BALANCE SHEET COMPONENTS

The following tables provide details of selected balance sheet components (in thousands):



	July 1, 2016			December 31, 2015
Accounts receivable, net:
Accounts receivable	$	107,558		$	73,855
Less: allowances for doubtful accounts, returns and discounts	(4,890		)	(4,340		)
Total	$	102,668		$	69,515



	July 1, 2016		December 31, 2015
Prepaid expenses and other current assets:
Prepaid inventories to contract manufacturer⁽¹⁾	$	8,500	$	8,500
Prepaid maintenance, royalty, rent and property taxes	6,530		5,974
Other Prepayments	7,242		2,762
Deferred cost of revenue	10,353		4,601
French R&D tax credits receivable⁽²⁾	6,203		—
Restricted cash⁽³⁾	1,328		1,093
Other	3,161		2,073
Total	$	43,317	$	25,003

(1) From time to time, the Company makes advance payment to a supplier for future inventory in order to secure more favorable pricing. The Company anticipates that this amount will be offset in the first quarter of 2017 against the accounts payable owed to this supplier.

(2) The Company’s acquired TVN subsidiary in France (the “TVN French Subsidiary”) participates in the French Crédit d’Impôt Recherche (“CIR”) program (the “R&D tax credits”) which allows companies to monetize eligible research expenses. The French R&D tax credits can be used to offset against income tax payable to the French government in each of the four years after being incurred, or if not utilized, are recoverable in cash. The amount of French R&D tax credits recoverable are subject to audit by the French government and during the second quarter of 2016, the French government approved the 2012 claim and refunded $5.8 million to the TVN French Subsidiary. The remaining R&D tax credit receivables at July 1, 2016 were approximately $23.1 million and are expected to be recoverable from 2017 through 2020 with $6.2 million reported under “Prepaid and other Current Assets” and $16.9 million reported under “Other Long-term Assets” on the Company’s Condensed Consolidated Balance Sheets. Pursuant to the TVN Purchase Agreement, the Company is indemnified by the selling shareholders with respect to the validity and recoverability of the outstanding TVN French Subsidiary R&D tax credit receivables.

(3) The restricted cash balances are primarily held as cash collateral security for certain bank guarantees. These restricted funds are invested in bank deposits and cannot be withdrawn from the Company’s accounts without the prior written consent of the applicable secured party. Additionally, as of July 1, 2016, the Company recorded approximately $1.1 million of restricted cash for the bank guarantee associated with the TVN French Subsidiary’s office building lease. This amount is reported under “Other Long-term Assets” on the Company’s Condensed Consolidated Balance Sheets.



	July 1, 2016		December 31, 2015
Inventories:
Raw materials	$	7,824	$	5,421
Work-in-process	1,186		1,950
Finished goods	15,640		19,827
Service-related spares	11,974		11,621
Total	$	36,624	$	38,819



	July 1, 2016			December 31, 2015
Property and equipment, net:
Furniture and fixtures	$	9,026		$	7,808
Machinery and equipment	96,257			93,010
Capitalized software	34,428			29,391
Leasehold improvements	13,891			10,000
Property and equipment, gross	153,602			140,209
Less: accumulated depreciation and amortization	(117,085		)	(113,197		)
Total	$	36,517		$	27,012



	July 1, 2016		December 31, 2015
Accrued Liabilities:
Accrued employee compensation and related expenses	$	18,379	$	12,083
Accrued sales and use tax and property taxes	3,540		1,743
Accrued TVN contingent consideration ⁽¹⁾	2,483		—
Accrued warranty	5,095		3,913
Accrued royalty payments	2,487		873
Contingent inventory reserves	3,649		1,315
Customer deposits and accrued customer rebates	4,319		1,851
Others	12,394		9,576
Total	$	52,346	$	31,354

(1) The TVN acquisition is subject to post-closing adjustments as set forth in the TVN Purchase Agreement to be determined within 90 days from the acquisition date in amounts capped to (i) the difference between €76 million (approximately $83.3 million as converted from euros into U.S. dollars using an agreed upon average exchange rate) and $75 million, with respect to an adjustment based on TVN’s 2015 revenue, and (ii) up to $5 million with respect to an adjustment based on TVN’s 2015 backlog that ships during the first half of 2016. During the second quarter of 2016, the Company paid $3.5 million upon the finalization of the revenue and working capital adjustments. The remaining backlog adjustment amount has been finalized at $2.5 million and will be paid in the third quarter of 2016.