Business Acquisitions (Tables)

9 Months Ended

Sep. 30, 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 September 30, 2016 was as follows (in thousands):



Assets:
Cash and cash equivalents	$	6,843
Accounts receivable, net	14,933
Inventories	3,462
Prepaid expenses and other current assets	2,412
Property and equipment, net	9,942
French R&D tax credit receivables ⁽¹⁾	26,421
Other long-term assets	2,134
Total assets	$	66,147
Liabilities:
Other debts and capital leases, current	8,362
Accounts payable	12,494
Deferred revenue	2,504
Accrued liabilities	18,365
Other debts and capital leases, long-term	16,087
Other long-term liabilities	6,467
Deferred tax liabilities	2,126
Total liabilities	$	66,405

Goodwill	41,670
Intangibles	41,100
Total purchase consideration	$	82,512

(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	21,700
Customer relationships	5 years	15,200
In-process research and development ⁽¹⁾	N/A	—
Trade name	4 years	600
		$	41,100

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		Nine months ended		Three months ended		Nine months ended
	September 30, 2016				September 30, 2016
Product cost of revenue	$	—	$	—	$	119	$	610
Research and development	—		—		152		702
Selling, general and administrative	534		3,855		4,365		6,502
Total acquisition- and integration-related expenses in operating expenses	534		3,855		4,636		7,814
Interest income (expense), net	—		—		98		98
Total acquisition- and integration-related expenses	$	534	$	3,855	$	4,734	$	7,912

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 nine months ended October 2, 2015 was adjusted to include $5.3 million and $11.8 million of acquisition- and integration- related expenses, respectively; and $0.8 million and $2.5 million reduction in revenue related to the fair value adjustment of deferred revenue. The unaudited pro forma net loss for the nine months ended September 30, 2016 was adjusted to exclude $11.8 million of acquisition- and integration- related expenses. These adjustments exclude the income tax impact.



	Three months ended			Nine months ended
	October 2, 2015			September 30, 2016			October 2, 2015
	(in millions, except per share amounts)
Net revenue	$	100.3		$	301.5		$	344.2
Net loss	(17.5		)	(49.9		)	(45.1		)
Net loss per share-basic and diluted	$	(0.20	)	$	(0.64	)	$	(0.51	)