FORM 10-K | ||
(Mark One) | ||
þ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
For the fiscal year ended December 31, 2016 | ||
OR | ||
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
For the transition period from __________ to __________. | ||
Commission file number: 000-29748 | ||
ECHELON CORPORATION | ||
(Exact name of registrant as specified in its charter) | ||
Delaware | 77-0203595 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification Number) | |
2901 Patrick Henry Drive Santa Clara, California 95054 | ||
(Address of principal executive office and zip code) | ||
(408) 938-5200 | ||
(Registrant's telephone number, including area code) | ||
Large accelerated filer | Accelerated filer | Non-accelerated filer | X | Smaller reporting company | ||||
(do not check if a smaller reporting company) |
Document | Parts Into Which Incorporated |
Proxy Statement for the 2017 Annual Meeting of Stockholders to be held May 23, 2017 (Proxy Statement) | Part III |
Page | |||
PART I | |||
Item 1. | |||
Item 1A. | |||
Item 1B. | |||
Item 2. | |||
Item 3. | |||
Item 4. | |||
PART II | |||
Item 5. | |||
Item 6. | |||
Item 7. | |||
Item 7A. | |||
Item 8. | |||
Item 9. | |||
Item 9A. | |||
Item 9B. | |||
PART III | |||
Item 10. | |||
Item 11. | |||
Item 12. | |||
Item 13. | |||
Item 14. | |||
PART IV | |||
Item 15. | |||
ITEM 1. | BUSINESS |
• | Sustainability/Energy savings. At the most basic level, Echelon's platform offers scheduling of lights on or off, the setting of dimming levels for individual or groups of lights, and intelligent lighting according to time of day, season, or weather conditions. Our systems include energy metering functions which allow a city to consider energy cost when optimizing system variables, and work with local utilities to minimize electricity charges |
• | Safety. With our system lamp outages can be quickly spotted and repaired, and often predicted and repaired before they fail. Our adaptive lighting solutions can brighten lights in response to motion, direction of travel, traffic volumes and more. Our new white tuning concept allows cities to control the color of outdoor lights from soothing yellow to bright blue/white depending upon comfort and safety requirements. Our weather adaptive lighting concept adjusts schedules, brightness and color temperature based on weather conditions for optimal safety. |
• | Livability. Selective dimming, adaptive lighting, white tuning and fault identification all help ensure a more livable and attractive city, which is good for business and good for the citizenry. |
• | Maintenance efficiency. Our platform is fixture-agnostic so our customers are free to choose and connect virtually any light fixture from any catalog. We have both RF and powerline communication options to maximize aesthetics and performance. The platform allows for GPS options, automated topology optimization, and includes a powerful Central Management System (CMS) configuration and management features to make startup commissioning and management easy. Powerful reporting helps optimize and predict maintenance needs, monitor energy consumption and identify communication problems. Separate ‘application widgets’ support the needs of the specific applications described above. |
• | Smart Transceivers: Outdoor lighting manufacturers can embed our power line smart transceivers into their outdoor light ballasts, drivers, and generators; or can use these transceivers to develop outdoor lighting controllers that serve as add-on products for existing dimmable ballasts and drivers within a luminaire. These components enable command, control, and monitoring of each light. They communicate with the Echelon SmartServer segment controller over existing power lines. |
• | Outdoor Lighting Controllers: In order to address the retrofit market and to reduce the time needed to develop and deploy intelligent luminaires, Echelon provides its own brand of outdoor lighting controllers. Echelon outdoor lighting controllers support RF and power line (PL) based communications. |
• | Motion Sensors: Echelon motion sensors work with outdoor lighting controllers to adjust light levels based on motion (ON/OFF or dimming). |
• | SmartServer Segment Controller: The Echelon SmartServer Segment Controller is a controller and gateway for connecting outdoor lighting segments to a centralized management system. The SmartServer provides rules for operation, invoking on/off time and sequencing, dimming time and percentage, and other functions. |
• | PL/RF Bridge: Our PL/RF Bridge can be used to connect segments (groups) of outdoor lights to a SmartServer. The PL/RF Bridge uses a plug-and-play RF connection for simple, low-cost installation. Each virtual segment communicates with the SmartServer over existing power lines. |
• | Wireless and Ethernet Gateways: These gateways provide network access for setup functions, administration and communications within the system. |
• | Management Software: Manages the outdoor lighting network using the wireless control module and gateway for control and communication. |
• | Third-Party Software: Third-party system software integrates with a city's enterprise applications and manages the outdoor lighting network using the SmartServer for control and communication. System software is available in hosted or server-based configurations. |
Year ended December 31, | ||||||||
2016 | 2015 | 2014 | ||||||
Avnet | 28.7 | % | 24.5 | % | 26.2 | % | ||
Enel | 4.1 | % | 12.7 | % | 7.7 | % | ||
Total | 32.8 | % | 37.2 | % | 33.9 | % |
Year ended December 31, | |||||
2016 | 2015 | 2014 | |||
Americas | $11,402 | $12,380 | $12,754 | ||
EMEA | 14,115 | 17,799 | 14,494 | ||
APJ | 6,868 | 8,625 | 11,482 | ||
Total | $32,385 | $38,804 | $38,730 |
• | the price and features of our products such as adaptability, scalability, functionality, ease of use, and the ability to integrate with other products; |
• | our ability to anticipate changes in customer requirements and to develop new or improved products that meet these requirements in a timely manner; |
• | our product reputation, quality, performance, and conformance with established industry standards; |
• | our customer service and support; |
• | warranties, indemnities, and other contractual terms; and |
• | customer relationships and market awareness. |
• | the risk of competition and emerging technologies (see “If we do not develop and maintain adequate distribution channels, our revenues will be harmed” for additional information on the risks associated with competing for market share); |
• | the risk that we will not be able to develop adequate sales channels for these new products and services (see “Our IIoT revenues may not meet expectations, which could cause volatility in the price of our stock” for additional information on the risks associated with establishing new sales channels); |
• | the risk that we misjudge the market and fail to develop solutions that meet the requirements of our existing or potential customers; |
• | the risk that our solutions will suffer security breaches or unintended releases of private data; |
• | the risk that our products will not perform adequately due to defect or misuse by customers (see “Liabilities resulting from defects in or misuse of our products, whether or not covered by insurance, may delay our revenues and increase our liabilities and expenses” for additional information on the risks associated with defective or misused products); |
• | the risk that our supply chain for components is unable to meet our demand (see “Because we depend on a limited number of key suppliers and in certain cases, a sole supplier, the failure of any key supplier to produce timely and compliant products could result in a failure to ship products, or could subject us to higher prices, which would harm our results of operations and financial position” for additional information on the risks associated with manufacturing). |
• | our ability to anticipate changes in customer or regulatory requirements and to develop, or improve, our products to meet these requirements in a timely manner; |
• | the price and features of our products such as adaptability, scalability, functionality, ease of use, and the ability to integrate with other products; |
• | our product reputation, quality, performance, and conformance with established industry standards; |
• | our ability to expand our product line to address our customers’ requirements; |
• | our ability to effectively manage and expand our distribution channels to address new markets for current and future products; |
• | our ability to meet a customer’s required delivery schedules; |
• | a customer’s willingness to do business with us because of our size and perceived concerns regarding our liquidity and financial strength relative to our competitors; |
• | the risk of industry consolidation, which is particularly high in emerging markets such as the IIoT; |
• | our customer service and support; |
• | warranties, indemnities, and other contractual terms; and |
• | customer relationships and market awareness. |
• | Achieve acceptance of our products in the IIoT market, particularly the outdoor lighting market, in order to increase our revenues; |
• | Manage our operating expenses to a reasonable percentage of revenues; and |
• | Manage our cash resources prudently. |
• | moving raw material, in-process inventory, and capital equipment between locations, some of which may be in different parts of the world; |
• | reestablishing acceptable manufacturing processes with a new work force; and |
• | exposure to excess or obsolete inventory held by contract manufacturers for use in our products. |
• | timing of and costs associated with localizing products for foreign countries and lack of acceptance of non-local products in foreign countries; |
• | that the nature and composition of our products may subject us to any number of additional legal requirements, which might include, but are not limited to, data privacy regulations, import/export regulations and other similar requirements; |
• | inherent challenges in managing international operations; |
• | the burdens of complying with a wide variety of foreign laws and any related implementation costs; the applicability of foreign laws that could affect our business or revenues, such as laws that purport to require that we return payments that we received from insolvent customers in certain circumstances; and unexpected changes in regulatory requirements, tariffs, and other trade barriers; |
• | inherent cultural differences that could make it more difficult to sell our products or could result in allegations that sales activities have violated the U.S. Foreign Corrupt Practices Act or similar laws that prohibit improper payments in connection with efforts to obtain business; |
• | the imposition of tariffs or other trade barriers on the importation of our products; |
• | potentially adverse tax consequences, including restrictions on repatriation of earnings; |
• | economic and political conditions in the countries where we do business; |
• | differing vacation and holiday patterns in other countries, particularly in Europe; |
• | increased costs of labor, particularly in China; |
• | labor actions generally affecting individual countries, regions, or any of our customers, which could result in reduced demand for, or could delay delivery or acceptance of, our products; and |
• | international terrorism. |
• | orders may be cancelled; |
• | the mix of products and services that we sell may change to a less profitable mix; |
• | shipment, payment schedules, and product acceptance may be delayed; |
• | our products may not be purchased by OEMs, systems integrators, service providers and end-users at the levels we project; |
• | our ability to develop products that comply with future regulations and trade association guidelines; |
• | the revenue recognition rules relating to certain of our products could require us to defer some or all of the revenue associated with product shipments until certain conditions, such as delivery and acceptance criteria for our software and/or hardware products, are met in a future period; |
• | our CEMs may not be able to provide quality products on a timely basis, especially during periods where capacity in the CEM market is limited; |
• | our products may not be manufactured in accordance with specifications or our established quality standards, or may not perform as designed; |
• | downturns in any customer’s or potential customer’s business, or declines in general economic conditions, could cause significant reductions in capital spending, thereby reducing the levels of orders from our customers; |
• | we may incur costs associated with any future business acquisitions; and |
• | any future impairment charges related to our intangible assets that are required to be recorded under generally accepted accounting principles in the United States may negatively affect our earnings and financial condition. |
ITEM 5. | MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES |
Price Range | ||||||||
Year ended December 31, 2016 | High | Low | ||||||
Fourth quarter | $ | 5.50 | $ | 4.17 | ||||
Third quarter | 5.75 | 4.73 | ||||||
Second quarter | 5.74 | 4.41 | ||||||
First quarter | 6.70 | 4.71 | ||||||
Year ended December 31, 2015 | ||||||||
Fourth quarter | $ | 7.50 | $ | 5.40 | ||||
Third quarter | 8.90 | 4.80 | ||||||
Second quarter | 12.10 | 7.56 | ||||||
First quarter | 17.00 | 8.90 |
Period | Total Number of Shares Purchased (1) | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs (1) | |||||
October 1 – October 31 | — | $ | — | — | — | ||||
November 1 – November 30 | — | $ | — | — | — | ||||
December 1 – December 31 | 21 | $ | 5.34 | — | — | ||||
Total | 21 | $ | 5.34 | — | — | ||||
(1) Represents shares surrendered to us by employees in order to satisfy stock-for-stock option exercises and/or withholding tax obligations related to stock-based compensation. |
ITEM 6. | SELECTED FINANCIAL DATA |
Year Ended December 31, | |||||||||||||||||||
2016 | 2015 | 2014 | 2013 | 2012 | |||||||||||||||
Consolidated Statement of Operations Data: | (in thousands, except per share data) | ||||||||||||||||||
Revenues | $ | 32,385 | $ | 38,804 | $ | 38,730 | $ | 45,857 | $ | 134,017 | |||||||||
Cost of revenues | 14,302 | 16,528 | 16,818 | 18,015 | 77,562 | ||||||||||||||
Gross profit | 18,083 | 22,276 | 21,912 | 27,842 | 56,455 | ||||||||||||||
Operating expenses: | |||||||||||||||||||
Product development | 8,260 | 9,747 | 9,510 | 10,922 | 30,009 | ||||||||||||||
Sales and marketing | 6,189 | 7,832 | 9,098 | 9,061 | 21,460 | ||||||||||||||
General and administrative | 8,077 | 9,249 | 13,734 | 14,644 | 15,050 | ||||||||||||||
Restructuring charges | 286 | — | 391 | 2,254 | 1,176 | ||||||||||||||
Goodwill impairment | — | 5,698 | — | — | — | ||||||||||||||
Lease termination charges | — | 3,337 | — | — | — | ||||||||||||||
Loss on write down of property, equipment and other | — | — | 4,409 | — | — | ||||||||||||||
Litigation charges | — | — | — | 3,452 | — | ||||||||||||||
Total operating expenses | 22,812 | 35,863 | 37,142 | 40,333 | 67,695 | ||||||||||||||
Loss from continuing operations | (4,729 | ) | (13,587 | ) | (15,230 | ) | (12,491 | ) | (11,240 | ) | |||||||||
Interest and other income (expense), net | 808 | 791 | 930 | (702 | ) | (362 | ) | ||||||||||||
Interest expense on lease financing obligations | — | (387 | ) | (1,100 | ) | (1,235 | ) | (1,360 | ) | ||||||||||
Loss from continuing operations before provision for income taxes | (3,921 | ) | (13,183 | ) | (15,400 | ) | (14,428 | ) | (12,962 | ) | |||||||||
Income tax expense | 182 | 50 | 211 | 311 | 219 | ||||||||||||||
Net loss from continuing operations | (4,103 | ) | (13,233 | ) | (15,611 | ) | (14,739 | ) | (13,181 | ) | |||||||||
Net loss attributable to non-controlling interest | — | — | — | — | 363 | ||||||||||||||
Net loss from continuing operations attributable to Echelon Corporation stockholders | $ | (4,103 | ) | $ | (13,233 | ) | $ | (15,611 | ) | $ | (14,739 | ) | $ | (12,818 | ) | ||||
Net loss from discontinued operations, net of income taxes | — | — | (9,250 | ) | (3,679 | ) | — | ||||||||||||
Net loss from discontinued operations attributable to non-controlling interest | — | — | 535 | 808 | — | ||||||||||||||
Net loss from discontinued operations attributable to Echelon Corporation stockholders | — | — | (8,715 | ) | (2,871 | ) | — | ||||||||||||
Net loss attributable to Echelon Corporation Stockholders | $ | (4,103 | ) | $ | (13,233 | ) | $ | (24,326 | ) | $ | (17,610 | ) | $ | (12,818 | ) | ||||
Basic and diluted net loss per share from continuing operations attributable to Echelon Corporation Stockholders | $ | (0.93 | ) | $ | (3.00 | ) | $ | (3.59 | ) | $ | (3.42 | ) | $ | (3.01 | ) | ||||
Basic and diluted net loss per share from discontinued operations attributable to Echelon Corporation Stockholders | $ | 0.00 | $ | 0.00 | $ | (2.00 | ) | $ | (0.67 | ) | $ | 0.00 | |||||||
Basic and diluted net loss per share attributable to Echelon Corporation stockholders | $ | (0.93 | ) | $ | (3.00 | ) | $ | (5.59 | ) | $ | (4.09 | ) | $ | (3.01 | ) | ||||
Shares used in computing net loss per share 1: | |||||||||||||||||||
Basic | 4,425 | 4,409 | 4,350 | 4,309 | 4,265 | ||||||||||||||
Diluted | 4,425 | 4,409 | 4,350 | 4,309 | 4,265 | ||||||||||||||
Cash dividends declared per common share | — | — | — | — | — | ||||||||||||||
Consolidated Balance Sheet Data: | |||||||||||||||||||
Cash, cash equivalents, restricted investments, and short-term investments | $ | 23,036 | $ | 26,070 | $ | 43,570 | $ | 57,635 | $ | 61,855 | |||||||||
Working capital | 23,083 | 26,713 | 40,310 | 57,090 | 72,661 | ||||||||||||||
Total assets | 32,908 | 38,046 | 71,646 | 106,128 | 123,583 | ||||||||||||||
Total liabilities | 8,230 | 9,125 | 28,469 | 38,151 | 39,788 | ||||||||||||||
Total stockholders' equity | $ | 24,678 | $ | 28,921 | $ | 43,177 | $ | 67,977 | $ | 83,795 |
ITEM 7. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
Year ended December 31, | ||||||||||||||
2016 | 2015 | $ Change | % Change | |||||||||||
Net revenues | $ | 32,385 | $ | 38,804 | $ | (6,419 | ) | (16.5 | )% | |||||
Gross margin | 55.8 | % | 57.4 | % | --- | (1.6) ppt | ||||||||
Operating expenses | $ | 22,812 | $ | 35,863 | $ | (13,051 | ) | (36.4 | )% | |||||
Net loss attributable to Echelon Corporation Stockholders | $ | (4,103 | ) | $ | (13,233 | ) | $ | 9,130 | (69.0 | )% | ||||
Cash, cash equivalents, restricted investments, and short-term investments | $ | 23,036 | $ | 26,070 | $ | (3,034 | ) | (11.6 | )% |
• | Net revenues: Our total revenues decreased by 16.5% during 2016 as compared to 2015. Excluding component sales to Enel, which decreased from $4.9 million in 2015 to $1.3 million in 2016, our revenues decreased by 8.3% during 2016 as compared to 2015. This decrease was primarily due to a reduction in sales of our products in all the regions that we serve. We have seen a loss of market share over the last several years, as a result of reductions in IIoT related research and development and marketing expenses during the period in which the Company was pursuing its Grid business, which was sold in 2014. This impacted sales of our LONWORKS portfolio of products in particular, which has caused a decrease in our IIoT revenues. |
• | Gross margin: Our gross margin decreased by 1.6 percentage points during 2016 as compared to 2015. The decrease was primarily due to a change in the mix of products sold as well as lower overall revenue levels. |
• | Operating expenses: Our operating expenses decreased by 36.4% during 2016 as compared to 2015. This continues a trend we began several years ago and is primarily due to a reduction in our facilities expenses as well as reduced compensation related expenses resulting from the restructuring actions we have undertaken. |
• | Net loss: We generated a net loss of $4.1 million during 2016, which was a decrease from the net loss of $13.2 million in 2015. Excluding the impact of non-cash stock-compensation charges, impairment charges, adjustments to the expected Lumewave consideration, lease termination charges, and restructuring charges, our net loss decreased by approximately $1.1 million, or 24.4%, in 2016 as compared to 2015. This reduction was primarily the result of an overall decrease in our operating expenses. |
• | Cash, cash equivalents, restricted investments, and short-term investments: During 2016, our cash, cash equivalents, restricted investments, and short-term investment balance decreased by 11.6%, from $26.1 million at December 31, 2015 to $23.0 million at December 31, 2016. This decrease was primarily the result of cash used in operations of $3.0 million (driven primarily by our net loss of $4.1 million less non-cash charges for depreciation and amortization, and stock based compensation). |
Year ended December 31, | ||||||||
2016 | 2015 | 2014 | ||||||
Revenues | 100.0 | % | 100.0 | % | 100.0 | % | ||
Cost of revenues | 44.2 | 42.6 | 43.4 | |||||
Gross profit | 55.8 | 57.4 | 56.6 | |||||
Operating expenses: | ||||||||
Product development | 25.5 | 25.1 | 24.6 | |||||
Sales and marketing | 19.1 | 20.2 | 23.5 | |||||
General and administrative | 24.9 | 23.8 | 35.5 | |||||
Goodwill impairment | — | 14.7 | — | |||||
Lease termination charges | — | 8.6 | — | |||||
Loss on write down of property, equipment and other | — | — | 11.4 | |||||
Restructuring charges | 0.9 | — | 1.0 | |||||
Total operating expenses | 70.4 | 92.4 | 96.0 | |||||
Loss from continuing operations | (14.6 | ) | (35.0 | ) | (39.4 | ) | ||
Interest and other income (expense), net | 2.5 | 2.0 | 2.4 | |||||
Interest expense on lease financing obligations | — | (1.0 | ) | (2.8 | ) | |||
Loss from continuing operations before provision for income taxes | (12.1 | ) | (34.0 | ) | (39.8 | ) | ||
Income tax expense | 0.6 | 0.1 | 0.5 | |||||
Net loss from continuing operations | (12.7 | ) | (34.1 | ) | (40.3 | ) | ||
Net loss from discontinued operations, net of income taxes | — | — | (23.9 | ) | ||||
Net loss from discontinued operations attributable to non-controlling interest, net of income taxes | — | — | 1.4 | |||||
Net loss from discontinued operations attributable to Echelon Corporation stockholders, net of income taxes | — | — | (22.5 | ) | ||||
Net loss attributable to Echelon Corporation stockholders | (12.7 | )% | (34.1 | )% | (62.8 | )% |
Year ended December 31, | |||||||||||||||||||||||
(Dollars in thousands) | 2016 | 2015 | 2014 | 2016 over 2015 $ Change | 2015 over 2014 $ Change | 2016 over 2015 % Change | 2015 over 2014 % Change | ||||||||||||||||
Total revenues | $ | 32,385 | $ | 38,804 | $ | 38,730 | (6,419 | ) | 74 | (16.5 | )% | 0.2 | % |
Year ended December 31, | |||||||||||||||||||||||||
(Dollars in thousands) | 2016 | 2015 | 2014 | 2016 over 2015 $ Change | 2015 over 2014 $ Change | 2016 over 2015 % Change | 2015 over 2014 % Change | ||||||||||||||||||
Enel revenues in Total Revenues | 1,313 | $ | 4,909 | $ | 2,993 | (3,596 | ) | 1,916 | (73.3 | )% | 64.0 | % | |||||||||||||
Enel revenues in Discontinued Operations | — | — | 112 | — | (112 | ) | — | % | (100.0 | )% | |||||||||||||||
Total Enel revenues | $ | 1,313 | $ | 4,909 | $ | 3,105 | $ | (3,596 | ) | $ | 1,804 | (73.3 | )% | 58.1 | % |
Year ended December 31, | |||||||||||||||||||||||
(Dollars in thousands) | 2016 | 2015 | 2014 | 2016 over 2015 $ Change | 2015 over 2014 $ Change | 2016 over 2015 % Change | 2015 over 2014 % Change | ||||||||||||||||
Gross Profit | $ | 18,083 | $ | 22,276 | $ | 21,912 | (4,193 | ) | 364 | (18.8 | )% | 1.7 | % | ||||||||||
Gross Margin | 55.8 | % | 57.4 | % | 56.6 | % | — | — | (1.6 | ) | 0.8 |
Year ended December 31, | |||||||||||||||||||||||
(Dollars in thousands) | 2016 | 2015 | 2014 | 2016 over 2015 $ Change | 2015 over 2014 $ Change | 2016 over 2015 % Change | 2015 over 2014 % Change | ||||||||||||||||
Product Development | $ | 8,260 | $ | 9,747 | $ | 9,510 | (1,487 | ) | 237 | (15.3 | )% | 2.5 | % |
Year ended December 31, | |||||||||||||||||||||||
(Dollars in thousands) | 2016 | 2015 | 2014 | 2016 over 2015 $ Change | 2015 over 2014 $ Change | 2016 over 2015 % Change | 2015 over 2014 % Change | ||||||||||||||||
Sales and Marketing | $ | 6,189 | $ | 7,832 | $ | 9,098 | (1,643 | ) | (1,266 | ) | (21.0 | )% | (13.9 | )% |
Year ended December 31, | |||||||||||||||||||||||
(Dollars in thousands) | 2016 | 2015 | 2014 | 2016 over 2015 $ Change | 2015 over 2014 $ Change | 2016 over 2015 % Change | 2015 over 2014 % Change | ||||||||||||||||
General and Administrative | $ | 8,077 | $ | 9,249 | $ | 13,734 | (1,172 | ) | (4,485 | ) | (12.7 | )% | (32.7 | )% |
Year ended December 31, | |||||||||||||||||||||||
(Dollars in thousands) | 2016 | 2015 | 2014 | 2016 over 2015 $ Change | 2015 over 2014 $ Change | 2016 over 2015 % Change | 2015 over 2014 % Change | ||||||||||||||||
Goodwill Impairment | $ | — | $ | 5,698 | $ | — | (5,698 | ) | 5,698 | (100.0 | )% | 100.0 | % |
Year ended December 31, | |||||||||||||||||||||||
(Dollars in thousands) | 2016 | 2015 | 2014 | 2016 over 2015 $ Change | 2015 over 2014 $ Change | 2016 over 2015 % Change | 2015 over 2014 % Change | ||||||||||||||||
Lease Termination Charges | $ | — | $ | 3,337 | $ | — | (3,337 | ) | 3,337 | (100.0 | )% | 100 | % |
Year ended December 31, | |||||||||||||||||||||||
(Dollars in thousands) | 2016 | 2015 | 2014 | 2016 over 2015 $ Change | 2015 over 2014 $ Change | 2016 over 2015 % Change | 2015 over 2014 % Change | ||||||||||||||||
Loss on write down of property, equipment and other | $ | — | $ | — | $ | 4,409 | — | (4,409 | ) | — | % | (100.0 | )% |
Year ended December 31, | ||||||||||||||||||||||
(Dollars in thousands) | 2016 | 2015 | 2014 | 2016 over 2015 $ Change | 2015 over 2014 $ Change | 2016 over 2015 % Change | 2015 over 2014 % Change | |||||||||||||||
Restructuring Charges | $ | 286 | $ | — | $ | 391 | 286 | (391 | ) | —% | (100.0 | )% |
Year ended December 31, | |||||||||||||||||||||||
(Dollars in thousands) | 2016 | 2015 | 2014 | 2016 over 2015 $ Change | 2015 over 2014 $ Change | 2016 over 2015 % Change | 2015 over 2014 % Change | ||||||||||||||||
Interest and Other Income (Expense), Net | $ | 808 | $ | 791 | $ | 930 | 17 | (139 | ) | 2.1 | % | (14.9 | )% |
Year ended December 31, | |||||||||||||||||||||||||
(Dollars in thousands) | 2016 | 2015 | 2014 | 2016 over 2015 $ Change | 2015 over 2014 $ Change | 2016 over 2015 % Change | 2015 over 2014 % Change | ||||||||||||||||||
Interest Expense on Lease Financing Obligations | $ | — | $ | (387 | ) | $ | (1,100 | ) | $ | (387 | ) | $ | (713 | ) | (100.0 | )% | (64.8 | )% |
Year ended December 31, | |||||||||||||||||||||||
(Dollars in thousands) | 2016 | 2015 | 2014 | 2016 over 2015 $ Change | 2015 over 2014 $ Change | 2016 over 2015 % Change | 2015 over 2014 % Change | ||||||||||||||||
Income Tax Expense | $ | 182 | $ | 50 | $ | 211 | 132 | (161 | ) | 264.0 | % | (76.3 | )% |
Year ended December 31 | |||
2014 | |||
Revenues | $ | 18,392 | |
Cost of revenues | 11,774 | ||
Operating expenses | 15,614 | ||
Loss from discontinued operations before income taxes | (8,996 | ) | |
Income taxes | — | ||
Loss on sale of Grid business | (254 | ) | |
Net loss from discontinued operations, net of income taxes | (9,250 | ) | |
Net loss from discontinued operations attributable to non-controlling interest, net of income taxes | 535 | ||
Net loss from discontinued operations attributable to Echelon Corporation Stockholders, net of income taxes | $ | (8,715 | ) |
Payments due by period | |||||||||||||||||||
Total | Less than 1 year | 2-3 years | 4-5 years | More than 5 years | |||||||||||||||
Operating leases | $ | 2,282 | $ | 974 | $ | 1,308 | $ | — | $ | — | |||||||||
Purchase commitments | 7,674 | 7,674 | — | — | — | ||||||||||||||
Total | $ | 9,956 | $ | 8,648 | $ | 1,308 | $ | — | $ | — |
December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Cash, cash equivalents, restricted investments, and short-term investments | $ | 23,036 | $ | 26,070 | $ | 43,570 | |||||
Trade accounts receivable, net | 3,015 | 4,030 | 3,948 | ||||||||
Working capital | 23,083 | 26,713 | 40,310 | ||||||||
Stockholders’ equity | $ | 24,678 | $ | 28,921 | $ | 43,177 |
a. | Evaluation of Effectiveness of Disclosure Controls and Procedures |
b. | Management's Report on Internal Control Over Financial Reporting |
c. | Changes in Internal Control Over Financial Reporting |
1. | Financial Statements |
Page | |
Reports of Independent Registered Public Accounting Firms | |
Consolidated Balance Sheets | |
Consolidated Statements of Operations | |
Consolidated Statements of Comprehensive Loss | |
Consolidated Statements of Stockholders' Equity | |
Consolidated Statements of Cash Flows | |
Notes to Consolidated Financial Statements |
2. | Financial Statement Schedule |
See Note 16 in Notes to Consolidated Financial Statements |
3. | Exhibits |
Exhibit No. | Description of Document |
3.2(1) | Amended and Restated Certificate of Incorporation of Registrant, as amended December 7, 2015. |
3.3(2) | Amended and Restated Bylaws of Registrant. |
4.1(3) | Form of Registrant's Common Stock Certificate. |
4.2(17) | Tax Benefit Preservation Plan, dated as of April 22, 2016, by and between Echelon Corporation and Computershare Inc., as rights agent. |
10.1(4) | Form of Indemnification Agreement entered into by Registrant with each of its directors and executive officers. |
10.2(10) | 1997 Stock Plan (as amended and restated March 26, 2004) |
10.2(16)+ | 1997 Stock Plan (as amended and restated April 3, 2013) |
10.2(a)(5)+ | Form of 1997 Stock Plan Stock Option Agreement with early exercise feature |
10.2(b)(5)+ | Form of 1997 Stock Plan Nonqualified Stock Option Agreement with early exercise feature |
10.2(c)(6)+ | Form of 1997 Stock Plan Nonqualified Stock Option Agreement |
10.2(d)(5)+ | Form of 1997 Stock Plan Performance Share Agreement (re: non-standard vesting schedule) |
10.2(e)(5)+ | Form of 1997 Stock Plan Performance Share Agreement for non-US employees |
10.2(f)(5)+ | Form of 1997 Stock Plan Performance Share Agreement with performance based vesting criteria for non-US employees |
10.2(g)(5)+ | Form of 1997 Stock Plan Stock Appreciation Right Agreement for non-US employees |
10.2(h)(5)+ | Form of 1997 Stock Plan Performance Share Agreement with performance based vesting criteria |
10.2(i)(5)+ | Form of 1997 Stock Plan Performance Share Agreement |
10.2(j)(13)+ | Form of 1997 Stock Plan Stock Appreciation Right Agreement |
10.2(k)(7)+ | Form of 1997 Stock Plan Performance Share Agreement for US-based corporate officers |
10.2(l)(11)+ | Form of 1997 Stock Plan Performance Share Agreement for non US-based corporate officers |
10.2(m)(7)+ | Form of 1997 Stock Plan Stock Appreciation Right Agreement for US-based corporate officers |
10.2(n)(7)+ | Form of 1997 Stock Plan Stock Appreciation Right Agreement for non US-based corporate officers |
10.2(o)(12)+ | Form of 1997 Stock Plan Restricted Stock Award Agreement |
10.2(p)(15)+ | Form of 1997 Stock Plan Stock Option Agreement for U.S. Optionees (2012) |
10.2(q)(15)+ | Form of 1997 Stock Plan Stock Option Agreement for U.S. Corporate Officers (2012) |
10.2(r)(15)+ | Form of 1997 Stock Plan Stock Option Agreement for Optionees Outside the U.S. (2012) |
10.2(s)(15)+ | Form of 1997 Stock Plan Stock Option Agreement for Corporate Officers Outside the U.S. (2012) |
10.2(t)(15)+ | Form of 1997 Stock Plan Stock Option Agreement Appendix A for Optionees Outside the U.S. (2012) |
10.2(u)(15)+ | Form of 1997 Stock Plan Performance Share Agreement for Participants Outside the U.S. (2012) |
10.2(v)(15)+ | Form of 1997 Stock Plan Performance Share Agreement for Corporate Officers Outside the U.S. (2012) |
10.2(w)(15)+ | Form of 1997 Stock Plan Performance Share Agreement Appendix A for Participants Outside the U.S. (2012) |
10.2 (15)+ | 1997 Stock Plan (as amended and restated August 18, 2010) |
10.3 (18) | 2016 Equity Incentive Plan and form agreements |
10.4 (19) | 2016 Inducement Equity Incentive Plan and form agreements |
10.5 (4) | Form of International Distributor Agreement. |
10.6 (4) | Form of OEM License Agreement. |
10.7 (4) | Form of Software License Agreement. |
10.8 (4) | International Distributor Agreement between the Company and EBV Elektronik GmbH as of December 1, 1997. |
10.9 (9) | Building 1 Lease Agreement dated December 30, 1999 |
10.10 (9) | First Amendment to Building 1 Lease Agreement dated May 10, 2000 |
10.11 (9) | Echelon Corporation Common Stock Purchase Agreement with ENEL S.p.A. dated June 30, 2000 |
10.12 (9) | Second Amendment to Building 1 Lease Agreement dated September 22, 2000 |
10.13 (9) | Building 2 Lease Agreement dated November 15, 2001 |
10.14 (9) | Third Amendment to Building 1 Lease Agreement dated April 10, 2008 |
10.15 (9) | First Amendment to Building 2 Lease Agreement dated April 10, 2008 |
10.16 (14) | Form of Value Added Reseller Agreement |
10.17 | Assignment and Amendment dated April 29, 2011 between the Company and Avnet Europe Comm VA (assigning and modifying the International Distributor Agreement filed as Exhibit 10.8 to the Registration Statement on Form S-1 filed on June 1, 1998) |
10.18+ | Echelon Corporation Employment Agreement by and between Echelon Corporation and Ronald A. Sege dated August 18, 2010 |
10.19(16)+ | Form of Executive Change in Control and Severance Agreement (2013) |
10.20(20)+ | Echelon Corporation Employment letter with Alicia Jayne Moore dated June 27, 2013 |
21.1(3) | Subsidiaries of the Registrant. |
23.1 | Consent of Armanino LLP, Independent Registered Public Accounting Firm. |
23.2 | Consent of KPMG LLP, Independent Registered Public Accounting Firm |
24.1(4) | Power of Attorney (see signature page). |
31.1 | Certificate of Echelon Corporation Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
31.2 | Certificate of Echelon Corporation Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
32 | Certification by the Chief Executive Officer and the Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
101.INS* | XBRL Instance Document |
101.SCH* | XBRL Taxonomy Extension Schema |
101.CAL* | XBRL Taxonomy Extension Calculation Linkbase |
101.DEF* | XBRL Taxonomy Extension Definition Linkbase |
101.LAB* | XBRL Taxonomy Extension Label Linkbase |
101.PRE* | XBRL Taxonomy Extension Presentation Linkbase |
* | The financial information contained in these XBRL documents is unaudited and is furnished, not filed with the Securities and Exchange Commission. |
+ | Indicates management contract or compensatory plan or arrangement required to be filed as an exhibit pursuant to Item 14(c) of Form 10-K. |
(1) | Incorporated herein by reference to the Registrant's Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2000, filed on November 14, 2000, and Current Report on Form 8-K filed on December 10, 2015. |
(2) | Incorporated herein by reference to the Registrant's Current Report on Form 8-K dated August 16, 2007, filed on August 17, 2007. |
(3) | Incorporated herein by reference to the Registrant's Registration Statement on Form S-1/A filed on July 9, 1998. |
(4) | Incorporated herein by reference to the Registrant's Registration Statement on Form S-1 filed on June 1, 1998. |
(5) | Incorporated herein by reference to the Registrant's Annual Report on Form 10-K for the fiscal year ended December 31, 2006, filed on March 16, 2007. |
(6) | Incorporated herein by reference to the Registrant's Current Report Form 8-K dated April 12, 2007, filed on April 18, 2007. |
(7) | Incorporated herein by reference to the Registrant's Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2008, filed on August 11, 2008. |
(8) | Incorporated herein by reference to the Registrant's Registration Statement on Form S-8 filed on August 21, 2000. |
(9) | Incorporated herein by reference to the Registrant's Annual Report on Form 10-K/A for the fiscal year ended December 31, 2008, filed on March 11, 2010. |
(10) | Incorporated herein by reference to the Registrant's Registration Statement on Form S-8 filed on June 1, 2005. |
(11) | Incorporated herein by reference to the Registrant's Registration Statement on Form S-8 filed on August 6, 2010. |
(12) | Incorporated herein by reference to the Registrant's Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2010, filed on November 3, 2010 |
(13) | Incorporated herein by reference to the Registrant's Annual Report on Form 10-K for the fiscal year ended December 31, 2007, filed on March 17, 2008 |
(14) | Incorporated herein by reference to the Registrant's Annual Report on Form 10-K for the fiscal year ended December 31, 2009, filed on March 16, 2010 |
(15) | Incorporated herein by reference to the Registrant's Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2012, filed on August 8, 2012 |
(16) | Incorporated herein by reference to the Registrant's Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2013, filed on August 9, 2013 |
(17) | Incorporated herein by reference to the Registrant's Current Report on Form 8-K filed on April 26, 2016 |
(18) | Incorporated herein by reference to the Registrant's Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2016, filed on November 9, 2016 |
(19) | Incorporated herein by reference to the Registrant's Registration Statement on Form S-8 filed on April 21, 2016 |
(20) | Incorporated herein by reference to the Registrant's Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2013, filed on November 8, 2013 |
December 31, 2016 | December 31, 2015 | ||||||
ASSETS | |||||||
CURRENT ASSETS: | |||||||
Cash and cash equivalents | $ | 9,803 | $ | 7,691 | |||
Restricted investments | 1,250 | 1,401 | |||||
Short-term investments | 11,983 | 16,978 | |||||
Accounts receivable, net of allowances of $564 in 2016 and $521 in 2015 1 | 3,015 | 4,030 | |||||
Inventories | 2,570 | 2,893 | |||||
Deferred cost of goods sold | 1,104 | 1,122 | |||||
Other current assets | 900 | 1,109 | |||||
Total current assets | 30,625 | 35,224 | |||||
Property and equipment, net | 445 | 595 | |||||
Intangible assets, net | 953 | 1,183 | |||||
Goodwill (see Note 10) | — | — | |||||
Other long-term assets | 885 | 1,044 | |||||
Total assets | $ | 32,908 | $ | 38,046 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
CURRENT LIABILITIES: | |||||||
Accounts payable | $ | 1,697 | $ | 2,267 | |||
Accrued liabilities | 2,174 | 2,885 | |||||
Deferred revenues | 3,671 | 3,359 | |||||
Total current liabilities | 7,542 | 8,511 | |||||
LONG-TERM LIABILITIES: | |||||||
Other long-term liabilities | 688 | 614 | |||||
Total liabilities | 8,230 | 9,125 | |||||
STOCKHOLDERS’ EQUITY: | |||||||
Preferred stock, $0.01 par value: | |||||||
Authorized - 5,000,000 shares; none outstanding | — | — | |||||
Common stock, $0.01 par value: | |||||||
Authorized - 10,000,000 shares | |||||||
Issued - 4,753,654 in 2016 and 4,738,370 shares in 2015, Outstanding - 4,431,736 in 2016 and 4,416,452 shares in 2015 | 48 | 47 | |||||
Additional paid-in capital | 358,123 | 356,746 | |||||
Treasury stock (321,918 shares in 2016 and 2015) | (28,130 | ) | (28,130 | ) | |||
Accumulated other comprehensive loss | (2,437 | ) | (1,594 | ) | |||
Accumulated deficit | (303,180 | ) | (298,402 | ) | |||
Total Echelon Corporation stockholders’ equity | 24,424 | 28,667 | |||||
Non controlling interest in subsidiary | 254 | 254 | |||||
Total stockholders’ equity | 24,678 | 28,921 | |||||
Total liabilities and stockholders’ equity | $ | 32,908 | $ | 38,046 |
Year ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Revenues (1) | $ | 32,385 | $ | 38,804 | $ | 38,730 | |||||
Cost of revenues (2) | 14,302 | 16,528 | 16,818 | ||||||||
Gross profit | 18,083 | 22,276 | 21,912 | ||||||||
Operating expenses: | |||||||||||
Product development (2) | 8,260 | 9,747 | 9,510 | ||||||||
Sales and marketing (2) | 6,189 | 7,832 | 9,098 | ||||||||
General and administrative (2) | 8,077 | 9,249 | 13,734 | ||||||||
Goodwill impairment | — | 5,698 | — | ||||||||
Lease termination charges | — | 3,337 | — | ||||||||
Loss on write down of property, equipment and other | — | — | 4,409 | ||||||||
Restructuring charges | 286 | — | 391 | ||||||||
Total operating expenses | 22,812 | 35,863 | 37,142 | ||||||||
Loss from continuing operations | (4,729 | ) | (13,587 | ) | (15,230 | ) | |||||
Interest and other income (expense), net | 808 | 791 | 930 | ||||||||
Interest expense on lease financing obligations | — | (387 | ) | (1,100 | ) | ||||||
Loss from continuing operations before provision for income taxes | (3,921 | ) | (13,183 | ) | (15,400 | ) | |||||
Income tax expense | 182 | 50 | 211 | ||||||||
Net loss from continuing operations | (4,103 | ) | (13,233 | ) | (15,611 | ) | |||||
Net loss from discontinued operations, net of income taxes(2) | — | — | (9,250 | ) | |||||||
Net loss from discontinued operations attributable to non controlling interest, net of income taxes | — | — | 535 | ||||||||
Net loss from discontinued operations attributable to Echelon Corporation Stockholders, net of income taxes | — | — | (8,715 | ) | |||||||
Net loss attributable to Echelon Corporation Stockholders | $ | (4,103 | ) | $ | (13,233 | ) | $ | (24,326 | ) | ||
Basic and diluted net loss per share from continuing operations attributable to Echelon Corporation Stockholders | $ | (0.93 | ) | $ | (3.00 | ) | $ | (3.59 | ) | ||
Basic and diluted net loss per share from discontinued operations attributable to Echelon Corporation Stockholders | $ | — | $ | — | $ | (2.00 | ) | ||||
Basic and diluted net loss per share attributable to Echelon Corporation Stockholders | $ | (0.93 | ) | $ | (3.00 | ) | $ | (5.59 | ) | ||
Shares used in computing net loss per share: | |||||||||||
Basic | 4,425 | 4,409 | 4,350 | ||||||||
Diluted | 4,425 | 4,409 | 4,350 |
1 | Includes related party amounts of $1,313, $4,909, and $2,993 in 2016, 2015, and 2014, respectively. See Note 14 for additional information on related party transactions. |
Year ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Net loss from continuing operations | $ | (4,103 | ) | $ | (13,233 | ) | $ | (15,611 | ) | ||
Net loss from discontinued operations, net of income taxes | — | — | (9,250 | ) | |||||||
Net loss | (4,103 | ) | (13,233 | ) | (24,861 | ) | |||||
Other comprehensive income (loss), net of tax: | |||||||||||
Foreign currency translation adjustment | (853 | ) | (1,158 | ) | (1,431 | ) | |||||
Unrealized holding gain (loss) on available-for-sale securities | 10 | (5 | ) | (15 | ) | ||||||
Total other comprehensive income (loss) | (843 | ) | (1,163 | ) | (1,446 | ) | |||||
Comprehensive loss | (4,946 | ) | (14,396 | ) | (26,307 | ) | |||||
Less: comprehensive loss attributable to non controlling interest | — | — | 535 | ||||||||
Comprehensive loss attributable to Echelon Corporation Stockholders | $ | (4,946 | ) | $ | (14,396 | ) | $ | (25,772 | ) |
Echelon Corporation Shareholders | |||||||||||||||||||||||||||||||
Common Stock | Treasury Stock | Additional Paid-in- capital | Accu-mulated Other Compre-hensive Income (Loss) | Accumu-lated Deficit | Non Control-ling Interest | Total | |||||||||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||
BALANCE AT DECEMBER 31, 2013 | 4,657 | $ | 47 | (322 | ) | $ | (28,130 | ) | $ | 355,099 | $ | 1,015 | $ | (260,843 | ) | $ | 789 | $ | 67,977 | ||||||||||||
Exercise of stock options | — | — | — | — | 17 | — | — | — | 17 | ||||||||||||||||||||||
Release of restricted stock units | 46 | — | — | — | — | — | — | — | — | ||||||||||||||||||||||
Stock received for payment of employee taxes on vesting of restricted stock units and upon exercise of stock options | (17 | ) | — | — | — | (422 | ) | — | — | — | (422 | ) | |||||||||||||||||||
Stock-based compensation | — | — | — | — | 1,197 | — | — | — | 1,197 | ||||||||||||||||||||||
Stock issued for Lumewave acquisition | 34 | — | — | — | 715 | — | — | — | 715 | ||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | — | (1,431 | ) | — | — | (1,431 | ) | ||||||||||||||||||||
Unrealized holding loss on available-for-sale securities | — | — | — | — | — | (15 | ) | — | — | (15 | ) | ||||||||||||||||||||
Net loss | — | — | — | — | — | — | (24,326 | ) | (535 | ) | (24,861 | ) | |||||||||||||||||||
BALANCE AT DECEMBER 31, 2014 | 4,720 | $ | 47 | (322 | ) | $ | (28,130 | ) | $ | 356,606 | $ | (431 | ) | $ | (285,169 | ) | $ | 254 | $ | 43,177 | |||||||||||
Release of restricted stock units | 34 | — | — | — | — | — | — | — | — | ||||||||||||||||||||||
Stock received for payment of employee taxes on vesting of restricted stock units and upon exercise of stock options | (16 | ) | — | — | — | (153 | ) | — | — | — | (153 | ) | |||||||||||||||||||
Stock-based compensation | — | — | — | — | 293 | — | — | — | 293 | ||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | — | (1,158 | ) | — | — | (1,158 | ) | ||||||||||||||||||||
Unrealized holding gain on available-for-sale securities | — | — | — | — | — | (5 | ) | — | — | (5 | ) | ||||||||||||||||||||
Net loss | — | — | — | — | — | — | (13,233 | ) | — | (13,233 | ) | ||||||||||||||||||||
BALANCE AT DECEMBER 31, 2015 | 4,738 | $ | 47 | (322 | ) | $ | (28,130 | ) | $ | 356,746 | $ | (1,594 | ) | $ | (298,402 | ) | $ | 254 | $ | 28,921 | |||||||||||
Cumulative effect adjustment from adoption of accounting standard | — | — | — | — | 675 | — | (675 | ) | — | — | |||||||||||||||||||||
Release of restricted stock units | 24 | 1 | — | — | (1 | ) | — | — | — | — | |||||||||||||||||||||
Stock received for payment of employee taxes on vesting of restricted stock units and upon exercise of stock options | (8 | ) | — | — | — | (43 | ) | — | — | — | (43 | ) | |||||||||||||||||||
Stock-based compensation | — | — | — | — | 746 | — | — | — | 746 | ||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | — | (853 | ) | — | — | (853 | ) | ||||||||||||||||||||
Unrealized holding gain on available-for-sale securities | — | — | — | — | — | 10 | — | — | 10 | ||||||||||||||||||||||
Net loss | — | — | — | — | — | — | (4,103 | ) | — | (4,103 | ) | ||||||||||||||||||||
BALANCE AT DECEMBER 31, 2016 | 4,754 | $ | 48 | (322 | ) | $ | (28,130 | ) | $ | 358,123 | $ | (2,437 | ) | $ | (303,180 | ) | $ | 254 | $ | 24,678 |
Year ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
CASH FLOWS PROVIDED BY (USED IN) OPERATING ACTIVITIES: | |||||||||||
Net loss including non-controlling interest | $ | (4,103 | ) | $ | (13,233 | ) | $ | (24,861 | ) | ||
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||||||||||
Depreciation and amortization | 489 | 1,767 | 3,350 | ||||||||
Lease termination charges | — | 3,337 | — | ||||||||
Goodwill impairment charges | — | 5,698 | 3,388 | ||||||||
Increase (decrease) in allowance for doubtful accounts | 6 | (19 | ) | (57 | ) | ||||||
Loss on disposal of Grid business | — | — | 254 | ||||||||
Loss on disposal and write-down of fixed assets | 1 | 81 | 5,217 | ||||||||
Increase in accrued investment income | (43 | ) | (31 | ) | (32 | ) | |||||
Stock-based compensation | 746 | 293 | 1,197 | ||||||||
Adjustment to contingent consideration | (318 | ) | (650 | ) | 43 | ||||||
Change in operating assets and liabilities: | |||||||||||
Accounts receivable | 1,009 | (53 | ) | 2,536 | |||||||
Inventories | 323 | 409 | 1,757 | ||||||||
Deferred cost of goods sold | (20 | ) | 277 | 209 | |||||||
Other current assets | 200 | 356 | 1,007 | ||||||||
Accounts payable | (558 | ) | (1,309 | ) | (81 | ) | |||||
Accrued liabilities | (1,176 | ) | (1,097 | ) | (4,034 | ) | |||||
Deferred revenues | 340 | (707 | ) | (846 | ) | ||||||
Deferred rent | 81 | (45 | ) | (35 | ) | ||||||
Net cash used in operating activities | (3,023 | ) | (4,926 | ) | (10,988 | ) | |||||
CASH FLOWS PROVIDED BY (USED IN) INVESTING ACTIVITIES: | |||||||||||
Purchases of available-for-sale short-term investments | (23,955 | ) | (16,974 | ) | (28,975 | ) | |||||
Proceeds from maturities and sales of available‑for‑sale short‑term investments | 29,155 | 28,852 | 48,000 | ||||||||
Change in other long-term assets | 160 | (795 | ) | 29 | |||||||
Cash paid for acquisition, net of cash acquired | — | — | (924 | ) | |||||||
Proceeds from divestiture of Grid business, net of transaction costs | — | — | 2,144 | ||||||||
Capital expenditures | (117 | ) | (306 | ) | (746 | ) | |||||
Net cash provided by investing activities | 5,243 | 10,777 | 19,528 | ||||||||
CASH FLOWS PROVIDED BY (USED IN) FINANCING ACTIVITIES: | |||||||||||
Principal payments of lease financing obligations | — | (11,278 | ) | (2,064 | ) | ||||||
Proceeds from exercise of stock options | — | — | 17 | ||||||||
Restricted investments used as collateral for line of credit | — | — | (6,250 | ) | |||||||
Repurchase of common stock from employees for payment of taxes on vesting of restricted stock units and upon exercise of stock options | (43 | ) | (153 | ) | (422 | ) | |||||
Net cash used in financing activities | (43 | ) | (11,431 | ) | (8,719 | ) | |||||
EFFECT OF EXCHANGE RATE CHANGES ON CASH | (65 | ) | (69 | ) | (1,129 | ) | |||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 2,112 | (5,649 | ) | (1,308 | ) | ||||||
CASH AND CASH EQUIVALENTS: | |||||||||||
Beginning of year | 7,691 | 13,340 | 14,648 | ||||||||
End of year | $ | 9,803 | $ | 7,691 | $ | 13,340 | |||||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | |||||||||||
Cash paid for interest on lease financing obligations | $ | — | $ | 387 | $ | 1,003 | |||||
Cash paid for income taxes | $ | 169 | $ | 249 | $ | 294 | |||||
Fair value of stock issued in connection with acquisition | $ | — | $ | — | $ | 715 | |||||
Non-cash transfer from financing to investing for restricted investments used as collateral for credit cards | $ | — | $ | — | $ | 1,399 | |||||
Non-cash transfer of restricted investments to available-for-sale short-term investments | $ | 151 | $ | — | $ | 4,851 |
• | The Company's sales are currently concentrated, as approximately 28.7% of revenues for the year ended December 31, 2016, were derived from one customer, Avnet Europe Comm VA ("Avnet"), the Company's primary distributor of its IIoT products in Europe and Japan. Customers in any of the Company’s target market sectors may experience unexpected reductions in demand for their products and consequently reduce their purchases from the Company, resulting in either the loss of a significant customer or a notable decrease in the level of sales to a significant customer. In addition, if any of these customers are unable to obtain the necessary capital to operate their business, they may be unable to satisfy their payment obligations to the Company. |
• | The Company utilizes third-party contract electronic manufacturers to manufacture, assemble, and test its products. If any of these third-parties were unable to obtain the necessary capital to operate their business, they may be unable to provide the Company with timely services or to make timely deliveries of products. |
• | From time to time, the Company has experienced shortages or interruptions in supply for certain products or components used in the manufacture of the Company’s products that have been or will be discontinued. In order to ensure an adequate supply of these items, the Company has occasionally purchased quantities of these items that are in excess of the Company’s then current estimate of short-term requirements. If the long-term requirements do not materialize as originally expected, or if the Company develops alternative solutions that no longer employ these items and the Company is not able to dispose of these excess products or components, the Company could be subject to increased levels of excess and obsolete inventories. |
• | Recently, in our effort to manage our costs and inventory risks, we decreased our inventory levels of certain products. If there is an unexpected increase in demand for these items, we might not be able to supply our customers with products in a timely manner. |
• | Level 1 - Quoted prices for identical instruments in active markets; |
• | Level 2 - Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets; and |
• | Level 3 - Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. |
December 31, 2016 | December 31, 2015 | ||||||
Purchased materials | $ | 148 | $ | 164 | |||
Finished goods | 2,422 | 2,729 | |||||
$ | 2,570 | $ | 2,893 |
December 31, 2016 | December 31, 2015 | ||||||
Accrued payroll and related costs | $ | 1,299 | $ | 2,119 | |||
Warranty reserve | 118 | 120 | |||||
Contingent consideration | — | 318 | |||||
Restructuring charges | 273 | — | |||||
Other accrued liabilities | 484 | 328 | |||||
$ | 2,174 | $ | 2,885 |
December 31, | |||
2016 | 2015 | ||
Enel Distribuzione Spa | —% | 18.2% | |
Avnet Europe Comm VA | 26.9% | 12.9% | |
Total | 26.9% | 31.1% |
Year ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Net loss (Numerator): | |||||||||||
Net loss from continuing operations attributable to Echelon Corporation Stockholders | $ | (4,103 | ) | $ | (13,233 | ) | $ | (15,611 | ) | ||
Net loss from discontinued operations attributable to Echelon Corporation Stockholders | — | — | (8,715 | ) | |||||||
Net loss attributable to Echelon Corporation Stockholders | $ | (4,103 | ) | $ | (13,233 | ) | $ | (24,326 | ) | ||
Shares (Denominator): | |||||||||||
Weighted average common shares outstanding | 4,425 | 4,409 | 4,350 | ||||||||
Shares used in basic computation | 4,425 | 4,409 | 4,350 | ||||||||
Common shares issuable upon exercise of stock options (treasury stock method) | — | — | — | ||||||||
Shares used in diluted computation | 4,425 | 4,409 | 4,350 | ||||||||
Net loss per share: | |||||||||||
Basic and diluted net loss per share from continuing operations attributable to Echelon Corporation Stockholders | $ | (0.93 | ) | $ | (3.00 | ) | $ | (3.59 | ) | ||
Basic and diluted net loss per share from discontinued operations attributable to Echelon Corporation Stockholders | $ | 0.00 | $ | 0.00 | $ | (2.00 | ) | ||||
Basic and diluted net loss per share attributable to Echelon Corporation Stockholders | $ | (0.93 | ) | $ | (3.00 | ) | $ | (5.59 | ) |
Fair Value Measurements at Reporting Date Using | |||||||||||||||
Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | |||||||||||||
Total | (Level 1) | (Level 2) | (Level 3) | ||||||||||||
Assets: | |||||||||||||||
Money market funds (1) | $ | 4,513 | $ | 4,513 | $ | — | $ | — | |||||||
U.S. government securities(2) | 13,233 | — | 13,233 | — | |||||||||||
Total | $ | 17,746 | $ | 4,513 | $ | 13,233 | $ | — |
Fair Value Measurements at Reporting Date Using | |||||||||||||||
Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | |||||||||||||
Total | (Level 1) | (Level 2) | (Level 3) | ||||||||||||
Assets: | |||||||||||||||
Money market funds (1) | $ | 2,305 | $ | 2,305 | $ | — | $ | — | |||||||
U.S. government securities(2) | 18,379 | — | 18,379 | — | |||||||||||
Total | $ | 20,684 | $ | 2,305 | $ | 18,379 | $ | — | |||||||
Liabilities: | |||||||||||||||
Contingent consideration | $ | 318 | $ | — | $ | — | $ | 318 | |||||||
Total | $ | 318 | $ | — | $ | — | $ | 318 |
(2) | Represents the portfolio of available-for-sale securities and is included in restricted investments and short-term investments in the Company’s consolidated balance sheets |
Contingent Consideration | ||||
BALANCE AT DECEMBER 31, 2014 | $ | 968 | ||
Adjustment to contingent consideration | (650 | ) | ||
BALANCE AT DECEMBER 31, 2015 | $ | 318 | ||
Adjustment to contingent consideration | (318 | ) | ||
BALANCE AT DECEMBER 31, 2016 | $ | — |
Amortized Cost | Aggregate Fair Value | Unrealized Holding Gains | Unrealized Holding Losses | ||||||||||||
U.S. government securities | $ | 11,984 | $ | 11,983 | $ | — | $ | 1 |
Amortized Cost | Aggregate Fair Value | Unrealized Holding Gains | Unrealized Holding Losses | ||||||||||||
U.S. government securities | $ | 16,989 | $ | 16,978 | $ | — | $ | 11 |
December 31, 2016 | December 31, 2015 | ||||||
Computer and other equipment | $ | 3,370 | $ | 3,253 | |||
Software | 3,130 | 3,130 | |||||
Furniture and fixtures | 110 | 106 | |||||
Leasehold improvements | 194 | 191 | |||||
6,804 | 6,680 | ||||||
Less: Accumulated depreciation and amortization | (6,359 | ) | (6,085 | ) | |||
Property and equipment, net | $ | 445 | $ | 595 |
• | Computer equipment and related software, other equipment, and furniture and fixtures are depreciated over their estimated useful lives of two to five years; and |
• | Certain telecommunications equipment is depreciated over its estimated useful life of 10 years. |
Amount | |||
Cash and cash equivalents | $ | 630 | |
Accounts receivable | 107 | ||
Inventory | 31 | ||
Other current assets | 259 | ||
Property and equipment | 23 | ||
Identifiable intangible assets | 1,500 | ||
Goodwill | 1,257 | ||
Accounts payable | (352 | ) | |
Accrued liabilities | (255 | ) | |
$ | 3,200 |
Year ended December 31, | |||
2014 | |||
Revenues (1) | $ | 18,392 | |
Cost of revenues | 11,774 | ||
Operating expenses | 15,614 | ||
Loss from discontinued operations before income taxes | (8,996 | ) | |
Income taxes | — | ||
Loss on sale of Grid business | (254 | ) | |
Net loss from discontinued operations, net of income taxes | (9,250 | ) | |
Net loss from discontinued operations attributable to non-controlling interest, net of income taxes | 535 | ||
Net loss from discontinued operations attributable to Echelon Corporation Stockholders, net of income taxes | $ | (8,715 | ) |
Foreign currency translation adjustment (Amount in thousands) | Unrealized gain (loss) on available-for-sale securities (Amount in thousands) | Accumulated Other Comprehensive Loss (Amount in thousands) | |||||||||
Beginning balance at December 31, 2014 | $ | (424 | ) | $ | (7 | ) | $ | (431 | ) | ||
Change during the year | (1,158 | ) | (5 | ) | (1,163 | ) | |||||
Ending balance at December 31, 2015 | $ | (1,582 | ) | $ | (12 | ) | $ | (1,594 | ) | ||
Change during the year | (853 | ) | 10 | (843 | ) | ||||||
Ending balance at December 31, 2016 | $ | (2,435 | ) | $ | (2 | ) | $ | (2,437 | ) |
Options Outstanding | ||||||||||
Shares Available for Grant | Number Outstanding | Weighted-Average Exercise Price Per Share | ||||||||
BALANCE AT DECEMBER 31, 2013 | 457,585 | 410,484 | $ | 41.30 | ||||||
Options granted | (46,800 | ) | 46,800 | 24.60 | ||||||
RSUs granted | (219,153 | ) | — | — | ||||||
Options and stock appreciation rights cancelled | 197,066 | (197,066 | ) | 47.00 | ||||||
RSUs cancelled | 126,519 | — | — | |||||||
Options exercised | — | (539 | ) | 31.70 | ||||||
BALANCE AT DECEMBER 31, 2014 | 515,217 | 259,679 | $ | 34.00 | ||||||
Options granted | (112,600 | ) | 112,600 | 9.14 | ||||||
RSUs granted | (83,555 | ) | — | — | ||||||
Options and stock appreciation rights cancelled | 86,743 | (86,743 | ) | 32.38 | ||||||
RSUs cancelled | 111,700 | — | — | |||||||
BALANCE AT DECEMBER 31, 2015 | 517,505 | 285,536 | $ | 24.72 | ||||||
New plan shares approved | 750,000 | — | — | |||||||
Unissued shares eliminated from plan | (13,346 | ) | — | — | ||||||
Options granted | (275,250 | ) | 275,250 | 5.07 | ||||||
RSUs granted | (460,209 | ) | — | — | ||||||
Options and stock appreciation rights cancelled | 54,914 | (54,914 | ) | 25.50 | ||||||
RSUs cancelled | 29,211 | — | — | |||||||
BALANCE AT DECEMBER 31, 2016 | 602,825 | 505,872 | $ | 13.94 |
Number of Shares Nonvested and Outstanding | Weighted-Average Grant Date Fair-Value | ||||||
BALANCE AT DECEMBER 31, 2013 | 136,711 | $ | 52.20 | ||||
RSUs and RSAs granted | 128,945 | 25.03 | |||||
RSUs vested and released | (50,022 | ) | 57.84 | ||||
RSUs cancelled | (86,312 | ) | 36.88 | ||||
BALANCE AT DECEMBER 31, 2014 | 129,322 | $ | 33.15 | ||||
RSUs granted | 49,150 | 9.03 | |||||
RSUs vested and released | (40,414 | ) | 35.32 | ||||
RSUs cancelled | (73,344 | ) | 32.29 | ||||
BALANCE AT DECEMBER 31, 2015 | 64,714 | $ | 14.45 | ||||
RSUs granted | 307,770 | 5.21 | |||||
RSUs vested and released | (23,993 | ) | 14.31 | ||||
RSUs cancelled | (17,328 | ) | 17.06 | ||||
BALANCE AT DECEMBER 31, 2016 | 331,163 | $ | 5.74 |
Exercise Price Range | Number Outstanding | Weighted Average Remaining Contractual Life (in years) | Weighted Average Exercise Price per Share | Aggregate Intrinsic Value | |||||||||
$4.51-$4.73 | 80,000 | 9.37 | $ | 4.68 | $ | 3,800 | |||||||
5.22 | 187,000 | 9.74 | 5.22 | — | |||||||||
5.45-9.11 | 87,750 | 8.50 | 8.70 | — | |||||||||
9.15-23.70 | 84,490 | 7.06 | 21.26 | — | |||||||||
24.20-35.20 | 41,632 | 5.03 | 30.72 | — | |||||||||
$74.60 | 25,000 | 0.63 | 74.60 | — | |||||||||
Outstanding | 505,872 | 8.18 | $ | 13.94 | $ | 3,800 | |||||||
Vested and expected to vest | 483,234 | 8.18 | $ | 14.29 | $ | 3,800 | |||||||
Exercisable | 200,830 | 6.45 | $ | 24.70 | $ | 3,800 |
Year ended December 31, | |||||
2016 | 2015 | 2014 | |||
Expected dividend yield | —% | —% | —% | ||
Risk-free interest rate | 1.2% | 1.7% | 2.0% | ||
Expected volatility | 58.1% | 56.3% | 66.3% | ||
Expected term (in years) | 5.12 | 5.08 | 5.98 |
Grant Date | # of Awards Granted and Outstanding | Fair Value on Grant Date | Cumulative Expense Recognized | Unearned Compensation Expense | Latest Date Performance Condition Could be Met | |||||||||||
August 2010 | 8,000 | $ | 596 | $ | — | $ | 596 | April 2015 | ||||||||
November 2011 | 5,000 | 277 | — | 277 | April 2015 | |||||||||||
June 2014 | 57,080 | 1,404 | 324 | 1,080 | December 2014 | |||||||||||
Total | 70,080 | $ | 2,277 | $ | 324 | $ | 1,953 |
Year ended 31 December, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Cost of revenues | $ | 48 | $ | (74 | ) | $ | 292 | ||||
Product development | 173 | 304 | (73 | ) | |||||||
Sales and marketing | 57 | (92 | ) | 206 | |||||||
General and administrative | 468 | 155 | 1,114 | ||||||||
Discontinued operations | — | — | (342 | ) | |||||||
Total stock based compensation expense related to stock options and share awards | 746 | 293 | 1,197 | ||||||||
Tax benefit | — | — | — | ||||||||
Stock-based compensation expense related to stock options and share awards, net of tax | $ | 746 | $ | 293 | $ | 1,197 |
Year ended December 31, | |||||
2016 | 2015 | 2014 | |||
Avnet | 28.7% | 24.5% | 26.2% | ||
Enel | 4.1% | 12.7% | 7.7% | ||
Total | 32.8% | 37.2% | 33.9% |
Amount | ||||
Balance as of December 31, 2013 | $ | 8,390 | ||
Unrealized foreign currency translation loss | (323 | ) | ||
Goodwill impairment - Grid division | (3,388 | ) | ||
Goodwill associated with Lumewave acquisition | 1,257 | |||
Balance as of December 31, 2014 | 5,936 | |||
Unrealized foreign currency translation loss | (238 | ) | ||
Goodwill impairment | (5,698 | ) | ||
Balance as of December 31, 2015 | $ | — |
Amount | ||||
Balance as of December 31, 2014 | $ | 1,413 | ||
Amortization | (230 | ) | ||
Balance as of December 31, 2015 | 1,183 | |||
Amortization | (230 | ) | ||
Balance as of December 31, 2016 | $ | 953 |
Gross Carrying Value | Accumulated Amortization | Net Carrying Value | Weighted-Average Remaining Useful Life (in years) | |||||||
Developed technology | $ | 800 | $ | 292 | $ | 508 | 4.13 | |||
Customer relationships | 500 | 182 | 318 | 4.13 | ||||||
Trade names | 200 | 73 | 127 | 4.13 | ||||||
Total | $ | 1,500 | $ | 547 | $ | 953 | 4.13 |
Year ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Cost of revenues | $ | 123 | $ | 123 | $ | 46 | |||||
Operating expenses | 107 | 107 | 41 | ||||||||
Total | $ | 230 | $ | 230 | $ | 87 |
Estimated Future Amoritization | ||||
2017 | $ | 229 | ||
2018 | 229 | |||
2019 | 229 | |||
2020 | 229 | |||
2021 | 37 | |||
Total | $ | 953 |
2017 | $ | 974 | |
2018 | 841 | ||
2019 | 467 | ||
Total payments | $ | 2,282 |
Year ended 31 December | |||||||||||
2016 | 2015 | 2014 | |||||||||
Rent expense | $ | 994 | $ | 1,260 | $ | 1,483 | |||||
Sublease rentals | — | (685 | ) | (202 | ) | ||||||
Rent expense included in discontinued operations | — | — | (160 | ) | |||||||
Rent expense, net | $ | 994 | $ | 575 | $ | 1,121 |
Year ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Domestic | $ | (4,632 | ) | $ | (11,932 | ) | $ | (15,592 | ) | ||
Foreign | 711 | (1,251 | ) | 192 | |||||||
$ | (3,921 | ) | $ | (13,183 | ) | $ | (15,400 | ) |
Year ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Federal: | |||||||||||
Current | $ | — | $ | — | $ | — | |||||
Deferred | — | — | — | ||||||||
Total federal provision | — | — | — | ||||||||
State: | |||||||||||
Current | 18 | 20 | 16 | ||||||||
Deferred | — | — | — | ||||||||
Total state provision | 18 | 20 | 16 | ||||||||
Foreign: | |||||||||||
Current | 164 | 30 | 195 | ||||||||
Deferred | — | — | — | ||||||||
Total foreign provision | 164 | 30 | 195 | ||||||||
Total income tax expense | $ | 182 | $ | 50 | $ | 211 |
Year ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Federal tax at statutory rate of 35% | $ | (1,372 | ) | $ | (4,615 | ) | $ | (5,390 | ) | ||
State taxes, net of federal benefit | (171 | ) | (634 | ) | (577 | ) | |||||
U.S.-Foreign rate differential | (96 | ) | 480 | 100 | |||||||
Change in Valuation Allowance | 939 | 3,072 | 4,115 | ||||||||
Research and Development credits | 233 | 175 | 357 | ||||||||
Permanent items | 657 | 1,566 | 1,560 | ||||||||
Others | (8 | ) | 6 | 46 | |||||||
Total income tax expense | $ | 182 | $ | 50 | $ | 211 |
Year ended December 31, | ||||||||
2016 | 2015 | |||||||
Deferred tax assets: | ||||||||
Net operating loss carry forwards | $ | 100,378 | $ | 83,522 | ||||
Tax credit carry forwards | 19,248 | 18,940 | ||||||
Fixed and intangible assets | 597 | 868 | ||||||
Capitalized research and development costs | 58 | 58 | ||||||
Stock based compensation and other reserves and allowances | 3,445 | 3,828 | ||||||
Gross deferred income tax assets | 123,726 | 107,216 | ||||||
Valuation allowance | (123,726 | ) | (107,216 | ) | ||||
Net deferred income tax assets | $ | — | $ | — |
Year ended December 31, | |||||||
2016 | 2015 | ||||||
Balance as of the beginning of the year | $ | 9,066 | $ | 1,359 | |||
Tax positions related to current year: | |||||||
Additions | 152 | 147 | |||||
Reductions | (14 | ) | (18 | ) | |||
Tax positions related to prior years: | |||||||
Additions | 80 | 7,991 | |||||
Reductions | (4 | ) | (28 | ) | |||
Settlements | — | — | |||||
Lapses in statute of limitations | (64 | ) | (385 | ) | |||
Balance as of the end of the year | $ | 9,216 | $ | 9,066 |
December 31, 2015 | Costs Incurred | Cash Payments | December 31, 2016 | ||||||||||||
Termination benefits | $ | — | $ | 286 | $ | (13 | ) | $ | 273 |
December 31, 2014 | Costs Incurred | Cash Payments | December 31, 2015 | ||||||||||||
Termination benefits | $ | 701 | $ | — | $ | (701 | ) | $ | — |
December 31, 2013 | Costs Incurred | Cash Payments | December 31, 2014 | ||||||||||||
Termination benefits | $ | — | $ | 1,841 | $ | (1,140 | ) | $ | 701 |
Balance at Beginning of Period | Charged/ (Credited) to Revenues and Expenses | Write-Off of Previously Provided Accounts | Balance at End of Period | ||||||||||||
Year Ended December 31, 2016: | |||||||||||||||
Allowance for Doubtful Accounts | $ | 31 | $ | 5 | $ | — | $ | 36 | |||||||
Allowance for Customer Returns and Sales Credits | $ | 490 | $ | 3,713 | $ | 3,675 | $ | 528 | |||||||
Year Ended December 31, 2015: | |||||||||||||||
Allowance for Doubtful Accounts | $ | 57 | $ | (19 | ) | $ | 7 | $ | 31 | ||||||
Allowance for Customer Returns and Sales Credits | $ | 401 | $ | 3,442 | $ | 3,353 | $ | 490 | |||||||
Year Ended December 31, 2014: | |||||||||||||||
Allowance for Doubtful Accounts | $ | 353 | $ | (46 | ) | $ | 250 | $ | 57 | ||||||
Allowance for Customer Returns and Sales Credits | $ | 530 | $ | 3,729 | $ | 3,858 | $ | 401 |
Year ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Americas | |||||||||||
United States | $ | 10,309 | $ | 11,138 | $ | 10,680 | |||||
Other Americas | 1,093 | 1,242 | 2,074 | ||||||||
Total Americas | 11,402 | 12,380 | 12,754 | ||||||||
EMEA | |||||||||||
Germany | 8,749 | 9,987 | 10,733 | ||||||||
Other EMEA | 5,366 | 7,812 | 3,761 | ||||||||
Total EMEA | 14,115 | 17,799 | 14,494 | ||||||||
APJ | |||||||||||
China | 2,209 | 2,436 | 3,225 | ||||||||
Other APJ | 4,659 | 6,189 | 8,257 | ||||||||
Total APJ | 6,868 | 8,625 | 11,482 | ||||||||
Total | $ | 32,385 | $ | 38,804 | $ | 38,730 |
Three months ended | ||||||||||||||||||||||||||||||||
December 2016 | September 2016 | June 2016 | March 2016 | December 2015 | September 2015 | June 2015 | March 2015 | |||||||||||||||||||||||||
Consolidated Statement of Operations Data: | ||||||||||||||||||||||||||||||||
Revenues | $ | 7,498 | $ | 8,179 | $ | 8,061 | $ | 8,647 | $ | 9,590 | $ | 9,983 | $ | 9,363 | $ | 9,868 | ||||||||||||||||
Cost of revenues | 3,375 | 3,707 | 3,415 | 3,805 | 4,093 | 4,370 | 3,821 | 4,244 | ||||||||||||||||||||||||
Gross profit | 4,123 | 4,472 | 4,646 | 4,842 | 5,497 | 5,613 | 5,542 | 5,624 | ||||||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||||||||
Product development | 2,119 | 1,963 | 1,985 | 2,193 | 2,341 | 2,454 | 2,340 | 2,612 | ||||||||||||||||||||||||
Sales and marketing | 1,638 | 1,570 | 1,679 | 1,302 | 1,602 | 1,848 | 2,194 | 2,188 | ||||||||||||||||||||||||
General and administrative | 1,782 | 2,087 | 2,197 | 2,011 | 1,694 | 2,547 | 2,187 | 2,821 | ||||||||||||||||||||||||
Goodwill impairment | — | — | — | — | 5,698 | — | — | — | ||||||||||||||||||||||||
Lease termination charges | — | — | — | — | — | — | 3,337 | — | ||||||||||||||||||||||||
Restructuring charges | 286 | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Total operating expenses | 5,825 | 5,620 | 5,861 | 5,506 | 11,335 | 6,849 | 10,058 | 7,621 | ||||||||||||||||||||||||
Loss from operations | (1,702 | ) | (1,148 | ) | (1,215 | ) | (664 | ) | (5,838 | ) | (1,236 | ) | (4,516 | ) | (1,997 | ) | ||||||||||||||||
Interest and other income (expense), net | 567 | (57 | ) | 503 | (205 | ) | 227 | 184 | (458 | ) | 838 | |||||||||||||||||||||
Interest expense on lease financing obligations | — | — | — | — | (2 | ) | (5 | ) | (128 | ) | (252 | ) | ||||||||||||||||||||
Loss before provision for income taxes | (1,135 | ) | (1,205 | ) | (712 | ) | (869 | ) | (5,613 | ) | (1,057 | ) | (5,102 | ) | (1,411 | ) | ||||||||||||||||
Income tax expense (benefit) | 102 | 23 | 51 | 6 | (14 | ) | (10 | ) | 61 | 13 | ||||||||||||||||||||||
Net loss | $ | (1,237 | ) | $ | (1,228 | ) | $ | (763 | ) | $ | (875 | ) | $ | (5,599 | ) | $ | (1,047 | ) | $ | (5,163 | ) | $ | (1,424 | ) | ||||||||
Basic and diluted net loss per share | $ | (0.28 | ) | $ | (0.28 | ) | $ | (0.17 | ) | $ | (0.20 | ) | $ | (1.27 | ) | $ | (0.24 | ) | $ | (1.17 | ) | $ | (0.32 | ) | ||||||||
Shares used in net loss per share calculation: | ||||||||||||||||||||||||||||||||
Basic | 4,432 | 4,431 | 4,420 | 4,417 | 4,416 | 4,413 | 4,406 | 4,395 | ||||||||||||||||||||||||
Diluted | 4,432 | 4,431 | 4,420 | 4,417 | 4,416 | 4,413 | 4,406 | 4,395 |
ECHELON CORPORATION | ||||
Date: | March 1, 2017 | By: | /s/ C. Michael Marszewski | |
C. Michael Marszewski Vice President and Chief Financial Officer (Duly Authorized Officer and Principal Financial Officer) |
Signatures | Title | Date | ||
/s/ Ronald Sege | Chairman of the Board, President and Chief Executive Officer (Principal Executive Officer) | March 1, 2017 | ||
Ronald Sege | ||||
/s/ C. Michael Marszewski | Vice President and Chief Financial Officer (Principal Financial and Principal Accounting Officer) | March 1, 2017 | ||
C. Michael Marszewski | ||||
s/ Armas Clifford Markkula, Jr | Vice Chairman | February 20, 2017 | ||
Armas Clifford Markkula, Jr. | ||||
/s/ Robert J. Finocchio, Jr. | Director | February 20, 2017 | ||
Robert J. Finocchio, Jr | ||||
/s/ Robert R. Maxfield | Director | February 21, 2017 | ||
Robert R. Maxfield | ||||
/s/ Betsy Rafael | Director | February 27, 2017 | ||
Betsy Rafael | ||||
Exhibit No. | Description of Document |
3.2(1) | Amended and Restated Certificate of Incorporation of Registrant, as amended December 7, 2015. |
3.3(2) | Amended and Restated Bylaws of Registrant. |
4.1(3) | Form of Registrant's Common Stock Certificate. |
4.2(17) | Tax Benefit Preservation Plan, dated as of April 22, 2016, by and between Echelon Corporation and Computershare Inc., as rights agent |
10.1(4) | Form of Indemnification Agreement entered into by Registrant with each of its directors and executive officers. |
10.2(10) | 1997 Stock Plan (as amended and restated March 26, 2004) |
10.2(16)+ | 1997 Stock Plan (as amended and restated April 3, 2013) |
10.2(a)(5)+ | Form of 1997 Stock Plan Stock Option Agreement with early exercise feature |
10.2(b)(5)+ | Form of 1997 Stock Plan Nonqualified Stock Option Agreement with early exercise feature |
10.2(c)(6)+ | Form of 1997 Stock Plan Nonqualified Stock Option Agreement |
10.2(d)(5)+ | Form of 1997 Stock Plan Performance Share Agreement (re: non-standard vesting schedule) |
10.2(e)(5)+ | Form of 1997 Stock Plan Performance Share Agreement for non-US employees |
10.2(f)(5)+ | Form of 1997 Stock Plan Performance Share Agreement with performance based vesting criteria for non-US employees |
10.2(g)(5)+ | Form of 1997 Stock Plan Stock Appreciation Right Agreement for non-US employees |
10.2(h)(5)+ | Form of 1997 Stock Plan Performance Share Agreement with performance based vesting criteria |
10.2(i)(5)+ | Form of 1997 Stock Plan Performance Share Agreement |
10.2(j)(13)+ | Form of 1997 Stock Plan Stock Appreciation Right Agreement |
10.2(k)(7)+ | Form of 1997 Stock Plan Performance Share Agreement for US-based corporate officers |
10.2(l)(11)+ | Form of 1997 Stock Plan Performance Share Agreement for non US-based corporate officers |
10.2(m)(7)+ | Form of 1997 Stock Plan Stock Appreciation Right Agreement for US-based corporate officers |
10.2(n)(7)+ | Form of 1997 Stock Plan Stock Appreciation Right Agreement for non US-based corporate officers |
10.2(o)(12)+ | Form of 1997 Stock Plan Restricted Stock Award Agreement |
10.2(p)(15)+ | Form of 1997 Stock Plan Stock Option Agreement for U.S. Optionees (2012) |
10.2(q)(15)+ | Form of 1997 Stock Plan Stock Option Agreement for U.S. Corporate Officers (2012) |
10.2(r)(15)+ | Form of 1997 Stock Plan Stock Option Agreement for Optionees Outside the U.S. (2012) |
10.2(s)(15)+ | Form of 1997 Stock Plan Stock Option Agreement for Corporate Officers Outside the U.S. (2012) |
10.2(t)(15)+ | Form of 1997 Stock Plan Stock Option Agreement Appendix A for Optionees Outside the U.S. (2012) |
10.2(u)(15)+ | Form of 1997 Stock Plan Performance Share Agreement for Participants Outside the U.S. (2012) |
10.2(v)(15)+ | Form of 1997 Stock Plan Performance Share Agreement for Corporate Officers Outside the U.S. (2012) |
10.2(w)(15)+ | Form of 1997 Stock Plan Performance Share Agreement Appendix A for Participants Outside the U.S. (2012) |
10.2 (15)+ | 1997 Stock Plan (as amended and restated August 18, 2010) |
10.3 (18) | 2016 Equity Incentive Plan and form agreements |
10.4 (19) | 2016 Inducement Equity Incentive Plan and form agreements |
10.5 (4) | Form of International Distributor Agreement. |
10.6 (4) | Form of OEM License Agreement. |
10.7 (4) | Form of Software License Agreement. |
10.8 (4) | International Distributor Agreement between the Company and EBV Elektronik GmbH as of December 1, 1997. |
10.9 (9) | Building 1 Lease Agreement dated December 30, 1999 |
10.10 (9) | First Amendment to Building 1 Lease Agreement dated May 10, 2000 |
10.11 (9) | Echelon Corporation Common Stock Purchase Agreement with ENEL S.p.A. dated June 30, 2000 |
10.12 (9) | Second Amendment to Building 1 Lease Agreement dated September 22, 2000 |
10.13 (9) | Building 2 Lease Agreement dated November 15, 2001 |
10.14 (9) | Third Amendment to Building 1 Lease Agreement dated April 10, 2008 |
10.15 (9) | First Amendment to Building 2 Lease Agreement dated April 10, 2008 |
10.16 (14) | Form of Value Added Reseller Agreement |
10.17 | Assignment and Amendment dated April 29, 2011 between the Company and Avnet Europe Comm VA (assigning and modifying the International Distributor Agreement filed as Exhibit 10.8 to the Registration Statement on Form S-1 filed on June 1, 1998) |
10.18+ | Echelon Corporation Employment Agreement by and between Echelon Corporation and Ronald A. Sege dated August 18, 2010 |
10.19(16)+ | Form of Executive Change in Control and Severance Agreement (2013) |
10.20(20)+ | Echelon Corporation Employment letter with Alicia Jayne Moore dated June 27, 2013 |
21.1(3) | Subsidiaries of the Registrant. |
23.1 | Consent of Armanino LLP, Independent Registered Public Accounting Firm. |
23.2 | Consent of KPMG LLP, Independent Registered Public Accounting Firm |
24.1(4) | Power of Attorney (see signature page). |
31.1 | Certificate of Echelon Corporation Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
31.2 | Certificate of Echelon Corporation Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
32 | Certification by the Chief Executive Officer and the Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
101.INS* | XBRL Instance Document |
101.SCH* | XBRL Taxonomy Extension Schema |
101.CAL* | XBRL Taxonomy Extension Calculation Linkbase |
101.DEF* | XBRL Taxonomy Extension Definition Linkbase |
101.LAB* | XBRL Taxonomy Extension Label Linkbase |
101.PRE* | XBRL Taxonomy Extension Presentation Linkbase |
* | The financial information contained in these XBRL documents is unaudited and is furnished, not filed with the Securities and Exchange Commission. |
+ | Indicates management contract or compensatory plan or arrangement required to be filed as an exhibit pursuant to Item 14(c) of Form 10-K. |
(1) | Incorporated herein by reference to the Registrant's Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2000, filed on November 14, 2000, and Current Report on Form 8-K filed on December 10, 2015. |
(2) | Incorporated herein by reference to the Registrant's Current Report on Form 8-K dated August 16, 2007, filed on August 17, 2007. |
(3) | Incorporated herein by reference to the Registrant's Registration Statement on Form S-1/A filed on July 9, 1998. |
(4) | Incorporated herein by reference to the Registrant's Registration Statement on Form S-1 filed on June 1, 1998. |
(5) | Incorporated herein by reference to the Registrant's Annual Report on Form 10-K for the fiscal year ended December 31, 2006, filed on March 16, 2007. |
(6) | Incorporated herein by reference to the Registrant's Current Report Form 8-K dated April 12, 2007, filed on April 18, 2007. |
(7) | Incorporated herein by reference to the Registrant's Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2008, filed on August 11, 2008. |
(8) | Incorporated herein by reference to the Registrant's Registration Statement on Form S-8 filed on August 21, 2000. |
(9) | Incorporated herein by reference to the Registrant's Annual Report on Form 10-K/A for the fiscal year ended December 31, 2008, filed on March 11, 2010. |
(10) | Incorporated herein by reference to the Registrant's Registration Statement on Form S-8 filed on June 1, 2005. |
(11) | Incorporated herein by reference to the Registrant's Registration Statement on Form S-8 filed on August 6, 2010. |
(12) | Incorporated herein by reference to the Registrant's Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2010, filed on November 3, 2010 |
(13) | Incorporated herein by reference to the Registrant's Annual Report on Form 10-K for the fiscal year ended December 31, 2007, filed on March 17, 2008 |
(14) | Incorporated herein by reference to the Registrant's Annual Report on Form 10-K for the fiscal year ended December 31, 2009, filed on March 16, 2010 |
(15) | Incorporated herein by reference to the Registrant's Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2012, filed on August 8, 2012 |
(16) | Incorporated herein by reference to the Registrant's Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2013, filed on August 9, 2013 |
(17) | Incorporated herein by reference to the Registrant's Current Report on Form 8-K filed on April 26, 2016 |
(18) | Incorporated herein by reference to the Registrant's Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2016, filed on November 9, 2016 |
(19) | Incorporated herein by reference to the Registrant's Registration Statement on Form S-8 filed on April 21, 2016 |
(20) | Incorporated herein by reference to the Registrant's Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2013, filed on November 8, 2013 |
/s/ Armanino LLP |
San Jose, California |
March 1, 2017 |
/s/ KPMG LLP |
Santa Clara, California |
March 1, 2017 |
1. | I have reviewed this annual report on Form 10-K of Echelon Corporation; |
2. | Based on my knowledge, this annual report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly represent in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal controls over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions): |
ECHELON CORPORATION | |||||
Date: | March 1, 2017 | By: | /s/ Ronald A. Sege | ||
Ronald A. Sege, Chairman of the Board, President and Chief Executive Officer (Principal Executive Officer) |
1. | I have reviewed this annual report on Form 10-K of Echelon Corporation; |
2. | Based on my knowledge, this annual report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly represent in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal controls over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions): |
ECHELON CORPORATION | |||||
Date: | March 1, 2017 | By: | /s/ C. Michael Marszewski | ||
C. Michael Marszewski, Vice President and Chief Financial Officer (Principal Financial Officer) |
ECHELON CORPORATION | |||||
Date: | March 1, 2017 | By: | /s/ Ronald A. Sege | ||
Ronald A. Sege, Chairman of the Board, President and Chief Executive Officer (Principal Executive Officer) |
ECHELON CORPORATION | |||||
Date: | March 1, 2017 | By: | /s/ C. Michael Marszewski | ||
C. Michael Marszewski, Executive Vice President and Chief Financial Officer (Principal Financial Officer) | |||||
* | A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to Echelon Corporation and will be retained by Echelon Corporation and furnished to the Securities and Exchange Commission or its staff upon request. | ||||
This certification accompanies this Form 10-K to which it relates, is not deemed filed with the Securities and Exchange Commission and is not to be incorporated by reference into any filing of the Registrant (whether made before or after the date of this Form 10-K) under the Securities Act of 1933 or the Securities Exchange Act of 1934, each as amended, irrespective of any general incorporation language contained in such filing. |
Document and Entity Information - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Feb. 28, 2017 |
Jun. 30, 2016 |
|
Document and Entity Information [Abstract] | |||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | ECHELON CORP | ||
Entity Central Index Key | 0000031347 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2016 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2016 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Public Float | $ 17.2 | ||
Entity Common Stock, Shares Outstanding | 4,433,970 |
Consolidated Balance Sheets (Parenthetical) (Parentheticals) - USD ($) $ in Thousands |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Consolidated Balance Sheets [Abstract] | ||
Due from Related Parties, Current | $ 0 | $ 827 |
Allowance for Bad Debts Reserve and Sales Returns | $ 564 | $ 521 |
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Preferred Stock, Shares Authorized | 5,000,000 | 5,000,000 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 10,000,000 | 10,000,000 |
Common Stock, Shares, Issued | 4,753,654 | 4,738,370 |
Common Stock, Shares, Outstanding | 4,431,736 | 4,416,452 |
Treasury Stock, Shares | 321,918 | 321,918 |
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Sep. 30, 2014 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
||||||||
Revenues: | |||||||||||||||||||
Revenues | $ 7,498 | $ 8,179 | $ 8,061 | $ 8,647 | $ 9,590 | $ 9,983 | $ 9,363 | $ 9,868 | $ 32,385 | [1] | $ 38,804 | [1] | $ 38,730 | [1] | |||||
Cost of revenues: | |||||||||||||||||||
Cost of Revenue | 3,375 | 3,707 | 3,415 | 3,805 | 4,093 | 4,370 | 3,821 | 4,244 | 14,302 | [2] | 16,528 | [2] | 16,818 | [2] | |||||
Gross profit | 4,123 | 4,472 | 4,646 | 4,842 | 5,497 | 5,613 | 5,542 | 5,624 | 18,083 | 22,276 | 21,912 | ||||||||
Operating expenses: | |||||||||||||||||||
Product development | 2,119 | 1,963 | 1,985 | 2,193 | 2,341 | 2,454 | 2,340 | 2,612 | 8,260 | [2] | 9,747 | [2] | 9,510 | [2] | |||||
Sales and marketing | 1,638 | 1,570 | 1,679 | 1,302 | 1,602 | 1,848 | 2,194 | 2,188 | 6,189 | [2] | 7,832 | [2] | 9,098 | [2] | |||||
General and administrative | 1,782 | 2,087 | 2,197 | 2,011 | 1,694 | 2,547 | 2,187 | 2,821 | 8,077 | [2] | 9,249 | [2] | 13,734 | [2] | |||||
Goodwill impairment charges | 0 | 0 | 0 | 0 | 5,698 | 0 | 0 | 0 | 0 | 5,698 | 0 | ||||||||
Lease termination charges | 0 | 0 | 0 | 0 | 0 | 0 | 3,337 | 0 | 0 | 3,337 | 0 | ||||||||
Loss on write down of property, equipment and other | $ 4,409 | 0 | 0 | 4,409 | |||||||||||||||
Restructuring charges | 286 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 286 | 0 | 391 | ||||||||
Total operating expenses | 5,825 | 5,620 | 5,861 | 5,506 | 11,335 | 6,849 | 10,058 | 7,621 | 22,812 | 35,863 | 37,142 | ||||||||
Loss from operations | (1,702) | (1,148) | (1,215) | (664) | (5,838) | (1,236) | (4,516) | (1,997) | (4,729) | (13,587) | (15,230) | ||||||||
Interest and other income (expense), net | 567 | (57) | 503 | (205) | 227 | 184 | (458) | 838 | 808 | 791 | 930 | ||||||||
Interest expense on lease financing obligations | 0 | 0 | 0 | 0 | (2) | (5) | (128) | (252) | 0 | (387) | (1,100) | ||||||||
Loss before provision for income taxes | (1,135) | (1,205) | (712) | (869) | (5,613) | (1,057) | (5,102) | (1,411) | (3,921) | (13,183) | (15,400) | ||||||||
Income tax expense | 102 | 23 | 51 | 6 | (14) | (10) | 61 | 13 | 182 | 50 | 211 | ||||||||
Net loss from continuing operations | (4,103) | (13,233) | (15,611) | ||||||||||||||||
Net loss from discontinued operations, net of income taxes(2) | [2] | 0 | 0 | (9,250) | |||||||||||||||
Net loss from discontinued operations attributable to non controlling interest, net of income taxes | 0 | 0 | 535 | ||||||||||||||||
Net loss from discontinued operations attributable to Echelon Corporation Stockholders, net of income taxes | 0 | 0 | (8,715) | ||||||||||||||||
Net Income (Loss) Attributable to Parent | $ (1,237) | $ (1,228) | $ (763) | $ (875) | $ (5,599) | $ (1,047) | $ (5,163) | $ (1,424) | $ (4,103) | $ (13,233) | $ (24,326) | ||||||||
Net income (loss) per share: | |||||||||||||||||||
Basic and diluted net loss per share from continuing operations attributable to Echelon Corporation Stockholders | $ (0.28) | $ (0.28) | $ (0.17) | $ (0.20) | $ (1.27) | $ (0.24) | $ (1.17) | $ (0.32) | $ (0.93) | $ (3.00) | $ (3.59) | ||||||||
Basic and diluted net loss per share from discontinued operations attributable to Echelon Corporation Stockholders | 0.00 | 0.00 | (2.00) | ||||||||||||||||
Basic and diluted net loss per share attributable to Echelon Corporation Stockholders | $ (0.93) | $ (3.00) | $ (5.59) | ||||||||||||||||
Shares used in computing net income (loss) per share: | |||||||||||||||||||
Basic | 4,432 | 4,431 | 4,420 | 4,417 | 4,416 | 4,413 | 4,406 | 4,395 | 4,425 | 4,409 | 4,350 | ||||||||
Diluted | 4,432 | 4,431 | 4,420 | 4,417 | 4,416 | 4,413 | 4,406 | 4,395 | 4,425 | 4,409 | 4,350 | ||||||||
|
Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Income Statement [Abstract] | |||
Revenue from related parties | $ 1,313 | $ 4,909 | $ 2,993 |
Consolidated Statements of Compehensive Loss - USD ($) $ in Thousands |
12 Months Ended | ||||
---|---|---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|||
Statement of Comprehensive Income [Abstract] | |||||
Net loss from continuing operations | $ (4,103) | $ (13,233) | $ (15,611) | ||
Net loss from discontinued operations, net of income taxes | [1] | 0 | 0 | (9,250) | |
Net loss including non-controlling interest | (4,103) | (13,233) | (24,861) | ||
Other comprehensive income (loss), net of tax: | |||||
Foreign currency translation adjustment | (853) | (1,158) | (1,431) | ||
Unrealized holding gain (loss) on available-for-sale securities | 10 | (5) | (15) | ||
Total other comprehensive income (loss) | (843) | (1,163) | (1,446) | ||
Comprehensive loss | (4,946) | (14,396) | (26,307) | ||
Less: comprehensive loss attributable to non controlling interest | 0 | 0 | (535) | ||
Comprehensive loss attributable to Echelon Corporation Stockholders | $ (4,946) | $ (14,396) | $ (25,772) | ||
|
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands |
Total |
Common Stock [Member] |
Treasury Stock [Member] |
Additional Paid-in Capital [Member] |
Accumulated Other Comprehensive Income (Loss) [Member] |
Accumulated Deficit [Member] |
Noncontrolling Interest [Member] |
---|---|---|---|---|---|---|---|
Common Stock, Shares, Issued at Dec. 31, 2013 | 4,657,000 | 322,000 | |||||
Beginning balance at Dec. 31, 2013 | $ 67,977 | $ 47 | $ (28,130) | $ 355,099 | $ 1,015 | $ (260,843) | $ 789 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Exercise of stock options | 17 | 17 | |||||
Release of performance shares, Shares | 46,000 | ||||||
Release of performance shares, value | 0 | ||||||
Stock Received for Payment of Employee Taxes on Vesting of Performance Shares and Upon Exercise of Stock Options Shares | (17,000) | ||||||
Stock Received for Payment of Employee Taxes on Vesting of Performance Shares and Upon Exercise of Stock Options | (422) | (422) | |||||
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition | 1,197 | 1,197 | |||||
Stock issued for Lumewave acquisition, Shares | 34,000 | ||||||
Stock issued for Lumewave acquisition | 715 | 715 | |||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax | (1,431) | (1,431) | |||||
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax | (15) | (15) | |||||
Net loss including non-controlling interest | (24,861) | (24,326) | (535) | ||||
Common Stock, Shares, Issued at Dec. 31, 2014 | 4,720,000 | 322,000 | |||||
Ending balance at Dec. 31, 2014 | 43,177 | $ 47 | $ (28,130) | 356,606 | (431) | (285,169) | 254 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Release of performance shares, Shares | 34,000 | ||||||
Release of performance shares, value | 0 | ||||||
Stock Received for Payment of Employee Taxes on Vesting of Performance Shares and Upon Exercise of Stock Options Shares | (16,000) | ||||||
Stock Received for Payment of Employee Taxes on Vesting of Performance Shares and Upon Exercise of Stock Options | (153) | (153) | |||||
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition | 293 | 293 | |||||
Stock issued for Lumewave acquisition | 0 | ||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax | (1,158) | (1,158) | |||||
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax | (5) | (5) | |||||
Net loss including non-controlling interest | $ (13,233) | (13,233) | 0 | ||||
Common Stock, Shares, Issued at Dec. 31, 2015 | 4,738,370 | 4,738,000 | 322,000 | ||||
Ending balance at Dec. 31, 2015 | $ 28,921 | $ 47 | $ (28,130) | 356,746 | (1,594) | (298,402) | 254 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Cumulative effect adjustment from adoption of accounting standard | 0 | 675 | (675) | ||||
Release of performance shares, Shares | 24,000 | ||||||
Release of performance shares, value | 0 | $ 1 | (1) | ||||
Stock Received for Payment of Employee Taxes on Vesting of Performance Shares and Upon Exercise of Stock Options Shares | 8,000 | ||||||
Stock Received for Payment of Employee Taxes on Vesting of Performance Shares and Upon Exercise of Stock Options | 43 | 43 | |||||
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition | 746 | 746 | |||||
Stock issued for Lumewave acquisition | 0 | ||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax | (853) | (853) | |||||
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax | 10 | 10 | |||||
Net loss including non-controlling interest | $ (4,103) | (4,103) | 0 | ||||
Common Stock, Shares, Issued at Dec. 31, 2016 | 4,753,654 | 4,754,000 | 322,000 | ||||
Ending balance at Dec. 31, 2016 | $ 24,678 | $ 48 | $ (28,130) | $ 358,123 | $ (2,437) | $ (303,180) | $ 254 |
Consolidated Statements of Cash Flows - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
CASH FLOWS PROVIDED BY (USED IN) OPERATING ACTIVITIES: | |||
Net loss including non-controlling interest | $ (4,103) | $ (13,233) | $ (24,861) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 489 | 1,767 | 3,350 |
Lease termination charges | 0 | 3,337 | 0 |
Goodwill impairment charges | 0 | 5,698 | 3,388 |
Increase (decrease) in allowance for doubtful accounts | 6 | (19) | (57) |
Loss on disposal of Grid business | 0 | 0 | 254 |
Loss on disposal and write-down of fixed assets | 1 | 81 | 5,217 |
Increase in accrued investment income | (43) | (31) | (32) |
Stock-based compensation | 746 | 293 | 1,197 |
Adjustment to contingent consideration | (318) | (650) | 43 |
Change in operating assets and liabilities: | |||
Accounts receivable | 1,009 | (53) | 2,536 |
Inventories | 323 | 409 | 1,757 |
Deferred cost of goods sold | (20) | 277 | 209 |
Other current assets | 200 | 356 | 1,007 |
Accounts payable | (558) | (1,309) | (81) |
Accrued liabilities | (1,176) | (1,097) | (4,034) |
Deferred revenues | 340 | (707) | (846) |
Deferred rent | 81 | (45) | (35) |
Net cash used in operating activities | (3,023) | (4,926) | (10,988) |
CASH FLOWS PROVIDED BY (USED IN) INVESTING ACTIVITIES: | |||
Purchases of available-for-sale short-term investments | (23,955) | (16,974) | (28,975) |
Proceeds from maturities and sales of available‑for‑sale short‑term investments | 29,155 | 28,852 | 48,000 |
Change in other long-term assets | 160 | (795) | 29 |
Cash paid for acquisition, net of cash acquired | 0 | 0 | (924) |
Proceeds from divestiture of Grid business, net of transaction costs | 0 | 0 | 2,144 |
Capital expenditures | (117) | (306) | (746) |
Net cash provided by investing activities | 5,243 | 10,777 | 19,528 |
CASH FLOWS PROVIDED BY (USED IN) FINANCING ACTIVITIES: | |||
Principal payments of lease financing obligations | 0 | (11,278) | (2,064) |
Proceeds from exercise of stock options | 0 | 0 | 17 |
Restricted investments used as collateral for line of credit | 0 | 0 | (6,250) |
Repurchase of common stock from employees for payment of taxes on vesting of restricted stock units and upon exercise of stock options | (43) | (153) | (422) |
Net cash used in financing activities | (43) | (11,431) | (8,719) |
EFFECT OF EXCHANGE RATE CHANGES ON CASH | (65) | (69) | (1,129) |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 2,112 | (5,649) | (1,308) |
CASH AND CASH EQUIVALENTS: | |||
Beginning of period | 7,691 | 13,340 | 14,648 |
End of period | 9,803 | 7,691 | 13,340 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | |||
Cash paid for interest on lease financing obligations | 0 | 387 | 1,003 |
Cash paid for income taxes | 169 | 249 | 294 |
Fair value of stock issued in connection with acquisition | 0 | 0 | 715 |
Non-cash transfer from financing to investing for restricted investments used as collateral for credit cards | 0 | 0 | 1,399 |
Non-cash transfer of restricted investments to available-for-sale short-term investments | $ 151 | $ 0 | $ 4,851 |
Summary of Significant Accounting Policies |
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Significant Accounting Policies [Text Block] | 1. Significant Accounting Policies Operations Echelon Corporation (the Company) was incorporated in California in February 1988 and reincorporated in Delaware in January 1989. The Company is based in Santa Clara, California, and maintains offices in seven foreign countries throughout Europe and Asia. Its products enable everyday devices — such as air conditioners, appliances, elevators, electricity meters, light switches, thermostats, and valves — to be made “smart” and inter-connected, part of an emerging market known as the Industrial Internet of Things ("IIoT"). Its proven, open standard, multi-application energy control networking platform powers applications for smart cities, smart buildings, and smart campuses that help customers save on their energy usage, reduce outage duration or prevent them from happening entirely, reduce carbon footprint and more. Today, the Company offers, directly and through its partners worldwide, a wide range of products and services. Basis of Presentation The consolidated financial statements include the accounts of the Company, its wholly-owned subsidiaries, and a subsidiary in which it has a controlling interest (collectively referred to as the “Company”). The Company reports noncontrolling interests in consolidated entities as a component of equity separate from the Company’s equity. All material inter-company transactions between and among the Company and its consolidated subsidiaries and other consolidated entities have been eliminated in consolidation. In 2014, the Company announced and completed the sale of its Grid business to S&T AG, a publicly traded European IT systems provider with an existing focus on smart energy products and services. The results of the Grid business for the year ended December 31, 2014, is now classified as discontinued operations. As a result of this transaction, the Company now operates in one reporting segment- the IIoT segment. Risks and Uncertainties The Company’s operations and performance depend significantly on worldwide economic conditions and their impact on purchases of the Company’s products, as well as the ability of suppliers to provide the Company with products and services in a timely manner. The impact of any of the matters described below could have an adverse effect on the Company’s business, results of operations and financial condition.
Use of Estimates The preparation of financial statements and related disclosures in conformity with accounting principles generally accepted in the United States of America requires management to make judgments, assumptions, and estimates that affect amounts reported in the Consolidated Financial Statements and accompanying notes. Significant estimates and judgments are used for revenue recognition, performance-based equity compensation, inventory valuation, intangible asset valuation, goodwill valuation, contingent consideration valuation, and other loss contingencies. In order to determine the carrying values of assets and liabilities that are not readily apparent from other sources, the Company bases its estimates and assumptions on current facts, historical experience, and various other factors that it believes to be reasonable under the circumstances. Actual results experienced by the Company may differ materially from management’s estimates. Recently Issued Accounting Standards (i) New Accounting Standards Recently Adopted In March 2016, the FASB issued ASU 2016-09, Compensation – Stock Compensation (Topic 718), which simplifies the accounting for share-based payments, including income tax consequences, accounting for forfeitures, classification of awards as either equity or liabilities, and classification on the statements of cash flows. This guidance is effective for interim and annual periods beginning after December 15, 2016, with early adoption permitted. During the fourth quarter of 2016, the Company elected to early adopt ASU 2016-09, with retrospective application to January 1, 2016. The primary impact of adoption was to the Company's accounting policy for forfeited equity compensation awards. Prior to the adoption of ASU 2016-09, the Company's stock-based compensation expense was calculated using an estimated forfeiture rate. Following the adoption, the Company recognizes the impact of forfeitures on stock-based compensation expense as they occur. The net cumulative effect of this change was recognized as a $675,000 reduction to retained earnings as of January 1, 2016. (ii) New Accounting Standards Not Yet Effective On May 28, 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. In July 2015, the FASB deferred the effective date of ASU 2014-09 so that it will apply to annual reporting periods beginning after December 15, 2017 (including interim reporting periods within those periods). Early application is permitted to annual reporting periods beginning after December 15, 2016, in which case ASU 2014-09 would apply to annual reporting periods beginning after December 15, 2016 (including interim reporting periods within those periods). The standard permits the use of either the retrospective or cumulative effect transition method. The Company has not yet selected a transition method. The Company currently anticipates the standard will have a material impact on its financial statements and disclosures. While the Company continues to assess all potential impacts of the standard, it currently believes the most significant impact relates to its accounting for sales made to distributors under agreements that contain a limited right to return unsold products and price adjustment provisions. Under the existing revenue guidance, the Company has historically concluded that the price to these distributors is not fixed or determinable at the time it delivers products to them. Accordingly, revenue from sales to these distributors has not historically been recognized until the distributor resells the product. By contrast, under the new standard, the Company expects to recognize revenue, including estimates for applicable variable consideration, predominately at the time of shipment to these distributors, thereby accelerating the timing of revenue for products sold through distributors. During the year ended December 31, 2016, the Company recognized approximately $14.7 million of revenue sold through such distributors. In July 2015, the FASB issued an update to ASC 330, Inventory: Simplifying the Measurement of Inventory. Under this update, subsequent measurement of inventory is based on the lower of cost or net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less the estimated cost of completion and disposal. This update does not apply to inventory that is measured using last-in, first-out or the retail inventory method. This update should be applied prospectively and will be adopted by the Company in the first quarter of fiscal year 2017. Early adoption is permitted. The Company does not believe the adoption will have a significant impact on its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which requires, among other things, the recognition of lease assets and lease liabilities on the balance sheet by lessees for certain leases classified as operating leases under previous GAAP. ASU 2016-02 is effective for annual and interim periods beginning after December 15, 2018. ASU 2016-02 mandates a modified retrospective transition method with early adoption permitted. The Company is currently evaluating the effect that ASU 2016-02 will have on its consolidated financial statements and related disclosures. Revenue Recognition The Company’s revenues are derived from the sale and license of its products and to a lesser extent, from fees associated with training, technical support, and custom software design services offered to its customers. Product revenues consist of revenues from hardware sales and software licensing arrangements. Service revenues consist of product technical support (including software post-contract support services), training, and custom software development services. The Company recognizes revenue when persuasive evidence of an arrangement exists, delivery to the customer’s carrier (and acceptance, as applicable) has occurred, the sales price is fixed or determinable, collectability is probable, and there are no post-delivery obligations. For non-distributor hardware sales, including sales to third party manufacturers, these criteria are generally met at the time of delivery to the customer’s carrier. However, for arrangements that contain contractual acceptance provisions, revenue recognition may be delayed until acceptance by the customer or the acceptance provisions lapse unless the Company can objectively demonstrate that the contractual acceptance criteria have been satisfied, which is generally accomplished by establishing a history of acceptance for the same or similar products. For sales made to the Company’s distributor partners, revenue recognition criteria are generally met at the time the distributor sells the products through to its end-use customer. Service revenue is recognized as the training services are performed, or ratably over the term of the support period. The Company accounts for the rights of return, price protection, rebates, and other sales incentives offered to distributors of its products as a reduction in revenue. With the exception of sales to distributors, the Company’s customers are generally not entitled to return products for a refund. For sales to certain distributors, due to contractual rights of return and other factors that impact its ability to make a reasonable estimate of future returns and other sales incentives, revenues are not recognized until the distributor has shipped its products to the end customer. The Company’s multiple deliverable revenue arrangements have historically been primarily related to sales of its Grid products. As noted above, the Company completed the sale of its Grid division to S&T AG in September 2014. Therefore, multiple element arrangements are now limited. These historical transactions typically included, within a single arrangement, a combination of some or all of the following deliverables: electricity meters, data concentrators and related hardware (collectively, the “Hardware”); NES system software; Element Manager software; post-contract customer support (“PCS”) for the NES system and Element Manager software; extended warranties for the Hardware; and, occasionally, specified enhancements or upgrades to software used in the NES system. With the exception of the NES system software, each of these deliverables was considered a separate unit of accounting. The NES system software functions together with an electricity meter to deliver its essential functionality and any related software license fee is charged for on a per meter basis. Therefore, the NES system software and an electricity meter are combined and considered a single unit of accounting. The Element Manager software is not considered to be part of an electricity meter’s essential functionality and, therefore, Element Manager software and any related PCS has been accounted for under industry specific software revenue recognition guidance. However, all other NES system deliverables are no longer within the scope of industry specific software revenue recognition guidance. The Company allocates revenue to each element in a multiple-element arrangement based upon their relative selling price. The Company determines the selling price for each deliverable using vendor specific objective evidence (“VSOE”) of selling price or third party evidence (“TPE”) of selling price, if it exists. If neither VSOE nor TPE of selling price exists for a deliverable, the Company uses its best estimated selling price (“BESP”) for that deliverable. Any discounts offered by the Company are allocated, proportionally, to each of the deliverables. Revenue allocated to each element is then recognized when the basic revenue recognition criteria is met for the respective element. If available, the Company determines VSOE of fair value for each element based on historical stand-alone sales to third parties or from the stated renewal rate for the elements contained in the initial contractual arrangement. The Company currently estimates selling prices for its PCS and extended warranties based on VSOE of fair value. In many instances, the Company is not currently able to obtain VSOE of fair value for all deliverables in an arrangement with multiple elements. This may be due to the Company infrequently selling each element separately or not pricing products within a narrow range. When VSOE cannot be established, the Company attempts to estimate the selling price of each element based on TPE. TPE would consist of competitor prices for similar deliverables when sold separately. Generally, the Company’s offerings contain significant differentiation such that the comparable pricing of products with similar functionality cannot be obtained. Furthermore, the Company is unable to reliably determine the stand-alone selling prices for similar products of its competitors. Therefore, the Company is typically not able to obtain TPE of selling price. When the Company is unable to establish a selling price using VSOE or TPE, which was generally the case for the Hardware and certain specified enhancements or upgrades to the Company’s NES software, the Company uses its BESP in determining the allocation of arrangement consideration. The objective of BESP is to determine the price at which the Company would transact a sale if the product or service were sold on a stand-alone basis. BESP is generally used for offerings that are not typically sold on a stand-alone basis or for new or highly customized offerings. The Company establishes pricing for its products and services by considering multiple factors including, but not limited to, geographies, market conditions, competitive landscape, internal costs, gross margin objectives, and industry pricing practices. The determination of pricing also includes consultation with and formal approval by the Company’s management, taking into consideration the Company’s go-to-market strategy. These pricing practices apply to both the Company’s Hardware and software products. Based on an analysis of pricing stated in contractual arrangements for its Hardware products in historical multiple-element transactions and, to a lesser extent, historical standalone transactions, the Company has concluded that it typically prices its Hardware within a narrow range of discounts when compared to the price listed on the Company’s standard pricing grid for similar deliverables (i.e., similar configuration, volume, geography, etc.). Therefore, the Company has determined that, for its current Hardware for which VSOE or TPE is not available, the Company’s BESP is generally comprised of prices based on a narrow range of discounts from pricing stated in its pricing grid. When establishing BESP for the Company’s specified software enhancements or upgrades, the Company considers multiple factors including, but not limited to, the relative value of the features and functionality being delivered by the enhancement or upgrade as compared to the value of the software product to which the enhancement or upgrade relates, as well as the Company’s pricing practices for NES system software PCS packages, which may include rights to the specified enhancements or upgrades. The Company regularly reviews VSOE and has established a review process for TPE and BESP. The Company maintains internal controls over the establishment and updates of these estimates. There were no material impacts during the year ended December 31, 2016, resulting from changes in VSOE, TPE, or BESP, nor does the Company expect a material impact from such changes in the near term. Deferred Revenue and Deferred Cost of Goods Sold Deferred revenue consists substantially of amounts billed or payments received in advance of revenue recognition. Deferred cost of goods sold related to deferred product revenues includes direct product costs and applied overhead. Once all revenue recognition criteria have been met, the deferred revenues and associated cost of goods sold are recognized. Stock-Based Compensation The Company accounts for employee stock-based payment transactions in which the Company receives employee services in exchange for equity instruments of the enterprise. Stock-based compensation cost for restricted stock units (“RSUs”) granted to employees is measured based on the closing fair market value of the Company's common stock on the date of grant. Stock-based compensation cost for RSUs granted to non-employee consultants is measured based on the closing fair market value of the Company's common stock at the earlier of the date at which a commitment for performance by the consultant to earn the RSUs is reached, or the date at which the consultant's performance necessary for the RSUs to vest has been completed. Stock-based compensation cost for stock options and stock appreciation rights granted to employees (“SARs”) is estimated at the grant date based on each award's fair-value as calculated using the Black-Scholes-Merton (“BSM”) option-pricing model. The Company recognizes stock-based compensation cost as expense using the accelerated multiple-option approach over the requisite service period. Further information regarding stock-based compensation can be found in Note 8 of these Notes to Consolidated Financial Statements. Cash and Cash Equivalents The Company considers bank deposits, money market investments and all debt and equity securities with remaining maturities of three months or less at the date of purchase to be cash and cash equivalents. Short-Term Investments The Company classifies its investments in marketable debt securities as available-for-sale. Securities classified as available-for-sale are reported at fair value with the related unrealized holding gains and losses, net of tax, being included in accumulated other comprehensive loss. Fair Value Measurements The Company measures at fair value its cash equivalents and available-for-sale investments using a valuation hierarchy based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company's own assumptions. These two types of inputs have created the following fair value hierarchy:
This hierarchy requires the Company to minimize the use of unobservable inputs and to use observable market data, if available, when estimating fair value. Other than cash and money market funds, the Company's only financial assets or liabilities required to be measured at fair value on a recurring basis at December 31, 2016, are fixed income available-for-sale securities. See Note 2 of these Notes to Consolidated Financial Statements for a summary of the input levels used in determining the fair value of the Company's cash equivalents and short-term investments as of December 31, 2016. Inventories Inventories are stated at the lower of cost (first‑in, first‑out) or market and include material, labor and manufacturing overhead. When required, provisions are made to reduce excess and obsolete inventories to their estimated net realizable value. Inventories consist of the following (in thousands):
Impairment of Long-Lived Assets Including Goodwill The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. Recoverability is measured by comparing the asset's carrying value to the future undiscounted cash flows the asset is expected to generate. If long-lived assets are considered to be impaired, the impairment to be recognized equals the amount by which the carrying value of the asset exceeds its fair value. For the year ended December 31, 2014, the Company recognized impairments associated with certain long-lived assets associated with its Grid division and a building that the Company ceased use of at its corporate headquarters facility (see Note 3 for additional information regarding the impairment). For the years ended December 31, 2016 and December 31, 2015, the Company recognized no impairments of long-lived assets. Costs in excess of the fair value of tangible and other identifiable intangible assets acquired and liabilities assumed in a purchase business combination are recorded as goodwill, which is tested for impairment using a two-step approach. The Company evaluates goodwill, at a minimum, on an annual basis during the first quarter and whenever events and changes in circumstances suggest that the carrying amount may not be recoverable. Impairment of goodwill is tested at the reporting unit level by comparing the reporting unit's carrying amount, including goodwill, to the fair value of the reporting unit. The fair values of the reporting units are estimated using a combination of the income approach and the market approach. If the carrying amount of the reporting unit exceeds its fair value, goodwill is considered impaired and a second step is performed to measure the amount of impairment loss, if any. For both the years ended December 31, 2015 and 2014, the Company recognized impairments of its goodwill, which are described in more detail in Note 10. Software Development Costs For software to be sold, leased, or otherwise marketed, the Company capitalizes eligible computer software development costs upon the establishment of technological feasibility, which the Company has defined as completion of a working model. For the three years ended December 31, 2016, costs that were eligible for capitalization were insignificant and, thus, the Company has charged all software development costs to product development expense in the accompanying consolidated statements of operations. Accrued Liabilities Accrued liabilities consist of the following (in thousands):
Foreign Currency Translation The functional currency of the Company's subsidiaries is the local currency. Accordingly, all assets and liabilities are translated into U.S. dollars at the current exchange rate as of the applicable balance sheet date. Revenues and expenses are translated at the average exchange rate prevailing during the period. Gains and losses resulting from the translation of the financial statements are included in accumulated other comprehensive income (loss). Remeasurement adjustments for non-functional currency monetary assets and liabilities, including short-term intercompany balances, are included in other income (expense) in the accompanying consolidated statements of operations. Currently, the Company does not employ a foreign currency hedge program utilizing foreign currency exchange contracts as the foreign currency transactions and risks to date have not been significant. Concentrations of Credit Risk and Suppliers The Company's financial instruments have historically consisted of cash equivalents, short-term investments, accounts receivable, accounts payable, and lease financing obligations. The carrying value of the Company's financial instruments approximates fair value. Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of investments, which are classified as either cash equivalents or short-term investments, and trade receivables. With respect to its investments, the Company has an investment policy that limits the amount of credit exposure to any one financial institution and restricts placement of the Company's investments to financial institutions independently evaluated as highly creditworthy. With respect to its trade receivables, the Company performs ongoing credit evaluations of each of its customers' financial condition. For a customer whose credit worthiness does not meet the Company's minimum criteria, the Company may require partial or full payment prior to shipment. Alternatively, prior to shipment, customers may be required to provide the Company with an irrevocable letter of credit or arrange for some other form of coverage, such as a bank guarantee, to mitigate the risk of uncollectibility. Additionally, the Company establishes an allowance for doubtful accounts and sales return allowances based upon factors surrounding the credit risk of specific customers, historical trends, and other available information. With the exception of amounts owed to the Company on sales made to certain significant customers, concentrations of credit risk with respect to trade receivables are generally limited due to the Company's large number of customers and their dispersion across many different industries and geographies. As of December 31, 2016 and 2015, the percentage of the Company's total accounts receivable balance that were due from the following significant customers is as follows (refer to Note 9 - Significant Customers for a discussion of revenues generated from the Company's significant customers):
For most of the Company's products requiring assembly, it relies on a limited number of contract electronic manufacturers, principally Bel-Fuse (formerly TYCO). The Company also maintains manufacturing agreements with a limited number of semiconductor manufacturers for the production of key products. The Neuron Chip is an important component that the Company and its customers use in control network devices. In addition to those sold by the Company, the Neuron Chip is currently manufactured and distributed only by Cypress Semiconductor. Another semiconductor supplier, STMicroelectronics, manufactures the Company's power line smart transceiver products, for which the Company has no alternative source. In addition, the Company currently purchases several key products and components from sole or limited source suppliers with which it does not maintain signed agreements that would obligate them to supply to the Company on negotiated terms. If any of the Company's key suppliers were to stop manufacturing the Company's products or cease supplying the Company with its key components, it could be expensive and time consuming to find a replacement. There is no guarantee that the Company would be able to find acceptable alternatives or additional sources. The failure of any key manufacturer to produce a sufficient number of products on time, at agreed quality levels, and fully compliant with the Company's product, assembly and test specifications could adversely affect the Company's revenues and gross profit, and could result in claims against the Company by its customers, which could harm the Company's results of operations and financial position. Computation of Basic and Diluted Net Loss Per Share Basic net loss per share is calculated by dividing net loss attributable to Echelon Corporation Stockholders by the weighted average shares of common stock outstanding during the period. Diluted net loss per share attributable to Echelon Corporation Stockholders is calculated by adjusting the weighted average number of outstanding shares assuming conversion of all potentially dilutive stock options and warrants under the treasury stock method. The following is a reconciliation of the numerators and denominators of the basic and diluted net loss per share computations for the years ended December 31, 2016, 2015 and 2014 (in thousands, except per share amounts):
For the years ended December 31, 2016, 2015 and 2014, the diluted net loss per share calculation is equivalent to the basic net loss per share calculation as there were no potentially dilutive stock options or RSUs due to the Company’s net loss position. The number of stock options, stock appreciation rights, restricted stock units (“RSUs”), restricted stock awards (“RSAs”), and contingently issuable shares excluded from this calculation for the years ended December 31, 2016, 2015 and 2014 was 837,035, 367,363 and 406,134, respectively. Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company takes a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the tax position will be sustained on audit, including resolution of any related appeals or litigation processes. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon effective settlement. The Company re-evaluates its income tax positions on a quarterly basis to consider factors such as changes in facts or circumstances, changes in or interpretations of tax law, effectively settled issues under audit, and new audit activity. Such a change in recognition or measurement would result in recognition of a tax benefit or an additional charge to the tax provision. Interest and penalties on unrecognized tax benefits are classified as income tax expense. Comprehensive Income (Loss) Comprehensive income (loss) for the Company consists of net loss plus the effect of unrealized holding gains or losses on investments classified as available-for-sale and foreign currency translation adjustments. |
Financial Instruments |
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Financial Instruments | 2. Financial Instruments Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis On a recurring basis, the Company measures certain of its financial assets, namely its cash equivalents, and short-term investments, and measured its liability related to contingent consideration due to Lumewave, Inc. ("Lumewave") shareholders at fair value. The fair value of the Company’s financial assets measured at fair value on a recurring basis was determined using the following inputs at December 31, 2016 (in thousands):
The fair value of the Company’s financial assets and liabilities measured at fair value on a recurring basis was determined using the following inputs at December 31, 2015 (in thousands):
(1) Included in cash and cash equivalents in the Company’s consolidated balance sheets
The Company’s available-for-sale securities consist of U.S. government securities with a minimum and weighted average credit rating of A-1+. The Company values these securities based on pricing from pricing vendors, who may use quoted prices in active markets for identical assets (Level 1 inputs) or inputs other than quoted prices that are observable either directly or indirectly (Level 2 inputs) in determining fair value. However, the Company classifies all of its fixed income available-for-sale securities as having Level 2 inputs. The valuation techniques used to measure the fair value of the Company’s financial instruments having Level 2 inputs were derived from non-binding market consensus prices that are corroborated by observable market data, quoted market prices for similar instruments, or pricing models, such as discounted cash flow techniques. The Company's procedures include controls to ensure that appropriate fair values are recorded such as comparing prices obtained from multiple independent sources. There were no transfers between Level 1 and 2 hierarchies for the years ended December 31, 2016 and 2015. The contingent consideration payable to Lumewave's shareholders, which the Company recognized upon it's purchase of Lumewave in August 2014 and is included in accrued liabilities in the Company's consolidated balance sheets as of December 31, 2015, was classified within Level 3 because significant assumptions, including revenue levels and gross profit achievement for this obligation, were not observable in the market. The table below includes a rollforward of the balance sheet amounts for financial instruments classified by the Company within Level 3 of the valuation hierarchy for the two years ended December 31, 2016 (in thousands):
During the year ended December 31, 2015, the contingent consideration decreased by approximately $650,000. This decrease was comprised of a $759,000 reduction due to the Company's determination that it was no longer probable that the targets specified in the purchase agreement would be met at a level requiring full payout of the contingent consideration, and to a lesser extent, a reduction in the price of the Company's common stock. Partially offsetting this $759,000 was amortization of interest on the contingent consideration of $109,000. During the quarter ended March 31, 2016, the contingent consideration decreased by approximately $318,000. This reduction was due to the Company's determination that it was no longer probable that the minimum targets specified in the purchase agreement would be met due to sales force transitions and scheduling delays for some of our larger lighting projects. Accordingly, the Company reduced the associated liability to $0 as of March 31, 2016. This resulted in a $318,000 adjustment, which was recorded as a reduction to general and administrative expenses in the Company's consolidated statements of operations. As of December 31, 2016, the Company’s available-for-sale securities had contractual maturities from 5 to 6 months and an average remaining term to maturity of 3 months. Among the Company's available-for-sale securities, there have been no unrealized holding losses for a period of greater than 12 months as of December 31, 2016. As of December 31, 2016, the amortized cost basis, aggregate fair value, and gross unrealized holding gains and losses of the Company’s short-term investments by major security type were as follows (in thousands):
The amortized cost basis, aggregate fair value and gross unrealized holding gains and losses for the Company’s available-for-sale short-term investments, by major security type, were as follows as of December 31, 2015 (in thousands):
Market values were determined for each individual security in the investment portfolio. Any decline in value of these investments is primarily related to changes in interest rates and is considered to be temporary in nature. The Company reviews its investments on a regular basis to evaluate whether or not any have experienced an other-than-temporary decline in fair value. The cost of securities sold is based on the specific identification method and realized gains and losses are included in Interest and other income (expense), net in the Company's consolidated statements of operations. Non-Financial Assets Measured at Fair Value on a Nonrecurring Basis The majority of the Company's non-financial assets and liabilities, which have historically included goodwill, intangible assets, inventories, and property, plant and equipment, are not required to be measured at fair value on a recurring basis. However, if certain triggering events occur (or tested at least annually for goodwill) such that a non-financial instrument is required to be evaluated for impairment and an impairment is recorded to reduce the non-financial instrument's carrying value to the fair value as a result of such triggering events, the non-financial assets and liabilities are measured at fair value for the period such triggering events occur. During the years ended December 31, 2015 and 2014, the Company recognized impairments of its goodwill of $5.7 million and $3.4 million, respectively, based on Level 1, Level 2, and Level 3 inputs. See Note 10 - Goodwill and Intangible Assets for a further discussion of these impairments. |
Property and Equipment |
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment Disclosure [Text Block] | 3. Property and Equipment A summary of property and equipment, net as of December 31, 2016 and 2015 is as follows (in thousands):
Property and equipment are stated at cost. Depreciation is provided using the straight-line method as follows:
Accounting for former San Jose headquarter buildings and improvements In December 1999, the Company entered into a lease agreement with a real estate developer for its former corporate headquarters in San Jose, California. In October 2000, the Company entered into a second lease agreement with the same real estate developer for an additional building at its headquarters site. These leases were scheduled to expire in 2011 and 2013, respectively. Effective June 2008, the building leases were amended resulting in an extension of the lease term for both buildings through March 2020. The extended leases required minimum lease payments through March 2020 totaling approximately $48.9 million. Both leases permitted the Company to exercise an option to extend the respective lease for 2 sequential 5-year terms. In addition, the amended leases eliminated the Company's requirement to provide the landlord with security deposits, which the Company had previously satisfied through the issuance of standby letters of credit (“LOCs”). The Company historically accounted for the two buildings at its San Jose, California headquarters site under authoritative guidance pertaining to leases in which the Company is both involved in the construction of the lease assets and for which certain sale-leaseback criteria are not met. This results in the Company being the “deemed owner” of the two buildings for accounting purposes only. Accordingly, the leases associated with these facilities are accounted for as financing obligations. The cost of buildings and improvements for the Company's former leased San Jose, California headquarters facilities, for which it was the “deemed owner” for accounting purposes only, included both the costs paid for directly by the Company and the costs paid for by the builder (lessor) from the period commencing with the start of construction through the lease commencement date for each building. These building assets and leasehold improvements were depreciated over the shorter of the remaining lease term or estimated useful lives. For the December 1999 and October 2000 lease agreements, the Company initially recorded lease financing obligations of $12.0 million and $15.2 million, respectively, which corresponded to the building asset costs paid for by the lessor. As a result of the lease extension in June 2008, the Company increased the carrying amount of its lease financing obligations by approximately $12.5 million to approximately $27.6 million (an amount equal to the present value of the revised lease payments at the date of the lease extension), with a corresponding increase to the net carrying amount of the building assets. In addition, all of the accumulated depreciation on the building assets at the date of the lease extensions was eliminated with a corresponding decrease to the gross carrying amount of the building assets. As a result of the extension in lease terms, the Company also extended the estimated useful lives of the building assets and the leasehold improvements to equal the amended lease term. As a result of the sale of the Grid business on September 30, 2014 (see Note 5 - Discontinued Operations), the Company made the decision to cease use of one building within its corporate headquarters and recharacterize the building as a rental property. Consequently, management performed an impairment analysis on this building and determined that its carrying value was not recoverable. In performing this analysis, management analyzed the expected cash flows from different sub-lease scenarios using then current lease data for similar facilities in the area including market activity, expected tenant improvements and commissions, and period of time between recharacterization and lease up. As a result of this analysis,the Company recorded a write down of the building of $4.4 million during the three months ended September 30, 2014. During the quarter ended June 30, 2015, the Company terminated the lease agreements for its corporate headquarter facility in San Jose, California. In conjunction with the termination of these leases and associated financing obligations, in May 2015 the Company paid an up-front lease termination charge of $10.0 million, which allowed the Company to remove approximately $15.3 million of building related financing obligations from its balance sheet. At the same time, the Company entered into a short-term lease for one of the two buildings for the remainder of 2015. As a result of the lease termination, the Company wrote the carrying value of the buildings and leasehold improvements down to its fair value, which was equal to the present value of the remaining lease payments under the short-term lease. The net effect of the lease termination transaction was a charge of $3.3 million during the quarter ended June 30, 2015. For the years ended December 31, 2015, and 2014, the Company recorded depreciation expense associated with the former San Jose headquarter building assets of $1.1 million and $1.9 million, respectively. As of December 31, 2015, the net book value of the building assets was $0. Under the lease agreements, a portion of the total lease payments was accounted for as an operating lease of land and recorded as expense on a straight-line basis over the term of the lease. The remaining portions of the monthly lease payments were considered to be payments of principal and interest on the lease financing obligations. For the years ended December 31, 2015, and 2014, land lease expense was $617,000 and $741,000, respectively. For the years ended December 31, 2015, and 2014, principal reductions on the lease financing obligations were $11.3 million and $2.2 million, respectively; and interest expense was $387,000 and $1.1 million, respectively. Impairment of certain long-lived assets of the Grid business During 2014, in light of the facts mentioned in Note 5 - Discontinued Operations and Note 10 - Goodwill and Intangible Assets, prior to assessing the goodwill for impairment, the Company evaluated whether the long-lived assets of the Grid business were impaired. As the Company had not yet made a final decision between the two likely scenarios for the Grid business as of June 30, 2014, the Company assessed the realizability of long-lived assets using cash flows associated with two scenarios for this reporting unit (i.e. sale or wind down of the Grid business). The Company applied a probability weighting of two potential scenarios: cashflows from a wind down of the business versus cashflows from a potential sale of the Grid business. The wind down scenario also included an assessment of the residual value of the Grid business’ long-lived assets. The results of this analysis showed that the carrying value of the Grid business’ long-lived assets exceeded their fair value and accordingly the Company recorded a write down of property, equipment and other assets of $687,000 during the quarter ended June 30, 2014. This impairment charge has been reported as part of the discontinued operations for the year ended December 31, 2014. |
Acquisitions |
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Acquisitions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combination Disclosure [Text Block] | 4. Acquisitions On August 15, 2014, the Company purchased 100% of the outstanding shares of Lumewave, Inc. (“Lumewave”). The acquisition was aimed at expanding the Company’s outdoor lighting business. The purchase price consisted of $1.8 million in cash paid at closing and $715,000 in common stock of the Company distributed at closing. Additionally, if certain gross margin targets for the Lumewave business were achieved during the period from August 16, 2014 through August 15, 2016, an additional $1.3 million in consideration would have been payable to the selling shareholders of Lumewave. The fair value of this additional consideration was $925,000 as of September 30, 2014. The purchase price was subject to adjustment based on the final working capital balances. As a result of the final agreed-upon working capital balances, the selling shareholders agreed to repay $225,000, which was received by the Company during the quarter ended December 31, 2014. The cash purchase price was adjusted for this $225,000 working capital adjustment. The assets acquired and liabilities assumed are reflected in the Company’s consolidated balance sheet at December 31, 2016, and the results of operations of Lumewave are included in the consolidated statements of operations since August 16, 2014. The following table summarizes the purchase price allocation based on estimated fair values of assets acquired and liabilities assumed at the acquisition date (amounts in thousands):
Identifiable intangible assets include $800,000 in developed technology, $500,000 in customer relationships, and $200,000 for trade names. The identifiable intangible assets are being amortized over a period of 6.5 years. Transaction costs associated with the acquisition were not material. The method used to value the identified intangibles was an income method approach which incorporated a discount rate ranging from 21% to 22%. Pro forma information for this acquisition is not presented as the results of the acquired business are not material to the Company’s consolidated financial statements. The contingent consideration was measured at fair value based on management’s estimate of achieving the specified targets and discounted to its then present value of $925,000. The contingent consideration was payable in a combination of cash and the Company’s common stock. Both the fair value of the cash and equity portions of the contingent consideration were recorded as a liability and were remeasured each reporting period, with any change in their fair values recorded to earnings. The equity component of the contingent consideration was ultimately intended to be settled by issuing additional equity upon final determination of the targets being achieved.The number of shares to be issued was to be based on the average closing price of the Company's stock during the six days prior to the acquisition date. As of December 31, 2015, the fair value of the contingent consideration was $318,000, and was recorded in accrued liabilities in the Company's consolidated balance sheets. During the quarter ended December 31, 2015, the Company determined that it was no longer probable that the targets specified in the purchase agreement would be met at a level requiring a full payout of the contingent consideration. Accordingly, the Company reduced the associated liability to management's best estimate of the fair value as of December 31, 2015. This resulted in a $577,000 adjustment, which was recorded as a reduction to general and administrative expenses in the Company's consolidated statements of operations. The remaining change in contingent consideration was due to amortization of interest on the contingent consideration. During the quarter ended March 31, 2016, the contingent consideration decreased by approximately $318,000. This reduction was due to the Company's determination that it was no longer probable that the minimum targets specified in the purchase agreement would be met due to sales force transitions and scheduling delays for some of our larger lighting projects. Accordingly, the Company reduced the associated liability to $0 as of March 31, 2016. This resulted in a $318,000 adjustment, which was recorded as a reduction to general and administrative expenses in the Company's consolidated statements of operations. |
Discontinued Operations |
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Discontinued Operations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | 5. Discontinued Operations During 2014, the Company announced that it had reached an agreement to sell its Grid business in order to focus on its IIoT business and on future opportunities in this market. On September 30, 2014, the Company completed the sale of its Grid business to S&T AG ("S&T"), a publicly traded European IT systems provider. The consideration received for the sale of the Grid business totaled approximately $4.9 million. The Company also entered into a sub-lease arrangement as well as a supply arrangement for a component of the technology sold to S&T. The supply arrangement has a term of 39 months and the sub-lease agreement concluded during the fourth quarter of 2015 in conjunction with the Company's cancellation of its headquarters facility leases. Both the supply agreement and the sub-lease agreement has been considered indirect cashflows as they were deemed to be insignificant. After the impairment charges taken in the second quarter of 2014 (see Notes 3 and 10), and net of transaction costs, the sale of the Grid business resulted in a loss of $254,000, recorded as loss on sale of discontinued operations for the year ended December 31, 2014. The assets and liabilities of the Company's Grid division joint venture (see Note 18) were not included in the sale to S&T. As of December 31, 2014, the Company was in the process of negotiating the sale of the joint venture's remaining net assets and recorded the assets and liabilities of the joint venture at the lower of their carrying amount or fair value less cost to sell and had classified them as held for sale on the Company's consolidated balance sheets. The remaining asset and liabilities principally relate to deferred revenues and the related deferred costs of sales, and accrued liabilities. As of December 31, 2015, the Company determined that the joint venture's remaining net assets would not be sold. As such, they were removed from held for sale. As a result of restructuring activities during the third quarter of 2014, a total of $1.4 million of restructuring costs is included in loss from discontinued operations for the year ended December 31, 2014. All of this amount was paid as of September 30, 2015. The Company has classified the results of operations of the Grid business as discontinued operations for the year ended December 31, 2014. There was no activity related to the Grid business during the years ended December 31, 2016, and 2015. The table below provides a summary of the components of the net loss from discontinued operations for 2014 and excludes certain shared overhead costs that were previously allocated to the Grid segment as ASC 205-20 prohibits the allocation of general overhead costs to discontinued operations.
(1) Includes related party amounts of $112,000 for the year ended December 31, 2014. The sale agreement contains certain indemnification provisions related to the Grid business whereby the Company may have obligations related to the period it owned the Grid business. The Company believes the estimated fair value of these indemnification provisions are minimal and accordingly, no liability is recorded for these indemnifications as of December 31, 2016. |
Accumulated Other Comprehensive Income (Loss) |
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Accumulated Other Comprehensive Loss | . Accumulated Other Comprehensive Loss
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Stockholders' Equity and Employee Stock Option Plans |
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Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity and Employee Stock Option Plans | . Stockholders’ Equity and Employee Stock Option Plans (a) Reverse Stock Split On December 7, 2015, the Company implemented a 1-for-10 reverse stock split. All share information contained within this report, including the accompanying consolidated financial statements and footnotes, have been retroactively adjusted to reflect the effects of the reverse stock split. (b) Preferred Stock As of December 31, 2016, the Company was authorized to issue 5,000,000 shares of $0.01 par value preferred stock, of which none was outstanding. (c) Common Stock As of December 31, 2016, the Company was authorized to issue 10,000,000 shares of $0.01 par value common stock, of which 4,431,736 were outstanding. (d) Tax Benefit Preservation Plan On April 22, 2016, the Company announced that its Board of Directors (the “Board”) had adopted a Tax Benefit Preservation Plan (the “Tax Plan”) pursuant to which the Board authorized and declared a dividend distribution of one right (a “Right”) for each outstanding share of common stock of the Company to stockholders of record as of the close of business on May 6, 2016. Each Right entitles the registered holder to purchase from the Company one one-thousandth of a share of Series A Participating Preferred Stock, par value $0.01 per share, exercisable, except in certain circumstances, in the event that a person or group of affiliated or associated persons obtain beneficial ownership of 4.99% or more of the outstanding shares of the Company's common stock. The complete terms of the Rights are set forth in the Tax Plan, dated as of April 22, 2016, between the Company and Computershare Inc., as rights agent, and filed with the Securities and Exchange Commission on April 26, 2016. By adopting the Plan, the Board is helping to preserve the value of certain deferred tax benefits, including those generated by net operating losses (collectively, the “Tax Benefits”), which could be lost in the event of an “ownership change” as defined under Section 382 of the Internal Revenue Code of 1986, as amended (the “Code”). The Plan reduces the likelihood that changes in the Company’s investor base will have the unintended effect of limiting the Company’s use of its Tax Benefits. The Board has established procedures to consider requests to exempt certain acquisitions of the Company’s securities from the Plan if the Board determines that it is in the best interests of the Company. Until they become exercisable, the Rights are inseparable from and trade with the Company's shares of common stock. The Rights have a de minimus fair value. The Tax Plan expires April 25, 2017. (e) Stock Option Programs The Company grants equity compensation awards under the 2016 Equity Incentive Plan (the "2016 Plan") and the 2016 Inducement Equity Incentive Plan (the "2016 Inducement Plan"). Prior to adoption of these Plans in 2016, the Company granted equity compensation awards under the 1997 Stock Plan (the “1997 Plan”), which terminated as of October 4, 2016. A more detailed description of each of the Plans can be found below. Stock option and other equity compensation grants are designed to reward employees, officers, directors, and certain non-employee consultants for their long-term contribution to the Company, to align their interest with those of the Company's stockholders in creating stockholder value, and to provide incentives for them to remain with the Company. The number and frequency of equity compensation grants is based on competitive practices, operating results of the Company, and accounting regulations. Historically, the Company has issued new shares upon the exercise of stock options. However, treasury shares are also available for issuance, although the Company does not currently intend to use treasury shares for this purpose. 2016 Equity Incentive Plan In October 2016, the Company adopted the 2016 Equity Incentive Plan for employees, officers, directors, and non-employee consultants. In setting the initial share reserve under the 2016 Plan of 500,000 shares, the Company considered the number of outstanding awards and forecasted grants under the Plan. In addition to the initial share reserve of 500,000 shares, the 2016 Plan also includes any shares subject to awards under the 1997 Plan that, after the termination of the 1997 Plan, expire or otherwise terminate without having vested or without having been exercised in full and any shares issued pursuant to awards granted under the 1997 Plan that are forfeited to or repurchased by the Company. As of December 31, 2016, there were a total of 1.2 million shares of Common Stock reserved for issuance under the 2016 Plan, of which 687,036 were subject to outstanding awards and 502,825 shares remained available for new awards under the Plan. Stock options granted under the 2016 Plan generally have a term of 10 years, and the exercise price of said stock options is determined by the Board of Directors (or a Committee of the Board of Directors), and, except for limited circumstances, will be at least equal to 100% of the fair market value per share of common stock on the date of grant (or at least 110% of such fair market value for an incentive stock option granted to a stockholder with greater than 10% voting power of all stock). Options and awards generally vest ratably over 2 to 3 years. The 2016 Plan also allows for the issuance of stock purchase rights and options that are immediately exercisable through execution of a restricted stock purchase agreement. Shares purchased pursuant to a stock purchase agreement may (but are not required to) be subject to vesting conditions, and the shares acquired may not be transferred by the participant until the vesting conditions (if any) are satisfied. In the event of termination of employment, the Company, at its discretion, may repurchase unvested shares at a price equal to the original issuance price. In addition, the 2016 Plan allows for the issuance of stock appreciation rights (“SARs”), restricted stock units (“RSUs”), and Performance Units and Performance Shares. SARs are rights to receive, in cash or shares of the Company's common stock, as designated on the grant date, the appreciation in fair market value of common stock between the exercise date and the date of grant. SARs may be granted alone or in tandem with options. The exercise price of a SAR will be at least equal to 100% of the fair market value per share of common stock on the date of grant. RSUs, Performance Units, and Performance Shares are awards that result in a payment to a participant, generally in the form of an issuance of shares of the Company's common stock, at such time as specified performance goals or other vesting criteria are achieved or the awards otherwise vest. RSUs, Performance Units, and Performance Shares issued by the Company generally vest in equal, annual installments over 4 years. In addition, certain of these awards have additional financial-based performance requirements that must be met before vesting can occur. Awards with performance-based vesting conditions expire no later than the 5 year anniversary of the grant date if the performance criteria have not been met. 2016 Inducement Equity Incentive Plan On April 20, 2016, the Company filed a Registration Statement on Form S-8 with the Securities and Exchange Commission to register 250,000 shares of common stock to be issued pursuant to the 2016 Inducement Plan. The purpose of the Inducement Plan is to facilitate the Company's ability to attract and retain the best available new hires by providing an inducement to such individual entering into employment with the Company or subsidiary of the Company. The Inducement Plan permits the grant of nonstatutory stock options, restricted stock, restricted stock units, stock appreciation rights, performance units, and performance shares, each with terms similar to those governed by the previously discussed 2016 Plan. Each award under the Inducement Plan is intended to qualify as an employment inducement award under NASDAQ Listing Rule 5635(c)(4). As of December 31, 2016, there were a total of 250,000 shares of Common Stock reserved for issuance under the 2016 Inducement Plan, of which 150,000 were subject to outstanding awards and 100,000 shares remained available for new awards under the Plan. 1997 Stock Plan (terminated October 4, 2016) During 1997, the Company adopted the 1997 Stock Plan for employees, officers, directors, and non-employee consultants, which was amended and restated in May 2004, and further amended and restated in April 2013. During 2013, the Board determined that it was in the best interest of the Company and the stockholders to amend and restate the Plan. In setting the share reserve under the amended Plan, the Company considered the number of outstanding awards and forecasted grants under the Plan. As of March 31, 2013 a total of 2,097,283 shares of its Common Stock were reserved for issuance under the Plan, of which 550,540 shares were subject to outstanding awards and 1,546,743 shares remained available for new awards under the Plan. Upon approval of the amended Plan by the shareholders, the total number of shares issuable under the Plan after March 31, 2013, was reduced from 2,097,283 to 1,090,540, including the 550,540 shares subject to current outstanding awards plus an additional 540,000 shares for future new awards. In determining the size of the share reserve, the Company took into account historical grant practices and the rate of granting equity awards (“burn rate”). As discussed above, the 1997 Plan was terminated on October 4, 2016. As of the termination date, all outstanding awards granted under the 1997 Plan were transferred to the 2016 Plan. However, they will continue to be governed by the terms of the 1997 Plan. Under the 1997 Plan, incentive stock options to purchase shares of common stock were eligible to be granted at not less than 100% of the fair market value. Options granted from May 6, 2003 to March 31, 2013, generally have a term of 5 years from the date of grant. All other options granted generally have a term of 10 years. The exercise price of stock options granted under the 1997 Plan is determined by the Board of Directors (or a Committee of the Board of Directors), but were at least equal to 100% of the fair market value per share of common stock on the date of grant (or at least 110% of such fair market value for an incentive stock option granted to a stockholder with greater than 10% voting power of all stock), except that up to 10% of the aggregate number of shares reserved for issuance under the 1997 Plan (including shares that have been issued or are issuable in connection with options exercised or granted under the 1997 Plan) were available have exercise prices that are from 0% to 100% of the fair market value of the common stock on the date of grant. Options generally vested ratably over four years. The 1997 Plan also allowed for the issuance of stock purchase rights and options that were immediately exercisable through execution of a restricted stock purchase agreement. Shares purchased pursuant to a stock purchase agreement generally vested ratably over 4 years. In the event of termination of employment, the Company, at its discretion, may repurchase unvested shares at a price equal to the original issuance price. In addition, the 1997 Plan allowed for the issuance of stock appreciation rights (“SARs”), restricted stock awards (“RSAs”), and restricted stock units (“RSUs”). SARs are rights to receive, in cash or shares of the Company's common stock, as designated on the grant date, the appreciation in fair market value of common stock between the exercise date and the date of grant. To date, the Company has only issued SARs that can be settled in shares of the Company's common stock. SARs may be granted alone or in tandem with options. The exercise price of a SAR will be at least equal to 100% of the fair market value per share of common stock on the date of grant. SARs issued by the Company generally vest in equal, annual installments over 4 years, and expire on the 5 year anniversary of the grant date. RSUs and RSAs are awards that result in a payment to a participant, generally in the form of an issuance of shares of the Company's common stock, at such time as specified performance goals or other vesting criteria are achieved or the awards otherwise vest. RSUs and RSAs issued by the Company generally vest in equal, annual installments over 4 years. In addition, certain of these RSU and RSA grants have additional financial-based performance requirements that must be met before vesting can occur. RSUs and RSAs with performance-based vesting conditions expire no later than the 5 year anniversary of the grant date if the performance criteria have not been met. (d) Stock Award Activity The following table summarizes stock award activity under all plans for the years ended December 31, 2016, 2015, and 2014:
The total intrinsic value of options and SARs exercised during the years ended December 31, 2016, 2015, and 2014, was approximately $0, $0, and $3,000, respectively. During the years ended December 31, 2016, and 2015, no options or SARs were exercised. The intrinsic value is calculated as the difference between the market value on the date of exercise and the exercise price of the shares. The following table provides additional information regarding RSU and RSA activity for the years ended December 31, 2016, 2015, and 2014:
The fair value of each RSU and RSA granted to employees was estimated on the date of grant by multiplying the number of shares granted times the fair market value of the Company's stock on the grant date. The total intrinsic value of RSUs and RSAs vested and released during the years ended December 31, 2016, 2015, and 2014 was approximately $118,000, $379,000, and $1.2 million, respectively. The intrinsic value of vested and released RSUs and RSAs is calculated by multiplying the fair market value of the Company's stock on the vesting date by the number of shares vested. As of December 31, 2016, the number of RSUs and RSAs outstanding and expected to vest was 331,163, with a total intrinsic value of $1.6 million. The intrinsic value of the outstanding and expected to vest RSUs and RSAs is calculated based on the market value of the Company's closing stock price of $4.70 as of December 30, 2016, the last market trading day of 2016. The following table provides additional information for significant ranges of outstanding and exercisable stock options and SARs as of December 31, 2016:
The aggregate intrinsic value in the preceding table represents the total pretax intrinsic value, based on the Company's closing stock price of $4.70 as of December 30, 2016, which would have been received by the option holders had all option holders exercised their options as of that date. |
Stock Based Compensation |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | . Stock-based Compensation (a) Valuation of Options, SARs, and RSUs Granted The Company has elected to use the Black-Scholes-Merton ("BSM") option-pricing model to estimate the fair value of stock options and SARs that it grants. The BSM model incorporates various assumptions including volatility, expected term of the option from the date of grant to the time of exercise, risk-free interest rates, and dividend yields. The weighted average fair value of options and SARs granted during the years ended December 31, 2016, 2015, and 2014, was $2.55, $4.54, and $14.70, respectively, and was determined using the following weighted average assumptions:
The expected dividend yield reflects the fact that the Company has not paid any dividends in the past and does not currently intend to pay dividends in the foreseeable future. The risk-free interest rate assumption is based on U.S. Treasury yields in effect at the time of grant for the expected term of the option. The expected volatility is based on both the historical volatility of the Company's common stock over the most recent period commensurate with the expected life of the option as well as on implied volatility calculated from the market traded options on the Company's stock. The expected term has been calculated by applying the simplified method calculation to the 10-year term option grants made during 2014, 2015, and 2016, as the Company does not have relevant and adequate exercise history for such options. Prior to this, the expected term had been calculated by applying a Monte Carlo simulation model that incorporated the Company's historical data on post-vest exercise activity and employee termination behavior. The grant date fair value of RSUs and RSAs granted to employees is determined by multiplying the fair market value of the Company's stock on the grant date times the number of RSUs and RSAs awarded. During the years ended December 31, 2016, 2015 and 2014, the Company issued a limited number of RSUs to non-employee consultants. The final measurement date for these awards is determined at the earlier of the date at which a commitment for performance by the consultant to earn the RSUs is reached, or the date at which the consultant's performance necessary for the RSUs to vest has been completed. Between the date of issuance and the final measurement date, which is expected to be the date the consultants' performance is complete and the awards vest, the awards are remeasured based on the fair market value of the Company's stock at each reporting date. During the year ended December 31, 2016, awards granted to non-employee consultants and the related share-based payment expense was not significant. (b) Equity Compensation Expense for RSUs and RSAs with Financial or other Performance-Based Vesting Requirements As of December 31, 2016, and 2015, there were no equity compensation awards outstanding that contained financial or other performance-based vesting requirements. As of December 31, 2014, there were 70,080 non-vested RSUs and RSAs that were granted in 2010, 2011, and 2014 which were subject to service-based vesting conditions as well as certain financial or other performance-based vesting requirements that must be achieved before vesting can occur. The following table contains pertinent information regarding these outstanding awards as of December 31, 2014 (in thousands except for number of awards granted):
Through June 30, 2012, cumulative compensation expense of $264,000 associated with the 13,000 unvested RSUs and RSAs granted in 2010 and 2011 had been recognized. From the date of grant through June 30, 2012, the Company had believed it was probable that the associated performance requirements would be achieved and therefore recognized expense on these awards. During the third quarter of 2012, the Company believed that the performance condition was no longer probable of achievement, however the Company had also not yet determined that the performance condition was improbable of achievement. Accordingly, expense recognition was discontinued beginning in the third quarter of 2012. As of December 31, 2013, the Company determined that the performance condition was improbable of achievement and therefore the cumulative compensation expense of $264,000 associated with these awards was reversed in the quarter ended December 31, 2013. No further compensation expense associated with these awards has been recorded. These awards expired unvested in April 2015. In addition to the awards issued in 2010 and 2011, there were 95,330 non-vested RSAs as of December 31, 2014 with a grant date fair value of $2.3 million that were granted on June 10, 2014, which were also subject to service-based vesting conditions as well as certain performance-based vesting requirements that must be achieved before vesting can occur. These awards vested over a nine month period ending March 14, 2015, provided the performance conditions were met as of December 31, 2014. Of these RSAs issued in June 2014, 30,200 awards with a total fair value of approximately $743,000 were granted to employees of the Grid business. As of September 30, 2014, in conjunction with the sale of the Grid business, the Company reversed all compensation expense previously recognized associated with these awards as they will not vest. Additionally, as of December 31, 2014, 8,050 awards with a grant date fair value of approximately $198,000 were granted to employees who terminated their employment during 2014. Accordingly, the Company reversed all compensation expense previously recognized associated with these awards as they will not vest. As of December 31, 2014, the Company determined that the performance conditions associated with a portion of the remaining unvested awards with a grant date fair value of $965,000 would not be achieved and therefore any previously recorded expense associated with these awards was reversed and no additional expense was recorded during the year ended December 31, 2014. c) Expense Allocation Compensation expense for all share-based payment awards has been recognized using the multiple-option approach. As discussed in Note 1, during the fourth quarter of 2016, the Company elected to early adopt ASU 2016-09, Compensation – Stock Compensation (Topic 718), with retrospective application to January 1, 2016, the beginning of the annual period that includes the interim period of adoption. The primary impact of adoption was to the Company's accounting policy for forfeited equity compensation awards. Prior to the adoption of ASU 2016-09, the Company's stock-based compensation expense was calculated using an estimated forfeiture rate. Following the adoption, the Company recognizes the impact of forfeitures on stock-based compensation expense as they occur. As stock-based compensation expense recognized in the consolidated statements of operations for the years ended December 31, 2015, and 2014 is based on awards ultimately expected to vest, it was reduced for estimated forfeitures, which were estimated based on historical experience. As of December 31, 2016, total compensation cost related to non-vested stock options and other equity based awards not yet recognized was $1.9 million, which is expected to be recognized over the next 1.2 years on a weighted-average basis. The following table summarizes stock-based compensation expense for the years ended December 31, 2016, 2015, and 2014 and its allocation within the consolidated statements of operations (in thousands):
As of December 31, 2016, and 2015, stock-based compensation expense capitalized as part of the cost of inventory and deferred cost of goods sold was immaterial. |
Significant Customers |
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Risks and Uncertainties [Abstract] | |||||||||||||||||||||||||||||||||||||||||||
Significant Customers | Significant Customers The Company markets its products and services throughout the world to original equipment manufacturers (OEMs) and systems integrators in the building, industrial, transportation, utility/home, and other automation markets. During the years ended December 31, 2016, 2015 and 2014, the Company had two customers that accounted for a significant portion of its revenues: Avnet Europe Comm VA (“Avnet”), the Company’s primary distributor of its IIoT products in Europe and Japan, and Enel Distribuzione Spa ("Enel"), an Italian utility company. For the years ended December 31, 2016, 2015 and 2014, the percentage of the Company’s revenues attributable to sales made to these customers was as follows:
Avnet is an indirect subsidiary of Avnet, Inc., a New York corporation, which is a distributor of electronic parts, enterprise computing and storage products, and embedded subsystems. Our agreement with Avnet renews automatically on May 31 of each year unless either party, in its sole discretion, gives notice of its desire not to renew at least 90 days before the expiration of the then current term. We do not currently expect additional shipments to Enel. As such, we expect our revenues from Enel will decrease significantly in 2017 as compared to 2016. |
Goodwill and Intangible Assets |
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Goodwill and Intangible Assets Disclosure [Text Block] | 10. Goodwill and Intangible Assets Goodwill The carrying amount of goodwill as of December 31, 2015, and 2014 relates to four acquisitions, including ARIGO Software GmbH (“ARIGO”) in 2001, BeAtHome in 2002, MTC in 2003, and Lumewave, Inc. in 2014. The goodwill acquired as part of the ARIGO transaction is valued in Euros, and is therefore subject to foreign currency translation gains and losses. The changes in the carrying amount of goodwill, net, for the years ended December 31, 2015 and 2014 are as follows (in thousands):
2014 Goodwill Impairment - Effective in the fourth quarter of 2013, the Company changed the way it managed the business and re-organized to focus the business on two operating segments - Grid and IIoT. As a result, the Company, with the assistance of an external service provider, reallocated goodwill of the Company to the Grid and IIoT operating segments using a relative fair value approach. Each operating segment's fair value was determined based on comparative market values and discounted cash flows. There was no indication of impairment when goodwill was reallocated to the new operating segments, as the respective fair values of each substantially exceed their carrying values (including goodwill) as of December 31, 2013. For the quarter ended June 30, 2014, the Company concluded there were indicators of potential goodwill impairment for the Company’s Grid business, including continued weakness and increased uncertainty in the Grid market; changes in the extent and manner of use of the unit's long-lived assets; and changes in our long-term strategy for the Grid business. As a result of identifying indicators of impairment, the Company performed an impairment test of goodwill as of June 30, 2014. In performing Step 1 of the impairment test, the Company estimated the fair value of the reporting unit using the income approach. The income approach is based on a discounted cash flow analysis and calculates the fair value of the reporting unit by estimating the after-tax cash flows attributable to the reporting unit and then discounting the after-tax cash flows to a present value, using a weighted average cost of capital (“WACC”). The cash flows used in the income approach were based on two scenarios, cash flows associated with a winding down of the business and cash flows associated with a sale of the business. Management's assumptions included forecasted revenues and operating income for the wind down scenario and estimated proceeds from the sale of the business based on known third-party interest. We calculated the fair value for the Grid business by using a probability weighted average of the estimated fair value from both scenarios, with significantly higher weight placed on the wind down scenario. Ultimately, in the third quarter of 2014, the Company was able to locate a buyer for the Grid business during the third quarter of 2014, which led to the disposition of the business on September 30, 2014. Based on the above analysis, it was determined that the carrying value of the Grid business, including goodwill, exceeded the fair value of the reporting unit, requiring the Company to perform Step 2 of the goodwill impairment test to measure the amount of impairment loss, if any. In performing Step 2 of the goodwill impairment test, the Company compared the implied fair value of the reporting unit’s goodwill to its carrying value of goodwill. This test resulted in a non-cash, goodwill impairment charge of $3.4 million and a write-off of all goodwill associated with the Grid division, which was recognized during the three months ended June 30, 2014. This impairment has been reported as part of the discontinued operations results for the year ended December 31, 2014. As a result, the Company had no goodwill remaining related to the Grid business, with the entire remaining goodwill balance of $5.9 million at December 31, 2014, being attributable to the IIoT reporting unit. 2015 Goodwill Impairment - During the quarter ended December 31, 2015, the Company concluded there were indicators of a potential goodwill impairment, resulting primarily from a continued decline in the Company's stock price and other market indicators, as well as a change in the Company's forecast for certain revenue streams. As a result of these indicators of impairment, the Company performed an impairment test of goodwill as of December 31, 2015. As a result of the sale of the Grid business, the Company operates as one reporting unit. In performing Step 1 of the impairment test, the Company estimated the fair value of the reporting unit using a combination of approaches, including, among others, the income approach and the market approach. We calculated the fair value for the Company by using a weighted average of the various approaches, with significantly higher weight placed on the market approach. Based on this analysis, it was determined that the carrying value of the business, including goodwill, exceeded the fair value of the reporting unit, requiring the Company to perform Step 2 of the goodwill impairment test to measure the amount of impairment loss, if any. In performing Step 2 of the goodwill impairment test, the Company compared the implied fair value of the reporting unit’s goodwill to its carrying value of goodwill. This test resulted in a non-cash, goodwill impairment charge of $5.7 million, which was recognized during the three months ended December 31, 2015. As a result, the Company no longer has has any goodwill remaining on its balance sheet as of December 31, 2015. Identifiable Intangible Assets The Company's identifiable intangible assets as of December 31, 2016, relate to the acquisition of Lumewave, Inc. in August 2014 (see Note 4 for additional details). The identifiable intangible assets include $800,000 in developed technology, $500,000 in customer relationships, and $200,000 for trade names. The changes in the carrying amount of identifiable intangible assets, net for the years ended December 31, 2016 and 2015 is as follows (in thousands):
Intangible assets other than goodwill are amortized on a straight-line basis over the following estimated remaining useful lives. The following table presents the details of the Company's finite-lived intangible assets as of December 31, 2016 (in thousands, except for weighted-average remaining useful life):
The following table presents the amortization of finite-lived intangible assets included in the consolidated statements of operations for the years ended December 31, 2016, 2015, and 2014 (in thousands):
The following table presents the estimated future amortization of finite-lived intangible assets as of December 31, 2016 (in thousands):
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Commitments and Contingencies |
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Commitments And Contingencies | . Commitments and Contingencies (a) Lease Commitments The Company leases facilities under operating leases for its personnel located within the United States and in several foreign countries throughout Europe and Asia. These operating leases expire on various dates through 2019, and in some instances are cancelable with advance notice. Lastly, the Company also leases certain equipment and, for some of its sales personnel, automobiles. These operating leases are generally less than five years in duration. As of December 31, 2016, future minimum lease payments under all operating leases were as follows (in thousands):
Although certain of the operating lease agreements provide for escalating rent payments over the term of the lease, rent expense under these agreements is recognized on a straight-line basis. As of December 31, 2016, the Company has accrued approximately $193,000 of deferred rent related to these agreements, of which approximately $59,000 is reflected in current liabilities while the remainder is reflected in other long-term liabilities in the accompanying consolidated balance sheets. As of December 31, 2015, the Company had accrued approximately $112,000 of deferred rent related to its lease agreements, of which approximately $15,000 is reflected in current liabilities while the remainder is reflected in other long-term liabilities in the accompanying consolidated balance sheets. As discussed in Note 5 - Discontinued Operations, in conjunction with the sale of its Grid division, the Company entered into a sublease with S&T for a portion of its corporate headquarters facility. As of December 31, 2015, the sublease was cancelled in conjunction with the Company's termination of its main headquarters leases as discussed in Note 3. The components of net rent expense for all operating leases for the years ended December 31, 2016, 2015, and 2014, were as follows (in thousands):
(b) Royalties The Company has certain royalty commitments associated with the shipment and licensing of certain of its products. Royalty expense is generally based on a dollar amount per unit shipped or a percentage of the underlying revenue. Royalty expense, which is recorded as a component of cost of revenues in the Company's consolidated statements of operations, was approximately $264,000, $390,000, and $500,000 for the years ended December 31, 2016, 2015, and 2014, respectively. During the year ended December 31, 2014, royalty expense reported in discontinued operations was approximately $1,000. The Company will continue to be obligated for royalty payments in the future associated with the shipment and licensing of certain of its products. The Company is currently unable to estimate the maximum amount of these future royalties. However, such amounts will continue to be dependent on the number of units shipped or the amount of revenue generated from these products. (c) Guarantees In the normal course of business, the Company provides indemnifications of varying scope to its customers against claims of intellectual property infringement made by third parties arising from the use of its products. Historically, costs related to these indemnification provisions have not been significant. However, the Company is unable to estimate the maximum potential impact of these indemnification provisions on its future results of operations. As permitted under Delaware law, the Company has entered into agreements whereby it indemnifies its officers and directors for certain events or occurrences while the officer or director is, or was serving, at the Company's request in such capacity. The indemnification period covers all pertinent events and occurrences during the officer's or director's lifetime. The maximum potential amount of future payments the Company could be required to make under these indemnification agreements is unlimited. However, the Company has directors and officers insurance coverage that would enable it to recover a portion of any future amounts paid. The Company believes the estimated fair value of these indemnification agreements in excess of the applicable insurance coverage is minimal, if any. (d) Taxes The Company conducts operations in many tax jurisdictions throughout the world. In many of these jurisdictions, non-income based taxes such as property taxes, sales and use taxes, and value-added taxes are assessed on the Company's operations in that particular location. While the Company strives to ensure compliance with these various non-income based tax filing requirements, there have been instances where potential non-compliance exposures have been identified. In accordance with accounting principles generally accepted in the United States of America, the Company makes a provision for these exposures when it is both probable that a liability has been incurred and the amount of the exposure can be reasonably estimated. To date, such provisions have been immaterial, and the Company believes that, as of December 31, 2016, it has adequately provided for such contingencies. However, it is possible that the Company's results of operations, cash flows, and financial position could be harmed if one or more non-compliance tax exposures are asserted by any of the jurisdictions where the Company conducts its operations. (e) Legal Actions From time to time, in the ordinary course of business, the Company may be subject to other legal proceedings, claims, investigations, and other proceedings, including claims of alleged infringement of third-party patents and other intellectual property rights, and commercial, employment, and other matters. In accordance with generally accepted accounting principles, the Company makes a provision for a liability when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. These provisions are reviewed at least quarterly and adjusted to reflect the impacts of negotiations, settlements, rulings, advice of legal counsel, and other information and events pertaining to a particular case. While the Company believes it has adequately provided for such contingencies as of December 31, 2016, the amounts of which were immaterial, it is possible that the Company’s results of operations, cash flows, and financial position could be harmed by the resolution of any such outstanding claims. Line of Credit Until December 2014, the Company maintained a $5.0 million line of credit with its primary bank. The line of credit was secured by a collateral of the first priority on $6.3 million of the Company's investments placed in a separate account. In December 2014, the Company cancelled this line of credit. It continues to maintain an operating credit line of $1.0 million with its primary bank for company credit card purchases. This line of credit is secured by a collateral of the first priority on $1.3 million of the Company's investments (presented as restricted investments in the consolidated balance sheets). The restricted investments are classified as current assets due to the contractual duration of the underlying credit agreement. |
Income Taxes |
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Income Tax Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes | 12. Income Taxes The provision for income taxes attributable to continuing operations is based upon loss from continuing operations before provision for income taxes as follows (in thousands):
There were no income taxes attributable to discontinued operations in any of the periods presented. The provision for income taxes consists of the following (in thousands):
The provision for income taxes differs from the amount estimated by applying the statutory Federal income tax rate to loss before taxes as follows (in thousands):
As of December 31, 2016 and 2015, a valuation allowance has been recorded against 100% of the net deferred tax asset. A valuation allowance is recognized if, based on the weight of the available evidence, it is more likely than not that some portion or all of the deferred tax asset will not be realizable in a particular tax jurisdiction. All available evidence, both positive and negative, is considered to determine whether, based on the weight of that evidence, a valuation allowance is needed for some portion or all of a deferred tax asset. The Company determined that it is more likely than not that it will not realize a benefit from its United States deferred tax assets based on historical cumulative losses incurred in the United States. Therefore, a valuation allowance has been maintained on all deferred tax assets. The components of the net deferred income tax asset are as follows (in thousands):
As of December 31, 2016, part of the Company's valuation allowance on deferred tax assets pertains to certain tax credits and net operating loss carry forwards. In the future, it will reduce the valuation allowance associated with these credits and losses upon the earlier of the period in which it utilizes them to reduce the amount of income tax it would otherwise be required to pay on its income tax returns, or when it becomes more likely than not that the deferred tax assets are realizable. In addition, the Internal Revenue Code of 1986, as amended, contains provisions that limit the net operating loss and credit carry forwards available for use in any given period upon the occurrence of certain events, including a significant change in ownership interests. The Company performed an analysis of the ownership changes in 2016. Based on the analysis, the Company did not experience any ownership change that would limit its net operating loss and credit carry forwards. The Company's net operating loss and credit carry forwards may be limited if ownership changes occur in future periods. In general, a corporation that undergoes an "ownership change" under Section 382 of the Internal Revenue Code is subject to limitations on its ability to utilize its pre-change net operating loss carry forwards (NOLs) to offset future taxable income and its ability to utilize tax credit carry forwards. As of December 31, 2016, the Company had net operating loss carry forwards of $256.8 million for federal income tax reporting purposes and $118.5 million for state income tax reporting purposes, which expire at various dates through 2036. In addition, as of December 31, 2016, the Company had approximately $11.2 million and $16.2 million of tax credit carry forwards for increased research expenditures for federal and California purposes, respectively. The federal research tax credits will expire at various dates if not utilized by 2036 and the state tax credit can be carried over indefinitely. In accordance with current Internal Revenue Code rules, federal net operating loss carry forwards must be utilized in full before federal research and development tax credits can be used to offset current tax liabilities. As a result, depending on the Company's future taxable income in any given year, some or all of the federal research tax credits, as well as portions of the Company's federal and state net operating loss carry forwards, may expire before being utilized. Amounts held by foreign subsidiaries are generally subject to United States income taxation on repatriation to the United States. The Company currently intends to permanently reinvest its undistributed earnings from its foreign subsidiaries outside the United States and United States income taxes have not been provided on cumulative total earnings of $2.3 million. It is not practicable to determine the income tax liability that might be incurred if these earnings were to be distributed. The following is a rollforward of the Company's unrecognized tax benefits related to uncertain tax positions for the years ended December 31, 2016 and 2015 (in thousands):
Included in the balance of total unrecognized tax benefits at December 31, 2016 are potential benefits of $364,000, which if recognized, would affect the effective rate on income from continuing operations. On December 31, 2016, the Company had accrued interest and penalties related to the uncertain tax benefits of approximately $62,000. During 2016, the Company decreased the prior year balance by $12,000 due to lapses in statutes of limitations in certain foreign jurisdictions. During 2015 and 2014, the Company decreased the prior year balance by $25,000 and $35,000, respectively, due to foreign currency fluctuations, lapses in statutes of limitations, and changes in methodology. The Company recognizes interest and penalties related to unrecognized tax benefits as a component of income tax expense. The Company is subject to taxation in the United States and various state and foreign jurisdictions. In the United States, the tax years from 1997 remain open to examination by federal and most state tax authorities due to certain net operating loss and credit carryforward positions. In the foreign jurisdictions, the number of tax years open to examination by local tax authorities ranges from three to six years. As discussed in Note 1, the Company has elected to early adopt ASU 2016-09. The net operating loss carryover has been increased by the amount of windfall, which is offset in full by the valuation allowance. |
Warranty Reserves |
12 Months Ended |
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Dec. 31, 2016 | |
Warranty Reserves [Abstract] | |
Warranty Reserves | 13. Warranty Reserves When evaluating the reserve for warranty costs, management takes into consideration the term of the warranty coverage, the quantity of product in the field that is currently under warranty, historical return rates, and historical costs of repair. In addition, certain other applicable factors, such as technical complexity, may also be taken into consideration when historical information is not yet available for recently introduced products. Estimated reserves for warranty costs are generally provided for when the associated revenue is recognized. In addition, additional warranty reserves may be established when the Company becomes aware of a specific warranty related problem, such as a product recall. Such additional warranty reserves are based on the Company's current estimate of the total out-of-pocket costs expected to be incurred to resolve the problem, including, but not limited to, costs to replace or repair the defective items and shipping costs. The reserve for warranty costs was $245,000 as of December 31, 2016 and $120,000 as of December 31, 2015. Of the $245,000 balance as of December 31, 2016, $118,000 was included in accrued liabilities in the Company's consolidated balance sheet, with the remainder being included in other long-term liabilities. |
Related Parties |
12 Months Ended |
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Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
Related Parties | 14. Related Parties In June 2000, the Company entered into a stock purchase agreement with Enel pursuant to which Enel purchased 300,000 newly issued shares of its common stock for $130.7 million. The closing of this stock purchase occurred on September 11, 2000. At the closing, Enel had agreed that it would not, except under limited circumstances, sell or otherwise transfer any of those shares for a specified time period. That time period expired September 11, 2003. To the Company’s knowledge, Enel has disposed none of its 300,000 shares. Under the terms of the stock purchase agreement, Enel has the right to nominate one member of the Company’s board of directors. A representative of Enel served on the board until March 14, 2012; no Enel representative is presently on the board. At the time the Company entered into the stock purchase agreement with Enel, it also entered into a research and development agreement with an affiliate of Enel (the “R&D Agreement”). Under the terms of the R&D Agreement, the Company cooperated with Enel to integrate its LONWORKS technology into Enel’s remote metering management project in Italy, the Contatore Elettronico. The Company completed the sale of its components and products for the deployment phase of the Contatore Elettronico project during 2005. During 2006, the Company supplied Enel and its designated manufacturers with limited spare parts for the Contatore Elettronico system. In October 2006, the Company entered into a new development and supply agreement and a software enhancement agreement with Enel. Under the development and supply agreement, Enel and its contract manufacturers purchase additional electronic components and finished goods from the Company. Under the software enhancement agreement, the Company provided software enhancements to Enel for use in its Contatore Elettronico system. The software enhancement was assigned to S&T as part of the sale of our Grid division in September 2014. The development and supply agreement expired in December 2015, although delivery of products can extend beyond then and the agreement may be extended under certain circumstances. For the years ended December 31, 2016, 2015, and 2014, the Company recognized revenue from products and services sold to Enel and its designated manufacturers of approximately $1.3 million, $4.9 million, and $3.0 million, respectively. As of December 31, 2016 and 2015, $0 and $827,000 of the Company’s total accounts receivable balance related to amounts owed by Enel and its designated manufacturers, respectively. |
Restructuring |
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Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Activities Disclosure [Text Block] | Restructuring During the fourth quarter of 2016, the Company undertook restructuring actions affecting approximately 7 employees to be terminated between October 2016 and September 2017, as part of an overall plan to reshape the Company for the future. In connection with this restructuring, the Company recorded restructuring charges of approximately $286,000 related to termination benefits for these personnel during the year ended December 31, 2016. The following table sets forth a summary of restructuring activities related to the Company's 2016 restructuring program (in thousands):
On September 30, 2014, and again in the fourth quarter of 2014, in connection with the sale of the Grid business, the Company undertook restructuring actions affecting approximately 44 employees to be terminated between September 2014 and March 31, 2015, as part of the strategic plan to focus on the Company's IIoT business. In connection with this restructuring, the Company recorded restructuring charges as noted in the table below, of which $1.4 million was included in the net loss from discontinued operations for the year ended December 31, 2014. The following table sets forth a summary of restructuring activities related to the Company’s 2014 restructuring program in 2015 (in thousands):
The following table sets forth a summary of restructuring activities related to the 2014 restructuring program in 2014 (in thousands):
Accrued restructuring charges as of December 31, 2016 comprise the remaining liability balance from the 2016 restructuring and are reflected in accrued liabilities on the Company’s consolidated balance sheet as of December 31, 2016. |
Valuation and Qualifying accounts |
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Schedule of Valuation and Qualifying Accounts Disclosure [Text Block] | 16. Valuation and Qualifying Accounts (in thousands)
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Segment Disclosure |
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Segment Disclosure | 17. Segment Disclosure ASC Topic 280, Segment Reporting, establishes standards for reporting information about operating segments, products and services, geographic areas of operations and major customers. Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing business performance. The Company’s chief operating decision-making group is the Executive Staff, which is comprised of the Chief Executive Officer and his direct reports (CODM). In September 2014, the Company sold its Grid business to S&T, thus reducing the number of reportable segments from two to one. For the year ending December 31, 2014, the Grid business is captured in discontinued operations. The Company operates in one principal industry segment - the IIoT segment, which is its reportable segment. The IIoT segment sells products and services aimed at Embedded Control Platforms, such as LONWORKS and IzoT, which include components, control nodes, and development software, and which are sold typically to Original Equipment Manufacturers (OEMs) to build into their industrial application solutions. These platforms allow a single device to be brought to market as a LONWORKS®, BACnet®, or other protocol-supporting device; and it can be used with any underlying wired or wireless communications link, such as Ethernet, RS-485, Wi-Fi, 15.4, or Echelon’s free topology (FT) standard. The IzoT platform provides a smooth migration path for legacy devices to the IIoT. The product portfolio includes Smart Transceivers, SmartServer Controllers, LNS and OpenLNS Operating Systems, Outdoor Lighting Controllers, SmartServer Segment Controllers and PL/RF Bridges. The Company operates in three main geographic areas: the Americas; Europe, Middle East and Africa (“EMEA”); and Asia Pacific / Japan (“APJ”). Each geographic area provides products and services to the Company’s customers located in the respective region. The Company’s long-lived assets include property and equipment, goodwill, purchased technology, and deposits on its leased facilities. Long-lived assets are attributed to geographic areas based on the country where the assets are located. As of December 31, 2016 and December 31, 2015, long-lived assets of approximately $2.2 million and $2.6 million, respectively, were domiciled in the United States. Long-lived assets for all other locations are not material to the consolidated financial statements. In North America, the Company sells its products primarily through a direct sales organization and select third-party electronics representatives. Outside North America, the Company sells its products through direct sales organizations in EMEA and APJ, value-added resellers, and local distributors. Revenues are attributed to geographic areas based on the country where the products are shipped to or the services are delivered. Summary revenue information by geography for the years ended December 31, 2016, 2015 and 2014 is as follows (in thousands):
For information regarding the Company’s major customers, please refer to Note 9, Significant Customers. |
Joint Venture |
12 Months Ended |
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Dec. 31, 2016 | |
Less Than Wholly Owned Subsidiary [Abstract] | |
Joint Venture | 18. Joint Venture On March 23, 2012, the Company entered into an agreement with Holley Metering Limited (“Holley Metering”), a designer and manufacturer of energy meters in China, to create a joint venture, Zhejiang Echelon-Holley Technology Co., Ltd. (“Echelon-Holley”). The joint venture's intended focus was on the development and sales of smart energy products for China and rest-of-world markets. The Company has a 51% ownership interest in the joint venture and exercises controlling influence. Therefore, Echelon-Holley’s accounts are included in the Company’s consolidated financial statements as of December 31, 2016, and for the three years then ended. Holley Metering’s interests in Echelon-Holley’s net assets are reported in the noncontrolling interest in subsidiary on the consolidated balance sheet as of December 31, 2016 and 2015. Net loss attributable to the noncontrolling interest in Echelon-Holley was $0, $0, and $535,000 during years ended December 31, 2016, 2015, and 2014, respectively. As of December 31, 2016, Echelon and Holley Metering had contributed in cash a total of approximately $4,000,000 in Share Capital, as defined, to Echelon-Holley in proportion to their respective ownership interests. In connection with the decision to sell the Grid business announced in the third quarter of 2014, the Company undertook a process to sell the remaining net assets of the joint venture and recorded the net assets and liabilities of the joint venture at the lower of their carrying amount or fair value less cost to sell, and classified them as held for sale on the accompanying consolidated balance sheet at December 31, 2014. The major classes of assets and liabilities that were classified as held for sale were inventory, deferred revenues and the related deferred costs of sales, and accrued liabilities. In addition, the net loss attributable to the non-controlling interests have also been presented as part of discontinued operations in the consolidated statement of operations for the year ended December 31, 2014. During the quarter ended September 30, 2015, the Company concluded that it would no longer pursue a sale, but would instead work with Holley Metering to shut the joint venture down. The remaining net assets of the joint venture were immaterial as of September 30, 2015. As the net losses attributable to the joint venture were immaterial in all years, they have been presented as part of discontinued operations in the consolidated statements of operations for the year ended December 31, 2014. |
Selected Quarterly Financial Data (Unaudited) |
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Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quarterly Financial Information [Text Block] | 19. SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED): The following tables set forth certain consolidated statements of operations data for each of the quarters in 2016 and 2015. This information has been derived from the Company's quarterly unaudited consolidated financial statements. The quarterly unaudited consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements included in this report and include all adjustments, consisting only of normal recurring adjustments as well as the modified retroactive application of ASU 2016-09, that we consider necessary for a fair presentation of such information when read in conjunction with the annual audited consolidated financial statements and notes appearing in this report. The operating results for any quarter do not necessarily indicate the results for any subsequent period or for the entire fiscal year.
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Summary of Significant Accounting Policies (Policies) |
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Basis of Presentation, Business Description and Accounting Policies | Basis of Presentation The consolidated financial statements include the accounts of the Company, its wholly-owned subsidiaries, and a subsidiary in which it has a controlling interest (collectively referred to as the “Company”). The Company reports noncontrolling interests in consolidated entities as a component of equity separate from the Company’s equity. All material inter-company transactions between and among the Company and its consolidated subsidiaries and other consolidated entities have been eliminated in consolidation. In 2014, the Company announced and completed the sale of its Grid business to S&T AG, a publicly traded European IT systems provider with an existing focus on smart energy products and services. The results of the Grid business for the year ended December 31, 2014, is now classified as discontinued operations. As a result of this transaction, the Company now operates in one reporting segment- the IIoT segment. |
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Risks and uncertainties | Risks and Uncertainties The Company’s operations and performance depend significantly on worldwide economic conditions and their impact on purchases of the Company’s products, as well as the ability of suppliers to provide the Company with products and services in a timely manner. The impact of any of the matters described below could have an adverse effect on the Company’s business, results of operations and financial condition.
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Use of Estimates, Policy | Use of Estimates The preparation of financial statements and related disclosures in conformity with accounting principles generally accepted in the United States of America requires management to make judgments, assumptions, and estimates that affect amounts reported in the Consolidated Financial Statements and accompanying notes. Significant estimates and judgments are used for revenue recognition, performance-based equity compensation, inventory valuation, intangible asset valuation, goodwill valuation, contingent consideration valuation, and other loss contingencies. In order to determine the carrying values of assets and liabilities that are not readily apparent from other sources, the Company bases its estimates and assumptions on current facts, historical experience, and various other factors that it believes to be reasonable under the circumstances. Actual results experienced by the Company may differ materially from management’s estimates. |
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New Accounting Pronouncements, Policy | Recently Issued Accounting Standards (i) New Accounting Standards Recently Adopted In March 2016, the FASB issued ASU 2016-09, Compensation – Stock Compensation (Topic 718), which simplifies the accounting for share-based payments, including income tax consequences, accounting for forfeitures, classification of awards as either equity or liabilities, and classification on the statements of cash flows. This guidance is effective for interim and annual periods beginning after December 15, 2016, with early adoption permitted. During the fourth quarter of 2016, the Company elected to early adopt ASU 2016-09, with retrospective application to January 1, 2016. The primary impact of adoption was to the Company's accounting policy for forfeited equity compensation awards. Prior to the adoption of ASU 2016-09, the Company's stock-based compensation expense was calculated using an estimated forfeiture rate. Following the adoption, the Company recognizes the impact of forfeitures on stock-based compensation expense as they occur. The net cumulative effect of this change was recognized as a $675,000 reduction to retained earnings as of January 1, 2016. (ii) New Accounting Standards Not Yet Effective On May 28, 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. In July 2015, the FASB deferred the effective date of ASU 2014-09 so that it will apply to annual reporting periods beginning after December 15, 2017 (including interim reporting periods within those periods). Early application is permitted to annual reporting periods beginning after December 15, 2016, in which case ASU 2014-09 would apply to annual reporting periods beginning after December 15, 2016 (including interim reporting periods within those periods). The standard permits the use of either the retrospective or cumulative effect transition method. The Company has not yet selected a transition method. The Company currently anticipates the standard will have a material impact on its financial statements and disclosures. While the Company continues to assess all potential impacts of the standard, it currently believes the most significant impact relates to its accounting for sales made to distributors under agreements that contain a limited right to return unsold products and price adjustment provisions. Under the existing revenue guidance, the Company has historically concluded that the price to these distributors is not fixed or determinable at the time it delivers products to them. Accordingly, revenue from sales to these distributors has not historically been recognized until the distributor resells the product. By contrast, under the new standard, the Company expects to recognize revenue, including estimates for applicable variable consideration, predominately at the time of shipment to these distributors, thereby accelerating the timing of revenue for products sold through distributors. During the year ended December 31, 2016, the Company recognized approximately $14.7 million of revenue sold through such distributors. In July 2015, the FASB issued an update to ASC 330, Inventory: Simplifying the Measurement of Inventory. Under this update, subsequent measurement of inventory is based on the lower of cost or net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less the estimated cost of completion and disposal. This update does not apply to inventory that is measured using last-in, first-out or the retail inventory method. This update should be applied prospectively and will be adopted by the Company in the first quarter of fiscal year 2017. Early adoption is permitted. The Company does not believe the adoption will have a significant impact on its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which requires, among other things, the recognition of lease assets and lease liabilities on the balance sheet by lessees for certain leases classified as operating leases under previous GAAP. ASU 2016-02 is effective for annual and interim periods beginning after December 15, 2018. ASU 2016-02 mandates a modified retrospective transition method with early adoption permitted. The Company is currently evaluating the effect that ASU 2016-02 will have on its consolidated financial statements and related disclosures. |
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Revenue Recognition, Policy | Revenue Recognition The Company’s revenues are derived from the sale and license of its products and to a lesser extent, from fees associated with training, technical support, and custom software design services offered to its customers. Product revenues consist of revenues from hardware sales and software licensing arrangements. Service revenues consist of product technical support (including software post-contract support services), training, and custom software development services. The Company recognizes revenue when persuasive evidence of an arrangement exists, delivery to the customer’s carrier (and acceptance, as applicable) has occurred, the sales price is fixed or determinable, collectability is probable, and there are no post-delivery obligations. For non-distributor hardware sales, including sales to third party manufacturers, these criteria are generally met at the time of delivery to the customer’s carrier. However, for arrangements that contain contractual acceptance provisions, revenue recognition may be delayed until acceptance by the customer or the acceptance provisions lapse unless the Company can objectively demonstrate that the contractual acceptance criteria have been satisfied, which is generally accomplished by establishing a history of acceptance for the same or similar products. For sales made to the Company’s distributor partners, revenue recognition criteria are generally met at the time the distributor sells the products through to its end-use customer. Service revenue is recognized as the training services are performed, or ratably over the term of the support period. The Company accounts for the rights of return, price protection, rebates, and other sales incentives offered to distributors of its products as a reduction in revenue. With the exception of sales to distributors, the Company’s customers are generally not entitled to return products for a refund. For sales to certain distributors, due to contractual rights of return and other factors that impact its ability to make a reasonable estimate of future returns and other sales incentives, revenues are not recognized until the distributor has shipped its products to the end customer. The Company’s multiple deliverable revenue arrangements have historically been primarily related to sales of its Grid products. As noted above, the Company completed the sale of its Grid division to S&T AG in September 2014. Therefore, multiple element arrangements are now limited. These historical transactions typically included, within a single arrangement, a combination of some or all of the following deliverables: electricity meters, data concentrators and related hardware (collectively, the “Hardware”); NES system software; Element Manager software; post-contract customer support (“PCS”) for the NES system and Element Manager software; extended warranties for the Hardware; and, occasionally, specified enhancements or upgrades to software used in the NES system. With the exception of the NES system software, each of these deliverables was considered a separate unit of accounting. The NES system software functions together with an electricity meter to deliver its essential functionality and any related software license fee is charged for on a per meter basis. Therefore, the NES system software and an electricity meter are combined and considered a single unit of accounting. The Element Manager software is not considered to be part of an electricity meter’s essential functionality and, therefore, Element Manager software and any related PCS has been accounted for under industry specific software revenue recognition guidance. However, all other NES system deliverables are no longer within the scope of industry specific software revenue recognition guidance. The Company allocates revenue to each element in a multiple-element arrangement based upon their relative selling price. The Company determines the selling price for each deliverable using vendor specific objective evidence (“VSOE”) of selling price or third party evidence (“TPE”) of selling price, if it exists. If neither VSOE nor TPE of selling price exists for a deliverable, the Company uses its best estimated selling price (“BESP”) for that deliverable. Any discounts offered by the Company are allocated, proportionally, to each of the deliverables. Revenue allocated to each element is then recognized when the basic revenue recognition criteria is met for the respective element. If available, the Company determines VSOE of fair value for each element based on historical stand-alone sales to third parties or from the stated renewal rate for the elements contained in the initial contractual arrangement. The Company currently estimates selling prices for its PCS and extended warranties based on VSOE of fair value. In many instances, the Company is not currently able to obtain VSOE of fair value for all deliverables in an arrangement with multiple elements. This may be due to the Company infrequently selling each element separately or not pricing products within a narrow range. When VSOE cannot be established, the Company attempts to estimate the selling price of each element based on TPE. TPE would consist of competitor prices for similar deliverables when sold separately. Generally, the Company’s offerings contain significant differentiation such that the comparable pricing of products with similar functionality cannot be obtained. Furthermore, the Company is unable to reliably determine the stand-alone selling prices for similar products of its competitors. Therefore, the Company is typically not able to obtain TPE of selling price. When the Company is unable to establish a selling price using VSOE or TPE, which was generally the case for the Hardware and certain specified enhancements or upgrades to the Company’s NES software, the Company uses its BESP in determining the allocation of arrangement consideration. The objective of BESP is to determine the price at which the Company would transact a sale if the product or service were sold on a stand-alone basis. BESP is generally used for offerings that are not typically sold on a stand-alone basis or for new or highly customized offerings. The Company establishes pricing for its products and services by considering multiple factors including, but not limited to, geographies, market conditions, competitive landscape, internal costs, gross margin objectives, and industry pricing practices. The determination of pricing also includes consultation with and formal approval by the Company’s management, taking into consideration the Company’s go-to-market strategy. These pricing practices apply to both the Company’s Hardware and software products. Based on an analysis of pricing stated in contractual arrangements for its Hardware products in historical multiple-element transactions and, to a lesser extent, historical standalone transactions, the Company has concluded that it typically prices its Hardware within a narrow range of discounts when compared to the price listed on the Company’s standard pricing grid for similar deliverables (i.e., similar configuration, volume, geography, etc.). Therefore, the Company has determined that, for its current Hardware for which VSOE or TPE is not available, the Company’s BESP is generally comprised of prices based on a narrow range of discounts from pricing stated in its pricing grid. When establishing BESP for the Company’s specified software enhancements or upgrades, the Company considers multiple factors including, but not limited to, the relative value of the features and functionality being delivered by the enhancement or upgrade as compared to the value of the software product to which the enhancement or upgrade relates, as well as the Company’s pricing practices for NES system software PCS packages, which may include rights to the specified enhancements or upgrades. The Company regularly reviews VSOE and has established a review process for TPE and BESP. The Company maintains internal controls over the establishment and updates of these estimates. There were no material impacts during the year ended December 31, 2016, resulting from changes in VSOE, TPE, or BESP, nor does the Company expect a material impact from such changes in the near term. |
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Deferred Revenue and Deferred Cost of Goods Sold | Deferred Revenue and Deferred Cost of Goods Sold Deferred revenue consists substantially of amounts billed or payments received in advance of revenue recognition. Deferred cost of goods sold related to deferred product revenues includes direct product costs and applied overhead. Once all revenue recognition criteria have been met, the deferred revenues and associated cost of goods sold are recognized. |
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Disclosure of Compensation Related Costs, Share-based Payments | Stock-Based Compensation The Company accounts for employee stock-based payment transactions in which the Company receives employee services in exchange for equity instruments of the enterprise. Stock-based compensation cost for restricted stock units (“RSUs”) granted to employees is measured based on the closing fair market value of the Company's common stock on the date of grant. Stock-based compensation cost for RSUs granted to non-employee consultants is measured based on the closing fair market value of the Company's common stock at the earlier of the date at which a commitment for performance by the consultant to earn the RSUs is reached, or the date at which the consultant's performance necessary for the RSUs to vest has been completed. Stock-based compensation cost for stock options and stock appreciation rights granted to employees (“SARs”) is estimated at the grant date based on each award's fair-value as calculated using the Black-Scholes-Merton (“BSM”) option-pricing model. The Company recognizes stock-based compensation cost as expense using the accelerated multiple-option approach over the requisite service period. Further information regarding stock-based compensation can be found in Note 8 of these Notes to Consolidated Financial Statements. |
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Cash and Cash Equivalents, Policy | Cash and Cash Equivalents The Company considers bank deposits, money market investments and all debt and equity securities with remaining maturities of three months or less at the date of purchase to be cash and cash equivalents. |
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Investment, Policy | Short-Term Investments The Company classifies its investments in marketable debt securities as available-for-sale. Securities classified as available-for-sale are reported at fair value with the related unrealized holding gains and losses, net of tax, being included in accumulated other comprehensive loss. |
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Fair Value of Financial Instruments, Policy | Fair Value Measurements The Company measures at fair value its cash equivalents and available-for-sale investments using a valuation hierarchy based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company's own assumptions. These two types of inputs have created the following fair value hierarchy:
This hierarchy requires the Company to minimize the use of unobservable inputs and to use observable market data, if available, when estimating fair value. Other than cash and money market funds, the Company's only financial assets or liabilities required to be measured at fair value on a recurring basis at December 31, 2016, are fixed income available-for-sale securities. See Note 2 of these Notes to Consolidated Financial Statements for a summary of the input levels used in determining the fair value of the Company's cash equivalents and short-term investments as of December 31, 2016. |
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Inventory, Policy | Inventories Inventories are stated at the lower of cost (first‑in, first‑out) or market and include material, labor and manufacturing overhead. When required, provisions are made to reduce excess and obsolete inventories to their estimated net realizable value. |
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Impairment or Disposal of Long-Lived Assets, Policy | Impairment of Long-Lived Assets Including Goodwill The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. Recoverability is measured by comparing the asset's carrying value to the future undiscounted cash flows the asset is expected to generate. If long-lived assets are considered to be impaired, the impairment to be recognized equals the amount by which the carrying value of the asset exceeds its fair value. For the year ended December 31, 2014, the Company recognized impairments associated with certain long-lived assets associated with its Grid division and a building that the Company ceased use of at its corporate headquarters facility (see Note 3 for additional information regarding the impairment). For the years ended December 31, 2016 and December 31, 2015, the Company recognized no impairments of long-lived assets. Costs in excess of the fair value of tangible and other identifiable intangible assets acquired and liabilities assumed in a purchase business combination are recorded as goodwill, which is tested for impairment using a two-step approach. The Company evaluates goodwill, at a minimum, on an annual basis during the first quarter and whenever events and changes in circumstances suggest that the carrying amount may not be recoverable. Impairment of goodwill is tested at the reporting unit level by comparing the reporting unit's carrying amount, including goodwill, to the fair value of the reporting unit. The fair values of the reporting units are estimated using a combination of the income approach and the market approach. If the carrying amount of the reporting unit exceeds its fair value, goodwill is considered impaired and a second step is performed to measure the amount of impairment loss, if any. For both the years ended December 31, 2015 and 2014, the Company recognized impairments of its goodwill, which are described in more detail in Note 10. |
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Software to be Sold, Leased, or Otherwise Marketed, Policy | Software Development Costs For software to be sold, leased, or otherwise marketed, the Company capitalizes eligible computer software development costs upon the establishment of technological feasibility, which the Company has defined as completion of a working model. For the three years ended December 31, 2016, costs that were eligible for capitalization were insignificant and, thus, the Company has charged all software development costs to product development expense in the accompanying consolidated statements of operations. |
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Accounts Payable and Accrued Liabilities Disclosure | Accrued Liabilities Accrued liabilities consist of the following (in thousands):
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Foreign Currency Transactions and Translations Policy | Foreign Currency Translation The functional currency of the Company's subsidiaries is the local currency. Accordingly, all assets and liabilities are translated into U.S. dollars at the current exchange rate as of the applicable balance sheet date. Revenues and expenses are translated at the average exchange rate prevailing during the period. Gains and losses resulting from the translation of the financial statements are included in accumulated other comprehensive income (loss). Remeasurement adjustments for non-functional currency monetary assets and liabilities, including short-term intercompany balances, are included in other income (expense) in the accompanying consolidated statements of operations. Currently, the Company does not employ a foreign currency hedge program utilizing foreign currency exchange contracts as the foreign currency transactions and risks to date have not been significant. |
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Concentration Risk, Credit Risk, Policy | Concentrations of Credit Risk and Suppliers The Company's financial instruments have historically consisted of cash equivalents, short-term investments, accounts receivable, accounts payable, and lease financing obligations. The carrying value of the Company's financial instruments approximates fair value. Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of investments, which are classified as either cash equivalents or short-term investments, and trade receivables. With respect to its investments, the Company has an investment policy that limits the amount of credit exposure to any one financial institution and restricts placement of the Company's investments to financial institutions independently evaluated as highly creditworthy. With respect to its trade receivables, the Company performs ongoing credit evaluations of each of its customers' financial condition. For a customer whose credit worthiness does not meet the Company's minimum criteria, the Company may require partial or full payment prior to shipment. Alternatively, prior to shipment, customers may be required to provide the Company with an irrevocable letter of credit or arrange for some other form of coverage, such as a bank guarantee, to mitigate the risk of uncollectibility. Additionally, the Company establishes an allowance for doubtful accounts and sales return allowances based upon factors surrounding the credit risk of specific customers, historical trends, and other available information. With the exception of amounts owed to the Company on sales made to certain significant customers, concentrations of credit risk with respect to trade receivables are generally limited due to the Company's large number of customers and their dispersion across many different industries and geographies. As of December 31, 2016 and 2015, the percentage of the Company's total accounts receivable balance that were due from the following significant customers is as follows (refer to Note 9 - Significant Customers for a discussion of revenues generated from the Company's significant customers):
For most of the Company's products requiring assembly, it relies on a limited number of contract electronic manufacturers, principally Bel-Fuse (formerly TYCO). The Company also maintains manufacturing agreements with a limited number of semiconductor manufacturers for the production of key products. The Neuron Chip is an important component that the Company and its customers use in control network devices. In addition to those sold by the Company, the Neuron Chip is currently manufactured and distributed only by Cypress Semiconductor. Another semiconductor supplier, STMicroelectronics, manufactures the Company's power line smart transceiver products, for which the Company has no alternative source. In addition, the Company currently purchases several key products and components from sole or limited source suppliers with which it does not maintain signed agreements that would obligate them to supply to the Company on negotiated terms. If any of the Company's key suppliers were to stop manufacturing the Company's products or cease supplying the Company with its key components, it could be expensive and time consuming to find a replacement. There is no guarantee that the Company would be able to find acceptable alternatives or additional sources. The failure of any key manufacturer to produce a sufficient number of products on time, at agreed quality levels, and fully compliant with the Company's product, assembly and test specifications could adversely affect the Company's revenues and gross profit, and could result in claims against the Company by its customers, which could harm the Company's results of operations and financial position. |
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Earnings Per Share, Policy | Computation of Basic and Diluted Net Loss Per Share Basic net loss per share is calculated by dividing net loss attributable to Echelon Corporation Stockholders by the weighted average shares of common stock outstanding during the period. Diluted net loss per share attributable to Echelon Corporation Stockholders is calculated by adjusting the weighted average number of outstanding shares assuming conversion of all potentially dilutive stock options and warrants under the treasury stock method. The following is a reconciliation of the numerators and denominators of the basic and diluted net loss per share computations for the years ended December 31, 2016, 2015 and 2014 (in thousands, except per share amounts):
For the years ended December 31, 2016, 2015 and 2014, the diluted net loss per share calculation is equivalent to the basic net loss per share calculation as there were no potentially dilutive stock options or RSUs due to the Company’s net loss position. The number of stock options, stock appreciation rights, restricted stock units (“RSUs”), restricted stock awards (“RSAs”), and contingently issuable shares excluded from this calculation for the years ended December 31, 2016, 2015 and 2014 was 837,035, 367,363 and 406,134, respectively. |
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Income Tax, Policy | Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company takes a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the tax position will be sustained on audit, including resolution of any related appeals or litigation processes. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon effective settlement. The Company re-evaluates its income tax positions on a quarterly basis to consider factors such as changes in facts or circumstances, changes in or interpretations of tax law, effectively settled issues under audit, and new audit activity. Such a change in recognition or measurement would result in recognition of a tax benefit or an additional charge to the tax provision. Interest and penalties on unrecognized tax benefits are classified as income tax expense. |
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Comprehensive Income, Policy | Comprehensive Income (Loss) Comprehensive income (loss) for the Company consists of net loss plus the effect of unrealized holding gains or losses on investments classified as available-for-sale and foreign currency translation adjustments. |
Summary of Significant Accounting Policies (Tables) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Inventory, Current [Table Text Block] | Inventories consist of the following (in thousands):
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Schedule of Accrued Liabilities [Table Text Block] | Accrued liabilities consist of the following (in thousands):
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Significant Accounts Receivable [Table Text Block] | As of December 31, 2016 and 2015, the percentage of the Company's total accounts receivable balance that were due from the following significant customers is as follows (refer to Note 9 - Significant Customers for a discussion of revenues generated from the Company's significant customers):
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Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | The following is a reconciliation of the numerators and denominators of the basic and diluted net loss per share computations for the years ended December 31, 2016, 2015 and 2014 (in thousands, except per share amounts):
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Financial Instruments (Tables) |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value of asset measured on a recurring basis | The fair value of the Company’s financial assets measured at fair value on a recurring basis was determined using the following inputs at December 31, 2016 (in thousands):
The fair value of the Company’s financial assets and liabilities measured at fair value on a recurring basis was determined using the following inputs at December 31, 2015 (in thousands):
(1) Included in cash and cash equivalents in the Company’s consolidated balance sheets
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Level 3 Rollforward [Table Text Block] | The table below includes a rollforward of the balance sheet amounts for financial instruments classified by the Company within Level 3 of the valuation hierarchy for the two years ended December 31, 2016 (in thousands):
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Fair value of short term investment unrealized holdings and gains | As of December 31, 2016, the Company’s available-for-sale securities had contractual maturities from 5 to 6 months and an average remaining term to maturity of 3 months. Among the Company's available-for-sale securities, there have been no unrealized holding losses for a period of greater than 12 months as of December 31, 2016. As of December 31, 2016, the amortized cost basis, aggregate fair value, and gross unrealized holding gains and losses of the Company’s short-term investments by major security type were as follows (in thousands):
The amortized cost basis, aggregate fair value and gross unrealized holding gains and losses for the Company’s available-for-sale short-term investments, by major security type, were as follows as of December 31, 2015 (in thousands):
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Property and Equipment (Tables) |
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Property, Plant and Equipment [Table Text Block] | A summary of property and equipment, net as of December 31, 2016 and 2015 is as follows (in thousands):
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Acquisitions (Tables) |
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Schedule of Business Acquisitions, by Acquisition [Table Text Block] | The following table summarizes the purchase price allocation based on estimated fair values of assets acquired and liabilities assumed at the acquisition date (amounts in thousands):
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Discontinued Operations (Tables) |
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Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures [Table Text Block] | The table below provides a summary of the components of the net loss from discontinued operations for 2014 and excludes certain shared overhead costs that were previously allocated to the Grid segment as ASC 205-20 prohibits the allocation of general overhead costs to discontinued operations.
(1) Includes related party amounts of $112,000 for the year ended December 31, 2014. |
Accumulated Other Comprehensive Income (Loss) (Tables) |
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Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] |
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Stockholders' Equity and Employee Stock Option Plans (Tables) |
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Schedule Of Share Based Compensation Stock Options, RSU and SARS Activity [Table Text Block] | The following table summarizes stock award activity under all plans for the years ended December 31, 2016, 2015, and 2014:
The total intrinsic value of options and SARs exercised during the years ended December 31, 2016, 2015, and 2014, was approximately $0, $0, and $3,000, respectively. During the years ended December 31, 2016, and 2015, no options or SARs were exercised. The intrinsic value is calculated as the difference between the market value on the date of exercise and the exercise price of the shares. |
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Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity [Table Text Block] | The following table provides additional information regarding RSU and RSA activity for the years ended December 31, 2016, 2015, and 2014:
The fair value of each RSU and RSA granted to employees was estimated on the date of grant by multiplying the number of shares granted times the fair market value of the Company's stock on the grant date. The total intrinsic value of RSUs and RSAs vested and released during the years ended December 31, 2016, 2015, and 2014 was approximately $118,000, $379,000, and $1.2 million, respectively. The intrinsic value of vested and released RSUs and RSAs is calculated by multiplying the fair market value of the Company's stock on the vesting date by the number of shares vested. As of December 31, 2016, the number of RSUs and RSAs outstanding and expected to vest was 331,163, with a total intrinsic value of $1.6 million. The intrinsic value of the outstanding and expected to vest RSUs and RSAs is calculated based on the market value of the Company's closing stock price of $4.70 as of December 30, 2016, the last market trading day of 2016. |
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Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Table Text Block] | The following table provides additional information for significant ranges of outstanding and exercisable stock options and SARs as of December 31, 2016:
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Stock Based Compensation (Tables) |
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Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | The weighted average fair value of options and SARs granted during the years ended December 31, 2016, 2015, and 2014, was $2.55, $4.54, and $14.70, respectively, and was determined using the following weighted average assumptions:
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Share based Compensation by arrangement, details of performance based awards [Table Text Block] | The following table contains pertinent information regarding these outstanding awards as of December 31, 2014 (in thousands except for number of awards granted):
Through June 30, 2012, cumulative compensation expense of $264,000 associated with the 13,000 unvested RSUs and RSAs granted in 2010 and 2011 had been recognized. From the date of grant through June 30, 2012, the Company had believed it was probable that the associated performance requirements would be achieved and therefore recognized expense on these awards. During the third quarter of 2012, the Company believed that the performance condition was no longer probable of achievement, however the Company had also not yet determined that the performance condition was improbable of achievement. Accordingly, expense recognition was discontinued beginning in the third quarter of 2012. As of December 31, 2013, the Company determined that the performance condition was improbable of achievement and therefore the cumulative compensation expense of $264,000 associated with these awards was reversed in the quarter ended December 31, 2013. No further compensation expense associated with these awards has been recorded. These awards expired unvested in April 2015. In addition to the awards issued in 2010 and 2011, there were 95,330 non-vested RSAs as of December 31, 2014 with a grant date fair value of $2.3 million that were granted on June 10, 2014, which were also subject to service-based vesting conditions as well as certain performance-based vesting requirements that must be achieved before vesting can occur. These awards vested over a nine month period ending March 14, 2015, provided the performance conditions were met as of December 31, 2014. Of these RSAs issued in June 2014, 30,200 awards with a total fair value of approximately $743,000 were granted to employees of the Grid business. As of September 30, 2014, in conjunction with the sale of the Grid business, the Company reversed all compensation expense previously recognized associated with these awards as they will not vest. Additionally, as of December 31, 2014, 8,050 awards with a grant date fair value of approximately $198,000 were granted to employees who terminated their employment during 2014. Accordingly, the Company reversed all compensation expense previously recognized associated with these awards as they will not vest. As of December 31, 2014, the Company determined that the performance conditions associated with a portion of the remaining unvested awards with a grant date fair value of $965,000 would not be achieved and therefore any previously recorded expense associated with these awards was reversed and no additional expense was recorded during the year ended December 31, 2014. |
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Employee Service Share-based Compensation, Allocation of Recognized Period Costs | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block] | The following table summarizes stock-based compensation expense for the years ended December 31, 2016, 2015, and 2014 and its allocation within the consolidated statements of operations (in thousands):
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Significant Customers (Tables) |
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Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||
Risks and Uncertainties [Abstract] | |||||||||||||||||||||||||||||||||||||||||||
Revenues attributable to sales to major customers | For the years ended December 31, 2016, 2015 and 2014, the percentage of the Company’s revenues attributable to sales made to these customers was as follows:
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Goodwill and Intangible Assets (Tables) |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Finite-Lived Intangible Assets [Table Text Block] | The changes in the carrying amount of identifiable intangible assets, net for the years ended December 31, 2016 and 2015 is as follows (in thousands):
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Schedule of Acquired Finite-Lived Intangible Assets by Major Class [Table Text Block] | The following table presents the details of the Company's finite-lived intangible assets as of December 31, 2016 (in thousands, except for weighted-average remaining useful life):
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Schedule of Goodwill [Table Text Block] | The changes in the carrying amount of goodwill, net, for the years ended December 31, 2015 and 2014 are as follows (in thousands):
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Finite-lived Intangible Assets Amortization Expense [Table Text Block] | The following table presents the amortization of finite-lived intangible assets included in the consolidated statements of operations for the years ended December 31, 2016, 2015, and 2014 (in thousands):
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Goodwill Disclosure [Text Block] | The following table presents the estimated future amortization of finite-lived intangible assets as of December 31, 2016 (in thousands):
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Commitments and Contingencies (Tables) |
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Future Minimum Rental Payments for Operating Leases | As of December 31, 2016, future minimum lease payments under all operating leases were as follows (in thousands):
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Operating Leases of Lessee Disclosure | The components of net rent expense for all operating leases for the years ended December 31, 2016, 2015, and 2014, were as follows (in thousands):
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Income Taxes (Tables) |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Income before Income Tax, Domestic and Foreign | The provision for income taxes attributable to continuing operations is based upon loss from continuing operations before provision for income taxes as follows (in thousands):
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Schedule of Components of Income Tax Expense (Benefit) | The provision for income taxes consists of the following (in thousands):
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Schedule of Effective Income Tax Rate Reconciliation | The provision for income taxes differs from the amount estimated by applying the statutory Federal income tax rate to loss before taxes as follows (in thousands):
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Schedule of Deferred Tax Assets and Liabilities | The components of the net deferred income tax asset are as follows (in thousands):
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Summary of Income Tax Contingencies | The following is a rollforward of the Company's unrecognized tax benefits related to uncertain tax positions for the years ended December 31, 2016 and 2015 (in thousands):
Included in the balance of total unrecognized tax benefits at December 31, 2016 are potential benefits of $364,000, which if recognized, would affect the effective rate on income from continuing operations. On December 31, 2016, the Company had accrued interest and penalties related to the uncertain tax benefits of approximately $62,000. During 2016, the Company decreased the prior year balance by $12,000 due to lapses in statutes of limitations in certain foreign jurisdictions. |
Restructuring (Tables) |
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Schedule of Restructuring and Related Costs | The following table sets forth a summary of restructuring activities related to the Company's 2016 restructuring program (in thousands):
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Schedule of Restructuring and Related Costs | The following table sets forth a summary of restructuring activities related to the Company’s 2014 restructuring program in 2015 (in thousands):
The following table sets forth a summary of restructuring activities related to the 2014 restructuring program in 2014 (in thousands):
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Valuation and Qualifying accounts (Tables) |
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Schedule Of Valuation And Qualifying Accounts [Table Text Block] |
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Segment Disclosure (Tables) |
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Revenue information by geography | Summary revenue information by geography for the years ended December 31, 2016, 2015 and 2014 is as follows (in thousands):
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Selected Quarterly Financial Data (Unaudited) (Tables) |
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Dec. 31, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Quarterly Financial Information [Table Text Block] | The following tables set forth certain consolidated statements of operations data for each of the quarters in 2016 and 2015. This information has been derived from the Company's quarterly unaudited consolidated financial statements. The quarterly unaudited consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements included in this report and include all adjustments, consisting only of normal recurring adjustments as well as the modified retroactive application of ASU 2016-09, that we consider necessary for a fair presentation of such information when read in conjunction with the annual audited consolidated financial statements and notes appearing in this report. The operating results for any quarter do not necessarily indicate the results for any subsequent period or for the entire fiscal year.
|
Summary of Significant Accounting Policies (Details) $ in Thousands |
3 Months Ended | 9 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|---|
Sep. 30, 2014
USD ($)
|
Dec. 31, 2013
segment
|
Sep. 30, 2014
segment
|
Dec. 31, 2016
USD ($)
customer
segment
country
|
Dec. 31, 2015
USD ($)
customer
|
Dec. 31, 2014
USD ($)
|
|
Accounting Policies [Abstract] | ||||||
Number of countries in which Company maintains offices (in country) | country | 7 | |||||
Number of reporting segments (in segment) | segment | 2 | 2 | 1 | |||
Loss on write down of property, equipment and other | $ | $ 4,409 | $ 0 | $ 0 | $ 4,409 | ||
Summary of Significant Accounting Policies (Textual) [Abstract] | ||||||
Percentage of net revenue | 32.80% | 37.20% | 33.90% | |||
Number of Customers | customer | 1 | 2 |
Summary of Significant Accounting Policies - Concentration of Credit Risk (Details) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Percentage of net revenue | 32.80% | 37.20% | 33.90% |
Percentage of accounts receivable total | 26.90% | 31.10% | |
Enel [Member] [Member] | |||
Percentage of accounts receivable | 0.00% | 18.20% | |
Avnet | |||
Percentage of accounts receivable | 26.90% | 12.90% |
Summary of Significant Accounting Policies - Recently Issued Accounting Pronouncements (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
[1] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ 0 | $ 0 | ||||||||||||||
Revenues | $ 7,498 | $ 8,179 | $ 8,061 | $ 8,647 | 9,590 | $ 9,983 | $ 9,363 | $ 9,868 | $ 32,385 | [1] | 38,804 | [1] | $ 38,730 | |||
Additional Paid-in Capital | ||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||
Cumulative Effect of New Accounting Principle in Period of Adoption | (675) | (675) | ||||||||||||||
Accounting Standards Update 2016-09 | New Accounting Pronouncement, Early Adoption, Effect | Additional Paid-in Capital | ||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ 675 | $ 675 | ||||||||||||||
Accounting Standards Update 2014-09 | New Accounting Pronouncement, Early Adoption, Effect | ||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||
Revenues | $ 14,700 | |||||||||||||||
|
Summary of Significant Accounting Policies - Inventories (Details) - USD ($) $ in Thousands |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Accounting Policies [Abstract] | ||
Inventory, Raw Materials, Net of Reserves | $ 148 | $ 164 |
Inventory, Finished Goods, Net of Reserves | 2,422 | 2,729 |
Inventory, Net | $ 2,570 | $ 2,893 |
Summary of Significant Accounting Policies - Accrued Liabilities (Details) - USD ($) $ in Thousands |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Accrued Liabilities, Current [Abstract] | ||
Accrued payroll and related costs | $ 1,299 | $ 2,119 |
Product Warranty Accrual | 245 | 120 |
Warranty reserve | 120 | |
Contingent consideration | 0 | 318 |
Restructuring charges | 273 | 0 |
Other accrued liabilities | 484 | 328 |
Accrued Liabilities, Current | $ 2,174 | $ 2,885 |
Summary of Significant Accounting Policies - Computation of Basic and Diluted net loss per share (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Accounting Policies [Abstract] | |||||||||||
Income (Loss) from Continuing Operations Attributable to Parent | $ (15,611) | ||||||||||
Net loss from continuing operations | $ (4,103) | $ (13,233) | (15,611) | ||||||||
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Parent | 0 | 0 | (8,715) | ||||||||
Net Income (Loss) Attributable to Parent | $ (1,237) | $ (1,228) | $ (763) | $ (875) | $ (5,599) | $ (1,047) | $ (5,163) | $ (1,424) | $ (4,103) | $ (13,233) | $ (24,326) |
Weighted Average Number of Shares Outstanding, Basic | 4,432,000 | 4,431,000 | 4,420,000 | 4,417,000 | 4,416,000 | 4,413,000 | 4,406,000 | 4,395,000 | 4,425,000 | 4,409,000 | 4,350,000 |
Weighted Average Number Diluted Shares Outstanding Adjustment | 0 | 0 | 0 | ||||||||
Weighted Average Number of Shares Outstanding, Diluted | 4,432,000 | 4,431,000 | 4,420,000 | 4,417,000 | 4,416,000 | 4,413,000 | 4,406,000 | 4,395,000 | 4,425,000 | 4,409,000 | 4,350,000 |
Basic and diluted net loss per share from continuing operations attributable to Echelon Corporation Stockholders | $ (0.28) | $ (0.28) | $ (0.17) | $ (0.20) | $ (1.27) | $ (0.24) | $ (1.17) | $ (0.32) | $ (0.93) | $ (3.00) | $ (3.59) |
Basic and diluted net loss per share from discontinued operations attributable to Echelon Corporation Stockholders | 0.00 | 0.00 | (2.00) | ||||||||
Basic and diluted net loss per share attributable to Echelon Corporation Stockholders | $ (0.93) | $ (3.00) | $ (5.59) | ||||||||
Stock Awards Excluded from Computation of Earnings Per Share Amount | 837,035 | 367,363 | 406,134 |
Summary of Significant Accounting Policies - Impairment of long lived assets (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2014 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Accounting Policies [Abstract] | ||||
Loss on write down of property, equipment and other | $ 4,409 | $ 0 | $ 0 | $ 4,409 |
Financial Instruments (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||
Level 3 financial liabilities ending balance | $ 318 | $ 318 | $ 968 | |||||||
Fair value of asset measured on a recurring basis | ||||||||||
Fixed income available-for-sale securities | 16,978 | $ 11,983 | 16,978 | |||||||
Business Combination, Contingent Consideration, Liability | 318 | 318 | ||||||||
Adjustment to contingent consideration | $ (318) | (577) | (318) | (650) | $ 43 | |||||
Decrease in contingent consideration liability due to performance targets | (759) | |||||||||
Amortization of contingent consideration | 109 | |||||||||
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||||||||||
Fair value of asset measured on a recurring basis | ||||||||||
Money market funds | [1] | 2,305 | 4,513 | 2,305 | ||||||
Fixed income available-for-sale securities | [2] | 0 | 0 | 0 | ||||||
Business Combination, Contingent Consideration, Liability | 0 | 0 | ||||||||
Liabilities, Fair Value Disclosure, Recurring | 0 | 0 | ||||||||
Assets, Fair Value Disclosure, Recurring | 2,305 | 4,513 | 2,305 | |||||||
Significant Other Observable Inputs (Level 2) [Member] | ||||||||||
Fair value of asset measured on a recurring basis | ||||||||||
Money market funds | [1] | 0 | 0 | 0 | ||||||
Fixed income available-for-sale securities | [2] | 18,379 | 13,233 | 18,379 | ||||||
Business Combination, Contingent Consideration, Liability | 0 | 0 | ||||||||
Liabilities, Fair Value Disclosure, Recurring | 0 | 0 | ||||||||
Assets, Fair Value Disclosure, Recurring | 18,379 | 13,233 | 18,379 | |||||||
Significant Unobservable Inputs (Level 3) [Member] | ||||||||||
Fair value of asset measured on a recurring basis | ||||||||||
Money market funds | [1] | 0 | 0 | 0 | ||||||
Fixed income available-for-sale securities | [2] | 0 | 0 | 0 | ||||||
Business Combination, Contingent Consideration, Liability | 318 | 318 | ||||||||
Liabilities, Fair Value Disclosure, Recurring | 318 | 318 | ||||||||
Assets, Fair Value Disclosure, Recurring | 0 | 0 | 0 | |||||||
Fair Value, Measurements, Recurring [Member] | ||||||||||
Fair value of asset measured on a recurring basis | ||||||||||
Money market funds | [1] | 2,305 | 4,513 | 2,305 | ||||||
Fixed income available-for-sale securities | [2] | 18,379 | 13,233 | 18,379 | ||||||
Liabilities, Fair Value Disclosure, Recurring | 318 | 318 | ||||||||
Assets, Fair Value Disclosure, Recurring | $ 20,684 | $ 17,746 | $ 20,684 | |||||||
|
Financial Instruments-Available for Sale Securities (Details 1) - USD ($) $ in Thousands |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Fair value of short term investment unrealized holdings and gains | ||
Amortized Cost | $ 11,984 | $ 16,989 |
Aggregate fair value | 11,983 | 16,978 |
Unrealized Holdings gains | 0 | 0 |
Unrealized Holdings Losses | $ 1 | $ 11 |
Financial Instruments (Details Textual) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Jun. 30, 2014 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Financial Instruments (Textual) [Abstract] | ||||||||||||
Short-term investments contractual maturity period minimum | 5 months | |||||||||||
Short-term investments contractual maturity period maximum | 6 months | |||||||||||
Average short-term investments maturity period | 3 months | |||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||
Goodwill impairment charges | $ 0 | $ 0 | $ 0 | $ 0 | $ 5,698 | $ 0 | $ 0 | $ 0 | $ 0 | $ 5,698 | $ 0 | |
Discontinued Operations [Member] | ||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||
Goodwill impairment charges | $ 5,700 | $ 3,400 | $ 3,388 |
Property and Equipment (Details) - USD ($) $ in Thousands |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Property, Plant and Equipment [Abstract] | ||
Computer and other equipment | $ 3,370 | $ 3,253 |
Software | 3,130 | 3,130 |
Furniture and fixtures | 110 | 106 |
Leasehold improvements | 194 | 191 |
Property, Plant and Equipment, Gross | 6,804 | 6,680 |
Less: Accumulated depreciation and amortization | (6,359) | (6,085) |
Property and equipment, net | $ 445 | $ 595 |
Property and Equipment Narrative (Details) $ in Thousands |
1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2008
USD ($)
renewal_option
|
Dec. 31, 2016
USD ($)
|
Sep. 30, 2016
USD ($)
|
Jun. 30, 2016
USD ($)
|
Mar. 31, 2016
USD ($)
|
Dec. 31, 2015
USD ($)
|
Sep. 30, 2015
USD ($)
|
Jun. 30, 2015
USD ($)
|
Mar. 31, 2015
USD ($)
|
Sep. 30, 2014
USD ($)
|
Jun. 30, 2014
USD ($)
|
Dec. 31, 2016
USD ($)
|
Dec. 31, 2015
USD ($)
|
Dec. 31, 2014
USD ($)
|
Oct. 31, 2000
USD ($)
|
Dec. 30, 1999
USD ($)
|
|
Property, Plant and Equipment [Abstract] | ||||||||||||||||
Capital Leases, Future Minimum Payments Due | $ 48,900 | |||||||||||||||
Number of renewals permitted under building lease | renewal_option | 2 | |||||||||||||||
Lessee Leasing Arrangements, Operating Leases, Renewal Term | 5 years | |||||||||||||||
Capital Lease Obligations Recorded | $ 27,600 | $ 15,200 | $ 12,000 | |||||||||||||
Increase in lease financing obligations | $ 12,500 | |||||||||||||||
Loss on write down of property, equipment and other | $ 4,409 | $ 0 | $ 0 | $ 4,409 | ||||||||||||
Up-front lease termination charges | $ 10,000 | |||||||||||||||
Decrease in building related financing obligations | 15,300 | |||||||||||||||
Loss on contract termination | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | 3,337 | $ 0 | 0 | 3,337 | 0 | |||||
Capital Leases, Income Statement, Amortization Expense | 1,100 | 1,900 | ||||||||||||||
Net Book value of Buildings leased | 0 | 0 | ||||||||||||||
Lease expense for land under operating lease | 617 | 741 | ||||||||||||||
Repayment of Other Debt, Building Leases | 11,300 | 2,200 | ||||||||||||||
Interest Expense, Other | $ 0 | $ 0 | $ 0 | $ 0 | $ (2) | $ (5) | $ (128) | $ (252) | $ 0 | $ (387) | $ (1,100) | |||||
Impairment of long-lived assets held-for-use included in discontinued operations | $ 687 |
Property and Equipment Useful Lives (Details) |
12 Months Ended |
---|---|
Dec. 31, 2015 | |
Computer And related software [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 2 years |
Computer And related software [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Other Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 2 years |
Other Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Furniture and Fixtures [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 2 years |
Furniture and Fixtures [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Telecommunication Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 10 years |
Acquisitions (Details) - USD ($) |
3 Months Ended | 12 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Aug. 15, 2014 |
Mar. 31, 2016 |
Dec. 31, 2015 |
Sep. 30, 2014 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Business Acquisition [Line Items] | ||||||||
Business Combination, Contingent Consideration, Liability | $ 318,000 | $ 318,000 | ||||||
Business Combination, Contingent Consideration, Average Closing Stock Price | 6 days | |||||||
Assets acquired and liabilities assumed | ||||||||
Goodwill | 0 | $ 0 | 0 | $ 5,936,000 | $ 8,390,000 | |||
Decrease in contingent consideration | $ 318,000 | 577,000 | 318,000 | 650,000 | $ (43,000) | |||
Developed Technology Rights [Member] | ||||||||
Assets acquired and liabilities assumed | ||||||||
Identifiable intangible assets | 800,000 | |||||||
Customer Relationships [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Finite lived intangible asset, useful life range, Low value | 6 years 6 months | |||||||
Fair value inputs, discount range, low end of range | 21.00% | |||||||
Fair value inputs, discount range, high end of range | 22.00% | |||||||
Assets acquired and liabilities assumed | ||||||||
Identifiable intangible assets | 500,000 | |||||||
Trade Names [Member] | ||||||||
Assets acquired and liabilities assumed | ||||||||
Identifiable intangible assets | $ 200,000 | |||||||
Lumewave, Inc. [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Effective Date of Acquisition | Aug. 15, 2014 | |||||||
Percentage of Voting Interests Acquired | 100.00% | |||||||
Name of Acquired Entity | Lumewave, Inc. | |||||||
Payments to Acquire Businesses, Gross | $ 1,800,000 | |||||||
Business Combination, Consideration Transferred, Equity Interests Issued and Issuable | 715,000 | |||||||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | 1,300,000 | |||||||
Business Combination, Contingent Consideration, Liability | $ 318,000 | $ 925,000 | $ 0 | $ 318,000 | ||||
Business Acquisition, Working Capital Adjustment to Consideration Transferrred | 225,000 | |||||||
Assets acquired and liabilities assumed | ||||||||
Cash and cash equivalents | 630,000 | |||||||
Accounts receivable | 107,000 | |||||||
Inventory | 31,000 | |||||||
Other current assets | 259,000 | |||||||
Property and equipment | 23,000 | |||||||
Identifiable intangible assets | 1,500,000 | |||||||
Goodwill | 1,257,000 | |||||||
Accounts payable | (352,000) | |||||||
Accrued liabilities | (255,000) | |||||||
Total assets acquired and liabilities assumed, net | $ 3,200,000 |
Discontinued Operations (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||||
---|---|---|---|---|---|---|---|
Sep. 30, 2015 |
Sep. 30, 2014 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|||
Discontinued Operations [Abstract] | |||||||
Disposal Group, Including Discontinued Operation, Description and Timing of Disposal | 9/30/2014 | ||||||
Proceeds from divestiture of Grid business, net of transaction costs | $ 4,900 | $ 0 | $ 0 | $ 2,144 | |||
Supply commitment term | 39 months | ||||||
Restructuring Costs in Discontinued Operations | 1,400 | ||||||
Revenues | 18,392 | ||||||
Cost of revenues | 11,774 | ||||||
Operating expenses | 15,614 | ||||||
Loss from discontinued operations before income taxes | (8,996) | ||||||
Income taxes | 0 | ||||||
Loss on sale of Grid business | 0 | 0 | (254) | ||||
Net loss from discontinued operations, net of income taxes | [1] | 0 | 0 | (9,250) | |||
Net loss from discontinued operations attributable to non-controlling interest, net of income taxes | 0 | 0 | (535) | ||||
Net loss from discontinued operations attributable to Echelon Corporation Stockholders, net of income taxes | $ 0 | $ 0 | (8,715) | ||||
Revenues from related parties, discontinued operations | $ 112 | ||||||
|
Accumulated Other Comprehensive Income (Loss) Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Balance at beginning of year | $ (1,594) | $ (431) |
Current period change | (843) | (1,163) |
Balance at year end | (2,437) | (1,594) |
Accumulated Translation Adjustment [Member] | ||
Balance at beginning of year | (1,582) | (424) |
Current period change | (853) | (1,158) |
Balance at year end | (2,435) | (1,582) |
Accumulated Net Unrealized Investment Gain (Loss) [Member] | ||
Balance at beginning of year | (12) | (7) |
Current period change | 10 | (5) |
Balance at year end | $ (2) | $ (12) |
Stockholders' Equity and Employee Stock Option Plans (Details Textual) |
12 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|
Apr. 22, 2016
right
$ / shares
shares
|
Dec. 07, 2015 |
Dec. 31, 2016
$ / shares
shares
|
Oct. 31, 2016
shares
|
Dec. 31, 2015
$ / shares
shares
|
Dec. 31, 2014
shares
|
Dec. 31, 2013
shares
|
Apr. 01, 2013
shares
|
Mar. 31, 2013
shares
|
|
Class of Stock [Line Items] | |||||||||
Class Of Warrant Or Right, Exclusion Of Beneficial Owners, Beneficial Ownership Percentage | 4.99% | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 500,000 | ||||||||
Number of shares outstanding | 505,872 | 285,536 | 259,679 | 410,484 | 550,540 | ||||
Common Stock, Capital Shares Reserved for Future Issuance | 1,090,540 | 2,097,283 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 602,825 | 517,505 | 515,217 | 457,585 | 1,546,743 | ||||
Preferred Stock, Shares Authorized | 5,000,000 | 5,000,000 | |||||||
Preferred Stock, Par or Stated Value Per Share | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | ||||||
Common Stock, Shares Authorized | 10,000,000 | 10,000,000 | |||||||
Common Stock, Par or Stated Value Per Share | $ / shares | $ 0.01 | $ 0.01 | |||||||
Common Stock, Shares, Outstanding | 4,431,736 | 4,416,452 | |||||||
Common Stock, Dividend, Rights Issued | right | 1 | ||||||||
Class of Warrant or Right, Number of Securities Called by Each Warrant or Right | 0.0010 | ||||||||
Common Stock [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Reverse stock split ratio | 0.1 | ||||||||
2016 Equity Incentive Plan [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Number of shares outstanding | 687,036 | ||||||||
Common Stock, Capital Shares Reserved for Future Issuance | 1,200,000 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 502,825 | ||||||||
1997 Stock Plan [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Award vesting period (in years) | 4 years | ||||||||
2016 Inducement Equity Incentive Plan [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 250,000 | ||||||||
Number of shares outstanding | 150,000 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 100,000 | ||||||||
Granted After March 31, 2013 [Member] | 2016 Equity Incentive Plan [Member] | Stock Options [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Award expiration term (in years) | 10 years | ||||||||
Minimum [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Award vesting period (in years) | 2 years | ||||||||
Minimum [Member] | 1997 Stock Plan [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Exercise price | $ / shares | $ 0 | ||||||||
Maximum [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Award vesting period (in years) | 3 years | ||||||||
Maximum [Member] | 1997 Stock Plan [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Exercise price | $ / shares | $ 1 |
Stockholders' Equity and Employee Stock Option Plans Stock Award Activity (Details) - USD ($) $ / shares in Units, $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Equity [Abstract] | |||
Number of Shares Available for Grant, Opening Balance | 517,505 | 515,217 | 457,585 |
Options and SARS, Outstanding, Number, opening balance | 285,536 | 259,679 | 410,484 |
Options and SARS, Outstanding opening balance, Weighted Average Exercise Price, | $ 24.72 | $ 34.00 | $ 41.30 |
Number Of Shares Available For Grant, Options ans SARS Granted | (275,250) | (112,600) | (46,800) |
Options and SARS, Grants in Period | 275,250 | 112,600 | 46,800 |
Options and SARS, Grants in Period, Weighted Average Exercise Price | $ 5.07 | $ 9.14 | $ 24.60 |
Number of shares available for grant, RSU granted | (460,209) | (83,555) | (219,153) |
Number Of Shares Available For Grant, Options and SARS Canceled | 54,914 | 86,743 | 197,066 |
Options and SARS, Forfeitures in Period | (54,914) | (86,743) | (197,066) |
Options and SARS, Forfeitures in Period, Weighted Average Exercise Price | $ 25.50 | $ 32.38 | $ 47.00 |
Number of shares available for grant, RSU canceled | 29,211 | 111,700 | 126,519 |
Options and SARS, Exercises in Period, Shares | (539) | ||
Options and SARS, Exercises in Period, Weighted Average Exercise Price | $ 31.70 | ||
Unissued shares returned to plan | 0 | ||
New plan shares approved, Shares | 750,000 | ||
Unissued shares eliminated from plan, Shares | (13,346) | ||
Number of Shares Available for Grant, Ending Balance | 602,825 | 517,505 | 515,217 |
Options and SARS, Outstanding, Number, Closing balance | 505,872 | 285,536 | 259,679 |
Options and SARS, Outstanding ending balance, Weighted Average Exercise Price | $ 13.94 | $ 24.72 | $ 34.00 |
Stockholders' Equity and Employee Stock Option Plans (Textual) [Abstract] | |||
Options, Exercises in Period, Total Intrinsic Value | $ 0 | $ 0 | $ 3 |
Stockholders' Equity and Employee Stock Option Plans 1997 Stock Plan (Details) - shares |
12 Months Ended | |||||
---|---|---|---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
Apr. 01, 2013 |
Mar. 31, 2013 |
|
Equity [Abstract] | ||||||
Common Stock, Capital Shares Reserved for Future Issuance | 1,090,540 | 2,097,283 | ||||
Options and SARS, Outstanding, Number | 505,872 | 285,536 | 259,679 | 410,484 | 550,540 | |
Share-based Compensation Arrangement by Share-based Payment Award, Additional Shares Authorized in 2013 Amendment | 540,000 | |||||
New plan shares approved, Shares | 750,000 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 602,825 | 517,505 | 515,217 | 457,585 | 1,546,743 | |
Restricted Stock [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting period (in years) | 4 years | |||||
2016 Equity Incentive Plan [Member] | ||||||
Equity [Abstract] | ||||||
Common Stock, Capital Shares Reserved for Future Issuance | 1,200,000 | |||||
Options and SARS, Outstanding, Number | 687,036 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 502,825 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Purchase price as a percent of fair market value | 100.00% | |||||
Purchase price as a percent of fair market value for owners of more than 10% of stock | 110.00% | |||||
2016 Equity Incentive Plan [Member] | Granted After March 31, 2013 [Member] | Stock Options [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award expiration term (in years) | 10 years | |||||
1997 Stock Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Purchase price as a percent of fair market value | 100.00% | |||||
Award vesting period (in years) | 4 years | |||||
1997 Stock Plan [Member] | Restricted Stock [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award expiration term (in years) | 5 years | |||||
Award vesting period (in years) | 4 years | |||||
1997 Stock Plan [Member] | Stock Appreciation Rights (SARs) [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Purchase price as a percent of fair market value | 100.00% | |||||
Award expiration term (in years) | 5 years | |||||
Award vesting period (in years) | 4 years | |||||
1997 Stock Plan [Member] | Granted From May 6, 2003 To March 31, 2013 [Member] | Stock Options [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award expiration term (in years) | 5 years |
Stockholders' Equity and Employee Stock Option Plans RSU and RSA Activity (Details) - USD ($) $ / shares in Units, $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Equity [Abstract] | |||
RSU/ RSA Nonvested and outstanding opening balance, Number | 64,714 | 129,322 | 136,711 |
RSU/ RSA Nonvested and Outstanding Opening balance, Weighted Average Grant Date Fair Value | $ 14.45 | $ 33.15 | $ 52.20 |
RSU/ RSA, Grants in Period | 307,770 | 49,150 | 128,945 |
RSU/RSA, Grants in Period, Weighted Average Grant Date Fair Value | $ 5.21 | $ 9.03 | $ 25.03 |
RSU/RSA Vested in Period | (23,993) | (40,414) | (50,022) |
RSU/ RSA Vested in Period, Weighted Average Grant Date Fair Value | $ 14.31 | $ 35.32 | $ 57.84 |
RSU/ RSA Forfeited in Period | (17,328) | (73,344) | (86,312) |
RSU/RSA, Forfeitures, Weighted Average Grant Date Fair Value | $ 17.06 | $ 32.29 | $ 36.88 |
RSU/ RSA Nonvested and outstanding ending balance, Number | 331,163 | 64,714 | 129,322 |
RSU/ RSA Nonvested and Outstanding Closing balance, Weighted Average Grant Date Fair Value | $ 5.74 | $ 14.45 | $ 33.15 |
Total fair value of RSUs vested and released | $ 118 | $ 379,000 | $ 1,200 |
RSU, Vested and Expected to Vest, Outstanding, Number | 331,163 | ||
RSU, Vested and Expected to Vest, Outstanding, Aggregate Intrinsic Value | $ 1,557 | ||
Share Price | $ 4.70 |
Stockholders' Equity and Employee Stock Option Plans Stock option outstanding by exercise price range (Details) - USD ($) $ / shares in Units, $ in Thousands |
12 Months Ended | ||||
---|---|---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
Mar. 31, 2013 |
|
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||||
Options and SARS Outstanding, Weighted Average Remaining Contractual Term | 8 years 2 months 5 days | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $ 4 | ||||
Options and SARS, Outstanding, Weighted Average Exercise Price | $ 13.94 | $ 24.72 | $ 34.00 | $ 41.30 | |
Options and SARS, Outstanding, Number | 505,872 | 285,536 | 259,679 | 410,484 | 550,540 |
Options, Vested and Expected to Vest, Outstanding, Number | 483,234 | ||||
Options, Vested and Expected to Vest, Outstanding, Weighted Average Remaining Contractual Term | 8 years 2 months 5 days | ||||
Options, Vested and Expected to Vest, Outstanding, Weighted Average Exercise Price | $ 14.29 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Aggregate Intrinsic Value | $ 4 | ||||
Options, Exercisable, Number | 200,830 | ||||
Options, Exercisable, Weighted Average Remaining Contractual Term | 6 years 5 months 12 days | ||||
Options, Exercisable, Weighted Average Exercise Price | $ 24.70 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | $ 3,800 | ||||
$4.51-$4.73 | |||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||||
Exercise Price Range, Lower Range Limit | $ 4.51 | ||||
Exercise Price Range, Upper Range Limit | $ 4.73 | ||||
Exercise Price Range, Number of Outstanding Options and SARS | 80,000 | ||||
Options and SARS Outstanding, Weighted Average Remaining Contractual Term | 9 years 4 months 13 days | ||||
Exercise Price Range, Outstanding Options, Weighted Average Exercise Price | $ 4.68 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $ 4 | ||||
5.22 | |||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||||
Exercise Price Range, Lower Range Limit | $ 5.22 | ||||
Exercise Price Range, Upper Range Limit | $ 5.22 | ||||
Exercise Price Range, Number of Outstanding Options and SARS | 187,000 | ||||
Options and SARS Outstanding, Weighted Average Remaining Contractual Term | 9 years 8 months 27 days | ||||
Exercise Price Range, Outstanding Options, Weighted Average Exercise Price | $ 5.22 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $ 0 | ||||
5.45-9.11 | |||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||||
Exercise Price Range, Lower Range Limit | $ 5.45 | ||||
Exercise Price Range, Upper Range Limit | $ 9.11 | ||||
Exercise Price Range, Number of Outstanding Options and SARS | 87,750 | ||||
Options and SARS Outstanding, Weighted Average Remaining Contractual Term | 8 years 6 months | ||||
Exercise Price Range, Outstanding Options, Weighted Average Exercise Price | $ 8.70 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $ 0 | ||||
9.15-23.70 | |||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||||
Exercise Price Range, Lower Range Limit | $ 9.15 | ||||
Exercise Price Range, Upper Range Limit | $ 23.7 | ||||
Exercise Price Range, Number of Outstanding Options and SARS | 84,490 | ||||
Options and SARS Outstanding, Weighted Average Remaining Contractual Term | 7 years 22 days | ||||
Exercise Price Range, Outstanding Options, Weighted Average Exercise Price | $ 21.26 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $ 0 | ||||
24.20-35.20 | |||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||||
Exercise Price Range, Lower Range Limit | $ 24.20 | ||||
Exercise Price Range, Upper Range Limit | $ 35.20 | ||||
Exercise Price Range, Number of Outstanding Options and SARS | 41,632 | ||||
Options and SARS Outstanding, Weighted Average Remaining Contractual Term | 5 years 11 days | ||||
Exercise Price Range, Outstanding Options, Weighted Average Exercise Price | $ 30.72 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $ 0 | ||||
$74.60 | |||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||||
Exercise Price Range, Lower Range Limit | $ 74.6 | ||||
Exercise Price Range, Upper Range Limit | $ 74.6 | ||||
Exercise Price Range, Number of Outstanding Options and SARS | 25,000 | ||||
Options and SARS Outstanding, Weighted Average Remaining Contractual Term | 7 months 17 days | ||||
Exercise Price Range, Outstanding Options, Weighted Average Exercise Price | $ 74.60 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $ 0 |
Stock Based Compensation Stock Based Compensation, Fair Value assumptions (Details) - $ / shares |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 0.00% | 0.00% | 0.00% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 1.20% | 1.70% | 2.00% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 58.10% | 56.30% | 66.30% |
Fair Value Assumptions, Expected Term | 5 years 1 month 13 days | 5 years 29 days | 5 years 11 months 23 days |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 2.55 | $ 4.54 | $ 14.70 |
Contractual term of options awarded | 10 years |
Stock Based Compensation Equity Compensation expense for RSUs and RSAs with Financial or other Performance based vesting requirments (Details) - USD ($) $ in Thousands |
12 Months Ended | 23 Months Ended | |||
---|---|---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Jun. 30, 2012 |
Sep. 30, 2014 |
Jun. 30, 2014 |
|
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted | 70,080 | ||||
Employee Service Share Based Compensation Nonvested Awards Compensation Cost Recognized Share Based Awards Other than Options | $ 324 | ||||
Fair Value of Performance Awards on Grant Date | 2,277 | ||||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized | $ 1,953 | ||||
Latest Date that Performance condition could be met | |||||
Aug 2010 Grant Date [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted | 8,000 | ||||
Employee Service Share Based Compensation Nonvested Awards Compensation Cost Recognized Share Based Awards Other than Options | $ 0 | ||||
Fair Value of Performance Awards on Grant Date | 596 | ||||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized | $ 596 | ||||
Latest Date that Performance condition could be met | April 2015 | ||||
November 2011 [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted | 5,000 | ||||
Employee Service Share Based Compensation Nonvested Awards Compensation Cost Recognized Share Based Awards Other than Options | $ 0 | ||||
Fair Value of Performance Awards on Grant Date | 277 | ||||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized | $ 277 | ||||
Latest Date that Performance condition could be met | April 2015 | ||||
August 2010 and November 2011 Grant Date [Member] | |||||
Employee Service Share Based Compensation Nonvested Awards Compensation Cost Recognized Share Based Awards Other than Options | $ 264 | ||||
Employee Service Share Based Compensation Nonvested Awards Compensation Cost Reversed Share Based Awards Other than Options | $ 264 | ||||
Number of non-vested equity-based payment instruments with performance condition excluding stock (or unit) options | 13,000 | ||||
June 2014 Grant Date [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted | 57,080 | ||||
Employee Service Share Based Compensation Nonvested Awards Compensation Cost Recognized Share Based Awards Other than Options | $ 324 | ||||
Fair Value of Performance Awards on Grant Date | 1,404 | $ 743 | $ 2,300 | ||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized | $ 1,080 | ||||
Latest Date that Performance condition could be met | December 2014 | ||||
Number of non-vested equity-based payment instruments with performance condition excluding stock (or unit) options | 8,050 | 30,200 | 95,330.00 | ||
Fair Value of Performance Awards on Grant Date for employees who terminated | $ 198 | ||||
Grant date fair value of awards that will not vest | $ 965 |
Stock Based Compensation Expense Allocation (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized | $ 1,905 | ||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition | 1 year 2 months 22 days | ||
Allocated Share-based Compensation Expense, Net of Tax | $ 746 | $ 293 | $ 1,197 |
Discontinued Operations [Member] | |||
Allocated Share-based Compensation Expense | 0 | 0 | (342) |
Cost of Sales [Member] | |||
Allocated Share-based Compensation Expense | 48 | (74) | 292 |
Product Development [Member] | |||
Allocated Share-based Compensation Expense | 173 | 304 | (73) |
Selling and Marketing Expense [Member] | |||
Allocated Share-based Compensation Expense | 57 | (92) | 206 |
General and Administrative Expense [Member] | |||
Allocated Share-based Compensation Expense | 468 | 155 | 1,114 |
Total Share based compensation costs prior to tax benefit [Member] | |||
Allocated Share-based Compensation Expense | 746 | 293 | 1,197 |
Tax benefit [Member] | |||
Adjustments to Additional Paid in Capital, Income Tax Benefit from Share-based Compensation | $ 0 | $ 0 | $ 0 |
Significant Customers (Details) - customer |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Revenues attributable to sales [Line Items] | |||
Number of Customers | 1 | 2 | |
Total | 32.80% | 37.20% | 33.90% |
Avnet | |||
Revenues attributable to sales [Line Items] | |||
Total | 28.70% | 24.50% | 26.20% |
Cancellation notice period | 90 days | ||
Enel | |||
Revenues attributable to sales [Line Items] | |||
Total | 4.10% | 12.70% | 7.70% |
Goodwill and Intangible Assets (Details) $ in Thousands |
3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016
USD ($)
|
Sep. 30, 2016
USD ($)
|
Jun. 30, 2016
USD ($)
|
Mar. 31, 2016
USD ($)
|
Dec. 31, 2015
USD ($)
|
Sep. 30, 2015
USD ($)
|
Jun. 30, 2015
USD ($)
|
Mar. 31, 2015
USD ($)
|
Jun. 30, 2014
USD ($)
|
Dec. 31, 2013
USD ($)
segment
|
Sep. 30, 2014
USD ($)
segment
|
Dec. 31, 2016
USD ($)
segment
acquistion
|
Dec. 31, 2015
USD ($)
|
Dec. 31, 2014
USD ($)
|
|
Goodwill [Line Items] | ||||||||||||||
Number of reporting segments (in segment) | segment | 2 | 2 | 1 | |||||||||||
Number of acquisitions | acquistion | 4 | |||||||||||||
Changes in Goodwill | ||||||||||||||
Balance as of Period Start | $ 0 | $ 5,936 | $ 8,390 | $ 0 | $ 5,936 | $ 8,390 | ||||||||
Unrealized foreign currency translation loss | (238) | (323) | ||||||||||||
Goodwill impairment | $ 0 | $ 0 | $ 0 | $ 0 | $ (5,698) | $ 0 | $ 0 | 0 | 0 | (5,698) | 0 | |||
Goodwill, Acquired During Period | 1,257 | |||||||||||||
Balance as of Period End | $ 0 | $ 0 | $ 8,390 | $ 0 | $ 0 | 5,936 | ||||||||
Discontinued Operations [Member] | ||||||||||||||
Changes in Goodwill | ||||||||||||||
Goodwill impairment | $ (5,700) | $ (3,400) | $ (3,388) |
Goodwill and Intangible Assets Intangible Assets (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Amortization | $ (230) | $ (230) | $ (87) |
Gross Carrying Value | 1,500 | ||
Accumulated Amortization | (547) | ||
Total finite-lived intangible assets, net | $ 953 | 1,183 | 1,413 |
Weighted-Average Remaining Useful Life (in years) | 4 years 1 month 17 days | ||
Amortization of Intangible Assets | $ 123 | 123 | 46 |
Amortization of intangible assets included in operating expenses | 107 | 107 | 41 |
Amortization of Intangible Assets | (230) | $ (230) | $ (87) |
Developed Technology Rights [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Identifiable intangible assets | 800 | ||
Gross Carrying Value | 800 | ||
Accumulated Amortization | (292) | ||
Total finite-lived intangible assets, net | $ 508 | ||
Weighted-Average Remaining Useful Life (in years) | 4 years 1 month 17 days | ||
Customer Relationships [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Identifiable intangible assets | $ 500 | ||
Gross Carrying Value | 500 | ||
Accumulated Amortization | (182) | ||
Total finite-lived intangible assets, net | $ 318 | ||
Weighted-Average Remaining Useful Life (in years) | 4 years 1 month 17 days | ||
Trade Names [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Identifiable intangible assets | $ 200 | ||
Gross Carrying Value | 200 | ||
Accumulated Amortization | (73) | ||
Total finite-lived intangible assets, net | $ 127 | ||
Weighted-Average Remaining Useful Life (in years) | 4 years 1 month 17 days |
Goodwill and Intangible Assets Finite-Lived Amortization Expense by Fiscal Year (Details) - USD ($) $ in Thousands |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|---|
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||
2017 | $ 229 | ||
2018 | 229 | ||
2019 | 229 | ||
2020 | 229 | ||
2021 | 37 | ||
Total finite-lived intangible assets, net | $ 953 | $ 1,183 | $ 1,413 |
Commitments and Contingencies Future minimum lease payments for Operating Leases (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Future Minimum Payments for Operating Leases | |||
2017 | $ 974 | ||
2018 | 841 | ||
2019 | 467 | ||
Total payments | 2,282 | ||
Deferred Rent Credit | 193 | $ 112 | |
Deferred Rent Credit, Current | 59 | 15 | |
Rent expense | 994 | 1,260 | $ 1,483 |
Sublease rentals | 0 | (685) | (202) |
Rent expense included in discontinued operations | 0 | 0 | (160) |
Rent expense, net | $ 994 | $ 575 | $ 1,121 |
Commitments and Contingencies Royalties (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Commitments and Contingencies Disclosure [Abstract] | |||
Royalty Expense | $ 264 | $ 390 | $ 500 |
Disposal group, including discontinued operation, royalty expense | $ 1 |
Commitments and Contingencies Line of Credit (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |
---|---|---|---|
Mar. 31, 2014 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Commitments and Contingencies Disclosure [Abstract] | |||
Line of Credit Maintained | $ 5,000 | $ 1,000 | |
Collateral required - old line of credit | $ 6,300 | ||
Restricted investments | $ 1,250 | $ 1,401 |
Income Taxes (Details Textual) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Income Tax Disclosure [Abstract] | |||||||||||
Loss from Continuing Operations before Income Taxes, Domestic | $ (4,632) | $ (11,932) | $ (15,592) | ||||||||
Income (loss) from Continuing Operations before Income Taxes, Foreign | 711 | (1,251) | 192 | ||||||||
Loss before provision for income taxes | $ (1,135) | $ (1,205) | $ (712) | $ (869) | $ (5,613) | $ (1,057) | $ (5,102) | $ (1,411) | $ (3,921) | $ (13,183) | $ (15,400) |
Income Taxes Components of income tax expense/ (benefit) (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Federal: | |||||||||||
Current | $ 0 | $ 0 | $ 0 | ||||||||
Deferred | 0 | 0 | 0 | ||||||||
Total federal provision | 0 | 0 | 0 | ||||||||
State: | |||||||||||
Current | 18 | 20 | 16 | ||||||||
Deferred | 0 | 0 | 0 | ||||||||
Total state provision | 18 | 20 | 16 | ||||||||
Foreign: | |||||||||||
Current | 164 | 30 | 195 | ||||||||
Deferred | 0 | 0 | 0 | ||||||||
Total foreign provision | 164 | 30 | 195 | ||||||||
Total income tax expense | $ 102 | $ 23 | $ 51 | $ 6 | $ (14) | $ (10) | $ 61 | $ 13 | $ 182 | $ 50 | $ 211 |
Income Taxes Effective Rate Reconciliation (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Income Tax Disclosure [Abstract] | |||||||||||
Statutory tax rate | 35.00% | 35.00% | 35.00% | ||||||||
Federal tax at statutory rate of 35% | $ (1,372) | $ (4,615) | $ (5,390) | ||||||||
State taxes, net of federal benefit | (171) | (634) | (577) | ||||||||
U.S.-Foreign rate differential | (96) | 480 | 100 | ||||||||
Change in Valuation Allowance | 939 | 3,072 | 4,115 | ||||||||
Research and Development credits | 233 | 175 | 357 | ||||||||
Permanent items | 657 | 1,566 | 1,560 | ||||||||
Others | (8) | 6 | 46 | ||||||||
Total income tax expense | $ 102 | $ 23 | $ 51 | $ 6 | $ (14) | $ (10) | $ 61 | $ 13 | $ 182 | $ 50 | $ 211 |
Income Taxes Components of deferred tax asset/ liability (Details) - USD ($) $ in Thousands |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Deferred tax assets: | ||
Net operating loss carry forwards | $ 100,378 | $ 83,522 |
Tax credit carry forwards | 19,248 | 18,940 |
Fixed and intangible assets | 597 | 868 |
Capitalized research and development costs | 58 | 58 |
Stock based compensation and other reserves and allowances | 3,445 | 3,828 |
Gross deferred income tax assets | 123,726 | 107,216 |
Valuation allowance | (123,726) | (107,216) |
Net deferred income tax assets | $ 0 | $ 0 |
Percentage of deferred tax assets on which valuation allowance is created | 100.00% |
Income Taxes Components of Deferred Tax asset/ liability (Textual) (Details) $ in Millions |
12 Months Ended |
---|---|
Dec. 31, 2016
USD ($)
| |
Components of deferred tax assets and liabilities [Line Items] | |
Undistributed Earnings of Foreign Subsidiaries | $ 2.3 |
State and Local Jurisdiction [Member] | |
Components of deferred tax assets and liabilities [Line Items] | |
Operating Loss Carryforwards | 118.5 |
State and Local Jurisdiction [Member] | Research Tax Credit Carryforward [Member] | |
Components of deferred tax assets and liabilities [Line Items] | |
Tax Credit Carryforward, Amount | 16.2 |
Domestic Tax Authority [Member] | |
Components of deferred tax assets and liabilities [Line Items] | |
Operating Loss Carryforwards | $ 256.8 |
Operating Loss Carryforwards, Expiration Dates | Dec. 31, 2036 |
Domestic Tax Authority [Member] | Research Tax Credit Carryforward [Member] | |
Components of deferred tax assets and liabilities [Line Items] | |
Tax Credit Carryforward, Amount | $ 11.2 |
Tax Credit Carryforward, Expiration Date | Dec. 31, 2036 |
Income Taxes Company's uncertain tax positions (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Income Tax Disclosure [Abstract] | |||
Balance as of the beginning of the year | $ 9,066 | $ 1,359 | |
Tax positions related to current year: | |||
Additions | 152 | 147 | |
Reductions | (14) | (18) | |
Tax positions related to prior years: | |||
Additions | 80 | 7,991 | |
Reductions | (4) | (28) | |
Settlements | 0 | 0 | |
Lapses in statute of limitations | (64) | (385) | |
Balance as of the end of the year | 9,216 | 9,066 | $ 1,359 |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 364 | ||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | 62 | ||
Unrecognized tax benfits, reduction in accrued interest and penalties | $ 12 | $ 25 | $ 35 |
Warranty Reserves (Details) - USD ($) $ in Thousands |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Product Warranty Liability [Line Items] | ||
Warranty reserve | $ 245 | $ 120 |
Other long-term liabilities | ||
Product Warranty Liability [Line Items] | ||
Warranty reserve | $ 118 |
Related Parties (Details Textual) shares in Thousands, $ in Thousands |
3 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2000
USD ($)
shares
|
Dec. 31, 2016
USD ($)
shares
|
Dec. 31, 2015
USD ($)
|
Dec. 31, 2014
USD ($)
|
|
Related Party Transactions [Abstract] | ||||
Stock Issued During Period, Shares, New Issues | shares | 300 | |||
Stock Issued During Period, Value, New Issues | $ | $ 130,700 | |||
Number of shares sold by Related Party. | shares | 0 | |||
Number of board members Related Party can nominate | 1 | |||
Number of Related Party Representatives on Board | 0 | |||
Revenue from Related Parties | $ | $ 1,313 | $ 4,909 | $ 2,993 |
Restructuring Restructuring Plan (Details) $ in Thousands |
3 Months Ended | 12 Months Ended | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016
USD ($)
|
Sep. 30, 2016
USD ($)
|
Jun. 30, 2016
USD ($)
|
Mar. 31, 2016
USD ($)
|
Dec. 31, 2015
USD ($)
|
Sep. 30, 2015
USD ($)
|
Jun. 30, 2015
USD ($)
|
Mar. 31, 2015
USD ($)
|
Dec. 31, 2016
USD ($)
employee
|
Dec. 31, 2015
USD ($)
|
Dec. 31, 2014
USD ($)
employee
|
Dec. 31, 2013
USD ($)
|
|
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring charges | $ 286 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 286 | $ 0 | $ 391 | |
Restructuring Reserve, Current | 273 | 0 | $ 273 | 0 | ||||||||
2016 Restructuring Plan [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Number of Positions Eliminated (in employee) | employee | 7 | |||||||||||
Restructuring Reserve | 0 | 0 | ||||||||||
Restructuring charges | $ 300 | |||||||||||
Payments for Restructuring | (13) | |||||||||||
Restructuring Reserve, Current | $ 273 | $ 273 | ||||||||||
2014 Restructuring Plan [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Number of Positions Eliminated (in employee) | employee | 44 | |||||||||||
Restructuring Reserve | $ 701 | $ 0 | ||||||||||
Restructuring charges | 0 | 1,841 | ||||||||||
Payments for Restructuring | (701) | (1,140) | ||||||||||
Restructuring Reserve, Current | $ 0 | $ 0 | $ 701 |
Restructuring Restructuring Plan (Details Textual) $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016
USD ($)
|
Sep. 30, 2016
USD ($)
|
Jun. 30, 2016
USD ($)
|
Mar. 31, 2016
USD ($)
|
Dec. 31, 2015
USD ($)
|
Sep. 30, 2015
USD ($)
|
Jun. 30, 2015
USD ($)
|
Mar. 31, 2015
USD ($)
|
Dec. 31, 2016
USD ($)
employee
|
Dec. 31, 2015
USD ($)
|
Dec. 31, 2014
USD ($)
employee
|
|
Restructuring charges | $ 286 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 286 | $ 0 | $ 391 |
Restructuring Costs in Discontinued Operations | $ 1,400 | ||||||||||
2016 Restructuring Plan [Member] | |||||||||||
Number of Positions Eliminated (in employee) | employee | 7 | ||||||||||
Restructuring charges | $ 300 | ||||||||||
2014 Restructuring Plan [Member] | |||||||||||
Number of Positions Eliminated (in employee) | employee | 44 | ||||||||||
Restructuring charges | $ 0 | $ 1,841 | |||||||||
Restructuring Costs in Discontinued Operations | $ 1,400 |
Valuation and Qualifying accounts (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Allowance for Doubtful Accounts [Member] | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Valuation Allowances and Reserves, Opening Balance | $ 31 | $ 57 | $ 353 |
Valuation Allowances and Reserves, Charged to Cost and Expense | 5 | (19) | (46) |
Valuation Allowances and Reserves, Adjustments | 0 | 7 | 250 |
Valuation Allowances and Reserves, Closing Balance | 36 | 31 | 57 |
Allowance for Sales Returns [Member] | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Valuation Allowances and Reserves, Opening Balance | 490 | 401 | 530 |
Valuation Allowances and Reserves, Charged to Cost and Expense | 3,713 | 3,442 | 3,729 |
Valuation Allowances and Reserves, Adjustments | 3,675 | 3,353 | 3,858 |
Valuation Allowances and Reserves, Closing Balance | $ 528 | $ 490 | $ 401 |
Segment Disclosure (Details Textual) $ in Millions |
3 Months Ended | 9 Months Ended | 12 Months Ended | |
---|---|---|---|---|
Dec. 31, 2013
segment
|
Sep. 30, 2014
segment
|
Dec. 31, 2016
USD ($)
segment
geographic_area
|
Dec. 31, 2015
USD ($)
|
|
Segment Reporting [Abstract] | ||||
Number of reporting segments (in segment) | segment | 2 | 2 | 1 | |
Number of geographic areas | geographic_area | 3 | |||
Long-lived assets US | $ | $ 2.2 | $ 2.6 |
Segment Disclosure (Details 1) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
||||||
Revenue Information by Geography [Abstract] | ||||||||||||||||
Revenues | $ 7,498 | $ 8,179 | $ 8,061 | $ 8,647 | $ 9,590 | $ 9,983 | $ 9,363 | $ 9,868 | $ 32,385 | [1] | $ 38,804 | [1] | $ 38,730 | [1] | ||
United States [Member] | ||||||||||||||||
Revenue Information by Geography [Abstract] | ||||||||||||||||
Revenues | 10,309 | 11,138 | 10,680 | |||||||||||||
Other Americas [Member] | ||||||||||||||||
Revenue Information by Geography [Abstract] | ||||||||||||||||
Revenues | 1,093 | 1,242 | 2,074 | |||||||||||||
Total Americas [Member] | ||||||||||||||||
Revenue Information by Geography [Abstract] | ||||||||||||||||
Revenues | 11,402 | 12,380 | 12,754 | |||||||||||||
Germany [Member] | ||||||||||||||||
Revenue Information by Geography [Abstract] | ||||||||||||||||
Revenues | 8,749 | 9,987 | 10,733 | |||||||||||||
Other EMEA [Member] | ||||||||||||||||
Revenue Information by Geography [Abstract] | ||||||||||||||||
Revenues | 5,366 | 7,812 | 3,761 | |||||||||||||
Total EMEA [Member] | ||||||||||||||||
Revenue Information by Geography [Abstract] | ||||||||||||||||
Revenues | 14,115 | 17,799 | 14,494 | |||||||||||||
China [Member] | ||||||||||||||||
Revenue Information by Geography [Abstract] | ||||||||||||||||
Revenues | 2,209 | 2,436 | 3,225 | |||||||||||||
Other APJ [Member] | ||||||||||||||||
Revenue Information by Geography [Abstract] | ||||||||||||||||
Revenues | 4,659 | 6,189 | 8,257 | |||||||||||||
Total APJ [Member] | ||||||||||||||||
Revenue Information by Geography [Abstract] | ||||||||||||||||
Revenues | $ 6,868 | $ 8,625 | $ 11,482 | |||||||||||||
|
Joint Venture (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Less Than Wholly Owned Subsidiary [Abstract] | |||
Ownership interest in the joint venture | 51.00% | ||
Net loss attributable to noncontrolling interest | $ 0 | $ 0 | $ 535 |
Registered capital of the Joint venture | $ 4,000 |
Selected Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Sep. 30, 2014 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||
Revenues | $ 7,498 | $ 8,179 | $ 8,061 | $ 8,647 | $ 9,590 | $ 9,983 | $ 9,363 | $ 9,868 | $ 32,385 | [1] | $ 38,804 | [1] | $ 38,730 | [1] | |||||
Cost of Revenue | 3,375 | 3,707 | 3,415 | 3,805 | 4,093 | 4,370 | 3,821 | 4,244 | 14,302 | [2] | 16,528 | [2] | 16,818 | [2] | |||||
Gross profit | 4,123 | 4,472 | 4,646 | 4,842 | 5,497 | 5,613 | 5,542 | 5,624 | 18,083 | 22,276 | 21,912 | ||||||||
Product development | 2,119 | 1,963 | 1,985 | 2,193 | 2,341 | 2,454 | 2,340 | 2,612 | 8,260 | [2] | 9,747 | [2] | 9,510 | [2] | |||||
Sales and marketing | 1,638 | 1,570 | 1,679 | 1,302 | 1,602 | 1,848 | 2,194 | 2,188 | 6,189 | [2] | 7,832 | [2] | 9,098 | [2] | |||||
General and administrative | 1,782 | 2,087 | 2,197 | 2,011 | 1,694 | 2,547 | 2,187 | 2,821 | 8,077 | [2] | 9,249 | [2] | 13,734 | [2] | |||||
Goodwill impairment charges | 0 | 0 | 0 | 0 | 5,698 | 0 | 0 | 0 | 0 | 5,698 | 0 | ||||||||
Lease termination charges | 0 | 0 | 0 | 0 | 0 | 0 | 3,337 | 0 | 0 | 3,337 | 0 | ||||||||
Loss on write down of property, equipment and other | $ 4,409 | 0 | 0 | 4,409 | |||||||||||||||
Restructuring charges | 286 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 286 | 0 | 391 | ||||||||
Total operating expenses | 5,825 | 5,620 | 5,861 | 5,506 | 11,335 | 6,849 | 10,058 | 7,621 | 22,812 | 35,863 | 37,142 | ||||||||
Loss from operations | (1,702) | (1,148) | (1,215) | (664) | (5,838) | (1,236) | (4,516) | (1,997) | (4,729) | (13,587) | (15,230) | ||||||||
Interest and other income (expense), net | 567 | (57) | 503 | (205) | 227 | 184 | (458) | 838 | 808 | 791 | 930 | ||||||||
Interest Expense, Other | 0 | 0 | 0 | 0 | (2) | (5) | (128) | (252) | 0 | (387) | (1,100) | ||||||||
Loss before provision for income taxes | (1,135) | (1,205) | (712) | (869) | (5,613) | (1,057) | (5,102) | (1,411) | (3,921) | (13,183) | (15,400) | ||||||||
Income tax expense | 102 | 23 | 51 | 6 | (14) | (10) | 61 | 13 | 182 | 50 | 211 | ||||||||
Income (Loss) from Continuing Operations Attributable to Parent | (15,611) | ||||||||||||||||||
Net loss from discontinued operations, net of income taxes | [2] | 0 | 0 | (9,250) | |||||||||||||||
Net loss from discontinued operations attributable to non controlling interest, net of income taxes | 0 | 0 | 535 | ||||||||||||||||
Net loss from discontinued operations attributable to Echelon Corporation Stockholders, net of income taxes | 0 | 0 | (8,715) | ||||||||||||||||
Net Income (Loss) Attributable to Parent | $ (1,237) | $ (1,228) | $ (763) | $ (875) | $ (5,599) | $ (1,047) | $ (5,163) | $ (1,424) | $ (4,103) | $ (13,233) | $ (24,326) | ||||||||
Basic and diluted net loss per share from continuing operations attributable to Echelon Corporation Stockholders | $ (0.28) | $ (0.28) | $ (0.17) | $ (0.20) | $ (1.27) | $ (0.24) | $ (1.17) | $ (0.32) | $ (0.93) | $ (3.00) | $ (3.59) | ||||||||
Basic and diluted net loss per share from discontinued operations attributable to Echelon Corporation Stockholders | 0.00 | 0.00 | (2.00) | ||||||||||||||||
Basic and diluted net loss per share attributable to Echelon Corporation Stockholders | $ (0.93) | $ (3.00) | $ (5.59) | ||||||||||||||||
Weighted Average Number of Shares Outstanding, Basic | 4,432 | 4,431 | 4,420 | 4,417 | 4,416 | 4,413 | 4,406 | 4,395 | 4,425 | 4,409 | 4,350 | ||||||||
Weighted Average Number of Shares Outstanding, Diluted | 4,432 | 4,431 | 4,420 | 4,417 | 4,416 | 4,413 | 4,406 | 4,395 | 4,425 | 4,409 | 4,350 | ||||||||
|
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