0001193125-14-094271 | 10-K | XBRL Viewer

Print Document View Excel Document

Document and Entity Information - USD ($)	12 Months Ended
Document and Entity Information - USD ($)	Dec. 31, 2013	Mar. 06, 2014	Jun. 30, 2013
Document And Entity Information [Abstract]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2013
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	FY
Trading Symbol	NVTL
Entity Registrant Name	NOVATEL WIRELESS INC
Entity Central Index Key	0001022652
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		34,192,139
Entity Public Float			$ 130,109,295

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2013	Dec. 31, 2012
Current assets:
Cash and cash equivalents	$ 2,911	$ 16,044
Marketable securities	16,612	38,064
Restricted marketable securities	2,566	0
Accounts receivable, net of allowance for doubtful accounts of $2,449 in 2013 and $627 in 2012	39,985	42,652
Inventories	27,793	39,016
Deferred tax assets, net	100	126
Prepaid expenses and other	5,662	4,829
Total current assets	95,629	140,731
Property and equipment, net of accumulated depreciation of $62,334 in 2013 and $59,702 in 2012	9,901	15,229
Marketable securities	3,443	1,201
Intangible assets, net of accumulated amortization of $12,983 in 2013 and $11,951 in 2012	2,131	3,163
Deferred tax assets, net	81	584
Other assets	280	623
Total assets	111,465	161,531
Current liabilities:
Accounts payable	24,538	45,732
Accrued expenses	23,271	27,800
Current portion of contingent loss for litigation	4,326	0
Short-term margin loan facility	2,566	0
Total current liabilities	54,701	73,532
Other long-term liabilities	1,848	2,552
Long-term portion of contingent loss for litigation	10,000	0
Total liabilities	66,549	76,084
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, 34,097 and 33,655 shares issued and outstanding at December 31, 2013 and 2012, respectively	34	34
Additional paid-in capital	441,368	438,477
Accumulated other comprehensive income	5	14
Accumulated deficit	(371,491)	(328,078)
Stockholders' equity before treasury stock	69,916	110,447
Treasury stock at cost; 2,436 common shares at December 31, 2013 and 2012	(25,000)	(25,000)
Total stockholders' equity	44,916	85,447
Total liabilities and stockholders' equity	$ 111,465	$ 161,531

Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Thousands	Dec. 31, 2013	Dec. 31, 2012
Statement Of Financial Position [Abstract]
Accounts receivable, net of allowance for doubtful accounts	$ 2,449	$ 627
Property and equipment, net of accumulated depreciation	62,334	59,702
Intangible assets, net of accumulated amortization	$ 12,983	$ 11,951
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	34,097	33,655
Common stock, shares outstanding	34,097	33,655
Treasury stock, shares	2,436	2,436

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Income Statement [Abstract]
Net revenues	$ 335,053	$ 344,288	$ 402,862
Cost of net revenues	266,759	271,845	318,270
Gross profit	68,294	72,443	84,592
Operating costs and expenses:
Research and development	48,246	60,422	61,392
Sales and marketing	20,898	27,501	29,830
General and administrative	24,179	22,668	21,600
Goodwill and intangible assets impairment	0	49,521	3,277
Amortization of purchased intangible assets	562	1,074	2,220
Contingent loss for litigation	14,326	0	0
Restructuring charges	3,304	0	0
Total operating costs and expenses	111,515	161,186	118,319
Operating loss	(43,221)	(88,743)	(33,727)
Other income (expense):
Interest income, net	113	291	384
Other expense, net	(222)	(203)	(1,052)
Loss before income taxes	(43,330)	(88,655)	(34,395)
Income tax (benefit) provision	83	611	(9,503)
Net loss	$ (43,413)	$ (89,266)	$ (24,892)
Net loss per share:
Basic and diluted	$ (1.28)	$ (2.72)	$ (0.78)
Weighted average shares used in computation of basic and diluted net loss per share:
Basic and diluted	33,948	32,852	32,043

Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Statement Of Income And Comprehensive Income [Abstract]
Net loss	$ (43,413)	$ (89,266)	$ (24,892)
Unrealized gain (loss) on cash equivalents and marketable securities, net of tax	(9)	22	(29)
Total comprehensive loss	$ (43,422)	$ (89,244)	$ (24,921)

- Definition

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

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Net Income
-URI http://asc.fasb.org/extlink&oid=6518256

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 230
-SubTopic 10
-Section 45
-Paragraph 28
-URI http://asc.fasb.org/extlink&oid=31042434&loc=d3e3602-108585

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 225
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04.19)
-URI http://asc.fasb.org/extlink&oid=6879464&loc=d3e573970-122913

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

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 225
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03.18)
-URI http://asc.fasb.org/extlink&oid=26872669&loc=d3e20235-122688

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 225
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04.22)
-URI http://asc.fasb.org/extlink&oid=6879464&loc=d3e573970-122913

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Other Comprehensive Income
-URI http://asc.fasb.org/extlink&oid=6519514

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=28358780&loc=d3e565-108580

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 03
-Paragraph 19
-Article 5

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 04
-Paragraph 20
-Article 9

+ Details

Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Treasury Stock [Member]	Accumulated Deficit [Member]	Accumulated Other Comprehensive Income (Loss) [Member]
Beginning Balance at Dec. 31, 2010	$ 185,403	$ 32	$ 424,270	$ (25,000)	$ (213,920)	$ 21
Beginning 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	$ 0	504	0	0	0
Exercise of stock options, vesting of restricted stock units and shares issued under employee stock purchase plan, shares		410
Taxes withheld on net settled vesting of restricted stock units	(700)	$ 0	(700)	0	0	0
Net tax effect from stock options exercised	(244)	0	(244)	0	0	0
Share-based compensation	5,983	0	5,983	0	0	0
Net loss	(24,892)	0	0	0	(24,892)	0
Other comprehensive income (loss)	(29)	0	0	0	0	(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	0	0	0
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)	$ 0	(433)	0	0	0
Share-based compensation	7,500	0	7,500	0	0	0
Net loss	(89,266)	0	0	0	(89,266)	0
Other comprehensive income (loss)	22	0	0	0	0	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
Exercise of stock options, vesting of restricted stock units and shares issued under employee stock purchase plan	102	$ 0	102	0	0	0
Exercise of stock options, vesting of restricted stock units and shares issued under employee stock purchase plan, shares		442
Taxes withheld on net settled vesting of restricted stock units	(654)	$ 0	(654)	0	0	0
Share-based compensation	3,443	0	3,443	0	0	0
Net loss	(43,413)	0	0	0	(43,413)	0
Other comprehensive income (loss)	(9)	0	0	0	0	(9)
Ending Balance at Dec. 31, 2013	$ 44,916	$ 34	$ 441,368	$ (25,000)	$ (371,491)	$ 5
Ending Balance, shares at Dec. 31, 2013		34,097

- 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, 2013	Dec. 31, 2012	Dec. 31, 2011
Cash flows from operating activities:
Net loss	$ (43,413)	$ (89,266)	$ (24,892)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	8,949	12,337	17,868
Loss on goodwill and purchased intangible assets impairment	0	49,521	3,277
Impairment loss on equipment, leasehold improvements and software license intangible assets	418	100	203
Provision for bad debts	1,936	439	40
Net impairment loss on marketable securities	0	39	346
Inventory provision	4,344	2,843	689
Share-based compensation expense	3,443	7,500	5,983
Contingent loss for litigation	14,326	0	0
Non-cash income tax expense (benefit)	220	462	(9,185)
Changes in assets and liabilities:
Accounts receivable	730	(6,242)	26,437
Inventories	6,879	420	122
Prepaid expenses and other assets	(489)	(1,237)	3,661
Accounts payable	(19,237)	(10,433)	(24,293)
Accrued expenses, income taxes, and other	(4,733)	3,638	(1,787)
Net cash used in operating activities	(26,627)	(29,879)	(1,531)
Cash flows from investing activities:
Purchases of property and equipment	(5,011)	(4,579)	(5,987)
Purchases of intangible assets	0	(104)	(284)
Purchases of marketable securities	(24,262)	(44,216)	(36,992)
Marketable securities maturities / sales	40,897	46,696	74,922
Net cash provided by (used in) investing activities	11,624	(2,203)	31,659
Cash flows from financing activities:
Proceeds from the issuance of short-term debt, net of issuance costs	20,300	14,000	12,000
Principal repayments of short-term debt	(17,734)	(14,000)	(12,000)
Principal payments under capital lease obligations	0	(46)	(109)
Proceeds from stock option exercises and ESPP net of taxes paid on vested restricted stock units	(552)	1,166	(196)
Net cash provided by (used in) financing activities	2,014	1,120	(305)
Effect of exchange rates on cash and cash equivalents	(144)	(63)	(129)
Net increase (decrease) in cash and cash equivalents	(13,133)	(31,025)	29,694
Cash and cash equivalents, beginning of period	16,044	47,069	17,375
Cash and cash equivalents, end of period	2,911	16,044	47,069
Cash paid during the year for:
Interest	65	17	8
Income taxes	121	104	112
Supplemental disclosures of non-cash investing activities:
Building rent incentives to fund leasehold improvements	359	0	1,869
Supplemental disclosures of non-cash financing activities:
Marketable equity securities received in settlement of note receivable	$ 0	$ 0	$ 386

Nature of Business and Significant Accounting Policies

12 Months Ended

Dec. 31, 2013

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.

Basis of Presentation

We have recently incurred operating losses and had a net loss of $43.4 million during the year ended December 31, 2013. As of December 31, 2013, we had available cash, cash equivalents and short-term marketable securities totaling $19.5 million, excluding $2.6 million of restricted marketable securities, and working capital of $40.9 million. Our ability to transition to attaining profitable operations is dependent upon achieving a level of revenues adequate to support our cost structure. If events or circumstances occur such that we do not meet our operating plan as expected, we may be required to reduce planned research and development activities, incur additional restructuring charges or reduce other operating expenses which could have an adverse impact on our ability to achieve our intended business objectives. We believe our working capital resources are sufficient to fund our operations through at least December 31, 2014.

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, litigation, provision for warranty costs, income taxes, share-based compensation expense and best estimate of selling price in a multiple element arrangement.

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. 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 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 the remaining one year useful life. Trade name is amortized on a straight-line basis over the remaining useful life of three 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, and $3.3 million of goodwill impairment losses during the years ended December 31, 2012, and 2011, respectively. As of December 31, 2012, all historical goodwill had been fully impaired.

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 No. 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, non essential software elements and/or essential software, 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 (BESP). Because the Company has neither VSOE nor TPE, revenue has been based on the Company’s BESP. 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 BESP are recognized in the period the revenue recognition criteria have been met.

Our process for determining its BESP 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, acceptance in the marketplace and internal pricing parameters. In addition, when developing BESPs 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, 2013, 2012, and 2011, 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 carryforwards. 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.

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 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 loss per share excludes dilution and is computed by dividing the net 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. For all periods presented, there is no difference in the number of shares used to calculate basic and diluted shares outstanding due to the Company’s net loss position.

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 Loss

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

Merger and Acquisition Activities in Prior Years

12 Months Ended

Dec. 31, 2013

Business Combinations [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, 2013, 2012, and 2011 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

- 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=25497992&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=25497992&loc=d3e1490-128463

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=25497992&loc=d3e1392-128463

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 30
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=7488404&loc=d3e7008-128479

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=25497992&loc=d3e1486-128463

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 30
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=7488404&loc=d3e6927-128479

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 20
-Section 50
-Paragraph 1
-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
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=25497992&loc=d3e1500-128463

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=25497992&loc=d3e1524-128463

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 30
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=7488404&loc=d3e7000-128479

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 20
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6910749&loc=d3e4922-128472

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 20
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6910749&loc=d3e4934-128472

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 20
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6910749&loc=d3e4926-128472

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=25497992&loc=d3e1383-128463

Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 30
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=7488404&loc=d3e6996-128479

+ Details

Fair Value Measurement of Assets and Liabilities

12 Months Ended

Dec. 31, 2013

Fair Value Disclosures [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, 2013, 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, 2013 (in thousands):


Description	Balance as of December 31, 2013		Level 1		Level 2
Assets:
Cash equivalents
US Treasury securities	$	487	$	0	$	487

Total cash equivalents		487		0		487

Short-term marketable securities:
Available-for-sale:
Government agency securities		2,351		0		2,351
Municipal bonds		2,829		0		2,829
Certificates of deposit		3,360		0		3,360
Corporate debentures / bonds		10,638		0		10,638

Total short-term marketable securities		19,178		0		19,178

Long-term marketable securities:
Available-for-sale:
Certificates of deposit		1,300		0		1,300
Corporate debentures / bonds		2,143		0		2,143

Total long-term marketable securities		3,443		0		3,443

Total financial assets	$	23,108	$	0	$	23,108


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

There were no transfers between Level 1 and Level 2 securities during the years ended December 31, 2013 and 2012. All of our long-term marketable debt securities had maturities of between one and two years in duration at December 31, 2013.

As of December 31, 2013 and 2012, the Company had no outstanding foreign currency exchange forward contracts.

For the years ended December 31, 2013, 2012 and 2011, the Company recorded gains of $0, $0, $8,000, respectively, on its Euro-denominated foreign exchange forward contracts. During the years ended December 31, 2013, 2012 and 2011, the Company recorded foreign currency losses on foreign currency denominated transactions of approximately $183,000, $51,000, and $836,000, respectively. The loss during the years ended December 31, 2013 and 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.

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

Financial Statement Details

12 Months Ended

Dec. 31, 2013

Organization Consolidation And Presentation Of Financial Statements [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, 2013	Maturity in Years		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Available-for-sale:
Government agency securities		1 or less	$	2,350	$	1	$	0	$	2,351
Municipal bonds		1 or less		2,828		1		0		2,829
Certificates of deposit		1 or less		3,360		0		0		3,360
Corporate debentures / bonds		1 or less		10,635		3		0		10,638

Total short-term marketable securities				19,173		5		0		19,178

Available-for-sale:
Certificates of deposit		1 to 2		1,300		0		0		1,300
Corporate debentures / bonds		1 to 2		2,143		0		0		2,143

Total long-term marketable securities				3,443		0		0		3,443

			$	22,616	$	5	$	0	$	22,621


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

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, 2013 and 2012, the Company recorded net unrealized gains of $5,000, and net unrealized gains of $24,000, 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, 2013, 2012 and 2011, the Company recorded an other-than-temporary loss of $0, $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,
	2013		2012
Finished goods	$	20,870	$	26,776
Raw materials and components		6,923		12,240

	$	27,793	$	39,016

Property and Equipment

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


	December 31,
	2013			2012
Test equipment	$	52,108		$	53,368
Computer equipment and purchased software		10,814			12,310
Product tooling		3,204			2,232
Furniture and fixtures		2,015			2,219
Leasehold improvements		4,094			4,802

		72,235			74,931
Less—accumulated depreciation and amortization		(62,334	)		(59,702	)

	$	9,901		$	15,229

For the years ended December 31, 2013, 2012 and 2011, the Company recorded $70,000, $100,000 and $70,000, 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 $7.9 million, $9.4 million and $11.1 million for the years ended December 31, 2013, 2012 and 2011, respectively.

Accrued Expenses

Accrued expenses consist of the following (in thousands):


	December 31,
	2013		2012
Royalties	$	4,243	$	4,349
Payroll and related expenses		4,828		7,788
Product warranty		2,244		2,329
Market development funds and price protection		3,059		2,147
Professional fees		1,040		1,549
Deferred revenue		2,999		4,630
Restructuring		610		0
Other		4,248		5,008

	$	23,271	$	27,800

Accrued Warranty Obligations

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


	2013			2012
Warranty liability at beginning of period	$	2,329		$	1,525
Additions charged to operations		5,055			6,261
Deductions from liability		(5,140	)		(5,457	)

Warranty liability at end of period	$	2,244		$	2,329

Intangible Assets

12 Months Ended

Dec. 31, 2013

Goodwill And Intangible Assets Disclosure [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,
	2013										2012
	Gross		Accumulated Amortization			Accumulated Impairment			Net		Gross		Accumulated Amortization			Impairment			Net
Developed technologies	$	26,000	$	(6,120	)	$	(19,547	)	$	333	$	26,000	$	(5,786	)	$	(19,547	)	$	667
Trade name		12,800		(2,665	)		(8,582	)		1,553		12,800		(2,147	)		(8,582	)		2,071
Other		3,720		(1,967	)		(1,620	)		133		3,720		(1,923	)		(1,620	)		177

Total amortizable purchased intangible assets	$	42,520	$	(10,752	)	$	(29,749	)	$	2,019	$	42,520	$	(9,856	)	$	(29,749	)	$	2,915

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,
	2013		2012
Cost of net revenues	$	334	$	1,623
General and administrative expenses		562		1,074

Total amortization expense	$	896	$	2,697

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
2014	$	895
2015		562
2016		562

Total	$	2,019

Additionally, at December 31, 2013 and 2012, the Company had net acquired software licenses of $112,000 and $248,000, respectively, net of accumulated amortization of $2.2 million and $2.1 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). There was no impairment loss recorded for the year ended December 31, 2013. 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.

Amortization expense relating to acquired software licenses was $113,000, $196,000 and $422,000 for the years ended December 31, 2013, 2012 and 2011, 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, 2013, the weighted average remaining useful life of the Company’s long-lived intangible assets including acquired software licenses is 2.1 years.

Goodwill

12 Months Ended

Dec. 31, 2013

Goodwill And Intangible Assets Disclosure [Abstract]

Goodwill

6.	Goodwill

As a result of goodwill impairment charges recorded during the twelve months ended December 31, 2012, the carrying amount of goodwill at December 31, 2013 and December 31, 2012 was zero. The carrying amount of goodwill at December 31, 2011 was $19.8 million.

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, $6.6 million and $3.3 million, respectively.

Earnings Per Share

12 Months Ended

Dec. 31, 2013

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, 2013, 2012 and 2011, basic and diluted weighted-average common shares outstanding were 33,948,000, 32,852,000 and 32,043,000, respectively.

Weighted average options, restricted stock units and ESPP shares to acquire a total of 4,424,000 shares, 5,793,000 shares and 4,657,000 shares of common stock for the years ended December 31, 2013, 2012 and 2011, 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, 2013

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, 2013 and 2012 as follows (in thousands):


	Shares
	2013		2012
Stock options outstanding under the 2009 Omnibus Incentive Compensation Plan and previous plans		3,933		4,282
Restricted stock units outstanding		1,108		1,662
Future grants of awards under the 2009 Omnibus Incentive Compensation Plan		3,668		702
Shares available under the Employee Stock Purchase Plan		1,500		0

Total shares of common stock reserved for issuance		10,209		6,646

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

+ 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=26873400&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=27010918&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=27012166&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=27012166&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 SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Paragraph d
-Article 4

Reference 15: 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 16: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 4
-Section E

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

Reference 18: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 4
-Section C

Reference 19: 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, 2013

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Stock Incentive and Employee Stock Purchase Plans

9.	Stock Incentive and Employee Stock Purchase Plans

During the year ended December 31, 2013, 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, 2013, 2012 and 2011, 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,
	2013		2012		2011
Cost of revenues	$	84	$	747	$	579
Research and development		1,114		3,042		2,088
Sales and marketing		669		1,403		1,254
General and administrative		1,576		2,308		2,062

Totals	$	3,443	$	7,500	$	5,983

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
	2013			2012			2011			2013			2012			2011
Expected dividend yield:		0	%		0	%		0	%		0	%		0	%		0	%
Risk-free interest rate:		0.8	%		0.9	%		1.2	%		0.0	%		0.2	%		0.2	%
Volatility:		63	%		63	%		69	%		0	%		68	%		63	%
Expected term (in years):		6.0			6.0			6.0			0.0			1.3			1.1

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, 2013 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, 2012		4,282		$	10.25
Granted		425			2.10
Exercised		(38	)		2.68
Cancelled		(736	)		10.21

Balance December 31, 2013		3,933		$	9.45		4.15	$	115

Options Exercisable, December 31, 2013		3,394		$	10.53		3.40	$	0

The total intrinsic value of options exercised to purchase common stock during the years ended December 31, 2013, 2012 and 2011 was approximately $44,000, $0 and $28,000, respectively. As of December 31, 2013, total unrecognized share-based compensation cost related to unvested stock options was $724,000, which is expected to be recognized over a weighted average period of approximately 1.9 years. The total fair value of option awards recognized as expense during the years ended December 31, 2013, 2012 and 2011 was approximately $818,000, $1.7 million and $2.7 million, respectively. The weighted average fair value of option awards granted during years ended December 31, 2013, 2012 and 2011 was $1.20, $1.97 and $3.40, 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 2013, the Compensation Committee of the Board of Directors, pursuant to the 2009 Plan, awarded employees a total of 447,703 RSUs at fair values ranging from $1.74 per share to $4.17 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 $900,000. 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 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.

A summary of restricted stock unit activity for the year ended December 31, 2013 is presented below (shares in thousands):


	Shares
Non-vested at December 31, 2012		1,662
Granted		448
Vested		(628	)
Forfeited		(374	)

Non-vested at December 31, 2013		1,108

As of December 31, 2013, there was $3.4 million of unrecognized compensation expense related to non-vested RSUs. That expense is expected to be recognized over a weighted average period of 1.9 years. The total fair value of RSUs recognized as expense during the years ended December 31, 2013, 2012 and 2011 was $2.6 million, $3.4 million and $2.6 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, 2013, 2012 and 2011, the Company issued 0 shares, 1,086,837 shares and 163,142 shares, respectively, under the ESPP. During the years ended December 31, 2013, 2012 and 2011, the Company received $0, $1.6 million and $470,000, 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, 2013, 2012 and 2011 was $0, $1.4 million and $707,000, respectively.

Income Taxes

12 Months Ended

Dec. 31, 2013

Income Tax Disclosure [Abstract]

Income Taxes

10.

Income Taxes

Total income taxes for the years ended December 31, 2013, 2012 and 2011 were allocated as follows (in thousands):


	Year Ended December 31,
	2013		2012		2011
To income	$	83	$	611	$	(9,503	)
To stockholders’ equity		0		10		240

Total income taxes	$	83	$	621	$	(9,263	)

Income (loss) before taxes for the years ended December 31, 2013, 2012 and 2011 is comprised of the following (in thousands):


	Year Ended December 31,
	2013			2012			2011
Domestic	$	(44,142	)	$	(88,945	)	$	(36,091	)
Foreign		812			290			1,696

Loss before taxes	$	(43,330	)	$	(88,655	)	$	(34,395	)

The provision (benefit) for income taxes for the years ended December 31, 2013, 2012 and 2011 is comprised of the following (in thousands):


	Year Ended December 31,
	2013			2012		2011
Current:
Federal	$	(248	)	$	0	$	(10,786	)
State		33			29		0
Foreign		(229	)		74		84

Total Current		(444	)		103		(10,702	)

Deferred:
Federal		53			14		(114	)
State		0			0		0
Foreign		474			494		1,313

Total Deferred		527			508		1,199

Provision (benefit) for income taxes	$	83		$	611	$	(9,503	)

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


	December 31,
	2013			2012
Deferred tax assets:
Accrued expenses	$	11,292		$	6,271
Inventory obsolescence provision		3,539			1,992
Depreciation and amortization		4,136			6,680
Deferred rent		559			892
Net operating loss and tax credit carryforwards		55,010			42,994
Stock-based compensation		4,518			6,069
Unrecognized tax benefits		1,190			613

Deferred tax assets		80,244			65,511
Deferred tax liabilities:
Amortization of acquired intangibles		(699	)		(1,016	)

Net deferred tax assets		79,545			64,495
Valuation allowance		(79,458	)		(63,881	)

Net deferred tax assets	$	87		$	614

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 carryforwards. 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.

During 2012 and 2013, the Company recognized valuation allowances of $27.5 million and $15.6 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, 2013, the deferred tax asset valuation allowance consisted of $74.7 million relating to the Company’s domestic deferred tax assets and $4.7 million related to the Company’s Canadian deferred tax assets. At December 31, 2012, the 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.

The net unreserved portion of the Company’s remaining deferred tax assets of $87,000 at December 31, 2013 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 2013, 2012 and 2011 to income (loss) before provision for income taxes as follows (in thousands):


	Year Ended December 31,
	2013			2012			2011
Federal tax benefit, at statutory rate	$	(14,732	)	$	(30,142	)	$	(11,694	)
State benefit, net of federal benefit		(922	)		(757	)		(733	)
Change in valuation allowance		15,577			27,486			14,612
Tax expense/(benefit) from business combination		0			0			909
Research and development credits		(1,084	)		(856	)		(1,731	)
Share-based compensation		2,433			1,616			526
Uncertain tax positions		(307	)		(46	)		(11,809	)
Goodwill impairment		0			3,700			596
Change in state apportionment		(767	)		0			0
Other		(115	)		(390	)		(179	)

	$	83		$	611		$	(9,503	)

At December 31, 2013, the Company has U.S. federal net operating loss carryforwards of approximately $116.3 million. Federal net operating loss carryforwards expire at various dates from 2026 through 2033. The Company has California net operating loss carryforwards of approximately $39.3 million, which expire at various dates from 2014 through 2033. The Company has California research and development tax credit carryforwards of approximately $5.0 million. The California tax credits have no expiration date. The Company also has federal research and development tax credit carryforwards of approximately $4.7 million. The federal tax credits expire at various dates from 2027 through 2032.

Pursuant to Internal Revenue Code (IRC) Sections 382 and 383, annual use of the Company’s net operating loss and research and development credit carryforwards may be limited in the event a cumulative change in ownership of more than 50% occurs within a three-year period. The Company has not completed an IRC Section 382/383 analysis regarding the limitation of net operating loss and research and development credit carryforwards. Due to the existence of the valuation allowance, future changes in the Company’s unrecognized tax benefits will not impact the Company’s effective tax rate.

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, 2013 and 2012, the Company recognized approximately $71,000 and $50,000, respectively, of income tax benefit plus $236,000 and $5,000, respectively, of associated interest due to expiration of the applicable statutes of limitations applicable to certain tax years. As of December 31, 2013 and 2012, the total liability for unrecognized tax benefits was $62,000 and $367,000, 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, 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
Increases related to current and prior year tax positions		2,653
Settlements and lapses in statutes of limitations		(373	)

Unrecognized tax benefits balance at December 31, 2013	$	35,500

Included in the balances of unrecognized tax benefits at December 31, 2013 are $62,000 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, 2013 and 2012, the Company recorded approximately $0 and $0.2 million, respectively, of accrued interest related to uncertain tax positions.

In the fourth quarter of 2014, the Company expects to release $62,000 of its liability for unrecognized tax benefits due to the expiration of the statute of limitations applicable to the 2009 taxable year.

The Company and its subsidiaries file U.S., state, and foreign income tax returns in jurisdictions with various statutes of limitations. In the fourth quarter of 2013, the Company reduced its uncertain tax liability by approximately $552,000, including a related interest accrual of approximately $236,000, due to the expiration of the statute of limitations applicable to the 2008 taxable year and the completion of its 2006 and 2007 state tax returns. The Company is also subject to various federal income tax examinations for the 2003 through 2012 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.

Commitments and Contingencies

12 Months Ended

Dec. 31, 2013

Commitments And Contingencies Disclosure [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, 2013 or 2012. At December 31, 2013 and 2012, assets held under capital leases had a net book value of $0, net of accumulated amortization of $510,000. The present value of the net minimum lease payments as of December 31, 2013 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 2013, 2012 and 2011 was $4.1 million, $4.5 million and $4.7 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, 2013 are as follows (in thousands):


For the Period Ending December 31,	Amount
2014	$	3,626
2015		3,417
2016		3,394
2017		806
2018		422
Thereafter		653

Total minimum lease payments	$	12,318

Committed Purchase Orders

The Company has entered into purchase commitments totaling approximately $52.0 million with certain contract manufacturers under which the Company has committed to buy a minimum amount of designated products between January 2014 and December 2014. 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 some 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 (the “Court) on behalf of alleged stockholders of the Company. On December 11, 2008, these lawsuits were consolidated into a single action and in May 2010, the consolidated lawsuits were captioned the case In re Novatel Wireless Securities Litigation (the “Litigation”). The Litigation is being pursued on behalf of persons who purchased the Company’s common stock between February 27, 2007 and September 15, 2008. As previously disclosed, on December 6, 2013, to avoid the costs, disruption and distraction of further litigation, legal counsel for the defendants entered into a binding Memorandum of Understanding (“MOU”) with legal counsel for the lead plaintiffs, reflecting a proposed agreement to settle the Litigation. The proposed agreement did not admit any liability and the Company and the individual defendants continue to deny any and all liability. Under the terms of the proposed settlement, the Company would pay $6 million in cash, $5 million in the Company’s common stock and a $5 million secured promissory note, to resolve all claims asserted in the Litigation on behalf of class members. A portion of the $6 million in cash would be funded by insurers for the Company. The $5 million in shares of the Company’s common stock would be unrestricted and freely tradable shares and either registered or exempt from registration at the time of issuance and distribution to class members, which would occur within 10 business days after the entry of a final order of approval by the Court. The $5 million secured note, with a 5% interest rate, would have a 30 month maturity and be secured by the Company’s accounts receivables. The Company has the right, at its sole option, to substitute cash for the note prior to the entry of final approval by the Court. The settlement is subject to the following conditions: (1) the funding by the Company of the settlement; (2) the Company’s right to terminate the settlement if an agreed upon portion of the class members deliver timely and valid requests for exclusion from the class; (3) entry of final judgment by the Court approving the settlement; and (4) satisfaction of waiver of all covenants in the MOU.

On March 7, 2014, the Court entered an order giving preliminary approval to the settlement. The Court set a hearing for June 20, 2014, for final approval of the settlement of the Litigation.

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 $14.3 million as of December 31, 2013 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, 2013, the Company had approximately $5.2 million in marketable securities held at this bank, and the Company’s unused borrowing capacity at December 31, 2013 under the credit facility was $1.8 million. Any monies borrowed and interest incurred are payable on demand, and there is no express expiration date to the credit facility. During the twelve months ended December 31, 2012, the Company borrowed $14.0 million against the facility and repaid the entire amount during the same period. During the twelve months ended December 31, 2013, the Company borrowed $20.3 million against the facility and had outstanding borrowings of $2.6 million under this facility at December 31, 2013. Under the terms of the credit facility, the bank may liquidate any of the Company’s cash equivalents or marketable securities held at any time in order to recoup the outstanding balance of the facility. Accordingly, a like amount of marketable equity securities have been classified by the Company as restricted marketable securities on the balance sheet at December 31, 2013. At December 31, 2013 the Company had no cash equivalents held at this bank.

Segment Information and Concentrations of Risk

12 Months Ended

Dec. 31, 2013

Segment Reporting [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,
	2013			2012			2011
Net revenues by reportable segment:
Mobile Computing Products	$	297,499		$	312,508		$	358,106
M2M Products and Solutions		37,554			31,780			44,756

Total	$	335,053		$	344,288		$	402,862

Operating loss:
Mobile Computing Products	$	(27,939	)	$	(22,924	)	$	(13,764	)
M2M Products and Solutions		(15,282	)		(65,819	)		(19,963	)

Total	$	(43,221	)	$	(88,743	)	$	(33,727	)


	Year Ended December 31,
	2013		2012
Identifiable assets by reportable segment:
Mobile Computing Products	$	96,516	$	141,045
M2M Products and Solutions		14,949		20,486

Total	$	111,465	$	161,531

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,
	2013		2012
United States	$	108,932	$	157,661
Canada		808		2,836
Europe, Latin America and Asia		1,725		1,034

	$	111,465	$	161,531

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


	Year Ended December 31,
	2013			2012			2011
United States and Canada		95.6	%		93.1	%		93.5	%
Latin America		0.8			2.4			0.0
Europe, Middle East and Africa		3.4			4.1			4.0
Asia and Australia		0.2			0.4			2.5

		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 58.0% of 2013 net revenues. One customer accounted for 57.5% of 2012 net revenues. Two customers accounted for 50.8% and 13.1% of 2011 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, 2013, the Company had three customers who accounted for 24.5%, 12.6% and 12.0% of total accounts receivable. At December 31, 2012, the Company had three customers who accounted for 20.7%, 18.5% and 11.5% 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
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9038-108599

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 33
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8971-108599

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 12
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8595-108599

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8380-108599

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8933-108599

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 26
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8844-108599

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 35
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8984-108599

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9031-108599

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9054-108599

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8538-108599

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 29
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8864-108599

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8924-108599

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8906-108599

+ Details

Retirement Savings Plan

12 Months Ended

Dec. 31, 2013

Compensation And Retirement Disclosure [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 $1.0 million, $1.2 million and $1.1 million for the years ended December 31, 2013, 2012 and 2011, 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 $157,000, $232,000 and $280,000 for the years ended December 31, 2013, 2012 and 2011, respectively.

Restructuring

12 Months Ended

Dec. 31, 2013

Restructuring And Related Activities [Abstract]

Restructuring

14.

Restructuring

In September 2013, the Company commenced certain restructuring initiatives including the closure of the Company’s development site in Calgary, Canada, and the consolidation of certain supply chain management activities, resulting in a reduction in force of 72 employees across all functional areas of the Company. During the year ended December 31, 2013, the Company recorded restructuring charges of $3.3 million consisting primarily of employee-related compensation charges, as well as expenses from vacating all or a portion of certain facilities in the United States, Canada and the United Kingdom in the fourth quarter of 2013. The restructuring charges for the year ended December 31, 2013 consisted of $2.3 million in employee severance costs and $1.0 million in facility exit related costs. Of the $3.3 million of restructuring charges for the year ended December 31, 2013, $3.1 million relates to the Mobile Computing Products segment, and $206,000 relates to the M2M Products and Solutions segment.

During the fourth quarter of 2013, as a result of the September 2013 restructuring initiatives, the Company exited its development site in Calgary, Canada, and a portion of its San Diego facility. The Company has not yet entered into sublease agreements for these facilities. The Company recorded $893,000 in restructuring expense in the fourth quarter of 2013 relating to exiting these facilities, which is included in operating expenses in the consolidated statement of operations. As of December 31, 2013, accrued liabilities relating to this restructuring totaled $881,000, which includes $424,000 of deferred rent previously recorded for these properties. Of the $1.5 million in facilities exit related costs, $348,000 relates to fixed asset impairments.

The Company accounts for facility exit costs in accordance with ASC 420 “Exit or Disposal Cost Obligations,” which requires that a liability for such costs be recognized and measured initially at fair value on the cease-use date based on remaining lease rentals, adjusted for the effects of any prepaid or deferred items recognized, reduced by the estimated sublease rentals that could be reasonably obtained even if it is not the intent to sublease.

The Company is required to estimate future sublease income and future net operating expenses of the facilities, among other expenses. The most significant of these estimates relate to the timing and extent of future sublease income which reduce lease obligations, and the probability for which the sublease income can be expected. The Company based estimates of sublease income, in part, on information from third party real estate experts, current market conditions and rental rates, an assessment of the time period over which reasonable estimates could be made, and the location of the respective facility, among other factors. Further adjustments to the facility exit liability accrual will be required in future periods if actual exit costs or sublease income differ from amounts currently expected. Exit costs the Company records under these provisions are neither associated with, nor do they benefit, continuing activities.

The following table sets forth activity in the restructuring liability for the year ended December 31, 2013, which is primarily comprised of employee severance costs (in thousands):


	Employee Severance Costs			Facility Exit Related Costs			Total
Balance at December 31, 2012	$	0		$	0		$	0
Accruals		2,273			1,455			3,728
Payments		(2,273	)		(574	)		(2,847	)

Balance at December 31, 2013	$	0		$	881		$	881

The balance of the restructuring liability at December 31, 2013 consists of $610,000 in short-term and $271,000 in long-term. The balance of the restructuring liability at December 31, 2013 is anticipated to be fully distributed by the end of the third quarter of 2017, at the expiration of our facility lease in Canada. We do not expect to incur significant additional expenses related to the September 2013 restructuring initiatives.

Subsequent Event

12 Months Ended

Dec. 31, 2013

Subsequent Events [Abstract]

Subsequent Event

15.

Subsequent Event

During February 2014, the Company commenced certain reduction in force initiatives as part of an overall plan to reduce annual operating costs. As a result of these reduction in force initiatives, the Company estimates it will incur employee-related compensation charges of approximately $0.8 million in the first quarter of 2014.

Quarterly Financial Information

12 Months Ended

Dec. 31, 2013

Quarterly Financial Information Disclosure [Abstract]

Quarterly Financial Information

16.

Quarterly Financial Information (Unaudited)

The following is a summary of unaudited quarterly results of operations for the years ended December 31, 2013 and 2012.


	Quarter
	First			Second			Third			Fourth
	(in thousands, except per share amounts)
2013:
Net revenues	$	85,921		$	91,124		$	92,673		$	65,335
Gross profit		16,848			19,024			20,383			12,039
Net loss applicable to common stockholders		(9,122	)		(7,892	)		(5,093	)		(21,306	)
Basic and diluted net loss per common share		(0.27	)		(0.23	)		(0.15	)		(0.63	)

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	)

Schedule II - Valuation and Qualifying Accounts

12 Months Ended

Dec. 31, 2013

Valuation And Qualifying Accounts [Abstract]

Schedule II - Valuation and Qualifying Accounts

SCHEDULE II

NOVATEL WIRELESS, INC.

Valuation and Qualifying Accounts

For the Years Ended December 31, 2013, 2012 and 2011 (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, 2013	$	627	$	1,936	$	114	$	2,449
December 31, 2012		245		439		57		627
December 31, 2011		228		41		24		245
Warranty:
December 31, 2013		2,329		5,055		5,140		2,244
December 31, 2012		1,525		6,261		5,457		2,329
December 31, 2011		2,279		2,642		3,396		1,525
Deferred Tax Asset Valuation Allowance:
December 31, 2013		63,881		15,577		0		79,458
December 31, 2012		36,395		27,486		0		63,881
December 31, 2011		21,783		14,612		0		36,395
Sales Returns and Allowances:
December 31, 2013		911		196		380		727
December 31, 2012		545		497		131		911
December 31, 2011		346		911		712		545

Nature of Business and Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2013
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation We have recently incurred operating losses and had a net loss of $43.4 million during the year ended December 31, 2013. As of December 31, 2013, we had available cash, cash equivalents and short-term marketable securities totaling $19.5 million, excluding $2.6 million of restricted marketable securities, and working capital of $40.9 million. Our ability to transition to attaining profitable operations is dependent upon achieving a level of revenues adequate to support our cost structure. If events or circumstances occur such that we do not meet our operating plan as expected, we may be required to reduce planned research and development activities, incur additional restructuring charges or reduce other operating expenses which could have an adverse impact on our ability to achieve our intended business objectives. We believe our working capital resources are sufficient to fund our operations through at least December 31, 2014.
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, litigation, provision for warranty costs, income taxes, share-based compensation expense and best estimate of selling price in a multiple element arrangement. 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. 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 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 the remaining one year useful life. Trade name is amortized on a straight-line basis over the remaining useful life of three 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, and $3.3 million of goodwill impairment losses during the years ended December 31, 2012, and 2011, respectively. As of December 31, 2012, all historical goodwill had been fully impaired.
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 No. 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, non essential software elements and/or essential software, 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 (BESP). Because the Company has neither VSOE nor TPE, revenue has been based on the Company’s BESP. 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 BESP are recognized in the period the revenue recognition criteria have been met. Our process for determining its BESP 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, acceptance in the marketplace and internal pricing parameters. In addition, when developing BESPs 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, 2013, 2012, and 2011, 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 carryforwards. 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.
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 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 loss per share excludes dilution and is computed by dividing the net 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. For all periods presented, there is no difference in the number of shares used to calculate basic and diluted shares outstanding due to the Company’s net loss position.
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 Loss	Comprehensive Loss Comprehensive loss consists of net earnings and unrealized gains and losses on available-for-sale securities.
Fair Value Measurement	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.
Segment Information	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.

Merger and Acquisition Activities in Prior Years (Tables)

12 Months Ended

Dec. 31, 2013

Business Combinations [Abstract]

Summary of Fair Value of Assets Acquired and Liabilities Assumed

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

Fair Value Measurement of Assets and Liabilities (Tables)

12 Months Ended

Dec. 31, 2013

Fair Value Disclosures [Abstract]

Summary of Company's Financial Instruments, Fair Value on a Recurring Basis


Description	Balance as of December 31, 2013		Level 1		Level 2
Assets:
Cash equivalents
US Treasury securities	$	487	$	0	$	487

Total cash equivalents		487		0		487

Short-term marketable securities:
Available-for-sale:
Government agency securities		2,351		0		2,351
Municipal bonds		2,829		0		2,829
Certificates of deposit		3,360		0		3,360
Corporate debentures / bonds		10,638		0		10,638

Total short-term marketable securities		19,178		0		19,178

Long-term marketable securities:
Available-for-sale:
Certificates of deposit		1,300		0		1,300
Corporate debentures / bonds		2,143		0		2,143

Total long-term marketable securities		3,443		0		3,443

Total financial assets	$	23,108	$	0	$	23,108


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

Financial Statement Details (Tables)

12 Months Ended

Dec. 31, 2013

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Summary of Marketable Securities Available-for-Sale

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


December 31, 2013	Maturity in Years		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Available-for-sale:
Government agency securities		1 or less	$	2,350	$	1	$	0	$	2,351
Municipal bonds		1 or less		2,828		1		0		2,829
Certificates of deposit		1 or less		3,360		0		0		3,360
Corporate debentures / bonds		1 or less		10,635		3		0		10,638

Total short-term marketable securities				19,173		5		0		19,178

Available-for-sale:
Certificates of deposit		1 to 2		1,300		0		0		1,300
Corporate debentures / bonds		1 to 2		2,143		0		0		2,143

Total long-term marketable securities				3,443		0		0		3,443

			$	22,616	$	5	$	0	$	22,621


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

Summary of Inventories

Inventories consist of the following (in thousands):


	December 31,
	2013		2012
Finished goods	$	20,870	$	26,776
Raw materials and components		6,923		12,240

	$	27,793	$	39,016

Summary of Property and Equipment

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


	December 31,
	2013			2012
Test equipment	$	52,108		$	53,368
Computer equipment and purchased software		10,814			12,310
Product tooling		3,204			2,232
Furniture and fixtures		2,015			2,219
Leasehold improvements		4,094			4,802

		72,235			74,931
Less—accumulated depreciation and amortization		(62,334	)		(59,702	)

	$	9,901		$	15,229

Summary of Accrued Expenses

Accrued expenses consist of the following (in thousands):


	December 31,
	2013		2012
Royalties	$	4,243	$	4,349
Payroll and related expenses		4,828		7,788
Product warranty		2,244		2,329
Market development funds and price protection		3,059		2,147
Professional fees		1,040		1,549
Deferred revenue		2,999		4,630
Restructuring		610		0
Other		4,248		5,008

	$	23,271	$	27,800

Summary of Accrued Warranty Obligations

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


	2013			2012
Warranty liability at beginning of period	$	2,329		$	1,525
Additions charged to operations		5,055			6,261
Deductions from liability		(5,140	)		(5,457	)

Warranty liability at end of period	$	2,244		$	2,329

Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2013

Goodwill And Intangible Assets Disclosure [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,
	2013										2012
	Gross		Accumulated Amortization			Accumulated Impairment			Net		Gross		Accumulated Amortization			Impairment			Net
Developed technologies	$	26,000	$	(6,120	)	$	(19,547	)	$	333	$	26,000	$	(5,786	)	$	(19,547	)	$	667
Trade name		12,800		(2,665	)		(8,582	)		1,553		12,800		(2,147	)		(8,582	)		2,071
Other		3,720		(1,967	)		(1,620	)		133		3,720		(1,923	)		(1,620	)		177

Total amortizable purchased intangible assets	$	42,520	$	(10,752	)	$	(29,749	)	$	2,019	$	42,520	$	(9,856	)	$	(29,749	)	$	2,915

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,
	2013		2012
Cost of net revenues	$	334	$	1,623
General and administrative expenses		562		1,074

Total amortization expense	$	896	$	2,697

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
2014	$	895
2015		562
2016		562

Total	$	2,019

Stockholders' Equity (Tables)

12 Months Ended

Dec. 31, 2013

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, 2013 and 2012 as follows (in thousands):


	Shares
	2013		2012
Stock options outstanding under the 2009 Omnibus Incentive Compensation Plan and previous plans		3,933		4,282
Restricted stock units outstanding		1,108		1,662
Future grants of awards under the 2009 Omnibus Incentive Compensation Plan		3,668		702
Shares available under the Employee Stock Purchase Plan		1,500		0

Total shares of common stock reserved for issuance		10,209		6,646

Stock Incentive and Employee Stock Purchase Plans (Tables)

12 Months Ended

Dec. 31, 2013

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Summary of Share-Based Compensation Expense


	Year Ended December 31,
	2013		2012		2011
Cost of revenues	$	84	$	747	$	579
Research and development		1,114		3,042		2,088
Sales and marketing		669		1,403		1,254
General and administrative		1,576		2,308		2,062

Totals	$	3,443	$	7,500	$	5,983

Summary of per Share Fair Values of Stock Options Granted under 2009 Plan and Rights Granted under 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
	2013			2012			2011			2013			2012			2011
Expected dividend yield:		0	%		0	%		0	%		0	%		0	%		0	%
Risk-free interest rate:		0.8	%		0.9	%		1.2	%		0.0	%		0.2	%		0.2	%
Volatility:		63	%		63	%		69	%		0	%		68	%		63	%
Expected term (in years):		6.0			6.0			6.0			0.0			1.3			1.1

Summary of Stock Option Activity

A summary of stock option activity for the year ended December 31, 2013 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, 2012		4,282		$	10.25
Granted		425			2.10
Exercised		(38	)		2.68
Cancelled		(736	)		10.21

Balance December 31, 2013		3,933		$	9.45		4.15	$	115

Options Exercisable, December 31, 2013		3,394		$	10.53		3.40	$	0

Summary of Restricted Stock Unit Activity

A summary of restricted stock unit activity for the year ended December 31, 2013 is presented below (shares in thousands):


	Shares
Non-vested at December 31, 2012		1,662
Granted		448
Vested		(628	)
Forfeited		(374	)

Non-vested at December 31, 2013		1,108

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Income Tax Disclosure [Abstract]

Summary of Income Taxes

Total income taxes for the years ended December 31, 2013, 2012 and 2011 were allocated as follows (in thousands):


	Year Ended December 31,
	2013		2012		2011
To income	$	83	$	611	$	(9,503	)
To stockholders’ equity		0		10		240

Total income taxes	$	83	$	621	$	(9,263	)

Summary of Income (Loss) before Taxes

Income (loss) before taxes for the years ended December 31, 2013, 2012 and 2011 is comprised of the following (in thousands):


	Year Ended December 31,
	2013			2012			2011
Domestic	$	(44,142	)	$	(88,945	)	$	(36,091	)
Foreign		812			290			1,696

Loss before taxes	$	(43,330	)	$	(88,655	)	$	(34,395	)

Summary of Provision (Benefit) for Income Taxes

The provision (benefit) for income taxes for the years ended December 31, 2013, 2012 and 2011 is comprised of the following (in thousands):


	Year Ended December 31,
	2013			2012		2011
Current:
Federal	$	(248	)	$	0	$	(10,786	)
State		33			29		0
Foreign		(229	)		74		84

Total Current		(444	)		103		(10,702	)

Deferred:
Federal		53			14		(114	)
State		0			0		0
Foreign		474			494		1,313

Total Deferred		527			508		1,199

Provision (benefit) for income taxes	$	83		$	611	$	(9,503	)

Summary of Net Deferred Tax Assets

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


	December 31,
	2013			2012
Deferred tax assets:
Accrued expenses	$	11,292		$	6,271
Inventory obsolescence provision		3,539			1,992
Depreciation and amortization		4,136			6,680
Deferred rent		559			892
Net operating loss and tax credit carryforwards		55,010			42,994
Stock-based compensation		4,518			6,069
Unrecognized tax benefits		1,190			613

Deferred tax assets		80,244			65,511
Deferred tax liabilities:
Amortization of acquired intangibles		(699	)		(1,016	)

Net deferred tax assets		79,545			64,495
Valuation allowance		(79,458	)		(63,881	)

Net deferred tax assets	$	87		$	614

Summary of Provision (Benefit) for Income Taxes Reconciles to Amount Computed by Applying Statutory Federal Income Tax Rate


	Year Ended December 31,
	2013			2012			2011
Federal tax benefit, at statutory rate	$	(14,732	)	$	(30,142	)	$	(11,694	)
State benefit, net of federal benefit		(922	)		(757	)		(733	)
Change in valuation allowance		15,577			27,486			14,612
Tax expense/(benefit) from business combination		0			0			909
Research and development credits		(1,084	)		(856	)		(1,731	)
Share-based compensation		2,433			1,616			526
Uncertain tax positions		(307	)		(46	)		(11,809	)
Goodwill impairment		0			3,700			596
Change in state apportionment		(767	)		0			0
Other		(115	)		(390	)		(179	)

	$	83		$	611		$	(9,503	)

Reconciliation of 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, 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
Increases related to current and prior year tax positions		2,653
Settlements and lapses in statutes of limitations		(373	)

Unrecognized tax benefits balance at December 31, 2013	$	35,500

Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2013

Commitments And Contingencies Disclosure [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, 2013 are as follows (in thousands):


For the Period Ending December 31,	Amount
2014	$	3,626
2015		3,417
2016		3,394
2017		806
2018		422
Thereafter		653

Total minimum lease payments	$	12,318

Segment Information and Concentrations of Risk (Tables)

12 Months Ended

Dec. 31, 2013

Segment Reporting [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,
	2013			2012			2011
Net revenues by reportable segment:
Mobile Computing Products	$	297,499		$	312,508		$	358,106
M2M Products and Solutions		37,554			31,780			44,756

Total	$	335,053		$	344,288		$	402,862

Operating loss:
Mobile Computing Products	$	(27,939	)	$	(22,924	)	$	(13,764	)
M2M Products and Solutions		(15,282	)		(65,819	)		(19,963	)

Total	$	(43,221	)	$	(88,743	)	$	(33,727	)


	Year Ended December 31,
	2013		2012
Identifiable assets by reportable segment:
Mobile Computing Products	$	96,516	$	141,045
M2M Products and Solutions		14,949		20,486

Total	$	111,465	$	161,531

Schedule of Geographic Concentration of Assets


	Year Ended December 31,
	2013		2012
United States	$	108,932	$	157,661
Canada		808		2,836
Europe, Latin America and Asia		1,725		1,034

	$	111,465	$	161,531

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,
	2013			2012			2011
United States and Canada		95.6	%		93.1	%		93.5	%
Latin America		0.8			2.4			0.0
Europe, Middle East and Africa		3.4			4.1			4.0
Asia and Australia		0.2			0.4			2.5

		100.0	%		100.0	%		100.0	%

Restructuring (Tables)

12 Months Ended

Dec. 31, 2013

Restructuring And Related Activities [Abstract]

Summary of Restructuring Liability

The following table sets forth activity in the restructuring liability for the year ended December 31, 2013, which is primarily comprised of employee severance costs (in thousands):


	Employee Severance Costs			Facility Exit Related Costs			Total
Balance at December 31, 2012	$	0		$	0		$	0
Accruals		2,273			1,455			3,728
Payments		(2,273	)		(574	)		(2,847	)

Balance at December 31, 2013	$	0		$	881		$	881

Quarterly Financial Information (Tables)

12 Months Ended

Dec. 31, 2013

Quarterly Financial Information Disclosure [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, 2013 and 2012.


	Quarter
	First			Second			Third			Fourth
	(in thousands, except per share amounts)
2013:
Net revenues	$	85,921		$	91,124		$	92,673		$	65,335
Gross profit		16,848			19,024			20,383			12,039
Net loss applicable to common stockholders		(9,122	)		(7,892	)		(5,093	)		(21,306	)
Basic and diluted net loss per common share		(0.27	)		(0.23	)		(0.15	)		(0.63	)

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	)

Nature of Business and Significant Accounting Policies - Additional Information (Detail) - USD ($)	3 Months Ended									12 Months Ended
	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Sep. 30, 2011	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Nature Of Business And Significant Accounting Policies [Line Items]
Net loss	$ (21,306,000)	$ (5,093,000)	$ (7,892,000)	$ (9,122,000)	$ (14,912,000)	$ (31,933,000)	$ (4,500,000)	$ (37,921,000)		$ (43,413,000)	$ (89,266,000)	$ (24,892,000)
Cash, cash equivalents and short-term marketable securities	19,500,000									19,500,000
Restricted marketable securities	2,566,000				$ 0					2,566,000	0
Working capital	$ 40,900,000									$ 40,900,000
Maturity period of cash and cash equivalents										3 months
Maturity period of marketable securities										3 months
Goodwill impairment						$ 13,200,000		$ 6,600,000	$ 3,300,000		19,800,000	3,300,000
Revenue recognition										$ 0	$ 0	$ 0
Recognized income tax position										50.00%
Developed technologies [Member]
Nature Of Business And Significant Accounting Policies [Line Items]
Period of amortization										1 year
Trade name [Member]
Nature Of Business And Significant Accounting Policies [Line Items]
Period of amortization										3 years
Minimum [Member]
Nature Of Business And Significant Accounting Policies [Line Items]
Property and equipment useful lives										18 months
Period of warranty										1 year
Maximum [Member]
Nature Of Business And Significant Accounting Policies [Line Items]
Property and equipment useful lives										5 years
Period of warranty										3 years

Merger and Acquisition Activities in Prior Years - Additional Information (Detail) - Enfora [Member] - USD ($)	9 Months Ended	12 Months Ended	15 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2011	Sep. 30, 2011	Mar. 31, 2011	Nov. 30, 2010
Business Acquisition [Line Items]
Acquisition costs related to the merger of Enfora		$ 1,900,000
Cash consideration paid in exchange for an agreed upon amount of Enfora working capital		64,500,000
Additional cash consideration paid in exchange for an agreed upon amount of Enfora working capital		13,000,000
Additional cash consideration paid based on the operating results of Enfora		6,000,000
Operating results contingent consideration			15 months
Fair value of the contingent consideration					$ 0	$ 900,000
Total fair value of consideration transferred		$ 78,400,000
Changes in the fair value of the contingent consideration	$ 0
Adjustment to increase Enfora net deferred tax assets				$ 300,000

Merger and Acquisition Activities in Prior Years - Summary of Fair Value of Assets Acquired and Liabilities Assumed (Detail) - USD ($) $ in Thousands	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011	Nov. 30, 2010
Business Acquisition [Line Items]
Goodwill	$ 0	$ 0	$ 19,800
Enfora [Member]
Business Acquisition [Line Items]
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 - Summary of Company's Financial Instruments, Fair Value on a Recurring Basis (Detail) - USD ($) $ in Thousands	Dec. 31, 2013	Dec. 31, 2012
Fair Value, Measurements, Recurring [Member]
Cash equivalents
Total cash equivalents	$ 487	$ 3,476
Available-for-sale:
Total short-term marketable securities	19,178	38,064
Total long-term marketable securities	3,443	1,201
Total financial assets	23,108	42,741
Fair Value, Measurements, Recurring [Member] \| Government agency securities [Member]
Available-for-sale:
Total short-term marketable securities	2,351	3,266
Fair Value, Measurements, Recurring [Member] \| Municipal bonds [Member]
Available-for-sale:
Total short-term marketable securities	2,829	11,260
Fair Value, Measurements, Recurring [Member] \| Certificates of deposit [Member]
Available-for-sale:
Total short-term marketable securities	3,360	6,205
Total long-term marketable securities	1,300	1,201
Fair Value, Measurements, Recurring [Member] \| Corporate debentures / bonds [Member]
Available-for-sale:
Total short-term marketable securities	10,638	17,333
Total long-term marketable securities	2,143
Fair Value, Measurements, Recurring [Member] \| US Treasury securities [Member]
Cash equivalents
Total cash equivalents	487	3,429
Fair Value, Measurements, Recurring [Member] \| Money market funds [Member]
Cash equivalents
Total cash equivalents		47
Level 1 [Member]
Cash equivalents
Total cash equivalents	0	47
Available-for-sale:
Total short-term marketable securities	0	0
Total long-term marketable securities	0	0
Total financial assets	0	47
Level 1 [Member] \| Government agency securities [Member]
Available-for-sale:
Total short-term marketable securities	0	0
Level 1 [Member] \| Municipal bonds [Member]
Available-for-sale:
Total short-term marketable securities	0	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
Total long-term marketable securities	0
Level 1 [Member] \| US Treasury securities [Member]
Cash equivalents
Total cash equivalents	0	0
Level 1 [Member] \| Money market funds [Member]
Cash equivalents
Total cash equivalents		47
Level 2 [Member]
Cash equivalents
Total cash equivalents	487	3,429
Available-for-sale:
Total short-term marketable securities	19,178	38,064
Total long-term marketable securities	3,443	1,201
Total financial assets	23,108	42,694
Level 2 [Member] \| Government agency securities [Member]
Available-for-sale:
Total short-term marketable securities	2,351	3,266
Level 2 [Member] \| Municipal bonds [Member]
Available-for-sale:
Total short-term marketable securities	2,829	11,260
Level 2 [Member] \| Certificates of deposit [Member]
Available-for-sale:
Total short-term marketable securities	3,360	6,205
Total long-term marketable securities	1,300	1,201
Level 2 [Member] \| Corporate debentures / bonds [Member]
Available-for-sale:
Total short-term marketable securities	10,638	17,333
Total long-term marketable securities	2,143
Level 2 [Member] \| US Treasury securities [Member]
Cash equivalents
Total cash equivalents	$ 487	3,429
Level 2 [Member] \| Money market funds [Member]
Cash equivalents
Total cash equivalents		$ 0

Fair Value Measurement of Assets and Liabilities - Additional Information (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Foreign currency exchange forward contracts outstanding	$ 0	$ 0
Euro-denominated foreign exchange forward contracts gain	0	0	$ 8,000
Foreign currency losses on foreign currency denominated transactions	$ 183,000	$ 51,000	$ 836,000
Minimum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long term marketable debt securities maturity period	1 year
Maximum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long term marketable debt securities maturity period	2 years

Financial Statement Details - Summary of Marketable Securities Available-for-Sale (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	$ 22,616	$ 39,241
Gross Unrealized Gains	5	24
Gross Unrealized Losses	0	0
Estimated Fair Value	22,621	39,265
Short-term marketable securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	19,173	38,041
Gross Unrealized Gains	5	23
Gross Unrealized Losses	0	0
Estimated Fair Value	19,178	38,064
Long-term marketable securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	3,443	1,200
Gross Unrealized Gains	0	1
Gross Unrealized Losses	0	0
Estimated Fair Value	$ 3,443	$ 1,201
Government agency securities [Member] \| Short-term marketable securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Maturity in Years	1 or less	1 or less
Amortized Cost	$ 2,350	$ 3,265
Gross Unrealized Gains	1	1
Gross Unrealized Losses	0	0
Estimated Fair Value	$ 2,351	$ 3,266
Municipal bonds [Member] \| Short-term marketable securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Maturity in Years	1 or less	1 or less
Amortized Cost	$ 2,828	$ 11,246
Gross Unrealized Gains	1	14
Gross Unrealized Losses	0	0
Estimated Fair Value	$ 2,829	$ 11,260
Certificates of deposit [Member] \| Short-term marketable securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Maturity in Years	1 or less	1 or less
Amortized Cost	$ 3,360	$ 6,200
Gross Unrealized Gains	0	5
Gross Unrealized Losses	0	0
Estimated Fair Value	$ 3,360	$ 6,205
Certificates of deposit [Member] \| Long-term marketable securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Maturity in Years	1 to 2	1 to 2
Amortized Cost	$ 1,300	$ 1,200
Gross Unrealized Gains	0	1
Gross Unrealized Losses	0	0
Estimated Fair Value	$ 1,300	$ 1,201
Corporate debentures / bonds [Member] \| Short-term marketable securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Maturity in Years	1 or less	1 or less
Amortized Cost	$ 10,635	$ 17,330
Gross Unrealized Gains	3	3
Gross Unrealized Losses	0	0
Estimated Fair Value	$ 10,638	$ 17,333
Corporate debentures / bonds [Member] \| Long-term marketable securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Maturity in Years	1 to 2
Amortized Cost	$ 2,143
Gross Unrealized Gains	0
Gross Unrealized Losses	0
Estimated Fair Value	$ 2,143

Financial Statement Details - Additional Information (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Condensed Financial Information Of Parent Company Only Disclosure [Abstract]
Net unrealized gains (losses)	$ 5,000	$ 24,000
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	0	38,000	347,000
Property and equipment	70,000	100,000	70,000
Depreciation and amortization expense	$ 7,900,000	$ 9,400,000	$ 11,100,000

- 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)
-URI http://asc.fasb.org/extlink&oid=6955306&loc=d3e611133-123010

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 946
-SubTopic 320
-Section S99
-Paragraph 4
-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
-Publisher FASB
-Name Accounting Standards Codification
-Topic 946
-SubTopic 320
-Section S99
-Paragraph 6
-Subparagraph (SX 210.12-14.Column E.2,3)
-URI http://asc.fasb.org/extlink&oid=6955306&loc=d3e611322-123010

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 946
-SubTopic 320
-Section S99
-Paragraph 5
-Subparagraph (SX 210.12-13.Column C.6)
-URI http://asc.fasb.org/extlink&oid=6955306&loc=d3e611282-123010

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
-Article 12

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 13
-Paragraph 6
-Article 12

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 12C
-Paragraph 7
-Article 12

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 14
-Paragraph Column E
-Article 12

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 13
-Paragraph Column C
-Article 12

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

+ Details

Financial Statement Details - Summary of Inventories (Detail) - USD ($) $ in Thousands	Dec. 31, 2013	Dec. 31, 2012
Inventory Disclosure [Abstract]
Finished goods	$ 20,870	$ 26,776
Raw materials and components	6,923	12,240
Total inventory	$ 27,793	$ 39,016

Financial Statement Details - Summary of Property and Equipment (Detail) - USD ($) $ in Thousands	Dec. 31, 2013	Dec. 31, 2012
Property, Plant and Equipment [Line Items]
Property and equipment, Gross	$ 72,235	$ 74,931
Less-accumulated depreciation and amortization	(62,334)	(59,702)
Property and equipment, Net	9,901	15,229
Test equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, Gross	52,108	53,368
Computer equipment and purchased software [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, Gross	10,814	12,310
Product tooling [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, Gross	3,204	2,232
Furniture and fixtures [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, Gross	2,015	2,219
Leasehold improvements [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, Gross	$ 4,094	$ 4,802

Financial Statement Details - Summary of Accrued Expenses (Detail) - USD ($) $ in Thousands	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Payables And Accruals [Abstract]
Royalties	$ 4,243	$ 4,349
Payroll and related expenses	4,828	7,788
Product warranty	2,244	2,329	$ 1,525
Market development funds and price protection	3,059	2,147
Professional fees	1,040	1,549
Deferred revenue	2,999	4,630
Restructuring	610	0
Other	4,248	5,008
Accrued expenses, Total	$ 23,271	$ 27,800

Financial Statement Details - Summary of Accrued Warranty Obligations (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Guarantees [Abstract]
Warranty liability at beginning of period	$ 2,329	$ 1,525
Additions charged to operations	5,055	6,261
Deductions from liability	(5,140)	(5,457)
Warranty liability at end of period	$ 2,244	$ 2,329

Intangible Assets - Schedule of Amortizable Purchased Intangible Assets from Acquisition (Detail) - USD ($) $ in Thousands	Dec. 31, 2013	Dec. 31, 2012
Finite-Lived Intangible Assets [Line Items]
Gross	$ 42,520	$ 42,520
Accumulated Amortization	(10,752)	(9,856)
Accumulated Impairment	(29,749)	(29,749)
Net	2,019	2,915
Developed technologies [Member]
Finite-Lived Intangible Assets [Line Items]
Gross	26,000	26,000
Accumulated Amortization	(6,120)	(5,786)
Accumulated Impairment	(19,547)	(19,547)
Net	333	667
Trade name [Member]
Finite-Lived Intangible Assets [Line Items]
Gross	12,800	12,800
Accumulated Amortization	(2,665)	(2,147)
Accumulated Impairment	(8,582)	(8,582)
Net	1,553	2,071
Other [Member]
Finite-Lived Intangible Assets [Line Items]
Gross	3,720	3,720
Accumulated Amortization	(1,967)	(1,923)
Accumulated Impairment	(1,620)	(1,620)
Net	$ 133	$ 177

Intangible Assets - Summary of Amortization Expenses of Purchased Intangible Assets (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Finite-Lived Intangible Assets [Line Items]
Amortization of purchased intangible assets	$ 562	$ 1,074	$ 2,220
Cost of net revenues [Member]
Finite-Lived Intangible Assets [Line Items]
Amortization of purchased intangible assets	334	1,623
General and administrative expenses [Member]
Finite-Lived Intangible Assets [Line Items]
Amortization of purchased intangible assets	562	1,074
Total amortization expense [Member]
Finite-Lived Intangible Assets [Line Items]
Amortization of purchased intangible assets	$ 896	$ 2,697

Intangible Assets - Schedule of Amortization Expense of Purchased Intangible Assets Expected to be Recognized (Detail) - USD ($) $ in Thousands	Dec. 31, 2013	Dec. 31, 2012
Goodwill And Intangible Assets Disclosure [Abstract]
2014	$ 895
2015	562
2016	562
Net	$ 2,019	$ 2,915

Intangible Assets - Additional Information (Detail) - USD ($)	3 Months Ended		12 Months Ended
	Sep. 30, 2012	Mar. 31, 2012	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Finite-Lived Intangible Assets [Line Items]
Purchased intangible assets net			$ 2,131,000	$ 3,163,000
Intangible assets accumulated amortization			12,983,000	11,951,000
Impairment loss			0	49,521,000	$ 3,277,000
Amortization expense			$ 562,000	1,074,000	2,220,000
Weighted average remaining useful life of long-lived intangible assets			2 years 1 month 6 days
Acquired software licenses [Member]
Finite-Lived Intangible Assets [Line Items]
Purchased intangible assets net			$ 112,000	248,000
Intangible assets accumulated amortization			2,200,000	2,100,000
Amortization expense			113,000	$ 196,000	422,000
Intangible assets [Member]
Finite-Lived Intangible Assets [Line Items]
Impairment loss	$ 7,300,000	$ 22,800,000	0		$ 3,277,000
Deduction on impairment charges			$ 300,000

Goodwill - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended			12 Months Ended
	Sep. 30, 2012	Mar. 31, 2012	Sep. 30, 2011	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2013
Goodwill And Intangible Assets Disclosure [Abstract]
Carrying amount of goodwill				$ 0.0	$ 19.8	$ 0.0
Goodwill impairment charges	$ 13.2	$ 6.6	$ 3.3	$ 19.8	$ 3.3

Earnings Per Share - Additional Information (Detail) - shares	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Equity [Abstract]
Basic and Diluted weighted-average common and potential common shares outstanding	33,948,000	32,852,000	32,043,000
Weighted-average options RSUs, and ESPP shares outstanding	4,424,000	5,793,000	4,657,000

Stockholders' Equity - Additional Information (Detail) - $ / shares	Dec. 31, 2013	Dec. 31, 2012
Stockholders Equity Note [Abstract]
Preferred stock, shares authorized	2,000,000	2,000,000
Preferred stock, shares outstanding	0	0
Preferred stock, shares issued	0	0
Preferred stock, par value	$ 0.001	$ 0.001

Stockholders' Equity - Summary of Common Shares Reserved for Future Issuance (Detail) - shares shares in Thousands	Dec. 31, 2013	Dec. 31, 2012
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total shares of common stock reserved for issuance	10,209	6,646
Employee Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total shares of common stock reserved for issuance	3,933	4,282
Restricted stock units outstanding [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total shares of common stock reserved for issuance	1,108	1,662
Future grants of awards under the 2009 Omnibus Incentive Compensation Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total shares of common stock reserved for issuance	3,668	702
Employee Stock Purchase Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total shares of common stock reserved for issuance	1,500	0

Stock Incentive and Employee Stock Purchase Plans - Additional Information (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011	Sep. 08, 2011	Nov. 15, 2010
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total intrinsic value of options exercised	$ 0
Total fair value of option awards recognized as expense	$ 3,443,000	$ 7,500,000	$ 5,983,000
Number of shares issued under the ESPP	0	1,086,837	163,142
Employee Stock Options [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 options exercisable after one year	25.00%
Total intrinsic value of options exercised	$ 44,000	$ 0	$ 28,000
Expected recognition period	1 year 10 months 24 days
Total fair value of option awards recognized as expense	$ 818,000	$ 1,700,000	$ 2,700,000
Weighted average fair value of option awards granted	$ 1.20	$ 1.97	$ 3.40
Total unrecognized share-based compensation cost	$ 724,000
Employee Stock Options [Member] \| New Hire [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options granted vesting period	36 months
Employee Stock Options [Member] \| Existing Employee [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options granted vesting period	36 months
Restricted stock units outstanding [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected recognition period	1 year 10 months 24 days
Total fair value of option awards recognized as expense	$ 2,600,000	$ 3,400,000	$ 2,600,000
Number of RSUs awarded to employees	447,703	1,015,638	903,214
Aggregate fair value of awards	$ 900,000	$ 3,400,000	$ 4,900,000
Unrecognized compensation expense related to non-vested RSUs	$ 3,400,000
Restricted stock units outstanding [Member] \| Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Range of RSUs price at fair value	$ 1.74	$ 1.28	$ 3.06
Restricted stock units outstanding [Member] \| Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Range of RSUs price at fair value	$ 4.17	$ 3.58	$ 9.71
Employee Stock Purchase Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total unrecognized share-based compensation cost					$ 316,000
Unrecognized compensation expense related to non-vested RSUs		$ 1,000,000
Percentage of lower limit value of common stock	85.00%
Maximum limit of payroll deductions	10.00%
Amount received in cash through employee withholdings	$ 0	1,600,000	$ 470,000
Number of shares issue that the ESPP authorizes for purchase by eligible employees				1,250,111
Total fair value of awards recognized as expenses	$ 0	$ 1,400,000	$ 707,000

Stock Incentive and Employee Stock Purchase Plans - Summary of Share-Based Compensation Expense (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Amounts for share-based compensation awards	$ 3,443	$ 7,500	$ 5,983
Cost of net revenues [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Amounts for share-based compensation awards	84	747	579
Research and development [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Amounts for share-based compensation awards	1,114	3,042	2,088
Sales and marketing [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Amounts for share-based compensation awards	669	1,403	1,254
General and administrative [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Amounts for share-based compensation awards	$ 1,576	$ 2,308	$ 2,062

Stock Incentive and Employee Stock Purchase Plans - Summary of per Share Fair Values of Stock Options Granted under 2009 Plan and Rights Granted under ESPP (Detail)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Employee Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected dividend yield	0.00%	0.00%	0.00%
Risk-free interest rate	0.80%	0.90%	1.20%
Volatility	63.00%	63.00%	69.00%
Expected term (in years)	6 years	6 years	6 years
Employee Stock Purchase Rights [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected dividend yield	0.00%	0.00%	0.00%
Risk-free interest rate	0.00%	0.20%	0.20%
Volatility	0.00%	68.00%	63.00%
Expected term (in years)	0 years	1 year 3 months 18 days	1 year 1 month 6 days

Stock Incentive and Employee Stock Purchase Plans - Summary of Stock Option Activity (Detail) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2013 USD ($) $ / shares shares
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Stock Options Outstanding, December 31, 2012 \| shares	4,282
Stock Options Outstanding, Granted \| shares	425
Stock Options Outstanding, Exercised \| shares	(38)
Stock Options Outstanding, Cancelled \| shares	(736)
Stock Options Outstanding, December 31, 2013 \| shares	3,933
Options Exercisable, December 31, 2013 \| shares	3,394
Weighted Average Exercise Price Per Option, Options outstanding, December 31, 2012 \| $ / shares	$ 10.25
Weighted Average Exercise Price Per Option, Granted \| $ / shares	2.10
Weighted Average Exercise Price Per Option, Exercised \| $ / shares	2.68
Weighted Average Exercise Price Per Option, Cancelled \| $ / shares	10.21
Weighted Average Exercise Price Per Option, Balance December 31, 2013 \| $ / shares	9.45
Weighted Average Exercise Price Per Option, Options Exercisable, December 31, 2013 \| $ / shares	$ 10.53
Weighted Average Remaining Contractual Term (Years), Options outstanding, December 31, 2013	4 years 1 month 24 days
Weighted Average Remaining Contractual Term (Years), Options Exercisable, December 31, 2013	3 years 4 months 24 days
Aggregate Intrinsic Value, Options outstanding, December 31, 2013 \| $	$ 115
Aggregate Intrinsic Value, Options Exercisable, December 31, 2013 \| $	$ 0

Stock Incentive and Employee Stock Purchase Plans - Summary of Restricted Stock Unit Activity (Detail) - Restricted Stock [Member] shares in Thousands	12 Months Ended
	Dec. 31, 2013 shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Non-vested at December 31, 2012	1,662
Granted	448
Vested	(628)
Forfeited	(374)
Non-vested at December 31, 2013	1,108

Income Taxes - Summary of Income Taxes (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Income Tax Disclosure [Abstract]
To income	$ 83	$ 611	$ (9,503)
To stockholders' equity	0	10	240
Total income taxes	$ 83	$ 621	$ (9,263)

Income Taxes - Summary of Income (Loss) before Taxes (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Income Tax Disclosure [Abstract]
Domestic	$ (44,142)	$ (88,945)	$ (36,091)
Foreign	812	290	1,696
Loss before income taxes	$ (43,330)	$ (88,655)	$ (34,395)

Income Taxes - Summary of Provision (Benefit) for Income Taxes (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Current:
Federal	$ (248)	$ 0	$ (10,786)
State	33	29	0
Foreign	(229)	74	84
Total Current	(444)	103	(10,702)
Deferred:
Federal	53	14	(114)
State	0	0	0
Foreign	474	494	1,313
Total Deferred	527	508	1,199
Provision (benefit) for income taxes	$ 83	$ 611	$ (9,503)

Income Taxes - Summary of Net Deferred Tax Assets (Detail) - USD ($) $ in Thousands	Dec. 31, 2013	Dec. 31, 2012
Deferred tax assets:
Accrued expenses	$ 11,292	$ 6,271
Inventory obsolescence provision	3,539	1,992
Depreciation and amortization	4,136	6,680
Deferred rent	559	892
Net operating loss and tax credit carryforwards	55,010	42,994
Stock-based compensation	4,518	6,069
Unrecognized tax benefits	1,190	613
Deferred tax assets	80,244	65,511
Deferred tax liabilities:
Amortization of acquired intangibles	(699)	(1,016)
Net deferred tax assets	79,545	64,495
Valuation allowance	(79,458)	(63,881)
Net deferred tax assets	$ 87	$ 614

Income Taxes - Additional Information (Detail) - USD ($)	3 Months Ended	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Operating Loss Carryforwards [Line Items]
Valuation allowances related to U.S. based deferred taxes		$ 15,600,000	$ 27,500,000
Valuation allowance	$ 79,458,000	79,458,000	$ 63,881,000
Research and development tax credits	87,000	$ 87,000
Statutory federal income tax rate		34.00%	34.00%	34.00%
Internal revenue code related to annual use of operating loss carry forwards		Annual use of the Company's net operating loss and research and development credit carryforwards may be limited in the event a cumulative change in ownership of more than 50% occurs within a three-year period.
Internal revenue code, cumulative change in ownership		50.00%
Uncertain income tax position unrecognized		Less than a 50% likelihood
Settlements and lapses in statutes of limitations		$ 71,000	$ 50,000
Associated interest due to expiration of the applicable statutes of limitations for certain tax years		236,000	5,000
Total liability for unrecognized tax benefits included other long-term liabilities		62,000	367,000
Recognized tax benefits that would affect the effective tax rate	62,000	62,000
Interest and penalties related to unrecognized tax benefits in the provision for income taxes		0	200,000
Expected unrecognized tax benefits due to expiration of limitations applicable to the 2009 taxable year	62,000
Uncertain tax liability	552,000
Interest accrual	236,000	236,000
Domestic Country [Member]
Operating Loss Carryforwards [Line Items]
Valuation allowance	74,700,000	74,700,000	58,900,000
Net operating loss carryforwards	116,300,000	$ 116,300,000
Net operating loss expiration dates		2026 through 2033
Research and development tax credit carryforwards	4,700,000	$ 4,700,000
Tax credits expiration dates		2027 through 2032
Foreign Country [Member]
Operating Loss Carryforwards [Line Items]
Valuation allowance	4,700,000	$ 4,700,000	$ 5,000,000
State and Local Jurisdiction [Member]
Operating Loss Carryforwards [Line Items]
Net operating loss carryforwards	39,300,000	$ 39,300,000
Net operating loss expiration dates		2014 through 2033
Research and development tax credit carryforwards	$ 5,000,000	$ 5,000,000

Income Taxes - Summary of Provision (Benefit) for Income Taxes Reconciles to Amount Computed by Applying Statutory Federal Income Tax Rate (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Income Tax Expense Benefit Continuing Operations Income Tax Reconciliation [Abstract]
Federal tax benefit, at statutory rate	$ (14,732)	$ (30,142)	$ (11,694)
State benefit, net of federal benefit	(922)	(757)	(733)
Change in valuation allowance	15,577	27,486	14,612
Tax expense/(benefit) from business combination	0	0	909
Research and development credits	(1,084)	(856)	(1,731)
Share-based compensation	2,433	1,616	526
Uncertain tax positions	(307)	(46)	(11,809)
Goodwill impairment	0	3,700	596
Change in state apportionment	(767)	0	0
Other	(115)	(390)	(179)
Provision (benefit) for income taxes	$ 83	$ 611	$ (9,503)

Income Taxes - Reconciliation of Beginning and Ending Amounts of Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Income Tax Disclosure [Abstract]
Unrecognized Tax Benefits, Beginning Balance	$ 33,220	$ 32,795	$ 41,386
Increases related to current and prior year tax positions	2,653	475	899
Settlements and lapses in statutes of limitations	(373)	(50)	(9,490)
Unrecognized Tax Benefits, Ending Balance	$ 35,500	$ 33,220	$ 32,795

Commitments and Contingencies - Additional Information (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Loss Contingencies [Line Items]
Net book value of assets held under capital leases	$ 0	$ 0
Accumulated amortization cost	510,000	510,000
Present value of the net minimum lease payments	0
Rental expense under operating leases	4,100,000	4,500,000	$ 4,700,000
Purchase commitments	52,000,000
Estimate of potential settlements on legal and indemnification matters	$ 14,300,000
Borrowings under the facility interest rate	1.00%
Cash equivalents and marketable securities held at bank	$ 5,200,000
Company's unused borrowing capacity under credit facility	1,800,000
Amount borrowed against the facility	20,300,000	$ 14,000,000
Outstanding borrowings under the credit facility	2,600,000
Cash [Member]
Loss Contingencies [Line Items]
Settlements on legal matters	6,000,000
Common Stock [Member]
Loss Contingencies [Line Items]
Settlements on legal matters	5,000,000
Secured Promissory Note [Member]
Loss Contingencies [Line Items]
Settlements on legal matters	$ 5,000,000
Secured note interest rate percentage	5.00%
Secured note maturity period	30 months
September Fifteenth Two Thousand Eight [Member]
Loss Contingencies [Line Items]
Lawsuit filing date	September 15, 2008
September Eighteenth Two Thousand Eight [Member]
Loss Contingencies [Line Items]
Lawsuit filing date	September 18, 2008

Commitments and Contingencies - Summary of Minimum Future Lease Payments under Non-Cancelable Operating Leases (Detail) $ in Thousands	Dec. 31, 2013 USD ($)
Commitments And Contingencies Disclosure [Abstract]
2014	$ 3,626
2015	3,417
2016	3,394
2017	806
2018	422
Thereafter	653
Total minimum lease payments	$ 12,318

Segment Information and Concentrations of Risk - Schedule of Net Revenues, Operating Income (Loss) and Identifiable Assets of Segments (Detail) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Net revenues by reportable segment:
Net revenues	$ 65,335	$ 92,673	$ 91,124	$ 85,921	$ 70,675	$ 71,017	$ 102,446	$ 100,150	$ 335,053	$ 344,288	$ 402,862
Operating income (loss):
Operating loss									(43,221)	(88,743)	(33,727)
Identifiable assets by reportable segment:
Identifiable assets	111,465				161,531				111,465	161,531
Mobile Computing Products [Member]
Net revenues by reportable segment:
Net revenues									297,499	312,508	358,106
Operating income (loss):
Operating loss									(27,939)	(22,924)	(13,764)
Identifiable assets by reportable segment:
Identifiable assets	96,516				141,045				96,516	141,045
M2M Products and Solutions [Member]
Net revenues by reportable segment:
Net revenues									37,554	31,780	44,756
Operating income (loss):
Operating loss									(15,282)	(65,819)	$ (19,963)
Identifiable assets by reportable segment:
Identifiable assets	$ 14,949				$ 20,486				$ 14,949	$ 20,486

Segment Information and Concentrations of Risk - Schedule of Geographic Concentration of Assets (Detail) - USD ($) $ in Thousands	Dec. 31, 2013	Dec. 31, 2012
Revenues from External Customers and Long-Lived Assets [Line Items]
Assets by Geographic Concentration, Total	$ 111,465	$ 161,531
United States [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Assets by Geographic Concentration, Total	108,932	157,661
Canada [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Assets by Geographic Concentration, Total	808	2,836
Europe, Latin America and Asia [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Assets by Geographic Concentration, Total	$ 1,725	$ 1,034

Segment Information and Concentrations of Risk - Schedule of Geographic Concentration of Net Revenues (Detail) - Net Revenues [Member] - Geographic Concentration [Member]	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Revenues from External Customers and Long-Lived Assets [Line Items]
Concentration percentage	100.00%	100.00%	100.00%
United States and Canada [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Concentration percentage	95.60%	93.10%	93.50%
Latin America [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Concentration percentage	0.80%	2.40%	0.00%
Europe, Middle East and Africa [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Concentration percentage	3.40%	4.10%	4.00%
Asia and Australia [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Concentration percentage	0.20%	0.40%	2.50%

Segment Information and Concentrations of Risk - Additional Information (Detail) - Customer Concentration [Member]	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Net Revenues [Member] \| Customer One [Member]
Segment Reporting Information [Line Items]
Concentration percentage	58.00%	57.50%	50.80%
Net Revenues [Member] \| Customer Two [Member]
Segment Reporting Information [Line Items]
Concentration percentage			13.10%
Accounts Receivable [Member] \| Customer One [Member]
Segment Reporting Information [Line Items]
Concentration percentage	24.50%	20.70%
Accounts Receivable [Member] \| Customer Two [Member]
Segment Reporting Information [Line Items]
Concentration percentage	12.60%	18.50%
Accounts Receivable [Member] \| Customer Three [Member]
Segment Reporting Information [Line Items]
Concentration percentage	12.00%	11.50%

Retirement Savings Plan - Additional Information (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Defined Benefit Plan Disclosure [Line Items]
Employer matching contributions vesting period	2 years
United States [Member]
Defined Benefit Plan Disclosure [Line Items]
Employer matching contributions	$ 1,000,000	$ 1,200,000	$ 1,100,000
Canada [Member]
Defined Benefit Plan Disclosure [Line Items]
Employer matching contributions	$ 157,000	$ 232,000	$ 280,000

Restructuring - Additional Information (Detail)	3 Months Ended	12 Months Ended
Restructuring - Additional Information (Detail)	Dec. 31, 2013 USD ($)	Dec. 31, 2013 USD ($) Employees	Dec. 31, 2012 USD ($)	Dec. 31, 2011 USD ($)
Restructuring Cost and Reserve [Line Items]
Reduction in number of employees after restructuring \| Employees		72
Restructuring charges	$ 893,000	$ 3,304,000	$ 0	$ 0
Accrued liabilities relating to restructuring	881,000	881,000	0
Deferred rent included in accrued liabilities relating restructuring	424,000	424,000
Restructuring Accruals		3,728,000
Short-term [Member]
Restructuring Cost and Reserve [Line Items]
Accrued liabilities relating to restructuring	610,000	610,000
Long-term [Member]
Restructuring Cost and Reserve [Line Items]
Accrued liabilities relating to restructuring	271,000	271,000
Mobile Computing Products [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges		3,100,000
M2M Products and Solutions [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges		206,000
Employee Severance Costs [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges		2,300,000
Accrued liabilities relating to restructuring	0	0	0
Restructuring Accruals		2,273,000
Facility Exit Related Costs [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges		1,000,000
Other Restructuring Charges [Member]
Restructuring Cost and Reserve [Line Items]
Accrued liabilities relating to restructuring	881,000	881,000	$ 0
Restructuring Accruals		$ 1,455,000
Restructuring [Member]
Restructuring Cost and Reserve [Line Items]
Fixed asset impairments charges	$ 348,000

Restructuring - Summary of Restructuring Liability (Detail)	12 Months Ended
	Dec. 31, 2013 USD ($)
Restructuring Cost and Reserve [Line Items]
Balance at December 31, 2012	$ 0
Accruals	3,728,000
Payments	(2,847,000)
Balance at December 31, 2013	881,000
Employee Severance Costs [Member]
Restructuring Cost and Reserve [Line Items]
Balance at December 31, 2012	0
Accruals	2,273,000
Payments	(2,273,000)
Balance at December 31, 2013	0
Other Restructuring Charges [Member]
Restructuring Cost and Reserve [Line Items]
Balance at December 31, 2012	0
Accruals	1,455,000
Payments	(574,000)
Balance at December 31, 2013	$ 881,000

Subsequent Event - Additional Information (Detail) $ in Millions	3 Months Ended
	Mar. 31, 2014 USD ($)
Scenario, Forecast [Member]
Subsequent Event [Line Items]
Employee-related compensation charges	$ 0.8

Quarterly Financial Information - Summary of Unaudited Quarterly Results of Operations (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Quarterly Financial Data [Abstract]
Net revenues	$ 65,335	$ 92,673	$ 91,124	$ 85,921	$ 70,675	$ 71,017	$ 102,446	$ 100,150	$ 335,053	$ 344,288	$ 402,862
Gross profit	12,039	20,383	19,024	16,848	13,558	14,646	23,251	20,988	68,294	72,443	84,592
Net loss applicable to common stockholders	$ (21,306)	$ (5,093)	$ (7,892)	$ (9,122)	$ (14,912)	$ (31,933)	$ (4,500)	$ (37,921)	$ (43,413)	$ (89,266)	$ (24,892)
Basic and diluted net loss per common share	$ (0.63)	$ (0.15)	$ (0.23)	$ (0.27)	$ (0.44)	$ (0.97)	$ (0.14)	$ (1.17)	$ (1.28)	$ (2.72)	$ (0.78)

- 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 (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Allowance for Doubtful Accounts [Member]
Valuation and Qualifying Accounts Disclosure [Line Items]
Balance At Beginning of Year	$ 627	$ 245	$ 228
Additions Charged to Operations	1,936	439	41
Deductions From Reserves	114	57	24
Balance At End of Year	2,449	627	245
Warranty [Member]
Valuation and Qualifying Accounts Disclosure [Line Items]
Balance At Beginning of Year	2,329	1,525	2,279
Additions Charged to Operations	5,055	6,261	2,642
Deductions From Reserves	5,140	5,457	3,396
Balance At End of Year	2,244	2,329	1,525
Deferred Tax Asset Valuation Allowance [Member]
Valuation and Qualifying Accounts Disclosure [Line Items]
Balance At Beginning of Year	63,881	36,395	21,783
Additions Charged to Operations	15,577	27,486	14,612
Deductions From Reserves	0	0	0
Balance At End of Year	79,458	63,881	36,395
Sales Returns and Allowances [Member]
Valuation and Qualifying Accounts Disclosure [Line Items]
Balance At Beginning of Year	911	545	346
Additions Charged to Operations	196	497	911
Deductions From Reserves	380	131	712
Balance At End of Year	$ 727	$ 911	$ 545