COVER
COVER - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Mar. 01, 2021 | Jun. 30, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2020 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 1-36254 | ||
Entity Registrant Name | Avid Technology, Inc. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 04-2977748 | ||
Entity Address, Address Line One | 75 Network Drive | ||
Entity Address, City or Town | Burlington | ||
Entity Address, State or Province | MA | ||
Entity Address, Postal Zip Code | 01803 | ||
City Area Code | 978 | ||
Local Phone Number | 640-6789 | ||
Title of 12(b) Security | Common Stock, $.01 par value | ||
Trading Symbol | AVID | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 301,016,458 | ||
Entity Common Stock, Shares Outstanding | 44,490,187 | ||
Documents Incorporated by Reference [Text Block] | DOCUMENTS INCORPORATED BY REFERENCE Document Description 10-K Part Portions of the Registrant’s Proxy Statement for the 2021 Annual Meeting of Stockholders III | ||
Entity Central Index Key | 0000896841 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Net revenues: | |||
Products | $ 360,466 | $ 411,788 | $ 413,282 |
Cost of revenues: | |||
Amortization of intangible assets | 0 | 3,738 | 7,800 |
Total cost of revenues | 132,146 | 162,713 | 174,118 |
Gross profit | 228,320 | 249,075 | 239,164 |
Operating expenses: | |||
Research and development | 57,018 | 62,343 | 62,379 |
Marketing and selling | 87,637 | 99,944 | 101,273 |
General and administrative | 47,052 | 53,362 | 55,230 |
Amortization of intangible assets | 0 | 694 | 1,450 |
Restructuring costs, net | 5,046 | 629 | 5,148 |
Total operating expenses | 196,753 | 216,972 | 225,480 |
Operating income | 31,567 | 32,103 | 13,684 |
Interest income | 70 | 36 | 195 |
Interest expense | (20,071) | (26,712) | (23,474) |
Other income (expense), net | 868 | (2,902) | 192 |
(Loss) income before income taxes | 12,434 | 2,525 | (9,403) |
Provision for (benefit from) income taxes | 1,372 | (5,076) | 1,271 |
Net (loss) income | $ 11,062 | $ 7,601 | $ (10,674) |
Earnings Per Share, Basic | $ 0.25 | $ 0.18 | $ (0.26) |
Earnings Per Share, Diluted | $ 0.25 | $ 0.17 | $ (0.26) |
Weighted-average common shares outstanding - basic | 43,822 | 42,649 | 41,662 |
Weighted-average common shares outstanding - diluted | 44,878 | 43,495 | 41,662 |
Product [Member] | |||
Net revenues: | |||
Products | $ 140,762 | $ 207,445 | $ 205,107 |
Cost of revenues: | |||
Products | 84,222 | 109,799 | 110,758 |
Service [Member] | |||
Net revenues: | |||
Products | 219,704 | 204,343 | 208,175 |
Cost of revenues: | |||
Products | $ 47,924 | $ 49,176 | $ 55,560 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME Statement - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Net (loss) income | $ 11,062 | $ 7,601 | $ (10,674) |
Other comprehensive income (loss): | |||
Foreign currency translation adjustments | 2,253 | (163) | (1,341) |
Comprehensive (loss) income | $ 13,315 | $ 7,438 | $ (12,015) |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 79,899,000 | $ 69,085,000 |
Restricted Cash, Current | 1,422,000 | 1,663,000 |
Accounts receivable, net of allowances of $1,339 and $11,142 at December 31, 2018 and 2017, respectively | 78,614,000 | 73,773,000 |
Inventories | 26,568,000 | 29,166,000 |
Prepaid expenses | 6,044,000 | 9,425,000 |
Contract with Customer, Asset, after Allowance for Credit Loss | 18,579,000 | 19,494,000 |
Other current assets | 2,366,000 | 6,125,000 |
Total current assets | 213,492,000 | 208,731,000 |
Property, Plant and Equipment, Net | 16,814,000 | 19,580,000 |
Goodwill | 32,643,000 | 32,643,000 |
Long-term deferred tax assets, net | 6,801,000 | 7,479,000 |
Other long-term assets | 5,958,000 | 6,113,000 |
Total assets | 305,138,000 | 304,293,000 |
Current liabilities: | ||
Accounts payable | 21,823,000 | 39,888,000 |
Accrued compensation and benefits | 29,105,000 | 19,524,000 |
Accrued expenses and other current liabilities | 42,264,000 | 36,759,000 |
Income taxes payable | 1,664,000 | 1,945,000 |
Short-term debt | 4,941,000 | 30,554,000 |
Deferred revenues | 87,974,000 | 83,589,000 |
Total current liabilities | 187,771,000 | 212,259,000 |
Long-term debt | 202,759,000 | 199,034,000 |
Long-term deferred revenues | 11,284,000 | 14,312,000 |
Operating Lease, Liability, Noncurrent | 28,462,000 | 28,127,000 |
Operating Lease, Right-of-Use Asset | 29,430,000 | 29,747,000 |
Other long-term liabilities | 7,786,000 | 5,646,000 |
Total liabilities | 438,062,000 | 459,378,000 |
Commitments and contingencies (Note J) | ||
Stockholders' deficit: | ||
Preferred stock, $0.01 par value, 1,000 shares authorized; no shares issued or outstanding | 0 | 0 |
Common stock, $0.01 par value, 100,000 shares authorized; 42,339 shares issued and 41,949 shares and 41,356 shares outstanding at December 31, 2018 and 2017, respectively | 442,000 | 430,000 |
Additional paid-in capital | 1,036,658,000 | 1,027,824,000 |
Accumulated deficit | (1,168,347,000) | (1,179,409,000) |
Accumulated other comprehensive loss | (1,677,000) | (3,930,000) |
Total stockholders' deficit | (132,924,000) | (155,085,000) |
Total liabilities and stockholders' deficit | $ 305,138,000 | $ 304,293,000 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) shares in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Allowances for sales returns and doubtful accounts | $ 958,000 | $ 1,339,000 |
Stockholders' deficit: | ||
Commons stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 100,000 | 100,000 |
Common stock, shares issued | 43,247 | 42,339 |
Common stock, shares outstanding | 43,150 | 41,948 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 1,000 | 1,000 |
Preferred stock, shares issued | 0 | 0 |
Treasury stock, shares held | 98 | 391 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
Balances at beginning of period at Dec. 31, 2017 | $ (268,570) | $ 423 | $ 1,035,808 | $ (1,284,703) | $ (17,672) | $ (2,426) |
Balances at beginning of period (in shares) at Dec. 31, 2017 | 42,339 | (983) | ||||
Cumulative-effect adjustment due to adoption of ASU No. 2016-09 | 108,367 | 108,367 | ||||
Stock issued pursuant to employee stock plans | (643) | (13,084) | $ 12,441 | |||
Stock issued pursuant to employee stock plans (in shares) | 592 | |||||
Stock-based compensation | 6,258 | 6,258 | ||||
Net (loss) income | (10,674) | (10,674) | ||||
Other comprehensive income (loss) | (1,341) | (1,341) | ||||
Partial retirement of convertible senior notes conversion feature | (74) | (74) | ||||
Partial unwind capped call cash receipt | 16 | 16 | ||||
Balances at end of period at Dec. 31, 2018 | (166,661) | $ 423 | 1,028,924 | (1,187,010) | $ (5,231) | (3,767) |
Balances at end of period (in shares) at Dec. 31, 2018 | 42,339 | (391) | ||||
Stock issued pursuant to employee stock plans | $ (3,270) | $ 7 | (8,508) | $ 5,231 | ||
Stock issued pursuant to employee stock plans (in shares) | 811 | 391 | ||||
Stock-based compensation | $ 7,958 | 7,958 | ||||
Net (loss) income | 7,601 | 7,601 | ||||
Other comprehensive income (loss) | (163) | (163) | ||||
Partial retirement of convertible senior notes conversion feature | (577) | (577) | ||||
Partial unwind capped call cash receipt | 27 | 27 | ||||
Balances at end of period at Dec. 31, 2019 | $ (155,085) | $ 430 | 1,027,824 | (1,179,409) | $ 0 | (3,930) |
Balances at end of period (in shares) at Dec. 31, 2019 | 41,948 | 43,150 | 0 | |||
Stock issued pursuant to employee stock plans | $ (1,818) | $ 12 | (1,830) | |||
Stock issued pursuant to employee stock plans (in shares) | 1,270 | |||||
Stock-based compensation | $ 10,664 | 10,664 | ||||
Net (loss) income | 11,062 | 11,062 | ||||
Other comprehensive income (loss) | 2,253 | 2,253 | ||||
Balances at end of period at Dec. 31, 2020 | $ (132,924) | $ 442 | $ 1,036,658 | $ (1,168,347) | $ 0 | $ (1,677) |
Balances at end of period (in shares) at Dec. 31, 2020 | 43,150 | 44,420 | 0 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Cash flows from operating activities: | |||
Net (loss) income | $ 11,062 | $ 7,601 | $ (10,674) |
Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 8,505 | 13,634 | 21,142 |
(Recovery) provision for doubtful accounts | 1,298 | 208 | 119 |
(Gain) loss on disposal of fixed assets | 0 | 2,878 | 0 |
Stock-based compensation expense | 10,664 | 7,958 | 6,258 |
Non-cash provision for restructuring | 5,046 | 0 | 1,083 |
Non-cash interest expense | 3,651 | 6,143 | 8,987 |
Unrealized foreign currency transaction losses (gains) | 1,570 | 971 | (996) |
Benefit from deferred taxes | 827 | (6,309) | 113 |
Changes in operating assets and liabilities: | |||
Accounts receivable | (6,124) | (6,227) | (6,689) |
Inventories | 2,598 | 3,790 | (551) |
Prepaid expenses and other current assets | 6,176 | (44) | 5,832 |
Accounts payable | (18,141) | 626 | 9,148 |
Accrued expenses, compensation and benefits and other liabilities | 10,432 | (6,892) | (8,853) |
Income taxes payable | (281) | 91 | 38 |
Deferred revenues | 2,272 | (4,787) | (9,135) |
Net cash provided by (used in) operating activities | 39,555 | 19,641 | 15,822 |
Cash flows from investing activities: | |||
Purchases of property and equipment | (5,692) | (7,185) | (9,936) |
Increase in other long-term assets | 0 | 0 | 19 |
Net cash used in investing activities | (5,692) | (7,185) | (9,917) |
Cash flows from financing activities: | |||
Proceeds from revolving credit facilities | 22,000 | 0 | 0 |
Payments on revolving credit facilities | (22,000) | 0 | 0 |
Proceeds from long-term debt | 7,800 | 79,292 | 22,688 |
Repayment of debt | (2,250) | (1,438) | (18,451) |
Payments for repurchase of common stock | (28,867) | (76,269) | 0 |
Proceeds from issuance of common stock under employee stock plans | 547 | 309 | 355 |
Common stock repurchases for tax withholdings for net settlement of equity awards | (2,365) | (3,586) | (998) |
Repayments of Convertible Debt | 875 | 27 | 58 |
Payments for credit facility issuance costs | (289) | (5,979) | (1,000) |
Net cash provided by financing activities | (24,549) | (7,644) | 2,536 |
Effect of Exchange Rate on Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 1,748 | (331) | (780) |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | 11,062 | 4,481 | 7,661 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 83,637 | 72,575 | 68,094 |
Supplemental information: [Abstract] | |||
Cash and Cash Equivalents, at Carrying Value | 79,899 | 69,085 | 56,103 |
Restricted Cash, Current | 1,422 | 1,663 | 8,500 |
Restricted Cash, Noncurrent | 2,316 | 1,827 | 3,491 |
Cash (refunded) paid for income taxes, net | (391) | 783 | (2,791) |
Cash paid for interest | 17,499 | 12,262 | 14,505 |
Non-cash transaction - property and equipment included in accounts payable or accruals | $ 0 | $ 23 | $ 220 |
BUSINESS (Notes)
BUSINESS (Notes) | 12 Months Ended |
Dec. 31, 2020 | |
ORGANIZATION AND OPERATIONS | BUSINESS Description of Business Avid Technology, Inc. (“Avid”, “we” or “us”) develops, markets, sells, and supports software and integrated solutions for video and audio content creation, management, and distribution. We are a leading technology provider that powers the media and entertainment industry. We do this by providing an open and efficient platform for digital media, along with a comprehensive set of tools and workflow solutions. Our solutions are used in production and post-production facilities; film studios; network, affiliate, independent and cable television stations; recording studios; live-sound performance venues; advertising agencies; government and educational institutions; corporate communications departments; and by independent video and audio creative professionals, as well as aspiring professionals. Projects produced using our tools, platform, and ecosystem include feature films, television programming, live events, news broadcasts, sports productions, commercials, music, video, and other digital media content. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Summary of Significant Accounting Policies (Notes) | 12 Months Ended |
Dec. 31, 2020 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation The consolidated financial statements include our accounts and our wholly owned subsidiaries. Intercompany balances and transactions have been eliminated. Basis of Presentation and Use of Estimates Our preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenues and expenses during the reported periods. Actual results could differ from our estimates. Revenue Recognition We enter into contracts with customers that include various combinations of products and services, which are typically capable of being distinct and are accounted for as separate performance obligations. We account for a contract when (i) it has approval and commitment from both parties, (ii) the rights of the parties have been identified, (iii) payment terms have been identified, (iv) the contract has commercial substance, and (v) collectability is probable. We recognize revenue upon transfer of control of promised products or services to customers, which typically occurs upon shipment or delivery depending on the terms of the underlying contracts, in an amount that reflects the consideration we expect to receive in exchange for those products or services. See Note P for disaggregated revenue schedules and further discussion on revenue and deferred revenue performance obligations and the timing of revenue recognition. We often enter into contractual arrangements that have multiple performance obligations, one or more of which may be delivered subsequent to the delivery of other performance obligations. These arrangements may include a combination of products, support, training, and professional services. We allocate the transaction price of the arrangement based on the relative estimated standalone selling price, or SSP, of each distinct performance obligation. Our process for determining SSP for each performance obligation involves significant management judgment. In determining SSP, we maximize observable inputs and consider a number of data points, including: • the pricing of standalone sales (in the limited instances where available); • the pricing established by management when setting prices for deliverables that are intended to be sold on a standalone basis; • contractually stated prices for deliverables that are intended to be sold on a standalone basis; • other pricing factors, such as the geographical region in which the products are sold and expected discounts based on the customer size and type. Determining SSP for performance obligations which we never sell separately also requires significant judgment. In estimating the SSP in these circumstances, we consider the likely price that would have resulted from established pricing practices had the deliverable been offered separately and the prices a customer would likely be willing to pay. We only include estimated amounts in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. We reduce transaction prices for estimated returns and other allowances that represent variable consideration under ASU No. 2014-09, Revenue from Contracts with Customers (“ ASC 606”) and record a corresponding refund liability as a component of accrued expenses and other current liabilities. Other forms of contingent revenue or variable consideration are infrequent. While not a common practice for us, in the event we grant the customer the option to acquire additional products or services in an arrangement, we consider if the option provides a material right to the customer that it would not receive without entering into the contract (e.g., an incremental discount compared to the range of discounts typically given for similar products or services). If a material right is deemed to exist, we account for the option as a distinct performance obligation and recognize revenue when those future products or services are transferred or when the option expires. We also record as revenue all amounts billed to customers for shipping and handling costs and record the actual shipping costs as a component of cost of revenues. Reimbursements received from customers for out-of-pocket expenses are recorded as revenues, with related costs recorded as cost of revenues. We present revenues net of any taxes collected from customers and remitted to government authorities. Our contracts rarely contain significant financing components as payments from customers are due within a short period from when our performance obligations are satisfied. We are applying the practical expedient for the deferral of sales commissions and other contract acquisition costs, which are expensed as incurred, because the amortization period would be one year or less. Allowance for Sales Returns and Exchanges We maintain allowances for estimated potential sales returns and exchanges from our customers, which represents variable consideration under ASC 606. We record a provision for estimated returns and other allowances as a reduction of revenues in the same period that related revenues are recorded based on historical experience and specific customer analysis. Use of management estimates is required in connection with establishing and maintaining a sales allowance for expected returns and other credits. The allowance also includes rebates offered through our partner program. If actual returns differ from the estimates, additional allowances could be required. The following table sets forth the activity in the allowance for sales returns and exchanges for the years ended December 31, 2020, 2019, and 2018 (in thousands): Year Ended December 31, 2020 2019 2018 Allowance for sales returns and exchanges – beginning of year $ 8,230 $ 9,003 $ 9,916 Additions and adjustments to the allowance 10,746 15,999 12,121 Deductions against the allowance (9,670) (16,772) (13,034) Allowance for sales returns and exchanges – end of year $ 9,306 $ 8,230 $ 9,003 The allowance for sales returns and exchanges reflects an estimate of amounts invoiced that will not be collected, as well as other allowances and credits that have been or are expected to offset the trade receivables. The allowance for sales returns and exchanges is recorded as a component of accrued expenses and other current liabilities as of December 31, 2018, December 31, 2019 and December 31, 2020. Allowances for Doubtful Accounts We maintain allowances for estimated losses from bad debt resulting from the inability of our customers to make required payments for products or services. When evaluating the adequacy of the allowances, we analyze accounts receivable balances, historical bad debt experience, customer concentrations, customer credit worthiness, and current economic trends. To date, actual bad debts have not differed materially from management’s estimates. The following table sets forth the activity in the allowance for doubtful accounts for the years ended December 31, 2020, 2019, and 2018 (in thousands): Year Ended December 31, 2020 2019 2018 Allowance for doubtful accounts – beginning of year $ 958 $ 1,339 $ 1,226 Bad debt expense 1,298 208 119 Reduction in allowance for doubtful accounts (778) (589) (6) Allowance for doubtful accounts – end of year $ 1,478 $ 958 $ 1,339 Translation of Foreign Currencies The functional currency of each of our foreign subsidiaries is the local currency, except for the Irish manufacturing branch and Orad Hi-Tech Systems Ltd. (“Orad”) that we acquired in June 2015. The functional currency for both the Irish manufacturing branch and Orad is the U.S. dollar due to the extensive interrelationship of the operations of the Irish branch, Orad, and the U.S. parent, and the high volume of intercompany transactions among the two subsidiaries and the parent. The assets and liabilities of the subsidiaries whose functional currencies are currencies other than the U.S. dollar are translated into U.S. dollars at the current exchange rate in effect at the balance sheet date. Income and expense items for these entities are translated using rates that approximate those in effect during the period. Cumulative translation adjustments are included in accumulated other comprehensive income (loss), which is reflected as a separate component of stockholders’ deficit. We do not record tax provisions or benefits for the net changes in the foreign currency translation adjustment as we intend to permanently reinvest undistributed earnings in our foreign subsidiaries. The U.S. parent company, Irish manufacturing branch, and Orad, all of whose functional currency is the U.S. dollar, carry certain monetary assets and liabilities denominated in currencies other than the U.S. dollar. These assets and liabilities typically include cash, accounts receivable, and intercompany operating balances denominated in foreign currencies. These assets and liabilities are remeasured into the U.S. dollar at the current exchange rate in effect at the balance sheet date. Foreign currency transaction and remeasurement gains and losses are included within marketing and selling expenses in the results of operations. The U.S. parent company and various other wholly owned subsidiaries have long-term intercompany loan balances denominated in foreign currencies that are remeasured into the U.S. dollar at the current exchange rate in effect at the balance sheet date. Such loan balances are not expected to be settled in the foreseeable future. Any gains and losses relating to these loans are included in the accumulated other comprehensive income (loss), which is reflected as a separate component of stockholders’ deficit. We have significant international operations and, therefore, our revenues, earnings, cash flows, and financial position are exposed to foreign currency risk from foreign-currency-denominated receivables, payables, sales and expense transactions, and net investments in foreign operations. We derive more than half of our revenues from customers outside the United States. The business is, for the most part, transacted through international subsidiaries and generally in the currency of the end-user customers. Therefore, we are exposed to the risks that changes in foreign currency could adversely affect our revenues, net income (loss), cash flow, and financial position. Foreign currency transaction and remeasurement losses and gains are included within marketing and selling expenses in the results of operations. For the year ended December 31, 2020, 2019, and 2018 we recorded net losses of $0.4 million, $0.6 million, and $0.5 million respectively, that resulted from foreign currency denominated transactions and the revaluation of foreign currency denominated assets and liabilities. Cash, Cash Equivalents and Marketable Securities We measure cash equivalents and marketable securities at fair value on a recurring basis. The cash equivalents and marketable securities consist primarily of money market investments, mutual funds, and insurance contracts held in deferred compensation plans. The money market investments and mutual funds held in our deferred compensation plan in the U.S. are reported at fair value within other current assets using quoted market prices with the gains and losses included as other income (expense) in our statement of operations. The insurance contracts held in the deferred compensation plans for employees in Israel and Germany are reported at fair value within other long-term assets using other observable inputs. Other than the investments held in our deferred compensation plans, we held no marketable securities at December 31, 2020 or 2019. Concentration of Credit Risk Financial instruments that potentially subject us to concentrations of credit risk consist of cash, cash equivalents, restricted cash, and accounts receivable. We place our cash and cash equivalents with financial institutions that management believes to be of high credit quality. Concentrations of credit risk with respect to trade receivables are limited due to the large number of customers that make up our customer base and their dispersion across different regions. No individual customer accounted for 10% or more of our total net revenues or net accounts receivable in the periods presented. Inventories Inventories are stated at the lower of cost (determined on a first-in, first-out basis) or net realizable value. Management regularly reviews inventory quantities on hand and writes down inventory to our realizable value to reflect estimated obsolescence or lack of marketability based on assumptions about future inventory demand and market conditions. Inventory in the digital-media market, including our inventory, is subject to rapid technological change or obsolescence; therefore, utilization of existing inventory may differ from our estimates. Property and Equipment Property and equipment is recorded at cost and depreciated using the straight-line method over the estimated useful life of the asset. We typically depreciate our property and equipment using the following minimum and maximum useful lives: Depreciable Life Minimum Maximum Computer and video equipment and software, including internal use software 2 years 5 years Manufacturing tooling and testbeds 3 years 5 years Office equipment 3 years 5 years Furniture, fixtures, and other 3 years 8 years We capitalize certain development costs incurred in connection with our internal use software. Costs incurred in the preliminary stages of development are expensed as incurred. Once an application has reached the development stage, internal and external costs, if direct, are capitalized until the software is substantially complete and ready for its intended use. Capitalized costs are recorded as part of property and equipment. Maintenance and training costs are expensed as incurred. Internal use software is amortized on a straight-line basis over its estimated useful life, generally three years. Leasehold improvements are amortized over the shorter of the useful life of the improvement or the remaining term of the lease. Expenditures for maintenance and repairs are expensed as incurred. Upon retirement or other disposition of assets, the cost and related accumulated depreciation are eliminated from the accounts and the resulting gain or loss is reflected in “other income, net” in the results of operations. Acquisition-Related Intangible Assets and Goodwill Acquisition-related intangible assets consisted of customer relationships, developed technology, trade names, and non-compete agreements. These assets were determined to have either finite or indefinite lives. For finite-lived intangible assets, amortization was straight-line over the estimated useful lives of such assets, which are generally two years to 12 years. Straight-line amortization was used because we cannot reliably determine a discernible pattern over which the economic benefits would be realized. We do not have any indefinite-lived intangible assets. We account for goodwill under ASU No. 2017-04, Simplifying the Test for Goodwill Impairment . We concluded that we have only one reporting unit and stockholders’ deficit of $132.9 million as of December 31, 2020. According to the guidance, the goodwill of reporting units with zero or negative carrying values will not be impaired. Long-Lived Assets We periodically evaluate our long-lived assets for events and circumstances that indicate a potential impairment. A long-lived asset is assessed for impairment when the undiscounted expected future cash flows derived from that asset are less than its carrying value. The cash flows used for this analysis take into consideration a number of factors including past operating results, budgets and economic projections, market trends, and product development cycles. The amount of any impairment would be equal to the difference between the estimated fair value of the asset, based on a discounted cash flow analysis, and its carrying value. Advertising Expenses All advertising costs are expensed as incurred and are classified as marketing and selling expenses. Advertising expenses were not material in the periods presented. Research and Development Costs Research and development costs are expensed as incurred. Development costs for software to be sold that are incurred subsequent to the establishment of technological feasibility, but prior to the general release of the product, are capitalized. Upon general release, these costs are amortized using the straight-line method over the expected life of the related products, generally 12 to 36 months. The straight-line method generally results in approximately the same amount of expense as that calculated using the ratio that current period gross product revenues bear to total anticipated gross product revenues. We periodically evaluate the assets, considering a number of business and economic factors, to determine if an impairment exists. No amounts have been capitalized during 2020, 2019, and 2018 as the costs incurred subsequent to the establishment of technological feasibility have not been material. Income Taxes We account for income taxes using an asset and liability approach that requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in our financial statements or tax returns. We record deferred tax assets and liabilities based on the net tax effects of tax credits, operating loss carryforwards, and temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes compared to the amounts used for income tax purposes. Deferred tax assets are regularly reviewed for recoverability with consideration for such factors as historical losses, projected future taxable income, and the expected timing of the reversals of existing temporary differences. We are required to record a valuation allowance when it is more likely than not that some portion or all of the deferred tax assets will not be realized. We account for uncertainty in income taxes recognized in our financial statements by applying a two-step process to determine the amount of tax benefit to be recognized. First, the tax position must be evaluated to determine the likelihood that it will be sustained upon examination by the taxing authorities, based on the technical merits of the position. If the tax position is deemed more-likely-than-not to be sustained, the tax position is then assessed to determine the amount of benefit to recognize in the financial statements. The amount of the benefit that may be recognized is the largest amount that has a greater than 50% likelihood of being realized upon ultimate settlement. The provision for income taxes includes the effects of any resulting tax reserves (“unrecognized tax benefits”) that are considered appropriate, as well as the related net interest and penalties. Accounting for Stock-Based Compensation Our stock-based employee compensation plans allow us to grant stock awards, options, or other equity-based instruments, or a combination thereof, as part of our overall compensation strategy. For stock-based awards granted, we record stock-based compensation expense based on the grant date fair value over the requisite service periods for the individual awards, which generally equal the vesting periods. The vesting of stock-based award grants may be based on time, performance conditions, market conditions, or a combination of time, performance and market conditions. We account for forfeitures when they occur. Product Warranties We provide warranties on externally sourced and internally developed hardware. The warranty period for all of our products is generally 90 days to one year, but can extend up to five years depending on the manufacturer’s warranty or local law. For internally developed hardware and in cases where the warranty granted to customers for externally sourced hardware is greater than that provided by the manufacturer, we record an accrual for the related liability based on historical trends and actual material and labor costs. At the end of each quarter, we reevaluate our estimates to assess the adequacy of the recorded warranty liabilities and adjusts the accrued amounts accordingly. Computation of Net Income (Loss) Per Share Net income (loss) per share is presented for both basic earnings per share (“Basic EPS”) and diluted earnings per share (“Diluted EPS”). Basic EPS is based on the weighted-average number of common shares outstanding during the period, excluding non-vested restricted stock held by employees. Diluted EPS is based on the weighted-average number of common and potential common shares outstanding during the period. Potential common shares result from the assumed exercise of outstanding stock options and non-vested restricted stock and restricted stock units, the proceeds and remaining unrecorded compensation expense of which are then assumed to have been used to repurchase outstanding common stock using the treasury stock method. For periods when we report a loss, all potential common stock is considered anti-dilutive. For periods when we report net income, potential common shares with combined purchase prices and unamortized compensation costs in excess of our average common stock fair value for the related period or that are contingently issuable are considered anti-dilutive. Our convertible senior notes were issued in 2015, and we apply the treasury stock method in measuring the dilutive impact of those potential common shares to be issued. Accounting for Restructuring Plans We record facility-related and contract termination restructuring charges in accordance with ASC Topic 420, Liabilities: Exit or Disposal Cost Obligations . Based on our policies for the calculation and payment of severance benefits, we account for employee-related restructuring charges as an ongoing benefit arrangement in accordance with ASC Topic 712, Compensation - Nonretirement Postemployment Benefits . Prior to January 1, 2019, we recognized facility-related restructuring charges upon exiting all or a portion of a leased facility and meeting cease-use and other requirements. The amount of restructuring charges were based on the fair value of the lease obligation for the abandoned space, which included a sublease assumption that could be reasonably obtained. Upon adoption of ASC 842 on January 1, 2019, we had facilities restructuring accruals which were reclassified to the right of use asset account. We revisit right of use (“ROU”) asset value and assess liability based on vacancy and sub-lease in accordance with ASC Topic 842 Leases (“ASC 842”). Related Party Transactions From time to time we enter into arrangements with parties which may be affiliated with us, executive officers, and members of our board of directors. These transactions are primarily comprised of sales transactions in the normal course of business and are immaterial to the financial statements for all periods presented. Leases We have entered into a number of facility leases to support our research and development activities, sales operations, and other corporate and administrative functions in North America, Europe, and Asia, which qualify as operating leases under U.S. GAAP. We also have a limited number of equipment leases that also qualify as operating leases. We determine if contracts with vendors represent a lease or have a lease component under U.S. GAAP at contract inception. During 2020, we also entered into a limited number of equipment leases that qualify as finance leases. Our leases have remaining terms ranging from less than one year to seven years. We lease corporate office space in Burlington, Massachusetts, which expires in May 2028. Some of our leases include options to extend or terminate the lease prior to the end of the agreed upon lease term. For purposes of calculating lease liabilities, lease terms include options to extend or terminate the lease when it is reasonably certain that we will exercise such options. Operating lease right of use assets and liabilities are recognized based on the present value of the future minimum lease payments over the lease term at the lease commencement date. As our leases generally do not provide an implicit rate, we use an estimated incremental borrowing rate in determining the present value of future payments. The incremental borrowing rate represents an estimate of the interest rate we would incur at lease commencement to borrow an amount equal to the lease payments on a collateralized basis over the term of a lease within a particular location and currency environment. The operating leases are included in “Right of use assets,” “Accrued expenses and other current liabilities,” and “Long-term lease liabilities” on our consolidated balance sheets. Finance lease right of use assets and liabilities are recognized based on the present value of the future minimum lease payments over the lease term at the lease commencement date. Each lease agreement provides an implicit discount rate used to determine the present value of future payments. The finance leases are included in “Other assets”, “Accrued expenses and other current liabilities” and “Other long-term liabilities” on our condensed consolidated balance sheet. Lease costs are included within research and development, marketing and selling, and general and administrative lines on the consolidated statements of operations, and the related cash payments are included in the operating cash flows on the consolidated statements of cash flows. Short-term lease costs, variable lease costs, finance lease costs, and sublease income are not material. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. Related to the adoption of ASC Topic 842 Leases (“ASC 842”), and for leases executed subsequent to the adoption of ASC 842 our policy elections are as follows: Separation of lease and non-lease components Non-lease components are excluded from our right of use (“ROU”) assets and lease liabilities and expensed as incurred. Short-term policy We have elected the short-term lease recognition exemption for all applicable classes of underlying assets. Short-term disclosures include only those leases with a term greater than one month and 12 months or less, and expense is recognized on a straight-line basis over the lease term. Leases with an initial term of 12 months or less, that do not include an option to purchase the underlying asset that we are reasonably certain to exercise, are not recorded on the consolidated balance sheets. |
NET INCOME PER SHARE (Notes)
NET INCOME PER SHARE (Notes) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
NET INCOME PER SHARE | NET INCOME (LOSS) PER SHARE Net income (loss) per common share is presented for both Basic EPS and Diluted EPS. Basic EPS is based on the weighted-average number of common shares outstanding during the period. Diluted EPS is based on the weighted-average number of common shares and common shares equivalents outstanding during the period. The potential common shares that were considered anti-dilutive securities were excluded from the diluted earnings per share calculations for the relevant periods either because the sum of the exercise price per share and the unrecognized compensation cost per share was greater than the average market price of our common stock for the relevant periods, or because they were considered contingently issuable. The contingently issuable potential common shares result from certain stock options and restricted stock units granted to our employees that vest based on performance conditions, market conditions, or a combination of performance and market conditions. When there is a loss from continuing operations, potential common shares should not be included in the computation of Diluted EPS because the exercise or conversion of any potential shares increases the number of shares in the denominator and results in a lower loss per share. Therefore, all outstanding stock options and restricted stock units at December 31, 2018 are anti-dilutive and not included in the EPS calculation. The following table sets forth (in thousands) common shares considered anti-dilutive securities at December 31, 2020, 2019 and 2018. December 31, 2020 December 31, 2019 December 31, 2018 Options 4 565 892 Non-vested restricted stock units 737 2,642 2,945 Anti-dilutive potential common shares 741 3,207 3,837 The following table sets forth (in thousands) the basic and diluted weighted common shares outstanding at December 31, 2020, 2019, and 2018: 2020 2019 2018 Weighted common shares outstanding - basic 43,822 42,649 41,662 Net effect of common stock equivalents 1,056 846 — Weighted common shares outstanding - diluted 44,878 43,495 41,662 On June 15, 2015, we issued $125.0 million aggregate principal amount of our 2.00% convertible senior notes due 2020 (the “Notes”) in an offering conducted in accordance with Rule 144A under the Securities Act of 1933. The Notes were convertible into cash, shares of our common stock, or a combination of cash and shares of common stock, at our election, based on an initial conversion rate, subject to adjustment. In connection with the offering of the Notes, we entered into a capped call transaction with a third party (the “Capped Call”) (see Note Q, Long-Term Debt and Credit Agreement). We use the treasury stock method in computing the dilutive impact of the Notes. The Notes are convertible into shares but our stock price was less than the conversion price at December 31, 2019 and 2018, and therefore, the Notes are excluded from diluted income per share. The Capped Call is |
FAIR VALUE MEASUREMENTS (Notes)
FAIR VALUE MEASUREMENTS (Notes) | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS Assets and Liabilities Measured at Fair Value on a Recurring Basis We measure deferred compensation investments on a recurring basis. At December 31, 2020 and 2019, our deferred compensation investments were classified as either Level 1 or Level 2 in the fair value hierarchy. Assets valued using quoted market prices in active markets and classified as Level 1 are money market and mutual funds. Assets valued based on other observable inputs and classified as Level 2 are insurance contracts. The assets held at fair value are included in “Other current assets” and “Other long-term assets” on our condensed consolidated balance sheet as of December 31, 2020. The following tables summarize our deferred compensation investments measured at fair value on a recurring basis (in thousands): Fair Value Measurements at Reporting Date Using December 31, Quoted Prices in Significant Significant Financial Assets: Deferred compensation investments $ 522 $ 282 $ 240 $ — Fair Value Measurements at Reporting Date Using December 31, 2019 Quoted Prices in Significant Significant Financial Assets: Deferred compensation investments $ 1,156 $ 338 $ 818 $ — Financial Instruments Not Recorded at Fair Value |
INVENTORIES (Notes)
INVENTORIES (Notes) | 12 Months Ended |
Dec. 31, 2020 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES Inventories consisted of the following at December 31, 2020 and 2019 (in thousands): December 31, 2020 2019 Raw materials $ 8,223 $ 9,036 Work in process 353 371 Finished goods 17,992 19,759 Total $ 26,568 $ 29,166 |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT | Property and equipment consisted of the following at December 31, 2020 and 2019 (in thousands): December 31, 2020 2019 Computer and video equipment and software $ 137,489 $ 133,695 Manufacturing tooling and testbeds 4,781 4,209 Office equipment 4,957 4,963 Furniture, fixtures and other 10,133 10,425 Leasehold improvements 36,784 37,440 194,144 190,732 Less: accumulated depreciation and amortization 177,330 171,152 Total $ 16,814 $ 19,580 We capitalize certain development costs incurred in connection with our internal use software. For the year ended December 31, 2020, we capitalized $1.6 million of contract labor and internal labor costs related to internal use software, and recorded the capitalized costs in computer and video equipment and software. There were $2.2 million of contract labor and internal labor costs capitalized for the year ended December 31, 2019. Internal use software is amortized on a straight line basis over its estimated useful life of three years, and we recorded $3.1 million and $1.9 million of amortization expense during 2020 and 2019, respectively. Depreciation and amortization expense related to property and equipment was $8.5 million and $9.2 million for the years ended December 31, 2020 and 2019, respectively. |
INTANGIBLE ASSETS AND GOODWILL
INTANGIBLE ASSETS AND GOODWILL (Notes) | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS AND GOODWILL | INTANGIBLE ASSETS AND GOODWILL Intangible Assets Amortization expense related to intangible assets in the aggregate was $0.0 million, $4.4 million, and $9.3 million for the years ended December 31, 2020, 2019, and 2018, respectively. As of June 30, 2019, intangible assets were fully amortized. Goodwill The acquisition of Orad resulted in goodwill of $32.6 million in 2015. Through the evaluation of the discrete financial information that is regularly reviewed by the chief operating decision makers (our chief executive officer and chief financial officer), we have determined that we have one reportable segment. We have stockholders’ deficit of $132.9 million as of December 31, 2020. As the goodwill of our reporting unit has a negative carrying value, it will not be impaired. |
ACCRUED EXPENSES AND OTHER CURR
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Notes) | 12 Months Ended |
Dec. 31, 2020 | |
Accrued Expenses and Other Current Liabilities Disclosure [Abstract] | |
Other Liabilities Disclosure [Text Block] | ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES Accrued expenses and other current liabilities consisted of the following at December 31, 2020 and 2019 (in thousands): December 31, 2020 2019 Consulting and professional fees $ 1,136 $ 1,025 Operating lease liabilities - short term 5,870 6,645 Accrued royalties 3,302 1,549 Accrued warranty 1,095 1,337 Employee restructuring 3,687 157 Sales return & allowance 9,306 8,230 Other (individual items less than 5% of total current liabilities) 17,868 17,816 Total $ 42,264 $ 36,759 Other long-term liabilities consisted of the following at December 31, 2020 and 2019 (in thousands): December 31, 2020 2019 Finance lease liabilities 472 — Deferred compensation 5,818 5,186 Other long-term liabilities 1,496 460 Total $ 7,786 $ 5,646 |
OTHER LONG-TERM LIABILITIES (No
OTHER LONG-TERM LIABILITIES (Notes) | 12 Months Ended |
Dec. 31, 2020 | |
Other Liabilities Disclosure [Abstract] | |
OTHER LONG-TERM LIABILITIES | ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES Accrued expenses and other current liabilities consisted of the following at December 31, 2020 and 2019 (in thousands): December 31, 2020 2019 Consulting and professional fees $ 1,136 $ 1,025 Operating lease liabilities - short term 5,870 6,645 Accrued royalties 3,302 1,549 Accrued warranty 1,095 1,337 Employee restructuring 3,687 157 Sales return & allowance 9,306 8,230 Other (individual items less than 5% of total current liabilities) 17,868 17,816 Total $ 42,264 $ 36,759 Other long-term liabilities consisted of the following at December 31, 2020 and 2019 (in thousands): December 31, 2020 2019 Finance lease liabilities 472 — Deferred compensation 5,818 5,186 Other long-term liabilities 1,496 460 Total $ 7,786 $ 5,646 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Notes) | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Commitments We entered into a long-term agreement to purchase a variety of information technology solutions from a third party in the second quarter of 2020, which included an unconditional commitment to purchase a minimum of $32.2 million of products and services over the initial five d $3.0 million p ursuant to this agreement as of December 31, 2020 to develop Azure-certified solutions. We have letters of credit that are used as security deposits in connection with our leased Burlington, Massachusetts office space. In the event of default on the underlying leases, the landlords would, at December 31, 2020, be eligible to draw against the letters of credit to a maximum of $1.3 million in the aggregate. The letters of credit are subject to aggregate reductions provided that we are not in default under the underlying leases and meets certain financial performance conditions. In no case will the letters of credit amounts for the Burlington leases be reduced to below $1.2 million in the aggregate throughout the lease periods. We also have letters of credit in connection with security deposits for other facility leases totaling $0.6 million in the aggregate, as well as letters of credit totaling $1.9 million that otherwise support our ongoing operations. These letters of credit have various terms and expire during 2021 and beyond, while some of the letters of credit may automatically renew based on the terms of the underlying agreements. We have future minimum lease commitments under non-cancelable leases totaling $44.7 million which are described in detail in Note H, Leases. Purchase Commitments and Sole-Source Suppliers At December 31, 2020, we entered into purchase commitments for certain inventory and other goods used in our normal operations. The purchase commitments covered by these agreements are for a period of less than 1 year and in the aggregate total $9.0 million. We depend on sole-source suppliers for certain key hardware components of our products. Although we have procedures in place to mitigate the risks associated with our sole-sourced suppliers, we cannot be certain that we will be able to obtain sole-sourced components or finished goods from alternative suppliers or that we will be able to do so on commercially reasonable terms without a material impact on our results of operations or financial position. We procure product components and build inventory based on forecasts of product life cycle and customer demand. If we are unable to provide accurate forecasts or manage inventory levels in response to shifts in customer demand, we may have insufficient, excess, or obsolete product inventory. Contingencies Our industry is characterized by the existence of a large number of patents and frequent claims and litigation regarding patent and other intellectual property rights. In addition to the legal proceedings described above, we are involved in legal proceedings from time to time arising from the normal course of business activities, including claims of alleged infringement of intellectual property rights and contractual, commercial, employee relations, product or service performance, or other matters. We do not believe these matters will have a material adverse effect on our financial position or results of operations. However, the outcome of legal proceedings and claims brought against us is subject to significant uncertainty. Therefore, our financial position or results of operations may be negatively affected by the unfavorable resolution of one or more of these proceedings for the period in which a matter is resolved. Our results could be materially adversely affected if we are accused of, or found to be, infringing third parties’ intellectual property rights. Following the termination of our former Chairman and Chief Executive Officer on February 25, 2018, we received a notice alleging that we breached the former employee’s employment agreement. On April 16, 2019 we received an additional notice again alleging we breached the former employee’s employment agreement. We have since been in communications with our former Chairman and Chief Executive Officer’s counsel. While we intend to defend any claim vigorously, when and if a claim is actually filed, we are currently unable to estimate an amount or range of any reasonably possible losses that could occur as a result of this matter. On July 14, 2020, we sent a notice to a customer demanding sums that we believe are due to Avid pursuant to a contract. On October 7, 2020, the customer sent a notice to us denying any legal liability and demanding payment for breach of contract resulting from various alleged delays by us. While we intend to defend any claim vigorously when and if a claim is actually filed, we are currently unable to estimate an amount or range of any reasonably possible losses that could occur related to this matter. We consider all claims on a quarterly basis and based on known facts assesses whether potential losses are considered reasonably possible, probable, and estimable. Based upon this assessment, we then evaluate disclosure requirements and whether to accrue for such claims in our consolidated financial statements. We record a provision for a liability when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated and such amount is material. These provisions are reviewed at least quarterly and adjusted to reflect the impacts of negotiations, settlements, rulings, advice of legal counsel, and other information and events pertaining to a particular case. At December 31, 2020 and as of the date of filing of these consolidated financial statements, we believe that, other than as set forth in this note, no provision for liability nor disclosure is required related to any claims because: (a) there is no reasonable possibility that a loss exceeding amounts already recognized (if any) may be incurred with respect to such claim; (b) a reasonably possible loss or range of loss cannot be estimated; or (c) such estimate is immaterial. Additionally, we provide indemnification to certain customers for losses incurred in connection with intellectual property infringement claims brought by third parties with respect to our products. These indemnification provisions generally offer perpetual coverage for infringement claims based upon the products covered by the agreement and the maximum potential amount of future payments we could be required to make under these indemnification provisions is theoretically unlimited. To date, we have not incurred material costs related to these indemnification provisions; accordingly, we believe the estimated fair value of these indemnification provisions is immaterial. Further, certain arrangements with customers include clauses whereby we may be subject to penalties for failure to meet certain performance obligations; however, we have not recorded any related material penalties to date. We provide warranties on externally sourced and internally developed hardware. For internally developed hardware and in cases where the warranty granted to customers for externally sourced hardware is greater than that provided by the manufacturer, we record an accrual for the related liability based on historical trends and actual material and labor costs. The following table sets forth the activity in the product warranty accrual account for the years ended December 31, 2020, 2019, and 2018 (in thousands): Accrual balance at January 1, 2018 $ 2,545 Accruals for product warranties 858 Cost of warranty claims (1,697) Accrual balance at December 31, 2018 1,706 Accruals for product warranties 973 Cost of warranty claims (1,342) Accrual balance at December 31, 2019 1,337 Accruals for product warranties 1,065 Cost of warranty claims (1,307) Accrual balance at December 31, 2020 $ 1,095 |
CAPITAL STOCK (Notes)
CAPITAL STOCK (Notes) | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
CAPITAL STOCK | CAPITAL STOCK Preferred Stock We have authorized up to one million shares of preferred stock, $0.01 par value per share, for issuance. Each series of preferred stock shall have such rights, preferences, privileges, and restrictions, including voting rights, dividend rights, conversion rights, redemption privileges, and liquidation preferences, as may be determined by our board of directors (the “Board”). Stock Incentive Plans There is an aggregate of 9,440,000 of our shares of $0.01 par value per share common stock authorized and reserved for issuance under the Avid Technology, Inc. Amended and Restated 2014 Stock Incentive Plan (the “Plan”). The Plan was originally adopted by the Board on September 14, 2014 and approved by our stockholders on October 29, 2014. In connection with the approval of the Plan, our Amended and Restated 2005 Stock Incentive Plan has been closed; no additional awards may be granted under that Plan. Shares available for issuance under the Plan totaled 246,000 as of December 31, 2020. Under the Plan, we may grant stock awards or options to purchase our common stock to employees, officers, directors, and consultants. The exercise price for options generally must be no less than market price on the date of grant. Awards may be performance-based where vesting or exercisability is conditioned on achieving performance objectives, time-based, or a combination of both. Current option grants become exercisable over various periods, typically three years to four years for employees and one year for non-employee directors, and have a maximum term of seven years to ten years. Restricted stock and restricted stock unit awards with time-based vesting typically vest over three years to four years for employees and one year for non-employee directors. We use the Black-Scholes option pricing model to estimate the fair value of stock option grants with time-based vesting. The Black-Scholes model relies on a number of key assumptions to calculate estimated fair value. The assumed dividend yield of zero is based on the fact that we have never paid cash dividends and has no present expectation to pay cash dividends and our current credit agreement limits our ability to pay dividends. The expected volatility is based on actual historic stock volatility for periods equivalent to the expected term of the award. The assumed risk-free interest rate is the U.S. Treasury security rate with a term equal to the expected life of the option. The assumed expected life is based on company-specific historical experience considering the exercise behavior of past grants and models the pattern of aggregate exercises. The fair value of restricted stock and restricted stock unit awards with time-based vesting is based on the intrinsic value of the awards at the date of grant, as the awards have a purchase price of $0.01 per share. We also issue option grants or restricted stock unit awards with vesting based on market conditions. Performance-based restricted stock units will vest based on achievement of our relative total shareholder return against the Russell 2000 Index over a three-year period. The fair values and derived service periods for all grants that include vesting based on market conditions are estimated using the Monte Carlo valuation method. For stock option grants that include vesting based on performance conditions, the fair values are estimated using the Black-Scholes option pricing model. For restricted stock unit awards that include vesting based on performance conditions, the fair values are estimated based on the intrinsic values of the awards at the date of grant, as the awards have a purchase price of $0.01 per share. Information with respect to options granted under all stock option plans for the year ended December 31, 2020 was as follows: Total Number of Options Weighted- Weighted- Aggregate Options Outstanding at December 31, 2017 2,290,017 $9.65 2.31 — Granted — — Exercised — — Forfeited or Expired (1,398,125) 10.42 Options Outstanding at December 31, 2018 891,892 $8.46 1.55 — Granted — — Exercised (70,006) 7.39 Forfeited or Expired (256,886) 10.70 Options outstanding at December 31, 2019 565,000 $7.57 1.17 $ 571 Granted — — Exercised (319,000) 7.65 Forfeited or Expired — — Options outstanding at December 31, 2020 246,000 $7.48 0.44 $ 1,358 Exercisable at: December 31, 2018 891,892 $8.46 1.55 $— December 31, 2019 565,000 $7.57 1.17 $571 December 31, 2020 246,000 $7.48 0.44 $1,358 The cash received from stock options exercised during the years ended December 31, 2020 and 2019 were $1.6 million and $0.5 million. No stock options were exercised during 2018 Information with respect to non-vested time-based restricted stock units for the year ended December 31, 2020 was as follows: Number of Restricted Stock Units Weighted- Shares Retained to Cover Statutory Minimum Withholding Taxes Outstanding at December 31, 2017 1,809,138 $5.49 Granted 1,783,728 5.08 Vested (688,106) 5.61 213,531 Forfeited (926,084) 5.42 Outstanding at December 31, 2018 1,978,676 $5.12 Granted 1,320,536 7.33 Vested (991,819) 5.16 307,005 Forfeited (219,460) 5.98 Outstanding at December 31, 2019 2,087,933 $6.41 Granted 1,518,714 7.20 Vested (1,193,553) 6.33 403,798 Forfeited (298,215) 6.52 Outstanding at December 31, 2020 2,114,879 7.01 Information with respect to non-vested performance-based restricted stock units for the year ended December 31, 2020 was as follows: Number of Performance-based Restricted Stock Units Weighted- Shares Retained to Cover Statutory Minimum Withholding Taxes Outstanding at December 31, 2017 1,254,110 $4.54 Granted 771,124 4.84 Vested — — — Forfeited (1,059,091) 4.82 Outstanding at December 31, 2018 966,143 $4.48 Granted 411,043 7.11 Vested (666,451) 4.48 280,613 Forfeited (156,470) 4.64 Outstanding at December 31, 2019 554,265 $6.39 Granted 578,316 6.64 Vested (328,673) 5.80 133,596 Forfeited (150,480) 7.11 Outstanding at December 31, 2020 653,428 6.74 The weighted-average grant date fair value of time and performance-based restricted stock units granted during the years ended December 31, 2020, 2019, and 2018 was $7.05, $7.28, and $5.01, respectively. The total weighted-average fair value of time and performance-based restricted stock units vested during the years ended December 31, 2020, 2019, and 2018 was $9.5 million, $8.1 million, and $3.9 million, respectively. Employee Stock Purchase Plan On February 27, 2008, the Board approved our Second Amended and Restated 1996 Employee Stock Purchase Plan (the “ESPP”). On May 27, 2008 our stockholders approved an increase of the number of shares of our common stock authorized for issuance under the Second Amended and Restated ESPP from 1,700,000 to 2,500,000 shares. In May 2018, we registered an aggregate of 650,000 of our shares of $0.01 par value per share common stock, which have been authorized and reserved for issuance under the Avid Technology, Inc. Second Amended and Restated ESPP. Our Second Amended and Restated ESPP offers our shares for purchase at a price equal to 85% of the closing price on the applicable offering period termination date. Shares issued under the ESPP are considered compensatory. Accordingly, we are required to measure fair value and record compensation expense for share purchase rights granted under the ESPP. In July 2015, the Board of Directors approved an amendment to the ESPP to change the subscription period from three We use the Black-Scholes option pricing model to calculate the fair value of shares issued under the ESPP. The Black-Scholes model relies on a number of key assumptions to calculate estimated fair values. The following table sets forth the weighted-average key assumptions and fair value results for shares issued under the ESPP during the years ended December 31, 2020, 2019, and 2018: Year Ended December 31, 2020 2019 2018 Expected dividend yield 0.00% 0.00% 0.00% Risk-free interest rate 0.82% 2.37% 1.85% Expected volatility 72.1% 48.6% 55.3% Expected life (in years) 0.50 0.49 0.50 Weighted-average fair value of shares issued (per share) $1.40 $1.04 $0.94 The following table sets forth the quantities and average prices of shares issued under the ESPP for the years ended December 31, 2020, 2019, and 2018: Year Ended December 31, 2020 2019 2018 Shares issued under the ESPP 61,750 69,179 117,653 Average price of shares issued $8.67 $7.48 $4.22 We did not realize a material tax benefit from the tax deductions for stock option exercises, vested restricted stock units and shares issued under the ESPP during the years ended December 31, 2020, 2019, or 2018. Stock-Based Compensation Expense Stock-based compensation was included in the following captions in our consolidated statements of operations for the years ended December 31, 2020, 2019, and 2018, respectively (in thousands): Year Ended December 31, 2020 2019 2018 Share-based compensation expense by type: Stock Options $ — $ — $ — Time-based Restricted Stock Units 8,340 5,900 4,011 Performance-based Restricted Stock Units 2,211 1,964 2,146 ESPP 113 94 101 Total Share-based compensation expense $ 10,664 $ 7,958 $ 6,258 Year Ended December 31, 2020 2019 2018 Cost of products revenues $ 513 $ 343 $ 128 Cost of service revenues 826 274 194 Research and development expenses 1,725 1,068 667 Marketing and selling expenses 2,176 1,797 1,540 General and administrative expenses 5,424 4,476 3,729 Total $ 10,664 $ 7,958 $ 6,258 At December 31, 2020, there was $13.1 million of total unrecognized compensation cost related to non-vested stock-based compensation awards granted under our stock-based compensation plans. We expect this amount to be amortized approximately as follows: $8.3 million in 2021, $3.7 million in 2022, and $1.1 million in 2023. At December 31, 2020, the weighted-average recognition period of the unrecognized compensation cost was approximately one |
EMPLOYEE BENEFIT PLANS (Notes)
EMPLOYEE BENEFIT PLANS (Notes) | 12 Months Ended |
Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |
EMPLOYEE BENEFIT PLANS | EMPLOYEE BENEFIT PLANS Employee Benefit Plans We have a Section 401(k) plan, which we refer to as the 401(k) plan, that covers substantially all U.S. employees. The 401(k) plan allows employees to make contributions up to a specified percentage of their compensation. We may, upon resolution by our board of directors, make discretionary contributions to the plan. Our contributions to the 401(k) plan totaled $0.5 million in 2020, and $1.6 million in both 2019 and 2018. In addition, we have various retirement and post-employment plans covering certain international employees. Certain plans allow us to match employee contributions up to a specified percentage as defined by the plans. Our contributions to these plans totaled $1.4 million, $1.3 million, and $1.7 million in 2020, 2019, and 2018 respectively. Deferred Compensation Plans We maintain a nonqualified deferred compensation plan (the “Deferred Plan”). The Deferred Plan covers senior management and members of the Board. In November 2013, the Board determined to indefinitely suspend the Deferred Plan and not offer participants the opportunity to participate in the Deferred Plan as of 2014. The benefits payable under the Deferred Plan represent an unfunded and unsecured contractual obligation to pay the value of the deferred compensation in the future, adjusted to reflect deemed investment performance. Payouts are generally made upon termination of employment with us. The assets of the Deferred Plan, as well as the corresponding obligations, were approximately $0.3 million and $0.3 million at December 31, 2020 and 2019, respectively, and were recorded in “other current assets” and “accrued compensation and benefits” at those dates. In connection with the acquisition of a business in 2010, we assumed the assets and liabilities of a deferred compensation arrangement for a single individual in Germany. The arrangement represents a contractual obligation to pay a fixed euro amount for a period specified in the contract. In connection with the acquisition of Orad, we assumed the assets and liabilities of a deferred compensation arrangement for employees in Israel. Our assets and liabilities related to the arrangements consisted of assets recorded in “other long-term assets” of $0.2 million at December 31, 2020 and $0.8 million at December 31, 2019, |
INCOME TAXES (Notes)
INCOME TAXES (Notes) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES On December 22, 2017, the tax act to provide for reconciliation pursuant to titles II and V of the concurrent resolution on the budget for fiscal year 2018, commonly known as the Tax Cuts and Jobs Act (the “TCJA”), was signed into law. The TCJA changed many aspects of U.S. corporate income taxation and included reduction of the corporate income tax rate from 35% to 21%, implementation of a territorial tax system and imposition of a tax on deemed repatriated earnings of foreign subsidiaries. As part of U.S. international tax reform, the TCJA imposes a transition tax on certain accumulated foreign earnings aggregated across all non-U.S. subsidiaries, net of foreign deficits. We were in an aggregate net foreign deficit position for U.S. tax purposes, and therefore not liable for the transition tax. Additionally, TCJA repealed the alternative minimum tax (“AMT”) and made existing AMT credit carryovers refundable. Accordingly, at December 31, 2017, we recorded a deferred tax benefit and income tax receivable for our existing AMT credit in the amount of $0.8 million. The global intangible low-taxed income (“GILTI”) provisions of the TCJA impose a tax on foreign income in excess of a deemed return on tangible assets of foreign corporations. Under U.S. GAAP, we can make an accounting policy choice of either (1) treating taxes due on future U.S. inclusions in taxable income related to GILTI as a current-period expense when incurred (the “period cost method”) or (2) factoring such amounts into the measurement of our deferred taxes (the “deferred method”). During the year ended December 31, 2018 we made a policy election to record tax effects of GILTI as an expense under the period cost method. The CARES Act includes several income tax provisions such as net operating loss (“NOL”) carryback and carryforward benefits and other tax deduction benefits. As noted previously, the U.S. deferred tax asset has a full valuation; accordingly, these NOL and other benefit provisions had no impact on our financial statements for the period ended December 31, 2020. The CARES Act accelerates the alternative minimum tax (“AMT”) credit refund originally enacted by the TCJA. As of December 31, 2020, we have received the cash from the Internal Revenue Service associated with this refund receivable which had been recorded as a long-term asset at December 31, 2019. Income (loss) before income taxes and the components of the income tax provision (benefit) consisted of the following for the years ended December 31, 2020, 2019, and 2018 (in thousands): Year Ended December 31, 2020 2019 2018 Income (loss) from operations before income taxes: United States $ 9,182 $ 4,311 $ (1,940) Foreign 3,252 (1,786) (7,463) Total income (loss) from operations before income taxes $ 12,434 $ 2,525 $ (9,403) Provision for (Benefit from) income taxes: Current tax expense (benefit): Federal $ — $ (4) $ (1) State 133 58 59 Foreign benefit of net operating losses (883) (462) (206) Other foreign 1,295 1,632 1,372 Total current tax expense 545 1,224 1,224 Deferred tax (benefit) expense: Federal — — — Other foreign 827 (6,300) 47 Total deferred tax (benefit) expense 827 (6,300) 47 Total provision for (benefit from) income taxes $ 1,372 $ (5,076) $ 1,271 Net deferred tax assets (liabilities) consisted of the following at December 31, 2020 and 2019 (in thousands): December 31, 2020 2019 Deferred tax assets: Tax credit and net operating loss carryforwards $ 254,745 $ 267,049 Allowances for bad debts 47 69 Difference in accounting for: Revenues 6,659 2,651 Costs and expenses 23,217 19,400 Inventories 1,466 2,282 Acquired intangible assets 62 187 Long-term lease liabilities 7,432 7,605 Gross deferred tax assets 293,628 299,243 Valuation allowance (278,785) (281,568) Deferred tax assets after valuation allowance 14,843 17,675 Deferred tax liabilities: Difference in accounting for: Revenues — (1,052) Costs and expenses (626) (1,527) Inventories (92) — Basis difference convertible notes — (326) Right of use asset (7,324) (7,291) Gross deferred tax liabilities (8,042) (10,196) Net deferred tax assets $ 6,801 $ 7,479 Recorded as: Deferred tax assets, net 6,801 7,479 Deferred tax liabilities, net — — Net deferred tax assets $ 6,801 $ 7,479 Deferred tax assets and liabilities reflect the net tax effects of the tax credits and net operating loss carryforwards and the temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The ultimate realization of the net deferred tax assets is dependent upon the generation of sufficient future taxable income in the applicable tax jurisdictions. During the year ended December 31, 2019 we determined that our Irish subsidiary has reached a level of sustained profitability sufficient enough to release a significant portion of the valuation allowance on its net operating loss carryforward. Accordingly, we reversed a $6.0 million valuation allowance against the Irish subsidiary’s net operating loss carryforward deferred tax asset. Additionally, during the year ended December 31, 2019 we completed a legal entity reorganization that reduced the number of our German subsidiaries. This reorganization allowed us to reverse a valuation allowance on the net operating loss carryforward deferred tax asset of one of the surviving German entities resulting in an increase to the deferred tax asset, net of a provision for related uncertain tax position, of $1.5 million. Management believes the remaining deferred tax assets, based largely on the history of U.S. tax losses, warrant a valuation allowance based on the weight of available negative evidence. For U.S. federal and state income tax purposes at December 31, 2020, we had tax credit carryforwards of $48.6 million, which will expire between 2021 and 2040, and net operating loss carryforwards of $719.9 million, the majority of which will expire between 2021 and 2037. The federal net operating loss and tax credit amounts are subject to annual limitations under Section 382 change of ownership rules of the Internal Revenue Code. We completed an assessment at December 31, 2020 regarding whether there may have been a Section 382 ownership change and concluded that it is more likely than not that none of our net operating loss and tax credit amounts are subject to any Section 382 limitation. Additionally, we have foreign net operating loss carryforwards of $107.0 million and capital loss carryforwards of $1.6 million, each with an indefinite carryforward period and tax credit carryforwards of $6.2 million that begin to expire in 2030. We have determined there is uncertainty regarding the realization of a portion of these assets and have recorded a valuation allowance against $63.8 million of net operating losses, $1.6 million of capital losses and $6.2 million of tax credits at December 31, 2020. Our assessment of the valuation allowance on the U.S. and foreign deferred tax assets could change in the future based on our levels of pre-tax income and other tax related adjustments. Reversal of the valuation allowance in whole or in part would result in a non-cash reduction in income tax expense during the period of reversal. The following table sets forth a reconciliation of our income tax provision (benefit) to the statutory U.S. federal tax amount for the years ended December 31, 2020, 2019, and 2018: Year Ended December 31, 2020 2019 2018 Statutory tax $ 2,611 $ 530 $ (1,975) Tax credits utilized and expired 1,356 815 1,277 Foreign operations 981 921 1,854 Change in uncertain tax positions (474) 11,185 58 Non-deductible expenses and other 425 2,474 301 Change in valuation allowance (3,527) (21,001) (244) Provision for (benefit from) income taxes $ 1,372 $ (5,076) $ 1,271 The increase in our statutory tax is driven by the increase in our income from operations before taxes. The change in our tax credits is driven by expiring U.S. research and development tax credits exceeding current year tax credits generated. Changes in the jurisdictional mix of our foreign profitability drives the change in the taxes on foreign operations. The changes in our uncertain tax positions relates to the 2020 settlement of an audit issue in our Israel subsidiary and in 2019 to our German net operating loss carryforward. As noted above, the deferred tax asset recorded for the German net operating loss carryforward is recorded net of this uncertain tax position. The changes in our non-deductible expenses was primarily driven by compensation deduction limitations under Internal Revenue Code section 162(m) in both 2020 and 2019. The 2020 decrease in our valuation allowance was primarily driven by the decrease of U.S. deferred tax assets and in 2019 by reversal of valuation allowances on our foreign net operating loss carryforwards. In 2019, we have determined that our Irish subsidiary has reached a level of sustained profitability sufficient enough to release a significant portion of the valuation allowance on its net operating loss carryforward. Accordingly, we recorded a $6.0 million benefit related to a valuation allowance against the Irish subsidiary net operating loss carryforward deferred tax asset. Additionally, the reorganization of our German subsidiaries allowed us to reverse a valuation allowance on the net operating loss carryforward deferred tax asset of one of the surviving German entities. We recorded a gross benefit of $12.6 million for this release and correspondingly recorded an $11.1 million charge for a related uncertain tax position resulting in a net benefit of $1.5 million. As a result of TCJA and the current U.S. taxation of deemed repatriated earnings, the additional taxes that might be payable upon repatriation of foreign earnings are not significant. However, we do not have any current plans to repatriate these earnings because the underlying cash will be used to fund the ongoing operations of the foreign subsidiaries. A tax position must be more likely than not to be sustained before being recognized in the financial statements. It also requires the accrual of interest and penalties as applicable on unrecognized tax positions. At December 31, 2018 and 2019, our unrecognized tax benefits and related accrued interest and penalties related to an audit issue at our subsidiary in Israel in the amount of $1.8 million, of which $1.8 million would affect our income tax provision and effective tax rate if recognized. Additionally, during 2019 we had an increase in our unrecognized tax positions of $11.1 million related to our German subsidiary net operating loss carryforward; this increase relates to the German subsidiary’s legal entity reorganization mentioned above. During 2020, we reversed the accrual for the unrecognized tax position related to the audit issue at our subsidiary in Israel due to the settlement of the issue. The total decreases to the value of our unrecognized tax benefits during 2020, including the impacts of any foreign currency revaluations, were $(0.8) million. The balance of the unrecognized benefit at December 31,2020 relates only to the unrecognized tax position related to our German subsidiary net operating loss carryforward. The following table sets forth a reconciliation of the beginning and ending amounts of unrecognized tax benefits for the years ended December 31, 2020, 2019, and 2018 (in thousands): Unrecognized tax benefits at January 1, 2018 $ 1,841 Decreases for tax positions taken during a prior period (78) Unrecognized tax benefits at December 31, 2018 1,763 Increases for tax positions taken during a prior period 11,248 Unrecognized tax benefits at December 31, 2019 13,011 Decreases for tax positions taken during a prior period (818) Unrecognized tax benefits at December 31, 2020 $ 12,193 We recognize interest and penalties related to uncertain tax positions in income tax expense. Accrued interest and penalties related to uncertain tax positions at December 31, 2020 and 2019 were $0 million and $0.4 million, respectively. The tax years 2010 and forward remain open to examination by taxing authorities in the jurisdictions in which we operate. The most significant operating jurisdictions include: the United States, Ireland, the Netherlands, Germany, Israel, Japan, and the United Kingdom. |
RESTRUCTURING COSTS AND ACCRUAL
RESTRUCTURING COSTS AND ACCRUALS (Notes) | 12 Months Ended |
Dec. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING COSTS AND ACCRUALS | RESTRUCTURING COSTS AND ACCRUALS 2016 Restructuring Plan In February 2016, we committed to a restructuring plan that encompassed a series of measures intended to allow us to more efficiently operate in a leaner, more directed cost structure. These included reductions in our workforce, consolidation of facilities, transfers of certain business processes to lower cost regions, and reductions in other third-party services costs. During the year ended December 31, 2019, we recorded restructuring costs of $0.6 million. The restructuring charges for the year ended December 31, 2019 included $0.6 million of severance costs related to approximately 54 positions eliminated during 2019. During the year ended December 31, 2018, we recorded restructuring costs of $5.1 million. The restructuring charges for the year ended December 31, 2018 included $3.6 million for the severance costs related to approximately 84 positions eliminated during 2018 and the first quarter of 2019, recoveries of $(0.1) million of facility restructuring accrual adjustments, and $1.1 million of leasehold improvement write-off resulting from the consolidation of our facilities in Burlington, Massachusetts. 2020 Restructuring Plan In October 2020, we committed to a restructuring plan in order to undergo a strategic reorganization of our business. We are making significant changes in business operations to better support our strategy and overall performance. During the year ended December 31, 2020, we recorded restructuring costs of $5 million. The restructuring charges for the year ended December 31, 2020 were a result of severance costs related to approximately 93 positions eliminated during 2020. Restructuring Summary The following table sets forth restructuring expenses recognized for the years ended December 31, 2020, 2019, and 2018 (in thousands): Year Ended December 31, 2020 2019 2018 Employee $ 4,949 $ 599 $ 3,641 Facility 97 5 (104) Total facility and employee charges 5,046 604 3,537 Other — 25 1,611 Total restructuring charges, net $ 5,046 $ 629 $ 5,148 The following table sets forth the activity in the restructuring accruals for the years ended December 31, 2020, 2019, and 2018 (in thousands). Employee- Facilities- Total Accrual balance at December 31, 2017 $ 1,998 $ 2,479 $ 4,477 Restructuring charges and revisions 3,641 (104) 3,537 Accretion — 103 103 Cash payments (3,099) (2,159) (5,258) Foreign exchange impact on ending balance 1 (1) — Accrual balance at December 31, 2018 $ 2,541 $ 318 $ 2,859 Restructuring charges and revisions 599 — 599 Accretion — — — Cash payments (2,964) — (2,964) Foreign exchange impact on ending balance (21) — (21) Effect of adoption of ASC 842 — (318) (318) Accrual balance at December 31, 2019 $ 155 $ — $ 155 Restructuring charges and revisions 4,949 — 4,949 Accretion — — — Cash payments (1,461) — (1,461) Foreign exchange impact on ending balance 44 — 44 Accrual balance at December 31, 2020 3,687 — 3,687 Less: current portion 3,687 — 3,687 Long-term accrual balance as of December 31, 2020 $ — $ — $ — The employee-related accruals at December 31, 2020 represent severance costs to former employees that will be paid out within 12 months, and are, therefore, included in the caption “accrued expenses and other current liabilities” in our consolidated balance sheets. |
PRODUCT AND GEOGRAPHIC INFORMAT
PRODUCT AND GEOGRAPHIC INFORMATION (Notes) | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
PRODUCT AND GEOGRAPHIC INFORMATION | REVENUE Revenue Components and Performance Obligations Video Products and Solutions We offer a wide range of video products and solutions in connection with our sales of storage and workflow solutions, our media management solutions, and our video creative tools, which include our Media Composer, NEXIS, Airspeed, Maestro, and MediaCentral product lines that consist of software licenses or integrated hardware and software solutions. We sell these products to customers under a contract or signed quote and payment terms are generally 30 to 60 days from delivery. Each individual product sold to a customer represents a distinct performance obligation for us and revenue is recognized at the point in time when control of the product transfers, which is typically when the product is shipped to the customer or, in the case of certain software licenses, when the software license term commences and is accessible by the customer. Audio Products and Solutions We offer a wide range of audio products and solutions in connection with our sales of digital audio software and workstation solutions and our control surfaces, consoles and live-sound systems, which include our Pro Tools, Pro Tools HD, Pro Tools | S6, VENUE | S6L, and Sibelius product lines that consist of software licenses or integrated hardware and software solutions. We sell these products to customers under a contract or signed quote and payment terms are generally 30 to 60 days from delivery. Each individual product sold to a customer represents a distinct performance obligation for us and revenue is recognized at the point in time when control of the product transfers, which is typically when the product is shipped to the customer or, in the case of certain software licenses, when the software license term commences and is accessible by the customer. Subscription Services We offer subscription versions of many of our software products with monthly, annual and multi-year terms. While we are beginning to offer subscription versions for most of our product portfolio in connection with our cloud strategy, current subscription sales primarily consist of our Media Composer, Pro Tools, and Sibelius offerings. We sell these products to customers under standard terms and conditions and payment is due upfront, except for webstore transactions which are billed monthly. Contract assets for annual and multi-year subscriptions billed monthly are recorded on our balance sheet upon customer commitment, net of expected early cancellations where we estimate variable consideration based on historical experience. Subscription services have several performance obligations, including a right to use the software and stand-ready performance obligations to (i) provide unspecified bug fixes and software enhancements, or Software Updates, and (ii) call support when and if needed. The estimated SSP of the right to use the licensed software is recognized at a point in time once control has been transferred and the customer has the ability to access the software. Stand-ready performance obligations related to Software Updates and call support are satisfied over time and revenue is recognized ratably over the term of the subscription. Support Services We offer support contracts, which are typically annual, for our video and audio products. Support contracts for individual products are sold bundled with initial product offerings or as renewals once initial contracts have lapsed. Support contracts are also sold on an enterprise basis where a customer purchases support for all Avid products owned. Support contracts are provided under our standard terms and conditions and payment is due in advance of the support being provided. Support contracts include stand-ready performance obligations to provide (i) Software Updates, (ii) call support, and (iii) hardware maintenance. Support contract performance obligations are satisfied over time and revenue is recognized ratably over the term of the support contract. Historically, for many of our products, we had an ongoing practice of making when-and-if-available Software Updates available to customers free of charge for a period of time after initial sales to customers. The expectation created by this practice represents an implied performance obligation of a form of post-contract customer support (“Implied Maintenance Release PCS”) which represents a performance obligation. While we have ceased providing Implied Maintenance Release PCS on new product offerings, we continue to provide Implied Maintenance Release PCS for older products that were predominately sold in prior years. Revenue attributable to Implied Maintenance Release PCS performance obligations is recognized over time on a ratable basis over the period that Implied Maintenance Release PCS is expected to be provided, which is typically six years. Professional Services, Training, and Other We sell a variety of professional services, training, and other services that complement product and support offerings. Professional services consist primarily of standard configuration, commissioning (i.e., setting up equipment purchased) and on-air support (i.e., monitoring a customer’s production environment available during initial system go-live, live sporting events, etc.) and providing customization services for some of our products. We also offer training and certification programs for many of our products and workflows. Other revenues include shipping and handling charges and reimbursable travel expenses. We sell professional services, training and other services under a contract or signed quote, and for larger projects, statements of work that outline the customer’s specifications and requirements. Services are primarily sold on a time and materials basis, however, fixed fee arrangements are also executed from time to time. Payments are generally billed upon completion of the service or, for larger projects, on an installment basis as services are rendered. While the nature of service deliverables can vary significantly, each service deliverable generally represents a distinct performance obligation and revenue is recognized over time, typically in proportion of the total hours incurred as a percentage of total estimated hours required to complete the project. Enterprise Agreements From time to time, we enter into enterprise wide agreements whereby the customer agrees to purchase specified products and services from us over an extended period of time, often for a single fixed contractual price. For such agreements, management identifies each performance obligation in the contract and allocates the total contract price to each performance obligation based on relative estimated SSP. Once the transaction price is allocated to individual performance obligations, the components are recognized in the respective categories of revenue above consistent with the timing of the recognition of performance obligations described therein. Disaggregated Revenue and Geography Information The following is a summary of our revenues by type for the years ended December 31, 2020, 2019, and 2018 (in thousands): Year Ended December 31, 2020 2019 2018 Video products and solutions net revenues $ 77,232 $ 131,225 $ 132,276 Audio products and solutions net revenues 63,530 76,220 72,831 Products and solutions net revenues 140,762 207,445 205,107 Subscription services 72,831 45,181 35,888 Support services 124,175 130,443 139,205 Professional services, training and other services 22,698 28,719 33,082 Services net revenues 219,704 204,343 208,175 Total net revenues $ 360,466 $ 411,788 $ 413,282 The following table sets forth our revenues by geographic region for the years ended December 31, 2020, 2019, and 2018 (in thousands): Year Ended December 31, 2020 2019 2018 Revenues: United States $ 143,518 $ 152,012 $ 150,877 Other Americas 24,026 32,783 27,494 Europe, Middle East and Africa 142,370 161,764 172,238 Asia-Pacific 50,552 65,229 62,673 Total net revenues $ 360,466 $ 411,788 $ 413,282 Contract Asset Contract asset activity for the years ended December 31, 2020 and 2019 was as follows (in thousands): December 31, 2020 December 31, 2019 Contract asset at January 1, 2020 $ 19,494 $ 16,513 Revenue in excess of billings 32,005 30,715 Customer billings (32,920) (27,734) Contract asset at December 31, 2020 $ 18,579 $ 19,494 The decrease in contract assets during the year ended December 31, 2020 is due to the timing of payments due under our enterprise network agreements which predominately are payable annually, whereas performance obligations are fulfilled on a continuous basis partially offset by continued growth in our subscription offerings. Deferred Revenue Deferred revenue activity for the years ended December 31, 2020 and 2019 was as follows (in thousands): December 31, 2020 December 31, 2019 Deferred revenue at January 1, 2020 $ 97,901 $ 99,601 Billings deferred 72,633 76,665 Recognition of prior deferred revenue (71,276) (78,365) Deferred revenue at December 31, 2020 $ 99,258 $ 97,901 A summary of the performance obligations included in deferred revenue as of December 31, 2020 is as follows (in thousands): December 31, 2020 Product $ 6,636 Subscription 5,736 Support Contracts 75,555 Implied Maintenance Release PCS 8,426 Professional services, training and other 2,905 Deferred revenue at December 31, 2020 $ 99,258 Remaining Performance Obligations For transaction prices allocated to remaining performance obligations, we apply practical expedients and do not disclose quantitative or qualitative information for remaining performance obligations (i) that have original expected durations of one year or less and (ii) where we recognize revenue equal to what we have the right to invoice and that amount corresponds directly with the value to the customer of our performance to date. We have remaining performance obligations of $8.4 million attributable to Implied Maintenance Release PCS recorded in deferred revenue as of December 31, 2020. We expect to recognize revenue for these remaining performance obligations of $3.4 million, $2.1 million, $1.4 million, $0.9 million, and $0.5 million for the years ended December 31, 2021, 2022, 2023, 2024, and 2025, respectively, and $0.1 million thereafter. A s of December 31, 2020, we had approximately $46.2 million of transaction price allocated to remaining performance obligations for certain enterprise agreements that have not yet been invoiced and are therefore not recorded as deferred revenue on our balance sheet. Unbilled remaining performance obligations represent obligations we have to deliver for specific products and services in the future where there is not yet an enforceable right to invoice the customer. Our unbilled remaining performance obligations do not include contractually committed minimum purchases that are common in our strategic purchase agreements with resellers since our specific obligations to deliver products or services is not yet known, as customers may satisfy such commitments by purchasing an unknown combination of current or future product offerings. While the timing of fulfilling individual performance obligations under the contracts can vary dramatically based on customer requirements, we expect to recognize the $53.3 million in installments through 2026. |
QUARTERLY RESULTS (UNAUDITED) (
QUARTERLY RESULTS (UNAUDITED) (Notes) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
QUARTERLY RESULTS (UNAUDITED) | QUARTERLY RESULTS (UNAUDITED) The following information has been derived from unaudited consolidated financial statements that, in the opinion of management, include all normal recurring adjustments necessary for a fair presentation of such information. (In thousands, except per share data) Quarter Ended 2020 2019 Dec. 31 Sept. 30 June 30 Mar. 31 Dec. 31 Sept. 30 June 30 Mar. 31 Net revenues $ 104,301 $ 90,431 $ 79,281 $ 86,453 $ 116,306 $ 93,461 $ 98,701 $ 103,319 Cost of revenues 38,951 32,174 27,719 33,302 43,033 35,603 40,253 40,087 Amortization of intangible assets — — — — — — 1,788 1,950 Gross profit 65,350 58,257 51,562 53,151 73,273 57,858 56,660 61,282 Operating expenses: Research and development 14,902 13,623 13,068 15,425 16,018 14,860 15,180 16,285 Marketing and selling 22,660 19,998 19,690 25,289 26,603 22,334 26,129 24,878 General and administrative 12,908 10,796 10,604 12,744 14,816 12,034 12,722 13,788 Amortization of intangible assets — — — — — — 331 363 Restructuring costs (recoveries), net 4,038 723 140 145 113 229 (269) 558 Total operating expenses 54,508 45,140 43,502 53,603 57,550 49,457 54,093 55,872 Operating income (loss) 10,842 13,117 8,060 (452) 15,723 8,401 2,567 5,410 Interest and other expense, net (3,929) (4,423) (5,498) (5,283) (5,584) (5,519) (13,290) (5,185) Income (loss) before income taxes 6,913 8,694 2,562 (5,735) 10,139 2,882 (10,723) 225 Provision for (benefit from) income taxes (174) 707 717 122 (5,231) (283) — 438 Net income (loss) $ 7,087 $ 7,987 $ 1,845 $ (5,857) $ 15,370 $ 3,165 $ (10,723) $ (213) Net income (loss) per share – basic $ 0.16 $ 0.18 $ 0.04 $ (0.14) $ 0.36 $ 0.07 $ (0.25) $ (0.01) Net income (loss) per share – diluted $ 0.16 $ 0.18 $ 0.04 $ (0.13) $ 0.35 $ 0.07 $ (0.25) $ (0.01) Weighted-average common shares outstanding – basic 44,288 44,019 43,719 43,254 43,060 42,913 42,560 42,046 Weighted-average common shares outstanding – diluted 45,541 44,758 44,180 44,101 43,737 43,674 42,560 42,046 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Consolidation, Policy [Policy Text Block] | Principles of Consolidation The consolidated financial statements include our accounts and our wholly owned subsidiaries. Intercompany balances and transactions have been eliminated. Basis of Presentation and Use of Estimates Our preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenues and expenses during the reported periods. Actual results could differ from our estimates. |
Revenue [Policy Text Block] | Revenue Recognition We enter into contracts with customers that include various combinations of products and services, which are typically capable of being distinct and are accounted for as separate performance obligations. We account for a contract when (i) it has approval and commitment from both parties, (ii) the rights of the parties have been identified, (iii) payment terms have been identified, (iv) the contract has commercial substance, and (v) collectability is probable. We recognize revenue upon transfer of control of promised products or services to customers, which typically occurs upon shipment or delivery depending on the terms of the underlying contracts, in an amount that reflects the consideration we expect to receive in exchange for those products or services. See Note P for disaggregated revenue schedules and further discussion on revenue and deferred revenue performance obligations and the timing of revenue recognition. We often enter into contractual arrangements that have multiple performance obligations, one or more of which may be delivered subsequent to the delivery of other performance obligations. These arrangements may include a combination of products, support, training, and professional services. We allocate the transaction price of the arrangement based on the relative estimated standalone selling price, or SSP, of each distinct performance obligation. Our process for determining SSP for each performance obligation involves significant management judgment. In determining SSP, we maximize observable inputs and consider a number of data points, including: • the pricing of standalone sales (in the limited instances where available); • the pricing established by management when setting prices for deliverables that are intended to be sold on a standalone basis; • contractually stated prices for deliverables that are intended to be sold on a standalone basis; • other pricing factors, such as the geographical region in which the products are sold and expected discounts based on the customer size and type. Determining SSP for performance obligations which we never sell separately also requires significant judgment. In estimating the SSP in these circumstances, we consider the likely price that would have resulted from established pricing practices had the deliverable been offered separately and the prices a customer would likely be willing to pay. We only include estimated amounts in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. We reduce transaction prices for estimated returns and other allowances that represent variable consideration under ASU No. 2014-09, Revenue from Contracts with Customers (“ ASC 606”) and record a corresponding refund liability as a component of accrued expenses and other current liabilities. Other forms of contingent revenue or variable consideration are infrequent. While not a common practice for us, in the event we grant the customer the option to acquire additional products or services in an arrangement, we consider if the option provides a material right to the customer that it would not receive without entering into the contract (e.g., an incremental discount compared to the range of discounts typically given for similar products or services). If a material right is deemed to exist, we account for the option as a distinct performance obligation and recognize revenue when those future products or services are transferred or when the option expires. We also record as revenue all amounts billed to customers for shipping and handling costs and record the actual shipping costs as a component of cost of revenues. Reimbursements received from customers for out-of-pocket expenses are recorded as revenues, with related costs recorded as cost of revenues. We present revenues net of any taxes collected from customers and remitted to government authorities. Our contracts rarely contain significant financing components as payments from customers are due within a short period from when our performance obligations are satisfied. We are applying the practical expedient for the deferral of sales commissions and other contract acquisition costs, which are expensed as incurred, because the amortization period would be one year or less. Allowance for Sales Returns and Exchanges We maintain allowances for estimated potential sales returns and exchanges from our customers, which represents variable consideration under ASC 606. We record a provision for estimated returns and other allowances as a reduction of revenues in the same period that related revenues are recorded based on historical experience and specific customer analysis. Use of management estimates is required in connection with establishing and maintaining a sales allowance for expected returns and other credits. The allowance also includes rebates offered through our partner program. If actual returns differ from the estimates, additional allowances could be required. The following table sets forth the activity in the allowance for sales returns and exchanges for the years ended December 31, 2020, 2019, and 2018 (in thousands): Year Ended December 31, 2020 2019 2018 Allowance for sales returns and exchanges – beginning of year $ 8,230 $ 9,003 $ 9,916 Additions and adjustments to the allowance 10,746 15,999 12,121 Deductions against the allowance (9,670) (16,772) (13,034) Allowance for sales returns and exchanges – end of year $ 9,306 $ 8,230 $ 9,003 The allowance for sales returns and exchanges reflects an estimate of amounts invoiced that will not be collected, as well as other allowances and credits that have been or are expected to offset the trade receivables. The allowance for sales returns and exchanges is recorded as a component of accrued expenses and other current liabilities as of December 31, 2018, December 31, 2019 and December 31, 2020. Allowances for Doubtful Accounts We maintain allowances for estimated losses from bad debt resulting from the inability of our customers to make required payments for products or services. When evaluating the adequacy of the allowances, we analyze accounts receivable balances, historical bad debt experience, customer concentrations, customer credit worthiness, and current economic trends. To date, actual bad debts have not differed materially from management’s estimates. The following table sets forth the activity in the allowance for doubtful accounts for the years ended December 31, 2020, 2019, and 2018 (in thousands): Year Ended December 31, 2020 2019 2018 Allowance for doubtful accounts – beginning of year $ 958 $ 1,339 $ 1,226 Bad debt expense 1,298 208 119 Reduction in allowance for doubtful accounts (778) (589) (6) Allowance for doubtful accounts – end of year $ 1,478 $ 958 $ 1,339 |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | Translation of Foreign Currencies The functional currency of each of our foreign subsidiaries is the local currency, except for the Irish manufacturing branch and Orad Hi-Tech Systems Ltd. (“Orad”) that we acquired in June 2015. The functional currency for both the Irish manufacturing branch and Orad is the U.S. dollar due to the extensive interrelationship of the operations of the Irish branch, Orad, and the U.S. parent, and the high volume of intercompany transactions among the two subsidiaries and the parent. The assets and liabilities of the subsidiaries whose functional currencies are currencies other than the U.S. dollar are translated into U.S. dollars at the current exchange rate in effect at the balance sheet date. Income and expense items for these entities are translated using rates that approximate those in effect during the period. Cumulative translation adjustments are included in accumulated other comprehensive income (loss), which is reflected as a separate component of stockholders’ deficit. We do not record tax provisions or benefits for the net changes in the foreign currency translation adjustment as we intend to permanently reinvest undistributed earnings in our foreign subsidiaries. The U.S. parent company, Irish manufacturing branch, and Orad, all of whose functional currency is the U.S. dollar, carry certain monetary assets and liabilities denominated in currencies other than the U.S. dollar. These assets and liabilities typically include cash, accounts receivable, and intercompany operating balances denominated in foreign currencies. These assets and liabilities are remeasured into the U.S. dollar at the current exchange rate in effect at the balance sheet date. Foreign currency transaction and remeasurement gains and losses are included within marketing and selling expenses in the results of operations. The U.S. parent company and various other wholly owned subsidiaries have long-term intercompany loan balances denominated in foreign currencies that are remeasured into the U.S. dollar at the current exchange rate in effect at the balance sheet date. Such loan balances are not expected to be settled in the foreseeable future. Any gains and losses relating to these loans are included in the accumulated other comprehensive income (loss), which is reflected as a separate component of stockholders’ deficit. We have significant international operations and, therefore, our revenues, earnings, cash flows, and financial position are exposed to foreign currency risk from foreign-currency-denominated receivables, payables, sales and expense transactions, and net investments in foreign operations. We derive more than half of our revenues from customers outside the United States. The business is, for the most part, transacted through international subsidiaries and generally in the currency of the end-user customers. Therefore, we are exposed to the risks that changes in foreign currency could adversely affect our revenues, net income (loss), cash flow, and financial position. Foreign currency transaction and remeasurement losses and gains are included within marketing and selling expenses in the results of operations. For the year ended December 31, 2020, 2019, and 2018 we recorded net losses of $0.4 million, $0.6 million, and $0.5 million respectively, that resulted from foreign currency denominated transactions and the revaluation of foreign currency denominated assets and liabilities. |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash, Cash Equivalents and Marketable SecuritiesWe measure cash equivalents and marketable securities at fair value on a recurring basis. The cash equivalents and marketable securities consist primarily of money market investments, mutual funds, and insurance contracts held in deferred compensation plans. The money market investments and mutual funds held in our deferred compensation plan in the U.S. are reported at fair value within other current assets using quoted market prices with the gains and losses included as other income (expense) in our statement of operations. The insurance contracts held in the deferred compensation plans for employees in Israel and Germany are reported at fair value within other long-term assets using other observable inputs. Other than the investments held in our deferred compensation plans, we held no marketable securities at December 31, 2020 or 2019. |
Concentration of Credit Risk [Policy Text Block] | Concentration of Credit Risk Financial instruments that potentially subject us to concentrations of credit risk consist of cash, cash equivalents, restricted cash, and accounts receivable. We place our cash and cash equivalents with financial institutions that management believes to be of high credit quality. Concentrations of credit risk with respect to trade receivables are limited due to the large number of customers that make up our customer base and their dispersion across different regions. No individual customer accounted for 10% or more of our total net revenues or net accounts receivable in the periods presented. |
Inventory, Policy [Policy Text Block] | Inventories Inventories are stated at the lower of cost (determined on a first-in, first-out basis) or net realizable value. Management regularly reviews inventory quantities on hand and writes down inventory to our realizable value to reflect estimated obsolescence or lack of marketability based on assumptions about future inventory demand and market conditions. Inventory in the digital-media market, including our inventory, is subject to rapid technological change or obsolescence; therefore, utilization of existing inventory may differ from our estimates. |
Property, Plant and Equipment, Policy [Policy Text Block] | Property and Equipment Property and equipment is recorded at cost and depreciated using the straight-line method over the estimated useful life of the asset. We typically depreciate our property and equipment using the following minimum and maximum useful lives: Depreciable Life Minimum Maximum Computer and video equipment and software, including internal use software 2 years 5 years Manufacturing tooling and testbeds 3 years 5 years Office equipment 3 years 5 years Furniture, fixtures, and other 3 years 8 years We capitalize certain development costs incurred in connection with our internal use software. Costs incurred in the preliminary stages of development are expensed as incurred. Once an application has reached the development stage, internal and external costs, if direct, are capitalized until the software is substantially complete and ready for its intended use. Capitalized costs are recorded as part of property and equipment. Maintenance and training costs are expensed as incurred. Internal use software is amortized on a straight-line basis over its estimated useful life, generally three years. Leasehold improvements are amortized over the shorter of the useful life of the improvement or the remaining term of the lease. Expenditures for maintenance and repairs are expensed as incurred. Upon retirement or other disposition of assets, the cost and related accumulated depreciation are eliminated from the accounts and the resulting gain or loss is reflected in “other income, net” in the results of operations. |
Acquisition-Related Intangible Assets and Goodwill Policy [Policy Text Block] | Acquisition-Related Intangible Assets and Goodwill Acquisition-related intangible assets consisted of customer relationships, developed technology, trade names, and non-compete agreements. These assets were determined to have either finite or indefinite lives. For finite-lived intangible assets, amortization was straight-line over the estimated useful lives of such assets, which are generally two years to 12 years. Straight-line We account for goodwill under ASU No. 2017-04, Simplifying the Test for Goodwill Impairment |
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | Long-Lived Assets We periodically evaluate our long-lived assets for events and circumstances that indicate a potential impairment. A long-lived asset is assessed for impairment when the undiscounted expected future cash flows derived from that asset are less than its carrying value. The cash flows used for this analysis take into consideration a number of factors including past operating results, budgets and economic projections, market trends, and product development cycles. The amount of any impairment would be equal to the difference between the estimated fair value of the asset, based on a discounted cash flow analysis, and its carrying value. |
Advertising Cost [Policy Text Block] | Advertising Expenses All advertising costs are expensed as incurred and are classified as marketing and selling expenses. Advertising expenses were not material in the periods presented. |
Research, Development, and Computer Software, Policy [Policy Text Block] | Research and Development Costs Research and development costs are expensed as incurred. Development costs for software to be sold that are incurred subsequent to the establishment of technological feasibility, but prior to the general release of the product, are capitalized. Upon general release, these costs are amortized using the straight-line method over the expected life of the related products, generally 12 to 36 months. The straight-line method generally results in approximately the same amount of expense as that calculated using the ratio that current period gross product revenues bear to total anticipated gross product revenues. We periodically evaluate the assets, considering a number of business and economic factors, to determine if an impairment exists. No amounts have been capitalized during 2020, 2019, and 2018 as the costs incurred subsequent to the establishment of technological feasibility have not been material. |
Income Tax, Policy [Policy Text Block] | Income Taxes We account for income taxes using an asset and liability approach that requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in our financial statements or tax returns. We record deferred tax assets and liabilities based on the net tax effects of tax credits, operating loss carryforwards, and temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes compared to the amounts used for income tax purposes. Deferred tax assets are regularly reviewed for recoverability with consideration for such factors as historical losses, projected future taxable income, and the expected timing of the reversals of existing temporary differences. We are required to record a valuation allowance when it is more likely than not that some portion or all of the deferred tax assets will not be realized. We account for uncertainty in income taxes recognized in our financial statements by applying a two-step process to determine the amount of tax benefit to be recognized. First, the tax position must be evaluated to determine the likelihood that it will be sustained upon examination by the taxing authorities, based on the technical merits of the position. If the tax position is deemed more-likely-than-not to be sustained, the tax position is then assessed to determine the amount of benefit to recognize in the financial statements. The amount of the benefit that may be recognized is the largest amount that has a greater than 50% likelihood of being realized upon ultimate settlement. The provision for income taxes includes the effects of any resulting tax reserves (“unrecognized tax benefits”) that are considered appropriate, as well as the related net interest and penalties. |
Share-based Payment Arrangement [Policy Text Block] | Accounting for Stock-Based Compensation Our stock-based employee compensation plans allow us to grant stock awards, options, or other equity-based instruments, or a combination thereof, as part of our overall compensation strategy. For stock-based awards granted, we record stock-based compensation expense based on the grant date fair value over the requisite service periods for the individual awards, which generally equal the vesting periods. The vesting of stock-based award grants may be based on time, performance conditions, market conditions, or a combination of time, performance and market conditions. We account for forfeitures when they occur. |
Standard Product Warranty, Policy [Policy Text Block] | Product Warranties We provide warranties on externally sourced and internally developed hardware. The warranty period for all of our products is generally 90 days to one year, but can extend up to five years depending on the manufacturer’s warranty or local law. For internally developed hardware and in cases where the warranty granted to customers for externally sourced hardware is greater than that provided by the manufacturer, we record an accrual for the related liability based on historical trends and actual material and labor costs. At the end of each quarter, we reevaluate our estimates to assess the adequacy of the recorded warranty liabilities and adjusts the accrued amounts accordingly. |
Earnings Per Share, Policy [Policy Text Block] | Computation of Net Income (Loss) Per Share Net income (loss) per share is presented for both basic earnings per share (“Basic EPS”) and diluted earnings per share (“Diluted EPS”). Basic EPS is based on the weighted-average number of common shares outstanding during the period, excluding non-vested restricted stock held by employees. Diluted EPS is based on the weighted-average number of common and potential common shares outstanding during the period. Potential common shares result from the assumed exercise of outstanding stock options and non-vested restricted stock and restricted stock units, the proceeds and remaining unrecorded compensation expense of which are then assumed to have been used to repurchase outstanding common stock using the treasury stock method. For periods when we report a loss, all potential common stock is considered anti-dilutive. For periods when we report net income, potential common shares with combined purchase prices and unamortized compensation costs in excess of our average common stock fair value for the related period or that are contingently issuable are considered anti-dilutive. Our convertible senior notes were issued in 2015, and we apply the treasury stock method in measuring the dilutive impact of those potential common shares to be issued. |
Accounting for Restructuring Plans [Policy Text Block] | Accounting for Restructuring Plans We record facility-related and contract termination restructuring charges in accordance with ASC Topic 420, Liabilities: Exit or Disposal Cost Obligations . Based on our policies for the calculation and payment of severance benefits, we account for employee-related restructuring charges as an ongoing benefit arrangement in accordance with ASC Topic 712, Compensation - Nonretirement Postemployment Benefits |
Related Party Transactions Disclosure [Text Block] | Related Party Transactions From time to time we enter into arrangements with parties which may be affiliated with us, executive officers, and members of our board of directors. These transactions are primarily comprised of sales transactions in the normal course of business and are immaterial to the financial statements for all periods presented. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recently Adopted Accounting Pronouncement In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update No. 2016-13 ("ASU 2016-13") " Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ", which requires the measurement and recognition of expected credit losses for financial assets held at amortized cost. ASU 2016-13 replaces the existing incurred loss impairment model with an expected loss model which requires the use of forward-looking information to calculate credit loss estimates. It also eliminates the concept of other-than-temporary impairment and requires credit losses related to certain available-for-sale debt securities to be recorded through an allowance for credit losses rather than as a reduction in the amortized cost basis of the securities. These changes result in earlier recognition of credit losses. We adopted ASU 2016-13 using the modified retrospective approach as of January 1, 2020. The cumulative effect upon adoption was not material to our consolidated financial statements. Recent Accounting Pronouncements to be Adopted In December 2019, the Financial Accounting Standards Board (“FASB”) issued ASU 2019-12, Simplifying the Accounting for Income Taxes (“ASU 2019-12”). ASU 2019-12 is intended to enhance and simplify aspects of the income tax accounting guidance in ASC 740 as part of the FASB's simplification initiative. This guidance is effective for fiscal years and interim periods within those years beginning after December 15, 2020 with early adoption permitted. The Company has determined the impact this guidance may have on its consolidated financial statements and related disclosures is immaterial. In March 2020, the FASB issued ASU 2020-04, Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”). ASU 2020-04 is intended to provide temporary optional expedients and exceptions to the U.S. GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burdens related to the expected market transition from the London Interbank Offered Rate (LIBOR) and other interbank offered rates to alternative reference rates. This guidance is effective beginning on March 12, 2020, and the Company may elect to apply the amendments prospectively through December 31, 2022. The Company is currently evaluating the impact this guidance may have on its consolidated financial statements and related disclosures. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Allowance for Sales Returns and Exchanges (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Allowance for sales returns and exchanges [Abstract] | |
Allowance for Sales Returns and Exchanges [Table Text Block] | The following table sets forth the activity in the allowance for sales returns and exchanges for the years ended December 31, 2020, 2019, and 2018 (in thousands): Year Ended December 31, 2020 2019 2018 Allowance for sales returns and exchanges – beginning of year $ 8,230 $ 9,003 $ 9,916 Additions and adjustments to the allowance 10,746 15,999 12,121 Deductions against the allowance (9,670) (16,772) (13,034) Allowance for sales returns and exchanges – end of year $ 9,306 $ 8,230 $ 9,003 |
Allowance for Doubtful Accounts [Table Text Block] | The following table sets forth the activity in the allowance for doubtful accounts for the years ended December 31, 2020, 2019, and 2018 (in thousands): Year Ended December 31, 2020 2019 2018 Allowance for doubtful accounts – beginning of year $ 958 $ 1,339 $ 1,226 Bad debt expense 1,298 208 119 Reduction in allowance for doubtful accounts (778) (589) (6) Allowance for doubtful accounts – end of year $ 1,478 $ 958 $ 1,339 |
Property Plant and Equipment Useful Lives [Table Text Block] | Property and equipment is recorded at cost and depreciated using the straight-line method over the estimated useful life of the asset. We typically depreciate our property and equipment using the following minimum and maximum useful lives: Depreciable Life Minimum Maximum Computer and video equipment and software, including internal use software 2 years 5 years Manufacturing tooling and testbeds 3 years 5 years Office equipment 3 years 5 years Furniture, fixtures, and other 3 years 8 years |
NET INCOME PER SHARE (Tables)
NET INCOME PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Antidilutive Securities Excluded From Computation of Earnings Per Share | The potential common shares that were considered anti-dilutive securities were excluded from the diluted earnings per share calculations for the relevant periods either because the sum of the exercise price per share and the unrecognized compensation cost per share was greater than the average market price of our common stock for the relevant periods, or because they were considered contingently issuable. The contingently issuable potential common shares result from certain stock options and restricted stock units granted to our employees that vest based on performance conditions, market conditions, or a combination of performance and market conditions. When there is a loss from continuing operations, potential common shares should not be included in the computation of Diluted EPS because the exercise or conversion of any potential shares increases the number of shares in the denominator and results in a lower loss per share. Therefore, all outstanding stock options and restricted stock units at December 31, 2018 are anti-dilutive and not included in the EPS calculation. The following table sets forth (in thousands) common shares considered anti-dilutive securities at December 31, 2020, 2019 and 2018. December 31, 2020 December 31, 2019 December 31, 2018 Options 4 565 892 Non-vested restricted stock units 737 2,642 2,945 Anti-dilutive potential common shares 741 3,207 3,837 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Financial assets and liabilities measured at fair value on a recurring basis | The following tables summarize our deferred compensation investments measured at fair value on a recurring basis (in thousands): Fair Value Measurements at Reporting Date Using December 31, Quoted Prices in Significant Significant Financial Assets: Deferred compensation investments $ 522 $ 282 $ 240 $ — Fair Value Measurements at Reporting Date Using December 31, 2019 Quoted Prices in Significant Significant Financial Assets: Deferred compensation investments $ 1,156 $ 338 $ 818 $ — |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories consisted of the following at December 31, 2020 and 2019 (in thousands): December 31, 2020 2019 Raw materials $ 8,223 $ 9,036 Work in process 353 371 Finished goods 17,992 19,759 Total $ 26,568 $ 29,166 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Table Text Block] | Property and equipment consisted of the following at December 31, 2020 and 2019 (in thousands): December 31, 2020 2019 Computer and video equipment and software $ 137,489 $ 133,695 Manufacturing tooling and testbeds 4,781 4,209 Office equipment 4,957 4,963 Furniture, fixtures and other 10,133 10,425 Leasehold improvements 36,784 37,440 194,144 190,732 Less: accumulated depreciation and amortization 177,330 171,152 Total $ 16,814 $ 19,580 |
OTHER LONG-TERM LIABILITIES (Ta
OTHER LONG-TERM LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Other Liabilities Disclosure [Abstract] | |
Other long-term liabilities | Other long-term liabilities consisted of the following at December 31, 2020 and 2019 (in thousands): December 31, 2020 2019 Finance lease liabilities 472 — Deferred compensation 5,818 5,186 Other long-term liabilities 1,496 460 Total $ 7,786 $ 5,646 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future minimum lease commitments under non-cancelable leases | The future minimum lease commitments under non-cancelable leases at December 31, 2020 were as follows (in thousands): Year Ending December 31, Operating Leases 2021 $ 8,558 2022 $ 7,259 2023 $ 6,195 2024 $ 5,383 2025 $ 5,513 Thereafter $ 11,776 Total $ 44,684 |
Product warranty accrual activity | The following table sets forth the activity in the product warranty accrual account for the years ended December 31, 2020, 2019, and 2018 (in thousands): Accrual balance at January 1, 2018 $ 2,545 Accruals for product warranties 858 Cost of warranty claims (1,697) Accrual balance at December 31, 2018 1,706 Accruals for product warranties 973 Cost of warranty claims (1,342) Accrual balance at December 31, 2019 1,337 Accruals for product warranties 1,065 Cost of warranty claims (1,307) Accrual balance at December 31, 2020 $ 1,095 |
CAPITAL STOCK (Tables)
CAPITAL STOCK (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Stock option plans | Information with respect to options granted under all stock option plans for the year ended December 31, 2020 was as follows: Total Number of Options Weighted- Weighted- Aggregate Options Outstanding at December 31, 2017 2,290,017 $9.65 2.31 — Granted — — Exercised — — Forfeited or Expired (1,398,125) 10.42 Options Outstanding at December 31, 2018 891,892 $8.46 1.55 — Granted — — Exercised (70,006) 7.39 Forfeited or Expired (256,886) 10.70 Options outstanding at December 31, 2019 565,000 $7.57 1.17 $ 571 Granted — — Exercised (319,000) 7.65 Forfeited or Expired — — Options outstanding at December 31, 2020 246,000 $7.48 0.44 $ 1,358 Exercisable at: December 31, 2018 891,892 $8.46 1.55 $— December 31, 2019 565,000 $7.57 1.17 $571 December 31, 2020 246,000 $7.48 0.44 $1,358 |
Non-vested restricted stock and restricted stock units | Information with respect to non-vested time-based restricted stock units for the year ended December 31, 2020 was as follows: Number of Restricted Stock Units Weighted- Shares Retained to Cover Statutory Minimum Withholding Taxes Outstanding at December 31, 2017 1,809,138 $5.49 Granted 1,783,728 5.08 Vested (688,106) 5.61 213,531 Forfeited (926,084) 5.42 Outstanding at December 31, 2018 1,978,676 $5.12 Granted 1,320,536 7.33 Vested (991,819) 5.16 307,005 Forfeited (219,460) 5.98 Outstanding at December 31, 2019 2,087,933 $6.41 Granted 1,518,714 7.20 Vested (1,193,553) 6.33 403,798 Forfeited (298,215) 6.52 Outstanding at December 31, 2020 2,114,879 7.01 |
Employee stock purchase plan | The following table sets forth the weighted-average key assumptions and fair value results for shares issued under the ESPP during the years ended December 31, 2020, 2019, and 2018: Year Ended December 31, 2020 2019 2018 Expected dividend yield 0.00% 0.00% 0.00% Risk-free interest rate 0.82% 2.37% 1.85% Expected volatility 72.1% 48.6% 55.3% Expected life (in years) 0.50 0.49 0.50 Weighted-average fair value of shares issued (per share) $1.40 $1.04 $0.94 The following table sets forth the quantities and average prices of shares issued under the ESPP for the years ended December 31, 2020, 2019, and 2018: Year Ended December 31, 2020 2019 2018 Shares issued under the ESPP 61,750 69,179 117,653 Average price of shares issued $8.67 $7.48 $4.22 |
Allocated share-based compensation expense | Stock-based compensation was included in the following captions in our consolidated statements of operations for the years ended December 31, 2020, 2019, and 2018, respectively (in thousands): Year Ended December 31, 2020 2019 2018 Share-based compensation expense by type: Stock Options $ — $ — $ — Time-based Restricted Stock Units 8,340 5,900 4,011 Performance-based Restricted Stock Units 2,211 1,964 2,146 ESPP 113 94 101 Total Share-based compensation expense $ 10,664 $ 7,958 $ 6,258 Year Ended December 31, 2020 2019 2018 Cost of products revenues $ 513 $ 343 $ 128 Cost of service revenues 826 274 194 Research and development expenses 1,725 1,068 667 Marketing and selling expenses 2,176 1,797 1,540 General and administrative expenses 5,424 4,476 3,729 Total $ 10,664 $ 7,958 $ 6,258 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Before Income Taxes and Components of Income Tax Provision | Income (loss) before income taxes and the components of the income tax provision (benefit) consisted of the following for the years ended December 31, 2020, 2019, and 2018 (in thousands): Year Ended December 31, 2020 2019 2018 Income (loss) from operations before income taxes: United States $ 9,182 $ 4,311 $ (1,940) Foreign 3,252 (1,786) (7,463) Total income (loss) from operations before income taxes $ 12,434 $ 2,525 $ (9,403) Provision for (Benefit from) income taxes: Current tax expense (benefit): Federal $ — $ (4) $ (1) State 133 58 59 Foreign benefit of net operating losses (883) (462) (206) Other foreign 1,295 1,632 1,372 Total current tax expense 545 1,224 1,224 Deferred tax (benefit) expense: Federal — — — Other foreign 827 (6,300) 47 Total deferred tax (benefit) expense 827 (6,300) 47 Total provision for (benefit from) income taxes $ 1,372 $ (5,076) $ 1,271 |
Net Deferred Tax Assets (Liabilities) | Net deferred tax assets (liabilities) consisted of the following at December 31, 2020 and 2019 (in thousands): December 31, 2020 2019 Deferred tax assets: Tax credit and net operating loss carryforwards $ 254,745 $ 267,049 Allowances for bad debts 47 69 Difference in accounting for: Revenues 6,659 2,651 Costs and expenses 23,217 19,400 Inventories 1,466 2,282 Acquired intangible assets 62 187 Long-term lease liabilities 7,432 7,605 Gross deferred tax assets 293,628 299,243 Valuation allowance (278,785) (281,568) Deferred tax assets after valuation allowance 14,843 17,675 Deferred tax liabilities: Difference in accounting for: Revenues — (1,052) Costs and expenses (626) (1,527) Inventories (92) — Basis difference convertible notes — (326) Right of use asset (7,324) (7,291) Gross deferred tax liabilities (8,042) (10,196) Net deferred tax assets $ 6,801 $ 7,479 Recorded as: Deferred tax assets, net 6,801 7,479 Deferred tax liabilities, net — — Net deferred tax assets $ 6,801 $ 7,479 |
Reconciliation of Income Tax Provision to Statutory Rate | The following table sets forth a reconciliation of our income tax provision (benefit) to the statutory U.S. federal tax amount for the years ended December 31, 2020, 2019, and 2018: Year Ended December 31, 2020 2019 2018 Statutory tax $ 2,611 $ 530 $ (1,975) Tax credits utilized and expired 1,356 815 1,277 Foreign operations 981 921 1,854 Change in uncertain tax positions (474) 11,185 58 Non-deductible expenses and other 425 2,474 301 Change in valuation allowance (3,527) (21,001) (244) Provision for (benefit from) income taxes $ 1,372 $ (5,076) $ 1,271 |
Reconciliation of Unrecognized Tax Benefits | The following table sets forth a reconciliation of the beginning and ending amounts of unrecognized tax benefits for the years ended December 31, 2020, 2019, and 2018 (in thousands): Unrecognized tax benefits at January 1, 2018 $ 1,841 Decreases for tax positions taken during a prior period (78) Unrecognized tax benefits at December 31, 2018 1,763 Increases for tax positions taken during a prior period 11,248 Unrecognized tax benefits at December 31, 2019 13,011 Decreases for tax positions taken during a prior period (818) Unrecognized tax benefits at December 31, 2020 $ 12,193 |
RESTRUCTURING COSTS AND ACCRU_2
RESTRUCTURING COSTS AND ACCRUALS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Restructuring Cost and Reserve [Line Items] | |
Schedule of Restructuring and Related Costs [Table Text Block] | Restructuring Summary The following table sets forth restructuring expenses recognized for the years ended December 31, 2020, 2019, and 2018 (in thousands): Year Ended December 31, 2020 2019 2018 Employee $ 4,949 $ 599 $ 3,641 Facility 97 5 (104) Total facility and employee charges 5,046 604 3,537 Other — 25 1,611 Total restructuring charges, net $ 5,046 $ 629 $ 5,148 The following table sets forth the activity in the restructuring accruals for the years ended December 31, 2020, 2019, and 2018 (in thousands). Employee- Facilities- Total Accrual balance at December 31, 2017 $ 1,998 $ 2,479 $ 4,477 Restructuring charges and revisions 3,641 (104) 3,537 Accretion — 103 103 Cash payments (3,099) (2,159) (5,258) Foreign exchange impact on ending balance 1 (1) — Accrual balance at December 31, 2018 $ 2,541 $ 318 $ 2,859 Restructuring charges and revisions 599 — 599 Accretion — — — Cash payments (2,964) — (2,964) Foreign exchange impact on ending balance (21) — (21) Effect of adoption of ASC 842 — (318) (318) Accrual balance at December 31, 2019 $ 155 $ — $ 155 Restructuring charges and revisions 4,949 — 4,949 Accretion — — — Cash payments (1,461) — (1,461) Foreign exchange impact on ending balance 44 — 44 Accrual balance at December 31, 2020 3,687 — 3,687 Less: current portion 3,687 — 3,687 Long-term accrual balance as of December 31, 2020 $ — $ — $ — |
PRODUCT AND GEOGRAPHIC INFORM_2
PRODUCT AND GEOGRAPHIC INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Reconciliation of Revenue from Segments to Consolidated | The following is a summary of our revenues by type for the years ended December 31, 2020, 2019, and 2018 (in thousands): Year Ended December 31, 2020 2019 2018 Video products and solutions net revenues $ 77,232 $ 131,225 $ 132,276 Audio products and solutions net revenues 63,530 76,220 72,831 Products and solutions net revenues 140,762 207,445 205,107 Subscription services 72,831 45,181 35,888 Support services 124,175 130,443 139,205 Professional services, training and other services 22,698 28,719 33,082 Services net revenues 219,704 204,343 208,175 Total net revenues $ 360,466 $ 411,788 $ 413,282 |
Schedule of Revenues and Long-lived Assets By Geographic Areas | The following table sets forth our revenues by geographic region for the years ended December 31, 2020, 2019, and 2018 (in thousands): Year Ended December 31, 2020 2019 2018 Revenues: United States $ 143,518 $ 152,012 $ 150,877 Other Americas 24,026 32,783 27,494 Europe, Middle East and Africa 142,370 161,764 172,238 Asia-Pacific 50,552 65,229 62,673 Total net revenues $ 360,466 $ 411,788 $ 413,282 |
Contract with Customer, Asset and Liability [Table Text Block] | Contract Asset Contract asset activity for the years ended December 31, 2020 and 2019 was as follows (in thousands): December 31, 2020 December 31, 2019 Contract asset at January 1, 2020 $ 19,494 $ 16,513 Revenue in excess of billings 32,005 30,715 Customer billings (32,920) (27,734) Contract asset at December 31, 2020 $ 18,579 $ 19,494 The decrease in contract assets during the year ended December 31, 2020 is due to the timing of payments due under our enterprise network agreements which predominately are payable annually, whereas performance obligations are fulfilled on a continuous basis partially offset by continued growth in our subscription offerings. |
Deferred Revenue, by Arrangement, Disclosure [Table Text Block] | Deferred Revenue Deferred revenue activity for the years ended December 31, 2020 and 2019 was as follows (in thousands): December 31, 2020 December 31, 2019 Deferred revenue at January 1, 2020 $ 97,901 $ 99,601 Billings deferred 72,633 76,665 Recognition of prior deferred revenue (71,276) (78,365) Deferred revenue at December 31, 2020 $ 99,258 $ 97,901 A summary of the performance obligations included in deferred revenue as of December 31, 2020 is as follows (in thousands): December 31, 2020 Product $ 6,636 Subscription 5,736 Support Contracts 75,555 Implied Maintenance Release PCS 8,426 Professional services, training and other 2,905 Deferred revenue at December 31, 2020 $ 99,258 Remaining Performance Obligations For transaction prices allocated to remaining performance obligations, we apply practical expedients and do not disclose quantitative or qualitative information for remaining performance obligations (i) that have original expected durations of one year or less and (ii) where we recognize revenue equal to what we have the right to invoice and that amount corresponds directly with the value to the customer of our performance to date. We have remaining performance obligations of $8.4 million attributable to Implied Maintenance Release PCS recorded in deferred revenue as of December 31, 2020. We expect to recognize revenue for these remaining performance obligations of $3.4 million, $2.1 million, $1.4 million, $0.9 million, and $0.5 million for the years ended December 31, 2021, 2022, 2023, 2024, and 2025, respectively, and $0.1 million thereafter. |
LONG-TERM DEBT AND CREDIT AGREE
LONG-TERM DEBT AND CREDIT AGREEMENT Carrying Value of Long Term Debt (Tables) - USD ($) | May 13, 2019 | Jan. 22, 2019 | Dec. 15, 2017 | Dec. 31, 2020 | Jun. 15, 2015 |
Debt Instrument [Line Items] | |||||
Extinguishment of Debt, Amount | $ 74,000,000 | $ 3,900,000 | $ 2,000,000 | $ 16,200,000 | |
Schedule of Long-term Debt Instruments [Table Text Block] | Long-term debt consisted of the following (in thousands): December 31, 2020 December 31, 2019 Term loan, net of unamortized debt issuance costs of $2,579 at December 31, 2020 and $3,334 at December 31, 2019, respectively $ 198,629 $ 200,105 Notes, net of unamortized original issue discount and debt issuance costs of $0 at December 31, 2020 and $680 at December 31, 2019, respectively — 28,187 PPP Loan 7,800 — Other long-term debt 1,271 1,296 Total debt 207,700 229,588 Less: current portion 4,941 30,554 Total long-term debt $ 202,759 $ 199,034 | ||||
Schedule of Maturities of Long-term Debt [Table Text Block] | The following table summarizes the maturities of our borrowing obligations as of December 31, 2020 (in thousands): Fiscal Year Term Loan PPP Loan Other Long-Term Debt Total 2021 $ 4,781 $ — $ 160 $ 4,941 2022 6,375 7,800 172 14,347 2023 190,052 — 184 190,236 2024 — — 197 197 2025 — — 212 212 Thereafter — — 346 346 Total before unamortized discount 201,208 7,800 1,271 210,279 Less: unamortized discount and issuance costs 2,579 — — 2,579 Less: current portion of long-term debt 4,781 — 160 4,941 Total long-term debt $ 193,848 $ 7,800 $ 1,111 $ 202,759 | ||||
Debt Instrument, Discounted Repurchase Amount | $ 982.5 | ||||
Debt Instrument, Repurchased Face Amount | $ 1,000 |
QUARTERLY RESULTS (UNAUDITED)_2
QUARTERLY RESULTS (UNAUDITED) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results (Unaudited) | The following information has been derived from unaudited consolidated financial statements that, in the opinion of management, include all normal recurring adjustments necessary for a fair presentation of such information. (In thousands, except per share data) Quarter Ended 2020 2019 Dec. 31 Sept. 30 June 30 Mar. 31 Dec. 31 Sept. 30 June 30 Mar. 31 Net revenues $ 104,301 $ 90,431 $ 79,281 $ 86,453 $ 116,306 $ 93,461 $ 98,701 $ 103,319 Cost of revenues 38,951 32,174 27,719 33,302 43,033 35,603 40,253 40,087 Amortization of intangible assets — — — — — — 1,788 1,950 Gross profit 65,350 58,257 51,562 53,151 73,273 57,858 56,660 61,282 Operating expenses: Research and development 14,902 13,623 13,068 15,425 16,018 14,860 15,180 16,285 Marketing and selling 22,660 19,998 19,690 25,289 26,603 22,334 26,129 24,878 General and administrative 12,908 10,796 10,604 12,744 14,816 12,034 12,722 13,788 Amortization of intangible assets — — — — — — 331 363 Restructuring costs (recoveries), net 4,038 723 140 145 113 229 (269) 558 Total operating expenses 54,508 45,140 43,502 53,603 57,550 49,457 54,093 55,872 Operating income (loss) 10,842 13,117 8,060 (452) 15,723 8,401 2,567 5,410 Interest and other expense, net (3,929) (4,423) (5,498) (5,283) (5,584) (5,519) (13,290) (5,185) Income (loss) before income taxes 6,913 8,694 2,562 (5,735) 10,139 2,882 (10,723) 225 Provision for (benefit from) income taxes (174) 707 717 122 (5,231) (283) — 438 Net income (loss) $ 7,087 $ 7,987 $ 1,845 $ (5,857) $ 15,370 $ 3,165 $ (10,723) $ (213) Net income (loss) per share – basic $ 0.16 $ 0.18 $ 0.04 $ (0.14) $ 0.36 $ 0.07 $ (0.25) $ (0.01) Net income (loss) per share – diluted $ 0.16 $ 0.18 $ 0.04 $ (0.13) $ 0.35 $ 0.07 $ (0.25) $ (0.01) Weighted-average common shares outstanding – basic 44,288 44,019 43,719 43,254 43,060 42,913 42,560 42,046 Weighted-average common shares outstanding – diluted 45,541 44,758 44,180 44,101 43,737 43,674 42,560 42,046 |
BUSINESS Description of Busines
BUSINESS Description of Business (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ 108,367 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Revenue Recognition (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2018 | |
Enacted Corporate Tax | 35.00% | |
New Enacted Corporate Tax Rate | 21.00% | |
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ 108,367 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Allowance for Sales Returns and Exchanges (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Allowance for Sales Returns and Exchanges | $ 9,306 | $ 8,230 | $ 9,003 | $ 9,916 |
Additions to the allowance | 10,746 | 15,999 | 12,121 | |
Deductions against the allowance | $ (9,670) | $ (16,772) | $ (13,034) |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Allowance for doubtful accounts | $ 1,478 | $ 958 | $ 1,339 | $ 1,226 |
Bad debt (recovery) expense | 1,298 | 208 | 119 | |
Increase (reduction) in allowance for doubtful accounts | $ (778) | $ (589) | $ (6) |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Description of Business (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Operating Lease, Right-of-Use Asset | $ 29,430 | $ 29,747 | |
Foreign Currency Transaction and Translation Gains/Losses, Selling and Marketing Expense | $ 400 | $ 600 | $ 500 |
Number of Reporting Units | 1 | ||
Accounts Receivable Percentage Not Attained by Individual Customer | 10.00% | ||
Net Assets | $ (132,900) | ||
Operating Lease, Liability | $ 34,332 | ||
Other Intangible Assets [Member] | Minimum Estimated Useful Life of Intangible Assets [Member] | |||
Finite-Lived Intangible Asset, Useful Life | 2 years | ||
Other Intangible Assets [Member] | Maximum Estimated Useful Life of Intangible Assets [Member] | |||
Finite-Lived Intangible Asset, Useful Life | 12 years | ||
Software Development [Member] | |||
Capitalized software costs, expected life, minimum (in months) | 12 | ||
Capitalized software costs, expected useful life, maximum (in months) | 36 | ||
Minimum [Member] | |||
Extended Product Warranty Description | 90 days | ||
Maximum [Member] | |||
Extended Product Warranty Description | five years |
SUMMARY OF SIGNIFICANT ACCOUN_8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Property, Plant and Equipment (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Computer and video equipment and software [Member] | Minimum [Member] | |
Property, Plant and Equipment, Useful Life | 2 years |
Computer and video equipment and software [Member] | Maximum [Member] | |
Property, Plant and Equipment, Useful Life | 5 years |
Manufacturing tooling and testbeds [Member] | Minimum [Member] | |
Property, Plant and Equipment, Useful Life | 3 years |
Manufacturing tooling and testbeds [Member] | Maximum [Member] | |
Property, Plant and Equipment, Useful Life | 5 years |
Office equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment, Useful Life | 3 years |
Office equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment, Useful Life | 5 years |
Furniture, fixtures and other [Member] | Minimum [Member] | |
Property, Plant and Equipment, Useful Life | 3 years |
Furniture, fixtures and other [Member] | Maximum [Member] | |
Property, Plant and Equipment, Useful Life | 8 years |
Software Development [Member] | |
Internal Use Software, Useful Life | 3 years |
SUMMARY OF SIGNIFICANT ACCOUN_9
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Revenue, Initial Application Period Cumulative Effect Transition (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||
Net revenues | $ 104,301 | $ 90,431 | $ 79,281 | $ 86,453 | $ 116,306 | $ 93,461 | $ 98,701 | $ 103,319 | $ 360,466 | $ 411,788 | $ 413,282 |
Accounts Receivable, after Allowance for Credit Loss, Current | 78,614 | 73,773 | 78,614 | 73,773 | |||||||
Inventory, Net | (26,568) | (29,166) | (26,568) | (29,166) | |||||||
Other Assets, Noncurrent | 5,958 | 6,113 | 5,958 | 6,113 | |||||||
Assets | 305,138 | 304,293 | 305,138 | 304,293 | |||||||
Accrued Liabilities, Current | 42,264 | 36,759 | 42,264 | 36,759 | |||||||
Deferred Revenue, Current | (87,974) | (83,589) | (87,974) | (83,589) | |||||||
Deferred Revenue, Noncurrent | (11,284) | (14,312) | (11,284) | (14,312) | |||||||
Liabilities | (438,062) | (459,378) | (438,062) | (459,378) | |||||||
Retained Earnings (Accumulated Deficit) | (1,168,347) | (1,179,409) | (1,168,347) | (1,179,409) | |||||||
Stockholders' Equity Attributable to Parent | (132,924) | (155,085) | (132,924) | (155,085) | |||||||
Cost of Revenue | 132,146 | 162,713 | 174,118 | ||||||||
Gross profit | 65,350 | 58,257 | 51,562 | 53,151 | 73,273 | 57,858 | 56,660 | 61,282 | 228,320 | 249,075 | 239,164 |
Marketing and selling | 22,660 | 19,998 | 19,690 | 25,289 | 26,603 | 22,334 | 26,129 | 24,878 | 87,637 | 99,944 | 101,273 |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | 12,434 | 2,525 | (9,403) | ||||||||
Net (loss) income | $ 7,087 | $ 7,987 | $ 1,845 | $ (5,857) | $ 15,370 | $ 3,165 | $ (10,723) | $ (213) | $ 11,062 | $ 7,601 | $ (10,674) |
SUMMARY OF SIGNIFICANT ACCOU_10
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES New Accounting Pronouncements Adopted (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Property, Plant and Equipment, Net | $ 16,814 | $ 19,580 |
Operating Lease, Right-of-Use Asset | 29,430 | 29,747 |
Accrued expenses and other current liabilities | 42,264 | 36,759 |
Operating Lease, Liability, Noncurrent | 28,462 | 28,127 |
Other long-term liabilities | $ 7,786 | $ 5,646 |
SUMMARY OF SIGNIFICANT ACCOU_11
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Leases (Details) | Dec. 31, 2020 |
Lessee, Lease, Description [Line Items] | |
Operating Lease, Weighted Average Discount Rate, Percent | 6.00% |
Minimum [Member] | |
Lessee, Lease, Description [Line Items] | |
Lessee, Operating Lease, Term of Contract | 1 year |
Maximum [Member] | |
Lessee, Lease, Description [Line Items] | |
Lessee, Operating Lease, Term of Contract | 7 years |
NET INCOME PER SHARE (Details)
NET INCOME PER SHARE (Details) - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Jun. 15, 2015 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||||||||
Weighted-average common shares outstanding - basic | 44,288 | 44,019 | 43,719 | 43,254 | 43,060 | 42,913 | 42,560 | 42,046 | 43,822 | 42,649 | 41,662 | |
Incremental Common Shares Attributable to Dilutive Effect of Conversion of Debt Securities | 1,056 | 846 | 0 | |||||||||
Anti-dilutive potential common shares (in thousands of shares) | 741 | 3,207 | 3,837 | |||||||||
Weighted-average common shares outstanding - diluted | 45,541 | 44,758 | 44,180 | 44,101 | 43,737 | 43,674 | 42,560 | 42,046 | 44,878 | 43,495 | 41,662 | |
Stock options [Member] | ||||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||||||||
Anti-dilutive potential common shares (in thousands of shares) | 4 | 565 | 892 | |||||||||
Non-vested restricted stock units [Member] | ||||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||||||||
Anti-dilutive potential common shares (in thousands of shares) | 737 | 2,642 | 2,945 | |||||||||
Convertible Debt [Member] | ||||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||||||||
Long-term Debt, Gross | $ 125 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Convertible Notes Payable | $ 0 | $ 28,187 |
Fair Value, Recurring [Member] | ||
Financial Assets: | ||
Deferred compensation assets | 522 | 1,156 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Financial Assets: | ||
Deferred compensation assets | 282 | 338 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Financial Assets: | ||
Deferred compensation assets | 240 | 818 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Financial Assets: | ||
Deferred compensation assets | 0 | 0 |
Acquired Individual Deferred Compensation Arrangement [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred Compensation Plan Assets | $ 200 | $ 800 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Inventory [Line Items] | ||
Raw materials | $ 8,223 | $ 9,036 |
Work in process | 353 | 371 |
Finished Goods | 17,992 | 19,759 |
Total inventory | 26,568 | 29,166 |
Finished goods, consigned | $ 1,200 | $ 1,500 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 194,144 | $ 190,732 |
Accumulated depreciation and amortization | 177,330 | 171,152 |
Property, Plant and Equipment, Net | 16,814 | 19,580 |
Capitalized Computer Software, Additions | 1,600 | 2,200 |
Capitalized Computer Software, Amortization | 3,100 | 1,900 |
Annual depreciation and amortization | $ 8,500 | 9,200 |
Internal Use Software [Domain] | ||
Property, Plant and Equipment [Line Items] | ||
Capitalized Computer Software, Useful Life | 3 years | |
Computer and video equipment and software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 137,489 | 133,695 |
Manufacturing tooling and testbeds [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 4,781 | 4,209 |
Office equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 4,957 | 4,963 |
Furniture, fixtures and other [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 10,133 | 10,425 |
Leasehold improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 36,784 | $ 37,440 |
INTANGIBLE ASSETS AND GOODWIL_2
INTANGIBLE ASSETS AND GOODWILL (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Jun. 23, 2015USD ($) | |
Finite-Lived Intangible Assets [Line Items] | ||||
Number of Reporting Units | 1 | |||
Net Assets | $ 132,900 | |||
Amortization of Finite-Lived Intangible Assets | 0 | $ 4,400 | $ 9,300 | |
Goodwill and intangible assets impairments [Abstract] | ||||
Goodwill | $ 32,643 | $ 32,643 | ||
Business Combination, Recognized Goodwill | $ 32,600 |
LEASES (Details)
LEASES (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Lessee, Lease, Description [Line Items] | ||||
Operating Leases, Future Minimum Payments Due, Next Twelve Months | $ 8,558,000 | |||
Lessee, Operating Lease, Liability, Payments, Remainder of Fiscal Year | $ 7,774,000 | |||
Operating Lease, Weighted Average Discount Rate, Percent | 6.00% | |||
Operating Lease, Weighted Average Remaining Lease Term | 6 years | |||
Lease, Cost | $ 9,100,000 | |||
Operating Lease, Payments | 9,000,000 | |||
Operating Leases, Rent Expense, Net | 10,200,000 | $ 10,300,000 | $ 9,500,000 | |
Lessee, Operating Lease, Liability, Payments, Due in Rolling Year Two | 6,603,000 | |||
Lessee, Operating Lease, Liability, Payments, Due in Rolling Year Three | 5,665,000 | |||
Lessee, Operating Lease, Liability, Payments, Due in Rolling Year Four | 4,946,000 | |||
Lessee, Operating Lease, Liability, Payments, Due in Rolling Year Five | 5,071,000 | |||
Lessee, Operating Lease, Liability, Payments, Due after Rolling Year Five | 11,758,000 | |||
Lessee, Operating Lease, Liability, Payments, Due | 41,817,000 | |||
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | (7,485,000) | |||
Operating Lease, Liability | 34,332,000 | |||
Operating Lease, Liability, Current | 5,870,000 | 6,645,000 | ||
Operating Lease, Liability, Noncurrent | 28,462,000 | 28,127,000 | ||
Operating Leases, Future Minimum Payments, Due in Two Years | 7,259,000 | |||
Operating Leases, Future Minimum Payments, Due in Three Years | 6,195,000 | |||
Operating Leases, Future Minimum Payments, Due in Four Years | 5,383,000 | |||
Operating Leases, Future Minimum Payments, Due in Five Years | 5,513,000 | |||
Operating Leases, Future Minimum Payments, Due Thereafter | 11,776,000 | |||
Operating Leases, Future Minimum Payments Due | 44,684,000 | |||
Restructuring Reserve | 3,687,000 | 157,000 | ||
Operating Leases, Income Statement, Sublease Revenue | 800,000 | 1,300,000 | 1,200,000 | |
Finance Lease, Liability, Payments, Due Next Twelve Months | 289,000 | |||
Finance Lease, Liability, Payments, Due in Rolling Year Two | 255,000 | |||
Finance Lease, Liability, Payments, Due in Rolling Year Three | 226,000 | |||
Finance Lease, Liability, Payment, Due | 770,000 | |||
Finance Lease, Liability, Undiscounted Excess Amount | (23,000) | |||
Finance Lease, Liability | 747,000 | |||
Finance Lease, Liability, Current | 275,000 | |||
Finance Lease, Liability, Noncurrent | $ 472,000 | $ 0 | ||
Finance Lease, Weighted Average Discount Rate, Percent | 230.00% | |||
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | $ 5,700,000 | |||
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:AccruedLiabilitiesCurrent | us-gaap:AccruedLiabilitiesCurrent | ||
Minimum [Member] | ||||
Lessee, Lease, Description [Line Items] | ||||
Lessee, Operating Lease, Term of Contract | 1 year | |||
Maximum [Member] | ||||
Lessee, Lease, Description [Line Items] | ||||
Lessee, Operating Lease, Term of Contract | 7 years | |||
Operating Leases on Vacated Facilities [Member] | ||||
Lessee, Lease, Description [Line Items] | ||||
Effect on Future Cash Flows, Amount | $ 2,000,000 | |||
Facilities-Related [Member] | ||||
Lessee, Lease, Description [Line Items] | ||||
Restructuring Reserve | $ 0 | $ 0 | $ 318,000 | $ 2,479,000 |
ACCRUED EXPENSES AND OTHER CU_2
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Accrued Expenses and Other Current Liabilities Disclosure [Abstract] | ||||
Accrued Professional Fees, Current | $ 1,136 | $ 1,025 | ||
Operating Lease, Liability, Current | 5,870 | 6,645 | ||
Accrued Royalties, Current | 3,302 | 1,549 | ||
Product Warranty Accrual, Current | 1,095 | 1,337 | ||
Restructuring Reserve | 3,687 | 157 | ||
Allowance for Sales Returns and Exchanges | 9,306 | 8,230 | $ 9,003 | $ 9,916 |
Other Accrued Liabilities, Current | 17,868 | 17,816 | ||
Accrued expenses and other current liabilities | $ 42,264 | $ 36,759 |
OTHER LONG-TERM LIABILITIES (De
OTHER LONG-TERM LIABILITIES (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Other Liabilities Disclosure [Abstract] | ||
Finance lease liabilities | $ 472 | $ 0 |
Deferred compensation | 5,818 | 5,186 |
Other long-term liabilities | 1,496 | 460 |
Total | $ 7,786 | $ 5,646 |
COMMITMENTS AND CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | 36 Months Ended | |||
Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Apr. 30, 2020 | Dec. 31, 2017 | |
Loss Contingencies [Line Items] | ||||||
Long-term Purchase Commitment, Amount | $ 32,200 | $ 3,000 | ||||
Long-term Purchase Commitment, Period | 5 years | |||||
Restructuring Reserve | $ 3,687 | $ 157 | ||||
Operating Leases, Income Statement, Sublease Revenue | 800 | 1,300 | $ 1,200 | |||
Operating Leases, Rent Expense, Net | 10,200 | 10,300 | 9,500 | |||
Future minimum lease commitments under non-cancelable leases [Abstract] | ||||||
Operating Leases, Future Minimum Payments Due, Next Twelve Months | 8,558 | |||||
Operating Leases, Future Minimum Payments, Due in Two Years | 7,259 | |||||
Operating Leases, Future Minimum Payments, Due in Three Years | 6,195 | |||||
Operating Leases, Future Minimum Payments, Due in Four Years | 5,383 | |||||
Operating Leases, Future Minimum Payments, Due in Five Years | 5,513 | |||||
Operating Leases, Future Minimum Payments, Due Thereafter | 11,776 | |||||
Total | $ 44,684 | |||||
Purchase Commitments [Abstract] | ||||||
Maximum Purchase Commitment Period (in Years) | 1 year | |||||
Aggregate total of non-cancelable purchase commitments | $ 9,000 | |||||
Product warranty accrual [Roll Forward] | ||||||
Accrual balance at beginning of year | 1,337 | 1,706 | 2,545 | |||
Accruals for product warranties | 1,065 | 973 | 858 | |||
Cost of warranty claims | (1,307) | (1,342) | (1,697) | |||
Accrual balance at end of period | 1,095 | 1,337 | 1,706 | |||
Facilities-Related [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Restructuring Reserve | 0 | $ 0 | $ 318 | $ 2,479 | ||
Standby Letters of Credit [Member] | Office Space - Burlington, Massachusetts [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Letters of Credit Outstanding, Amount | 1,300 | |||||
Loss Contingency, Range Of Possible Loss, Portion Not Accrued, Minimum | 1,200 | |||||
Minimum exposure | 1,200 | |||||
Standby Letters of Credit [Member] | Office Space - Other Facilities [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Letters of Credit Outstanding, Amount | 600 | |||||
Standby Letters of Credit [Member] | Other Operating Obligations [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Letters of Credit Outstanding, Amount | 1,900 | |||||
Operating Leases on Vacated Facilities [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Effect on Future Cash Flows, Amount | 2,000 | |||||
Aggregate obligation of vacated facilies | $ 2,000 |
CAPITAL STOCK Preferred Stock (
CAPITAL STOCK Preferred Stock (Details) - $ / shares shares in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Class of Stock [Line Items] | ||
Preferred Stock, Shares Authorized | 1 | 1 |
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
CAPITAL STOCK (Details)
CAPITAL STOCK (Details) - $ / shares | 12 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | Nov. 30, 2014 | Jun. 30, 2009 | Mar. 31, 2009 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 9,440,000 | ||||
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 | $ 0.01 | ||
Shares available for issuance | 246,000 | ||||
Stock Incentive Plans [Abstract] | |||||
Preferred stock, par value | $ 0.01 | $ 0.01 | |||
Non-employee Director [Member] | |||||
Stock Incentive Plans [Abstract] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 1 year | ||||
Employee Stock Purchase 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 | 2,500,000 | 1,700,000 | |||
Shares available for issuance | 519,182 |
CAPITAL STOCK, Stock Options (D
CAPITAL STOCK, Stock Options (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 246,000 | |||
Stock Option Activity [Roll Forward] | ||||
Cash received from the exercise of stock options | $ 1,600 | $ 500 | ||
Share-based Payment Arrangement, Option [Member] | ||||
Stock Option Activity [Roll Forward] | ||||
Options outstanding at beginning of period (in shares) | 565,000 | 891,892 | 2,290,017 | |
Granted (in shares) | 0 | |||
Exercised (in shares) | (319,000) | (70,006) | ||
Forfeited or canceled (in shares) | 0 | (256,886) | (1,398,125) | |
Options outstanding at end of period (in shares) | 246,000 | 565,000 | 891,892 | 2,290,017 |
Weighted-average exercise price, options outstanding at beginning of period (in dollars per share) | $ 7.57 | $ 8.46 | $ 9.65 | |
Weighted-average exercise price, options granted (in dollars per share) | 0 | |||
Weighted-average exercise price, options exercised (in dollars per share) | 7.65 | 7.39 | ||
Weighted-average exercise price, options forfeited or canceled (in dollars per share) | 0 | 10.70 | 10.42 | |
Weighted-average exercise price, options outstanding at end of period (in dollars per share) | $ 7.48 | $ 7.57 | $ 8.46 | $ 9.65 |
Weighted-average remaining contractual term of options outstanding (in years) | 5 months 8 days | 1 year 2 months 1 day | 1 year 6 months 18 days | 2 years 3 months 21 days |
Aggregate intrinsic value options outstanding | $ 1,358 | $ 571 | ||
Share-based Payment Arrangement, Option [Member] | Minimum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 7 years | |||
Share-based Payment Arrangement, Option [Member] | Maximum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | |||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | |||
Non-employee Director [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 1 year |
CAPITAL STOCK, Restricted Stock
CAPITAL STOCK, Restricted Stock and Restricted Stock Units (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted Stock, Par or Stated Value Per Share | $ 0.01 | |||
Restricted Stock Units (RSUs) [Member] | ||||
Non-Vested Restricted Stock and Restricted Stock Units Activity [Roll Forward] | ||||
Weighted-average grant date fair value, granted (in dollars per share) | $ 7.05 | $ 7.28 | $ 5.01 | |
Fair value of restricted stock and stock units vested during the period | $ 9.5 | $ 8.1 | $ 3.9 | |
Restricted Stock Units (RSUs) [Member] | Time Based RSUs | ||||
Non-Vested Restricted Stock and Restricted Stock Units Activity [Roll Forward] | ||||
Non-vested at beginning of period (in shares) | 2,087,933 | 1,978,676 | 1,809,138 | |
Granted (in shares) | 1,518,714 | 1,320,536 | 1,783,728 | |
Vested (in shares) | (1,193,553) | (991,819) | (688,106) | |
Forfeited (in shares) | (298,215) | (219,460) | (926,084) | |
Non-vested at end of period (in shares) | 2,114,879 | 2,087,933 | 1,978,676 | |
Weighted-average grant date fair value, granted (in dollars per share) | $ 7.20 | $ 7.33 | $ 5.08 | |
Weighted-average grant date fair value, vested (in dollars per share) | 6.33 | 5.16 | 5.61 | |
Weighted-average grant date fair value, forfeited (in dollars per share) | 6.52 | 5.98 | 5.42 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 7.01 | $ 6.41 | $ 5.12 | $ 5.49 |
Restricted Stock Units (RSUs) [Member] | Time-Based Vesting [Member] | ||||
Non-Vested Restricted Stock and Restricted Stock Units Activity [Roll Forward] | ||||
Share-based Payment Arrangement, Shares Withheld for Tax Withholding Obligation | 403,798 | 307,005,000 | 213,531,000 | |
Restricted Stock Units (RSUs) [Member] | Performance-Based Vesting [Member] | ||||
Non-Vested Restricted Stock and Restricted Stock Units Activity [Roll Forward] | ||||
Non-vested at beginning of period (in shares) | 554,265 | 966,143 | 1,254,110 | |
Granted (in shares) | 578,316 | 411,043 | 771,124 | |
Vested (in shares) | (328,673) | (666,451) | 0 | |
Forfeited (in shares) | (150,480) | (156,470) | (1,059,091) | |
Non-vested at end of period (in shares) | 653,428 | 554,265 | 966,143 | |
Weighted-average grant date fair value, granted (in dollars per share) | $ 6.64 | $ 7.11 | $ 4.84 | |
Share-based Payment Arrangement, Shares Withheld for Tax Withholding Obligation | 133,596 | 280,613 | 0 | |
Weighted-average grant date fair value, vested (in dollars per share) | $ 5.80 | $ 4.48 | $ 0 | |
Weighted-average grant date fair value, forfeited (in dollars per share) | 7.11 | 4.64 | 4.82 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 6.74 | $ 6.39 | $ 4.48 | $ 4.54 |
Non-employee Director [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 1 year | |||
Minimum [Member] | Restricted Stock Units (RSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |||
Maximum [Member] | Restricted Stock Units (RSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years |
CAPITAL STOCK, Employee Stock P
CAPITAL STOCK, Employee Stock Purchase Plan (Details) - USD ($) | Jun. 30, 2015 | Jul. 31, 2015 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2009 | Mar. 31, 2009 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 9,440,000 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 246,000 | |||||||
Employee Stock Purchase 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 | 2,500,000 | 1,700,000 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 519,182 | |||||||
Weighted-average assumptions and fair value of shares issued under the ESPP | ||||||||
Expected dividend yield (in hundredths) | 0.00% | 0.00% | 0.00% | |||||
Risk-free interest rate (in hundredths) | 0.82% | 2.37% | 1.85% | |||||
Expected volatility (in hundredths) | 72.10% | 48.60% | 55.30% | |||||
Expected life (in years) | 6 months | 5 months 26 days | 6 months | |||||
Weighted-average fair value of shares issued (in dollars per share) | $ 1.40 | $ 1.04 | $ 0.94 | |||||
Shares issued under the ESPP (in shares) | 61,750 | 69,179 | 117,653 | |||||
Average price of shares issued (in dollars per share) | $ 8.67 | $ 7.48 | $ 4.22 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized | 650,000 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Purchase Price of Common Stock, Percent | 85.00% | |||||||
Share-Based Compensation Arrangement By Share-Based Payment Award, Maximum Employee Subscription Salary | $ 5,000 | |||||||
Share-Based Compensation Arrangement By Share-Based Payment Award, Offering Period | 3 months | 6 months |
CAPITAL STOCK, Allocated Share-
CAPITAL STOCK, Allocated Share-Based Compensation Expense (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Stock-Based Compensation Expense [Abstract] | |||
Allocated share-based compensation expense | $ 10,664,000 | $ 7,958,000 | $ 6,258,000 |
Expected future amortization of unrecognized compensation cost [Abstract] | |||
2017 | 8,300,000 | ||
2018 | 3,700,000 | ||
2019 | 1,100,000 | ||
Total unrecognized compensation cost related to non-vested stock-based compensation awards | $ 13,100,000 | ||
Weighted-average recognition period of total unrecognized compensation cost (in years) | 1 year | ||
Cost of Products Revenues [Member] | |||
Stock-Based Compensation Expense [Abstract] | |||
Allocated share-based compensation expense | $ 513,000 | 343,000 | 128,000 |
Cost of Services Revenues [Member] | |||
Stock-Based Compensation Expense [Abstract] | |||
Allocated share-based compensation expense | 826,000 | 274,000 | 194,000 |
Research and Development Expense [Member] | |||
Stock-Based Compensation Expense [Abstract] | |||
Allocated share-based compensation expense | 1,725,000 | 1,068,000 | 667,000 |
Marketing and Selling Expense [Member] | |||
Stock-Based Compensation Expense [Abstract] | |||
Allocated share-based compensation expense | 2,176,000 | 1,797,000 | 1,540,000 |
General and Administrative Expense [Member] | |||
Stock-Based Compensation Expense [Abstract] | |||
Allocated share-based compensation expense | 5,424,000 | 4,476,000 | 3,729,000 |
Equity Option | |||
Stock-Based Compensation Expense [Abstract] | |||
Employee Benefits and Share-based Compensation | 0 | 0 | 0 |
Restricted Stock Units (RSUs) [Member] | Time Based RSUs | |||
Stock-Based Compensation Expense [Abstract] | |||
Employee Benefits and Share-based Compensation | 8,340,000 | 5,900,000 | 4,011,000 |
Restricted Stock Units (RSUs) [Member] | Performance-Based Vesting [Member] | |||
Stock-Based Compensation Expense [Abstract] | |||
Employee Benefits and Share-based Compensation | 2,211,000 | 1,964,000 | 2,146,000 |
Employee Stock Purchase Plan [Member] | |||
Stock-Based Compensation Expense [Abstract] | |||
Employee Benefits and Share-based Compensation | $ 113,000 | $ 94,000 | $ 101,000 |
Minimum [Member] | Share-based Payment Arrangement, Option [Member] | |||
Stock-Based Compensation Expense [Abstract] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 7 years | ||
Maximum [Member] | Share-based Payment Arrangement, Option [Member] | |||
Stock-Based Compensation Expense [Abstract] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years |
EMPLOYEE BENEFIT PLANS (Details
EMPLOYEE BENEFIT PLANS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
401(k) Plan [Member] | |||
Employee Benefit Plans [Abstract] | |||
Contributions to the plan | $ 0.5 | $ 1.6 | $ 1.6 |
Foreign Plan [Member] | |||
Employee Benefit Plans [Abstract] | |||
Contributions to international employees retirement and post-employment plans | $ 1.4 | $ 1.3 | $ 1.7 |
EMPLOYEE BENEFIT PLANS Deferred
EMPLOYEE BENEFIT PLANS Deferred Compensation Plans (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Management and Directors Deferred Compensation Plan [Member] | ||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | ||
Assets of the deferred compensation plan | $ 0.3 | $ 0.3 |
Acquired Individual Deferred Compensation Arrangement [Member] | ||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | ||
Assets of the deferred compensation plan | 0.2 | 0.8 |
Liabilities of deferred compensation plan | $ 5.8 | $ 5.2 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense | $ 0 | $ 400 | |||||||||
Enacted Corporate Tax | 35.00% | ||||||||||
New Enacted Corporate Tax Rate | 21.00% | ||||||||||
Deferred Tax Assets, Operating Loss Carryforwards, Components [Abstract] | |||||||||||
Unrecognized tax benefits including the impact of penalties and interest | $ 1,800 | ||||||||||
Unrecognized tax benefits that would impact effective tax rate | 1,800 | ||||||||||
Reconciliation of Income Tax Provision to Statutory Tax Rate [Abstract] | |||||||||||
Effective Income Tax Rate Reconciliation at Federal Statutory Income Tax Rate, Amount | $ 2,611 | 530 | (1,975) | ||||||||
Effective Income Tax Rate Reconciliation, Tax Credit, Amount | 1,356 | 815 | 1,277 | ||||||||
Effective Income Tax Rate Reconciliation, Foreign Income Tax Rate Differential, Amount | 981 | 921 | 1,854 | ||||||||
Effective Income Tax Rate Reconciliation, Tax Contingency, Uncertain Tax Positions | (474) | 11,185 | 58 | ||||||||
Effective Income Tax Rate Reconciliation, Other Adjustments, Amount | 425 | 2,474 | 301 | ||||||||
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Amount | 3,527 | 21,001 | 244 | ||||||||
Provision for (benefit from) income taxes | $ (174) | $ 707 | $ 717 | $ 122 | $ (5,231) | $ (283) | $ 0 | $ 438 | 1,372 | (5,076) | 1,271 |
Income (loss) from operations before income taxes: | |||||||||||
United States | 9,182 | 4,311 | (1,940) | ||||||||
Foreign | 3,252 | (1,786) | (7,463) | ||||||||
Total income from operations before income taxes | 6,913 | 8,694 | 2,562 | (5,735) | 10,139 | 2,882 | (10,723) | 225 | 12,434 | 2,525 | (9,403) |
Current tax expense (benefit): | |||||||||||
Net cash payments for income taxes | (391) | 783 | (2,791) | ||||||||
Federal | 0 | (4) | (1) | ||||||||
State | 133 | 58 | 59 | ||||||||
Foreign benefit of net operating losses | (883) | (462) | (206) | ||||||||
Other foreign | 1,295 | 1,632 | 1,372 | ||||||||
Total current tax expense (benefit) | 545 | 1,224 | 1,224 | ||||||||
Deferred tax (benefit) expense: | |||||||||||
Federal | 0 | 0 | 0 | ||||||||
Other foreign | 827 | (6,300) | 47 | ||||||||
Total deferred tax (benefit) expense | 827 | (6,300) | 47 | ||||||||
Provision for (benefit from) income taxes | (174) | $ 707 | $ 717 | $ 122 | (5,231) | $ (283) | $ 0 | $ 438 | 1,372 | (5,076) | 1,271 |
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | |||||||||||
Increases for tax positions taken during a prior period | 11,248 | ||||||||||
Decreases for tax positions taken during a prior period | (818) | (78) | |||||||||
Unrecognized tax benefits at end of period | 12,193 | $ 13,011 | 12,193 | 13,011 | $ 1,763 | ||||||
Deferred Tax Assets, Tax Credit Carryforwards | $ 800 | 800 | |||||||||
Foreign [Member] | |||||||||||
Reconciliation of Income Tax Provision to Statutory Tax Rate [Abstract] | |||||||||||
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Amount | 12,600 | ||||||||||
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | |||||||||||
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | $ 1,500 | ||||||||||
Effective Income Tax Rate Reconciliation, Tax Contingency, Foreign, Amount | 11,100 | ||||||||||
Net Operating Loss Carryforward Irish Subsidiary | Foreign [Member] | |||||||||||
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | |||||||||||
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | $ 6,000 |
INCOME TAXES Deferred Tax Asset
INCOME TAXES Deferred Tax Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred Tax Asset (Liability) [Line Items] | ||
Deferred Tax Assets, Capital Loss Carryforwards | $ 1,600 | |
Tax credit and net operating loss carryforwards | 254,745 | $ 267,049 |
Allowances for bad debts | 47 | 69 |
Revenues | 6,659 | 2,651 |
Costs and expenses | 23,217 | 19,400 |
Inventories | 1,466 | 2,282 |
Acquired intangible assets | 62 | 187 |
Deferred Tax Assets, Other | 7,432 | 7,605 |
Gross deferred tax assets | 293,628 | 299,243 |
Valuation allowance | (278,785) | (281,568) |
Deferred tax assets after valuation allowance | 14,843 | 17,675 |
Deferred Tax Liabilities, Revenues | 0 | (1,052) |
Costs and expenses | (626) | (1,527) |
Acquired intangible assets | (92) | 0 |
Basis differerence convertible notes | 0 | (326) |
Deferred Tax Liabilities, Leasing Arrangements | (7,324) | (7,291) |
Gross deferred tax liabilities | (8,042) | (10,196) |
Net deferred tax assets (liabilities) | 6,801 | 7,479 |
Long-term deferred tax liabilities, net | 0 | $ 0 |
US Federal and State [Member] | ||
Deferred Tax Asset (Liability) [Line Items] | ||
Tax credit carryforwards | 48,600 | |
Net operating loss carryforwards | 719,900 | |
Foreign [Member] | ||
Deferred Tax Asset (Liability) [Line Items] | ||
Tax credit carryforwards | 6,200 | |
Net operating loss carryforwards | 107,000 | |
Valuation allowance, tax credits | 6,200 | |
Valuation allowance, net operating losses | $ 63,800 |
INCOME TAXES Deferred Tax Liabi
INCOME TAXES Deferred Tax Liability Not Recognized (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Deferred Tax Asset (Liability) [Line Items] | ||||
Unrecognized Tax Benefits | $ 12,193 | $ 13,011 | $ 1,763 | $ 1,841 |
Decreases for tax positions taken during a prior period | (818) | (78) | ||
Increases for tax positions taken during a prior period | 11,248 | |||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense | $ 0 | $ 400 | ||
Unrecognized tax benefits including penalties and interest | 1,800 | |||
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | $ 1,800 |
RESTRUCTURING COSTS AND ACCRU_3
RESTRUCTURING COSTS AND ACCRUALS (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020USD ($) | Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2020USD ($)position | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring Costs | $ 5,046 | $ 629 | $ 5,148 | ||||||||
Restructuring and Related Cost, Incurred Cost | 5,046 | 604 | 3,537 | ||||||||
Other Restructuring Costs | 0 | 25 | 1,611 | ||||||||
Restructuring accrual [Roll Forward] | |||||||||||
Accrual balance at beginning of year | $ 157 | 157 | |||||||||
Accrual balance at end of year | $ 3,687 | $ 157 | 3,687 | 157 | |||||||
Restructuring charges | 4,038 | $ 723 | $ 140 | 145 | 113 | $ 229 | $ (269) | $ 558 | $ 5,046 | 629 | 5,148 |
Number of positions eliminated | position | 93 | ||||||||||
Fixed asset write-off | $ 5,046 | 0 | 1,083 | ||||||||
Accrual Adjustment [Member] | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring and Related Cost, Incurred Cost | 4,949 | 599 | 3,537 | ||||||||
Restructuring accrual [Roll Forward] | |||||||||||
Accrual balance at beginning of year | 155 | 2,859 | 155 | 2,859 | 4,477 | ||||||
Accretion | 0 | 0 | 103 | ||||||||
Payments for Restructuring | (1,461) | (2,964) | (5,258) | ||||||||
Foreign exchange impact on ending balance | 44 | (21) | 0 | ||||||||
Accrual balance at end of year | 3,687 | 155 | 3,687 | 155 | 2,859 | ||||||
Facilities-related accruals - current | 3,687 | 3,687 | |||||||||
Facilties-related accuals - noncurrent | 0 | 0 | |||||||||
Effectof842onRestructuring | (318) | ||||||||||
Employee-Related [Member] | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring Costs | 4,949 | 599 | 3,641 | ||||||||
Restructuring and Related Cost, Incurred Cost | 4,949 | 599 | 3,641 | ||||||||
Restructuring accrual [Roll Forward] | |||||||||||
Accrual balance at beginning of year | 155 | 2,541 | 155 | 2,541 | 1,998 | ||||||
Accretion | 0 | 0 | 0 | ||||||||
Payments for Restructuring | (1,461) | (2,964) | (3,099) | ||||||||
Foreign exchange impact on ending balance | 44 | (21) | 1 | ||||||||
Accrual balance at end of year | 3,687 | 155 | 3,687 | 155 | 2,541 | ||||||
Restructuring charges | 3,600 | ||||||||||
Facilities-related accruals - current | 3,687 | 3,687 | |||||||||
Facilties-related accuals - noncurrent | 0 | 0 | |||||||||
Effectof842onRestructuring | 0 | ||||||||||
Facilities-Related [Member] | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring Costs | 97 | 5 | (104) | ||||||||
Restructuring and Related Cost, Incurred Cost | 0 | (104) | |||||||||
Restructuring accrual [Roll Forward] | |||||||||||
Accrual balance at beginning of year | $ 0 | $ 318 | 0 | 318 | 2,479 | ||||||
Accretion | 0 | 103 | |||||||||
Payments for Restructuring | 0 | (2,159) | |||||||||
Foreign exchange impact on ending balance | 0 | (1) | |||||||||
Accrual balance at end of year | 0 | $ 0 | 0 | 0 | $ 318 | ||||||
Facilities-related accruals - current | 0 | 0 | |||||||||
Facilties-related accuals - noncurrent | $ 0 | $ 0 | |||||||||
Effectof842onRestructuring | $ (318) | ||||||||||
2016 Plan [Member] | Employee-Related [Member] | |||||||||||
Restructuring accrual [Roll Forward] | |||||||||||
Number of positions eliminated | 54 | 84 | |||||||||
2016 Plan [Member] | Facilities-Related [Member] | |||||||||||
Restructuring accrual [Roll Forward] | |||||||||||
Fixed asset write-off | $ 1,100 |
PRODUCT AND GEOGRAPHIC INFORM_3
PRODUCT AND GEOGRAPHIC INFORMATION (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Net revenues | $ 104,301 | $ 90,431 | $ 79,281 | $ 86,453 | $ 116,306 | $ 93,461 | $ 98,701 | $ 103,319 | $ 360,466 | $ 411,788 | $ 413,282 |
United States [Member] | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Net revenues | 143,518 | 152,012 | 150,877 | ||||||||
Other Americas [Member] | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Net revenues | 24,026 | 32,783 | 27,494 | ||||||||
Europe, Middle East and Africa [Member] | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Net revenues | 142,370 | 161,764 | 172,238 | ||||||||
Asia-Pacific [Member] | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Net revenues | 50,552 | 65,229 | 62,673 | ||||||||
Product [Member] | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Net revenues | 140,762 | 207,445 | 205,107 | ||||||||
Video products and solutions net revenues [Member] | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Net revenues | 77,232 | 131,225 | 132,276 | ||||||||
Audio products and solutions net revenues [Member] | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Net revenues | 63,530 | 76,220 | 72,831 | ||||||||
Service [Member] | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Net revenues | 219,704 | 204,343 | 208,175 | ||||||||
Subscription services | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Net revenues | 72,831 | 45,181 | 35,888 | ||||||||
Support services | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Net revenues | 124,175 | 130,443 | 139,205 | ||||||||
Professional Services, Training, And Other Services | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Net revenues | $ 22,698 | $ 28,719 | $ 33,082 |
REVENUE Revenue from Contract w
REVENUE Revenue from Contract with Customer (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Capitalized Contract Cost [Line Items] | |||
Contract with Customer, Asset, after Allowance for Credit Loss | $ 18,579 | $ 19,494 | $ 16,513 |
Contract with Customer, Asset, Cumulative Catch-up Adjustment to Revenue, Change in Measure of Progress | 32,005 | 30,715 | |
Contract with Customer, Asset, Reclassified to Receivable | $ (32,920) | $ (27,734) |
REVENUE Deferred Revenue Activi
REVENUE Deferred Revenue Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2026 | Dec. 31, 2025 | Dec. 31, 2024 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2018 | |
Deferred Revenue Arrangement [Line Items] | |||||||||
Revenue, Remaining Performance Obligation, Amount | $ 46,200 | ||||||||
Deferred Revenue | 99,258 | $ 97,901 | $ 99,601 | ||||||
Deferred Revenue, Additions | 72,633 | 76,665 | |||||||
Deferred Revenue, Revenue Recognized | (71,276) | $ (78,365) | |||||||
Revenue, Remaining Performance Obligation, Amount, Installments | 53,300 | ||||||||
Product [Member] | |||||||||
Deferred Revenue Arrangement [Line Items] | |||||||||
Revenue, Remaining Performance Obligation, Amount | 6,636 | ||||||||
Subscription Arrangement [Member] | |||||||||
Deferred Revenue Arrangement [Line Items] | |||||||||
Revenue, Remaining Performance Obligation, Amount | 5,736 | ||||||||
Software Service, Support and Maintenance Arrangement [Member] | |||||||||
Deferred Revenue Arrangement [Line Items] | |||||||||
Revenue, Remaining Performance Obligation, Amount | 75,555 | ||||||||
Nonsoftware Service, Support and Maintenance Arrangement [Member] | |||||||||
Deferred Revenue Arrangement [Line Items] | |||||||||
Revenue, Remaining Performance Obligation, Amount | 8,426 | ||||||||
Nonsoftware Service, Support and Maintenance Arrangement [Member] | Forecast [Member] | |||||||||
Deferred Revenue Arrangement [Line Items] | |||||||||
Revenue, Remaining Performance Obligation, Amount | $ 100 | $ 500 | $ 900 | $ 1,400 | $ 2,100 | $ 3,400 | |||
Software License Arrangement [Member] | |||||||||
Deferred Revenue Arrangement [Line Items] | |||||||||
Revenue, Remaining Performance Obligation, Amount | $ 2,905 |
LONG TERM DEBT AND CREDIT AGREE
LONG TERM DEBT AND CREDIT AGREEMENT (Details) | May 11, 2020USD ($) | Jun. 18, 2019USD ($) | May 13, 2019USD ($) | May 02, 2019USD ($) | Apr. 08, 2019USD ($) | Jan. 22, 2019USD ($)shares | May 10, 2018USD ($) | Dec. 15, 2017USD ($)shares | Feb. 26, 2016USD ($) | Jun. 15, 2015USD ($)positiontrading_day$ / sharesshares | Jun. 15, 2015USD ($)$ / sharesshares | Jun. 30, 2017USD ($) | Dec. 31, 2020USD ($)shares | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Jan. 05, 2021USD ($) | May 09, 2019shares | Dec. 03, 2018shares | Feb. 08, 2018shares | Nov. 09, 2017USD ($) | Jun. 09, 2015USD ($) |
Line of Credit Facility [Line Items] | |||||||||||||||||||||
Other Long-term Debt, Noncurrent | $ 1,271,000 | $ 1,296,000 | |||||||||||||||||||
Term Loan, net | 198,629,000 | 200,105,000 | |||||||||||||||||||
Convertible Notes Payable | 0 | 28,187,000 | |||||||||||||||||||
Short-term Debt, Fair Value | 4,941,000 | 30,554,000 | |||||||||||||||||||
Long-term Debt | 202,759,000 | 199,034,000 | |||||||||||||||||||
Adjustments to Additional Paid in Capital, Equity Component of Convertible Debt, Subsequent Adjustments | $ 600,000 | ||||||||||||||||||||
Repayments of Debt | 72,700,000 | $ 3,600,000 | $ 1,700,000 | $ 14,700,000 | |||||||||||||||||
Adjustments to Additional Paid in Capital, Equity Component of Convertible Debt | (577,000) | $ (74,000) | |||||||||||||||||||
Gain (Loss) on Extinguishment of Debt | (2,900,000) | ||||||||||||||||||||
ConvertibleDebtRetired | shares | 3,900 | 2,000 | 16,247 | 73,986 | 96,133 | ||||||||||||||||
ConvertibleDebtIssued | shares | 106,753 | 125,000 | 125,000 | 123,000 | |||||||||||||||||
Extinguishment of Debt, Amount | $ 74,000,000 | $ 3,900,000 | $ 2,000,000 | $ 16,200,000 | |||||||||||||||||
Capped Call Transaction Cost Reimbursement | 27,000 | 16,000 | |||||||||||||||||||
Repayments of Lines of Credit | 22,000,000 | 0 | 0 | ||||||||||||||||||
Debt, Long-term and Short-term, Combined Amount | 207,700,000 | ||||||||||||||||||||
Payments of Debt Issuance Costs | $ 6,000,000 | $ 1,600,000 | |||||||||||||||||||
Debt Related Commitment Fees and Debt Issuance Costs | 4,400,000 | ||||||||||||||||||||
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | 2,579,000 | ||||||||||||||||||||
Proceeds From Payroll Protection Program Loan, CARES Act | $ 7,800,000 | ||||||||||||||||||||
Repayments of Senior Debt | 72,700,000 | ||||||||||||||||||||
Cash paid for interest | 600,000 | 17,499,000 | 12,262,000 | 14,505,000 | |||||||||||||||||
Repayments of Long-term Lines of Credit | $ 20,700,000 | ||||||||||||||||||||
Proceeds from revolving credit facilities | $ 79,300,000 | 22,000,000 | 0 | $ 0 | |||||||||||||||||
Cerberus Business Finance LLC [Member] | |||||||||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||||||||
Long-term Debt | $ 115,000,000 | ||||||||||||||||||||
additional long term debt | 15,000,000 | ||||||||||||||||||||
Cerberus Business Finance LLC [Member] | Term Loan | |||||||||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||||||||
Line Of Credit Facility, Maximum Borrowing Capacity, Increase | $ 100,000,000 | $ 22,700,000 | |||||||||||||||||||
Cerberus Business Finance LLC [Member] | Revolving Credit Facility | |||||||||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 22,500,000 | ||||||||||||||||||||
Interest Expense, Long-term Debt | 800,000 | ||||||||||||||||||||
Line Of Credit Facility, Maximum Borrowing Capacity, Increase | $ 12,500,000 | ||||||||||||||||||||
Long-term Debt [Member] | Cerberus Business Finance LLC [Member] | |||||||||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||||||||
Unamortized Debt Issuance Expense | 0 | 3,334,000 | |||||||||||||||||||
Interest Expense, Long-term Debt | 16,200,000 | ||||||||||||||||||||
Convertible Debt [Member] | |||||||||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||||||||
Long-term Debt, Gross | $ 125,000,000 | $ 125,000,000 | |||||||||||||||||||
Net Proceeds from Issuance of Convertible Notes Payable | 120,300,000 | 120,300,000 | |||||||||||||||||||
Convertible Debt, Noncurrent | $ 96,700,000 | 96,700,000 | |||||||||||||||||||
Adjustments to Additional Paid in Capital, Equity Component of Convertible Debt, Subsequent Adjustments | $ 28,300,000 | ||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.00% | 2.00% | |||||||||||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 7.66% | 7.66% | |||||||||||||||||||
Amortization of Debt Discount (Premium) | 700,000 | 3,300,000 | |||||||||||||||||||
Interest Expense, Debt | 900,000 | 4,400,000 | |||||||||||||||||||
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | $ 0 | $ 680,000 | |||||||||||||||||||
Debt Instrument, Convertible, Conversion Ratio | 0.0455840 | ||||||||||||||||||||
Debt Instrument, Convertible, Conversion Price | $ / shares | $ 21.94 | $ 21.94 | |||||||||||||||||||
Debt Instrument, Convertible, Threshold Percentage of Stock Price Trigger | 130.00% | ||||||||||||||||||||
Debt Instrument, Convertible, Threshold Trading Days | position | 20 | ||||||||||||||||||||
Debt Instrument, Convertible, Threshold Consecutive Trading Days | trading_day | 30 | ||||||||||||||||||||
Debt Instrument, Convertible, Measurement Period Threshold Percentage | 98.00% | ||||||||||||||||||||
Debt Instrument, Redemption Price, Percentage | 100.00% | ||||||||||||||||||||
Convertible Debt [Member] | Capped call [Member] | |||||||||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||||||||
Capped Call Transaction Costs | $ 10,100,000 | ||||||||||||||||||||
Derivative, Price Risk Option Strike Price | 21.94 | ||||||||||||||||||||
Derivative, Cap Price | 26 | ||||||||||||||||||||
Long-term Debt [Member] | Cerberus Business Finance LLC [Member] | |||||||||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||||||||
Long-term Debt, Gross | $ 100,000,000 | ||||||||||||||||||||
Debt Instrument, Percent Of Excess Cash Must Use For Debt Repayment | 50.00% | ||||||||||||||||||||
Line of Credit [Member] | Cerberus Business Finance LLC [Member] | |||||||||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 5,000,000 | $ 10,000,000 | |||||||||||||||||||
Convertible Debt [Member] | |||||||||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||||||||
Convertible Notes Payable Transaction Costs | $ 4,700,000 | $ 4,700,000 | |||||||||||||||||||
Convertible Debt [Member] | Interest Expense [Member] | |||||||||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||||||||
Convertible Notes Payable Transaction Costs | 3,600,000 | 3,600,000 | |||||||||||||||||||
Convertible Debt [Member] | Equity [Member] | |||||||||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||||||||
Convertible Notes Payable Transaction Costs | $ 1,100,000 | $ 1,100,000 | |||||||||||||||||||
Subsequent Event [Member] | JPMorgan Chase [Member] | Term Loan | |||||||||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 180,000,000 | ||||||||||||||||||||
Subsequent Event [Member] | JPMorgan Chase [Member] | Revolving Credit Facility | |||||||||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 70,000,000 |
LONG-TERM DEBT AND CREDIT AGR_2
LONG-TERM DEBT AND CREDIT AGREEMENT Carrying Value of Long Term Debt (Details) - USD ($) | May 13, 2019 | Jan. 22, 2019 | Dec. 15, 2017 | Jun. 15, 2015 | Dec. 31, 2020 | Dec. 31, 2019 | Nov. 09, 2017 |
Debt Instrument [Line Items] | |||||||
Extinguishment of Debt, Amount | $ 74,000,000 | $ 3,900,000 | $ 2,000,000 | $ 16,200,000 | |||
Adjustments to Additional Paid in Capital, Equity Component of Convertible Debt, Subsequent Adjustments | 600,000 | ||||||
Gain (Loss) on Extinguishment of Debt | (2,900,000) | ||||||
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months | 4,941,000 | ||||||
Long-term Debt, Maturities, Repayments of Principal in Year Two | 14,347,000 | ||||||
Long-term Debt, Maturities, Repayments of Principal in Year Three | 190,236,000 | ||||||
Long-term Debt, Maturities, Repayments of Principal in Year Four | 197,000 | ||||||
Long-term Debt, Maturities, Repayments of Principal in Year Five | 212,000 | ||||||
Term Loan, net | 198,629,000 | $ 200,105,000 | |||||
Convertible Notes Payable | 0 | 28,187,000 | |||||
Forgivable loans payable. Payroll Protection Program | 7,800,000 | ||||||
Other Long-term Debt, Noncurrent | 1,271,000 | 1,296,000 | |||||
Total debt | 210,279,000 | 229,588,000 | |||||
Long-term Debt | 202,759,000 | 199,034,000 | |||||
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | 2,579,000 | ||||||
Long-term Debt, Maturities, Repayments of Principal after Year Five | 346,000 | ||||||
Short-term Debt, Fair Value | 4,941,000 | 30,554,000 | |||||
Debt Instrument, Discounted Repurchase Amount | 982.5 | ||||||
Debt Instrument, Repurchased Face Amount | $ 1,000 | ||||||
Repayments of Debt | $ 72,700,000 | $ 3,600,000 | $ 1,700,000 | 14,700,000 | |||
Convertible Note Options Outstanding | 28,867 | ||||||
Cerberus Business Finance LLC [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Long-term Debt | $ 115,000,000 | ||||||
Long-term Debt [Member] | Cerberus Business Finance LLC [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Unamortized Debt Issuance Expense | 0 | 3,334,000 | |||||
Cerberus Business Finance LLC [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months | 4,781,000 | ||||||
Long-term Debt, Maturities, Repayments of Principal in Year Two | 6,375,000 | ||||||
Long-term Debt, Maturities, Repayments of Principal in Year Three | 190,052,000 | ||||||
Long-term Debt, Maturities, Repayments of Principal in Year Four | 0 | ||||||
Long-term Debt, Maturities, Repayments of Principal in Year Five | 0 | ||||||
Total debt | 201,208,000 | ||||||
Long-term Debt | 193,848,000 | ||||||
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | 2,579,000 | ||||||
Long-term Debt, Maturities, Repayments of Principal after Year Five | 0 | ||||||
Short-term Debt, Fair Value | 4,781,000 | ||||||
Convertible Debt [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Amortization of Debt Discount (Premium) | 700,000 | 3,300,000 | |||||
Adjustments to Additional Paid in Capital, Equity Component of Convertible Debt, Subsequent Adjustments | $ 28,300,000 | ||||||
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | 0 | $ 680,000 | |||||
Other Debt Obligations [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months | 160,000 | ||||||
Long-term Debt, Maturities, Repayments of Principal in Year Two | 172,000 | ||||||
Long-term Debt, Maturities, Repayments of Principal in Year Three | 184,000 | ||||||
Long-term Debt, Maturities, Repayments of Principal in Year Four | 197,000 | ||||||
Long-term Debt, Maturities, Repayments of Principal in Year Five | 212,000 | ||||||
Total debt | 1,271,000 | ||||||
Long-term Debt | 1,111,000 | ||||||
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | 0 | ||||||
Long-term Debt, Maturities, Repayments of Principal after Year Five | 346,000 | ||||||
Short-term Debt, Fair Value | 160,000 | ||||||
Federal Home Loan Bank Advances | |||||||
Debt Instrument [Line Items] | |||||||
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months | 0 | ||||||
Long-term Debt, Maturities, Repayments of Principal in Year Two | 7,800,000 | ||||||
Long-term Debt, Maturities, Repayments of Principal in Year Three | 0 | ||||||
Long-term Debt, Maturities, Repayments of Principal in Year Four | 0 | ||||||
Long-term Debt, Maturities, Repayments of Principal in Year Five | 0 | ||||||
Total debt | 7,800,000 | ||||||
Long-term Debt | 7,800,000 | ||||||
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | 0 | ||||||
Long-term Debt, Maturities, Repayments of Principal after Year Five | 0 | ||||||
Short-term Debt, Fair Value | $ 0 |
LONG-TERM DEBT AND CREDIT AGR_3
LONG-TERM DEBT AND CREDIT AGREEMENT Unamortized Debt Issuance Costs and Discounts (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Convertible Note unamortized issue discount and debt issuance costs | $ 2,579 | |
Long-term Debt [Member] | Cerberus Business Finance LLC [Member] | ||
Debt Instrument [Line Items] | ||
Term loan unamortized debt issuance costs | 0 | $ 3,334 |
Convertible Debt [Member] | ||
Debt Instrument [Line Items] | ||
Convertible Note unamortized issue discount and debt issuance costs | $ 0 | $ 680 |
LONG-TERM DEBT AND CREDIT AGR_4
LONG-TERM DEBT AND CREDIT AGREEMENT - Credit Agreement (Details) - USD ($) | Jan. 05, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | May 10, 2018 |
Line of Credit Facility [Line Items] | |||||
Repayments of Lines of Credit | $ 22,000,000 | $ 0 | $ 0 | ||
Term Loan | Subsequent Event [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Debt Instrument, LIBOR Floor Rate | 0.25% | ||||
Term Loan | Debt Instrument, Principal Payment Period One | Subsequent Event [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Debt Instrument, Periodic Payment, Principal, Percent | 5.00% | ||||
Term Loan | Debt Instrument, Principal Payment Period Two | Subsequent Event [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Debt Instrument, Periodic Payment, Principal, Percent | 7.50% | ||||
Term Loan | Debt Instrument, Principal Payment Period Three | Subsequent Event [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Debt Instrument, Periodic Payment, Principal, Percent | 10.00% | ||||
Term Loan | London Interbank Offered Rate (LIBOR) | Subsequent Event [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Debt Instrument, Basis Spread on Variable Rate | 3.00% | ||||
Term Loan | London Interbank Offered Rate (LIBOR) | Minimum [Member] | Subsequent Event [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Debt Instrument, Basis Spread on Variable Rate | 2.00% | ||||
Term Loan | London Interbank Offered Rate (LIBOR) | Maximum [Member] | Subsequent Event [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Debt Instrument, Basis Spread on Variable Rate | 3.25% | ||||
JPMorgan Chase [Member] | Term Loan | Subsequent Event [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 180,000,000 | ||||
JPMorgan Chase [Member] | Revolving Credit Facility | Subsequent Event [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 70,000,000 | ||||
JPMorgan Chase [Member] | Line of Credit [Member] | Subsequent Event [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Line Of Credit Facility, Covenant Terms, Maximum Net Leverage Ratio | 4 | ||||
Line Of Credit Facility, Covenant Terms, Minimum Fixed Charge Ratio | 1.20 | ||||
Cerberus Business Finance LLC [Member] | Revolving Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 22,500,000 | ||||
Cerberus Business Finance LLC [Member] | Line of Credit [Member] | Subsequent Event [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Repayments of Lines of Credit | $ 201,000,000 |
QUARTERLY RESULTS (UNAUDITED)_3
QUARTERLY RESULTS (UNAUDITED) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Net revenues | $ 104,301 | $ 90,431 | $ 79,281 | $ 86,453 | $ 116,306 | $ 93,461 | $ 98,701 | $ 103,319 | $ 360,466 | $ 411,788 | $ 413,282 |
Amortization of intangible assets | 0 | 3,738 | 7,800 | ||||||||
Cost of services | 38,951 | 32,174 | 27,719 | 33,302 | 43,033 | 35,603 | 40,253 | 40,087 | |||
Gross profit | 65,350 | 58,257 | 51,562 | 53,151 | 73,273 | 57,858 | 56,660 | 61,282 | 228,320 | 249,075 | 239,164 |
Operating expenses: | |||||||||||
Research and development | 14,902 | 13,623 | 13,068 | 15,425 | 16,018 | 14,860 | 15,180 | 16,285 | 57,018 | 62,343 | 62,379 |
Marketing and selling | 22,660 | 19,998 | 19,690 | 25,289 | 26,603 | 22,334 | 26,129 | 24,878 | 87,637 | 99,944 | 101,273 |
General and administrative | 12,908 | 10,796 | 10,604 | 12,744 | 14,816 | 12,034 | 12,722 | 13,788 | 47,052 | 53,362 | 55,230 |
Amortization of intangible assets | 0 | 0 | 0 | 0 | 0 | 0 | 331 | 363 | 0 | 694 | 1,450 |
Restructuring costs (recoveries), net | 4,038 | 723 | 140 | 145 | 113 | 229 | (269) | 558 | 5,046 | 629 | 5,148 |
Total operating expenses | 54,508 | 45,140 | 43,502 | 53,603 | 57,550 | 49,457 | 54,093 | 55,872 | 196,753 | 216,972 | 225,480 |
Operating income (loss) | 10,842 | 13,117 | 8,060 | (452) | 15,723 | 8,401 | 2,567 | 5,410 | 31,567 | 32,103 | 13,684 |
Other income (expense), net | (3,929) | (4,423) | (5,498) | (5,283) | (5,584) | (5,519) | (13,290) | (5,185) | |||
Income (loss) before income taxes | 6,913 | 8,694 | 2,562 | (5,735) | 10,139 | 2,882 | (10,723) | 225 | 12,434 | 2,525 | (9,403) |
Provision for (benefit from) income taxes | (174) | 707 | 717 | 122 | (5,231) | (283) | 0 | 438 | 1,372 | (5,076) | 1,271 |
Net income (loss) | $ 7,087 | $ 7,987 | $ 1,845 | $ (5,857) | $ 15,370 | $ 3,165 | $ (10,723) | $ (213) | $ 11,062 | $ 7,601 | $ (10,674) |
Earnings Per Share, Basic | $ 0.16 | $ 0.18 | $ 0.04 | $ (0.14) | $ 0.36 | $ 0.07 | $ (0.25) | $ (0.01) | $ 0.25 | $ 0.18 | $ (0.26) |
Earnings Per Share, Diluted | $ 0.16 | $ 0.18 | $ 0.04 | $ (0.13) | $ 0.35 | $ 0.07 | $ (0.25) | $ (0.01) | $ 0.25 | $ 0.17 | $ (0.26) |
Weighted-average common shares outstanding - basic | 44,288 | 44,019 | 43,719 | 43,254 | 43,060 | 42,913 | 42,560 | 42,046 | 43,822 | 42,649 | 41,662 |
Weighted-average common shares outstanding - diluted | 45,541 | 44,758 | 44,180 | 44,101 | 43,737 | 43,674 | 42,560 | 42,046 | 44,878 | 43,495 | 41,662 |
Amortization of intangible assets [Member] | |||||||||||
Amortization of intangible assets | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 1,788 | $ 1,950 | |||
Convertible Debt [Member] | |||||||||||
Interest Expense, Debt | $ 900 | $ 4,400 |
Uncategorized Items - avid-2020
Label | Element | Value |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | us-gaap_CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents | $ 60,433,000 |