0001193125-13-088274 | 10-K | XBRL Viewer

Document and Entity Information - USD ($)	12 Months Ended
Document and Entity Information - USD ($)	Dec. 31, 2012	Feb. 27, 2013	Jun. 30, 2012
Document and Entity Information [Abstract]
Entity Registrant Name	NOVATEL WIRELESS INC
Entity Central Index Key	0001022652
Document Type	10-K
Document Period End Date	Dec. 31, 2012
Amendment Flag	false
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	FY
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Public Float			$ 80,047,404
Entity Common Stock, Shares Outstanding		33,705,412

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011
Current assets:
Cash and cash equivalents	$ 16,044	$ 47,069
Marketable securities	38,064	28,267
Accounts receivable, net of allowance for doubtful accounts of $627 in 2012 and $245 in 2011	42,652	36,849
Inventories	39,016	42,279
Deferred tax assets, net	126	2,011
Prepaid expenses and other	4,829	3,712
Total current assets	140,731	160,187
Property and equipment, net of accumulated depreciation of $59,702 in 2012 and $59,217 in 2011	15,229	18,496
Marketable securities	1,201	13,495
Intangible assets, net of accumulated amortization of $11,951 in 2012 and $10,899 in 2011	3,163	35,702
Goodwill	0	19,772
Deferred tax assets, net	584	1,023
Other assets	623	504
Total assets	161,531	249,179
Current liabilities:
Accounts payable	45,732	54,030
Accrued expenses	27,800	25,044
Total current liabilities	73,532	79,074
Other long-term liabilities	2,552	4,080
Total liabilities	76,084	83,154
Stockholders' equity:
Preferred stock, par value $0.001; 2,000 shares authorized and none outstanding	0	0
Common stock, par value $0.001; 50,000 shares authorized, 33,655 and 32,262 shares issued and outstanding at December 31, 2012 and 2011, respectively	34	32
Additional paid-in capital	438,477	429,813
Accumulated other comprehensive income (loss)	14	(8)
Accumulated deficit	(328,078)	(238,812)
Stockholders' equity before treasury stock	110,447	191,025
Treasury stock at cost; 2,436 common shares at December 31, 2012 and 2011	(25,000)	(25,000)
Total stockholders' equity	85,447	166,025
Total liabilities and stockholders' equity	$ 161,531	$ 249,179

Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Thousands	Dec. 31, 2012	Dec. 31, 2011
Consolidated Balance Sheets [Abstract]
Accounts receivable, net of allowance for doubtful accounts	$ 627	$ 245
Property and equipment, net of accumulated depreciation	59,702	59,217
Intangible assets, net of accumulated amortization	$ 11,951	$ 10,899
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	2,000	2,000
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	50,000	50,000
Common stock, shares issued	33,655	32,262
Common stock, shares outstanding	33,655	32,262
Treasury stock, shares	2,436	2,436

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Consolidated Statements of Operations [Abstract]
Net revenues	$ 344,288	$ 402,862	$ 338,942
Cost of net revenues	271,845	318,270	272,648
Gross profit	72,443	84,592	66,294
Operating costs and expenses:
Research and development	60,422	61,392	48,906
Sales and marketing	27,501	29,830	20,978
General and administrative	22,668	21,600	21,233
Goodwill and intangible assets impairment	49,521	3,277	0
Amortization of purchased intangible assets	1,074	2,220	179
Total operating costs and expenses	161,186	118,319	91,296
Operating loss	(88,743)	(33,727)	(25,002)
Other income (expense):
Interest income (expense), net	291	384	(2,518)
Other income (expense), net	(203)	(1,052)	1,963
Loss before income taxes	(88,655)	(34,395)	(25,557)
Income tax provision (benefit)	611	(9,503)	7,893
Net loss	$ (89,266)	$ (24,892)	$ (33,450)
Net loss per share:
Basic and diluted	$ (2.72)	$ (0.78)	$ (1.06)
Weighted average shares used in computation of basic and diluted net loss per share:
Basic and diluted	32,852	32,043	31,494

Statements of Comprehensive Income Loss - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Statements of Comprehensive Income Loss [Abstract]
Net loss	$ (89,266)	$ (24,892)	$ (33,450)
Unrealized gain (loss) on cash equivalents and marketable securities, net of tax	22	(29)	6
Total comprehensive loss	$ (89,244)	$ (24,921)	$ (33,444)

- Definition

The change in equity [net assets] of a business enterprise during a period from transactions and other events and circumstances from non-owner sources which are attributable to the reporting entity. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners, but excludes any and all transactions which are directly or indirectly attributable to that ownership interest in subsidiary equity which is not attributable to the parent.

+ References + Details

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

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- Definition

Net of tax amount of unrealized holding gain (loss) before reclassification adjustments and transfers on available-for-sale securities.

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+ Details

Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Treasury Stock	Accumulated Deficit	Accumulated Other Comprehensive Income (Loss)
Beginning Balance at Dec. 31, 2009	$ 211,155	$ 31	$ 416,579	$ (25,000)	$ (180,470)	$ 15
Beginning Balance, shares at Dec. 31, 2009		31,092
Exercise of stock options, vesting of restricted stock units and shares issued under employee stock purchase plan	1,491	$ 1	1,490
Exercise of stock options, vesting of restricted stock units and shares issued under employee stock purchase plan, shares		760
Net tax effect from stock options exercised	(270)		(270)
Share-based compensation	6,471		6,471
Net loss	(33,450)				(33,450)
Other comprehensive income (loss)	6					6
Ending Balance at Dec. 31, 2010	185,403	$ 32	424,270	(25,000)	(213,920)	21
Ending Balance, shares at Dec. 31, 2010		31,852
Exercise of stock options, vesting of restricted stock units and shares issued under employee stock purchase plan	504		504
Exercise of stock options, vesting of restricted stock units and shares issued under employee stock purchase plan, shares		410
Net tax effect from stock options exercised	(244)		(244)
Taxes withheld on net settled vesting of restricted stock units	(700)		(700)
Share-based compensation	5,983		5,983
Net loss	(24,892)				(24,892)
Other comprehensive income (loss)	(29)					(29)
Ending Balance at Dec. 31, 2011	166,025	$ 32	429,813	(25,000)	(238,812)	(8)
Ending Balance, shares at Dec. 31, 2011		32,262
Exercise of stock options, vesting of restricted stock units and shares issued under employee stock purchase plan	1,599	$ 2	1,597
Exercise of stock options, vesting of restricted stock units and shares issued under employee stock purchase plan, shares		1,393
Taxes withheld on net settled vesting of restricted stock units	(433)		(433)
Share-based compensation	7,500		7,500
Net loss	(89,266)				(89,266)
Other comprehensive income (loss)	22					22
Ending Balance at Dec. 31, 2012	$ 85,447	$ 34	$ 438,477	$ (25,000)	$ (328,078)	$ 14
Ending Balance, shares at Dec. 31, 2012		33,655

- Definition

This element represents the amount of recognized equity-based compensation during the period, that is, the amount recognized as expense in the income statement (or as asset if compensation is capitalized). Alternate captions include the words "stock-based compensation".

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+ Details

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

+ Details

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Cash flows from operating activities:
Net loss	$ (89,266)	$ (24,892)	$ (33,450)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Amortization of debt issuance costs	0	0	541
Loan fees recognized on extinguishment of debt	0	0	2,370
Depreciation and amortization	12,337	17,868	11,711
Loss on goodwill and purchased intangible assets impairment	49,521	3,277	0
Impairment loss on equipment and software license intangible assets	100	203	167
Provision for bad debts	439	40	141
Net impairment loss on marketable securities	39	346	0
Inventory provision	2,843	689	1,874
Share-based compensation expense	7,500	5,983	6,471
Excess tax benefits from equity based compensation	0	0	(112)
Non-cash income tax expense (benefit)	462	(9,185)	7,766
Changes in assets and liabilities:
Accounts receivable	(6,242)	26,437	(19,963)
Inventories	420	122	(9,527)
Prepaid expenses and other assets	(1,237)	3,661	(2,461)
Accounts payable	(10,433)	(24,293)	46,020
Accrued expenses, income taxes, and other	3,638	(1,787)	(5,337)
Net cash provided by (used in) operating activities	(29,879)	(1,531)	6,211
Cash flows from investing activities:
Purchases of property and equipment	(4,579)	(5,987)	(10,785)
Acquisition of business, net of cash acquired	0	0	(72,247)
Purchases of intangible assets	(104)	(284)	(110)
Purchases of marketable securities	(44,216)	(36,992)	(178,712)
Marketable securities maturities/sales	46,696	74,922	174,286
Net cash provided by (used in) investing activities	(2,203)	31,659	(87,568)
Cash flows from financing activities:
Proceeds from the issuance of short-term debt, net of issuance costs	14,000	12,000	27,415
Principal repayments of short-term debt	(14,000)	(12,000)	(30,000)
Principal payments under capital lease obligations	(46)	(109)	(134)
Proceeds from stock option exercises and ESPP net of taxes paid on vested restricted stock units	1,166	(196)	1,491
Excess tax benefits from stock options exercised	0	0	112
Deposit of restricted funds	0	0	(188,890)
Remittance from restricted funds	0	0	188,890
Net cash provided by (used in) financing activities	1,120	(305)	(1,116)
Effect of exchange rates on cash and cash equivalents	(63)	(129)	(177)
Net increase (decrease) in cash and cash equivalents	(31,025)	29,694	(82,650)
Cash and cash equivalents, beginning of period	47,069	17,375	100,025
Cash and cash equivalents, end of period	16,044	47,069	17,375
Cash paid during the year for:
Interest	17	8	181
Income taxes	104	112	299
Supplemental disclosures of non-cash investing activities:
Building rent incentives to fund leasehold improvements	0	1,869	0
Supplemental disclosures of non-cash financing activities:
Marketable equity securities received in settlement of note receivable	0	386	0
Accrued debt issuance costs	$ 0	$ 0	$ 326

Nature of Business and Significant Accounting Policies

12 Months Ended

Dec. 31, 2012

Nature of Business and Significant Accounting Policies [Abstract]

Nature of Business and Significant Accounting Policies

1.	Nature of Business and Significant Accounting Policies

Novatel Wireless, Inc. (the “Company,” “our” or “we”) is a provider of wireless broadband access solutions for the worldwide mobile communications market. Our broad range of products principally includes intelligent mobile hotspots, USB modems, embedded PCI and wireless PC-card modems, and communications and applications software. In addition, through our acquisition of Enfora, Inc. (“Enfora”) on November 30, 2010, we provide asset-management solutions utilizing wireless technology and machine-to-machine (“M2M”) communications devices.

Principles of Consolidation

The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets, liabilities, revenues and expenses, and disclosure of contingent liabilities. Actual results could differ materially from these estimates. Significant estimates include allowance for doubtful accounts receivable, provision for excess and obsolete inventory, valuation of intangible and long-lived assets including goodwill valuation, contingent consideration, litigation, provision for warranty costs, income taxes and share-based compensation expense.

Difficult global economic conditions, tight credit markets, volatile equity, foreign currency and energy markets and declines in consumer spending have combined to increase the uncertainty inherent in these estimates and assumptions. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates, particularly those related to the condition of the economy.

Cash and Cash Equivalents

Cash and cash equivalents include highly liquid investments with original maturities of three months or less at the time of acquisition. Cash and cash equivalents consist of demand deposits, US Treasury securities, and money market funds. Cash and cash equivalents are recorded at market value, which approximates cost. Gains and losses associated with the Company’s foreign currency denominated demand deposits are recorded as a component of other income (expense).

Allowance for Doubtful Accounts Receivable

The Company provides an allowance for its accounts receivable for estimated losses that may result from its customers’ inability to pay. The Company determines the amount of the allowance by analyzing known uncollectible accounts, aged receivables, economic conditions, historical losses, and changes in customer payment cycles and our customers’ credit-worthiness. Amounts later determined and specifically identified to be uncollectible are charged or written off against this allowance. To minimize the likelihood of uncollectibility, the Company reviews its customers’ credit-worthiness periodically based on credit scores generated by independent credit reporting services, its experience with its customers and the economic condition of its customers’ industries. Material differences may result in the amount and timing of expense for any period if the Company were to make different judgments or utilize different estimates.

Marketable Securities

Marketable securities predominantly consist of highly liquid debt investments with a maturity of greater than three months when purchased. The Company holds an insignificant amount of marketable equity securities. All of the Company’s marketable debt securities are treated as “available-for-sale.” While it is the Company’s intent to hold its debt securities until maturity, the Company may sell certain securities for cash flow purposes. Thus, the Company’s marketable debt securities are classified as available-for-sale and are carried on the balance sheet at fair value with the related unrealized gains and losses included in accumulated other comprehensive income (loss), a component of stockholders’ equity. Realized gains and losses on the sale of marketable securities are determined using the specific-identification method. The Company determines the fair value of its financial assets and liabilities by reference to the hierarchy of inputs which consists of three levels: Level 1 fair values are valuations based on quoted market prices in active markets for identical assets or liabilities that the entity has the ability to access; Level 2 fair values are those valuations based on quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable data for substantially the full term of the assets or liabilities; and Level 3 fair values are valuations based on inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

All securities whose maturity or sale is expected within one year are classified as “current” on the consolidated balance sheet. All other securities are classified as “long-term” on the consolidated balance sheet.

Inventories and Provision for Excess and Obsolete Inventory

Inventories are stated at the lower of cost (first-in, first-out method) or market. Shipping and handling costs are classified as a component of cost of net revenues in the consolidated statements of operations. The Company reviews the components of its inventory and its inventory purchase commitments on a regular basis for excess and obsolete inventory based on estimated future usage and sales. Write-downs in inventory value or losses on inventory purchase commitments depend on various items, including factors related to customer demand, economic and competitive conditions, technological advances or new product introductions by the Company or its customers that vary from its current expectations. Whenever inventory is written down, a new cost basis is established and the inventory is not subsequently written up if market conditions improve.

The Company believes that, when made, the estimates used in calculating the inventory provision are reasonable and properly reflect the risk of excess and obsolete inventory. If customer demand for the Company’s inventory is substantially less than its estimates, inventory write-downs may be required, which could have a material adverse effect on its consolidated financial statements.

Property and Equipment

Property and equipment are initially stated at cost and depreciated using the straight-line method. Test equipment, computer equipment, purchased software, furniture, and fixtures and product tooling are depreciated over lives ranging from eighteen months to five years and leasehold improvements are depreciated over the shorter of the related remaining lease period or useful life. Amortization of assets held under capital leases is included in depreciation expense.

Expenditures for repairs and maintenance are expensed as incurred. Expenditures for major renewals and betterments that extend the useful lives of existing property and equipment are capitalized and depreciated. Upon retirement or disposition of property and equipment, any resulting gain or loss is recognized in the consolidated statements of operations.

Intangible Assets

Intangible assets include purchased intangible assets acquired from Enfora and the costs of non-exclusive and perpetual worldwide software technology licenses. These costs are amortized on an accelerated basis or on a straight-line basis over the estimated useful lives of the assets, depending on the anticipated utilization of the asset. The majority of intangible assets relate to the developed technologies and trade name resulting from the acquisition of Enfora. Developed technologies are amortized on a straight-line basis over two years. Trade name is amortized on a straight-line basis over four years.

Long-Lived Assets

The Company periodically evaluates the carrying value of the unamortized balances of its long-lived assets, including property and equipment and intangible assets, to determine whether impairment of these assets has occurred or whether a revision to the related amortization periods should be made. When the carrying value of an asset exceeds the associated undiscounted expected future cash flows, it is considered to be impaired and is written down to fair value. Fair value is determined based on an evaluation of the assets associated undiscounted future cash flows or appraised value. This evaluation is based on management’s projections of the undiscounted future cash flows associated with each class of asset. If management’s evaluation indicates that the carrying values of these assets are impaired, such impairment is recognized by a reduction of the applicable asset carrying value to its estimated fair value and the impairment is expensed as a part of continuing operations.

Goodwill

Goodwill represents the excess of the purchase price of an acquired enterprise over the fair value assigned to assets acquired and liabilities assumed in a business combination. Goodwill is allocated as of the date of the business combination to the reporting units that are expected to benefit from the synergies of the business combination. Goodwill is considered to be impaired if the Company determines that the carrying value of the reporting unit to which the goodwill has been assigned exceeds its estimated fair value. The Company performs its annual goodwill impairment test each year at the beginning of the fourth quarter, or more frequently if events or circumstances indicate that the carrying value of goodwill exceeds its fair value. The Company recorded $19.8 million, $3.3 million, and $0 of goodwill impairment losses during the years ended December 31, 2012, 2011, and 2010, respectively.

Contingent Consideration

Contingent consideration is recorded at the acquisition date estimated fair value for all acquisitions. The fair value of the contingent consideration is remeasured at each reporting period with any adjustments in fair value included in the Company’s consolidated statement of operations.

Revenue Recognition

The Company’s revenue is principally generated from the sale of wireless modems to wireless operators, OEM customers and value added resellers and distributors. In addition, the Company generates revenue from the sale of asset-management solutions utilizing wireless technology and M2M communication devices predominantly to transportation and industrial companies, medical device manufacturers and security system providers. Revenue from product sales is generally recognized upon the later of transfer of title or delivery of the product to the customer. Where the transfer of title or risk of loss is contingent on the customer’s acceptance of the product, we will not recognize revenue until both title and risk of loss have transferred to the customer. We record deferred revenue for cash payments received from customers in advance of when revenue recognition criteria are met. We have granted price protection to certain customers in accordance with the provisions of the respective contracts and track pricing and other terms offered to customers buying similar products to assess compliance with these provisions. We estimate the amount of price protection for current period product sales utilizing historical experience and information regarding customer inventory levels. To date, we have not incurred material price protection obligations. Revenues from sales to certain customers are subject to cooperative advertising allowances. Cooperative advertising allowances are recorded as an operating expense to the extent that the advertising benefit is separable from the revenue transaction and the fair value of that advertising benefit is determinable. To the extent that such allowances either do not provide a separable benefit to us, or the fair value of the advertising benefit cannot be reliably estimated, such amounts are recorded as a reduction of revenue. We establish reserves for estimated product returns allowances in the period in which revenue is recognized. In estimating future product returns, we consider various factors, including our stated return policies and practices and historical trends.

Predominantly all of our revenues represent the sale of hardware with accompanied software that is essential to the functionality of the hardware. The Company records revenue associated with the agreed upon price on hardware sales, and accrues any estimated costs of post-delivery performance obligations such as warranty obligations. The Company considers the four basic revenue recognition criteria discussed under Staff Accounting Bulletin #104 when assessing appropriate revenue recognition as follows:

Criterion #1—Persuasive evidence of an arrangement must exist;

Criterion #2—Delivery has occurred;

Criterion #3—The Company’s price to the buyer must be fixed or determinable; and,

Criterion #4—Collectibility is reasonably assured.

For multiple element arrangements, total consideration received from customers is allocated to the elements. This may include hardware and non essential software elements, based on a relative selling price. The accounting guidance establishes a hierarchy to determine the selling price to be used for allocating revenue to deliverables as follows: (i) vendors specific objective evidence (VSOE), (ii) third party evidence (TPE), and (iii) best estimate of selling price (ESP). Because the Company has neither VSOE nor TPE, revenue has been based on the Company’s ESP. Amounts allocated to the delivered hardware and the related essential software are recognized at the time of the sale provided all other revenue recognition criteria have been met. Amounts allocated to other deliverables based upon ESP are recognized in the period the revenue recognition criteria have been met.

Our process for determining its ESP for deliverables without VSOE or TPE considers multiple factors that may vary depending upon the unique facts and circumstances related to each deliverable. Our prices are determined based upon cost to produce our products, expected order quantities and acceptance in the marketplace. In addition, when developing ESPs for products we may consider other factors as appropriate including the pricing of competitive alternatives if they exist, and product-specific business objectives.

We account for nonessential software licenses and related post contract support (PCS) under multiple element arrangements by recognizing revenue for such arrangements ratably over the term of the PCS as we have not established VSOE for the PCS element.

For the years ended December 31, 2012, 2011, and 2010, we have not recorded any significant revenues from multiple element or software arrangements.

Research and Development Costs

Research and development costs are expensed as incurred.

Warranty Costs

The Company accrues warranty costs based on estimates of future warranty related replacement, repairs or rework of products. Our warranty policy generally provides one to three years of coverage for products following the date of purchase. The Company’s policy is to accrue the estimated cost of warranty coverage as a component of cost of revenue in the accompanying consolidated statements of operations at the time revenue is recognized. In estimating its future warranty obligations the Company considers various factors, including the historical frequency and volume of claims, and the cost to replace or repair products under warranty. The warranty provision for its products is determined by using a financial model to estimate future warranty costs. The Company’s financial model takes into consideration actual product failure rates; estimated replacement, repair or rework expenses; and potential risks associated with our different products. The risk levels, warranty cost information, and failure rates used within this model are reviewed throughout the year and updated, if and when, these inputs change.

Income Taxes

The Company recognizes federal, state and foreign current tax liabilities or assets based on our estimate of taxes payable to or refundable by tax authorities in the current fiscal year. The Company also recognizes federal, state and foreign deferred tax liabilities or assets based on the Company’s estimate of future tax effects attributable to temporary differences and carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled.

Deferred tax assets are reduced by valuation allowances if, based on the consideration of all available evidence, it is more likely than not that some portion of the deferred tax asset will not be realized. The Company evaluates deferred income taxes on a quarterly basis to determine if valuation allowances are required by considering available evidence. If the Company is unable to generate sufficient future taxable income in certain tax jurisdictions, or if there is a material change in the actual effective tax rates or time period within which the underlying temporary differences become taxable or deductible, the Company could be required to increase its valuation allowance against its deferred tax assets which could result in an increase in the Company’s effective tax rate and an adverse impact on operating results. The Company will continue to evaluate the necessity of the valuation allowance based on the remaining deferred tax assets.

The Company follows the accounting guidance related to financial statement recognition, measurement and disclosure of uncertain tax positions. The Company recognizes the impact of an uncertain income tax position on an income tax return at the largest amount that is more-likely-than-not to be sustained upon audit by the relevant taxing authority. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. Uncertain tax positions are recognized in the first subsequent financial reporting period in which that threshold is met or from changes in circumstances such as the expiration of applicable statutes of limitations.

Derivatives and Hedging

At times, the Company will enter into derivative financial instruments, consisting solely of foreign currency forward exchange contracts. The purpose of these derivative instruments is to hedge the Company’s economic exposure associated with accounts receivable and cash balances denominated in Euros. The Company’s forward contracts do not qualify as accounting hedges. As a result, the Company marks-to-market the forward contracts and includes unrealized gains and losses in the current period as a component of other income (expense) in the consolidated statements of operations.

Litigation

The Company is currently involved in certain legal proceedings. The Company will record a loss when the Company determines information available prior to the issuance of the financial statements indicates the loss is both probable and estimable. Where a liability is probable and there is a range of estimated loss with no best estimate in the range, the Company records the minimum estimated liability related to the claim. As additional information becomes available, the Company assesses the potential liability related to the Company’s pending litigation and revises its estimates, if necessary. The Company’s policy is to expense litigation costs as incurred.

Share-Based Compensation

The Company has granted stock options to employees and restricted stock units. The Company also has an employee stock purchase plan (“ESPP”) for eligible employees. The Company measures the compensation cost associated with all share-based payments based on grant date fair values. The fair value of each employee stock option and employee stock purchase right is estimated on the date of grant using an option pricing model that meets certain requirements. The Company currently uses the Black-Scholes option pricing model to estimate the fair value of our stock options and stock purchase rights. The Black-Scholes model is considered an acceptable model but the fair values generated by it may not be indicative of the actual fair values of our equity awards as it does not consider certain factors important to those awards to employees, such as continued employment and periodic vesting requirements as well as limited transferability. The determination of the fair value of share-based payment awards utilizing the Black-Scholes model is affected by our stock price and a number of assumptions, including expected volatility, expected term, risk-free interest rate and expected dividends.

For grants of stock options, the Company uses a blend of historical and implied volatility for traded options on its stock in order to estimate the expected volatility assumption required in the Black-Scholes model. The Company’s use of a blended volatility estimate in computing the expected volatility assumption for stock options is based on its belief that while that implied volatility is representative of expected future volatility, the historical volatility over the expected term of the award is also an indicator of expected future volatility. Due to the short duration of employee stock purchase rights under our ESPP, the Company utilizes historical volatility in order to estimate the expected volatility assumption of the Black-Scholes model.

The expected term of stock options granted is estimated using the average of the vesting date, the contractual term and historical experience. The risk-free interest rate assumption is based on observed interest rates appropriate for the expected terms of our stock options and employee stock purchase rights. The dividend yield assumption is based on the Company’s history and expectation of no dividend payouts. The Company estimates forfeitures at the time of grant and revises these estimates, if necessary, in subsequent periods if actual forfeitures differ from those estimates. The Company estimates its forfeiture rate assumption for all types of share based compensation awards based historical forfeiture rates related to each category of award.

Compensation cost associated with grants of restricted stock units are measured at fair value, which has historically been the closing price of the Company’s stock on the date of grant.

The Company recognizes share-based compensation expense using the straight-line method for awards that contain only service conditions. For awards that contain performance conditions, the Company recognizes the share-based compensation expense on a straight-line basis for each vesting tranche.

The Company evaluates the assumptions used to value stock awards on a quarterly basis. If factors change and the Company employs different assumptions, share-based compensation expense may differ significantly from what it has recorded in the past. If there are any modifications or cancellations of the underlying unvested securities, the Company may be required to accelerate, increase or cancel any remaining unearned share-based compensation expense. To the extent that the Company grants additional equity securities to employees or it assumes unvested securities in connection with any acquisitions, its share-based compensation expense will be increased by the additional unearned compensation resulting from those additional grants or acquisitions.

Computation of Net Income (Loss) Per Share

The Company computes basic and diluted per share data for all periods for which a statement of operations is presented. Basic net income (loss) per share excludes dilution and is computed by dividing the net income (loss) by the weighted-average number of shares that were outstanding during the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to acquire common stock were exercised or converted into common stock. Potential dilutive securities are excluded from the diluted EPS computation in loss periods as their effect would be anti-dilutive.

Fair Value of Financial Instruments

The Company’s fair value measurements relate to its cash equivalents, marketable debt securities, and marketable equity securities, which are classified pursuant to authoritative guidance for fair value measurements. The Company places its cash equivalents and marketable debt securities in instruments that meet credit quality standards, as specified in its investment policy guidelines. These guidelines also limit the amount of credit exposure to any one issue, issuer or type of instrument.

Our financial instruments consist principally of cash and cash equivalents, short-term and long-term marketable securities, and short-term and long-term debt. The Company’s cash and cash equivalents consist of its investment in money market securities and treasury bills. The Company’s marketable securities consist primarily of government agency securities, municipal bonds, time deposits and investment-grade corporate bonds. From time to time, the Company may utilize foreign exchange forward contracts. These contracts are valued using pricing models that take into account the currency rates as of the balance sheet date.

Comprehensive Income (Loss)

Comprehensive income (loss) consists of net earnings and unrealized gains and losses on available-for-sale securities.

Recent Accounting Pronouncements

In September 2011, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2011-08 “Intangibles-Goodwill and Other (Topic 350) — Testing Goodwill for Impairment.” ASU 2011-08 amends the previous guidance under Topic 350 which required an entity to test goodwill for impairment, on at least an annual basis, by performing the two-step goodwill impairment test described in Topic 350. The amendments in ASU 2011-08 permit an entity to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment test. The more likely than not threshold is defined as having likelihood of more than 50 percent. ASU 2011-08 is effective for annual and interim goodwill impairment tests performed for fiscal years beginning after December 15, 2011. The Company has adopted ASU 2011-08 for our financial statement results beginning January 1, 2012 and there was no material impact on the consolidated financial statements upon adoption.

In June 2011, the FASB issued ASU No. 2011-05 “Comprehensive Income (Topic 220) — Presentation of Comprehensive Income.” ASU 2011-05 requires that all non-owner changes in stockholders’ equity be presented either in a single continuous statement of comprehensive income or in two separate but consecutive statements. In both choices, an entity is required to present each component of net income along with total net income, each component of other comprehensive income along with a total for other comprehensive income, and a total amount for comprehensive income. ASU 2011-05 is effective retrospectively for fiscal years, and interim periods within those years, beginning after December 15, 2011. The Company has adopted ASU 2011-05 and has presented comprehensive income (loss) separately in the consolidated statements of comprehensive income (loss) for the years ended 2012, 2011, and 2010.

Merger and Acquisition Activities in Prior Years

12 Months Ended

Dec. 31, 2012

Merger and Acquisition Activities in Prior Years [Abstract]

Merger and Acquisition Activities in Prior Years

2.	Merger and Acquisition Activities in Prior Years

Enfora

On November 30, 2010, the Company completed the acquisition of Enfora. The acquisition of Enfora diversifies the Company’s customer base and product lines into adjacent markets and advances the Company’s strategy of providing intelligent devices to all end markets—enterprise, consumer and vertical applications.

Enfora’s results of operations and estimated fair value of assets acquired and liabilities assumed were included in the Company’s consolidated financial statements beginning November 30, 2010. The revenue and operating results contributed by Enfora for the years ended December 31, 2012, 2011 and 2010 are disclosed in our Segment Information and Concentrations of Risk footnote (see Note 12). Acquisition costs related to the merger of Enfora of $1.9 million were recorded and classified as general and administrative expenses in the consolidated statement of operations during the year ended December 31, 2010.

Acquisition consideration

Under the terms of the acquisition agreement, the Company paid cash consideration of $64.5 million and additional cash consideration of $13.0 million in exchange for an agreed upon amount of Enfora working capital. The Company also agreed to pay additional cash consideration (“contingent consideration”) of up to $6.0 million based on the operating results of Enfora for the 15 month period from October 1, 2010 to December 31, 2011. The estimated fair value of this contingent consideration at the acquisition date was $0.9 million, resulting in total estimated cash to be paid of $78.4 million. During the quarter ended March 31, 2011, the Company revised its estimate of contingent consideration to $0 and reflected this change as a benefit to general and administrative expenses for the quarter ended March 31, 2011. There were no changes in the fair value of the contingent consideration recorded in the nine months ended December 31, 2011 as the operating results necessary to receive payment of the contingent consideration were not achieved.

Fair Value of Assets Acquired and Liabilities Assumed

The Company accounted for the transaction using the acquisition method and, accordingly, estimated the fair value of the tangible and intangible assets acquired and liabilities assumed. During the third quarter of 2011, the Company made a $0.3 million adjustment to increase Enfora net deferred tax assets, with a corresponding dollar amount decrease to goodwill, based on completed studies of available tax benefits existing as of the date of acquisition. The total purchase price is summarized below (in thousands):


Cash and cash equivalents	$	4,600
Accounts receivables		7,448
Inventories		10,469
Property and equipment		1,597
Prepaid expenses and other assets		304
Accounts payable, accrued expenses and deferred taxes		(12,220	)
Intangible assets		42,520
Goodwill		23,661

Purchase price	$	78,379

Cinterion

In June 2010, the Company submitted a bid to purchase certain assets of Cinterion, a company in the cellular M2M communications industry, in connection with an insolvency proceeding. The Company was not the successful bidder at the conclusion of the process on June 28, 2010. In connection with the bid, the Company borrowed $30.0 million under a bridge loan facility in June 2010 which was subsequently repaid in July 2010. The Company recognized $3.1 million of debt issuance costs related to the bridge loan facility. This amount was recorded as interest expense in the consolidated statement of operations for the year ended December 31, 2010. The Company also realized $1.7 million of foreign currency gain, net of hedging transaction costs, to address foreign currency risk also related to the bid. This amount was recorded in other income in the consolidated statement of operations during the year ended December 31, 2010. The Company also incurred $1.3 million in legal, advisory and professional fees related to the acquisition bid, which were recorded and classified as general and administrative expenses in the consolidated statement of operations during the year ended December 31, 2010.

- Definition

The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable).

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=7659399&loc=d3e1497-128463

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=7659399&loc=d3e1490-128463

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=7659399&loc=d3e1392-128463

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=7488404&loc=d3e7008-128479

Reference 5: http://www.xbrl.org/2003/role/presentationRef
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-URI http://asc.fasb.org/extlink&oid=7659399&loc=d3e1486-128463

Reference 6: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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Reference 7: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=6910749&loc=d3e4845-128472

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 9: http://www.xbrl.org/2003/role/presentationRef
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Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 12: http://www.xbrl.org/2003/role/presentationRef
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Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=7659399&loc=d3e1383-128463

Reference 16: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Emerging Issues Task Force (EITF)
-Number 88-16
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 17: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
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-Paragraph F4
-Subparagraph e
-Appendix F

Reference 18: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 19: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 141R
-Paragraph 67-73
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Fair Value Measurement of Assets and Liabilities

12 Months Ended

Dec. 31, 2012

Fair Value Measurement of Assets and Liabilities [Abstract]

Fair Value Measurement of Assets and Liabilities

3.	Fair Value Measurement of Assets and Liabilities

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). A fair value measurement reflects the assumptions market participants would use in pricing an asset or liability based on the best available information. These assumptions include the risk inherent in a particular valuation technique (such as a pricing model) and the risks inherent in the inputs to the model.

We classify our inputs to measure fair value using a three-level hierarchy that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. The categorization of financial instruments within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The hierarchy is prioritized into three levels (with Level 3 being the lowest) defined as follows:

Level 1: Pricing inputs are based on quoted market prices for identical assets or liabilities in active markets (e.g., NYSE). Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis.

Level 2: Pricing inputs include benchmark yields, trade data, reported trades and broker dealer quotes, two-sided markets and industry & economic events, yield to maturity, Municipal Securities Rule Making Board reported trades and vendor trading platform data. Level 2 includes those financial instruments that are valued using various pricing services and broker pricing information including Electronic Communication Networks and broker feeds.

Level 3: Pricing inputs include significant inputs that are generally less observable from objective sources, including the Company’s own assumptions.

At December 31, 2012, the Company did not have any securities in the Level 3 category. The Company reviews the fair value hierarchy classification on a quarterly basis. We validate the quoted market prices provided by our primary pricing service by comparing their assessment of the fair values of our investments by using a third party investment manager. The third party investment manager uses similar techniques to our primary pricing service to derive the pricing describe above. Changes in the observability of valuation inputs may result in a reclassification of levels for certain securities within the fair value hierarchy.

The following table summarizes the Company’s financial instruments measured at fair value on a recurring basis in accordance with the authoritative guidance for fair value measurements as of December 31, 2012 (in thousands):


Description	Balance as of December 31, 2012		Level 1		Level 2
Assets:
Cash equivalents
Money market funds	$	47	$	47	$	0
US Treasury securities		3,429		0		3,429

Total cash equivalents		3,476		47		3,429

Short-term marketable securities:
Available-for-sale:
Government agency securities		3,266		0		3,266
Municipal bonds		11,260		0		11,260
Certificates of deposit		6,205		0		6,205
Corporate debentures / bonds		17,333		0		17,333

Total short-term marketable securities		38,064		0		38,064

Long-term marketable securities:
Available-for-sale:
Certificates of deposit		1,201		0		1,201

Total long-term marketable securities		1,201		0		1,201

Total financial assets	$	42,741	$	47	$	42,694


Description	Balance as of December 31, 2011		Level 1		Level 2
Assets:
Cash equivalents
Money market funds	$	25,137	$	25,137	$	0
US Treasury securities		5,784		0		5,784

Total cash equivalents		30,921		25,137		5,784

Short-term marketable securities:
Available-for-sale:
Government agency securities		6,912		0		6,912
Municipal bonds		8,384		0		8,384
Certificates of deposit		4,321		0		4,321
Corporate debentures / bonds		8,612		0		8,612
Marketable equity securities		38		38		0

Total short-term marketable securities		28,267		38		28,229

Long-term marketable securities:
Available-for-sale:
Government agency securities		3,738		0		3,738
Municipal bonds		5,969		0		5,969
Certificates of deposit		3,788		0		3,788

Total long-term marketable securities		13,495		0		13,495

Total financial assets	$	72,683	$	25,175	$	47,508

There were no transfers between Level 1 and Level 2 securities during the years ended December 31, 2012 and 2011. All of our long-term marketable debt securities had maturities of between one and two years in duration at December 31, 2012.

The table below presents Level 3 activity for our contingent consideration liability for the twelve months ended December 31, 2011 (in thousands):


Contingent consideration liability	Level 3
Beginning balance at January 1, 2011	$	(880	)
Adjustments		880

Ending balance at December 31, 2011	$	0

As of December 31, 2012 and 2011, the Company had no outstanding foreign currency exchange forward contracts.

For the years ended December 31, 2012, 2011 and 2010, the Company recorded gains of $0, $8,000, $38,000, respectively, on its Euro-denominated foreign exchange forward contracts. During the years ended December 31, 2012, 2011 and 2010, the Company recorded foreign currency gains and losses on foreign currency denominated transactions of approximately $51,000 loss, $836,000 loss, $1.7 million gain, respectively. The loss during the year ended December 31, 2012 primarily related to foreign currency losses on foreign currency denominated bank accounts. The loss during the year ended December 31, 2011 primarily related to foreign currency losses on South Korean won denominated trade payables. The gains during the year ended December 31, 2010 primarily relate to a $2.9 million foreign currency gain realized on the liquidation of the Company’s cash holdings in Euros at the conclusion of the insolvency proceeding for the sale of Cinterion net of $1.2 million in expense to enter into several Euro-denominated put options to hedge the foreign currency risk associated with its cash holdings in Euros related to the Cinterion bid process. These put options expired unexercised on June 25, 2010.

All recorded gains and losses on foreign exchange transactions are recorded in other income (expense), net, within the consolidated statements of operations.

- Definition

The entire disclosure of the fair value measurement of assets and liabilities, which includes financial instruments measured at fair value that are classified in shareholders' equity, which may be measured on a recurring or nonrecurring basis.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=7578670&loc=d3e19279-110258

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=7578670&loc=d3e19207-110258

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=7578670&loc=d3e19190-110258

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 10
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 157
-Paragraph 32
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 157
-Paragraph 6
-Footnote 4
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 157
-Paragraph 33
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Financial Statement Details

12 Months Ended

Dec. 31, 2012

Financial Statement Details [Abstract]

Financial Statement Details

4.	Financial Statement Details

Marketable Securities

The Company’s portfolio of available-for-sale securities by contractual maturity consists of the following (in thousands):


December 31, 2012	Maturity in Years		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
Available-for-sale:
Government agency securities		1 or less	$	3,265	$	1	$	0		$	3,266
Municipal bonds		1 or less		11,246		14		0			11,260
Certificates of deposit		1 or less		6,200		5		0			6,205
Corporate debentures / bonds		1 or less		17,330		3		0			17,333

Total short-term marketable securities				38,041		23		0			38,064

Available-for-sale:
Certificates of deposit		1 to 2		1,200		1		0			1,201

Total long-term marketable securities				1,200		1		0			1,201

			$	39,241	$	24	$	0		$	39,265

December 31, 2011	Maturity in Years		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
Available-for-sale:
Government agency securities		1 or less	$	6,913	$	0	$	(1	)	$	6,912
Municipal bonds		1 or less		8,390		0		(6	)		8,384
Certificates of deposit		1 or less		4,319		2		0			4,321
Corporate debentures / bonds		1 or less		8,615		0		(3	)		8,612
Marketable equity securities		1 or less		38		0		0			38

Total short-term marketable securities				28,275		2		(10	)		28,267

Available-for-sale:
Government agency securities		1 to 2		3,734		4		0			3,738
Municipal bonds		1 to 2		5,967		2		0			5,969
Certificates of deposit		1 to 2		3,797		0		(9	)		3,788

Total long-term marketable securities				13,498		6		(9	)		13,495

			$	41,773	$	8	$	(19	)	$	41,762

The Company’s available-for-sale securities are carried on the consolidated balance sheet at fair market value with the related unrealized gains and losses included in accumulated other comprehensive (loss) income on the consolidated balance sheet, which is a separate component of stockholders’ equity. Realized gains and losses on the sale of available-for-sale marketable securities are determined using the specific-identification method.

At December 31, 2012 and 2011, the Company recorded net unrealized gains of $14,000, net of taxes, and net unrealized loss of $8,000, respectively. The Company’s net unrealized gains (loss) is the result of market conditions affecting its fixed-income debt securities, which are included in accumulated other comprehensive (loss) income on the consolidated balance sheet for the periods then ended.

As of December 31, 2011, the Company’s investment portfolio included $385,000 of marketable equity securities at original cost, with a fair value of $38,000. During the years ended December 31, 2012 and 2011, the Company recorded an other-than-temporary loss of $38,000 and $347,000, respectively, within other income (expense), net in the consolidated statement of operations.

Inventories

Inventories consist of the following (in thousands):


	December 31,
	2012		2011
Finished goods	$	26,776	$	35,211
Raw materials and components		12,240		7,068

	$	39,016	$	42,279

Property and Equipment

Property and equipment consists of the following (in thousands):


	December 31,
	2012			2011
Test equipment	$	53,368		$	52,311
Computer equipment and purchased software		12,310			13,766
Product tooling		2,232			3,768
Furniture and fixtures		2,219			2,240
Leasehold improvements		4,802			5,628

		74,931			77,713
Less—accumulated depreciation and amortization		(59,702	)		(59,217	)

	$	15,229		$	18,496

For the years ended December 31, 2012, 2011 and 2010, the Company recorded $100,000, $70,000 and $167,000, respectively, in its cost of net revenues as a result of its impairment analysis of property and equipment.

Depreciation and amortization expense relating to property and equipment was $9.4 million, $11.1 million and $10.0 million for the years ended December 31, 2012, 2011 and 2010, respectively.

Accrued Expenses

Accrued expenses consist of the following (in thousands):


	December 31,
	2012		2011
Royalties	$	4,349	$	5,861
Payroll and related expenses		7,788		8,706
Product warranty		2,329		1,525
Market development funds and price protection		2,147		1,750
Deferred rent		573		1,135
Professional fees		1,549		1,213
Deferred revenue		4,630		1,060
Other		4,435		3,794

	$	27,800	$	25,044

Accrued Warranty Obligations

Accrued warranty obligations consist of the following (in thousands):


	2012			2011
Warranty liability at beginning of period	$	1,525		$	2,279
Additions charged to operations		6,261			2,642
Deductions from liability		(5,457	)		(3,396	)

Warranty liability at end of period	$	2,329		$	1,525

- Definition

The entire disclosure for condensed financial information, including the financial position, cash flows, and the results of operations of the registrant (parent company) as of the same dates or for the same periods for which audited consolidated financial statements are being presented. Alternatively, the details of this disclosure can be reported by the specific parent company taxonomy elements, indicating the appropriate date and period contexts in an instance document.

+ References + Details

Intangible Assets

12 Months Ended

Dec. 31, 2012

Intangible Assets [Abstract]

Intangible Assets

5.	Intangible Assets

The Company’s amortizable purchased intangible assets resulting from its acquisition of Enfora are composed of (in thousands):


	Years ended December 31,
	2012										2011
	Gross		Accumulated Amortization			Impairment			Net		Gross		Accumulated Amortization			Net
Developed technologies	$	26,000	$	(5,786	)	$	(19,547	)	$	667	$	26,000	$	(4,163	)	$	21,837
Trade name		12,800		(2,147	)		(8,582	)		2,071		12,800		(1,387	)		11,413
Other		3,720		(1,923	)		(1,620	)		177		3,720		(1,609	)		2,111

Total amortizable purchased intangible assets	$	42,520	$	(9,856	)	$	(29,749	)	$	2,915	$	42,520	$	(7,159	)	$	35,361

The following table presents details of the amortization of purchased intangible assets of Enfora included in the cost of net revenues and operating costs and expenses categories (in thousands):


	Years ended December 31,
	2012		2011
Cost of net revenues	$	1,623	$	4,102
General and administrative expenses		1,074		2,220

Total amortization expense	$	2,697	$	6,322

The following table presents details of the amortization of existing amortizable purchased intangible assets of Enfora that is currently estimated to be expensed in the future (in thousands):


Fiscal year:	Amount
2013	$	896
2014		895
2015		562
2016		562

Total	$	2,915

Additionally, at December 31, 2012 and 2011, the Company had net acquired software licenses of $248,000 and $341,000, respectively, net of accumulated amortization of $2.1 million and $3.7 million, respectively. The acquired software licenses represent rights to use certain software necessary for the development and commercial sale of the Company’s products.

The Company monitors its intangible and long-lived asset balances and conducts formal tests when impairment indicators are present (see Note 6 for a discussion of the impairment indicators). During the quarter ended March 31, 2012, the Company recorded an impairment loss of $22.8 million related to a decrease in the estimated fair values of the purchased intangible assets fair values. At September 30, 2012, the Company recorded a further preliminary impairment loss of $7.3 million related to the continued decrease in the estimated fair values of the purchased intangible assets. During the fourth quarter of 2012, the Company completed the impairment analysis and reduced the third quarter impairment by $300,000. The Company recorded $133,000 of impairment loss related to acquired software licenses during the year ended December 31, 2011. There was no impairment loss recorded for the year ended December 31, 2010.

Amortization expense relating to acquired software licenses was $196,000, $422,000 and $744,000 for the years ended December 31, 2012, 2011 and 2010, respectively. Amortization expense related to licenses obtained for research purposes is recorded within research and development expense in the consolidated statements of operations. Amortization expense related to licenses obtained for commercial products is recorded in cost of net revenues in the consolidated statements of operations.

At December 31, 2012, the weighted average remaining useful life of the Company’s long-lived intangible assets including acquired software licenses is 3.0 years.

Goodwill

12 Months Ended

Dec. 31, 2012

Goodwill [Abstract]

Goodwill

6.	Goodwill

The changes in the carrying amount of goodwill for the years ended December 31, 2012 and 2011 are as follows (in thousands):


	M2M Products and Solutions
	2012			2011
Balance at January 1,	$	19,772		$	22,258
Goodwill acquisition price adjustments, net of tax		0			791
Goodwill impairment during the period		(19,772	)		(3,277	)

Balance at December 31,	$	0		$	19,772

During the third quarter of 2012, the first quarter of 2012 and the third quarter of 2011, based on actual operating results, and reductions in management’s then estimates of forecasted operating results of the M2M Products and Solutions reporting unit principally due to updated views of competitive pressures impacting average selling prices, customer product and technology selections, and the loss of certain customers, the Company determined there were sufficient indicators of impairment present to require an interim impairment analysis during the respective impacted quarters.

Based upon fair value tests performed with the assistance of third party independent appraisals, during the third quarter of 2012, the first quarter of 2012 and the third quarter of 2011, the Company recorded pre-tax goodwill impairment charges of $13.2 million, $6.5 million and $3.3 million, respectively.

The Company used the third party independent appraisal report from the third quarter of 2012 to assist it with its annual impairment analysis.

Earnings Per Share

12 Months Ended

Dec. 31, 2012

Earnings Per Share [Abstract]

Earnings Per Share

7.	Earnings Per Share

Basic earnings per share (“EPS”) excludes dilution and is computed by dividing net income (loss) attributable to common stockholders by the weighted-average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock using the treasury stock method. Potentially dilutive securities (consisting of options and restricted stock units (“RSUs”) and employee stock purchase plan (“ESPP”) withholdings using the treasury stock method) are excluded from the diluted EPS computation in loss periods and when the applicable exercise price is greater than the market price on the period end date as their effect would be anti-dilutive.

For the years ended December 31, 2012, 2011 and 2010, basic and diluted weighted-average common shares outstanding were 32,852,000, 32,043,000 and 31,494,000, respectively.

Weighted average options, restricted stock units and ESPP shares to acquire a total of 5,793,000 shares, 4,657,000 shares and 3,675,000 shares of common stock for the years ended December 31, 2012, 2011 and 2010, respectively, were outstanding but not included in the computation of diluted earnings per share as their effect was anti-dilutive.

Stockholders' Equity

12 Months Ended

Dec. 31, 2012

Stockholders' Equity [Abstract]

Stockholders' Equity

8.	Stockholders’ Equity

Preferred Stock

The Company has a total of 2,000,000 shares of Series A and Series B preferred stock authorized for issuance at a par value of $0.001 per share. No preferred shares are currently issued or outstanding.

Common Shares Reserved for Future Issuance

The Company has reserved shares of common stock for possible future issuance as of December 31, 2012 and 2011 as follows (in thousands):


	Shares
	2012		2011
Stock options outstanding under the 2009 Omnibus Incentive Compensation Plan and previous plans		4,282		4,481
Restricted stock units outstanding		1,662		1,289
Future grants of awards under the 2009 Omnibus Incentive Compensation Plan		702		1,493
Shares available under the Employee Stock Purchase Plan		0		1,087

Total shares of common stock reserved for issuance		6,646		8,350

- Definition

The entire disclosure for shareholders' equity, comprised of portions attributable to the parent entity and noncontrolling interest, if any, including other comprehensive income (as applicable). Including, but not limited to: (1) balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings; (2) accumulated balance for each classification of other comprehensive income and total amount of comprehensive income; (3) amount and nature of changes in separate accounts, including the number of shares authorized and outstanding, number of shares issued upon exercise and conversion, and for other comprehensive income, the adjustments for reclassifications to net income; (4) rights and privileges of each class of stock authorized; (5) basis of treasury stock, if other than cost, and amounts paid and accounting treatment for treasury stock purchased significantly in excess of market; (6) dividends paid or payable per share and in the aggregate for each class of stock for each period presented; (7) dividend restrictions and accumulated preferred dividends in arrears (in aggregate and per share amount); (8) retained earnings appropriations or restrictions, such as dividend restrictions; (9) impact of change in accounting principle, initial adoption of new accounting principle and correction of an error in previously issued financial statements; (10) shares held in trust for Employee Stock Ownership Plan (ESOP); (11) deferred compensation related to issuance of capital stock; (12) note received for issuance of stock; (13) unamortized discount on shares; (14) description, terms, and number of warrants or rights outstanding; (15) shares under subscription and subscription receivables, effective date of new retained earnings after quasi-reorganization and deficit eliminated by quasi-reorganization and, for a period of at least ten years after the effective date, the point in time from which the new retained dates; and (16) retroactive effective of subsequent change in capital structure.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(d),(e))
-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21484-112644

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 310
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SAB TOPIC 4.E)
-URI http://asc.fasb.org/extlink&oid=6228006&loc=d3e74512-122707

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21488-112644

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.29-31)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section S99
-Paragraph 4
-Subparagraph (SAB TOPIC 4.C)
-URI http://asc.fasb.org/extlink&oid=6959260&loc=d3e187143-122770

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21506-112644

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.3-04)
-URI http://asc.fasb.org/extlink&oid=6959260&loc=d3e187085-122770

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 30
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6405834&loc=d3e23285-112656

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Preferred Stock
-URI http://asc.fasb.org/extlink&oid=6521494

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21463-112644

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21564-112644

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 43
-Section B
-Paragraph 7, 11A
-Chapter 1
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Principles Board Opinion (APB)
-Number 12
-Paragraph 10
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 16: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 5
-Paragraph 15
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 17: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Paragraph d
-Article 4

Reference 18: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 02
-Paragraph 29, 30, 31
-Article 5

Reference 19: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 4
-Section E

Reference 20: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Article 4

Reference 21: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 4
-Section C

Reference 22: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 129
-Paragraph 2, 3, 4, 5, 6, 7, 8
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 23: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 04
-Article 3

+ Details

Stock Incentive and Employee Stock Purchase Plans

12 Months Ended

Dec. 31, 2012

Stock Incentive and Employee Stock Purchase Plans [Abstract]

Stock Incentive and Employee Stock Purchase Plans

9.	Stock Incentive and Employee Stock Purchase Plans

During the year ended December 31, 2012, the Company granted awards under the 2009 Omnibus Incentive Compensation Plan (the “2009 Plan”). The Compensation Committee of the Board of Directors administers the plan.

Under the 2009 Plan, a maximum of 2.5 million shares of common stock may be issued upon the exercise of stock options, in the form of restricted stock, or in settlement of restricted stock units or other awards, including awards with alternative vesting schedules such as performance-based criteria.

For the years ended December 31, 2012, 2011 and 2010, the following table presents total share-based compensation expense in each functional line item on our consolidated statements of operations (in thousands):


	Year Ended December 31,
	2012		2011		2010
Cost of revenues	$	747	$	579	$	645
Research and development		3,042		2,088		2,368
Sales and marketing		1,403		1,254		1,164
General and administrative		2,308		2,062		2,294

Totals	$	7,500	$	5,983	$	6,471

The per share fair values of stock options granted under the 2009 Plan and rights granted under the ESPP have been estimated with the following assumptions.


	Employee Stock Options									Employee Stock Purchase Rights
	2012			2011			2010			2012			2011			2010
Expected dividend yield:		0	%		0	%		0	%		0	%		0	%		0	%
Risk-free interest rate:		0.9	%		1.2	%		2.2	%		0.2	%		0.2	%		0.5	%
Volatility:		63	%		69	%		53	%		68	%		63	%		60	%
Expected term (in years):		6.0			6.0			5.8			1.3			1.1			1.3

Stock Options

The Compensation Committee of the Board of Directors determines eligibility, vesting schedules and exercise prices for options granted. Options granted under the 2009 Plan and previous plans generally have a term of ten years, and in the case of new hires, generally vest and become exercisable at the rate of 25% after one year and ratably on a monthly basis over a period of 36 months thereafter. Subsequent option grants to existing employees generally vest and become exercisable over a period of 36 months measured from the date of grant.

A summary of stock option activity for the year ended December 31, 2012 is presented below (dollars and shares in thousands, except per share data):


	Stock Options Outstanding			Weighted Average Exercise Price Per Option		Weighted Average Remaining Contractual Term (Years)		Aggregate Intrinsic Value
Options outstanding December 31, 2011		4,481		$	10.58
Granted		176		$	3.44
Exercised		0		$	0.00
Cancelled		(375	)	$	10.99

Balance December 31, 2012		4,282		$	10.25		4.27	$	0

Options Exercisable, December 31, 2012		3,839		$	10.80		3.90	$	0

The total intrinsic value of options exercised to purchase common stock during the years ended December 31, 2012, 2011 and 2010 was approximately $0, $28,000 and $364,000, respectively. As of December 31, 2012, total unrecognized share-based compensation cost related to unvested stock options was $1.4 million, which is expected to be recognized over a weighted average period of approximately 1.6 years. The total fair value of option awards recognized as expense during the years ended December 31, 2012, 2011 and 2010 was approximately $1.7 million, $2.7 million and $3.5 million, respectively. The weighted average fair value of option awards granted during years ended December 31, 2012, 2011 and 2010 was $1.97, $3.40 and $3.62, respectively.

Restricted Stock Units

The Company may issue restricted stock units (“RSUs”) that, upon satisfaction of vesting conditions, allow for employees and non-employee directors to receive common stock. Issuances of such awards reduce common stock available under the 2009 Plan for stock incentive awards. The Company measures compensation cost associated with grants of RSUs at fair value, which is generally the closing price of the Company’s stock on the date of grant.

During 2012, the Compensation Committee of the Board of Directors, pursuant to the 2009 Plan, awarded employees a total of 1,015,638 RSUs at fair values ranging from $1.28 per share to $3.58 per share. Generally, one-third of the shares underlying each grant become issuable on the anniversary of each grant date, assuming continued employment or to the Company through such date. Based on the fair value of the Company’s common stock price at the grant dates, the Company estimated the aggregate fair value of these awards at approximately $3.4 million. The estimated fair value of these awards is being amortized to compensation expense for each grant on a straight-line basis over the estimated service period.

During 2011, the Compensation Committee of the Board of Directors, pursuant to the 2009 Plan, awarded employees a total of 903,214 RSUs at fair values ranging from $3.06 per share to $9.71 per share. Generally, one-third of the shares underlying each grant become issuable on the anniversary of each grant date, assuming continued employment or to the Company through such date. Based on the fair value of the Company’s common stock price at the grant dates, the Company estimated the aggregate fair value of these awards at approximately $4.9 million. The estimated fair value of these awards is being amortized to compensation expense for each grant on a straight-line basis over the estimated service period.

During 2010, the Compensation Committee of the Board of Directors, pursuant to the 2009 Plan, awarded employees a total of 620,236 RSUs, including 235,900 RSUs to Enfora employees in connection with the acquisition (the “Enfora RSUs”), at fair values ranging from $6.95 per share to $9.76 per share. Generally, one-third of the shares underlying each grant become issuable on the anniversary of each grant date, assuming continued employment or to the Company through such date. However, one-fourth of the shares underlying each grant of the Enfora RSUs become issuable on the anniversary of each grant date, assuming continued employment or to the Company through such date. Based on the fair value of the Company’s common stock price at the grant dates, the Company estimated the aggregate fair value of these awards at approximately $5.0 million. The estimated fair value of these awards is being amortized to compensation expense for each grant on a straight-line basis over the estimated service period.

A summary of restricted stock unit activity for the year ended December 31, 2012 is presented below (shares in thousands):


	Shares
Non-vested at December 31, 2011		1,289
Granted		1,016
Vested		(461	)
Forfeited		(182	)

Non-vested at December 31, 2012		1,662

As of December 31, 2012, there was $6.2 million of unrecognized compensation expense related to non-vested RSUs. That expense is expected to be recognized over a weighted average period of 1.6 years. The total fair value of RSUs recognized as expense during the years ended December 31, 2012, 2011 and 2010 was $3.4 million, $2.6 million and $1.7 million, respectively.

2000 Employee Stock Purchase Plan

The Company’s 2000 Employee Stock Purchase Plan (the “ESPP”) permits eligible employees of the Company to purchase newly issued shares of common stock, at a price equal to 85% of the lower of the fair market value on (i) the first day of the offering period or (ii) the last day of each six-month purchase period, through payroll deductions of up to 10% of their annual cash compensation.

During the years ended December 31, 2012, 2011 and 2010, the Company issued 1,086,837 shares, 163,142 shares and 514,540 shares, respectively, under the ESPP. During the years ended December 31, 2012, 2011 and 2010, the Company received $1.6 million, $470,000 and $1.7 million, respectively, in cash through employee withholdings.

On November 4, 2010, the Company announced the termination of the ESPP as of November 15, 2010 due to a lack of available shares. The cancellation of the awards was accounted for as a repurchase for no consideration. The previously unrecognized compensation cost as of November 15, 2010 of $316,000 was fully expensed in the fourth quarter of 2010. The Company reinstated the ESPP program effective as of September 8, 2011. The reinstated ESPP authorized the Company to issue 1,250,111 shares of common stock for purchase by eligible employees.

On October 22, 2012, the Company announced the termination of the ESPP as of November 15, 2012 due to a lack of available shares. The cancellation of the awards was accounted for as a repurchase for no consideration. The previously unrecognized compensation cost as of November 15, 2012 of $1.0 million was fully expensed in the fourth quarter of 2012.

The total fair value of ESPP awards recognized as expense during the years ended December 31, 2012, 2011 and 2010 was $1.4 million, $707,000 and $994,000, respectively.

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 50
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6406099&loc=d3e25284-112666

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 718
-SubTopic 40
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6418621&loc=d3e17540-113929

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 718
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5070-113901

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 718
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5047-113901

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 718
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5444-113901

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 14

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 123R
-Paragraph 64, 65, A240
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Statement of Position (SOP)
-Number 93-6
-Paragraph 53
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Income Taxes

12 Months Ended

Dec. 31, 2012

Income Taxes [Abstract]

Income Taxes

10.

Income Taxes

Total income taxes for the years ended December 31, 2012, 2011 and 2010 were allocated as follows (in thousands):


	Year Ended December 31,
	2012		2011			2010
To income	$	611	$	(9,503	)	$	7,893
To stockholders’ equity		10		240			277

Total income taxes	$	621	$	(9,263	)	$	8,170

Income (loss) before taxes for the years ended December 31, 2012, 2011 and 2010 is comprised of the following (in thousands):


	Year Ended December 31,
	2012			2011			2010
Domestic	$	(88,945	)	$	(36,091	)	$	(27,091	)
Foreign		290			1,696			1,534

Income (loss) before taxes	$	(88,655	)	$	(34,395	)	$	(25,557	)

The provision (benefit) for income taxes for the years ended December 31, 2012, 2011 and 2010 is comprised of the following (in thousands):


	Year Ended December 31,
	2012		2011			2010
Current:
Federal	$	0	$	(10,786	)	$	(3,602	)
State		29		0			11
Foreign		74		84			43

Total Current		103		(10,702	)		(3,548	)

Deferred:
Federal		14		(114	)		9,882
State		0		0			789
Foreign		494		1,313			770

Total Deferred		508		1,199			11,441

Provision (benefit) for income taxes	$	611	$	(9,503	)	$	7,893

The Company’s deferred tax assets consist of the following (in thousands):


	December 31,
	2012			2011
Deferred tax assets:
Accrued expenses	$	6,271		$	4,941
Inventory obsolescence provision		1,992			1,647
Depreciation and amortization		6,680			4,626
Deferred rent		892			409
Net operating loss and tax credit carryforwards		42,994			32,569
Stock-based compensation		6,069			5,662
Unrecognized tax benefits		613			439

Deferred tax assets		65,511			50,293
Deferred tax liabilities:
Amortization of acquired intangibles		(1,016	)		(12,777	)

Net deferred tax assets		64,495			37,516
Valuation allowance		(63,881	)		(36,395	)

Net deferred tax assets	$	614		$	1,121

The Company recognizes federal, state and foreign current tax liabilities or assets based on its estimate of taxes payable to or refundable by tax authorities in the current fiscal year. The Company also recognizes federal, state and foreign deferred tax liabilities or assets based on the Company’s estimate of future tax effects attributable to temporary differences and carry forwards. The Company records a valuation allowance to reduce any deferred tax assets by the amount of any tax benefits that, based on available evidence and judgment, are not expected to be realized.

The Company assesses whether a valuation allowance should be recorded against its deferred tax assets based on the consideration of all available evidence, using a “more likely than not” realization standard. The four sources of taxable income that must be considered in determining whether deferred tax assets will be realized are: (1) future reversals of existing taxable temporary differences (i.e., offset of gross deferred tax assets against gross deferred tax liabilities); (2) taxable income in prior carryback years, if carryback is permitted under the applicable tax law; (3) tax planning strategies; and (4) future taxable income exclusive of reversing temporary differences and carryforwards.

After a review of the four sources of taxable income described above and after being in a three year cumulative loss position at the end of 2010, the Company recognized a full valuation allowance of $14.8 million related to its U.S.-based deferred taxes created prior to 2010, and recognized a full valuation allowance of $3.1 million related to its U.S.-based deferred tax assets created in 2010.

During 2011 and 2012, the Company recognized full valuation allowances of $14.6 million and $27.5 million, related to its U.S.-based and Canadian deferred tax assets created in those respective years. As a result, no net income tax benefits resulted in the Company’s statements for operations from the operating losses created during those years.

At December 31, 2012, the deferred tax asset valuation allowance consisted of $58.9 million relating to the Company’s domestic deferred tax assets and $5.0 million related to the Company’s Canadian deferred tax assets. At December 31, 2011, the valuation allowance consisted of $32.1 million relating to the Company’s domestic deferred tax assets and $4.3 million related to the Company’s Canadian deferred tax assets.

The net unreserved portion of the Company’s remaining deferred tax assets of $614,000 at December 31, 2012 primarily related to research and development tax credits associated with the Company’s Canadian subsidiary.

The provision (benefit) for income taxes reconciles to the amount computed by applying the statutory federal income tax rate of 34% in 2012, 2011 and 2010 to income before provision for income taxes as follows (in thousands):


	Year Ended December 31,
	2012			2011			2010
Federal tax benefit, at statutory rate	$	(30,142	)	$	(11,694	)	$	(8,690	)
State benefit, net of federal benefit		(757	)		(733	)		(509	)
Change in valuation allowance—current year		27,486			14,612			7,888
Change in valuation allowance—prior year deferreds		0			0			14,840
Tax expense/(benefit) from business combination		0			909			(4,838	)
Research and development credits		(856	)		(1,731	)		(2,044	)
Share-based compensation		1,616			526			917
Merger fees		0			0			674
Uncertain tax positions		(46	)		(11,809	)		322
Goodwill impairment		3,700			596			0
Other		(390	)		(179	)		(667	)

	$	611		$	(9,503	)	$	7,893

At December 31, 2012, the Company has U.S. federal net operating loss carryforwards of approximately $91.2 million. Federal net operating loss carryforwards expire at various dates from 2026 through 2032. The Company has California net operating loss carryforwards of approximately $26.4 million, which expire at various dates from 2014 through 2033. The Company has California research and development tax credit carryforwards of approximately $6.1 million. The California tax credits have no expiration date. The Company also has federal research and development tax credit carryforwards of approximately $3.0 million. The federal tax credits expire at various dates from 2027 through 2031.

It is the Company’s intention to reinvest undistributed earnings of its foreign subsidiaries and thereby indefinitely postpone their remittance. Accordingly, no provision has been made for foreign withholding taxes on United States income taxes which may become payable if undistributed earnings of the foreign subsidiary were paid as dividends to the Company.

The Company follows the accounting guidance related to financial statement recognition, measurement and disclosure of uncertain tax positions. The Company recognizes the impact of an uncertain income tax position on an income tax return at the largest amount that is more-likely-than-not to be sustained upon audit by the relevant taxing authority. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. During the years ended December 31, 2012 and 2011, the Company recognized approximately $50,000 and $9.5 million, respectively, of income tax benefit plus $5,000 and $2.3 million, respectively, of associated interest due to expiration of the applicable statutes of limitations applicable to certain tax years. As of December 31, 2012 and 2011, the total liability for unrecognized tax benefits was $0.4 million and $0.4 million, respectively, and is included in other long-term liabilities.

A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows (in thousands):


	Amount
Unrecognized tax benefits balance at December 31, 2009	$	41,135
Increases related to current and prior year tax positions		251
Settlements and lapses in statutes of limitations		0

Unrecognized tax benefits balance at December 31, 2010		41,386
Increases related to current and prior year tax positions		899
Settlements and lapses in statutes of limitations		(9,490	)

Unrecognized tax benefits balance at December 31, 2011		32,795
Increases related to current and prior year tax positions		475
Settlements and lapses in statutes of limitations		(50	)

Unrecognized tax benefits balance at December 31, 2012	$	33,220

Included in the balances of unrecognized tax benefits at December 31, 2012 are $0.1 million of tax benefits that, if recognized, would affect the effective tax rate.

The Company recognizes interest and penalties related to unrecognized tax benefits in the provision for income taxes. As of December 31, 2012 and 2011, the Company recorded approximately $0.2 million and $0.2 million, respectively, of accrued interest related to uncertain tax positions.

In the fourth quarter of 2013, the Company expects to release $71,000 of its liability for unrecognized tax benefits due to the expiration of the statute of limitations applicable to the 2008 taxable year.

The Company and its subsidiaries file U.S., state, and foreign income tax returns in jurisdictions with various statutes of limitations. The California Franchise Tax Board is currently conducting an examination of the Company’s California income tax returns for 2006 and 2007. The Company is also subject to various federal income tax examinations for the 2003 through 2011 calendar years due to the availability of net operating loss carryforwards. The Company believes appropriate provisions for all outstanding issues have been made for all jurisdictions and all open years. However, because audit outcomes and the timing of audit settlements are subject to significant uncertainty, the Company’s current estimate of the total amounts of unrecognized tax benefits could increase or decrease for all open years.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

+ Details

Commitments and Contingencies

12 Months Ended

Dec. 31, 2012

Commitments and Contingencies [Abstract]

Commitments and Contingencies

11.

Commitments and Contingencies

Capital Leases

The Company did not purchase equipment under capital leases during the year ended December 31, 2012 or 2011. At December 31, 2012 and 2011, assets held under capital leases had a net book value of $0 and $52,000, respectively, net of accumulated amortization of $510,000 and $458,000, respectively. The present value of the net minimum lease payments as of December 31, 2012 is $0.

Operating Leases

The Company leases its office space and certain equipment under non-cancelable operating leases with various terms through 2017. The minimum annual rent on the Company’s office space is subject to increases based on stated rental adjustment terms, property taxes and operating costs and contains rent concessions. For financial reporting purposes, rent expense is recognized on a straight-line basis over the term of the lease. Accordingly, rent expense recognized in excess of rent paid is reflected as deferred rent. Rental expense under operating leases in 2012, 2011 and 2010 was $4.5 million, $4.7 million and $3.5 million, respectively. The Company’s office space lease contains incentives in the form of reimbursement from the landlord for a portion of the costs of leasehold improvements incurred by the Company which are recorded to rent expense on a straight-line basis over the term of the lease.

The minimum future lease payments under non-cancelable operating leases as of December 31, 2012 are as follows (in thousands):


For the Period Ending December 31,	Amount
2013	$	3,613
2014		3,664
2015		2,930
2016		2,899
2017		356

Total minimum lease payments	$	13,462

Committed Purchase Orders

The Company has entered into purchase commitments totaling approximately $103.3 million with certain contract manufacturers under which the Company has committed to buy a minimum amount of designated products between January 2013 and December 2013. In certain of these agreements, the Company may be required to acquire and pay for such products up to the prescribed minimum or forecasted purchases.

Management Retention Agreements

During 2004 and 2005, the Company entered into management retention agreements with certain of the Company’s executive officers. The agreements entitle those employees to enumerated severance benefits if, within the one year period immediately following a change of control (as defined in the agreement) or at the direction of an acquirer in anticipation of such an event, the Company terminates the employee’s employment other than for cause or disability or the employee terminates his or her employment for good reason. These severance benefits would include a lump sum payment of three times the sum of the employee’s annual base salary then in effect and the applicable targeted annual bonus, continued employee benefits, accelerated vesting of the employee’s stock incentive awards, a tax equalization payment to eliminate the effects of any applicable excise tax and financial planning and outplacement services.

In November 2007, the Company entered into an employment agreement with the Company’s Chief Executive Officer, with an initial term of three years. Under the agreement, Mr. Leparulo will continue to serve as Chairman of the Board and as the Company’s most senior officer. The agreement entitles Mr. Leparulo to enumerated severance benefits under various circumstances if Mr. Leparulo’s employment with the Company is terminated. These enumerated severance benefits vary according to whether (a) Mr. Leparulo’s employment with the Company is terminated within the one year period immediately following a change in control (as defined in the agreement) or at the direction of an acquirer in anticipation of such an event; (b) the Company terminates his employment other than for cause or he terminates his employment for good reason; or (c) the Company terminates his employment for cause or he terminates his employment for other than good reason. Depending on the cause of the employment termination, the enumerated severance benefits include a lump sum payment ranging from one to three years annual base salary then in effect, an additional lump sum bonus payment representing certain multiples of his targeted bonus, and varying periods of ongoing employee benefits including health care and outplacement services.

During 2010, the Company entered into management retention agreements with certain of the Company’s executive officers. The agreements entitle those employees to enumerated severance benefits if, within the two year period immediately following a change of control (as defined in the agreement), the Company terminates the employee’s employment other than for cause or disability or the employee terminates his or her employment for good reason. These severance benefits would include a lump sum payment of three times the sum of the employee’s annual base salary then in effect and the applicable targeted annual bonus, continued employee benefits, accelerated vesting of the employee’s stock incentive awards and financial planning and outplacement services. The agreements do not provide for any additional payments by the Company for excise or other taxes.

Legal Matters and Indemnification

The Company is, from time to time, party to various legal proceedings arising in the ordinary course of business. For example, the Company is currently named as a defendant or co-defendant in a number of patent infringement lawsuits in the U.S. and is indirectly participating in other U.S. patent infringement actions pursuant to its contractual indemnification obligations to certain customers. Based on evaluation of these matters and discussions with Company’s intellectual property litigation counsel, the Company believes that liabilities arising from or sums paid in settlement of these existing matters would not have a material adverse effect on its consolidated results of operations or financial condition.

On September 15, 2008 and September 18, 2008, two putative securities class action lawsuits were filed in the United States District Court for the Southern District of California on behalf of persons who allegedly purchased our stock between February 5, 2007 and August 19, 2008. On December 11, 2008, these lawsuits were consolidated into a single action entitled Backe v. Novatel Wireless, Inc., et al., Case No. 08-CV-01689-H (RBB) (Consolidated with Case No. 08-CV-01714-H (RBB)) (U.S.D.C., S.D. Cal.). In May 2010, the district court re-captioned the case In re Novatel Wireless Securities Litigation. The plaintiffs filed the consolidated complaint on behalf of persons who allegedly purchased our stock between February 27, 2007 and November 10, 2008. The consolidated complaint names the Company and certain of our current and former officers as defendants. The consolidated complaint alleges generally that we issued materially false and misleading statements during the relevant time period regarding the strength of our products and market share, our financial results and our internal controls. The plaintiffs are seeking an unspecified amount of damages and costs. The court has denied defendants’ motions to dismiss. In May 2010, the court entered an order granting the plaintiffs’ motion for class certification and certified a class of purchasers of Company common stock between February 27, 2007 and September 15, 2008. On February 14, 2011, following extensive discovery, the Company filed a motion for summary judgment on all of plaintiffs’ claims. A trial date had been set for May 10, 2011. On March 15, 2011, the case was reassigned to a new district judge, the Honorable Anthony J. Battaglia. Following the reassignment, the court vacated the trial date pending the court’s consideration of dispositive motions. Oral argument on the motion for summary judgment was heard by the court on June 17, 2011. On November 23, 2011, the court issued an order granting in part and denying in part the motion for summary judgment. On July 9, 2012, the court vacated the pretrial conference date. On December 14, 2012, the court issued an order denying defendants’ motion to exclude the testimony of plaintiffs’ loss causation expert. The court set a pretrial conference for March 8, 2013 and a trial date of June 3, 2013. On February 7, 2013, the court reconsidered its December 14, 2012 order and granted defendants’ motion to exclude plaintiffs’ expert on loss causation. The court, however, gave plaintiffs the opportunity to provide a new report from the expert seeking to cure the deficiencies in the expert’s testimony. The court provided a schedule for the cure process and ordered plaintiffs to bear the burden of defendants’ expenses incurred in this process. The court also reset the pretrial conference for August 22, 2013 and a trial date of November 18, 2013. The Company intends to defend this litigation vigorously. At this time, there can be no assurance as to the ultimate outcome of this litigation. We have not recorded any significant accruals for contingent liabilities associated with this matter based on our belief that a liability, while possible, is not probable. Further, any possible range of loss cannot be estimated at this time.

In the normal course of business, the Company periodically enters into agreements that require the Company to indemnify and defend its customers for, among other things, claims alleging that the Company’s products infringe third-party patents or other intellectual property rights. The Company’s maximum exposure under these indemnification provisions cannot be estimated but the Company does not believe that there are any matters individually or collectively that would have a material adverse effect on its financial condition, results of operation or cash flows.

The Company has accrued $645,000 as of December 31, 2012 related to our best estimate of potential settlements on legal and indemnification matters for which we have deemed the outcome to be probable.

Credit Facility

The Company has a credit facility with a bank to allow margin borrowings based on the Company’s investments in cash equivalents and marketable securities held with the bank. This facility is collateralized by the Company’s cash equivalents and marketable securities held with the bank. Borrowings under the facility incur an interest rate at the bank’s base rate plus 1%. This margin account facility provides the Company with the flexibility to access cash for short periods of time and avoids the need to sell marketable securities for these short-term requirements. At December 31, 2012, the Company had approximately $20.1 million in cash equivalents and marketable securities held at this bank, and the Company’s borrowing limit at December 31, 2012 under the credit facility was $6.8 million. Any monies borrowed and interest incurred are payable on demand, and there is no express expiration date to the credit facility. During three months ended September 30, 2011, the Company borrowed $12.0 million and repaid the entire amount during the same period. During the three months ended September 30, 2012, the Company borrowed $5.0 million and repaid the entire amount during the same period. During three months ended December 31, 2012, the Company borrowed $9.0 million against the facility and repaid the entire amount during the same period. As of December 31, 2012, the Company had no outstanding borrowings under the credit facility.

- Definition

The entire disclosure for commitments and contingencies.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 20
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6449706&loc=d3e16207-108621

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 460
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=6398077&loc=d3e12565-110249

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 450
-SubTopic 20
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6952336&loc=d3e14435-108349

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.25)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 440
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6394976&loc=d3e25287-109308

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Interpretation (FIN)
-Number 14
-Paragraph 3
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 5
-Paragraph 9, 10, 11, 12
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Segment Information and Concentrations of Risk

12 Months Ended

Dec. 31, 2012

Segment Information and Concentrations of Risk [Abstract]

Segment Information and Concentrations of Risk

12.

Segment Information and Concentrations of Risk

Segment Information

The Company operates in the wireless broadband technology industry and senior management makes decisions about allocating resources based on the following reportable segments:

Mobile Computing Products segment—includes our MiFi products, USB and PC-card modems and Embedded Modules that enable data transmission and services via cellular wireless networks. All products within the segment represent a single product family.

M2M Products and Solutions segment was established as a result of our acquisition of Enfora in 2010. It includes our intelligent asset-management solutions utilizing cellular wireless technology, and M2M communication devices, and embedded modules that enable M2M data transmission and services via cellular wireless networks.

Segment net revenues and segment operating income (loss) represent the primary financial measures used by senior management to assess performance and include the net revenues, cost of net revenues, sales and other operating expenses for which management is held accountable. Segment operating expenses include sales and marketing, research and development, general and administration, and amortization expenses that are directly related to individual segments. Segment earnings (loss) also includes acquisition-related costs, purchase price amortization, impairment charges, restructuring and integration costs.

The table below presents net revenues from external customers, operating income (loss) and identifiable assets for our reportable segments (in thousands):


	Year Ended December 31,
	2012			2011			2010
Net revenues:
Mobile Computing Products	$	312,508		$	358,106		$	332,464
M2M Products and Solutions		31,780			44,756			6,478

Total	$	344,288		$	402,862		$	338,942

Operating income (loss) :
Mobile Computing Products	$	(22,924	)	$	(13,764	)	$	(23,027	)
M2M Products and Solutions		(65,819	)		(19,963	)		(1,975	)

Total	$	(88,743	)	$	(33,727	)	$	(25,002	)


	Year Ended December 31,
	2012		2011
Identifiable assets:
Mobile Computing Products	$	141,045	$	181,180
M2M Products and Solutions		20,486		67,999

Total	$	161,531	$	249,179

The Company has operations in the United States, Canada, Europe, Latin America and Asia. The following table details the geographic concentration of the Company’s assets in the United States, Canada, Europe, Latin America and Asia (in thousands):


	Year Ended December 31,
	2012		2011
United States	$	157,661	$	243,030
Canada		2,836		4,764
Europe, Latin America and Asia		1,034		1,385

	$	161,531	$	249,179

The following table details the Company’s concentration of net revenues by geographic region based on shipping destination:


	Year Ended December 31,
	2012			2011			2010
United States and Canada		93.1	%		93.5	%		95.0	%
Latin America		2.4			0.0			0.0
Europe, Middle East and Africa		4.1			4.0			4.7
Asia and Australia		0.4			2.5			0.3

		100.0	%		100.0	%		100.0	%

Concentrations of Risk

Substantially all of the Company’s net revenues are derived from sales of wireless access products. Any significant decline in market acceptance of the Company’s products or in the financial condition of the Company’s customers would have an adverse effect on the Company’s results of operations and financial condition.

A significant portion of the Company’s net revenues come from a small number of customers. One customer accounted for 57.5% of 2012 net revenues. Two customers accounted for 50.8% and 13.1% of 2011 net revenues. Two customers accounted for 55.7% and 21.8% of 2010 net revenues. All significant customers are included in the Company’s Mobile Computing Products segment.

A significant portion of the Company’s accounts receivables comes from a small number of customers. At December 31, 2012, the Company had three customers who accounted for 20.7%, 18.5% and 11.5% of total accounts receivable. At December 31, 2011, the Company had two customers who accounted for 46.5% and 19.8% of total accounts receivable.

The Company outsources its manufacturing to several third-party manufacturers. If they were to experience delays, disruptions, capacity constraints or quality control problems in its manufacturing operations, product shipments to the Company’s customers could be delayed or its customers could consequently elect to cancel the underlying order, which would negatively impact the Company’s net revenues and results of operations.

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 34
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8981-108599

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
-Topic 280
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Reference 4: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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-Name Accounting Standards Codification
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Reference 13: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 131
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Retirement Savings Plan

12 Months Ended

Dec. 31, 2012

Retirement Savings Plan [Abstract]

Retirement Savings Plan

13.

Retirement Savings Plan

The Company has a defined contribution 401(K) retirement savings plan (the “Plan”). Substantially all of the Company’s U.S. employees are eligible to participate in the Plan after meeting certain minimum age and service requirements. Employees may make discretionary contributions to the Plan subject to Internal Revenue Service limitations. Employer matching contributions under the plan amounted to approximately $1.2 million, $1.1 million and $1.0 million for the years ended December 31, 2012, 2011 and 2010, respectively. Employer matching contributions vest over a two-year period. The Company has a registered retirement savings plan for its Canadian employees. Substantially all of the Company’s Canadian employees are eligible to participate in this plan. Employees make discretionary contributions to the plan subject to local limitations. Employer contributions to the Canadian plan amounted to approximately $232,000, $280,000 and $236,000 for the years ended December 31, 2012, 2011 and 2010, respectively.

- Definition

The entire disclosure for pension and other postretirement benefits.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-URI http://asc.fasb.org/topic&trid=2235017

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Implementation Guide (Q and A)
-Number FAS88
-Paragraph 63
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
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Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
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Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Emerging Issues Task Force (EITF)
-Number 03-2
-Paragraph 8
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 87
-Paragraph 264
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 5
-Subparagraph q
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 5, 6, 7, 8
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 158
-Paragraph 7, 21, 22
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Staff Position (FSP)
-Number FAS106-2
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Principles Board Opinion (APB)
-Number 30
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+ Details

Quarterly Financial Information (Unaudited)

12 Months Ended

Dec. 31, 2012

Quarterly Financial Information (Unaudited) [Abstract]

Quarterly Financial Information (Unaudited)

14.

Quarterly Financial Information (Unaudited)

The following is a summary of unaudited quarterly results of operations for the years ended December 31, 2012 and 2011.


	Quarter
	First			Second			Third			Fourth
	(in thousands, except per share amounts)
2012:
Net revenues	$	100,150		$	102,446		$	71,017		$	70,675
Gross profit		20,988			23,251			14,646			13,558
Net loss applicable to common stockholders		(37,921	)		(4,500	)		(31,933	)		(14,912	)
Basic and diluted net loss per common share		(1.17	)		(0.14	)		(0.97	)		(0.44	)

2011:
Net revenues	$	61,784		$	118,021		$	113,263		$	109,794
Gross profit		5,994			26,182			26,690			25,726
Net loss applicable to common stockholders		(22,088	)		(3,898	)		4,498			(3,404	)
Basic and diluted net loss per common share		(0.69	)		(0.12	)		0.14			(0.11	)

- Definition

The entire disclosure for the quarterly financial data in the annual financial statements. The disclosure may include a tabular presentation of financial information for each fiscal quarter for the current and previous year, including revenues, gross profit, income or loss before extraordinary items and earnings per share data. It also includes an indication if the information in the note is unaudited, comments on the aggregate effect of year-end adjustments, and an explanation of matters or transactions that affect comparability or are pertinent to an understanding of the information furnished.

+ References + Details

Schedule II - Valuation and Qualifying Accounts

12 Months Ended

Dec. 31, 2012

Valuation and Qualifying Accounts [Abstract]

Schedule II: Valuation and Qualifying Accounts

Valuation and Qualifying Accounts

For the Years Ended December 31, 2012, 2011 and 2010 (in thousands):


	Balance At Beginning of Year		Additions Charged to Operations		Deductions From Reserves		Balance At End of Year
Allowance for Doubtful Accounts:
December 31, 2012	$	245	$	439	$	57	$	627
December 31, 2011		228		41		24		245
December 31, 2010		741		141		654		228
Warranty:
December 31, 2012		1,525		6,261		5,457		2,329
December 31, 2011		2,279		2,642		3,396		1,525
December 31, 2010		3,039		1,350		2,110		2,279
Deferred Tax Asset Valuation Allowance:
December 31, 2012		36,395		27,486		0		63,881
December 31, 2011		21,783		14,612		0		36,395
December 31, 2010		3,897		22,724		4,838		21,783
Sales Returns Allowance:
December 31, 2012		545		497		131		911
December 31, 2011		346		911		712		545
December 31, 2010		303		188		145		346

Nature of Business and Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2012
Nature of Business and Significant Accounting Policies [Abstract]
Principles of Consolidation	Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets, liabilities, revenues and expenses, and disclosure of contingent liabilities. Actual results could differ materially from these estimates. Significant estimates include allowance for doubtful accounts receivable, provision for excess and obsolete inventory, valuation of intangible and long-lived assets including goodwill valuation, contingent consideration, litigation, provision for warranty costs, income taxes and share-based compensation expense. Difficult global economic conditions, tight credit markets, volatile equity, foreign currency and energy markets and declines in consumer spending have combined to increase the uncertainty inherent in these estimates and assumptions. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates, particularly those related to the condition of the economy.
Cash and Cash Equivalents	Cash and Cash Equivalents Cash and cash equivalents include highly liquid investments with original maturities of three months or less at the time of acquisition. Cash and cash equivalents consist of demand deposits, US Treasury securities, and money market funds. Cash and cash equivalents are recorded at market value, which approximates cost. Gains and losses associated with the Company’s foreign currency denominated demand deposits are recorded as a component of other income (expense).
Allowance for Doubtful Accounts Receivable	Allowance for Doubtful Accounts Receivable The Company provides an allowance for its accounts receivable for estimated losses that may result from its customers’ inability to pay. The Company determines the amount of the allowance by analyzing known uncollectible accounts, aged receivables, economic conditions, historical losses, and changes in customer payment cycles and our customers’ credit-worthiness. Amounts later determined and specifically identified to be uncollectible are charged or written off against this allowance. To minimize the likelihood of uncollectibility, the Company reviews its customers’ credit-worthiness periodically based on credit scores generated by independent credit reporting services, its experience with its customers and the economic condition of its customers’ industries. Material differences may result in the amount and timing of expense for any period if the Company were to make different judgments or utilize different estimates.
Marketable Securities	Marketable Securities Marketable securities predominantly consist of highly liquid debt investments with a maturity of greater than three months when purchased. The Company holds an insignificant amount of marketable equity securities. All of the Company’s marketable debt securities are treated as “available-for-sale.” While it is the Company’s intent to hold its debt securities until maturity, the Company may sell certain securities for cash flow purposes. Thus, the Company’s marketable debt securities are classified as available-for-sale and are carried on the balance sheet at fair value with the related unrealized gains and losses included in accumulated other comprehensive income (loss), a component of stockholders’ equity. Realized gains and losses on the sale of marketable securities are determined using the specific-identification method. The Company determines the fair value of its financial assets and liabilities by reference to the hierarchy of inputs which consists of three levels: Level 1 fair values are valuations based on quoted market prices in active markets for identical assets or liabilities that the entity has the ability to access; Level 2 fair values are those valuations based on quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable data for substantially the full term of the assets or liabilities; and Level 3 fair values are valuations based on inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. All securities whose maturity or sale is expected within one year are classified as “current” on the consolidated balance sheet. All other securities are classified as “long-term” on the consolidated balance sheet.
Inventories and Provision for Excess and Obsolete Inventory	Inventories and Provision for Excess and Obsolete Inventory Inventories are stated at the lower of cost (first-in, first-out method) or market. Shipping and handling costs are classified as a component of cost of net revenues in the consolidated statements of operations. The Company reviews the components of its inventory and its inventory purchase commitments on a regular basis for excess and obsolete inventory based on estimated future usage and sales. Write-downs in inventory value or losses on inventory purchase commitments depend on various items, including factors related to customer demand, economic and competitive conditions, technological advances or new product introductions by the Company or its customers that vary from its current expectations. Whenever inventory is written down, a new cost basis is established and the inventory is not subsequently written up if market conditions improve. The Company believes that, when made, the estimates used in calculating the inventory provision are reasonable and properly reflect the risk of excess and obsolete inventory. If customer demand for the Company’s inventory is substantially less than its estimates, inventory write-downs may be required, which could have a material adverse effect on its consolidated financial statements.
Property and Equipment	Property and Equipment Property and equipment are initially stated at cost and depreciated using the straight-line method. Test equipment, computer equipment, purchased software, furniture, and fixtures and product tooling are depreciated over lives ranging from eighteen months to five years and leasehold improvements are depreciated over the shorter of the related remaining lease period or useful life. Amortization of assets held under capital leases is included in depreciation expense. Expenditures for repairs and maintenance are expensed as incurred. Expenditures for major renewals and betterments that extend the useful lives of existing property and equipment are capitalized and depreciated. Upon retirement or disposition of property and equipment, any resulting gain or loss is recognized in the consolidated statements of operations.
Intangible Assets	Intangible Assets Intangible assets include purchased intangible assets acquired from Enfora and the costs of non-exclusive and perpetual worldwide software technology licenses. These costs are amortized on an accelerated basis or on a straight-line basis over the estimated useful lives of the assets, depending on the anticipated utilization of the asset. The majority of intangible assets relate to the developed technologies and trade name resulting from the acquisition of Enfora. Developed technologies are amortized on a straight-line basis over two years. Trade name is amortized on a straight-line basis over four years.
Long-Lived Assets	Long-Lived Assets The Company periodically evaluates the carrying value of the unamortized balances of its long-lived assets, including property and equipment and intangible assets, to determine whether impairment of these assets has occurred or whether a revision to the related amortization periods should be made. When the carrying value of an asset exceeds the associated undiscounted expected future cash flows, it is considered to be impaired and is written down to fair value. Fair value is determined based on an evaluation of the assets associated undiscounted future cash flows or appraised value. This evaluation is based on management’s projections of the undiscounted future cash flows associated with each class of asset. If management’s evaluation indicates that the carrying values of these assets are impaired, such impairment is recognized by a reduction of the applicable asset carrying value to its estimated fair value and the impairment is expensed as a part of continuing operations.
Goodwill	Goodwill Goodwill represents the excess of the purchase price of an acquired enterprise over the fair value assigned to assets acquired and liabilities assumed in a business combination. Goodwill is allocated as of the date of the business combination to the reporting units that are expected to benefit from the synergies of the business combination. Goodwill is considered to be impaired if the Company determines that the carrying value of the reporting unit to which the goodwill has been assigned exceeds its estimated fair value. The Company performs its annual goodwill impairment test each year at the beginning of the fourth quarter, or more frequently if events or circumstances indicate that the carrying value of goodwill exceeds its fair value. The Company recorded $19.8 million, $3.3 million, and $0 of goodwill impairment losses during the years ended December 31, 2012, 2011, and 2010, respectively.
Contingent Consideration	Contingent Consideration Contingent consideration is recorded at the acquisition date estimated fair value for all acquisitions. The fair value of the contingent consideration is remeasured at each reporting period with any adjustments in fair value included in the Company’s consolidated statement of operations.
Revenue Recognition	Revenue Recognition The Company’s revenue is principally generated from the sale of wireless modems to wireless operators, OEM customers and value added resellers and distributors. In addition, the Company generates revenue from the sale of asset-management solutions utilizing wireless technology and M2M communication devices predominantly to transportation and industrial companies, medical device manufacturers and security system providers. Revenue from product sales is generally recognized upon the later of transfer of title or delivery of the product to the customer. Where the transfer of title or risk of loss is contingent on the customer’s acceptance of the product, we will not recognize revenue until both title and risk of loss have transferred to the customer. We record deferred revenue for cash payments received from customers in advance of when revenue recognition criteria are met. We have granted price protection to certain customers in accordance with the provisions of the respective contracts and track pricing and other terms offered to customers buying similar products to assess compliance with these provisions. We estimate the amount of price protection for current period product sales utilizing historical experience and information regarding customer inventory levels. To date, we have not incurred material price protection obligations. Revenues from sales to certain customers are subject to cooperative advertising allowances. Cooperative advertising allowances are recorded as an operating expense to the extent that the advertising benefit is separable from the revenue transaction and the fair value of that advertising benefit is determinable. To the extent that such allowances either do not provide a separable benefit to us, or the fair value of the advertising benefit cannot be reliably estimated, such amounts are recorded as a reduction of revenue. We establish reserves for estimated product returns allowances in the period in which revenue is recognized. In estimating future product returns, we consider various factors, including our stated return policies and practices and historical trends. Predominantly all of our revenues represent the sale of hardware with accompanied software that is essential to the functionality of the hardware. The Company records revenue associated with the agreed upon price on hardware sales, and accrues any estimated costs of post-delivery performance obligations such as warranty obligations. The Company considers the four basic revenue recognition criteria discussed under Staff Accounting Bulletin #104 when assessing appropriate revenue recognition as follows: Criterion #1—Persuasive evidence of an arrangement must exist; Criterion #2—Delivery has occurred; Criterion #3—The Company’s price to the buyer must be fixed or determinable; and, Criterion #4—Collectibility is reasonably assured. For multiple element arrangements, total consideration received from customers is allocated to the elements. This may include hardware and non essential software elements, based on a relative selling price. The accounting guidance establishes a hierarchy to determine the selling price to be used for allocating revenue to deliverables as follows: (i) vendors specific objective evidence (VSOE), (ii) third party evidence (TPE), and (iii) best estimate of selling price (ESP). Because the Company has neither VSOE nor TPE, revenue has been based on the Company’s ESP. Amounts allocated to the delivered hardware and the related essential software are recognized at the time of the sale provided all other revenue recognition criteria have been met. Amounts allocated to other deliverables based upon ESP are recognized in the period the revenue recognition criteria have been met. Our process for determining its ESP for deliverables without VSOE or TPE considers multiple factors that may vary depending upon the unique facts and circumstances related to each deliverable. Our prices are determined based upon cost to produce our products, expected order quantities and acceptance in the marketplace. In addition, when developing ESPs for products we may consider other factors as appropriate including the pricing of competitive alternatives if they exist, and product-specific business objectives. We account for nonessential software licenses and related post contract support (PCS) under multiple element arrangements by recognizing revenue for such arrangements ratably over the term of the PCS as we have not established VSOE for the PCS element. For the years ended December 31, 2012, 2011, and 2010, we have not recorded any significant revenues from multiple element or software arrangements.
Research and Development Costs	Research and Development Costs Research and development costs are expensed as incurred.
Warranty Costs	Warranty Costs The Company accrues warranty costs based on estimates of future warranty related replacement, repairs or rework of products. Our warranty policy generally provides one to three years of coverage for products following the date of purchase. The Company’s policy is to accrue the estimated cost of warranty coverage as a component of cost of revenue in the accompanying consolidated statements of operations at the time revenue is recognized. In estimating its future warranty obligations the Company considers various factors, including the historical frequency and volume of claims, and the cost to replace or repair products under warranty. The warranty provision for its products is determined by using a financial model to estimate future warranty costs. The Company’s financial model takes into consideration actual product failure rates; estimated replacement, repair or rework expenses; and potential risks associated with our different products. The risk levels, warranty cost information, and failure rates used within this model are reviewed throughout the year and updated, if and when, these inputs change.
Income Taxes	Income Taxes The Company recognizes federal, state and foreign current tax liabilities or assets based on our estimate of taxes payable to or refundable by tax authorities in the current fiscal year. The Company also recognizes federal, state and foreign deferred tax liabilities or assets based on the Company’s estimate of future tax effects attributable to temporary differences and carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Deferred tax assets are reduced by valuation allowances if, based on the consideration of all available evidence, it is more likely than not that some portion of the deferred tax asset will not be realized. The Company evaluates deferred income taxes on a quarterly basis to determine if valuation allowances are required by considering available evidence. If the Company is unable to generate sufficient future taxable income in certain tax jurisdictions, or if there is a material change in the actual effective tax rates or time period within which the underlying temporary differences become taxable or deductible, the Company could be required to increase its valuation allowance against its deferred tax assets which could result in an increase in the Company’s effective tax rate and an adverse impact on operating results. The Company will continue to evaluate the necessity of the valuation allowance based on the remaining deferred tax assets. The Company follows the accounting guidance related to financial statement recognition, measurement and disclosure of uncertain tax positions. The Company recognizes the impact of an uncertain income tax position on an income tax return at the largest amount that is more-likely-than-not to be sustained upon audit by the relevant taxing authority. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. Uncertain tax positions are recognized in the first subsequent financial reporting period in which that threshold is met or from changes in circumstances such as the expiration of applicable statutes of limitations.
Derivatives and Hedging	Derivatives and Hedging At times, the Company will enter into derivative financial instruments, consisting solely of foreign currency forward exchange contracts. The purpose of these derivative instruments is to hedge the Company’s economic exposure associated with accounts receivable and cash balances denominated in Euros. The Company’s forward contracts do not qualify as accounting hedges. As a result, the Company marks-to-market the forward contracts and includes unrealized gains and losses in the current period as a component of other income (expense) in the consolidated statements of operations.
Litigation	Litigation The Company is currently involved in certain legal proceedings. The Company will record a loss when the Company determines information available prior to the issuance of the financial statements indicates the loss is both probable and estimable. Where a liability is probable and there is a range of estimated loss with no best estimate in the range, the Company records the minimum estimated liability related to the claim. As additional information becomes available, the Company assesses the potential liability related to the Company’s pending litigation and revises its estimates, if necessary. The Company’s policy is to expense litigation costs as incurred.
Share-Based Compensation	Share-Based Compensation The Company has granted stock options to employees and restricted stock units. The Company also has an employee stock purchase plan (“ESPP”) for eligible employees. The Company measures the compensation cost associated with all share-based payments based on grant date fair values. The fair value of each employee stock option and employee stock purchase right is estimated on the date of grant using an option pricing model that meets certain requirements. The Company currently uses the Black-Scholes option pricing model to estimate the fair value of our stock options and stock purchase rights. The Black-Scholes model is considered an acceptable model but the fair values generated by it may not be indicative of the actual fair values of our equity awards as it does not consider certain factors important to those awards to employees, such as continued employment and periodic vesting requirements as well as limited transferability. The determination of the fair value of share-based payment awards utilizing the Black-Scholes model is affected by our stock price and a number of assumptions, including expected volatility, expected term, risk-free interest rate and expected dividends. For grants of stock options, the Company uses a blend of historical and implied volatility for traded options on its stock in order to estimate the expected volatility assumption required in the Black-Scholes model. The Company’s use of a blended volatility estimate in computing the expected volatility assumption for stock options is based on its belief that while that implied volatility is representative of expected future volatility, the historical volatility over the expected term of the award is also an indicator of expected future volatility. Due to the short duration of employee stock purchase rights under our ESPP, the Company utilizes historical volatility in order to estimate the expected volatility assumption of the Black-Scholes model. The expected term of stock options granted is estimated using the average of the vesting date, the contractual term and historical experience. The risk-free interest rate assumption is based on observed interest rates appropriate for the expected terms of our stock options and employee stock purchase rights. The dividend yield assumption is based on the Company’s history and expectation of no dividend payouts. The Company estimates forfeitures at the time of grant and revises these estimates, if necessary, in subsequent periods if actual forfeitures differ from those estimates. The Company estimates its forfeiture rate assumption for all types of share based compensation awards based historical forfeiture rates related to each category of award. Compensation cost associated with grants of restricted stock units are measured at fair value, which has historically been the closing price of the Company’s stock on the date of grant. The Company recognizes share-based compensation expense using the straight-line method for awards that contain only service conditions. For awards that contain performance conditions, the Company recognizes the share-based compensation expense on a straight-line basis for each vesting tranche. The Company evaluates the assumptions used to value stock awards on a quarterly basis. If factors change and the Company employs different assumptions, share-based compensation expense may differ significantly from what it has recorded in the past. If there are any modifications or cancellations of the underlying unvested securities, the Company may be required to accelerate, increase or cancel any remaining unearned share-based compensation expense. To the extent that the Company grants additional equity securities to employees or it assumes unvested securities in connection with any acquisitions, its share-based compensation expense will be increased by the additional unearned compensation resulting from those additional grants or acquisitions.
Computation of Net Income (Loss) Per Share	Computation of Net Income (Loss) Per Share The Company computes basic and diluted per share data for all periods for which a statement of operations is presented. Basic net income (loss) per share excludes dilution and is computed by dividing the net income (loss) by the weighted-average number of shares that were outstanding during the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to acquire common stock were exercised or converted into common stock. Potential dilutive securities are excluded from the diluted EPS computation in loss periods as their effect would be anti-dilutive.
Fair Value of Financial Instruments	Fair Value of Financial Instruments The Company’s fair value measurements relate to its cash equivalents, marketable debt securities, and marketable equity securities, which are classified pursuant to authoritative guidance for fair value measurements. The Company places its cash equivalents and marketable debt securities in instruments that meet credit quality standards, as specified in its investment policy guidelines. These guidelines also limit the amount of credit exposure to any one issue, issuer or type of instrument. Our financial instruments consist principally of cash and cash equivalents, short-term and long-term marketable securities, and short-term and long-term debt. The Company’s cash and cash equivalents consist of its investment in money market securities and treasury bills. The Company’s marketable securities consist primarily of government agency securities, municipal bonds, time deposits and investment-grade corporate bonds. From time to time, the Company may utilize foreign exchange forward contracts. These contracts are valued using pricing models that take into account the currency rates as of the balance sheet date.
Comprehensive Income (Loss)	Comprehensive Income (Loss) Comprehensive income (loss) consists of net earnings and unrealized gains and losses on available-for-sale securities.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In September 2011, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2011-08 “Intangibles-Goodwill and Other (Topic 350) — Testing Goodwill for Impairment.” ASU 2011-08 amends the previous guidance under Topic 350 which required an entity to test goodwill for impairment, on at least an annual basis, by performing the two-step goodwill impairment test described in Topic 350. The amendments in ASU 2011-08 permit an entity to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment test. The more likely than not threshold is defined as having likelihood of more than 50 percent. ASU 2011-08 is effective for annual and interim goodwill impairment tests performed for fiscal years beginning after December 15, 2011. The Company has adopted ASU 2011-08 for our financial statement results beginning January 1, 2012 and there was no material impact on the consolidated financial statements upon adoption. In June 2011, the FASB issued ASU No. 2011-05 “Comprehensive Income (Topic 220) — Presentation of Comprehensive Income.” ASU 2011-05 requires that all non-owner changes in stockholders’ equity be presented either in a single continuous statement of comprehensive income or in two separate but consecutive statements. In both choices, an entity is required to present each component of net income along with total net income, each component of other comprehensive income along with a total for other comprehensive income, and a total amount for comprehensive income. ASU 2011-05 is effective retrospectively for fiscal years, and interim periods within those years, beginning after December 15, 2011. The Company has adopted ASU 2011-05 and has presented comprehensive income (loss) separately in the consolidated statements of comprehensive income (loss) for the years ended 2012, 2011, and 2010.

Merger and Acquisition Activities in Prior Years (Tables)

12 Months Ended

Dec. 31, 2012

Merger and Acquisition Activities in Prior Years [Abstract]

Summary of Fair Value of Assets Acquired and Liabilities Assumed


Cash and cash equivalents	$	4,600
Accounts receivables		7,448
Inventories		10,469
Property and equipment		1,597
Prepaid expenses and other assets		304
Accounts payable, accrued expenses and deferred taxes		(12,220	)
Intangible assets		42,520
Goodwill		23,661

Purchase price	$	78,379

Fair Value Measurement of Assets and Liabilities (Tables)

12 Months Ended

Dec. 31, 2012

Fair Value Measurement of Assets and Liabilities [Abstract]

Summary of Company's financial instrument, fair value on a recurring basis


Description	Balance as of December 31, 2012		Level 1		Level 2
Assets:
Cash equivalents
Money market funds	$	47	$	47	$	0
US Treasury securities		3,429		0		3,429

Total cash equivalents		3,476		47		3,429

Short-term marketable securities:
Available-for-sale:
Government agency securities		3,266		0		3,266
Municipal bonds		11,260		0		11,260
Certificates of deposit		6,205		0		6,205
Corporate debentures / bonds		17,333		0		17,333

Total short-term marketable securities		38,064		0		38,064

Long-term marketable securities:
Available-for-sale:
Certificates of deposit		1,201		0		1,201

Total long-term marketable securities		1,201		0		1,201

Total financial assets	$	42,741	$	47	$	42,694


Description	Balance as of December 31, 2011		Level 1		Level 2
Assets:
Cash equivalents
Money market funds	$	25,137	$	25,137	$	0
US Treasury securities		5,784		0		5,784

Total cash equivalents		30,921		25,137		5,784

Short-term marketable securities:
Available-for-sale:
Government agency securities		6,912		0		6,912
Municipal bonds		8,384		0		8,384
Certificates of deposit		4,321		0		4,321
Corporate debentures / bonds		8,612		0		8,612
Marketable equity securities		38		38		0

Total short-term marketable securities		28,267		38		28,229

Long-term marketable securities:
Available-for-sale:
Government agency securities		3,738		0		3,738
Municipal bonds		5,969		0		5,969
Certificates of deposit		3,788		0		3,788

Total long-term marketable securities		13,495		0		13,495

Total financial assets	$	72,683	$	25,175	$	47,508

Summary of Level 3 activity for our contingent consideration liability

The table below presents Level 3 activity for our contingent consideration liability for the twelve months ended December 31, 2011 (in thousands):


Contingent consideration liability	Level 3
Beginning balance at January 1, 2011	$	(880	)
Adjustments		880

Ending balance at December 31, 2011	$	0

- Definition

Tabular disclosure related to assets and liabilities by class, including financial instruments measured at fair value that are classified in shareholders' equity, if any, that are measured at fair value on a recurring and/or nonrecurring basis in periods after initial recognition. Disclosures include, but are not limited to: (a) the fair value measurements recorded and the reasons for the measurements and (b) the level within the fair value hierarchy in which the fair value measurements are categorized in their entirety (levels 1, 2, 3) as well as transfers between levels 1 and 2.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=7578670&loc=d3e19279-110258

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-Subparagraph (a,b,bb)
-URI http://asc.fasb.org/extlink&oid=7578670&loc=d3e19207-110258

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2C
-URI http://asc.fasb.org/extlink&oid=7578670&loc=SL7498348-110258

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=7578670&loc=d3e19190-110258

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 157
-Paragraph 32
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 157
-Paragraph 33
-Subparagraph a, b
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 157
-Paragraph 6
-Footnote 4
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

+ References + Details

Financial Statement Details (Tables)

12 Months Ended

Dec. 31, 2012

Financial Statement Details [Abstract]

Summary of Marketable Securities

The Company’s portfolio of available-for-sale securities by contractual maturity consists of the following (in thousands):


December 31, 2012	Maturity in Years		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
Available-for-sale:
Government agency securities		1 or less	$	3,265	$	1	$	0		$	3,266
Municipal bonds		1 or less		11,246		14		0			11,260
Certificates of deposit		1 or less		6,200		5		0			6,205
Corporate debentures / bonds		1 or less		17,330		3		0			17,333

Total short-term marketable securities				38,041		23		0			38,064

Available-for-sale:
Certificates of deposit		1 to 2		1,200		1		0			1,201

Total long-term marketable securities				1,200		1		0			1,201

			$	39,241	$	24	$	0		$	39,265

December 31, 2011	Maturity in Years		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
Available-for-sale:
Government agency securities		1 or less	$	6,913	$	0	$	(1	)	$	6,912
Municipal bonds		1 or less		8,390		0		(6	)		8,384
Certificates of deposit		1 or less		4,319		2		0			4,321
Corporate debentures / bonds		1 or less		8,615		0		(3	)		8,612
Marketable equity securities		1 or less		38		0		0			38

Total short-term marketable securities				28,275		2		(10	)		28,267

Available-for-sale:
Government agency securities		1 to 2		3,734		4		0			3,738
Municipal bonds		1 to 2		5,967		2		0			5,969
Certificates of deposit		1 to 2		3,797		0		(9	)		3,788

Total long-term marketable securities				13,498		6		(9	)		13,495

			$	41,773	$	8	$	(19	)	$	41,762

Summary of inventories

Inventories consist of the following (in thousands):


	December 31,
	2012		2011
Finished goods	$	26,776	$	35,211
Raw materials and components		12,240		7,068

	$	39,016	$	42,279

Summary of Property and Equipment

Property and equipment consists of the following (in thousands):


	December 31,
	2012			2011
Test equipment	$	53,368		$	52,311
Computer equipment and purchased software		12,310			13,766
Product tooling		2,232			3,768
Furniture and fixtures		2,219			2,240
Leasehold improvements		4,802			5,628

		74,931			77,713
Less—accumulated depreciation and amortization		(59,702	)		(59,217	)

	$	15,229		$	18,496

Summary of accrued Expenses

Accrued expenses consist of the following (in thousands):


	December 31,
	2012		2011
Royalties	$	4,349	$	5,861
Payroll and related expenses		7,788		8,706
Product warranty		2,329		1,525
Market development funds and price protection		2,147		1,750
Deferred rent		573		1,135
Professional fees		1,549		1,213
Deferred revenue		4,630		1,060
Other		4,435		3,794

	$	27,800	$	25,044

Summary of accrued warranty obligations

Accrued warranty obligations consist of the following (in thousands):


	2012			2011
Warranty liability at beginning of period	$	1,525		$	2,279
Additions charged to operations		6,261			2,642
Deductions from liability		(5,457	)		(3,396	)

Warranty liability at end of period	$	2,329		$	1,525

Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2012

Intangible Assets [Abstract]

Schedule of amortizable purchased intangible assets from acquisition

The Company’s amortizable purchased intangible assets resulting from its acquisition of Enfora are composed of (in thousands):


	Years ended December 31,
	2012										2011
	Gross		Accumulated Amortization			Impairment			Net		Gross		Accumulated Amortization			Net
Developed technologies	$	26,000	$	(5,786	)	$	(19,547	)	$	667	$	26,000	$	(4,163	)	$	21,837
Trade name		12,800		(2,147	)		(8,582	)		2,071		12,800		(1,387	)		11,413
Other		3,720		(1,923	)		(1,620	)		177		3,720		(1,609	)		2,111

Total amortizable purchased intangible assets	$	42,520	$	(9,856	)	$	(29,749	)	$	2,915	$	42,520	$	(7,159	)	$	35,361

Summary of amortization expenses of purchased intangible assets

The following table presents details of the amortization of purchased intangible assets of Enfora included in the cost of net revenues and operating costs and expenses categories (in thousands):


	Years ended December 31,
	2012		2011
Cost of net revenues	$	1,623	$	4,102
General and administrative expenses		1,074		2,220

Total amortization expense	$	2,697	$	6,322

Schedule of amortization expense of purchased intangible assets expected to be recognized

The following table presents details of the amortization of existing amortizable purchased intangible assets of Enfora that is currently estimated to be expensed in the future (in thousands):


Fiscal year:	Amount
2013	$	896
2014		895
2015		562
2016		562

Total	$	2,915

Goodwill (Tables)

12 Months Ended

Dec. 31, 2012

Goodwill [Abstract]

Schedule of carrying amount of goodwill changes

The changes in the carrying amount of goodwill for the years ended December 31, 2012 and 2011 are as follows (in thousands):


	M2M Products and Solutions
	2012			2011
Balance at January 1,	$	19,772		$	22,258
Goodwill acquisition price adjustments, net of tax		0			791
Goodwill impairment during the period		(19,772	)		(3,277	)

Balance at December 31,	$	0		$	19,772

- Definition

Tabular disclosure of goodwill by reportable segment and in total which includes a rollforward schedule.

+ References + Details

Stockholders Equity (Tables)

12 Months Ended

Dec. 31, 2012

Stockholders' Equity [Abstract]

Summary of Common Shares Reserved for Future Issuance

The Company has reserved shares of common stock for possible future issuance as of December 31, 2012 and 2011 as follows (in thousands):


	Shares
	2012		2011
Stock options outstanding under the 2009 Omnibus Incentive Compensation Plan and previous plans		4,282		4,481
Restricted stock units outstanding		1,662		1,289
Future grants of awards under the 2009 Omnibus Incentive Compensation Plan		702		1,493
Shares available under the Employee Stock Purchase Plan		0		1,087

Total shares of common stock reserved for issuance		6,646		8,350

Stock Incentive and Employee Stock Purchase Plans (Tables)

12 Months Ended

Dec. 31, 2012

Stock Incentive and Employee Stock Purchase Plans [Abstract]

Summary of share-based compensation expense


	Year Ended December 31,
	2012		2011		2010
Cost of revenues	$	747	$	579	$	645
Research and development		3,042		2,088		2,368
Sales and marketing		1,403		1,254		1,164
General and administrative		2,308		2,062		2,294

Totals	$	7,500	$	5,983	$	6,471

Summary of per share fair values of stock options granted under the 2009 Plan and rights granted under the ESPP

The per share fair values of stock options granted under the 2009 Plan and rights granted under the ESPP have been estimated with the following assumptions.


	Employee Stock Options									Employee Stock Purchase Rights
	2012			2011			2010			2012			2011			2010
Expected dividend yield:		0	%		0	%		0	%		0	%		0	%		0	%
Risk-free interest rate:		0.9	%		1.2	%		2.2	%		0.2	%		0.2	%		0.5	%
Volatility:		63	%		69	%		53	%		68	%		63	%		60	%
Expected term (in years):		6.0			6.0			5.8			1.3			1.1			1.3

Summary of stock option activity

A summary of stock option activity for the year ended December 31, 2012 is presented below (dollars and shares in thousands, except per share data):


	Stock Options Outstanding			Weighted Average Exercise Price Per Option		Weighted Average Remaining Contractual Term (Years)		Aggregate Intrinsic Value
Options outstanding December 31, 2011		4,481		$	10.58
Granted		176		$	3.44
Exercised		0		$	0.00
Cancelled		(375	)	$	10.99

Balance December 31, 2012		4,282		$	10.25		4.27	$	0

Options Exercisable, December 31, 2012		3,839		$	10.80		3.90	$	0

Summary of restricted stock unit activity

A summary of restricted stock unit activity for the year ended December 31, 2012 is presented below (shares in thousands):


	Shares
Non-vested at December 31, 2011		1,289
Granted		1,016
Vested		(461	)
Forfeited		(182	)

Non-vested at December 31, 2012		1,662

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

Income Taxes [Abstract]

Summary of income taxes

Total income taxes for the years ended December 31, 2012, 2011 and 2010 were allocated as follows (in thousands):


	Year Ended December 31,
	2012		2011			2010
To income	$	611	$	(9,503	)	$	7,893
To stockholders’ equity		10		240			277

Total income taxes	$	621	$	(9,263	)	$	8,170

Summary of Income (loss) before taxes

Income (loss) before taxes for the years ended December 31, 2012, 2011 and 2010 is comprised of the following (in thousands):


	Year Ended December 31,
	2012			2011			2010
Domestic	$	(88,945	)	$	(36,091	)	$	(27,091	)
Foreign		290			1,696			1,534

Income (loss) before taxes	$	(88,655	)	$	(34,395	)	$	(25,557	)

Summary of provision (benefit) for income taxes

The provision (benefit) for income taxes for the years ended December 31, 2012, 2011 and 2010 is comprised of the following (in thousands):


	Year Ended December 31,
	2012		2011			2010
Current:
Federal	$	0	$	(10,786	)	$	(3,602	)
State		29		0			11
Foreign		74		84			43

Total Current		103		(10,702	)		(3,548	)

Deferred:
Federal		14		(114	)		9,882
State		0		0			789
Foreign		494		1,313			770

Total Deferred		508		1,199			11,441

Provision (benefit) for income taxes	$	611	$	(9,503	)	$	7,893

Summary of deferred tax assets

The Company’s deferred tax assets consist of the following (in thousands):


	December 31,
	2012			2011
Deferred tax assets:
Accrued expenses	$	6,271		$	4,941
Inventory obsolescence provision		1,992			1,647
Depreciation and amortization		6,680			4,626
Deferred rent		892			409
Net operating loss and tax credit carryforwards		42,994			32,569
Stock-based compensation		6,069			5,662
Unrecognized tax benefits		613			439

Deferred tax assets		65,511			50,293
Deferred tax liabilities:
Amortization of acquired intangibles		(1,016	)		(12,777	)

Net deferred tax assets		64,495			37,516
Valuation allowance		(63,881	)		(36,395	)

Net deferred tax assets	$	614		$	1,121

Summary of provision (benefit) for income taxes reconciles to the amount computed by applying the statutory federal income tax rate


	Year Ended December 31,
	2012			2011			2010
Federal tax benefit, at statutory rate	$	(30,142	)	$	(11,694	)	$	(8,690	)
State benefit, net of federal benefit		(757	)		(733	)		(509	)
Change in valuation allowance—current year		27,486			14,612			7,888
Change in valuation allowance—prior year deferreds		0			0			14,840
Tax expense/(benefit) from business combination		0			909			(4,838	)
Research and development credits		(856	)		(1,731	)		(2,044	)
Share-based compensation		1,616			526			917
Merger fees		0			0			674
Uncertain tax positions		(46	)		(11,809	)		322
Goodwill impairment		3,700			596			0
Other		(390	)		(179	)		(667	)

	$	611		$	(9,503	)	$	7,893

A reconciliation of the beginning and ending amounts of unrecognized tax benefits

A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows (in thousands):


	Amount
Unrecognized tax benefits balance at December 31, 2009	$	41,135
Increases related to current and prior year tax positions		251
Settlements and lapses in statutes of limitations		0

Unrecognized tax benefits balance at December 31, 2010		41,386
Increases related to current and prior year tax positions		899
Settlements and lapses in statutes of limitations		(9,490	)

Unrecognized tax benefits balance at December 31, 2011		32,795
Increases related to current and prior year tax positions		475
Settlements and lapses in statutes of limitations		(50	)

Unrecognized tax benefits balance at December 31, 2012	$	33,220

Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2012

Commitments and Contingencies [Abstract]

Summary of minimum future lease payments under non-cancelable operating leases

The minimum future lease payments under non-cancelable operating leases as of December 31, 2012 are as follows (in thousands):


For the Period Ending December 31,	Amount
2013	$	3,613
2014		3,664
2015		2,930
2016		2,899
2017		356

Total minimum lease payments	$	13,462

Segment Information and Concentrations of Risk (Tables)

12 Months Ended

Dec. 31, 2012

Segment Information and Concentrations of Risk [Abstract]

Schedule of net revenues, operating income (loss) and identifiable assets of segments

The table below presents net revenues from external customers, operating income (loss) and identifiable assets for our reportable segments (in thousands):


	Year Ended December 31,
	2012			2011			2010
Net revenues:
Mobile Computing Products	$	312,508		$	358,106		$	332,464
M2M Products and Solutions		31,780			44,756			6,478

Total	$	344,288		$	402,862		$	338,942

Operating income (loss) :
Mobile Computing Products	$	(22,924	)	$	(13,764	)	$	(23,027	)
M2M Products and Solutions		(65,819	)		(19,963	)		(1,975	)

Total	$	(88,743	)	$	(33,727	)	$	(25,002	)


	Year Ended December 31,
	2012		2011
Identifiable assets:
Mobile Computing Products	$	141,045	$	181,180
M2M Products and Solutions		20,486		67,999

Total	$	161,531	$	249,179

Schedule of geographic concentration of the assets


	Year Ended December 31,
	2012		2011
United States	$	157,661	$	243,030
Canada		2,836		4,764
Europe, Latin America and Asia		1,034		1,385

	$	161,531	$	249,179

Schedule of geographic concentration of net revenues

The following table details the Company’s concentration of net revenues by geographic region based on shipping destination:


	Year Ended December 31,
	2012			2011			2010
United States and Canada		93.1	%		93.5	%		95.0	%
Latin America		2.4			0.0			0.0
Europe, Middle East and Africa		4.1			4.0			4.7
Asia and Australia		0.4			2.5			0.3

		100.0	%		100.0	%		100.0	%

- Definition

Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss.

+ References + Details

Quarterly Financial Information (Unaudited) (Tables)

12 Months Ended

Dec. 31, 2012

Quarterly Financial Information (Unaudited) [Abstract]

Summary of unaudited quarterly results of operations

The following is a summary of unaudited quarterly results of operations for the years ended December 31, 2012 and 2011.


	Quarter
	First			Second			Third			Fourth
	(in thousands, except per share amounts)
2012:
Net revenues	$	100,150		$	102,446		$	71,017		$	70,675
Gross profit		20,988			23,251			14,646			13,558
Net loss applicable to common stockholders		(37,921	)		(4,500	)		(31,933	)		(14,912	)
Basic and diluted net loss per common share		(1.17	)		(0.14	)		(0.97	)		(0.44	)

2011:
Net revenues	$	61,784		$	118,021		$	113,263		$	109,794
Gross profit		5,994			26,182			26,690			25,726
Net loss applicable to common stockholders		(22,088	)		(3,898	)		4,498			(3,404	)
Basic and diluted net loss per common share		(0.69	)		(0.12	)		0.14			(0.11	)

Nature of Business and Significant Accounting Policies (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Nature of Business and Significant Accounting Policies (Textual) [Abstract]
Maturity period of cash and cash equivalents	3 months
Maturity period of marketable securities	3 months
Goodwill impairment	$ 19.8	$ 3.3	$ 0.0
Revenue recognition	$ 0.0	$ 0.0	$ 0.0
Recognized income tax position	50.00%
Goodwill impairment test	likelihood of more than 50 percent
Developed technologies [Member]
Nature Of Business And Significant Accounting Policies [Line Items]
Property and equipment useful life	2 years
Trade name [Member]
Nature Of Business And Significant Accounting Policies [Line Items]
Period of amortization of trade name	4 years
Maximum [Member]
Nature Of Business And Significant Accounting Policies [Line Items]
Period of warranty	3 years
Minimum [Member]
Nature Of Business And Significant Accounting Policies [Line Items]
Period of warranty	1 year

Merger and Acquisition Activities in Prior Years (Details) $ in Thousands	Dec. 31, 2010 USD ($)
Allocation of the purchase price
Cash and cash equivalents	$ 4,600
Accounts receivables	7,448
Inventories	10,469
Property and equipment	1,597
Prepaid expenses and other assets	304
Accounts payable, accrued expenses and deferred taxes	(12,220)
Intangible assets	42,520
Goodwill	23,661
Purchase price	$ 78,379

Merger and Acquisition Activities in Prior Years (Details Textual) - USD ($) $ in Millions	12 Months Ended		15 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2011	Sep. 30, 2011	Mar. 31, 2011	Jun. 30, 2010
Merger And Acquisition Activities In Prior Years (Textual) [Abstract]
Cash consideration paid in exchange for an agreed upon amount of Enfora working capital		$ 64.5
Additional Cash consideration paid in exchange for an agreed upon amount of Enfora working capital		13.0
Operating results contingent consideration			15 months
Fair value of the contingent consideration		0.9
Total Fair value of the contingent consideration		78.4
Revision in the estimate of contingent consideration					$ 0.0
Adjustment to increase Enfora net deferred tax assets				$ 0.3
Series Of Individually Immaterial Business Acquisitions [Member]
Business Acquisition [Line Items]
Acquisition costs related to the merger of Enfora		1.9
Additional Cash consideration paid based on the operating results of Enfora	$ 6.0
Bridge loan amount in connection with the bid						$ 30.0
Foreign currency gain, net of hedging transaction costs		1.7
Legal, advisory and professional fees related to the acquisition bid		1.3
Series Of Individually Immaterial Business Acquisitions [Member] \| Bridge Loan [Member]
Business Acquisition [Line Items]
Debt issuance costs related to the bridge loan facility		$ 3.1

Fair Value Measurement of Assets and Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011
Fair Value, Measurements, Recurring [Member]
Cash equivalents
Total cash equivalents	$ 3,476	$ 30,921
Available-for-sale:
Total short-term marketable securities	38,064	28,267
Total long-term marketable securities	1,201	13,495
Total financial assets	42,741	72,683
Fair Value, Measurements, Recurring [Member] \| Government agency securities [Member]
Available-for-sale:
Total short-term marketable securities	3,266	6,912
Total long-term marketable securities		3,738
Fair Value, Measurements, Recurring [Member] \| Municipal bonds [Member]
Available-for-sale:
Total short-term marketable securities	11,260	8,384
Total long-term marketable securities		5,969
Fair Value, Measurements, Recurring [Member] \| Certificates of deposit [Member]
Available-for-sale:
Total short-term marketable securities	6,205	4,321
Total long-term marketable securities	1,201	3,788
Fair Value, Measurements, Recurring [Member] \| Corporate debentures / bonds [Member]
Available-for-sale:
Total short-term marketable securities	17,333	8,612
Fair Value, Measurements, Recurring [Member] \| Marketable equity securities [Member]
Available-for-sale:
Total short-term marketable securities		38
Fair Value, Measurements, Recurring [Member] \| Money market funds [Member]
Cash equivalents
Total cash equivalents	47	25,137
Fair Value, Measurements, Recurring [Member] \| US Treasury securities [Member]
Cash equivalents
Total cash equivalents	3,429	5,784
Level 1 [Member]
Cash equivalents
Total cash equivalents	47	25,137
Available-for-sale:
Total short-term marketable securities	0	38
Total long-term marketable securities	0	0
Total financial assets	47	25,175
Level 1 [Member] \| Government agency securities [Member]
Available-for-sale:
Total short-term marketable securities	0	0
Total long-term marketable securities		0
Level 1 [Member] \| Municipal bonds [Member]
Available-for-sale:
Total short-term marketable securities	0	0
Total long-term marketable securities		0
Level 1 [Member] \| Certificates of deposit [Member]
Available-for-sale:
Total short-term marketable securities	0	0
Total long-term marketable securities	0	0
Level 1 [Member] \| Corporate debentures / bonds [Member]
Available-for-sale:
Total short-term marketable securities	0	0
Level 1 [Member] \| Marketable equity securities [Member]
Available-for-sale:
Total short-term marketable securities		38
Level 1 [Member] \| Money market funds [Member]
Cash equivalents
Total cash equivalents	47	25,137
Level 1 [Member] \| US Treasury securities [Member]
Cash equivalents
Total cash equivalents	0	0
Level 2 [Member]
Cash equivalents
Total cash equivalents	3,429	5,784
Available-for-sale:
Total short-term marketable securities	38,064	28,229
Total long-term marketable securities	1,201	13,495
Total financial assets	42,694	47,508
Level 2 [Member] \| Government agency securities [Member]
Available-for-sale:
Total short-term marketable securities	3,266	6,912
Total long-term marketable securities		3,738
Level 2 [Member] \| Municipal bonds [Member]
Available-for-sale:
Total short-term marketable securities	11,260	8,384
Total long-term marketable securities		5,969
Level 2 [Member] \| Certificates of deposit [Member]
Available-for-sale:
Total short-term marketable securities	6,205	4,321
Total long-term marketable securities	1,201	3,788
Level 2 [Member] \| Corporate debentures / bonds [Member]
Available-for-sale:
Total short-term marketable securities	17,333	8,612
Level 2 [Member] \| Marketable equity securities [Member]
Available-for-sale:
Total short-term marketable securities		0
Level 2 [Member] \| Money market funds [Member]
Cash equivalents
Total cash equivalents	0	0
Level 2 [Member] \| US Treasury securities [Member]
Cash equivalents
Total cash equivalents	$ 3,429	$ 5,784

Fair Value Measurement of Assets and Liabilities (Details 1) $ in Thousands	12 Months Ended
	Dec. 31, 2011 USD ($)
Summary of Level 3 activity for our contingent consideration liability
Beginning balance at January 1, 2011	$ (880)
Adjustments	880
Ending balance at December 31, 2011	$ 0

Fair Value Measurement of Assets and Liabilities (Details Textual) - USD ($)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Fair Value Measurement of Assets and Liabilities (Textual) [Abstract]
Unrealized loss outstanding foreign currency exchange forward contracts	$ 0	$ 0
Euro-denominated foreign exchange forward contracts gain	0	8,000	$ 38,000
Foreign currency gains and losses on foreign currency denominated transactions	$ 51,000	$ 836,000	1,700,000
Gains relate to foreign currency gain realized on the liquidation of the Company's cash holdings			2,900,000
Gains relate to proceeding for the sale of Cinterion			$ 1,200,000
Maximum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long term marketable debt securities maturity period	2 years
Minimum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long term marketable debt securities maturity period	1 year

Financial Statement Details (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
Available-for-sale:
Amortized Cost	$ 39,241	$ 41,773
Gross Unrealized Gains	24	8
Gross Unrealized Losses	0	(19)
Estimated Fair Value	39,265	41,762
Short-term marketable securities [Member]
Available-for-sale:
Amortized Cost	38,041	28,275
Gross Unrealized Gains	23	2
Gross Unrealized Losses	0	(10)
Estimated Fair Value	38,064	28,267
Long-term marketable securities [Member]
Available-for-sale:
Amortized Cost	1,200	13,498
Gross Unrealized Gains	1	6
Gross Unrealized Losses	0	(9)
Estimated Fair Value	$ 1,201	$ 13,495
Government agency securities [Member] \| Short-term marketable securities [Member]
Available-for-sale:
Maturity in Years	1 or less	1 or less
Amortized Cost	$ 3,264	$ 6,913
Gross Unrealized Gains	1	0
Gross Unrealized Losses	0	(1)
Estimated Fair Value	$ 3,266	$ 6,912
Government agency securities [Member] \| Long-term marketable securities [Member]
Available-for-sale:
Maturity in Years		1 to 2
Amortized Cost		$ 3,734
Gross Unrealized Gains		4
Gross Unrealized Losses		0
Estimated Fair Value		$ 3,738
Municipal bonds [Member] \| Short-term marketable securities [Member]
Available-for-sale:
Maturity in Years	1 or less	1 or less
Amortized Cost	$ 11,246	$ 8,390
Gross Unrealized Gains	14	0
Gross Unrealized Losses	0	(6)
Estimated Fair Value	$ 11,260	$ 8,384
Municipal bonds [Member] \| Long-term marketable securities [Member]
Available-for-sale:
Maturity in Years		1 to 2
Amortized Cost		$ 5,967
Gross Unrealized Gains		2
Gross Unrealized Losses		0
Estimated Fair Value		$ 5,969
Certificates of deposit [Member] \| Short-term marketable securities [Member]
Available-for-sale:
Maturity in Years	1 or less	1 or less
Amortized Cost	$ 6,200	$ 4,319
Gross Unrealized Gains	5	2
Gross Unrealized Losses	0	0
Estimated Fair Value	$ 6,205	$ 4,321
Certificates of deposit [Member] \| Long-term marketable securities [Member]
Available-for-sale:
Maturity in Years	1 to 2	1 to 2
Amortized Cost	$ 1,200	$ 3,797
Gross Unrealized Gains	1	0
Gross Unrealized Losses	0	(9)
Estimated Fair Value	$ 1,201	$ 3,788
Corporate debentures / bonds [Member] \| Short-term marketable securities [Member]
Available-for-sale:
Maturity in Years	1 or less	1 or less
Amortized Cost	$ 17,330	$ 8,615
Gross Unrealized Gains	3	0
Gross Unrealized Losses	0	(3)
Estimated Fair Value	$ 17,333	$ 8,612
Marketable equity securities [Member] \| Short-term marketable securities [Member]
Available-for-sale:
Maturity in Years		1 or less
Amortized Cost		$ 38
Gross Unrealized Gains		0
Gross Unrealized Losses		0
Estimated Fair Value		$ 38

Financial Statement Details (Details 1) - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011
Inventories
Finished goods	$ 26,776	$ 35,211
Raw materials and components	12,240	7,068
Total inventory	$ 39,016	$ 42,279

Financial Statement Details (Details 2) - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011
Property, Plant and Equipment, Net, by Type [Abstract]
Property and equipment, Gross	$ 74,931	$ 77,713
Less- accumulated depreciation and amortization	(59,702)	(59,217)
Property and equipment, Net	15,229	18,496
Test equipment [Member]
Property, Plant and Equipment, Net, by Type [Abstract]
Property and equipment, Gross	53,368	52,311
Computer equipment and purchased software [Member]
Property, Plant and Equipment, Net, by Type [Abstract]
Property and equipment, Gross	12,310	13,766
Product tooling [Member]
Property, Plant and Equipment, Net, by Type [Abstract]
Property and equipment, Gross	2,232	3,768
Furniture and fixtures [Member]
Property, Plant and Equipment, Net, by Type [Abstract]
Property and equipment, Gross	2,219	2,240
Leasehold improvements [Member]
Property, Plant and Equipment, Net, by Type [Abstract]
Property and equipment, Gross	$ 4,802	$ 5,628

- Definition

The cumulative amount of depreciation, depletion and amortization (related to property, plant and equipment, but not including land) that has been recognized in the income statement.

+ References + Details

Financial Statement Details (Details 3) - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Accrued Expenses
Royalties	$ 4,349	$ 5,861
Payroll and related expenses	7,788	8,706
Product warranty	2,329	1,525	$ 2,279
Market development funds and price protection	2,147	1,750
Deferred rent	573	1,135
Professional fees	1,549	1,213
Deferred revenue	4,630	1,060
Other	4,435	3,794
Accrued expenses, Total	$ 27,800	$ 25,044

Financial Statement Details (Details 4) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
Accrued warranty obligations
Warranty liability at beginning of period	$ 1,525	$ 2,279
Additions charged to operations	6,261	2,642
Deductions from liability	(5,457)	(3,396)
Warranty liability at end of period	$ 2,329	$ 1,525

Financial Statement Details (Details Textual) - USD ($)	12 Months Ended
Financial Statement Details (Details Textual) - USD ($)	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Financial Statement Details (Textual) [Abstract]
Net unrealized gains (losses)	$ 14,000	$ 8,000
Company's investment portfolio of marketable equity securities		385,000
Company's investment portfolio with a fair value		38,000
Marketable securities other-than-temporary loss	38,000	347,000
Property and equipment	100,000	70,000	$ 167,000
Depreciation and amortization expense	$ 9,400,000	$ 11,100,000	$ 10,000,000

- Definition

The aggregate amount of write-downs for impairments recognized during the period for long lived assets held for use (including those held for disposal by means other than sale).

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 958
-SubTopic 225
-Section 45
-Paragraph 11
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=6743430&loc=d3e92212-112881

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Impairment
-URI http://asc.fasb.org/extlink&oid=6515133

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 230
-SubTopic 10
-Section 45
-Paragraph 28
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Reference 4: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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Reference 5: http://www.xbrl.org/2003/role/presentationRef
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-Paragraph 2
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-URI http://asc.fasb.org/extlink&oid=6391110&loc=d3e2921-110230

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 144
-Paragraph 26
-Subparagraph b
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 144
-Paragraph 7, 25
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

- Definition

Value of the investment at close of period. For schedules of investments that are categorized, the value would be aggregated by category. For investment in and advances to affiliates, if operations of any controlled companies are different in character from those of the company, group such affiliates within divisions and by type of activities.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 946
-SubTopic 320
-Section S99
-Paragraph 1
-Subparagraph (SX 210.12-12.Column C.3,4)
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Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
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-Subparagraph (SX 210.12-12C.Column C.7)
-URI http://asc.fasb.org/extlink&oid=6955306&loc=d3e611225-123010

Reference 3: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
-Topic 946
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-Paragraph 6
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Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 946
-SubTopic 320
-Section S99
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-Subparagraph (SX 210.12-13.Column C.6)
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Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 12
-Paragraph Column C
-Article 12

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 12
-Paragraph 3, 4
-Article 12

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 14
-Paragraph 2, 3
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Reference 8: http://www.xbrl.org/2003/role/presentationRef
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Reference 9: http://www.xbrl.org/2003/role/presentationRef
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Reference 10: http://www.xbrl.org/2003/role/presentationRef
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-Number 210
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Reference 11: http://www.xbrl.org/2003/role/presentationRef
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Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 13
-Paragraph Column C
-Article 12

+ Details

Intangible Assets (Details) - USD ($) $ in Thousands	12 Months Ended
Intangible Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Purchased intangible assets from acquisition
Gross	$ 42,520	$ 42,520
Accumulated Amortization	(9,856)	(7,159)
Impairment loss on equipment and software license intangible assets	(100)	(203)	$ (167)
Net	2,915	35,361
Developed technologies [Member]
Purchased intangible assets from acquisition
Gross	26,000	26,000
Accumulated Amortization	(5,786)	(4,163)
Impairment loss on equipment and software license intangible assets	(19,547)
Net	667	21,837
Trade name [Member]
Purchased intangible assets from acquisition
Gross	12,800	12,800
Accumulated Amortization	(2,147)	(1,387)
Impairment loss on equipment and software license intangible assets	(8,582)
Net	2,071	11,413
Other [Member]
Purchased intangible assets from acquisition
Gross	3,720	3,720
Accumulated Amortization	(1,923)	(1,609)
Impairment loss on equipment and software license intangible assets	(1,620)
Net	$ 177	$ 2,111

Intangible Assets (Details 1) - USD ($) $ in Thousands	12 Months Ended
Intangible Assets (Details 1) - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Intangible assets included operating costs and expenses
Amortization of purchased intangible assets	$ 1,074	$ 2,220	$ 179
Cost of net revenues [Member]
Intangible assets included operating costs and expenses
Amortization of purchased intangible assets	1,623	4,102
General and administrative expenses [Member]
Intangible assets included operating costs and expenses
Amortization of purchased intangible assets	$ 1,074	$ 2,220

Intangible Assets (Details 2) - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011
Amortizable purchased intangible assets currently estimated to be expensed
2013	$ 896
2014	895
2015	562
2016	562
Net	$ 2,915	$ 35,361

Intangible Assets (Details Textual) - USD ($)	3 Months Ended		12 Months Ended
Intangible Assets (Details Textual) - USD ($)	Sep. 30, 2012	Mar. 31, 2012	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Finite Lived Intangible Assets [Line Items]
Purchased Intangible Assets Net			$ 2,915,000	$ 35,361,000
Intangible Assets Accumulated Amortization			9,856,000	7,159,000
Loss on goodwill and purchased intangible assets impairment			49,521,000	3,277,000	$ 0
Intangible Assets (Textual) [Abstract]
Impairment loss				133,000	0
Deduction on impairment charges			$ 300,000
Weighted average remaining useful life of long-lived intangible assets			3 years
Acquired software licenses [Member]
Finite Lived Intangible Assets [Line Items]
Purchased Intangible Assets Net			$ 248,000	341,000
Intangible Assets Accumulated Amortization			2,100,000	3,700,000
Amortization expense			$ 196,000	$ 422,000	$ 744,000
Intangible Assets [Member]
Finite Lived Intangible Assets [Line Items]
Loss on goodwill and purchased intangible assets impairment	$ 7,300,000	$ 22,800,000

Goodwill (Details) - USD ($) $ in Thousands	12 Months Ended
Goodwill (Details) - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Changes in carrying amount of goodwill
Goodwill at January 1	$ 19,772
Goodwill impairment during the period	(49,521)	$ (3,277)	$ 0
Goodwill at end of period	0	19,772
M2M Products and Solutions [Member]
Changes in carrying amount of goodwill
Goodwill at January 1	19,772	22,258
Goodwill acquisition price adjustments, net of tax	0	791
Goodwill impairment during the period	(19,772)	(3,277)
Goodwill at end of period	$ 0	$ 19,772	$ 22,258

- Definition

Carrying amount as of the balance sheet date, which is the cumulative amount paid and (if applicable) the fair value of any noncontrolling interest in the acquiree, adjusted for any amortization recognized prior to the adoption of any changes in generally accepted accounting principles (as applicable) and for any impairment charges, in excess of the fair value of net assets acquired in one or more business combination transactions.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=14024403&loc=d3e13816-109267

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 45
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6388280&loc=d3e13770-109266

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 142
-Paragraph 45
-Subparagraph e
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 142
-Paragraph 43
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 141R
-Paragraph 72
-Subparagraph d
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 142
-Paragraph 45
-Subparagraph e
-Clause 1
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 141R
-Paragraph 68
-Subparagraph l
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 141R
-Paragraph 34
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Goodwill (Details Textual) - USD ($) $ in Thousands	3 Months Ended			12 Months Ended
Goodwill (Details Textual) - USD ($) $ in Thousands	Sep. 30, 2012	Mar. 31, 2012	Sep. 30, 2011	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Indefinite-lived Intangible Assets [Line Items]
Goodwill and intangible assets impairment				$ 49,521	$ 3,277	$ 0
Goodwill (Textual) [Abstract]
Impairments analyses				Sep. 30, 2012
Goodwill [Member]
Indefinite-lived Intangible Assets [Line Items]
Goodwill and intangible assets impairment	$ 13,200	$ 6,500	$ 3,300

Earnings Per Share (Details) - shares	12 Months Ended
Earnings Per Share (Details) - shares	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Earnings Per Share (Textual) [Abstract]
Weighted-average options RSUs, and unissued ESPP shares outstanding	5,793,000	4,657,000	3,675,000
Basic and Diluted weighted-average common and potential common shares outstanding	32,852,000	32,043,000	31,494,000

- Definition

Securities (including those issuable pursuant to contingent stock agreements) that could potentially dilute basic earnings per share (EPS) or earnings per unit (EPU) in the future that were not included in the computation of diluted EPS or EPU because to do so would increase EPS or EPU amounts or decrease loss per share or unit amounts for the period presented.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Antidilution
-URI http://asc.fasb.org/extlink&oid=6505113

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Diluted Earnings Per Share
-URI http://asc.fasb.org/extlink&oid=6510752

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Contingent Stock Agreement
-URI http://asc.fasb.org/extlink&oid=6508534

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 128
-Paragraph 40
-Subparagraph c
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 128
-Paragraph 13, 14
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Emerging Issues Task Force (EITF)
-Number 07-4
-Paragraph 4
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 128
-Paragraph 171
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Stockholders' Equity (Details) - shares shares in Thousands	Dec. 31, 2012	Dec. 31, 2011
Common Shares Reserved for Future Issuance
Total shares of common stock reserved for issuance	6,646	8,350
Stock options outstanding under the 2009 Omnibus Incentive Compensation Plan and previous plans [Member]
Common Shares Reserved for Future Issuance
Total shares of common stock reserved for issuance	4,282	4,481
Restricted stock units outstanding [Member]
Common Shares Reserved for Future Issuance
Total shares of common stock reserved for issuance	1,662	1,289
Future grants of awards under the 2009 Omnibus Incentive Compensation Plan [Member]
Common Shares Reserved for Future Issuance
Total shares of common stock reserved for issuance	702	1,493
Employee Stock Purchase Plan [Member]
Common Shares Reserved for Future Issuance
Total shares of common stock reserved for issuance	0	1,087

Stockholders' Equity (Details Textual) - $ / shares shares in Thousands	Dec. 31, 2012	Dec. 31, 2011
Stockholders' Equity (Textual) [Abstract]
Preferred stock, shares authorized	2,000	2,000
Preferred stock, shares outstanding	0	0
Preferred stock, shares issued	0
Preferred stock, par value	$ 0.001	$ 0.001

Stock Incentive and Employee Stock Purchase Plans (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Payment of share based compensation awards
Amounts for share-based compensation awards	$ 7,500	$ 5,983	$ 6,471
Cost of revenues [Member]
Payment of share based compensation awards
Amounts for share-based compensation awards	747	579	645
Research and development [Member]
Payment of share based compensation awards
Amounts for share-based compensation awards	3,042	2,088	2,368
Sales and marketing [Member]
Payment of share based compensation awards
Amounts for share-based compensation awards	1,403	1,254	1,164
General and administrative [Member]
Payment of share based compensation awards
Amounts for share-based compensation awards	$ 2,308	$ 2,062	$ 2,294

- Definition

Represents the expense recognized during the period arising from equity-based compensation arrangements (for example, shares of stock, unit, stock options or other equity instruments) with employees, directors and certain consultants qualifying for treatment as employees.

+ References + Details

Stock Incentive and Employee Stock Purchase Plans (Details 1)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Employee Stock Options [Member]
Fair values of stock options and ESPP rights granted under the 2009 Plan
Expected dividend yield:	0.00%	0.00%	0.00%
Risk-free interest rate:	0.90%	1.20%	2.20%
Volatility:	63.00%	69.00%	53.00%
Expected term (in years):	6 years	6 years	5 years 9 months 18 days
Employee Stock Purchase Rights [Member]
Fair values of stock options and ESPP rights granted under the 2009 Plan
Expected dividend yield:	0.00%	0.00%	0.00%
Risk-free interest rate:	0.20%	0.20%	0.50%
Volatility:	68.00%	63.00%	60.00%
Expected term (in years):	1 year 1 month 18 days	1 year 1 month 6 days	1 year 3 months 18 days

Stock Incentive and Employee Stock Purchase Plans (Details 2) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2012 USD ($) $ / shares shares
Summary of stock option activity
Stock Options outstanding December 31, 2011 \| shares	4,481
Stock Options outstanding, Granted \| shares	176
Stock Options outstanding, Exercised \| shares	0
Stock Options outstanding, Cancelled \| shares	(375)
Stock Options outstanding December 31, 2012 \| shares	4,282
Options Exercisable, December 31, 2012 \| shares	3,839
Weighted Average Exercise Price, December 31, 2011 \| $ / shares	$ 10.58
Weighted Average Exercise Price, Granted \| $ / shares	3.44
Weighted Average Exercise Price, Exercised \| $ / shares	0.00
Weighted Average Exercise Price, Cancelled \| $ / shares	10.99
Weighted Average Exercise Price, Balance December 31, 2012 \| $ / shares	10.25
Weighted Average Exercise Price, Options Exercisable, December 31, 2012 \| $ / shares	$ 10.80
Weighted Average Remaining Contractual Term, Option Outstanding Balance December 31, 2012	4 years 3 months 7 days
Weighted Average Remaining Contractual Term, Options Exercisable	3 years 10 months 24 days
Aggregate Intrinsic Value, Option Outstanding Balance December 31, 2012 \| $	$ 0
Aggregate Intrinsic Value, Option Exercisable, December 31, 2012 \| $	$ 0

Stock Incentive and Employee Stock Purchase Plans (Details 3) - Restricted Stock [Member] shares in Thousands	12 Months Ended
	Dec. 31, 2012 shares
Summary of restricted stock unit activity
Non-vested at December 31, 2011	1,289
Granted	1,016
Vested	(461)
Forfeited	(182)
Non-vested at December 31, 2012	1,662

Stock Incentive and Employee Stock Purchase Plans (Details Textual) - USD ($)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010	Nov. 15, 2010
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense related to non-vested RSUs	$ 1,000,000
Common stock, shares issued	33,655,000	32,262,000
Number of shares issued under the ESPP		163,142	514,540
Total intrinsic value of options exercised	$ 0
Total unrecognized share-based compensation cost				$ 316,000
Stock Incentive and Employee Stock Purchase plans (Textual) [Abstract]
Number of shares issue that the ESPP authorizes for purchase by eligible employees	1,250,111
Number of shares issued under the ESPP	1,086,837
Enfora [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of RSUs awarded to employees			235,900
Stock options outstanding under the 2009 Omnibus Incentive Compensation Plan and previous plans [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares of common stock issued upon the exercise of stock options	2,500,000
Duration of the options granted	10 years
Rate of exercisable	25.00%
Total intrinsic value of options exercised	$ 0	$ 28,000	$ 364,000
Total unrecognized share-based compensation cost	$ 1,400,000
Expected recognition period	1 year 7 months 6 days
Weighted average fair value of option awards granted	$ 1.97	$ 3.40	$ 3.62
Total fair value of awards recognized as expenses	$ 1,700,000	$ 2,700,000	$ 3,500,000
Stock options outstanding under the 2009 Omnibus Incentive Compensation Plan and previous plans [Member] \| New Hire [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Option granted	36 months
Stock options outstanding under the 2009 Omnibus Incentive Compensation Plan and previous plans [Member] \| Existing Employee [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Option granted	36 months
Restricted stock units outstanding [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of RSUs awarded to employees	1,015,638	903,214	620,236
Aggregate fair value of awards	$ 3,400,000	$ 4,900,000	$ 5,000,000
Unrecognized compensation expense related to non-vested RSUs	$ 6,200,000
Expected recognition period	1 year 7 months 6 days
Total fair value of awards recognized as expenses	$ 3,400,000	2,600,000	1,700,000
Employee Stock Purchase Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of lower limit value of common stock	85.00%
Maximum limit of payroll deductions	10.00%
Total fair value of awards recognized as expenses	$ 1,400,000	707,000	994,000
Amount received in cash through employee withholdings	$ 1,600,000	$ 470,000	$ 1,700,000
Maximum [Member] \| Restricted stock units outstanding [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Range of RSUs price at fair value	$ 3.58	$ 9.71	$ 9.76
Minimum [Member] \| Restricted stock units outstanding [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Range of RSUs price at fair value	$ 1.28	$ 3.06	$ 6.95

Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Summary of income taxes
To income	$ 611	$ (9,503)	$ 7,893
To stockholders' equity	10	240	277
Total income taxes	$ 621	$ (9,263)	$ 8,170

Income Taxes (Details 1) - USD ($) $ in Thousands	12 Months Ended
Income Taxes (Details 1) - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Summary of income (loss) before taxes
Domestic	$ (88,945)	$ (36,091)	$ (27,091)
Foreign	290	1,696	1,534
Loss before income taxes	$ (88,655)	$ (34,395)	$ (25,557)

Income Taxes (Details 2) - USD ($) $ in Thousands	12 Months Ended
Income Taxes (Details 2) - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Current:
Federal	$ 0	$ (10,786)	$ (3,602)
State	29	0	11
Foreign	74	84	43
Total Current	103	(10,702)	(3,548)
Deferred:
Federal	14	(114)	9,882
State	0	0	789
Foreign	494	1,313	770
Total Deferred	508	1,199	11,441
Provision (benefit) for income taxes	$ 611	$ (9,503)	$ 7,893

Income Taxes (Details 3) - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011
Deferred tax assets:
Accrued expenses	$ 6,271	$ 4,941
Inventory obsolescence provision	1,992	1,647
Depreciation and amortization	6,680	4,626
Deferred rent	892	409
Net operating loss and tax credit carryforwards	42,994	32,569
Stock-based compensation	6,069	5,662
Unrecognized tax benefits	613	439
Deferred tax assets	65,511	50,293
Deferred tax liabilities:
Amortization of acquired intangibles	(1,016)	(12,777)
Net deferred tax assets	64,495	37,516
Valuation allowance	(63,881)	(36,395)
Net deferred tax assets	$ 614	$ 1,121

Income Taxes (Details 4) - USD ($) $ in Thousands	12 Months Ended
Income Taxes (Details 4) - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Income before provision for Income Taxes
Federal tax benefit, at statutory rate	$ (30,142)	$ (11,694)	$ (8,690)
State benefit, net of federal benefit	(757)	(733)	(509)
Change in valuation allowance-current year	27,486	14,612	7,888
Change in valuation allowance-prior year deferreds	0	0	14,840
Tax expense/ (benefit) from business combination	0	909	(4,838)
Research and development credits	(856)	(1,731)	(2,044)
Share-based compensation	1,616	526	917
Merger fees	0	0	674
Uncertain tax positions	(46)	(11,809)	322
Goodwill impairment	3,700	596	0
Other	(390)	(179)	(667)
Provision (benefit) for income taxes	$ 611	$ (9,503)	$ 7,893

Income Taxes (Details 5) - USD ($) $ in Thousands	12 Months Ended
Income Taxes (Details 5) - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Reconciliation of the beginning and ending amounts of unrecognized tax benefits
Unrecognized Tax Benefits, Beginning Balance	$ 32,795	$ 41,386	$ 41,135
Increases related to current and prior year tax positions	475	899	251
Settlements and lapses in statutes of limitations	(50)	(9,490)	0
Unrecognized Tax Benefits, Ending Balance	$ 33,220	$ 32,795	$ 41,386

Income Taxes (Details Textual) - USD ($)	12 Months Ended
Income Taxes (Details Textual) - USD ($)	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Business Acquisition [Line Items]
U.S - based valuation allowance	$ 63,881,000	$ 36,395,000
Federal net operating loss carryforwards expire	2026 through 2032
Income Taxes (Textual) [Abstract]
Valuation allowance related to its U.S based deferred taxes	$ 27,500,000	14,600,000	$ 3,100,000
Research and Development Tax Credits	614,000
Valuation allowance prior to 2010	14,800,000
Deferred income tax expense related to the changes in the valuation allowances on deferred tax assets	$ 508,000	$ 1,199,000	$ 11,441,000
Statutory federal income tax rate	34.00%	34.00%	34.00%
Uncertain income tax position unrecognized	Less than a 50% likelihood
Settlements and lapses in statutes of limitations	$ (50,000)	$ (9,490,000)	$ 0
Associated interest due to expiration of the applicable statutes of limitations for certain tax years	5,000	2,300,000
Total liability for unrecognized tax benefits included other long-term liabilities	400,000	400,000
Recognized tax benefits that would affect the effective tax rate	100,000
Interest and penalties related to unrecognized tax benefits in the provision for income taxes	200,000	200,000
Expected unrecognized tax benefits due to expiration of limitations applicable to the 2008 taxable year	71,000
State and Local Jurisdiction [Member]
Business Acquisition [Line Items]
U.S. federal net operating loss carryforwards	91,200,000
Foreign Country [Member]
Business Acquisition [Line Items]
U.S - based valuation allowance	5,000,000	4,300,000
U.S. federal net operating loss carryforwards	$ 26,400,000
Federal net operating loss carryforwards expire	2014 through 2033
California research and development tax credit carryforwards	$ 6,100,000
Domestic Country [Member]
Business Acquisition [Line Items]
U.S - based valuation allowance	$ 58,900,000	$ 32,100,000
Federal net operating loss carryforwards expire	2027 through 2031
California research and development tax credit carryforwards	$ 3,000,000

Commitments and Contingencies (Details) $ in Thousands	Dec. 31, 2012 USD ($)
Minimum future lease payments under non-cancelable operating leases
2013	$ 3,613
2014	3,664
2015	2,930
2016	2,899
2017	356
Total minimum lease payments	$ 13,462

Commitments and Contingencies (Details Textual) - USD ($)	3 Months Ended			12 Months Ended
	Dec. 31, 2012	Sep. 30, 2012	Sep. 30, 2011	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Commitments and Contingencies (Additional Textual) [Abstract]
Net book value of assets held under capital leases	$ 0			$ 0	$ 52,000
Accumulated amortization cost	510,000			510,000	458,000
Outstanding borrowings under the credit facility	0			0
Amount borrowed against the facility	9,000,000	$ 5,000,000	$ 12,000,000
Present value of the net minimum lease payments	0			0
Rental expense under operating leases				4,500,000	$ 4,700,000	$ 3,500,000
Purchase commitments				103,300,000
Estimate of potential settlements on legal and indemnification matters	$ 645,000			$ 645,000
Borrowings under the facility interest rate	1.00%			1.00%
Cash equivalents and marketable securities held at bank	$ 20,100,000			$ 20,100,000
Company's borrowing limit under credit facility	$ 16,800,000			$ 16,800,000
September Fifteenth Two Thousand Eight [Member]
Commitments and Contingencies (Textual) [Abstract]
"Lawsuit" filed date				September 15, 2008
September Eighteenth Two Thousand Eight [Member]
Commitments and Contingencies (Textual) [Abstract]
"Lawsuit" filed date				September 18, 2008

Segment Information and Concentrations of Risk (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2011	Sep. 30, 2011	Jun. 30, 2011	Mar. 31, 2011	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Net revenues :
Net revenues	$ 70,675	$ 71,017	$ 102,446	$ 100,150	$ 109,794	$ 113,263	$ 118,021	$ 61,784	$ 344,288	$ 402,862	$ 338,942
Operating income (loss) :
Operating loss									(88,743)	(33,727)	(25,002)
Identifiable assets:
Identifiable assets	161,531				249,179				161,531	249,179
Mobile Computing Products [Member]
Net revenues :
Net revenues									312,508	358,106	332,464
Operating income (loss) :
Operating loss									(22,924)	(13,764)	(23,027)
Identifiable assets:
Identifiable assets	141,045				181,180				141,045	181,180
M2M Products and Solutions [Member]
Net revenues :
Net revenues									31,780	44,756	6,478
Operating income (loss) :
Operating loss									(65,819)	(19,963)	$ (1,975)
Identifiable assets:
Identifiable assets	$ 20,486				$ 67,999				$ 20,486	$ 67,999

Segment Information and Concentrations of Risk (Details 1) - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011
Assets By Geographic Concentration
Assets by Geographic Concentration, Total	$ 161,531	$ 249,179
United States [Member]
Assets By Geographic Concentration
Assets by Geographic Concentration, Total	157,661	243,030
Canada [Member]
Assets By Geographic Concentration
Assets by Geographic Concentration, Total	2,836	4,764
Europe, Latin America and Asia [Member]
Assets By Geographic Concentration
Assets by Geographic Concentration, Total	$ 1,034	$ 1,385

Segment Information and Concentrations of Risk (Details 2)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Net revenues by geographic region
Net revenues by geographic region	100.00%	100.00%	100.00%
United States and Canada [Member]
Net revenues by geographic region
Net revenues by geographic region	93.10%	93.50%	95.00%
Latin America [Member]
Net revenues by geographic region
Net revenues by geographic region	2.40%	0.00%	0.00%
Europe, Middle East and Africa [Member]
Net revenues by geographic region
Net revenues by geographic region	4.10%	4.00%	4.70%
Asia and Australia [Member]
Net revenues by geographic region
Net revenues by geographic region	0.40%	2.50%	0.30%

Segment Information and Concentrations of Risk (Details Textual)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Customer One [Member]
Segment Information and Concentrations of Risk (Textual) [Abstract]
Net Revenue, Percentage	57.50%	50.80%	55.70%
Total accounts receivable	20.70%	46.50%
Customer Two [Member]
Segment Information and Concentrations of Risk (Textual) [Abstract]
Net Revenue, Percentage		13.10%	21.80%
Total accounts receivable	18.50%	19.80%
Customer Three [Member]
Segment Information and Concentrations of Risk (Textual) [Abstract]
Total accounts receivable	11.50%

Retirement Savings Plan (Details) - USD ($)	12 Months Ended
Retirement Savings Plan (Details) - USD ($)	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Retirement Savings Plan (Textual) [Abstract]
Employer matching contributions vesting period	2 years
UNITED STATES [Member]
Defined Benefit Plan Disclosure [Line Items]
Employer matching contributions	$ 1,200,000	$ 1,100,000	$ 1,000,000
CANADA [Member]
Defined Benefit Plan Disclosure [Line Items]
Employer matching contributions	$ 232,000	$ 280,000	$ 236,000

Quarterly Financial Information (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2011	Sep. 30, 2011	Jun. 30, 2011	Mar. 31, 2011	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Income (Loss) from Operations before Extraordinary Items [Abstract]
Net revenues	$ 70,675	$ 71,017	$ 102,446	$ 100,150	$ 109,794	$ 113,263	$ 118,021	$ 61,784	$ 344,288	$ 402,862	$ 338,942
Gross profit	13,558	14,646	23,251	20,988	25,726	26,690	26,182	5,994	72,443	84,592	66,294
Net loss applicable to common stockholders	$ (14,912)	$ (31,933)	$ (4,500)	$ (37,921)	$ (3,404)	$ 4,498	$ (3,898)	$ (22,088)	$ (89,266)	$ (24,892)	$ (33,450)
Basic and diluted net loss per common share	$ (0.44)	$ (0.97)	$ (0.14)	$ (1.17)	$ (0.11)	$ 0.14	$ (0.12)	$ (0.69)	$ (2.72)	$ (0.78)	$ (1.06)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

+ Details

Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Allowance for Doubtful Accounts [Member]
Movement in Valuation Allowances and Reserves [Roll Forward]
Balance at Beginning of Year	$ 245	$ 228	$ 741
Additions Charged to Operations	439	41	141
Deductions from Reserves	57	24	654
Balance at End of Year	627	245	228
Warranty [Member]
Movement in Valuation Allowances and Reserves [Roll Forward]
Balance at Beginning of Year	1,525	2,279	3,039
Additions Charged to Operations	6,261	2,642	1,350
Deductions from Reserves	5,457	3,396	2,110
Balance at End of Year	2,329	1,525	2,279
Deferred Tax Asset Valuation Allowance [Member]
Movement in Valuation Allowances and Reserves [Roll Forward]
Balance at Beginning of Year	36,395	21,783	3,897
Additions Charged to Operations	27,486	14,612	22,724
Deductions from Reserves	0	0	4,838
Balance at End of Year	63,881	36,395	21,783
Sales Returns Allowance [Member]
Movement in Valuation Allowances and Reserves [Roll Forward]
Balance at Beginning of Year	545	346	303
Additions Charged to Operations	497	911	188
Deductions from Reserves	131	712	145
Balance at End of Year	$ 911	$ 545	$ 346