COVER PAGE
COVER PAGE - shares | 9 Months Ended | |
Sep. 30, 2020 | Oct. 30, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-37771 | |
Entity Registrant Name | Acacia Communications, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 27-0291921 | |
Entity Address, Address Line One | Three Mill and Main Place | |
Entity Address, Address Line Two | Suite 400 | |
Entity Address, City or Town | Maynard | |
Entity Address, State or Province | MA | |
Entity Address, Postal Zip Code | 01754 | |
City Area Code | 978 | |
Local Phone Number | 938-4896 | |
Title of each class | Common Stock, $0.0001 par value per share | |
Trading Symbol(s) | ACIA | |
Name of each exchange on which registered | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 42,143,990 | |
Entity Central Index Key | 0001651235 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 211,224 | $ 36,617 |
Marketable securities - short-term | 244,458 | 300,129 |
Accounts receivable | 137,246 | 97,948 |
Inventory | 35,195 | 40,820 |
Prepaid expenses and other current assets | 8,641 | 6,518 |
Total current assets | 636,764 | 482,032 |
Marketable securities - long-term | 83,477 | 134,632 |
Property and equipment, net | 28,187 | 26,801 |
Operating lease right-of-use assets | 29,470 | 25,046 |
Deferred tax asset | 51,976 | 51,798 |
Other assets | 1,132 | 1,106 |
Total assets | 831,006 | 721,415 |
Current liabilities: | ||
Accounts payable | 65,355 | 46,957 |
Accrued liabilities | 67,331 | 61,680 |
Deferred revenue | 6,973 | 4,483 |
Total current liabilities | 139,659 | 113,120 |
Income taxes payable | 6,280 | 7,117 |
Non-current operating lease liabilities | 18,972 | 15,726 |
Other long-term liabilities | 4,992 | 7,029 |
Total liabilities | 169,903 | 142,992 |
Commitments and contingencies (Note 12) | ||
Stockholders’ equity: | ||
Preferred stock, $0.0001 par value; 5,000 shares authorized; none issued and outstanding at September 30, 2020 and December 31, 2019 | 0 | 0 |
Common stock, $0.0001 par value; 150,000 shares authorized; 43,078 and 42,399 shares issued at September 30, 2020 and December 31, 2019, respectively | 4 | 4 |
Treasury stock, at cost; 974 shares at September 30, 2020 and December 31, 2019 | (39,712) | (39,712) |
Additional paid-in capital | 428,532 | 402,032 |
Accumulated other comprehensive income | 886 | 720 |
Retained earnings | 271,393 | 215,379 |
Total stockholders’ equity | 661,103 | 578,423 |
Total liabilities and stockholders’ equity | $ 831,006 | $ 721,415 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Sep. 30, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in USD per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in USD per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 150,000,000 | 150,000,000 |
Common stock, shares issued (in shares) | 43,078,000 | 42,399,000 |
Treasury stock, at cost (in shares) | 974,000 | 974,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Statement [Abstract] | ||||
Revenue | $ 158,456 | $ 119,591 | $ 419,297 | $ 335,990 |
Cost of revenue | 78,541 | 60,512 | 214,892 | 175,982 |
Gross profit | 79,915 | 59,079 | 204,405 | 160,008 |
Operating expenses: | ||||
Research and development | 39,884 | 28,649 | 104,554 | 88,578 |
Sales, general and administrative | 15,082 | 20,457 | 47,729 | 66,143 |
Total operating expenses | 54,966 | 49,106 | 152,283 | 154,721 |
Income from operations | 24,949 | 9,973 | 52,122 | 5,287 |
Other income, net: | ||||
Interest income, net | 951 | 2,592 | 4,869 | 7,940 |
Other income (expense), net | 44 | (102) | (33) | (209) |
Total other income, net | 995 | 2,490 | 4,836 | 7,731 |
Income before income tax expense (benefit) | 25,944 | 12,463 | 56,958 | 13,018 |
Income tax expense (benefit) | 1,655 | (2,642) | 944 | (7,039) |
Net income | $ 24,289 | $ 15,105 | $ 56,014 | $ 20,057 |
Earnings per share: | ||||
Basic (in USD per share) | $ 0.58 | $ 0.37 | $ 1.34 | $ 0.49 |
Diluted (in USD per share) | $ 0.56 | $ 0.35 | $ 1.30 | $ 0.47 |
Weighted-average shares used to compute earnings per share: | ||||
Basic (in shares) | 42,061 | 41,119 | 41,841 | 40,730 |
Diluted (in shares) | 43,229 | 42,667 | 43,195 | 42,404 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 24,289 | $ 15,105 | $ 56,014 | $ 20,057 |
Other comprehensive (loss) income: | ||||
Changes in unrealized income (loss) on marketable securities, net of income taxes of $79, $(98), $(12) and $(172) for the three and nine months ended September 30, 2020 and 2019, respectively | (612) | 101 | 166 | 1,134 |
Comprehensive income | $ 23,677 | $ 15,206 | $ 56,180 | $ 21,191 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||||||
Changes in unrealized gain (loss) on marketable securities, tax | $ (79) | $ 216 | $ (39) | $ 12 | $ 72 | $ 88 | $ 98 | $ 172 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Treasury Stock | Additional Paid-in Capital | Accumulated Other Comprehensive (Loss) Income | Retained Earnings |
Beginning balance at Dec. 31, 2018 | $ 502,727 | $ 4 | $ (39,712) | $ 360,267 | $ (372) | $ 182,540 |
Beginning balance (in shares) at Dec. 31, 2018 | 41,024 | 974 | ||||
Increase (Decrease) in Stockholders' Equity | ||||||
Exercise of common stock options | 1,400 | 1,400 | ||||
Exercise of common stock options (in shares) | 190 | |||||
Vesting of restricted stock units (in shares) | 316 | |||||
Stock-based compensation expense | 7,967 | 7,967 | ||||
Unrealized gains (losses) on marketable securities, net of tax | 555 | 555 | ||||
Net income | 6,977 | 6,977 | ||||
Ending balance at Mar. 31, 2019 | 519,626 | $ 4 | $ (39,712) | 369,634 | 183 | 189,517 |
Ending balance (in shares) at Mar. 31, 2019 | 41,530 | 974 | ||||
Beginning balance at Dec. 31, 2018 | 502,727 | $ 4 | $ (39,712) | 360,267 | (372) | 182,540 |
Beginning balance (in shares) at Dec. 31, 2018 | 41,024 | 974 | ||||
Increase (Decrease) in Stockholders' Equity | ||||||
Unrealized gains (losses) on marketable securities, net of tax | 1,134 | |||||
Net income | 20,057 | |||||
Ending balance at Sep. 30, 2019 | 553,921 | $ 4 | $ (39,712) | 390,270 | 762 | 202,597 |
Ending balance (in shares) at Sep. 30, 2019 | 42,213 | 974 | ||||
Beginning balance at Mar. 31, 2019 | 519,626 | $ 4 | $ (39,712) | 369,634 | 183 | 189,517 |
Beginning balance (in shares) at Mar. 31, 2019 | 41,530 | 974 | ||||
Increase (Decrease) in Stockholders' Equity | ||||||
Exercise of common stock options | 413 | 413 | ||||
Exercise of common stock options (in shares) | 72 | |||||
Vesting of restricted stock units (in shares) | 297 | |||||
Common stock issued under employee stock purchase plan | 2,131 | 2,131 | ||||
Common stock issued under employee stock purchase plan (in shares) | 56 | |||||
Stock-based compensation expense | 8,927 | 8,927 | ||||
Unrealized gains (losses) on marketable securities, net of tax | 478 | 478 | ||||
Net income | (2,025) | (2,025) | ||||
Ending balance at Jun. 30, 2019 | 529,550 | $ 4 | $ (39,712) | 381,105 | 661 | 187,492 |
Ending balance (in shares) at Jun. 30, 2019 | 41,955 | 974 | ||||
Increase (Decrease) in Stockholders' Equity | ||||||
Exercise of common stock options | 560 | 560 | ||||
Exercise of common stock options (in shares) | 89 | |||||
Vesting of restricted stock units (in shares) | 169 | |||||
Stock-based compensation expense | 8,605 | 8,605 | ||||
Unrealized gains (losses) on marketable securities, net of tax | 101 | 101 | ||||
Net income | 15,105 | 15,105 | ||||
Ending balance at Sep. 30, 2019 | 553,921 | $ 4 | $ (39,712) | 390,270 | 762 | 202,597 |
Ending balance (in shares) at Sep. 30, 2019 | 42,213 | 974 | ||||
Beginning balance at Dec. 31, 2019 | 578,423 | $ 4 | $ (39,712) | 402,032 | 720 | 215,379 |
Beginning balance (in shares) at Dec. 31, 2019 | 42,399 | 974 | ||||
Increase (Decrease) in Stockholders' Equity | ||||||
Exercise of common stock options | 323 | 323 | ||||
Exercise of common stock options (in shares) | 36 | |||||
Vesting of restricted stock units (in shares) | 255 | |||||
Stock-based compensation expense | 9,263 | 9,263 | ||||
Unrealized gains (losses) on marketable securities, net of tax | (1,013) | (1,013) | ||||
Net income | 15,644 | 15,644 | ||||
Ending balance at Mar. 31, 2020 | 602,640 | $ 4 | $ (39,712) | 411,618 | (293) | 231,023 |
Ending balance (in shares) at Mar. 31, 2020 | 42,690 | 974 | ||||
Beginning balance at Dec. 31, 2019 | $ 578,423 | $ 4 | $ (39,712) | 402,032 | 720 | 215,379 |
Beginning balance (in shares) at Dec. 31, 2019 | 42,399 | 974 | ||||
Increase (Decrease) in Stockholders' Equity | ||||||
Exercise of common stock options (in shares) | 78 | |||||
Unrealized gains (losses) on marketable securities, net of tax | $ 166 | |||||
Net income | 56,014 | |||||
Ending balance at Sep. 30, 2020 | 661,103 | $ 4 | $ (39,712) | 428,532 | 886 | 271,393 |
Ending balance (in shares) at Sep. 30, 2020 | 43,078 | 974 | ||||
Beginning balance at Mar. 31, 2020 | 602,640 | $ 4 | $ (39,712) | 411,618 | (293) | 231,023 |
Beginning balance (in shares) at Mar. 31, 2020 | 42,690 | 974 | ||||
Increase (Decrease) in Stockholders' Equity | ||||||
Exercise of common stock options | 150 | 150 | ||||
Exercise of common stock options (in shares) | 12 | |||||
Vesting of restricted stock units (in shares) | 263 | |||||
Stock-based compensation expense | 8,647 | 8,647 | ||||
Unrealized gains (losses) on marketable securities, net of tax | 1,791 | 1,791 | ||||
Net income | 16,081 | 16,081 | ||||
Ending balance at Jun. 30, 2020 | 629,309 | $ 4 | $ (39,712) | 420,415 | 1,498 | 247,104 |
Ending balance (in shares) at Jun. 30, 2020 | 42,965 | 974 | ||||
Increase (Decrease) in Stockholders' Equity | ||||||
Exercise of common stock options | 229 | 229 | ||||
Exercise of common stock options (in shares) | 30 | |||||
Vesting of restricted stock units (in shares) | 83 | |||||
Stock-based compensation expense | 7,888 | 7,888 | ||||
Unrealized gains (losses) on marketable securities, net of tax | (612) | (612) | ||||
Net income | 24,289 | 24,289 | ||||
Ending balance at Sep. 30, 2020 | $ 661,103 | $ 4 | $ (39,712) | $ 428,532 | $ 886 | $ 271,393 |
Ending balance (in shares) at Sep. 30, 2020 | 43,078 | 974 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Statement of Stockholders' Equity [Abstract] | ||||||||
Changes in unrealized gain (loss) on marketable securities, tax | $ 79 | $ (216) | $ 39 | $ (12) | $ (72) | $ (88) | $ (98) | $ (172) |
CONDENSED CONSOLIDATED STATEM_6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 56,014 | $ 20,057 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 8,109 | 9,274 |
Stock-based compensation | 26,216 | 25,717 |
Deferred income taxes | (178) | (8,294) |
Non-cash lease expense | 3,261 | 3,667 |
Other non-cash benefits | (253) | (1,970) |
Changes in operating assets and liabilities: | ||
Accounts receivable | (39,298) | (8,913) |
Inventory | 5,625 | (11,796) |
Prepaid expenses and other current assets | (2,123) | 4,321 |
Other assets | (17) | (112) |
Accounts payable | 19,493 | (1,227) |
Accrued liabilities | 5,267 | 27,814 |
Deferred revenue | (231) | 6,703 |
Income taxes payable | (837) | (1,674) |
Lease liabilities | (4,212) | (3,741) |
Other long-term liabilities | 299 | 458 |
Net cash provided by operating activities | 77,135 | 60,284 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of property and equipment | (10,466) | (9,111) |
Purchases of marketable securities | (217,802) | (359,578) |
Sales and maturities of marketable securities | 325,047 | 307,927 |
Deposits | (9) | (2) |
Net cash provided by (used in) investing activities | 96,770 | (60,764) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from the issuance of common stock under stock-based compensation plans | 702 | 4,504 |
Net cash provided by financing activities | 702 | 4,504 |
Net increase in cash and cash equivalents | 174,607 | 4,024 |
Cash and cash equivalents—Beginning of period | 36,617 | 60,444 |
Cash and cash equivalents—End of period | 211,224 | 64,468 |
Supplemental cash flow disclosures: | ||
Cash paid (refunds received) for income taxes, net | 1,390 | (972) |
Supplemental disclosure of non-cash investing and financing activities: | ||
Right of use assets acquired under operating leases | 4,913 | 7,084 |
Capital expenditures incurred but not yet paid | $ 243 | $ 623 |
NATURE OF THE BUSINESS AND OPER
NATURE OF THE BUSINESS AND OPERATIONS | 9 Months Ended |
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
NATURE OF THE BUSINESS AND OPERATIONS | NATURE OF THE BUSINESS AND OPERATIONS Acacia Communications, Inc. was incorporated on June 2, 2009, as a Delaware corporation. Acacia Communications, Inc. and its wholly-owned subsidiaries (the “Subsidiaries”) are collectively referred to as the Company. The Company’s mission is to deliver high-speed coherent optical interconnect products that transform communications networks, relied upon by cloud infrastructure operators and content and communication service providers, through improvements in performance and capacity and reductions in associated costs. By implementing optical interconnect technology in a silicon-based platform, a process the Company refers to as the siliconization of optical interconnect, the Company believes it is leading a disruption that is analogous to the computing industry’s integration of multiple functions into a microprocessor. The Company’s products fall into three product groups: embedded modules, pluggable modules and semiconductors. The Company’s embedded module and pluggable module product groups consist of optical interconnect modules with transmission speeds ranging from 100 to 1,200 gigabits per second (“Gbps”), for use in long-haul, metro and inter-data center markets. The Company’s semiconductor product group consists of its low-power coherent digital signal processor application-specific integrated circuits (“DSP ASICs”) and its silicon photonic integrated circuits (“silicon PICs”) which are either integrated into the Company’s embedded and pluggable modules or sold to customers on a standalone basis for integration into internally developed or other merchant modules. The Company is also developing a 400ZR module that will expand its pluggable module product group, and enable inter-data center transmission capacity of 400 Gbps in the same compact pluggable form factors used for 400G client optics, including QSFP-DD and OSFP. The Company’s 400 Gbps pluggable product family will also include a new CFP2-DCO module that supports transmission rates up to 400 Gbps and the OpenROADM specification. The Company’s modules perform a majority of the digital signal processing and optical functions in optical interconnects and offer low power consumption, high density and high speeds at attractive price points. Through the use of standard interfaces, the Company’s modules can be easily integrated with customers’ network equipment. The advanced software in the Company’s modules enables increased configurability and automation, provides insight into network and connection point characteristics and helps identify network performance problems, all of which increase flexibility and reduce operating costs. The Company is headquartered in Maynard, Massachusetts, and has wholly-owned subsidiaries in North America, Europe and Asia. Proposed Merger with Cisco Systems On July 8, 2019, the Company, Cisco Systems, Inc., a California corporation (the “Parent”), and Amarone Acquisition Corp., a Delaware corporation and a wholly owned subsidiary of the Parent (the “Merger Sub”), entered into an Agreement and Plan of Merger (the “Merger Agreement”), pursuant to which, among other things, the Merger Sub will be merged with and into the Company (the “Merger”), with the Company surviving the Merger as a wholly owned subsidiary of the Parent. The Merger Agreement was adopted by the Company’s stockholders at a special meeting held on September 6, 2019. Completion of the Merger is subject to customary closing conditions, including (i) obtaining antitrust approval in China, (ii) the absence of governmental injunctions or other legal restraints prohibiting the Merger or imposing certain antitrust restraints and (iii) the absence of a “Material Adverse Effect,” as defined in the Merger Agreement. The Company and the Parent have already received antitrust clearance for the Merger in the United States, Germany and Austria. Other than customary closing conditions that are to be satisfied at the time of closing, regulatory clearance from the State Administration for Market Regulation of the People’s Republic of China represents the only remaining outstanding closing condition set forth in the Merger Agreement. If the Merger is completed, each share of the Company’s common stock issued and outstanding immediately prior to the effective time of the Merger, subject to certain exceptions, will be converted into the right to receive $70.00 in cash. The parties expect the Merger to close no later than the third business day following the satisfaction or waiver of these closing conditions. For additional information related to the Merger Agreement, refer to the Company’s Current Report on Form 8-K filed with the Securities and Exchange Commission on July 9, 2019, which includes the full text of the Merger Agreement as Exhibit 2.1. The Company recorded an immaterial amount of acquisition-related costs during the three months ended September 30, 2020, $6.4 million of acquisition-related costs during the three months ended September 30, 2019, and $1.6 million and $7.0 million of acquisition-related costs during the nine months ended September 30, 2020 and 2019, respectively, in sales, general and administrative expense within our condensed consolidated statements of operations. Impact of COVID-19 An outbreak of the novel coronavirus, severe acute respiratory syndrome coronavirus 2 (“SARS-CoV-2”), and the coronavirus disease, COVID-19, was identified in China in late 2019 and has spread globally. The Centers for Disease Control and Prevention has recognized this outbreak as a pandemic which has resulted in authorities imposing, and businesses and individuals implementing, numerous unprecedented measures to try to contain the virus, such as travel bans and restrictions, quarantines, shelter-in-place/stay-at-home and social distancing orders and shutdowns. These measures have impacted and may further impact the Company’s workforce and operations, the operations of the Company’s customers, and those of the Company’s and its customers’ respective vendors, suppliers and partners. While the COVID-19 pandemic did not have a material impact on the Company’s financial results for the three or nine month periods ended September 30, 2020, the extent to which the COVID-19 pandemic could impact the Company’s results of operations going forward depends on future developments that are highly uncertain and cannot be predicted, including the adverse impact of negative economic conditions created or exacerbated by the pandemic, new information that may emerge concerning the severity of the virus and required or voluntary actions to contain its impact. Due to the inherent uncertainty of this unprecedented and evolving situation, the Company is unable to predict with any confidence the likely impact of COVID-19 on its future business, results of operations and financial condition. Additional information regarding COVID-19 related risks and uncertainties may be found in the section titled “Risk Factors” under Part II, Item 1A in this Quarterly Report on Form 10-Q. |
BASIS OF PRESENTATION AND SUMMA
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The unaudited condensed consolidated financial statements include the accounts of Acacia Communications, Inc. and its Subsidiaries and have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, they do not include all of the information and footnotes required by GAAP for annual financial statements. For further information, these condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019, which was filed with the SEC on February 18, 2020. There have been no significant changes in the Company’s accounting policies from those disclosed in the Annual Report on Form 10-K that have had a material impact on the Company’s condensed consolidated financial statements. The unaudited condensed consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements as of and for the year ended December 31, 2019, and in management’s opinion, include all adjustments, consisting of only normal recurring adjustments, necessary for the fair statement of the Company’s condensed consolidated balance sheet as of September 30, 2020, its condensed consolidated statements of operations for the three and nine months ended September 30, 2020 and 2019, its condensed consolidated statements of comprehensive income for the three and nine months ended September 30, 2020 and 2019, its condensed consolidated statements of stockholders’ equity for the three and nine months ended September 30, 2020 and 2019, and its condensed consolidated statements of cash flows for the nine months ended September 30, 2020 and 2019. All intercompany balances and transactions have been eliminated in consolidation. The financial data and the other financial information disclosed in the notes to these condensed consolidated financial statements related to the three and nine months ended September 30, 2020 and 2019 are also unaudited. The results of operations for the three and nine months ended September 30, 2020 are not necessarily indicative of the results to be expected for the full fiscal year or any other period. Use of Estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Recently Adopted Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). ASU 2016-13 is intended to provide more decision-useful information about expected credit losses on financial instruments, including trade receivables, and other commitments to extend credit held by a reporting entity at each reporting date. The main provisions include presenting financial assets measured at amortized cost at the amount expected to be collected, which is net of an allowance for expected credit losses, and recording credit losses related to available-for-sale securities through an allowance for credit losses. On January 1, 2020, the Company adopted ASU 2016-13 using the modified retrospective approach. There was no impact from the adoption of ASU 2016-13 on the Company’s condensed consolidated financial statements. The Company is exposed to credit losses through sales of its products. The Company determines if there is an expected loss on its accounts receivables using historical collection experience, current and future economic and market conditions and a review of the current status of customers' trade accounts receivables. The Company has not recorded any allowance for credit losses as of September 30, 2020 or December 31, 2019. Refer to Note 4 for information regarding how the Company assesses credit losses on its available-for-sale debt securities. Recently Issued Accounting Pronouncements In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”). ASU 2019-12 is intended to simplify the accounting for income taxes by, among other things, eliminating certain exceptions related to the approach for intra-period tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. ASU 2019-12 is effective for fiscal years beginning after December 15, 2020, with early adoption permitted. Upon adoption, ASU 2019-12 will require companies to apply certain aspects of this standard retrospectively for all periods presented, while requiring other aspects to be applied on a modified retrospective basis through a cumulative-effect adjustment to retained earnings as of the beginning of the fiscal year of adoption. The Company expects the impact of adopting this new standard to be immaterial to its condensed consolidated financial statements. |
REVENUE
REVENUE | 9 Months Ended |
Sep. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE | REVENUE The opening and closing balances of the Company’s accounts receivable and deferred revenue for the nine months ended September 30, 2020 are as follows (in thousands): Balance at Beginning of Period Increase / (Decrease) Balance at End of Period Nine Months Ended September 30, 2020 Accounts receivable $ 97,948 39,298 $ 137,246 Deferred revenue (current) $ 4,483 2,490 $ 6,973 Deferred revenue (non-current) $ 3,444 (2,721) $ 723 The amount of revenue recognized in the period that was included in the opening deferred revenue balances was approximately $3.2 million for the nine months ended September 30, 2020. Generally, increases in current and non-current deferred revenue are related to billings to, or advance payments from, customers for which the Company has not yet fulfilled its performance obligations, and decreases are related to revenue recognized. Deferred revenue not expected to be recognized within the Company’s operating cycle of one year is presented as a component of “Other long-term liabilities” on the condensed consolidated balance sheets. At times, the Company receives orders for products that may be delivered over multiple dates that may extend across reporting periods. The Company invoices for each delivery upon shipment and recognizes revenues for each distinct product delivered, assuming transfer of control has occurred. Generally, scheduled delivery dates are within one year, and the Company has elected to use the optional exemption whereby revenues allocated to partially completed contracts with an expected duration of one year or less are not disclosed. As of September 30, 2020, the Company had no contracts with unsatisfied performance obligations with a duration of more than one year. Disaggregation of Revenue The following table provides information about disaggregated revenue based on product group (in thousands). Further disaggregation of revenue by geographic country can be found in Note 14. Three Months Ended September 30, 2020 Three Months Ended September 30, 2019 Nine Months Ended September 30, 2020 Nine Months Ended September 30, 2019 Revenue ($) Revenue (%) Revenue ($) Revenue (%) Revenue ($) Revenue (%) Revenue ($) Revenue (%) Embedded modules $ 77,586 49 % $ 27,218 23 % $ 146,093 35 % $ 66,488 20 % Pluggable modules 50,858 32 % 57,526 48 % 170,620 41 % 167,948 50 % Semiconductors 30,012 19 % 34,847 29 % 102,584 24 % 101,554 30 % Total revenue $ 158,456 100 % $ 119,591 100 % $ 419,297 100 % $ 335,990 100 % |
FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS | 9 Months Ended |
Sep. 30, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
FINANCIAL INSTRUMENTS | FINANCIAL INSTRUMENTS The following tables set forth the Company’s cash, cash equivalents and short- and long-term marketable securities as of September 30, 2020 and December 31, 2019 (in thousands): As of September 30, 2020 Gross Unrealized Amortized Cost Gains Losses (1) Estimated Fair Value Cash and Cash Equivalents Marketable Securities Cash $ 157,866 $ — $ — $ 157,866 $ 157,866 $ — Money market funds 45,102 — — 45,102 45,102 — U.S. treasury bonds 49,655 255 — 49,910 — 49,910 Commercial paper 60,477 9 (1) 60,485 5,499 54,986 Certificates of deposit 11,907 14 — 11,921 — 11,921 Asset-backed securities 32,452 162 — 32,614 — 32,614 Corporate debt securities 180,693 630 (62) 181,261 2,757 178,504 Total $ 538,152 $ 1,070 $ (63) $ 539,159 $ 211,224 $ 327,935 (1) Losses represent marketable securities that were in loss positions for less than one year. As of December 31, 2019 Gross Unrealized Amortized Cost Gains Losses (1) Estimated Fair Value Cash and Cash Equivalents Marketable Securities Cash $ 29,116 $ — $ — $ 29,116 $ 29,116 $ — Money market funds 2,010 — — 2,010 2,010 — U.S. treasury bonds 116,710 126 (1) 116,835 — 116,835 Commercial paper 44,300 — — 44,300 5,491 38,809 Certificates of deposit 24,522 19 (2) 24,539 — 24,539 Asset-backed securities 73,370 134 (5) 73,499 — 73,499 Corporate debt securities 180,607 475 (3) 181,079 — 181,079 Total $ 470,635 $ 754 $ (11) $ 471,378 $ 36,617 $ 434,761 (1) Losses represent marketable securities that were in loss positions for less than one year. The proceeds from the sales and maturities of marketable securities, which were primarily reinvested and resulted in realized gains and losses, were as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Proceeds from the sales and maturities of marketable securities $ 75,877 $ 124,439 $ 325,047 $ 307,927 Realized gains $ 1 $ 36 $ 110 $ 42 Realized losses $ — $ — $ — $ (2) The contractual maturities of short-term and long-term marketable securities held at September 30, 2020 and December 31, 2019 are as follows (in thousands): As of September 30, 2020 As of December 31, 2019 Amortized Cost Basis Aggregate Fair Value Amortized Cost Basis Aggregate Fair Value Due within one year $ 243,602 $ 244,458 $ 299,725 $ 300,129 Due after one year through three years 83,325 83,477 134,292 134,632 Total $ 326,927 $ 327,935 $ 434,017 $ 434,761 As of September 30, 2020, the Company believed that none of its unrealized losses on its available-for-sale investments were attributable to credit losses and therefore were not impaired. The investments with unrealized losses consisted primarily of corporate debt securities. In making the determination that the decline in fair value of these securities did not indicate impairment, the Company considered various factors, including, but not limited to: the extent to which fair value was less than cost; the financial condition and near-term prospects of the issuers; and the Company’s intent not to sell these securities and the assessment that it is more likely than not that the Company would not be required to sell these securities before the recovery of their amortized cost basis. Unrealized gains and losses, net of taxes, are reported as a component of accumulated other comprehensive (loss) income in the Company’s condensed consolidated statements of stockholders’ equity. No material amounts were reclassified out of accumulated other comprehensive (loss) income during the three and nine months ended September 30, 2020 and 2019 for realized gains or losses on available-for-sale investments. |
INVENTORY
INVENTORY | 9 Months Ended |
Sep. 30, 2020 | |
Inventory Disclosure [Abstract] | |
INVENTORY | INVENTORY Inventory consisted of the following as of September 30, 2020 and December 31, 2019 (in thousands): September 30, 2020 December 31, 2019 Raw materials $ 19,272 $ 24,777 Work-in-process 80 673 Finished goods 15,843 15,370 Inventory $ 35,195 $ 40,820 |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 9 Months Ended |
Sep. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | PROPERTY AND EQUIPMENT Property and equipment consisted of the following as of September 30, 2020 and December 31, 2019 (in thousands): September 30, 2020 December 31, 2019 Engineering laboratory equipment $ 64,737 $ 58,320 Computer software 3,940 3,730 Computer equipment 9,227 7,837 Furniture and fixtures 3,641 3,641 Leasehold improvements 4,233 3,999 Construction in progress 3,693 2,449 Total property and equipment 89,471 79,976 Less: Accumulated depreciation (61,284) (53,175) Property and equipment, net $ 28,187 $ 26,801 Depreciation expense was $2.8 million and $2.9 million for the three months ended September 30, 2020 and 2019, respectively, and $8.1 million and $9.3 million for the nine months ended September 30, 2020 and 2019, respectively. |
ACCRUED LIABILITIES
ACCRUED LIABILITIES | 9 Months Ended |
Sep. 30, 2020 | |
Payables and Accruals [Abstract] | |
ACCRUED LIABILITIES | ACCRUED LIABILITIES Accrued liabilities consisted of the following as of September 30, 2020 and December 31, 2019 (in thousands): September 30, 2020 December 31, 2019 Employee-related liabilities $ 7,388 $ 10,816 Current maturities of operating leases 4,455 4,228 Goods and services received not invoiced 1,776 2,297 Accrued manufacturing related expenses 1,528 3,781 Warranty reserve 8,055 10,354 Litigation and settlement accrual 28,000 20,000 Outsourced foundry expenses 10,012 2,739 Other accrued liabilities 6,117 7,465 Accrued liabilities $ 67,331 $ 61,680 |
LEASES
LEASES | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
LEASES | LEASES The Company leases real estate assets and equipment. For leases with terms greater than 12 months, the Company records the related right-of-use (“ROU”) asset and lease obligation at the present value of lease payments over the term. Many leases include fixed rental escalation clauses, renewal options and/or termination options that are factored into the determination of lease payments when appropriate. The Company’s leases do not usually provide a readily determinable implicit discount rate; therefore, an estimate of the Company’s incremental borrowing rate is used to discount the lease payments based on information available at lease commencement, including observable rates, adjusted for various factors including financing spreads and other lease specific adjustments, as applicable. The Company has elected not to record an ROU asset and lease obligation for short-term leases (with terms less than 12 months) or separate non-lease components from associated lease components for its real estate lease assets. The Company’s leases have remaining lease terms of less than one year to eight years. Some leases include one or more options to renew with renewal terms that can extend the lease term from three years to five years, or options to terminate the leases, both at the Company’s discretion. The Company’s lease terms include options to extend or terminate leases when the Company concludes it is reasonably certain that it would exercise those options. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. The Company’s lease agreements do not contain any variable lease payments, material residual value guarantees or material restrictive covenants. The table below presents the lease-related assets and liabilities recorded on the condensed consolidated balance sheet as of September 30, 2020 (in thousands): Classification on the Balance Sheet September 30, 2020 Assets Operating lease assets Operating lease right-of-use assets $ 29,470 Liabilities Current - operating Accrued liabilities 4,455 Noncurrent - operating Noncurrent operating lease liabilities 18,972 Total lease liabilities $ 23,427 Weighted-average remaining lease term - operating leases 6.3 years Weighted-average discount rate - operating leases 4.21 % Operating lease costs were $1.5 million during the three months ended September 30, 2020 and 2019, and $4.5 million and $4.1 million during the nine months ended September 30, 2020 and 2019, respectively. Short-term lease costs during the three and nine months ended September 30, 2020 and 2019 were immaterial. Cash paid for amounts included in the measurement of lease liabilities was $1.1 million during the three months ended September 30, 2020 and 2019, and $3.3 million and $3.1 million during the nine months ended September 30, 2020 and 2019, respectively, which were operating cash outflows. The table below reconciles the undiscounted cash flows for each of the first five years and total of the remaining years to the operating lease liabilities recorded on the condensed consolidated balance sheet as of September 30, 2020 (in thousands): Operating Leases Remaining 2020 $ 1,113 2021 4,506 2022 4,338 2023 4,493 2024 4,510 Thereafter 6,992 Total minimum lease payments 25,952 Less: amount of lease payments representing interest (2,525) Present value of future minimum lease payments 23,427 Less: current obligation under leases 4,455 Long-term lease obligations $ 18,972 As of September 30, 2020, the Company was committed to expend approximately $0.5 million for additional construction build-out at its New Jersey facility. |
FAIR VALUE MEASUREMENT
FAIR VALUE MEASUREMENT | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENT | FAIR VALUE MEASUREMENT The Company measures certain financial assets and liabilities at fair value. Fair value is determined based upon the exit price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants, as determined by either the principal market or the most advantageous market. Inputs used in the valuation techniques to derive fair values are classified based on a three-level hierarchy, as follows: Level 1 —Quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 —Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities, quoted prices in markets with insufficient volume or infrequent transactions (less active markets), or model-derived valuations in which all significant inputs are observable or can be derived principally from or corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 —Unobservable inputs to the valuation methodology that are significant to the measurement of fair value of assets or liabilities. The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. The Company’s investments are in money market funds, U.S. treasury bonds, commercial paper, certificates of deposit, asset-backed securities and corporate debt securities, which are classified as Level 2 within the fair value hierarchy, and were initially valued at the transaction price and subsequently valued at each reporting date utilizing market-observable data. The market-observable data included reportable trades, benchmark yields, credit spreads, broker/dealer quotes, bids, offers, current spot rates and other industry and economic events. The fair value of these assets measured on a recurring basis was determined using the following inputs as of September 30, 2020 and December 31, 2019 (in thousands): September 30, 2020 Quoted Prices in Active Markets Significant Other Observable Inputs Significant Unobservable Inputs Total Fair Value Assets: Money market funds $ — $ 45,102 $ — $ 45,102 U.S. treasury bonds — 49,910 — 49,910 Commercial paper — 60,485 — 60,485 Certificates of deposit — 11,921 — 11,921 Asset-backed securities — 32,614 — 32,614 Corporate debt securities — 181,261 — 181,261 Total $ — $ 381,293 $ — $ 381,293 December 31, 2019 Quoted Prices in Active Markets Significant Other Observable Inputs Significant Unobservable Inputs Total Fair Value Assets: Money market funds $ — $ 2,010 $ — $ 2,010 U.S. treasury bonds — 116,835 — 116,835 Commercial paper — 44,300 — 44,300 Certificates of deposit — 24,539 — 24,539 Asset-backed securities — 73,499 — 73,499 Corporate debt securities — 181,079 — 181,079 Total $ — $ 442,262 $ — $ 442,262 There were no transfers between fair value measurement levels during the three or nine months ended September 30, 2020 or 2019. For certain other financial instruments, including accounts receivable, accounts payable and other current liabilities, the carrying amounts approximate their fair value due to the relatively short maturity of these balances. |
STOCK COMPENSATION PLANS
STOCK COMPENSATION PLANS | 9 Months Ended |
Sep. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
STOCK COMPENSATION PLANS | STOCK COMPENSATION PLANS The following table summarizes the classification of stock-based compensation in the condensed consolidated statements of operations for the three and nine months ended September 30, 2020 and 2019 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Cost of revenue $ 491 $ 481 $ 1,561 $ 1,572 Research and development 5,161 5,330 16,792 15,401 Sales, general and administrative 2,396 2,899 7,863 8,744 Total stock-based compensation $ 8,048 $ 8,710 $ 26,216 $ 25,717 The following table summarizes stock-based compensation expense by award type for the three and nine months ended September 30, 2020 and 2019 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Stock options $ 52 $ 340 $ 482 $ 1,544 Restricted stock units 7,836 7,936 25,316 22,994 Employee stock purchase plan — 330 — 961 Other awards 160 104 418 218 Total stock-based compensation $ 8,048 $ 8,710 $ 26,216 $ 25,717 Stock Options A summary of stock option activity under the Company’s equity incentive plans for the nine months ended September 30, 2020 is as follows: Number of Options Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding at December 31, 2019 715 $ 11.14 4.6 $ 41,036 Granted — $ — Exercised (78) $ 9.07 $ 4,569 Canceled — $ — Outstanding at September 30, 2020 637 $ 11.39 3.7 $ 36,232 Vested and expected to vest at: September 30, 2020 637 $ 11.39 3.7 $ 36,232 December 31, 2019 715 $ 11.14 4.6 $ 41,036 Exercisable at: September 30, 2020 633 $ 11.27 3.7 $ 36,063 December 31, 2019 671 $ 9.99 4.4 $ 39,212 As of September 30, 2020 and December 31, 2019, there was $0.1 million and $0.5 million, respectively, of unrecognized compensation cost related to unvested common stock options which will be recognized over weighted-average periods of 1.6 and 0.6 years, respectively. No stock option awards were issued by the Company during the three or nine months ended September 30, 2020 or 2019. Restricted Stock Units During the nine months ended September 30, 2020, the Company granted approximately 175,000 restricted stock units (“RSUs”) to employees under the 2016 Equity Incentive Plan that vest upon the satisfaction of a service condition, generally over four years. The cost of any RSUs with only a service condition is determined using the fair value of the Company’s common stock on the date of grant, and compensation is recognized on a ratable basis over the requisite vesting period. As soon as practicable following each vesting date of RSUs, the Company will issue to the holder of the RSUs the number of shares of common stock equal to the aggregate number of RSUs that have vested. Notwithstanding the foregoing, the Company may, in its sole discretion, in lieu of issuing shares of common stock to the holder of the RSUs, pay the holder an amount in cash equal to the fair market value of such shares of common stock. To date, the Company has not settled any vested RSUs with cash. A summary of the changes in the Company’s RSUs during the nine months ended September 30, 2020 is as follows: RSUs Weighted-Average Grant Date Fair Value Outstanding at December 31, 2019 1,951 $ 48.69 Granted 175 $ 68.18 Vested (601) $ 41.24 Canceled (5) $ 56.35 Outstanding at September 30, 2020 1,520 $ 53.86 As of September 30, 2020 and December 31, 2019, there was $56.4 million and $70.1 million, respectively, of total unrecognized compensation cost related to unvested RSUs which will be recognized over weighted-average periods of 2.1 years and 2.1 years, respectively. |
NET INCOME PER SHARE
NET INCOME PER SHARE | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
NET INCOME PER SHARE | NET INCOME PER SHARE The following table sets forth the computation of the Company’s basic and diluted net income per share (in thousands, except per share amounts): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Numerator: Net income $ 24,289 $ 15,105 $ 56,014 $ 20,057 Denominator: Weighted-average shares used to compute net income per share - basic 42,061 41,119 41,841 40,730 Dilutive effect of stock options, unvested restricted stock units and employee stock purchase plan 1,168 1,548 1,354 1,674 Weighted-average shares used to compute net income per share - diluted 43,229 42,667 43,195 42,404 Net income per share Basic $ 0.58 $ 0.37 $ 1.34 $ 0.49 Diluted $ 0.56 $ 0.35 $ 1.30 $ 0.47 The following common stock equivalents (in thousands) were excluded from the computation of diluted net income per share for the periods presented because including them would have been antidilutive: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Options to purchase common stock 14 38 14 38 Unvested restricted stock units — 33 — 31 Estimates of the number of shares contingently issuable based on average market prices through September 30, 2020 for all outstanding performance-based RSUs that include a market condition in addition to a service condition have been included in the antidilutive table above. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Warranties The Company’s standard warranty obligation to its customers provides for repair or replacement of a defective product at the Company’s discretion for a period of time following purchase, generally between 12 and 24 months. Factors that affect the warranty obligation include product failure rates, material usage and service delivery costs incurred in correcting product failures. In addition, from time to time, specific warranty accruals may be made if unforeseen technical problems arise. The estimated cost associated with fulfilling the Company’s warranty obligation to customers is recorded in cost of revenue. Changes in the Company’s warranty liability, which is included as a component of accrued liabilities on the condensed consolidated balance sheets, are set forth in the table below (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Warranty reserve, beginning of period $ 9,629 $ 10,833 $ 10,354 $ 8,220 Provisions made to warranty reserve during the period 382 2,431 4,271 12,067 Charges against warranty reserve during the period (1,956) (2,730) (6,570) (9,753) Warranty reserve, end of period $ 8,055 $ 10,534 $ 8,055 $ 10,534 Legal Contingencies On January 21, 2016, ViaSat, Inc. (“ViaSat”) filed a lawsuit in California state court, 37-2016-00002323-CU-BC-NC, later removed to the U.S. District Court for the Southern District of California, against the Company alleging, among other things, breach of contract, breach of the implied covenant of good faith and fair dealing and misappropriation of trade secrets. On February 19, 2016, the Company responded to ViaSat’s lawsuit and alleged counterclaims against ViaSat including, among other things, patent misappropriation, breach of contract, breach of the implied covenant of good faith and fair dealing, misappropriation of trade secrets and unfair competition. In its response filed March 16, 2016, ViaSat denied the Company’s counterclaims. On September 28, 2018 the matter was remanded back to the California Superior Court, County of San Diego, North County Division 3:16-cv-00463, D.I. 197. In April 2019, the California Superior Court denied the parties’ cross motions for summary adjudication. At the court’s direction, the parties participated in a mandatory mediation process, but no resolution was reached. Trial took place in June and July of 2019, and the jury returned a verdict on July 17, 2019. The jury found against the Company for breach of contract, willful and malicious misappropriation of trade secrets, and breach of the covenant of good faith and fair dealing implied by law in the parties’ contract. The jury also found that ViaSat breached the same contract and misappropriated the Company’s trade secrets. The jury awarded damages of $49.3 million to ViaSat for the Company’s breaches of contract, and $1 to ViaSat for its trade secret misappropriation claim. The jury awarded $1 to the Company for ViaSat’s misappropriation of trade secrets and awarded no damages to the Company for ViaSat’s breach of contract. ViaSat filed post-trial motions seeking up to approximately $10.0 million for attorney’s fees and approximately $6.2 million for so-called “cost-of-proof” sanctions and an order that the Company pay ViaSat ongoing royalties on sales after December 31, 2018. ViaSat also sought a new trial and judgment in its favor notwithstanding the verdict on its trade secret damages claim. The Company filed post-trial motions for entry of judgment in its favor notwithstanding the verdict on ViaSat’s breach of contract and trade secret damages claims and for a new trial, and moved to reduce the total damages awarded to ViaSat to no more than $12.8 million pursuant to a provision of the contract containing a limitation on liability for claims arising from the contract. The Court denied the post-trial motions filed by both parties, and on December 5, 2019, the Court entered judgment (the “December 2019 Judgment”) against the Company in the amount of $49.3 million, and against ViaSat in the amount of $1. On January 17, 2020, the Court awarded ViaSat an additional $0.1 million in costs. On December 20, 2019, the Company filed a notice of appeal of the December 2019 Judgment, and ViaSat filed a notice of cross-appeal on December 26, 2019. The parties’ respective appeals are pending and the Company filed its opening appellate brief on August 19, 2020. ViaSat’s responsive brief is due November 17, 2020. As of September 30, 2020, the Company has accrued a total of $28.0 million in litigation and settlement-related accruals. The amount of such accruals is based upon currently available information and is subject to significant judgment and a variety of assumptions and known and unknown uncertainties, which may change quickly and significantly from time to time. As a result, actual losses could significantly exceed the amount of such accruals, and no conclusion as to the Company’s ultimate exposure from these proceedings should be drawn from such accruals. In view of the numerous legal, technical and factual issues involved in this lawsuit, the Company is not able to provide an estimate of the likely outcome or range of outcomes, if any, at this time. On November 6, 2019, ViaSat filed a second lawsuit in California Superior Court, County of San Diego, North County Division, 37-2019-00060731, D.I. 01, against the Company alleging breach of contract, breach of the implied covenant of good faith and fair dealing, and misappropriation of trade secrets. ViaSat’s complaint relies on the verdict in the first lawsuit, seeks damages on sales of the Company’s products after December 31, 2018, and its claims for relief include preliminary and permanent injunctive relief prohibiting sales of the Company’s products alleged by ViaSat to misappropriate its trade secrets. On January 17, 2020, the Company responded to ViaSat’s second lawsuit with a general denial and moved to stay the case. On February 28, 2020, the court issued an order granting the Company’s motion to stay the case pending outcome of the appeal in the first lawsuit. In view of the numerous legal, technical and factual issues involved in this lawsuit, the Company is not able to provide an estimate of the likely outcome or range of outcomes, if any, at this time. On June 9, 2020, ViaSat filed a third lawsuit in California Superior Court, County of San Diego, North County Division, Case No. 37-2020-00019223, against the Company alleging breach of contract, breach of the implied covenant of good faith and fair dealing, and misappropriation of trade secrets. ViaSat’s complaint concerns different products than those involved in the first two suits. ViaSat claims such products also use ViaSat’s confidential information and trade secrets, and ViaSat’s claims for relief include damages and preliminary and permanent injunctive relief prohibiting sales of the Company’s products alleged by ViaSat to misappropriate its trade secrets. The Company filed a demurrer in response to the complaint on July 30, 2020 and the Court stayed the action until after the resolution of the appeal of the December 2019 Judgment. In view of the numerous legal, technical and factual issues involved in this lawsuit, the Company is not able to provide an estimate of the likely outcome or range of outcomes, if any, at this time. On July 28, 2017, the Company filed a lawsuit in the Commonwealth of Massachusetts Superior Court - Business Litigation Session against ViaSat asserting commercial disparagement, libel, slander of title, unfair competition, intentional interference with advantageous relations and intentional interference with contractual relations. On April 5, 2018, ViaSat responded to the Company’s action and alleged counterclaims including, among other things, breach of contract, breach of the implied covenant of good faith and fair dealing, misappropriation of trade secrets, and unfair competition. On December 13, 2018, the Massachusetts court entered an order staying the Massachusetts litigation pending resolution of the first California state court action discussed above. On December 12, 2019, the Massachusetts court entered an order continuing the stay of the Massachusetts litigation to and including July 10, 2020. On July 6, 2020, the Massachusetts court entered an order continuing the stay of the Massachusetts litigation to and including December 4, 2020. The litigation matters described above are referred to collectively as the ViaSat litigation. The Company intends to continue to engage in a vigorous defense and pursuit of Company-favorable judgments of the ongoing litigation matters described above. The ultimate resolution of these proceedings may have a material adverse effect on the Company’s results of operations and cash flows, potentially in the near term. In addition, the timing of the final resolution of these proceedings is uncertain. The Company will continue to incur litigation and other expenses as a result of these proceedings, which could have a material impact on the Company’s business, consolidated financial position, results of operations and cash flows. In addition, from time to time the Company may become involved in legal proceedings or be subject to claims arising in the ordinary course of the Company’s business. Although the results of litigation and claims cannot be predicted with certainty, the Company currently believes that the final outcome of these ordinary course matters will not have a material adverse effect on the Company’s business or on the Company’s consolidated financial position, results of operations or cash flows. Regardless of the outcome, litigation can have an adverse impact on the Company because of defense and settlement costs, diversion of management resources and other factors. Surety Bond On December 20, 2019, the Company filed a Notice of Appeal to appeal the final judgment issued by the California Superior Court in the ViaSat litigation. In order to stay the execution of the final judgment pending its appeal, the Company filed a surety bond in the amount of $75.0 million as provided by California Code of Civil Procedure Sec. 917.1. The bond is issued by the Philadelphia Indemnity Insurance Company (“Philadelphia Indemnity”). In support of the bond, the Company entered into an indemnity agreement with Philadelphia Indemnity to indemnify it from any liability or loss under the bond. The indemnity agreement does not require collateral to be posted at the time of the issuance of the bond. However, Philadelphia Indemnity may on demand require deposit of an amount sufficient to fund any liability or loss. For additional information, see the discussion regarding the ViaSat litigation under “Legal Contingencies” above. Indemnification In the ordinary course of business, the Company enters into various agreements containing standard indemnification provisions. The Company’s indemnification obligations under such provisions are typically in effect from the date of execution of the applicable agreement through the end of the applicable statute of limitations. During the three and nine months ended September 30, 2020 and 2019, the Company incurred an immaterial amount of expenses related to these indemnification obligations. Currently, the Company does not anticipate significant claims related to these indemnification obligations, and consequently, has concluded that the fair value of these obligations is not material. Accordingly, as of September 30, 2020 and December 31, 2019, no material amounts have been accrued related to such indemnification provisions. |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The Company is subject to income tax in the United States as well as other tax jurisdictions in which it conducts business. Earnings from non-U.S. activities are subject to local country income tax. As a result of the concept of “deemed distributions” under the U.S. Tax Cuts and Jobs Act, the impact of global intangible low-tax income (“GILTI”) on the Company’s future foreign earnings, and lack of certain foreign governments’ withholding tax imposed on dividends, the Company no longer takes the position that most of its foreign earnings are permanently reinvested. For certain foreign operating subsidiaries, the Company continues to take the position that earnings are permanently reinvested. The Company’s tax provision for interim periods has historically been determined using an estimate of its annual effective tax rate, adjusted for discrete items arising in that quarter. In each quarter, the Company updates its estimate of the annual effective tax rate, and if the estimated annual tax rate changes, the Company makes a cumulative adjustment in that quarter. The Company’s quarterly tax (benefit) provision, and its quarterly estimate of its annual effective tax rate, are subject to significant volatility due to several factors, including the Company’s ability to accurately predict its pre-tax income and loss in multiple jurisdictions, as well as the portions of stock-based compensation that will either not generate tax benefits or the tax benefit is unpredictable and reflected when realized by employees. For the three months ended September 30, 2020, the Company recorded an income tax expense of $1.7 million as compared to an income tax benefit of $2.6 million for the three months ended September 30, 2019, resulting in an effective tax rate of 6.4% and (21.2)% for the three months ended September 30, 2020 and 2019, respectively. For the nine months ended September 30, 2020, the Company recorded an income tax expense of $0.9 million as compared to an income tax benefit of $7.0 million for the nine months ended September 30, 2019, resulting in an effective tax rate of 1.7% and (54.1)% for the nine months ended September 30, 2020 and 2019, respectively. The income tax expense recorded in the three and nine months ended September 30, 2020 is primarily a result of the Company’s pre-tax income position, partially offset by the recognition of excess tax benefits from the taxable compensation on share-based awards recognized in the periods and federal and state research and development credits. The income tax benefit recorded in the three and nine months ended September 30, 2019 is primarily due to the recognition of excess tax benefits from the taxable compensation on share-based awards recognized in the periods and federal and state research and development credits. The Company’s historical income tax provision (benefit) is not necessarily reflective of its future tax provisions or results of operations. In the normal course of business, the Company is potentially subject to examination by tax authorities throughout the United States and other foreign jurisdictions in which the Company operates. All tax years since inception remain open to examination by the Internal Revenue Service (“IRS”) or state tax authorities, as carryforward attributes generated in prior period tax years may still be adjusted upon examination if they have or will be used in a future period. The Company also files foreign tax returns in the foreign jurisdictions in which it operates when required. The Company is currently being audited by the IRS for income tax years 2014 through 2017 and the state of New Jersey for income tax years 2015 through 2017. There are currently no foreign examinations in process. As of September 30, 2020 and December 31, 2019, the Company identified $7.8 million and $6.8 million, respectively, of gross uncertain tax positions. Included in those balances as of September 30, 2020 and December 31, 2019 are $3.9 million and $3.6 million, respectively, of tax benefits that, if recognized, would impact the effective tax rate. These have been accrued for as long-term liabilities on the Company’s condensed consolidated balance sheets. The Company’s existing tax positions are expected to continue to generate an increase in unrecognized tax benefits in subsequent periods. The Company’s policy is to record interest and penalties related to unrecognized tax benefits as income tax expense. During the three and nine months ended September 30, 2020 and 2019, the amounts recorded related to interest and penalties were immaterial in each period. On July 27, 2015, in Altera Corp. v. Commissioner, the U.S. Tax Court issued an opinion invalidating the regulations relating to the treatment of stock-based compensation expense in an intercompany cost-sharing arrangement. The Tax Court issued its final decision in December 2015, and under Internal Revenue Code Section 7482(b), that decision was appealable to the Ninth Circuit Court of Appeals. The IRS appealed in June 2016, and after withdrawing an initial decision that would have affirmed the Tax Court, on June 7, 2019, the Court of Appeals reversed the 2015 decision of the Tax Court and upheld the cost-sharing regulations. The Court of Appeals denied Altera’s petition for rehearing on July 22, 2019, and the United States Supreme Court denied Altera’s petition for certiorari on June 22, 2020. The Tax Court will treat the Court of Appeals decision in Altera as precedential in cases that come before the Tax Court that are appealable to the Ninth Circuit Court of Appeals. If the Company were to challenge a proposed federal income tax deficiency in the Tax Court, however, any decision in its case would be appealable under Internal Revenue Code Section 7482(b) to the First Circuit Court of Appeals. In such a case, the Tax Court would be at liberty to follow its original decision in Altera. As a result, as of September 30, 2020, the Company has determined that the decision of the Ninth Circuit Court of Appeals does not require any adjustment to the Company’s consolidated financial statements. If the Company were to adjust its consolidated financial statements to reflect the impact of following the decision of the Ninth Circuit Court of Appeals in Altera, the Company estimates that the potential impact on its prior year tax liabilities would be as much as $6.3 million on a financial statement basis. On March 27, 2020, Congress enacted the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act to provide certain relief as a result of the global spread of SARS-CoV-2 and COVID-19. The Company is currently evaluating how provisions in the CARES Act will impact the Company’s income tax obligations, if at all, or its financial position, results of operations and cash flows, but expects it to have an immaterial effect. |
SEGMENT INFORMATION AND GEOGRAP
SEGMENT INFORMATION AND GEOGRAPHIC DATA | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION AND GEOGRAPHIC DATA | SEGMENT INFORMATION AND GEOGRAPHIC DATA 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 chief operating decision maker (“CODM”), which is the Company’s president and chief executive officer, in deciding how to allocate resources and assess performance. The CODM evaluates the Company’s financial information and resources and assesses the performance of these resources on a consolidated basis. Since the Company operates in one operating segment, all required financial segment information can be found in the condensed consolidated financial statements. Revenue by country, based on ship-to destinations, which in certain instances may be the location of a contract manufacturer rather than the Company’s end customer, was as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 United States $ 18,894 $ 23,113 $ 73,096 $ 50,829 China 36,790 33,364 107,271 114,206 Germany 8,512 15,200 22,204 38,946 Thailand 66,348 20,329 123,309 66,061 Other 27,912 27,585 93,417 65,948 Total revenue $ 158,456 $ 119,591 $ 419,297 $ 335,990 Total long-lived assets by country consisted of the following as of September 30, 2020 and December 31, 2019 (in thousands): September 30, 2020 December 31, 2019 United States $ 18,728 $ 18,325 Thailand 5,110 3,870 China 1,678 1,949 Other 2,671 2,657 Total long-lived assets $ 28,187 $ 26,801 |
CONCENTRATIONS OF RISK
CONCENTRATIONS OF RISK | 9 Months Ended |
Sep. 30, 2020 | |
Risks and Uncertainties [Abstract] | |
CONCENTRATIONS OF RISK | CONCENTRATIONS OF RISK Customer Concentration Customers with revenue equal to or greater than 10% of total revenue for the three and nine months ended September 30, 2020 and 2019 were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 A 13 % 20 % 19 % 27 % B 11 % 16 % * 13 % C 13 % 17 % 19 % 15 % E 14 % 19 % 15 % 18 % H 25 % * 13 % * * Less than 10% of revenue in the period indicated Customers, which include their authorized contract manufacturers, that accounted for equal to or greater than 10% of accounts receivable at September 30, 2020 and December 31, 2019 were as follows: September 30, 2020 December 31, 2019 A 15 % 28 % B * 16 % F 36 % * G * 10 % I 10 % * * Less than 10% of accounts receivable at the date indicated Supplier Concentration The Company’s most significant vendor spending is related to purchases from contract manufacturers and component suppliers located in China and Thailand, from which the Company purchases a substantial portion of its inventory. For the three and nine months ended September 30, 2020 and 2019, total purchases from each of the suppliers were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 X 15 % 23 % 15 % 21 % Y 60 % 52 % 57 % 53 % The Company also outsources certain engineering projects to vendors located throughout the world. Research and development costs incurred with one vendor, not listed above, were 21% of the Company’s total research and development costs during the three months ended September 30, 2020, and were less than 10% of the Company’s total research and development costs for the nine months ended September 30, 2020 and the three and nine months ended September 30, 2019. |
RELATED PARTIES
RELATED PARTIES | 9 Months Ended |
Sep. 30, 2020 | |
Related Party Transactions [Abstract] | |
RELATED PARTIES | RELATED PARTIES One of the members of the Company’s board of directors, Vincent Roche, is also the President and Chief Executive Officer and a member of the board of directors of Analog Devices, Inc. (“ADI”). The Company, through its contract manufacturers, periodically purchases supplies from ADI pursuant to purchase orders negotiated on an arm’s length basis between ADI and the Company’s contract manufacturers at prevailing prices. These purchased supplies are used as content in certain of the Company’s manufactured products. Based on shipments during the respective periods, the Company’s contract manufacturers made purchases from ADI of approximately $2.5 million and $1.3 million during the three months ended September 30, 2020 and 2019, respectively, and $6.1 million and $3.0 million during the nine months ended September 30, 2020 and 2019, respectively. In 2018, the Company entered into a product development agreement with ADI related to the development of integrated circuits for $1.5 million, of which $0.5 million of costs were incurred during the three and nine months ended September 30, 2020, and $0.3 million of costs were incurred during the three and nine months ended September 30, 2019. |
BASIS OF PRESENTATION AND SUM_2
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. |
Recently Adopted and Recently Issued Accounting Pronouncements | Recently Adopted Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). ASU 2016-13 is intended to provide more decision-useful information about expected credit losses on financial instruments, including trade receivables, and other commitments to extend credit held by a reporting entity at each reporting date. The main provisions include presenting financial assets measured at amortized cost at the amount expected to be collected, which is net of an allowance for expected credit losses, and recording credit losses related to available-for-sale securities through an allowance for credit losses. On January 1, 2020, the Company adopted ASU 2016-13 using the modified retrospective approach. There was no impact from the adoption of ASU 2016-13 on the Company’s condensed consolidated financial statements. The Company is exposed to credit losses through sales of its products. The Company determines if there is an expected loss on its accounts receivables using historical collection experience, current and future economic and market conditions and a review of the current status of customers' trade accounts receivables. The Company has not recorded any allowance for credit losses as of September 30, 2020 or December 31, 2019. Refer to Note 4 for information regarding how the Company assesses credit losses on its available-for-sale debt securities. Recently Issued Accounting Pronouncements In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”). ASU 2019-12 is intended to simplify the accounting for income taxes by, among other things, eliminating certain exceptions related to the approach for intra-period tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. ASU 2019-12 is effective for fiscal years beginning after December 15, 2020, with early adoption permitted. Upon adoption, ASU 2019-12 will require companies to apply certain aspects of this standard retrospectively for all periods presented, while requiring other aspects to be applied on a modified retrospective basis through a cumulative-effect adjustment to retained earnings as of the beginning of the fiscal year of adoption. The Company expects the impact of adopting this new standard to be immaterial to its condensed consolidated financial statements. |
REVENUE (Tables)
REVENUE (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Deferred Revenue and Accounts Receivable | The opening and closing balances of the Company’s accounts receivable and deferred revenue for the nine months ended September 30, 2020 are as follows (in thousands): Balance at Beginning of Period Increase / (Decrease) Balance at End of Period Nine Months Ended September 30, 2020 Accounts receivable $ 97,948 39,298 $ 137,246 Deferred revenue (current) $ 4,483 2,490 $ 6,973 Deferred revenue (non-current) $ 3,444 (2,721) $ 723 |
Schedule of Disaggregation of Revenue | The following table provides information about disaggregated revenue based on product group (in thousands). Further disaggregation of revenue by geographic country can be found in Note 14. Three Months Ended September 30, 2020 Three Months Ended September 30, 2019 Nine Months Ended September 30, 2020 Nine Months Ended September 30, 2019 Revenue ($) Revenue (%) Revenue ($) Revenue (%) Revenue ($) Revenue (%) Revenue ($) Revenue (%) Embedded modules $ 77,586 49 % $ 27,218 23 % $ 146,093 35 % $ 66,488 20 % Pluggable modules 50,858 32 % 57,526 48 % 170,620 41 % 167,948 50 % Semiconductors 30,012 19 % 34,847 29 % 102,584 24 % 101,554 30 % Total revenue $ 158,456 100 % $ 119,591 100 % $ 419,297 100 % $ 335,990 100 % |
FINANCIAL INSTRUMENTS (Tables)
FINANCIAL INSTRUMENTS (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Cash, Cash Equivalents and Short- and Long-term Marketable Securities | The following tables set forth the Company’s cash, cash equivalents and short- and long-term marketable securities as of September 30, 2020 and December 31, 2019 (in thousands): As of September 30, 2020 Gross Unrealized Amortized Cost Gains Losses (1) Estimated Fair Value Cash and Cash Equivalents Marketable Securities Cash $ 157,866 $ — $ — $ 157,866 $ 157,866 $ — Money market funds 45,102 — — 45,102 45,102 — U.S. treasury bonds 49,655 255 — 49,910 — 49,910 Commercial paper 60,477 9 (1) 60,485 5,499 54,986 Certificates of deposit 11,907 14 — 11,921 — 11,921 Asset-backed securities 32,452 162 — 32,614 — 32,614 Corporate debt securities 180,693 630 (62) 181,261 2,757 178,504 Total $ 538,152 $ 1,070 $ (63) $ 539,159 $ 211,224 $ 327,935 (1) Losses represent marketable securities that were in loss positions for less than one year. As of December 31, 2019 Gross Unrealized Amortized Cost Gains Losses (1) Estimated Fair Value Cash and Cash Equivalents Marketable Securities Cash $ 29,116 $ — $ — $ 29,116 $ 29,116 $ — Money market funds 2,010 — — 2,010 2,010 — U.S. treasury bonds 116,710 126 (1) 116,835 — 116,835 Commercial paper 44,300 — — 44,300 5,491 38,809 Certificates of deposit 24,522 19 (2) 24,539 — 24,539 Asset-backed securities 73,370 134 (5) 73,499 — 73,499 Corporate debt securities 180,607 475 (3) 181,079 — 181,079 Total $ 470,635 $ 754 $ (11) $ 471,378 $ 36,617 $ 434,761 (1) Losses represent marketable securities that were in loss positions for less than one year. |
Proceeds from Sales and Maturities of Marketable Securities | The proceeds from the sales and maturities of marketable securities, which were primarily reinvested and resulted in realized gains and losses, were as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Proceeds from the sales and maturities of marketable securities $ 75,877 $ 124,439 $ 325,047 $ 307,927 Realized gains $ 1 $ 36 $ 110 $ 42 Realized losses $ — $ — $ — $ (2) |
Contractual Maturities of Short-term and Long-Term Marketable Securities Held | The contractual maturities of short-term and long-term marketable securities held at September 30, 2020 and December 31, 2019 are as follows (in thousands): As of September 30, 2020 As of December 31, 2019 Amortized Cost Basis Aggregate Fair Value Amortized Cost Basis Aggregate Fair Value Due within one year $ 243,602 $ 244,458 $ 299,725 $ 300,129 Due after one year through three years 83,325 83,477 134,292 134,632 Total $ 326,927 $ 327,935 $ 434,017 $ 434,761 |
INVENTORY (Tables)
INVENTORY (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventory consisted of the following as of September 30, 2020 and December 31, 2019 (in thousands): September 30, 2020 December 31, 2019 Raw materials $ 19,272 $ 24,777 Work-in-process 80 673 Finished goods 15,843 15,370 Inventory $ 35,195 $ 40,820 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment consisted of the following as of September 30, 2020 and December 31, 2019 (in thousands): September 30, 2020 December 31, 2019 Engineering laboratory equipment $ 64,737 $ 58,320 Computer software 3,940 3,730 Computer equipment 9,227 7,837 Furniture and fixtures 3,641 3,641 Leasehold improvements 4,233 3,999 Construction in progress 3,693 2,449 Total property and equipment 89,471 79,976 Less: Accumulated depreciation (61,284) (53,175) Property and equipment, net $ 28,187 $ 26,801 |
ACCRUED LIABILITIES (Tables)
ACCRUED LIABILITIES (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities | Accrued liabilities consisted of the following as of September 30, 2020 and December 31, 2019 (in thousands): September 30, 2020 December 31, 2019 Employee-related liabilities $ 7,388 $ 10,816 Current maturities of operating leases 4,455 4,228 Goods and services received not invoiced 1,776 2,297 Accrued manufacturing related expenses 1,528 3,781 Warranty reserve 8,055 10,354 Litigation and settlement accrual 28,000 20,000 Outsourced foundry expenses 10,012 2,739 Other accrued liabilities 6,117 7,465 Accrued liabilities $ 67,331 $ 61,680 |
LEASES (Tables)
LEASES (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Schedule of Lessee, Operating Leases | The table below presents the lease-related assets and liabilities recorded on the condensed consolidated balance sheet as of September 30, 2020 (in thousands): Classification on the Balance Sheet September 30, 2020 Assets Operating lease assets Operating lease right-of-use assets $ 29,470 Liabilities Current - operating Accrued liabilities 4,455 Noncurrent - operating Noncurrent operating lease liabilities 18,972 Total lease liabilities $ 23,427 Weighted-average remaining lease term - operating leases 6.3 years Weighted-average discount rate - operating leases 4.21 % |
Schedule of Maturities of Operating Lease Liabilities | The table below reconciles the undiscounted cash flows for each of the first five years and total of the remaining years to the operating lease liabilities recorded on the condensed consolidated balance sheet as of September 30, 2020 (in thousands): Operating Leases Remaining 2020 $ 1,113 2021 4,506 2022 4,338 2023 4,493 2024 4,510 Thereafter 6,992 Total minimum lease payments 25,952 Less: amount of lease payments representing interest (2,525) Present value of future minimum lease payments 23,427 Less: current obligation under leases 4,455 Long-term lease obligations $ 18,972 |
FAIR VALUE MEASUREMENT (Tables)
FAIR VALUE MEASUREMENT (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets Measured at Fair Value on Recurring Basis | The fair value of these assets measured on a recurring basis was determined using the following inputs as of September 30, 2020 and December 31, 2019 (in thousands): September 30, 2020 Quoted Prices in Active Markets Significant Other Observable Inputs Significant Unobservable Inputs Total Fair Value Assets: Money market funds $ — $ 45,102 $ — $ 45,102 U.S. treasury bonds — 49,910 — 49,910 Commercial paper — 60,485 — 60,485 Certificates of deposit — 11,921 — 11,921 Asset-backed securities — 32,614 — 32,614 Corporate debt securities — 181,261 — 181,261 Total $ — $ 381,293 $ — $ 381,293 December 31, 2019 Quoted Prices in Active Markets Significant Other Observable Inputs Significant Unobservable Inputs Total Fair Value Assets: Money market funds $ — $ 2,010 $ — $ 2,010 U.S. treasury bonds — 116,835 — 116,835 Commercial paper — 44,300 — 44,300 Certificates of deposit — 24,539 — 24,539 Asset-backed securities — 73,499 — 73,499 Corporate debt securities — 181,079 — 181,079 Total $ — $ 442,262 $ — $ 442,262 |
STOCK COMPENSATION PLANS (Table
STOCK COMPENSATION PLANS (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Classification of Stock-based Compensation | The following table summarizes the classification of stock-based compensation in the condensed consolidated statements of operations for the three and nine months ended September 30, 2020 and 2019 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Cost of revenue $ 491 $ 481 $ 1,561 $ 1,572 Research and development 5,161 5,330 16,792 15,401 Sales, general and administrative 2,396 2,899 7,863 8,744 Total stock-based compensation $ 8,048 $ 8,710 $ 26,216 $ 25,717 |
Schedule of Stock-Based Compensation Expense by Award Type | The following table summarizes stock-based compensation expense by award type for the three and nine months ended September 30, 2020 and 2019 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Stock options $ 52 $ 340 $ 482 $ 1,544 Restricted stock units 7,836 7,936 25,316 22,994 Employee stock purchase plan — 330 — 961 Other awards 160 104 418 218 Total stock-based compensation $ 8,048 $ 8,710 $ 26,216 $ 25,717 |
Schedule of Stock Option Activity | A summary of stock option activity under the Company’s equity incentive plans for the nine months ended September 30, 2020 is as follows: Number of Options Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding at December 31, 2019 715 $ 11.14 4.6 $ 41,036 Granted — $ — Exercised (78) $ 9.07 $ 4,569 Canceled — $ — Outstanding at September 30, 2020 637 $ 11.39 3.7 $ 36,232 Vested and expected to vest at: September 30, 2020 637 $ 11.39 3.7 $ 36,232 December 31, 2019 715 $ 11.14 4.6 $ 41,036 Exercisable at: September 30, 2020 633 $ 11.27 3.7 $ 36,063 December 31, 2019 671 $ 9.99 4.4 $ 39,212 |
Schedule of Summary of Changes in Company's RSU | A summary of the changes in the Company’s RSUs during the nine months ended September 30, 2020 is as follows: RSUs Weighted-Average Grant Date Fair Value Outstanding at December 31, 2019 1,951 $ 48.69 Granted 175 $ 68.18 Vested (601) $ 41.24 Canceled (5) $ 56.35 Outstanding at September 30, 2020 1,520 $ 53.86 |
NET INCOME PER SHARE (Tables)
NET INCOME PER SHARE (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Net Income Per Share | The following table sets forth the computation of the Company’s basic and diluted net income per share (in thousands, except per share amounts): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Numerator: Net income $ 24,289 $ 15,105 $ 56,014 $ 20,057 Denominator: Weighted-average shares used to compute net income per share - basic 42,061 41,119 41,841 40,730 Dilutive effect of stock options, unvested restricted stock units and employee stock purchase plan 1,168 1,548 1,354 1,674 Weighted-average shares used to compute net income per share - diluted 43,229 42,667 43,195 42,404 Net income per share Basic $ 0.58 $ 0.37 $ 1.34 $ 0.49 Diluted $ 0.56 $ 0.35 $ 1.30 $ 0.47 |
Summary of Common Stock Equivalents Excluded from Computation of Diluted Net Income Per Share | The following common stock equivalents (in thousands) were excluded from the computation of diluted net income per share for the periods presented because including them would have been antidilutive: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Options to purchase common stock 14 38 14 38 Unvested restricted stock units — 33 — 31 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Changes in Product Warrant Liability | Changes in the Company’s warranty liability, which is included as a component of accrued liabilities on the condensed consolidated balance sheets, are set forth in the table below (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Warranty reserve, beginning of period $ 9,629 $ 10,833 $ 10,354 $ 8,220 Provisions made to warranty reserve during the period 382 2,431 4,271 12,067 Charges against warranty reserve during the period (1,956) (2,730) (6,570) (9,753) Warranty reserve, end of period $ 8,055 $ 10,534 $ 8,055 $ 10,534 |
SEGMENT INFORMATION AND GEOGR_2
SEGMENT INFORMATION AND GEOGRAPHIC DATA (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Summary of Revenue by Country | Revenue by country, based on ship-to destinations, which in certain instances may be the location of a contract manufacturer rather than the Company’s end customer, was as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 United States $ 18,894 $ 23,113 $ 73,096 $ 50,829 China 36,790 33,364 107,271 114,206 Germany 8,512 15,200 22,204 38,946 Thailand 66,348 20,329 123,309 66,061 Other 27,912 27,585 93,417 65,948 Total revenue $ 158,456 $ 119,591 $ 419,297 $ 335,990 |
Summary of Total Long-Lived Assets by Country | Total long-lived assets by country consisted of the following as of September 30, 2020 and December 31, 2019 (in thousands): September 30, 2020 December 31, 2019 United States $ 18,728 $ 18,325 Thailand 5,110 3,870 China 1,678 1,949 Other 2,671 2,657 Total long-lived assets $ 28,187 $ 26,801 |
CONCENTRATIONS OF RISK (Tables)
CONCENTRATIONS OF RISK (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Risks and Uncertainties [Abstract] | |
Summary of Concentrations of Risk | Customers with revenue equal to or greater than 10% of total revenue for the three and nine months ended September 30, 2020 and 2019 were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 A 13 % 20 % 19 % 27 % B 11 % 16 % * 13 % C 13 % 17 % 19 % 15 % E 14 % 19 % 15 % 18 % H 25 % * 13 % * * Less than 10% of revenue in the period indicated Customers, which include their authorized contract manufacturers, that accounted for equal to or greater than 10% of accounts receivable at September 30, 2020 and December 31, 2019 were as follows: September 30, 2020 December 31, 2019 A 15 % 28 % B * 16 % F 36 % * G * 10 % I 10 % * * Less than 10% of accounts receivable at the date indicated Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 X 15 % 23 % 15 % 21 % Y 60 % 52 % 57 % 53 % |
NATURE OF THE BUSINESS AND OP_2
NATURE OF THE BUSINESS AND OPERATIONS - (Details) $ / shares in Units, $ in Millions | Jul. 08, 2019$ / shares | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($)GB | Sep. 30, 2019USD ($) |
Organization Consolidation and Presentation of Financial Statements Disclosure | ||||
Optical interconnect modules transmission speed | 400 | |||
Sales, general and administrative | ||||
Organization Consolidation and Presentation of Financial Statements Disclosure | ||||
Business combination, acquisition related costs | $ | $ 6.4 | $ 1.6 | $ 7 | |
Cisco Systems | Plan | ||||
Organization Consolidation and Presentation of Financial Statements Disclosure | ||||
Business combination, conversion of stock (in USD per share) | $ / shares | $ 70 | |||
Minimum | ||||
Organization Consolidation and Presentation of Financial Statements Disclosure | ||||
Optical interconnect modules transmission speed | 100 | |||
Maximum | ||||
Organization Consolidation and Presentation of Financial Statements Disclosure | ||||
Optical interconnect modules transmission speed | 1,200 |
REVENUE - Deferred Revenue and
REVENUE - Deferred Revenue and Accounts Receivable (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Accounts receivable | ||
Balance at Beginning of Period | $ 97,948 | |
Increase / (Decrease) | 39,298 | $ 8,913 |
Balance at End of Period | 137,246 | |
Deferred revenue (current) | ||
Balance at Beginning of Period | 4,483 | |
Increase / (Decrease) | 2,490 | |
Balance at End of Period | 6,973 | |
Deferred revenue (non-current) | ||
Balance at Beginning of Period | 3,444 | |
Increase / (Decrease) | (2,721) | |
Balance at End of Period | $ 723 |
REVENUE - Narrative (Details)
REVENUE - Narrative (Details) | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Deferred revenue | $ 3,200,000 |
Capitalized contracts | $ 0 |
REVENUE - Disaggregation of Rev
REVENUE - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Disaggregation of Revenue | ||||
Revenue | $ 158,456 | $ 119,591 | $ 419,297 | $ 335,990 |
Revenue (%) | 100.00% | 100.00% | 100.00% | 100.00% |
Embedded modules | ||||
Disaggregation of Revenue | ||||
Revenue | $ 77,586 | $ 27,218 | $ 146,093 | $ 66,488 |
Revenue (%) | 49.00% | 23.00% | 35.00% | 20.00% |
Pluggable modules | ||||
Disaggregation of Revenue | ||||
Revenue | $ 50,858 | $ 57,526 | $ 170,620 | $ 167,948 |
Revenue (%) | 32.00% | 48.00% | 41.00% | 50.00% |
Semiconductors | ||||
Disaggregation of Revenue | ||||
Revenue | $ 30,012 | $ 34,847 | $ 102,584 | $ 101,554 |
Revenue (%) | 19.00% | 29.00% | 24.00% | 30.00% |
FINANCIAL INSTRUMENTS - Schedul
FINANCIAL INSTRUMENTS - Schedule of Cash, Cash Equivalents and Short- and Long-term Marketable Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Schedule Of Cash Cash Equivalents And Marketable Securities | ||
Amortized Cost | $ 538,152 | $ 470,635 |
Gross Unrealized Gains | 1,070 | 754 |
Gross Unrealized Losses Less than One Year | (63) | (11) |
Estimated Fair Value | 539,159 | 471,378 |
Cash and Cash Equivalents | 211,224 | 36,617 |
Marketable Securities | 327,935 | 434,761 |
U.S. treasury bonds | ||
Schedule Of Cash Cash Equivalents And Marketable Securities | ||
Amortized Cost | 49,655 | 116,710 |
Gross Unrealized Gains | 255 | 126 |
Gross Unrealized Losses Less than One Year | 0 | (1) |
Estimated Fair Value | 49,910 | 116,835 |
Cash and Cash Equivalents | 0 | 0 |
Marketable Securities | 49,910 | 116,835 |
Commercial paper | ||
Schedule Of Cash Cash Equivalents And Marketable Securities | ||
Amortized Cost | 60,477 | 44,300 |
Gross Unrealized Gains | 9 | 0 |
Gross Unrealized Losses Less than One Year | (1) | 0 |
Estimated Fair Value | 60,485 | 44,300 |
Cash and Cash Equivalents | 5,499 | 5,491 |
Marketable Securities | 54,986 | 38,809 |
Certificates of deposit | ||
Schedule Of Cash Cash Equivalents And Marketable Securities | ||
Amortized Cost | 11,907 | 24,522 |
Gross Unrealized Gains | 14 | 19 |
Gross Unrealized Losses Less than One Year | 0 | (2) |
Estimated Fair Value | 11,921 | 24,539 |
Cash and Cash Equivalents | 0 | 0 |
Marketable Securities | 11,921 | 24,539 |
Asset-backed securities | ||
Schedule Of Cash Cash Equivalents And Marketable Securities | ||
Amortized Cost | 32,452 | 73,370 |
Gross Unrealized Gains | 162 | 134 |
Gross Unrealized Losses Less than One Year | 0 | (5) |
Estimated Fair Value | 32,614 | 73,499 |
Cash and Cash Equivalents | 0 | 0 |
Marketable Securities | 32,614 | 73,499 |
Corporate debt securities | ||
Schedule Of Cash Cash Equivalents And Marketable Securities | ||
Amortized Cost | 180,693 | 180,607 |
Gross Unrealized Gains | 630 | 475 |
Gross Unrealized Losses Less than One Year | (62) | (3) |
Estimated Fair Value | 181,261 | 181,079 |
Cash and Cash Equivalents | 2,757 | 0 |
Marketable Securities | 178,504 | 181,079 |
Cash | ||
Schedule Of Cash Cash Equivalents And Marketable Securities | ||
Amortized Cost | 157,866 | 29,116 |
Estimated Fair Value | 157,866 | 29,116 |
Cash and Cash Equivalents | 157,866 | 29,116 |
Marketable Securities | 0 | 0 |
Money market funds | ||
Schedule Of Cash Cash Equivalents And Marketable Securities | ||
Amortized Cost | 45,102 | 2,010 |
Estimated Fair Value | 45,102 | 2,010 |
Cash and Cash Equivalents | 45,102 | 2,010 |
Marketable Securities | $ 0 | $ 0 |
FINANCIAL INSTRUMENTS - Proceed
FINANCIAL INSTRUMENTS - Proceeds from Sales and Maturities of Marketable Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Proceeds from the sales and maturities of marketable securities | $ 75,877 | $ 124,439 | $ 325,047 | $ 307,927 |
Realized gains | 1 | 36 | 110 | 42 |
Realized losses | $ 0 | $ 0 | $ 0 | $ (2) |
FINANCIAL INSTRUMENTS - Contrac
FINANCIAL INSTRUMENTS - Contractual Maturities of Short-term and Long-term Marketable Securities Held (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Amortized Cost Basis | ||
Due within one year | $ 243,602 | $ 299,725 |
Due after one year through three years | 83,325 | 134,292 |
Amortized Cost Basis | 326,927 | 434,017 |
Aggregate Fair Value | ||
Due within one year | 244,458 | 300,129 |
Due after one year through three years | 83,477 | 134,632 |
Aggregate Fair Value | $ 327,935 | $ 434,761 |
INVENTORY - Schedule of Invento
INVENTORY - Schedule of Inventory (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 19,272 | $ 24,777 |
Work-in-process | 80 | 673 |
Finished goods | 15,843 | 15,370 |
Inventory | $ 35,195 | $ 40,820 |
PROPERTY AND EQUIPMENT - Schedu
PROPERTY AND EQUIPMENT - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment | ||
Total property and equipment | $ 89,471 | $ 79,976 |
Less: Accumulated depreciation | (61,284) | (53,175) |
Property and equipment, net | 28,187 | 26,801 |
Engineering laboratory equipment | ||
Property, Plant and Equipment | ||
Total property and equipment | 64,737 | 58,320 |
Computer software | ||
Property, Plant and Equipment | ||
Total property and equipment | 3,940 | 3,730 |
Computer equipment | ||
Property, Plant and Equipment | ||
Total property and equipment | 9,227 | 7,837 |
Furniture and fixtures | ||
Property, Plant and Equipment | ||
Total property and equipment | 3,641 | 3,641 |
Leasehold improvements | ||
Property, Plant and Equipment | ||
Total property and equipment | 4,233 | 3,999 |
Construction in progress | ||
Property, Plant and Equipment | ||
Total property and equipment | $ 3,693 | $ 2,449 |
PROPERTY AND EQUIPMENT - Narrat
PROPERTY AND EQUIPMENT - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation expense | $ 2,800 | $ 2,900 | $ 8,109 | $ 9,274 |
ACCRUED LIABILITIES - Schedule
ACCRUED LIABILITIES - Schedule of Accrued Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 |
Payables and Accruals [Abstract] | ||||||
Employee-related liabilities | $ 7,388 | $ 10,816 | ||||
Current maturities of operating leases | 4,455 | 4,228 | ||||
Goods and services received not invoiced | 1,776 | 2,297 | ||||
Accrued manufacturing related expenses | 1,528 | 3,781 | ||||
Warranty reserve | 8,055 | $ 9,629 | 10,354 | $ 10,534 | $ 10,833 | $ 8,220 |
Litigation and settlement accrual | 28,000 | 20,000 | ||||
Outsourced foundry expenses | 10,012 | 2,739 | ||||
Other accrued liabilities | 6,117 | 7,465 | ||||
Accrued liabilities | $ 67,331 | $ 61,680 |
LEASES - Balance Sheet Classifi
LEASES - Balance Sheet Classification of Lease Assets and Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Operating lease right-of-use assets | $ 29,470 | $ 25,046 |
Accrued liabilities | 4,455 | 4,228 |
Noncurrent operating lease liabilities | 18,972 | $ 15,726 |
Total lease liabilities | $ 23,427 | |
Weighted-average remaining lease term - operating leases | 6 years 3 months 18 days | |
Weighted-average discount rate - operating leases (percent) | 4.21% |
LEASES - Narrative (Details)
LEASES - Narrative (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020USD ($)numberOfOption | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($)numberOfOption | Sep. 30, 2019USD ($) | |
Lessee, Lease, Description | ||||
Number of renewal options (option) | numberOfOption | 1 | 1 | ||
Operating lease, cost | $ 1.5 | $ 1.5 | $ 4.5 | $ 4.1 |
Payments for lease liabilities | $ 1.1 | $ 1.1 | $ 3.3 | $ 3.1 |
Minimum | ||||
Lessee, Lease, Description | ||||
Remaining lease term (years) | 1 year | |||
Renewal term (years) | 3 years | 3 years | ||
Maximum | ||||
Lessee, Lease, Description | ||||
Remaining lease term (years) | 8 years | |||
Renewal term (years) | 5 years | 5 years | ||
Leasehold improvements | ||||
Lessee, Lease, Description | ||||
Contractual obligation | $ 0.5 | $ 0.5 |
LEASES - Maturities of Operatin
LEASES - Maturities of Operating Leases Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Operating Leases, After Adoption of 842 | ||
Remaining 2020 | $ 1,113 | |
2021 | 4,506 | |
2022 | 4,338 | |
2023 | 4,493 | |
2024 | 4,510 | |
Thereafter | 6,992 | |
Total minimum lease payments | 25,952 | |
Less: amount of lease payments representing interest | (2,525) | |
Present value of future minimum lease payments | 23,427 | |
Less: current obligation under leases | 4,455 | $ 4,228 |
Long-term lease obligations | $ 18,972 | $ 15,726 |
FAIR VALUE MEASUREMENT - Summar
FAIR VALUE MEASUREMENT - Summary of Assets And Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash and cash equivalents | $ 211,224 | $ 36,617 |
Debt securities | 327,935 | 434,761 |
Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash and cash equivalents | 0 | 0 |
Debt securities | 32,614 | 73,499 |
Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash and cash equivalents | 2,757 | 0 |
Debt securities | 178,504 | 181,079 |
Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash and cash equivalents | 45,102 | 2,010 |
Debt securities | 0 | 0 |
Recurring Basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Total assets | 381,293 | 442,262 |
Recurring Basis | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Debt securities | 32,614 | 73,499 |
Recurring Basis | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Debt securities | 181,261 | 181,079 |
Recurring Basis | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash and cash equivalents | 45,102 | 2,010 |
Recurring Basis | U.S. treasury bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash and cash equivalents | 49,910 | 116,835 |
Recurring Basis | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash and cash equivalents | 60,485 | 44,300 |
Recurring Basis | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash and cash equivalents | 11,921 | 24,539 |
Recurring Basis | Quoted Prices in Active Markets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Total assets | 0 | 0 |
Recurring Basis | Quoted Prices in Active Markets (Level 1) | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Debt securities | 0 | 0 |
Recurring Basis | Quoted Prices in Active Markets (Level 1) | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Debt securities | 0 | 0 |
Recurring Basis | Quoted Prices in Active Markets (Level 1) | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash and cash equivalents | 0 | 0 |
Recurring Basis | Quoted Prices in Active Markets (Level 1) | U.S. treasury bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash and cash equivalents | 0 | 0 |
Recurring Basis | Quoted Prices in Active Markets (Level 1) | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash and cash equivalents | 0 | 0 |
Recurring Basis | Quoted Prices in Active Markets (Level 1) | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash and cash equivalents | 0 | 0 |
Recurring Basis | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Total assets | 381,293 | 442,262 |
Recurring Basis | Significant Other Observable Inputs (Level 2) | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Debt securities | 32,614 | 73,499 |
Recurring Basis | Significant Other Observable Inputs (Level 2) | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Debt securities | 181,261 | 181,079 |
Recurring Basis | Significant Other Observable Inputs (Level 2) | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash and cash equivalents | 45,102 | 2,010 |
Recurring Basis | Significant Other Observable Inputs (Level 2) | U.S. treasury bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash and cash equivalents | 49,910 | 116,835 |
Recurring Basis | Significant Other Observable Inputs (Level 2) | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash and cash equivalents | 60,485 | 44,300 |
Recurring Basis | Significant Other Observable Inputs (Level 2) | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash and cash equivalents | 11,921 | 24,539 |
Recurring Basis | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Total assets | 0 | 0 |
Recurring Basis | Significant Unobservable Inputs (Level 3) | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Debt securities | 0 | 0 |
Recurring Basis | Significant Unobservable Inputs (Level 3) | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Debt securities | 0 | 0 |
Recurring Basis | Significant Unobservable Inputs (Level 3) | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash and cash equivalents | 0 | 0 |
Recurring Basis | Significant Unobservable Inputs (Level 3) | U.S. treasury bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash and cash equivalents | 0 | 0 |
Recurring Basis | Significant Unobservable Inputs (Level 3) | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash and cash equivalents | 0 | 0 |
Recurring Basis | Significant Unobservable Inputs (Level 3) | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash and cash equivalents | $ 0 | $ 0 |
FAIR VALUE MEASUREMENT - Narrat
FAIR VALUE MEASUREMENT - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | ||||
Transfers between fair value measurement levels | $ 0 | $ 0 | $ 0 | $ 0 |
STOCK COMPENSATION PLANS - Clas
STOCK COMPENSATION PLANS - Classification of Stock-based Compensation (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount | ||||
Total stock-based compensation | $ 8,048 | $ 8,710 | $ 26,216 | $ 25,717 |
Cost of revenue | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount | ||||
Total stock-based compensation | 491 | 481 | 1,561 | 1,572 |
Research and development | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount | ||||
Total stock-based compensation | 5,161 | 5,330 | 16,792 | 15,401 |
Sales, general and administrative | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount | ||||
Total stock-based compensation | $ 2,396 | $ 2,899 | $ 7,863 | $ 8,744 |
STOCK COMPENSATION PLANS - Sche
STOCK COMPENSATION PLANS - Schedule of Stock-Based Compensation Expense by Award Type (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount | ||||
Total stock-based compensation | $ 8,048 | $ 8,710 | $ 26,216 | $ 25,717 |
Stock options | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount | ||||
Total stock-based compensation | 52 | 340 | 482 | 1,544 |
Restricted stock units | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount | ||||
Total stock-based compensation | 7,836 | 7,936 | 25,316 | 22,994 |
Employee stock purchase plan | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount | ||||
Total stock-based compensation | 0 | 330 | 0 | 961 |
Other awards | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount | ||||
Total stock-based compensation | $ 160 | $ 104 | $ 418 | $ 218 |
STOCK COMPENSATION PLANS - Stoc
STOCK COMPENSATION PLANS - Stock Option Activity (Details) $ / shares in Units, shares in Thousands, $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020USD ($)$ / sharesshares | Dec. 31, 2019USD ($)$ / sharesshares | |
Number of Options (in thousands) | ||
Beginning balance (in shares) | shares | 715 | |
Granted (in shares) | shares | 0 | |
Exercised (in shares) | shares | (78) | |
Cancelled (in shares) | shares | 0 | |
Ending balance (in shares) | shares | 637 | 715 |
Vested and expected to vest (in shares) | shares | 637 | 715 |
Exercisable (in shares) | shares | 633 | 671 |
Weighted-Average Exercise Price | ||
Beginning balance (in USD per share) | $ / shares | $ 11.14 | |
Granted (in USD per share) | $ / shares | 0 | |
Exercised (in USD per share) | $ / shares | 9.07 | |
Canceled (in USD per share) | $ / shares | 0 | |
Ending balance (in USD per share) | $ / shares | 11.39 | $ 11.14 |
Vested and expected to vest (in USD per share) | $ / shares | 11.39 | 11.14 |
Exercisable (in USD per share) | $ / shares | $ 11.27 | $ 9.99 |
Weighted-Average Remaining Contractual Term (in years) | ||
Outstanding (in years) | 3 years 8 months 12 days | 4 years 7 months 6 days |
Vested and expected to vest (in years) | 3 years 8 months 12 days | 4 years 7 months 6 days |
Exercisable (in years) | 3 years 8 months 12 days | 4 years 4 months 24 days |
Aggregate Intrinsic Value (in thousands) | ||
Beginning balance | $ | $ 41,036 | |
Exercised | $ | 4,569 | |
Ending balance | $ | 36,232 | $ 41,036 |
Vested and expected to vest | $ | 36,232 | 41,036 |
Exercisable | $ | $ 36,063 | $ 39,212 |
STOCK COMPENSATION PLANS - Narr
STOCK COMPENSATION PLANS - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Number of options granted (in shares) | 0 | ||||
Stock options | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Total unrecognized compensation cost, stock options | $ 100,000 | $ 100,000 | $ 500,000 | ||
Weighted average recognition period (years) | 1 year 7 months 6 days | 7 months 6 days | |||
Number of options granted (in shares) | 0 | 0 | 0 | 0 | |
Restricted stock units | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Weighted average recognition period (years) | 2 years 1 month 6 days | 2 years 1 month 6 days | |||
Restricted stock units granted (in shares) | 175,000 | ||||
Vested awards settled in cash | $ 0 | ||||
Unrecognized stock-based compensation expense | $ 56,400,000 | $ 56,400,000 | $ 70,100,000 | ||
Restricted stock units | Employees and Executives | 2016 Equity Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Restricted stock units granted (in shares) | 175,000 | ||||
Awards vesting period (years) | 4 years |
STOCK COMPENSATION PLANS - Chan
STOCK COMPENSATION PLANS - Changes in Company Restricted Stock Units (Details) - Restricted stock units shares in Thousands | 9 Months Ended |
Sep. 30, 2020$ / sharesshares | |
RSUs (in thousands) | |
Beginning balance (in shares) | shares | 1,951 |
Granted (in shares) | shares | 175 |
Vested (in shares) | shares | (601) |
Cancelled (in shares) | shares | (5) |
Ending balance (in shares) | shares | 1,520 |
Weighted-Average Grant Date Fair Value | |
Beginning balance (in USD per share) | $ / shares | $ 48.69 |
Granted (in USD per share) | $ / shares | 68.18 |
Vested (in USD per share) | $ / shares | 41.24 |
Cancelled (in USD per share) | $ / shares | 56.35 |
Ending balance (in USD per share) | $ / shares | $ 53.86 |
NET INCOME PER SHARE - Computat
NET INCOME PER SHARE - Computation of Basic and Diluted Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Numerator: | ||||||||
Net income | $ 24,289 | $ 16,081 | $ 15,644 | $ 15,105 | $ (2,025) | $ 6,977 | $ 56,014 | $ 20,057 |
Denominator: | ||||||||
Weighted-average shares used to compute net income per share - basic (in shares) | 42,061 | 41,119 | 41,841 | 40,730 | ||||
Dilutive effect of stock options, unvested restricted stock units and employee stock purchase plan (in shares) | 1,168 | 1,548 | 1,354 | 1,674 | ||||
Weighted-average shares used to compute net income per share - diluted (in shares) | 43,229 | 42,667 | 43,195 | 42,404 | ||||
Net income per share | ||||||||
Basic (in USD per share) | $ 0.58 | $ 0.37 | $ 1.34 | $ 0.49 | ||||
Diluted (in USD per share) | $ 0.56 | $ 0.35 | $ 1.30 | $ 0.47 |
NET INCOME PER SHARE - Summary
NET INCOME PER SHARE - Summary of Common Stock Equivalents Excluded from Computation of Diluted Net Income Per Share (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Options to purchase common stock | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||||
Antidilutive shares excluded from computation of earnings per share (in shares) | 14 | 38 | 14 | 38 |
Unvested restricted stock units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||||
Antidilutive shares excluded from computation of earnings per share (in shares) | 0 | 33 | 0 | 31 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Narrative (Details) - USD ($) | Jan. 17, 2020 | Jul. 18, 2019 | Jul. 17, 2019 | Sep. 30, 2020 | Dec. 31, 2019 | Dec. 20, 2019 |
Loss Contingencies | ||||||
Litigation and settlement accrual | $ 28,000,000 | $ 20,000,000 | ||||
Indemnification | ||||||
Loss Contingencies | ||||||
Litigation and settlement accrual | $ 0 | $ 0 | ||||
Minimum | ||||||
Loss Contingencies | ||||||
Standard warranty period on repair or replacement of defective products (years) | 12 months | |||||
Maximum | ||||||
Loss Contingencies | ||||||
Standard warranty period on repair or replacement of defective products (years) | 24 months | |||||
Pending Litigation | ViaSat, Inc. U.S. District Court for the Southern District of California | ||||||
Loss Contingencies | ||||||
Surety bond, amount | $ 75,000,000 | |||||
Pending Litigation | ViaSat, Inc. U.S. District Court for the Southern District of California | Breach Of Contract | ||||||
Loss Contingencies | ||||||
Litigation settlement, amount awarded to other party | $ 100,000 | $ 12,800,000 | $ 49,300,000 | |||
Litigation settlement, post trail expense, cost-of-proof sanctions | 6,200,000 | |||||
Pending Litigation | ViaSat, Inc. U.S. District Court for the Southern District of California | Trade Secret Misappropriation | ||||||
Loss Contingencies | ||||||
Litigation settlement, amount awarded to other party | 1 | |||||
Litigation settlement, amount awarded from other party | $ 1 | |||||
Pending Litigation | ViaSat, Inc. U.S. District Court for the Southern District of California | Maximum | Breach Of Contract | ||||||
Loss Contingencies | ||||||
Litigation settlement, post trial expense | $ 10,000,000 | |||||
Pending Litigation | ViaSat, Inc. Commonwealth of Massachusetts | ||||||
Loss Contingencies | ||||||
Litigation and settlement accrual | $ 28,000,000 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Schedule of Changes in Product Warrant Liability (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Movement in Standard Product Warranty Accrual | ||||
Warranty reserve, beginning of period | $ 9,629 | $ 10,833 | $ 10,354 | $ 8,220 |
Provisions made to warranty reserve during the period | 382 | 2,431 | 4,271 | 12,067 |
Charges against warranty reserve during the period | (1,956) | (2,730) | (6,570) | (9,753) |
Warranty reserve, end of period | $ 8,055 | $ 10,534 | $ 8,055 | $ 10,534 |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Operating Loss Carryforwards | |||||
Benefit from income taxes | $ 1,655 | $ (2,642) | $ 944 | $ (7,039) | |
Effective income tax rate (percent) | 6.40% | (21.20%) | 1.70% | (54.10%) | |
Uncertain tax positions | $ 7,800 | $ 7,800 | $ 6,800 | ||
Unrecognized tax benefits that, if recognized, would favorably impact effective tax rate | $ 3,900 | 3,900 | $ 3,600 | ||
Domestic Tax Authority | |||||
Operating Loss Carryforwards | |||||
Estimate of possible loss | $ 6,300 |
SEGMENT INFORMATION AND GEOGR_3
SEGMENT INFORMATION AND GEOGRAPHIC DATA - Narrative (Details) | 9 Months Ended |
Sep. 30, 2020segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 1 |
SEGMENT INFORMATION AND GEOGR_4
SEGMENT INFORMATION AND GEOGRAPHIC DATA - Summary of Revenue by Country (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Segment Reporting Information | ||||
Revenue | $ 158,456 | $ 119,591 | $ 419,297 | $ 335,990 |
United States | ||||
Segment Reporting Information | ||||
Revenue | 18,894 | 23,113 | 73,096 | 50,829 |
China | ||||
Segment Reporting Information | ||||
Revenue | 36,790 | 33,364 | 107,271 | 114,206 |
Germany | ||||
Segment Reporting Information | ||||
Revenue | 8,512 | 15,200 | 22,204 | 38,946 |
Thailand | ||||
Segment Reporting Information | ||||
Revenue | 66,348 | 20,329 | 123,309 | 66,061 |
Other | ||||
Segment Reporting Information | ||||
Revenue | $ 27,912 | $ 27,585 | $ 93,417 | $ 65,948 |
SEGMENT INFORMATION AND GEOGR_5
SEGMENT INFORMATION AND GEOGRAPHIC DATA - Summary of Total Long-Lived Assets by Country (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Segment Reporting Information | ||
Total long-lived assets | $ 28,187 | $ 26,801 |
United States | ||
Segment Reporting Information | ||
Total long-lived assets | 18,728 | 18,325 |
Thailand | ||
Segment Reporting Information | ||
Total long-lived assets | 5,110 | 3,870 |
China | ||
Segment Reporting Information | ||
Total long-lived assets | 1,678 | 1,949 |
Other | ||
Segment Reporting Information | ||
Total long-lived assets | $ 2,671 | $ 2,657 |
CONCENTRATIONS OF RISK - Summar
CONCENTRATIONS OF RISK - Summary of Customer Concentration of Total Revenue (Details) - Customer Concentration Risk - Revenue Benchmark | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Customer A | ||||
Concentration Risk | ||||
Concentration risk, percentage | 13.00% | 20.00% | 19.00% | 27.00% |
Customer B | ||||
Concentration Risk | ||||
Concentration risk, percentage | 11.00% | 16.00% | 13.00% | |
Customer C | ||||
Concentration Risk | ||||
Concentration risk, percentage | 13.00% | 17.00% | 19.00% | 15.00% |
Customer E | ||||
Concentration Risk | ||||
Concentration risk, percentage | 14.00% | 19.00% | 15.00% | 18.00% |
Customer H | ||||
Concentration Risk | ||||
Concentration risk, percentage | 25.00% | 13.00% |
CONCENTRATIONS OF RISK - Summ_2
CONCENTRATIONS OF RISK - Summary of Customer Concentration of Accounts Receivable (Details) - Customer Concentration Risk - Accounts Receivable | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Customer A | ||
Concentration Risk | ||
Concentration risk, percentage | 15.00% | 28.00% |
Customer B | ||
Concentration Risk | ||
Concentration risk, percentage | 16.00% | |
Customer F | ||
Concentration Risk | ||
Concentration risk, percentage | 36.00% | |
Customer G | ||
Concentration Risk | ||
Concentration risk, percentage | 10.00% | |
Customer I | ||
Concentration Risk | ||
Concentration risk, percentage | 10.00% |
CONCENTRATIONS OF RISK - Summ_3
CONCENTRATIONS OF RISK - Summary of Supplier Concentration (Details) - Supplier Concentration Risk - Purchases | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Supplier X | ||||
Concentration Risk | ||||
Concentration risk, percentage | 15.00% | 23.00% | 15.00% | 21.00% |
Supplier Y | ||||
Concentration Risk | ||||
Concentration risk, percentage | 60.00% | 52.00% | 57.00% | 53.00% |
CONCENTRATIONS OF RISK - Narrat
CONCENTRATIONS OF RISK - Narrative (Details) | 3 Months Ended |
Sep. 30, 2020 | |
Supplier Z | Supplier Concentration Risk | Purchases | |
Concentration Risk | |
Concentration risk, percentage | 21.00% |
RELATED PARTIES - Narrative (De
RELATED PARTIES - Narrative (Details) - ADI - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2018 | |
Related Party Transaction | |||||
Purchase from related party | $ 2.5 | $ 1.3 | $ 6.1 | $ 3 | |
Product development agreement | $ 1.5 | ||||
Product development agreement costs incurred | $ 0.5 | $ 0.3 | $ 0.5 | $ 0.3 |