2015 Q4 Form 10-Q Financial Statement

#000158080815000044 Filed on November 06, 2015

View on sec.gov

Income Statement

Concept 2015 Q4 2015 Q3 2014 Q3
Revenue $53.95M $50.78M $43.43M
YoY Change 19.36% 16.92% 9.04%
Cost Of Revenue $13.30M $12.72M $11.75M
YoY Change 23.26% 8.19% 34.57%
Gross Profit $40.65M $38.06M $31.68M
YoY Change 18.13% 20.17% 1.88%
Gross Profit Margin 75.35% 74.96% 72.94%
Selling, General & Admin $35.77M $32.67M $29.79M
YoY Change 6.62% 9.65% 35.65%
% of Gross Profit 88.0% 85.82% 94.06%
Research & Development $13.30M $13.56M $12.34M
YoY Change -8.21% 9.88% 44.91%
% of Gross Profit 32.72% 35.63% 38.96%
Depreciation & Amortization $1.940M $2.100M $2.600M
YoY Change -30.22% -19.23% 44.44%
% of Gross Profit 4.77% 5.52% 8.21%
Operating Expenses $49.06M $46.70M $43.04M
YoY Change 2.12% 8.49% 33.83%
Operating Profit -$8.410M -$8.634M -$11.37M
YoY Change -38.3% -24.06% 962.52%
Interest Expense -$290.0K $151.0K $192.0K
YoY Change -78.83% -21.35% -86.28%
% of Operating Profit
Other Income/Expense, Net -$129.0K -$702.0K
YoY Change -81.62% -52.31%
Pretax Income -$8.970M -$8.763M -$12.07M
YoY Change -41.22% -27.4% 374.86%
Income Tax $250.0K $204.0K $233.0K
% Of Pretax Income
Net Earnings -$9.220M -$8.967M -$12.30M
YoY Change -42.45% -27.12% 347.58%
Net Earnings / Revenue -17.09% -17.66% -28.33%
Basic Earnings Per Share -$0.21
Diluted Earnings Per Share -$144.8K -$142.9K -$0.21
COMMON SHARES
Basic Shares Outstanding 63.34M shares 62.75M shares 59.91M shares
Diluted Shares Outstanding 62.75M shares 59.91M shares

Balance Sheet

Concept 2015 Q4 2015 Q3 2014 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments $98.10M $100.5M $107.1M
YoY Change 6.75% -6.16% 252.3%
Cash & Equivalents $98.12M $100.5M $107.1M
Short-Term Investments
Other Short-Term Assets $5.100M $4.900M $4.900M
YoY Change 8.51% 0.0% 63.33%
Inventory $18.66M $17.57M $19.37M
Prepaid Expenses
Receivables $54.75M $41.49M $42.47M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $176.6M $164.5M $173.9M
YoY Change 3.06% -5.4% 113.88%
LONG-TERM ASSETS
Property, Plant & Equipment $8.903M $9.087M $11.84M
YoY Change -17.41% -23.23% 24.6%
Goodwill $72.00K
YoY Change 0.0%
Intangibles $795.0K
YoY Change
Long-Term Investments
YoY Change
Other Assets $3.531M $4.372M $4.629M
YoY Change -27.33% -5.55% 230.64%
Total Long-Term Assets $13.30M $13.46M $16.47M
YoY Change -14.95% -18.26% 30.68%
TOTAL ASSETS
Total Short-Term Assets $176.6M $164.5M $173.9M
Total Long-Term Assets $13.30M $13.46M $16.47M
Total Assets $189.9M $178.0M $190.4M
YoY Change 1.56% -6.51% 102.72%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $10.51M $8.182M $11.18M
YoY Change 16.83% -26.78% 110.85%
Accrued Expenses $27.76M $20.96M $19.99M
YoY Change 23.72% 4.83% -31.29%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $87.04M $73.49M $66.15M
YoY Change 23.14% 11.1% 17.5%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $0.00 $0.00
YoY Change -100.0%
Other Long-Term Liabilities $1.414M $1.541M $1.974M
YoY Change -19.93% -21.94% -89.03%
Total Long-Term Liabilities $1.414M $1.541M $1.974M
YoY Change -19.93% -21.94% -95.41%
TOTAL LIABILITIES
Total Short-Term Liabilities $87.04M $73.49M $66.15M
Total Long-Term Liabilities $1.414M $1.541M $1.974M
Total Liabilities $111.7M $97.02M $84.70M
YoY Change 23.53% 14.55% -14.7%
SHAREHOLDERS EQUITY
Retained Earnings -$223.7M -$214.5M -$165.8M
YoY Change 23.05% 29.38%
Common Stock $1.000K $1.000K $1.000K
YoY Change 0.0% 0.0%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $78.21M $80.94M $105.7M
YoY Change
Total Liabilities & Shareholders Equity $189.9M $178.0M $190.4M
YoY Change 1.56% -6.51% 102.72%

Cashflow Statement

Concept 2015 Q4 2015 Q3 2014 Q3
OPERATING ACTIVITIES
Net Income -$9.220M -$8.967M -$12.30M
YoY Change -42.45% -27.12% 347.58%
Depreciation, Depletion And Amortization $1.940M $2.100M $2.600M
YoY Change -30.22% -19.23% 44.44%
Cash From Operating Activities -$4.240M $4.150M -$3.800M
YoY Change -75.09% -209.21% -42.68%
INVESTING ACTIVITIES
Capital Expenditures -$920.0K -$750.0K -$1.590M
YoY Change 27.78% -52.83% 62.24%
Acquisitions
YoY Change
Other Investing Activities
YoY Change
Cash From Investing Activities -$920.0K -$750.0K -$1.590M
YoY Change 27.78% -52.83% 62.24%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 2.760M 910.0K 390.0K
YoY Change 8.66% 133.33% -101.91%
NET CHANGE
Cash From Operating Activities -4.240M 4.150M -3.800M
Cash From Investing Activities -920.0K -750.0K -1.590M
Cash From Financing Activities 2.760M 910.0K 390.0K
Net Change In Cash -2.400M 4.310M -5.000M
YoY Change -84.21% -186.2% -82.15%
FREE CASH FLOW
Cash From Operating Activities -$4.240M $4.150M -$3.800M
Capital Expenditures -$920.0K -$750.0K -$1.590M
Free Cash Flow -$3.320M $4.900M -$2.210M
YoY Change -79.63% -321.72% -60.88%

Facts In Submission

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us-gaap Operating Income Loss
OperatingIncomeLoss
-31632000 USD
CY2014Q4 us-gaap Other Accrued Liabilities Current
OtherAccruedLiabilitiesCurrent
5434000 USD
CY2015Q3 us-gaap Other Accrued Liabilities Current
OtherAccruedLiabilitiesCurrent
3748000 USD
CY2014Q4 us-gaap Other Assets Noncurrent
OtherAssetsNoncurrent
4859000 USD
us-gaap Other Noncash Income Expense
OtherNoncashIncomeExpense
31000 USD
us-gaap Other Noncash Income Expense
OtherNoncashIncomeExpense
-14000 USD
us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
5380000 USD
us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
2558000 USD
us-gaap Preferred Stock Accretion Of Redemption Discount
PreferredStockAccretionOfRedemptionDiscount
1150000 USD
us-gaap Repayments Of Lines Of Credit
RepaymentsOfLinesOfCredit
20000000 USD
us-gaap Repayments Of Lines Of Credit
RepaymentsOfLinesOfCredit
0 USD
CY2015Q3 us-gaap Other Assets Noncurrent
OtherAssetsNoncurrent
4372000 USD
CY2014Q4 us-gaap Other Liabilities Noncurrent
OtherLiabilitiesNoncurrent
1766000 USD
CY2015Q3 us-gaap Other Liabilities Noncurrent
OtherLiabilitiesNoncurrent
1541000 USD
CY2014Q4 us-gaap Prepaid Expense And Other Assets Current
PrepaidExpenseAndOtherAssetsCurrent
4732000 USD
CY2015Q3 us-gaap Prepaid Expense And Other Assets Current
PrepaidExpenseAndOtherAssetsCurrent
4918000 USD
us-gaap Proceeds From Issuance Of Common Stock
ProceedsFromIssuanceOfCommonStock
4399000 USD
us-gaap Proceeds From Issuance Of Common Stock
ProceedsFromIssuanceOfCommonStock
3238000 USD
us-gaap Proceeds From Payments For Other Financing Activities
ProceedsFromPaymentsForOtherFinancingActivities
-229000 USD
us-gaap Proceeds From Payments For Other Financing Activities
ProceedsFromPaymentsForOtherFinancingActivities
306000 USD
CY2014Q4 us-gaap Property Plant And Equipment Gross
PropertyPlantAndEquipmentGross
36524000 USD
CY2015Q3 us-gaap Property Plant And Equipment Gross
PropertyPlantAndEquipmentGross
41350000 USD
CY2014Q4 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
10780000 USD
CY2015Q3 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
9087000 USD
us-gaap Property Plant And Equipment Transfers And Changes
PropertyPlantAndEquipmentTransfersAndChanges
4072000 USD
us-gaap Property Plant And Equipment Transfers And Changes
PropertyPlantAndEquipmentTransfersAndChanges
2213000 USD
us-gaap Provision For Doubtful Accounts
ProvisionForDoubtfulAccounts
52000 USD
us-gaap Provision For Doubtful Accounts
ProvisionForDoubtfulAccounts
1575000 USD
CY2014Q3 us-gaap Research And Development Expense
ResearchAndDevelopmentExpense
12342000 USD
us-gaap Research And Development Expense
ResearchAndDevelopmentExpense
35416000 USD
CY2015Q3 us-gaap Research And Development Expense
ResearchAndDevelopmentExpense
13562000 USD
us-gaap Research And Development Expense
ResearchAndDevelopmentExpense
41542000 USD
CY2014Q4 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
-181785000 USD
CY2015Q3 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
-214463000 USD
CY2014Q3 us-gaap Revenues
Revenues
43428000 USD
us-gaap Revenues
Revenues
134305000 USD
CY2015Q3 us-gaap Revenues
Revenues
50778000 USD
us-gaap Revenues
Revenues
142331000 USD
CY2014Q3 us-gaap Sales Revenue Goods Net
SalesRevenueGoodsNet
31601000 USD
us-gaap Sales Revenue Goods Net
SalesRevenueGoodsNet
102140000 USD
CY2015Q3 us-gaap Sales Revenue Goods Net
SalesRevenueGoodsNet
34990000 USD
us-gaap Sales Revenue Goods Net
SalesRevenueGoodsNet
98837000 USD
CY2014Q3 us-gaap Sales Revenue Net
SalesRevenueNet
43428000 USD
us-gaap Sales Revenue Net
SalesRevenueNet
134305000 USD
CY2015Q3 us-gaap Sales Revenue Net
SalesRevenueNet
50778000 USD
us-gaap Sales Revenue Net
SalesRevenueNet
142331000 USD
CY2014Q3 us-gaap Sales Revenue Services Net
SalesRevenueServicesNet
11827000 USD
us-gaap Sales Revenue Services Net
SalesRevenueServicesNet
32165000 USD
CY2015Q3 us-gaap Sales Revenue Services Net
SalesRevenueServicesNet
15788000 USD
us-gaap Sales Revenue Services Net
SalesRevenueServicesNet
43494000 USD
CY2014Q3 us-gaap Selling And Marketing Expense
SellingAndMarketingExpense
24651000 USD
us-gaap Selling And Marketing Expense
SellingAndMarketingExpense
70189000 USD
CY2015Q3 us-gaap Selling And Marketing Expense
SellingAndMarketingExpense
25774000 USD
us-gaap Selling And Marketing Expense
SellingAndMarketingExpense
75258000 USD
CY2014Q3 us-gaap Share Based Compensation
ShareBasedCompensation
3538000 USD
us-gaap Share Based Compensation
ShareBasedCompensation
8314000 USD
CY2015Q3 us-gaap Share Based Compensation
ShareBasedCompensation
4608000 USD
us-gaap Share Based Compensation
ShareBasedCompensation
13246000 USD
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Exercises In Period Total Intrinsic Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisesInPeriodTotalIntrinsicValue
13900000 USD
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Exercises In Period Total Intrinsic Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisesInPeriodTotalIntrinsicValue
1535000 USD
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Forfeitures In Period
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresInPeriod
922000 shares
CY2014Q3 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Gross
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross
0 shares
CY2015Q3 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Gross
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross
0 shares
CY2015Q3 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Intrinsic Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingIntrinsicValue
17394000 USD
CY2014Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber
11084000 shares
CY2015Q3 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber
10035000 shares
CY2014Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice
5.18
CY2015Q3 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice
5.10
CY2015Q3 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Vested And Expected To Vest Exercisable Aggregate Intrinsic Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestExercisableAggregateIntrinsicValue
13179000 USD
CY2015Q3 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Vested And Expected To Vest Exercisable Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestExercisableNumber
5592000 shares
CY2015Q3 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Vested And Expected To Vest Exercisable Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestExercisableWeightedAverageExercisePrice
4.27
CY2015Q3 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Vested And Expected To Vest Outstanding Aggregate Intrinsic Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestOutstandingAggregateIntrinsicValue
16950000 USD
CY2015Q3 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Vested And Expected To Vest Outstanding Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestOutstandingNumber
9633000 shares
CY2015Q3 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Vested And Expected To Vest Outstanding Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestOutstandingWeightedAverageExercisePrice
5.06
us-gaap Share Based Compensation Arrangements By Share Based Payment Award Options Exercises In Period Weighted Average Exercise Price
ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice
2.93
us-gaap Share Based Compensation Arrangements By Share Based Payment Award Options Forfeitures In Period Weighted Average Exercise Price
ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsForfeituresInPeriodWeightedAverageExercisePrice
7.27
us-gaap Share Based Compensation Arrangements By Share Based Payment Award Options Grants In Period Weighted Average Exercise Price
ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice
4.84
CY2015Q3 us-gaap Share Price
SharePrice
5.99
us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Outstanding Weighted Average Remaining Contractual Term2
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2
P7Y10M24D
us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Outstanding Weighted Average Remaining Contractual Term2
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2
P7Y4M24D
us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Vested And Expected To Vest Exercisable Weighted Average Remaining Contractual Term1
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsVestedAndExpectedToVestExercisableWeightedAverageRemainingContractualTerm1
P6Y3M18D
us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Vested And Expected To Vest Outstanding Weighted Average Remaining Contractual Term1
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsVestedAndExpectedToVestOutstandingWeightedAverageRemainingContractualTerm1
P7Y3M18D
us-gaap Stock Granted During Period Value Sharebased Compensation Gross
StockGrantedDuringPeriodValueSharebasedCompensationGross
7536000 USD
us-gaap Stock Granted During Period Value Sharebased Compensation Gross
StockGrantedDuringPeriodValueSharebasedCompensationGross
869000 USD
us-gaap Stock Issued During Period Shares Stock Options Exercised
StockIssuedDuringPeriodSharesStockOptionsExercised
535000 shares
CY2014Q4 us-gaap Stockholders Equity
StockholdersEquity
96565000 USD
CY2015Q3 us-gaap Stockholders Equity
StockholdersEquity
80938000 USD
CY2014Q4 us-gaap Taxes Payable Current
TaxesPayableCurrent
2554000 USD
CY2015Q3 us-gaap Taxes Payable Current
TaxesPayableCurrent
2753000 USD
CY2014Q3 us-gaap Temporary Equity Accretion Of Dividends
TemporaryEquityAccretionOfDividends
0 USD
us-gaap Temporary Equity Accretion Of Dividends
TemporaryEquityAccretionOfDividends
-1150000 USD
CY2015Q3 us-gaap Temporary Equity Accretion Of Dividends
TemporaryEquityAccretionOfDividends
0 USD
us-gaap Temporary Equity Accretion Of Dividends
TemporaryEquityAccretionOfDividends
0 USD
CY2014Q4 us-gaap Unrecognized Tax Benefits
UnrecognizedTaxBenefits
2200000 USD
CY2015Q3 us-gaap Unrecognized Tax Benefits
UnrecognizedTaxBenefits
2400000 USD
CY2014Q3 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
59913000 shares
us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
44538000 shares
CY2015Q3 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
62753000 shares
us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
62009000 shares
CY2014Q3 us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
59913000 shares
us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
44538000 shares
CY2015Q3 us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
62753000 shares
us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
62009000 shares
CY2014Q3 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
59913000 shares
us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
44538000 shares
CY2015Q3 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
62753000 shares
us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
62009000 shares
us-gaap Year Founded
YearFounded
2004
us-gaap Concentration Risk Credit Risk
ConcentrationRiskCreditRisk
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Concentration of Credit Risk and Significant Customers</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Financial instruments that potentially subject us to concentrations of credit risk consist of cash, cash equivalents and accounts receivable. Our cash and cash equivalents are invested in high-credit quality financial instruments with banks and financial institutions. Management believes that the financial institutions that hold our cash and cash equivalents are financially sound and, accordingly, are subject to minimal credit risk. Such deposits may be in excess of insured limits provided on such deposits.</font></div><div style="line-height:120%;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Our accounts receivable are unsecured and represent amounts due to us based on contractual obligations of our customers. We mitigate credit risk in respect to accounts receivable by performing periodic credit evaluations of our customers to assess the probability of accounts receivable collection based on a number of factors, including past transaction experience with the customer, evaluation of their credit history, limiting the credit extended and review of the invoicing terms of the contract. We generally do not require our customers to provide collateral to support accounts receivable. </font></div><div style="line-height:120%;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Significant customers, including distribution channel partners and direct customers, are those which represent more than 10% of our total revenue for each period presented or our gross accounts receivable balance as of each respective balance sheet date.</font></div></div>
us-gaap Use Of Estimates
UseOfEstimates
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Use of Estimates</font></div><div style="line-height:120%;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The preparation of the condensed consolidated financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Those estimates and assumptions affect revenue recognition and deferred revenue, allowance for doubtful accounts, sales return reserve, valuation of inventory, contingencies and litigation, and determination of fair value of stock-based compensation. These estimates are based on information available as of the date of the condensed consolidated financial statements; therefore, actual results could differ from management&#8217;s estimates.</font></div></div>

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