Business Acquisitions (Tables)

6 Months Ended

Jul. 01, 2016

Business Acquisition, Pro Forma Information [Abstract]

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

The Company’s preliminary allocation of the estimated purchase consideration as of July 1, 2016 was as follows (in thousands):



Assets:
Cash and cash equivalents	$	7,063
Accounts receivable, net	14,923
Inventories	3,462
Prepaid expenses and other current assets	4,442
Property and equipment, net	9,988
French R&D tax credit receivables ⁽¹⁾	26,421
Other long-term assets	1,824
Total assets	$	68,123
Liabilities:
Other debts and capital leases, current	8,362
Accounts payable	13,963
Deferred revenue	2,504
Accrued liabilities	18,524
Other debts and capital leases, long-term	16,087
Other long-term liabilities	6,415
Deferred tax liabilities	952
Total liabilities	$	66,807

Goodwill	37,630
Intangibles	43,600
Total purchase consideration	$	82,546

(1) See Note 8, “Balance Sheet Components-Prepaid expenses and other current assets” for more information on French R&D tax credit receivables”.

Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination

The following table presents details of the intangible assets acquired through this business combination (in thousands, except years):



	Estimated Useful Life (in years)	Fair Value
Backlog	6 months	$	3,600
Developed technology	4 years	21,400
Customer relationships	5 years	18,000
In-process research and development ⁽¹⁾	N/A	—
Trade name	4 years	600
		$	43,600

Business Combination Acquisition And Integration Cost

Acquisition-and integration-related expenses for the TVN acquisition is summarized in the table below (in thousands):



	Acquisition-related				Integration-related
	Three months ended		Six months ended		Three months ended		Six months ended
	July 1, 2016				July 1, 2016
Product cost of revenue	$	—	$	—	$	433	$	491
Research and development	—		—		500		550
Selling, general and administrative	885		3,321		1,585		2,137
Total acquisition- and integration-related expenses in operating expenses	885		3,321		2,085		2,687
Total acquisition- and integration-related expenses	$	885	$	3,321	$	2,518	$	3,178

Business Acquisition, Pro Forma Information

The following unaudited pro forma summary presents consolidated information of the Company as if the acquisition of TVN had occurred on January 1, 2015, the beginning of the comparable prior annual period. The unaudited pro forma combined results are provided for illustrative purpose only and are not indicative of the Company’s actual consolidation results.

The pro forma adjustments primarily relate to the amortization of acquired intangibles and interest expense related to financing arrangements. In addition, the unaudited pro forma net loss for the three and six months ended July 3, 2015 was adjusted to include $3.4 million and $6.5 million of acquisition- and integration- related expenses, respectively; and $5.7 million and $8.1 million reduction in revenue related to the fair value adjustment of deferred revenue. The unaudited pro forma net loss for the six months ended July 1, 2016 was adjusted to exclude $6.5 million of acquisition- and integration- related expenses. These adjustments exclude the income tax impact.



	Three months ended			Six months ended
	July 3, 2015			July 1, 2016			July 3, 2015
	(in millions, except per share amounts)
Net revenue	$	127.3		$	200.1		$	243.9
Net loss	(8.9		)	(40.3		)	(27.9		)
Net loss per share-basic and diluted	$	(0.10	)	$	(0.52	)	$	(0.31	)