0001022652-15-000059 | 10-Q | XBRL Viewer

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Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 30, 2015	Nov. 02, 2015
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2015
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q3
Trading Symbol	MIFI
Entity Registrant Name	NOVATEL WIRELESS INC
Entity Central Index Key	0001022652
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		52,627,858

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents	$ 10,219	$ 17,853
Accounts receivable, net of allowance for doubtful accounts of $244 at September 30, 2015 and $217 at December 31, 2014	34,145	24,213
Inventories	40,197	37,803
Prepaid expenses and other	9,297	7,912
Total current assets	93,858	87,781
Property and equipment, net of accumulated depreciation of $64,395 at September 30, 2015 and $68,449 at December 31, 2014	3,869	5,279
Intangible assets, net of accumulated amortization of $15,704 at September 30, 2015 and $14,050 at December 31, 2014	18,945	1,493
Acquisition-related escrow	77,957	0
Goodwill	3,194	0
Other assets	201	467
Total assets	198,024	95,020
Current liabilities:
Accounts payable	28,057	34,540
Accrued expenses	24,483	23,844
Total current liabilities	52,540	58,384
Convertible senior notes, net	80,350	0
Revolving credit facility	0	5,158
Other long-term liabilities	15,851	932
Total liabilities	148,741	64,474
Commitments and Contingencies
Stockholders’ equity:
Preferred stock, par value $0.001; 2,000 shares authorized and none outstanding	0	0
Common stock, par value $0.001; 150,000 and 100,000 shares authorized at September 30, 2015 and December 31, 2014, respectively, 52,537 and 45,742 shares issued and outstanding at September 30, 2015 and December 31, 2014, respectively	53	46
Additional paid-in capital	498,288	466,665
Accumulated deficit	(449,058)	(411,165)
Total stockholders’ equity before treasury stock	49,283	55,546
Treasury stock at cost; 0 common shares at September 30, 2015 and 2,436 common shares at December 31, 2014	0	(25,000)
Total stockholders’ equity	49,283	30,546
Total liabilities and stockholders’ equity	$ 198,024	$ 95,020

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 244	$ 217
Accumulated depreciation, Property and equipment	64,395	68,449
Accumulated amortization, Intangible assets	$ 15,704	$ 14,050
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	2,000,000	2,000,000
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	150,000,000	100,000,000
Common stock, shares issued	52,537,000	45,742,000
Common stock, shares outstanding	52,537,000	45,742,000
Treasury stock, shares	0	2,436,000

Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Income Statement [Abstract]
Net revenues	$ 54,577	$ 44,330	$ 162,886	$ 129,884
Cost of net revenues	40,109	33,844	120,461	105,343
Gross profit	14,468	10,486	42,425	24,541
Operating costs and expenses:
Research and development	7,687	7,006	28,135	24,164
Sales and marketing	3,948	2,790	12,403	9,816
General and administrative	9,110	3,381	23,462	12,881
Amortization of purchased intangible assets	273	141	1,096	421
Restructuring charges	953	1,064	789	7,480
Total operating costs and expenses	21,971	14,382	65,885	54,762
Operating loss	(7,503)	(3,896)	(23,460)	(30,221)
Other income (expense):
Change in fair value of warrant liability	0	(4,788)	0	(4,788)
Non-cash change in acquisition-related escrow	(10,533)	0	(10,317)	0
Interest expense, net	(2,407)	(63)	(3,319)	(28)
Other expense, net	(359)	(61)	(658)	(118)
Loss before income taxes	(20,802)	(8,808)	(37,754)	(35,155)
Income tax provision	45	24	139	73
Net loss	$ (20,847)	$ (8,832)	$ (37,893)	$ (35,228)
Per share data:
Basic and diluted ($ per share)	$ (0.38)	$ (0.23)	$ (0.73)	$ (0.99)
Weighted average shares used in computation of basic and diluted net loss per share:
Basic and diluted (in shares)	55,181	38,167	51,648	35,568

Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Statement of Comprehensive Income [Abstract]
Net loss	$ (20,847)	$ (8,832)	$ (37,893)	$ (35,228)
Unrealized gain on cash equivalents and marketable securities, net of tax	0	(5)	0	(5)
Total comprehensive loss	$ (20,847)	$ (8,837)	$ (37,893)	$ (35,233)

- Definition

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

+ References + Details

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Cash flows from operating activities:
Net loss	$ (37,893)	$ (35,228)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	4,484	5,889
Provision for bad debts, net of recoveries	62	187
Provision for excess and obsolete inventory	810	3,033
Share-based compensation expense	3,227	1,616
Amortization of debt discount and debt issuance costs	2,581	0
Change in fair value of warrant liability	0	4,788
Non-cash change in acquisition-related escrow	10,317	0
Changes in assets and liabilities, net of effects from acquisition:
Accounts receivable	(6,664)	11,600
Inventories	6,804	(3,379)
Prepaid expenses and other assets	(574)	1,300
Accounts payable	(13,868)	5,500
Accrued expenses, income taxes, and other	4,417	(4,790)
Net cash used in operating activities	(26,297)	(9,484)
Cash flows from investing activities:
Acquisition-related escrow	(88,274)	0
Acquisition, net of cash acquired	(9,063)	0
Purchases of property and equipment	(996)	(1,513)
Purchases of intangible assets	(224)	(143)
Purchases of marketable securities	0	(1,255)
Marketable securities maturities / sales	0	18,513
Net cash provided by (used in) investing activities	(98,557)	15,602
Cash flows from financing activities:
Gross proceeds from the issuance of convertible senior notes	120,000	0
Payment of issuance costs related to convertible senior notes	(3,540)	0
Proceeds from the exercise of warrant to purchase common stock	8,644	0
Net repayments on revolving credit facility	(5,158)	0
Payoff of acquisition-related assumed liabilities	(2,633)	0
Proceeds from the issuance of Series C preferred stock and common stock, net of issuance costs	0	14,163
Principal repayments of short-term debt	0	(2,566)
Proceeds from stock option exercises and ESPP, net of taxes paid on vested restricted stock units	257	(375)
Net cash provided by financing activities	117,570	11,222
Effect of exchange rates on cash and cash equivalents	(350)	(88)
Net increase (decrease) in cash and cash equivalents	(7,634)	17,252
Cash and cash equivalents, beginning of period	17,853	2,911
Cash and cash equivalents, end of period	10,219	20,163
Cash paid during the year for:
Interest	110	80
Income taxes	123	83
Supplemental disclosures of non-cash financing activities:
Issuance of common stock for settlement of shareholder litigation	0	5,000
Initial fair value of warrant liability recorded upon issuance of Series C preferred stock and common stock	$ 0	$ 4,939

Basis of Presentation	9 Months Ended
Basis of Presentation	Sep. 30, 2015
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The information contained herein has been prepared by Novatel Wireless, Inc. (the “Company”) in accordance with the rules of the Securities and Exchange Commission (the “SEC”). The information at September 30, 2015 and the results of the Company’s operations for the three and nine months ended September 30, 2015 and 2014 are unaudited. The condensed consolidated financial statements reflect all adjustments, consisting of only normal recurring accruals, which are, in the opinion of management, necessary for a fair statement of the results of the interim periods presented. These condensed consolidated financial statements and notes hereto should be read in conjunction with the audited financial statements from which they were derived and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. The accounting policies used in preparing these condensed consolidated financial statements are the same as those described in the Company’s Form 10-K. The results of operations for the interim periods presented are not necessarily indicative of results to be expected for any other interim period or for the year as a whole. Principles of Consolidation The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. Segment Information In the first quarter of fiscal year 2015, the Company and its Chief Operating Decision Maker (the “CODM”) completed a reassessment of the Company's operations in light of a series of restructuring efforts, organizational transformation and reporting changes, including the hiring of a new Chief Executive Officer and Chief Financial Officer. As a result of this reassessment, the Company has consolidated the Mobile Computing and machine-to-machine (“M2M”) divisions into one reportable segment. The current Chief Executive Officer, who is also the CODM, does not manage any part of the Company separately, and the allocation of resources and assessment of performance is based solely on the Company’s consolidated operations and operating results. 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, valuation of goodwill, valuation of debt obligations, valuation of contingent consideration, royalty costs, fair value of warrants, accruals relating to litigation, restructuring, valuation of retention bonus payments, provision for warranty costs, income taxes and share-based compensation expense. Intangible Assets Intangible assets include purchased definite-lived and indefinite-lived intangible assets resulting from the acquisitions of Feeney Wireless, LLC and Enfora, Inc. (“Enfora”), along with the costs of non-exclusive and perpetual worldwide software technology licenses. Definite-lived intangible assets, including software technology licenses, 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. License fees are amortized on a straight-line basis over the shorter of the term of the license or an estimate of their useful life, ranging from one to three years. Developed technologies are amortized on a straight-line basis over their useful lives, ranging from five to eight years. Customer relationships, trademarks and trade names are amortized on a straight-line basis over ten years. Indefinite-lived assets are not amortized; however, they are tested for impairment annually and between annual tests if certain events occur indicating that the carrying amounts may be impaired. If a qualitative assessment is used and the Company determines that the fair value of an indefinite-lived intangible asset is more likely than not (i.e., a likelihood of more than 50%) less than its carrying amount, a quantitative impairment test will be performed. If indefinite-lived intangible assets are quantitatively assessed for impairment, a two-step approach is applied. First, the Company compares the estimated fair value of the indefinite-lived intangible asset to its carrying value. The second step, if necessary, measures the amount of such impairment by comparing the implied fair value of the asset to its carrying value. No impairment of indefinite-lived intangible assets was recognized during the nine months ended September 30, 2015 or 2014. Derivative Financial Instruments The Company evaluates stock options, stock warrants and other contracts to determine if those contracts or embedded components of those contracts qualify as derivative financial instruments to be separately accounted for under the relevant sections of the Financial Accounting Standards Board (the “FASB”) Accounting Standards Codification. The result of this accounting treatment could be that the fair value of a financial instrument is classified as a derivative financial instrument and is marked-to-market at each balance sheet date and recorded as an asset or liability. In the event that the fair value is recorded as an asset or liability, the change in fair value is recorded in the statement of operations as other income or other expense. Upon conversion, exercise or expiration of a derivative financial instrument, the instrument is marked to fair value and then that fair value is reclassified to equity. Acquisitions When acquiring companies, the Company recognizes separately from goodwill the assets acquired and the liabilities assumed at their acquisition date fair values. Goodwill as of the acquisition date is measured as the excess of consideration transferred and the net of the acquisition date fair values of the assets acquired and the liabilities assumed. While the Company uses its best estimates and assumptions as a part of the purchase price allocation process to accurately value assets acquired and liabilities assumed at the acquisition date, the Company's estimates are inherently uncertain and subject to refinement. As a result, during the measurement period, which may be up to one year from the acquisition date, the Company records adjustments to the assets acquired and liabilities assumed, with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to the condensed consolidated statements of operations. Accounting for business combinations requires the Company's management to make significant estimates and assumptions, especially at the acquisition date with respect to intangible assets, support liabilities assumed, and pre-acquisition contingencies. Although the Company believes the assumptions and estimates it has made in the past have been reasonable and appropriate, they are based in part on historical experience, market data and information obtained from the management of the acquired companies and are inherently uncertain. Examples of critical estimates in valuing certain of the intangible assets the Company has acquired include but are not limited to: (i) future expected cash flows from customer relationships; (ii) estimates to develop or use technology; and (iii) discount rates. If the Company determines that a pre-acquisition contingency is probable in nature and estimable as of the acquisition date, the Company records its best estimate for such a contingency as a part of the preliminary fair value allocation. The Company continues to gather information for and evaluate pre-acquisition contingencies throughout the measurement period and if the Company makes changes to the amounts recorded or if the Company identifies additional pre-acquisition contingencies during the measurement period, such amounts will be included in the fair value allocation during the measurement period and, subsequently, in the Company's results of operations. The Company may be required to pay future consideration to the former shareholders of acquired companies, depending on the terms of the applicable purchase agreements, which may be contingent upon the achievement of certain financial and operating targets, as well as the retention of key employees. If the future consideration is considered to be compensation, amounts will be expensed when incurred. Convertible debt The Company accounts for its convertible debt instruments that are settleable in cash upon conversion (including partial cash settlement) by separating the liability and equity components of the instruments in a manner that reflects the Company's nonconvertible debt borrowing rate. The Company determines the carrying amount of the liability component by measuring the fair value of similar debt instruments that do not have the conversion feature. If a similar debt instrument does not exist, the Company estimates the fair value by using assumptions that market participants would use in pricing a debt instrument, including market interest rates, credit standing, yield curves and volatilities. Determining the fair value of the debt component requires the use of accounting estimates and assumptions. These estimates and assumptions are judgmental in nature and could have a significant impact on the determination of the debt component and the associated non-cash interest expense. The Company assigns a value to the debt component equal to the estimated fair value of similar debt instruments without the conversion feature, which could result in the Company recording the debt instrument at a discount. If the debt instrument is recorded at a discount, the Company amortizes the debt discount over the life of the debt instrument as additional non-cash interest expense utilizing the effective interest method. New Accounting Pronouncements From time to time, new accounting pronouncements are issued by the FASB, which are adopted by the Company as of the specified date. Unless otherwise discussed, management believes the impact of recently issued standards, some of which are not yet effective, will not have a material impact on its unaudited condensed consolidated financial statements upon adoption. In September 2015, the FASB issued Accounting Standards Update (“ASU”) 2015-16, Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments. The update eliminates the requirement for an acquirer to retrospectively adjust provisional amounts recorded in a business combination to reflect new information about the facts and circumstances that existed as of the acquisition date and that, if known, would have affected measurement or recognition of amounts initially recognized. As an alternative, the update requires that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The update requires that the acquirer record, in the financial statements of the period in which adjustments to provisional amounts are determined, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. This guidance is effective prospectively for interim and annual periods beginning after December 15, 2015. Early adoption is permitted. The Company is currently assessing the impact of this guidance. In August 2015, the FASB issued ASU 2015-15, Interest — Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements — Amendments to SEC Paragraphs Pursuant to Staff Announcement at June 18, 2015 EITF Meeting, which clarifies the treatment of debt issuance costs from line-of-credit arrangements after the adoption of ASU 2015-03. In particular, ASU 2015-15 clarifies that the SEC staff would not object to an entity deferring and presenting debt issuance costs related to a line-of-credit arrangement as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of such arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. The Company implemented this guidance during the third quarter of 2015. This guidance did not have a material impact on our unaudited condensed consolidated financial statements upon adoption. In July 2015, the FASB issued ASU 2015-11, Simplifying the Measurement of Inventory. Under this standard, inventory will be measured at the “lower of cost and net realizable value” and options that currently exist for “market value” will be eliminated. The standard defines net realizable value as the “estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation.” No other changes were made to the current guidance on inventory measurement. This guidance is effective for interim and annual periods beginning after December 15, 2016. Early adoption is permitted and should be applied prospectively. The Company is currently assessing the impact of this guidance. In April 2015, the FASB issued ASU 2015-05, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer's Accounting for Fees Paid in a Cloud Computing Arrangement. Under this standard, if a cloud computing arrangement includes a software license, the software license element of the arrangement should be accounted for consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the arrangement should be accounted for as a service contract. This guidance is effective for interim and annual periods beginning after December 15, 2015. Early adoption is permitted. The Company is currently assessing the impact of this guidance. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, which provides guidance for revenue recognition. The new standard will require revenue recognized to represent the transfer of promised goods or services to customers in an amount that reflects the consideration in which a company expects to receive in exchange for those goods or services. The standard also requires new, expanded disclosures regarding revenue recognition. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers: Deferral of Effective Date. The standard defers the effective date of adoption of ASU 2014-09 to interim and annual reporting periods beginning after December 15, 2017. Early adoption is permitted but not before the original effective date of December 15, 2016. The Company is currently assessing the impact of this guidance.

Acquisitions

9 Months Ended

Sep. 30, 2015

Business Combinations [Abstract]

Acquisitions

DigiCore Holdings Limited

On June 18, 2015, the Company entered into a transaction implementation agreement (the “TIA”) with DigiCore Holdings Limited (“DigiCore”). DigiCore specializes in the research, development, manufacturing, sales and marketing of telematics tools used for fleet and mobile asset management solutions and user-based insurance applications. DigiCore’s products and services provide enterprise fleets, international businesses and consumers with solutions for maximizing the security and efficient operation of their global assets.

Pursuant to the terms of the TIA, the Company agreed to acquire 100% of the issued and outstanding ordinary shares of DigiCore (with the exception of certain excluded shares, including treasury shares) for 4.40 South African Rand per ordinary share outstanding; provided that, the total cash consideration could not exceed 1,094,223,363.20 South African Rand (the “Maximum Consideration Amount”). The total cash purchase price was guaranteed, on behalf of the Company, by a registered South African bank. To obtain such guarantee, the Company placed the Maximum Consideration Amount, in South African Rand, into escrow with the South African bank, the value of which is included in “Acquisition-related escrow” on the unaudited condensed consolidated balance sheet. From the date of execution of the TIA through September 30, 2015, the Maximum Consideration Amount placed into escrow experienced a non-cash loss of $10.3 million due to the weakening of the South African Rand. This amount is included in “Non-cash change in acquisition-related escrow” in the unaudited condensed consolidated statement of operations. The balance of the acquisition-related escrow was $78.0 million at September 30, 2015.

During the three and nine months ended September 30, 2015, the Company incurred $0.5 million and $1.6 million, respectively, in costs and expenses related to the Company's acquisition of DigiCore that are included in general and administrative expenses in the unaudited condensed consolidated statement of operations.

On October 5, 2015, subsequent to the balance sheet date, the transaction closed and the Company acquired all of the issued and outstanding ordinary shares of DigiCore (with the exception of certain excluded shares, including treasury shares) for a total cash purchase price of 1,085,705,720.98 South African Rand, or approximately $79.0 million (based on currency exchange rates in effect at the time the transaction closed). Upon consummation of the acquisition, DigiCore became an indirect wholly-owned subsidiary of the Company.

The Company will account for the transaction using the acquisition method and, accordingly, the consideration will be allocated to the tangible and intangible assets acquired and liabilities assumed on the basis of their respective estimated fair values on the acquisition date. Due to the limited time since the acquisition date, the initial accounting for the business combination and the accounting for any transactions that are to be recognized separately from the acquisition are incomplete. As a result, the Company is unable to provide amounts recognized as of the acquisition date for major classes of assets and liabilities acquired, the fair value of consideration, and any other transactions that are recognized separately from the acquisition. In addition, the required supplemental pro forma information has not been provided, as it is impracticable at this time.

R.E.R. Enterprises, Inc. (DBA Feeney Wireless)

On March 27, 2015, the Company acquired all of the issued and outstanding shares of R.E.R. Enterprises, Inc. (“RER”) and its wholly-owned subsidiary and principal operating asset, Feeney Wireless, LLC, an Oregon limited liability company (collectively, “FW”), which develops and sells solutions for the Internet of Things that integrate wireless communications into business processes. This strategic acquisition expanded the Company’s product and solutions offerings to include private labeled cellular routers, in-house designed and assembled cellular routers, high-end wireless surveillance systems, modems, computers and software, along with associated hardware, purchased from major industry suppliers. Additionally, FW’s services portfolio includes consulting, systems integration and device management services.

During the three and nine months ended September 30, 2015, the Company incurred $0.1 million and $0.9 million, respectively, in costs and expenses related to the Company's acquisition of FW that are included in general and administrative expenses in the unaudited condensed consolidated statement of operations.

Purchase Price

The total purchase price was approximately $24.8 million and included a cash payment at closing of approximately $9.3 million, $1.5 million of which was placed into an escrow fund to serve as partial security for the indemnification obligations of RER and its former shareholders, the Company’s assumption of $0.5 million in certain transaction-related expenses incurred by FW, and the future issuance of shares of the Company's common stock valued at $15.0 million, payable no later than the tenth business day after the Company files its Annual Report on Form 10-K for the year ended December 31, 2015 with the SEC.

The total purchase price of $24.8 million does not include amounts, if any, payable under an earn-out arrangement under which the Company may be required to pay up to an additional $25.0 million to the former shareholders of RER contingent upon FW’s achievement of certain financial targets for the years ending December 31, 2015, 2016, and 2017, which are payable in either cash or stock at the discretion of the Company over the next four years. Payment, if any, under the earn-out arrangement will be recorded as compensation expense during the service period earned.

As of September 30, 2015, the Company estimated the amount earned under the earn-out arrangement to be approximately $4.0 million, which is included in “Accrued expenses” in the unaudited condensed consolidated balance sheet.

Set forth below is supplemental purchase consideration information related to the FW acquisition (in thousands):



	Nine Months Ended September 30, 2015
Cash payments	$	9,268
Future issuance of common stock	15,000
Other assumed liabilities	509
Total purchase price	$	24,777

Allocation of Fair Value

The Company accounted for the transaction using the acquisition method and, accordingly, the consideration has been allocated to the tangible and intangible assets acquired and liabilities assumed on the basis of their respective estimated fair values on the acquisition date as set forth below. Goodwill resulting from this acquisition is largely attributable to the experienced workforce of FW and synergies expected to arise after the integration of FW’s products and operations into those of the Company. Goodwill resulting from this acquisition is not deductible for tax purposes. Identifiable intangible assets acquired as part of the acquisition included definite-lived intangible assets for developed technologies, customer relationships, and trademarks, which are being amortized using the straight-line method over their estimated useful lives, as well as indefinite-lived intangible assets, including in-process research and development. Liabilities assumed from FW included a term loan and capital lease obligations. The term loan and certain capital lease obligations were paid in full by the Company immediately following the closing of the acquisition on March 27, 2015.

The fair value has been allocated based on the estimated fair values of assets acquired and liabilities assumed as follows (in thousands):



	March 27, 2015
Cash	$	205
Accounts receivable	3,331
Inventory	10,008
Property and equipment	535
Intangible assets	18,880
Goodwill	3,194
Other assets	544
Accounts payable	(7,494		)
Accrued and other liabilities	(1,161		)
Deferred revenues	(270		)
Note payable	(2,575		)
Capital lease obligations	(420		)
Net assets acquired	$	24,777

The above fair value allocation is subject to revision during the measurement period.

Valuation of Intangible Assets Acquired

The following table sets forth the components of intangible assets acquired in connection with the FW acquisition (dollars in thousands):



	Amount Assigned		Amortization Period (in years)
Definite-lived intangible assets:
Developed technologies	$	3,660	6.0
Trademarks	4,700		10.0
Customer relationships	8,500		10.0
Indefinite-lived intangible assets:
In-process research and development	2,020
Total intangible assets acquired	$	18,880

Actual and Pro Forma Results of FW Acquisition

FW’s net revenues and net loss following the March 27, 2015 date of acquisition are included in the Company’s operating results for the three and nine months ended September 30, 2015, and were $5.5 million and $3.8 million, respectively, for the three months ended September 30, 2015 and $17.7 million and $5.1 million, respectively, for the nine months ended September 30, 2015.

The unaudited consolidated pro forma results for the three and nine months ended September 30, 2015 and 2014 are set forth in the table below (in thousands). These pro forma consolidated results combine the results of operations of the Company and FW as though FW had been acquired as of January 1, 2014 and include amortization charges for the acquired intangibles and interest expense related to the Company's borrowings to finance the acquisition. The pro forma financial information is presented for informational purposes only and is not necessarily indicative of the results of operations that would have been achieved if the acquisition had taken place at the beginning of 2014.



	Three Months Ended September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014
Net revenues	$	54,577		$	49,198		$	167,957		$	144,964
Net loss	$	(20,847	)	$	(9,287	)	$	(38,479	)	$	(36,958	)

- 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=56956515&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=56956515&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=56956515&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=35744584&loc=d3e7008-128479

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
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+ Details

Balance Sheet Details

9 Months Ended

Sep. 30, 2015

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Balance Sheet Details

Inventories

Inventories consist of the following (in thousands):



	September 30, 2015		December 31, 2014
Finished goods	$	34,539	$	33,045
Raw materials and components	5,658		4,758
	$	40,197	$	37,803

Accrued Expenses

Accrued expenses consist of the following (in thousands):



	September 30, 2015		December 31, 2014
Royalties	$	5,594	$	4,035
Payroll and related expenses	4,951		8,038
Product warranty	948		1,196
Market development funds and price protection	2,759		2,502
Professional fees	636		780
Deferred revenue	596		962
Restructuring	219		1,886
Acquisition-related earn out	4,024		—
Other	4,756		4,445
	$	24,483	$	23,844

Accrued Warranty Obligations

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



	Nine Months Ended September 30,
	2015			2014
Warranty liability at beginning of period	$	1,196		$	2,244
Additions charged to operations	553			1,078
Deductions from liability	(801		)	(1,998		)
Warranty liability at end of period	$	948		$	1,324

The Company generally provides one to three years of warranty coverage for products following the date of purchase. The estimated cost of warranty coverage is accrued as a component of cost of net revenues in the condensed consolidated statements of operations at the time revenue is recognized. Warranty costs are accrued based on estimates of future warranty-related replacement, repairs or rework of products. In estimating its future warranty obligations, the Company considers various relevant factors, including the historical frequency and volume of claims, and the cost to replace or repair products under warranty.

Intangible Assets

9 Months Ended

Sep. 30, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets

The Company’s amortizable purchased intangible assets resulting from its acquisitions of FW and Enfora are comprised of the following (in thousands):



	September 30, 2015
	Gross		Accumulated Amortization			Accumulated Impairment			Net
Definite-lived intangible assets:
Developed technologies	$	29,660	$	(6,765	)	$	(19,547	)	$	3,348
Trademarks and trade names	17,500		(3,812		)	(8,582		)	5,106
Customer relationships	10,600		(858		)	(1,620		)	8,122
Other	1,620		(1,620		)	—			—
Total definite-lived intangible assets	$	59,380	$	(13,055	)	$	(29,749	)	16,576
Indefinite-lived intangible assets:
In-process research and development									2,020
Total purchased intangible assets									$	18,596



	December 31, 2014
	Gross		Accumulated Amortization			Accumulated Impairment			Net
Definite-lived intangible assets:
Developed technologies	$	26,000	$	(6,453	)	$	(19,547	)	$	—
Trademarks and trade names	12,800		(3,183		)	(8,582		)	1,035
Other	3,720		(2,011		)	(1,620		)	89
Total purchased intangible assets	$	42,520	$	(11,647	)	$	(29,749	)	$	1,124

The following table presents details of the amortization of purchased definite-lived intangible assets included in the condensed consolidated statements of operations (in thousands):



	Three Months Ended September 30,				Nine Months Ended September 30,
	2015		2014		2015		2014
Cost of net revenues	$	312	$	83	$	312	$	250
Operating costs and expenses	273		141		1,096		421
Total amortization expense	$	585	$	224	$	1,408	$	671

The following table represents details of the amortization of existing purchased intangible assets that is estimated to be expensed in the remainder of 2015 and thereafter (in thousands):



2015 (remainder)	$	623
2016	2,492
2017	1,930
2018	1,930
2019	1,930
Thereafter	7,671
Total	$	16,576

At September 30, 2015 and December 31, 2014, the Company had acquired software licenses and other intangibles of $0.3 million and $0.4 million, respectively, net of accumulated amortization of $2.5 million and $2.4 million, respectively. The acquired software licenses represent rights to use certain software necessary for the development and commercial sale of the Company’s products.

Fair Value Measurement of Assets and Liabilities

9 Months Ended

Sep. 30, 2015

Fair Value Disclosures [Abstract]

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.

The Company classifies 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) and is defined as follows:


Level 1:	Pricing inputs are based on quoted market prices for identical assets or liabilities in active markets (e.g., NYSE or NASDAQ). 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 and 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.

The Company reviews the fair value hierarchy classification on a quarterly basis. Changes in the observability of valuation inputs may result in a reclassification of levels for certain securities within the fair value hierarchy. There have been no transfers of assets or liabilities between fair value measurement classifications during the nine months ended September 30, 2015.

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 September 30, 2015 (in thousands):



	Balance as of September 30, 2015		Level 1
Assets:
Cash equivalents
Money market funds	$	2,935	$	2,935
Total cash equivalents	$	2,935	$	2,935



	Balance as of December 31, 2014		Level 1		Level 2
Assets:
Cash equivalents
Money market funds	$	1,134	$	1,134	$	—
Certificates of deposit	980		—		980
Total cash equivalents	$	2,114	$	1,134	$	980

Other Financial Instruments

On June 10, 2015, the Company issued $120.0 million of 5.50% convertible senior notes due 2020 (the “Convertible Notes”) (see Note 6). Interest is payable semi-annually in arrears on January 15 and December 15 of each year, beginning on December 15, 2015. The fair value of the liability component of the Convertible Notes, which approximated its carrying value due to the recent issuance of such Convertible Notes, was $80.4 million as of September 30, 2015. The debt and equity components of the Convertible Notes were measured using Level 3 inputs and are not measured on a recurring basis.

Debt

9 Months Ended

Sep. 30, 2015

Debt Disclosure [Abstract]

Debt

Revolving Credit Facility

On October 31, 2014, the Company and one of its subsidiaries entered into a five-year senior secured revolving credit facility in the amount of $25.0 million (the “Revolver”) with Wells Fargo Bank, National Association, as lender. Concurrently with the acquisition of FW, the Company amended the Revolver to include FW as a borrower and Loan Party, as defined by the agreement.

The amount of borrowings that may be made under the Revolver is based on a borrowing base comprised of a specified percentage of eligible receivables. If, at any time during the term of the Revolver, the amount of borrowings outstanding under the Revolver exceeds the borrowing base then in effect, the Company is required to repay such borrowings in an amount sufficient to eliminate such excess. The Revolver includes $3.0 million available for letters of credit.

The Company may borrow funds under the Revolver from time to time, with interest payable monthly at a base rate determined by using the daily three month LIBOR rate, plus an applicable margin of 2.50% to 3.00% depending on the Company’s liquidity as determined on the last day of each calendar month. The Revolver is secured by a first priority lien on substantially all of the assets of the Company and certain of its subsidiaries, subject to certain exceptions and permitted liens. The Revolver includes customary representations and warranties, as well as customary reporting and financial covenants.

At September 30, 2015 and December 31, 2014, the balance of the revolving credit facility was $0.0 million and $5.2 million, respectively. Based on the Company's eligible receivables at September 30, 2015, the Company has available borrowings of approximately $17.6 million. At September 30, 2015, the Company was in compliance with all financial covenants contained in the credit agreement.

Convertible Senior Notes

On June 10, 2015, the Company issued $120.0 million aggregate principal amount of Convertible Notes. The Company incurred issuance costs of approximately $3.9 million, $0.4 million of which was included in “Accrued expenses” in the unaudited condensed consolidated balance sheet at September 30, 2015. Subsequent to the balance sheet date, the Company used a portion of the proceeds from the offering to finance its acquisition of DigiCore, to pay fees and expenses related to the acquisition, and for general corporate purposes.

The Convertible Notes are governed by the terms of an indenture, dated June 10, 2015 (the “Indenture”), entered into between the Company, as issuer, and Wilmington Trust, National Association, as trustee (the “Trustee”). The Convertible Notes are senior unsecured obligations and bear interest at a rate of 5.50% per year, payable semi-annually in arrears on June 15 and December 15 of each year, beginning on December 15, 2015. The Convertible Notes will mature on June 15, 2020, unless earlier repurchased or converted. The Convertible Notes will be convertible into cash, shares of the Company's common stock, or a combination thereof, at the election of the Company, at an initial conversion rate of 200.0000 shares of common stock per $1,000 principal amount of the Convertible Notes, which corresponds to an initial conversion price of $5.00 per share of the Company’s common stock.

The conversion rate is subject to adjustment from time to time upon the occurrence of certain events, including, but not limited to, the issuance of stock dividends and payment of cash dividends. At any time prior to the close of business on the business day immediately preceding December 15, 2019, holders may convert their Convertible Notes at their option only under the following circumstances:

(i)

during any calendar quarter commencing after the calendar quarter ended on September 30, 2015 (and only during such calendar quarter), if the last reported sale price of the Company’s common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter equals or exceeds 130% of the conversion price on each applicable trading day;

(ii)

during the five consecutive business day period immediately after any five consecutive trading day period (the “Measurement Period”) in which the trading price per $1,000 principal amount of the Convertible Notes for each trading day of the Measurement Period was less than 98% of the product of the last reported sale price of the Company’s common stock and the conversion rate on each such trading day;


(iii)	upon the occurrence of certain corporate events specified in the Indenture; or


(iv)	if the Company has called the Convertible Notes for redemption.

On or after December 15, 2019, the holders may convert any of their Convertible Notes at any time prior to the close of business on the business day immediately preceding the maturity date.

The Company may redeem all or a portion of the Convertible Notes at its option on or after June 15, 2018 if the last reported sale price per share of the Company’s common stock equals or exceeds 140% of the conversion price for each of at least 20 trading days (whether or not consecutive) during the 30 consecutive trading days ending on, and including, the trading day immediately prior to the date on which the Company provides written notice of redemption, at a redemption price equal to 100% of the principal amount of the Convertible Notes to be redeemed, plus any accrued and unpaid interest on such Convertible Notes, subject to the right of holders as of the close of business on an interest record date to receive the related interest. In addition, if the Company calls the Convertible Notes for redemption, a “make-whole fundamental change” (as defined in the Indenture) will be deemed to occur. As a result, the Company will, in certain circumstances, increase the conversion rate for holders who convert their Convertible Notes in connection with such redemption.

No “sinking fund” is provided for the Convertible Notes, which means that the Company is not required to periodically redeem or retire the Convertible Notes. If the Company undergoes a “fundamental change” (as defined in the Indenture), subject to certain conditions, holders may require the Company to repurchase for cash all or part of their Convertible Notes in principal amounts of $1,000, or an integral multiple of $1,000 in excess thereof. The fundamental change repurchase price will be equal to 100% of the principal amount of the Convertible Notes to be repurchased, plus accrued and unpaid interest to, but excluding, the fundamental change repurchase date, subject to the right of holders as of the close of business on an interest record date to receive the related interest. In addition, every fundamental change is a make-whole fundamental change. As a result, the Company will, in certain circumstances, increase the conversion rate for holders who convert their Convertible Notes in connection with such fundamental change.

The Indenture also provides for customary events of default. If an event of default (other than certain events of bankruptcy, insolvency or reorganization involving the Company) occurs and is continuing, the Trustee, by notice to the Company, or the holders of at least 25% in principal amount of the outstanding Convertible Notes, by notice to the Company and the Trustee, may declare the principal and accrued and unpaid interest on the outstanding Convertible Notes to be immediately due and payable. Upon the occurrence of certain events of bankruptcy, insolvency or reorganization involving the Company, 100% of the principal and accrued and unpaid interest of the Convertible Notes will automatically become immediately due and payable. Notwithstanding the foregoing, the Indenture provides that, to the extent the Company elects and for up to 60 days, the sole remedy for an event of default relating to certain failures by the Company to comply with certain reporting covenants consists exclusively of the right to receive special interest on the Convertible Notes at a rate equal to 0.50% per annum on the principal amount of the outstanding Convertible Notes.

In accordance with accounting guidance for debt with conversion and other options, the Company separately accounts for the liability and equity components of the Convertible Notes by allocating the proceeds between the liability component and the embedded conversion option, or equity component, due to its ability to settle the Convertible Notes in cash, common stock, or a combination of cash and common stock, at the Company’s option. The carrying amount of the liability component was calculated by measuring the fair value of a similar instrument that does not have an associated convertible feature. The allocation was performed in a manner that reflected the Company’s non-convertible debt borrowing rate for similar debt. The equity component of the Convertible Notes was recognized as a debt discount and represents the difference between the aggregate proceeds from the issuance of the Convertible Notes and the fair value of the liability of the Convertible Notes on the date of issuance. The excess of the aggregate principal amount of the liability component over its carrying amount, or debt discount, is amortized to interest expense using the effective interest method over five years, or the life of the Convertible Notes. The equity component is not remeasured as long as it continues to meet the conditions for equity classification.

The Convertible Notes consisted of the following at September 30, 2015 (in thousands):



Liability component:
Principal	$	120,000
Less: unamortized debt discount and debt issuance costs	(39,650		)
Net carrying amount	$	80,350
Equity component	$	38,305

In connection with the issuance of the Convertible Notes, the Company incurred approximately $3.9 million of issuance costs, which primarily consisted of underwriting, legal and other professional fees, and allocated the costs to the liability and equity components based on the allocation of the proceeds. Of the approximately $3.9 million of issuance costs, approximately $1.3 million were allocated to the equity component and recorded as a reduction to additional paid-in capital and $2.6 million were allocated to the liability component and recorded as a decrease to the carrying amount of the liability component on the unaudited condensed consolidated balance sheet. The portion allocated to the liability component is amortized to interest expense over the expected life of the Convertible Notes using the effective interest method.

The Company determined the expected life of the debt was equal to the five-year term of the Convertible Notes. As of September 30, 2015, the carrying value of the Convertible Notes was $80.4 million. The effective interest rate on the liability component was 18.71% for the period from the date of issuance through September 30, 2015. The following table sets forth total interest expense recognized related to the Convertible Notes during the three and nine months ended September 30, 2015 (in thousands):



	Three Months Ended September 30, 2015		Nine Months Ended September 30, 2015
Contractual interest expense	$	1,649	$	2,016
Amortization of debt discount	1,980		2,420
Amortization of debt issuance costs	132		161
Total interest expense	$	3,761	$	4,597

Treasury Stock	9 Months Ended
Treasury Stock	Sep. 30, 2015
Equity [Abstract]
Treasury Stock	Treasury Stock During the first quarter of 2015, 2.4 million shares of common stock held by the Company as treasury stock were determined to have been retired. The retirement of the shares had no effect on the number of shares authorized or outstanding or on total stockholders’ equity.

Share-based Compensation

9 Months Ended

Sep. 30, 2015

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Share-based Compensation

The Company included the following amounts for share-based compensation awards in the unaudited condensed consolidated statements of operations (in thousands):



	Three Months Ended September 30,					Nine Months Ended September 30,
	2015		2014			2015		2014
Cost of revenues	$	49	$	12		$	107	$	(7	)
Research and development	196		190			598		448
Sales and marketing	135		(21		)	318		200
General and administrative	874		196			2,204		975
Total	$	1,254	$	377		$	3,227	$	1,616

Employee Stock Purchase Plan

The Company’s 2000 Employee Stock Purchase Plan (the “ESPP”) permits eligible employees to purchase newly issued shares of the Company's 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.

The Company terminated the ESPP in 2012 but reinstated the program effective August 16, 2014. Under the reinstated ESPP, the Company is authorized to issue 1,500,132 shares of common stock purchased by eligible employees under the plan.

During the three and nine months ended September 30, 2015, the Company recognized $0.1 million and $0.3 million, respectively, of stock-based compensation expense related to the ESPP. During each of the three and nine months ended September 30, 2014, the Company recognized approximately $26,000 of stock-based compensation expense related to the ESPP.

Employee Stock Purchase Plan

9 Months Ended

Sep. 30, 2015

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Employee Stock Purchase Plan

Share-based Compensation

The Company included the following amounts for share-based compensation awards in the unaudited condensed consolidated statements of operations (in thousands):



	Three Months Ended September 30,					Nine Months Ended September 30,
	2015		2014			2015		2014
Cost of revenues	$	49	$	12		$	107	$	(7	)
Research and development	196		190			598		448
Sales and marketing	135		(21		)	318		200
General and administrative	874		196			2,204		975
Total	$	1,254	$	377		$	3,227	$	1,616

Employee Stock Purchase Plan

Geographic Information and Concentrations of Risk

9 Months Ended

Sep. 30, 2015

Segment Reporting [Abstract]

Geographic Information and Concentrations of Risk

Geographic Information

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



	Three Months Ended September 30,				Nine Months Ended September 30,
	2015		2014		2015		2014
United States and Canada	96.4	%	90.3	%	96.2	%	90.3	%
Latin America	0.4		1.6		0.6		1.3
Europe, Middle East, Africa and other	2.9		7.3		3.0		7.3
Asia and Australia	0.3		0.8		0.2		1.1
	100.0	%	100.0	%	100.0	%	100.0	%

Concentrations of Risk

A majority 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 comes from a small number of customers. For the three months ended September 30, 2015, sales to the Company's largest customer accounted for 64.2% of net revenues. In the same period in 2014, sales to its two largest customers accounted for 54.4% and 11.8% of net revenues, respectively. For the nine months ended September 30, 2015, sales to the Company's largest customer accounted for 56.0% of net revenues. For the same period in 2014, sales to its largest customer accounted for 43.5% of net revenues.

The Company outsources its manufacturing to several third-party manufacturers. If the manufacturers were to experience delays, disruptions, capacity constraints or quality control problems in their manufacturing operations, product shipments to the Company’s customers could be delayed or the Company's customers could consequently elect to cancel their underlying orders, 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=51669610&loc=d3e8981-108599

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
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-Publisher FASB
-Name Accounting Standards Codification
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-Publisher FASB
-Name Accounting Standards Codification
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-Section 50
-Paragraph 30
-URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8906-108599

+ Details

Securities Purchase Agreement and Warrant Issuances	9 Months Ended
Securities Purchase Agreement and Warrant Issuances	Sep. 30, 2015
Equity [Abstract]
Securities Purchase Agreement and Warrant Issuances	Securities Purchase Agreement and Warrant Issuances On September 3, 2014, the Company entered into a purchase agreement (the “Purchase Agreement”) with HC2 Holdings 2, Inc., a Delaware corporation (the “Investor”), pursuant to which, on September 8, 2014, the Company sold to the Investor (i) 7,363,334 shares of the Company’s common stock, par value $0.001 per share, (ii) a warrant to purchase 4,117,647 shares of the Company's common stock at an exercise price of $2.26 per share (the “2014 Warrant”) and (iii) 87,196 shares of the Company’s Series C Convertible Preferred Stock, par value $0.001 per share (the “Series C Preferred Stock”), all at a purchase price of (a) $1.75 per share of common stock plus, in each case, the related 2014 Warrant and (b) $17.50 per share of Series C Preferred Stock, for aggregate gross proceeds of approximately $14.4 million. Due to insufficient authorized shares to satisfy the exercise of the instrument in full at the time of issuance, the Company determined that the instrument should be treated as a derivative instrument as of September 30, 2014. Liability classification was required because share settlement was not within the control of the Company and the 2014 Warrant was not considered to be “indexed to the company’s own stock” and therefore did not qualify for the exemptions provided by ASC 815. Because the 2014 Warrant had no comparable market data to determine fair value, the Company hired an independent valuation firm to assist with the valuation of the 2014 Warrant at the measurement date and as of September 30, 2014. The primary factors used to determine the fair value included: (i) the fair value of the Company’s common stock; (ii) the volatility of the Company’s common stock; (iii) the risk free interest rate; (iv) the estimated likelihood and timing of exercise; and (v) the estimated likelihood and timing of a future financing arrangement. Increases in the market value of the Company’s common stock and volatility, which have the most impact on the fair value of the 2014 Warrant, would cause the fair value of the 2014 Warrant to change. While classified as a liability, the 2014 Warrant was measured at fair value on a recurring basis and any unrealized losses were recognized in earnings as other expense. During the three months ended September 30, 2014, the Company recorded a change in fair value of $4.8 million related to the 2014 Warrant, primarily as a result of an increase in the market value of the Company’s common stock. On November 17, 2014, at a Special Meeting of the Stockholders, the Company received stockholder approval to increase the number of authorized shares of the Company's common stock. With this approval, the Company had a sufficient amount of authorized shares to satisfy the exercise of the instrument in full. As a result, the Company marked the 2014 Warrant to fair value and then reclassified it to additional paid-in-capital. On March 26, 2015, the Investor exercised a portion of the 2014 Warrant to purchase 3,824,600 shares of the Company's common stock at an exercise price of $2.26 per share for total proceeds of $8.6 million. On March 26, 2015, in order to induce the Investor to exercise the 2014 Warrant for cash in connection with the acquisition of FW, the Company issued to the Investor a new warrant (the “2015 Warrant”) to purchase 1,593,583 shares of the Company's common stock at an exercise price of $5.50 per share. The 2015 Warrant will be exercisable into shares of the Company's common stock during the period commencing on September 26, 2015 and ending on March 26, 2020, the expiration date of the 2015 Warrant. The 2015 Warrant will generally only be exercisable on a cash basis; provided, however, that the 2015 Warrant may be exercised on a cashless basis if and only if a registration statement relating to the issuance of the shares underlying the 2015 Warrant is not then effective or an exemption from registration is not available for the resale of such shares. The 2015 Warrant may be exercised by surrendering to the Company the certificate evidencing the 2015 Warrant to be exercised with the accompanying exercise notice, appropriately completed, duly signed and delivered, together with cash payment of the exercise price, if applicable. The Company reviewed the terms of the 2015 Warrant to determine whether or not it met the criteria of a derivative instrument under Accounting Standards Codification (“ASC”) 815, Derivatives and Hedges. Pursuant to this guidance, the Company has determined that the 2015 Warrant does not require liability accounting and has classified the warrant as equity. Because the 2015 Warrant has no comparable market data to determine fair value, the Company hired an independent valuation firm to assist with the valuation of the 2015 Warrant at March, 26, 2015, the issuance date of the warrant. The primary factors used to determine the fair value include: (i) the fair value of the Company’s common stock; (ii) the volatility of the Company’s common stock; (iii) the risk free interest rate and (iv) the estimated likelihood and timing of exercise. The 2015 Warrant was issued in connection with the cash exercise of the 2014 Warrant, and accordingly, the fair value of the 2015 Warrant of $3.5 million was considered cost of capital and netted against the $8.6 million aggregate proceeds received from the exercise of the 2014 Warrant.

Earnings Per Share

9 Months Ended

Sep. 30, 2015

Earnings Per Share [Abstract]

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 warrants, options, restricted stock units (“RSUs”) and ESPP withholdings calculated 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.

Stock Options

On March 27, 2015, in connection with the acquisition of FW, the Company granted inducement stock options to 91 FW employees to acquire an aggregate of 323,000 shares of the Company's common stock under the Company’s Amended and Restated 2009 Omnibus Incentive Compensation Plan. The inducement awards became effective upon the closing of the acquisition. These stock options granted to FW employees have an exercise price of $4.65 per share. The options have a ten-year term and will vest 25% on the first year anniversary of the grant date with the remaining 75% vesting in equal monthly increments each month thereafter for three years. In the event of termination of employment, all unvested options will terminate.

Additionally, under the Company’s Amended and Restated 2009 Omnibus Incentive Compensation Plan, the Company granted 3,702,470 and 5,774,170 stock options to eligible Company participants during the three and nine months ended September 30, 2015, respectively.

The calculation of basic and diluted earnings per share was as follows (in thousands, except per share data):



	Three Months Ended September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014
Net loss	$	(20,847	)	$	(8,832	)	$	(37,893	)	$	(35,228	)
Weighted-average common shares outstanding	55,181			38,167			51,648			35,568
Basic and diluted net loss per share	$	(0.38	)	$	(0.23	)	$	(0.73	)	$	(0.99	)

The Company has included the minimum number of shares that are to be issued in March 2016 related to the Company's acquisition of RER in basic weighted-average common shares outstanding for the three and nine months ended September 30, 2015.

For the three months ended September 30, 2015 and 2014, the computation of diluted EPS excluded 7,757,889 shares and 4,761,066 shares, respectively, related to warrants, options, RSUs and the ESPP as their effect would have been anti-dilutive. For the nine months ended September 30, 2015 and 2014, the computation of diluted EPS excluded 6,262,129 shares and 5,313,009 shares, respectively, related to warrants, options, RSUs and the ESPP as their effect would have been anti-dilutive.

Commitments and Contingencies	9 Months Ended
Commitments and Contingencies	Sep. 30, 2015
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Employee Retention In connection with the Company’s turnaround efforts, and to retain and encourage employees to assist the Company with its efforts, during 2014 the Company’s compensation committee approved an all-employee retention bonus plan based on the achievement of certain financial and cash targets. The financial metrics had to be met for two consecutive quarter periods during the three quarter periods ending March 31, 2015. The Company recognized the bonus expense of $10.7 million over the requisite service period, $5.2 million of which was recognized during the nine months ended September 30, 2015. In the third quarter of 2015, the Company paid U.S. employees their bonuses with 2,158,436 net shares of the Company’s common stock. Non-U.S. employees receive cash bonus payments. Legal 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 an evaluation of these matters and discussions with the Company’s intellectual property litigation counsel, the Company currently believes that liabilities arising from or sums paid in settlement of these existing matters, if any, would not have a material adverse effect on its consolidated results of operations or financial condition. Indemnification 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.

Income Taxes	9 Months Ended
Income Taxes	Sep. 30, 2015
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes 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: (i) future reversals of existing taxable temporary differences (i.e., offset of gross deferred tax assets against gross deferred tax liabilities); (ii) taxable income in prior carryback years, if carryback is permitted under the applicable tax law; (iii) tax planning strategies; and (iv) future taxable income exclusive of reversing temporary differences and carryforwards. In assessing whether a valuation allowance is required, significant weight is to be given to evidence that can be objectively verified. A significant factor in the Company’s assessment is that the Company is in a three-year historical cumulative loss position. This fact, combined with uncertain near-term market and economic conditions, reduced the Company’s ability to rely on projections of future taxable income in assessing the realizability of its deferred tax assets. After a review of the four sources of taxable income as of September 30, 2015 (as described above), the Company recognized increases in the valuation allowance primarily related to its U.S.-based deferred tax amounts, resulting from carryforward net operating losses generated during the nine months ended September 30, 2015. These deferred tax benefits, combined with a corresponding charge to income tax expense related to an increase in the valuation allowance of $13.6 million for the nine months ended September 30, 2015, resulted in an insignificant effective income tax rate. The Company’s valuation allowance was $104.4 million on net deferred tax assets of $104.4 million at September 30, 2015. For the three and nine months ended September 30, 2015, the Company recorded an income tax expense of approximately $45,000 and $139,000, respectively. This amount varies from the income tax expense that would be computed at the U.S. statutory rate resulting from its operating loss during the period primarily due to the aforementioned offsetting increase in the Company’s deferred tax assets valuation allowance. Pursuant to Internal Revenue Code 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 had multiple equity shifts during 2015 and it is possible that, as a result of these equity shifts, the Company may have experienced a change in ownership event. The Company plans to update the Section 382 analysis at a later date. 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. As of September 30, 2015 and December 31, 2014, the Company recorded no liability for unrecognized tax benefits. For the nine months ended September 30, 2015, the Company recorded no interest expense related to uncertain tax positions. The Company and its subsidiaries file U.S., state, and foreign income tax returns in jurisdictions with various statutes of limitations. The Company is also subject to various federal income tax examinations for the 2003 through 2014 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.

Restructuring

9 Months Ended

Sep. 30, 2015

Restructuring and Related Activities [Abstract]

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 (the “2013 Initiatives”). The 2013 Initiatives are expected to be completed in December 2016.

In June 2014, the Company commenced certain restructuring initiatives relating to the reorganization of executive level management (the “2014 Initiatives”), which included among other actions, the replacement of the former Chief Executive Officer. The 2014 Initiatives were completed during the first quarter of 2015.

On August 3, 2015, the Company approved a restructuring initiative to better position the Company to operate in current market conditions and more closely align operating expenses with revenues (the “2015 Initiative”), which included employee severance costs, which were paid in full during the third quarter of 2015, and facility exit related costs. The 2015 Initiative is expected to be completed in June 2020.

During the nine months ended September 30, 2015, the Company recorded reductions in restructuring related charges resulting from a reevaluation in the first quarter of 2015 of its expected remaining restructuring accrual for facility exit related costs and employment contract costs related to the 2013 Initiatives and 2014 Initiatives, respectively.

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 the Company does not intend to sublease the facilities.

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 that such sublease income will be realized. 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 current estimates. Exit costs recorded by the Company 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 nine months ended September 30, 2015 (in thousands):



	Balance at December 31, 2014		Costs Incurred			Payments			Balance at September 30, 2015		Cumulative Costs Incurred to Date		Total Expected Restructuring Costs
2013 Initiatives
Employee Severance Costs	$	—	$	—		$	—		$	—	$	3,986	$	3,986
Facility Exit Related Costs	232		(3		)	(141		)	88		2,622		2,630

2014 Initiatives
Employment Contract Costs	1,751		(151		)	(1,600		)	—		3,428		3,428
Share-based Compensation Costs	—		—			—			—		1,298		1,298

2015 Initiative
Employee Severance Costs	—		571			(571		)	—		571		571
Facility Exit Related Costs	—		372			—			372		372		500
Total	$	1,983	$	789		$	(2,312	)	$	460	$	12,277	$	12,413

The balance of the restructuring liability at September 30, 2015 consists of approximately $219,000 in current liabilities and $241,000 in non-current liabilities.

Basis of Presentation (Policies)

9 Months Ended

Sep. 30, 2015

Accounting Policies [Abstract]

Basis of Presentation

The information contained herein has been prepared by Novatel Wireless, Inc. (the “Company”) in accordance with the rules of the Securities and Exchange Commission (the “SEC”). The information at September 30, 2015 and the results of the Company’s operations for the three and nine months ended September 30, 2015 and 2014 are unaudited. The condensed consolidated financial statements reflect all adjustments, consisting of only normal recurring accruals, which are, in the opinion of management, necessary for a fair statement of the results of the interim periods presented. These condensed consolidated financial statements and notes hereto should be read in conjunction with the audited financial statements from which they were derived and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. The accounting policies used in preparing these condensed consolidated financial statements are the same as those described in the Company’s Form 10-K. The results of operations for the interim periods presented are not necessarily indicative of results to be expected for any other interim period or for the year as a whole.

Principles of Consolidation

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

Segment Information

In the first quarter of fiscal year 2015, the Company and its Chief Operating Decision Maker (the “CODM”) completed a reassessment of the Company's operations in light of a series of restructuring efforts, organizational transformation and reporting changes, including the hiring of a new Chief Executive Officer and Chief Financial Officer. As a result of this reassessment, the Company has consolidated the Mobile Computing and machine-to-machine (“M2M”) divisions into one reportable segment. The current Chief Executive Officer, who is also the CODM, does not manage any part of the Company separately, and the allocation of resources and assessment of performance is based solely on the Company’s consolidated operations and operating results.

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, valuation of goodwill, valuation of debt obligations, valuation of contingent consideration, royalty costs, fair value of warrants, accruals relating to litigation, restructuring, valuation of retention bonus payments, provision for warranty costs, income taxes and share-based compensation expense.

Intangible Assets

Intangible assets include purchased definite-lived and indefinite-lived intangible assets resulting from the acquisitions of Feeney Wireless, LLC and Enfora, Inc. (“Enfora”), along with the costs of non-exclusive and perpetual worldwide software technology licenses. Definite-lived intangible assets, including software technology licenses, 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. License fees are amortized on a straight-line basis over the shorter of the term of the license or an estimate of their useful life, ranging from one to three years. Developed technologies are amortized on a straight-line basis over their useful lives, ranging from five to eight years. Customer relationships, trademarks and trade names are amortized on a straight-line basis over ten years. Indefinite-lived assets are not amortized; however, they are tested for impairment annually and between annual tests if certain events occur indicating that the carrying amounts may be impaired. If a qualitative assessment is used and the Company determines that the fair value of an indefinite-lived intangible asset is more likely than not (i.e., a likelihood of more than 50%) less than its carrying amount, a quantitative impairment test will be performed. If indefinite-lived intangible assets are quantitatively assessed for impairment, a two-step approach is applied. First, the Company compares the estimated fair value of the indefinite-lived intangible asset to its carrying value. The second step, if necessary, measures the amount of such impairment by comparing the implied fair value of the asset to its carrying value.

Derivative Financial Instruments

The Company evaluates stock options, stock warrants and other contracts to determine if those contracts or embedded components of those contracts qualify as derivative financial instruments to be separately accounted for under the relevant sections of the Financial Accounting Standards Board (the “FASB”) Accounting Standards Codification. The result of this accounting treatment could be that the fair value of a financial instrument is classified as a derivative financial instrument and is marked-to-market at each balance sheet date and recorded as an asset or liability. In the event that the fair value is recorded as an asset or liability, the change in fair value is recorded in the statement of operations as other income or other expense. Upon conversion, exercise or expiration of a derivative financial instrument, the instrument is marked to fair value and then that fair value is reclassified to equity.

Acquisitions

When acquiring companies, the Company recognizes separately from goodwill the assets acquired and the liabilities assumed at their acquisition date fair values. Goodwill as of the acquisition date is measured as the excess of consideration transferred and the net of the acquisition date fair values of the assets acquired and the liabilities assumed. While the Company uses its best estimates and assumptions as a part of the purchase price allocation process to accurately value assets acquired and liabilities assumed at the acquisition date, the Company's estimates are inherently uncertain and subject to refinement. As a result, during the measurement period, which may be up to one year from the acquisition date, the Company records adjustments to the assets acquired and liabilities assumed, with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to the condensed consolidated statements of operations.

Accounting for business combinations requires the Company's management to make significant estimates and assumptions, especially at the acquisition date with respect to intangible assets, support liabilities assumed, and pre-acquisition contingencies. Although the Company believes the assumptions and estimates it has made in the past have been reasonable and appropriate, they are based in part on historical experience, market data and information obtained from the management of the acquired companies and are inherently uncertain.

Examples of critical estimates in valuing certain of the intangible assets the Company has acquired include but are not limited to: (i) future expected cash flows from customer relationships; (ii) estimates to develop or use technology; and (iii) discount rates.

If the Company determines that a pre-acquisition contingency is probable in nature and estimable as of the acquisition date, the Company records its best estimate for such a contingency as a part of the preliminary fair value allocation. The Company continues to gather information for and evaluate pre-acquisition contingencies throughout the measurement period and if the Company makes changes to the amounts recorded or if the Company identifies additional pre-acquisition contingencies during the measurement period, such amounts will be included in the fair value allocation during the measurement period and, subsequently, in the Company's results of operations.

The Company may be required to pay future consideration to the former shareholders of acquired companies, depending on the terms of the applicable purchase agreements, which may be contingent upon the achievement of certain financial and operating targets, as well as the retention of key employees. If the future consideration is considered to be compensation, amounts will be expensed when incurred.

Convertible Debt

Convertible debt

The Company accounts for its convertible debt instruments that are settleable in cash upon conversion (including partial cash settlement) by separating the liability and equity components of the instruments in a manner that reflects the Company's nonconvertible debt borrowing rate. The Company determines the carrying amount of the liability component by measuring the fair value of similar debt instruments that do not have the conversion feature. If a similar debt instrument does not exist, the Company estimates the fair value by using assumptions that market participants would use in pricing a debt instrument, including market interest rates, credit standing, yield curves and volatilities. Determining the fair value of the debt component requires the use of accounting estimates and assumptions. These estimates and assumptions are judgmental in nature and could have a significant impact on the determination of the debt component and the associated non-cash interest expense.

The Company assigns a value to the debt component equal to the estimated fair value of similar debt instruments without the conversion feature, which could result in the Company recording the debt instrument at a discount. If the debt instrument is recorded at a discount, the Company amortizes the debt discount over the life of the debt instrument as additional non-cash interest expense utilizing the effective interest method.

New Accounting Pronouncements

From time to time, new accounting pronouncements are issued by the FASB, which are adopted by the Company as of the specified date. Unless otherwise discussed, management believes the impact of recently issued standards, some of which are not yet effective, will not have a material impact on its unaudited condensed consolidated financial statements upon adoption.

In September 2015, the FASB issued Accounting Standards Update (“ASU”) 2015-16, Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments. The update eliminates the requirement for an acquirer to retrospectively adjust provisional amounts recorded in a business combination to reflect new information about the facts and circumstances that existed as of the acquisition date and that, if known, would have affected measurement or recognition of amounts initially recognized. As an alternative, the update requires that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The update requires that the acquirer record, in the financial statements of the period in which adjustments to provisional amounts are determined, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. This guidance is effective prospectively for interim and annual periods beginning after December 15, 2015. Early adoption is permitted. The Company is currently assessing the impact of this guidance.

In August 2015, the FASB issued ASU 2015-15, Interest — Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements — Amendments to SEC Paragraphs Pursuant to Staff Announcement at June 18, 2015 EITF Meeting, which clarifies the treatment of debt issuance costs from line-of-credit arrangements after the adoption of ASU 2015-03. In particular, ASU 2015-15 clarifies that the SEC staff would not object to an entity deferring and presenting debt issuance costs related to a line-of-credit arrangement as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of such arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. The Company implemented this guidance during the third quarter of 2015. This guidance did not have a material impact on our unaudited condensed consolidated financial statements upon adoption.

In July 2015, the FASB issued ASU 2015-11, Simplifying the Measurement of Inventory. Under this standard, inventory will be measured at the “lower of cost and net realizable value” and options that currently exist for “market value” will be eliminated. The standard defines net realizable value as the “estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation.” No other changes were made to the current guidance on inventory measurement. This guidance is effective for interim and annual periods beginning after December 15, 2016. Early adoption is permitted and should be applied prospectively. The Company is currently assessing the impact of this guidance.

In April 2015, the FASB issued ASU 2015-05, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer's Accounting for Fees Paid in a Cloud Computing Arrangement. Under this standard, if a cloud computing arrangement includes a software license, the software license element of the arrangement should be accounted for consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the arrangement should be accounted for as a service contract. This guidance is effective for interim and annual periods beginning after December 15, 2015. Early adoption is permitted. The Company is currently assessing the impact of this guidance.

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, which provides guidance for revenue recognition. The new standard will require revenue recognized to represent the transfer of promised goods or services to customers in an amount that reflects the consideration in which a company expects to receive in exchange for those goods or services. The standard also requires new, expanded disclosures regarding revenue recognition. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers: Deferral of Effective Date. The standard defers the effective date of adoption of ASU 2014-09 to interim and annual reporting periods beginning after December 15, 2017. Early adoption is permitted but not before the original effective date of December 15, 2016. The Company is currently assessing the impact of this guidance.

Fair Value Measurement


Level 1:	Pricing inputs are based on quoted market prices for identical assets or liabilities in active markets (e.g., NYSE or NASDAQ). 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:


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

Acquisitions (Tables)

9 Months Ended

Sep. 30, 2015

Business Combinations [Abstract]

Schedule of Business Acquisitions, by Acquisition

The fair value has been allocated based on the estimated fair values of assets acquired and liabilities assumed as follows (in thousands):



	March 27, 2015
Cash	$	205
Accounts receivable	3,331
Inventory	10,008
Property and equipment	535
Intangible assets	18,880
Goodwill	3,194
Other assets	544
Accounts payable	(7,494		)
Accrued and other liabilities	(1,161		)
Deferred revenues	(270		)
Note payable	(2,575		)
Capital lease obligations	(420		)
Net assets acquired	$	24,777

Set forth below is supplemental purchase consideration information related to the FW acquisition (in thousands):



	Nine Months Ended September 30, 2015
Cash payments	$	9,268
Future issuance of common stock	15,000
Other assumed liabilities	509
Total purchase price	$	24,777

Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination

The following table sets forth the components of intangible assets acquired in connection with the FW acquisition (dollars in thousands):



	Amount Assigned		Amortization Period (in years)
Definite-lived intangible assets:
Developed technologies	$	3,660	6.0
Trademarks	4,700		10.0
Customer relationships	8,500		10.0
Indefinite-lived intangible assets:
In-process research and development	2,020
Total intangible assets acquired	$	18,880

Business Acquisition, Pro Forma Information



	Three Months Ended September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014
Net revenues	$	54,577		$	49,198		$	167,957		$	144,964
Net loss	$	(20,847	)	$	(9,287	)	$	(38,479	)	$	(36,958	)

Balance Sheet Details (Tables)

9 Months Ended

Sep. 30, 2015

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Summary of Inventories

Inventories consist of the following (in thousands):



	September 30, 2015		December 31, 2014
Finished goods	$	34,539	$	33,045
Raw materials and components	5,658		4,758
	$	40,197	$	37,803

Summary of Accrued Expenses

Accrued expenses consist of the following (in thousands):



	September 30, 2015		December 31, 2014
Royalties	$	5,594	$	4,035
Payroll and related expenses	4,951		8,038
Product warranty	948		1,196
Market development funds and price protection	2,759		2,502
Professional fees	636		780
Deferred revenue	596		962
Restructuring	219		1,886
Acquisition-related earn out	4,024		—
Other	4,756		4,445
	$	24,483	$	23,844

Summary of Accrued Warranty Obligations

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



	Nine Months Ended September 30,
	2015			2014
Warranty liability at beginning of period	$	1,196		$	2,244
Additions charged to operations	553			1,078
Deductions from liability	(801		)	(1,998		)
Warranty liability at end of period	$	948		$	1,324

Intangible Assets (Tables)

9 Months Ended

Sep. 30, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Amortizable Purchased Intangible Assets from Acquisition

The Company’s amortizable purchased intangible assets resulting from its acquisitions of FW and Enfora are comprised of the following (in thousands):



	September 30, 2015
	Gross		Accumulated Amortization			Accumulated Impairment			Net
Definite-lived intangible assets:
Developed technologies	$	29,660	$	(6,765	)	$	(19,547	)	$	3,348
Trademarks and trade names	17,500		(3,812		)	(8,582		)	5,106
Customer relationships	10,600		(858		)	(1,620		)	8,122
Other	1,620		(1,620		)	—			—
Total definite-lived intangible assets	$	59,380	$	(13,055	)	$	(29,749	)	16,576
Indefinite-lived intangible assets:
In-process research and development									2,020
Total purchased intangible assets									$	18,596



	December 31, 2014
	Gross		Accumulated Amortization			Accumulated Impairment			Net
Definite-lived intangible assets:
Developed technologies	$	26,000	$	(6,453	)	$	(19,547	)	$	—
Trademarks and trade names	12,800		(3,183		)	(8,582		)	1,035
Other	3,720		(2,011		)	(1,620		)	89
Total purchased intangible assets	$	42,520	$	(11,647	)	$	(29,749	)	$	1,124

Summary of Amortization Expenses of Purchased Intangible Assets

The following table presents details of the amortization of purchased definite-lived intangible assets included in the condensed consolidated statements of operations (in thousands):



	Three Months Ended September 30,				Nine Months Ended September 30,
	2015		2014		2015		2014
Cost of net revenues	$	312	$	83	$	312	$	250
Operating costs and expenses	273		141		1,096		421
Total amortization expense	$	585	$	224	$	1,408	$	671

Schedule of Amortization Expense of Purchased Intangible Assets Expected to be Recognized

The following table represents details of the amortization of existing purchased intangible assets that is estimated to be expensed in the remainder of 2015 and thereafter (in thousands):



2015 (remainder)	$	623
2016	2,492
2017	1,930
2018	1,930
2019	1,930
Thereafter	7,671
Total	$	16,576

Fair Value Measurement of Assets and Liabilities (Tables)

9 Months Ended

Sep. 30, 2015

Fair Value Disclosures [Abstract]

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



	Balance as of September 30, 2015		Level 1
Assets:
Cash equivalents
Money market funds	$	2,935	$	2,935
Total cash equivalents	$	2,935	$	2,935



	Balance as of December 31, 2014		Level 1		Level 2
Assets:
Cash equivalents
Money market funds	$	1,134	$	1,134	$	—
Certificates of deposit	980		—		980
Total cash equivalents	$	2,114	$	1,134	$	980

Debt (Tables)

9 Months Ended

Sep. 30, 2015

Debt Disclosure [Abstract]

Convertible Debt

The Convertible Notes consisted of the following at September 30, 2015 (in thousands):



Liability component:
Principal	$	120,000
Less: unamortized debt discount and debt issuance costs	(39,650		)
Net carrying amount	$	80,350
Equity component	$	38,305

Interest Income and Interest Expense Disclosure

The following table sets forth total interest expense recognized related to the Convertible Notes during the three and nine months ended September 30, 2015 (in thousands):



	Three Months Ended September 30, 2015		Nine Months Ended September 30, 2015
Contractual interest expense	$	1,649	$	2,016
Amortization of debt discount	1,980		2,420
Amortization of debt issuance costs	132		161
Total interest expense	$	3,761	$	4,597

Share-based Compensation (Tables)

9 Months Ended

Sep. 30, 2015

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Share-based Compensation

The Company included the following amounts for share-based compensation awards in the unaudited condensed consolidated statements of operations (in thousands):



	Three Months Ended September 30,					Nine Months Ended September 30,
	2015		2014			2015		2014
Cost of revenues	$	49	$	12		$	107	$	(7	)
Research and development	196		190			598		448
Sales and marketing	135		(21		)	318		200
General and administrative	874		196			2,204		975
Total	$	1,254	$	377		$	3,227	$	1,616

Geographic Information and Concentrations of Risk (Tables)

9 Months Ended

Sep. 30, 2015

Segment Reporting [Abstract]

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:



	Three Months Ended September 30,				Nine Months Ended September 30,
	2015		2014		2015		2014
United States and Canada	96.4	%	90.3	%	96.2	%	90.3	%
Latin America	0.4		1.6		0.6		1.3
Europe, Middle East, Africa and other	2.9		7.3		3.0		7.3
Asia and Australia	0.3		0.8		0.2		1.1
	100.0	%	100.0	%	100.0	%	100.0	%

Earnings Per Share (Tables)

9 Months Ended

Sep. 30, 2015

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted

The calculation of basic and diluted earnings per share was as follows (in thousands, except per share data):



	Three Months Ended September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014
Net loss	$	(20,847	)	$	(8,832	)	$	(37,893	)	$	(35,228	)
Weighted-average common shares outstanding	55,181			38,167			51,648			35,568
Basic and diluted net loss per share	$	(0.38	)	$	(0.23	)	$	(0.73	)	$	(0.99	)

Restructuring (Tables)

9 Months Ended

Sep. 30, 2015

Restructuring and Related Activities [Abstract]

Summary of Restructuring Liability

The following table sets forth activity in the restructuring liability for the nine months ended September 30, 2015 (in thousands):



	Balance at December 31, 2014		Costs Incurred			Payments			Balance at September 30, 2015		Cumulative Costs Incurred to Date		Total Expected Restructuring Costs
2013 Initiatives
Employee Severance Costs	$	—	$	—		$	—		$	—	$	3,986	$	3,986
Facility Exit Related Costs	232		(3		)	(141		)	88		2,622		2,630

2014 Initiatives
Employment Contract Costs	1,751		(151		)	(1,600		)	—		3,428		3,428
Share-based Compensation Costs	—		—			—			—		1,298		1,298

2015 Initiative
Employee Severance Costs	—		571			(571		)	—		571		571
Facility Exit Related Costs	—		372			—			372		372		500
Total	$	1,983	$	789		$	(2,312	)	$	460	$	12,277	$	12,413

Basis of Presentation Narrative (Details) $ in Thousands	9 Months Ended
Basis of Presentation Narrative (Details) $ in Thousands	Sep. 30, 2015 USD ($) Segments	Sep. 30, 2014 USD ($)
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of reportable segments \| Segments	1
Finite-Lived Intangible Assets [Line Items]
Impairment of intangible assets \| $	$ 0	$ 0
Trademarks and Trade Names
Finite-Lived Intangible Assets [Line Items]
Useful life	10 years
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Useful life	10 years
Minimum \| Licensing Agreement
Finite-Lived Intangible Assets [Line Items]
Useful life	1 year
Minimum \| Developed Technology Rights
Finite-Lived Intangible Assets [Line Items]
Useful life	5 years
Maximum \| Licensing Agreement
Finite-Lived Intangible Assets [Line Items]
Useful life	3 years
Maximum \| Developed Technology Rights
Finite-Lived Intangible Assets [Line Items]
Useful life	8 years

Acquisitions - Narrative (Details) R / shares in Units, $ in Thousands						3 Months Ended		9 Months Ended
	Oct. 05, 2015 ZAR (R)	Oct. 05, 2015 USD ($)	Sep. 30, 2015 USD ($)	Jun. 18, 2015 ZAR (R) R / shares	Mar. 27, 2015 USD ($)	Sep. 30, 2015 USD ($)	Sep. 30, 2014 USD ($)	Sep. 30, 2015 USD ($)	Sep. 30, 2014 USD ($)	Dec. 31, 2014 USD ($)
Business Acquisition [Line Items]
Non-cash change in acquisition-related escrow						$ 10,533	$ 0	$ 10,317	$ 0
Acquisition-related earn out			$ 4,024			4,024		4,024		$ 0
Net revenues						54,577	44,330	162,886	129,884
Net loss						20,847	$ 8,832	37,893	$ 35,228
Feeney Wireless
Business Acquisition [Line Items]
Net revenues						5,500		17,700
Net loss						(3,800)		(5,100)
DigiCore
Business Acquisition [Line Items]
Voting interests acquired				100.00%
Acquisition share price (ZAR per share) \| R / shares				R 4.40
Non-cash change in acquisition-related escrow								10,300
Acquisition costs						500		1,600
DigiCore \| Maximum
Business Acquisition [Line Items]
Cash payments			78,000
Feeney Wireless
Business Acquisition [Line Items]
Cash payments					$ 9,300			9,268
Total purchase price					24,800			24,777
Escrow amount and certain other pre-closing adjustments					1,500
Other assumed liabilities					500			509
Future issuance of common stock					15,000			15,000
Maximum contingent earn-out					$ 25,000
Period to pay contingent earn-out					4 years
Feeney Wireless \| Accrued Liabilities
Business Acquisition [Line Items]
Acquisition-related earn out			$ 4,000			4,000		4,000
Feeney Wireless \| General and Administrative Expense
Business Acquisition [Line Items]
Acquisition costs						$ 100		$ 900
Subsequent Event \| DigiCore \| Maximum
Business Acquisition [Line Items]
Cash payments	R 1,085,705,720.98	$ 79,000
Scenario, Plan \| DigiCore \| Maximum
Business Acquisition [Line Items]
Cash payments \| R				R 1,094,223,363.20

Acquisitions - Consideration (Details) - Feeney Wireless - USD ($) $ in Thousands		9 Months Ended
	Mar. 27, 2015	Sep. 30, 2015
Business Acquisition [Line Items]
Cash payments	$ 9,300	$ 9,268
Future issuance of common stock	15,000	15,000
Other assumed liabilities	500	509
Total purchase price	$ 24,800	$ 24,777

Acquisitions - Allocation Table (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Mar. 27, 2015	Dec. 31, 2014
Business Acquisition [Line Items]
Goodwill	$ 3,194		$ 0
Feeney Wireless
Business Acquisition [Line Items]
Cash		$ 205
Accounts receivable		3,331
Inventory		10,008
Property and equipment		535
Intangible assets		18,880
Goodwill		3,194
Other assets		544
Accounts payable		(7,494)
Accrued and other liabilities		(1,161)
Deferred revenues		(270)
Note payable		(2,575)
Capital lease obligations		(420)
Net assets acquired		$ 24,777

Acquisitions - Intangibles Table (Details) - Feeney Wireless $ in Thousands	Mar. 27, 2015 USD ($)
Acquired Finite-Lived Intangible Assets [Line Items]
Amount Assigned	$ 18,880
Developed technologies
Acquired Finite-Lived Intangible Assets [Line Items]
Amount Assigned	$ 3,660
Amortization Period (in years)	6 years
Trademarks
Acquired Finite-Lived Intangible Assets [Line Items]
Amount Assigned	$ 4,700
Amortization Period (in years)	10 years
Customer relationships
Acquired Finite-Lived Intangible Assets [Line Items]
Amount Assigned	$ 8,500
Amortization Period (in years)	10 years
In-process research and development
Acquired Finite-Lived Intangible Assets [Line Items]
In-process research and development	$ 2,020

Acquisitions - Pro Forma Table (Details) - Feeney Wireless - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Business Acquisition [Line Items]
Net revenues	$ 54,577	$ 49,198	$ 167,957	$ 144,964
Net loss	$ (20,847)	$ (9,287)	$ (38,479)	$ (36,958)

Balance Sheet Details - Summary of Inventories (Detail) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Finished goods	$ 34,539	$ 33,045
Raw materials and components	5,658	4,758
Total inventory	$ 40,197	$ 37,803

Balance Sheet Details - Summary of Accrued Expenses (Detail) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014	Sep. 30, 2014	Dec. 31, 2013
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Royalties	$ 5,594	$ 4,035
Payroll and related expenses	4,951	8,038
Product warranty	948	1,196	$ 1,324	$ 2,244
Market development funds and price protection	2,759	2,502
Professional fees	636	780
Deferred revenue	596	962
Restructuring	219	1,886
Acquisition-related earn out	4,024	0
Other	4,756	4,445
Accrued expenses, Total	$ 24,483	$ 23,844

Balance Sheet Details - Summary of Accrued Warranty Obligations (Detail) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Movement in Standard Product Warranty Accrual [Roll Forward]
Warranty liability at beginning of period	$ 1,196	$ 2,244
Additions charged to operations	553	1,078
Deductions from liability	(801)	(1,998)
Warranty liability at end of period	$ 948	$ 1,324
Minimum
Movement in Standard Product Warranty Accrual [Roll Forward]
Warranty accrual period	1 year
Maximum
Movement in Standard Product Warranty Accrual [Roll Forward]
Warranty accrual period	3 years

Intangible Assets - Schedule of Amortizable Purchased Intangible Assets from Acquisition (Detail) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Finite-Lived Intangible Assets [Line Items]
Gross	$ 59,380	$ 42,520
Accumulated Amortization	(13,055)	(11,647)
Accumulated Impairment	(29,749)	(29,749)
Net	16,576	1,124
Total purchased intangible assets, net	18,596
Developed technologies
Finite-Lived Intangible Assets [Line Items]
Gross	29,660	26,000
Accumulated Amortization	(6,765)	(6,453)
Accumulated Impairment	(19,547)	(19,547)
Net	3,348	0
Trademarks and trade names
Finite-Lived Intangible Assets [Line Items]
Gross	17,500	12,800
Accumulated Amortization	(3,812)	(3,183)
Accumulated Impairment	(8,582)	(8,582)
Net	5,106	1,035
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Gross	10,600
Accumulated Amortization	(858)
Accumulated Impairment	(1,620)
Net	8,122
Other
Finite-Lived Intangible Assets [Line Items]
Gross	1,620	3,720
Accumulated Amortization	(1,620)	(2,011)
Accumulated Impairment	0	(1,620)
Net	0	$ 89
Other
Finite-Lived Intangible Assets [Line Items]
Indefinite-lived intangible assets:	$ 2,020

Intangible Assets - Summary of Amortization Expenses of Purchased Intangible Assets (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Finite-Lived Intangible Assets [Line Items]
Amortization of purchased intangible assets	$ 273	$ 141	$ 1,096	$ 421
Cost of net revenues
Finite-Lived Intangible Assets [Line Items]
Amortization of purchased intangible assets	312	83	312	250
Operating costs and expenses
Finite-Lived Intangible Assets [Line Items]
Amortization of purchased intangible assets	273	141	1,096	421
Amortization expense
Finite-Lived Intangible Assets [Line Items]
Amortization of purchased intangible assets	$ 585	$ 224	$ 1,408	$ 671

Intangible Assets - Schedule of Amortization Expense of Purchased Intangible Assets Expected to be Recognized (Detail) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Goodwill and Intangible Assets Disclosure [Abstract]
2015 (remainder)	$ 623
2016	2,492
2017	1,930
2018	1,930
2019	1,930
Thereafter	7,671
Net	$ 16,576	$ 1,124

Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Finite-Lived Intangible Assets [Line Items]
Purchased intangible assets net	$ 18,945	$ 1,493
Intangible assets accumulated amortization	15,704	14,050
Acquired software licenses
Finite-Lived Intangible Assets [Line Items]
Purchased intangible assets net	300	400
Intangible assets accumulated amortization	$ 2,500	$ 2,400

Fair Value Measurement of Assets and Liabilities - Summary of Company's Financial Instruments, Fair Value on a Recurring Basis (Detail) - USD ($)	Sep. 30, 2015	Jun. 10, 2015	Dec. 31, 2014
Cash equivalents
Fair value of debt	$ 80,400,000
Convertible Debt
Cash equivalents
Principal	120,000,000	$ 120,000,000.0
Stated interest rate of debt issued		5.50%
Fair Value, Measurements, Recurring
Cash equivalents
Cash equivalents	2,935,000		$ 2,114,000
Fair Value, Measurements, Recurring \| Money market funds
Cash equivalents
Cash equivalents	2,935,000		1,134,000
Fair Value, Measurements, Recurring \| Certificates of deposit
Cash equivalents
Cash equivalents			980,000
Fair Value, Measurements, Recurring \| Level 1
Cash equivalents
Cash equivalents	2,935,000		1,134,000
Fair Value, Measurements, Recurring \| Level 1 \| Money market funds
Cash equivalents
Cash equivalents	$ 2,935,000		1,134,000
Fair Value, Measurements, Recurring \| Level 1 \| Certificates of deposit
Cash equivalents
Cash equivalents			0
Fair Value, Measurements, Recurring \| Level 2
Cash equivalents
Cash equivalents			980,000
Fair Value, Measurements, Recurring \| Level 2 \| Money market funds
Cash equivalents
Cash equivalents			0
Fair Value, Measurements, Recurring \| Level 2 \| Certificates of deposit
Cash equivalents
Cash equivalents			$ 980,000

Debt - Narrative (Details)			9 Months Ended
Debt - Narrative (Details)	Jun. 10, 2015 USD ($) trading_day $ / shares	Oct. 31, 2014 USD ($)	Sep. 30, 2015 USD ($)	Dec. 31, 2014 USD ($)
Debt Instrument [Line Items]
Conversion rate	0.2
Conversion price ($ per share) \| $ / shares	$ 5.00
Repurchase price	100.00%
Remaining discount amortization period	5 years
Stock Price Exceeds 130% of Conversion Price
Debt Instrument [Line Items]
Threshold of trading days \| trading_day	20
Threshold of consecutive trading days	30 days
Threshold percentage of stock price trigger	130.00%
Debt Trading Price Below Product of Stock Price and Conversion Rate
Debt Instrument [Line Items]
Threshold of consecutive trading days	5 days
Threshold percentage of stock price trigger	98.00%
Stock Price Exceeds 140% of Conversion Price
Debt Instrument [Line Items]
Threshold of trading days \| trading_day	20
Threshold of consecutive trading days	30 days
Threshold percentage of stock price trigger	140.00%
Repurchase price	100.00%
Convertible Debt
Debt Instrument [Line Items]
Term of debt instrument	5 years
Principal	$ 120,000,000.0		$ 120,000,000
Debt issuance costs	$ 3,900,000
Stated interest rate of debt issued	5.50%
Minimum principal needed to call debt	25.00%
Redemption of principal	100.00%
Company elected remedy in default	60 days
Interest for company elected remedy for default	0.50%
Issuance cost allocated to equity	$ 1,300,000
Issuance cost allocated to liability	$ 2,600,000
Long-term debt			$ 80,350,000
Effective interest rate			18.71%
Convertible Debt \| Debt Trading Price Below Product of Stock Price and Conversion Rate
Debt Instrument [Line Items]
Number of consecutive business days	5 days
Accrued Liabilities \| Convertible Debt
Debt Instrument [Line Items]
Debt issuance costs	$ 400,000
Revolving Credit Facility
Debt Instrument [Line Items]
Term of debt instrument		5 years
Maximum amount of credit facility		$ 25,000,000
Outstanding borrowings under the credit facility			$ 0	$ 5,200,000
Available borrowings			$ 17,600,000
Revolving Credit Facility \| Minimum
Debt Instrument [Line Items]
Margin on LIBOR rate			2.50%
Revolving Credit Facility \| Maximum
Debt Instrument [Line Items]
Margin on LIBOR rate			3.00%
Letter of Credit
Debt Instrument [Line Items]
Maximum amount of credit facility		$ 3,000,000.0

Debt - Components (Details) - USD ($)	Sep. 30, 2015	Jun. 10, 2015
Debt Instrument [Line Items]
Equity component	$ 38,305,000
Convertible Debt
Debt Instrument [Line Items]
Principal	120,000,000	$ 120,000,000.0
Less: unamortized debt discount and debt issuance costs	(39,650,000)
Net carrying amount	$ 80,350,000

Debt - Interest Expense (Details) - Convertible Debt - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2015
Debt Instrument [Line Items]
Contractual interest expense	$ 1,649	$ 2,016
Amortization of debt discount	1,980	2,420
Amortization of debt issuance costs	132	161
Total interest expense	$ 3,761	$ 4,597

Treasury Stock (Details) shares in Millions	3 Months Ended
Treasury Stock (Details) shares in Millions	Mar. 31, 2015 shares
Equity [Abstract]
Treasury stock retired (in shares)	2.4

Share-based Compensation (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Share-based Compensation (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation expense	$ 1,254	$ 377	$ 3,227	$ 1,616
Cost of net revenues
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation expense	49	12	107	(7)
Research and development
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation expense	196	190	598	448
Sales and marketing
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation expense	135	(21)	318	200
General and administrative
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation expense	$ 874	$ 196	$ 2,204	$ 975

Employee Stock Purchase Plan - Additional Information (Detail) - Totals - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Aug. 16, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of lower limit value of common stock			85.00%
Purchase period			6 months
Maximum limit of payroll deductions (percent)			10.00%
Number of shares issue that the ESPP authorizes for purchase by eligible employees					1,500,132
Total fair value of awards recognized as expenses	$ 100,000	$ 26,000	$ 300,000	$ 26,000

Geographic Information and Concentrations of Risk - Schedule of Geographic Concentration of Net Revenues (Detail) - Net Revenues - Geographic Concentration	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Revenues from External Customers and Long-Lived Assets [Line Items]
Concentration percentage	100.00%	100.00%	100.00%	100.00%
United States and Canada
Revenues from External Customers and Long-Lived Assets [Line Items]
Concentration percentage	96.40%	90.30%	96.20%	90.30%
Latin America
Revenues from External Customers and Long-Lived Assets [Line Items]
Concentration percentage	0.40%	1.60%	0.60%	1.30%
Europe, Middle East, Africa and other
Revenues from External Customers and Long-Lived Assets [Line Items]
Concentration percentage	2.90%	7.30%	3.00%	7.30%
Asia and Australia
Revenues from External Customers and Long-Lived Assets [Line Items]
Concentration percentage	0.30%	0.80%	0.20%	1.10%

Geographic Information and Concentrations of Risk - Additional Information (Detail) - Net Revenues - Customer Concentration	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Customer One
Segment Reporting Information [Line Items]
Concentration percentage	64.20%	54.40%	56.00%	43.50%
Customer Two [Member]
Segment Reporting Information [Line Items]
Concentration percentage		11.80%

Securities Purchase Agreement and Warrant Issuances - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands			3 Months Ended		9 Months Ended
	Mar. 26, 2015	Sep. 08, 2014	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Changes In Equity And Comprehensive Income Line Items [Line Items]
Common stock shares issued at par value (per share)			$ 0.001		$ 0.001		$ 0.001
Proceeds from the issuance of Series C preferred stock and common stock, net of issuance costs					$ 0	$ 14,163
Fair value adjustment			$ 0	$ 4,788	0	4,788
Proceeds from the exercise of warrant to purchase common stock					$ 8,644	$ 0
Series C Preferred Stock
Changes In Equity And Comprehensive Income Line Items [Line Items]
Number of shares sold		87,196
Convertible preferred stock par value per share		$ 0.001
Number of shares sold, Per share price		$ 17.50
Proceeds from the issuance of Series C preferred stock and common stock, net of issuance costs		$ 14,400
Common Stock
Changes In Equity And Comprehensive Income Line Items [Line Items]
Number of shares sold		7,363,334
Common stock shares issued at par value (per share)		$ 0.001
Number of shares sold, Per share price		$ 1.75
Common stock warrants outstanding
Changes In Equity And Comprehensive Income Line Items [Line Items]
Warrants to purchase common stock sold (shares)		4,117,647
Exercise price per share ($ per share)		$ 2.26
2014 Warrant
Changes In Equity And Comprehensive Income Line Items [Line Items]
Proceeds from the exercise of warrant to purchase common stock	$ 8,600
2014 Warrant \| Common stock warrants outstanding
Changes In Equity And Comprehensive Income Line Items [Line Items]
Number of shares sold	3,824,600
Exercise price per share ($ per share)		$ 2.26
2015 Warrant
Changes In Equity And Comprehensive Income Line Items [Line Items]
Proceeds from the exercise of warrant to purchase common stock	$ 3,500
2015 Warrant \| Common stock warrants outstanding
Changes In Equity And Comprehensive Income Line Items [Line Items]
Warrants to purchase common stock sold (shares)	1,593,583
Exercise price per share ($ per share)	$ 5.50

Earnings Per Share - Narrative (Detail)		3 Months Ended		9 Months Ended
Earnings Per Share - Narrative (Detail)	Mar. 27, 2015 employee $ / shares shares	Sep. 30, 2015 shares	Sep. 30, 2014 shares	Sep. 30, 2015 shares	Sep. 30, 2014 shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Issued (shares)		3,702,470		5,774,170
Weighted-average options, RSUs, and ESPP shares outstanding (shares)		7,757,889	4,761,066	6,262,129	5,313,009
Feeney Wireless
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of grant recipients (employees) \| employee	91
Issued (shares)	323,000
Exercise price ($ per share) \| $ / shares	$ 4.65
Employee Stock Option \| Feeney Wireless
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term	10 years
Vesting on First Anniversary \| Employee Stock Option \| Feeney Wireless
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage	25.00%
Monthly Vesting After First Anniversary \| Employee Stock Option \| Feeney Wireless
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage	75.00%

Earnings Per Share - Earnings Per Basic and Diluted Share Table (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Numerator
Net loss	$ (20,847)	$ (8,832)	$ (37,893)	$ (35,228)
Denominator
Weighted-average common shares outstanding (in shares)	55,181	38,167	51,648	35,568
Basic and diluted net loss per share (dollars per share)	$ (0.38)	$ (0.23)	$ (0.73)	$ (0.99)

- Definition

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

+ References + Details

Commitments and Contingencies - Additional Information (Detail) $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2015 USD ($) shares	Sep. 30, 2015 USD ($)
Loss Contingencies [Line Items]
Period of time to achieve earnings and cash building targets		6 months
Accrued bonus liability	$ 10.7	$ 10.7
Total estimated expense		$ 5.2
Common Stock
Loss Contingencies [Line Items]
Issued (in shares) \| shares	2,158,436

Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Income Tax Disclosure [Abstract]
Change in valuation allowance			$ 13,600
Valuation allowance	$ 104,400		104,400
Net deferred tax assets	104,400		104,400
Income tax expense	$ 45	$ 24	$ 139	$ 73

Restructuring - Additional Information (Detail) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Restructuring and Related Activities [Abstract]
Restructuring reserve, current	$ 219	$ 1,886
Restructuring reserve, noncurrent	$ 241

Restructuring - Summary of Restructuring Liability (Detail) $ in Thousands	9 Months Ended
	Sep. 30, 2015 USD ($)
Restructuring Reserve [Roll Forward]
Balance at December 31, 2014	$ 1,983
Costs Incurred	789
Payments	(2,312)
Balance at September 30, 2015	460
Cumulative Costs Incurred to Date	12,277
Total Expected Restructuring Costs	12,413
2013 Initiatives \| Employee Severance Costs/ Employment Contract Costs
Restructuring Reserve [Roll Forward]
Balance at December 31, 2014	0
Costs Incurred	0
Payments	0
Balance at September 30, 2015	0
Cumulative Costs Incurred to Date	3,986
Total Expected Restructuring Costs	3,986
2013 Initiatives \| Facility Exit Related Costs
Restructuring Reserve [Roll Forward]
Balance at December 31, 2014	232
Costs Incurred	(3)
Payments	(141)
Balance at September 30, 2015	88
Cumulative Costs Incurred to Date	2,622
Total Expected Restructuring Costs	2,630
2014 Initiatives \| Employee Severance Costs/ Employment Contract Costs
Restructuring Reserve [Roll Forward]
Balance at December 31, 2014	1,751
Costs Incurred	(151)
Payments	(1,600)
Balance at September 30, 2015	0
Cumulative Costs Incurred to Date	3,428
Total Expected Restructuring Costs	3,428
2014 Initiatives \| Share-based Compensation Costs
Restructuring Reserve [Roll Forward]
Balance at December 31, 2014	0
Costs Incurred	0
Payments	0
Balance at September 30, 2015	0
Cumulative Costs Incurred to Date	1,298
Total Expected Restructuring Costs	1,298
2015 Initiative \| Employee Severance Costs/ Employment Contract Costs
Restructuring Reserve [Roll Forward]
Balance at December 31, 2014	0
Costs Incurred	571
Payments	(571)
Balance at September 30, 2015	0
Cumulative Costs Incurred to Date	571
Total Expected Restructuring Costs	571
2015 Initiative \| Facility Exit Related Costs
Restructuring Reserve [Roll Forward]
Balance at December 31, 2014	0
Costs Incurred	372
Payments	0
Balance at September 30, 2015	372
Cumulative Costs Incurred to Date	372
Total Expected Restructuring Costs	$ 500