Condensed Consolidated Financial Statement Details

Inventory



	September 30, 2017		December 31, 2016
	(in thousands)
Raw materials	$	6,985	$	6,669
Finished goods	8,959		8,401
Total inventory	$	15,944	$	15,070

Property and Equipment, Net



	Useful Life	September 30, 2017			December 31, 2016
	(in years)	(in thousands)
Equipment	1-3	$	46,161		$	41,815
Software	1-3	3,859			3,801
Furniture and fixtures	1-3	820			865
Leasehold improvements	2-8	3,772			2,724
Construction in progress		74			258
Property and equipment, gross		54,686			49,463
Less: accumulated depreciation		(45,155		)	(41,244		)
Property and equipment, net		$	9,531		$	8,219

Depreciation expense on property and equipment was $1.5 million and $1.9 million for the three months ended September 30, 2017 and 2016, respectively, and $5.1 million and $5.6 million for the nine months ended September 30, 2017 and 2016, respectively.

Goodwill and Intangible Assets

Goodwill as of September 30, 2017 and December 31, 2016 was $1.3 million.

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



	September 30, 2017							December 31, 2016
	Cost		Accumulated Amortization			Net		Cost		Accumulated Amortization			Net
Developed technology	$	5,050	$	(1,262	)	$	3,788	$	5,050	$	(505	)	$	4,545
Patents	2,936		(1,173		)	1,763		2,936		(848		)	2,088
Total	$	7,986	$	(2,435	)	$	5,551	$	7,986	$	(1,353	)	$	6,633

Amortization expense related to purchased intangible assets was $0.4 million and $0.3 million for the three months ended September 30, 2017 and 2016, respectively, and $1.1 million and $0.4 million for the nine months ended September 30, 2017 and 2016, respectively. Purchased intangible assets will be amortized over a remaining weighted average useful life of 3.9 years.

Future amortization expense for purchased intangible assets as of September 30, 2017 is as follows (in thousands):



Fiscal Year
Remainder of 2017	$	361
2018	1,442
2019	1,442
2020	1,442
2021	864
	$	5,551

Accrued Liabilities



	September 30, 2017		December 31, 2016
	(in thousands)
Accrued compensation and benefits	$	19,828	$	22,326
Accrued tax liabilities	3,040		3,340
Other	4,736		5,859
Total accrued liabilities	$	27,604	$	31,525

Deferred Revenue



	September 30, 2017			December 31, 2016
	(in thousands)
Deferred revenue:
Products	$	3,076		$	4,182
Services	87,928			88,726
Total deferred revenue	91,004			92,908
Less: current portion	(59,294		)	(61,334		)
Non-current portion	$	31,710		$	31,574