\u2022 | Products Delivered at a Point in Time. The Company sells its products to customers in accordance with the terms of the related customer contracts. The Company generates revenues from sales of its solutions, which include microinverter units and related accessories, an Envoy communications gateway and Enlighten service, communications accessories and AC Battery\u2122 storage solutions to distributors, large installers, OEMs and strategic partners. Microinverter units, microinverter accessories, and AC Battery storage solutions are delivered to customers at a point in time, and the Company recognizes revenue for these products when the Company transfers control of the product to the customer, which is generally upon shipment. |
\u2022 | Products Delivered Over Time. The sale of an Envoy communications gateway includes the Company\u2019s Enlighten cloud-based monitoring service. The full consideration for these products represents a single performance obligation and is deferred at the sale date and recognized over the estimated service period of 6 years. The Company also sells certain communication accessories that are delivered over time. The revenue from these products is recognized over the related service period, which is typically 5 or 12 years. |
\u2022 | Products Delivered at a Point in Time. Cost of revenue from these products is recognized when the Company transfers control of the product to the customer, which is generally upon shipment. |
\u2022 | Products Delivered Over Time. Cost of revenue from these products is recognized over the related service period. |
December\u00a031, | |||||||||||
2019 | 2018 | 2017 | |||||||||
(In thousands) | |||||||||||
Balance, at beginning of year | $ | 2,138 | $ | 2,378 | $ | 2,921 | |||||
Net charges to expenses | 217 | 711 | 476 | ||||||||
Write-offs, net of recoveries | (1,791 | ) | (951 | ) | (1,019 | ) | |||||
Balance, at end of year | $ | 564 | $ | 2,138 | $ | 2,378 |
December\u00a031, | |||||||||||
2019 | 2018 | 2017 | |||||||||
(In thousands) | |||||||||||
Balance, at beginning of year | $ | 2,138 | $ | 2,378 | $ | 2,921 | |||||
Net charges to expenses | 217 | 711 | 476 | ||||||||
Write-offs, net of recoveries | (1,791 | ) | (951 | ) | (1,019 | ) | |||||
Balance, at end of year | $ | 564 | $ | 2,138 | $ | 2,378 |
\u2022 | Products Delivered at a Point in Time. The Company sells its products to customers in accordance with the terms of the related customer contracts. The Company generates revenues from sales of its solutions, which include microinverter units and related accessories, an Envoy communications gateway and Enlighten service, communications accessories and AC Battery\u2122 storage solutions to distributors, large installers, OEMs and strategic partners. Microinverter units, microinverter accessories, and AC Battery storage solutions are delivered to customers at a point in time, and the Company recognizes revenue for these products when the Company transfers control of the product to the customer, which is generally upon shipment. |
\u2022 | Products Delivered Over Time. The sale of an Envoy communications gateway includes the Company\u2019s Enlighten cloud-based monitoring service. The full consideration for these products represents a single performance obligation and is deferred at the sale date and recognized over the estimated service period of 6 years. The Company also sells certain communication accessories that are delivered over time. The revenue from these products is recognized over the related service period, which is typically 5 or 12 years. |
\u2022 | Products Delivered at a Point in Time. Cost of revenue from these products is recognized when the Company transfers control of the product to the customer, which is generally upon shipment. |
Years Ended December 31, | |||||||
2019 | 2018 | ||||||
(In thousands) | |||||||
Primary geographical markets: | |||||||
United States | $ | 523,577 | $ | 219,600 | |||
International | 100,756 | 96,559 | |||||
Total | $ | 624,333 | $ | 316,159 | |||
Timing of revenue recognition: | |||||||
Products delivered at a point in time | $ | 584,556 | $ | 270,778 | |||
Products and services delivered over time | 39,777 | 45,381 | |||||
Total | $ | 624,333 | $ | 316,159 |
December\u00a031, 2019 | December\u00a031, 2018 | ||||||
(In thousands) | |||||||
Receivables | $ | 145,413 | $ | 78,938 | |||
Short-term contract assets (Prepaid expenses and other assets) | 15,055 | 13,516 | |||||
Long-term contract assets (Other assets) | 42,087 | 34,148 | |||||
Short-term contract liabilities (Deferred revenues) | 81,783 | 33,119 | |||||
Long-term contract liabilities (Deferred revenues) | 100,204 | 76,911 |
Contract Assets | |||
Balance on December 31, 2018 | $ | 47,664 | |
Amount recognized | (15,144 | ) | |
Increase | 24,622 | ||
Balance as of December 31, 2019 | $ | 57,142 |
Contract Liabilities | |||
Balance on December 31, 2018 | $ | 110,030 | |
Revenue recognized | (39,777 | ) | |
Increase due to billings | 61,825 | ||
Increase due to safe harbor prepayments | 49,909 | ||
Balance as of December 31, 2019 | $ | 181,987 |
December\u00a031, 2019 | |||
(In thousands) | |||
Fiscal year: | |||
2020 | $ | 81,783 | |
2021 | 30,665 | ||
2022 | 25,633 | ||
2023 | 19,841 | ||
2024 | 14,650 | ||
Thereafter | 9,415 | ||
Total | $ | 181,987 |
Years Ended December 31, | |||||||
2019 | 2018 | ||||||
(In thousands) | |||||||
Primary geographical markets: | |||||||
United States | $ | 523,577 | $ | 219,600 | |||
International | 100,756 | 96,559 | |||||
Total | $ | 624,333 | $ | 316,159 | |||
Timing of revenue recognition: | |||||||
Products delivered at a point in time | $ | 584,556 | $ | 270,778 | |||
Products and services delivered over time | 39,777 | 45,381 | |||||
Total | $ | 624,333 | $ | 316,159 |
Contract Assets | |||
Balance on December 31, 2018 | $ | 47,664 | |
Amount recognized | (15,144 | ) | |
Increase | 24,622 | ||
Balance as of December 31, 2019 | $ | 57,142 |
December\u00a031, 2019 | December\u00a031, 2018 | ||||||
(In thousands) | |||||||
Receivables | $ | 145,413 | $ | 78,938 | |||
Short-term contract assets (Prepaid expenses and other assets) | 15,055 | 13,516 | |||||
Long-term contract assets (Other assets) | 42,087 | 34,148 | |||||
Short-term contract liabilities (Deferred revenues) | 81,783 | 33,119 | |||||
Long-term contract liabilities (Deferred revenues) | 100,204 | 76,911 |
Contract Liabilities | |||
Balance on December 31, 2018 | $ | 110,030 | |
Revenue recognized | (39,777 | ) | |
Increase due to billings | 61,825 | ||
Increase due to safe harbor prepayments | 49,909 | ||
Balance as of December 31, 2019 | $ | 181,987 |
December\u00a031, 2019 | |||
(In thousands) | |||
Fiscal year: | |||
2020 | $ | 81,783 | |
2021 | 30,665 | ||
2022 | 25,633 | ||
2023 | 19,841 | ||
2024 | 14,650 | ||
Thereafter | 9,415 | ||
Total | $ | 181,987 |
December\u00a031, 2019 | December\u00a031, 2018 | ||||||
(In thousands) | |||||||
Raw materials | $ | 4,197 | $ | 970 | |||
Finished goods | 27,859 | 15,297 | |||||
Total inventory | $ | 32,056 | $ | 16,267 |
December\u00a031, 2019 | December\u00a031, 2018 | ||||||
(In thousands) | |||||||
Raw materials | $ | 4,197 | $ | 970 | |||
Finished goods | 27,859 | 15,297 | |||||
Total inventory | $ | 32,056 | $ | 16,267 |
Estimated\u00a0Useful Life | December 31, | ||||||||
2019 | 2018 | ||||||||
(Years) | (In thousands) | ||||||||
Equipment and machinery | 3-10 | $ | 48,114 | $ | 43,566 | ||||
Furniture and fixtures | 5-10 | 2,404 | 2,239 | ||||||
Computer equipment | 3-5 | 1,698 | 2,958 | ||||||
Capitalized software costs | 3-5 | 11,656 | 12,114 | ||||||
Leasehold improvements | 3-10 | 8,713 | 8,482 | ||||||
Construction in process | 8,446 | 3,536 | |||||||
Total | 81,031 | 72,895 | |||||||
Less accumulated depreciation and amortization | (52,095 | ) | (51,897 | ) | |||||
Property and equipment, net | $ | 28,936 | $ | 20,998 |
Estimated\u00a0Useful Life | December 31, | ||||||||
2019 | 2018 | ||||||||
(Years) | (In thousands) | ||||||||
Equipment and machinery | 3-10 | $ | 48,114 | $ | 43,566 | ||||
Furniture and fixtures | 5-10 | 2,404 | 2,239 | ||||||
Computer equipment | 3-5 | 1,698 | 2,958 | ||||||
Capitalized software costs | 3-5 | 11,656 | 12,114 | ||||||
Leasehold improvements | 3-10 | 8,713 | 8,482 | ||||||
Construction in process | 8,446 | 3,536 | |||||||
Total | 81,031 | 72,895 | |||||||
Less accumulated depreciation and amortization | (52,095 | ) | (51,897 | ) | |||||
Property and equipment, net | $ | 28,936 | $ | 20,998 |
December\u00a031, 2019 | December\u00a031, 2018 | ||||||||||||||||||||||
Gross | Accumulated Amortization | Net | Gross | Accumulated Amortization | Net | ||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Goodwill | $ | 24,783 | $ | \u2014 | $ | 24,783 | $ | 24,783 | $ | \u2014 | $ | 24,783 | |||||||||||
Intangible assets: | |||||||||||||||||||||||
Other indefinite-lived intangibles | $ | 286 | $ | \u2014 | $ | 286 | $ | 286 | $ | \u2014 | $ | 286 | |||||||||||
Intangible assets with finite lives: | |||||||||||||||||||||||
Patents and licensed technology | \u2014 | \u2014 | \u2014 | 1,665 | (1,665 | ) | \u2014 | ||||||||||||||||
Developed technology | 13,100 | (3,093 | ) | 10,007 | 13,100 | (909 | ) | 12,191 | |||||||||||||||
Customer relationships | 23,100 | (2,814 | ) | 20,286 | 23,100 | (271 | ) | 22,829 | |||||||||||||||
Total purchased intangible assets | $ | 36,486 | $ | (5,907 | ) | $ | 30,579 | $ | 38,151 | $ | (2,845 | ) | $ | 35,306 |
Years Ended December 31, | |||||||
2019 | 2018 | ||||||
(In thousands) | |||||||
Developed technology, and patents and licensed technology | $ | 2,184 | $ | 1,409 | |||
Customer relationships | 2,543 | 271 | |||||
Total amortization expense | $ | 4,727 | $ | 1,680 |
December\u00a031, 2019 | December\u00a031, 2018 | ||||||||||||||||||||||
Gross | Accumulated Amortization | Net | Gross | Accumulated Amortization | Net | ||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Goodwill | $ | 24,783 | $ | \u2014 | $ | 24,783 | $ | 24,783 | $ | \u2014 | $ | 24,783 | |||||||||||
Intangible assets: | |||||||||||||||||||||||
Other indefinite-lived intangibles | $ | 286 | $ | \u2014 | $ | 286 | $ | 286 | $ | \u2014 | $ | 286 | |||||||||||
Intangible assets with finite lives: | |||||||||||||||||||||||
Patents and licensed technology | \u2014 | \u2014 | \u2014 | 1,665 | (1,665 | ) | \u2014 | ||||||||||||||||
Developed technology | 13,100 | (3,093 | ) | 10,007 | 13,100 | (909 | ) | 12,191 | |||||||||||||||
Customer relationships | 23,100 | (2,814 | ) | 20,286 | 23,100 | (271 | ) | 22,829 | |||||||||||||||
Total purchased intangible assets | $ | 36,486 | $ | (5,907 | ) | $ | 30,579 | $ | 38,151 | $ | (2,845 | ) | $ | 35,306 |
Years Ended December 31, | |||||||
2019 | 2018 | ||||||
(In thousands) | |||||||
Developed technology, and patents and licensed technology | $ | 2,184 | $ | 1,409 | |||
Customer relationships | 2,543 | 271 | |||||
Total amortization expense | $ | 4,727 | $ | 1,680 |
December\u00a031, 2019 | December\u00a031, 2018 | ||||||
(In thousands) | |||||||
Salaries, commissions, incentive compensation and benefits | $ | 5,524 | $ | 4,107 | |||
Customer rebates and sales incentives | 24,198 | 8,527 | |||||
Freight | 4,908 | 7,286 | |||||
Operating lease liabilities, current | 3,170 | \u2014 | |||||
Other | 9,292 | 9,090 | |||||
Total accrued liabilities | $ | 47,092 | $ | 29,010 |
December\u00a031, 2019 | December\u00a031, 2018 | ||||||
(In thousands) | |||||||
Salaries, commissions, incentive compensation and benefits | $ | 5,524 | $ | 4,107 | |||
Customer rebates and sales incentives | 24,198 | 8,527 | |||||
Freight | 4,908 | 7,286 | |||||
Operating lease liabilities, current | 3,170 | \u2014 | |||||
Other | 9,292 | 9,090 | |||||
Total accrued liabilities | $ | 47,092 | $ | 29,010 |
Years Ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
(In thousands) | |||||||||||
Warranty obligations, beginning of period | $ | 31,294 | $ | 29,816 | $ | 31,414 | |||||
Accruals for warranties issued during period | 5,244 | 3,040 | 3,797 | ||||||||
Changes in estimates | 8,591 | 6,515 | (732 | ) | |||||||
Settlements | (10,881 | ) | (8,579 | ) | (7,037 | ) | |||||
Increase due to accretion expense | 2,326 | 1,989 | 2,053 | ||||||||
Other | 524 | (1,487 | ) | 321 | |||||||
Warranty obligations, end of period | 37,098 | 31,294 | 29,816 | ||||||||
Less: current portion | (10,078 | ) | (8,083 | ) | (7,427 | ) | |||||
Noncurrent | $ | 27,020 | $ | 23,211 | $ | 22,389 |
Years Ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
(In thousands) | |||||||||||
Warranty obligations, beginning of period | $ | 31,294 | $ | 29,816 | $ | 31,414 | |||||
Accruals for warranties issued during period | 5,244 | 3,040 | 3,797 | ||||||||
Changes in estimates | 8,591 | 6,515 | (732 | ) | |||||||
Settlements | (10,881 | ) | (8,579 | ) | (7,037 | ) | |||||
Increase due to accretion expense | 2,326 | 1,989 | 2,053 | ||||||||
Other | 524 | (1,487 | ) | 321 | |||||||
Warranty obligations, end of period | 37,098 | 31,294 | 29,816 | ||||||||
Less: current portion | (10,078 | ) | (8,083 | ) | (7,427 | ) | |||||
Noncurrent | $ | 27,020 | $ | 23,211 | $ | 22,389 |
\u2022 | Level 1\u2014Valuations based on quoted prices in active markets for identical assets or liabilities that the Company is able to access. Since valuations are based on quoted prices that are readily and regularly available in an active market, valuation of such assets or liabilities do not entail a significant degree of judgment. |
\u2022 | Level 2\u2014Valuations based on one or more quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly. |
\u2022 | Level 3\u2014Valuations based on inputs that are unobservable and significant to the overall fair value measurement. |
Fair Value Hierarchy | December\u00a031, 2019 | December\u00a031, 2018 | |||||||
(In thousands) | |||||||||
Warranty obligations | |||||||||
Current | $ | 6,794 | $ | 4,288 | |||||
Non-current | 13,012 | 7,469 | |||||||
Total warranty obligations measured at fair value | Level 3 | $ | 19,806 | $ | 11,757 |
Years Ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
(In thousands) | |||||||||||
Balance at beginning of period | $ | 11,757 | $ | 9,791 | $ | 10,332 | |||||
Accruals for warranties issued during period | 5,244 | 3,040 | 3,591 | ||||||||
Changes in estimates | 6,167 | 2,455 | (4,551 | ) | |||||||
Settlements | (6,212 | ) | (4,030 | ) | (1,956 | ) | |||||
Increase due to accretion expense | 2,326 | 1,989 | 2,053 | ||||||||
Other | 524 | (1,488 | ) | 322 | |||||||
Balance at end of period | $ | 19,806 | $ | 11,757 | $ | 9,791 |
Percent Used (Weighted Average) | ||||||||
Item Measured at Fair Value | Valuation Technique | Description of Significant Unobservable Input | December\u00a031, 2019 | December\u00a031, 2018 | ||||
Warranty obligations for microinverters sold since January 1, 2014 | Discounted cash flows | Profit element and risk premium | 14% | 16% | ||||
Credit-adjusted risk-free rate | 16% | 19% |
\u2022 | Level 1\u2014Valuations based on quoted prices in active markets for identical assets or liabilities that the Company is able to access. Since valuations are based on quoted prices that are readily and regularly available in an active market, valuation of such assets or liabilities do not entail a significant degree of judgment. |
\u2022 | Level 2\u2014Valuations based on one or more quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly. |
Fair Value Hierarchy | December\u00a031, 2019 | December\u00a031, 2018 | |||||||
(In thousands) | |||||||||
Warranty obligations | |||||||||
Current | $ | 6,794 | $ | 4,288 | |||||
Non-current | 13,012 | 7,469 | |||||||
Total warranty obligations measured at fair value | Level 3 | $ | 19,806 | $ | 11,757 |
Years Ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
(In thousands) | |||||||||||
Balance at beginning of period | $ | 11,757 | $ | 9,791 | $ | 10,332 | |||||
Accruals for warranties issued during period | 5,244 | 3,040 | 3,591 | ||||||||
Changes in estimates | 6,167 | 2,455 | (4,551 | ) | |||||||
Settlements | (6,212 | ) | (4,030 | ) | (1,956 | ) | |||||
Increase due to accretion expense | 2,326 | 1,989 | 2,053 | ||||||||
Other | 524 | (1,488 | ) | 322 | |||||||
Balance at end of period | $ | 19,806 | $ | 11,757 | $ | 9,791 |
Percent Used (Weighted Average) | ||||||||
Item Measured at Fair Value | Valuation Technique | Description of Significant Unobservable Input | December\u00a031, 2019 | December\u00a031, 2018 | ||||
Warranty obligations for microinverters sold since January 1, 2014 | Discounted cash flows | Profit element and risk premium | 14% | 16% | ||||
Credit-adjusted risk-free rate | 16% | 19% |
Years Ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
(In thousands) | |||||||||||
Redundancy and employee severance and benefit arrangements | $ | 1,575 | $ | 2,228 | $ | 2,827 | |||||
Asset impairments | 1,124 | 1,601 | 522 | ||||||||
Consultants engaged in restructuring activities | \u2014 | \u2014 | 12,100 | ||||||||
Lease loss reserves | (100 | ) | 300 | 1,468 | |||||||
Total restructuring charges | $ | 2,599 | $ | 4,129 | $ | 16,917 |
Redundancy and Employee Severance and Benefits | Lease Loss Reserves and Contractual Obligations | Total | |||||||||
(In thousands) | |||||||||||
Balance as of December 31, 2018 | $ | 904 | $ | 288 | $ | 1,192 | |||||
Charges | 2,699 | \u2014 | 2,699 | ||||||||
Cash payments | (1,610 | ) | \u2014 | (1,610 | ) | ||||||
Non-cash settlement and other | (1,993 | ) | (288 | ) | (2,281 | ) | |||||
Balance as of December 31, 2019 | $ | \u2014 | $ | \u2014 | $ | \u2014 |
Years Ended December 31, | |||||||
2019 | 2018 | ||||||
(In thousands) | |||||||
Redundancy and employee severance and benefit arrangements | $ | 1,575 | $ | 2,228 | |||
Asset impairments | 1,124 | 1,636 | |||||
Lease loss reserves | (100 | ) | 340 | ||||
Total restructuring charges | $ | 2,599 | $ | 4,204 |
Employee Severance and Benefits | Lease Loss Reserves and Contractual Obligations | Total | |||||||||
(In thousands) | |||||||||||
Balance as of December 31, 2017 | 229 | 1,094 | 1,323 | ||||||||
Charges and adjustments | \u2014 | (40 | ) | (40 | ) | ||||||
Cash payments and receipts, net | (229 | ) | 537 | 308 | |||||||
Balance as of December 31, 2018 | \u2014 | $ | 1,591 | 1,591 | |||||||
Other (1) | \u2014 | (1,591 | ) | (1,591 | ) | ||||||
Balance as of December 31, 2019 | $ | \u2014 | $ | \u2014 | $ | \u2014 |
Years Ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
(In thousands) | |||||||||||
Redundancy and employee severance and benefit arrangements | $ | 1,575 | $ | 2,228 | $ | 2,827 | |||||
Asset impairments | 1,124 | 1,601 | 522 | ||||||||
Consultants engaged in restructuring activities | \u2014 | \u2014 | 12,100 | ||||||||
Lease loss reserves | (100 | ) | 300 | 1,468 | |||||||
Total restructuring charges | $ | 2,599 | $ | 4,129 | $ | 16,917 |
Years Ended December 31, | |||||||
2019 | 2018 | ||||||
(In thousands) | |||||||
Redundancy and employee severance and benefit arrangements | $ | 1,575 | $ | 2,228 | |||
Asset impairments | 1,124 | 1,636 | |||||
Lease loss reserves | (100 | ) | 340 | ||||
Total restructuring charges | $ | 2,599 | $ | 4,204 |
Redundancy and Employee Severance and Benefits | Lease Loss Reserves and Contractual Obligations | Total | |||||||||
(In thousands) | |||||||||||
Balance as of December 31, 2018 | $ | 904 | $ | 288 | $ | 1,192 | |||||
Charges | 2,699 | \u2014 | 2,699 | ||||||||
Cash payments | (1,610 | ) | \u2014 | (1,610 | ) | ||||||
Non-cash settlement and other | (1,993 | ) | (288 | ) | (2,281 | ) | |||||
Balance as of December 31, 2019 | $ | \u2014 | $ | \u2014 | $ | \u2014 |
Employee Severance and Benefits | Lease Loss Reserves and Contractual Obligations | Total | |||||||||
(In thousands) | |||||||||||
Balance as of December 31, 2017 | 229 | 1,094 | 1,323 | ||||||||
Charges and adjustments | \u2014 | (40 | ) | (40 | ) | ||||||
Cash payments and receipts, net | (229 | ) | 537 | 308 | |||||||
Balance as of December 31, 2018 | \u2014 | $ | 1,591 | 1,591 | |||||||
Other (1) | \u2014 | (1,591 | ) | (1,591 | ) | ||||||
Balance as of December 31, 2019 | $ | \u2014 | $ | \u2014 | $ | \u2014 |
December\u00a031, 2019 | December\u00a031, 2018 | ||||||
(In thousands) | |||||||
Convertible notes | |||||||
Notes due 2024 | $ | 132,000 | $ | \u2014 | |||
Less: unamortized discount and issuance costs | (35,815 | ) | \u2014 | ||||
Carrying amount of Notes due 2024 | 96,185 | \u2014 | |||||
Notes due 2023 | 5,000 | 65,000 | |||||
Less: unamortized issuance costs | (143 | ) | (2,361 | ) | |||
Carrying amount of Notes due 2023 | 4,857 | 62,639 | |||||
Term loan | \u2014 | 41,524 | |||||
Less: unamortized discount and issuance costs | \u2014 | (1,059 | ) | ||||
Carrying amount of term loan | \u2014 | 40,465 | |||||
Sale of long-term financing receivable recorded as debt | 4,501 | 6,679 | |||||
Total carrying amount of debt | 105,543 | 109,783 | |||||
Less: current portion term loan | \u2014 | (25,417 | ) | ||||
Less: current portion of long-term financing receivable recorded as debt | (2,884 | ) | (2,738 | ) | |||
Long-term debt | $ | 102,659 | $ | 81,628 |
Year Ended December 31, 2019 | |||
(In thousands) | |||
Contractual interest expense | $ | 759 | |
Amortization of debt discount | 3,492 | ||
Amortization of debt issuance costs | 375 | ||
Total interest cost recognized | $ | 4,626 |
Years Ended December 31, | |||||||
2019 | 2018 | ||||||
(In thousands) | |||||||
Contractual interest expense | $ | 1,226 | $ | 975 | |||
Amortization of debt issuance costs | 245 | 193 | |||||
Total interest costs recognized | $ | 1,471 | $ | 1,168 |
December\u00a031, 2019 | December\u00a031, 2018 | ||||||
(In thousands) | |||||||
Convertible notes | |||||||
Notes due 2024 | $ | 132,000 | $ | \u2014 | |||
Less: unamortized discount and issuance costs | (35,815 | ) | \u2014 | ||||
Carrying amount of Notes due 2024 | 96,185 | \u2014 | |||||
Notes due 2023 | 5,000 | 65,000 | |||||
Less: unamortized issuance costs | (143 | ) | (2,361 | ) | |||
Carrying amount of Notes due 2023 | 4,857 | 62,639 | |||||
Term loan | \u2014 | 41,524 | |||||
Less: unamortized discount and issuance costs | \u2014 | (1,059 | ) | ||||
Carrying amount of term loan | \u2014 | 40,465 | |||||
Sale of long-term financing receivable recorded as debt | 4,501 | 6,679 | |||||
Total carrying amount of debt | 105,543 | 109,783 | |||||
Less: current portion term loan | \u2014 | (25,417 | ) | ||||
Less: current portion of long-term financing receivable recorded as debt | (2,884 | ) | (2,738 | ) | |||
Long-term debt | $ | 102,659 | $ | 81,628 |
Year Ended December 31, 2019 | |||
(In thousands) | |||
Contractual interest expense | $ | 759 | |
Amortization of debt discount | 3,492 | ||
Amortization of debt issuance costs | 375 | ||
Total interest cost recognized | $ | 4,626 |
Years Ended December 31, | |||||||
2019 | 2018 | ||||||
(In thousands) | |||||||
Contractual interest expense | $ | 1,226 | $ | 975 | |||
Amortization of debt issuance costs | 245 | 193 | |||||
Total interest costs recognized | $ | 1,471 | $ | 1,168 |
Year Ended December 31, 2019 | |||
(In thousands) | |||
Operating lease costs | $ | 4,041 |
December\u00a031, 2019 | |||
(In thousands) | |||
Operating lease liabilities, current (Accrued liabilities) | $ | 3,170 | |
Operating lease liabilities, noncurrent (Other liabilities) | 9,542 | ||
Total operating lease liabilities | $ | 12,712 | |
Supplemental lease information: | |||
Weighted average remaining lease term | 5.5 years | ||
Weighted average discount rate | 8.6% |
Year Ended December 31, 2019 | |||
(In thousands) | |||
Cash paid for amounts included in the measurement of lease liabilities: | |||
Operating cash flows from operating leases | $ | 3,636 | |
Non-cash investing activities: | |||
Lease liabilities arising from obtaining right-of-use assets | $ | 4,834 |
Lease Amounts | |||
(In thousands) | |||
Year: | |||
2020 | $ | 4,156 | |
2021 | 4,238 | ||
2022 | 2,927 | ||
2023 | 2,188 | ||
2024 | 921 | ||
2025 and thereafter | 740 | ||
Total lease payments | 15,170 | ||
Less: imputed lease interest | (2,458 | ) | |
Total lease liabilities | $ | 12,712 |
Lease Amounts | |||
(In thousands) | |||
Year: | |||
2019 | $ | 3,738 | |
2020 | 3,532 | ||
2021 | 3,276 | ||
2022 | 1,810 | ||
2023 | 945 | ||
Thereafter | 1,252 | ||
Total | 14,553 | ||
Sublease income to be recognized in the future under noncancelable subleases | (922 | ) | |
Net operating lease minimum payments | $ | 13,631 |
Year Ended December 31, 2019 | |||
(In thousands) | |||
Operating lease costs | $ | 4,041 |
December\u00a031, 2019 | |||
(In thousands) | |||
Operating lease liabilities, current (Accrued liabilities) | $ | 3,170 | |
Operating lease liabilities, noncurrent (Other liabilities) | 9,542 | ||
Total operating lease liabilities | $ | 12,712 | |
Supplemental lease information: | |||
Weighted average remaining lease term | 5.5 years | ||
Weighted average discount rate | 8.6% |
Year Ended December 31, 2019 | |||
(In thousands) | |||
Cash paid for amounts included in the measurement of lease liabilities: | |||
Operating cash flows from operating leases | $ | 3,636 | |
Non-cash investing activities: | |||
Lease liabilities arising from obtaining right-of-use assets | $ | 4,834 |
Lease Amounts | |||
(In thousands) | |||
Year: | |||
2020 | $ | 4,156 | |
2021 | 4,238 | ||
2022 | 2,927 | ||
2023 | 2,188 | ||
2024 | 921 | ||
2025 and thereafter | 740 | ||
Total lease payments | 15,170 | ||
Less: imputed lease interest | (2,458 | ) | |
Total lease liabilities | $ | 12,712 |
Lease Amounts | |||
(In thousands) | |||
Year: | |||
2019 | $ | 3,738 | |
2020 | 3,532 | ||
2021 | 3,276 | ||
2022 | 1,810 | ||
2023 | 945 | ||
Thereafter | 1,252 | ||
Total | 14,553 | ||
Sublease income to be recognized in the future under noncancelable subleases | (922 | ) | |
Net operating lease minimum payments | $ | 13,631 |
\u2022 | Expected term\u2014The expected term of the option awards represents the period of time between the grant date of the option awards and the date the option awards are either exercised, converted or canceled, including an estimate for those option awards still outstanding. The Company used the simplified method, as permitted by the SEC for companies with a limited history of stock option exercise activity, to determine the expected term for its option grants. |
\u2022 | Expected volatility\u2014The expected volatility was calculated based on the Company\u2019s historical stock prices, supplemented\u00a0as necessary\u00a0with historical volatility of the common stock of several peer companies with characteristics similar to those of the Company. |
\u2022 | Risk-free interest rate\u2014The risk-free interest rate was based on the U.S. Treasury yield curve in effect at the time of grant and with a maturity that approximated the Company\u2019s expected term. |
\u2022 | Dividend yield\u2014The dividend yield was based on the Company\u2019s dividend history and the anticipated dividend payout over its expected term. |
Years Ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
Weighted average grant date fair value | $ | 9.16 | $ | 2.83 | $ | 0.76 | |||||
Expected term (in years) | 3.8 | 4.0 | 4.4 | ||||||||
Expected volatility | 89.1 | % | 88.5 | % | 83.9 | % | |||||
Annual risk-free rate of return | 2.1 | % | 2.6 | % | 1.8 | % | |||||
Dividend yield | \u2014 | % | \u2014 | % | \u2014 | % |
Years Ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
(In thousands) | |||||||||||
Cost of revenues | $ | 1,650 | $ | 1,071 | $ | 1,072 | |||||
Research and development | 4,897 | 2,940 | 2,573 | ||||||||
Sales and marketing | 5,678 | 3,074 | 1,157 | ||||||||
General and administrative | 7,216 | 4,347 | 1,925 | ||||||||
Restructuring | 735 | \u2014 | \u2014 | ||||||||
Total | $ | 20,176 | $ | 11,432 | $ | 6,727 |
Years Ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
(In thousands) | |||||||||||
Stock options, RSUs, and PSUs | $ | 19,216 | $ | 10,691 | $ | 5,559 | |||||
Employee stock purchase plan | 960 | 741 | 1,168 | ||||||||
Total | $ | 20,176 | $ | 11,432 | $ | 6,727 |
Number of Shares Outstanding | Weighted- Average Exercise\u00a0Price per Share | Weighted- Average Remaining Contractual Term | Aggregate Intrinsic Value (1) | |||||||||
(In thousands) | (Years) | (In thousands) | ||||||||||
Outstanding at December 31, 2016 | 8,730 | $ | 4.55 | |||||||||
Granted | 4,500 | 1.22 | ||||||||||
Exercised | (425 | ) | 0.51 | $ | 544 | |||||||
Canceled | (4,379 | ) | 6.91 | |||||||||
Outstanding at December 31, 2017 | 8,426 | $ | 1.77 | |||||||||
Granted | 213 | 4.43 | ||||||||||
Exercised | (1,346 | ) | 1.75 | 5,096 | ||||||||
Canceled | (521 | ) | 2.94 | |||||||||
Outstanding at December 31, 2018 | 6,772 | $ | 1.76 | |||||||||
Granted | 43 | 14.58 | ||||||||||
Exercised | (2,616 | ) | 1.22 | 31,093 | ||||||||
Canceled | (102 | ) | 4.07 | |||||||||
Outstanding at December 31, 2019 | 4,097 | $ | 2.18 | 4.3 | $ | 98,103 | ||||||
Vested and expected to vest at December 31, 2019 | 4,097 | $ | 2.18 | 4.3 | $ | 98,103 | ||||||
Exercisable at December 31, 2019 | 2,887 | $ | 2.44 | 4.1 | $ | 68,397 |
Options Outstanding | Options Exercisable | |||||||||||||||
Range of Exercise Prices | Number of Shares | Weighted- Average Remaining Life | Weighted- Average Exercise Price | Number of Shares | Weighted- Average Exercise Price | |||||||||||
(In thousands) | (Years) | (In thousands) | ||||||||||||||
$0.64 \u2014\u2013 $1.11 | 774 | 5.0 | $ | 0.82 | 518 | $ | 0.78 | |||||||||
$1.29 \u2014\u2013 $1.29 | 1,000 | 4.7 | 1.29 | 563 | 1.29 | |||||||||||
$1.31 \u2014\u2013 $1.31 | 1,309 | 4.3 | 1.31 | 975 | 1.31 | |||||||||||
$1.37 \u2014\u2013 $7.50 | 867 | 3.2 | 4.18 | 702 | 4.57 | |||||||||||
$7.68 \u2014\u2013 $14.58 | 147 | 3.4 | 11.45 | 129 | 11.02 | |||||||||||
Total | 4,097 | 4.3 | $ | 2.18 | 2,887 | $ | 2.44 |
Number of Shares Outstanding | Weighted- Average Fair Value per Share at Grant Date | Weighted- Average Remaining Contractual Term | Aggregate Intrinsic Value (1) | |||||||||
(In thousands) | (Years) | (In thousands) | ||||||||||
Outstanding at December 31, 2016 | 606 | $ | 9.33 | |||||||||
Granted | 5,418 | 1.46 | ||||||||||
Vested | (885 | ) | 3.81 | $ | 932 | |||||||
Canceled | (1,634 | ) | 1.90 | |||||||||
Outstanding at December 31, 2017 | 3,505 | $ | 2.03 | |||||||||
Granted | 3,152 | 4.45 | ||||||||||
Vested | (1,399 | ) | 2.75 | 6,657 | ||||||||
Canceled | (906 | ) | 2.17 | |||||||||
Outstanding at December 31, 2018 | 4,352 | $ | 3.52 | |||||||||
Granted | 2,112 | 11.50 | ||||||||||
Vested | (1,707 | ) | 3.87 | 27,156 | ||||||||
Canceled | (494 | ) | 4.81 | |||||||||
Outstanding at December 31, 2019 | 4,263 | $ | 7.19 | 1.3 | $ | 111,387 | ||||||
Expected to vest at December 31, 2019 | 4,263 | $ | 7.19 | 1.3 | $ | 111,387 |
(1) | The intrinsic value of RSUs vested is based upon the value of the Company\u2019s stock when vested. The intrinsic value of RSUs outstanding and expected to vest as of December\u00a031, 2019 is based on the closing price of the Company\u2019s stock on December\u00a031, 2019 or the earlier of the last trading day prior to December\u00a031, 2019, if December\u00a031, 2019 is a non-trading day. The Company\u2019s stock fair value used in this computation was $26.13\u00a0per share. |
Number of Shares Outstanding | Weighted- Average Fair Value per Share at Grant Date | Weighted- Average Remaining Contractual Term | Aggregate Intrinsic Value (1) | |||||||||
(In thousands) | (Years) | (In thousands) | ||||||||||
Outstanding at December 31, 2017 | \u2014 | |||||||||||
Granted | 1,477 | $ | 4.65 | |||||||||
Vested | \u2014 | |||||||||||
Canceled | (147 | ) | ||||||||||
Outstanding at December 31, 2018 | 1,330 | $ | 4.66 | |||||||||
Granted | 1,052 | 9.48 | ||||||||||
Vested | (1,063 | ) | 4.62 | $ | 10,818 | |||||||
Canceled | (364 | ) | 5.16 | |||||||||
Outstanding at December 31, 2019 | 955 | $ | 9.83 | 0.2 | $ | 24,952 |
(1) | The intrinsic value of PSUs vested is based upon the value of the Company\u2019s stock when vested. The intrinsic value of PSUs outstanding and expected to vest as of December\u00a031, 2019 is based on the closing price of the Company\u2019s stock on December\u00a031, 2019 or the earlier of the last trading day prior to December\u00a031, 2019, if December\u00a031, 2019 is a non-trading day. The Company\u2019s stock fair value used in this computation was $26.13\u00a0per share. |
Years Ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
Proceeds from common stock issued under ESPP | $ | 1,692 | $ | 397 | $ | 313 | |||||
Shares of common stock issued | 315 | 439 | 478 | ||||||||
Weighted-average price per share | $ | 5.37 | $ | 0.90 | $ | 0.65 |
Years Ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
Weighted average grant date fair value | $ | 9.16 | $ | 2.83 | $ | 0.76 | |||||
Expected term (in years) | 3.8 | 4.0 | 4.4 | ||||||||
Expected volatility | 89.1 | % | 88.5 | % | 83.9 | % | |||||
Annual risk-free rate of return | 2.1 | % | 2.6 | % | 1.8 | % | |||||
Dividend yield | \u2014 | % | \u2014 | % | \u2014 | % |
Years Ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
(In thousands) | |||||||||||
Cost of revenues | $ | 1,650 | $ | 1,071 | $ | 1,072 | |||||
Research and development | 4,897 | 2,940 | 2,573 | ||||||||
Sales and marketing | 5,678 | 3,074 | 1,157 | ||||||||
General and administrative | 7,216 | 4,347 | 1,925 | ||||||||
Restructuring | 735 | \u2014 | \u2014 | ||||||||
Total | $ | 20,176 | $ | 11,432 | $ | 6,727 |
Years Ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
(In thousands) | |||||||||||
Stock options, RSUs, and PSUs | $ | 19,216 | $ | 10,691 | $ | 5,559 | |||||
Employee stock purchase plan | 960 | 741 | 1,168 | ||||||||
Total | $ | 20,176 | $ | 11,432 | $ | 6,727 |
Number of Shares Outstanding | Weighted- Average Exercise\u00a0Price per Share | Weighted- Average Remaining Contractual Term | Aggregate Intrinsic Value (1) | |||||||||
(In thousands) | (Years) | (In thousands) | ||||||||||
Outstanding at December 31, 2016 | 8,730 | $ | 4.55 | |||||||||
Granted | 4,500 | 1.22 | ||||||||||
Exercised | (425 | ) | 0.51 | $ | 544 | |||||||
Canceled | (4,379 | ) | 6.91 | |||||||||
Outstanding at December 31, 2017 | 8,426 | $ | 1.77 | |||||||||
Granted | 213 | 4.43 | ||||||||||
Exercised | (1,346 | ) | 1.75 | 5,096 | ||||||||
Canceled | (521 | ) | 2.94 | |||||||||
Outstanding at December 31, 2018 | 6,772 | $ | 1.76 | |||||||||
Granted | 43 | 14.58 | ||||||||||
Exercised | (2,616 | ) | 1.22 | 31,093 | ||||||||
Canceled | (102 | ) | 4.07 | |||||||||
Outstanding at December 31, 2019 | 4,097 | $ | 2.18 | 4.3 | $ | 98,103 | ||||||
Vested and expected to vest at December 31, 2019 | 4,097 | $ | 2.18 | 4.3 | $ | 98,103 | ||||||
Exercisable at December 31, 2019 | 2,887 | $ | 2.44 | 4.1 | $ | 68,397 |
Options Outstanding | Options Exercisable | |||||||||||||||
Range of Exercise Prices | Number of Shares | Weighted- Average Remaining Life | Weighted- Average Exercise Price | Number of Shares | Weighted- Average Exercise Price | |||||||||||
(In thousands) | (Years) | (In thousands) | ||||||||||||||
$0.64 \u2014\u2013 $1.11 | 774 | 5.0 | $ | 0.82 | 518 | $ | 0.78 | |||||||||
$1.29 \u2014\u2013 $1.29 | 1,000 | 4.7 | 1.29 | 563 | 1.29 | |||||||||||
$1.31 \u2014\u2013 $1.31 | 1,309 | 4.3 | 1.31 | 975 | 1.31 | |||||||||||
$1.37 \u2014\u2013 $7.50 | 867 | 3.2 | 4.18 | 702 | 4.57 | |||||||||||
$7.68 \u2014\u2013 $14.58 | 147 | 3.4 | 11.45 | 129 | 11.02 | |||||||||||
Total | 4,097 | 4.3 | $ | 2.18 | 2,887 | $ | 2.44 |
Number of Shares Outstanding | Weighted- Average Fair Value per Share at Grant Date | Weighted- Average Remaining Contractual Term | Aggregate Intrinsic Value (1) | |||||||||
(In thousands) | (Years) | (In thousands) | ||||||||||
Outstanding at December 31, 2016 | 606 | $ | 9.33 | |||||||||
Granted | 5,418 | 1.46 | ||||||||||
Vested | (885 | ) | 3.81 | $ | 932 | |||||||
Canceled | (1,634 | ) | 1.90 | |||||||||
Outstanding at December 31, 2017 | 3,505 | $ | 2.03 | |||||||||
Granted | 3,152 | 4.45 | ||||||||||
Vested | (1,399 | ) | 2.75 | 6,657 | ||||||||
Canceled | (906 | ) | 2.17 | |||||||||
Outstanding at December 31, 2018 | 4,352 | $ | 3.52 | |||||||||
Granted | 2,112 | 11.50 | ||||||||||
Vested | (1,707 | ) | 3.87 | 27,156 | ||||||||
Canceled | (494 | ) | 4.81 | |||||||||
Outstanding at December 31, 2019 | 4,263 | $ | 7.19 | 1.3 | $ | 111,387 | ||||||
Expected to vest at December 31, 2019 | 4,263 | $ | 7.19 | 1.3 | $ | 111,387 |
Number of Shares Outstanding | Weighted- Average Fair Value per Share at Grant Date | Weighted- Average Remaining Contractual Term | Aggregate Intrinsic Value (1) | |||||||||
(In thousands) | (Years) | (In thousands) | ||||||||||
Outstanding at December 31, 2017 | \u2014 | |||||||||||
Granted | 1,477 | $ | 4.65 | |||||||||
Vested | \u2014 | |||||||||||
Canceled | (147 | ) | ||||||||||
Outstanding at December 31, 2018 | 1,330 | $ | 4.66 | |||||||||
Granted | 1,052 | 9.48 | ||||||||||
Vested | (1,063 | ) | 4.62 | $ | 10,818 | |||||||
Canceled | (364 | ) | 5.16 | |||||||||
Outstanding at December 31, 2019 | 955 | $ | 9.83 | 0.2 | $ | 24,952 |
Years Ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
Proceeds from common stock issued under ESPP | $ | 1,692 | $ | 397 | $ | 313 | |||||
Shares of common stock issued | 315 | 439 | 478 | ||||||||
Weighted-average price per share | $ | 5.37 | $ | 0.90 | $ | 0.65 |
Years Ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
(In thousands) | |||||||||||
United States | $ | 85,520 | $ | (14,322 | ) | $ | (47,882 | ) | |||
Foreign | 4,594 | 4,093 | 2,541 | ||||||||
Income (loss) before income taxes | $ | 90,114 | $ | (10,229 | ) | $ | (45,341 | ) |
Years Ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
(In thousands) | |||||||||||
Current: | |||||||||||
Federal | $ | \u2014 | $ | \u2014 | $ | \u2014 | |||||
State | 327 | 42 | 21 | ||||||||
Foreign | 1,589 | 1,233 | 1,224 | ||||||||
1,916 | 1,275 | 1,245 | |||||||||
Deferred: | |||||||||||
Federal | (56,959 | ) | (35 | ) | (1,092 | ) | |||||
State | (17,458 | ) | (21 | ) | (21 | ) | |||||
Foreign | 1,467 | 179 | (281 | ) | |||||||
(72,950 | ) | 123 | (1,394 | ) | |||||||
Income taxes (benefit) provision | $ | (71,034 | ) | $ | 1,398 | $ | (149 | ) |
Years Ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
(In thousands) | |||||||||||
Income tax (benefit) provision at statutory federal rate | $ | 18,929 | $ | (2,148 | ) | $ | (15,416 | ) | |||
State taxes, net of federal benefit | (17,197 | ) | 17 | (64 | ) | ||||||
Change in valuation allowance | (71,300 | ) | 8,198 | (20,571 | ) | ||||||
Foreign tax rate and tax law differential | 1,206 | 313 | (133 | ) | |||||||
Tax credits | (1,803 | ) | (378 | ) | (382 | ) | |||||
Stock-based compensation | (8,072 | ) | (953 | ) | 761 | ||||||
Other permanent items | 31 | 235 | 479 | ||||||||
Other nondeductible/nontaxable items | 2,765 | (5,112 | ) | 930 | |||||||
Uncertain tax positions | 504 | 107 | 106 | ||||||||
Tax law changes | \u2014 | \u2014 | 34,141 | ||||||||
GILTI | 1,086 | 917 | \u2014 | ||||||||
Section 162(m) | 2,817 | 202 | \u2014 | ||||||||
Income tax (benefit) provision | $ | (71,034 | ) | $ | 1,398 | $ | (149 | ) |
December\u00a031, | |||||||
2019 | 2018 | ||||||
Deferred tax assets: | |||||||
Allowances and reserves | $ | 10,726 | $ | 10,022 | |||
Net operating loss and tax credit carryforwards | 54,369 | 71,568 | |||||
Stock-based compensation | 3,753 | 3,662 | |||||
Deferred revenue | 16,736 | 19,562 | |||||
Fixed assets and intangibles | 2,720 | 3,836 | |||||
Sec. 163(j) interest carryforward | \u2014 | 2,064 | |||||
Other | 1,109 | 2,084 | |||||
Subtotal | 89,413 | 112,798 | |||||
Less valuation allowance | \u2014 | (98,631 | ) | ||||
Total deferred tax assets, net of valuation allowance | 89,413 | 14,167 | |||||
Deferred tax liabilities: | |||||||
Goodwill | (1,368 | ) | (1,070 | ) | |||
Unremitted foreign earnings | (5 | ) | (16 | ) | |||
Deferred cost of goods sold | (14,374 | ) | (12,655 | ) | |||
Total deferred tax liabilities | (15,747 | ) | (13,741 | ) | |||
Net deferred tax asset | $ | 73,666 | $ | 426 |
Years Ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
Unrecognized tax benefits\u2014at beginning of year | $ | 6,325 | $ | 6,106 | $ | 6,016 | |||||
Decreases in balances related to tax positions taken in prior years | (370 | ) | \u2014 | (135 | ) | ||||||
Increases in balances related to tax positions taken in current year | 771 | 329 | 306 | ||||||||
Lapses in statutes of limitations | (137 | ) | (110 | ) | (81 | ) | |||||
Unrecognized tax benefits\u2014at end of year | $ | 6,589 | $ | 6,325 | $ | 6,106 |
Years Ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
(In thousands) | |||||||||||
United States | $ | 85,520 | $ | (14,322 | ) | $ | (47,882 | ) | |||
Foreign | 4,594 | 4,093 | 2,541 | ||||||||
Income (loss) before income taxes | $ | 90,114 | $ | (10,229 | ) | $ | (45,341 | ) |
Years Ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
(In thousands) | |||||||||||
Current: | |||||||||||
Federal | $ | \u2014 | $ | \u2014 | $ | \u2014 | |||||
State | 327 | 42 | 21 | ||||||||
Foreign | 1,589 | 1,233 | 1,224 | ||||||||
1,916 | 1,275 | 1,245 | |||||||||
Deferred: | |||||||||||
Federal | (56,959 | ) | (35 | ) | (1,092 | ) | |||||
State | (17,458 | ) | (21 | ) | (21 | ) | |||||
Foreign | 1,467 | 179 | (281 | ) | |||||||
(72,950 | ) | 123 | (1,394 | ) | |||||||
Income taxes (benefit) provision | $ | (71,034 | ) | $ | 1,398 | $ | (149 | ) |
Years Ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
(In thousands) | |||||||||||
Income tax (benefit) provision at statutory federal rate | $ | 18,929 | $ | (2,148 | ) | $ | (15,416 | ) | |||
State taxes, net of federal benefit | (17,197 | ) | 17 | (64 | ) | ||||||
Change in valuation allowance | (71,300 | ) | 8,198 | (20,571 | ) | ||||||
Foreign tax rate and tax law differential | 1,206 | 313 | (133 | ) | |||||||
Tax credits | (1,803 | ) | (378 | ) | (382 | ) | |||||
Stock-based compensation | (8,072 | ) | (953 | ) | 761 | ||||||
Other permanent items | 31 | 235 | 479 | ||||||||
Other nondeductible/nontaxable items | 2,765 | (5,112 | ) | 930 | |||||||
Uncertain tax positions | 504 | 107 | 106 | ||||||||
Tax law changes | \u2014 | \u2014 | 34,141 | ||||||||
GILTI | 1,086 | 917 | \u2014 | ||||||||
Section 162(m) | 2,817 | 202 | \u2014 | ||||||||
Income tax (benefit) provision | $ | (71,034 | ) | $ | 1,398 | $ | (149 | ) |
December\u00a031, | |||||||
2019 | 2018 | ||||||
Deferred tax assets: | |||||||
Allowances and reserves | $ | 10,726 | $ | 10,022 | |||
Net operating loss and tax credit carryforwards | 54,369 | 71,568 | |||||
Stock-based compensation | 3,753 | 3,662 | |||||
Deferred revenue | 16,736 | 19,562 | |||||
Fixed assets and intangibles | 2,720 | 3,836 | |||||
Sec. 163(j) interest carryforward | \u2014 | 2,064 | |||||
Other | 1,109 | 2,084 | |||||
Subtotal | 89,413 | 112,798 | |||||
Less valuation allowance | \u2014 | (98,631 | ) | ||||
Total deferred tax assets, net of valuation allowance | 89,413 | 14,167 | |||||
Deferred tax liabilities: | |||||||
Goodwill | (1,368 | ) | (1,070 | ) | |||
Unremitted foreign earnings | (5 | ) | (16 | ) | |||
Deferred cost of goods sold | (14,374 | ) | (12,655 | ) | |||
Total deferred tax liabilities | (15,747 | ) | (13,741 | ) | |||
Net deferred tax asset | $ | 73,666 | $ | 426 |
Years Ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
Unrecognized tax benefits\u2014at beginning of year | $ | 6,325 | $ | 6,106 | $ | 6,016 | |||||
Decreases in balances related to tax positions taken in prior years | (370 | ) | \u2014 | (135 | ) | ||||||
Increases in balances related to tax positions taken in current year | 771 | 329 | 306 | ||||||||
Lapses in statutes of limitations | (137 | ) | (110 | ) | (81 | ) | |||||
Unrecognized tax benefits\u2014at end of year | $ | 6,589 | $ | 6,325 | $ | 6,106 |
Years Ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
(In thousands, except per share data) | |||||||||||
Numerator: | |||||||||||
Net income (loss) | $ | 161,148 | $ | (11,627 | ) | $ | (45,192 | ) | |||
Notes due 2023 interest and financing costs, net | 1,088 | \u2014 | \u2014 | ||||||||
Adjusted net income (loss) | $ | 162,236 | $ | (11,627 | ) | $ | (45,192 | ) | |||
Denominator: | |||||||||||
Shares used in basic per share amounts: | |||||||||||
Weighted average common shares outstanding | 116,713 | 99,619 | 82,939 | ||||||||
Shares used in diluted per share amounts: | |||||||||||
Weighted average common shares outstanding | 116,713 | 99,619 | 82,939 | ||||||||
Effect of dilutive securities: | |||||||||||
Employee stock-based awards | 8,964 | \u2014 | \u2014 | ||||||||
Warrants | \u2014 | \u2014 | \u2014 | ||||||||
Notes due 2024 | 451 | \u2014 | \u2014 | ||||||||
Notes due 2023 | 5,516 | \u2014 | \u2014 | ||||||||
Weighted average common shares outstanding for diluted calculation | 131,644 | 99,619 | 82,939 | ||||||||
Basic and diluted net income (loss) per share | |||||||||||
Net income (loss) per share, basic | $ | 1.38 | $ | (0.12 | ) | $ | (0.54 | ) | |||
Net income (loss) per share, diluted | $ | 1.23 | $ | (0.12 | ) | $ | (0.54 | ) |
Years Ended December 31, | ||||||||
2019 | 2018 | 2017 | ||||||
(In thousands) | ||||||||
Employee stock options | 27 | 7,710 | 8,433 | |||||
RSUs and PSUs | 158 | 5,273 | 3,029 | |||||
Warrants to purchase common stock | 300 | \u2014 | 1,083 | |||||
Notes due 2023 | \u2014 | 11,701 | \u2014 | |||||
Total | 485 | 24,684 | 12,545 |
Years Ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
(In thousands, except per share data) | |||||||||||
Numerator: | |||||||||||
Net income (loss) | $ | 161,148 | $ | (11,627 | ) | $ | (45,192 | ) | |||
Notes due 2023 interest and financing costs, net | 1,088 | \u2014 | \u2014 | ||||||||
Adjusted net income (loss) | $ | 162,236 | $ | (11,627 | ) | $ | (45,192 | ) | |||
Denominator: | |||||||||||
Shares used in basic per share amounts: | |||||||||||
Weighted average common shares outstanding | 116,713 | 99,619 | 82,939 | ||||||||
Shares used in diluted per share amounts: | |||||||||||
Weighted average common shares outstanding | 116,713 | 99,619 | 82,939 | ||||||||
Effect of dilutive securities: | |||||||||||
Employee stock-based awards | 8,964 | \u2014 | \u2014 | ||||||||
Warrants | \u2014 | \u2014 | \u2014 | ||||||||
Notes due 2024 | 451 | \u2014 | \u2014 | ||||||||
Notes due 2023 | 5,516 | \u2014 | \u2014 | ||||||||
Weighted average common shares outstanding for diluted calculation | 131,644 | 99,619 | 82,939 | ||||||||
Basic and diluted net income (loss) per share | |||||||||||
Net income (loss) per share, basic | $ | 1.38 | $ | (0.12 | ) | $ | (0.54 | ) | |||
Net income (loss) per share, diluted | $ | 1.23 | $ | (0.12 | ) | $ | (0.54 | ) |
Years Ended December 31, | ||||||||
2019 | 2018 | 2017 | ||||||
(In thousands) | ||||||||
Employee stock options | 27 | 7,710 | 8,433 | |||||
RSUs and PSUs | 158 | 5,273 | 3,029 | |||||
Warrants to purchase common stock | 300 | \u2014 | 1,083 | |||||
Notes due 2023 | \u2014 | 11,701 | \u2014 | |||||
Total | 485 | 24,684 | 12,545 |
Years Ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
(In thousands) | |||||||||||
United States | $ | 523,577 | $ | 219,600 | $ | 199,565 | |||||
International | 100,756 | 96,559 | 86,601 | ||||||||
Total | $ | 624,333 | $ | 316,159 | $ | 286,166 |
December\u00a031, | |||||||
2019 | 2018 | ||||||
(In thousands) | |||||||
United States | $ | 16,754 | $ | 13,146 | |||
China | 4,635 | 5,504 | |||||
Mexico | 3,510 | \u2014 | |||||
Other | 4,037 | 2,348 | |||||
Total | $ | 28,936 | $ | 20,998 |
Years Ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
(In thousands) | |||||||||||
United States | $ | 523,577 | $ | 219,600 | $ | 199,565 | |||||
International | 100,756 | 96,559 | 86,601 | ||||||||
Total | $ | 624,333 | $ | 316,159 | $ | 286,166 |
December\u00a031, | |||||||
2019 | 2018 | ||||||
(In thousands) | |||||||
United States | $ | 16,754 | $ | 13,146 | |||
China | 4,635 | 5,504 | |||||
Mexico | 3,510 | \u2014 | |||||
Other | 4,037 | 2,348 | |||||
Total | $ | 28,936 | $ | 20,998 |
Cash consideration | $ | 25,000 | ||
Common stock issued | 32,319 | |||
Total | $ | 57,319 |
Intangible assets | $ | 36,200 | ||
Goodwill | 21,119 | |||
Net assets acquired | $ | 57,319 |
Preliminary Fair Value | Useful Life | |||||
(In thousands) | (Years) | |||||
Developed technology | $ | 13,100 | 6 | |||
Customer relationship | 23,100 | 9 | ||||
Total identifiable intangible assets | $ | 36,200 |
Cash Purchase Price | Issuance of Common Stock | Total Consideration | % of Total Consideration | |||||||||||
(In thousands) | ||||||||||||||
Developed technology and goodwill | $ | 15,000 | $ | 19,219 | $ | 34,219 | 60 | % | ||||||
Customer relationship | 10,000 | 13,100 | 23,100 | 40 | % | |||||||||
Total consideration | $ | 25,000 | $ | 32,319 | $ | 57,319 | 100 | % |
Cash consideration | $ | 25,000 | ||
Common stock issued | 32,319 | |||
Total | $ | 57,319 |
Cash Purchase Price | Issuance of Common Stock | Total Consideration | % of Total Consideration | |||||||||||
(In thousands) | ||||||||||||||
Developed technology and goodwill | $ | 15,000 | $ | 19,219 | $ | 34,219 | 60 | % | ||||||
Customer relationship | 10,000 | 13,100 | 23,100 | 40 | % | |||||||||
Total consideration | $ | 25,000 | $ | 32,319 | $ | 57,319 | 100 | % |
Intangible assets | $ | 36,200 | ||
Goodwill | 21,119 | |||
Net assets acquired | $ | 57,319 |
Preliminary Fair Value | Useful Life | |||||
(In thousands) | (Years) | |||||
Developed technology | $ | 13,100 | 6 | |||
Customer relationship | 23,100 | 9 | ||||
Total identifiable intangible assets | $ | 36,200 |
Three Months Ended | |||||||||||||||
March 31, 2019 | June 30, 2019 | September 30, 2019 | December 31, 2019 | ||||||||||||
Net revenues | $ | 100,150 | $ | 134,094 | $ | 180,057 | $ | 210,032 | |||||||
Cost of revenues | 66,811 | 88,775 | 115,351 | 132,151 | |||||||||||
Gross profit | 33,339 | 45,319 | 64,706 | 77,881 | |||||||||||
Operating expenses: | |||||||||||||||
Research and development | 8,524 | 9,604 | 11,085 | 11,168 | |||||||||||
Sales and marketing | 7,433 | 9,054 | 9,551 | 10,690 | |||||||||||
General and administrative | 9,880 | 8,583 | 9,895 | 10,450 | |||||||||||
Restructuring charges | 368 | 631 | 469 | 1,131 | |||||||||||
Total operating expenses | 26,205 | 27,872 | 31,000 | 33,439 | |||||||||||
Income from operations | 7,134 | 17,447 | 33,706 | 44,442 | |||||||||||
Other expense, net | |||||||||||||||
Interest Income | 211 | 593 | 894 | 815 | |||||||||||
Interest expense | (3,751 | ) | (1,351 | ) | (2,286 | ) | (2,303 | ) | |||||||
Other income (expense) | (481 | ) | (5,480 | ) | (943 | ) | 1,467 | ||||||||
Total other expense, net | (4,021 | ) | (6,238 | ) | (2,335 | ) | (21 | ) | |||||||
Income before income taxes | 3,113 | 11,209 | 31,371 | 44,421 | |||||||||||
Income tax benefit (provision) | (348 | ) | (591 | ) | (272 | ) | 72,245 | ||||||||
Net income | $ | 2,765 | $ | 10,618 | $ | 31,099 | $ | 116,666 | |||||||
Net income per share, basic | $ | 0.03 | $ | 0.09 | $ | 0.25 | $ | 0.95 | |||||||
Net income per share, diluted | $ | 0.02 | $ | 0.08 | $ | 0.23 | $ | 0.88 |
Three Months Ended | |||||||||||||||
March\u00a031, 2018 | June\u00a030, 2018 | September\u00a030, 2018 | December\u00a031, 2018 | ||||||||||||
Net revenues | $ | 69,972 | $ | 75,896 | $ | 78,002 | $ | 92,289 | |||||||
Cost of revenues | 51,657 | 53,195 | 52,738 | 64,124 | |||||||||||
Gross profit | 18,315 | 22,701 | 25,264 | 28,165 | |||||||||||
Operating expenses: | |||||||||||||||
Research and development | 7,620 | 9,462 | 8,165 | 7,340 | |||||||||||
Sales and marketing | 6,227 | 6,828 | 7,375 | 6,617 | |||||||||||
General and administrative | 6,943 | 6,969 | 7,510 | 7,664 | |||||||||||
Restructuring charges | \u2014 | \u2014 | 2,588 | 1,541 | |||||||||||
Total operating expenses | 20,790 | 23,259 | 25,638 | 23,162 | |||||||||||
Income (loss) from operations | (2,475 | ) | (558 | ) | (374 | ) | 5,003 | ||||||||
Other expense, net | |||||||||||||||
Interest income | 93 | 154 | 321 | 490 | |||||||||||
Interest expense | (2,385 | ) | (2,423 | ) | (2,790 | ) | (3,095 | ) | |||||||
Other expense, net | (126 | ) | (572 | ) | (379 | ) | (1,113 | ) | |||||||
Total other expense, net | (2,418 | ) | (2,841 | ) | (2,848 | ) | (3,718 | ) | |||||||
Income (loss) before income taxes | (4,893 | ) | (3,399 | ) | (3,222 | ) | 1,285 | ||||||||
Provision for income taxes | (235 | ) | (339 | ) | (248 | ) | (576 | ) | |||||||
Net income (loss) | $ | (5,128 | ) | $ | (3,738 | ) | $ | (3,470 | ) | $ | 709 | ||||
Net income (loss) per share, basic | $ | (0.06 | ) | $ | (0.04 | ) | $ | (0.03 | ) | $ | 0.01 | ||||
Net income (loss) per diluted share | $ | (0.06 | ) | $ | (0.04 | ) | $ | (0.03 | ) | $ | 0.01 |
Three Months Ended | |||||||||||||||
March 31, 2019 | June 30, 2019 | September 30, 2019 | December 31, 2019 | ||||||||||||
Net revenues | $ | 100,150 | $ | 134,094 | $ | 180,057 | $ | 210,032 | |||||||
Cost of revenues | 66,811 | 88,775 | 115,351 | 132,151 | |||||||||||
Gross profit | 33,339 | 45,319 | 64,706 | 77,881 | |||||||||||
Operating expenses: | |||||||||||||||
Research and development | 8,524 | 9,604 | 11,085 | 11,168 | |||||||||||
Sales and marketing | 7,433 | 9,054 | 9,551 | 10,690 | |||||||||||
General and administrative | 9,880 | 8,583 | 9,895 | 10,450 | |||||||||||
Restructuring charges | 368 | 631 | 469 | 1,131 | |||||||||||
Total operating expenses | 26,205 | 27,872 | 31,000 | 33,439 | |||||||||||
Income from operations | 7,134 | 17,447 | 33,706 | 44,442 | |||||||||||
Other expense, net | |||||||||||||||
Interest Income | 211 | 593 | 894 | 815 | |||||||||||
Interest expense | (3,751 | ) | (1,351 | ) | (2,286 | ) | (2,303 | ) | |||||||
Other income (expense) | (481 | ) | (5,480 | ) | (943 | ) | 1,467 | ||||||||
Total other expense, net | (4,021 | ) | (6,238 | ) | (2,335 | ) | (21 | ) | |||||||
Income before income taxes | 3,113 | 11,209 | 31,371 | 44,421 | |||||||||||
Income tax benefit (provision) | (348 | ) | (591 | ) | (272 | ) | 72,245 | ||||||||
Net income | $ | 2,765 | $ | 10,618 | $ | 31,099 | $ | 116,666 | |||||||
Net income per share, basic | $ | 0.03 | $ | 0.09 | $ | 0.25 | $ | 0.95 | |||||||
Net income per share, diluted | $ | 0.02 | $ | 0.08 | $ | 0.23 | $ | 0.88 |
Three Months Ended | |||||||||||||||
March\u00a031, 2018 | June\u00a030, 2018 | September\u00a030, 2018 | December\u00a031, 2018 | ||||||||||||
Net revenues | $ | 69,972 | $ | 75,896 | $ | 78,002 | $ | 92,289 | |||||||
Cost of revenues | 51,657 | 53,195 | 52,738 | 64,124 | |||||||||||
Gross profit | 18,315 | 22,701 | 25,264 | 28,165 | |||||||||||
Operating expenses: | |||||||||||||||
Research and development | 7,620 | 9,462 | 8,165 | 7,340 | |||||||||||
Sales and marketing | 6,227 | 6,828 | 7,375 | 6,617 | |||||||||||
General and administrative | 6,943 | 6,969 | 7,510 | 7,664 | |||||||||||
Restructuring charges | \u2014 | \u2014 | 2,588 | 1,541 | |||||||||||
Total operating expenses | 20,790 | 23,259 | 25,638 | 23,162 | |||||||||||
Income (loss) from operations | (2,475 | ) | (558 | ) | (374 | ) | 5,003 | ||||||||
Other expense, net | |||||||||||||||
Interest income | 93 | 154 | 321 | 490 | |||||||||||
Interest expense | (2,385 | ) | (2,423 | ) | (2,790 | ) | (3,095 | ) | |||||||
Other expense, net | (126 | ) | (572 | ) | (379 | ) | (1,113 | ) | |||||||
Total other expense, net | (2,418 | ) | (2,841 | ) | (2,848 | ) | (3,718 | ) | |||||||
Income (loss) before income taxes | (4,893 | ) | (3,399 | ) | (3,222 | ) | 1,285 | ||||||||
Provision for income taxes | (235 | ) | (339 | ) | (248 | ) | (576 | ) | |||||||
Net income (loss) | $ | (5,128 | ) | $ | (3,738 | ) | $ | (3,470 | ) | $ | 709 | ||||
Net income (loss) per share, basic | $ | (0.06 | ) | $ | (0.04 | ) | $ | (0.03 | ) | $ | 0.01 | ||||
Net income (loss) per diluted share | $ | (0.06 | ) | $ | (0.04 | ) | $ | (0.03 | ) | $ | 0.01 |