008 $ 171,681 $ 145,969 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 customer contracts with customary payment terms, which are one year or less, are recorded at invoiced amounts and do not bear interest. The Company may, in limited circumstances, grant payment terms longer than one year. Payments due beyond 12 months from the balance sheet date are recorded as non-current assets. 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. Accounts receivable as of March 31, 2022 and December 31, 2021 consisted of the following: March 31, 2022 December 31, 2021 Current portion of accounts receivable, net: Accounts receivable, net $ 48,029 $ 85,689 Accounts receivable, extended payment terms 77 85 48,106 85,774 Accounts receivable, net of current portion: Accounts receivable, extended payment terms 57 115 $ 48,163 $ 85,889 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 customer, 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 condensed consolidated statements of operations and comprehensive (loss) income. As of March 31, 2022 and December 31, 2021, the Company concluded that all amounts due under extended payment terms were collectible and no reserve for credit losses was recorded. During the three months ended March 31, 2022 and 2021, the Company did not provide a reserve for credit losses and did not write off any uncollectible receivables due under extended payment terms. 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, 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. The Company grants credit to customers in the ordinary course of business. Credit evaluations are performed on an ongoing basis to reduce credit risk, and no collateral is required from the Company’s customers. An allowance for uncollectible accounts is provided for those accounts receivable considered to be uncollectible based upon historical experience and credit evaluation. Due to these factors, no additional losses beyond the amounts provided for collection losses is believed by management to be probable in the Company’s 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 Three Months Ended March 31, As of As of 2022 2021 March 31, 2022 December 31, 2021 Customer A 14 % * * * Customer B 10 % * * * Customer C 10 % * * * Customer D * 19 % * 21 % Customer E * 18 % * * Customer F * * * 19 % Customer G * * * 10 % * Less than 10% of total Certain of the components and subassemblies included in the Company’s products are obtained and manufactured from a single source or a limited group of suppliers. Although the Company seeks to reduce dependence on those single or limited source suppliers, 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. Impact of Recently Adopted Accounting Standards In October 2021, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Codification Update (“ASU”) 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers Impact of Recently Issued Accounting Standards In February 2016, the FASB, issued ASU 2016-02, Leases Amendments to FASB Accounting Standards Codification In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments Financial Instruments – Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842) using a modified retrospective approach. The Company is currently evaluating the impact ASU 2016-13 will have on its consolidated financial statements. Other Other than the disclosures above, there have been no changes to the significant accounting policies disclosed in Note 2 “Summary of Significant Accounting Policies” to the Company’s consolidated financial statements included in the Annual Report on Form 10-K for the fiscal year ended December 31, 2021. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Mar. 31, 2022 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | 3. Goodwill and Intangible Assets Intangible assets, net consisted of intangible assets resulting from the acquisition of NetComm and purchased software to be used in the Company’s products . Intangible assets, net consisted of the following at March 31, 2022 and December 31, 2021, respectively: Cost Accumulated Amortization Net Balance Developed Technology $ 25,000 $ (9,823 ) $ 15,177 Customer Relationships 18,000 (4,950 ) 13,050 Trade Name 1,000 (917 ) 83 Purchased software 1,836 (531 ) 1,305 Totals as of March 31, 2022 $ 45,836 $ (16,221 ) $ 29,615 Cost Accumulated Amortization Net Balance Developed Technology $ 25,000 $ (8,930 ) $ 16,070 Customer Relationships 18,000 (4,500 ) 13,500 Trade Name 1,000 (830 ) 170 Purchased software 1,832 (428 ) 1,404 Totals as of December 31, 2021 $ 45,832 $ (14,688 ) $ 31,144 As of March 31, 2022, amortization expense on existing intangible assets for the next five years and beyond is as follows: Year Ending December 31, Remainder of 2022 $ 4,430 2023 5,766 2024 5,662 2025 5,651 2026 3,606 Thereafter 4,500 $ 29,615 A summary of amortization expense recorded during the three months ended March 31, 2022 and 2021 is as follows: Three Months Ended March 31, 2022 2021 Product cost of revenue $ 893 $ 893 Research and development 103 82 Selling, general and administrative 537 533 Totals $ 1,533 $ 1,508 The Company’s goodwill is the result of its acquisition of NetComm on July 1, 2019 and represents the excess of purchase price over the estimated fair value of net assets acquired. There has been no change to the $50,177 carrying amount of goodwill since December 31, 2021. |
Inventory
Inventory | 3 Months Ended |
Mar. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Inventory | 4. Inventory Inventory as of March 31, 2022 and December 31, 2021 March 31, 2022 December 31, 2021 Raw materials $ 59,467 $ 53,934 Finished goods: Manufactured finished goods 24,995 29,597 Deferred inventory costs 822 1,297 $ 85,284 $ 84,828 |
Property and Equipment
Property and Equipment | 3 Months Ended |
Mar. 31, 2022 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment | 5 . Property and Equipment Property and equipment as of March 31, 2022 and December 31, 2021 consisted of the following: March 31, 2022 December 31, 2021 Computers and purchased software $ 25,585 $ 25,775 Leasehold improvements 4,260 4,198 Furniture and fixtures 2,673 2,672 Machinery and equipment 36,295 37,325 Land 3,091 3,091 Building 4,765 4,765 Building improvements 7,285 7,291 Trial systems at customers’ sites 3,384 3,848 87,338 88,965 Less: Accumulated depreciation and amortization (64,978 ) (65,457 ) $ 22,360 $ 23,508 During the three months ended March 31, 2022 and 2021, the Company transferred trial systems into inventory from property and equipment with values of $464 and $661, respectively, net of transfers of trial systems to cost of revenue. In addition, the Company transferred $662 and $23 of equipment into inventory from property and equipment during the three months ended March 31, 2022 and 2021, respectively. D epreciation and amortization expense on property and equipment totaled $2,082 and $2,701 for the three months ended March 31, 2022 and 2021, respectively. |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 3 Months Ended |
Mar. 31, 2022 | |
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 March 31, 2022 and December 31, 2021 consisted of the following: March 31, 2022 December 31, 2021 Accrued compensation and related taxes $ 13,976 $ 21,751 Accrued warranty 2,262 2,392 Inventory-related accruals 3,660 8,391 Other accrued expenses 7,609 8,848 $ 27,507 $ 41,382 Accrued Warranty Substantially all of the Company’s products are covered by warranties 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 condensed 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 three months ended March 31, 2022 and 2021 is as follows: Three Months Ended March 31, 2022 2021 Warranty reserve at beginning of period $ 2,392 $ 2,354 Provisions 387 866 Charges (517 ) (757 ) Warranty reserve at end of period $ 2,262 $ 2,463 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 7. Fair Value Measurements The following tables present information about the fair value of the Company’s financial assets and liabilities as of March 31, 2022 and December 31, 2021 and indicate the level of the fair value hierarchy utilized to determine such fair values: Fair Value Measurements as of March 31, 2022 Using: Level 1 Level 2 Level 3 Total Assets: Certificates of deposit—restricted cash $ — $ 1,001 $ — $ 1,001 Money market mutual funds 135,084 — — 135,084 $ 135,084 $ 1,001 $ — $ 136,085 Liabilities: Stock Appreciation Rights ("SARs") $ — $ — $ 255 $ 255 $ — $ — $ 255 $ 255 Fair Value Measurements as of December 31, 2021 Using: Level 1 Level 2 Level 3 Total Assets: Certificates of deposit—restricted cash $ — $ 1,001 $ — $ 1,001 Money market mutual funds 93,792 — — 93,792 Foreign currency forward contract $ — 5 — 5 $ 93,792 $ 1,006 $ — $ 94,798 Liabilities: SARs $ — $ — $ 358 $ 358 $ — $ — $ 358 $ 358 During the three months ended March 31, 2022 and 2021, there were no There were no changes to the valuation techniques used to measure asset and liability fair values on a recurring basis during the three months ended March 31, 2022 from those included in the Company’s consolidated financial statements for the year ended December 31, 2021. 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: Three Months Ended March 31, 2022 2021 Fair value at beginning of period $ 358 $ 493 Change in fair value (103 ) 347 Exercises — (135 ) Fair value at end of period $ 255 $ 705 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 8. Income Taxes The Company’s effective income tax rate was (46.6)% and 28.8% for the three months ended March 31, 2022 and 2021, respectively. The provision for income taxes was $10,352 and $2,326 for the three months ended March 31, 2022 and 2021, respectively. The change in the provision for income taxes was primarily due to a new requirement to capitalize and amortize all research and experimentation expenditures for U.S. tax purposes, which became effective under the Tax Cuts and Jobs Act (“TCJA”) as of January 1, 2022. This new requirement results in significant forecasted U.S. income tax for the year and the corresponding deferred tax asset created is offset by a full valuation allowance. The change in the provision for income taxes was also impacted by changes in the jurisdictional mix of earnings period over period. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Debt | 9. Debt 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 (the “Term Loan”) and (ii) a revolving credit facility of up to $25,000 in revolving credit loans and letters of credit, which matured on December 20, 2021. Current and non-current debt obligations reflected in the condensed consolidated balance sheets as of March 31, 2022 and December 31, 2021 consisted of the following: March 31, December 31, 2022 2021 Current liabilities: Term loan $ 3,000 $ 3,000 Current portion of principal payment obligations 3,000 3,000 Unamortized debt issuance costs, current portion (1,073 ) (1,076 ) Current portion of long-term debt, net of unamortized debt issuance costs $ 1,927 $ 1,924 Non-current liabilities: Term loan $ 274,475 $ 275,225 Unamortized debt issuance costs, non-current portion (765 ) (1,032 ) Long-term debt, net of current portion and unamortized debt issuance costs $ 273,710 $ 274,193 As of March 31, 2022, aggregate minimum future principal payments of the Company’s debt are summarized as follows: Year Ending December 31, Remainder of 2022 $ 2,250 2023 275,225 Thereafter — $ 277,475 As of March 31, 2022 and December 31, 2021, $277,475 and $278,225 in principal amount, respectively, were outstanding under the Term Loan. Borrowings under the Term Loan 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 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. The interest rate payable under the Term Loan is 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 breakage costs if the conversion is effected prior to the end of the applicable interest period. As of March 31, 2022 and December 31, 2021, the interest rate on the Term Loans was 5.00% per annum, which was based on one-month Eurodollar rates, at the applicable floor of 1.00% per annum plus the applicable margin of 4.00% per annum for Eurodollar rate loans. Upon entering into the Term Loan, 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. The Company made principal payments of $750 during each of the three months ended March 31, 2022 and 2021 under the Term Loan. Interest expense for the Term Loan, including the amortization of debt issuance costs, totaled $3,777 and $3,869 for the three months ended March 31, 2022 and 2021, respectively. The Term Loan matures on December 20, 2023 and is 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 Loan of $300,000, with the remaining outstanding balance payable at the date of maturity. Voluntary prepayments of principal amounts outstanding under the Term Loan 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. In addition, the Company is required to make mandatory prepayments under the Term Loan 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 Term Loan is 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 Term Loan contains customary affirmative and negative covenants, including certain restrictions, such as the Company’s ability to pay dividends, certain of which are based upon the Company’s total net leverage ratio. The Company was in compliance with all covenants as of March 31, 2022 and December 31, 2021. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
Stockholders' Equity | 10. Stockholders’ Equity 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. The Company repurchased 205 shares, at a cost of $1,192, including commissions, during the three months ended March 31, 2022. There were no repurchases made during the three months ended March 31, 2021. As of March 31, 2022, $60,234 remained authorized for repurchases of the Company’s common stock under the stock repurchase program. The stock repurchase program has no expiration date and does not require the Company to purchase a minimum number of shares, and the Company may suspend, modify or discontinue the stock repurchase program at any time without prior notice. |
Stock-based Compensation
Stock-based Compensation | 3 Months Ended |
Mar. 31, 2022 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-based Compensation | 11. Stock-based Compensation 2017 Stock Incentive Plan The Company’s 2017 Stock Incentive Plan (the “2017 Plan”) provides for the Company to sell or issue common stock or restricted common stock, or to grant qualified incentive stock options, nonqualified stock options, SARs, performance-based restricted stock units (“PSUs”), RSUs or other stock-based awards to the Company’s employees, officers, directors, advisors and outside consultants. The total number of shares authorized for issuance under the 2017 Plan was 19,842 shares as of , of which 9,650 shares remained available for future grant. Stock Options A summary of stock option activity for the three months ended March 31, 2022 is as follows Number of Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term Aggregate Intrinsic Value (in years) Outstanding at January 1, 2022 5,919 $ 8.82 4.36 $ 4,205 Granted 576 4.31 Exercised (33 ) 2.36 Forfeited (68 ) 9.35 Outstanding at March 31, 2022 6,394 $ 8.44 4.60 $ 1,708 Options exercisable at March 31, 2022 5,586 $ 8.94 3.89 $ 1,557 Vested or expected to vest at March 31, 2022 6,324 $ 8.48 4.54 $ 1,695 The fair value of each option is estimated on the date of grant using the Black-Scholes option-pricing model using the following assumptions: Three Months Ended March 31, 2022 2021 Risk-free interest rate 1.7%–2.0% 0.4% Expected term (in years) 6.1 6.1 Expected volatility 38.5%–38.7% 38.2% Expected dividend yield 0.0% 0.0% The weighted-average grant-date fair value of options granted during the three months ended March 31, 2022 and 2021 was $1.72 and $3.42 per share, respectively. Cash proceeds received upon the exercise of options were $79 and $574 during the three months ended March 31, 2022 and 2021, respectively. The intrinsic value of stock options exercised during the three months ended March 31, 2022 and 2021 was $76 and $805, 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 A summary of RSU activity for the three months ended March 31, 2022 is as follows: Number of Shares Weighted- Average Grant Date Fair Value Aggregate Fair Value Unvested balance at January 1, 2022 4,309 $ 6.34 Granted 24 4.18 Vested (922 ) 6.58 $ 4,339 Forfeited (54 ) 6.68 Unvested balance at March 31, 2022 3,357 $ 6.26 The Company withheld 318 and 593 Performance-Based Stock Units During the three months ended March 31, 2021, the Company granted PSUs to certain employees that vest over a three-year three-year Compensation expense is based on the estimated value of the awards on the grant date, and is recognized over the period from the grant date through the expected vest dates of each vesting condition, both of which were estimated based on a Monte Carlo simulation model applying the following key assumptions: Three Months Ended March 31, 2021 Risk-free interest rate 0.2% Volatility 78.6% Dividend yield 0.0% Cost of equity 12.0% There were no grants, vestings or forfeitures of PSUs during the three months ended March 31, 2022. 442 PSUs were unvested as of March 31, 2022 and January 1, 2022, with a weighted-average grant date fair value of $7.89. Stock Appreciation Rights Over time, the Company has granted SARs that allow the holder the right, upon exercise, to receive in cash the amount of the difference between the fair 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 SARs vested over a four-year Stock-Based Compensation Expense Stock-based compensation expense related to stock options, RSUs, SARs and PSUs for the three months ended March 31, 2022 and 2021 was classified in the condensed consolidated statements of operations and comprehensive (loss) income as follows: Three Months Ended March 31, 2022 2021 Cost of revenue $ 35 $ 33 Research and development expenses 595 871 Selling, general and administrative expenses 1,998 2,549 Total stock-based compensation $ 2,628 $ 3,453 The Company recognized stock-based compensation expense for the three months ended March 31, 2022 and 2021 in the condensed consolidated balance sheet as follows: Three Months Ended March 31, 2022 2021 Change in fair value of SAR Liability $ (103 ) $ 348 Recognized as additional paid-in capital 2,731 3,105 Total stock-based compensation $ 2,628 $ 3,453 As of March 31, 2022, there was $19,642 of unrecognized compensation cost related to outstanding stock options, RSUs, SARs and PSUs, which is expected to be recognized over a weighted-average period of 2.51 years. |
Net (Loss) Income per Share
Net (Loss) Income per Share | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Net (Loss) Income per Share | 12. Net (Loss) Income per Share Basic and diluted net (loss) income per share attributable to common stockholders was calculated as follows: Three Months Ended March 31, 2022 2021 Numerator: Net (loss) income attributable to common stockholders, basic and diluted $ (32,584 ) $ 5,749 Denominator: Weighted-average shares used to compute net (loss) income per share attributable to common stockholders, basic 84,583 84,242 Dilutive effect of stock options — 1,978 Dilutive effect of restricted stock units — 2,348 Weighted-average shares used to compute net (loss) income per share attributable to common stockholders, diluted 84,583 88,568 Net (loss) income per share attributable to common stockholders: Basic $ (0.39 ) $ 0.07 Diluted $ (0.39 ) $ 0.06 The following potential common shares 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: Three Months Ended March 31, 2022 2021 Options to purchase common stock 6,394 2,382 Unvested restricted stock units 3,357 1,221 Unvested performance-based stock units 442 — |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 3 Months Ended |
Mar. 31, 2022 | |
Revenue From Contract With Customer [Abstract] | |
Revenue from Contracts with Customers | 13. Revenue from Contracts with Customers Disaggregation of revenue The Company disaggregates its revenue by product and service in the condensed 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, summarized as follows: Three Months Ended March 31, 2022 2021 North America: U.S. $ 13,535 $ 36,912 Canada 15,759 26,238 Total North America 29,294 63,150 Europe, Middle East and Africa: 6,280 6,353 Asia-Pacific: Australia 16,518 23,398 Other 8,180 6,801 Total Asia-Pacific 24,698 30,199 Latin America 4,127 4,575 Total revenue (1) $ 64,399 $ 104,277 (1) Other than the U.S., Canada and Australia, no individual countries represented 10% or mor The Company also disaggregates its revenue based on product line summarized as follows: Three Months Ended March 31, 2022 2021 Product revenue: Wireless $ 21,056 $ 39,688 Fixed telco 11,715 14,885 Cable 19,774 39,225 Total product revenue 52,545 93,798 Service revenue: Wireless 1,475 591 Fixed telco 1,524 1,606 Cable 8,855 8,282 Total service revenue 11,854 10,479 Total revenue $ 64,399 $ 104,277 Costs to Obtain or Fulfill a Contract As of March 31, 2022 and December 31, 2021, the Company had short-term capitalized contract costs of $124 and $90, respectively, which are included in prepaid expenses and other current assets and had long-term capitalized contract costs of $64 and $58, respectively, which are included in other assets in the accompanying condensed consolidated balance sheets. During the three months ended March 31, 2022 and 2021, amortization expense associated with capitalized contract costs was $29 and $23, respectively, which was recorded to selling, general and administrative expenses in the accompanying condensed consolidated statements of operations and comprehensive (loss) income. 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 three months ended March 31, 2022, the Company recognized $5,636 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 March 31, 2022 and December 31, 2021, the Company included contract assets of $409 and $95, respectively. Transaction price allocated to the remaining performance obligations As of March 31, 2022, the aggregate remaining amount of revenue expected to be recognized related to unsatisfied or partially unsatisfied performance obligations was $25,613, which consists of deferred revenue. The Company expects approximately 75% of this amount to be recognized in the next twelve months with the remaining amount to be recognized over the next two to five years. Other Revenue Recognition Policies The Company’s customary payment terms are generally 90 days or less. 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 an appropriate discount rate and recognizes interest income separate from the revenue recognized on contracts with customers. During the three months ended March 31, 2022 and 2021, the Company recorded interest income of $5 and $6, |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Segment Information | 14. 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 condensed consolidated financial statements. The Company’s property and equipment, net by location was as follows: March 31, 2022 December 31, 2021 U.S. $ 16,473 $ 17,089 China 2,907 3,118 Australia 1,762 2,027 Other 1,218 1,274 Total property and equipment, net $ 22,360 $ 23,508 |
Related Parties
Related Parties | 3 Months Ended |
Mar. 31, 2022 | |
Related Party Transactions [Abstract] | |
Related Parties | 15. Related Parties Employment of Rongke Xie Rongke Xie, who serves as 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 $37 and $33 in total compensation during the three months ended March 31, 2022 and 2021, respectively, for her services as an employee. To date, the Company has granted to Rongke Xie 116 RSUs which vest over four annual periods. The grant-date fair value of the awards totaled $500, which is recorded as stock-based compensation expense over the vesting period of the awards. During the three months ended March 31, 2022 and 2021, the Company recognized selling, general and administrative expenses of $31 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2022 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 16. Commitments and Contingencies Indemnification The Company has, in the ordinary course of business, agreed to defend and indemnify certain customers against third-party claims asserting (i) infringement of certain intellectual property rights, which may include patents, copyrights, trademarks or trade secrets, and (ii) certain other harms caused by the acts or omissions of the Company. 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 March 31, 2022 and December 31, 2021, the Company had not experienced any material losses related to these indemnification obligations and no material claims were outstanding where a contingent loss was considered to be probable or reasonably estimable. 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 condensed consolidated financial statements. Litigation The complete response to this section regarding legal proceedings is incorporated by reference herein to Part II Item I in this 10-Q. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | 17. Subsequent Events Securities Purchase Agreement with Verizon Ventures LLC On April 18, 2022, the Company entered into a Securities Purchase Agreement (the “SPA”) with Verizon Ventures LLC providing for the private placement of an aggregate of 9,323 shares (the “Shares”) of the Company’s common stock, par value $0.001 per share, at a price of $4.24 per share, for an aggregate purchase price of approximately $39,530. The Company is required to prepare and file a resale registration statement with the Securities and Exchange Commission (the “SEC”) within 45 days of the closing of the SPA. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
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 condensed consolidated financial statements include revenue recognition, 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, the recoverability of net deferred tax assets, valuations of uncertain tax positions, warranty allowances, the valuation of 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. The COVID-19 pandemic presents various risks to the Company, which could continue to have a material effect upon the estimates and judgments relied upon by management in preparing these condensed consolidated financial statements. While the Company remains fully operational, during the three months ended March 31, 2022, the effects of the COVID-19 pandemic on the global supply chain had a significant adverse effect on the Company’s financial results. In particular, certain of the Company’s products utilize components, whose availability was significantly exceeded by global demand. As a result, during the three months ended March 31, 2022, the Company continued to see shortages of supply that resulted in the Company’s inability to fulfill certain customer orders within normal lead times. This adversely impacted the Company’s revenue and operating results for the three months ended March 31, 2022. Additionally, shipping bottlenecks and delays negatively affected the Company’s ability to timely fulfill customer orders, thereby delaying its ability to consummate sales and recognize revenue. The Company also experienced, in some cases, significant increases in shipping costs. While the Company continues to work with its supply chain, contract manufacturers, logistics partners, and customers to minimize the extent of such impacts, the Company expects the effects of global supply chain issues to continue and cannot predict when such effects will subside. This may prevent the Company from being able to fulfill its customers’ orders in a timely manner or at all, which could lead to one or more of its customers cancelling their orders. At this time the Company is neither able to estimate the extent of these impacts nor predict whether its efforts to minimize or contain them will be successful. The Company intends to continue to monitor its business very closely for any effects of COVID-19 for as long as necessary. |
Subsequent Event Considerations | Subsequent Event Considerations The Company considers events or transactions that occur after the balance sheet date but prior to the issuance of the financial statements to provide additional evidence for certain estimates or to identify matters that require additional disclosure. Subsequent events have been evaluated as required. Other than the agreement with Verizon Ventures LLC, as discussed in Note 17, Subsequent Events, the Company has evaluated all subsequent events and determined that there are no additional material recognized or unrecognized subsequent events requiring disclosure in these condensed consolidated financial statements. |
Cash, Cash Equivalents and 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 March 31, 2022 and December 31, 2021, the Company’s cash and cash equivalents consisted of investments in money market mutual funds. Restricted cash as of March 31, 2022 and December 31, 2021 consisted of a certificate of deposit of $1,001, pledged as collateral for a stand-by letter of credit required to support a contractual obligation. Restricted cash also included cash of $2,100 pledged as collateral in connection with five and two letters of credit to support contractual obligations at March 31, 2022 and December 31, 2021, respectively. The following table is a reconciliation of cash, cash equivalents and restricted cash included in the accompanying condensed consolidated balance sheets that sum to the total cash, cash equivalents and restricted cash included in the accompanying condensed consolidated statements of cash flows: March 31, 2022 March 31, 2021 Cash and cash equivalents $ 168,580 $ 144,961 Restricted cash included in other assets 3,101 1,008 $ 171,681 $ 145,969 |
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 customer contracts with customary payment terms, which are one year or less, are recorded at invoiced amounts and do not bear interest. The Company may, in limited circumstances, grant payment terms longer than one year. Payments due beyond 12 months from the balance sheet date are recorded as non-current assets. 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. Accounts receivable as of March 31, 2022 and December 31, 2021 consisted of the following: March 31, 2022 December 31, 2021 Current portion of accounts receivable, net: Accounts receivable, net $ 48,029 $ 85,689 Accounts receivable, extended payment terms 77 85 48,106 85,774 Accounts receivable, net of current portion: Accounts receivable, extended payment terms 57 115 $ 48,163 $ 85,889 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 customer, 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 condensed consolidated statements of operations and comprehensive (loss) income. As of March 31, 2022 and December 31, 2021, the Company concluded that all amounts due under extended payment terms were collectible and no reserve for credit losses was recorded. During the three months ended March 31, 2022 and 2021, the Company did not provide a reserve for credit losses and did not write off any uncollectible receivables due under extended payment terms. |
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, 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. The Company grants credit to customers in the ordinary course of business. Credit evaluations are performed on an ongoing basis to reduce credit risk, and no collateral is required from the Company’s customers. An allowance for uncollectible accounts is provided for those accounts receivable considered to be uncollectible based upon historical experience and credit evaluation. Due to these factors, no additional losses beyond the amounts provided for collection losses is believed by management to be probable in the Company’s 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 Three Months Ended March 31, As of As of 2022 2021 March 31, 2022 December 31, 2021 Customer A 14 % * * * Customer B 10 % * * * Customer C 10 % * * * Customer D * 19 % * 21 % Customer E * 18 % * * Customer F * * * 19 % Customer G * * * 10 % * Less than 10% of total Certain of the components and subassemblies included in the Company’s products are obtained and manufactured from a single source or a limited group of suppliers. Although the Company seeks to reduce dependence on those single or limited source suppliers, 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. |
Impact of Recently Adopted and Issued Accounting Standards | Impact of Recently Adopted Accounting Standards In October 2021, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Codification Update (“ASU”) 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers Impact of Recently Issued Accounting Standards In February 2016, the FASB, issued ASU 2016-02, Leases Amendments to FASB Accounting Standards Codification In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments Financial Instruments – Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842) using a modified retrospective approach. The Company is currently evaluating the impact ASU 2016-13 will have on its consolidated financial statements. |
Other | Other Other than the disclosures above, there have been no changes to the significant accounting policies disclosed in Note 2 “Summary of Significant Accounting Policies” to the Company’s consolidated financial statements included in the Annual Report on Form 10-K for the fiscal year ended December 31, 2021. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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 condensed consolidated balance sheets that sum to the total cash, cash equivalents and restricted cash included in the accompanying condensed consolidated statements of cash flows: March 31, 2022 March 31, 2021 Cash and cash equivalents $ 168,580 $ 144,961 Restricted cash included in other assets 3,101 1,008 $ 171,681 $ 145,969 |
Schedule of Accounts Receivable | Accounts receivable as of March 31, 2022 and December 31, 2021 consisted of the following: March 31, 2022 December 31, 2021 Current portion of accounts receivable, net: Accounts receivable, net $ 48,029 $ 85,689 Accounts receivable, extended payment terms 77 85 48,106 85,774 Accounts receivable, net of current portion: Accounts receivable, extended payment terms 57 115 $ 48,163 $ 85,889 |
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 Three Months Ended March 31, As of As of 2022 2021 March 31, 2022 December 31, 2021 Customer A 14 % * * * Customer B 10 % * * * Customer C 10 % * * * Customer D * 19 % * 21 % Customer E * 18 % * * Customer F * * * 19 % Customer G * * * 10 % * Less than 10% of total |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets Net | Intangible assets, net consisted of intangible assets resulting from the acquisition of NetComm and purchased software to be used in the Company’s products . Intangible assets, net consisted of the following at March 31, 2022 and December 31, 2021, respectively: Cost Accumulated Amortization Net Balance Developed Technology $ 25,000 $ (9,823 ) $ 15,177 Customer Relationships 18,000 (4,950 ) 13,050 Trade Name 1,000 (917 ) 83 Purchased software 1,836 (531 ) 1,305 Totals as of March 31, 2022 $ 45,836 $ (16,221 ) $ 29,615 Cost Accumulated Amortization Net Balance Developed Technology $ 25,000 $ (8,930 ) $ 16,070 Customer Relationships 18,000 (4,500 ) 13,500 Trade Name 1,000 (830 ) 170 Purchased software 1,832 (428 ) 1,404 Totals as of December 31, 2021 $ 45,832 $ (14,688 ) $ 31,144 |
Schedule of Amortization Expense on Existing Intangible Assets | As of March 31, 2022, amortization expense on existing intangible assets for the next five years and beyond is as follows: Year Ending December 31, Remainder of 2022 $ 4,430 2023 5,766 2024 5,662 2025 5,651 2026 3,606 Thereafter 4,500 $ 29,615 |
Summary of Amortization Expense | A summary of amortization expense recorded during the three months ended March 31, 2022 and 2021 is as follows: Three Months Ended March 31, 2022 2021 Product cost of revenue $ 893 $ 893 Research and development 103 82 Selling, general and administrative 537 533 Totals $ 1,533 $ 1,508 |
Inventory (Tables)
Inventory (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventory as of March 31, 2022 and December 31, 2021 March 31, 2022 December 31, 2021 Raw materials $ 59,467 $ 53,934 Finished goods: Manufactured finished goods 24,995 29,597 Deferred inventory costs 822 1,297 $ 85,284 $ 84,828 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Property Plant And Equipment [Abstract] | |
Summary of Components of Property and Equipment | Property and equipment as of March 31, 2022 and December 31, 2021 consisted of the following: March 31, 2022 December 31, 2021 Computers and purchased software $ 25,585 $ 25,775 Leasehold improvements 4,260 4,198 Furniture and fixtures 2,673 2,672 Machinery and equipment 36,295 37,325 Land 3,091 3,091 Building 4,765 4,765 Building improvements 7,285 7,291 Trial systems at customers’ sites 3,384 3,848 87,338 88,965 Less: Accumulated depreciation and amortization (64,978 ) (65,457 ) $ 22,360 $ 23,508 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Payables And Accruals [Abstract] | |
Schedule of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities as of March 31, 2022 and December 31, 2021 consisted of the following: March 31, 2022 December 31, 2021 Accrued compensation and related taxes $ 13,976 $ 21,751 Accrued warranty 2,262 2,392 Inventory-related accruals 3,660 8,391 Other accrued expenses 7,609 8,848 $ 27,507 $ 41,382 |
Summary of Changes in Amount Reserved for Warranty Costs | A summary of changes in the amount reserved for warranty costs for the three months ended March 31, 2022 and 2021 is as follows: Three Months Ended March 31, 2022 2021 Warranty reserve at beginning of period $ 2,392 $ 2,354 Provisions 387 866 Charges (517 ) (757 ) Warranty reserve at end of period $ 2,262 $ 2,463 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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 March 31, 2022 and December 31, 2021 and indicate the level of the fair value hierarchy utilized to determine such fair values: Fair Value Measurements as of March 31, 2022 Using: Level 1 Level 2 Level 3 Total Assets: Certificates of deposit—restricted cash $ — $ 1,001 $ — $ 1,001 Money market mutual funds 135,084 — — 135,084 $ 135,084 $ 1,001 $ — $ 136,085 Liabilities: Stock Appreciation Rights ("SARs") $ — $ — $ 255 $ 255 $ — $ — $ 255 $ 255 Fair Value Measurements as of December 31, 2021 Using: Level 1 Level 2 Level 3 Total Assets: Certificates of deposit—restricted cash $ — $ 1,001 $ — $ 1,001 Money market mutual funds 93,792 — — 93,792 Foreign currency forward contract $ — 5 — 5 $ 93,792 $ 1,006 $ — $ 94,798 Liabilities: SARs $ — $ — $ 358 $ 358 $ — $ — $ 358 $ 358 |
Summary of Changes in Fair Values of Stock Appreciation Rights (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: Three Months Ended March 31, 2022 2021 Fair value at beginning of period $ 358 $ 493 Change in fair value (103 ) 347 Exercises — (135 ) Fair value at end of period $ 255 $ 705 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Current and Non-Current Debt Obligations | Current and non-current debt obligations reflected in the condensed consolidated balance sheets as of March 31, 2022 and December 31, 2021 consisted of the following: March 31, December 31, 2022 2021 Current liabilities: Term loan $ 3,000 $ 3,000 Current portion of principal payment obligations 3,000 3,000 Unamortized debt issuance costs, current portion (1,073 ) (1,076 ) Current portion of long-term debt, net of unamortized debt issuance costs $ 1,927 $ 1,924 Non-current liabilities: Term loan $ 274,475 $ 275,225 Unamortized debt issuance costs, non-current portion (765 ) (1,032 ) Long-term debt, net of current portion and unamortized debt issuance costs $ 273,710 $ 274,193 |
Schedule of Aggregate Minimum Future Principal Payments of Debt | As of March 31, 2022, aggregate minimum future principal payments of the Company’s debt are summarized as follows: Year Ending December 31, Remainder of 2022 $ 2,250 2023 275,225 Thereafter — $ 277,475 |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Stock Options Activity | A summary of stock option activity for the three months ended March 31, 2022 is as follows Number of Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term Aggregate Intrinsic Value (in years) Outstanding at January 1, 2022 5,919 $ 8.82 4.36 $ 4,205 Granted 576 4.31 Exercised (33 ) 2.36 Forfeited (68 ) 9.35 Outstanding at March 31, 2022 6,394 $ 8.44 4.60 $ 1,708 Options exercisable at March 31, 2022 5,586 $ 8.94 3.89 $ 1,557 Vested or expected to vest at March 31, 2022 6,324 $ 8.48 4.54 $ 1,695 |
Assumptions of Estimated Fair Value of Option on the Date of Grant Using Black-Scholes Option Pricing Model | The fair value of each option is estimated on the date of grant using the Black-Scholes option-pricing model using the following assumptions: Three Months Ended March 31, 2022 2021 Risk-free interest rate 1.7%–2.0% 0.4% Expected term (in years) 6.1 6.1 Expected volatility 38.5%–38.7% 38.2% Expected dividend yield 0.0% 0.0% |
Summary of RSU Activity | A summary of RSU activity for the three months ended March 31, 2022 is as follows: Number of Shares Weighted- Average Grant Date Fair Value Aggregate Fair Value Unvested balance at January 1, 2022 4,309 $ 6.34 Granted 24 4.18 Vested (922 ) 6.58 $ 4,339 Forfeited (54 ) 6.68 Unvested balance at March 31, 2022 3,357 $ 6.26 |
Assumptions of Estimated Based on Monte Carlo Simulation Model | Compensation expense is based on the estimated value of the awards on the grant date, and is recognized over the period from the grant date through the expected vest dates of each vesting condition, both of which were estimated based on a Monte Carlo simulation model applying the following key assumptions: Three Months Ended March 31, 2021 Risk-free interest rate 0.2% Volatility 78.6% Dividend yield 0.0% Cost of equity 12.0% |
Schedule of Stock-based Compensation Expense | Stock-based compensation expense related to stock options, RSUs, SARs and PSUs for the three months ended March 31, 2022 and 2021 was classified in the condensed consolidated statements of operations and comprehensive (loss) income as follows: Three Months Ended March 31, 2022 2021 Cost of revenue $ 35 $ 33 Research and development expenses 595 871 Selling, general and administrative expenses 1,998 2,549 Total stock-based compensation $ 2,628 $ 3,453 The Company recognized stock-based compensation expense for the three months ended March 31, 2022 and 2021 in the condensed consolidated balance sheet as follows: Three Months Ended March 31, 2022 2021 Change in fair value of SAR Liability $ (103 ) $ 348 Recognized as additional paid-in capital 2,731 3,105 Total stock-based compensation $ 2,628 $ 3,453 |
Net (Loss) Income per Share (Ta
Net (Loss) Income per Share (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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: Three Months Ended March 31, 2022 2021 Numerator: Net (loss) income attributable to common stockholders, basic and diluted $ (32,584 ) $ 5,749 Denominator: Weighted-average shares used to compute net (loss) income per share attributable to common stockholders, basic 84,583 84,242 Dilutive effect of stock options — 1,978 Dilutive effect of restricted stock units — 2,348 Weighted-average shares used to compute net (loss) income per share attributable to common stockholders, diluted 84,583 88,568 Net (loss) income per share attributable to common stockholders: Basic $ (0.39 ) $ 0.07 Diluted $ (0.39 ) $ 0.06 |
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 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: Three Months Ended March 31, 2022 2021 Options to purchase common stock 6,394 2,382 Unvested restricted stock units 3,357 1,221 Unvested performance-based stock units 442 — |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Revenue From Contract With Customer [Abstract] | |
Summary of Disaggregation of Revenue Based on Geographic Locations Determined by Customer's Shipping Address | The Company also disaggregates its revenue based on geographic locations of its customers, as determined by the customer’s shipping address, summarized as follows: Three Months Ended March 31, 2022 2021 North America: U.S. $ 13,535 $ 36,912 Canada 15,759 26,238 Total North America 29,294 63,150 Europe, Middle East and Africa: 6,280 6,353 Asia-Pacific: Australia 16,518 23,398 Other 8,180 6,801 Total Asia-Pacific 24,698 30,199 Latin America 4,127 4,575 Total revenue (1) $ 64,399 $ 104,277 (1) Other than the U.S., Canada and Australia, no individual countries represented 10% or mor |
Summary of Disaggregates of Revenue Based on Product Line | The Company also disaggregates its revenue based on product line summarized as follows: Three Months Ended March 31, 2022 2021 Product revenue: Wireless $ 21,056 $ 39,688 Fixed telco 11,715 14,885 Cable 19,774 39,225 Total product revenue 52,545 93,798 Service revenue: Wireless 1,475 591 Fixed telco 1,524 1,606 Cable 8,855 8,282 Total service revenue 11,854 10,479 Total revenue $ 64,399 $ 104,277 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Property and Equipment, Net by Location | The Company’s property and equipment, net by location was as follows: March 31, 2022 December 31, 2021 U.S. $ 16,473 $ 17,089 China 2,907 3,118 Australia 1,762 2,027 Other 1,218 1,274 Total property and equipment, net $ 22,360 $ 23,508 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Significant Accounting Policies [Line Items] | |||
Restricted cash | $ 3,101,000 | $ 1,008,000 | |
Change in accounting principle accounting standards update adopted | true | ||
Change in accounting principle, accounting standards update, early adoption [true false] | true | ||
Change in accounting principle accounting standards update immaterial effect | true | ||
Accounting standards update description | ASU 2021-08 | ||
Accounts Receivable, Extended Payment Terms | |||
Significant Accounting Policies [Line Items] | |||
Reserve for credit losses | $ 0 | $ 0 | |
Write off of uncollectible receivables | 0 | $ 0 | |
Certificates of Deposit | |||
Significant Accounting Policies [Line Items] | |||
Restricted cash | 1,001,000 | 1,001,000 | |
Cash | |||
Significant Accounting Policies [Line Items] | |||
Restricted cash | $ 2,100,000 | $ 2,100,000 |
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 | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | ||
Accounting Policies [Abstract] | ||||||
Cash and cash equivalents | $ 168,580 | $ 154,703 | $ 144,961 | |||
Restricted cash included in other assets | $ 3,101 | $ 1,008 | ||||
Restricted Cash and Cash Equivalents, Noncurrent, Asset, Statement of Financial Position [Extensible List] | Other assets | Other assets | ||||
Cash and cash equivalents, restricted cash | $ 171,681 | [1] | $ 157,804 | $ 145,969 | [1] | $ 158,461 |
[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 unaudited condensed consolidated statements of cash flows. |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Schedule of Accounts Receivable (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Current portion of accounts receivable, net: | ||
Current portion of accounts receivable, net | $ 48,106 | $ 85,774 |
Accounts receivable, net of current portion: | ||
Accounts receivable, net of current portion | 57 | 115 |
Accounts receivable | 48,163 | 85,889 |
Accounts Receivable, Net | ||
Current portion of accounts receivable, net: | ||
Current portion of accounts receivable, net | 48,029 | 85,689 |
Accounts Receivable, Extended Payment Terms | ||
Current portion of accounts receivable, net: | ||
Current portion of accounts receivable, net | $ 77 | $ 85 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Schedule of Significant Customers Represent 10% or More of Revenue or Accounts Receivable (Details) - Customer Concentration Risk | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Customer A | Revenue | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 14.00% | ||
Customer B | Revenue | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 10.00% | ||
Customer C | Revenue | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 10.00% | ||
Customer D | Revenue | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 19.00% | ||
Customer D | Accounts Receivable | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 21.00% | ||
Customer E | Revenue | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 18.00% | ||
Customer F | Accounts Receivable | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 19.00% | ||
Customer G | Accounts Receivable | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 10.00% |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Schedule of Intangible Assets, Net (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Finite Lived Intangible Assets [Line Items] | ||
Cost | $ 45,836 | $ 45,832 |
Accumulated Amortization | (16,221) | (14,688) |
Net Balance | 29,615 | 31,144 |
Developed Technology | NetComm Wireless Limited | ||
Finite Lived Intangible Assets [Line Items] | ||
Cost | 25,000 | 25,000 |
Accumulated Amortization | (9,823) | (8,930) |
Net Balance | 15,177 | 16,070 |
Customer Relationships | NetComm Wireless Limited | ||
Finite Lived Intangible Assets [Line Items] | ||
Cost | 18,000 | 18,000 |
Accumulated Amortization | (4,950) | (4,500) |
Net Balance | 13,050 | 13,500 |
Trade Name | NetComm Wireless Limited | ||
Finite Lived Intangible Assets [Line Items] | ||
Cost | 1,000 | 1,000 |
Accumulated Amortization | (917) | (830) |
Net Balance | 83 | 170 |
Purchased Software | ||
Finite Lived Intangible Assets [Line Items] | ||
Cost | 1,836 | 1,832 |
Accumulated Amortization | (531) | (428) |
Net Balance | $ 1,305 | $ 1,404 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Schedule of Amortization Expense on Existing Intangible Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Remainder of 2022 | $ 4,430 | |
2023 | 5,766 | |
2024 | 5,662 | |
2025 | 5,651 | |
2026 | 3,606 | |
Thereafter | 4,500 | |
Net Balance | $ 29,615 | $ 31,144 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Summary of Amortization Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Finite Lived Intangible Assets [Line Items] | ||
Amortization expense | $ 1,533 | $ 1,508 |
Product Cost of Revenue | ||
Finite Lived Intangible Assets [Line Items] | ||
Amortization expense | 893 | 893 |
Research and Development | ||
Finite Lived Intangible Assets [Line Items] | ||
Amortization expense | 103 | 82 |
Selling, General and Administrative Expenses | ||
Finite Lived Intangible Assets [Line Items] | ||
Amortization expense | $ 537 | $ 533 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Additional Information (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Goodwill | $ 50,177 | $ 50,177 |
Inventory - Schedule of Invento
Inventory - Schedule of Inventory (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 59,467 | $ 53,934 |
Finished goods: | ||
Manufactured finished goods | 24,995 | 29,597 |
Deferred inventory costs | 822 | 1,297 |
Total inventory | $ 85,284 | $ 84,828 |
Property and Equipment - Summar
Property and Equipment - Summary of Components of Property and Equipment (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 87,338 | $ 88,965 |
Less: Accumulated depreciation and amortization | (64,978) | (65,457) |
Property and equipment, net | 22,360 | 23,508 |
Computers and Purchased Software | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 25,585 | 25,775 |
Leasehold Improvements | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 4,260 | 4,198 |
Furniture and Fixtures | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 2,673 | 2,672 |
Machinery and Equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 36,295 | 37,325 |
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 | 7,285 | 7,291 |
Trial Systems at Customers' Sites | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 3,384 | $ 3,848 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Property Plant And Equipment [Line Items] | ||
Depreciation and amortization expense on property and equipment | $ 2,082 | $ 2,701 |
Trial Systems | ||
Property Plant And Equipment [Line Items] | ||
Transfers from (into) inventory into (from) property and equipment | (464) | (661) |
Equipment | ||
Property Plant And Equipment [Line Items] | ||
Transfers from (into) inventory into (from) property and equipment | $ 662 | $ 23 |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities - Schedule of Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Payables And Accruals [Abstract] | ||
Accrued compensation and related taxes | $ 13,976 | $ 21,751 |
Accrued warranty | 2,262 | 2,392 |
Inventory-related accruals | 3,660 | 8,391 |
Other accrued expenses | 7,609 | 8,848 |
Total accrued expenses and other current liabilities | $ 27,507 | $ 41,382 |
Accrued Expenses and Other Cu_4
Accrued Expenses and Other Current Liabilities - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2022 | |
Accrued Expenses And Other Current Liabilities [Line Items] | |
Standard product warranty description | the Company’s products are covered by warranties 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. |
Minimum | |
Accrued Expenses And Other Current Liabilities [Line Items] | |
Product warranties period for software and hardware | 90 days |
Extended product warranty period for renewals of maintenance and support contracts | 1 year |
Maximum | |
Accrued Expenses And Other Current Liabilities [Line Items] | |
Product warranties period for software and hardware | 1 year |
Extended product warranty period for renewals of maintenance and support contracts | 3 years |
Accrued Expenses and Other Cu_5
Accrued Expenses and Other Current Liabilities - Summary of Changes in Amount Reserved for Warranty Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Product Warranties Disclosures [Abstract] | ||
Warranty reserve at beginning of period | $ 2,392 | $ 2,354 |
Provisions | 387 | 866 |
Charges | (517) | (757) |
Warranty reserve at end of period | $ 2,262 | $ 2,463 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value of Financial Assets and Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Assets: | ||
Assets fair value | $ 136,085 | $ 94,798 |
Liabilities: | ||
Liabilities fair value | 255 | 358 |
Certificates of Deposit - Restricted Cash | ||
Assets: | ||
Assets fair value | 1,001 | 1,001 |
Money Market Mutual Funds | ||
Assets: | ||
Assets fair value | 135,084 | 93,792 |
Foreign Currency Forward Contracts | ||
Assets: | ||
Assets fair value | 5 | |
Level 1 | ||
Assets: | ||
Assets fair value | 135,084 | 93,792 |
Level 1 | Money Market Mutual Funds | ||
Assets: | ||
Assets fair value | 135,084 | 93,792 |
Level 2 | ||
Assets: | ||
Assets fair value | 1,001 | 1,006 |
Level 2 | Certificates of Deposit - Restricted Cash | ||
Assets: | ||
Assets fair value | 1,001 | 1,001 |
Level 2 | Foreign Currency Forward Contracts | ||
Assets: | ||
Assets fair value | 5 | |
Level 3 | ||
Liabilities: | ||
Liabilities fair value | 255 | 358 |
Stock Appreciation Rights ("SARs") | Share Based Compensation Liability | ||
Liabilities: | ||
Liabilities fair value | 255 | 358 |
Stock Appreciation Rights ("SARs") | Level 3 | Share Based Compensation Liability | ||
Liabilities: | ||
Liabilities fair value | $ 255 | $ 358 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | ||
Fair value, assets, transfers from Level 1 to Level 2 | $ 0 | $ 0 |
Fair value, assets, transfers from Level 2 to Level 1 | 0 | 0 |
Fair value, liabilities, transfers from Level 1 to Level 2 | 0 | 0 |
Fair value, liabilities, transfers from Level 2 to Level 1 | 0 | 0 |
Fair value, assets, transfers into Level 3 | 0 | 0 |
Fair value, assets, transfers out of Level 3 | 0 | 0 |
Fair value, liabilities, transfers into Level 3 | 0 | 0 |
Fair value, liabilities, transfers out of Level 3 | $ 0 | $ 0 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Changes in Fair Values of Stock Appreciation Rights (SARs) Liability (Details) - Level 3 - Stock Appreciation Rights ("SARs") - Share Based Compensation Liability - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value at beginning of period | $ 358 | $ 493 |
Change in fair value | (103) | 347 |
Exercises | (135) | |
Fair value at end of period | $ 255 | $ 705 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||
Effective income tax rate | (46.60%) | 28.80% |
Provision for income taxes | $ 10,352 | $ 2,326 |
Debt - Additional Information (
Debt - Additional Information (Details) - USD ($) | Dec. 20, 2016 | Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||||
Outstanding borrowings | $ 277,475,000 | |||
JPMorgan Chase Bank, N. A. | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate description | Borrowings under the Term Loan 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 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. The interest rate payable under the Term Loan is 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 Term Loan 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% | |||
Term Loan | 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 | $ 277,475,000 | $ 278,225,000 | ||
Term Loan | JPMorgan Chase Bank, N. A. | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate stated percentage | 4.00% | |||
Debt instrument, interest rate description | As of March 31, 2022 and December 31, 2021, the interest rate on the Term Loans was 5.00% per annum, which was based on one-month Eurodollar rates, at the applicable floor of 1.00% per annum plus the applicable margin of 4.00% per annum for Eurodollar rate loans. | |||
Debt instrument, effective interest rate percentage | 5.00% | 5.00% | ||
Debt issuance costs | $ 7,811,000 | |||
Debt instrument, principal payment | $ 750,000 | $ 750,000 | ||
Interest expense, including amortization of debt issuance costs | $ 3,777,000 | $ 3,869,000 | ||
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 | 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 | 1.00% | 1.00% | ||
Term Loan | JPMorgan Chase Bank, N. A. | Floor Rate | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate stated percentage | 1.00% | |||
Term Loan | JPMorgan Chase Bank, N. A. | Base Rate | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate stated percentage | 3.00% | |||
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 | |||
Revolving Credit Facility | JPMorgan Chase Bank, N. A. | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate increase | 2.00% | |||
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 - Schedule of Current and
Debt - Schedule of Current and Non-Current Debt Obligations (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Current liabilities: | ||
Current portion of principal payment obligations | $ 3,000 | $ 3,000 |
Unamortized debt issuance costs, current portion | (1,073) | (1,076) |
Current portion of long-term debt, net of unamortized debt issuance costs | 1,927 | 1,924 |
Non-current liabilities: | ||
Unamortized debt issuance costs, non-current portion | (765) | (1,032) |
Long-term debt, net of current portion and unamortized debt issuance costs | 273,710 | 274,193 |
Term Loan | ||
Current liabilities: | ||
Current portion of principal payment obligations | 3,000 | 3,000 |
Non-current liabilities: | ||
Non-current portion of principal payment obligations | $ 274,475 | $ 275,225 |
Debt - Schedule of Aggregate Mi
Debt - Schedule of Aggregate Minimum Future Principal Payments of Debt (Details) $ in Thousands | Mar. 31, 2022USD ($) |
Debt Disclosure [Abstract] | |
Remainder of 2022 | $ 2,250 |
2023 | 275,225 |
Aggregate minimum future principal payments of debt | $ 277,475 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) - Common Stock - USD ($) | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Feb. 21, 2019 | |
Class Of Stock [Line Items] | |||
Stock repurchase program, common stock remaining authorized to be repurchased | $ 60,234,000 | ||
Stock repurchase program, stock repurchased, shares | 205,000 | 0 | |
Stock repurchase program, stock repurchased, value | $ 1,192,000 | ||
Maximum | |||
Class Of Stock [Line Items] | |||
Stock repurchase program, common stock authorized to be repurchased | $ 75,000,000 |
Stock-based Compensation - Addi
Stock-based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Cash proceeds received upon the exercise of options | $ 79 | $ 574 | |
Fair value of liability | 255 | $ 358 | |
Unrecognized compensation cost | $ 19,642 | ||
Weighted-average period of unrecognized compensation cost expected to be recognized | 2 years 6 months 3 days | ||
Stock Options | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Weighted average grant date fair value per share of options | $ 1.72 | $ 3.42 | |
Cash proceeds received upon the exercise of options | $ 79 | $ 574 | |
Intrinsic value of stock options exercised | $ 76 | $ 805 | |
RSUs and PSUs | Common Stock | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Shares of common stock in settlement of employee tax withholding obligations | 318,000 | 593,000 | |
Performance-Based Stock Units | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Award vesting period | 3 years | 3 years | |
Number of shares, granted | 0 | ||
Number of shares, vesting | 0 | ||
Number of shares, forfeitures | 0 | ||
Number of shares, unvested | 442,000 | 442,000 | |
Weighted-average grant date fair value, granted | $ 7.89 | $ 7.89 | |
Stock Appreciation Rights | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Award vesting period | 4 years | ||
Number of shares, granted | 0 | ||
Number of shares, unvested | 200,000 | ||
Award expiration period | 10 years | ||
Number of SAR exercised | 0 | ||
Fair value of SAR | $ 1.27 | ||
Stock Appreciation Rights | Accrued Expenses And Other Current Liabilities | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Fair value of liability | $ 255 | $ 358 | |
2017 Stock Incentive Plan | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of shares authorized for grant | 19,842,000 | ||
Number of remaining shares available for grant | 9,650,000 |
Stock-based Compensation - Summ
Stock-based Compensation - Summary Stock Options Activity (Details) - 2017 Stock Incentive Plan - Stock Options - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Number of Shares, Outstanding, Beginning Balance | 5,919 | |
Number of Shares, Granted | 576 | |
Number of Shares, Exercised | (33) | |
Number of Shares, Forfeited | (68) | |
Number of Shares, Outstanding, Ending Balance | 6,394 | 5,919 |
Number of Shares, Options exercisable at March 31, 2022 | 5,586 | |
Number of Shares, Vested or expected to vest at March 31, 2022 | 6,324 | |
Weighted-Average Exercise Price, Outstanding, Beginning Balance | $ 8.82 | |
Weighted-Average Exercise Price, Granted | 4.31 | |
Weighted-Average Exercise Price, Exercised | 2.36 | |
Weighted-Average Exercise Price, Forfeited | 9.35 | |
Weighted-Average Exercise Price, Outstanding, Ending Balance | 8.44 | $ 8.82 |
Weighted-Average Exercise Price, Options exercisable at March 31, 2022 | 8.94 | |
Weighted-Average Exercise Price, Vested or expected to vest at March 31, 2022 | $ 8.48 | |
Weighted-Average Remaining Contractual Term, Outstanding | 4 years 7 months 6 days | 4 years 4 months 9 days |
Weighted-Average Remaining Contractual Term, Options exercisable at March 31, 2022 | 3 years 10 months 20 days | |
Weighted-Average Remaining Contractual Term, Vested or expected to vest at March 31, 2022 | 4 years 6 months 14 days | |
Aggregate Intrinsic Value, Outstanding | $ 1,708 | $ 4,205 |
Aggregate Intrinsic Value, Options exercisable at March 31, 2022 | 1,557 | |
Aggregate Intrinsic Value, Vested or expected to vest at March 31, 2022 | $ 1,695 |
Stock-based Compensation - Assu
Stock-based Compensation - Assumptions of Estimated Fair Value of Option on the Date of Grant Using Black-Scholes Option Pricing Model (Details) - Stock Options | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Risk-free interest rate | 0.40% | |
Expected term (in years) | 6 years 1 month 6 days | 6 years 1 month 6 days |
Expected volatility | 38.20% | |
Expected volatility, Minimum | 38.50% | |
Expected volatility, Maximum | 38.70% | |
Expected dividend yield | 0.00% | 0.00% |
Minimum | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Risk-free interest rate | 1.70% | |
Maximum | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Risk-free interest rate | 2.00% |
Stock-based Compensation - Su_2
Stock-based Compensation - Summary of RSU Activity (Details) - Restricted Stock Units $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended |
Mar. 31, 2022USD ($)$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of Shares, Unvested, Beginning Balance | shares | 4,309 |
Number of Shares, Granted | shares | 24 |
Number of Shares, Vested | shares | (922) |
Number of Shares, Forfeited | shares | (54) |
Number of Shares, Unvested, Ending Balance | shares | 3,357 |
Weighted-Average Grant Date Fair Value, Unvested, Beginning Balance | $ / shares | $ 6.34 |
Weighted-Average Grant Date Fair Value, Granted | $ / shares | 4.18 |
Weighted-Average Grant Date Fair Value, Vested | $ / shares | 6.58 |
Weighted-Average Grant Date Fair Value, Forfeited | $ / shares | 6.68 |
Weighted-Average Grant Date Fair Value, Unvested, Ending Balance | $ / shares | $ 6.26 |
Aggregate Fair Value, Vested | $ | $ 4,339 |
Stock-based Compensation - As_2
Stock-based Compensation - Assumptions of Estimated Based on Monte Carlo Simulation Model (Details) - Performance-Based Stock Units | 3 Months Ended |
Mar. 31, 2021 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Risk-free interest rate | 0.20% |
Volatility | 78.60% |
Dividend yield | 0.00% |
Cost of equity | 12.00% |
Stock-based Compensation - Sche
Stock-based Compensation - Schedule of Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Total stock-based compensation | $ 2,628 | $ 3,453 |
Product Cost of Revenue | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Total stock-based compensation | 35 | 33 |
Research and Development Expenses | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Total stock-based compensation | 595 | 871 |
Selling, General and Administrative Expenses | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Total stock-based compensation | $ 1,998 | $ 2,549 |
Stock-based Compensation - Su_3
Stock-based Compensation - Summary of Stock-based Compensation Expense Recognized in the Consolidated Balance Sheet (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Change in fair value of SAR Liability | $ (103) | $ 348 |
Recognized as additional paid-in capital | 2,731 | 3,105 |
Total stock-based compensation | $ 2,628 | $ 3,453 |
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 | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Numerator: | ||
Net (loss) income attributable to common stockholders, basic and diluted | $ (32,584) | $ 5,749 |
Denominator: | ||
Weighted-average shares used to compute net (loss) income per share attributable to common stockholders, basic | 84,583 | 84,242 |
Dilutive effect of stock options | 1,978 | |
Dilutive effect of restricted stock units | 2,348 | |
Weighted-average shares used to compute net (loss) income per share attributable to common stockholders, diluted | 84,583 | 88,568 |
Net (loss) income per share attributable to common stockholders: | ||
Basic | $ (0.39) | $ 0.07 |
Diluted | $ (0.39) | $ 0.06 |
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) (Details) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
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 | 6,394 | 2,382 |
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 | 3,357 | 1,221 |
Unvested Performance-Based 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 | 442 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Summary of Disaggregation of Revenue Based on Geographic Locations Determined by Customer's Shipping Address (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Disaggregation Of Revenue [Line Items] | ||
Total revenue | $ 64,399 | $ 104,277 |
U.S. | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 13,535 | 36,912 |
North America - Canada | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 15,759 | 26,238 |
North America | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 29,294 | 63,150 |
Europe, Middle East and Africa | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 6,280 | 6,353 |
Asia-Pacific - Australia | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 16,518 | 23,398 |
Asia-Pacific - Other | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 8,180 | 6,801 |
Asia-Pacific | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 24,698 | 30,199 |
Latin America | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | $ 4,127 | $ 4,575 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Summary of Disaggregation of Revenue Based on Geographic Locations Determined by Customer's Shipping Address (Parenthetical) (Details) - Other than United States and Australia | 3 Months Ended |
Mar. 31, 2022Country | |
Disaggregation Of Revenue [Line Items] | |
Number of countries represents 10% or more of total revenue | 0 |
Revenue | Geographic Concentration Risk | |
Disaggregation Of Revenue [Line Items] | |
Concentration risk percentage | 10.00% |
Revenue from Contracts with C_5
Revenue from Contracts with Customers - Summary of Disaggregates of Revenue Based on Product Line (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Disaggregation Of Revenue [Line Items] | ||
Total revenue | $ 64,399 | $ 104,277 |
Product - Wireless | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 21,056 | 39,688 |
Product - Fixed Telco | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 11,715 | 14,885 |
Product - Cable | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 19,774 | 39,225 |
Product | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 52,545 | 93,798 |
Service - Wireless | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 1,475 | 591 |
Service - Fixed Telco | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 1,524 | 1,606 |
Service - Cable | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 8,855 | 8,282 |
Service | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | $ 11,854 | $ 10,479 |
Revenue from Contracts with C_6
Revenue from Contracts with Customers - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Disaggregation Of Revenue [Line Items] | |||
Revenue remaining performance obligation amount | $ 25,613 | ||
Prepaid Expenses and Other Current Assets | |||
Disaggregation Of Revenue [Line Items] | |||
Short-term capitalized contract costs | 124 | $ 90 | |
Other Assets | |||
Disaggregation Of Revenue [Line Items] | |||
Long-term capitalized contract costs | 64 | 58 | |
Deferred Revenue | |||
Disaggregation Of Revenue [Line Items] | |||
Revenue | 5,636 | $ 7,010 | |
Contract assets | 409 | $ 95 | |
Selling, General and Administrative Expenses | |||
Disaggregation Of Revenue [Line Items] | |||
Amortization of capitalized contract costs | 29 | 23 | |
Interest Income | |||
Disaggregation Of Revenue [Line Items] | |||
Other revenue | $ 5 | $ 6 |
Revenue from Contracts with C_7
Revenue from Contracts with Customers - Additional Information (Details1) | Mar. 31, 2022 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2022-04-01 | |
Disaggregation Of Revenue [Line Items] | |
Revenue remaining performance obligation, percentage | 75.00% |
Revenue, remaining performance obligation, expected timing of satisfaction period | 12 months |
Minimum | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2023-04-01 | |
Disaggregation Of Revenue [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction period | 2 years |
Maximum | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2023-04-01 | |
Disaggregation Of Revenue [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction period | 5 years |
Segment Information - Additiona
Segment Information - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2022Segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 1 |
Segment Information - Schedule
Segment Information - Schedule of Property and Equipment, Net by Location (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Segment Reporting Information [Line Items] | ||
Property and equipment, net | $ 22,360 | $ 23,508 |
U.S. | ||
Segment Reporting Information [Line Items] | ||
Property and equipment, net | 16,473 | 17,089 |
China | ||
Segment Reporting Information [Line Items] | ||
Property and equipment, net | 2,907 | 3,118 |
Australia | ||
Segment Reporting Information [Line Items] | ||
Property and equipment, net | 1,762 | 2,027 |
Other | ||
Segment Reporting Information [Line Items] | ||
Property and equipment, net | $ 1,218 | $ 1,274 |
Related Parties - Additional In
Related Parties - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Restricted Stock Units | ||
Related Party Transaction [Line Items] | ||
Number of shares, granted | 24,000 | |
Aggregate fair value vested | $ 4,339 | |
Rongke Xie | ||
Related Party Transaction [Line Items] | ||
Compensation paid | $ 37 | $ 33 |
Rongke Xie | Restricted Stock Units | ||
Related Party Transaction [Line Items] | ||
Number of shares, granted | 116 | |
Award vesting period | 4 years | |
Aggregate fair value vested | $ 500 | |
Selling, general and administrative expenses recognized | $ 31 | $ 25 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Commitments And Contingencies Disclosure [Abstract] | ||
Indemnification obligations material claims, outstanding | $ 0 | $ 0 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | Apr. 18, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
Subsequent Event [Line Items] | |||
Common stock, par value | $ 0.001 | $ 0.001 | |
Subsequent Event | Securities Purchase Agreement | Verizon Ventures LLC | |||
Subsequent Event [Line Items] | |||
Common stock, par value | $ 0.001 | ||
Purchase price per share | $ 4.24 | ||
Aggregate purchase price | $ 39,530 | ||
Subsequent Event | Private Placement | Securities Purchase Agreement | Verizon Ventures LLC | |||
Subsequent Event [Line Items] | |||
Aggregate stock purchased | 9,323 |