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Balance Sheet Details
3 Months Ended
Mar. 31, 2014
Organization Consolidation And Presentation Of Financial Statements [Abstract]  
Balance Sheet Details

2. Balance Sheet Details

Marketable Securities

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

 

March 31, 2014

   Maturity
in Years
     Amortized
Cost
     Gross
Unrealized
Gains
     Gross
Unrealized
Losses
     Estimated
Fair

Value
 

Available-for-sale:

              

Government agency securities

     1 or less       $ 1,150       $ 0       $ 0       $ 1,150   

Municipal bonds

     1 or less         1,762         1         0         1,763   

Certificates of deposit

     1 or less         3,220         0         0         3,220   

Corporate debentures / bonds

     1 or less         9,200         5         0         9,205   
     

 

 

    

 

 

    

 

 

    

 

 

 

Total short-term marketable securities

        15,332         6         0         15,338   
     

 

 

    

 

 

    

 

 

    

 

 

 

Available-for-sale:

              

Certificates of deposit

     1 to 2         720         0         0         720   
     

 

 

    

 

 

    

 

 

    

 

 

 

Total long-term marketable securities

        720         0         0         720   
     

 

 

    

 

 

    

 

 

    

 

 

 
      $ 16,052       $ 6       $ 0       $ 16,058   
     

 

 

    

 

 

    

 

 

    

 

 

 

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   
     

 

 

    

 

 

    

 

 

    

 

 

 

The Company’s available-for-sale securities are carried on the condensed consolidated balance sheet at fair market value with the related unrealized gains and losses included in accumulated other comprehensive income (loss) on the condensed 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.

The Company has a credit facility with a bank to allow margin borrowings based on the Company’s investments in cash equivalents and marketable securities held with the bank. This facility is collateralized by the Company’s cash equivalents and marketable securities held with the bank. Borrowings under the facility incur an interest rate at the bank’s base rate plus 1%. At March 31, 2014, the Company had approximately $2.9 million in marketable securities held at this bank, and the Company’s unused borrowing capacity at March 31, 2014 under the credit facility was $2.2 million. Any monies borrowed and interest incurred are payable on demand, and there is no express expiration date to the credit facility. During the three months ended March 31, 2014, the Company did not borrow against the facility, and had outstanding borrowings of $298,000 under this facility at March 31, 2014. Under the terms of the credit facility, the bank may liquidate any of the Company’s cash equivalents or marketable securities held at any time in order to recoup the outstanding balance of the facility. Accordingly, a like amount of marketable equity securities have been classified by the Company as restricted marketable securities on the balance sheet at March 31, 2014. At March 31, 2014, the Company had no cash equivalents held at this bank.

 

As of March 31, 2014, the Company recorded a net unrealized gain of $6,000. The Company’s net unrealized gain is the result of market conditions affecting its fixed-income, debt and equity securities, which are included in accumulated other comprehensive income (loss) in the condensed consolidated balance sheet for the period then ended.

Inventories

Inventories consist of the following (in thousands):

 

     March 31,      December 31,  
     2014      2013  

Finished goods

   $ 18,506       $ 20,870   

Raw materials and components

     6,623         6,923   
  

 

 

    

 

 

 
   $ 25,129       $ 27,793   
  

 

 

    

 

 

 

Accrued Expenses

Accrued expenses consist of the following (in thousands):

 

     March 31,      December 31,  
     2014      2013  

Royalties

   $ 3,411       $ 4,243   

Payroll and related expenses

     4,173         4,828   

Product warranty

     1,367         2,244   

Market development funds and price protection

     3,287         3,059   

Professional fees

     1,533         1,040   

Deferred revenue

     2,602         2,999   

Restructuring

     775         610   

Other

     3,993         4,248   
  

 

 

    

 

 

 
   $ 21,141       $ 23,271   
  

 

 

    

 

 

 

Accrued Warranty Obligations

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

 

      Three Months Ended
March 31, 2014
    Three Months Ended
March 31, 2013
 

Warranty liability at beginning of period

   $ 2,244      $ 2,329   

Additions charged to operations

     405        2,256   

Deductions from/use of liability

     (1,282     (1,921
  

 

 

   

 

 

 

Warranty liability at end of period

   $ 1,367      $ 2,664   
  

 

 

   

 

 

 

The Company accrues warranty costs based on estimates of future warranty-related replacement, repairs or rework of products. The Company generally provides one to three years of coverage for products following the date of purchase and the Company accrues the estimated cost of warranty coverage as a component of cost of net revenues in the condensed consolidated statements of operations at the time revenue is recognized. In estimating our future warranty obligations, we consider various relevant factors, including the historical frequency and volume of claims, and the cost to replace or repair products under warranty.