2019 Q2 Form 10-Q Financial Statement

#000085565819000031 Filed on May 03, 2019

View on sec.gov

Income Statement

Concept 2019 Q2 2019 Q1 2018 Q1
Revenue $102.3M $98.09M $98.62M
YoY Change -0.41% -0.54%
Cost Of Revenue $42.26M $40.44M $42.10M
YoY Change -19.46% -3.95%
Gross Profit $60.04M $57.65M $56.52M
YoY Change 19.48% 2.0%
Gross Profit Margin 58.69% 58.77% 57.31%
Selling, General & Admin $19.76M $20.78M $27.04M
YoY Change -6.21% -23.16%
% of Gross Profit 32.91% 36.05% 47.85%
Research & Development $19.38M $19.67M $22.94M
YoY Change -8.08% -14.28%
% of Gross Profit 32.27% 34.11% 40.59%
Depreciation & Amortization $8.100M $8.403M $12.36M
YoY Change -19.0% -31.99%
% of Gross Profit 13.49% 14.58% 21.86%
Operating Expenses $45.65M $45.18M $49.98M
YoY Change -28.46% -9.62%
Operating Profit $14.39M $12.48M -$795.0K
YoY Change -206.06% -1669.31%
Interest Expense $3.538M $4.987M $5.114M
YoY Change -28.78% -2.48%
% of Operating Profit 24.59% 39.97%
Other Income/Expense, Net -$2.109M $153.0K $554.0K
YoY Change 506.03% -72.38%
Pretax Income $8.739M $7.642M -$5.355M
YoY Change -146.29% -242.71%
Income Tax $200.0K $200.0K $597.0K
% Of Pretax Income 2.29% 2.62%
Net Earnings $8.559M $7.408M -$5.952M
YoY Change -142.32% -224.46%
Net Earnings / Revenue 8.37% 7.55% -6.04%
Basic Earnings Per Share $0.06 $0.06 -$0.05
Diluted Earnings Per Share $0.06 $0.05 -$0.05
COMMON SHARES
Basic Shares Outstanding 132.0M shares 131.6M shares 124.2M shares
Diluted Shares Outstanding 137.2M 134.8M 124.1M shares

Balance Sheet

Concept 2019 Q2 2019 Q1 2018 Q1
SHORT-TERM ASSETS
Cash & Short-Term Investments $122.6M $130.4M $111.5M
YoY Change 15.93% 16.97%
Cash & Equivalents $122.6M $130.4M $99.39M
Short-Term Investments $0.00 $0.00 $12.08M
Other Short-Term Assets $30.80M $29.00M $25.40M
YoY Change 41.94% 14.17%
Inventory $64.96M $66.77M $77.92M
Prepaid Expenses
Receivables $37.89M $55.61M $65.78M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $256.2M $281.8M $280.6M
YoY Change -4.98% 0.42%
LONG-TERM ASSETS
Property, Plant & Equipment $39.59M $36.76M $37.67M
YoY Change 8.72% -2.43%
Goodwill $267.5M $267.5M $267.5M
YoY Change 0.0% 0.0%
Intangibles $13.78M $17.19M $45.60M
YoY Change -52.78% -62.31%
Long-Term Investments
YoY Change
Other Assets $13.20M $13.42M $13.28M
YoY Change -34.71% 1.07%
Total Long-Term Assets $360.4M $363.0M $364.3M
YoY Change 1.94% -0.36%
TOTAL ASSETS
Total Short-Term Assets $256.2M $281.8M $280.6M
Total Long-Term Assets $360.4M $363.0M $364.3M
Total Assets $616.7M $644.7M $644.8M
YoY Change -1.05% -0.02%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $34.30M $33.40M $35.50M
YoY Change 12.83% -5.92%
Accrued Expenses $31.70M $25.10M $24.90M
YoY Change 13.21% 0.8%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $17.19M $7.796M $1.813M
YoY Change -29.91% 330.01%
Total Short-Term Liabilities $83.12M $70.19M $66.06M
YoY Change -4.16% 6.25%
LONG-TERM LIABILITIES
Long-Term Debt $172.3M $225.7M $299.0M
YoY Change -35.16% -24.53%
Other Long-Term Liabilities $42.29M $42.34M $34.10M
YoY Change 5.3% 24.16%
Total Long-Term Liabilities $214.6M $268.0M $333.1M
YoY Change -29.85% -19.54%
TOTAL LIABILITIES
Total Short-Term Liabilities $83.12M $70.19M $66.06M
Total Long-Term Liabilities $214.6M $268.0M $333.1M
Total Liabilities $321.5M $363.6M $399.2M
YoY Change -18.11% -8.92%
SHAREHOLDERS EQUITY
Retained Earnings -$460.8M -$469.4M -$456.4M
YoY Change -3.32% 2.84%
Common Stock $701.7M
YoY Change
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $295.2M $281.2M $245.7M
YoY Change
Total Liabilities & Shareholders Equity $616.7M $644.7M $644.8M
YoY Change -1.05% -0.02%

Cashflow Statement

Concept 2019 Q2 2019 Q1 2018 Q1
OPERATING ACTIVITIES
Net Income $8.559M $7.408M -$5.952M
YoY Change -142.32% -224.46%
Depreciation, Depletion And Amortization $8.100M $8.403M $12.36M
YoY Change -19.0% -31.99%
Cash From Operating Activities $44.70M $21.76M $2.458M
YoY Change 529.58% 785.19%
INVESTING ACTIVITIES
Capital Expenditures -$5.400M $3.074M $1.804M
YoY Change 134.78% 70.4%
Acquisitions
YoY Change
Other Investing Activities -$1.800M $1.739M $1.837M
YoY Change -18.18% -5.33%
Cash From Investing Activities -$7.200M $4.842M -$10.74M
YoY Change 60.0% -145.07%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $11.99M $1.608M
YoY Change 645.4%
Debt Paid & Issued, Net $26.88M $875.0K
YoY Change 2971.43%
Cash From Financing Activities -45.30M -$15.31M $274.0K
YoY Change 520.55% -5686.5%
NET CHANGE
Cash From Operating Activities 44.70M $21.76M $2.458M
Cash From Investing Activities -7.200M $4.842M -$10.74M
Cash From Financing Activities -45.30M -$15.31M $274.0K
Net Change In Cash -7.800M $11.29M -$8.012M
YoY Change 65.96% -240.95%
FREE CASH FLOW
Cash From Operating Activities $44.70M $21.76M $2.458M
Capital Expenditures -$5.400M $3.074M $1.804M
Free Cash Flow $50.10M $18.68M $654.0K
YoY Change 432.98% 2756.88%

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CY2019Q1 us-gaap Increase Decrease In Prepaid Deferred Expense And Other Assets
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1965000 USD
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21325000 USD
CY2019Q1 us-gaap Interest Expense
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4987000 USD
CY2018Q1 us-gaap Interest Expense Debt
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5035000 USD
CY2019Q1 us-gaap Interest Expense Debt
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5003000 USD
CY2018Q1 us-gaap Interest Expense Debt Excluding Amortization
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4528000 USD
CY2019Q1 us-gaap Interest Expense Debt Excluding Amortization
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4316000 USD
CY2018Q1 us-gaap Interest Paid Net
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4420000 USD
CY2019Q1 us-gaap Interest Paid Net
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4383000 USD
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19872000 USD
CY2019Q1 us-gaap Inventory Finished Goods Net Of Reserves
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17677000 USD
CY2018Q4 us-gaap Inventory Net
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67096000 USD
CY2019Q1 us-gaap Inventory Net
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66773000 USD
CY2018Q4 us-gaap Inventory Work In Process Net Of Reserves
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47224000 USD
CY2019Q1 us-gaap Inventory Work In Process Net Of Reserves
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49096000 USD
CY2019Q1 us-gaap Lease Cost
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1995000 USD
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37683000 USD
CY2019Q1 us-gaap Lessee Operating Lease Liability Payments Due After Year Five
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11369000 USD
CY2019Q1 us-gaap Lessee Operating Lease Liability Payments Due Year Five
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4563000 USD
CY2019Q1 us-gaap Lessee Operating Lease Liability Payments Due Year Four
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4436000 USD
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5288000 USD
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7053000 USD
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4974000 USD
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7280000 USD
CY2019Q1 us-gaap Lessee Operating Lease Renewal Term
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P5Y
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365230000 USD
CY2019Q1 us-gaap Liabilities
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363571000 USD
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623687000 USD
CY2019Q1 us-gaap Liabilities And Stockholders Equity
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CY2019Q1 us-gaap Liabilities Current
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9388000 USD
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CY2019Q1 us-gaap Marketable Securities
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CY2018Q4 us-gaap Marketable Securities Current
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CY2019Q1 us-gaap Marketable Securities Gain Loss Excluding Other Than Temporary Impairments
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53000 USD
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2170000 USD
CY2019Q1 us-gaap Marketable Securities Noncurrent
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CY2019Q1 us-gaap Marketable Securities Unrealized Gain Loss
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100000 USD
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0.227
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CY2019Q1 us-gaap Net Cash Provided By Used In Investing Activities
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4842000 USD
CY2018Q1 us-gaap Net Cash Provided By Used In Operating Activities
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2458000 USD
CY2019Q1 us-gaap Net Cash Provided By Used In Operating Activities
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21758000 USD
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-5952000 USD
CY2019Q1 us-gaap Net Income Loss
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7408000 USD
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1 segment
CY2019Q1 us-gaap Number Of Operating Segments
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1 segment
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-795000 USD
CY2019Q1 us-gaap Operating Income Loss
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12476000 USD
CY2019Q1 us-gaap Operating Lease Cost
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1995000 USD
CY2019Q1 us-gaap Operating Lease Expense
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508000 USD
CY2018Q1 us-gaap Operating Lease Impairment Loss
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0 USD
CY2019Q1 us-gaap Operating Lease Impairment Loss
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757000 USD
CY2018Q4 us-gaap Operating Lease Liability
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0 USD
CY2019Q1 us-gaap Operating Lease Liability
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30403000 USD
CY2019Q1 us-gaap Operating Lease Liability Current
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5027000 USD
CY2019Q1 us-gaap Operating Lease Liability Noncurrent
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25376000 USD
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0 USD
CY2019Q1 us-gaap Operating Lease Payments
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2597000 USD
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0 USD
CY2019Q1 us-gaap Operating Lease Right Of Use Asset
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27868000 USD
CY2019Q1 us-gaap Operating Lease Weighted Average Discount Rate Percent
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0.070
CY2019Q1 us-gaap Operating Lease Weighted Average Remaining Lease Term1
OperatingLeaseWeightedAverageRemainingLeaseTerm1
P6Y6M
CY2018Q4 us-gaap Operating Leases Future Minimum Payments Due
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38252000 USD
CY2018Q4 us-gaap Operating Leases Future Minimum Payments Due In Five Years
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4229000 USD
CY2018Q4 us-gaap Operating Leases Future Minimum Payments Due In Four Years
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4658000 USD
CY2018Q4 us-gaap Operating Leases Future Minimum Payments Due In Three Years
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5452000 USD
CY2018Q4 us-gaap Operating Leases Future Minimum Payments Due In Two Years
OperatingLeasesFutureMinimumPaymentsDueInTwoYears
6893000 USD
CY2018Q4 us-gaap Operating Leases Future Minimum Payments Due Thereafter
OperatingLeasesFutureMinimumPaymentsDueThereafter
9930000 USD
CY2018Q4 us-gaap Operating Leases Future Minimum Payments Remainder Of Fiscal Year
OperatingLeasesFutureMinimumPaymentsRemainderOfFiscalYear
7090000 USD
CY2017 us-gaap Operating Leases Rent Expense Net
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8900000 USD
CY2018 us-gaap Operating Leases Rent Expense Net
OperatingLeasesRentExpenseNet
8300000 USD
CY2018Q4 us-gaap Other Accrued Liabilities Current
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7971000 USD
CY2019Q1 us-gaap Other Accrued Liabilities Current
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5252000 USD
CY2018Q4 us-gaap Other Assets Noncurrent
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15327000 USD
CY2019Q1 us-gaap Other Assets Noncurrent
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13421000 USD
CY2018Q1 us-gaap Other Comprehensive Income Availableforsale Securities Adjustment Net Of Tax Portion Attributable To Parent
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-7000 USD
CY2019Q1 us-gaap Other Comprehensive Income Availableforsale Securities Adjustment Net Of Tax Portion Attributable To Parent
OtherComprehensiveIncomeAvailableforsaleSecuritiesAdjustmentNetOfTaxPortionAttributableToParent
42000 USD
CY2018Q1 us-gaap Other Comprehensive Income Foreign Currency Transaction And Translation Adjustment Net Of Tax Portion Attributable To Parent
OtherComprehensiveIncomeForeignCurrencyTransactionAndTranslationAdjustmentNetOfTaxPortionAttributableToParent
589000 USD
CY2019Q1 us-gaap Other Comprehensive Income Foreign Currency Transaction And Translation Adjustment Net Of Tax Portion Attributable To Parent
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47000 USD
CY2018Q1 us-gaap Other Comprehensive Income Loss Foreign Currency Transaction And Translation Adjustment Before Tax
OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentBeforeTax
589000 USD
CY2019Q1 us-gaap Other Comprehensive Income Loss Foreign Currency Transaction And Translation Adjustment Before Tax
OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentBeforeTax
47000 USD
CY2018Q1 us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci For Sale Of Securities Before Tax
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1000 USD
CY2019Q1 us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci For Sale Of Securities Before Tax
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53000 USD
CY2018Q1 us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci For Sale Of Securities Net Of Tax
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1000 USD
CY2019Q1 us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci For Sale Of Securities Net Of Tax
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53000 USD
CY2018Q1 us-gaap Other Comprehensive Income Unrealized Holding Gain Loss On Securities Arising During Period Before Tax
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-7000 USD
CY2019Q1 us-gaap Other Comprehensive Income Unrealized Holding Gain Loss On Securities Arising During Period Before Tax
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42000 USD
CY2018Q4 us-gaap Other Liabilities Noncurrent
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44455000 USD
CY2019Q1 us-gaap Other Liabilities Noncurrent
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42344000 USD
CY2018Q1 us-gaap Other Nonoperating Income Expense
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554000 USD
CY2019Q1 us-gaap Other Nonoperating Income Expense
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153000 USD
CY2018Q1 us-gaap Payments For Proceeds From Other Investing Activities
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1837000 USD
CY2019Q1 us-gaap Payments For Proceeds From Other Investing Activities
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1739000 USD
CY2018Q1 us-gaap Payments For Restructuring
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1724000 USD
CY2019Q1 us-gaap Payments For Restructuring
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3508000 USD
CY2018Q1 us-gaap Payments To Acquire Available For Sale Securities
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9603000 USD
CY2019Q1 us-gaap Payments To Acquire Available For Sale Securities
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0 USD
CY2016 us-gaap Payments To Acquire Marketable Securities
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5000000 USD
CY2016Q4 us-gaap Payments To Acquire Marketable Securities
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1000000 USD
CY2018Q1 us-gaap Payments To Acquire Property Plant And Equipment
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1804000 USD
CY2019Q1 us-gaap Payments To Acquire Property Plant And Equipment
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3074000 USD
CY2018Q4 us-gaap Preferred Stock Par Or Stated Value Per Share
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0.01000
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PreferredStockParOrStatedValuePerShare
0.01000
CY2018Q4 us-gaap Preferred Stock Shares Authorized
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10000000 shares
CY2019Q1 us-gaap Preferred Stock Shares Authorized
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10000000 shares
CY2018Q4 us-gaap Preferred Stock Shares Issued
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0 shares
CY2019Q1 us-gaap Preferred Stock Shares Issued
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0 shares
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0 shares
CY2019Q1 us-gaap Preferred Stock Shares Outstanding
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0 shares
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0 USD
CY2019Q1 us-gaap Preferred Stock Value
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27762000 USD
CY2019Q1 us-gaap Prepaid Expense And Other Assets Current
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28993000 USD
CY2018Q1 us-gaap Proceeds From Issuance Of Common Stock
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1608000 USD
CY2019Q1 us-gaap Proceeds From Issuance Of Common Stock
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11986000 USD
CY2018Q1 us-gaap Proceeds From Maturities Prepayments And Calls Of Available For Sale Securities
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2500000 USD
CY2019Q1 us-gaap Proceeds From Maturities Prepayments And Calls Of Available For Sale Securities
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9655000 USD
CY2018Q4 us-gaap Property Plant And Equipment Net
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34883000 USD
CY2019Q1 us-gaap Property Plant And Equipment Net
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36758000 USD
CY2018Q1 us-gaap Repayments Of Long Term Debt
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875000 USD
CY2019Q1 us-gaap Repayments Of Long Term Debt
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26875000 USD
CY2018Q1 us-gaap Research And Development Expense
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22941000 USD
CY2019Q1 us-gaap Research And Development Expense
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19665000 USD
CY2018Q1 us-gaap Restructuring And Related Cost Incurred Cost
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1029000 USD
CY2019Q1 us-gaap Restructuring And Related Cost Incurred Cost
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1341000 USD
CY2018Q1 us-gaap Restructuring Charges
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1029000 USD
CY2019Q1 us-gaap Restructuring Charges
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1341000 USD
CY2017Q4 us-gaap Restructuring Reserve
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2447000 USD
CY2018Q1 us-gaap Restructuring Reserve
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1752000 USD
CY2018Q4 us-gaap Restructuring Reserve
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10680000 USD
CY2019Q1 us-gaap Restructuring Reserve
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8513000 USD
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4220000 USD
CY2019Q1 us-gaap Restructuring Reserve Current
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2525000 USD
CY2018Q4 us-gaap Retained Earnings Accumulated Deficit
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-476783000 USD
CY2019Q1 us-gaap Retained Earnings Accumulated Deficit
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-469375000 USD
CY2018Q1 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
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98623000 USD
CY2019Q1 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
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98091000 USD
CY2018Q1 us-gaap Right Of Use Asset Obtained In Exchange For Operating Lease Liability
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0 USD
CY2019Q1 us-gaap Right Of Use Asset Obtained In Exchange For Operating Lease Liability
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219000 USD
CY2018Q1 us-gaap Selling General And Administrative Expense
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27043000 USD
CY2019Q1 us-gaap Selling General And Administrative Expense
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20781000 USD
CY2018Q1 us-gaap Share Based Compensation
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4800000 USD
CY2019Q1 us-gaap Share Based Compensation
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3686000 USD
CY2018Q1 us-gaap Stock Issued During Period Value Employee Stock Purchase Plan
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1149000 USD
CY2019Q1 us-gaap Stock Issued During Period Value Employee Stock Purchase Plan
StockIssuedDuringPeriodValueEmployeeStockPurchasePlan
11568000 USD
CY2017Q4 us-gaap Stockholders Equity
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217693000 USD
CY2018Q1 us-gaap Stockholders Equity
StockholdersEquity
245672000 USD
CY2018Q4 us-gaap Stockholders Equity
StockholdersEquity
258457000 USD
CY2019Q1 us-gaap Stockholders Equity
StockholdersEquity
281155000 USD
CY2019Q1 us-gaap Unrecognized Tax Benefits
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1200000 USD
CY2019Q1 us-gaap Unrecognized Tax Benefits Income Tax Penalties And Interest Accrued
UnrecognizedTaxBenefitsIncomeTaxPenaltiesAndInterestAccrued
100000 USD
CY2019Q1 us-gaap Variable Lease Cost
VariableLeaseCost
0 USD
CY2018Q1 us-gaap Weighted Average Number Diluted Shares Outstanding Adjustment
WeightedAverageNumberDilutedSharesOutstandingAdjustment
0 shares
CY2019Q1 us-gaap Weighted Average Number Diluted Shares Outstanding Adjustment
WeightedAverageNumberDilutedSharesOutstandingAdjustment
3818000 shares
CY2018Q1 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
124076000 shares
CY2019Q1 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
134810000 shares
CY2018Q1 us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
124076000 shares
CY2019Q1 us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
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130992000 shares
CY2019Q1 us-gaap Concentration Risk Credit Risk
ConcentrationRiskCreditRisk
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;font-size:12pt;"><font style="font-family:Arial;font-size:12pt;font-weight:bold;">Concentration Risk</font></div><div style="line-height:120%;font-size:8pt;"><font style="font-family:Arial;font-size:8pt;"><br clear="none"/></font></div><div style="line-height:120%;font-size:9pt;"><font style="font-family:Arial;font-size:9pt;">Potential exposure to concentration risk may impact revenue, accounts receivable, and supply of wafers for our products.</font></div><div style="line-height:120%;font-size:9pt;"><font style="font-family:Arial;font-size:9pt;"><br clear="none"/></font></div><div style="line-height:120%;font-size:9pt;"><font style="font-family:Arial;font-size:9pt;">Customer and distributor concentration risk may impact revenue. In the periods covered by this report, no end customer accounted for more than 10% of total revenue.</font></div><div style="line-height:120%;font-size:9pt;"><font style="font-family:Arial;font-size:9pt;"><br clear="none"/></font></div><div style="line-height:120%;font-size:9pt;"><font style="font-family:Arial;font-size:9pt;">Distributors have historically accounted for a significant portion of our total revenue. Revenue attributable to distributors as a percentage of total revenue was </font><font style="font-family:Arial;font-size:9pt;color:#000000;">79%</font><font style="font-family:Arial;font-size:9pt;"> and </font><font style="font-family:Arial;font-size:9pt;color:#000000;">87%</font><font style="font-family:Arial;font-size:9pt;"> for the three months ended March 30, 2019 and March 31, 2018, respectively. </font></div><div style="line-height:120%;font-size:9pt;"><font style="font-family:Arial;font-size:9pt;"><br clear="none"/></font></div><div style="line-height:120%;font-size:9pt;"><font style="font-family:Arial;font-size:9pt;">Our two largest distributor groups, Arrow Electronics, Inc. ("Arrow") and the Weikeng Group ("Weikeng"), also account for a substantial portion of our net accounts receivable. At </font><font style="font-family:Arial;font-size:9pt;">March&#160;30, 2019</font><font style="font-family:Arial;font-size:9pt;"> and </font><font style="font-family:Arial;font-size:9pt;">December&#160;29, 2018</font><font style="font-family:Arial;font-size:9pt;">, Arrow accounted for </font><font style="font-family:Arial;font-size:9pt;">34%</font><font style="font-family:Arial;font-size:9pt;"> and </font><font style="font-family:Arial;font-size:9pt;">41%</font><font style="font-family:Arial;font-size:9pt;">, respectively, and Weikeng accounted for </font><font style="font-family:Arial;font-size:9pt;">32%</font><font style="font-family:Arial;font-size:9pt;"> and </font><font style="font-family:Arial;font-size:9pt;">23%</font><font style="font-family:Arial;font-size:9pt;">, respectively, of net accounts receivable. A third distributor accounted for </font><font style="font-family:Arial;font-size:9pt;">12%</font><font style="font-family:Arial;font-size:9pt;"> of net accounts receivable at </font><font style="font-family:Arial;font-size:9pt;">March&#160;30, 2019</font><font style="font-family:Arial;font-size:9pt;">, but accounted for less than 10% of net accounts receivable at </font><font style="font-family:Arial;font-size:9pt;">December&#160;29, 2018</font><font style="font-family:Arial;font-size:9pt;">. No other distributor group or end customer accounted for more than 10% of net accounts receivable at these dates.</font></div><div style="line-height:120%;font-size:8pt;"><font style="font-family:Arial;font-size:8pt;"><br clear="none"/></font></div><div style="line-height:120%;font-size:9pt;"><font style="font-family:Arial;font-size:9pt;">Concentration of credit risk with respect to accounts receivable is mitigated by our credit and collection process, including active management of collections, credit limits, routine credit evaluations for essentially all customers, and secure transactions with letters of credit or advance payments where appropriate. We regularly review our allowance for doubtful accounts and the aging of our accounts receivable.</font></div><div style="line-height:120%;font-size:8pt;"><font style="font-family:Arial;font-size:8pt;"><br clear="none"/></font></div><div style="line-height:120%;font-size:9pt;"><font style="font-family:Arial;font-size:9pt;">Accounts receivable do not bear interest and are shown net of allowances for doubtful accounts of </font><font style="font-family:Arial;font-size:9pt;">$0.2 million</font><font style="font-family:Arial;font-size:9pt;"> at both </font><font style="font-family:Arial;font-size:9pt;">March&#160;30, 2019</font><font style="font-family:Arial;font-size:9pt;"> and </font><font style="font-family:Arial;font-size:9pt;">December&#160;29, 2018</font><font style="font-family:Arial;font-size:9pt;">. The allowance for doubtful accounts reflects our best estimate of probable losses inherent in the accounts receivable balance. We determine the allowance based on assessment of known troubled accounts, analysis of the aging of our accounts receivable, historical experience, management judgment, and other currently available evidence. We write off accounts receivable against the allowance when we determine a balance is uncollectible and no longer actively pursue collection of the receivable.</font></div><div style="line-height:120%;text-align:left;font-size:9pt;"><font style="font-family:Arial;font-size:9pt;"><br clear="none"/></font></div><div style="line-height:120%;font-size:9pt;"><font style="font-family:Arial;font-size:9pt;">We rely on a limited number of foundries for our wafer purchases, including Fujitsu Limited, Seiko Epson Corporation, Taiwan Semiconductor Manufacturing Company, Ltd, and United Microelectronics Corporation. We seek to mitigate the concentration of supply risk by establishing, maintaining and managing multiple foundry relationships; however, certain of our products are sourced from a single foundry and changing from one foundry to another can have a significant cost, among other factors.</font></div><div style="line-height:120%;font-size:8pt;"><font style="font-family:Arial;font-size:8pt;"><br clear="none"/></font></div></div>
CY2019Q1 us-gaap Property Plant And Equipment Impairment
PropertyPlantAndEquipmentImpairment
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;font-size:12pt;"><font style="font-family:Arial;font-size:12pt;font-weight:bold;">Property and Equipment</font></div><div style="line-height:120%;font-size:9pt;"><font style="font-family:Arial;font-size:9pt;"><br clear="none"/></font></div><div style="line-height:120%;font-size:9pt;"><font style="font-family:Arial;font-size:9pt;">Property and equipment are stated at cost. Depreciation and amortization are computed using the straight-line method for financial reporting purposes over the estimated useful lives of the related assets, generally </font><font style="font-family:Arial;font-size:9pt;">three</font><font style="font-family:Arial;font-size:9pt;"> to </font><font style="font-family:Arial;font-size:9pt;">five</font><font style="font-family:Arial;font-size:9pt;"> years for equipment and software, </font><font style="font-family:Arial;font-size:9pt;">one</font><font style="font-family:Arial;font-size:9pt;"> to </font><font style="font-family:Arial;font-size:9pt;">three</font><font style="font-family:Arial;font-size:9pt;"> years for tooling, and </font><font style="font-family:Arial;font-size:9pt;">thirty</font><font style="font-family:Arial;font-size:9pt;"> years for buildings and building space. Leasehold improvements are amortized over the shorter of the non-cancelable lease term or the estimated useful life of the assets. Upon disposal of property and equipment, the accounts are relieved of the costs and related accumulated depreciation and amortization, and resulting gains or losses are reflected in the </font><font style="font-family:Arial;font-size:9pt;">Consolidated Statements of Operations</font><font style="font-family:Arial;font-size:9pt;"> for recognized gains and losses or in the </font><font style="font-family:Arial;font-size:9pt;">Consolidated Balance Sheets</font><font style="font-family:Arial;font-size:9pt;"> for deferred gains and losses. Repair and maintenance costs are expensed as incurred.</font></div><div style="line-height:120%;font-size:9pt;"><font style="font-family:Arial;font-size:9pt;"><br clear="none"/></font></div></div>
CY2019Q1 us-gaap Use Of Estimates
UseOfEstimates
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;font-size:12pt;"><font style="font-family:Arial;font-size:12pt;font-weight:bold;">Use of Estimates</font></div><div style="line-height:120%;font-size:8pt;"><font style="font-family:Arial;font-size:8pt;"><br clear="none"/></font></div><div style="line-height:120%;font-size:9pt;"><font style="font-family:Arial;font-size:9pt;">The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts and classification of assets, such as marketable securities, accounts receivable, contract assets and contract liabilities, inventory, depreciable lives of fixed assets, lease right-of-use assets and lease liabilities, goodwill (including the assessment of reporting units), intangible assets, current and deferred income taxes, accrued liabilities (including restructuring charges and bonus arrangements), disclosure of contingent assets and liabilities at the date of the financial statements, impairment assessments, the fair value of equity awards, and the reported amounts of product revenue, licensing and services revenue, and expenses during the fiscal periods presented. Actual results could differ from those estimates.</font></div><div style="line-height:120%;font-size:8pt;"><font style="font-family:Arial;font-size:8pt;"><br clear="none"/></font></div></div>

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