Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2018

Schedule of changes recorded in connection with the cumulative-effect adjustment

The following reflects the material changes recorded in connection with the cumulative-effect adjustment (in thousands):

Financial Statement Line Item	Increase (Decrease)
Accounts receivable, net	$	230
Prepaid expenses and other current assets	$	7,579
Other assets, net	$	(2,282	)
Deferred revenue and returns liability	$	27,806
Deferred income on shipments to distributors	$	(50,115	)
Other current liabilities	$	1,641
Retained earnings	$	26,195

Schedule of condensed consolidated statement of income

The following presents the amounts by which financial statement line items were affected in the current period due to the adoption of ASC 606 (in thousands):

Financial Statement Line Item*	Increase (Decrease)
Condensed Consolidated Statements of Income	Three Months Ended June 30, 2018		Six Months Ended June 30, 2018
Revenues	$	7,464	$	8,162
Cost of revenues	$	2,233	$	1,983
Net income	$	4,507	$	4,897

Earnings per share:
Basic	$	0.10	$	0.11
Diluted	$	0.10	$	0.11

* Excludes line items that were not materially affected by the Company’s adoption of ASC 606. The adoption had no impact to cash provided by or used in net operating, investing or financing activities in the Condensed Consolidated Statements of Cash Flows.

Schedule of condensed consolidated balance sheet

The following presents the amounts by which financial statement line items were affected in the current period due to the adoption of ASC 606 (in thousands):

Condensed Consolidated Balance Sheet**	June 30, 2018
Prepaid expenses and other current assets	$	2,959
Goodwill	$	(2,842	)
Other assets, net	$	(3,559	)
Deferred revenue and returns liability	$	24,503
Deferred income on shipments to distributors	$	(64,936	)
Other current liabilities	$	5,485
Retained earnings	$	31,092

** Balance sheet line item amounts include the cumulative-effect adjustment recorded on December 31, 2017.