Inventories (Tables)

12 Months Ended

Dec. 31, 2013

Inventory Disclosure [Abstract]

Schedule of Inventory, Current

Inventories consisted of the following (in thousands):

	December 31, 2013			December 31, 2012
Raw materials	$	21,127		$	10,420
Work-in-process	1,194			605
Finished goods	9,644			11,245
	31,965			22,270
Less: inventory valuation allowance	(7,037		)	(2,199		)
Inventories, net	$	24,928		$	20,071

Schedule of Inventory Deposit

	December 31, 2013			December 31, 2012
Inventory deposit (A)	$	1,289		$	11,637
Less: inventory deposit valuation allowance	(808		)	(2,801		)
Inventory deposit, net	$	481		$	8,836

(A) Beginning in the third quarter of 2013 the Company modified the inventory deposit arrangement with its contract manufacturing partner. Prior to the modification, the Company was obligated to place a deposit with its contract manufacturer for the cost of excess inventory that had been purchased as a result of the Company's forecasted demand when there was no alternative use. Under the new arrangement, rather than place a deposit with the contract manufacturer, the Company is now obligated to purchase the inventory on consignment. The calculation of excess inventory and its impact on the Company’s cash and reported aggregate inventory levels is the same under the consignment arrangement as it was under the prior deposit arrangement. As of December 31, 2013, the balance of consigned inventory at the Company’s contract manufacturing partner was $10.3 million with the remaining inventory deposit associated with inventory held at the Company’s outsourced hardware repair service provider. The remaining deposit is recorded net of adverse purchase commitment liabilities, and therefore the net balance of the deposit represents inventory the Company believes will be utilized. The deposit will be applied against future adverse purchase commitments owed to the Company's contract manufacturer or reduced based on the usage of inventory. See Note 14 - Commitments and Contingencies for additional information regarding the Company's adverse purchase commitment liability.

Charges Associated with Inventory

The Company recorded the following charges associated with the valuation of inventory, inventory deposit and the adverse purchase commitment liability for the years ended December 31 (in thousands):

	2013		2012		2011
Inventory, net	$	3,302	$	1,080	$	2,668
Inventory deposit, net	945		926		1,096
Adverse purchase commitments	327		31		733

Change in Inventory Valuation Allowance

The following is a summary of the change in the Company’s inventory valuation allowance for the years ended December 31 (in thousands):

	2013			2012
Inventory valuation allowance, beginning of the year	$	2,199		$	4,640
Usage:
Inventory scrapped	(956		)	(3,397		)
Inventory utilized	(363		)	(696		)
Subtotal—usage	(1,319		)	(4,093		)
Write-downs of inventory valuation	3,665			1,928
Transfer from other liabilities (A)	35			29
Transfer from (to) inventory deposit valuation allowance	2,457			(305		)
Inventory valuation allowance, end of the year	$	7,037		$	2,199