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Selected Quarterly Financial Data (Tables) | 12 Months Ended
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Dec. 31, 2016
Quarterly Financial Data [Abstract] |
Summary of Quarterly Financial Data | The following table sets forth our unaudited quarterly Consolidated Statement of Operations data for each of the eight quarters ended December 31, 2016. In management’s opinion, the data has been prepared on the same basis as the audited Consolidated Financial Statements included in this report, and reflects all necessary adjustments, consisting only of normal recurring adjustments, necessary for a fair statement of this data.
| Fiscal 2016 (1)
| 1st Quarter (6) |  | 2nd Quarter |  | 3rd Quarter (6) |  | 4th Quarter (3) (5)
| (In thousands, except per share amounts)
Quarterly Data: |  |  |  |  |  |  |
Net revenue | $ | 81,832 |  |  | $ | 109,571 |  |  | $ | 101,406 |  |  | $ | 113,102 |
Gross profit (4) | 40,654 |  |  | 51,040 |  |  | 51,363 |  |  | 57,693 |
Net loss (2) | $ | (25,180 | ) |  | $ | (20,679 | ) |  | $ | (16,012 | ) |  | $ | (10,443 | )
Net loss per share: |  |  |  |  |  |  |
Basic | $ | (0.33 | ) |  | $ | (0.27 | ) |  | $ | (0.21 | ) |  | $ | (0.13 | )
Diluted | $ | (0.33 | ) |  | $ | (0.27 | ) |  | $ | (0.21 | ) |  | $ | (0.13 | )
Shares used in per share calculations: |  |  |  |  |  |  |
Basic and diluted | 76,996 |  |  | 77,342 |  |  | 78,092 |  |  | 78,389 |
| Fiscal 2015
| 1st Quarter (6) |  | 2nd Quarter |  | 3rd Quarter |  | 4th Quarter (5)
| (In thousands, except per share amounts)
Quarterly Data: |  |  |  |  |  |  |
Net revenue | $ | 104,016 |  |  | $ | 103,103 |  |  | $ | 83,305 |  |  | $ | 86,603 |
Gross profit (4) | 55,028 |  |  | 54,385 |  |  | 46,231 |  |  | 47,068 |
Net loss | $ | (2,657 | ) |  | $ | (994 | ) |  | $ | (4,811 | ) |  | $ | (7,199 | )
Net loss per share: |  |  |  |  |  |  |
Basic | $ | (0.03 | ) |  | $ | (0.01 | ) |  | $ | (0.05 | ) |  | $ | (0.08 | )
Diluted | $ | (0.03 | ) |  | $ | (0.01 | ) |  | $ | (0.05 | ) |  | $ | (0.08 | )
Shares used in per share calculations: |  |  |  |  |  |  |
Basic and diluted | 88,655 |  |  | 88,426 |  |  | 87,991 |  |  | 84,932 |
(1) On February 29, 2016, the Company completed the acquisition of TVN and applied the acquisition method of accounting for the business combination. The selected quarterly financial data for the year ended December 31, 2016 of the combined entity includes 10 months of operating results of TVN beginning March 1, 2016. (2) In 2016, as a result of the TVN acquisition, the Company incurred acquisition-and integration-related expenses of $3.0 million, $3.4 million, $5.3 million and $5.2 million, in the first through fourth quarter of 2016, respectively. These costs consisted of acquisition-related costs which include outside legal, accounting and other professional services as well as integration-related costs which include incremental costs resulting from the TVN acquisition that are not expected to generate future benefits once the integration is fully consummated. These costs are expensed as incurred. (3) In 2016, as part of the TVN integration plan, the Company established the TVN VDP to enable the French employees of TVN to voluntarily terminate with certain benefits. The plan was approved by the applicable French authorities and a total of 83 employees applied for the TVN VDP and were duly approved by the Company in the fourth quarter of 2016. Based on the applicable accounting guidance, the Company recorded a charge of $13.1 million for TVN VDP in the fourth quarter of 2016. This charge is offset partially by a $2.0 million pension curtailment gain. (See Note 11, “Restructuring and related charges-TVN VDP,” of the notes to the Consolidated Financial Statements for additional information on the TVN VDP and pension curtailment gain). (4) Gross margin decreased to 49.7% in the first quarter of 2016 compared to 54.3% in the fourth quarter of 2015, primarily due to a $4.8 million decline in revenue resulting mostly from timing in revenue recognition for certain projects. Gross margin decreased to 46.6% in the second quarter of 2016 compared to 49.7% in the first quarter of 2016, primarily due to the inclusion of TVN’s operating results which resulted in higher material, labor and overhead costs attributable to the additional headcount and facilities acquired in connection with the TVN acquisition, as well as an approximately $4.5 million inventory obsolescence charge for some older Cable Edge product lines. Gross margin increased to 50.7% in the third quarter of 2016 compared to 46.6% in the second quarter of 2016 primarily due to the absence of the Cable Edge inventory obsolescence charge in the third quarter of 2016. (5) A history of operating losses in recent years has led to uncertainty with respect to the Company’s ability to realize certain net deferred tax assets. In 2015, the Company recorded a valuation allowance against all of its U.S. net deferred tax assets, resulting in an increase in valuation allowance of $3.1 million in the fourth quarter of 2015. This increase in valuation allowance is offset partially by the release of $0.9 million valuation allowance against one of its Israel subsidiaries due to cumulative income generated in recent years. In the fourth quarter of 2016, the Company recorded an additional valuation allowance of $18.3 million against all of the United States deferred tax assets as well as its net operating losses generated in 2016. This increase in valuation allowance is offset partially by the release of $8.4 million of valuation allowance associated with the TVN French Subsidiary. Due to a change in its business model, as of December 31, 2016, the TVN French Subsidiary is forecasted to generate pretax income in future periods. (6) In the first and third quarter of 2016, the Company recorded impairment charges of $1.5 million and $1.2 million, respectively, for its investment in Vislink. In the first quarter of 2015, the Company recorded an impairment charge of $2.5 million for its investment in VJU. These impairment charges were recorded as a result of the Company’s assessment which concluded that their impairment were on an other-than-temporary basis. (See Note 5, “Investments in Other Equity Securities,” of the notes to the Consolidated Financial Statements for additional information).

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