Condensed Consolidated Financial Statement Details

Inventory



	March 31, 2017		December 31, 2016
	(in thousands)
Raw materials	$	7,379	$	6,669
Finished goods	9,130		8,401
Total inventory	$	16,509	$	15,070

Property and Equipment, net



	Useful Life	March 31, 2017			December 31, 2016
	(in years)	(in thousands)
Equipment	1-3	$	43,530		$	41,815
Software	1-3	3,816			3,801
Furniture and fixtures	1-3	865			865
Leasehold improvements	2-8	2,724			2,724
Construction in progress		—			258
Property and equipment, gross		50,935			49,463
Less: accumulated depreciation		(42,804		)	(41,244		)
Property and equipment, net		$	8,131		$	8,219

Depreciation expense on property and equipment was $1.8 million and $1.9 million for the three months ended March 31, 2017 and 2016, respectively.

Goodwill and Intangible Assets

Goodwill as of March 31, 2017 and December 31, 2016 was $1.3 million.

Purchased intangible assets, net, consisted of the following (in thousands):



	March 31, 2017							December 31, 2016
	Cost		Accumulated Amortization			Net		Cost		Accumulated Amortization			Net
Developed technology	$	5,050	$	(758	)	$	4,292	$	5,050	$	(505	)	$	4,545
Patents	2,936		(956		)	1,980		2,936		(848		)	2,088
Total	$	7,986	$	(1,714	)	$	6,272	$	7,986	$	(1,353	)	$	6,633

Amortization expense related to purchased intangible assets was $0.4 million and $33,000 for the three months ended March 31, 2017 and 2016, respectively. Purchased intangible assets are amortized over a remaining weighted average useful life of 4.4 years.

Future amortization expense for purchased intangible assets as of March 31, 2017 is as follows (in thousands):



Fiscal Year
Remainder of 2017	$	1,082
2018	1,442
2019	1,442
2020	1,442
2021	864
	$	6,272

Accrued Liabilities



	March 31, 2017		December 31, 2016
	(in thousands)
Accrued compensation and benefits	$	20,852	$	22,326
Accrued tax liabilities	2,894		3,340
Other	6,141		5,859
Total accrued liabilities	$	29,887	$	31,525

Deferred Revenue



	March 31, 2017			December 31, 2016
	(in thousands)
Deferred revenue:
Products	$	3,355		$	4,182
Services	89,750			88,726
Total deferred revenue	93,105			92,908
Less: current portion	(58,780		)	(61,334		)
Non-current portion	$	34,325		$	31,574