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Financial Statement Details

12 Months Ended

Dec. 31, 2012

Financial Statement Details [Abstract]

4.	Financial Statement Details

Marketable Securities

The Company’s portfolio of available-for-sale securities by contractual maturity consists of the following (in thousands):


December 31, 2012	Maturity in Years		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
Available-for-sale:
Government agency securities		1 or less	$	3,265	$	1	$	0		$	3,266
Municipal bonds		1 or less		11,246		14		0			11,260
Certificates of deposit		1 or less		6,200		5		0			6,205
Corporate debentures / bonds		1 or less		17,330		3		0			17,333

Total short-term marketable securities				38,041		23		0			38,064

Available-for-sale:
Certificates of deposit		1 to 2		1,200		1		0			1,201

Total long-term marketable securities				1,200		1		0			1,201

			$	39,241	$	24	$	0		$	39,265

December 31, 2011	Maturity in Years		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
Available-for-sale:
Government agency securities		1 or less	$	6,913	$	0	$	(1	)	$	6,912
Municipal bonds		1 or less		8,390		0		(6	)		8,384
Certificates of deposit		1 or less		4,319		2		0			4,321
Corporate debentures / bonds		1 or less		8,615		0		(3	)		8,612
Marketable equity securities		1 or less		38		0		0			38

Total short-term marketable securities				28,275		2		(10	)		28,267

Available-for-sale:
Government agency securities		1 to 2		3,734		4		0			3,738
Municipal bonds		1 to 2		5,967		2		0			5,969
Certificates of deposit		1 to 2		3,797		0		(9	)		3,788

Total long-term marketable securities				13,498		6		(9	)		13,495

			$	41,773	$	8	$	(19	)	$	41,762

The Company’s available-for-sale securities are carried on the consolidated balance sheet at fair market value with the related unrealized gains and losses included in accumulated other comprehensive (loss) income on the consolidated balance sheet, which is a separate component of stockholders’ equity. Realized gains and losses on the sale of available-for-sale marketable securities are determined using the specific-identification method.

At December 31, 2012 and 2011, the Company recorded net unrealized gains of $14,000, net of taxes, and net unrealized loss of $8,000, respectively. The Company’s net unrealized gains (loss) is the result of market conditions affecting its fixed-income debt securities, which are included in accumulated other comprehensive (loss) income on the consolidated balance sheet for the periods then ended.

As of December 31, 2011, the Company’s investment portfolio included $385,000 of marketable equity securities at original cost, with a fair value of $38,000. During the years ended December 31, 2012 and 2011, the Company recorded an other-than-temporary loss of $38,000 and $347,000, respectively, within other income (expense), net in the consolidated statement of operations.

Inventories

Inventories consist of the following (in thousands):


	December 31,
	2012		2011
Finished goods	$	26,776	$	35,211
Raw materials and components		12,240		7,068

	$	39,016	$	42,279

Property and Equipment

Property and equipment consists of the following (in thousands):


	December 31,
	2012			2011
Test equipment	$	53,368		$	52,311
Computer equipment and purchased software		12,310			13,766
Product tooling		2,232			3,768
Furniture and fixtures		2,219			2,240
Leasehold improvements		4,802			5,628

		74,931			77,713
Less—accumulated depreciation and amortization		(59,702	)		(59,217	)

	$	15,229		$	18,496

For the years ended December 31, 2012, 2011 and 2010, the Company recorded $100,000, $70,000 and $167,000, respectively, in its cost of net revenues as a result of its impairment analysis of property and equipment.

Depreciation and amortization expense relating to property and equipment was $9.4 million, $11.1 million and $10.0 million for the years ended December 31, 2012, 2011 and 2010, respectively.

Accrued Expenses

Accrued expenses consist of the following (in thousands):


	December 31,
	2012		2011
Royalties	$	4,349	$	5,861
Payroll and related expenses		7,788		8,706
Product warranty		2,329		1,525
Market development funds and price protection		2,147		1,750
Deferred rent		573		1,135
Professional fees		1,549		1,213
Deferred revenue		4,630		1,060
Other		4,435		3,794

	$	27,800	$	25,044

Accrued Warranty Obligations

Accrued warranty obligations consist of the following (in thousands):


	2012			2011
Warranty liability at beginning of period	$	1,525		$	2,279
Additions charged to operations		6,261			2,642
Deductions from liability		(5,457	)		(3,396	)

Warranty liability at end of period	$	2,329		$	1,525

- Definition

The entire disclosure for condensed financial information, including the financial position, cash flows, and the results of operations of the registrant (parent company) as of the same dates or for the same periods for which audited consolidated financial statements are being presented. Alternatively, the details of this disclosure can be reported by the specific parent company taxonomy elements, indicating the appropriate date and period contexts in an instance document.

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