Years Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
Stock options | $ | 4.79 | $ | 4.89 | $ | 4.68 | |||||
RSUs | $ | 8.72 | $ | 9.20 | $ | 6.55 | |||||
PRSUs | $ | 9.16 | $ | 11.24 | $ | 14.81 | |||||
RSAs | N/A | N/A | N/A | ||||||||
ESPP | $ | 2.46 | $ | 2.94 | $ | 2.34 |
As of December 31, | ||||||||
2014 | 2013 | 2012 | ||||||
Stock options outstanding | 3,701 | 2,560 | 2,213 | |||||
Restricted stock units outstanding | 1,734 | 1,506 | 1,762 | |||||
Performance restricted stock units outstanding | 362 | 413 | 183 | |||||
Shares available for future grant under 2010 Plan | 2,283 | 3,652 | 3,959 | |||||
Shares available for future issuance under ESPP | 1,891 | 2,574 | 3,260 | |||||
Common stock warrants | 15 | 23 | 23 | |||||
Total | 9,986 | 10,728 | 11,400 |
At November 2, 2012 | |||
Inventory | $ | 9,361 | |
Other current asset | 739 | ||
Property and equipment | 3,616 | ||
Other current liabilities | (124 | ) | |
Deferred tax liability | (563 | ) | |
Net assets acquired | 13,029 | ||
Gain on bargain purchase | (1,029 | ) | |
Total purchase price | $ | 12,000 |
• | Persuasive evidence of an arrangement exists. The Company generally relies upon sales agreements and customer purchase orders as evidence of an arrangement. |
• | Delivery has occurred. The Company uses the shipping terms of the arrangement or evidence of customer acceptance to verify delivery or performance. |
• | Sales price is fixed or determinable. The Company assesses whether the sales price is fixed or determinable based on the payment terms and whether the sales price is subject to refund or adjustment. Payment terms to customers can range from net 30 to net 120 days. |
• | Collectability is reasonably assured. The Company assesses collectability based primarily on creditworthiness of customers and their payment histories. |
Percentage of Accounts Receivable | Percentage of Revenue | |||||||||
At December 31, | Years Ended December 31, | |||||||||
2014 | 2013 | 2014 | 2013 | 2012 | ||||||
CenturyLink | * | 15% | 23% | 26% | 21% | |||||
Ericsson (1) | * | 12% | * | * | * | |||||
(1) Includes certain of Ericsson's consolidated subsidiaries. | ||||||||||
* Less than 10% of total accounts receivable or revenue. |
December 31, 2014 | December 31, 2013 | |||||||
Cash and cash equivalents: | ||||||||
Cash | $ | 17,866 | $ | 62,905 | ||||
Money market funds | 30,963 | 19,842 | ||||||
Total cash and cash equivalents | 48,829 | 82,747 | ||||||
Marketable securities: | ||||||||
Corporate debt securities | 61,050 | — | ||||||
Commercial paper | 1,800 | — | ||||||
Total marketable securities | 62,850 | — | ||||||
Total cash, cash equivalents and marketable securities | $ | 111,679 | $ | 82,747 |
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||||||
Corporate debt securities | $ | 61,108 | $ | 1 | $ | (59 | ) | $ | 61,050 | |||||||
Commercial paper | 1,800 | — | $ | — | 1,800 | |||||||||||
Total marketable securities | $ | 62,908 | $ | 1 | $ | (59 | ) | $ | 62,850 |
Amortized Cost | Fair Value | |||||||
Due in 1 year or less | $ | 59,835 | $ | 59,776 | ||||
Due in 1-2 years | 3,073 | 3,074 | ||||||
Total marketable securities | $ | 62,908 | $ | 62,850 |
Period | Minimum Future Lease Payments | |||
2015 | $ | 3,193 | ||
2016 | 2,658 | |||
2017 | 2,594 | |||
2018 | 2,325 | |||
2019 | 579 | |||
Thereafter | 470 | |||
Total | $ | 11,819 |
Years Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Balance at beginning of period | $ | 10,856 | $ | 11,762 | $ | 12,104 | ||||||
Warranty charged to cost of revenue | 3,394 | 4,350 | 4,701 | |||||||||
Utilization of warranty | (4,697 | ) | (5,256 | ) | (5,043 | ) | ||||||
Balance at end of period | $ | 9,553 | $ | 10,856 | $ | 11,762 |
Year Ended December 31, 2014 | |||||||||||
Unrealized Gains and Losses on Available-for-Sale Marketable Securities | Foreign Currency Translation Adjustments | Total | |||||||||
Balance at beginning of period | $ | — | $ | 190 | $ | 190 | |||||
Other comprehensive loss before | |||||||||||
reclassification adjustments | (57 | ) | (52 | ) | (109 | ) | |||||
Reclassification adjustment for realized gains on | |||||||||||
marketable securities included in net loss | (1 | ) | — | (1 | ) | ||||||
Other comprehensive loss | (58 | ) | (52 | ) | (110 | ) | |||||
Balance at end of period | $ | (58 | ) | $ | 138 | $ | 80 | ||||
Year Ended December 31, 2013 | |||||||||||
Unrealized Gains and Losses on Available-for-Sale Marketable Securities | Foreign Currency Translation Adjustments | Total | |||||||||
Balance at beginning of period | $ | — | $ | 132 | $ | 132 | |||||
Other comprehensive income | — | 58 | 58 | ||||||||
Balance at end of period | $ | — | $ | 190 | $ | 190 | |||||
Year Ended December 31, 2012 | |||||||||||
Unrealized Gains and Losses on Available-for-Sale Marketable Securities | Foreign Currency Translation Adjustments | Total | |||||||||
Balance at beginning of period | $ | — | $ | 98 | $ | 98 | |||||
Other comprehensive income | — | 34 | 34 | ||||||||
Balance at end of period | $ | — | $ | 132 | $ | 132 |
Percentage of Accounts Receivable | Percentage of Revenue | |||||||||
At December 31, | Years Ended December 31, | |||||||||
2014 | 2013 | 2014 | 2013 | 2012 | ||||||
CenturyLink | * | 15% | 23% | 26% | 21% | |||||
Ericsson (1) | * | 12% | * | * | * | |||||
(1) Includes certain of Ericsson's consolidated subsidiaries. | ||||||||||
* Less than 10% of total accounts receivable or revenue. |
December 31, 2014 | December 31, 2013 | |||||||
Deferred Revenue: | ||||||||
Product and services - current | $ | 9,753 | $ | 32,051 | ||||
Extended warranty - current | 2,969 | 2,811 | ||||||
Extended warranty - non-current | 19,211 | 18,335 | ||||||
Product and services - non-current | 182 | 96 | ||||||
Total deferred revenue | $ | 32,115 | $ | 53,293 |
Years Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
Numerator: | |||||||||||
Net loss | $ | (20,814 | ) | $ | (17,265 | ) | $ | (28,326 | ) | ||
Denominator: | |||||||||||
Weighted-average common shares outstanding | 50,808 | 49,419 | 48,180 | ||||||||
Basic and diluted net loss per common share | $ | (0.41 | ) | $ | (0.35 | ) | $ | (0.59 | ) | ||
Potentially dilutive shares, weighted-average | 5,020 | 5,308 | 4,454 |
As of December 31, 2014 | Level 1 | Level 2 | Total | |||||||||
Money market funds | $ | 30,963 | $ | — | $ | 30,963 | ||||||
Corporate debt securities | — | 61,050 | 61,050 | |||||||||
Commercial paper | — | 1,800 | 1,800 | |||||||||
Total | $ | 30,963 | $ | 62,850 | $ | 93,813 |
As of December 31, 2013 | Level 1 | Level 2 | Total | |||||||||
Money market funds | $ | 19,842 | $ | — | $ | 19,842 | ||||||
Corporate debt securities | — | — | — | |||||||||
Commercial paper | — | — | — | |||||||||
Total | $ | 19,842 | $ | — | $ | 19,842 |
December 31, 2014 | December 31, 2013 | |||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net | Gross Carrying Amount | Accumulated Amortization | Net | |||||||||||||||||||
Core developed technology | $ | 68,964 | $ | (55,694 | ) | $ | 13,270 | $ | 68,964 | $ | (47,339 | ) | $ | 21,625 | ||||||||||
Customer relationships | 54,740 | (42,831 | ) | 11,909 | 54,740 | (32,625 | ) | 22,115 | ||||||||||||||||
Total intangible assets, excluding goodwill | $ | 123,704 | $ | (98,525 | ) | $ | 25,179 | $ | 123,704 | $ | (79,964 | ) | $ | 43,740 |
Period | Expected Amortization Expense | ||
2015 | $ | 18,561 | |
2016 | 5,805 | ||
2017 | 813 | ||
Total | $ | 25,179 |
Years Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
Domestic | $ | (21,495 | ) | $ | (18,500 | ) | $ | (28,987 | ) | ||
Foreign | 1,262 | 1,221 | 819 | ||||||||
Loss before provision for income taxes | $ | (20,233 | ) | $ | (17,279 | ) | $ | (28,168 | ) |
Years Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
Federal current income tax (benefit) | $ | — | $ | (274 | ) | $ | 152 | ||||
State current income tax | 104 | 41 | 73 | ||||||||
Foreign current income tax | 469 | 315 | 440 | ||||||||
Federal deferred income tax (benefit) | — | — | (474 | ) | |||||||
State deferred income tax (benefit) | — | — | (89 | ) | |||||||
Foreign deferred income tax (benefit) | 8 | (96 | ) | 56 | |||||||
Provision for (benefit from) income taxes | $ | 581 | $ | (14 | ) | $ | 158 |
Years Ended December 31, | ||||||||
2014 | 2013 | 2012 | ||||||
Federal statutory rate | 34.0 | % | 34.0 | % | 34.0 | % | ||
State statutory rate | 2.5 | % | 3.4 | % | 5.2 | % | ||
Foreign operations | (0.1 | )% | 1.4 | % | 0.1 | % | ||
Release of FIN 48 liability and interest | — | % | 0.7 | % | — | % | ||
R&D tax credits | 9.2 | % | 13.1 | % | 2.5 | % | ||
Release of valuation allowance related to EFAA acquisition | — | % | — | % | 2.0 | % | ||
Acquisition-related costs | — | % | — | % | 1.2 | % | ||
Other permanent items | (2.7 | )% | (4.5 | )% | 0.1 | % | ||
Tax true-up | (0.2 | )% | 1.0 | % | — | % | ||
Valuation allowance | (45.6 | )% | (49.0 | )% | (45.7 | )% | ||
Effective tax rate | (2.9 | )% | 0.1 | % | (0.6 | )% |
As of December 31, | |||||||
2014 | 2013 | ||||||
Deferred tax assets: | |||||||
Net operating loss carryforwards | $ | 166,150 | $ | 168,431 | |||
Tax credit carryforwards | 25,052 | 22,507 | |||||
Depreciation and amortization | 1,275 | 2,996 | |||||
Accruals and reserves | 13,810 | 11,479 | |||||
Deferred revenue | 9,930 | 12,037 | |||||
Stock-based compensation | 5,138 | 5,570 | |||||
Other | 498 | 450 | |||||
Gross deferred tax assets | 221,853 | 223,470 | |||||
Valuation allowance | (212,703 | ) | (207,315 | ) | |||
Net deferred tax assets | 9,150 | 16,155 | |||||
Deferred tax liabilities: | |||||||
Intangible assets | (8,995 | ) | (15,988 | ) | |||
Net deferred tax assets reflected in balance sheet | $ | 155 | $ | 167 |
As of December 31, | |||||||
2014 | 2013 | ||||||
Deferred tax assets, current | $ | 785 | $ | — | |||
Deferred tax assets, long-term | 155 | 167 | |||||
Deferred tax liabilities, long-term | (785 | ) | — | ||||
$ | 155 | $ | 167 |
Years Ended December 31, | |||||||
2014 | 2013 | ||||||
Balance at beginning of period | $ | 14,382 | $ | 13,238 | |||
Additions for tax positions related to prior year | 76 | 317 | |||||
Reductions for tax positions related to prior year | — | (48 | ) | ||||
Additions for tax positions related to current year | 963 | 990 | |||||
Reductions from a lapse of applicable statute of limitations | — | (115 | ) | ||||
Balance at end of period | $ | 15,421 | $ | 14,382 |
Amortized Cost | Fair Value | |||||||
Due in 1 year or less | $ | 59,835 | $ | 59,776 | ||||
Due in 1-2 years | 3,073 | 3,074 | ||||||
Total marketable securities | $ | 62,908 | $ | 62,850 |
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||||||
Corporate debt securities | $ | 61,108 | $ | 1 | $ | (59 | ) | $ | 61,050 | |||||||
Commercial paper | 1,800 | — | $ | — | 1,800 | |||||||||||
Total marketable securities | $ | 62,908 | $ | 1 | $ | (59 | ) | $ | 62,850 |
December 31, 2014 | December 31, 2013 | |||||||
Test equipment | $ | 40,766 | $ | 36,932 | ||||
Computer equipment and purchased software | 30,355 | 27,280 | ||||||
Furniture and fixtures | 1,852 | 1,614 | ||||||
Leasehold improvements | 6,550 | 7,077 | ||||||
Total | 79,523 | 72,903 | ||||||
Accumulated depreciation and amortization | (59,379 | ) | (55,430 | ) | ||||
Property and equipment, net | $ | 20,144 | $ | 17,473 |
Fiscal Year 2014 Quarter Ended | ||||||||||||||||
March 29 | June 28 | September 27 | December 31 | |||||||||||||
Revenue | $ | 85,820 | $ | 98,005 | $ | 105,769 | $ | 111,633 | ||||||||
Gross profit | 36,926 | 44,342 | 45,080 | 51,441 | ||||||||||||
Operating loss | (9,897 | ) | (3,890 | ) | (3,744 | ) | (2,853 | ) | ||||||||
Net loss | (10,027 | ) | (3,951 | ) | (3,848 | ) | (2,988 | ) | ||||||||
Net loss per common share, basic | $ | (0.20 | ) | $ | (0.08 | ) | $ | (0.08 | ) | $ | (0.06 | ) | ||||
Net loss per common share, diluted | $ | (0.20 | ) | $ | (0.08 | ) | $ | (0.08 | ) | $ | (0.06 | ) | ||||
Fiscal Year 2013 Quarter Ended | ||||||||||||||||
March 30 | June 29 | September 28 | December 31 (1) | |||||||||||||
Revenue | $ | 90,548 | $ | 94,439 | $ | 103,628 | $ | 94,003 | ||||||||
Gross profit | 41,115 | 42,505 | 47,407 | 40,047 | ||||||||||||
Operating loss | (5,540 | ) | (4,845 | ) | (12 | ) | (8,056 | ) | ||||||||
Net income (loss) | (6,203 | ) | (5,153 | ) | 544 | (6,453 | ) | |||||||||
Net income (loss) per common share, basic | $ | (0.13 | ) | $ | (0.10 | ) | $ | 0.01 | $ | (0.13 | ) | |||||
Net income (loss) per common share, diluted | $ | (0.13 | ) | $ | (0.10 | ) | $ | 0.01 | $ | (0.13 | ) | |||||
(1) For the fourth quarter of 2013, net loss included $1.7 million of gain from utilization of inventory credit from Ericsson. See Note 2, \"Business Combinations\" of these Notes to the Consolidated Financial Statements for details of the Ericsson Credit. |
• | Persuasive evidence of an arrangement exists. The Company generally relies upon sales agreements and customer purchase orders as evidence of an arrangement. |
• | Delivery has occurred. The Company uses the shipping terms of the arrangement or evidence of customer acceptance to verify delivery or performance. |
• | Sales price is fixed or determinable. The Company assesses whether the sales price is fixed or determinable based on the payment terms and whether the sales price is subject to refund or adjustment. Payment terms to customers can range from net 30 to net 120 days. |
• | Collectability is reasonably assured. The Company assesses collectability based primarily on creditworthiness of customers and their payment histories. |
December 31, 2014 | December 31, 2013 | |||||||
Accounts receivable | $ | 31,493 | $ | 44,642 | ||||
Allowance for doubtful accounts | (241 | ) | (358 | ) | ||||
Product return reserve | (508 | ) | (764 | ) | ||||
Accounts receivable, net | $ | 30,744 | $ | 43,520 |
December 31, 2014 | December 31, 2013 | |||||||
Accrued compensation and related benefits | $ | 15,782 | $ | 13,127 | ||||
Accrued warranty | 9,553 | 10,856 | ||||||
Accrued professional and consulting fees | 5,860 | 1,634 | ||||||
Accrued business travel expenses | 1,414 | 540 | ||||||
Accrued excess and obsolete inventory at contract manufacturers | 888 | 756 | ||||||
Accrued customer rebates | 851 | 712 | ||||||
Accrued rent reserve | 412 | 341 | ||||||
Sales and use tax payable | 397 | 521 | ||||||
Accrued freight | 303 | 612 | ||||||
Income taxes payable | 269 | 368 | ||||||
Accrued other | 3,714 | 2,608 | ||||||
Total accrued liabilities | $ | 39,443 | $ | 32,075 |
Year Ended December 31, 2014 | |||||||||||
Unrealized Gains and Losses on Available-for-Sale Marketable Securities | Foreign Currency Translation Adjustments | Total | |||||||||
Balance at beginning of period | $ | — | $ | 190 | $ | 190 | |||||
Other comprehensive loss before | |||||||||||
reclassification adjustments | (57 | ) | (52 | ) | (109 | ) | |||||
Reclassification adjustment for realized gains on | |||||||||||
marketable securities included in net loss | (1 | ) | — | (1 | ) | ||||||
Other comprehensive loss | (58 | ) | (52 | ) | (110 | ) | |||||
Balance at end of period | $ | (58 | ) | $ | 138 | $ | 80 | ||||
Year Ended December 31, 2013 | |||||||||||
Unrealized Gains and Losses on Available-for-Sale Marketable Securities | Foreign Currency Translation Adjustments | Total | |||||||||
Balance at beginning of period | $ | — | $ | 132 | $ | 132 | |||||
Other comprehensive income | — | 58 | 58 | ||||||||
Balance at end of period | $ | — | $ | 190 | $ | 190 | |||||
Year Ended December 31, 2012 | |||||||||||
Unrealized Gains and Losses on Available-for-Sale Marketable Securities | Foreign Currency Translation Adjustments | Total | |||||||||
Balance at beginning of period | $ | — | $ | 98 | $ | 98 | |||||
Other comprehensive income | — | 34 | 34 | ||||||||
Balance at end of period | $ | — | $ | 132 | $ | 132 |
December 31, 2014 | December 31, 2013 | |||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net | Gross Carrying Amount | Accumulated Amortization | Net | |||||||||||||||||||
Core developed technology | $ | 68,964 | $ | (55,694 | ) | $ | 13,270 | $ | 68,964 | $ | (47,339 | ) | $ | 21,625 | ||||||||||
Customer relationships | 54,740 | (42,831 | ) | 11,909 | 54,740 | (32,625 | ) | 22,115 | ||||||||||||||||
Total intangible assets, excluding goodwill | $ | 123,704 | $ | (98,525 | ) | $ | 25,179 | $ | 123,704 | $ | (79,964 | ) | $ | 43,740 |
December 31, 2014 | December 31, 2013 | |||||||
Cash and cash equivalents: | ||||||||
Cash | $ | 17,866 | $ | 62,905 | ||||
Money market funds | 30,963 | 19,842 | ||||||
Total cash and cash equivalents | 48,829 | 82,747 | ||||||
Marketable securities: | ||||||||
Corporate debt securities | 61,050 | — | ||||||
Commercial paper | 1,800 | — | ||||||
Total marketable securities | 62,850 | — | ||||||
Total cash, cash equivalents and marketable securities | $ | 111,679 | $ | 82,747 |
Years Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
Federal current income tax (benefit) | $ | — | $ | (274 | ) | $ | 152 | ||||
State current income tax | 104 | 41 | 73 | ||||||||
Foreign current income tax | 469 | 315 | 440 | ||||||||
Federal deferred income tax (benefit) | — | — | (474 | ) | |||||||
State deferred income tax (benefit) | — | — | (89 | ) | |||||||
Foreign deferred income tax (benefit) | 8 | (96 | ) | 56 | |||||||
Provision for (benefit from) income taxes | $ | 581 | $ | (14 | ) | $ | 158 |
As of December 31, | |||||||
2014 | 2013 | ||||||
Deferred tax assets: | |||||||
Net operating loss carryforwards | $ | 166,150 | $ | 168,431 | |||
Tax credit carryforwards | 25,052 | 22,507 | |||||
Depreciation and amortization | 1,275 | 2,996 | |||||
Accruals and reserves | 13,810 | 11,479 | |||||
Deferred revenue | 9,930 | 12,037 | |||||
Stock-based compensation | 5,138 | 5,570 | |||||
Other | 498 | 450 | |||||
Gross deferred tax assets | 221,853 | 223,470 | |||||
Valuation allowance | (212,703 | ) | (207,315 | ) | |||
Net deferred tax assets | 9,150 | 16,155 | |||||
Deferred tax liabilities: | |||||||
Intangible assets | (8,995 | ) | (15,988 | ) | |||
Net deferred tax assets reflected in balance sheet | $ | 155 | $ | 167 |
As of December 31, | |||||||
2014 | 2013 | ||||||
Deferred tax assets, current | $ | 785 | $ | — | |||
Deferred tax assets, long-term | 155 | 167 | |||||
Deferred tax liabilities, long-term | (785 | ) | — | ||||
$ | 155 | $ | 167 |
Years Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
Numerator: | |||||||||||
Net loss | $ | (20,814 | ) | $ | (17,265 | ) | $ | (28,326 | ) | ||
Denominator: | |||||||||||
Weighted-average common shares outstanding | 50,808 | 49,419 | 48,180 | ||||||||
Basic and diluted net loss per common share | $ | (0.41 | ) | $ | (0.35 | ) | $ | (0.59 | ) | ||
Potentially dilutive shares, weighted-average | 5,020 | 5,308 | 4,454 |
Years Ended December 31, | ||||||||
2014 | 2013 | 2012 | ||||||
Federal statutory rate | 34.0 | % | 34.0 | % | 34.0 | % | ||
State statutory rate | 2.5 | % | 3.4 | % | 5.2 | % | ||
Foreign operations | (0.1 | )% | 1.4 | % | 0.1 | % | ||
Release of FIN 48 liability and interest | — | % | 0.7 | % | — | % | ||
R&D tax credits | 9.2 | % | 13.1 | % | 2.5 | % | ||
Release of valuation allowance related to EFAA acquisition | — | % | — | % | 2.0 | % | ||
Acquisition-related costs | — | % | — | % | 1.2 | % | ||
Other permanent items | (2.7 | )% | (4.5 | )% | 0.1 | % | ||
Tax true-up | (0.2 | )% | 1.0 | % | — | % | ||
Valuation allowance | (45.6 | )% | (49.0 | )% | (45.7 | )% | ||
Effective tax rate | (2.9 | )% | 0.1 | % | (0.6 | )% |
As of December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
United States | $ | 17,852 | $ | 14,969 | $ | 18,390 | ||||||
China | 2,292 | 2,504 | 2,693 | |||||||||
Total | $ | 20,144 | $ | 17,473 | $ | 21,083 |
As of December 31, 2014 | Level 1 | Level 2 | Total | |||||||||
Money market funds | $ | 30,963 | $ | — | $ | 30,963 | ||||||
Corporate debt securities | — | 61,050 | 61,050 | |||||||||
Commercial paper | — | 1,800 | 1,800 | |||||||||
Total | $ | 30,963 | $ | 62,850 | $ | 93,813 |
As of December 31, 2013 | Level 1 | Level 2 | Total | |||||||||
Money market funds | $ | 19,842 | $ | — | $ | 19,842 | ||||||
Corporate debt securities | — | — | — | |||||||||
Commercial paper | — | — | — | |||||||||
Total | $ | 19,842 | $ | — | $ | 19,842 |
Period | Minimum Future Lease Payments | |||
2015 | $ | 3,193 | ||
2016 | 2,658 | |||
2017 | 2,594 | |||
2018 | 2,325 | |||
2019 | 579 | |||
Thereafter | 470 | |||
Total | $ | 11,819 |
Years Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
Domestic | $ | (21,495 | ) | $ | (18,500 | ) | $ | (28,987 | ) | ||
Foreign | 1,262 | 1,221 | 819 | ||||||||
Loss before provision for income taxes | $ | (20,233 | ) | $ | (17,279 | ) | $ | (28,168 | ) |
December 31, 2014 | December 31, 2013 | |||||||
Raw materials | $ | 3,180 | $ | 6,591 | ||||
Finished goods | 43,573 | 44,480 | ||||||
Total inventory | $ | 46,753 | $ | 51,071 |
Years Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Balance at beginning of period | $ | 10,856 | $ | 11,762 | $ | 12,104 | ||||||
Warranty charged to cost of revenue | 3,394 | 4,350 | 4,701 | |||||||||
Utilization of warranty | (4,697 | ) | (5,256 | ) | (5,043 | ) | ||||||
Balance at end of period | $ | 9,553 | $ | 10,856 | $ | 11,762 |
Fiscal Year 2014 Quarter Ended | ||||||||||||||||
March 29 | June 28 | September 27 | December 31 | |||||||||||||
Revenue | $ | 85,820 | $ | 98,005 | $ | 105,769 | $ | 111,633 | ||||||||
Gross profit | 36,926 | 44,342 | 45,080 | 51,441 | ||||||||||||
Operating loss | (9,897 | ) | (3,890 | ) | (3,744 | ) | (2,853 | ) | ||||||||
Net loss | (10,027 | ) | (3,951 | ) | (3,848 | ) | (2,988 | ) | ||||||||
Net loss per common share, basic | $ | (0.20 | ) | $ | (0.08 | ) | $ | (0.08 | ) | $ | (0.06 | ) | ||||
Net loss per common share, diluted | $ | (0.20 | ) | $ | (0.08 | ) | $ | (0.08 | ) | $ | (0.06 | ) | ||||
Fiscal Year 2013 Quarter Ended | ||||||||||||||||
March 30 | June 29 | September 28 | December 31 (1) | |||||||||||||
Revenue | $ | 90,548 | $ | 94,439 | $ | 103,628 | $ | 94,003 | ||||||||
Gross profit | 41,115 | 42,505 | 47,407 | 40,047 | ||||||||||||
Operating loss | (5,540 | ) | (4,845 | ) | (12 | ) | (8,056 | ) | ||||||||
Net income (loss) | (6,203 | ) | (5,153 | ) | 544 | (6,453 | ) | |||||||||
Net income (loss) per common share, basic | $ | (0.13 | ) | $ | (0.10 | ) | $ | 0.01 | $ | (0.13 | ) | |||||
Net income (loss) per common share, diluted | $ | (0.13 | ) | $ | (0.10 | ) | $ | 0.01 | $ | (0.13 | ) | |||||
(1) For the fourth quarter of 2013, net loss included $1.7 million of gain from utilization of inventory credit from Ericsson. See Note 2, \"Business Combinations\" of these Notes to the Consolidated Financial Statements for details of the Ericsson Credit. |
At November 2, 2012 | |||
Inventory | $ | 9,361 | |
Other current asset | 739 | ||
Property and equipment | 3,616 | ||
Other current liabilities | (124 | ) | |
Deferred tax liability | (563 | ) | |
Net assets acquired | 13,029 | ||
Gain on bargain purchase | (1,029 | ) | |
Total purchase price | $ | 12,000 |
Years Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
United States | $ | 352,458 | $ | 333,403 | $ | 306,003 | ||||||
Caribbean | 18,725 | 17,466 | 9,343 | |||||||||
Europe | 5,948 | 17,397 | 268 | |||||||||
Canada | 9,995 | 10,231 | 10,894 | |||||||||
Other | 14,101 | 4,121 | 3,710 | |||||||||
Total | $ | 401,227 | $ | 382,618 | $ | 330,218 |
Weighted- | Weighted-Average | ||||||||||||
Average | Remaining | Aggregate | |||||||||||
Number of | Exercise Price | Contractual Life | Intrinsic | ||||||||||
Stock Options | Shares | Per Share | (in years) | Value (1) | |||||||||
Outstanding as of December 31, 2013 | 2,560 | $ | 12.96 | ||||||||||
Granted | 1,880 | 9.29 | |||||||||||
Exercised | (224 | ) | 7.44 | ||||||||||
Forfeited | (258 | ) | 9.21 | ||||||||||
Expired | (257 | ) | 17.44 | ||||||||||
Outstanding as of December 31, 2014 | 3,701 | $ | 11.38 | 7.9 | $ | 3,291 | |||||||
Vested and expected to vest as of December 31, 2014 | 3,610 | $ | 11.43 | 7.9 | $ | 3,218 | |||||||
Options exercisable as of December 31, 2014 | 1,474 | $ | 14.34 | 5.8 | $ | 1,377 | |||||||
(1) Amounts represent the difference between the exercise price and the fair market value of common stock at December 31, 2014 for all in the money options outstanding. |
Years Ended December 31, | ||||||||
ESPP | 2014 | 2013 | 2012 | |||||
Expected volatility | 45 | % | 50 | % | 63 | % | ||
Expected life (years) | 0.50 | 0.50 | 0.50 | |||||
Expected dividend yield | — | — | — | |||||
Risk-free interest rate | 0.07 | % | 0.09 | % | 0.13 | % |
Years Ended December 31, | ||||||||
Stock Options | 2014 | 2013 | 2012 | |||||
Expected volatility | 52 | % | 62 | % | 56 | % | ||
Expected life (years) | 6.21 | 6.05 | 6.25 | |||||
Expected dividend yield | — | — | — | |||||
Risk-free interest rate | 1.87 | % | 1.14 | % | 1.06 | % |
RSUs | PRSUs | RSAs | ||||||||||||||||||
Weighted-Average | Weighted-Average | Weighted-Average | ||||||||||||||||||
Grant Date | Grant Date | Grant Date | ||||||||||||||||||
Number of | Fair Value | Number of | Fair Value | Number of | Fair Value | |||||||||||||||
Shares | Per Share | Shares | Per Share | Shares | Per Share | |||||||||||||||
Outstanding at December 31, 2013 | 1,506 | $ | 11.04 | 413 | $ | 12.81 | 189 | $ | 21.67 | |||||||||||
Granted | 987 | 8.72 | 174 | 9.16 | — | — | ||||||||||||||
Vested | (661 | ) | 11.68 | (168 | ) | 14.61 | (117 | ) | 21.67 | |||||||||||
Canceled | (98 | ) | 10.07 | (57 | ) | 10.80 | (10 | ) | 21.67 | |||||||||||
Outstanding at December 31, 2014 | 1,734 | $ | 9.53 | 362 | $ | 10.53 | 62 | $ | 21.67 |
Expiration Date | Exercise Price Per Share | Number of Warrants Outstanding | ||||
September 4, 2017 | $ | 19.56 | 15 |
As of December 31, 2014 | ||||||||||||||||||||
Stock Option | RSU | PRSU | RSA | ESPP | ||||||||||||||||
Unrecognized stock-based compensation expense | $ | 5,145 | $ | 10,768 | $ | 848 | $ | 699 | $ | 692 | ||||||||||
Weighted-average amortization period (in years) | 2.6 | 2.4 | 1.2 | 0.6 | 0.4 |
Additions | ||||||||||||||||
Charged to | ||||||||||||||||
Balance | Costs or | Deductions | ||||||||||||||
At Beginning | Expenses or | and Write | Balance At | |||||||||||||
of Year | Revenue | Offs | End of Year | |||||||||||||
(In thousands) | ||||||||||||||||
Year ended December 31, 2014 | ||||||||||||||||
Allowance for doubtful accounts | $ | 358 | $ | 154 | $ | (271 | ) | $ | 241 | |||||||
Product return reserve | 764 | 4,805 | (5,061 | ) | 508 | |||||||||||
Year ended December 31, 2013 | ||||||||||||||||
Allowance for doubtful accounts | $ | 421 | $ | (13 | ) | $ | (50 | ) | $ | 358 | ||||||
Product return reserve | 1,740 | 3,535 | (4,511 | ) | 764 | |||||||||||
Year ended December 31, 2012 | ||||||||||||||||
Allowance for doubtful accounts | $ | 402 | $ | 112 | $ | (93 | ) | $ | 421 | |||||||
Product return reserve | 835 | 5,474 | (4,569 | ) | 1,740 |
Period | Expected Amortization Expense | ||
2015 | $ | 18,561 | |
2016 | 5,805 | ||
2017 | 813 | ||
Total | $ | 25,179 |
Percentage of Accounts Receivable | Percentage of Revenue | |||||||||
At December 31, | Years Ended December 31, | |||||||||
2014 | 2013 | 2014 | 2013 | 2012 | ||||||
CenturyLink | * | 15% | 23% | 26% | 21% | |||||
Ericsson (1) | * | 12% | * | * | * | |||||
(1) Includes certain of Ericsson's consolidated subsidiaries. | ||||||||||
* Less than 10% of total accounts receivable or revenue. |
Years Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
United States | $ | 352,458 | $ | 333,403 | $ | 306,003 | ||||||
Caribbean | 18,725 | 17,466 | 9,343 | |||||||||
Europe | 5,948 | 17,397 | 268 | |||||||||
Canada | 9,995 | 10,231 | 10,894 | |||||||||
Other | 14,101 | 4,121 | 3,710 | |||||||||
Total | $ | 401,227 | $ | 382,618 | $ | 330,218 |
As of December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
United States | $ | 17,852 | $ | 14,969 | $ | 18,390 | ||||||
China | 2,292 | 2,504 | 2,693 | |||||||||
Total | $ | 20,144 | $ | 17,473 | $ | 21,083 |
Weighted- | Weighted-Average | ||||||||||||
Average | Remaining | Aggregate | |||||||||||
Number of | Exercise Price | Contractual Life | Intrinsic | ||||||||||
Stock Options | Shares | Per Share | (in years) | Value (1) | |||||||||
Outstanding as of December 31, 2013 | 2,560 | $ | 12.96 | ||||||||||
Granted | 1,880 | 9.29 | |||||||||||
Exercised | (224 | ) | 7.44 | ||||||||||
Forfeited | (258 | ) | 9.21 | ||||||||||
Expired | (257 | ) | 17.44 | ||||||||||
Outstanding as of December 31, 2014 | 3,701 | $ | 11.38 | 7.9 | $ | 3,291 | |||||||
Vested and expected to vest as of December 31, 2014 | 3,610 | $ | 11.43 | 7.9 | $ | 3,218 | |||||||
Options exercisable as of December 31, 2014 | 1,474 | $ | 14.34 | 5.8 | $ | 1,377 | |||||||
(1) Amounts represent the difference between the exercise price and the fair market value of common stock at December 31, 2014 for all in the money options outstanding. |
RSUs | PRSUs | RSAs | ||||||||||||||||||
Weighted-Average | Weighted-Average | Weighted-Average | ||||||||||||||||||
Grant Date | Grant Date | Grant Date | ||||||||||||||||||
Number of | Fair Value | Number of | Fair Value | Number of | Fair Value | |||||||||||||||
Shares | Per Share | Shares | Per Share | Shares | Per Share | |||||||||||||||
Outstanding at December 31, 2013 | 1,506 | $ | 11.04 | 413 | $ | 12.81 | 189 | $ | 21.67 | |||||||||||
Granted | 987 | 8.72 | 174 | 9.16 | — | — | ||||||||||||||
Vested | (661 | ) | 11.68 | (168 | ) | 14.61 | (117 | ) | 21.67 | |||||||||||
Canceled | (98 | ) | 10.07 | (57 | ) | 10.80 | (10 | ) | 21.67 | |||||||||||
Outstanding at December 31, 2014 | 1,734 | $ | 9.53 | 362 | $ | 10.53 | 62 | $ | 21.67 |
Years Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
Stock options | $ | 4.79 | $ | 4.89 | $ | 4.68 | |||||
RSUs | $ | 8.72 | $ | 9.20 | $ | 6.55 | |||||
PRSUs | $ | 9.16 | $ | 11.24 | $ | 14.81 | |||||
RSAs | N/A | N/A | N/A | ||||||||
ESPP | $ | 2.46 | $ | 2.94 | $ | 2.34 |
Years Ended December 31, | ||||||||
Stock Options | 2014 | 2013 | 2012 | |||||
Expected volatility | 52 | % | 62 | % | 56 | % | ||
Expected life (years) | 6.21 | 6.05 | 6.25 | |||||
Expected dividend yield | — | — | — | |||||
Risk-free interest rate | 1.87 | % | 1.14 | % | 1.06 | % |
Years Ended December 31, | ||||||||
ESPP | 2014 | 2013 | 2012 | |||||
Expected volatility | 45 | % | 50 | % | 63 | % | ||
Expected life (years) | 0.50 | 0.50 | 0.50 | |||||
Expected dividend yield | — | — | — | |||||
Risk-free interest rate | 0.07 | % | 0.09 | % | 0.13 | % |
As of December 31, 2014 | ||||||||||||||||||||
Stock Option | RSU | PRSU | RSA | ESPP | ||||||||||||||||
Unrecognized stock-based compensation expense | $ | 5,145 | $ | 10,768 | $ | 848 | $ | 699 | $ | 692 | ||||||||||
Weighted-average amortization period (in years) | 2.6 | 2.4 | 1.2 | 0.6 | 0.4 |
Expiration Date | Exercise Price Per Share | Number of Warrants Outstanding | ||||
September 4, 2017 | $ | 19.56 | 15 |
As of December 31, | ||||||||
2014 | 2013 | 2012 | ||||||
Stock options outstanding | 3,701 | 2,560 | 2,213 | |||||
Restricted stock units outstanding | 1,734 | 1,506 | 1,762 | |||||
Performance restricted stock units outstanding | 362 | 413 | 183 | |||||
Shares available for future grant under 2010 Plan | 2,283 | 3,652 | 3,959 | |||||
Shares available for future issuance under ESPP | 1,891 | 2,574 | 3,260 | |||||
Common stock warrants | 15 | 23 | 23 | |||||
Total | 9,986 | 10,728 | 11,400 |
Years Ended December 31, | |||||||
2014 | 2013 | ||||||
Balance at beginning of period | $ | 14,382 | $ | 13,238 | |||
Additions for tax positions related to prior year | 76 | 317 | |||||
Reductions for tax positions related to prior year | — | (48 | ) | ||||
Additions for tax positions related to current year | 963 | 990 | |||||
Reductions from a lapse of applicable statute of limitations | — | (115 | ) | ||||
Balance at end of period | $ | 15,421 | $ | 14,382 |
December 31, 2014 | December 31, 2013 | |||||||
Accounts receivable | $ | 31,493 | $ | 44,642 | ||||
Allowance for doubtful accounts | (241 | ) | (358 | ) | ||||
Product return reserve | (508 | ) | (764 | ) | ||||
Accounts receivable, net | $ | 30,744 | $ | 43,520 |
December 31, 2014 | December 31, 2013 | |||||||
Raw materials | $ | 3,180 | $ | 6,591 | ||||
Finished goods | 43,573 | 44,480 | ||||||
Total inventory | $ | 46,753 | $ | 51,071 |
December 31, 2014 | December 31, 2013 | |||||||
Test equipment | $ | 40,766 | $ | 36,932 | ||||
Computer equipment and purchased software | 30,355 | 27,280 | ||||||
Furniture and fixtures | 1,852 | 1,614 | ||||||
Leasehold improvements | 6,550 | 7,077 | ||||||
Total | 79,523 | 72,903 | ||||||
Accumulated depreciation and amortization | (59,379 | ) | (55,430 | ) | ||||
Property and equipment, net | $ | 20,144 | $ | 17,473 |
December 31, 2014 | December 31, 2013 | |||||||
Accrued compensation and related benefits | $ | 15,782 | $ | 13,127 | ||||
Accrued warranty | 9,553 | 10,856 | ||||||
Accrued professional and consulting fees | 5,860 | 1,634 | ||||||
Accrued business travel expenses | 1,414 | 540 | ||||||
Accrued excess and obsolete inventory at contract manufacturers | 888 | 756 | ||||||
Accrued customer rebates | 851 | 712 | ||||||
Accrued rent reserve | 412 | 341 | ||||||
Sales and use tax payable | 397 | 521 | ||||||
Accrued freight | 303 | 612 | ||||||
Income taxes payable | 269 | 368 | ||||||
Accrued other | 3,714 | 2,608 | ||||||
Total accrued liabilities | $ | 39,443 | $ | 32,075 |
December 31, 2014 | December 31, 2013 | |||||||
Deferred Revenue: | ||||||||
Product and services - current | $ | 9,753 | $ | 32,051 | ||||
Extended warranty - current | 2,969 | 2,811 | ||||||
Extended warranty - non-current | 19,211 | 18,335 | ||||||
Product and services - non-current | 182 | 96 | ||||||
Total deferred revenue | $ | 32,115 | $ | 53,293 |