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CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
shares in Thousands, $ in Thousands
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Income Statement [Abstract]      
Product $ 224,645 $ 285,260 $ 276,876
Service 133,601 120,651 100,151
Total net revenue [1] 358,246 [2] 405,911 377,027
Product 119,802 145,714 121,988
Service 68,624 59,447 52,327
Total cost of revenue 188,426 205,161 174,315
Total gross profit 169,820 200,750 202,712
Operating expenses:      
Research and development 95,978 98,401 87,545
Selling, general and administrative 136,270 144,381 120,960
Amortization of intangibles 3,142 10,402 5,783
Restructuring and related charges 5,307 14,602 1,372
Total operating expenses 240,697 267,786 215,660
Loss from operations (70,877) [3] (67,036) (12,948)
Interest expense, net (11,078) (10,628) (333)
Other expense, net (2,222) (31) (282)
Loss on impairment of long-term investment (530) (2,735) (2,505)
Loss before income taxes (84,707) [3] (80,430) (16,068)
Benefit from income taxes (1,752) (8,116) (407)
Net loss $ (82,955) $ (72,314) $ (15,661)
Net loss per share:      
Basic and diluted $ (1.02) $ (0.93) $ (0.18)
Shares used in per share calculations:      
Basic and diluted 80,974 77,705 87,514
[1] Revenue is attributed to countries based on the location of the customer.
[2] 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.
[3] For the years ended December 31, 2017 and 2016, the unallocated corporate expenses included TVN acquisition- and integration-related costs, TVN VDP costs (see Note 10, “Restructuring and Related charges-TVN VDP,” for more information on TVN VDP ) and Cable Edge product line inventory obsolescence costs, totaling $7.9 million and $32.2 million, respectively. In addition, in fiscal year 2017, the unallocated corporate expenses included $8.0 million of Avid litigation settlement cost and associated legal fees (see Note 19, “Legal Proceedings,” for more information). The remaining unallocated corporate expenses for all years presented above include primarily other restructuring charges and excess facilities charges.