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Balance Sheet Details | 9 Months Ended
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Sep. 30, 2014
Organization, Consolidation and Presentation of Financial Statements [Abstract] |
Balance Sheet Details | 2. Balance Sheet Details Marketable Securities The Company’s portfolio of available-for-sale securities by contractual maturity consists of the following (in thousands):
September 30, 2014 |  | Maturity in Years |  | Amortized Cost |  |  | Gross Unrealized Gains |  |  | Gross Unrealized Losses |  |  | Estimated Fair Value |
Available-for-sale: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Government agency securities |  | 1 or less |  | $ | 0 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 0 |
Municipal bonds |  | 1 or less |  |  | 980 |  |  |  | 0 |  |  |  | 0 |  |  |  | 980 |
Certificates of deposit |  | 1 or less |  |  | 4,117 |  |  |  | 0 |  |  |  | 0 |  |  |  | 4,117 |
Corporate debentures / bonds |  | 1 or less |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |
Total short-term marketable securities |  |  |  |  | 5,097 |  |  |  | 0 |  |  |  | 0 |  |  |  | 5,097 |
Available-for-sale: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Municipal bonds |  | 1 to 2 |  |  | 261 |  |  |  | 0 |  |  |  | 0 |  |  |  | 261 |
Certificates of deposit |  | 1 to 2 |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |
Corporate debentures / bonds |  | 1 to 2 |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |
Total long-term marketable securities |  |  |  |  | 261 |  |  |  | 0 |  |  |  | 0 |  |  |  | 261 |
|  |  |  | $ | 5,358 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 5,358 |
December 31, 2013 |  | Maturity in Years |  | Amortized Cost |  |  | Gross Unrealized Gains |  |  | Gross Unrealized Losses |  |  | Estimated Fair Value |
Available-for-sale: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Government agency securities |  | 1 or less |  | $ | 2,350 |  |  | $ | 1 |  |  | $ | 0 |  |  | $ | 2,351 |
Municipal bonds |  | 1 or less |  |  | 2,828 |  |  |  | 1 |  |  |  | 0 |  |  |  | 2,829 |
Certificates of deposit |  | 1 or less |  |  | 3,360 |  |  |  | 0 |  |  |  | 0 |  |  |  | 3,360 |
Corporate debentures / bonds |  | 1 or less |  |  | 10,635 |  |  |  | 3 |  |  |  | 0 |  |  |  | 10,638 |
Total short-term marketable securities |  |  |  |  | 19,173 |  |  |  | 5 |  |  |  | 0 |  |  |  | 19,178 |
Available-for-sale: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Municipal bonds |  | 1 to 2 |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |
Certificates of deposit |  | 1 to 2 |  |  | 1,300 |  |  |  | 0 |  |  |  | 0 |  |  |  | 1,300 |
Corporate debentures / bonds |  | 1 to 2 |  |  | 2,143 |  |  |  | 0 |  |  |  | 0 |  |  |  | 2,143 |
Total long-term marketable securities |  |  |  |  | 3,443 |  |  |  | 0 |  |  |  | 0 |  |  |  | 3,443 |
|  |  |  | $ | 22,616 |  |  | $ | 5 |  |  | $ | 0 |  |  | $ | 22,621 |
The Company’s available-for-sale securities are carried on the condensed consolidated balance sheet at fair market value with the related unrealized gains and losses included in accumulated other comprehensive income (loss) on the condensed 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. The Company has a credit facility with one of its banks to allow margin borrowings based on and collateralized by the Company’s investments in cash equivalents and marketable securities held by that bank. Borrowings under the facility incur an interest rate at the bank’s base rate plus 1%. At September 30, 2014, the Company had approximately $2.6 million in cash equivalents and marketable securities held at this bank, and the Company’s unused borrowing capacity at September 30, 2014 under the credit facility was approximately $786,000. Any monies borrowed and interest incurred are payable on demand, and there is no express expiration date to the credit facility. During the three and nine months ended September 30, 2014, the Company did not borrow against the facility, and had no outstanding borrowings under this facility at September 30, 2014. Under the terms of the credit facility, the bank may liquidate any of the Company’s cash equivalents or marketable securities held at any time in order to recoup the outstanding balance of the facility. As of September 30, 2014, the Company recorded a net unrealized loss of $5,000. The Company’s net unrealized loss is the result of market conditions affecting its fixed-income, debt and equity securities, which are included in accumulated other comprehensive income (loss) in the condensed consolidated balance sheet for the period then ended. Inventories Inventories consist of the following (in thousands):
|  | September 30, |  |  | December 31, |
|  | 2014 |  |  | 2013 |
Finished goods |  | $ | 24,309 |  |  | $ | 20,870 |
Raw materials and components |  |  | 3,830 |  |  |  | 6,923 |
|  | $ | 28,139 |  |  | $ | 27,793 |
During the nine months ended September 30, 2014 and 2013, the Company recorded inventory write-downs of approximately $3.1 million, respectively related to excess and obsolete inventory and reductions to the carrying value of inventories as a result of lower of cost or market valuations. Accrued Expenses Accrued expenses consist of the following (in thousands):
|  | September 30, |  |  | December 31, |
|  | 2014 |  |  | 2013 |
Royalties |  | $ | 3,327 |  |  | $ | 4,243 |
Payroll and related expenses |  |  | 2,408 |  |  |  | 4,828 |
Product warranty |  |  | 1,324 |  |  |  | 2,244 |
Market development funds and price protection |  |  | 2,416 |  |  |  | 3,059 |
Professional fees |  |  | 1,392 |  |  |  | 1,040 |
Deferred revenue |  |  | 1,009 |  |  |  | 2,999 |
Restructuring |  |  | 3,909 |  |  |  | 610 |
Other |  |  | 4,929 |  |  |  | 4,248 |
|  | $ | 20,714 |  |  | $ | 23,271 |
Accrued Warranty Obligations Accrued warranty obligations consist of the following (in thousands):
|  | Three Months Ended September 30, 2014 |  |  | Three Months Ended September 30, 2013 |  |  | Nine Months Ended September 30, 2014 |  |  | Nine Months Ended September 30, 2013 |
Warranty liability at beginning of period |  | $ | 1,580 |  |  | $ | 2,451 |  |  | $ | 2,244 |  |  | $ | 2,329 |
Additions charged to operations |  |  | 317 |  |  |  | 722 |  |  |  | 1,078 |  |  |  | 4,086 |
Deductions from/use of liability |  |  | (573 | ) |  |  | (818 | ) |  |  | (1,998 | ) |  |  | (4,060 | )
Warranty liability at end of period |  | $ | 1,324 |  |  | $ | 2,355 |  |  | $ | 1,324 |  |  | $ | 2,355 |
The Company generally provides one to three years of warranty coverage for products following the date of purchase and the Company accrues the estimated cost of warranty coverage as a component of cost of net revenues in the condensed consolidated statements of operations at the time revenue is recognized. The Company accrues warranty costs based on estimates of future warranty-related replacement, repairs or rework of products. In estimating its future warranty obligations, the Company considers various relevant factors, including the historical frequency and volume of claims, and the cost to replace or repair products under warranty.

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