XML 127 R110.htm IDEA: XBRL DOCUMENT v3.8.0.1
Selected Quarterly Financial Data - Summary of Quarterly Financial Data (Detail) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
3 Months Ended 12 Months Ended
Dec. 31, 2017
Sep. 29, 2017
Jun. 30, 2017
Mar. 31, 2017
Dec. 31, 2016
[1]
Sep. 30, 2016
Jul. 01, 2016
Apr. 01, 2016
[3]
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Quarterly Financial Data [Abstract]                      
Revenue, Net $ 100,974 $ 92,014 $ 82,315 $ 82,943 $ 113,102 [2] $ 101,406 [2] $ 109,571 [2] $ 81,832 [2] $ 358,246 [4],[5] $ 405,911 [4] $ 377,027 [4]
Gross profit 48,572 [6] 47,025 [6] 33,815 [6] 40,408 [6] 57,693 [2] 51,363 [2] 51,040 [2] 40,654 [2] 169,820 200,750 202,712
Net loss $ (11,516) [3],[7],[8] $ (15,583) [3],[7],[8] $ (31,500) [3],[7],[8] $ (24,027) [3],[7],[8] $ (10,443) [2],[3],[7],[8] $ (16,012) [2],[3],[7],[8] $ (20,679) [2],[3],[7],[8] $ (25,180) [2],[7],[8] $ (82,955) $ (72,314) $ (15,661)
Basic net income (loss) per share from:                      
Net income (loss) $ (0.14) $ (0.19) $ (0.39) $ (0.30)              
Net loss per share:                      
Net income (loss), diluted (usd per share) [2]         $ (0.13) $ (0.21) $ (0.27) $ (0.33)      
Weighted average shares outstanding - diluted 82,014 81,445 80,590 79,810 78,389 [2] 78,092 [2] 77,342 [2] 76,996 [2]      
[1] 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 Company recorded a charge of $13.1 million for TVN VDP in the fourth quarter of 2016.
[2] 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.
[3] In the first and third quarter of 2016 and the fourth quarter of 2017, the Company recorded impairment charges of $1.5 million, $1.2 million, and $0.5 million, respectively, for its investment in Vislink. (See Note 3, “Investments in Other Equity Securities,” of the notes to the Consolidated Financial Statements for additional information).
[4] Revenue is attributed to countries based on the location of the customer.
[5] The Company has historically employed an aggregate allocation methodology based on total revenues to attribute professional services revenue and sales expenses between its Video and Cable Edge segments. Beginning in the fourth quarter of 2017, the Company has prospectively changed to a more precise attribution methodology as the activities of selling and supporting the CableOS solution have become increasingly distinct from those of Video solutions. The impact of making this change in the fourth quarter of 2017 compared to the Company’s historical approach was a reduction in operating income of $2.4 million from the Video segment and a corresponding increase to the operating income of the Cable Edge segment. The Company believes that the updated allocation methodology will provide greater clarity regarding the operating metrics of the Video and Cable Edge business segments.
[6] Gross margin decreased to 41.1% in the second quarter of 2017 compared to 48.7% in the first quarter of 2017, primarily due to lower service margins and higher inventory obsolescence charges for the Company’s legacy broadcast video inventory due to reduced demand, as well as higher inventory obsolescence charge for our older Cable Edge product lines. The factors negatively impacting the gross margin in the second quarter of 2017 were mostly absent in the third quarter of 2017, and together with a more favorable product mix, the gross margin increased to 51.1% in the third quarter of 2017 compared to 41.1% in the second quarter of 2017. 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.
[7] As a result of the TVN acquisition, in 2016 and 2017, 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, and $2.2 million, $0.5 million, $0.1 million and $0.1 million in the first through fourth quarter of 2017. 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 and the Company does not expect to incur any TVN acquisition- and integration-related expenses after 2017.
[8] In the fourth quarter of 2016 and 2017, the Company recorded additional valuation allowances of $18.3 and $9.0 million against all of the U.S. deferred tax assets, respectively. These increases in valuation allowances were offset partially by the release of $8.4 million and $5.8 million in the fourth quarter of 2016 and 2017, respectively, of valuation allowances associated with the Company’s foreign subsidiaries, including a one-time benefit associated with the alternative minimum tax refund related to the TCJA in the fourth quarter of 2017.