DEI Document
DEI Document - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 26, 2016 | Jun. 30, 2015 | |
DEI [Abstract] | |||
Entity Registrant Name | Radisys Corporation | ||
Entity Central Index Key | 873,044 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 37,026,201 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Public Float | $ 92,813,939 | ||
Entity Current Reporting Status | Yes |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Statement [Abstract] | |||
Revenues | $ 184,593 | $ 192,742 | $ 237,863 |
Cost of sales: | |||
Cost of sales | 124,579 | 132,730 | 165,166 |
Amortization of purchased technology | 7,862 | 8,210 | 8,559 |
Total cost of sales | 132,441 | 140,940 | 173,725 |
Gross margin | 52,152 | 51,802 | 64,138 |
Research and development | 25,529 | 31,958 | 45,000 |
Selling, general and administrative | 30,628 | 35,862 | 41,210 |
Intangible assets amortization | 5,040 | 5,077 | 5,215 |
Restructuring and other charges, net | 5,020 | 4,205 | 7,479 |
Loss from operations | (14,065) | (25,300) | (34,766) |
Interest expense | (515) | (1,242) | (1,220) |
Interest income | 96 | 64 | 26 |
Other income | 1,548 | 1,389 | 1,511 |
Loss before income tax expense | (12,936) | (25,089) | (34,449) |
Income tax expense | 1,742 | 2,492 | 14,955 |
Net loss | $ (14,678) | $ (27,581) | $ (49,404) |
Net loss per share: | |||
Basic | $ (0.40) | $ (0.79) | $ (1.72) |
Diluted | $ (0.40) | $ (0.79) | $ (1.72) |
Weighted average shares outstanding: | |||
Basic | 36,789 | 34,699 | 28,805 |
Diluted | 36,789 | 34,699 | 28,805 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 20,764 | $ 31,242 |
Accounts receivable, net | 60,942 | 43,845 |
Other receivables | 11,304 | 6,324 |
Deferred cost of sales | 14,113 | 176 |
Inventories, net | 16,812 | 18,475 |
Other current assets | 2,794 | 3,276 |
Total current assets | 126,729 | 103,338 |
Property and equipment, net | 6,134 | 9,786 |
Intangible assets, net | 30,322 | 43,224 |
Long-term deferred tax assets, net | 1,173 | 1,080 |
Other assets | 2,711 | 3,468 |
Total assets | 167,069 | 160,896 |
Current liabilities: | ||
Accounts payable | 43,451 | 33,679 |
Accrued wages and bonuses | 7,250 | 5,006 |
Deferred revenue | 23,062 | 6,380 |
Line of credit | 15,000 | 10,000 |
Other accrued liabilities | 9,404 | 7,255 |
Convertible senior notes | 0 | 18,000 |
Total current liabilities | 98,167 | 80,320 |
Long-term liabilities: | ||
Other long-term liabilities | 2,985 | 2,800 |
Total long-term liabilities | 2,985 | 2,800 |
Total liabilities | $ 101,152 | 83,120 |
Commitments and contingencies (Note 13) | ||
Preferred stock — $0.01 par value, 5,664 shares authorized; none issued or outstanding at December 31, 2015 and December 31, 2014 | $ 0 | 0 |
Common stock — no par value, 100,000 shares authorized; 36,959 and 36,532 shares issued and outstanding at December 31, 2015 and December 31, 2014 | 338,165 | 334,024 |
Accumulated deficit | (271,349) | (256,671) |
Accumulated other comprehensive income: | ||
Cumulative translation adjustments | (80) | 1,175 |
Unrealized loss on hedge instruments | (819) | (752) |
Total accumulated other comprehensive income (loss) | (899) | 423 |
Total shareholders’ equity | 65,917 | 77,776 |
Total liabilities and shareholders’ equity | $ 167,069 | $ 160,896 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Comprehensive Income [Abstract] | |||
Net loss | $ (14,678) | $ (27,581) | $ (49,404) |
Translation adjustments | (1,255) | (556) | (438) |
Adjustment for fair value of hedge derivatives, net of tax | (67) | 123 | (110) |
Other comprehensive loss | (1,322) | (433) | (548) |
Comprehensive loss | $ (16,000) | $ (28,014) | $ (49,952) |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Balance Sheet Parenthetical [Abstract] | ||
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Preferred Stock, Shares Authorized | 5,664 | 5,664 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Common Stock, Par or Stated Value Per Share | $ 0 | $ 0 |
Common Stock, Shares Authorized | 100,000 | 100,000 |
Common Stock, Shares, Issued | 29,198 | 28,471 |
Common Stock, Shares, Outstanding | 29,198 | 28,471 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Shareholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Accumulated Deficit | Accumulated Other Comprehensive Income (loss) |
Common Stock, Shares, Issued at Dec. 31, 2012 | 28,471,000 | |||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest at Dec. 31, 2012 | $ 125,442 | $ 303,724 | $ (179,686) | $ 1,404 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Shares issued pursuant to benefit plans, shares | 424,000 | |||
Shares issued pursuant to benefit plans | 806 | $ 806 | ||
Stock based compensation associated with employee benefit plans | 5,298 | $ 5,298 | ||
Vesting of restricted stock units, shares | 417,000 | |||
Restricted share forfeitures for tax settlements, shares | (114,000) | |||
Restricted share forfeitures for tax settlements | (458) | $ (458) | ||
Net adjustment for fair value of hedge derivatives, net of taxes | (110) | (110) | ||
Translation adjustments | (438) | (438) | ||
Net income (loss) | (49,404) | 0 | ||
Common Stock, Shares, Issued at Dec. 31, 2013 | 29,198,000 | |||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest at Dec. 31, 2013 | 81,136 | $ 309,370 | (229,090) | 856 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Shares issued pursuant to benefit plans, shares | 281,000 | |||
Shares issued pursuant to benefit plans | 635 | $ 635 | ||
Stock based compensation associated with employee benefit plans | 4,097 | $ 4,097 | ||
Vesting of restricted stock units, shares | 709,000 | |||
Restricted share forfeitures for tax settlements, shares | (211,000) | |||
Restricted share forfeitures for tax settlements | (629) | $ (629) | ||
Net adjustment for fair value of hedge derivatives, net of taxes | 123 | 123 | ||
Translation adjustments | (556) | (556) | ||
Issuance of common stock | 6,555,000 | |||
Issuance of common stock | 20,551 | $ 20,551 | ||
Net income (loss) | $ (27,581) | |||
Common Stock, Shares, Issued at Dec. 31, 2014 | 28,471,000 | 36,532,000 | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest at Dec. 31, 2014 | $ 77,776 | $ 334,024 | (256,671) | 423 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Shares issued pursuant to benefit plans, shares | 319,000 | 205,000 | ||
Shares issued pursuant to benefit plans | $ 331 | $ 331 | ||
Stock based compensation associated with employee benefit plans | 3,952 | $ 3,952 | ||
Vesting of restricted stock units, shares | 279,000 | |||
Restricted share forfeitures for tax settlements, shares | (57,000) | |||
Restricted share forfeitures for tax settlements | (142) | $ (142) | ||
Net adjustment for fair value of hedge derivatives, net of taxes | (67) | (67) | ||
Translation adjustments | (1,255) | (1,255) | ||
Net income (loss) | $ (14,678) | |||
Common Stock, Shares, Issued at Dec. 31, 2015 | 29,198,000 | 36,959,000 | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest at Dec. 31, 2015 | $ 65,917 | $ 338,165 | $ (271,349) | $ (899) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash flows from operating activities: | |||
Net income (loss) | $ (14,678) | $ (27,581) | $ (49,404) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 18,478 | 20,240 | 21,748 |
Inventory write downs | 1,447 | 2,539 | 3,302 |
Deferred income taxes | 106 | 3,106 | 703 |
Deferred tax valuation allowance provision | 0 | 0 | 12,476 |
Write off of purchased computer software | 0 | 0 | 2,868 |
Gain on sale of assets | 0 | 0 | (2,303) |
Stock-based compensation expense | 3,952 | 4,097 | 5,298 |
Other | (217) | 119 | 330 |
Changes in operating assets and liabilities, net of acquisitions: | |||
Accounts receivable | (17,121) | (2,262) | 11,119 |
Other receivables | (5,040) | (3,689) | (303) |
Inventories and deferred cost of sales | (13,801) | 4,313 | 69 |
Accounts payable | 9,853 | (1,534) | (6,013) |
Accrued wages and bonuses | 2,043 | (538) | (1,640) |
Accrued restructuring | (89) | (2,006) | 1,551 |
Deferred revenue | 16,682 | (1,875) | (1,057) |
Other | 3,442 | (1,726) | (835) |
Net cash provided by (used in) operating activities | 5,057 | (6,797) | (2,091) |
Cash flows from investing activities: | |||
Capital expenditures | (2,224) | (2,396) | (6,047) |
Proceeds from sale of software assets | 0 | 200 | 2,552 |
Net cash used in investing activities | (2,224) | (2,196) | (3,495) |
Cash flows from financing activities: | |||
Payments on line of credit | 13,500 | 0 | 15,000 |
Payments on line of credit | (8,500) | (5,000) | 0 |
Repayment of convertible senior notes | (18,000) | 0 | (16,919) |
Proceeds from issuance of common stock | 331 | 21,186 | 806 |
Other financing activities | (142) | (882) | (921) |
Net cash provided by (used in) financing activities | (12,811) | 15,304 | (2,034) |
Effect of exchange rate changes on cash | (500) | (551) | (80) |
Net increase (decrease) in cash and cash equivalents | (10,478) | 5,760 | (7,700) |
Cash and cash equivalents, beginning of period | 31,242 | 25,482 | 33,182 |
Cash and cash equivalents, end of period | 20,764 | 31,242 | 25,482 |
Supplemental disclosure of cash flow information: | |||
Interest | 835 | 1,207 | 1,090 |
Income taxes | $ 1,289 | $ 1,532 | $ 1,415 |
Nature of Operations
Nature of Operations | 12 Months Ended |
Dec. 31, 2015 | |
Nature of Operations [Abstract] | |
Nature of Operations | Nature of Operations Radisys Corporation (NASDAQ: RSYS), the services acceleration company, provides application aware traffic distribution platforms, real-time media processing products and wireless access technologies. The Company's products and services are managed as two operating segments: Software-Systems and Embedded Products and Hardware Services. • Software-Systems. Software-Systems is comprised of three product families: FlowEngine, MediaEngine and CellEngine. ◦ FlowEngine products target the communication and content provider traffic management market, are a family of products designed to classify and intelligently distribute session data flows to appropriate network processing resources. ◦ MediaEngine products provide the necessary media processing capabilities required for a broad range of applications including Voice over Long-Term Evolution ("VoLTE"), Voice over WiFi (“VoWifi”), Web Real-Time Communication ("WebRTC"), multimedia conferencing, as well as the transcoding required to achieve interoperability between legacy and new generation devices using disparate audio and video codecs. ◦ CellEngine software is the protocol foundation that enables the communication linkage between end user wireless devices and the small cell base stations mobile carriers in both the 3G and LTE networks. • Embedded Products and Hardware Services contains integrated systems and stand-alone products which control and move data in the core of telecom networks. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies Principles of Consolidation and Presentation The accompanying Consolidated Financial Statements include the accounts of the Company and its wholly owned subsidiaries. All inter-company accounts and transactions have been properly eliminated in consolidation. Certain prior year balances have been reclassified to conform to the current year’s presentation. Such reclassifications did not affect total cash flows, total net revenues, operating loss, net loss or shareholders' equity. Management Estimates The Consolidated Financial Statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). The preparation of these Consolidated Financial Statements requires management to make estimates and judgments that may affect the amounts reported in its Consolidated Financial Statements and accompanying notes. Actual results may differ from these estimates under different assumptions or conditions. Revenue Recognition Multiple Element Arrangements A significant portion of the Company's revenue relates to product sales for which revenue is recognized upon shipment, with limited judgment required related to product returns. Title transfer for substantially all product sales occurs upon delivery of products to our customer's freight forwarders. The software elements included in certain components of Embedded Products and Hardware Service systems, FlowEngine and MediaEngine products are considered to be functioning together with the non-software elements to provide the tangible product's essential functionality and these arrangements generally include multiple elements such as hardware, technical support services as well as software upgrades or enhancements on a when and if available basis. Arrangements including multiple elements require significant management judgment to evaluate the effective terms of agreements, our performance commitments and determination of fair value of the various deliverables under the arrangement. For hardware sales which may include software, ASC 605 Revenue Recognition provides a fair value hierarchy in order to determine the appropriate relative fair value for each element of an arrangement. When available, the Company uses vendor specific objective evidence (“VSOE”) to determine the estimated fair value of each element of the arrangement. In the absence of VSOE or third−party evidence ("TPE") for a delivered element, the Company then uses an estimated selling price in order to determine fair value. Estimated selling prices represent the Company's best estimate of the price at which it would transact if the deliverables were sold on a standalone basis. For technical support services, the Company generally determines its selling price based on VSOE as supported by substantive renewal rates in the related service agreements. In certain instances where VSOE cannot be established, the Company then relies upon its estimated selling price for such deliverables as TPE is generally not available due to the unique company-specific terms surrounding such service agreements. In establishing an appropriate estimated selling price for these technical support agreements, the Company considered entity specific factors such as its historical and projected costs, historical and projected revenues, and profit objectives. The Company also considered market specific factors when establishing reasonable profit objectives. Hardware Revenue from hardware products is recognized in accordance with ASC 605 Revenue Recognition . Under the Company’s standard terms and conditions of sale, the Company transfers title and risk of loss to the customer at the time product is shipped to the customer and revenue is recognized accordingly, unless customer acceptance is uncertain or significant obligations remain. The Company reduces revenue for estimated customer returns for rotation rights according to agreements with the Company's distributors. The amount of revenues derived from distributors as a percentage of revenues was 15.1% , 16.3% and 14.3% for the years ended December 31, 2015 , 2014 and 2013 . Revenues associated with distributors are generally recognized upon shipment as the Company has established a sell-to model with distributors. The Company accrues the estimated cost of product warranties, based on historical experience at the time the Company recognizes revenue. The software elements included in certain components of embedded product systems and MediaEngine products are considered to be functioning together with the non-software elements to provide the tangible product's essential functionality and the Company’s MediaEngine arrangements generally include multiple elements such as hardware and technical support services. Software licenses and royalties Revenue from software licenses and royalties is recognized in accordance with ASC 985 Software . The Company recognizes software license revenue at the time of shipment or upon delivery of the software master provided that the revenue recognition criteria have been met and VSOE exists to allocate the total fee to all undelivered elements of the arrangement. The Company defers revenue on arrangements, including specified software upgrades, until the specified upgrade has been delivered. Revenue from customers for prepaid, non-refundable software royalties is recorded when the revenue recognition criteria have been met. Revenue for non-prepaid royalties is recognized at the time the Company receives reporting from customers as the Company has not established an ability to reliably estimate customer royalties prior to time contractually obligated reporting is received. Technical support services Technical support services revenue is recognized as earned on the straight-line basis over the term of the contract. The fair value of the Company’s post-contract support has been determined by renewal rates within the Company’s support agreements, the actual amounts charged to customers for renewal of their support services or based on an estimated selling price. Professional and other services Professional services revenue is recognized upon completion of certain contractual milestones and customer acceptance of the services rendered. Other services revenues include hardware repair services and custom software implementation projects. Hardware repair services revenues are recognized when the services are complete. Software implementation revenues are recognized upon completion of certain contractual milestones and customer acceptance of the services rendered or as services are performed under the percentage-of-completion method when the Company is reasonably able to estimate the total effort required to complete the contract. Deferred revenue Deferred revenue represents amounts received or billed for the following types of transactions: • Undelivered elements of an arrangement —Certain software sales include specified upgrades and enhancements to an existing product. Revenue for such products is deferred until the future obligation is fulfilled. Additionally, certain hardware shipments that have been delivered are deferred when customer acceptance is uncertain and revenue is recognized upon customer acceptance. • Technical support services— The Company has a number of technical support agreements with customers for hardware and software maintenance. Generally, these services are billed in advance and recognized over the term of the agreement . Cost of sales associated with deferred revenue is also deferred. These deferred costs are recognized when the associated revenue is recognized. Capitalized Software Development Costs The Company does not capitalize internal software development costs incurred in the production of computer software as the Company does not incur any material costs between the point of technological feasibility and general release of the product to customers in the future. As such software development costs are expensed as research and development (“R&D”) costs. Shipping Costs The Company’s shipping and handling costs for product sales are included under cost of sales for all periods presented. For the years ended December 31, 2015 , 2014 and 2013 shipping and handling costs represented approximately 2% of cost of sales. Advertising Costs The Company expenses advertising costs as incurred. Advertising costs consist primarily of media, display, web, and print advertising, along with trade show costs and product demos and brochures. For the years ended December 31, 2015 , 2014 and 2013 advertising costs were $0.9 million , $1.1 million and $2.0 million . Cash Equivalents The Company considers all highly liquid investments purchased with an original maturity of three months or less at the date of purchase to be cash equivalents. Accounts Receivable Trade accounts receivable are stated at invoice amount net of an allowance for doubtful accounts and do not bear interest. An allowance for doubtful accounts is maintained for estimated losses resulting from the inability of customers to make required payments. Management reviews the allowance for doubtful accounts quarterly for reasonableness and adequacy. If the financial condition of the Company’s customers were to deteriorate resulting in an impairment of their ability to make payments, additional provisions for uncollectible accounts receivable may be required. In the event the Company determined that a smaller or larger reserve was appropriate, it would record a credit or a charge in the period in which such determination is made. In addition to specific customer reserves, the Company maintains a non-specific bad debt reserve for all customers. This non-specific bad debt reserve is calculated based on the Company's historical pattern of bad debt write-offs as a percentage of gross accounts receivable for the current rolling eight quarters, which percentage is then applied to the current gross accounts receivable. The Company’s customers are concentrated in the technology industry and the collection of its accounts receivable are directly associated with the operational results of the industry. Inventories Inventories are stated at the lower of cost, determined on the first-in, first-out (FIFO) basis, or market, net of an inventory valuation allowance. The Company uses a standard cost methodology to determine the cost basis for its inventories. The Company evaluates inventory on a quarterly basis for obsolete or slow-moving items to ascertain if the recorded allowance is reasonable and adequate. Inventory is written down for estimated obsolescence or unmarketable inventory equal to the difference between the cost of inventory and the estimated net realizable value based upon assumptions about future demand and market conditions. The Company's inventory valuation allowances establish a new cost basis for inventory. Long-Lived Assets Long-lived assets, such as property and equipment and definite-life intangible assets are evaluated for impairment whenever events or changes in circumstances indicate the carrying value of an asset may not be recoverable. The Company assesses the impairment of the assets based on the undiscounted future cash flow the assets are expected to generate compared to the carrying value of the assets. If the carrying amount of the assets is determined not to be recoverable, a write-down to fair value is recorded. Management estimates future cash flows using assumptions about expected future operating performance. Management’s estimates of future cash flows may differ from actual cash flow due to, among other things, technological changes, economic conditions or changes to the Company’s business operations. Intangible assets with estimable useful lives are amortized on a straight-line basis over their respective estimated life and reviewed for impairment when certain triggering events suggest impairment has occurred. The Company determined that no triggering events occurred in 2015; however, it was determined that a triggering event occurred during the third quarter of 2014 and required an analysis of the recoverability of its long-lived assets. The Company concluded its long-lived assets were not impaired. Property and Equipment Property and equipment is recorded at historical cost and is depreciated or amortized on a straight-line basis according to the table below. In certain circumstances where the Company is aware that an asset’s life differs from the general guidelines set forth in its policy, management adjusts its depreciable life accordingly, to ensure expense is being recognized over the appropriate future periods. Ordinary maintenance and repair expenses are expensed when incurred. Machinery, equipment, furniture and fixtures 5 years Software, computer hardware and manufacturing test fixtures 3 years Engineering demonstration products and samples 1 year Leasehold improvements Lesser of the lease term or estimated useful lives Leases The Company leases all of its facilities, certain office equipment and vehicles under non-cancelable operating leases that expire at various dates through 2020, along with options that permit renewals for additional periods. Rent escalations are considered in the determination of straight-line rent expense for operating leases. Leasehold improvements made at the inception of or during the lease are amortized over the shorter of the asset life or the lease term. Accrued Restructuring Expenses associated with exit or disposal activities are recognized when probable and estimable because the Company has a history of paying severance benefits. The Company has engaged, and may continue to engage, in restructuring actions, which require the Company to make significant estimates in several areas including: realizable values of assets made redundant or obsolete; expenses for severance and other employee separation costs; the ability and timing to generate sublease income, as well as the Company's ability to terminate lease obligations at the amounts estimated; and other exit costs. Should the actual amounts differ from the estimates, the amount of the restructuring charges could be materially impacted. Warranty The Company provides for the estimated cost of product warranties at the time it recognizes revenue. Products are generally sold with warranty coverage for a period of 12 or 24 months after shipment. On a quarterly basis the Company assesses the reasonableness and adequacy of the warranty liability and adjusts such amounts as necessary. Warranty reserves are included in other accrued liabilities and other long-term liabilities in the accompanying Consolidated Balance Sheets as of December 31, 2015 and 2014 . Research and Development Research, development and engineering ("R&D") costs are expensed as incurred. R&D expenses consist primarily of salary, bonuses and benefits for product development staff, and cost of design and development supplies and equipment, net of reimbursements for non-recurring engineering services. Income Taxes Income tax accounting requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the financial statement carrying amounts and tax bases of assets and liabilities. Valuation allowances are established to reduce deferred tax assets if it is “more likely than not” that all or a portion of the asset will not be realized due to inability to generate sufficient taxable income in the relevant period to utilize the deferred tax asset. Tax law and rate changes are reflected in the period such changes are enacted. The Company recognizes uncertain tax positions after evaluating whether certain tax positions are more likely than not to be sustained by taxing authorities. In addition, the Company recognizes potential accrued interest and penalties related to unrecognized tax benefits in income tax expense. Comprehensive Income (Loss) The Company reports accumulated other comprehensive income (loss) in its Consolidated Balance Sheets. Comprehensive income (loss) includes net income (loss), translation adjustments and unrealized gains (losses) on hedging instruments net of their tax effect. The cumulative translation adjustments consist of unrealized gains (losses) for foreign currency translation. Stock-Based Compensation The Company measures stock-based compensation at the grant date, based on the fair value of the award, and recognizes expense on a straight-line basis over the employee's requisite service period. For performance-based restricted stock unit awards, the requisite service period is equal to the period of time over which performance objectives underlying the award are expected to be achieved and vested. The number of shares that ultimately vest depends on the achievement of certain performance criteria over the measurement period. For non-market based performance-based restricted stock, quarterly, we reevaluate the period during which the performance objective will be met and the number of shares expected to vest. The amount of quarterly expense recorded each period is based on our estimate of the number of awards that will ultimately vest. The Company estimates the fair value of stock options and purchase rights under our employee stock purchase plans using a Black-Scholes option-pricing model. The Black-Scholes option-pricing model incorporates several highly subjective assumptions including expected volatility, expected term and interest rates. In reaching our determination of expected volatility, we use the historic volatility of our shares of common stock. We base the expected term of our stock options on historic experience. The expected term for purchase rights under our employee stock plans is based on the 18 month offering period. The risk-free rate is based on the U.S. Treasury constant maturities in effect at the time of grant for the expected term of the option or share. The calculation includes several assumptions that require management's judgment. The expected term of the option or share is determined based on assumptions about patterns of employee exercises and represents a probability-weighted average time-period from grant until exercise of stock options, subject to information available at time of grant. Determining expected volatility generally begins with calculating historical volatility for a similar long-term period and then considers the ways in which the future is reasonably expected to differ from the past. The grant-date fair value of the PRSUs awarded in 2015 was calculated using a Monte Carlo simulation consistent with the fair value principals of Topic 718 since these awards vest based upon market conditions. Expense is recognized over a derived service period determined by the Monte Carlo simulation. If the conditions of PRSUs are met before the derived service period ends, all remaining expense will be recognized in the period the conditions are met. The input factors used in the valuation model are based on subjective future expectations combined with management's judgment. If there is a difference between the assumptions used in determining stock-based compensation cost and the actual factors which become known over time, we may change the input factors used in determining stock-based compensation costs. These changes may materially impact the results of operations in the event such changes are made. In addition, if we were to modify any awards, additional charges would be taken. If our actual forfeiture rate is materially different from our estimate the stock-based compensation expense could be significantly different from what we have recorded in the current period. See Note 16 — Employee Benefit Plans of the Notes to the Consolidated Financial Statements for a further discussion on stock-based compensation. Net loss per share Basic loss per share amounts are computed based on the weighted average number of common shares outstanding. Diluted net loss per share incorporates the incremental shares issuable upon the assumed exercise of stock options, incremental shares associated with the assumed vesting of restricted stock and the assumed conversion of the Company’s convertible notes, as if the conversion to common shares had occurred at the beginning of the fiscal year and when such conversion would have a dilutive effect. When the conversion of the Company’s convertible notes are dilutive, earnings would be adjusted for interest expense incurred on the convertible notes. Derivatives The Company hedges exposure to changes in exchange rates from the US Dollar to the Indian Rupee. These derivatives are recognized on the balance sheet at their fair value. Unrealized gain positions are recorded as other current assets and unrealized loss positions are recorded as other accrued liabilities. Changes in the fair values of the outstanding derivatives that are highly effective are recorded in other comprehensive income until net income (loss) is affected by the variability of the cash flows of the hedged transaction. Hedge ineffectiveness could result when the amount of the Company’s hedge contracts exceed the Company’s forecasted or actual transactions for which the hedge contracts were designed to hedge. Once a hedge contract matures the associated gain (loss) on the contract will remain in other comprehensive income (loss) until the underlying hedged transaction affects net income (loss), at which time the gain (loss) will be recorded to the expense line item being hedged, which is primarily cost of sales and research and development. The Company only enters into derivative contracts in order to hedge foreign currency exposure. If the Company entered into a contract for speculative reasons or if the Company’s current hedge position becomes ineffective, changes in the fair values of the derivatives would be recognized in earnings in the current period. Foreign currency translation Assets and liabilities of international operations using a functional currency other than the U.S. dollar are translated into U.S. dollars at exchange rates as of December 31, 2015 and 2014 . Income and expense accounts are translated into U.S. dollars at the average daily rates of exchange prevailing during the period. Adjustments resulting from translating foreign functional currency financial statements into U.S. dollars are recorded as a separate component in shareholders’ equity. Foreign exchange transaction gains and losses are included in other income (expense), net, in the Consolidated Statements of Operations. Recent Accounting Pronouncements In November 2015, the FASB issued ASU No. 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes to simplify the presentation of deferred taxes in the statement of financial position. The updated guidance requires that deferred tax assets and liabilities be classified as noncurrent in a classified balance sheet. The update to the standard is effective for all interim and annual period is fiscals years beginning after December 15, 2016 with early application permitted as of the beginning of any interim or annual reporting period. This guidance may be applied either prospectively to all deferred tax assets and liabilities or retrospectively to all periods presented. The Company has early adopted the updated guidance and have applied retrospectively to all periods presented in the Consolidated Balance Sheets which resulted in the reclassification of $0.2 million short-term deferred tax assets, net to long-term deferred tax assets, net. In May 2014, the Financial Accounting Standards Board ("FASB") issued ASU 2014-09, "Revenue from Contracts with Customers (Topic 606)," which is the new comprehensive revenue recognition standard that will supersede all existing revenue recognition guidance under U.S. GAAP. The standard's core principle is that a company will recognize revenue when it transfers promised goods or services to a customer in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. ASU 2015-14, "Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date," which was issued in August 2015, revised the effective date for this ASU to annual and interim periods beginning on or after December 15, 2017, with early adoption permitted, but not earlier than the original effective date of annual and interim periods beginning on or after December 15, 2016, for public entities. Entities will have the option of using either a full retrospective approach or a modified approach to adopt the guidance in ASU 2014-09. The Company is currently evaluating the impact of adopting this guidance. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures | Fair Value of Financial Instruments The Company measures at fair value certain financial assets and liabilities. GAAP specifies a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company's market assumptions. These two types of inputs have created the following fair-value hierarchy: Level 1— Quoted prices for identical instruments in active markets; Level 2— Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets; and Level 3— Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. Foreign currency forward contracts are measured at fair value using models based on observable market inputs such as foreign currency exchange rates; therefore, they are classified within Level 2 of the valuation hierarchy. The following tables summarizes the fair value measurements as of December 31, 2015 and December 31, 2014 for the Company's financial instruments (in thousands): Fair Value Measurements as of December 31, 2015 Total Level 1 Level 2 Level 3 Foreign currency forward contracts (277 ) — (277 ) — Fair Value Measurements as of December 31, 2014 Total Level 1 Level 2 Level 3 Foreign currency forward contracts (83 ) — (83 ) — Until the fourth quarter 2014, the Company had obligations ("contingent consideration"), to be paid in cash, related to the acquisition of Continuous Computing Corporation ("Continuous Computing") based on the amount of product royalty revenues to be generated by a specified set of contracts associated with certain of Continuous Computing's products over a period of 36 months after closing. The contingent consideration liability was established at the time of acquisition and was evaluated at the end of each reporting period. As the significant inputs used in determining the fair value were unobservable, this liability was classified within Level 3 of the fair value hierarchy. The fair value of the contingent consideration was determined by calculating the net present value of the expected payments using significant inputs that are not observable in the market, including revenue projections and discount rates consistent with the level of risk of achievement; therefore the Company developed its own assumptions for the expected product royalty revenues generated under the arrangement. The fair value of the contingent consideration was affected most significantly by changes in the amount and timing of the revenue projections. If the revenue projections increased or decreased the fair value of the contingent consideration would increase or decrease accordingly in amounts that will vary based on the timing of the projected revenues and the timing of the expected payments. The royalty earning period for Continuous Computing's products was completed during the quarter ended September 30, 2014. The remaining liability was paid in the fourth quarter of 2014. The following table summarizes level 3 activity for the Company's contingent consideration liability (in thousands): Fair Value Contingent Consideration Balance at December 31, 2013 390 Additions — Decrease in liability due to re-measurement (156 ) Payments (273 ) Accretion 39 Balance at December 31, 2014 $ — The Company recorded all changes in estimates and accretion on the contingent consideration liability to restructuring and other charges, net in the Consolidated Statements of Operations. Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis The Company assessed certain long-lived assets for impairment during the third quarter of 2014, comparing the undiscounted future cash flow the assets are expected to generate to the carrying value of the assets. The probability-weighted analysis of expected undiscounted future cash flows exceeded the book value of the long lived assets by $5.0 million , or 28% . Key assumptions used in this analysis included revenue growth for the Company's technologies as well as general economic and business conditions. |
Accounts Receivable and Other R
Accounts Receivable and Other Receivables | 12 Months Ended |
Dec. 31, 2015 | |
Receivables [Abstract] | |
Accounts Receivable and Other Receivables | Accounts Receivable and Other Receivables Accounts receivable balances consisted of the following (in thousands): December 31, December 31, Accounts receivable, gross $ 61,045 $ 43,969 Less: allowance for doubtful accounts (103 ) (124 ) Accounts receivable, net $ 60,942 $ 43,845 Accounts receivable at December 31, 2015 and 2014 consisted of sales to the Company’s customers which are generally based on standard terms and conditions. The Company recorded the following activity in allowance for doubtful accounts (in thousands): For the Years Ended December 31, 2015 2014 2013 Allowance for doubtful accounts, beginning of the year $ 124 $ 348 $ 779 Charged to costs and expenses (17 ) (75 ) (310 ) Less: write-offs, net of recoveries (4 ) (149 ) (121 ) Remaining allowance, end of the year $ 103 $ 124 $ 348 As of December 31, 2015 and 2014 , other receivables were $11.3 million and $6.3 million . Other receivables consisted primarily of non-trade receivables including inventory sold to the Company's contract manufacturing partner or other integration partners on which the Company does not recognize revenue and net receivables for value-added taxes. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2015 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories and Deferred Cost of Sales Inventories consisted of the following (in thousands): December 31, December 31, Raw materials $ 14,546 $ 9,219 Work-in-process 98 1,195 Finished goods 7,485 10,762 22,129 21,176 Less: inventory valuation allowance (5,317 ) (2,701 ) Inventories, net $ 16,812 $ 18,475 Consigned inventory is held at third-party locations, including the Company's contract manufacturing partner and customers. The Company retains title to the inventory until purchased by the third-party. Consigned inventory, consisting of raw materials and finished goods, was $11.5 million and $2.6 million at December 31, 2015 and 2014 . The Company’s consignment inventory with its contract manufacturer consists of inventory transferred from the Company’s prior contract manufacturer as well as inventory that has been purchased by the contract manufacturer as a result of the Company's forecasted demand. The Company is contractually obligated to purchase inventory transferred from the Company's prior contract manufacturer after the inventory ages for 365 days. The Company is also contractually obligated to purchase inventory that has been purchased by the contract manufacturer as a result of the Company's forecasted demand when the inventory ages beyond 180 days and has no forecasted demand. The Company’s consignment inventory at its contract manufacturing partner was $8.7 million and $0.1 million as of December 30, 2015 and December 31, 2014. The Company records a liability for adverse purchase commitments of inventory owned by its contract manufacturing partner. See Note 13 - Commitments and Contingencies for additional information regarding the Company's adverse purchase commitment liability. The Company recorded the following charges associated with the valuation of inventory, inventory deposit and the adverse purchase commitment liability for the years ended December 31 (in thousands): 2015 2014 2013 Inventory, net $ 1,476 $ 2,412 $ 3,302 Inventory deposit, net (29 ) 126 945 Adverse purchase commitments 1,831 323 327 The following is a summary of the change in the Company’s inventory valuation allowance for the years ended December 31 (in thousands): 2015 2014 Inventory valuation allowance, beginning of the year $ 2,701 $ 7,037 Usage: Inventory scrapped (151 ) (5,768 ) Inventory utilized (856 ) (1,005 ) Subtotal—usage (1,007 ) (6,773 ) Write-downs of inventory valuation 2,332 3,417 Transfer from other liabilities (A) 1,291 (1,013 ) Transfer from inventory deposit valuation allowance — 33 Inventory valuation allowance, end of the year $ 5,317 $ 2,701 (A) Transfer from other liabilities is related to obsolete inventory purchased from contract manufacturers during the year which was previously reserved for as an adverse purchase commitment. (Note 9— Other Accrued and Other Long-Term Liabilities and Note 13— Commitments and Contingencies. ) Deferred cost of sales are related to deferred revenue on shipments to customers and was $14.1 million and $0.2 million at December 31, 2015 and 2014 . |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment consisted of the following (in thousands): December 31, December 31, Manufacturing equipment $ 22,049 $ 24,643 Office equipment and software 25,087 30,702 Leasehold improvements 4,183 5,163 Property and equipment, gross 51,319 60,508 Less: accumulated depreciation and amortization (45,185 ) (50,722 ) Property and equipment, net $ 6,134 $ 9,786 Depreciation expense associated with property and equipment for the years ended December 31, 2015 , 2014 and 2013 was $5.6 million , $7.0 million and $8.0 million . |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2015 | |
Intangible Assets [Abstract] | |
Intangible Assets | Intangible Assets The following tables summarize the Company’s total purchased intangible assets (in thousands): Gross Accumulated Amortization Net December 31, 2015 Purchased technology $ 114,754 $ (95,260 ) $ 19,494 Patents 6,472 (6,472 ) — Customer lists 37,000 (30,534 ) 6,466 Trade names 11,536 (7,174 ) 4,362 Backlog 2,127 (2,127 ) — Total intangible assets $ 171,889 $ (141,567 ) $ 30,322 December 31, 2014 Purchased technology $ 114,754 $ (87,398 ) $ 27,356 Patents 6,472 (6,472 ) — Customer lists 37,000 (26,284 ) 10,716 Trade names 11,536 (6,384 ) 5,152 Backlog 2,127 (2,127 ) — Total intangible assets $ 171,889 $ (128,665 ) $ 43,224 Intangible assets amortization expense was $12.9 million , $13.3 million and $13.8 million for the years ended December 31, 2015 , 2014 and 2013 . The Company’s purchased intangible assets have remaining useful lives of two to six years as of December 31, 2015 . The Company reviews for impairment all of its purchased intangible assets whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The estimated future amortization expense of purchased intangible assets as of December 31, 2015 is as follows (in thousands): For the Years Ending December 31, Estimated Intangible Amortization Amount 2016 $ 12,747 2017 10,713 2018 4,870 2019 790 2020 790 Thereafter 412 Total estimated future amortization expense $ 30,322 |
Accrued Restructuring
Accrued Restructuring | 12 Months Ended |
Dec. 31, 2015 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Other Charges | Restructuring and Other Charges The following table summarizes the Company's restructuring and other gains and charges as presented in the Consolidated Statement of Operations (in thousands): December 31, 2015 December 31, 2014 December 31, 2013 Employee-related restructuring expenses $ 3,890 $ 1,468 $ 5,463 Facility reductions 392 — 602 Integration-related and other non-recurring expenses 629 2,097 1,039 Non-recurring legal expenses 109 796 779 Fair value adjustments to contingent consideration liability — (156 ) (1,740 ) Write off of purchased computer software — — 2,868 Net gain from sale of OS-9 software assets — — (1,532 ) Restructuring and other charges, net $ 5,020 $ 4,205 $ 7,479 Restructuring and other charges may include costs from non-recurring events such as costs incurred for employee severance, acquisition or divestiture activities, excess facility costs, certain legal costs, asset related charges and other expenses associated with business restructuring activities. During the year ended December 31, 2015 , the Company recorded the following restructuring and other charges: • $3.9 million net expense relating to the severance of 130 employees primarily within Asia and North America. These actions were in connection with the restructuring of the Company's Embedded Products and Hardware Services segment's research and development and sales and general administrative functions and are presented net of reductions resulting from changes in previously estimated amounts for employee severance and associated payroll costs; and • $0.6 million integration-related net expense principally associated with asset disposals and transfer-related costs resulting from resource and site consolidation actions; • $0.4 million lease abandonment expense associated with reductions in certain of our international sites; and • $0.1 million legal expenses associated with non-operating strategic projects. During the year ended December 31, 2014 , the Company recorded the following restructuring and other charges: • $1.5 million net expense relating to the severance of employees in connection with the previously reported Penang site closure, as well as severance for 20 additional employees, net of reductions resulting from changes in previously estimated amounts for employee severance and associated payroll costs; • $2.1 million integration-related net expense principally associated with asset write-offs and personnel overlap resulting from resource consolidation primarily associated with the Penang site closure; • $0.8 million legal expenses associated with non-operating strategic projects; and • $0.2 million gain resulting from the decrease in fair value of the Continuous Computing contingent consideration liability. Accrued restructuring, which is included in other accrued liabilities and other long-term liabilities in the accompanying Consolidated Balance Sheets as of December 31, 2015 and 2014 , consisted of the following (in thousands): Severance, payroll taxes and other employee benefits Facility reductions Total Balance accrued as of December 31, 2014 $ 166 $ 587 $ 753 Additions 4,436 392 4,828 Reversals (546 ) — (546 ) Expenditures (3,974 ) (397 ) (4,371 ) Balance accrued as of December 31, 2015 $ 82 $ 582 $ 664 Of the $0.7 million and $0.8 million accrued re structuring balance at December 31, 2015 and 2014 , $0.1 million and $0.4 million is included in other long- term liabilities on the Consolidated Balance Sheets as of December 31, 2015 and 2014 . These amounts represent the long-term portion of accrued lease abandonment charges. The remaining balances are presented in other accrued liabilities on the Consolidated Balance Sheets. The Company evaluates the adequacy of the accrued restructuring charges on a quarterly basis. Reversals are recorded in the period in which the Company determines that expected restructuring obligations are less than the amounts accrued. |
Other Accrued and Other Long-Te
Other Accrued and Other Long-Term Liabilities | 12 Months Ended |
Dec. 31, 2015 | |
Other Accrued and Other Long-Term Liabilities [Abstract] | |
Other Accrued and Other Long-Term Liabilities | Other Accrued and Other Long-Term Liabilities Other accrued liabilities consisted of the following (in thousands): December 31, December 31, Accrued warranty reserve $ 2,036 $ 2,018 Adverse purchase commitments 2,176 1,733 Accrued restructuring 575 332 Income tax payable, net 279 429 Other 4,338 2,743 Other accrued liabilities $ 9,404 $ 7,255 Other long-term liabilities consisted of the following (in thousands): December 31, December 31, Accrued restructuring $ 89 $ 421 Accrued warranty reserve 517 582 Long-term income tax payable 2,224 1,699 Other 155 98 Other long-term liabilities $ 2,985 $ 2,800 |
Short-Term Borrowings
Short-Term Borrowings | 12 Months Ended |
Dec. 31, 2015 | |
Short-term Debt [Abstract] | |
Short-Term Borrowings | Short-Term Borrowings Silicon Valley Bank On March 14, 2014, the Company entered into an amended and restated $25.0 million revolving line of credit agreement with Silicon Valley Bank ("SVB") (the "2014 Agreement") which has a stated maturity date of July 28, 2016. On May 30, 2014, the 2014 Agreement was amended to increase the letter of credit sublimit under the secured revolving credit facility from $1,000,000 to $2,000,000 . On April 23, 2015, the 2014 Agreement was amended to further increase the letter of credit sublimit under the secured revolving credit facility from $2,000,000 to $5,000,000 or the net borrowing availability. On February 8, 2016, the 2014 Agreement was amended to increase the revolving line of credit to $35.0 million (the "Amended Agreement") and to extend the stated maturity date to February 8, 2018. The secured revolving credit facility under the Amended Agreement is available for cash borrowings and is subject to a borrowing formula based upon eligible accounts receivable less outstanding letters of credit (aggregate letters of credit are not to exceed $5,000,000 ). Eligible accounts receivable include 80% of domestic and 75% of foreign accounts receivable ( 80% in certain cases), in each case, not greater than 60 days past original invoice date. The interest rate is dependent upon the Company's Liquidity (as defined in the Amended Agreement) when compared to a pre-determined threshold (the "Liquidity Threshold"), which is defined in the Amended Agreement as $15.0 million , with the exception of the last month end of each quarter, where it is defined as $20.0 million . Liquidity is calculated under the Amended Agreement as unrestricted cash plus unused availability on the revolving line of credit. The calculation of interest under the Amended Agreement is as follows: • When Liquidity is above the Liquidity Threshold, the interest rate is the prime rate (as published in Wall Street Journal) plus 0.75% ; • When Liquidity is below the Liquidity Threshold, the interest rate is the prime rate (as published in Wall Street Journal) plus 2.25% ; Under the Amended Agreement, the Company is required to make interest payments monthly. The Company is further required to pay a loan modification fee of $35,000 and pay a facility fee of $52,500 annually. The Company paid a prorated facility fee equal to $48,000 in February 2016 and will pay the full facility fee of $52,500 annually thereafter. Under the Amended Agreement, the Company is required to pay the higher of actual monthly interest incurred or the interest equivalent of $10.0 million in average monthly borrowings. If the Company terminates the commitment under the Amended Agreement prior to the maturity date, the Company is required to pay a cancellation fee equal to 1.5% of the commitment under the Amended Agreement. As of the Amended agreement date, and at all times thereafter, the Company is required to maintain all US domestic cash accounts with SVB or an SVB affiliate. The Amended Agreement requires the Company to make certain representations, warranties and other agreements that are customary in credit agreements of this type. The Amended Agreement also includes financial covenants that requires the Company to maintain minimum Liquidity of $10.0 million , which is tested monthly. Additionally, the Amended Agreement requires the Company to maintain a minimum adjusted EBITDA of at least $10,000,000 if the outstanding principal balance is greater than $15,000,000 or maintain a minimum adjusted EBITDA of at least $7,500,000 if the outstanding principal balance is equal to or less than $15,000,000, which is tested quarterly. The Amended Agreement defines Adjusted EBITDA as net income plus interest expense, depreciation expense, amortization expense, income tax expense, non-cash stock compensation expense and restructuring expense (limited to $1,700,000 , $1,140,000 , $1,000,000 at the first, second and third quarter 2016 measurement dates and $0 thereafter). The Amended Agreement removed the former requirement to maintain a deposit account balance of at least $4,000,000 with SVB or its affiliates and the requirement that the Company had to have at least 50% of its cash deposited with SVB or its affiliates or in an account where SVB has a control agreement As of December 31, 2015 and 2014 , the Company had outstanding balances of $15.0 million and $10.0 million issued on its behalf under the Amended Agreement. At December 31, 2015 , the Company had $8.3 million of total borrowing availability remaining under the Agreement. Under the Amended Agreement, the Company would have had $18.3 million of total borrowing availability. The Company was in compliance with all covenants under the Amended Agreement. |
Convertible Debt
Convertible Debt | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Convertible Debt | Convertible Debt 2013 Convertible Senior Notes On February 15, 2013, the Company repaid at maturity the entire $16.9 million outstanding balance of the 2.75% convertible senior notes due 2013 (the "2013 convertible senior notes") in accordance with the terms thereof. 2015 Convertible Senior Notes On February 17, 2015, the Company repaid at maturity the entire $18.0 million outstanding balance of the 4.5% convertible senior notes due 2015 (the "2015 convertible senior notes") in accordance with the terms thereof. No convertible senior notes were converted to common stock. The following table outlines the effective interest rate, contractually stated interest costs, and costs related to the amortization of issuance costs for the Company's 2013 and 2015 convertible senior notes: Years Ended December 31, 2015 2014 2013 Effective interest rate of 2013 convertible senior notes NA NA 2.75% Effective interest rate of 2015 convertible senior notes 4.50% 4.50% 4.50% Contractually stated interest costs $101 $810 $810 Amortization of interest costs $7 $43 $43 |
Hedging
Hedging | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Hedging | Hedging The Company’s business activities expose it to a variety of market risks, including the effects of changes in foreign currency exchange rates. The Company manages these risks through the use of forward exchange contracts, designated as foreign-currency cash flow hedges, in an attempt to reduce the potentially adverse effects of foreign currency exchange rate fluctuations that occur in the normal course of business. As such, the Company’s hedging activities are employed solely for risk management purposes. All hedging transactions are conducted with, in the opinion of management, financially stable and reputable financial institutions. As of and for the years ended December 31, 2015 , 2014 , and 2013 the only hedge instruments executed by the Company were associated with its exposure to fluctuations in the Indian Rupee which result from obligations such as payroll and rent paid in Rupees. These derivatives are recognized on the balance sheet at their fair value. Unrealized gain positions are recorded as other current assets and unrealized loss positions are recorded as other current liabilities. Changes in the fair values of the outstanding derivatives that are highly effective are recorded in other comprehensive income until net income is affected by the variability of the cash flows of the hedged transaction. Hedge ineffectiveness could result when the amount of the Company’s hedge contracts exceed the Company’s forecasted or actual transactions for which the hedge contracts were designed to hedge. Once a hedge contract matures, the associated gain (loss) on the contract will remain in other comprehensive income until the underlying hedged transaction affects net income (loss), at which time the gain (loss) will be recorded to the expense line item being hedged, which is primarily within Cost of Sales and R&D. The Company only enters into derivative contracts in order to hedge foreign currency exposure, which contracts do not exceed two years from inception. If the Company entered into a contract for speculative reasons or if the Company’s current hedge position becomes ineffective, changes in the fair values of the derivatives would be recognized in earnings in the current period. The Company assesses, both at the inception of the hedge and on an ongoing basis, whether the derivatives that are used in hedging transactions have been highly effective in offsetting changes in the cash flows of hedged items and whether those derivatives are expected to remain highly effective in future periods. For the years ended December 31, 2015 and 2014 the Company had no hedge ineffectiveness. During the year ended December 31, 2015 , the Company entered into 31 new foreign currency forward contracts, with total contractual values of $12.4 million . During the year ended December 31, 2014 , the Company entered into 18 new foreign currency forward contracts, with total contractual values of $11.6 million . A summary of the aggregate contractual or notional amounts, balance sheet location and estimated fair values of derivative financial instruments designated as cash flow hedges at December 31, 2015 is as follows (in thousands): Contractual / Notional Amount Consolidated Balance Sheet Classification Estimated Fair Value Asset (Liability) Foreign currency forward exchange contracts $ 14,024 Other accrued liabilities $ — $ (277 ) A summary of the aggregate contractual or notional amounts, balance sheet location and estimated fair values of derivative financial instruments designated as cash flow hedges at December 31, 2014 is as follows (in thousands): Contractual / Notional Amount Consolidated Balance Sheet Classification Estimated Fair Value Asset (Liability) Foreign currency forward exchange contracts $ 14,193 Other accrued liabilities $ — $ (83 ) There were no ineffective hedges for the years ended December 31, 2015 , 2014 and 2013 . The following table summarizes the effect of derivative instruments on the Consolidated Statements of Operations as follows (in thousands): 2015 2014 2013 Cost of sales $ 187 $ 178 $ 498 Research and development 305 295 544 Selling, general and administrative 135 154 158 Total derivative instrument expense $ 627 $ 627 $ 1,200 The following is a summary of changes to comprehensive income (loss) associated with the Company's hedging activities (in thousands): December 31, 2015 December 31, 2014 December 31, 2013 Beginning balance of unrealized loss on forward exchange contracts $ (752 ) $ (875 ) $ (765 ) Other comprehensive loss before reclassifications (694 ) (504 ) (1,310 ) Amounts reclassified from other comprehensive income 627 627 1,200 Other comprehensive income (loss) (67 ) 123 (110 ) Ending balance of unrealized loss on forward exchange contracts $ (819 ) $ (752 ) $ (875 ) Over the next twelve months, the Company expects to reclassify into earnings a loss of approximately $0.7 million currently recorded as other comprehensive income, as a result of the maturity of currently held forward exchange contracts. The bank counterparties in these contracts expose the Company to credit-related losses in the event of their nonperformance. However, to mitigate that risk, the Company only contracts with counterparties who meet its minimum requirements regarding counterparty credit worthiness. In addition, the Company monitors credit ratings, credit spreads and potential downgrades prior to entering into any new hedging contracts. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Operating Leases Radisys is obligated under non-cancelable operating leases for certain facilities, office equipment, and vehicles. Future minimum lease payments with initial or remaining non-cancelable lease terms in excess of one year, at December 31, 2015 , were as follows (in thousands): For the Years Ending December 31, Future Minimum Lease Payments 2016 2,363 2017 1,487 2018 769 2019 523 2020 228 2021+ — Total future minimum lease commitments $ 5,370 Rent expense totaled $2.7 million , $3.6 million and $4.2 million for the years ended December 31, 2015 , 2014 and 2013 . Adverse Purchase Commitments The Company is contractually obligated to reimburse its contract manufacturer for the cost of excess inventory used in the manufacture of the Company's products if there is no alternative use. This liability, referred to as adverse purchase commitments, is presented in other accrued liabilities in the accompanying Consolidated Balance Sheets. Estimates for adverse purchase commitments are derived from reports received on a quarterly basis from the Company's contract manufacturer. Increases to this liability are charged to cost of sales. If and when the Company takes possession of inventory reserved for in this liability, the liability is transferred from other accrued liabilities to the excess and obsolete inventory valuation allowance (Note 9 — Other Accrued and Other Long-Term Liabilities ) to the excess and obsolete inventory valuation allowance (Note 5 — Inventories ). The adverse purchase commitment liability is included in other accrued liabilities in the accompanying Consolidated Balance Sheets and was $2.2 million and $1.7 million as of December 31, 2015 and December 31, 2014. Guarantees and Indemnification Obligations As permitted under Oregon law, the Company has agreements whereby it indemnifies its officers, directors and certain finance employees for certain events or occurrences while the officer, director or employee is or was serving in such capacity at the request of the Company. The term of the indemnification period is for the officer’s, director’s or employee’s lifetime. The maximum potential amount of future payments the Company could be required to make under these indemnification agreements is unlimited; however, the Company has a Director and Officer insurance policy that limits its exposure and enables the Company to recover a portion of any future amounts paid. To date, the Company has not incurred any costs associated with these indemnification agreements and, as a result, management believes the estimated fair value of these indemnification agreements is minimal. Accordingly, the Company has not recorded any liabilities for these agreements as of December 31, 2015 . The Company enters into standard indemnification agreements in its ordinary course of business. Pursuant to these agreements, the Company indemnifies, holds harmless, and agrees to reimburse the indemnified party for losses suffered or incurred by the indemnified party, generally the Company’s business partners or customers, in connection with patent, copyright or other intellectual property infringement claims by any third party with respect to the Company’s current products, as well as claims relating to property damage or personal injury resulting from the performance of services by us or the Company’s subcontractors. The maximum potential amount of future payments the Company could be required to make under these indemnification agreements is generally limited. Historically, the Company’s costs to defend lawsuits or settle claims relating to such indemnity agreements have been minimal and accordingly management believes the estimated fair value of these agreements is immaterial. Accrued Warranty The Company provides for the estimated cost of product warranties at the time it recognizes revenue. Products are generally sold with warranty coverage for a period of 12 or 24 months after shipment. Parts and labor are covered under the terms of the warranty agreement. The workmanship of the Company’s products produced by the contract manufacturer is covered under warranties provided by the contract manufacturer for 12 to 24 months. The warranty provision is based on historical experience by product family. The Company engages in product quality programs and processes, including actively monitoring and evaluating the quality of its components suppliers; however ongoing failure rates, material usage and service delivery costs incurred in correcting product failure, as well as specific product class failures out of the Company’s baseline experience, affect the estimated warranty obligation. If actual product failure rates, material usage or service delivery costs differ from estimates, revisions to the estimated warranty liability would be required. The following is a summary of the change in the Company’s warranty accrual reserve (in thousands): For the Years Ended December 31, 2015 2014 Warranty liability balance, beginning of the year $ 2,600 $ 3,328 Product warranty accruals 2,025 2,665 Adjustments for payments made (2,072 ) (3,393 ) Warranty liability balance, end of the year $ 2,553 $ 2,600 At December 31, 2015 and 2014 , $2.0 million of the warranty liability balance are included in other accrued liabilities and $0.5 million and $0.6 million are included in other long-term liabilities in the accompanying Consolidated Balance Sheets. |
Basic and Diluted Net IncomePer
Basic and Diluted Net IncomePer Share | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Loss per Share | Basic and Diluted Loss per Share A reconciliation of the numerator and the denominator used to calculate basic and diluted loss per share is as follows (in thousands, except per share amounts): For the Years Ended December 31, 2015 2014 2013 Numerator—Basic Net loss, basic $ (14,678 ) $ (27,581 ) $ (49,404 ) Numerator—Diluted Net loss, basic $ (14,678 ) $ (27,581 ) $ (49,404 ) Interest on convertible senior notes, net of tax benefit (A) — — — Net loss, diluted $ (14,678 ) $ (27,581 ) $ (49,404 ) Denominator—Basic Weighted average shares used to calculate net loss per share, basic 36,789 34,699 28,805 Denominator—Diluted Weighted average shares used to calculate net loss per share, basic 36,789 34,699 28,805 Effect of convertible notes (A) — — — Effect of dilutive restricted stock (B) — — — Effect of dilutive stock options (B) — — — Weighted average shares used to calculate net loss per share, diluted 36,789 34,699 28,805 Net loss per share: Basic $ (0.40 ) $ (0.79 ) $ (1.72 ) Diluted $ (0.40 ) $ (0.79 ) $ (1.72 ) (A) The following as-if converted shares associated with the Company’s 2015 convertible senior notes were excluded from the calculation as their effect would be anti-dilutive (in thousands): For the Years Ended December 31, 2015 2014 2013 2015 convertible senior notes — 2,110 2,110 (B) The following shares, by equity award type, were excluded from the calculation, as their effect would have been anti-dilutive (in thousands): For the Years Ended December 31, 2015 2014 2013 Stock options 2,966 2,841 3,465 Restricted stock units 151 128 335 Performance based restricted stock units (C) 1,625 240 193 Total equity award shares excluded 4,742 3,209 3,993 (C) 2014 and 2013 performance based restricted stock units are presented based on attainment of 100% of the performance goals being met. The maximum multiplier for a given semi-annual performance period is 2.75 x the original grant and overall achievement is limited to a maximum of 2.5 x of the target award over the entire performance period (Note 16 - Employee Benefit Plans). Based on this formula, the maximum number of shares that could be earned was 0.6 million and 0.5 million for the years ended December 31, 2014 and 2013. The 2015 performance based restricted stock units do not have a multiplier feature (Note 16 - Employee Benefit Plans ) and are presented based on attainment of 100% of the performance goals being met. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The income tax provision consists of the following (in thousands): For the Years Ended December 31, 2015 2014 2013 Current provision: Federal $ — $ — $ — State 30 21 (70 ) Foreign 1,772 2,127 2,299 Total current provision 1,802 2,148 2,229 Deferred provision (benefit): Federal 35 (73 ) — State 2 (3 ) — Foreign (97 ) 420 12,726 Total deferred provision (60 ) 344 12,726 Total income tax provision $ 1,742 $ 2,492 $ 14,955 The income tax provision (benefit) differs from the amount computed by applying the statutory federal income tax rate to pretax income as a result of the following differences (dollar amounts in thousands): For the Years Ended December 31, 2015 2014 2013 $ % $ % $ % Statutory federal tax (benefit) rate $ (4,526 ) 35.0 % $ (8,781 ) 35.0 % $ (12,057 ) 35.0 % Increase (decrease) in rates resulting from: State taxes 609 (4.7 ) (246 ) 1.0 (356 ) 1.0 Foreign dividends and unremitted earnings 1,493 (11.5 ) (586 ) 2.3 1,938 (5.6 ) Valuation allowance 2,456 (18.6 ) 7,367 (29.4 ) 26,662 (77.4 ) Taxes on foreign income that differ from U.S. tax rate (405 ) 3.1 2,488 (9.9 ) (2,314 ) 6.7 Tax credits 433 (3.3 ) — — (252 ) 0.7 Non-deductible stock-based compensation expense 1,104 (8.5 ) 1,206 (4.8 ) 1,596 (4.6 ) Earnout liability fair value adjustment (2 ) — (43 ) 0.2 (596 ) 1.7 Uncertain tax positions 435 (3.4 ) 362 (1.4 ) 530 (1.5 ) Other 145 (1.6 ) 725 (2.9 ) (196 ) 0.6 Effective tax rate $ 1,742 (13.5 )% $ 2,492 (9.9 )% $ 14,955 (43.4 )% The components of deferred taxes consist of the following (in thousands): December 31, December 31, Deferred tax assets: Accrued warranty $ 919 $ 937 Inventory 2,697 1,731 Restructuring accrual 5 58 Net operating loss carryforwards 59,784 61,521 Tax credit carryforwards 22,817 23,866 Stock-based compensation 2,142 2,042 Fixed assets 952 950 Goodwill 2,109 2,516 Other 5,693 4,056 Total deferred tax assets 97,118 97,677 Less: valuation allowance (86,752 ) (84,240 ) Net deferred tax assets 10,366 13,437 Deferred tax liabilities: Intangible assets (7,582 ) (11,764 ) Other (1,611 ) (593 ) Total deferred tax liabilities (9,193 ) (12,357 ) Total net deferred tax assets $ 1,173 $ 1,080 At December 31, 2015 , the Company's unrecognized tax benefits associated with uncertain tax positions were $3.7 million , of which $3.3 million , if recognized, would favorably affect the effective tax rate. The Company's ongoing practice is to recognize potential accrued interest and penalties related to unrecognized tax benefits within its global operations in income tax expense. During 2015 , the Company recognized a net increase of approximately $0.1 million in potential interest and penalties associated with uncertain tax positions in the Consolidated Statements of Operations. The Company had approximately $0.6 million and $0.3 million of interest and penalties associated with uncertain tax positions at December 31, 2015 , which are excluded from the unrecognized tax benefits table below. The Company’s total amounts of unrecognized tax benefits at the beginning and end of the period are as follows (in thousands): Total Balance as of December 31, 2013 $ 3,446 Additions based on tax positions related to the current year 357 Additions for tax positions of prior years 76 Reductions for tax positions of prior years (98 ) Reductions as a result of a lapse of applicable statute of limitations (95 ) Other 2 Balance as of December 31, 2014 $ 3,688 Additions based on tax positions related to the current year 329 Additions for tax positions of prior years 67 Reductions for tax positions of prior years (204 ) Reductions as a result of a lapse of applicable statute of limitations (70 ) Reductions due to settlements (28 ) Other (102 ) Balance as of December 31, 2015 $ 3,680 The Company and its subsidiaries are subject to federal income tax as well as income tax of multiple state and foreign jurisdictions. The Company's statutes of limitations are closed for all federal and state income tax years before 2012 and 2011. The statutes of limitations for the Company's other foreign subsidiaries are closed for all income tax years before 2006. However, to the extent allowed by law, the taxing authorities may have the right to examine prior periods where net operating losses and credits were generated and carried forward, and make adjustments up to the net operating loss and credit carryforward amounts. It is reasonably possible that the Company's uncertain tax positions, including interest and penalties, could decrease by approximately $0.4 million in the next twelve months. The Company is currently under examination in India. The periods covered by the examination are the Company's financial years 2005, 2006 and 2010. The examination is in various stages of appellate proceedings and all material uncertain tax positions associated with the examination have been taken into account in the ending balance of the unrecognized tax benefits at December 31, 2015 . The Company has recorded valuation allowances of $86.8 million and $84.2 million as of December 31, 2015 and 2014 . This represents a full valuation allowance against the Company's U.S., Korean, Malaysian and Japanese net deferred tax assets as well as a partial valuation allowance against the Company's Canadian net deferred tax assets. During 2015, the Company established a valuation allowance against the net deferred tax assets of Korea, Malaysia and Japan as the Company will no longer maintain operations in those jurisdictions. During 2013, the Company recognized the partial valuation allowance against the Company's Canadian net deferred tax assets due to expected changes in the nature of the Company's operations in Canada. In evaluating its valuation allowance, the Company considers all available positive and negative evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income, tax planning strategies, and recent financial performance. At December 31, 2015 the Company had total available federal and state net operating loss carryforwards of approximately $167.1 million and $79.7 million . The federal and state net operating loss carryforwards expire between 2017 and 2034 . The net operating losses from acquisitions are stated net of limitations pursuant to Section 382 of the Internal Revenue Code. The Company also had net operating loss carryforwards of approximately $5.7 million from the United Kingdom (“U.K.”), Malaysia, Korea and China. The U.K. and Malaysian net operating losses may be carried forward indefinitely provided certain requirements are met. The Chinese and Korean tax losses may be carried forward 5 and 10 years, respectively. The Company has federal and state research and development tax credit and other federal credit carryforwards of approximately $16.2 million at December 31, 2015 , to reduce future income tax liabilities. The federal and Oregon credits expire between 2016 and 2031. The California research and development credits do not expire. The credits from acquisitions are stated net of limitations pursuant to Section 383 of the Internal Revenue Code. The Company's Canadian subsidiary also had approximately $4.6 million in investment tax credit, $16.0 million of unclaimed scientific research and experimental expenditures to be carried forward and applied against future income in Canada. Realization of the Company's foreign deferred tax assets is dependent on generating sufficient taxable income prior to the expiration of the net operating loss and tax credit carryforwards. Although realization is not assured, management believes that it is more likely than not that the results of future operations will generate sufficient taxable income to realize the balance of the deferred tax assets, net of the valuation allowance, as of December 31, 2015 . The amount of the net deferred tax assets that is considered realizable, however, could be reduced if estimates of future taxable income during the carryforward periods are reduced. Should management determine that the Company would not be able to realize all or part of the net deferred tax assets in the future, adjustments to the valuation allowance for deferred tax assets may be required. The company has provided a deferred tax liability of $1.3 million related to $ 3.8 million of unremitted earnings of certain foreign subsidiaries. The Company plans to indefinitely reinvest the earnings of certain foreign subsidiaries. Should the Company repatriate any foreign earnings from the remaining subsidiaries in the future, it may be required to establish an income tax liability and recognize additional income tax expense related to such earnings. The Company has indefinitely reinvested approximately $10.9 million of the undistributed earnings from the foreign subsidiaries at December 31, 2015 . Such earnings would be subject to U.S. taxation if repatriated to the U.S. Pretax book loss from domestic operations for the fiscal years 2015 , 2014 , and 2013 was $15.8 million , $29.9 million , and $47.2 million . Pretax book income from foreign operations for the fiscal years 2015 , 2014 , and 2013 was $2.9 million , $4.8 million , and $12.8 million . |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans Stock-Based Employee Benefit Plans Equity instruments are granted to employees, directors and consultants in certain instances, as defined in the respective plan agreements. Stock Options and Restricted Stock Awards On May 15, 2007, the Company's shareholders approved the 2007 Stock Plan which provides for issuance of stock options, restricted shares, restricted stock units and performance-based awards. On September 22, 2015, the Company’s shareholders approved the Amended and Restated 2007 Stock Plan (as amended, the “2007 Stock Plan”). Under the 2007 Stock Plan, 9,050,000 shares have been reserved and authorized for issuance to any non-employee directors and employees. The 2007 Stock Plan provides the Board of Directors discretion in creating employee equity incentives. Unless otherwise stipulated in the plan document, the Board of Directors determines stock option exercise prices, which may not be less than the fair value of Radisys common stock at the date of grant, vesting periods and the expiration periods which are a maximum of 10 years from the date of grant for certain awards. On August 17, 2010, the shareholders approved the Long-Term Incentive Plan ("LTIP"). The LTIP provides for the grants of awards payable in shares of common stock upon the achievement of performance goals set by the Company’s Compensation and Development Committee (“the Committee”). The number of shares of the Company’s common stock initially reserved for issuance under the LTIP is 2,000,000 shares with a maximum of 500,000 shares in any calendar year to one participant. On September 22, 2015, the Company's shareholders approved the Amended 2007 Stock Plan, which provides that shares remaining available for grant as well as shares subject to outstanding awards under the LTIP that may be forfeited upon termination of employment will be added to the shares reserved for the Amended 2007 Stock Plan. The LTIP will expire after the existing grants under the LTIP vest, or expire, at the end of their respective terms. On May 3, 2011 the Company registered 600,000 shares of its common stock under the Radisys Corporation Inducement Stock Plan for CCPU Employees (the "CCPU Plan"). The CCPU Plan was adopted without shareholder approval in reliance upon the exception provided under NASDAQ Listing Rule 5635(c)(4) relating to awards granted in connection with the hiring of new employees, including grants to transferred employees in connection with a merger or acquisition. Awards under the CCPU Plan are made only to employees of Continuous Computing or its subsidiaries and became effective upon the completion of the Continuous Computing acquisition. The CCPU Plan provides for the issuance of stock options, restricted shares and restricted stock units. In 2011, the Company issued 368,000 shares under the CCPU Plan and no future awards will be granted. The Company assumed the stock plans of Continuous Computing on July 8, 2011. Under the terms of the Company's merger agreement with Continuous Computing, options outstanding under these plans were converted to options to purchase shares of the Company's common stock. Options issued under these plans vest over four years from the original grant date and have an expiration date of 10 years from the original grant date. The exercise price of each converted option is equal to the product of the original exercise price and the original number of options granted divided by the number of converted options received. These stock plans have been suspended and no future awards will be granted under these plans. A total of 319,000 shares of common stock were issued under the Continuous Computing stock plans. In accordance with the Continuous Computing merger agreement, unvested options pursuant to the Continuous Computing plans were required to be converted into multiple awards on the acquisition date, with the resulting awards becoming non-contingent and contingent options of the Company. Both the non-contingent and contingent awards continue to vest under the original service conditions of the awards. However, the contingent awards contain post-vesting restrictions tied to payment of certain merger contingencies such as the earn-out and indemnification agreements. The assumed options were valued using a Black-Scholes option-pricing model. In addition, the Company utilized the Finnerty Asian Put Option Approach to estimate the discount associated with the post-vesting restrictions for the contingent options. The resulting discount applied was 10%. On September 4, 2012, the Committee approved 291,375 performance based restricted stock awards under the Overlay Plan based on attainment of the performance goals at maximum levels. The Overlay provides for the grants of awards payable in shares of common stock upon the achievement of performance goals set by the Committee. The awards had four separate quarterly performance achievement dates in 2013 and vest one year after they are earned. As of December 31, 2014, there were no outstanding awards under the Overlay plan. Effective September 10, 2012, the Committee canceled all outstanding awards under the LTIP, resulting in the shares underlying such awards becoming eligible for grants of additional awards under the LTIP. Following such cancellation of awards, on September 10, 2012, the Committee approved 799,975 performance based restricted stock awards under the LTIP based on attainment of 100% of the performance goals being met. The LTIP provides for the grants of awards payable in shares of common stock upon the achievement of performance goals set by the Committee. The awards have four separate semi-annual performance achievement dates in 2013 and 2014 and vest upon attainment of the performance conditions. In addition to the performance conditions, the awards contain market-based multipliers based on the average price of the Company's common stock thirty days prior to each semi-annual performance period. The maximum multiplier for a given semi-annual performance period is 2.75 x the original grant and limited to a maximum of 2.5 x (or 1,999,938 shares) over the entire performance period. On March 2, 2015, the Committee approved 1,575,000 performance based restricted stock unit awards ("PRSUs") under the LTIP and 2007 Stock Plan that have performance periods starting on March 2, 2015 and ending on March 2, 2019, which provides that on the performance measurement date following the achievement of the following market condition stock price hurdles: • 50% of the awards will be earned if Radisys’ average closing stock price over a 30 -trading day period is equal to or greater than $3.45 during a 3 -year performance period. • 50% of the awards will be earned if Radisys’ average closing stock price over a 30 -trading day period is equal to or greater than $4.25 during a 4 -year performance period. As of December 31, 2015 , the Company had 2,554,935 common shares available for future grant under its equity plans. The following table summarizes stock option activity for 2015 (in thousands, except average prices and weighted average remaining contractual lives): Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Balance, December 31, 2014 2,841 $ 4.95 4.40 $ 43 Granted 761 2.23 Exercised (6 ) 0.93 Forfeited (143 ) 3.45 Expired (487 ) 7.66 Balance, December 31, 2015 2,966 $ 3.89 4.35 $ 442 Options exercisable at December 31, 2015 1,860 $ 4.66 3.52 $ 41 Options vested as of December 31, 2015 and expected to vest after December 31, 2015 2,881 $ 3.93 4.30 $ 406 The aggregate intrinsic value in the table above represents the total pretax value, based on the Company's closing common stock price of $2.77 at December 31, 2015 that would have been received by the option holders had all option holders exercised their in-the-money options on December 31, 2015 . Total intrinsic value of options exercised for the years ended December 31, 2015 , 2014 and 2013 was $0.1 million , $0.1 million , and $0.2 million . The total amount of cash received from the exercise of options was $0.1 million in 2015 , 2014 and 2013 . As of December 31, 2015 , the Company had $0.8 million in unrecognized compensation expense related to stock options which is expected to be recognized over a weighted average period of 2.0 years . The following table summarizes non-vested stock activity for 2015 : Restricted Stock Units Performance Stock Units Restricted Shares Weighted Average Fair Value Restricted Shares Weighted Average Fair Value Balance, December 31, 2014 128 $ 3.78 240 $ 3.55 Granted 212 2.21 1,625 2.41 Vested (166 ) 3.08 (113 ) 3.55 Forfeited (23 ) 2.79 (127 ) 3.55 Balance, December 31, 2015 151 $ 2.51 1,625 $ 2.41 The total fair value of restricted stock units that vested in 2015 , 2014 and 2013 was $0.5 million , $1.1 million and $1.4 million . As of December 31, 2015 , the Company had $0.2 million in unrecognized compensation expense related to restricted stock units which is expected to be recognized over a weighted average period of 1.5 years. Expense related to PRSUs awarded in 2015 is recognized over a derived service period determined by a Monte Carlo simulation because these awards vest based upon market conditions. The derived service period represents the median point in time within the simulation model of when each tranche will vest, using the measurement time at which the target price was achieved. It was determined that the derived service periods for the two tranches in this grant were nine and fifteen months. The total fair value of PRSUs awarded in 2015 was $2.9 million . As of December 31, 2015 , unrecognized compensation expense related to PRSUs was $0.6 million which is expected to be recognized over a weighted average period of 0.5 years. Employee Stock Purchase Plan In December 1995, the Company established an Employee Stock Purchase Plan (“ESPP”). All employees of Radisys and its subsidiaries who customarily work 20 or more hours per week, including all officers, are eligible to participate in the ESPP. Separate offerings of common stock to eligible employees under the ESPP (an “Offering”) commence on February 15, May 15, August 15 and November 15 of each calendar year (“Enrollment Dates”) and continue for a period of 18 months. Multiple separate offerings are in operation under the ESPP at any given time. An employee may participate in only one offering at a time and may purchase shares only through payroll deductions permitted under the provisions stipulated by the ESPP. The purchase price is the lesser of 85% of the fair market value of the common stock on date of grant or that of the purchase date (“look-back feature”). Pursuant to the provisions of the ESPP, as amended, the Company is authorized to issue up to 6.7 million shares of common stock under the ESPP. At December 31, 2015 , 410,646 shares were available for issuance under the ESPP. During the second quarter of 2009, the Board of Directors approved an amendment to the Company’s ESPP to provide for a one-year holding period with respect to common stock shares purchased by participants under the ESPP. The one-year holding period took effect during the fourth quarter of 2009. Due to the holding period, the Company applies a discount to the ESPP stock compensation to reflect the decreased liquidity. The Company utilizes the Finnerty Asian Put Option Approach to estimate the discount. Inputs for the model include the length of the holding period, volatility and risk-free rate. The discount applied in the fourth quarter of 2015 , 2014 and 2013 was 11.0% . The following table summarizes shares issued under the ESPP (in thousands, except per share amounts): Year Ended December 31, 2015 2014 2013 Shares issued pursuant to the ESPP 175 242 381 Cash received for the purchase of shares pursuant to the ESPP $ 322 $ 514 $ 767 Weighted average purchase price per share $ 1.84 $ 2.12 $ 2.01 Stock-Based Compensation Expense The Company uses the Black-Scholes model to measure the grant-date fair value of stock options and ESPP shares. The grant-date fair value of stock options that are expected to vest is recognized on a straight-line basis over the requisite service period, generally, three years. The grant date fair value of ESPP shares that are expected to vest is recognized on a straight-line basis over the requisite service period, generally, 18 months, subject to modification at the date of purchase due to the ESPP look-back feature. The estimate of the number of options, ESPP shares and restricted stock units granted under the 2007 Stock Plan expected to vest is determined based on historical experience. The Company estimates the fair value of stock options and purchase rights under the ESPP using a Black-Scholes option-pricing model. The calculation includes several assumptions that require management’s judgment. The expected term of the option or share is determined based on assumptions about patterns of employee exercises, and represents a probability-weighted average time period from grant until exercise of stock options, subject to information available at time of grant. Determining expected volatility generally begins with calculating historical volatility for a similar long-term period and then considering the ways in which the future is reasonably expected to differ from the past. The Company uses one employee population. The expected term computation is based on historical vested option exercise and post-vest forfeiture patterns and is also factored by an estimate of the expected term for fully vested and outstanding options. The estimate of the expected term for options that were fully vested and outstanding was determined as the midpoint between the evaluation date and the contractual term date of the option. The risk free interest rate is based on the U.S. Treasury constant maturities in effect at the time of grant for the expected term of the option or share. The fair value of unvested stock is the market value as of the grant date. The grant-date fair value of the restricted stock units that are expected to vest is recognized on a straight-line basis over the requisite service period, which is three years. The grant-date fair value of the LTIP and Overlay awards granted in 2012 were recognized ratably over the service period which equaled the measurement period of the award. The measurement period was the period of time over which performance objectives are expected to be achieved. Since the number of shares that could have been issued under the LTIP and Overlay and the service period are both variable, the Company evaluated the LTIP and Overlay awards on a quarterly basis to adjust the number of shares expected to be awarded based upon financial results of the Company as compared to the performance goals set for the award. Adjustments to the number of shares awarded, and to the corresponding compensation expense, were made on a cumulative basis at the date of adjustment based upon the estimated probable number of shares to be awarded. Adjustments made to compensation expense resulting from a change in the estimated probable vesting date of the awards were made on a prospective basis. Additionally, under the 2012 LTIP the Company was required to measure the fair value of the market-based condition contained in the awards. This fair value of this feature is measured at the outset of each semi-annual performance period and recognized over the service period of the respective performance period. The grant-date fair value of the PRSUs awarded in 2015 was calculated using a Monte Carlo simulation consistent with the fair value principles of Topic 718 because these awards vest based upon market conditions. Expense is recognized over a derived service period determined by the Monte Carlo simulation. If the conditions of PRSUs are met before the derived service period ends, all remaining expense will be recognized in the period the conditions are met. The fair value calculations for PRSUs used an assumed share price of $2.38 , a 1.32% interest rate and 55% volatility for the year ended December 31, 2015 . The fair value calculations for stock options and ESPP shares used the following assumptions for the years ended December 31: Stock Options ESPP shares 2015 2014 2013 2015 2014 2013 Share price $2.06-2.80 $2.50-3.49 $2.98-4.89 $2.15-2.70 $2.15-3.00 $2.55-4.70 Expected life (in years) 4.39-4.41 4.40-4.47 4.43-4.50 1.5 1.5 1.5 Interest rate 1.3-1.6% 1.3-1.5% 0.7-1.3% 0.1-0.7% 0.1-0.5% 0.1-0.3% Volatility 53.5-54.6% 51.4-52.5% 51.4-71.1% 42.6-55.6% 46.9-55.9% 47.3-55.6% Dividend yield — — — — — — For the years ended December 31, 2015 , 2014 and 2013 , stock-based compensation was recognized and allocated in the Consolidated Statements of Operations as follows (in thousands): 2015 2014 2013 Cost of sales $ 294 $ 386 $ 550 Research and development 867 818 1,170 Selling, general and administrative 2,791 2,893 3,578 Total stock-based compensation expense $ 3,952 $ 4,097 $ 5,298 401(k) Savings Plan The Company established a 401(k) Savings Plan (“401(k) Plan”), a defined contribution plan, as of January 1, 1989 and amended through January 1, 2007, in compliance with Section 401(k) and other related sections of the Internal Revenue Code and corresponding regulations issued by the Department of Treasury and Section 404(c) of Employee Retirement Income Security Act of 1974 (“ERISA”), to provide retirement benefits for its U.S employees. Under the provisions of the plan, eligible employees are allowed pre-tax contributions of up to 30% of their annual compensation or the maximum amount permitted by the applicable statutes. Additionally, eligible employees can elect to make catch-up contributions, within the limits set forth by pre-tax contributions, or to the maximum amount permitted by the applicable statutes. Pursuant to the provisions of the 401(k) Plan, the Company may contribute 50% of pre-tax contributions made by eligible employees, adjusted for loans and withdrawals, up to 6% of annual compensation for each eligible employee. The Company may elect to make supplemental contributions as periodically determined by the Board of Directors at their discretion. The contributions made by the Company on behalf of eligible employees become 100% vested after three years of service, or 33% per year after one year of service. The Company’s total contributions to the 401(k) Plan amounted to $0.7 million , $0.8 million , and $0.7 million in 2015 , 2014 and 2013 . In addition, some of the Company’s employees outside the U.S are covered by various defined contribution plans, in compliance with the statutes of respective countries. The participants pay for the 401(k) Plan administrative expenses. Deferred Compensation Plan The Company terminated its Deferred Compensation Plan during 2013. The distribution of plan assets and participant balances began during 2013 and will continue through January 2015 based on participant elections. The Deferred Compensation Plan provided its directors and certain eligible employees with opportunities to defer a portion of their compensation as defined by the provisions of the plan. The Company credited additional amounts to the Deferred Compensation Plan to make up for reductions of Company contributions under the 401(k) Plan. The deferred amounts were credited with earnings and losses under investment options chosen by the participants. The Company set aside deferred amounts, which were then invested in long-term insurance contracts. All deferred amounts and earnings are 100% vested at all times, but are subject to the claims of creditors of the Company under a bankruptcy proceeding. Benefits were payable to a participant upon retirement, death, and termination of employment and paid as elected by the participant in accordance with the terms of the plan. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company is made up of two operating segments: Software-Systems and Embedded Products and Hardware Services. The Company's Chief Executive Officer, or chief operating decision maker, regularly reviews discrete financial information for purposes of allocating resources and assessing the performance of each segment: • Software-Systems. Software-Systems is comprised of three product lines: FlowEngine, MediaEngine and CellEngine. • Embedded Products and Hardware Services. These hardware based products provide platforms to control and move data in the core of the telecom network. Cost of sales, research and development and selling, general and administrative expenses are allocated to Software-Systems and Embedded Products and Hardware Services. Expenses, reversals, gains and losses not allocated to Software-Systems or Embedded Product and Hardware Services include amortization of acquired intangible assets, stock-based compensation, restructuring and other charges, and other one-time non-recurring events. These items are allocated to corporate and other. The Company recorded the following revenues, gross margin and income (loss) from operations by operating segment for the years ended December 31, 2015, 2014 and 2013 (in thousands): For the Years Ended December 31, 2015 2014 2013 Revenue Software-Systems $ 55,006 $ 40,281 $ 44,934 Embedded Products and Hardware Services 129,587 152,461 192,929 Total revenues $ 184,593 $ 192,742 $ 237,863 For the Years Ended December 31, 2015 2014 2013 Gross margin Software-Systems $ 31,997 $ 24,949 $ 25,860 Embedded Products and Hardware Services 28,311 35,449 47,603 Corporate and other (8,156 ) (8,596 ) (9,325 ) Total gross margin $ 52,152 $ 51,802 $ 64,138 For the Years Ended December 31, 2015 2014 2013 Loss from operations Software-Systems $ (1,900 ) $ (6,169 ) $ (7,974 ) Embedded Products and Hardware Services 9,709 2,457 (25 ) Corporate and other (21,874 ) (21,588 ) (26,767 ) Total loss from operations $ (14,065 ) $ (25,300 ) $ (34,766 ) Assets are not allocated to segments for internal reporting presentations. A portion of depreciation is allocated to the respective segment. It is impracticable for the Company to separately identify fixed assets by segment whose depreciation is included in the measure of segment profit or loss. Geographic Revenues For the Years Ended December 31, 2015 2014 2013 United States $ 81,933 $ 74,630 $ 100,780 Other North America 631 2,079 3,042 China 28,819 31,975 29,818 Japan 13,574 14,848 30,724 Other APAC 28,262 26,329 20,988 Total APAC 70,655 73,152 81,530 Netherlands 14,642 22,608 19,017 Other EMEA 16,732 20,273 33,494 Total EMEA 31,374 42,881 52,511 Foreign Countries 102,660 118,112 137,083 Total revenues $ 184,593 $ 192,742 $ 237,863 Long-lived assets by Geographic Area For the Years Ended December 31, 2015 2014 Property and equipment, net United States $ 3,061 $ 4,558 Other North America 257 672 China 1,231 2,427 Other APAC — 11 Total APAC 1,231 2,438 India 1,584 2,115 Other EMEA 1 3 Total EMEA 1,585 2,118 Foreign Countries 3,073 5,228 Total property and equipment, net $ 6,134 $ 9,786 Intangible assets, net United States $ 30,322 $ 43,224 Total intangible assets, net $ 30,322 $ 43,224 The following customers accounted for more than 10% of total revenues for the years ended December 31: 2015 2014 2013 Nokia Solutions and Networks 16.0% 17.0% 18.7% Philips Healthcare 10.0% 14.9% NA The following customers accounted for more than 10% of accounts receivable for the years ended December 31: 2015 2014 Tier-one U.S. carrier 36.0% NA Reliance Jio Infocomm 14.7% NA Nokia Solutions and Networks NA 18.5% Philips Healthcare NA 13.9% |
Legal Proceedings
Legal Proceedings | 12 Months Ended |
Dec. 31, 2015 | |
Legal Proceedings Disclosure [Abstract] | |
Legal Proceedings | Legal Proceedings In the normal course of business, the Company becomes involved in litigation. As of December 31, 2015 , in the opinion of management, Radisys had no pending litigation that would have a material effect on the Company’s financial position, results of operations or cash flows. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On February 8, 2016, the Company entered into a $35.0 million secured revolving line of credit agreement with Silicon Valley Bank to replace the Company's existing line of credit agreement with Silicon Valley Bank. Refer to Note 10 - Short-Term Borrowings for a complete description of the terms and conditions of the new line of the credit. |
Significant Accounting Polici27
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation and Presentation The accompanying Consolidated Financial Statements include the accounts of the Company and its wholly owned subsidiaries. All inter-company accounts and transactions have been properly eliminated in consolidation. |
Management Estimates | Management Estimates The Consolidated Financial Statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). The preparation of these Consolidated Financial Statements requires management to make estimates and judgments that may affect the amounts reported in its Consolidated Financial Statements and accompanying notes. Actual results may differ from these estimates under different assumptions or conditions. |
Revenue Recognition | Revenue Recognition Multiple Element Arrangements A significant portion of the Company's revenue relates to product sales for which revenue is recognized upon shipment, with limited judgment required related to product returns. Title transfer for substantially all product sales occurs upon delivery of products to our customer's freight forwarders. The software elements included in certain components of Embedded Products and Hardware Service systems, FlowEngine and MediaEngine products are considered to be functioning together with the non-software elements to provide the tangible product's essential functionality and these arrangements generally include multiple elements such as hardware, technical support services as well as software upgrades or enhancements on a when and if available basis. Arrangements including multiple elements require significant management judgment to evaluate the effective terms of agreements, our performance commitments and determination of fair value of the various deliverables under the arrangement. For hardware sales which may include software, ASC 605 Revenue Recognition provides a fair value hierarchy in order to determine the appropriate relative fair value for each element of an arrangement. When available, the Company uses vendor specific objective evidence (“VSOE”) to determine the estimated fair value of each element of the arrangement. In the absence of VSOE or third−party evidence ("TPE") for a delivered element, the Company then uses an estimated selling price in order to determine fair value. Estimated selling prices represent the Company's best estimate of the price at which it would transact if the deliverables were sold on a standalone basis. For technical support services, the Company generally determines its selling price based on VSOE as supported by substantive renewal rates in the related service agreements. In certain instances where VSOE cannot be established, the Company then relies upon its estimated selling price for such deliverables as TPE is generally not available due to the unique company-specific terms surrounding such service agreements. In establishing an appropriate estimated selling price for these technical support agreements, the Company considered entity specific factors such as its historical and projected costs, historical and projected revenues, and profit objectives. The Company also considered market specific factors when establishing reasonable profit objectives. Hardware Revenue from hardware products is recognized in accordance with ASC 605 Revenue Recognition . Under the Company’s standard terms and conditions of sale, the Company transfers title and risk of loss to the customer at the time product is shipped to the customer and revenue is recognized accordingly, unless customer acceptance is uncertain or significant obligations remain. The Company reduces revenue for estimated customer returns for rotation rights according to agreements with the Company's distributors. The amount of revenues derived from distributors as a percentage of revenues was 15.1% , 16.3% and 14.3% for the years ended December 31, 2015 , 2014 and 2013 . Revenues associated with distributors are generally recognized upon shipment as the Company has established a sell-to model with distributors. The Company accrues the estimated cost of product warranties, based on historical experience at the time the Company recognizes revenue. The software elements included in certain components of embedded product systems and MediaEngine products are considered to be functioning together with the non-software elements to provide the tangible product's essential functionality and the Company’s MediaEngine arrangements generally include multiple elements such as hardware and technical support services. Software licenses and royalties Revenue from software licenses and royalties is recognized in accordance with ASC 985 Software . The Company recognizes software license revenue at the time of shipment or upon delivery of the software master provided that the revenue recognition criteria have been met and VSOE exists to allocate the total fee to all undelivered elements of the arrangement. The Company defers revenue on arrangements, including specified software upgrades, until the specified upgrade has been delivered. Revenue from customers for prepaid, non-refundable software royalties is recorded when the revenue recognition criteria have been met. Revenue for non-prepaid royalties is recognized at the time the Company receives reporting from customers as the Company has not established an ability to reliably estimate customer royalties prior to time contractually obligated reporting is received. Technical support services Technical support services revenue is recognized as earned on the straight-line basis over the term of the contract. The fair value of the Company’s post-contract support has been determined by renewal rates within the Company’s support agreements, the actual amounts charged to customers for renewal of their support services or based on an estimated selling price. Professional and other services Professional services revenue is recognized upon completion of certain contractual milestones and customer acceptance of the services rendered. Other services revenues include hardware repair services and custom software implementation projects. Hardware repair services revenues are recognized when the services are complete. Software implementation revenues are recognized upon completion of certain contractual milestones and customer acceptance of the services rendered or as services are performed under the percentage-of-completion method when the Company is reasonably able to estimate the total effort required to complete the contract. Deferred revenue Deferred revenue represents amounts received or billed for the following types of transactions: • Undelivered elements of an arrangement —Certain software sales include specified upgrades and enhancements to an existing product. Revenue for such products is deferred until the future obligation is fulfilled. Additionally, certain hardware shipments that have been delivered are deferred when customer acceptance is uncertain and revenue is recognized upon customer acceptance. • Technical support services— The Company has a number of technical support agreements with customers for hardware and software maintenance. Generally, these services are billed in advance and recognized over the term of the agreement . Cost of sales associated with deferred revenue is also deferred. These deferred costs are recognized when the associated revenue is recognized. |
Capitalized Software Development Costs | Capitalized Software Development Costs The Company does not capitalize internal software development costs incurred in the production of computer software as the Company does not incur any material costs between the point of technological feasibility and general release of the product to customers in the future. As such software development costs are expensed as research and development (“R&D”) costs. |
Shipping Costs | Shipping Costs The Company’s shipping and handling costs for product sales are included under cost of sales for all periods presented. For the years ended December 31, 2015 , 2014 and 2013 shipping and handling costs represented approximately 2% of cost of sales. |
Advertising Costs | Advertising Costs The Company expenses advertising costs as incurred. Advertising costs consist primarily of media, display, web, and print advertising, along with trade show costs and product demos and brochures. For the years ended December 31, 2015 , 2014 and 2013 advertising costs were $0.9 million , $1.1 million and $2.0 million . |
Cash Equivalents | Cash Equivalents The Company considers all highly liquid investments purchased with an original maturity of three months or less at the date of purchase to be cash equivalents. |
Accounts Receivable | Accounts Receivable Trade accounts receivable are stated at invoice amount net of an allowance for doubtful accounts and do not bear interest. An allowance for doubtful accounts is maintained for estimated losses resulting from the inability of customers to make required payments. Management reviews the allowance for doubtful accounts quarterly for reasonableness and adequacy. If the financial condition of the Company’s customers were to deteriorate resulting in an impairment of their ability to make payments, additional provisions for uncollectible accounts receivable may be required. In the event the Company determined that a smaller or larger reserve was appropriate, it would record a credit or a charge in the period in which such determination is made. In addition to specific customer reserves, the Company maintains a non-specific bad debt reserve for all customers. This non-specific bad debt reserve is calculated based on the Company's historical pattern of bad debt write-offs as a percentage of gross accounts receivable for the current rolling eight quarters, which percentage is then applied to the current gross accounts receivable. The Company’s customers are concentrated in the technology industry and the collection of its accounts receivable are directly associated with the operational results of the industry. |
Inventories | Inventories Inventories are stated at the lower of cost, determined on the first-in, first-out (FIFO) basis, or market, net of an inventory valuation allowance. The Company uses a standard cost methodology to determine the cost basis for its inventories. The Company evaluates inventory on a quarterly basis for obsolete or slow-moving items to ascertain if the recorded allowance is reasonable and adequate. Inventory is written down for estimated obsolescence or unmarketable inventory equal to the difference between the cost of inventory and the estimated net realizable value based upon assumptions about future demand and market conditions. The Company's inventory valuation allowances establish a new cost basis for inventory. |
Long-Lived Assets | Long-Lived Assets Long-lived assets, such as property and equipment and definite-life intangible assets are evaluated for impairment whenever events or changes in circumstances indicate the carrying value of an asset may not be recoverable. The Company assesses the impairment of the assets based on the undiscounted future cash flow the assets are expected to generate compared to the carrying value of the assets. If the carrying amount of the assets is determined not to be recoverable, a write-down to fair value is recorded. Management estimates future cash flows using assumptions about expected future operating performance. Management’s estimates of future cash flows may differ from actual cash flow due to, among other things, technological changes, economic conditions or changes to the Company’s business operations. Intangible assets with estimable useful lives are amortized on a straight-line basis over their respective estimated life and reviewed for impairment when certain triggering events suggest impairment has occurred. The Company determined that no triggering events occurred in 2015; however, it was determined that a triggering event occurred during the third quarter of 2014 and required an analysis of the recoverability of its long-lived assets. The Company concluded its long-lived assets were not impaired. |
Property and Equipment | Property and Equipment Property and equipment is recorded at historical cost and is depreciated or amortized on a straight-line basis according to the table below. In certain circumstances where the Company is aware that an asset’s life differs from the general guidelines set forth in its policy, management adjusts its depreciable life accordingly, to ensure expense is being recognized over the appropriate future periods. Ordinary maintenance and repair expenses are expensed when incurred. Machinery, equipment, furniture and fixtures 5 years Software, computer hardware and manufacturing test fixtures 3 years Engineering demonstration products and samples 1 year Leasehold improvements Lesser of the lease term or estimated useful lives |
Leases | Leases The Company leases all of its facilities, certain office equipment and vehicles under non-cancelable operating leases that expire at various dates through 2020, along with options that permit renewals for additional periods. Rent escalations are considered in the determination of straight-line rent expense for operating leases. Leasehold improvements made at the inception of or during the lease are amortized over the shorter of the asset life or the lease term. |
Accrued Restructuring | Accrued Restructuring Expenses associated with exit or disposal activities are recognized when probable and estimable because the Company has a history of paying severance benefits. The Company has engaged, and may continue to engage, in restructuring actions, which require the Company to make significant estimates in several areas including: realizable values of assets made redundant or obsolete; expenses for severance and other employee separation costs; the ability and timing to generate sublease income, as well as the Company's ability to terminate lease obligations at the amounts estimated; and other exit costs. Should the actual amounts differ from the estimates, the amount of the restructuring charges could be materially impacted. |
Warranty | Warranty The Company provides for the estimated cost of product warranties at the time it recognizes revenue. Products are generally sold with warranty coverage for a period of 12 or 24 months after shipment. On a quarterly basis the Company assesses the reasonableness and adequacy of the warranty liability and adjusts such amounts as necessary. Warranty reserves are included in other accrued liabilities and other long-term liabilities in the accompanying Consolidated Balance Sheets as of December 31, 2015 and 2014 . |
Research and Development | Research and Development Research, development and engineering ("R&D") costs are expensed as incurred. R&D expenses consist primarily of salary, bonuses and benefits for product development staff, and cost of design and development supplies and equipment, net of reimbursements for non-recurring engineering services. |
Income Taxes | Income Taxes Income tax accounting requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the financial statement carrying amounts and tax bases of assets and liabilities. Valuation allowances are established to reduce deferred tax assets if it is “more likely than not” that all or a portion of the asset will not be realized due to inability to generate sufficient taxable income in the relevant period to utilize the deferred tax asset. Tax law and rate changes are reflected in the period such changes are enacted. The Company recognizes uncertain tax positions after evaluating whether certain tax positions are more likely than not to be sustained by taxing authorities. In addition, the Company recognizes potential accrued interest and penalties related to unrecognized tax benefits in income tax expense. |
Comprehensive Income (Loss) | Comprehensive Income (Loss) The Company reports accumulated other comprehensive income (loss) in its Consolidated Balance Sheets. Comprehensive income (loss) includes net income (loss), translation adjustments and unrealized gains (losses) on hedging instruments net of their tax effect. The cumulative translation adjustments consist of unrealized gains (losses) for foreign currency translation. |
Stock-Based Compensation | Stock-Based Compensation The Company measures stock-based compensation at the grant date, based on the fair value of the award, and recognizes expense on a straight-line basis over the employee's requisite service period. For performance-based restricted stock unit awards, the requisite service period is equal to the period of time over which performance objectives underlying the award are expected to be achieved and vested. The number of shares that ultimately vest depends on the achievement of certain performance criteria over the measurement period. For non-market based performance-based restricted stock, quarterly, we reevaluate the period during which the performance objective will be met and the number of shares expected to vest. The amount of quarterly expense recorded each period is based on our estimate of the number of awards that will ultimately vest. The Company estimates the fair value of stock options and purchase rights under our employee stock purchase plans using a Black-Scholes option-pricing model. The Black-Scholes option-pricing model incorporates several highly subjective assumptions including expected volatility, expected term and interest rates. In reaching our determination of expected volatility, we use the historic volatility of our shares of common stock. We base the expected term of our stock options on historic experience. The expected term for purchase rights under our employee stock plans is based on the 18 month offering period. The risk-free rate is based on the U.S. Treasury constant maturities in effect at the time of grant for the expected term of the option or share. The calculation includes several assumptions that require management's judgment. The expected term of the option or share is determined based on assumptions about patterns of employee exercises and represents a probability-weighted average time-period from grant until exercise of stock options, subject to information available at time of grant. Determining expected volatility generally begins with calculating historical volatility for a similar long-term period and then considers the ways in which the future is reasonably expected to differ from the past. The grant-date fair value of the PRSUs awarded in 2015 was calculated using a Monte Carlo simulation consistent with the fair value principals of Topic 718 since these awards vest based upon market conditions. Expense is recognized over a derived service period determined by the Monte Carlo simulation. If the conditions of PRSUs are met before the derived service period ends, all remaining expense will be recognized in the period the conditions are met. The input factors used in the valuation model are based on subjective future expectations combined with management's judgment. If there is a difference between the assumptions used in determining stock-based compensation cost and the actual factors which become known over time, we may change the input factors used in determining stock-based compensation costs. These changes may materially impact the results of operations in the event such changes are made. In addition, if we were to modify any awards, additional charges would be taken. If our actual forfeiture rate is materially different from our estimate the stock-based compensation expense could be significantly different from what we have recorded in the current period. See Note 16 — Employee Benefit Plans of the Notes to the Consolidated Financial Statements for a further discussion on stock-based compensation. |
Net Income (Loss) Per Share | Net loss per share Basic loss per share amounts are computed based on the weighted average number of common shares outstanding. Diluted net loss per share incorporates the incremental shares issuable upon the assumed exercise of stock options, incremental shares associated with the assumed vesting of restricted stock and the assumed conversion of the Company’s convertible notes, as if the conversion to common shares had occurred at the beginning of the fiscal year and when such conversion would have a dilutive effect. When the conversion of the Company’s convertible notes are dilutive, earnings would be adjusted for interest expense incurred on the convertible notes. |
Derivatives | Derivatives The Company hedges exposure to changes in exchange rates from the US Dollar to the Indian Rupee. These derivatives are recognized on the balance sheet at their fair value. Unrealized gain positions are recorded as other current assets and unrealized loss positions are recorded as other accrued liabilities. Changes in the fair values of the outstanding derivatives that are highly effective are recorded in other comprehensive income until net income (loss) is affected by the variability of the cash flows of the hedged transaction. Hedge ineffectiveness could result when the amount of the Company’s hedge contracts exceed the Company’s forecasted or actual transactions for which the hedge contracts were designed to hedge. Once a hedge contract matures the associated gain (loss) on the contract will remain in other comprehensive income (loss) until the underlying hedged transaction affects net income (loss), at which time the gain (loss) will be recorded to the expense line item being hedged, which is primarily cost of sales and research and development. The Company only enters into derivative contracts in order to hedge foreign currency exposure. If the Company entered into a contract for speculative reasons or if the Company’s current hedge position becomes ineffective, changes in the fair values of the derivatives would be recognized in earnings in the current period. |
Foreign Currency Translation | Foreign currency translation Assets and liabilities of international operations using a functional currency other than the U.S. dollar are translated into U.S. dollars at exchange rates as of December 31, 2015 and 2014 . Income and expense accounts are translated into U.S. dollars at the average daily rates of exchange prevailing during the period. Adjustments resulting from translating foreign functional currency financial statements into U.S. dollars are recorded as a separate component in shareholders’ equity. Foreign exchange transaction gains and losses are included in other income (expense), net, in the Consolidated Statements of Operations. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In November 2015, the FASB issued ASU No. 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes to simplify the presentation of deferred taxes in the statement of financial position. The updated guidance requires that deferred tax assets and liabilities be classified as noncurrent in a classified balance sheet. The update to the standard is effective for all interim and annual period is fiscals years beginning after December 15, 2016 with early application permitted as of the beginning of any interim or annual reporting period. This guidance may be applied either prospectively to all deferred tax assets and liabilities or retrospectively to all periods presented. The Company has early adopted the updated guidance and have applied retrospectively to all periods presented in the Consolidated Balance Sheets which resulted in the reclassification of $0.2 million short-term deferred tax assets, net to long-term deferred tax assets, net. In May 2014, the Financial Accounting Standards Board ("FASB") issued ASU 2014-09, "Revenue from Contracts with Customers (Topic 606)," which is the new comprehensive revenue recognition standard that will supersede all existing revenue recognition guidance under U.S. GAAP. The standard's core principle is that a company will recognize revenue when it transfers promised goods or services to a customer in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. ASU 2015-14, "Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date," which was issued in August 2015, revised the effective date for this ASU to annual and interim periods beginning on or after December 15, 2017, with early adoption permitted, but not earlier than the original effective date of annual and interim periods beginning on or after December 15, 2016, for public entities. Entities will have the option of using either a full retrospective approach or a modified approach to adopt the guidance in ASU 2014-09. The Company is currently evaluating the impact of adopting this guidance. |
Fair Value of Financial Instr28
Fair Value of Financial Instruments (Tables) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Fair Value Disclosures [Abstract] | ||
Fair Value, Assets Measured on Recurring Basis | The following tables summarizes the fair value measurements as of December 31, 2015 and December 31, 2014 for the Company's financial instruments (in thousands): Fair Value Measurements as of December 31, 2015 Total Level 1 Level 2 Level 3 Foreign currency forward contracts (277 ) — (277 ) — | Fair Value Measurements as of December 31, 2014 Total Level 1 Level 2 Level 3 Foreign currency forward contracts (83 ) — (83 ) — |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | The following table summarizes level 3 activity for the Company's contingent consideration liability (in thousands): Fair Value Contingent Consideration Balance at December 31, 2013 390 Additions — Decrease in liability due to re-measurement (156 ) Payments (273 ) Accretion 39 Balance at December 31, 2014 $ — |
Accounts Receivable and Other29
Accounts Receivable and Other Receivables (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Receivables [Abstract] | |
Accounts Receivable, Net | Accounts receivable balances consisted of the following (in thousands): December 31, December 31, Accounts receivable, gross $ 61,045 $ 43,969 Less: allowance for doubtful accounts (103 ) (124 ) Accounts receivable, net $ 60,942 $ 43,845 |
Allowance for Doubtful Accounts | Accounts receivable at December 31, 2015 and 2014 consisted of sales to the Company’s customers which are generally based on standard terms and conditions. The Company recorded the following activity in allowance for doubtful accounts (in thousands): For the Years Ended December 31, 2015 2014 2013 Allowance for doubtful accounts, beginning of the year $ 124 $ 348 $ 779 Charged to costs and expenses (17 ) (75 ) (310 ) Less: write-offs, net of recoveries (4 ) (149 ) (121 ) Remaining allowance, end of the year $ 103 $ 124 $ 348 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current | Inventories consisted of the following (in thousands): December 31, December 31, Raw materials $ 14,546 $ 9,219 Work-in-process 98 1,195 Finished goods 7,485 10,762 22,129 21,176 Less: inventory valuation allowance (5,317 ) (2,701 ) Inventories, net $ 16,812 $ 18,475 |
Charges Associated with Inventory | The Company recorded the following charges associated with the valuation of inventory, inventory deposit and the adverse purchase commitment liability for the years ended December 31 (in thousands): 2015 2014 2013 Inventory, net $ 1,476 $ 2,412 $ 3,302 Inventory deposit, net (29 ) 126 945 Adverse purchase commitments 1,831 323 327 |
Change in Inventory Valuation Allowance | The following is a summary of the change in the Company’s inventory valuation allowance for the years ended December 31 (in thousands): 2015 2014 Inventory valuation allowance, beginning of the year $ 2,701 $ 7,037 Usage: Inventory scrapped (151 ) (5,768 ) Inventory utilized (856 ) (1,005 ) Subtotal—usage (1,007 ) (6,773 ) Write-downs of inventory valuation 2,332 3,417 Transfer from other liabilities (A) 1,291 (1,013 ) Transfer from inventory deposit valuation allowance — 33 Inventory valuation allowance, end of the year $ 5,317 $ 2,701 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property and equipment consisted of the following (in thousands): December 31, December 31, Manufacturing equipment $ 22,049 $ 24,643 Office equipment and software 25,087 30,702 Leasehold improvements 4,183 5,163 Property and equipment, gross 51,319 60,508 Less: accumulated depreciation and amortization (45,185 ) (50,722 ) Property and equipment, net $ 6,134 $ 9,786 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Intangible Assets [Abstract] | |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | The estimated future amortization expense of purchased intangible assets as of December 31, 2015 is as follows (in thousands): For the Years Ending December 31, Estimated Intangible Amortization Amount 2016 $ 12,747 2017 10,713 2018 4,870 2019 790 2020 790 Thereafter 412 Total estimated future amortization expense $ 30,322 |
Schedule of Intangible Assets and Goodwill | The following tables summarize the Company’s total purchased intangible assets (in thousands): Gross Accumulated Amortization Net December 31, 2015 Purchased technology $ 114,754 $ (95,260 ) $ 19,494 Patents 6,472 (6,472 ) — Customer lists 37,000 (30,534 ) 6,466 Trade names 11,536 (7,174 ) 4,362 Backlog 2,127 (2,127 ) — Total intangible assets $ 171,889 $ (141,567 ) $ 30,322 December 31, 2014 Purchased technology $ 114,754 $ (87,398 ) $ 27,356 Patents 6,472 (6,472 ) — Customer lists 37,000 (26,284 ) 10,716 Trade names 11,536 (6,384 ) 5,152 Backlog 2,127 (2,127 ) — Total intangible assets $ 171,889 $ (128,665 ) $ 43,224 |
Accrued Restructuring (Tables)
Accrued Restructuring (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Reserve by Type of Cost | ch is included in other accrued liabilities and other long-term liabilities in the accompanying Consolidated Balance Sheets as of December 31, 2015 and 2014 , consisted of the following (in thousands): Severance, payroll taxes and other employee benefits Facility reductions Total Balance accrued as of December 31, 2014 $ 166 $ 587 $ 753 Additions 4,436 392 4,828 Reversals (546 ) — (546 ) Expenditures (3,974 ) (397 ) (4,371 ) Balance accrued as of December 31, 2015 $ 82 $ 582 $ 664 Of the |
Schedule of Restructuring and Related Costs | Restructuring and Other Charges The following table summarizes the Company's restructuring and other gains and charges as presented in the Consolidated Statement of Operations (in thousands): December 31, 2015 December 31, 2014 December 31, 2013 Employee-related restructuring expenses $ 3,890 $ 1,468 $ 5,463 Facility reductions 392 — 602 Integration-related and other non-recurring expenses 629 2,097 1,039 Non-recurring legal expenses 109 796 779 Fair value adjustments to contingent consideration liability — (156 ) (1,740 ) Write off of purchased computer software — — 2,868 Net gain from sale of OS-9 software assets — — (1,532 ) Restructuring and other charges, net $ 5,020 $ 4,205 $ 7,479 Restructuring and other charges may include costs from non-recurring events such as costs incurred for employee severance, acquisition or divestiture activities, excess facility costs, certain legal costs, asset related charges and other expenses associated with business restructuring activities. During the year ended December 31, 2015 , the Company recorded the following restructuring and other charges: • $3.9 million net expense relating to the severance of 130 employees primarily within Asia and North America. These actions were in connection with the restructuring of the Company's Embedded Products and Hardware Services segment's research and development and sales and general administrative functions and are presented net of reductions resulting from changes in previously estimated amounts for employee severance and associated payroll costs; and • $0.6 million integration-related net expense principally associated with asset disposals and transfer-related costs resulting from resource and site consolidation actions; • $0.4 million lease abandonment expense associated with reductions in certain of our international sites; and • $0.1 million legal expenses associated with non-operating strategic projects. During the year ended December 31, 2014 , the Company recorded the following restructuring and other charges: • $1.5 million net expense relating to the severance of employees in connection with the previously reported Penang site closure, as well as severance for 20 additional employees, net of reductions resulting from changes in previously estimated amounts for employee severance and associated payroll costs; • $2.1 million integration-related net expense principally associated with asset write-offs and personnel overlap resulting from resource consolidation primarily associated with the Penang site closure; • $0.8 million legal expenses associated with non-operating strategic projects; and • $0.2 million gain resulting from the decrease in fair value of the Continuous Computing contingent consideration liability. Accrued restructuring, which is included in other accrued liabilities and other long-term liabilities in the accompanying Consolidated Balance Sheets as of December 31, 2015 and 2014 , consisted of the following (in thousands): Severance, payroll taxes and other employee benefits Facility reductions Total Balance accrued as of December 31, 2014 $ 166 $ 587 $ 753 Additions 4,436 392 4,828 Reversals (546 ) — (546 ) Expenditures (3,974 ) (397 ) (4,371 ) Balance accrued as of December 31, 2015 $ 82 $ 582 $ 664 Of the $0.7 million and $0.8 million accrued re structuring balance at December 31, 2015 and 2014 , $0.1 million and $0.4 million is included in other long- term liabilities on the Consolidated Balance Sheets as of December 31, 2015 and 2014 . These amounts represent the long-term portion of accrued lease abandonment charges. The remaining balances are presented in other accrued liabilities on the Consolidated Balance Sheets. The Company evaluates the adequacy of the accrued restructuring charges on a quarterly basis. Reversals are recorded in the period in which the Company determines that expected restructuring obligations are less than the amounts accrued. The following table summarizes the Company's restructuring and other gains and charges as presented in the Consolidated Statement of Operations (in thousands): December 31, 2015 December 31, 2014 December 31, 2013 Employee-related restructuring expenses $ 3,890 $ 1,468 $ 5,463 Facility reductions 392 — 602 Integration-related and other non-recurring expenses 629 2,097 1,039 Non-recurring legal expenses 109 796 779 Fair value adjustments to contingent consideration liability — (156 ) (1,740 ) Write off of purchased computer software — — 2,868 Net gain from sale of OS-9 software assets — — (1,532 ) Restructuring and other charges, net $ 5,020 $ 4,205 $ 7,479 |
Other Accrued and Other Long-34
Other Accrued and Other Long-Term Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Other Accrued and Other Long-Term Liabilities [Abstract] | |
Accounts Payable and Accrued Liabilities Disclosure | Other accrued liabilities consisted of the following (in thousands): December 31, December 31, Accrued warranty reserve $ 2,036 $ 2,018 Adverse purchase commitments 2,176 1,733 Accrued restructuring 575 332 Income tax payable, net 279 429 Other 4,338 2,743 Other accrued liabilities $ 9,404 $ 7,255 |
Schedule of Other Long-term Liabilities | Other long-term liabilities consisted of the following (in thousands): December 31, December 31, Accrued restructuring $ 89 $ 421 Accrued warranty reserve 517 582 Long-term income tax payable 2,224 1,699 Other 155 98 Other long-term liabilities $ 2,985 $ 2,800 |
Convertible Debt (Tables)
Convertible Debt (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Convertible Senior Notes [Member] | |
Short-term Debt [Line Items] | |
Schedule of Debt | The following table outlines the effective interest rate, contractually stated interest costs, and costs related to the amortization of issuance costs for the Company's 2013 and 2015 convertible senior notes: Years Ended December 31, 2015 2014 2013 Effective interest rate of 2013 convertible senior notes NA NA 2.75% Effective interest rate of 2015 convertible senior notes 4.50% 4.50% 4.50% Contractually stated interest costs $101 $810 $810 Amortization of interest costs $7 $43 $43 |
Hedging (Tables)
Hedging (Tables) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Schedule of Foreign Exchange Contracts, Statement of Financial Position | A summary of the aggregate contractual or notional amounts, balance sheet location and estimated fair values of derivative financial instruments designated as cash flow hedges at December 31, 2015 is as follows (in thousands): Contractual / Notional Amount Consolidated Balance Sheet Classification Estimated Fair Value Asset (Liability) Foreign currency forward exchange contracts $ 14,024 Other accrued liabilities $ — $ (277 ) | A summary of the aggregate contractual or notional amounts, balance sheet location and estimated fair values of derivative financial instruments designated as cash flow hedges at December 31, 2014 is as follows (in thousands): Contractual / Notional Amount Consolidated Balance Sheet Classification Estimated Fair Value Asset (Liability) Foreign currency forward exchange contracts $ 14,193 Other accrued liabilities $ — $ (83 ) |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | There were no ineffective hedges for the years ended December 31, 2015 , 2014 and 2013 . The following table summarizes the effect of derivative instruments on the Consolidated Statements of Operations as follows (in thousands): 2015 2014 2013 Cost of sales $ 187 $ 178 $ 498 Research and development 305 295 544 Selling, general and administrative 135 154 158 Total derivative instrument expense $ 627 $ 627 $ 1,200 | |
Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases | Future minimum lease payments with initial or remaining non-cancelable lease terms in excess of one year, at December 31, 2015 , were as follows (in thousands): For the Years Ending December 31, Future Minimum Lease Payments 2016 2,363 2017 1,487 2018 769 2019 523 2020 228 2021+ — Total future minimum lease commitments $ 5,370 |
Schedule of Product Warranty Liability | For the Years Ended December 31, 2015 2014 Warranty liability balance, beginning of the year $ 2,600 $ 3,328 Product warranty accruals 2,025 2,665 Adjustments for payments made (2,072 ) (3,393 ) Warranty liability balance, end of the year $ 2,553 $ 2,600 |
Basic and Diluted Net IncomeP38
Basic and Diluted Net IncomePer Share (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | A reconciliation of the numerator and the denominator used to calculate basic and diluted loss per share is as follows (in thousands, except per share amounts): For the Years Ended December 31, 2015 2014 2013 Numerator—Basic Net loss, basic $ (14,678 ) $ (27,581 ) $ (49,404 ) Numerator—Diluted Net loss, basic $ (14,678 ) $ (27,581 ) $ (49,404 ) Interest on convertible senior notes, net of tax benefit (A) — — — Net loss, diluted $ (14,678 ) $ (27,581 ) $ (49,404 ) Denominator—Basic Weighted average shares used to calculate net loss per share, basic 36,789 34,699 28,805 Denominator—Diluted Weighted average shares used to calculate net loss per share, basic 36,789 34,699 28,805 Effect of convertible notes (A) — — — Effect of dilutive restricted stock (B) — — — Effect of dilutive stock options (B) — — — Weighted average shares used to calculate net loss per share, diluted 36,789 34,699 28,805 Net loss per share: Basic $ (0.40 ) $ (0.79 ) $ (1.72 ) Diluted $ (0.40 ) $ (0.79 ) $ (1.72 ) |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | The following as-if converted shares associated with the Company’s 2015 convertible senior notes were excluded from the calculation as their effect would be anti-dilutive (in thousands): For the Years Ended December 31, 2015 2014 2013 2015 convertible senior notes — 2,110 2,110 (B) The following shares, by equity award type, were excluded from the calculation, as their effect would have been anti-dilutive (in thousands): For the Years Ended December 31, 2015 2014 2013 Stock options 2,966 2,841 3,465 Restricted stock units 151 128 335 Performance based restricted stock units (C) 1,625 240 193 Total equity award shares excluded 4,742 3,209 3,993 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The income tax provision consists of the following (in thousands): For the Years Ended December 31, 2015 2014 2013 Current provision: Federal $ — $ — $ — State 30 21 (70 ) Foreign 1,772 2,127 2,299 Total current provision 1,802 2,148 2,229 Deferred provision (benefit): Federal 35 (73 ) — State 2 (3 ) — Foreign (97 ) 420 12,726 Total deferred provision (60 ) 344 12,726 Total income tax provision $ 1,742 $ 2,492 $ 14,955 |
Schedule of Effective Income Tax Rate Reconciliation | For the Years Ended December 31, 2015 2014 2013 Current provision: Federal $ — $ — $ — State 30 21 (70 ) Foreign 1,772 2,127 2,299 Total current provision 1,802 2,148 2,229 Deferred provision (benefit): Federal 35 (73 ) — State 2 (3 ) — Foreign (97 ) 420 12,726 Total deferred provision (60 ) 344 12,726 Total income tax provision $ 1,742 $ 2,492 $ 14,955 The income tax provision (benefit) differs from the amount computed by applying the statutory federal income tax rate to pretax income as a result of the following differences (dollar amounts in thousands): |
Schedule of Deferred Tax Assets and Liabilities | The components of deferred taxes consist of the following (in thousands): December 31, December 31, Deferred tax assets: Accrued warranty $ 919 $ 937 Inventory 2,697 1,731 Restructuring accrual 5 58 Net operating loss carryforwards 59,784 61,521 Tax credit carryforwards 22,817 23,866 Stock-based compensation 2,142 2,042 Fixed assets 952 950 Goodwill 2,109 2,516 Other 5,693 4,056 Total deferred tax assets 97,118 97,677 Less: valuation allowance (86,752 ) (84,240 ) Net deferred tax assets 10,366 13,437 Deferred tax liabilities: Intangible assets (7,582 ) (11,764 ) Other (1,611 ) (593 ) Total deferred tax liabilities (9,193 ) (12,357 ) Total net deferred tax assets $ 1,173 $ 1,080 |
Schedule of Unrecognized Tax Benefits Roll Forward | The Company’s total amounts of unrecognized tax benefits at the beginning and end of the period are as follows (in thousands): Total Balance as of December 31, 2013 $ 3,446 Additions based on tax positions related to the current year 357 Additions for tax positions of prior years 76 Reductions for tax positions of prior years (98 ) Reductions as a result of a lapse of applicable statute of limitations (95 ) Other 2 Balance as of December 31, 2014 $ 3,688 Additions based on tax positions related to the current year 329 Additions for tax positions of prior years 67 Reductions for tax positions of prior years (204 ) Reductions as a result of a lapse of applicable statute of limitations (70 ) Reductions due to settlements (28 ) Other (102 ) Balance as of December 31, 2015 $ 3,680 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Share-based Compensation, Stock Options, Activity | The following table summarizes stock option activity for 2015 (in thousands, except average prices and weighted average remaining contractual lives): Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Balance, December 31, 2014 2,841 $ 4.95 4.40 $ 43 Granted 761 2.23 Exercised (6 ) 0.93 Forfeited (143 ) 3.45 Expired (487 ) 7.66 Balance, December 31, 2015 2,966 $ 3.89 4.35 $ 442 Options exercisable at December 31, 2015 1,860 $ 4.66 3.52 $ 41 Options vested as of December 31, 2015 and expected to vest after December 31, 2015 2,881 $ 3.93 4.30 $ 406 |
Schedule of Nonvested Share Activity | The following table summarizes non-vested stock activity for 2015 : Restricted Stock Units Performance Stock Units Restricted Shares Weighted Average Fair Value Restricted Shares Weighted Average Fair Value Balance, December 31, 2014 128 $ 3.78 240 $ 3.55 Granted 212 2.21 1,625 2.41 Vested (166 ) 3.08 (113 ) 3.55 Forfeited (23 ) 2.79 (127 ) 3.55 Balance, December 31, 2015 151 $ 2.51 1,625 $ 2.41 |
Schedule of Share-based Compensation, Employee Stock Purchase Plan, Activity | The following table summarizes shares issued under the ESPP (in thousands, except per share amounts): Year Ended December 31, 2015 2014 2013 Shares issued pursuant to the ESPP 175 242 381 Cash received for the purchase of shares pursuant to the ESPP $ 322 $ 514 $ 767 Weighted average purchase price per share $ 1.84 $ 2.12 $ 2.01 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The fair value calculations for stock options and ESPP shares used the following assumptions for the years ended December 31: Stock Options ESPP shares 2015 2014 2013 2015 2014 2013 Share price $2.06-2.80 $2.50-3.49 $2.98-4.89 $2.15-2.70 $2.15-3.00 $2.55-4.70 Expected life (in years) 4.39-4.41 4.40-4.47 4.43-4.50 1.5 1.5 1.5 Interest rate 1.3-1.6% 1.3-1.5% 0.7-1.3% 0.1-0.7% 0.1-0.5% 0.1-0.3% Volatility 53.5-54.6% 51.4-52.5% 51.4-71.1% 42.6-55.6% 46.9-55.9% 47.3-55.6% Dividend yield — — — — — — |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs | For the years ended December 31, 2015 , 2014 and 2013 , stock-based compensation was recognized and allocated in the Consolidated Statements of Operations as follows (in thousands): 2015 2014 2013 Cost of sales $ 294 $ 386 $ 550 Research and development 867 818 1,170 Selling, general and administrative 2,791 2,893 3,578 Total stock-based compensation expense $ 3,952 $ 4,097 $ 5,298 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | for the years ended December 31, 2015, 2014 and 2013 (in thousands): For the Years Ended December 31, 2015 2014 2013 Revenue Software-Systems $ 55,006 $ 40,281 $ 44,934 Embedded Products and Hardware Services 129,587 152,461 192,929 Total revenues $ 184,593 $ 192,742 $ 237,863 For the Years Ended December 31, 2015 2014 2013 Gross margin Software-Systems $ 31,997 $ 24,949 $ 25,860 Embedded Products and Hardware Services 28,311 35,449 47,603 Corporate and other (8,156 ) (8,596 ) (9,325 ) Total gross margin $ 52,152 $ 51,802 $ 64,138 For the Years Ended December 31, 2015 2014 2013 Loss from operations Software-Systems $ (1,900 ) $ (6,169 ) $ (7,974 ) Embedded Products and Hardware Services 9,709 2,457 (25 ) Corporate and other (21,874 ) (21,588 ) (26,767 ) Total loss from operations $ (14,065 ) $ (25,300 ) $ (34,766 ) |
Revenue from External Customers by Products and Services | |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas | For the Years Ended December 31, 2015 2014 Property and equipment, net United States $ 3,061 $ 4,558 Other North America 257 672 China 1,231 2,427 Other APAC — 11 Total APAC 1,231 2,438 India 1,584 2,115 Other EMEA 1 3 Total EMEA 1,585 2,118 Foreign Countries 3,073 5,228 Total property and equipment, net $ 6,134 $ 9,786 Intangible assets, net United States $ 30,322 $ 43,224 Total intangible assets, net $ 30,322 $ 43,224 For the Years Ended December 31, 2015 2014 2013 United States $ 81,933 $ 74,630 $ 100,780 Other North America 631 2,079 3,042 China 28,819 31,975 29,818 Japan 13,574 14,848 30,724 Other APAC 28,262 26,329 20,988 Total APAC 70,655 73,152 81,530 Netherlands 14,642 22,608 19,017 Other EMEA 16,732 20,273 33,494 Total EMEA 31,374 42,881 52,511 Foreign Countries 102,660 118,112 137,083 Total revenues $ 184,593 $ 192,742 $ 237,863 |
Schedule of Revenue by Major Customers by Reporting Segments | 2015 2014 2013 Nokia Solutions and Networks 16.0% 17.0% 18.7% Philips Healthcare 10.0% 14.9% NA |
Schedules of Concentration of Risk, by Risk Factor | 2015 2014 Tier-one U.S. carrier 36.0% NA Reliance Jio Infocomm 14.7% NA Nokia Solutions and Networks NA 18.5% Philips Healthcare NA 13.9% |
Significant Accounting Polici42
Significant Accounting Policies Distributor Revenue (Details) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Accounting Policies [Abstract] | |||
Distributor Revenue | 15.10% | 16.30% | 14.30% |
Significant Accounting Polici43
Significant Accounting Policies Advertising Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Accounting Policies [Abstract] | |||
Advertising Expense | $ 0.9 | $ 1.1 | $ 2 |
Significant Accounting Polici44
Significant Accounting Policies Property, Plant and Equipment (Details) | 12 Months Ended |
Dec. 31, 2015 | |
Machinery, Equipment, Furniture and Fixtures [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Software, Computer Hardware and Manufacturing Test [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 3 years |
Engineering Demonstration Products and Samples [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 1 year |
Fair Value of Financial Instr45
Fair Value of Financial Instruments Fair Value Measurements (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impairment Assessment, Amount that Undiscounted Future Cash Flows Exceed Book Value | $ 5,000 | |
Impairment Assessment, Percentage that Undiscounted Future Cash Flows Exceed Book Value | 28.00% | |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency forward contracts | $ 0 | $ 0 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency forward contracts | (277) | (83) |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency forward contracts | $ 0 | 0 |
Continuous Computing [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Business Combination, Contingent Consideration Arrangements, Measurement Period After Close Date1 | 36 months | |
Estimate of Fair Value Measurement [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency forward contracts | $ (277) | $ (83) |
Fair Value of Financial Instr46
Fair Value of Financial Instruments Level 3 (Details) - Fair Value, Measurements, Recurring [Member] - Fair Value, Inputs, Level 3 [Member] $ in Thousands | 12 Months Ended |
Dec. 31, 2014USD ($) | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Beginning Balance | $ 390 |
Additions | 0 |
Payments | (273) |
Ending Balance | 0 |
Re-Measurement of Liability [Member] | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Change in liability | (156) |
Accretion of Liability [Member] | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Change in liability | $ 39 |
Accounts Receivable and Other47
Accounts Receivable and Other Receivables (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Accounts Receivable, Gross | $ 61,045 | $ 43,969 | |
Less: allowance for doubtful accounts | (103) | (124) | |
Accounts Receivable, Net | 60,942 | 43,845 | |
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Allowance for doubtful accounts, beginning of the year | 124 | 348 | $ 779 |
Charged to costs and expenses | (17) | (75) | (310) |
Less: write-offs, net of recoveries | (4) | (149) | (121) |
Remaining allowance, end of the year | 103 | 124 | $ 348 |
Other receivables | $ 11,304 | $ 6,324 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |||||
Sep. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Inventory, Net [Abstract] | |||||||
Raw materials | $ 14,546 | $ 9,219 | |||||
Work-in-process | 98 | 1,195 | |||||
Finished goods | 7,485 | 10,762 | |||||
Inventory, Gross | 22,129 | 21,176 | |||||
Less: inventory valuation allowance | $ (2,701) | $ (2,701) | $ (7,037) | $ (7,037) | (5,317) | (2,701) | |
Inventories, net | 16,812 | 18,475 | |||||
Other Inventory, Materials, Supplies and Merchandise under Consignment, Gross | 11,500 | 2,600 | |||||
Age of consignment inventory purchased by contract manufacturer | 365 days | ||||||
Age of consignment inventory purchased as a result of forecasted demand | 180 days | ||||||
Consignment Inventory with Contract Manufacturer | 8,700 | 100 | |||||
Inventory, net | $ 1,476 | 2,412 | 3,302 | ||||
Inventory deposit, net | (29) | 126 | 945 | ||||
Adverse purchase commitments | 1,831 | 323 | 327 | ||||
Inventory Valuation Allowance [Roll Forward] | |||||||
Inventory valuation allowance, beginning of the year | $ 2,701 | 2,701 | 7,037 | ||||
Inventory scrapped | (151) | (5,768) | |||||
Inventory utilized | (856) | (1,005) | |||||
Subtotal—usage | 1,007 | 6,773 | |||||
Inventory, net | 1,447 | 2,539 | 3,302 | ||||
Transfer from inventory deposit valuation allowance | 0 | 33 | |||||
Inventory valuation allowance, end of the year | 5,317 | 2,701 | $ 7,037 | ||||
Deferred cost of sales | $ 14,113 | $ 176 | |||||
Write-Downs of Inventory Valuation [Member] | |||||||
Inventory Valuation Allowance [Roll Forward] | |||||||
Inventory, net | 2,332 | 3,417 | |||||
Transfers to Adverse Purchase Commitments [Member] | |||||||
Inventory Valuation Allowance [Roll Forward] | |||||||
Inventory, net | [1] | $ 1,291 | $ (1,013) | ||||
[1] | Transfer from other liabilities is related to obsolete inventory purchased from contract manufacturers during the year which was previously reserved for as an adverse purchase commitment. (Note 9—Other Accrued and Other Long-Term Liabilities and Note 13—Commitments and Contingencies.)Deferred cost of sales are related to deferred revenue on shipments to customers and was $14.1 million and $0.2 million at December 31, 2015 and 2014. |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 51,319 | $ 60,508 | |
Less: accumulated depreciation and amortization | (45,185) | (50,722) | |
Property and equipment, net | 6,134 | 9,786 | |
Depreciation | 5,600 | 7,000 | $ 8,000 |
Machinery and Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 22,049 | 24,643 | |
Office Equipment And Software [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 25,087 | 30,702 | |
Leasehold Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 4,183 | $ 5,163 |
Intangible Assets Finite-Lived
Intangible Assets Finite-Lived Intangible Assets by Major Class (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Gross | $ 171,889,000 | $ 171,889,000 | |
Finite-Lived Intangible Assets, Accumulated Amortization | (141,567,000) | (128,665,000) | |
Total estimated future amortization expense | 30,322,000 | 43,224,000 | |
Amortization of Intangible Assets | $ 12,900,000 | 13,300,000 | $ 13,800,000 |
Minimum [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 1 year | ||
Maximum [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 8 years | ||
Purchased Technology [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Gross | $ 114,754,000 | 114,754,000 | |
Finite-Lived Intangible Assets, Accumulated Amortization | (95,260,000) | (87,398,000) | |
Total estimated future amortization expense | 19,494,000 | 27,356,000 | |
Patents [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Gross | 6,472,000 | 6,472,000 | |
Finite-Lived Intangible Assets, Accumulated Amortization | (6,472,000) | (6,472,000) | |
Total estimated future amortization expense | 0 | 0 | |
Customer Lists [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Gross | 37,000,000 | 37,000,000 | |
Finite-Lived Intangible Assets, Accumulated Amortization | (30,534,000) | (26,284,000) | |
Total estimated future amortization expense | 6,466,000 | 10,716,000 | |
Trade Names [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Gross | 11,536,000 | 11,536,000 | |
Finite-Lived Intangible Assets, Accumulated Amortization | (7,174,000) | (6,384,000) | |
Total estimated future amortization expense | 4,362,000 | 5,152,000 | |
Order or Production Backlog [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Gross | 2,127,000 | 2,127,000 | |
Finite-Lived Intangible Assets, Accumulated Amortization | (2,127,000) | (2,127,000) | |
Total estimated future amortization expense | $ 0 | $ 0 |
Intangible Assets Future Amorti
Intangible Assets Future Amortization of Finite Lived Intangibles (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2,014 | $ 12,747,000 | |
2,015 | 10,713,000 | |
2,016 | 4,870,000 | |
2,017 | 790,000 | |
2,018 | 790,000 | |
Thereafter | 412,000 | |
Total estimated future amortization expense | $ 30,322,000 | $ 43,224,000 |
Accrued Restructuring (Details)
Accrued Restructuring (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Restructuring and Related Activities [Abstract] | |||
Employee-related restructuring expenses | $ 3,890 | $ 1,468 | $ 5,463 |
Facility reductions | 392 | 0 | 602 |
Integration-related and other non-recurring expenses | 629 | 2,097 | 1,039 |
Non-recurring legal expenses | 109 | 796 | 779 |
Fair value adjustments to contingent consideration liability | 0 | 156 | (1,740) |
Write off of purchased computer software | 0 | 0 | 2,868 |
Net gain from sale of OS-9 software assets | 0 | 0 | (1,532) |
Restructuring and other charges, net | $ 5,020 | $ 4,205 | $ 7,479 |
Accrued Restructuring Restructu
Accrued Restructuring Restructuring Reserve Rollforward (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Restructuring Reserve [Roll Forward] | |
Balance accrued as of December 31, 2014 | $ 753 |
Additions | 4,828 |
Reversals | (546) |
Expenditures | (4,371) |
Balance accrued as of December 31, 2015 | 664 |
Other Noncurrent Liabilities [Member] | |
Restructuring Reserve [Roll Forward] | |
Balance accrued as of December 31, 2014 | 400 |
Balance accrued as of December 31, 2015 | 100 |
Severance, Payroll Taxes and Other Employee Benefits [Member] | |
Restructuring Reserve [Roll Forward] | |
Balance accrued as of December 31, 2014 | 166 |
Additions | 4,436 |
Reversals | (546) |
Expenditures | (3,974) |
Balance accrued as of December 31, 2015 | 82 |
Lease Abandonment Charges [Member] | |
Restructuring Reserve [Roll Forward] | |
Balance accrued as of December 31, 2014 | 587 |
Additions | 392 |
Reversals | 0 |
Expenditures | (397) |
Balance accrued as of December 31, 2015 | $ 582 |
Other Accrued and Other Long-54
Other Accrued and Other Long-Term Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Other Accrued and Other Long-Term Liabilities [Abstract] | ||
Accrued warranty reserve | $ 2,036 | $ 2,018 |
Adverse purchase commitments | 2,176 | 1,733 |
Accrued restructuring | 575 | 332 |
Income tax payable, net | 279 | 429 |
Other | 4,338 | 2,743 |
Other accrued liabilities | 9,404 | 7,255 |
Accrued restructuring | 89 | 421 |
Accrued warranty reserve | 517 | 582 |
Long-term income tax payable | 2,224 | 1,699 |
Other | 155 | 98 |
Other long-term liabilities | $ 2,985 | $ 2,800 |
Short-Term Borrowings (Details)
Short-Term Borrowings (Details) - USD ($) | Feb. 08, 2016 | Feb. 29, 2016 | Dec. 31, 2015 | Apr. 23, 2015 | Dec. 31, 2014 | May. 30, 2014 | May. 29, 2014 | Mar. 14, 2014 |
Line of Credit Facility [Line Items] | ||||||||
Line of credit | $ 15,000,000 | $ 10,000,000 | ||||||
Maximum [Member] | Subsequent Event [Member] | Trade Accounts Receivable [Member] | Geographic Distribution, Foreign [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Line of Credit Facility, Borrowing Formula, Eligible Accounts Receivable | 80.00% | |||||||
Line of Credit [Member] | 2014 Debt Agreement [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Line of Credit Facility, Current Borrowing Capacity | $ 25,000,000 | |||||||
Line of Credit Facility, Covenant Compliance, Minimum Required Balance | $ 4,000,000 | |||||||
Line of Credit Facility, Covenant Compliance, Minimum Cash Required, Percent | 50.00% | |||||||
Line of credit | $ 15,000,000 | $ 10,000,000 | ||||||
Line of Credit Facility, Remaining Borrowing Capacity | 8,300,000 | |||||||
Line of Credit [Member] | 2014 Debt Agreement [Member] | Pro Forma [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Line of Credit Facility, Remaining Borrowing Capacity | $ 18,300,000 | |||||||
Line of Credit [Member] | 2014 Debt Agreement [Member] | Subsequent Event [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Line of Credit Facility, Current Borrowing Capacity | $ 35,000,000 | |||||||
Line of Credit, Liquidity Threshold | 15,000,000 | |||||||
Line of Credit, Liquidity Threshold, Last Month of Quarter | 20,000,000 | |||||||
Line of Credit, Modification Fee | 35,000 | |||||||
Line of Credit, Facility Fee | 52,500 | |||||||
Payment for Facility Fee | $ 48,000 | |||||||
Debt Instrument, Average Monthly Interest Expense | $ 10,000,000 | |||||||
Line of Credit Facility, Cancellation Fee Percentage | 1.50% | |||||||
Line of Credit Facility, Covenant Terms, Adjusted Earnings before Interest, Taxes, Depreciation and Amortization, Debt Outstanding Balance Threshold | $ 15,000,000 | |||||||
Line of Credit Facility, Covenant Terms, Maximum Restructuring Expense Allowed in First Quarter | 1,700,000 | |||||||
Line of Credit Facility, Covenant Terms, Maximum Restructuring Expense Allowed in Second Quarter | 1,140,000 | |||||||
Line of Credit Facility, Covenant Terms, Maximum Restructuring Expense Allowed in Third Quarter | 1,000,000 | |||||||
Line of Credit Facility, Covenant Terms, Maximum Restructuring Expense Allowed after Third Quarter | $ 0 | |||||||
Line of Credit [Member] | 2014 Debt Agreement [Member] | Subsequent Event [Member] | Trade Accounts Receivable [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Line of Credit Facility, Borrowing Formula, Eligible Accounts Receivable past due | 60 days | |||||||
Line of Credit [Member] | 2014 Debt Agreement [Member] | Subsequent Event [Member] | Trade Accounts Receivable [Member] | Geographic Distribution, Domestic [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Line of Credit Facility, Borrowing Formula, Eligible Accounts Receivable | 80.00% | |||||||
Line of Credit [Member] | 2014 Debt Agreement [Member] | Minimum [Member] | Subsequent Event [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Line of Credit Facility, Debt Covenant, Liquidity | $ 10,000,000 | |||||||
Line of Credit Facility, Covenant Terms, Adjusted Earnings before Interest, Taxes, Depreciation and Amortization over Debt Outstanding Balance Threshold | 10,000,000 | |||||||
Line of Credit Facility, Covenant Terms, Adjusted Earnings before Interest, Taxes, Depreciation and Amortization under Debt Outstanding Balance Threshold | $ 7,500,000 | |||||||
Line of Credit [Member] | 2014 Debt Agreement [Member] | Minimum [Member] | Subsequent Event [Member] | Trade Accounts Receivable [Member] | Geographic Distribution, Foreign [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Line of Credit Facility, Borrowing Formula, Eligible Accounts Receivable | 75.00% | |||||||
Line of Credit [Member] | 2014 Debt Agreement [Member] | Prime Rate [Member] | Minimum [Member] | Subsequent Event [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 0.75% | |||||||
Line of Credit [Member] | 2014 Debt Agreement [Member] | Prime Rate [Member] | Maximum [Member] | Subsequent Event [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.25% | |||||||
Line of Credit [Member] | 2014 Debt Agreement [Member] | Letter of Credit [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Line of Credit Facility, Current Borrowing Capacity | $ 5,000,000 | $ 2,000,000 | $ 1,000,000 | |||||
Line of Credit [Member] | 2014 Debt Agreement [Member] | Letter of Credit [Member] | Subsequent Event [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Line of Credit Facility, Current Borrowing Capacity | $ 5,000,000 |
Convertible Debt (Details)
Convertible Debt (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Feb. 15, 2013 | |
Debt Instrument [Line Items] | ||||
Convertible senior notes, current | $ 0 | $ 18,000 | ||
2013 Convertible Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Convertible senior notes, current | $ 16,900 | |||
2015 Convertible Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Convertible senior notes, current | 18,000 | |||
Convertible Senior Notes [Member] | 2013 Convertible Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 2.75% | |||
Contractually stated interest costs | 101 | 810 | ||
Amortization of interest costs | $ 7 | $ 43 | ||
Convertible Senior Notes [Member] | 2015 Convertible Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Effective Percentage | 4.50% | 4.50% | 4.50% |
Hedging (Details)
Hedging (Details) $ in Thousands, Derivatives in Millions | 12 Months Ended | ||
Dec. 31, 2015USD ($)Derivatives | Dec. 31, 2014USD ($)Derivatives | Dec. 31, 2013USD ($) | |
Derivatives, Fair Value [Line Items] | |||
Cash Flow Hedge Gain (Loss) Reclassified to Cost of Sales, Net | $ 187 | $ 178 | $ 498 |
Cash Flow Hedge Gain (Loss) Reclassified To Research and Development | 305 | 295 | 544 |
Cash Flow Hedge Gain (Loss) Reclassified To Selling, General and Administrative | 135 | 154 | 158 |
Beginning balance of unrealized loss on forward exchange contracts | (752) | (875) | (765) |
Other comprehensive loss before reclassifications | (694) | (504) | (1,310) |
Amounts reclassified from other comprehensive income | 627 | 627 | 1,200 |
Other comprehensive income (loss) | (67) | 123 | (110) |
Ending balance of unrealized loss on forward exchange contracts | (819) | (752) | (875) |
Foreign Currency Cash Flow Hedge Gain (Loss) Reclassified to Earnings, Net | 627 | 627 | $ 1,200 |
Foreign Exchange Forward [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount of Foreign Currency Cash Flow Hedge Derivatives | 14,024 | 14,193 | |
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | 700 | ||
Foreign Exchange Forward [Member] | Other Current Assets [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Cash Flow Hedge Derivative Instrument Assets at Fair Value | $ 0 | 0 | |
Foreign Exchange Forward [Member] | Other Accrued Liabilities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Cash Flow Hedge Derivative Instrument Liabilities at Fair Value | $ (83) | ||
Cash Flow Hedging [Member] | Foreign Exchange Forward [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative, Number of New Instruments During Period | Derivatives | 0 | 0 | |
Derivative, New Instruments During Period, Notional Amount | $ 12,400 | $ 11,600 | |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Foreign Exchange Forward [Member] | Other Accrued Liabilities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Cash Flow Hedge Derivative Instrument Liabilities at Fair Value | $ (277) |
Commitments and Contingencies O
Commitments and Contingencies Operating Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Capital Leases, Future Minimum Payments Due, Next Twelve Months | $ 2,363 | ||
2,015 | 1,487 | ||
Operating Leases, Future Minimum Payments, Due in Three Years | 769 | ||
2,017 | 523 | ||
2,018 | 228 | ||
2019 and thereafter (through 2020) | 0 | ||
Total future minimum lease commitments | 5,370 | ||
Operating Leases, Rent Expense, Net | $ 2,700 | $ 3,600 | $ 4,200 |
Commitments and Contingencies -
Commitments and Contingencies - Adverse Purchase Commitments and Accrued Warranty (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Class of Warrant or Right [Line Items] | ||
Purchase Commitment, Remaining Minimum Amount Committed | $ 2,200 | $ 1,700 |
Semi-annual Performance Period, Maximum Multiplier of Original Grant | 2.75 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Warranty liability balance, beginning of the year | $ 2,600 | 3,328 |
Product warranty accruals | 2,025 | 2,665 |
Adjustments for payments made | (2,072) | (3,393) |
Warranty liability balance, end of the year | 2,553 | 2,600 |
Accrued warranty reserve | 2,036 | 2,018 |
Accrued warranty reserve | $ 517 | $ 582 |
Minimum [Member] | ||
Class of Warrant or Right [Line Items] | ||
Warranty, Term | 12 months | |
Maximum [Member] | ||
Class of Warrant or Right [Line Items] | ||
Warranty, Term | 24 months |
Basic and Diluted Net IncomeP60
Basic and Diluted Net IncomePer Share Earnings (Loss) Per Share Calculation (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||||||||||||||||
Net income (loss) | $ (1,440) | $ (2,066) | [1] | $ (4,119) | [1] | $ (7,053) | [1] | $ (4,467) | $ (4,469) | [1] | $ (8,211) | [1] | $ (10,434) | [1] | $ (14,678) | $ (27,581) | $ (49,404) |
Weighted average shares used to calculate net loss per share, basic | 36,789 | 34,699 | 28,805 | ||||||||||||||
Effect of convertible notes (in shares) | 0 | 0 | 0 | ||||||||||||||
Weighted average shares used to calculate net income (loss) per share, diluted | 36,789 | 34,699 | 28,805 | ||||||||||||||
Basic (in dollars per share) | $ (0.04) | $ (0.06) | $ (0.11) | $ (0.19) | $ (0.12) | $ (0.12) | $ (0.23) | $ (0.35) | $ (0.40) | $ (0.79) | $ (1.72) | ||||||
Diluted (in dollars per share) | $ (0.04) | $ (0.06) | $ (0.11) | $ (0.19) | $ (0.12) | $ (0.12) | $ (0.23) | $ (0.35) | $ (0.40) | $ (0.79) | $ (1.72) | ||||||
Restricted Stock Units (RSUs) [Member] | |||||||||||||||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||||||||||||||||
Effect of dilutive equity awards (in shares) | 0 | 0 | 0 | ||||||||||||||
Employee Stock Option [Member] | |||||||||||||||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||||||||||||||||
Effect of dilutive equity awards (in shares) | 0 | 0 | 0 | ||||||||||||||
[1] | For the Year Ended December 31, 2015 For the Year Ended December 31, 2014 FirstQuarter SecondQuarter ThirdQuarter FourthQuarter FirstQuarter SecondQuarter ThirdQuarter FourthQuarter (In thousands, except per share data)Revenues$48,687 $47,049 $44,780 $44,077 $43,799 $49,964 $50,805 $48,174Gross margin12,626 12,601 13,007 13,918 11,148 12,007 14,697 13,950Loss from operations(6,993) (3,533) (2,016) (1,523) (9,464) (7,429) (4,103) (4,304)Net loss(7,053) (4,119) (2,066) (1,440) (10,434) (8,211) (4,469) (4,467)Loss per share: Basic$(0.19) $(0.11) $(0.06) $(0.04) $(0.35) $(0.23) $(0.12) $(0.12)Diluted$(0.19) $(0.11) $(0.06) $(0.04) $(0.35) $(0.23) $(0.12) $(0.12) |
Basic and Diluted Net IncomeP61
Basic and Diluted Net IncomePer Share Anti-Dilutive Securities (Details) | 12 Months Ended | ||
Dec. 31, 2015shares | Dec. 31, 2014shares | Dec. 31, 2013shares | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Semi-annual Performance Period, Maximum Multiplier of Original Grant | 2.75 | ||
Entire Performance, Overall Achievement, Maximum Multiplier of Target Award | 2.5 | ||
Convertible Debt Securities [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities | 0 | 2,110,000 | |
Stock Compensation Plan [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities | 4,742,000 | 3,209,000 | 3,993,000 |
Employee Stock Option [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities | 2,966,000 | 2,841,000 | 3,465,000 |
Restricted Stock Units (RSUs) [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities | 151,000 | 128,000 | 335,000 |
Performance Shares [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities | 1,625,000 | 240,000 | 193,000 |
Long-term Incentive Plan [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 600,000 | 500,000 |
Income Taxes Current Provision
Income Taxes Current Provision (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Current Federal Tax Expense (Benefit) | $ 0 | $ 0 | $ 0 |
Current State and Local Tax Expense (Benefit) | 30 | 21 | (70) |
Current Foreign Tax Expense (Benefit) | 1,772 | 2,127 | 2,299 |
Current Income Tax Expense (Benefit) | 1,802 | 2,148 | 2,229 |
Deferred Federal Income Tax Expense (Benefit) | 35 | (73) | 0 |
Deferred State and Local Income Tax Expense (Benefit) | 2 | (3) | 0 |
Deferred Foreign Income Tax Expense (Benefit) | (97) | 420 | 12,726 |
Deferred Income Tax Expense (Benefit) | (60) | 344 | 12,726 |
Total income tax provision | $ 1,742 | $ 2,492 | $ 14,955 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Statutory Federal Tax Rates and Effective Tax Rates (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||
Statutory federal tax (benefit) rate | $ (4,526) | $ (8,781) | $ (12,057) |
State taxes | 609 | (246) | (356) |
Foreign dividends and unremitted earnings | 1,493 | (586) | 1,938 |
Valuation allowance | 2,456 | 7,367 | 26,662 |
Taxes on foreign income that differ from U.S. tax rate | (405) | 2,488 | (2,314) |
Tax credits | 433 | 0 | (252) |
Non-deductible stock-based compensation expense | 1,104 | 1,206 | 1,596 |
Earnout liability fair value adjustment | (2) | (43) | (596) |
Uncertain tax positions | 435 | 362 | 530 |
Other | 145 | 725 | (196) |
Total income tax provision | $ 1,742 | $ 2,492 | $ 14,955 |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||
Statutory federal tax (benefit) rate | 35.00% | 35.00% | 35.00% |
State taxes | (4.70%) | 1.00% | 1.00% |
Foreign dividends and unremitted earnings | (11.50%) | 2.30% | (5.60%) |
Valuation allowance | (18.60%) | (29.40%) | (77.40%) |
Taxes on foreign income that differ from U.S. tax rate | 3.10% | (9.90%) | 6.70% |
Tax credits | (3.30%) | (0.00%) | 0.70% |
Non-deductible stock-based compensation expense | (8.50%) | (4.80%) | (4.60%) |
Earnout liability fair value adjustment | 0.00% | 0.20% | 1.70% |
Uncertain tax positions | (3.40%) | (1.40%) | (1.50%) |
Other | (1.60%) | (2.90%) | 0.60% |
Effective tax rate | (13.50%) | (9.90%) | (43.40%) |
Income Taxes Deferred Tax Recon
Income Taxes Deferred Tax Reconciliation (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred Tax Reconciliation [Abstract] | ||
Deferred Tax Assets, Tax Credit Carryforwards, Research | $ 16,200 | |
Deferred Tax Liabilities, Undistributed Foreign Earnings | 1,300 | |
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Warranty Reserves | 919 | $ 937 |
Deferred Tax Assets, Inventory | 2,697 | 1,731 |
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Restructuring Charges | 5 | 58 |
Deferred Tax Assets, Operating Loss Carryforwards | 59,784 | 61,521 |
Deferred Tax Assets, Tax Credit Carryforwards | 22,817 | 23,866 |
Deferred Tax Assets, Tax Deferred Expense, Compensation and Benefits, Share-based Compensation Cost | 2,142 | 2,042 |
Deferred Tax Assets, Property, Plant and Equipment | 952 | 950 |
Deferred Tax Assets, Goodwill and Intangible Assets | 2,109 | 2,516 |
Deferred Tax Assets, Other | 5,693 | 4,056 |
Deferred Tax Assets, Gross | 97,118 | 97,677 |
Deferred Tax Assets, Valuation Allowance | (86,752) | (84,240) |
Deferred Tax Assets, Net of Valuation Allowance | 10,366 | 13,437 |
Deferred Tax Liabilities, Intangible Assets | (7,582) | (11,764) |
Deferred Tax Liabilities, Other | (1,611) | (593) |
Deferred Tax Liabilities, Net | (9,193) | (12,357) |
Deferred Tax Assets, Net | 1,173 | $ 1,080 |
Undistributed Earnings of Foreign Subsidiaries | $ 3,800 |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | ||
Unrecognized Tax Benefits | $ 3,688 | $ 3,446 |
Additions based on tax positions related to the current year | 329 | 357 |
Additions for tax positions of prior years | 67 | 76 |
Reductions for tax positions of prior years | (204) | (98) |
Reductions as a result of a lapse of applicable statute of limitations | (70) | (95) |
Reductions due to settlements | (28) | |
Other | 102 | (2) |
Unrecognized Tax Benefits | $ 3,680 | $ 3,688 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | [1] | Jun. 30, 2015 | [1] | Mar. 31, 2015 | [1] | Dec. 31, 2014 | Sep. 30, 2014 | [1] | Jun. 30, 2014 | [1] | Mar. 31, 2014 | [1] | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Operating Loss Carryforwards [Line Items] | |||||||||||||||||
Unrecognized Tax Benefits | $ 3,680 | $ 3,688 | $ 3,680 | $ 3,688 | $ 3,446 | ||||||||||||
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 3,300 | 3,300 | |||||||||||||||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense | 100 | ||||||||||||||||
Uncertain Tax Benefits, Potential Change, Current | 400 | ||||||||||||||||
Deferred Tax Assets, Valuation Allowance | 86,752 | 84,240 | 86,752 | 84,240 | |||||||||||||
Deferred Tax Assets, Tax Credit Carryforwards, Research | 16,200 | 16,200 | |||||||||||||||
Investment Tax Credit | 4,600 | ||||||||||||||||
Deferred Tax Liabilities, Undistributed Foreign Earnings | 1,300 | 1,300 | |||||||||||||||
Undistributed Earnings of Foreign Subsidiaries | 3,800 | 3,800 | |||||||||||||||
Indefinite Reinvestment of Undistributed Earnings from Foreign Subsidiaries | 10,900 | ||||||||||||||||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest | (1,523) | $ (2,016) | $ (3,533) | $ (6,993) | (4,304) | $ (4,103) | $ (7,429) | $ (9,464) | (12,936) | (25,089) | (34,449) | ||||||
Internal Revenue Service (IRS) [Member] | |||||||||||||||||
Operating Loss Carryforwards [Line Items] | |||||||||||||||||
Operating Loss Carryforwards | 167,100 | $ 79,700 | 167,100 | 79,700 | |||||||||||||
Foreign Tax Authority [Member] | |||||||||||||||||
Operating Loss Carryforwards [Line Items] | |||||||||||||||||
Operating Loss Carryforwards | 5,700 | $ 5,700 | |||||||||||||||
Maximum [Member] | |||||||||||||||||
Operating Loss Carryforwards [Line Items] | |||||||||||||||||
Operating Loss Carryforwards, Expiration Year | 2,034 | ||||||||||||||||
CANADA | |||||||||||||||||
Operating Loss Carryforwards [Line Items] | |||||||||||||||||
Deferred Tax Assets, Tax Credit Carryforwards, Research | 16,000 | $ 16,000 | |||||||||||||||
Domestic [Member] | |||||||||||||||||
Operating Loss Carryforwards [Line Items] | |||||||||||||||||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest | 15,800 | 29,900 | 47,200 | ||||||||||||||
Foreign Countries [Member] | |||||||||||||||||
Operating Loss Carryforwards [Line Items] | |||||||||||||||||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest | 2,900 | $ 4,800 | $ 12,800 | ||||||||||||||
Interest Expense [Member] | |||||||||||||||||
Operating Loss Carryforwards [Line Items] | |||||||||||||||||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | 600 | 600 | |||||||||||||||
Penalty [Domain] | |||||||||||||||||
Operating Loss Carryforwards [Line Items] | |||||||||||||||||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | $ 300 | $ 300 | |||||||||||||||
[1] | For the Year Ended December 31, 2015 For the Year Ended December 31, 2014 FirstQuarter SecondQuarter ThirdQuarter FourthQuarter FirstQuarter SecondQuarter ThirdQuarter FourthQuarter (In thousands, except per share data)Revenues$48,687 $47,049 $44,780 $44,077 $43,799 $49,964 $50,805 $48,174Gross margin12,626 12,601 13,007 13,918 11,148 12,007 14,697 13,950Loss from operations(6,993) (3,533) (2,016) (1,523) (9,464) (7,429) (4,103) (4,304)Net loss(7,053) (4,119) (2,066) (1,440) (10,434) (8,211) (4,469) (4,467)Loss per share: Basic$(0.19) $(0.11) $(0.06) $(0.04) $(0.35) $(0.23) $(0.12) $(0.12)Diluted$(0.19) $(0.11) $(0.06) $(0.04) $(0.35) $(0.23) $(0.12) $(0.12) |
Employee Benefit Plans - Narrat
Employee Benefit Plans - Narrative (Details) $ / shares in Units, $ in Millions | Mar. 02, 2015$ / sharesshares | Sep. 10, 2012shares | Sep. 04, 2012shares | Dec. 31, 2014$ / sharesshares | Dec. 31, 2015USD ($)$ / sharesshares | Dec. 31, 2014USD ($)$ / sharesshares | Dec. 31, 2013USD ($) |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Common Stock, Shares Authorized | 100,000,000 | 100,000,000 | 100,000,000 | ||||
Common Stock, Shares, Issued | 28,471,000 | 29,198,000 | 28,471,000 | ||||
Shares issued pursuant to benefit plans, shares | 319,000 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures | 761,000 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Plan Remaining Shares Available for Future Grants | 2,554,935 | ||||||
Share Price | $ / shares | $ 2.77 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Total Intrinsic Value | $ | $ 0.1 | $ 0.1 | $ 0.2 | ||||
Proceeds from Stock Options Exercised | $ | 0.1 | ||||||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized | $ | 0.8 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |||||||
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures | $ | $ 0.5 | 1.1 | 1.4 | ||||
Employee Stock Purchase Plan, Discount Rate | 11.00% | ||||||
Defined Contribution Plan, Maximum Annual Contribution Per Employee, Percent | 30.00% | ||||||
Defined Contribution Plan, Employer Matching Contribution, Percent | 6.00% | ||||||
Defined Contribution Plan, Employers Matching Contribution, Annual Vesting Percentage | 33.00% | ||||||
Defined Contribution Plan, Cost Recognized | $ | $ 0.7 | $ 0.8 | $ 0.7 | ||||
Deferred Compensation Plan, Vesting Percentage | 0.00% | ||||||
Maximum [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |||||||
Defined Contribution Plan, Employer Matching Contribution, Percent | 50.00% | ||||||
Defined Contribution Plan, Employers Matching Contribution, Annual Vesting Percentage | 100.00% | ||||||
Performance Shares [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 1,575,000 | ||||||
Share Price | $ / shares | $ 2.38 | ||||||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition | 6 months | ||||||
Stock Granted, Value, Share-based Compensation, Gross | $ | $ 2.9 | ||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | $ | $ 0.6 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |||||||
Interest rate | 1.32% | ||||||
Volatility | 55.00% | ||||||
Employee Stock Option [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition | 2 years | ||||||
Restricted Stock [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition | 1 year 6 months | ||||||
LTIP and Overlay Awards [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 240 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 1,625 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | (113) | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | (127) | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 240 | 1,625 | 240 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ / shares | $ 3.55 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares | 2.41 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $ / shares | 3.55 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period, Weighted Average Exercise Price | $ / shares | 3.55 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ / shares | $ 3.55 | $ 2.41 | $ 3.55 | ||||
Restricted Stock [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized | $ | $ 0.2 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 128,000 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 212,000 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | (166,000) | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | (23,000) | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 128,000 | 151,000 | 128,000 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ / shares | $ 3.78 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares | 2.21 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $ / shares | 3.08 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period, Weighted Average Exercise Price | $ / shares | 2.79 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ / shares | $ 3.78 | $ 2.51 | $ 3.78 | ||||
2007 Stock Plan [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 9,050,000 | ||||||
2007 Stock Plan [Member] | Restricted Stock [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures | 291,375 | ||||||
LTIP [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Common Stock, Shares Authorized | 2,000,000 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Plan Maximum Shares | 1,999,938 | ||||||
LTIP [Member] | Maximum [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Common Stock, Shares Authorized | 500,000 | ||||||
LTIP [Member] | Restricted Stock [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures | 799,975 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Percent Attainment of Performance Goals Required | 100.00% | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Semi-Annual Performance Period Multiplier, Maximum | 2.75 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Performance Multiplier Maximum | 2.5 | ||||||
CCPU Inducement Plan [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Common Stock, Shares Authorized | 600,000 | ||||||
Common Stock, Shares, Issued | 368,000 | ||||||
Employee Stock Option [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 6,700,000 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 410,646 | ||||||
Employee Stock Option [Member] | Maximum [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |||||||
Interest rate | 1.60% | 1.50% | 1.30% | ||||
Volatility | 55.00% | 52.00% | 71.00% | ||||
$3.45 Average Closing Stock Price [Member] | Two Thousand and Seven Stock Plan [Member] | Performance Shares [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Percent | 50.00% | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Duration of Trading Period Stock Price Must be Maintained | 30 days | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Required Average Closing Stock Price Per Share | $ / shares | $ 3.45 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Performance Period | 3 years | ||||||
$4.25 Average Closing Stock Price [Member] | Two Thousand and Seven Stock Plan [Member] | Performance Shares [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Percent | 50.00% | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Duration of Trading Period Stock Price Must be Maintained | 30 days | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Required Average Closing Stock Price Per Share | $ / shares | $ 4.25 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Performance Period | 4 years |
Employee Benefit Plans - Stock
Employee Benefit Plans - Stock Options Rollforward (Details) - USD ($) $ / shares in Units, shares in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 2,841 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures | 761 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | (6) | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period | (143) | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Expirations in Period | (487) | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 2,966 | 2,841 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 1,860 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number | 2,881 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $ 4.95 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | 2.23 | |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price | 0.93 | |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Forfeitures in Period, Weighted Average Exercise Price | 3.45 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period, Weighted Average Exercise Price | 7.66 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | 3.89 | $ 4.95 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price | 4.66 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Exercise Price | $ 3.93 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 4 years 4 months 7 days | 4 years 4 months 24 days |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 3 years 6 months 8 days | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Remaining Contractual Term | 4 years 3 months 17 days | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $ 442,000 | $ 43,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | 41 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Aggregate Intrinsic Value | $ 406,000 |
Employee Benefit Plans ESPP (De
Employee Benefit Plans ESPP (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
ESPP [Abstract] | |||
Shares issued pursuant to the ESPP | 175 | 242 | 381 |
Cash received for the purchase of shares pursuant to the ESPP | $ 322 | $ 514 | $ 767 |
Weighted average purchase price per share | $ 1.84 | $ 2.12 | $ 2.01 |
Employee Benefit Plans - Valuat
Employee Benefit Plans - Valuation Disclosures (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Employee Stock Option [Member] | |||
Dividend yield | 0.00% | 0.00% | 0.00% |
Employee Stock [Member] | |||
Expected life (in years) | 1 year 6 months | 1 year 6 months | 1 year 6 months |
Dividend yield | 0.00% | 0.00% | 0.00% |
Maximum [Member] | Employee Stock Option [Member] | |||
Share price | $ 2.80 | $ 3.49 | $ 4.89 |
Expected life (in years) | 4 years 4 months 28 days | 4 years 4 months 24 days | 4 years 6 months |
Interest rate | 1.60% | 1.50% | 1.30% |
Volatility | 55.00% | 52.00% | 71.00% |
Maximum [Member] | Employee Stock [Member] | |||
Share price | $ 2.70 | $ 3 | $ 4.70 |
Interest rate | 0.20% | 0.50% | 0.30% |
Volatility | 56.00% | 56.00% | 56.00% |
Minimum [Member] | Employee Stock Option [Member] | |||
Share price | $ 2.06 | $ 2.50 | $ 2.98 |
Expected life (in years) | 4 years 4 months 21 days | 4 years 4 months 24 days | 4 years 5 months 5 days |
Interest rate | 1.30% | 1.30% | 0.70% |
Volatility | 54.00% | 51.00% | 51.00% |
Minimum [Member] | Employee Stock [Member] | |||
Share price | $ 2.15 | $ 2.15 | $ 2.55 |
Interest rate | 0.10% | 0.10% | 0.10% |
Volatility | 43.00% | 47.00% | 47.00% |
Employee Benefit Plans - Stoc71
Employee Benefit Plans - Stock Based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Stock-based compensation expense | $ 3,952 | $ 4,097 | $ 5,298 |
Cost of Sales [Member] | |||
Stock-based compensation expense | 294 | 386 | 550 |
Research and Development Expense [Member] | |||
Stock-based compensation expense | 867 | 818 | 1,170 |
Selling, General and Administrative Expenses [Member] | |||
Stock-based compensation expense | $ 2,791 | $ 2,893 | $ 3,578 |
Segment Information Operating S
Segment Information Operating Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 44,077 | $ 44,780 | $ 47,049 | $ 48,687 | $ 48,174 | $ 50,805 | $ 49,964 | $ 43,799 | $ 184,593 | $ 192,742 | $ 237,863 |
Gross Profit | $ 13,918 | $ 13,007 | $ 12,601 | $ 12,626 | $ 13,950 | $ 14,697 | $ 12,007 | $ 11,148 | 52,152 | 51,802 | 64,138 |
Operating Income (Loss) | (14,065) | (25,300) | (34,766) | ||||||||
Operating Segments [Member] | Software-Systems [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 55,006 | 40,281 | 44,934 | ||||||||
Gross Profit | 31,997 | 24,949 | 25,860 | ||||||||
Operating Income (Loss) | (1,900) | (6,169) | (7,974) | ||||||||
Operating Segments [Member] | Embedded Products and Hardware Services [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 129,587 | 152,461 | 192,929 | ||||||||
Gross Profit | 28,311 | 35,449 | 47,603 | ||||||||
Operating Income (Loss) | 9,709 | 2,457 | (25) | ||||||||
Corporate, Non-Segment [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Gross Profit | (8,156) | (8,596) | (9,325) | ||||||||
Operating Income (Loss) | $ (21,874) | $ (21,588) | $ (26,767) |
Segment Information Geographica
Segment Information Geographical Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | $ 44,077 | $ 44,780 | $ 47,049 | $ 48,687 | $ 48,174 | $ 50,805 | $ 49,964 | $ 43,799 | $ 184,593 | $ 192,742 | $ 237,863 |
Property and equipment, net | 6,134 | 9,786 | 6,134 | 9,786 | |||||||
Total intangible assets, net | 30,322 | 43,224 | 30,322 | 43,224 | |||||||
United States [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 81,933 | 74,630 | 100,780 | ||||||||
Property and equipment, net | 3,061 | 4,558 | 3,061 | 4,558 | |||||||
Total intangible assets, net | 30,322 | 43,224 | 30,322 | 43,224 | |||||||
Other North America | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 631 | 2,079 | 3,042 | ||||||||
Property and equipment, net | 257 | 672 | 257 | 672 | |||||||
China [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 28,819 | 31,975 | 29,818 | ||||||||
Property and equipment, net | 1,231 | 2,427 | 1,231 | 2,427 | |||||||
Japan [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 13,574 | 14,848 | 30,724 | ||||||||
Other APAC [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 28,262 | 26,329 | 20,988 | ||||||||
Property and equipment, net | 0 | 11 | 0 | 11 | |||||||
Foreign Countries [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 102,660 | 118,112 | 137,083 | ||||||||
Property and equipment, net | 3,073 | 5,228 | 3,073 | 5,228 | |||||||
Asia Pacific [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 70,655 | 73,152 | 81,530 | ||||||||
Property and equipment, net | 1,231 | 2,438 | 1,231 | 2,438 | |||||||
India [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Property and equipment, net | 1,584 | 2,115 | 1,584 | 2,115 | |||||||
Netherlands [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 14,642 | 22,608 | 19,017 | ||||||||
Other EMEA [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 16,732 | 20,273 | 33,494 | ||||||||
Property and equipment, net | 1 | 3 | 1 | 3 | |||||||
Europe, the Middle East and Africa [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 31,374 | 42,881 | $ 52,511 | ||||||||
Property and equipment, net | $ 1,585 | $ 2,118 | $ 1,585 | $ 2,118 |
Segment Information Revenue by
Segment Information Revenue by Major Customer (Details) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Sales Revenue, Net [Member] | Nokia Siemens Networks [Member] | |||
Revenue, Major Customer [Line Items] | |||
Concentration Risk, Percentage | 16.00% | 17.00% | 18.70% |
Sales Revenue, Net [Member] | Philips Healthcare [Member] | |||
Revenue, Major Customer [Line Items] | |||
Concentration Risk, Percentage | 10.00% | 14.90% | |
Accounts Receivable [Member] | Nokia Siemens Networks [Member] | |||
Revenue, Major Customer [Line Items] | |||
Concentration Risk, Percentage | 18.50% | ||
Accounts Receivable [Member] | Tier-one U.S. Carrier (Verizon) [Domain] | |||
Revenue, Major Customer [Line Items] | |||
Concentration Risk, Percentage | 36.00% | ||
Accounts Receivable [Member] | Reliance Jio [Domain] | |||
Revenue, Major Customer [Line Items] | |||
Concentration Risk, Percentage | 14.70% | ||
Accounts Receivable [Member] | Philips Healthcare [Member] | |||
Revenue, Major Customer [Line Items] | |||
Concentration Risk, Percentage | 13.90% |
Segment Information Accounts Re
Segment Information Accounts Receivable (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Nokia Siemens Networks [Member] | Accounts Receivable [Member] | |
Concentration Risk [Line Items] | |
Concentration Risk, Percentage | 18.50% |
Quarterly Financial Data (Detai
Quarterly Financial Data (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||||||
Revenues | $ 44,077 | $ 44,780 | $ 47,049 | $ 48,687 | $ 48,174 | $ 50,805 | $ 49,964 | $ 43,799 | $ 184,593 | $ 192,742 | $ 237,863 | ||||||
Gross Profit | 13,918 | 13,007 | 12,601 | 12,626 | 13,950 | 14,697 | 12,007 | 11,148 | 52,152 | 51,802 | 64,138 | ||||||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest | (1,523) | (2,016) | [1] | (3,533) | [1] | (6,993) | [1] | (4,304) | (4,103) | [1] | (7,429) | [1] | (9,464) | [1] | (12,936) | (25,089) | (34,449) |
Net income (loss) | $ (1,440) | $ (2,066) | [1] | $ (4,119) | [1] | $ (7,053) | [1] | $ (4,467) | $ (4,469) | [1] | $ (8,211) | [1] | $ (10,434) | [1] | $ (14,678) | $ (27,581) | $ (49,404) |
Earnings Per Share, Basic | $ (0.04) | $ (0.06) | $ (0.11) | $ (0.19) | $ (0.12) | $ (0.12) | $ (0.23) | $ (0.35) | $ (0.40) | $ (0.79) | $ (1.72) | ||||||
Earnings Per Share, Diluted | $ (0.04) | $ (0.06) | $ (0.11) | $ (0.19) | $ (0.12) | $ (0.12) | $ (0.23) | $ (0.35) | $ (0.40) | $ (0.79) | $ (1.72) | ||||||
Valuation Allowance, Deferred Tax Asset, Change in Amount | $ 0 | $ 0 | $ (12,476) | ||||||||||||||
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal | $ 0 | $ 0 | $ 1,532 | ||||||||||||||
[1] | For the Year Ended December 31, 2015 For the Year Ended December 31, 2014 FirstQuarter SecondQuarter ThirdQuarter FourthQuarter FirstQuarter SecondQuarter ThirdQuarter FourthQuarter (In thousands, except per share data)Revenues$48,687 $47,049 $44,780 $44,077 $43,799 $49,964 $50,805 $48,174Gross margin12,626 12,601 13,007 13,918 11,148 12,007 14,697 13,950Loss from operations(6,993) (3,533) (2,016) (1,523) (9,464) (7,429) (4,103) (4,304)Net loss(7,053) (4,119) (2,066) (1,440) (10,434) (8,211) (4,469) (4,467)Loss per share: Basic$(0.19) $(0.11) $(0.06) $(0.04) $(0.35) $(0.23) $(0.12) $(0.12)Diluted$(0.19) $(0.11) $(0.06) $(0.04) $(0.35) $(0.23) $(0.12) $(0.12) |
Subsequent Events (Details)
Subsequent Events (Details) - 2014 Debt Agreement [Member] - Line of Credit [Member] - USD ($) | Feb. 08, 2016 | Mar. 14, 2014 |
Subsequent Event [Line Items] | ||
Line of Credit Facility, Current Borrowing Capacity | $ 25,000,000 | |
Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Line of Credit Facility, Current Borrowing Capacity | $ 35,000,000 |