FORM 10-Q |
[x] | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 |
[ ] | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 |
QUICKLOGIC CORPORATION | ||
(Exact name of registrant as specified in its charter) | ||
DELAWARE | 77-0188504 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Large accelerated filer | [ ] | Accelerated Filer | [x] | |||
Non-accelerated filer | [ ] (Do not check if a smaller reporting company) | Smaller Reporting Company | [ ] |
Page | |||
October 2, 2016 | January 3, 2016 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 17,761 | $ | 19,136 | |||
Accounts receivable, net of allowances for doubtful accounts of $0 in both periods | 1,022 | 1,601 | |||||
Inventories | 1,443 | 2,878 | |||||
Other current assets | 1,081 | 1,312 | |||||
Total current assets | 21,307 | 24,927 | |||||
Property and equipment, net | 3,073 | 3,315 | |||||
Other assets | 247 | 219 | |||||
TOTAL ASSETS | $ | 24,627 | $ | 28,461 | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
Current liabilities: | |||||||
Revolving line of credit | $ | 5,000 | $ | — | |||
Trade payables | 1,624 | 4,032 | |||||
Accrued liabilities | 2,075 | 1,482 | |||||
Current portion of capital lease obligations | 208 | 281 | |||||
Total current liabilities | 8,907 | 5,795 | |||||
Long-term liabilities: | |||||||
Revolving line of credit | — | 2,000 | |||||
Capital lease obligations, less current portion | 22 | 208 | |||||
Other long-term liabilities | 57 | 133 | |||||
Total liabilities | 8,986 | 8,136 | |||||
Commitments and contingencies (see Note 12) | |||||||
Stockholders' equity: | |||||||
Preferred stock, $0.001 par value; 10,000 shares authorized; no shares issued and outstanding | — | — | |||||
Common stock, $0.001 par value; 100,000 shares authorized; 67,789 and 56,904 shares issued and outstanding, respectively | 68 | 57 | |||||
Additional paid-in capital | 251,619 | 241,024 | |||||
Accumulated deficit | (236,046 | ) | (220,756 | ) | |||
Total stockholders' equity | 15,641 | 20,325 | |||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 24,627 | $ | 28,461 |
Three Months Ended | Nine Months Ended | ||||||||||||||
October 2, 2016 | September 27, 2015 | October 2, 2016 | September 27, 2015 | ||||||||||||
Revenue | $ | 2,809 | $ | 4,194 | $ | 8,476 | $ | 15,326 | |||||||
Cost of revenue | 1,918 | 2,952 | 5,653 | 9,062 | |||||||||||
Gross profit | 891 | 1,242 | 2,823 | 6,264 | |||||||||||
Operating expenses: | |||||||||||||||
Research and development | 2,755 | 3,684 | 9,885 | 10,654 | |||||||||||
Selling, general and administrative | 2,704 | 2,508 | 7,988 | 8,158 | |||||||||||
Restructuring costs | — | 77 | — | 246 | |||||||||||
Total operating expenses | 5,459 | 6,269 | 17,873 | 19,058 | |||||||||||
Loss from operations | (4,568 | ) | (5,027 | ) | (15,050 | ) | (12,794 | ) | |||||||
Interest expense | (37 | ) | (35 | ) | (109 | ) | (64 | ) | |||||||
Interest income and other expense, net | (41 | ) | (39 | ) | (63 | ) | (98 | ) | |||||||
Loss before income taxes | (4,646 | ) | (5,101 | ) | (15,222 | ) | (12,956 | ) | |||||||
(Benefit from) provision for income taxes | (23 | ) | (15 | ) | 68 | 46 | |||||||||
Net loss | $ | (4,623 | ) | $ | (5,086 | ) | $ | (15,290 | ) | $ | (13,002 | ) | |||
Net loss per share: | |||||||||||||||
Basic | $ | (0.07 | ) | $ | (0.09 | ) | $ | (0.24 | ) | $ | (0.23 | ) | |||
Diluted | $ | (0.07 | ) | $ | (0.09 | ) | $ | (0.24 | ) | $ | (0.23 | ) | |||
Weighted average shares: | |||||||||||||||
Basic | 67,781 | 56,588 | 64,522 | 56,379 | |||||||||||
Diluted | 67,781 | 56,588 | 64,522 | 56,379 |
Three Months Ended | Nine Months Ended | ||||||||||||||
October 2, 2016 | September 27, 2015 | October 2, 2016 | September 27, 2015 | ||||||||||||
Net loss | $ | (4,623 | ) | $ | (5,086 | ) | $ | (15,290 | ) | $ | (13,002 | ) | |||
Total other comprehensive income, net of tax | — | — | — | — | |||||||||||
Total comprehensive loss | $ | (4,623 | ) | $ | (5,086 | ) | $ | (15,290 | ) | $ | (13,002 | ) |
Nine Months Ended | |||||||
October 2, 2016 | September 27, 2015 | ||||||
Cash flows from operating activities: | |||||||
Net loss | $ | (15,290 | ) | $ | (13,002 | ) | |
Adjustments to reconcile net loss to net cash used in operating activities: | |||||||
Depreciation and amortization | 972 | 1,075 | |||||
Stock-based compensation | 1,458 | 1,496 | |||||
Write-down of inventories | 236 | 14 | |||||
Write-off of equipment | 351 | 8 | |||||
Changes in operating assets and liabilities: | |||||||
Accounts receivable | 579 | (81 | ) | ||||
Inventories | 1,199 | 2,566 | |||||
Other assets | 408 | 421 | |||||
Trade payables | (2,132 | ) | 397 | ||||
Accrued liabilities and deferred revenue | 601 | 547 | |||||
Other long-term liabilities | (76 | ) | 51 | ||||
Net cash used in operating activities | (11,694 | ) | (6,508 | ) | |||
Cash flows from investing activities: | |||||||
Capital expenditures for property and equipment | (1,562 | ) | (237 | ) | |||
Net cash used in investing activities | (1,562 | ) | (237 | ) | |||
Cash flows from financing activities: | |||||||
Payment of debt and capital lease obligations | (259 | ) | (258 | ) | |||
Proceeds from line of credit | 3,000 | — | |||||
Proceeds from issuance of common stock | 10,337 | 394 | |||||
Stock issuance costs | (1,197 | ) | — | ||||
Net cash provided by financing activities | 11,881 | 136 | |||||
Net decrease in cash and cash equivalents | (1,375 | ) | (6,609 | ) | |||
Cash and cash equivalents at beginning of period | 19,136 | 30,050 | |||||
Cash and cash equivalents at end of period | $ | 17,761 | $ | 23,441 | |||
Supplemental schedule of non-cash investing and financing activities : | |||||||
Capital lease obligation to finance capital expenditures | $ | 230 | $ | 349 | |||
Purchase of equipment included in accounts payable | $ | 323 | $ | 125 |
As of | |||||||
October 2, 2016 | January 3, 2016 | ||||||
(in thousands) | |||||||
Inventories: | |||||||
Raw materials | $ | — | $ | — | |||
Work-in-process | 997 | 1,720 | |||||
Finished goods | 446 | 1,158 | |||||
$ | 1,443 | $ | 2,878 | ||||
Other current assets: | |||||||
Prepaid expenses | $ | 916 | $ | 1,184 | |||
Other | 165 | 128 | |||||
$ | 1,081 | $ | 1,312 | ||||
Property and equipment: | |||||||
Equipment | $ | 11,488 | $ | 14,531 | |||
Software | 2,612 | 3,114 | |||||
Furniture and fixtures | 41 | 131 | |||||
Leasehold improvements | 708 | 714 | |||||
14,849 | 18,490 | ||||||
Accumulated depreciation and amortization | (11,776 | ) | (15,175 | ) | |||
$ | 3,073 | $ | 3,315 | ||||
Accrued liabilities: | |||||||
Employee related accruals | $ | 1,749 | $ | 1,237 | |||
Other | 326 | 245 | |||||
$ | 2,075 | $ | 1,482 |
As of | |||||||
October 2, 2016 | January 3, 2016 | ||||||
(in thousands) | |||||||
Debt and capital lease obligations: | |||||||
Revolving line of credit | $ | 5,000 | $ | 2,000 | |||
Capital leases | 230 | 489 | |||||
5,230 | 2,489 | ||||||
Current portion of debt and capital lease obligations | (5,208 | ) | (281 | ) | |||
Long term portion of debt and capital lease obligations | $ | 22 | $ | 2,208 |
• | Level 1 – Inputs are quoted prices in active markets for identical assets or liabilities. |
• | Level 2 – Inputs are quoted prices for similar assets or liabilities in an active market, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable and market-corroborated inputs which are derived principally from or corroborated by observable market data. |
• | Level 3 – Inputs are derived from valuation techniques in which one or more significant inputs or value drivers are unobservable. |
October 2, 2016 | January 3, 2016 | ||||||||||||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||
Money market funds (1) | $ | 17,576 | $ | 1,335 | $ | 16,241 | $ | — | $ | 18,021 | $ | 2,137 | $ | 15,884 | $ | — | |||||||||||||||
Total assets | $ | 17,576 | $ | 1,335 | $ | 16,241 | $ | — | $ | 18,021 | $ | 2,137 | $ | 15,884 | $ | — |
Three Months Ended | Nine Months Ended | ||||||||||||||
October 2, 2016 | September 27, 2015 | October 2, 2016 | September 27, 2015 | ||||||||||||
Cost of revenue | $ | 34 | $ | 29 | $ | 119 | $ | 95 | |||||||
Research and development | 137 | 210 | 603 | 613 | |||||||||||
Selling, general and administrative | 286 | 240 | 736 | 759 | |||||||||||
Restructuring charges * | — | 29 | — | 29 | |||||||||||
Total costs and expenses | $ | 457 | $ | 508 | $ | 1,458 | $ | 1,496 |
Three Months Ended | Nine Months Ended | ||||||||||
October 2, 2016 | September 27, 2015 | October 2, 2016 | September 27, 2015 | ||||||||
Expected term (years) | 7.12 | 4.78 | 7.12 | 4.78 | |||||||
Risk-free interest rate | 1.40 | % | 1.40 | % | 1.40 | % | 1.40 | % | |||
Expected volatility | 52.40 | % | 52.11 | % | 52.40 | % | 52.11 | % | |||
Expected dividend yield | — | — | — | — |
Shares Available for Grant | ||
(in thousands) | ||
Balance at January 03, 2016 | 2,929 | |
Options granted | (842 | ) |
Options forfeited or expired | 546 | |
RSUs granted | (934 | ) |
PRSUs granted | (193 | ) |
RSUs forfeited or expired | 554 | |
PRSUs forfeited or expired | 204 | |
Balance at October 2, 2016 | 2,264 |
Number of Shares | Weighted Average Exercise Price | Weighted Average Remaining Term | Aggregate Intrinsic Value | |||||||||
(in thousands) | (in years) | (in thousands) | ||||||||||
Balance outstanding at January 3, 2016 | 5,266 | $ | 2.64 | |||||||||
Granted | 842 | $ | 0.86 | |||||||||
Forfeited or expired | (546 | ) | $ | 2.79 | ||||||||
Balance outstanding at October 2, 2016 | 5,562 | $ | 2.36 | 4.11 | $ | — | ||||||
Exercisable at October 2, 2016 | 4,494 | $ | 2.62 | 2.82 | $ | — | ||||||
Vested and expected to vest at October 2, 2016 | 5,263 | $ | 2.43 | 3.79 | $ | — |
RSUs & PRSUs Outstanding | ||||||
Number of Shares | Weighted Average Grant Date Fair Value | |||||
(in thousands) | ||||||
Nonvested at January 3, 2016 | 1,435 | $ | 2.30 | |||
Granted | 1,127 | 1.05 | ||||
Vested | (475 | ) | 1.02 | |||
Forfeited | (758 | ) | — | |||
Nonvested at October 2, 2016 | 1,329 | $ | 1.92 |
Three Months Ended | Nine Months Ended | ||||||||||
October 2, 2016 | September 27, 2015 | October 2, 2016 | September 27, 2015 | ||||||||
Expected term (months) | 6.08 | 6.08 | 6.08 | 6.08 | |||||||
Risk-free interest rate | 0.40 | % | 0.08 | % | 0.40 | % | 0.08 | % | |||
Volatility | 54.31 | % | 51.54 | % | 54.31 | % | 51.54 | % | |||
Dividend yield | — | — | — | — |
Three Months Ended | Nine Months Ended | ||||||||||||||
October 2, 2016 | September 27, 2015 | October 2, 2016 | September 27, 2015 | ||||||||||||
Revenue by product line (1): | |||||||||||||||
New products | $ | 1,339 | $ | 2,855 | $ | 4,028 | $ | 9,952 | |||||||
Mature products | 1,470 | 1,339 | 4,448 | 5,374 | |||||||||||
Total revenue | $ | 2,809 | $ | 4,194 | $ | 8,476 | $ | 15,326 |
Three Months Ended | Nine Months Ended | ||||||||||||||
October 2, 2016 | September 27, 2015 | October 2, 2016 | September 27, 2015 | ||||||||||||
Revenue by geography: | |||||||||||||||
Asia Pacific (1) | $ | 1,726 | $ | 3,044 | $ | 5,232 | $ | 10,334 | |||||||
North America (2) | 682 | 690 | 2,139 | 3,619 | |||||||||||
Europe | 401 | 460 | 1,105 | 1,373 | |||||||||||
Total revenue | $ | 2,809 | $ | 4,194 | $ | 8,476 | $ | 15,326 |
Three Months Ended | Nine Months Ended | ||||||||||
October 2, 2016 | September 27, 2015 | October 2, 2016 | September 27, 2015 | ||||||||
Distributor "A" | 20 | % | 15 | % | 26 | % | 24 | % | |||
Customer "B" | 12 | % | 10 | % | 16 | % | 14 | % | |||
Customer "G" | 39 | % | 57 | % | 35 | % | 44 | % |
October 2, 2016 | January 3, 2016 | ||||
Distributor "A" | 35 | % | 24 | % | |
Distributor “B” | * | 11 | % | ||
Distributor "G" | * | 11 | % | ||
Customer "G" | 44 | % | 20 | % | |
Customer "H" | * | 11 | % |
* | Represents less than 10% of accounts receivable as of the date presented. |
Operating Leases | |||
(in thousands) | |||
Fiscal Years | |||
2016 (Remaining 3 months) | $ | 213 | |
2017 | 797 | ||
2018 | 799 | ||
2019 | 165 | ||
2020 | 170 | ||
2021 | 84 | ||
$ | 2,228 |
Three Months Ended | Nine Months Ended | ||||||||
October 2, 2016 | September 27, 2015 | October 2, 2016 | September 27, 2015 | ||||||
Revenue | 100 | % | 100 | % | 100 | % | 100 | % | |
Cost of revenue | 68 | % | 70 | % | 67 | % | 59 | % | |
Gross profit | 32 | % | 30 | % | 33 | % | 41 | % | |
Operating expenses: | |||||||||
Research and development | 98 | % | 88 | % | 117 | % | 70 | % | |
Selling, general and administrative | 96 | % | 60 | % | 94 | % | 53 | % | |
Restructuring Costs | — | % | 2 | % | — | % | 2 | % | |
Loss from operations | (163 | )% | (119 | )% | (178 | )% | (84 | )% | |
Interest expense | (1 | )% | (1 | )% | (1 | )% | — | % | |
Interest income and other expense, net | (1 | )% | (1 | )% | (1 | )% | (1 | )% | |
Loss before income taxes | (165 | )% | (121 | )% | (180 | )% | (85 | )% | |
Provision (benefit from) for income taxes | (1 | )% | — | % | 1 | % | — | % | |
Net loss | (164 | )% | (121 | )% | (181 | )% | (85 | )% |
Three Months Ended | ||||||||||||||||||||
October 2, 2016 | September 27, 2015 | Change | ||||||||||||||||||
Amount | % of Total Revenues | Amount | % of Total Revenues | Amount | Percentage | |||||||||||||||
Revenue by product line (1): | ||||||||||||||||||||
New products | $ | 1,339 | 48 | % | $ | 2,855 | 68 | % | $ | (1,516 | ) | (53 | )% | |||||||
Mature products | 1,470 | 52 | % | 1,339 | 32 | % | 131 | 10 | % | |||||||||||
Total revenue | $ | 2,809 | 100 | % | $ | 4,194 | 100 | % | $ | (1,385 | ) | (33 | )% |
Three Months Ended | ||||||||||||||||||||
October 2, 2016 | September 27, 2015 | Change | ||||||||||||||||||
Amount | % of Total Revenues | Amount | % of Total Revenues | Amount | Percentage | |||||||||||||||
Revenue | $ | 2,809 | 100 | % | $ | 4,194 | 100 | % | $ | (1,385 | ) | (33 | )% | |||||||
Cost of revenue | 1,918 | 68 | % | 2,952 | 70 | % | (1,034 | ) | (35 | )% | ||||||||||
Gross Profit | $ | 891 | 32 | % | $ | 1,242 | 30 | % | $ | (351 | ) | (28 | )% |
Three Months Ended | ||||||||||||||||||||
October 2, 2016 | September 27, 2015 | Change | ||||||||||||||||||
Amount | % of Total Revenues | Amount | % of Total Revenues | Amount | Percentage | |||||||||||||||
R&D expense | $ | 2,755 | 98 | % | $ | 3,684 | 88 | % | $ | (929 | ) | (25 | )% | |||||||
SG&A expense | 2,704 | 96 | % | 2,508 | 60 | % | 196 | 8 | % | |||||||||||
Restructuring charges | — | — | % | 77 | 2 | % | (77 | ) | 100 | % | ||||||||||
Total operating expenses | $ | 5,459 | 194 | % | $ | 6,269 | 150 | % | $ | (810 | ) | (13 | )% |
Three Months Ended | Change | |||||||||||||
October 2, 2016 | September 27, 2015 | Amount | Percentage | |||||||||||
Interest expense | $ | (37 | ) | $ | (35 | ) | $ | 2 | (6 | )% | ||||
Interest income and other expense, net | (41 | ) | (39 | ) | 2 | (5 | )% | |||||||
$ | (78 | ) | $ | (74 | ) | $ | 4 | (5 | )% |
Three Months Ended | Change | |||||||||||||
October 2, 2016 | September 27, 2015 | Amount | Percentage | |||||||||||
Benefit from income taxes | $ | (23 | ) | $ | (15 | ) | $ | (8 | ) | 53 | % |
Nine Months Ended | ||||||||||||||||||||
October 2, 2016 | September 27, 2015 | Change | ||||||||||||||||||
Amount | % of Total Revenues | Amount | % of Total Revenues | Amount | Percentage | |||||||||||||||
Revenue by product line (1): | ||||||||||||||||||||
New products | $ | 4,028 | 48 | % | $ | 9,952 | 65 | % | $ | (5,924 | ) | (60 | )% | |||||||
Mature products | 4,448 | 52 | % | 5,374 | 35 | % | (926 | ) | (17 | )% | ||||||||||
Total revenue | $ | 8,476 | 100 | % | $ | 15,326 | 100 | % | $ | (6,850 | ) | (45 | )% |
Nine Months Ended | ||||||||||||||||||||
October 2, 2016 | September 27, 2015 | Change | ||||||||||||||||||
Amount | % of Total Revenues | Amount | % of Total Revenues | Amount | Percentage | |||||||||||||||
Revenue | $ | 8,476 | 100 | % | $ | 15,326 | 100 | % | $ | (6,850 | ) | (45 | )% | |||||||
Cost of revenue | 5,653 | 67 | % | 9,062 | 59 | % | (3,409 | ) | (38 | )% | ||||||||||
Gross Profit | $ | 2,823 | 33 | % | $ | 6,264 | 41 | % | $ | (3,441 | ) | (55 | )% |
Nine Months Ended | ||||||||||||||||||||
October 2, 2016 | September 27, 2015 | Change | ||||||||||||||||||
Amount | % of Total Revenues | Amount | % of Total Revenues | Amount | Percentage | |||||||||||||||
R&D expense | $ | 9,885 | 117 | % | $ | 10,654 | 70 | % | $ | (769 | ) | (7 | )% | |||||||
SG&A expense | 7,988 | 94 | % | 8,158 | 53 | % | (170 | ) | (2 | )% | ||||||||||
Restructuring charges | — | — | % | 246 | 2 | % | (246 | ) | 100 | % | ||||||||||
Total operating expenses | $ | 17,873 | 211 | % | $ | 19,058 | 125 | % | $ | (1,185 | ) | (6 | )% |
Nine Months Ended | Change | |||||||||||||
October 2, 2016 | September 27, 2015 | Amount | Percentage | |||||||||||
Interest expense | $ | (109 | ) | $ | (64 | ) | $ | (45 | ) | 70 | % | |||
Interest income and other expense, net | (63 | ) | (98 | ) | 35 | (36 | )% | |||||||
$ | (172 | ) | $ | (162 | ) | $ | (10 | ) | 6 | % |
Nine Months Ended | Change | |||||||||||||
October 2, 2016 | September 27, 2015 | Amount | Percentage | |||||||||||
Provision for income taxes | $ | 68 | $ | 46 | $ | 22 | 48 | % |
Nine Months Ended | |||||||
October 2, 2016 | September 27, 2015 | ||||||
Net cash used in operating activities | $ | (11,694 | ) | $ | (6,508 | ) | |
Net cash used in investing activities | (1,562 | ) | (237 | ) | |||
Net cash provided by financing activities | 11,881 | 136 |
Payments Due by Period | |||||||||||||||
Total | Less than 1 Year | 1-3 Years | More than 3 Years | ||||||||||||
Contractual obligations: | |||||||||||||||
Operating leases | $ | 2,228 | $ | 815 | $ | 1,116 | $ | 297 | |||||||
Wafer purchases (1) | 2,665 | 2,665 | — | — | |||||||||||
Other purchase commitments | 1,127 | 1,125 | 2 | — | |||||||||||
Total contractual cash obligations | 6,020 | 4,605 | 1,118 | 297 | |||||||||||
Other commercial commitments (2): | |||||||||||||||
Revolving line of credit | 5,000 | 5,000 | — | ||||||||||||
Capital lease obligations (3) | 230 | 208 | 22 | — | |||||||||||
Total commercial commitments | 5,230 | 5,208 | 22 | — | |||||||||||
Total contractual obligations and commercial commitments | $ | 11,250 | $ | 9,813 | $ | 1,140 | $ | 297 |
(1) | Certain of our wafer manufacturers require us to forecast wafer starts several months in advance. We are committed to accept the delivery of and pay for a portion of forecasted wafer volume. Wafer and finished goods purchase commitments of $2.7 million include firm purchase commitments as of October 2, 2016. |
(2) | Other commercial commitments are included as liabilities on our balance sheet as of October 2, 2016. |
(3) | For a detailed explanation, see Note 5 to the Condensed Unaudited Consolidated Financial Statements. |
Exhibit Number | Description | |
31.1 | Certification of Brian C. Faith Chief Executive Officer, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
31.2 | Certification of Suping (Sue) Cheung, Chief Accounting Officer , pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
32.1 | Certification of Brian C. Faith, Chief Executive Officer, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |
32.2 | Certification of Suping (Sue) Cheung, Chief Accounting 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 Document | |
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document | |
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document | |
101.LAB | XBRL Taxonomy Extension Label Linkbase Document | |
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document |
QUICKLOGIC CORPORATION | ||
/s/ Suping (Sue) Cheung | ||
Date: | November 10, 2016 | Suping (Sue) Cheung |
Vice President, Finance and Chief Accounting Officer (as Principal Accounting and Financial Officer and on behalf of the Registrant) |
Exhibit Number | Description | |
31.1 | Certification of Brian C. Faith Chief Executive Officer, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
31.2 | Certification of Suping (Sue) Cheung, Chief Accounting Officer, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
32.1 | Certification of Brian C. Faith, Chief Executive Officer, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |
32.2 | Certification of Suping (Sue) Cheung, Chief Accounting 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 Document | |
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document | |
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document | |
101.LAB | XBRL Taxonomy Extension Label Linkbase Document | |
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document |
1. | I have reviewed this quarterly report on Form 10-Q of QuickLogic Corporation; |
2. | Based on my knowledge, this 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 present 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 control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
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 the registrant's board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Date: | November 10, 2016 | |
/s/ Brian C. Faith | ||
Brain C. Faith | ||
President and Chief Executive Officer |
1. | I have reviewed this quarterly report on Form 10-Q of QuickLogic Corporation; |
2. | Based on my knowledge, this 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 present 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 control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
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 the registrant's board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Date: | November 10, 2016 | |
/s/ Suping (Sue) Cheung | ||
Suping (Sue) Cheung | ||
Vice President, Finance and Chief Accounting Officer |
• | the Quarterly Report on Form 10-Q of the Company for the quarter ended October 2, 2016 (the "Report"), fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
• | the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company for the periods presented therein. |
Date: | November 10, 2016 | By: | /s/ Brian C. Faith |
Name: | Brian C. Faith | ||
Title: | President and Chief Executive Officer |
• | the Quarterly Report on Form 10-Q of the Company for the quarter ended October 2, 2016 (the "Report"), fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
• | the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company for the periods presented therein. |
Date: | November 10, 2016 | By: | /s/ Suping (Sue) Cheung |
Name: | Suping (Sue) Cheung | ||
Title: | Vice President, Finance and Chief Accounting Officer |
Document and Entity Information - shares |
9 Months Ended | |
---|---|---|
Oct. 02, 2016 |
Nov. 04, 2016 |
|
Document and Entity Information [Abstract] | ||
Entity Registrant Name | QUICKLOGIC CORPORATION | |
Entity Central Index Key | 0000882508 | |
Current Fiscal Year End Date | --01-01 | |
Entity Filer Category | Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Oct. 02, 2016 | |
Document Fiscal Year Focus | 2016 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 67,791,302 |
CONDENSED UNAUDITED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands |
Oct. 02, 2016 |
Jan. 03, 2016 |
---|---|---|
Current Assets: | ||
Allowance for doubtful accounts | $ 0 | $ 0 |
Stockholders' Equity: | ||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 67,789,000 | 56,904,000 |
Common stock, shares outstanding | 67,789,000 | 56,904,000 |
CONDENSED UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Oct. 02, 2016 |
Sep. 27, 2015 |
Oct. 02, 2016 |
Sep. 27, 2015 |
|
Income Statement [Abstract] | ||||
Revenue | $ 2,809 | $ 4,194 | $ 8,476 | $ 15,326 |
Cost of revenue | 1,918 | 2,952 | 5,653 | 9,062 |
Gross profit | 891 | 1,242 | 2,823 | 6,264 |
Operating expenses: | ||||
Research and development | 2,755 | 3,684 | 9,885 | 10,654 |
Selling, general and administrative | 2,704 | 2,508 | 7,988 | 8,158 |
Restructuring costs | 0 | 77 | 0 | 246 |
Total operating expenses | 5,459 | 6,269 | 17,873 | 19,058 |
Loss from operations | (4,568) | (5,027) | (15,050) | (12,794) |
Interest expense | (37) | (35) | (109) | (64) |
Interest income and other expense, net | (41) | (39) | (63) | (98) |
Loss before income taxes | (4,646) | (5,101) | (15,222) | (12,956) |
(Benefit from) provision for income taxes | (23) | (15) | 68 | 46 |
Net loss | $ (4,623) | $ (5,086) | $ (15,290) | $ (13,002) |
Net loss per share: | ||||
Basic (in dollars per share) | $ (0.07) | $ (0.09) | $ (0.24) | $ (0.23) |
Diluted (in dollars per share) | $ (0.07) | $ (0.09) | $ (0.24) | $ (0.23) |
Weighted average shares: | ||||
Basic (in shares) | 67,781 | 56,588 | 64,522 | 56,379 |
Diluted (in shares) | 67,781 | 56,588 | 64,522 | 56,379 |
CONDENSED UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Oct. 02, 2016 |
Sep. 27, 2015 |
Oct. 02, 2016 |
Sep. 27, 2015 |
|
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (4,623) | $ (5,086) | $ (15,290) | $ (13,002) |
Total other comprehensive income, net of tax | 0 | 0 | 0 | 0 |
Total comprehensive loss | $ (4,623) | $ (5,086) | $ (15,290) | $ (13,002) |
The Company and Basis of Presentation |
9 Months Ended |
---|---|
Oct. 02, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
The Company and Basis of Presentation | The Company and Basis of Presentation QuickLogic Corporation ("QuickLogic" or "the Company") was founded in 1988 and reincorporated in Delaware in 1999. The Company enables Original Equipment Manufacturers ("OEMs") to maximize battery life for highly differentiated, immersive user experiences with Smartphone, Wearable, Tablet and Internet-of-Things ("IoT") devices. QuickLogic delivers these benefits through industry leading ultra-low power customer programmable System on Chip ("SoC") semiconductor solutions, embedded software, and algorithm solutions for always-on voice and sensor processing, and enhanced visual experiences. The Company is a fabless semiconductor provider of comprehensive, flexible sensor processing solutions, ultra-low power display bridges, and ultra-low power Field Programmable Gate Arrays, or FPGAs. The accompanying interim condensed consolidated financial statements are unaudited. In the opinion of management, these statements have been prepared in accordance with United States generally accepted accounting principles ("U.S. GAAP"), and include all adjustments, consisting only of normal recurring adjustments, necessary to provide a fair statement of results for the interim periods presented. The Company recommends that these interim condensed consolidated financial statements be read in conjunction with the Company's Form 10-K for the year ended January 3, 2016. Operating results for the nine months ended October 2, 2016 are not necessarily indicative of the results that may be expected for the full year. QuickLogic's fiscal year ends on the Sunday closest to December 31 and the fiscal quarters each end on the Sunday closest to the end of each calendar quarter. QuickLogic's third fiscal quarters for 2016 and for 2015 ended on Sunday, October 2, 2016 and September 27, 2015, respectively. Liquidity The Company has financed its operations and capital investments through sales of common stock, capital and operating leases, and bank lines of credit. As of October 2, 2016, the Company's principal sources of liquidity consisted of cash and cash equivalents of $17.8 million and $1.0 million in available credit under its revolving line of credit with Silicon Valley Bank, which expires on September 25, 2017. On September 25, 2015, the Company entered into a Second Amendment to Third Amended and Restated Loan and Security Agreement with Silicon Valley Bank to extend the line of credit for two years through September 25, 2017. This amendment modifies some of the financial covenants. This line of credit provides for committed loan advances of up to $6.0 million, subject to increases at the Company's election of up to $12.0 million. On February 10, 2016, the Company entered into a Third Amendment to Third and Restated Loan and Security Agreement to further modify the covenants. See Note 5 for a description of the modified covenants. The Company is in compliance with all loan covenants as of the end of the current reporting period. On March 21, 2016, the Company issued 10.0 million shares of common stock at a price of $1.00 per share, $0.001 par value. The Company received net proceeds of approximately $8.8 million, after deducting underwriting commissions and other offering related expenses. The Company uses the net proceeds from the offering for working capital and other general corporate purposes. The Company may also use a portion of the net proceeds to acquire and/or license technologies and acquire and/or invest in businesses when the opportunity arises. The shares were offered pursuant to a shelf registration statement previously filed with the SEC, which was declared effective by the SEC on August 30, 2013, and as supplemented by a prospectus supplement dated March 17, 2016 filed with the Securities and Exchange Commission ("SEC") pursuant to Rule 424(b) under the Securities Act of 1933, as amended. The Company currently uses its cash to fund its capital expenditures and operating losses. Based on past operating performance and current annual operating plans, the Company believes that its existing cash and cash equivalents, together with available financial resources from the revolving line of credit with Silicon Valley Bank and equity funding raised during March 2016 will be sufficient to fund its operations and capital expenditures and provide adequate working capital for the next twelve months. The Company's liquidity is affected by many factors including, among others: the level of revenue and gross profit as a result of the cyclicality of the semiconductor industry; the conversion of design opportunities into revenue; market acceptance of existing and new products including solutions based on its EOSTM, ArcticLink®, and PolarPro® solution platforms; fluctuations in revenue as a result of product end-of-life; fluctuations in revenue as a result of the stage in the product life cycle of its customers' products; costs of securing access to and availability of adequate manufacturing capacity; levels of inventories; wafer purchase commitments; customer credit terms; the amount and timing of research and development expenditures; the timing of new product introductions; production volumes; product quality; sales and marketing efforts; the value and liquidity of its investment portfolio; changes in operating assets and liabilities; the ability to obtain or renew debt financing and to remain in compliance with the terms of existing credit facilities; the ability to raise funds from the sale of equity in the Company; the issuance and exercise of stock options and participation in the Company's employee stock purchase plan; and other factors related to the uncertainties of the industry and global economics. Over the longer term, the Company anticipates that the generation of sales from its new product offerings, existing cash and cash equivalents, together with financial resources from its revolving line of credit with Silicon Valley Bank and its ability to raise additional capital in the public capital markets will be sufficient to satisfy its operations and capital expenditures requirements. However, the Company cannot provide any assurance that it will be able to raise additional capital, if required, or that such capital will be available on terms acceptable to the Company. The inability of the Company to generate sufficient sales from its new product offerings and/or raise additional capital if needed could have a material adverse effect on the Company’s operations and financial condition, including its ability to maintain compliance with its lender’s financial covenants. Principles of Consolidation The consolidated financial statements include the accounts of QuickLogic and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated. Foreign Currency The functional currency of the Company's non-U.S. operations is the U.S. dollar. Accordingly, all monetary assets and liabilities of these foreign operations are translated into U.S. dollars at current period-end exchange rates and non-monetary assets and related elements of expense are translated using historical exchange rates. Income and expense elements are translated to U.S. dollars using the average exchange rates in effect during the period. Gains and losses from the foreign currency transactions of these subsidiaries are recorded as interest income and other expense, net in the condensed unaudited consolidated statements of operations. Uses of Estimates The preparation of these consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities and the reported amounts of revenue and expenses during the period. Actual results could differ materially from those estimates, particularly in relation to revenue recognition, the allowance for doubtful accounts, sales returns, valuation of investments, valuation of long-lived assets including mask sets, valuation of inventories including identification of excess quantities, market value and obsolescence, measurement of stock-based compensation awards, accounting for income taxes and estimating accrued liabilities. Concentration of Risk The Company's accounts receivable are denominated in U.S. dollars and are derived primarily from sales to customers located in North America, Asia Pacific, and Europe. The Company performs ongoing credit evaluations of its customers and generally does not require collateral. See Note 11 for information regarding concentrations associated with accounts receivable. For the three and nine months ended October 2, 2016, the Company generated 39% and 35% of its total revenue from shipments to Samsung Electronics Co., Ltd. ("Samsung"). See Note 11 for information regarding concentrations associated with customers and distributors. |
Significant Accounting Policies |
9 Months Ended |
---|---|
Oct. 02, 2016 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies During the nine months ended October 2, 2016, there were no changes in the Company's significant accounting policies from its disclosure in the Annual Report on Form 10-K for the year ended January 3, 2016. For a discussion of the significant accounting policies, please see the Annual Report on Form 10-K for the fiscal year ended January 3, 2016, filed with the SEC, on March 18, 2016. New Accounting Pronouncements In August 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. This update clarifies how certain cash receipts and cash payments are presented and classified in the statement of cash flows. This ASU is effective for public business entities for fiscal years beginning after December 15, 2017, and for interim periods therein with early adoption permitted and must be applied retrospectively to all periods presented. The Company is currently evaluating the impact of our pending adoption of the new standard on our consolidated financial statements. In May 2016, the FASB issued ASU No. 2016-12, Revenue from contracts with customers (Topic 606): Narrow Scope Improvements and Practical Expedients. This update among other things: (1) clarify the object of the collectability criterion for applying paragraph 606-10-25-7; (2) permit an entity to exclude amounts collected from customers for all sales (and other similar) taxes from transaction price; (3) specify that the measurement date for noncash consideration is contract inception; (4) provide a practical expedient that permits an entity to reflect the aggregate effect of all modifications that occur before the beginning of the earliest period presented when identifying the satisfied and unsatisfied performance obligations, determining the transaction price, and allocating the transaction price to the satisfied and unsatisfied performance obligations; (5) clarify that a completed contract for purposes of transition is a contract for which all (or substantially all) of the revenue was recognized under legacy GAAP before the date of initial application, and (6) clarify that an entity that retrospectively applies the guidance in Topic 606 to each prior period reporting is not required to disclose the effect of the accounting change for the period of adoption. This amendment is effective for public entities for annual reports beginning after December 15, 2017, including interim periods therein. For nonpublic entities one year later. The Company is currently evaluating the impact of our pending adoption of the new standard on our consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. This update was issued as part of the FASB’s simplification initiative and affects all entities that issue share-based payment awards to their employees. The amendments in this update cover such areas as the recognition of excess tax benefits and deficiencies, the classification of those excess tax benefits on the statement of cash flows, an accounting policy election for forfeitures, the amount an employer can withhold to cover income taxes and still qualify for equity classification and the classification of those taxes paid on the statement of cash flows. This update is effective for annual and interim periods beginning after December 15, 2016, which will require us to adopt these provisions in the first quarter of fiscal year 2017. This guidance can be applied either prospectively, retrospectively or using a modified retrospective transition method, depending on the area covered in this update. Early adoption is permitted. The Company is currently evaluating the impact of our pending adoption of the new standard on our consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-08, Revenue from contracts with customers (Topic 606): Principal versus Agent Considerations Reporting Revenue Gross versus Net. The amendments are intended to improve the operability and understandability of the implementation guidance on principal versus agent considerations by amending certain existing illustrative examples and adding additional illustrative examples to assist in the application of the guidance. The effective date and transition of these amendments is the same as the effective date and transition of ASU 2014-09. Public entities should apply the amendments in ASU 2014-09 for annual reporting periods beginning after December 15, 2017, including interim reporting periods therein (i.e., January 1, 2018, for a calendar year entity). Private entities must apply the amendments one year later. The Company is currently evaluating the impact of our pending adoption of the new standard on our consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases. The new standard establishes a right-of-use ("ROU") model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. The Company is currently evaluating the impact of our pending adoption of the new standard on our consolidated financial statements. In July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330): Simplifying the measurement of Inventory, which amends the accounting guidance on the valuation of inventory. The guidance requires an entity to measure in scope inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The amendment applies to inventory valued at first-in, first-out or average cost. This guidance is effective for reporting periods beginning after December 15, 2016, including interim periods within those fiscal years. The Company is currently evaluating the impact of ASU 2015-11 on its consolidated financial statements and footnote disclosures. Other new accounting pronouncements are disclosed on the Annual Report on Form 10-K for the fiscal year ended January 3, 2016 filed with the SEC on March 18, 2016. |
Net Loss Per Share |
9 Months Ended |
---|---|
Oct. 02, 2016 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | Net Loss Per Share Basic loss per share is computed by dividing net loss available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted net loss per share was computed using the weighted average number of common shares outstanding during the period plus potentially dilutive common shares outstanding during the period under the treasury stock method. In computing diluted net loss per share, the weighted average stock price for the period is used in determining the number of shares assumed to be purchased from the exercise of stock options and warrants. The following shares were not included in the calculation of diluted net loss per share for the three and nine months ended October 2, 2016 and September 27, 2015: (i) 7.8 million and 6.8 million of common shares associated with equity awards outstanding and the estimated number of shares to be purchased under the current offering period of the 2009 Employee Stock Purchase Plan, respectively, and (ii) warrants to purchase up to 2.3 million shares of common stock as of October 2, 2016 and September 27, 2015, respectively. These shares were not included as they were considered antidilutive due to the net loss the Company experienced during these periods. |
Balance Sheet Components |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance Sheet Components | Balance Sheet Components The following provides details relating to certain balance sheet accounts as of October 2, 2016, and January 3, 2016:
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Financing Obligations |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financing Obligations | Obligations The following provides details relating to the Company’s financing obligations as of October 2, 2016 and January 3, 2016:
Revolving Line of Credit On September 25, 2015, the Company entered into the Second Amendment to the Third Amended and Restated Loan and Security Agreement dated September 25, 2015 ("the Loan Agreement") with Silicon Valley Bank (the "Bank"). The terms of the Loan Agreement include a $6.0 million revolving line of credit available through September 25, 2017, subject to increases at the Company's election of up to $12 million. Upon each advance, the Company can elect a Prime Rate advance, which is the prime rate plus the prime rate margin, or a LIBOR advance, which is LIBOR rate plus the LIBOR rate margin. As of the third quarter ended October 2, 2016, the Company had $5.0 million of revolving debt outstanding with an interest rate of 3.63%. On February 10, 2016, the Company entered into a Third Amendment to the Third Amended and Restated Loan and Security Agreement with the Bank to amend certain covenants contained in the Loan Agreement. As amended, the Company is required to maintain, beginning in the quarter ending March 31, 2016, (i) a tangible net worth of at least $12.0 million, plus (a) 50% of the proceeds from any equity issuance, plus (b) 50% of the proceeds from any investments, tested as of the last day of each month; (ii) unrestricted cash or cash equivalents at the Bank or Bank's affiliates at all times in an amount of at least $6.0 million; and (iii) a ratio of quick assets to the results of (i) current liabilities minus (ii) the current portion of deferred revenue plus (iii) the long-term portion of the obligations of at least 2.00 to 1.00, tested as of the last day of each month. Beginning with the second fiscal quarter of 2016, the tangible net worth requirement, is reduced as follows: For the quarter ending June 30, 2016, at least $10.0 million; for the quarter ending September 30, 2016, at least $8.0 million; for the quarter ending December 31, 2016, at least $6.0 million; for the quarter ending March 31, 2017, at least $4.0 million; for the quarter ending June 30, 2017, at least $8.0 million. Beginning with the third fiscal quarter of 2016, the Company is required to maintain a ratio of quick assets to the results of (i) current liabilities minus (ii) the current portion of deferred revenue plus (iii) the long-term portion of the obligations of at least 1.50 to 1.00 in the fiscal quarters ended September 30, 2016 and December 31, 2016 and of at least 1.25 to 1.00 in the fiscal quarters ended March 31, 2017 and June 30, 2017. The Bank has a first priority security interest in substantially all of the Company's tangible and intangible assets to secure any outstanding amounts under the Loan Agreement. Capital Leases In December 2015, the Company leased design software under a two-year capital lease at an imputed interest rate of 4.88% per annum. Terms of the agreement require the Company to make quarterly payments of approximately $22,750 through November 2017, for a total of $182,000. As of October 2, 2016, $109,000 was outstanding under the capital lease, $87,000 of which was classified as a current liability. In July 2015, the Company leased design software under a three-year capital lease at an imputed interest rate of 4.91% per annum. Terms of the agreement require the Company to make annual payments of approximately $67,300 through July 2017, for a total of $202,000. As of October 2, 2016, $64,000 was outstanding under the capital lease, all of which was classified as a current liability. In July 2014, the Company leased design software under a 41-month capital lease at an imputed interest rate of 3.15% per annum. Terms of the agreement require the Company to make payments of principal and interest of $42,000 in August 2014, $16,000 in December 2014, $58,000 in January 2016 and $58,000 in January 2017. The total payments for the lease will be $174,000. As of October 2, 2016, $56,000 was outstanding under this capital lease, all of which was classified as a current liability. |
Fair Value Measurements |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements Pursuant to the accounting guidance for fair value measurements and its subsequent updates, fair value is defined as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Company considers the principal or most advantageous market and it considers assumptions that market participants would use when pricing the asset or liability. The accounting guidance for fair value measurement also specifies a hierarchy of valuation techniques based upon whether the inputs to those valuation techniques reflect assumptions other market participants would use based upon market data obtained from independent sources (observable inputs), or reflect the Company's own assumptions of market participant valuation (unobservable inputs). The fair value hierarchy consists of the following three levels:
The following table presents the Company's financial assets that are measured at fair value on a recurring basis as of October 2, 2016 and January 3, 2016, consistent with the fair value hierarchy provisions of the authoritative guidance (in thousands):
_________________ (1) Money market funds are presented as a part of cash and cash equivalents on the accompanying consolidated balance sheets as of October 2, 2016 and January 3, 2016. |
Stockholders' Equity |
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Oct. 02, 2016 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders' Equity Common Stock and Preferred Stock The Company is authorized to issue 100 million shares of common stock and has 10 million shares of authorized but unissued shares of preferred stock. Without any further vote or action by the Company's stockholders, the Board of Directors has the authority to determine the powers, preferences, rights, qualifications, limitations or restrictions granted to or imposed upon any wholly unissued shares of undesignated preferred stock. Issuance of Common Stock and Warrants In March 2016, the Company issued an aggregate of 10,000,000 shares of common stock, $0.001 par value, in an underwritten public offering at a price of $1.00 per share. The Company received net proceeds from the offering of approximately $8.8 million, net of underwriter's commission and other offering expenses of $1.2 million. As of October 2, 2016, 2.3 million warrants were outstanding. The 2.3 million warrants with a strike price of $2.98 were issued in conjunction with a June 2012 financing. These warrants will expire in June 2017. After August 2016, the warrants can only be exercised on a cashless basis. |
Employee Stock Plans |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employee Stock Plans | Employee Stock Plans 2009 Stock Plan The 2009 Stock Plan, or 2009 Plan, was amended and restated by the Board of Directors in January 2015 and approved by the Company's stockholders on April 23, 2015 to, among other things, reserve an additional 2.5 million shares of common stock for issuance under the 2009 Plan. As of October 2, 2016, approximately 9.8 million shares were reserved for issuance under the 2009 Plan. Equity awards that are cancelled, forfeited or repurchased under the 1999 Plan become available for grant under the 2009 Plan, up to a maximum of an additional 10 million shares. Equity awards granted under the 2009 Plan have a term of up to ten years. Options typically vest at a rate of 25% one year after the vesting commencement date, and one forty-eighth for each month of service thereafter. RSUs typically vest at a rate of 25% one year after the vesting commencement date, and one eighth every six months thereafter. The Company may implement different vesting schedules in the future with respect to any new equity awards. Employee Stock Purchase Plan The 2009 Employee Stock Purchase Plan, or 2009 ESPP, was adopted in March 2009. In January 2015, the 2009 ESPP was amended by the Board of Directors and approved by the Company's stockholders on April 23, 2015 to reserve an additional 1.0 million shares of common stock for issuance under the 2009 ESPP. As of October 2, 2016, approximately 3.3 million shares were reserved for issuance under the 2009 ESPP Plan. The 2009 ESPP provides for six month offering periods. Participants purchase shares through payroll deductions of up to 20% of an employee's total compensation (maximum of 20,000 shares per offering period). The 2009 ESPP permits the Board of Directors to determine, prior to each offering period, whether participants purchase shares at: (i) 85% of the fair market value of the common stock at the end of the offering period; or (ii) 85% of the lower of the fair market value of the common stock at the beginning or the end of an offering period. The Board of Directors has determined that, until further notice, future offering periods will be made at 85% of the lower of the fair market value of the common stock at the beginning or the end of an offering period. Stock-Based Compensation The Company's equity incentive program is a broad-based, long-term retention program intended to attract, motivate, and retain talented employees as well as align stockholder and employee interests. The Company provides stock-based incentive compensation, or awards, to eligible employees and non-employee directors. Awards that may be granted under the program include non-qualified and incentive stock options, restricted stock units, or RSUs, performance-based restricted stock units, or PRSUs, and cash settlement of stock appreciation rights, or SARs. To date, awards granted under the program consist of stock options, RSUs and PRSUs. The majority of stock-based awards granted under the program vest over four years. Stock options granted under the program have a maximum contractual term of ten years. The stock-based compensation expense included in the Company's consolidated financial statements for the three and nine months ended October 2, 2016 and September 27, 2015 was as follows (in thousands):
No stock-based compensation was capitalized during any period presented above. * Stock-based compensation related to restructuring plan was initiated during the second quarter of 2015. Valuation Assumptions The Company uses the Black-Scholes option pricing model to estimate the fair value of employee stock options and rights to purchase shares under the Company's 2009 ESPP. Using the Black-Scholes pricing model requires the Company to develop highly subjective assumptions including the expected term of awards, expected volatility of its stock, expected risk-free interest rate and expected dividend rate over the term of the award. The Company's expected term of awards assumption is based primarily on its historical experience with similar grants. The Company's expected stock price volatility assumption for both stock options and ESPP shares is based on the historical volatility of the Company's stock, using the daily average of the opening and closing prices and measured using historical data appropriate for the expected term. The risk-free interest rate assumption approximates the risk-free interest rate of a Treasury Constant Maturity bond with a maturity approximately equal to the expected term of the stock option or ESPP shares. This fair value is expensed over the requisite service period of the award. The fair value of RSUs and PRSUs is based on the closing price of the Company's common stock on the date of grant. Equity compensation awards which vest with service are expensed using the straight-line attribution method over the requisite service period. In addition to the assumptions used in the Black-Scholes pricing model, the amended authoritative guidance requires that the Company recognize expense for awards ultimately expected to vest; therefore the Company is required to develop an estimate of the number of awards expected to be forfeited prior to vesting, or forfeiture rate. The forfeiture rate is estimated based on historical pre-vest cancellation experience and is applied to all share-based awards. The following weighted average assumptions are included in the estimated fair value calculations for stock option grants:
The weighted average estimated fair value for options granted during the three months ended October 2, 2016 was $0.46. No stock options were granted in the third quarter of 2015. The weighted average estimated fair value for options granted during the nine months of 2016 and 2015 were $0.46 and $0.90 per option, respectively. As of October 2, 2016 and September 27, 2015, the fair value of unvested stock options, net of expected forfeitures, was approximately $1.9 million and $2.3 million, respectively. This unrecognized stock-based compensation expense is expected to be recorded over a weighted average period of 3.33 years. Stock-Based Compensation Award Activity The following table summarizes the activity in the shares available for grant under the 2009 Plan during the nine months ended October 2, 2016:
Stock Options The following table summarizes stock options outstanding and stock option activity under the 1999 Plan and the 2009 Plan, and the related weighted average exercise price, for the first nine months of 2016:
No stock options were exercised during the three and nine months ended October 2, 2016. The total intrinsic value of options exercised during the first nine months of 2016 and 2015 was $0 and $83,000, respectively. Total cash received from employees as a result of employee stock option exercises during the first nine months of 2016 and 2015 was approximately $0 and $117,000 respectively. The Company settles employee stock option exercises with newly issued common shares. In connection with these exercises, there was no tax benefit realized by the Company due to the Company's current loss position. Total stock-based compensation related to stock options was $189,000 and $403,000 for the three months and nine months ended October 2, 2016. Restricted Stock Units and Performance-based Restricted Stock Units The Company began issuing RSUs and PRSUs in the third quarter of 2007. RSUs entitle the holder to receive, at no cost, one common share for each RSU as it vests. In general, the Company's policy is to withhold shares in settlement of employee tax withholding obligations upon the vesting of RSUs. The stock-based compensation related to RSUs and PRSUs was $154,000 and $49,000 for the three months and $693,000 and $137,000 for the nine months ended October 2, 2016, respectively. As of October 2, 2016, there was $1.3 million in unrecognized compensation expense related to RSUs and PRSUs. A summary of activity for the Company's RSUs and PRSUs for the nine months ended October 2, 2016 and information regarding RSUs and PRSUs outstanding and expected to vest as of October 2, 2016 is as follows:
Employee Stock Purchase Plan The weighted average estimated fair value, as defined by the amended authoritative guidance, of rights issued pursuant to the Company's 2009 ESPP during the third quarters of 2016 and 2015 was $0.31 and $0.48 per right, respectively. As of October 2, 2016, 917,000 shares remained available for issuance under the 2009 ESPP. For the three and nine months ended October 2, 2016, the Company recorded stock-based compensation expense related to the 2009 ESPP of $65,000 and $225,000, respectively. The fair value of rights issued pursuant to the Company's 2009 ESPP was estimated on the commencement date of each offering period using the following weighted average assumptions:
As of October 2, 2016, the unrecognized stock-based compensation expense relating to the Company's 2009 ESPP was $31,000 and is expected to be recognized over a weighted average period of approximately 1.5 months. |
Stock-Based Compensation |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-Based Compensation | Employee Stock Plans 2009 Stock Plan The 2009 Stock Plan, or 2009 Plan, was amended and restated by the Board of Directors in January 2015 and approved by the Company's stockholders on April 23, 2015 to, among other things, reserve an additional 2.5 million shares of common stock for issuance under the 2009 Plan. As of October 2, 2016, approximately 9.8 million shares were reserved for issuance under the 2009 Plan. Equity awards that are cancelled, forfeited or repurchased under the 1999 Plan become available for grant under the 2009 Plan, up to a maximum of an additional 10 million shares. Equity awards granted under the 2009 Plan have a term of up to ten years. Options typically vest at a rate of 25% one year after the vesting commencement date, and one forty-eighth for each month of service thereafter. RSUs typically vest at a rate of 25% one year after the vesting commencement date, and one eighth every six months thereafter. The Company may implement different vesting schedules in the future with respect to any new equity awards. Employee Stock Purchase Plan The 2009 Employee Stock Purchase Plan, or 2009 ESPP, was adopted in March 2009. In January 2015, the 2009 ESPP was amended by the Board of Directors and approved by the Company's stockholders on April 23, 2015 to reserve an additional 1.0 million shares of common stock for issuance under the 2009 ESPP. As of October 2, 2016, approximately 3.3 million shares were reserved for issuance under the 2009 ESPP Plan. The 2009 ESPP provides for six month offering periods. Participants purchase shares through payroll deductions of up to 20% of an employee's total compensation (maximum of 20,000 shares per offering period). The 2009 ESPP permits the Board of Directors to determine, prior to each offering period, whether participants purchase shares at: (i) 85% of the fair market value of the common stock at the end of the offering period; or (ii) 85% of the lower of the fair market value of the common stock at the beginning or the end of an offering period. The Board of Directors has determined that, until further notice, future offering periods will be made at 85% of the lower of the fair market value of the common stock at the beginning or the end of an offering period. Stock-Based Compensation The Company's equity incentive program is a broad-based, long-term retention program intended to attract, motivate, and retain talented employees as well as align stockholder and employee interests. The Company provides stock-based incentive compensation, or awards, to eligible employees and non-employee directors. Awards that may be granted under the program include non-qualified and incentive stock options, restricted stock units, or RSUs, performance-based restricted stock units, or PRSUs, and cash settlement of stock appreciation rights, or SARs. To date, awards granted under the program consist of stock options, RSUs and PRSUs. The majority of stock-based awards granted under the program vest over four years. Stock options granted under the program have a maximum contractual term of ten years. The stock-based compensation expense included in the Company's consolidated financial statements for the three and nine months ended October 2, 2016 and September 27, 2015 was as follows (in thousands):
No stock-based compensation was capitalized during any period presented above. * Stock-based compensation related to restructuring plan was initiated during the second quarter of 2015. Valuation Assumptions The Company uses the Black-Scholes option pricing model to estimate the fair value of employee stock options and rights to purchase shares under the Company's 2009 ESPP. Using the Black-Scholes pricing model requires the Company to develop highly subjective assumptions including the expected term of awards, expected volatility of its stock, expected risk-free interest rate and expected dividend rate over the term of the award. The Company's expected term of awards assumption is based primarily on its historical experience with similar grants. The Company's expected stock price volatility assumption for both stock options and ESPP shares is based on the historical volatility of the Company's stock, using the daily average of the opening and closing prices and measured using historical data appropriate for the expected term. The risk-free interest rate assumption approximates the risk-free interest rate of a Treasury Constant Maturity bond with a maturity approximately equal to the expected term of the stock option or ESPP shares. This fair value is expensed over the requisite service period of the award. The fair value of RSUs and PRSUs is based on the closing price of the Company's common stock on the date of grant. Equity compensation awards which vest with service are expensed using the straight-line attribution method over the requisite service period. In addition to the assumptions used in the Black-Scholes pricing model, the amended authoritative guidance requires that the Company recognize expense for awards ultimately expected to vest; therefore the Company is required to develop an estimate of the number of awards expected to be forfeited prior to vesting, or forfeiture rate. The forfeiture rate is estimated based on historical pre-vest cancellation experience and is applied to all share-based awards. The following weighted average assumptions are included in the estimated fair value calculations for stock option grants:
The weighted average estimated fair value for options granted during the three months ended October 2, 2016 was $0.46. No stock options were granted in the third quarter of 2015. The weighted average estimated fair value for options granted during the nine months of 2016 and 2015 were $0.46 and $0.90 per option, respectively. As of October 2, 2016 and September 27, 2015, the fair value of unvested stock options, net of expected forfeitures, was approximately $1.9 million and $2.3 million, respectively. This unrecognized stock-based compensation expense is expected to be recorded over a weighted average period of 3.33 years. Stock-Based Compensation Award Activity The following table summarizes the activity in the shares available for grant under the 2009 Plan during the nine months ended October 2, 2016:
Stock Options The following table summarizes stock options outstanding and stock option activity under the 1999 Plan and the 2009 Plan, and the related weighted average exercise price, for the first nine months of 2016:
No stock options were exercised during the three and nine months ended October 2, 2016. The total intrinsic value of options exercised during the first nine months of 2016 and 2015 was $0 and $83,000, respectively. Total cash received from employees as a result of employee stock option exercises during the first nine months of 2016 and 2015 was approximately $0 and $117,000 respectively. The Company settles employee stock option exercises with newly issued common shares. In connection with these exercises, there was no tax benefit realized by the Company due to the Company's current loss position. Total stock-based compensation related to stock options was $189,000 and $403,000 for the three months and nine months ended October 2, 2016. Restricted Stock Units and Performance-based Restricted Stock Units The Company began issuing RSUs and PRSUs in the third quarter of 2007. RSUs entitle the holder to receive, at no cost, one common share for each RSU as it vests. In general, the Company's policy is to withhold shares in settlement of employee tax withholding obligations upon the vesting of RSUs. The stock-based compensation related to RSUs and PRSUs was $154,000 and $49,000 for the three months and $693,000 and $137,000 for the nine months ended October 2, 2016, respectively. As of October 2, 2016, there was $1.3 million in unrecognized compensation expense related to RSUs and PRSUs. A summary of activity for the Company's RSUs and PRSUs for the nine months ended October 2, 2016 and information regarding RSUs and PRSUs outstanding and expected to vest as of October 2, 2016 is as follows:
Employee Stock Purchase Plan The weighted average estimated fair value, as defined by the amended authoritative guidance, of rights issued pursuant to the Company's 2009 ESPP during the third quarters of 2016 and 2015 was $0.31 and $0.48 per right, respectively. As of October 2, 2016, 917,000 shares remained available for issuance under the 2009 ESPP. For the three and nine months ended October 2, 2016, the Company recorded stock-based compensation expense related to the 2009 ESPP of $65,000 and $225,000, respectively. The fair value of rights issued pursuant to the Company's 2009 ESPP was estimated on the commencement date of each offering period using the following weighted average assumptions:
As of October 2, 2016, the unrecognized stock-based compensation expense relating to the Company's 2009 ESPP was $31,000 and is expected to be recognized over a weighted average period of approximately 1.5 months. |
Income Taxes |
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Oct. 02, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes In the third quarters of 2016 and 2015, the Company recorded a net income tax benefit of $23,000 and $15,000, respectively. For the nine months ended October 2, 2016 and September 27, 2015, the Company recorded net income tax expense of $68,000 and $46,000, respectively. The income tax benefits for the third quarters of 2016 and 2015 include the net effect of the following: (i) income taxes from the Company's foreign operations which are cost-plus entities; and (ii) the release of an unrecognized tax benefit in the period. Based on the available objective evidence, management believes it is more likely than not that the Company's net deferred tax assets will not be fully realizable. Accordingly, with the exception of its foreign subsidiaries, the Company has provided a full valuation allowance against the associated deferred tax assets. The Company will continue to assess the realizability of the deferred tax assets in future periods. The Company had approximately $0 and $36,000 unrecognized tax benefits at October 2, 2016 and January 3, 2016, respectively, which, if recognized, would affect the Company's effective tax rate. The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. For the nine month period ended October 2, 2016, the Company accrued $0 of interest and penalties. As of October 2, 2016, the Company had $0 of accrued interest and penalties related to uncertain tax positions. There is no balance of unrecognized tax benefit at October 2, 2016 that is related to tax positions, interest, and penalties for which it is reasonably possible that the statute of limitations will expire in various jurisdictions within the next twelve months. The Company is subject to U.S. federal income tax as well as income taxes in many U.S. states and foreign jurisdictions in which the Company operates. As of October 2, 2016, fiscal years 2012 onward remain open to examination by the U.S. taxing authorities. The U.S. federal and U.S. state taxing authorities may choose to audit tax returns for tax years beyond the statute of limitation period due to significant tax attribute carryforwards from prior years, making adjustments only to carryforward attributes. |
Information Concerning Product Lines, Geographic Information and Revenue Concentration |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Information Concerning Product Lines, Geographic Information and Revenue Concentration | Information Concerning Product Lines, Geographic Information and Revenue Concentration The Company identifies its business segment based on business activities, management responsibility and geographic location. For all periods presented, the Company operated in a single reportable business segment. The following is a breakdown of revenue by product line (in thousands):
_________________ (1) For all periods presented: New products include all products manufactured on 180 nanometer or smaller semiconductor processes. Mature products include all products produced on semiconductor processes larger than 180 nanometers. The following is a breakdown of revenue by shipment destination (in thousands):
___________ (1) Asia Pacific includes revenue from South Korea of $1.0 million, or 36%, of total revenue and $2.4 million, or 58%, of total revenue for the quarters ended October 2, 2016 and September 27, 2015, respectively. For the nine months ended October 2, 2016 and September 27, 2015, revenue from South Korea was $3.0 million, or 35%, of total revenue and $6.9 million or 45%, respectively. (2) North America includes revenue from the United States of $675,000, or 24%, of total revenue and $665,000 or 16%, for the quarters ended October 2 2016 and September 27, 2015, respectively. For the nine months ended October 2, 2016 and September 27, 2015, revenue from the United States was $2.1 million, or 25%, of total revenue and $3.5 million or 23%, respectively. The following distributors and customers accounted for 10% or more of the Company's revenue for the periods presented:
The following distributors and customers accounted for 10% or more of the Company's accounts receivable as of the dates presented:
As of October 2, 2016, less than 10% of the Company's long-lived assets, including property and equipment and other assets, were located outside the United States. |
Commitments and Contingencies |
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Oct. 02, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies | Commitments and Contingencies Commitments The Company's manufacturing suppliers require us to forecast wafer starts several months in advance. The Company is required to take delivery of and pay for a portion of forecasted wafer volume. As of October 2, 2016, and January 3, 2016, the Company had $2.7 million and $1.4 million, respectively, of outstanding commitments for the purchase of wafer and finished goods inventory. The Company has obligations with certain suppliers for the purchase of other goods and services entered into in the ordinary course of business. As of October 2, 2016, total outstanding purchase obligations were $1.1 million, all of which are due within the next twelve months, except for $2,000 relating to capital lease maintenance commitment. The Company leases its primary facility under a non-cancelable operating lease that expires at the end of 2018. In addition, the Company rents development facilities in India as well as sales offices in Europe and Asia. Total rent expense for the third quarters of 2016 and 2015 was approximately $219,000 and $201,000, respectively. Total rent expense for the nine months of 2016 and 2015 was $623,000 and $678,000, respectively. As of October 2, 2016, future minimum lease commitments under the Company's operating leases, excluding property taxes and insurance are as follows:
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Litigation |
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Oct. 02, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Litigation | Litigation From time to time, the Company may become involved in legal actions arising in the ordinary course of business including, but not limited to, intellectual property infringement and collection matters. Absolute assurance cannot be given that any such third party assertions will be resolved: (i) without costly litigation; (ii) in a manner that is not adverse to the Company's financial position, results of operations or cash flows; or (iii) without requiring royalty or other payments which may adversely impact gross profit. |
The Company and Basis of Presentation (Policies) |
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Oct. 02, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Fiscal period | QuickLogic's fiscal year ends on the Sunday closest to December 31 and the fiscal quarters each end on the Sunday closest to the end of each calendar quarter. QuickLogic's third fiscal quarters for 2016 and for 2015 ended on Sunday, October 2, 2016 and September 27, 2015, respectively. |
Liquidity | Liquidity The Company has financed its operations and capital investments through sales of common stock, capital and operating leases, and bank lines of credit. As of October 2, 2016, the Company's principal sources of liquidity consisted of cash and cash equivalents of $17.8 million and $1.0 million in available credit under its revolving line of credit with Silicon Valley Bank, which expires on September 25, 2017. On September 25, 2015, the Company entered into a Second Amendment to Third Amended and Restated Loan and Security Agreement with Silicon Valley Bank to extend the line of credit for two years through September 25, 2017. This amendment modifies some of the financial covenants. This line of credit provides for committed loan advances of up to $6.0 million, subject to increases at the Company's election of up to $12.0 million. On February 10, 2016, the Company entered into a Third Amendment to Third and Restated Loan and Security Agreement to further modify the covenants. See Note 5 for a description of the modified covenants. The Company is in compliance with all loan covenants as of the end of the current reporting period. On March 21, 2016, the Company issued 10.0 million shares of common stock at a price of $1.00 per share, $0.001 par value. The Company received net proceeds of approximately $8.8 million, after deducting underwriting commissions and other offering related expenses. The Company uses the net proceeds from the offering for working capital and other general corporate purposes. The Company may also use a portion of the net proceeds to acquire and/or license technologies and acquire and/or invest in businesses when the opportunity arises. The shares were offered pursuant to a shelf registration statement previously filed with the SEC, which was declared effective by the SEC on August 30, 2013, and as supplemented by a prospectus supplement dated March 17, 2016 filed with the Securities and Exchange Commission ("SEC") pursuant to Rule 424(b) under the Securities Act of 1933, as amended. The Company currently uses its cash to fund its capital expenditures and operating losses. Based on past operating performance and current annual operating plans, the Company believes that its existing cash and cash equivalents, together with available financial resources from the revolving line of credit with Silicon Valley Bank and equity funding raised during March 2016 will be sufficient to fund its operations and capital expenditures and provide adequate working capital for the next twelve months. The Company's liquidity is affected by many factors including, among others: the level of revenue and gross profit as a result of the cyclicality of the semiconductor industry; the conversion of design opportunities into revenue; market acceptance of existing and new products including solutions based on its EOSTM, ArcticLink®, and PolarPro® solution platforms; fluctuations in revenue as a result of product end-of-life; fluctuations in revenue as a result of the stage in the product life cycle of its customers' products; costs of securing access to and availability of adequate manufacturing capacity; levels of inventories; wafer purchase commitments; customer credit terms; the amount and timing of research and development expenditures; the timing of new product introductions; production volumes; product quality; sales and marketing efforts; the value and liquidity of its investment portfolio; changes in operating assets and liabilities; the ability to obtain or renew debt financing and to remain in compliance with the terms of existing credit facilities; the ability to raise funds from the sale of equity in the Company; the issuance and exercise of stock options and participation in the Company's employee stock purchase plan; and other factors related to the uncertainties of the industry and global economics. Over the longer term, the Company anticipates that the generation of sales from its new product offerings, existing cash and cash equivalents, together with financial resources from its revolving line of credit with Silicon Valley Bank and its ability to raise additional capital in the public capital markets will be sufficient to satisfy its operations and capital expenditures requirements. However, the Company cannot provide any assurance that it will be able to raise additional capital, if required, or that such capital will be available on terms acceptable to the Company. The inability of the Company to generate sufficient sales from its new product offerings and/or raise additional capital if needed could have a material adverse effect on the Company’s operations and financial condition, including its ability to maintain compliance with its lender’s financial covenants. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of QuickLogic and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated. |
Foreign Currency | Foreign Currency The functional currency of the Company's non-U.S. operations is the U.S. dollar. Accordingly, all monetary assets and liabilities of these foreign operations are translated into U.S. dollars at current period-end exchange rates and non-monetary assets and related elements of expense are translated using historical exchange rates. Income and expense elements are translated to U.S. dollars using the average exchange rates in effect during the period. Gains and losses from the foreign currency transactions of these subsidiaries are recorded as interest income and other expense, net in the condensed unaudited consolidated statements of operations. |
Uses of Estimates | Uses of Estimates The preparation of these consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities and the reported amounts of revenue and expenses during the period. Actual results could differ materially from those estimates, particularly in relation to revenue recognition, the allowance for doubtful accounts, sales returns, valuation of investments, valuation of long-lived assets including mask sets, valuation of inventories including identification of excess quantities, market value and obsolescence, measurement of stock-based compensation awards, accounting for income taxes and estimating accrued liabilities. |
Concentration of Risk | Concentration of Risk The Company's accounts receivable are denominated in U.S. dollars and are derived primarily from sales to customers located in North America, Asia Pacific, and Europe. The Company performs ongoing credit evaluations of its customers and generally does not require collateral. See Note 11 for information regarding concentrations associated with accounts receivable. |
New Accounting Pronouncements | New Accounting Pronouncements In August 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. This update clarifies how certain cash receipts and cash payments are presented and classified in the statement of cash flows. This ASU is effective for public business entities for fiscal years beginning after December 15, 2017, and for interim periods therein with early adoption permitted and must be applied retrospectively to all periods presented. The Company is currently evaluating the impact of our pending adoption of the new standard on our consolidated financial statements. In May 2016, the FASB issued ASU No. 2016-12, Revenue from contracts with customers (Topic 606): Narrow Scope Improvements and Practical Expedients. This update among other things: (1) clarify the object of the collectability criterion for applying paragraph 606-10-25-7; (2) permit an entity to exclude amounts collected from customers for all sales (and other similar) taxes from transaction price; (3) specify that the measurement date for noncash consideration is contract inception; (4) provide a practical expedient that permits an entity to reflect the aggregate effect of all modifications that occur before the beginning of the earliest period presented when identifying the satisfied and unsatisfied performance obligations, determining the transaction price, and allocating the transaction price to the satisfied and unsatisfied performance obligations; (5) clarify that a completed contract for purposes of transition is a contract for which all (or substantially all) of the revenue was recognized under legacy GAAP before the date of initial application, and (6) clarify that an entity that retrospectively applies the guidance in Topic 606 to each prior period reporting is not required to disclose the effect of the accounting change for the period of adoption. This amendment is effective for public entities for annual reports beginning after December 15, 2017, including interim periods therein. For nonpublic entities one year later. The Company is currently evaluating the impact of our pending adoption of the new standard on our consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. This update was issued as part of the FASB’s simplification initiative and affects all entities that issue share-based payment awards to their employees. The amendments in this update cover such areas as the recognition of excess tax benefits and deficiencies, the classification of those excess tax benefits on the statement of cash flows, an accounting policy election for forfeitures, the amount an employer can withhold to cover income taxes and still qualify for equity classification and the classification of those taxes paid on the statement of cash flows. This update is effective for annual and interim periods beginning after December 15, 2016, which will require us to adopt these provisions in the first quarter of fiscal year 2017. This guidance can be applied either prospectively, retrospectively or using a modified retrospective transition method, depending on the area covered in this update. Early adoption is permitted. The Company is currently evaluating the impact of our pending adoption of the new standard on our consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-08, Revenue from contracts with customers (Topic 606): Principal versus Agent Considerations Reporting Revenue Gross versus Net. The amendments are intended to improve the operability and understandability of the implementation guidance on principal versus agent considerations by amending certain existing illustrative examples and adding additional illustrative examples to assist in the application of the guidance. The effective date and transition of these amendments is the same as the effective date and transition of ASU 2014-09. Public entities should apply the amendments in ASU 2014-09 for annual reporting periods beginning after December 15, 2017, including interim reporting periods therein (i.e., January 1, 2018, for a calendar year entity). Private entities must apply the amendments one year later. The Company is currently evaluating the impact of our pending adoption of the new standard on our consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases. The new standard establishes a right-of-use ("ROU") model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. The Company is currently evaluating the impact of our pending adoption of the new standard on our consolidated financial statements. In July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330): Simplifying the measurement of Inventory, which amends the accounting guidance on the valuation of inventory. The guidance requires an entity to measure in scope inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The amendment applies to inventory valued at first-in, first-out or average cost. This guidance is effective for reporting periods beginning after December 15, 2016, including interim periods within those fiscal years. The Company is currently evaluating the impact of ASU 2015-11 on its consolidated financial statements and footnote disclosures. Other new accounting pronouncements are disclosed on the Annual Report on Form 10-K for the fiscal year ended January 3, 2016 filed with the SEC on March 18, 2016. |
Net Loss per Share | Basic loss per share is computed by dividing net loss available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted net loss per share was computed using the weighted average number of common shares outstanding during the period plus potentially dilutive common shares outstanding during the period under the treasury stock method. In computing diluted net loss per share, the weighted average stock price for the period is used in determining the number of shares assumed to be purchased from the exercise of stock options and warrants. |
Value Assumptions | Valuation Assumptions The Company uses the Black-Scholes option pricing model to estimate the fair value of employee stock options and rights to purchase shares under the Company's 2009 ESPP. Using the Black-Scholes pricing model requires the Company to develop highly subjective assumptions including the expected term of awards, expected volatility of its stock, expected risk-free interest rate and expected dividend rate over the term of the award. The Company's expected term of awards assumption is based primarily on its historical experience with similar grants. The Company's expected stock price volatility assumption for both stock options and ESPP shares is based on the historical volatility of the Company's stock, using the daily average of the opening and closing prices and measured using historical data appropriate for the expected term. The risk-free interest rate assumption approximates the risk-free interest rate of a Treasury Constant Maturity bond with a maturity approximately equal to the expected term of the stock option or ESPP shares. This fair value is expensed over the requisite service period of the award. The fair value of RSUs and PRSUs is based on the closing price of the Company's common stock on the date of grant. Equity compensation awards which vest with service are expensed using the straight-line attribution method over the requisite service period. In addition to the assumptions used in the Black-Scholes pricing model, the amended authoritative guidance requires that the Company recognize expense for awards ultimately expected to vest; therefore the Company is required to develop an estimate of the number of awards expected to be forfeited prior to vesting, or forfeiture rate. The forfeiture rate is estimated based on historical pre-vest cancellation experience and is applied to all share-based awards. |
Balance Sheet Components (Tables) |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of supplemental balance sheet disclosures | The following provides details relating to certain balance sheet accounts as of October 2, 2016, and January 3, 2016:
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Financing Obligations (Tables) |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of obligations | The following provides details relating to the Company’s financing obligations as of October 2, 2016 and January 3, 2016:
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Fair Value Measurements (Tables) |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of financial assets measured at fair value on a recurring basis | The following table presents the Company's financial assets that are measured at fair value on a recurring basis as of October 2, 2016 and January 3, 2016, consistent with the fair value hierarchy provisions of the authoritative guidance (in thousands):
_________________ (1) Money market funds are presented as a part of cash and cash equivalents on the accompanying consolidated balance sheets as of October 2, 2016 and January 3, 2016. |
Stock-Based Compensation (Tables) |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of stock based compensation expense | The stock-based compensation expense included in the Company's consolidated financial statements for the three and nine months ended October 2, 2016 and September 27, 2015 was as follows (in thousands):
No stock-based compensation was capitalized during any period presented above. * Stock-based compensation related to restructuring plan was initiated |
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Schedule of weighted average assumptions included in the estimated fair value calculations for stock option grants | The following weighted average assumptions are included in the estimated fair value calculations for stock option grants:
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Summary of the activity in the shares available for grant under the 2009 plan | The following table summarizes the activity in the shares available for grant under the 2009 Plan during the nine months ended October 2, 2016:
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Summary of stock options outstanding and stock option activity under the 1999 plan and the 2009 plan, and the related weighted average exercise price | The following table summarizes stock options outstanding and stock option activity under the 1999 Plan and the 2009 Plan, and the related weighted average exercise price, for the first nine months of 2016:
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Summary of activity for RSUs and PRSUs | A summary of activity for the Company's RSUs and PRSUs for the nine months ended October 2, 2016 and information regarding RSUs and PRSUs outstanding and expected to vest as of October 2, 2016 is as follows:
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Summary of the fair value of rights issued pursuant to ESPP | The fair value of rights issued pursuant to the Company's 2009 ESPP was estimated on the commencement date of each offering period using the following weighted average assumptions:
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Information Concerning Product Lines, Geographic Information and Revenue Concentration (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Oct. 02, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of revenue by product line | The following is a breakdown of revenue by product line (in thousands):
_________________ (1) For all periods presented: New products include all products manufactured on 180 nanometer or smaller semiconductor processes. Mature products include all products produced on semiconductor processes larger than 180 nanometers. |
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Schedule of revenue by shipment destination | The following is a breakdown of revenue by shipment destination (in thousands):
___________ (1) Asia Pacific includes revenue from South Korea of $1.0 million, or 36%, of total revenue and $2.4 million, or 58%, of total revenue for the quarters ended October 2, 2016 and September 27, 2015, respectively. For the nine months ended October 2, 2016 and September 27, 2015, revenue from South Korea was $3.0 million, or 35%, of total revenue and $6.9 million or 45%, respectively. (2) North America includes revenue from the United States of $675,000, or 24%, of total revenue and $665,000 or 16%, for the quarters ended October 2 2016 and September 27, 2015, respectively. For the nine months ended October 2, 2016 and September 27, 2015, revenue from the United States was $2.1 million, or 25%, of total revenue and $3.5 million or 23%, respectively. |
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Summary of distributors and customers accounting for 10% or more of revenue | The following distributors and customers accounted for 10% or more of the Company's revenue for the periods presented:
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Schedule of distributors and customers accounting for 10% or more of accounts receivable | The following distributors and customers accounted for 10% or more of the Company's accounts receivable as of the dates presented:
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Commitments and Contingencies (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||
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Oct. 02, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of future minimum lease commitments under operating leases | As of October 2, 2016, future minimum lease commitments under the Company's operating leases, excluding property taxes and insurance are as follows:
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The Company and Basis of Presentation - Liquidity (Details) - USD ($) |
1 Months Ended | 9 Months Ended | |||||
---|---|---|---|---|---|---|---|
Mar. 21, 2016 |
Sep. 25, 2015 |
Mar. 31, 2016 |
Oct. 02, 2016 |
Sep. 27, 2015 |
Jan. 03, 2016 |
Dec. 28, 2014 |
|
Liquidity [Line Items] | |||||||
Cash and cash equivalents | $ 17,761,000 | $ 23,441,000 | $ 19,136,000 | $ 30,050,000 | |||
Share price (in dollars per share) | $ 1.00 | $ 1.00 | |||||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | |||
Net proceeds | $ 8,800,000 | $ 8,800,000 | $ 10,337,000 | $ 394,000 | |||
Common stock | |||||||
Liquidity [Line Items] | |||||||
Shares of common stock issued (in shares) | 10,000,000.0 | 10,000,000 | |||||
Revolving line of credit | Silicon Valley Bank | |||||||
Liquidity [Line Items] | |||||||
Cash and cash equivalents in available credit | $ 1,000,000 | ||||||
Extended period of line of credit | 2 years | ||||||
Loan advances | $ 6,000,000 | ||||||
Loan advances subject to increase | $ 12,000,000.0 |
The Company and Basis of Presentation - Concentration of Risk (Details) |
3 Months Ended | 9 Months Ended |
---|---|---|
Oct. 02, 2016 |
Oct. 02, 2016 |
|
Customer concentration risk | Samsung | Revenue | ||
Concentration Risk [Line Items] | ||
Percentage of total revenue generated from shipment | 39.00% | 35.00% |
Net Loss Per Share (Details) - shares shares in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Oct. 02, 2016 |
Sep. 27, 2015 |
Oct. 02, 2016 |
Sep. 27, 2015 |
|
2009 Stock Plans | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Common shares (in shares) | 7.8 | 6.8 | 7.8 | 6.8 |
Warrant | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Common shares (in shares) | 2.3 | 2.3 | 2.3 | 2.3 |
Balance Sheet Components (Details) - USD ($) $ in Thousands |
Oct. 02, 2016 |
Jan. 03, 2016 |
---|---|---|
Inventories: | ||
Raw materials | $ 0 | $ 0 |
Work-in-process | 997 | 1,720 |
Finished goods | 446 | 1,158 |
Inventories | 1,443 | 2,878 |
Other current assets: | ||
Prepaid expenses | 916 | 1,184 |
Other | 165 | 128 |
Other current assets | 1,081 | 1,312 |
Property and equipment: | ||
Property and equipment, gross | 14,849 | 18,490 |
Accumulated depreciation and amortization | (11,776) | (15,175) |
Property and equipment, net | 3,073 | 3,315 |
Accrued liabilities: | ||
Employee related accruals | 1,749 | 1,237 |
Other | 326 | 245 |
Accrued liabilities | 2,075 | 1,482 |
Equipment | ||
Property and equipment: | ||
Property and equipment, gross | 11,488 | 14,531 |
Software | ||
Property and equipment: | ||
Property and equipment, gross | 2,612 | 3,114 |
Furniture and fixtures | ||
Property and equipment: | ||
Property and equipment, gross | 41 | 131 |
Leasehold improvements | ||
Property and equipment: | ||
Property and equipment, gross | $ 708 | $ 714 |
Financing Obligations - Schedule of Obligations (Details) - USD ($) $ in Thousands |
Oct. 02, 2016 |
Jan. 03, 2016 |
---|---|---|
Debt and capital lease obligations: | ||
Revolving line of credit | $ 5,000 | $ 2,000 |
Capital leases | 230 | 489 |
Debt and capital lease obligations | 5,230 | 2,489 |
Current portion of debt and capital lease obligations | (5,208) | (281) |
Long term portion of debt and capital lease obligations | $ 22 | $ 2,208 |
Stockholders' Equity - Common Stock and Preferred Stock (Details) - shares |
Oct. 02, 2016 |
Jan. 03, 2016 |
---|---|---|
Equity [Abstract] | ||
Common stock authorized to issue (in shares) | 100,000,000 | 100,000,000 |
Preferred stock, authorized but unissued (in shares) | 10,000,000 | 10,000,000 |
Stockholders' Equity - Issuance of Common Stock and Warrants (Details) - USD ($) $ / shares in Units, $ in Thousands |
1 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Mar. 21, 2016 |
Mar. 31, 2016 |
Oct. 02, 2016 |
Sep. 27, 2015 |
Jan. 03, 2016 |
|
Class of Stock [Line Items] | |||||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | |
Underwritten public offering price (in dollars per share) | $ 1.00 | $ 1.00 | |||
Net proceeds | $ 8,800 | $ 8,800 | $ 10,337 | $ 394 | |
Offering expenses | $ 1,200 | $ 1,197 | $ 0 | ||
Warrants outstanding (in shares) | 2,300,000 | ||||
June 2012 financing | |||||
Class of Stock [Line Items] | |||||
Warrants outstanding (in shares) | 2,300,000 | ||||
Strike price of warrants (in dollars per share) | $ 2.98 | ||||
Common stock | |||||
Class of Stock [Line Items] | |||||
Aggregate shares of common stock issued | 10,000,000.0 | 10,000,000 |
Employee Stock Plans - Employee Stock Purchase Plan (Details) - 2009 ESPP - shares |
9 Months Ended | |
---|---|---|
Apr. 23, 2015 |
Oct. 02, 2016 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Additional shares of common stock reserved for issuance (in shares) | 1,000,000.0 | |
Shares reserved for issuance | 3,300,000 | |
Duration of offering period | 6 months | |
Percentage of employee's total compensation | 20.00% | |
Maximum number of shares per offering period (in shares) | 20,000 | |
Fair market value of common stock (as a percent) | 85.00% |
Stock-Based Compensation - Schedule of Allocation of Recognized Period Cost (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Oct. 02, 2016 |
Sep. 27, 2015 |
Oct. 02, 2016 |
Sep. 27, 2015 |
|
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total costs and expenses | $ 457 | $ 508 | $ 1,458 | $ 1,496 |
Cost of revenue | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total costs and expenses | 34 | 29 | 119 | 95 |
Research and development | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total costs and expenses | 137 | 210 | 603 | 613 |
Selling, general and administrative | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total costs and expenses | 286 | 240 | 736 | 759 |
Restructuring charges | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total costs and expenses | $ 0 | $ 29 | $ 0 | $ 29 |
Stock-Based Compensation - Schedule of Valuation Assumptions (Details) - Stock options |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Oct. 02, 2016 |
Sep. 27, 2015 |
Oct. 02, 2016 |
Sep. 27, 2015 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected term (years) | 7 years 1 month 13 days | 4 years 9 months 11 days | 7 years 1 month 13 days | 4 years 9 months 11 days |
Risk-free interest rate | 1.40% | 1.40% | 1.40% | 1.40% |
Expected volatility | 52.40% | 52.11% | 52.40% | 52.11% |
Expected dividend yield | 0.00% | 0.00% | 0.00% | 0.00% |
Stock-Based Compensation - Schedule of Stock Based Compensation Award Activity (Details) shares in Thousands |
9 Months Ended |
---|---|
Oct. 02, 2016
shares
| |
Shares Available for Grant | |
Options granted (in shares) | (842) |
Options forfeited or expired (in shares) | 546 |
RSUs and PRSUs granted (in shares) | (1,127) |
RSUs forfeited or expired (in shares) | 758 |
2009 Plan | |
Shares Available for Grant | |
Balance at end of period (in shares) | 9,800 |
2009 Plan | Restricted stock units (RSUs) | |
Shares Available for Grant | |
Balance at beginning of period (in shares) | 2,929 |
Options granted (in shares) | (842) |
Options forfeited or expired (in shares) | 546 |
RSUs and PRSUs granted (in shares) | (934) |
RSUs forfeited or expired (in shares) | 554 |
Balance at end of period (in shares) | 2,264 |
2009 Plan | PRSUs | |
Shares Available for Grant | |
RSUs and PRSUs granted (in shares) | (193) |
RSUs forfeited or expired (in shares) | 204 |
Stock-Based Compensation - Schedule of Restricted Stock and Restricted Stock Units Activity (Details) shares in Thousands |
9 Months Ended |
---|---|
Oct. 02, 2016
$ / shares
shares
| |
Number of Shares | |
Nonvested at beginning of period, (in shares) | shares | 1,435 |
Granted, (in shares) | shares | 1,127 |
Vested, (in shares) | shares | (475) |
Forfeited, (in shares) | shares | (758) |
Nonvested at end of period, (in shares) | shares | 1,329 |
Weighted Average Grant Date Fair Value | |
Nonvested at beginning of period, (in dollars per share) | $ / shares | $ 2.30 |
Granted, (in dollars per share) | $ / shares | 1.05 |
Vested, (in dollars per share) | $ / shares | 1.02 |
Forfeited, (in dollars per shares) | $ / shares | 0.00 |
Nonvested at end of period, (in dollars per share) | $ / shares | $ 1.92 |
Stock-Based Compensation -Schedule of Employee Stock Purchase Plan (Details) - ESPP |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Oct. 02, 2016 |
Sep. 27, 2015 |
Oct. 02, 2016 |
Sep. 27, 2015 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected term (months) | 6 months 2 days | 6 months 2 days | 6 months 2 days | 6 months 2 days |
Risk-free interest rate | 0.40% | 0.08% | 0.40% | 0.08% |
Volatility | 54.31% | 51.54% | 54.31% | 51.54% |
Dividend yield | 0.00% | 0.00% | 0.00% | 0.00% |
Income Taxes (Details) - USD ($) |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Oct. 02, 2016 |
Sep. 27, 2015 |
Oct. 02, 2016 |
Sep. 27, 2015 |
Jan. 03, 2016 |
|
Income Tax Disclosure [Abstract] | |||||
Net income tax expense (benefit) | $ (23,000) | $ (15,000) | $ 68,000 | $ 46,000 | |
Unrecognized tax benefits | 0 | 0 | $ 36,000 | ||
Penalties and interest accrued | 0 | ||||
Penalties and interest accrued related to uncertain tax positions | $ 0 | $ 0 |
Information Concerning Product Lines, Geographic Information and Revenue Concentration - Schedule of Revenue by Product Line (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Oct. 02, 2016 |
Sep. 27, 2015 |
Oct. 02, 2016 |
Sep. 27, 2015 |
|
Revenue from External Customer [Line Items] | ||||
Total revenue | $ 2,809 | $ 4,194 | $ 8,476 | $ 15,326 |
New products | ||||
Revenue from External Customer [Line Items] | ||||
Total revenue | 1,339 | 2,855 | 4,028 | 9,952 |
Mature products | ||||
Revenue from External Customer [Line Items] | ||||
Total revenue | $ 1,470 | $ 1,339 | $ 4,448 | $ 5,374 |
Commitments and Contingencies - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Oct. 02, 2016 |
Sep. 27, 2015 |
Oct. 02, 2016 |
Sep. 27, 2015 |
Jan. 03, 2016 |
|
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |||||
Capital lease maintenance commitment | $ 2 | $ 2 | |||
Total rent expense, net of sublease income | 219 | $ 201 | 623 | $ 678 | |
Wafer and finished goods inventory | |||||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |||||
Outstanding commitment for purchases | 2,700 | 2,700 | $ 1,400 | ||
Other goods and services | |||||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |||||
Total outstanding purchase obligations | $ 1,100 | $ 1,100 |
Commitments and Contingencies - Schedule of Future Minimum Lease Payments for Operating Leases (Details) $ in Thousands |
Oct. 02, 2016
USD ($)
|
---|---|
Fiscal Years | |
2016 (Remaining 3 months) | $ 213 |
2017 | 797 |
2018 | 799 |
2019 | 165 |
2020 | 170 |
2021 | 84 |
Total | $ 2,228 |
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