x
|
Annual Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
|
¨
|
Transition Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
|
|
For the transition period from to |
California
|
94-2848099
|
(State or other jurisdiction of incorporation or organization)
|
(I.R.S. Employer Identification Number)
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1778 McCarthy Boulevard Milpitas, California
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95035
|
(Address of principal executive offices)
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(Zip code)
|
Title of each class
|
Name of each exchange on which registered
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|
Common Stock, no par value
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The NASDAQ Stock Market LLC
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Page No
|
||||||
PART I
|
||||||
Item 1.
|
Business
|
5
|
||||
Item 1A.
|
Risk Factors
|
14 | ||||
Item 1B.
|
Unresolved Staff Comments
|
26
|
||||
Item 2.
|
Properties
|
26
|
||||
Item 3.
|
Legal Proceedings
|
26
|
||||
Item 4.
|
Mine Safety Disclosures
|
26
|
||||
PART II
|
||||||
Item 5.
|
Market for the Registrant’s Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities
|
27 | ||||
Item 6.
|
Selected Consolidated Financial Data
|
28
|
||||
Item 7.
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
29
|
||||
Item 7A.
|
Quantitative and Qualitative Disclosures About Market Risk
|
47
|
||||
Item 8.
|
Financial Statements and Supplementary Data
|
48
|
||||
Item 9.
|
Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
|
81
|
||||
Item 9A.
|
Controls and Procedures
|
81
|
||||
Item 9B.
|
Other Matters
|
81
|
||||
PART III
|
||||||
Item 10.
|
Directors, Executive Officers of the Registrant and Corporate Governance
|
82
|
||||
Item 11.
|
Executive Compensation
|
82
|
||||
Item 12.
|
Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters
|
82
|
||||
Item 13.
|
Certain Relationships and Related Transactions and Director Independence
|
82 | ||||
Item 14.
|
Principal Accounting Fees and Services
|
82
|
||||
PART IV
|
||||||
Item 15.
|
Exhibits and Financial Statement Schedules
|
83
|
||||
Signatures
|
84
|
•
|
anticipated trends and challenges in our business and the markets in which we operate;
|
•
|
our expectations regarding our expenses and international sales;
|
•
|
plans for future products and services and for enhancements of existing products and services;
|
•
|
our research and development;
|
•
|
our ability to attract and retain employees;
|
•
|
our anticipated cash needs and our estimates regarding our capital requirements and our needs for additional financing;
|
•
|
our anticipated growth strategies;
|
•
|
our intellectual property;
|
•
|
our ability to attract customers; and
|
•
|
sources of new revenue.
|
•
|
Differentiable value with our DTV technology. We provide our customers with a broad and rich portfolio of IP. Our set of core technologies coupled with the convergence of OTT services and broadcasting provides us an opportunity to be a leading vendor of Smart TV solutions. Our experience in IPTV and software development creates a unique combination of cloud-based application delivery while providing industry leading picture quality, mature video processing, frame rate conversion and market leading demodulator technology.
|
•
|
Strong Position within IPTV Market. We are a leading provider of digital media processors for set-top boxes in the IPTV market in terms of units shipped. We have built this position, in part, by being one of the first media processing semiconductor providers to work extensively with IPTV set-top box manufacturers, including Microsoft’s Mediaroom ecosystem, as well as telecommunications carriers to design solutions that address their specific feature and performance requirements. Additionally, we deliver some of the leading IPTV connectivity solutions for set-top boxes and residential gateways. Through these experiences, we have gained valuable insight into the challenges of our customers and carriers and have gained visibility into their product development plans. As a result, we believe we are able to provide our customers with a stable and reliable source of field-proven solutions.
|
•
|
Highly Integrated Chipsets Leveraged Across Multiple Consumer Applications. We have developed a proprietary chipset architecture that allows us to integrate high-performance digital video and audio decoding, graphics processing, security management and home audio/video networking and advanced image processing. Our chipsets can replace a number of single function semiconductors, which can significantly improve performance, lower power consumption and reduce total system cost to our customers. Furthermore, all of these functions can be performed synchronously at high processing speeds. Our ability to integrate these multiple functions into a single, high-speed semiconductor allows us to address many different consumer multimedia entertainment applications with the same hardware platform.
|
•
|
Differentiated Software Development Capabilities. As a result of over 15 years of experience in delivering video and audio solutions, we have developed expertise in real-time software that synchronizes and controls the playback of video and audio from a variety of sources. This software translates the complex silicon architecture of our chipsets into a much simpler application programming interface. Using this interface, our customers are able to design their products under industry standard operating systems, enabling them to customize our solutions and reduce their time to market. The majority of our engineering personnel are dedicated to software development.
|
•
|
Multi-Standard Functionality. We design our chipsets to support multiple industry standards that are used across most consumer entertainment applications. For example, there are over a dozen different video and audio standards used in current consumer applications, including video standards such as H.264, MPEG-4, MPEG-2, MPEG-1 and WMV9, and audio standards such as Dolby, DTS and MP3. Beyond this, there are a range of digital rights management security standards such as AES, RSA and MSDRM. Additionally, there are three primary operating systems, Android, Linux and Microsoft Windows CE, each of which has its own middleware standards.
|
•
|
Breadth and Depth of Relationships within the Set-top Box Industry and Service Providers. In order to provide a complete system-level solution for the IPTV market, we have developed strong relationships with industry leaders that form the ecosystem required to deliver an end-to-end solution, from content creation to content display. The IPTV ecosystem consists of providers of middleware, encoders and security solutions. For middleware, server software must be successfully integrated into our products to provide effective system solutions for the service providers. For security solutions, there are also a range of providers, including Microsoft and Nagra. Our strong position in the IPTV market has enabled us to develop and maintain relationships with these providers and offer solutions that are interoperable with their products.
|
•
|
Z-Wave Standardization and Ecosystem. Our Z-Wave technology provides system integrators access to over 600 products complying with the same standard and with guaranteed interoperability which we believe creates an attractive ecosystem. This makes our Z-Wave technology unique in the home control and energy management market, and a prime candidate to be selected by new service providers entering this emerging space. Because the International Telecommunication Union, or ITU, has developed a new sub 1GHz narrow band wireless standard which is largely based on Z-Wave technology and defines backwards compatibility to the Z-Wave standard, and because of the large ecosystem of products based on the Z-Wave standard, we believe our Z-Wave products will be one of the preferred solutions for telecommunication and multi-service operators.
|
•
|
Strengthen our Leadership Position in the IPTV Media Processor Market. We have achieved a significant share in the IPTV media processor market by providing our customers with highly integrated digital media processor chipsets. In addition, our solutions work effectively across different platforms and standards in this market. We intend to provide the most compelling integrated digital media processing solutions to our customers and support multiple standards in this end market in order to grow our market share in the IPTV market.
|
•
|
Enhance our Software Advantage. We believe our software provides a suite of capabilities that offer differentiated advantages from our competitors. Our software is integrated and embedded into our customers' products during their product design stage. As a result, once we are designed into our customers' product, we believe it is difficult for our competitors to displace us. We intend to leverage our software development capabilities and continue to invest significant resources in developing additional expertise in the area of high-performance software development, over-the-top video delivery software, and customer support.
|
•
|
Increase Penetration in Digital TV Market. Through our acquisition of Trident’s DTV business, we have obtained a position in the digital television market, specifically targeting the new generation of SmartTVs. We are also focusing development efforts on the next generation 4K x 2k technology for televisions. Our chipsets incorporate both hardware and software elements that enable SmartTV features and content access, while at the same time, managing all of the routine television functions. We believe our product line is differentiated by the hardware technologies such as frame-rate-conversion as well as sophisticated software such as Internet connectivity and web portal access.
|
•
|
Expand our position in the Home Networking Market. We have developed unified broadband home networking technology under the G.hn standard. We plan to use this technology to further expand our position in the home networking market. This market is fragmented into multiple standards, and we believe G.hn provides a way of unifying the demand in this market under a single standard encompassing all wired transmission media (coaxial cable, phone line and power line) in the home. We believe that G.hn will meet or exceed performance requirements for higher throughput, reliability and robustness for next generation of networked products. We also intend to expand our market position with our Z-Wave technology to include energy management automation and value-added services from telecommunication operators, such as home monitoring, home security and remote access and control and remote health management.
|
•
|
Leverage Existing Relationships. We have developed relationships within standards and platform defining entities like Google and Microsoft, which enable us to win new customers effectively. We also have strong customer relationships with many IPTV set-top box and connected media player designers and consumer device manufacturers. We also work closely with telecommunications carriers to understand their needs in advance of our customer’s product development cycle. We intend to leverage our existing position with our partners and customers to identify and secure new market opportunities.
|
•
|
Media processor chipsets. Our broad range of media processor chipsets and development platforms are designed to provide comprehensive solutions to our customers primarily for application in IPTV and hybrid set-top boxes and connected media players. For IPTV and hybrid set-top boxes applications, we offer platforms tailored for Microsoft’s Mediaroom, as well as various other Linux and Android based middleware solutions. For digital televisions, we provide an alternative set of input/output interfaces and software to tailor our chips for SmartTV use. We offer platforms that are tailored for specific applications and that are optimized for performance, low-power, or features. We are constantly evolving our software suite to increase our breadth of application support and over-the-top content delivery capabilities. Within our media processor chipset products we have value-line and premium offerings to enable our customers to select between performance, features and price.
|
•
|
HomePNA chipsets. Our HomePNA chipsets provide in-home connectivity capabilities over existing telephone wires or TV coax cables for residential gateways, multiple dwelling unit gateways and IPTV set-top boxes. Our Home PNA chipsets comply with the ITU G.9954 standard to support distribution of multimedia content throughout the home. It can coexist with broadband and narrowband services, such as DSL, television or telephone, on the same wire, and delivers high Quality of Service, or QoS.
|
•
|
HomePlug AV chipsets. Our HomePlug AV chipsets provide connectivity over existing powerline wiring, supporting AES encryption, high QoS and remote management and diagnostic capabilities. In addition, we offer versions optimized for low power and low footprint implementations. All our HomePlug AV chipsets employ MIMO technology that utilizes all three power wires (phase, neutral and ground) to extend coverage and provide higher noise immunity. To date, we have not generated significant revenue from our HPAV chipsets.
|
•
|
G.hn chipsets. Our G.hn chipset is compliant with ITU G.9960/61 which supports connectivity over any type of existing wires inside the home. We are designing the G.hn chipset to employ MIMO technology to deliver higher throughput with extended coverage even in presence of high noise conditions. Our G.hn chipset enables self-installation for home multimedia distribution networks. The chipset also provides high QoS, remote management and diagnostic capabilities enabling service providers to deploy reliable service while minimizing operation expenditures. To date, we have not generated significant revenue from our G.hn chipsets.
|
•
|
VXP brand chipsets. Our VXP brand products are standalone high performance semiconductors that provide studio-quality video output or input for professional, prosumer and consumer applications. These products address applications including audio/video receivers, broadcast studios, digital cinema, digital signage, front-projection home theatre televisions, HDTV, medical imaging and video conferencing systems.
|
•
|
Video encoder chipsets. Our video encoders are designed to capture video for visual telephony between set-top boxes, connected media players, VoIP devices, video phones, video conferencing TVs and video surveillance devices. To date, we have not generated significant revenue from these products.
|
•
|
Z-Wave chipsets. Our Z-Wave chipsets and modules are designed to deliver reliable, cost-effective wireless networking for residential and light commercial control applications. We embed our Z-Wave protocol stack in our chipset and Flash memory is available to the customer for their product development.
|
•
|
accurately predict market requirements and evolving industry standards;
|
•
|
accurately design new chipset products;
|
•
|
timely complete and introduce new product designs;
|
•
|
timely qualify and obtain industry interoperability certification of our products and the equipment into which our products will be incorporated;
|
•
|
ensure that our subcontractors have sufficient foundry, assembly and test capacity and packaging materials and achieve acceptable manufacturing yields;
|
•
|
shift our products to smaller geometry process technologies to achieve lower cost and higher levels of design integration; and
|
•
|
gain market acceptance of our products and our customers' products.
|
•
|
potential disruption of our ongoing business and the diversion of management resources from other business concerns;
|
•
|
unexpected costs or incurring unknown liabilities;
|
•
|
difficulties relating to integrating the operations and personnel of the acquired businesses;
|
•
|
adverse effects on the existing customer relationships of acquired companies; and
|
•
|
adverse effects associated with entering into markets and acquiring technologies in areas in which we have little experience.
|
·
|
market acceptance of our products;
|
·
|
the need to adapt to changing technologies and technical requirements;
|
·
|
the existence of opportunities for expansion; and
|
·
|
access to and availability of sufficient management, technical, marketing and financial personnel.
|
●
|
changes in tax laws in the countries in which we operate or the interpretation of such tax laws;
|
●
|
changes in the valuation of our deferred tax assets and liabilities, including the effect of foreign exchange rate fluctuations relative to the US Dollar;
|
●
|
increases in expenses not deductible for tax purposes, including write-offs of acquired in-process research and development and impairment of goodwill in connection with acquisitions;
|
●
|
changes in stock-based compensation expense;
|
●
|
changes in generally accepted accounting principles; and
|
●
|
our ability to use our tax attributes such as research and development tax credits and net operating losses of acquired companies to the fullest extent.
|
●
|
changes in business and economic conditions, including conditions in the credit market that could negatively affect consumer confidence;
|
|
●
|
customer acceptance of our products and those of our competitors;
|
●
|
changes in customer order patterns including order cancellations; and
|
●
|
reductions in the level of inventory our customers are willing to hold.
|
•
|
failure to reduce our expenses sufficiently to achieve profitability at current revenue levels;
|
|
•
|
the loss of one or more significant customers;
|
|
•
|
changes in our pricing models and product sales mix;
|
|
•
|
unexpected reductions in unit sales and average selling prices, particularly if they occur precipitously;
|
|
•
|
new product introductions by us and our competitors;
|
|
•
|
the level of acceptance of our products by our customers and acceptance of our customers' products by their end user customers;
|
|
•
|
an interrupted or inadequate supply of semiconductor chips or other materials included in our products;
|
|
•
|
availability of third-party manufacturing capacity for production of certain products;
|
|
•
|
shifts in demand for the technology embodied in our products and those of our competitors;
|
|
•
|
the timing of, and potential unexpected delays in, our customer orders and product shipments;
|
|
•
|
the impairment and associated write-down of strategic investments that we may make from time-to-time;
|
|
•
|
write-downs of accounts receivable;
|
|
•
|
inventory obsolescence;
|
|
•
|
a significant increase in our effective tax rate in any particular period as a result of the exhaustion, disallowance or accelerated recognition of our net operating loss carry-forwards or otherwise;
|
•
|
technical problems in the development, production ramp up and manufacturing of products, which could cause shipping delays;
|
•
|
the impact of potential economic instability in the United States and Asia-Pacific region, including the continued effects of the recent worldwide economic slowdown;
|
•
|
expenses related to implementing and maintaining a new enterprise resource management system and other information technologies; and
|
•
|
expenses related to our compliance efforts with Section 404 of the Sarbanes-Oxley Act of 2002.
|
ITEM 1B.
|
UNRESOLVED STAFF COMMENTS
|
ITEM 2.
|
PROPERTIES
|
ITEM 3.
|
LEGAL PROCEEDINGS
|
ITEM 4.
|
MINE SAFETY DISCLOSURES
|
ITEM 5.
|
MARKET FOR THE REGISTRANT’S COMMON EQUITY, RELATED SHAREHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES
|
Fiscal 2013
|
Fiscal 2012
|
|||||||||||||||
High
|
Low
|
High
|
Low
|
|||||||||||||
First fiscal quarter
|
$ | 6.11 | $ | 4.68 | $ | 14.73 | $ | 11.17 | ||||||||
Second fiscal quarter
|
6.74 | 5.43 | 13.02 | 7.44 | ||||||||||||
Third fiscal quarter
|
7.13 | 5.62 | 8.79 | 7.29 | ||||||||||||
Fourth fiscal quarter
|
6.00 | 5.04 | 8.64 | 5.54 |
Fiscal Years Ended
|
||||||||||||||||||||
February 2,
2013
|
January 28,
2012
|
January 29,
2011
|
January 30,
2010
|
January 31,
2009
|
||||||||||||||||
Consolidated Statements of Operations Data:
|
||||||||||||||||||||
Net revenue
|
$ | 216,613 | $ | 182,617 | $ | 286,915 | $ | 206,083 | $ | 209,160 | ||||||||||
Income (loss) from operations
|
(83,346 | ) | (175,715 | ) | 12,917 | 3,201 | 25,619 | |||||||||||||
Net income (loss)
|
(101,768 | ) | (168,045 | ) | 9,147 | 2,455 | 26,423 | |||||||||||||
Basic net income (loss) per share
|
(3.06 | ) | (5.25 | ) | 0.29 | 0.09 | 0.98 | |||||||||||||
Diluted net income (loss) per share
|
$ | (3.06 | ) | $ | (5.25 | ) | $ | 0.29 | $ | 0.09 | $ | 0.95 |
February 2,
2013
|
January 28,
2012
|
January 29,
2011
|
January 30,
2010
|
January 31,
2009
|
||||||||||||||||
Consolidated Balance Sheets Data:
|
||||||||||||||||||||
Working capital
|
$ | 96,628 | $ | 110,950 | $ | 163,196 | $ | 165,990 | $ | 175,329 | ||||||||||
Total assets
|
$ | 220,831 | $ | 297,224 | $ | 459,239 | $ | 423,897 | $ | 330,947 | ||||||||||
Total shareholders' equity
|
$ | 162,018 | $ | 248,475 | $ | 398,041 | $ | 368,822 | $ | 305,250 |
Fiscal Years Ended
|
||||||||||||||||||||
February 2,
2013
|
January 28,
2012
|
January 29,
2011
|
January 30,
2010
|
January 31,
2009
|
||||||||||||||||
Stock-based Compensation Expense:
|
||||||||||||||||||||
Cost of revenue
|
$ | 487 | $ | 478 | $ | 560 | $ | 358 | $ | 359 | ||||||||||
Research and development
|
5,740 | 6,277 | 6,745 | 5,334 | 5,294 | |||||||||||||||
Selling and marketing
|
1,811 | 2,137 | 2,094 | 1,861 | 2,115 | |||||||||||||||
General and administrative
|
2,557 | 3,133 | 3,178 | 1,240 | 4,905 | |||||||||||||||
$ | 10,595 | $ | 12,025 | $ | 12,577 | $ | 8,793 | $ | 12,673 |
Fiscal Years Ended
|
||||||||||||||||||||||||
February 2, 2013
|
% of Net Revenue
|
January 28, 2012
|
% of Net Revenue
|
January 29, 2011
|
% of Net Revenue
|
|||||||||||||||||||
Net revenue
|
$ | 216,613 | 100% | $ | 182,617 | 100% | $ | 286,915 | 100% | |||||||||||||||
Cost of revenue
|
125,588 | 58% | 105,241 | 58% | 146,271 | 51% | ||||||||||||||||||
Gross profit
|
91,025 | 42% | 77,376 | 42% | 140,644 | 49% | ||||||||||||||||||
Operating expenses
|
||||||||||||||||||||||||
Research and development
|
103,478 | 47% | 86,517 | 47% | 77,270 | 27% | ||||||||||||||||||
Sales and marketing
|
34,550 | 16% | 34,467 | 19% | 31,712 | 11% | ||||||||||||||||||
General and administrative
|
27,899 | 13% | 20,829 | 11% | 18,745 | 7% | ||||||||||||||||||
Restructuring costs
|
3,264 | 2% | - | - | - | - | ||||||||||||||||||
Impairment of goodwill
|
- | - | 45,108 | 25% | - | - | ||||||||||||||||||
Impairment of acquired intangible assets
|
- | - | 66,170 | 36% | - | - | ||||||||||||||||||
Impairment of IP and design tools
|
6,569 | 3% | - | - | - | - | ||||||||||||||||||
Gain on acquisition
|
(1,389 | ) | (1% | ) | - | - | - | - | ||||||||||||||||
Total operating expenses
|
174,371 | 80% | 253,091 | 138% | 127,727 | 45% | ||||||||||||||||||
Income (loss) from operations
|
(83,346 | ) | (38% | ) | (175,715 | ) | (96% | ) | 12,917 | 4% | ||||||||||||||
Interest and other income, net
|
2,325 | 1% | 2,704 | 1% | 2,183 | 1% | ||||||||||||||||||
Impairment of investment
|
- | - | - | - | (5,203 | ) | (2% | ) | ||||||||||||||||
Income (loss) before income taxes
|
(81,021 | ) | (37% | ) | (173,011 | ) | (95% | ) | 9,897 | 3% | ||||||||||||||
Provision for (benefit from) income taxes
|
20,747 | 10% | (4,966 | ) | (3% | ) | 750 | 0% | ||||||||||||||||
Net income (loss)
|
$ | (101,768 | ) | (47% | ) | $ | (168,045 | ) | (92% | ) | $ | 9,147 | 3% |
Fiscal Years Ended
|
||||||||||||||||||||||||
February 2, 2013
|
% of Net Revenue
|
January 28, 2012
|
% of Net Revenue
|
January 29, 2011
|
% of Net Revenue
|
|||||||||||||||||||
DTV
|
$ | 66,564 | 31% | $ | - | - | $ | - | - | |||||||||||||||
Home networking
|
79,489 | 36% | 68,435 | 37% | 89,261 | 31% | ||||||||||||||||||
IPTV media processor
|
31,079 | 14% | 62,441 | 34% | 137,281 | 48% | ||||||||||||||||||
Home control and energy management
|
12,426 | 6% | 10,922 | 6% | 5,524 | 2% | ||||||||||||||||||
Prosumer and industrial audio/video
|
10,344 | 5% | 12,079 | 7% | 15,035 | 5% | ||||||||||||||||||
Connected media player
|
10,510 | 5% | 27,988 | 15% | 39,627 | 14% | ||||||||||||||||||
License and other
|
6,201 | 3% | 752 | 1% | 187 | 0% | ||||||||||||||||||
Net revenue
|
$ | 216,613 | 100% | $ | 182,617 | 100% | $ | 286,915 | 100% |
Fiscal Years Ended
|
||||||||||||||||||||||||
February 2, 2013
|
% of Net Revenue
|
January 28, 2012
|
% of Net Revenue
|
January 29, 2011
|
% of Net Revenue
|
|||||||||||||||||||
Asia
|
$ | 150,658 | 70% | $ | 166,583 | 91% | $ | 266,065 | 93% | |||||||||||||||
North America
|
17,006 | 8% | 8,982 | 5% | 13,454 | 5% | ||||||||||||||||||
Europe
|
41,283 | 19% | 5,718 | 3% | 7,101 | 2% | ||||||||||||||||||
Other Regions
|
7,666 | 3% | 1,334 | 1% | 295 | 0% | ||||||||||||||||||
Net revenue
|
$ | 216,613 | 100% | $ | 182,617 | 100% | $ | 286,915 | 100% |
Fiscal Years Ended
|
||||||||||||
February 2,
2013
|
January 28,
2012
|
January 29,
2011
|
||||||||||
TP Vision
|
14% | * | * | |||||||||
Flextronics
|
12% | * | * | |||||||||
Motorola
|
* | 17% | 24% | |||||||||
Gemtek
|
* | 22% | 23% |
For Fiscal Years Ended
|
||||||||||||||||||||
February 2,
2013
|
% Change
|
January 28,
2012
|
% Change
|
January 29,
2011
|
||||||||||||||||
Gross profit
|
$ | 91,025 | 18% | $ | 77,376 | (45% | ) | $ | 140,644 | |||||||||||
Gross margin %
|
42.0% | 42.4% | 49.0% |
Fiscal Years Ended
|
||||||||||||||||||||||||
February 2, 2013
|
% of Net Revenue
|
January 28, 2012
|
% of Net Revenue
|
January 29, 2011
|
% of Net Revenue
|
|||||||||||||||||||
Research and development
|
$ | 103,478 | 47% | $ | 86,517 | 47% | $ | 77,270 | 27% | |||||||||||||||
Sales and marketing
|
34,550 | 16% | 34,467 | 19% | 31,712 | 11% | ||||||||||||||||||
General and administrative
|
27,899 | 13% | 20,829 | 11% | 18,745 | 7% | ||||||||||||||||||
Restructuring costs
|
3,264 | 2% | - | - | - | - | ||||||||||||||||||
Impairment of goodwill
|
- | - | 45,108 | 25% | - | - | ||||||||||||||||||
Impairment of acquired intangible assets
|
- | - | 66,170 | 36% | - | - | ||||||||||||||||||
Impairment of IP, mask sets and design tools
|
6,569 | 3% | - | - | - | - | ||||||||||||||||||
Gain on acquisition
|
(1,389 | ) | (1% | ) | - | - | - | - | ||||||||||||||||
Total operating expenses
|
$ | 174,371 | 80% | $ | 253,091 | 138% | $ | 127,727 | 45% |
For Fiscal Years Ended
|
Fiscal 2013 vs 2012
|
Fiscal 2012 vs 2011
|
||||||||||||||||||||||||||
February 2, 2013
|
January 28, 2012
|
January 29, 2011
|
$ Change
|
% Change
|
$ Change
|
% Change
|
||||||||||||||||||||||
Research and development expense
|
$ | 103,478 | $ | 86,517 | $ | 77,270 | $ | 16,961 | 20% | $ | 9,247 | 12% |
For Fiscal Years Ended
|
Fiscal 2013 vs 2012
|
Fiscal 2012 vs 2011
|
||||||||||||||||||||||||||
February 2, 2013
|
January 28, 2012
|
January 29, 2011
|
$ Change
|
% Change
|
$ Change
|
% Change
|
||||||||||||||||||||||
Sales and marketing expense
|
$ | 34,550 | $ | 34,467 | $ | 31,712 | $ | 83 | 0% | $ | 2,755 | 9% |
For Fiscal Years Ended
|
Fiscal 2013 vs 2012
|
Fiscal 2012 vs 2011
|
||||||||||||||||||||||||||
February 2, 2013
|
January 28, 2012
|
January 29, 2011
|
$ Change
|
% Change
|
$ Change
|
% Change
|
||||||||||||||||||||||
General and administrative expense
|
$ | 27,899 | $ | 20,829 | $ | 18,745 | $ | 7,070 | 34% | $ | 2,084 | 11% |
Restructuring Costs Incurred in Fiscal 2013
|
Cash Payments in Fiscal 2013
|
Restructuring Costs Liability at February 2, 2013
|
Cumulative Restructuring Costs Through February 2, 2013
|
|||||||||||||
Severance
|
$ | 2,167 | $ | 1,153 | $ | 1,014 | $ | 2,167 | ||||||||
Impairment of long-lived assets
|
1,089 | - | - | 1,089 | ||||||||||||
Facility exit costs
|
8 | - | 8 | 8 | ||||||||||||
Total restructuring costs
|
$ | 3,264 | $ | 1,153 | $ | 1,022 | $ | 3,264 |
February 2, 2013
|
||||||||||||||||||||
Gross Value
|
Impairment
|
Accumulated Amortization and Effect of Currency Translation
|
Net Value
|
Weighted Average Remaining Amortization Period (Years)
|
||||||||||||||||
Acquired intangible assets:
|
||||||||||||||||||||
Developed technology
|
$ | 76,995 | $ | (24,614 | ) | $ | (34,923 | ) | $ | 17,458 | 3.6 | |||||||||
Customer relationships
|
51,174 | (30,486 | ) | (16,252 | ) | 4,436 | 3.6 | |||||||||||||
Trademarks
|
2,677 | - | (1,982 | ) | 695 | 5.9 | ||||||||||||||
Non-compete agreements
|
1,400 | - | (1,400 | ) | - | - | ||||||||||||||
Purchased IP - amortizing
|
22,866 | (5,516 | ) | (9,466 | ) | 7,884 | 2.4 | |||||||||||||
Total amortizing
|
155,112 | (60,616 | ) | (64,023 | ) | 30,473 | 3.4 | |||||||||||||
Purchased IP - not yet deployed
|
8,778 | (2,678 | ) | - | 6,100 | |||||||||||||||
In-process research and development
|
11,070 | (11,070 | ) | - | - | |||||||||||||||
Total intangibles
|
$ | 174,960 | $ | (74,364 | ) | $ | (64,023 | ) | $ | 36,573 |
Fiscal Years Ended
|
||||||||||||
February 2, 2013
|
January 28, 2012
|
January 29, 2011
|
||||||||||
Cost of revenue
|
$ | 487 | $ | 478 | $ | 560 | ||||||
Research and development
|
5,740 | 6,277 | 6,745 | |||||||||
Sales and marketing
|
1,811 | 2,137 | 2,094 | |||||||||
General and administrative
|
2,557 | 3,133 | 3,178 | |||||||||
Total stock-based compensation
|
$ | 10,595 | $ | 12,025 | $ | 12,577 |
For Fiscal Years Ended
|
Fiscal 2013 vs 2012
|
Fiscal 2012 vs 2011
|
||||||||||||||||||||||||||
February 2, 2013
|
January 28, 2012
|
January 29, 2011
|
$ Change
|
% Change
|
$ Change
|
% Change
|
||||||||||||||||||||||
Interest and other income, net
|
$ | 2,325 | $ | 2,704 | $ | 2,183 | $ | (379 | ) | (14% | ) | $ | 521 | 24% |
February 2, 2013
|
January 28, 2012
|
|||||||
Cash and cash equivalents
|
$ | 51,218 | $ | 44,283 | ||||
Short-term marketable securities
|
17,455 | 42,134 | ||||||
$ | 68,673 | $ | 86,417 |
Fiscal Years Ended
|
||||||||||||
February 2, 2013
|
January 28, 2012
|
January 29, 2011
|
||||||||||
Net cash provided by (used in):
|
||||||||||||
Operating activities
|
$ | (14,645 | ) | $ | (12,146 | ) | $ | 41,872 | ||||
Investing activities
|
17,100 | (23,441 | ) | (58,429 | ) | |||||||
Financing activities
|
4,229 | 7,315 | 7,563 | |||||||||
Effect of foreign exchange rate changes on cash and cash equivalents
|
251 | (177 | ) | (221 | ) | |||||||
Net increase (decrease) in cash and cash equivalents
|
$ | 6,935 | $ | (28,449 | ) | $ | (9,215 | ) |
Payments Due by Period
|
||||||||||||||||
Fiscal 2014
|
Fiscal 2015 - 2016
|
Fiscal 2017 - 2018
|
Total
|
|||||||||||||
Operating leases
|
$ | 5,495 | $ | 7,172 | $ | 1,797 | $ | 14,464 | ||||||||
Non-cancelable purchase obligations
|
16,723 | - | - | 16,723 | ||||||||||||
Total contractual obligations
|
$ | 22,218 | $ | 7,172 | $ | 1,797 | $ | 31,187 |
Page
|
|
Report of Independent Registered Public Accounting Firm
|
49
|
Consolidated Balance Sheets
|
50
|
Consolidated Statements of Operations
|
51
|
Consolidated Statements of Comprehensive Income (Loss)
|
51
|
Consolidated Statements of Shareholders’ Equity
|
52
|
Consolidated Statements of Cash Flows
|
53
|
Notes to Consolidated Financial Statements
|
54
|
February 2,
2013
|
January 28,
2012
|
|||||||
ASSETS
|
||||||||
Current assets
|
||||||||
Cash and cash equivalents
|
$ | 51,218 | $ | 44,283 | ||||
Short-term marketable securities
|
17,455 | 42,134 | ||||||
Restricted cash
|
1,769 | 1,769 | ||||||
Accounts receivable, net of allowances of $295 in 2013 and $537 in 2012
|
21,648 | 21,180 | ||||||
Inventory
|
24,929 | 22,037 | ||||||
Deferred tax assets
|
5,868 | 4,832 | ||||||
Prepaid expenses and other current assets
|
13,578 | 7,234 | ||||||
Total current assets
|
136,465 | 143,469 | ||||||
Long-term marketable securities
|
14,253 | 62,022 | ||||||
Software, equipment and leasehold improvements, net
|
17,106 | 19,609 | ||||||
Intangible assets, net
|
36,573 | 45,656 | ||||||
Deferred tax assets, net of current portion
|
2,681 | 16,595 | ||||||
Long-term investments and notes receivable, net of current portion
|
8,943 | 9,443 | ||||||
Other non-current assets
|
4,810 | 430 | ||||||
Total assets
|
$ | 220,831 | $ | 297,224 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY
|
||||||||
Current liabilities
|
||||||||
Accounts payable
|
$ | 11,046 | $ | 8,438 | ||||
Accrued compensation and related benefits
|
10,070 | 8,957 | ||||||
Accrued liabilities
|
18,721 | 15,124 | ||||||
Total current liabilities
|
39,837 | 32,519 | ||||||
Income taxes payable
|
17,723 | 13,609 | ||||||
Long-term deferred tax liabilities
|
804 | 1,062 | ||||||
Other long-term liabilities
|
449 | 1,559 | ||||||
Total liabilities
|
58,813 | 48,749 | ||||||
Commitments and contingencies (Note 15)
|
||||||||
Shareholders' equity
|
||||||||
Preferred stock; no par value, 2,000,000 shares authorized; no shares issued and outstanding
|
- | - | ||||||
Common stock and additional paid-in capital; no par value; 100,000,000 shares authorized; 38,234,357 issued and 34,042,045 outstanding in 2013 and 37,070,578 issued and 32,878,266 outstanding in 2012
|
475,070 | 460,246 | ||||||
Treasury stock, at cost, 4,192,312 shares in 2013 and in 2012
|
(85,941 | ) | (85,941 | ) | ||||
Accumulated other comprehensive income
|
1,090 | 603 | ||||||
Accumulated deficit
|
(228,201 | ) | (126,433 | ) | ||||
Total shareholders' equity
|
162,018 | 248,475 | ||||||
Total liabilities and shareholders' equity
|
$ | 220,831 | $ | 297,224 |
Fiscal Years Ended
|
||||||||||||
February 2,
2013
|
January 28,
2012
|
January 29,
2011
|
||||||||||
Net revenue
|
$ | 216,613 | $ | 182,617 | $ | 286,915 | ||||||
Cost of revenue
|
125,588 | 105,241 | 146,271 | |||||||||
Gross profit
|
91,025 | 77,376 | 140,644 | |||||||||
Operating expenses
|
||||||||||||
Research and development
|
103,478 | 86,517 | 77,270 | |||||||||
Sales and marketing
|
34,550 | 34,467 | 31,712 | |||||||||
General and administrative
|
27,899 | 20,829 | 18,745 | |||||||||
Restructuring costs
|
3,264 | - | - | |||||||||
Impairment of goodwill
|
- | 45,108 | - | |||||||||
Impairment of acquired intangible assets
|
- | 66,170 | - | |||||||||
Impairment of IP, mask sets and design tools
|
6,569 | - | - | |||||||||
Gain on acquisition
|
(1,389 | ) | - | - | ||||||||
Total operating expenses
|
174,371 | 253,091 | 127,727 | |||||||||
Income (loss) from operations
|
(83,346 | ) | (175,715 | ) | 12,917 | |||||||
Interest and other income, net
|
2,325 | 2,704 | 2,183 | |||||||||
Impairment of investment
|
- | - | (5,203 | ) | ||||||||
Income (loss) before income taxes
|
(81,021 | ) | (173,011 | ) | 9,897 | |||||||
Provision for (benefit from) income taxes
|
20,747 | (4,966 | ) | 750 | ||||||||
Net income (loss)
|
$ | (101,768 | ) | $ | (168,045 | ) | $ | 9,147 | ||||
Net income (loss) per common share:
|
||||||||||||
Basic
|
$ | (3.06 | ) | $ | (5.25 | ) | $ | 0.29 | ||||
Diluted
|
$ | (3.06 | ) | $ | (5.25 | ) | $ | 0.29 | ||||
Shares used in computing net income (loss) per share:
|
||||||||||||
Basic
|
33,205 | 32,036 | 31,245 | |||||||||
Diluted
|
33,205 | 32,036 | 31,732 |
Fiscal Years Ended
|
||||||||||||
February 2,
2013
|
January 28,
2012
|
January 29,
2011
|
||||||||||
Net income (loss)
|
$ | (101,768 | ) | $ | (168,045 | ) | $ | 9,147 | ||||
Other comprehensive income (loss):
|
||||||||||||
Currency translation adjustments
|
247 | (327 | ) | (214 | ) | |||||||
Unrealized gains (losses) on marketable securities, net of tax
|
240 | (191 | ) | 146 | ||||||||
Other comprehensive income (loss)
|
487 | (518 | ) | (68 | ) | |||||||
Comprehensive income (loss)
|
$ | (101,281 | ) | $ | (168,563 | ) | $ | 9,079 |
Common Stock | Treasury Stock | Accumulated Other
Comprehensive Income
|
||||||||||||||||||||||||||||||
Shares
|
Amount
|
Shares
|
Amount
|
Unrealized Gain (Loss)
|
Accumulated Translation Adjustment
|
Retained Earnings (Accumulated Deficit)
|
Total Shareholders' Equity
|
|||||||||||||||||||||||||
Balance, January 30, 2010
|
35,047,234 | $ | 421,109 | (4,192,312 | ) | $ | (85,941 | ) | $ | 206 | $ | 983 | $ | 32,465 | $ | 368,822 | ||||||||||||||||
Unrealized gain on marketablesecurities
|
- | - | - | - | 146 | - | - | 146 | ||||||||||||||||||||||||
Currency translation adjustments
|
- | - | - | - | - | (214 | ) | - | (214 | ) | ||||||||||||||||||||||
Stock-based compensation expense
|
- | 12,577 | - | - | - | - | - | 12,577 | ||||||||||||||||||||||||
Grants of restricted stock awards
|
85,137 | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Tax effect related to stock options
|
- | 2,320 | - | - | - | - | - | 2,320 | ||||||||||||||||||||||||
Net proceeds from common stock issued under share plans
|
800,907 | 5,243 | - | - | - | - | - | 5,243 | ||||||||||||||||||||||||
Net income
|
- | - | - | - | - | - | 9,147 | 9,147 | ||||||||||||||||||||||||
Balance, January 29, 2011
|
35,933,278 | 441,249 | (4,192,312 | ) | (85,941 | ) | 352 | 769 | 41,612 | 398,041 | ||||||||||||||||||||||
Unrealized loss on marketable securities
|
- | - | - | - | (191 | ) | - | - | (191 | ) | ||||||||||||||||||||||
Currency translation adjustments
|
- | - | - | - | - | (327 | ) | - | (327 | ) | ||||||||||||||||||||||
Stock-based compensation expense
|
- | 12,025 | - | - | - | - | - | 12,025 | ||||||||||||||||||||||||
Grants of restricted stock awards
|
163,070 | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Tax effect related to stock options
|
- | 1,595 | - | - | - | - | - | 1,595 | ||||||||||||||||||||||||
Net proceeds from common stock issued under share plans
|
974,230 | 5,377 | - | - | - | - | - | 5,377 | ||||||||||||||||||||||||
Net loss
|
- | - | - | - | - | - | (168,045 | ) | (168,045 | ) | ||||||||||||||||||||||
Balance, January 28, 2012
|
37,070,578 | 460,246 | (4,192,312 | ) | (85,941 | ) | 161 | 442 | (126,433 | ) | 248,475 | |||||||||||||||||||||
Unrealized gain on marketable securities
|
- | - | - | - | 240 | - | - | 240 | ||||||||||||||||||||||||
Currency translation adjustments
|
- | - | - | - | - | 247 | - | 247 | ||||||||||||||||||||||||
Stock-based compensation expense
|
- | 10,595 | - | - | - | - | - | 10,595 | ||||||||||||||||||||||||
Grants of restricted stock awards
|
10,980 | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Tax effect related to stock options
|
- | (345 | ) | - | - | - | - | - | (345 | ) | ||||||||||||||||||||||
Net proceeds from common stock issued under share plans
|
1,152,799 | 4,574 | - | - | - | - | - | 4,574 | ||||||||||||||||||||||||
Net loss
|
- | - | - | - | - | - | (101,768 | ) | (101,768 | ) | ||||||||||||||||||||||
Balance, February 2, 2013
|
38,234,357 | $ | 475,070 | (4,192,312 | ) | $ | (85,941 | ) | $ | 401 | $ | 689 | $ | (228,201 | ) | $ | 162,018 |
Fiscal Years Ended
|
||||||||||||
February 2, 2013
|
January 28, 2012
|
January 29, 2011
|
||||||||||
Cash flows from operating activities
|
||||||||||||
Net income (loss)
|
$ | (101,768 | ) | $ | (168,045 | ) | $ | 9,147 | ||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
|
||||||||||||
Depreciation and amortization
|
23,870 | 28,952 | 27,680 | |||||||||
Stock-based compensation
|
10,595 | 12,025 | 12,577 | |||||||||
Provision for excess and obsolete inventory
|
7,053 | 8,955 | 488 | |||||||||
Provision for (recovery of) sales returns, discounts and doubtful accounts
|
(158 | ) | 54 | 260 | ||||||||
Deferred income taxes
|
12,398 | (10,221 | ) | (4,806 | ) | |||||||
(Gain) loss on disposal of software, equipment and leasehold improvements
|
(437 | ) | 173 | 449 | ||||||||
Impairment of investment
|
- | - | 5,203 | |||||||||
Gain on acquisition
|
(1,389 | ) | - | - | ||||||||
Non-cash restructuring costs
|
2,111 | - | - | |||||||||
Tax effect related to stock options
|
(345 | ) | 1,595 | 2,320 | ||||||||
Excess tax (benefit) expense from stock-based compensation
|
345 | (1,938 | ) | (2,320 | ) | |||||||
Accretion of contributed leasehold improvements
|
(206 | ) | (260 | ) | (176 | ) | ||||||
Impairment of goodwill, intangible assets, IP, mask sets and design tools
|
11,174 | 111,278 | - | |||||||||
Changes in operating assets and liabilities:
|
||||||||||||
Accounts receivable
|
13,100 | 10,114 | 4,517 | |||||||||
Inventory
|
3,699 | 6,964 | (20,015 | ) | ||||||||
Prepaid expenses and other current assets
|
1,268 | (443 | ) | (697 | ) | |||||||
Other non-current assets
|
(3,954 | ) | 156 | 84 | ||||||||
Accounts payable
|
4,473 | (7,968 | ) | 4,705 | ||||||||
Accrued liabilities, compensation and related benefits
|
1,391 | (4,114 | ) | 1,028 | ||||||||
Income taxes payable and other long-term liabilities
|
2,135 | 577 | 1,428 | |||||||||
Net cash provided by (used in) operating activities
|
(14,645 | ) | (12,146 | ) | 41,872 | |||||||
Cash flows from investing activities
|
||||||||||||
Restricted cash
|
- | (153 | ) | (116 | ) | |||||||
Purchases of marketable securities
|
(21,354 | ) | (88,072 | ) | (130,530 | ) | ||||||
Sales and maturities of marketable securities
|
94,043 | 88,515 | 90,320 | |||||||||
Purchases of software, equipment, leasehold improvements and IP
|
(17,629 | ) | (14,239 | ) | (14,653 | ) | ||||||
Net cash paid in connection with acquisitions
|
(38,210 | ) | (5,000 | ) | - | |||||||
Purchases of long-term investments
|
- | (2,142 | ) | (2,300 | ) | |||||||
Repayment of note receivable
|
250 | 150 | - | |||||||||
Purchase of notes receivable
|
- | (2,500 | ) | (1,150 | ) | |||||||
Net cash provided by (used in) investing activities
|
17,100 | (23,441 | ) | (58,429 | ) | |||||||
Cash flows from financing activities
|
||||||||||||
Net proceeds from exercise of employee stock options and stock purchase rights
|
4,574 | 5,377 | 5,243 | |||||||||
Excess tax benefit (expense) from stock-based compensation
|
(345 | ) | 1,938 | 2,320 | ||||||||
Net cash provided by financing activities
|
4,229 | 7,315 | 7,563 | |||||||||
Effect of foreign exchange rate changes on cash and cash equivalents
|
251 | (177 | ) | (221 | ) | |||||||
Net increase (decrease) in cash and cash equivalents
|
6,935 | (28,449 | ) | (9,215 | ) | |||||||
Cash and cash equivalents, beginning of period
|
44,283 | 72,732 | 81,947 | |||||||||
Cash and cash equivalents, end of period
|
$ | 51,218 | $ | 44,283 | $ | 72,732 | ||||||
Supplemental disclosure of cash flow information
|
||||||||||||
Cash paid for interest
|
$ | - | $ | - | $ | 148 | ||||||
Cash paid for income taxes
|
$ | 2,673 | $ | 1,330 | $ | 1,623 |
February 2, 2013
|
January 28, 2012
|
|||||||||||||||||||||||
Book Value
|
Net Unrealized Gains (Losses)
|
Fair Value
|
Book Value
|
Net Unrealized Gains (Losses)
|
Fair Value
|
|||||||||||||||||||
Corporate bonds
|
$ | 30,642 | $ | 537 | $ | 31,179 | $ | 91,829 | $ | 192 | $ | 92,021 | ||||||||||||
Money market funds
|
21,032 | - | 21,032 | 20,876 | - | 20,876 | ||||||||||||||||||
Municipal bonds and notes
|
515 | 14 | 529 | 1,668 | 19 | 1,687 | ||||||||||||||||||
Fixed income mutual funds
|
1,259 | 20 | 1,279 | - | - | - | ||||||||||||||||||
Corporate commercial paper
|
- | - | - | 1,946 | - | 1,946 | ||||||||||||||||||
US agency discount notes
|
- | - | - | 8,506 | (4 | ) | 8,502 | |||||||||||||||||
Total cash equivalents and marketable securities
|
$ | 53,448 | $ | 571 | $ | 54,019 | $ | 124,825 | $ | 207 | $ | 125,032 | ||||||||||||
Cash on hand held in the United States
|
1,441 | 1,030 | ||||||||||||||||||||||
Cash on hand held overseas
|
27,466 | 22,377 | ||||||||||||||||||||||
Total cash on hand
|
28,907 | 23,407 | ||||||||||||||||||||||
Total cash, cash equivalents and marketable securities
|
$ | 82,926 | $ | 148,439 | ||||||||||||||||||||
Reported as:
|
||||||||||||||||||||||||
Cash and cash equivalents
|
51,218 | 44,283 | ||||||||||||||||||||||
Short-term marketable securities
|
17,455 | 42,134 | ||||||||||||||||||||||
Long-term marketable securities
|
14,253 | 62,022 | ||||||||||||||||||||||
$ | 82,926 | $ | 148,439 |
February 2, 2013
|
January 28, 2012
|
|||||||||||||||
Book Value
|
Fair Value
|
Book Value
|
Fair Value
|
|||||||||||||
Due in one year or less
|
$ | 39,595 | $ | 39,767 | $ | 62,970 | $ | 63,010 | ||||||||
Due in greater than one year
|
13,853 | 14,252 | 61,855 | 62,022 | ||||||||||||
Total
|
$ | 53,448 | $ | 54,019 | $ | 124,825 | $ | 125,032 |
●
|
Level 1 - Valuation is based upon quoted prices for identical instruments traded in active markets.
|
●
|
Level 2 - Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-based valuation techniques for which all significant assumptions are observable in the market.
|
●
|
Level 3 - Valuation is generated from model-based techniques that use significant assumptions not observable in the market. These unobservable assumptions reflect our estimate of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include use of option pricing models, discounted cash flow models and similar techniques.
|
February 2, 2013
|
||||||||||||||||
Fair Value
|
Quoted Prices in Active Markets for Identical Assets (Level 1)
|
Significant Observable Inputs (Level 2)
|
Significant Unobservable Inputs (Level 3)
|
|||||||||||||
Corporate bonds
|
$ | 31,179 | $ | 31,179 | $ | - | $ | - | ||||||||
Money market funds
|
21,032 | 21,032 | - | - | ||||||||||||
Municipal bonds and notes
|
529 | 529 | - | - | ||||||||||||
Fixed income mutual funds
|
1,279 | 1,279 | - | - | ||||||||||||
Total cash equivalents and marketable securities
|
$ | 54,019 | $ | 54,019 | $ | - | $ | - | ||||||||
Restricted cash
|
1,769 | 1,769 | - | - | ||||||||||||
Derivative instruments asset
|
438 | - | 438 | - | ||||||||||||
Total assets and (liabilities) measured at fair value
|
$ | 56,226 | $ | 55,788 | $ | 438 | $ | - |
January 28, 2012
|
||||||||||||||||
Fair Value
|
Quoted Prices in Active Markets for Identical Assets (Level 1)
|
Significant Observable Inputs (Level 2)
|
Significant Unobservable Inputs (Level 3)
|
|||||||||||||
Corporate bonds
|
$ | 92,021 | $ | 92,021 | $ | - | $ | - | ||||||||
Money market funds
|
20,876 | 20,876 | - | - | ||||||||||||
Municipal bonds and notes
|
1,687 | 1,687 | - | - | ||||||||||||
Corporate commercial paper
|
1,946 | 1,946 | - | - | ||||||||||||
US agency discount notes
|
8,502 | 8,502 | - | - | ||||||||||||
Total cash equivalents and marketable securities
|
$ | 125,032 | $ | 125,032 | $ | - | $ | - | ||||||||
Restricted cash
|
1,769 | 1,769 | - | - | ||||||||||||
Derivative instruments liability
|
(121 | ) | - | (121 | ) | - | ||||||||||
Total assets and (liabilities) measured at fair value
|
$ | 126,680 | $ | 126,801 | $ | (121 | ) | $ | - |
Derivative Assets
|
Balance Sheet Location
|
February 2, 2013
|
January 28, 2012
|
|||||||
Foreign exchange contracts not designated as cash flow hedges
|
Prepaid expenses and other current assets (accrued liabilities)
|
$ | 438 | $ | (121 | ) | ||||
Total fair value of derivative instruments
|
$ | 438 | $ | (121 | ) |
Gains (Losses) Recognized in Accumulated Other Comprehensive Income on Derivatives (Effective Portion)
|
Gains Reclassified from Accumulated Other Comprehensive Income into Earnings
|
Gains (Losses) Recognized in Earnings on Derivatives (Including Ineffective Portion)
|
||||||||||||
Derivatives instruments
|
Amount
|
Amount
|
Location
|
Amount
|
Location
|
|||||||||
Fiscal 2013 foreign exchange contracts
|
$ | - | $ | - |
Operating expenses and cost of revenue
|
$ | 447 |
Interest and other income, net
|
||||||
Fiscal 2012 foreign exchange contracts
|
$ | - | $ | 85 |
Operating expenses and cost of revenue
|
$ | 153 |
Interest and other income, net
|
February 2, 2013
|
January 28, 2012
|
|||||||
Equity investments | ||||||||
Issuer B
|
$ | 2,000 | $ | 2,000 | ||||
Issuer C
|
1,000 | 1,000 | ||||||
Issuer D
|
1,000 | 1,000 | ||||||
Issuer E
|
300 | 300 | ||||||
Issuer F
|
2,000 | 2,000 | ||||||
Issuer G
|
143 | 143 | ||||||
Total equity investments
|
6,443 | 6,443 | ||||||
Notes receivable
|
||||||||
Issuer B
|
750 | 1,000 | ||||||
Issuer H
|
2,500 | 2,500 | ||||||
Total notes receivable
|
3,250 | 3,500 | ||||||
Total equity investments and notes receivable
|
$ | 9,693 | $ | 9,943 |
February 2, 2013
|
January 28, 2012
|
|||||||
Wafers and other purchased materials
|
$ | 12,553 | $ | 11,006 | ||||
Work-in-process
|
1,071 | 191 | ||||||
Finished goods
|
11,305 | 10,840 | ||||||
Total inventory
|
$ | 24,929 | $ | 22,037 |
February 2, 2013
|
January 28, 2012
|
|||||||
Prepayments for inventory
|
$ | 2,542 | $ | - | ||||
Amounts due from seller related to DTV acquisition
|
4,519 | - | ||||||
Note receivable
|
750 | 500 | ||||||
Assets held for sale
|
623 | - | ||||||
Other current assets
|
5,144 | 6,734 | ||||||
Total prepaid expenses and other current assets
|
$ | 13,578 | $ | 7,234 |
Estimated
Useful Lives
(years)
|
February 2,
2013
|
January 28,
2012
|
|||||||||
Software
|
2
|
|
$ | 24,216 | $ | 25,267 | |||||
Equipment
|
2 | to |
5
|
17,688 | 14,486 | ||||||
Office equipment and furniture
|
2 |
|
8,338 | 8,144 | |||||||
Leasehold improvements
|
1 | to |
6
|
3,097 | 3,520 | ||||||
Total
|
53,339 | 51,417 | |||||||||
Less: Accumulated depreciation and amortization
|
(36,233 | ) | (31,808 | ) | |||||||
Total software, equipment and leasehold improvements, net
|
$ | 17,106 | $ | 19,609 |
Amount | |||||||
Purchase consideration:
|
|||||||
Cash
|
$ | 5,000 | |||||
Tangible assets acquired and liabilities assumed
|
$ | 752 | |||||
Identifiable intangible assets:
|
Estimated Useful Lives (years)
|
||||||
Developed technology
|
|||||||
Technology
|
1,250 |
5
|
|||||
Technology leveraged
|
1,680 |
8
|
|||||
Customer relationships
|
750 |
5
|
|||||
In-process research and development
|
370 | — | |||||
Goodwill
|
198 | — | |||||
Total consideration
|
$ | 5,000 |
Amount
|
|||||
Purchase consideration:
|
|||||
Cash
|
$ | 38,210 | |||
Tangible assets acquired and liabilities assumed
|
$ | 38,431 | |||
Identifiable intangible assets:
|
Estimated Useful Lives (years)
|
||||
Developed technology
|
1,168 |
3
|
|||
Gain on acquisition
|
(1,389 | ) | |||
Total consideration
|
$ | 38,210 |
Fiscal Years Ended
|
||||||||
February 2, 2013
|
January 28, 2012
|
|||||||
Net revenue
|
$ | 239,557 | $ | 356,778 | ||||
Net loss
|
(120,313 | ) | (221,297 | ) | ||||
Basic and diluted net loss per share
|
$ | (3.62 | ) | $ | (6.91 | ) |
February 2, 2013
|
January 28, 2012
|
|||||||
Acquired intangible assets
|
$ | 77,146 | $ | 75,978 | ||||
Purchased IP
|
23,450 | 22,204 | ||||||
Total
|
100,596 | 98,182 | ||||||
Accumulated amortization
|
(64,023 | ) | (52,526 | ) | ||||
Intangible assets, net
|
$ | 36,573 | $ | 45,656 |
February 2, 2013
|
|||||||||||||||||||
Gross Value
|
Impairment
|
Accumulated Amortization and Effect of Currency Translation
|
Net Value
|
Weighted Average Remaining Amortization Period (Years)
|
|||||||||||||||
Acquired intangible assets:
|
|||||||||||||||||||
Developed technology
|
$ | 76,995 | $ | (24,614 | ) | $ | (34,923 | ) | $ | 17,458 | 3.6 | ||||||||
Customer relationships
|
51,174 | (30,486 | ) | (16,252 | ) | 4,436 | 3.6 | ||||||||||||
Trademarks
|
2,677 | - | (1,982 | ) | 695 | 5.9 | |||||||||||||
Non-compete agreements
|
1,400 | - | (1,400 | ) | - | ||||||||||||||
Purchased IP - amortizing
|
22,866 | (5,516 | ) | (9,466 | ) | 7,884 | 2.4 | ||||||||||||
Total amortizing
|
155,112 | (60,616 | ) | (64,023 | ) | 30,473 | 3.4 | ||||||||||||
Purchased IP - not yet deployed
|
8,778 | (2,678 | ) | - | 6,100 | ||||||||||||||
In-process research and development
|
11,070 | (11,070 | ) | - | - | ||||||||||||||
Total intangibles
|
$ | 174,960 | $ | (74,364 | ) | $ | (64,023 | ) | $ | 36,573 |
January 28, 2012
|
|||||||||||||||||||
Gross Value
|
Impairment
|
Accumulated Amortization and Effect of Currency Translation
|
Net Value
|
Weighted Average Remaining Amortization Period (Years)
|
|||||||||||||||
Acquired intangible assets:
|
|||||||||||||||||||
Developed technology
|
$ | 75,827 | $ | (24,614 | ) | $ | (28,455 | ) | $ | 22,758 | 4.7 | ||||||||
Customer relationships
|
51,174 | (30,486 | ) | (14,966 | ) | 5,722 | 4.8 | ||||||||||||
Trademarks
|
2,677 | - | (1,805 | ) | 872 | 6.6 | |||||||||||||
Non-compete agreements
|
1,400 | - | (1,400 | ) | - | ||||||||||||||
Purchased IP - amortizing
|
8,395 | - | (5,900 | ) | 2,495 | 1.9 | |||||||||||||
Total amortizing
|
139,473 | (55,100 | ) | (52,526 | ) | 31,847 | 4.8 | ||||||||||||
Purchased IP - not yet deployed
|
13,809 | - | - | 13,809 | |||||||||||||||
In-process research and development
|
11,070 | (11,070 | ) | - | - | ||||||||||||||
Total intangibles
|
$ | 164,352 | $ | (66,170 | ) | $ | (52,526 | ) | $ | 45,656 |
Fiscal years
|
Purchased IP-Amortizing
|
Developed Technology
|
Trademarks
|
Customer Relationships
|
Total
|
|||||||||||||||
2014
|
$ | 3,438 | $ | 5,767 | $ | 119 | $ | 1,265 | $ | 10,589 | ||||||||||
2015
|
3,095 | 4,282 | 118 | 1,265 | 8,760 | |||||||||||||||
2016
|
1,351 | 3,957 | 118 | 1,109 | 6,535 | |||||||||||||||
2017
|
- | 2,957 | 118 | 797 | 3,872 | |||||||||||||||
2018
|
- | 495 | 118 | - | 613 | |||||||||||||||
Thereafter
|
- | - | 104 | - | 104 | |||||||||||||||
Total
|
$ | 7,884 | $ | 17,458 | $ | 695 | $ | 4,436 | $ | 30,473 |
February 2, 2013
|
January 28, 2012
|
|||||||
Income taxes
|
$ | 4,508 | $ | 2,572 | ||||
License fees
|
3,553 | 3,976 | ||||||
Deferred revenue
|
3,099 | 434 | ||||||
Rebates
|
1,475 | 2,150 | ||||||
Settlements
|
425 | 2,000 | ||||||
Other accrued liabilities
|
5,661 | 3,992 | ||||||
Total accrued liabilities
|
$ | 18,721 | $ | 15,124 |
Fiscal Years
|
Balance Beginning of Period
|
Additions
|
Deductions
|
Balance End of Period
|
||||||||||||
2011
|
$ | 1,100 | $ | 918 | $ | (718 | ) | $ | 1,300 | |||||||
2012
|
$ | 1,300 | $ | 1,082 | $ | (1,056 | ) | $ | 1,326 | |||||||
2013
|
$ | 1,326 | $ | 1,188 | $ | (1,067 | ) | $ | 1,447 |
Restructuring Costs Incurred in Fiscal 2013
|
Cash Payments in Fiscal 2013
|
Restructuring Costs Liability at February 2, 2013
|
Cumulative Restructuring Costs Through February 2, 2013
|
|||||||||||||
Severance
|
$ | 2,167 | $ | 1,153 | $ | 1,014 | $ | 2,167 | ||||||||
Impairment of long-lived assets
|
1,089 | - | - | 1,089 | ||||||||||||
Facility exit costs
|
8 | - | 8 | 8 | ||||||||||||
Total restructuring costs
|
$ | 3,264 | $ | 1,153 | $ | 1,022 | $ | 3,264 |
Fiscal Years
|
Operating Leases
|
|||
2014
|
$ | 5,495 | ||
2015
|
4,310 | |||
2016
|
2,862 | |||
2017
|
1,647 | |||
2018
|
150 | |||
Total minimum lease payments
|
$ | 14,464 |
Fiscal Years Ended
|
||||||||||||
February 2, 2013
|
January 28, 2012
|
January 29, 2011
|
||||||||||
Net income (loss), as reported
|
$ | (101,768 | ) | $ | (168,045 | ) | $ | 9,147 | ||||
Weighted-average common shares outstanding- basic
|
33,205 | 32,036 | 31,245 | |||||||||
Dilutive effect of employee stock plans
|
- | - | 487 | |||||||||
Weighted-average common shares outstanding- diluted
|
33,205 | 32,036 | 31,732 | |||||||||
Net income (loss) per share- basic
|
$ | (3.06 | ) | $ | (5.25 | ) | $ | 0.29 | ||||
Net income (loss) per share- diluted
|
$ | (3.06 | ) | $ | (5.25 | ) | $ | 0.29 |
Fiscal Years Ended
|
||||||||||||
February 2, 2013
|
January 28, 2012
|
January 29, 2011
|
||||||||||
Stock options excluded because the effect of including would be anti-dilutive
|
137 | 353 | - | |||||||||
Stock options excluded because exercise price is in excess of average stock price
|
5,401 | 4,940 | 4,692 | |||||||||
Restricted stock awards and units excluded because the effect of including would be anti-dilutive
|
89 | - | - | |||||||||
Restricted stock awards and units excluded because potential buyback shares exceed weighted average restricted stock units and awards outstanding
|
255 | - | - |
Number of Options Outstanding
|
Weighted Average Exercise Price per Share
|
Weighted Average Remaining Contractual Term (Years)
|
Aggregate Intrinsic Value
|
|||||||||||||
As of January 30, 2010
|
5,745,795 | $ | 11.96 | 7.4 | ||||||||||||
Granted (Weighted average fair value of $5.95)
|
1,161,350 | 11.14 | ||||||||||||||
Cancelled
|
(356,305 | ) | 12.90 | |||||||||||||
Exercised
|
(466,715 | ) | 5.20 | |||||||||||||
As of January 29, 2011
|
6,084,125 | 12.26 | 6.9 | |||||||||||||
Granted (Weighted average fair value of $5.26)
|
532,800 | 10.22 | ||||||||||||||
Cancelled
|
(479,119 | ) | 11.87 | |||||||||||||
Exercised
|
(291,779 | ) | 5.14 | |||||||||||||
As of January 28, 2012
|
5,846,027 | 12.47 | 6.2 | |||||||||||||
Granted (Weighted average fair value of $2.77)
|
205,000 | 5.77 | ||||||||||||||
Cancelled
|
(848,930 | ) | 12.35 | |||||||||||||
Exercised
|
(146,310 | ) | 2.60 | |||||||||||||
As of February 2, 2013
|
5,055,787 | $ | 12.50 | 4.9 | $ | 272,117 | ||||||||||
Ending vested and expected to vest
|
5,005,958 | $ | 12.54 | 4.9 | $ | 256,991 | ||||||||||
Ending exercisable
|
3,790,842 | $ | 13.31 | 4.2 | $ | 174,904 |
Options Outstanding
|
Options Exercisable
|
|||||||||||||||||||||||||
Range of Exercise Prices Per Share
|
Number of Shares Outstanding as of February 2, 2013
|
Weighted Average Remaining Life (Years)
|
Weighted Average Exercise Price Per Share
|
Number of Shares Exercisable as of February 2, 2013
|
Weighted Average Exercise Price Per Share
|
|||||||||||||||||||||
$ | 0.92 | $ | 6.67 | 526,965 | 6.6 | $ | 5.40 | 179,622 | $ | 4.79 | ||||||||||||||||
7.32 | 10.51 | 511,251 | 3.4 | 8.79 | 448,775 | 8.60 | ||||||||||||||||||||
10.59 | 10.59 | 544,546 | 6.0 | 10.59 | 333,966 | 10.59 | ||||||||||||||||||||
10.87 | 10.87 | 511,318 | 5.1 | 10.87 | 428,284 | 10.87 | ||||||||||||||||||||
11.06 | 11.07 | 865,696 | 4.8 | 11.06 | 714,051 | 11.06 | ||||||||||||||||||||
11.09 | 11.47 | 522,464 | 4.0 | 11.27 | 466,426 | 11.28 | ||||||||||||||||||||
11.66 | 12.21 | 544,840 | 5.8 | 11.92 | 347,264 | 11.95 | ||||||||||||||||||||
12.27 | 15.91 | 546,826 | 4.0 | 14.77 | 408,804 | 14.78 | ||||||||||||||||||||
16.25 | 41.58 | 431,881 | 4.0 | 28.26 | 413,650 | 28.77 | ||||||||||||||||||||
45.83 | 45.83 | 50,000 | 4.8 | 45.83 | 50,000 | 45.83 | ||||||||||||||||||||
$ | 0.92 | $ | 45.83 | 5,055,787 | 4.9 | $ | 12.50 | 3,790,842 | $ | 13.31 |
Restricted Stock Awards
|
Weighted Average Grant Date Fair Value per Award
|
Aggregate Value
|
||||||||||
As of January 30, 2010
|
- | $ | - | $ | - | |||||||
Granted
|
85,137 | 13.39 | ||||||||||
As of January 29, 2011
|
85,137 | 13.39 | 1,139,984 | |||||||||
Granted
|
163,070 | 6.91 | ||||||||||
Vested
|
(17,028 | ) | 13.39 | |||||||||
As of January 28, 2012
|
231,179 | 8.82 | 2,038,473 | |||||||||
Granted
|
10,980 | 6.83 | ||||||||||
Vested
|
(78,848 | ) | 8.77 | |||||||||
As of February 2, 2013
|
163,311 | $ | 8.71 | $ | 1,422,439 |
Restricted Stock Units
|
Weighted Average Grant Date Fair Value per Unit
|
Aggregate Value
|
||||||||||
As of January 29, 2011
|
- | $ | - | $ | - | |||||||
Granted
|
597,500 | 6.52 | ||||||||||
Cancelled/forfeited
|
(50,000 | ) | 6.64 | |||||||||
As of January 28, 2012
|
547,500 | 6.51 | 3,566,040 | |||||||||
Granted
|
313,003 | 6.03 | ||||||||||
Vested
|
(118,766 | ) | 6.51 | |||||||||
Cancelled/forfeited
|
(109,475 | ) | 6.45 | |||||||||
As of February 2, 2013
|
632,262 | $ | 6.28 | $ | 3,972,964 |
Fiscal Years Ended
|
||||||||||||
Stock options
|
February 2, 2013
|
January 28, 2012
|
January 29, 2011
|
|||||||||
Expected volatility
|
51.31 | % | 52.01 | % | 55.02 | % | ||||||
Risk-free interest rate
|
0.92 | % | 1.60 | % | 2.54 | % | ||||||
Expected term (in years)
|
5.87 | 5.94 | 5.94 | |||||||||
Dividend yield
|
0 | % | 0 | % | 0 | % | ||||||
Weighted average fair value at grant date
|
$ | 2.77 | $ | 5.27 | $ | 5.95 |
Fiscal Years Ended
|
||||||||||||
Employee stock purchase plan
|
February 2, 2013
|
January 28, 2012
|
January 29, 2011
|
|||||||||
Expected volatility
|
37.84 | % | 46.03 | % | 37.52 | % | ||||||
Risk-free interest rate
|
0.13 | % | 0.08 | % | 0.21 | % | ||||||
Expected term (in years)
|
0.49 | 0.49 | 0.50 | |||||||||
Dividend yield
|
0 | % | 0 | % | 0 | % | ||||||
Weighted average fair value at grant date
|
$ | 1.47 | $ | 1.85 | $ | 2.94 |
Fiscal Years Ended
|
||||||||||||
February 2, 2013
|
January 28, 2012
|
January 29, 2011
|
||||||||||
Cost of revenue
|
$ | 487 | $ | 478 | $ | 560 | ||||||
Research and development
|
5,740 | 6,277 | 6,745 | |||||||||
Sales and marketing
|
1,811 | 2,137 | 2,094 | |||||||||
General and administrative
|
2,557 | 3,133 | 3,178 | |||||||||
Total stock-based compensation
|
$ | 10,595 | $ | 12,025 | $ | 12,577 |
Shares
Reserved
|
||||
Stock options outstanding
|
5,055,787 | |||
Authorized for future grants under stock incentive plans
|
2,101,158 | |||
Authorized for future issuance under stock purchase plans
|
929,826 | |||
Restricted stock units outstanding
|
632,262 | |||
Shares reserved for future issuance
|
8,719,033 |
Fiscal Years Ended
|
||||||||||||
February 2, 2013
|
January 28, 2012
|
January 29, 2011
|
||||||||||
United States
|
$ | (5,274 | ) | $ | (12,366 | ) | $ | (4,220 | ) | |||
International
|
(75,747 | ) | (160,645 | ) | 14,117 | |||||||
Total
|
$ | (81,021 | ) | $ | (173,011 | ) | $ | 9,897 |
Fiscal Years Ended
|
||||||||||||
February 2, 2013
|
January 28, 2012
|
January 29, 2011
|
||||||||||
Current
|
||||||||||||
Federal
|
$ | (162 | ) | $ | 2,003 | $ | 3,052 | |||||
State
|
15 | (27 | ) | 15 | ||||||||
Foreign
|
8,496 | 3,397 | 2,562 | |||||||||
Total current
|
8,349 | 5,373 | 5,629 | |||||||||
Deferred:
|
||||||||||||
Federal
|
15,932 | (3,434 | ) | (3,791 | ) | |||||||
Foreign
|
(3,534 | ) | (6,905 | ) | (1,088 | ) | ||||||
Total deferred
|
12,398 | (10,339 | ) | (4,879 | ) | |||||||
Total provision (benefit)
|
$ | 20,747 | $ | (4,966 | ) | $ | 750 |
February 2, 2013
|
January 28, 2012
|
|||||||
Deferred tax assets:
|
||||||||
Net operating loss
|
$ | 8,426 | $ | 8,015 | ||||
Investment impairment
|
1,519 | 1,823 | ||||||
Allowance, reserve and other
|
8,126 | 5,272 | ||||||
Depreciation
|
2,598 | 3,421 | ||||||
Tax credits
|
10,936 | 10,022 | ||||||
Stock-based compensation
|
10,840 | 11,072 | ||||||
Total gross deferred tax assets
|
42,445 | 39,625 | ||||||
Valuation allowance
|
(33,305 | ) | (17,109 | ) | ||||
Total net deferred tax assets
|
9,140 | 22,516 | ||||||
Deferred tax liabilities:
|
||||||||
Acquired intangibles and other
|
(1,395 | ) | (2,151 | ) | ||||
Total net deferred tax assets
|
$ | 7,745 | $ | 20,365 |
Amount
|
Range of Expiration Years | ||||||||
Net operating losses, federal
|
$ | 33,934 | 2019 | - | 2032 | ||||
Net operating losses, state
|
25,407 | 2014 | - | 2033 | |||||
Net operating losses, foreign
|
29,669 | Indefinite | |||||||
Tax credits, federal
|
15,693 | 2019 | - | 2033 | |||||
Tax credits, state
|
15,689 | Indefinite |
Fiscal Years Ended
|
||||||||||||
February 2, 2013
|
January 28, 2012
|
January 29, 2011
|
||||||||||
Computed at federal statutory rate of 35%
|
$ | (28,357 | ) | $ | (60,554 | ) | $ | 3,464 | ||||
State taxes provision (benefit), net of federal benefit
|
10 | (33 | ) | 10 | ||||||||
Uncertain tax positions
|
219 | 441 | 853 | |||||||||
Difference between statutory rate and foreign effective tax rate
|
31,469 | 49,839 | (3,466 | ) | ||||||||
Stock-based compensation expense
|
2,391 | 746 | 878 | |||||||||
Change in federal valuation allowance
|
16,704 | - | - | |||||||||
Tax credits
|
(1,561 | ) | (1,326 | ) | (1,201 | ) | ||||||
Goodwill and intangible assets impairment
|
- | 5,646 | - | |||||||||
Other
|
(128 | ) | 275 | 212 | ||||||||
Total
|
$ | 20,747 | $ | (4,966 | ) | $ | 750 |
Fiscal Years Ended
|
||||||||||||
February 2, 2013
|
January 28, 2012
|
January 29, 2011
|
||||||||||
Beginning balance
|
$ | 22,389 | $ | 20,337 | $ | 18,841 | ||||||
Additions based on tax positions related to the current year
|
4,596 | 1,965 | 1,436 | |||||||||
Additions for tax positions of prior years
|
283 | 404 | 388 | |||||||||
Reductions for tax positions of prior year
|
(252 | ) | (317 | ) | (328 | ) | ||||||
Ending balance
|
$ | 27,016 | $ | 22,389 | $ | 20,337 |
Fiscal Years Ended
|
||||||||||||
February 2, 2013
|
January 28, 2012
|
January 29, 2011
|
||||||||||
Chipsets
|
$ | 210,139 | $ | 181,584 | $ | 285,544 | ||||||
License and other
|
6,474 | 1,033 | 1,371 | |||||||||
Net revenue
|
$ | 216,613 | $ | 182,617 | $ | 286,915 |
Fiscal Years Ended
|
||||||||||||
February 2, 2013
|
January 28, 2012
|
January 29, 2011
|
||||||||||
DTV
|
$ | 66,564 | $ | - | $ | - | ||||||
Home networking
|
79,489 | 68,435 | 89,261 | |||||||||
IPTV media processor
|
31,079 | 62,441 | 137,281 | |||||||||
Home control and energy management
|
12,426 | 10,922 | 5,524 | |||||||||
Prosumer and industrial audio/video
|
10,344 | 12,079 | 15,035 | |||||||||
Connected media player
|
10,510 | 27,988 | 39,627 | |||||||||
License and other
|
6,201 | 752 | 187 | |||||||||
Net revenue
|
$ | 216,613 | $ | 182,617 | $ | 286,915 |
Fiscal Years Ended
|
||||||||||||
February 2, 2013
|
January 28, 2012
|
January 29, 2011
|
||||||||||
Asia
|
$ | 150,658 | $ | 166,583 | $ | 266,065 | ||||||
North America
|
17,006 | 8,982 | 13,454 | |||||||||
Europe
|
41,283 | 5,718 | 7,101 | |||||||||
Other Regions
|
7,666 | 1,334 | 295 | |||||||||
Net revenue
|
$ | 216,613 | $ | 182,617 | $ | 286,915 |
Years Ended
|
||||||||||||
February 2, 2013
|
January 28, 2012
|
January 29, 2011
|
||||||||||
China, including Hong Kong
|
$ | 112,915 | $ | 141,122 | $ | 232,784 | ||||||
Hungary
|
31,044 | 20 | 97 | |||||||||
Taiwan
|
14,191 | 13,982 | 21,038 | |||||||||
United States
|
14,771 | 6,818 | 9,572 | |||||||||
Brazil
|
7,651 | 1,296 | 266 | |||||||||
Japan
|
5,885 | 6,153 | 6,609 | |||||||||
India
|
5,628 | - | - | |||||||||
Thailand
|
5,281 | 3,323 | 3,452 | |||||||||
Germany
|
3,226 | 552 | 286 | |||||||||
Singapore
|
2,307 | 1,322 | 1,703 | |||||||||
Korea
|
2,119 | - | 17 | |||||||||
Poland
|
523 | 1,389 | 5,640 | |||||||||
Canada
|
688 | 853 | 2,465 | |||||||||
Rest of the world
|
10,384 | 5,787 | 2,986 | |||||||||
Net revenue
|
$ | 216,613 | $ | 182,617 | $ | 286,915 |
Fiscal Years Ended
|
||||||||
February 2, 2013
|
January 28, 2012
|
|||||||
United States
|
$ | 20,045 | $ | 26,882 | ||||
All other countries
|
33,634 | 38,383 | ||||||
Total long-lived assets
|
$ | 53,679 | $ | 65,265 |
Fiscal Years Ended
|
||||||||||||
February 2, 2013
|
January 28, 2012
|
January 29, 2011
|
||||||||||
TP Vision
|
14 | % | * | * | ||||||||
Flextronics
|
12 | % | * | * | ||||||||
Motorola
|
* | 17 | % | 24 | % | |||||||
Gemtek
|
* | 22 | % | 23 | % |
Fiscal Quarters Ended
|
||||||||||||||||||||||||||||||||
February 2, 2013
|
October 27, 2012
|
July 28, 2012
|
April 28, 2012
|
January 28, 2012
|
October 29, 2011
|
July 31, 2011
|
April 30, 2011
|
|||||||||||||||||||||||||
Net revenue
|
$ | 44,199 | $ | 63,905 | $ | 68,251 | $ | 40,258 | $ | 35,566 | $ | 39,725 | $ | 46,694 | $ | 60,632 | ||||||||||||||||
Gross profit
|
13,868 | 25,482 | 30,580 | 21,095 | 16,588 | 18,002 | 12,994 | 29,792 | ||||||||||||||||||||||||
Loss from operations
|
(35,262 | ) | (20,861 | ) | (13,262 | ) | (13,961 | ) | (19,256 | ) | (128,282 | ) | (22,437 | ) | (5,740 | ) | ||||||||||||||||
Net loss
|
(35,197 | ) | (39,451 | ) | (13,418 | ) | (13,702 | ) | (18,838 | ) | (121,575 | ) | (21,962 | ) | (5,670 | ) | ||||||||||||||||
Basic and diluted net loss per share
|
$ | (1.05 | ) | $ | (1.18 | ) | $ | (0.41 | ) | $ | (0.42 | ) | $ | (0.58 | ) | $ | (3.78 | ) | $ | (0.69 | ) | $ | (0.18 | ) |
1.
|
Consolidated Financial Statements
|
Financial Statements
|
Page
|
|
Rep Report of Independent Registered Public Accounting Firm
|
49
|
|
Con Consolidated Balance Sheets
|
50
|
|
Con Consolidated Statements of Operations
|
51
|
|
C Consolidated Statements of Comprehensive Income (Loss)
|
51
|
|
Con Consolidated Statements of Shareholders’ Equity
|
52
|
|
Con Consolidated Statements of Cash Flows
|
53
|
|
Not Notes to Consolidated Financial Statements
|
54
|
2.
|
Consolidated Financial Statements Schedules
|
Schedule II—Valuation and Qualifying Accounts and Reserves
|
85
|
SIGMA DESIGNS, INC.
|
|||
By:
|
/s/ Thinh Q. Tran
|
||
Thinh Q. Tran
|
|||
President and Chief Executive Officer
|
Signature
|
Title
|
Date
|
||
/s/ Thinh Q. Tran
|
President, and Chief
|
April 12, 2013
|
||
Thinh Q. Tran | Executive Officer (Principal Executive Officer) | |||
/s/ Elias N. Nader
|
Interim Chief Financial Officer and Secretary
|
April 12, 2013
|
||
Elias N. Nader | (Principal Financial, Accounting and Compliance Officer) | |||
/s/ Mark J. Bonney
|
Director
|
April 12, 2013
|
||
Mark J. Bonney | ||||
/s/ Maury Austin
|
Director
|
April 12, 2013
|
||
Maury Austin | ||||
/s/ Lung C. Tsai
|
Director
|
April 12, 2013
|
||
Lung C. Tsai |
/s/ Eric Singer
|
Chairman of the Board
|
April 12, 2013
|
||
Eric Singer |
Classification
|
Balance
Beginning of
Period
|
Additions:
Provision for
(Recovery of)
|
Deductions:
(Write-offs)
Recoveries of
|
Balance End of
Period
|
||||||||||||
Allowance for returns, doubtful accounts and discounts:
|
(in thousands)
|
|||||||||||||||
Fiscal Years
|
||||||||||||||||
2011
|
$ | 346 | $ | 260 | $ | (4 | ) | $ | 602 | |||||||
2012
|
602 | 54 | (119 | ) | 537 | |||||||||||
2013
|
$ | 537 | $ | (158 | ) | $ | (84 | ) | $ | 295 |
Exhibit
Number
|
Description
|
Filed Herewith or Incorporated Herein by Reference to
|
3.1
|
Second Restated Articles of Incorporation.
|
Incorporated by reference to exhibit filed with the Registration Statement on Form S-1 (No. 33-17789) filed October 8, 1987, Amendment No. 1 thereto filed June 9, 1988 and Amendment No. 2 thereto filed June 14, 1988, which Registration Statement became effective June 14, 1988.
|
||
3.2
|
Certificate of Amendment to the Second Restated Articles of Incorporation dated June 22, 2001.
|
Incorporated by reference to exhibit 3.1 filed with the Registration Statement on Form S-8 (No. 333-64234) filed on June 29, 2001.
|
||
3.3
|
Amended and Restated Bylaws of Sigma.
|
Incorporated by reference to exhibit 3.1 filed with the Current Report on Form 8-K on August 3, 2012.
|
||
3.4
|
Certificate of Determination of Preferences of Series A Preferred Stock dated June 13, 1997.
|
Incorporated by reference to exhibit 3.3 filed with the Registrant’s Form S-1 filed on September 14, 2007.
|
||
3.5
|
Certificate of Determination of Preferences of Series B Preferred Stock dated January 30, 1998.
|
Incorporated by reference to exhibit 3.4 filed with the Registrant’s Form S-1 filed on September 14, 2007.
|
||
3.6
|
Certificate of Determination of Preferences of Series C Preferred Stock dated January 20, 1999.
|
Incorporated by reference to exhibit 3.5 filed with the Registrant’s Form S-1 filed on September 14, 2007.
|
||
3.7
|
Certificate of Amendment to the Second Restated Articles of Incorporation dated January 28, 2008.
|
Incorporated by reference to exhibit 3.7 filed with the Annual Report on Form 10-K filed on April 2, 2008.
|
||
10.1*
|
Amended and Restated 1994 Stock Plan and form of Stock Option Agreement.
|
Incorporated by reference to exhibit 4.1 filed with the Registration Statement on Form S-8 (No. 333-86875) filed on September 10, 1999.
|
||
10.2*
|
1994 Director Stock Option Plan and form of Director Option Agreement.
|
Incorporated by reference to exhibit filed with the Registration Statement on Form S-3 (No. 33-74308) filed on January 28, 1994, Amendment No. 1 thereto filed February 24, 1994, Amendment No. 2 thereto filed March 3, 1994, Amendment No. 3 thereto filed March 4, 1994 and Amendment No. 4 thereto filed March 8, 1994.
|
||
10.3*
|
2001 Employee Stock Option Plan.
|
Incorporated by reference to exhibit 4.1 filed with the Registration Statement on Form S-8 (333-64234) filed on June 29, 2001.
|
10.4*
|
2001 Employee Stock Purchase Plan and Form of Subscription Agreement.
|
Incorporated by reference to exhibit 4.2 filed with the Registration Statement on Form S-8 (333-64234) filed on June 29, 2001.
|
10.5
|
Industrial Lease by and between AMB Property, L.P. and Sigma dated February 22, 2007.
|
Incorporated by reference to exhibit 10.15 filed with the Annual Report on Form 10-K for the fiscal year ended February 3, 2007.
|
||
10.6*
|
2003 Director Stock Option Plan.
|
Incorporated by reference to exhibit 99.1 filed with the Registration Statement on Form S-8 filed on July 11, 2003.
|
||
10.7*
|
Sigma Designs Employee Stock Purchase Plan.
|
Incorporated by reference to exhibit 10.1 filed with the Current Report on Form 8-K filed on July 13, 2011.
|
||
10.8*
|
Amended and Restated 2009 Stock Incentive Plan and forms of agreements thereto.
|
Incorporated by reference to exhibit 10.1 filed with the Current Report on Form 8-K filed on July 14, 2011.
|
||
10.9*
|
CopperGate Communications Ltd. 2003 Share Option Plan.
|
Incorporated by reference to exhibit 99.1 filed with the Registration Statement on Form S-8 filed on November 16, 2009.
|
||
10.10
|
Settlement Agreement dated August 2, 2012 by and among Sigma Designs, Inc. and the entities and natural persons listed on Exhibit A thereto and their respective affiliates.
|
Incorporated by reference to exhibit 10.1 filed with the Current Report on Form 8-K filed on August 3, 2012.
|
||
10.11
|
Form of Director and Officer Indemnification Agreement.
|
Incorporated by reference to exhibit 10.2 filed with the Current Report on Form 8-K filed on August 3, 2012.
|
||
21.1
|
Subsidiaries of the Registrant.
|
Filed herewith.
|
||
23.1
|
Consent of Independent Registered Public Accounting Firm (Armanino LLP).
|
Filed herewith.
|
||
24.1
|
Power of Attorney (contained in the signature page to this Annual Report on Form 10-K).
|
Filed herewith.
|
||
31.1
|
Certification of the President and Chief Executive Officer pursuant to Securities Exchange Act Rules 13a-14(a) and 15d-14(a).
|
Filed herewith.
|
||
31.2
|
Certification of the Chief Financial Officer and Secretary pursuant to Securities Exchange Act Rules 13a-14(a) and 15d-14(a).
|
Filed herewith.
|
||
32.1**
|
Certificate of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
Filed herewith.
|
||
32.2**
|
Certificate of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
Filed herewith.
|
||
101.INS***
|
XBRL Instance.
|
|||
101.SCH***
|
XBRL Taxonomy Extension Schema.
|
|||
101.CAL***
|
XBRLTaxonomy Extension Calculation.
|
|||
101.DEF***
|
XBRL Taxonomy Extension Definition.
|
|||
101.LAB***
|
XBRL Taxonomy Extension Labels.
|
|||
101.PRE***
|
XBRL Taxonomy Extension Presentation.
|
*
|
Indicates management contract or compensatory plan or arrangement.
|
**
|
In accordance with Item 601(b)(32)(ii) of Regulation S-K and SEC Release No. 34-47986, the certifications furnished in Exhibits 32.1 and 32.2 hereto are deemed to accompany this Form 10-K and will not be deemed “filed” for purposes of Section 18 of the Exchange Act.
|
***
|
XBRL information is furnished and not filed or a part of a registration statement or prospectus for purposes of sections 11 or 12 of the Securities Act of 1933, as amended, is deemed not filed for purposes of section 18 of the Securities Exchange Act of 1934, as amended, and otherwise is not subject to liability under these sections.
|