Financial Statement Details

12 Months Ended

Dec. 31, 2013

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Financial Statement Details

4. Financial Statement Details

Marketable Securities

The Company’s portfolio of available-for-sale securities by contractual maturity consists of the following (in thousands):

December 31, 2013	Maturity in Years		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Available-for-sale:
Government agency securities		1 or less	$	2,350	$	1	$	0	$	2,351
Municipal bonds		1 or less		2,828		1		0		2,829
Certificates of deposit		1 or less		3,360		0		0		3,360
Corporate debentures / bonds		1 or less		10,635		3		0		10,638
Total short-term marketable securities				19,173		5		0		19,178
Available-for-sale:
Certificates of deposit		1 to 2		1,300		0		0		1,300
Corporate debentures / bonds		1 to 2		2,143		0		0		2,143
Total long-term marketable securities				3,443		0		0		3,443
			$	22,616	$	5	$	0	$	22,621
December 31, 2012	Maturity in Years		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Available-for-sale:
Government agency securities		1 or less	$	3,265	$	1	$	0	$	3,266
Municipal bonds		1 or less		11,246		14		0		11,260
Certificates of deposit		1 or less		6,200		5		0		6,205
Corporate debentures / bonds		1 or less		17,330		3		0		17,333
Total short-term marketable securities				38,041		23		0		38,064
Available-for-sale:
Certificates of deposit		1 to 2		1,200		1		0		1,201
Total long-term marketable securities				1,200		1		0		1,201
			$	39,241	$	24	$	0	$	39,265

The Company’s available-for-sale securities are carried on the consolidated balance sheet at fair market value with the related unrealized gains and losses included in accumulated other comprehensive (loss) income on the consolidated balance sheet, which is a separate component of stockholders’ equity. Realized gains and losses on the sale of available-for-sale marketable securities are determined using the specific-identification method.

At December 31, 2013 and 2012, the Company recorded net unrealized gains of $5,000, and net unrealized gains of $24,000, respectively. The Company’s net unrealized gains (loss) is the result of market conditions affecting its fixed-income debt securities, which are included in accumulated other comprehensive (loss) income on the consolidated balance sheet for the periods then ended.

As of December 31, 2011, the Company’s investment portfolio included $385,000 of marketable equity securities at original cost, with a fair value of $38,000. During the years ended December 31, 2013, 2012 and 2011, the Company recorded an other-than-temporary loss of $0, $38,000 and $347,000, respectively, within other income (expense), net in the consolidated statement of operations.

Inventories

Inventories consist of the following (in thousands):

	December 31,
	2013		2012
Finished goods	$	20,870	$	26,776
Raw materials and components		6,923		12,240
	$	27,793	$	39,016

Property and Equipment

Property and equipment consists of the following (in thousands):

	December 31,
	2013			2012
Test equipment	$	52,108		$	53,368
Computer equipment and purchased software		10,814			12,310
Product tooling		3,204			2,232
Furniture and fixtures		2,015			2,219
Leasehold improvements		4,094			4,802
		72,235			74,931
Less—accumulated depreciation and amortization		(62,334	)		(59,702	)
	$	9,901		$	15,229

For the years ended December 31, 2013, 2012 and 2011, the Company recorded $70,000, $100,000 and $70,000, respectively, in its cost of net revenues as a result of its impairment analysis of property and equipment.

Depreciation and amortization expense relating to property and equipment was $7.9 million, $9.4 million and $11.1 million for the years ended December 31, 2013, 2012 and 2011, respectively.

Accrued Expenses

Accrued expenses consist of the following (in thousands):

	December 31,
	2013		2012
Royalties	$	4,243	$	4,349
Payroll and related expenses		4,828		7,788
Product warranty		2,244		2,329
Market development funds and price protection		3,059		2,147
Professional fees		1,040		1,549
Deferred revenue		2,999		4,630
Restructuring		610		0
Other		4,248		5,008
	$	23,271	$	27,800

Accrued Warranty Obligations

Accrued warranty obligations consist of the following (in thousands):

	2013			2012
Warranty liability at beginning of period	$	2,329		$	1,525
Additions charged to operations		5,055			6,261
Deductions from liability		(5,140	)		(5,457	)
Warranty liability at end of period	$	2,244		$	2,329