Organization and Summary of Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Revenues by Source

The following table presents revenues by product technology (in thousands):

	Three Months Ended March 31,
	2023		2022
	(As Restated)		(As Restated)
Access Networking Infrastructure	$	58,496	$	67,412
Cloud Software & Services	11,316		4,578
Total	$	69,812	$	71,990

Schedule of Information Revenues by Geographical Concentration

The following table present revenues by geographical concentration (in thousands):

	Three Months Ended March 31,
	2023		2022
	(As Restated)		(As Restated)
Americas	$	24,975	$	22,924
Europe, Middle East, Africa	18,406		16,393
Asia	26,431		32,673
Total	$	69,812	$	71,990

Schedule of Allowances for Doubtful Accounts

Activity under the Company’s allowance for credit losses consists of the following (in thousands):

	Three Months Ended March 31,
	2023		2022
Balance at beginning of period	$	16,184	$	17,735
Charged to expense, net of recoveries	(184)		(752)
Cumulative effect of ASC 326 adoption	—		401
Foreign currency exchange impact	87		(326)
Balance at end of period	$	16,087	$	17,058

Schedule of Error Corrections and Prior Period Adjustments

The following table presents the effect of the restatement on the Company's previously reported unaudited condensed consolidated balance sheet as of March 31, 2023 (in thousands, except par value).

	March 31, 2023
	As Previously Reported		Adjustments			As Restated
Assets
Current assets:
Cash and cash equivalents	$	28,892	$	—		$	28,892
Restricted cash	1,975		—			1,975
Accounts receivable - trade, net	141,029		(34,738)		(a)	106,291
Other receivables	21,518		(766)		(d)	20,752
Inventories	69,722		27,589		(a)(d)	97,311
Contract assets	605		—			605
Prepaid expenses and other current assets	10,689		(281)		(b)	10,408
Total current assets	274,430		(8,196)			266,234
Property, plant and equipment, net	7,135		—			7,135
Right-of-use assets from operating leases	11,971		—			11,971
Goodwill	19,952		(7,358)		(c)	12,594
Intangible assets, net	30,422		—			30,422
Other assets	17,013		—			17,013
Total assets	$	360,923	$	(15,554)		$	345,369
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable - trade	$	107,904	$	—		$	107,904
Short-term debt – bank, trade facilities and secured borrowings	16,746		—			16,746
Current portion of long-term debt	23,660		—			23,660
Contract liabilities	19,476		(2,862)		(a)(c)	16,614
Operating lease liabilities	4,859		—			4,859
Accrued and other liabilities	29,615		(1,970)		(b)	27,645
Total current liabilities	202,260		(4,832)			197,428
Long-term debt	—		—			—
Contract liabilities - non-current	6,636		(52)		(a)	6,584
Operating lease liabilities - non-current	10,499		—			10,499
Pension liabilities	11,060		—			11,060
Other long-term liabilities	2,583		—			2,583
Total liabilities	233,038		(4,884)			228,154
Stockholders’ equity:
Common stock	31		—			31
Additional paid-in capital	276,282		—			276,282
Accumulated other comprehensive loss	(6,462)		(149)		(a)	(6,611)
Accumulated deficit	(141,966)		(10,521)		(a)(b)	(152,487)
Total stockholders’ equity	127,885		(10,670)			117,215
Total liabilities and stockholders’ equity	$	360,923	$	(15,554)		$	345,369

The impact of each error for the corresponding period in the above table is described below:

(a) Error corrections relating to the timing of revenue recognition with respect to certain customer projects.

(b) Tax impact on the error corrections relating to the timing of revenue recognition with respect to certain customer projects.

(c) Error corrections relating to the timing of revenue recognition with respect to ASSIA pre-acquisition customer projects.

(d) Error corrections relating to the classification of certain transactions on the Company's previously reported consolidated balance sheet.

The following table presents the effect of the restatement on the Company's previously reported consolidated balance sheet as of December 31, 2022 (in thousands, except par value).

	December 31, 2022
	As Previously Reported			Adjustments			As Restated
Assets
Current assets:
Cash and cash equivalents	$	34,347		$	—		$	34,347
Restricted cash	3,969			—			3,969
Accounts receivable - trade, net	153,780			(19,309)		(a)(d)	134,471
Other receivables	16,144			—			16,144
Inventories	78,513			15,775		(a)(d)	94,288
Contract assets	576			—			576
Prepaid expenses and other current assets	8,371			(961)		(b)	7,410
Total current assets	295,700			(4,495)			291,205
Property, plant and equipment, net	9,478			—			9,478
Right-of-use assets from operating leases	12,606			—			12,606
Goodwill	19,952			(7,358)		(c)	12,594
Intangible assets, net	31,742			—			31,742
Other assets	15,536			—			15,536
Total assets	$	385,014		$	(11,853)		$	373,161
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable - trade	$	121,225		$	(2,558)	(d)	$	118,667
Short-term debt – bank, trade facilities and secured borrowings	9,706			—			9,706
Current portion of long-term debt	24,073			—			24,073
Contract liabilities	21,777			(3,072)		(a)(c)	18,705
Operating lease liabilities	4,834			—			4,834
Accrued and other liabilities	27,559			(1,997)		(b)	25,562
Total current liabilities	209,174			(7,627)			201,547
Long-term debt	—			—			—
Contract liabilities - non-current	7,864			(76)		(a)	7,788
Operating lease liabilities - non-current	11,417			—			11,417
Pension liabilities	11,021			—			11,021
Other long-term liabilities	2,806			—			2,806
Total liabilities	242,282		242,282	(7,703)			234,579
Stockholders’ equity:
Common stock	30			—			30
Additional paid-in capital	271,884			—			271,884
Accumulated other comprehensive loss	(4,351)			(311)		(a)	(4,662)
Accumulated deficit	(124,831)			(3,839)		(a)(b)	(128,670)
Total stockholders’ equity	142,732			(4,150)			138,582
Total liabilities and stockholders’ equity	$	385,014		$	(11,853)		$	373,161

The impact of each error for the corresponding period in the above table is described below:

(a) Error corrections relating to the timing of revenue recognition with respect to certain customer projects.

(b) Tax impact on the error corrections relating to the timing of revenue recognition with respect to certain customer projects.

(c) Error corrections relating to the timing of revenue recognition with respect to ASSIA pre-acquisition customer projects.

(d) Error corrections relating to the classification of certain transactions on the Company's previously reported consolidated balance sheet.

The following table presents the effect of the restatement on the Company's previously reported unaudited condensed consolidated statement of comprehensive loss for the three months ended March 31, 2023 (in thousands, except per share data).

	Three Months Ended March 31, 2023
	As Previously Reported		Adjustments			As Restated
Net revenue	$	90,812	$	(21,000)	(a)	$	69,812
Cost of revenue	60,985		(13,667)		(a)	47,318
Gross profit	29,827		(7,333)			22,494
Operating expenses:
Research and product development	14,851		—			14,851
Selling, marketing, general and administrative	24,781		—			24,781
Restructuring and other charges	4,152		—			4,152
Amortization of intangible assets	1,271		—			1,271
Total operating expenses	45,055		—			45,055
Operating loss	(15,228)		(7,333)			(22,561)
Interest expense, net	(792)		—			(792)
Other income, net	728		—			728
Loss before income taxes	(15,292)		(7,333)			(22,625)
Income tax provision (benefit)	1,843		(651)		(b)	1,192
Net loss	(17,135)		(6,682)			(23,817)
Foreign currency translation adjustments	(2,051)		162		(a)	(1,889)
Actuarial loss	(60)		—			(60)
Comprehensive loss	$	(19,246)	$	(6,520)		$	(25,766)
Net loss per share
Basic	$	(0.55)	$	(0.22)		$	(0.77)
Diluted	$	(0.55)	$	(0.22)		$	(0.77)
Weighted average shares outstanding
Basic	31,045					31,045
Diluted	31,045					31,045

The impact of each error for the corresponding period in the above table is described below:

(a) Error corrections relating to the timing of revenue recognition with respect to certain customer projects.

(b) Tax impact on the error corrections relating to the timing of revenue recognition with respect to certain customer projects.

The following table presents the effect of the restatement on the Company's previously reported unaudited condensed consolidated statement of comprehensive loss for the three months ended March 31, 2022 (in thousands, except per share data).

	Three Months Ended March 31, 2022
	As Previously Reported		Adjustments			As Restated
Net revenue	$	77,040	$	(5,050)	(a)	$	71,990
Cost of revenue	50,215		(3,616)		(a)	46,599
Gross profit	26,825		(1,434)			25,391
Operating expenses:
Research and product development	11,844		—			11,844
Selling, marketing, general and administrative	17,742		—			17,742
Restructuring and other charges	436		—			436
Amortization of intangible assets	294		—			294
Total operating expenses	30,316		—			30,316
Operating loss	(3,491)		(1,434)			(4,925)
Interest income	37		—			37
Interest expense	(127)		—			(127)
Other expense, net	(800)		—			(800)
Loss before income taxes	(4,381)		(1,434)			(5,815)
Income tax provision (benefit)	(1,333)		3,104		(b)	1,771
Net loss	(3,048)		(4,538)			(7,586)
Foreign currency translation adjustments	(268)		—			(268)
Comprehensive loss	$	(3,316)	$	(4,538)		$	(7,854)
Net loss per share
Basic	$	(0.11)	$	(0.17)		$	(0.28)
Diluted	$	(0.11)	$	(0.17)		$	(0.28)
Weighted average shares outstanding
Basic	27,530					27,530
Diluted	27,530					27,530

The impact of each error for the corresponding period in the above table is described below:

(a) Error corrections relating to the timing of revenue recognition with respect to certain customer projects.

(b) Tax impact on the error corrections relating to the timing of revenue recognition with respect to certain customer projects.

The following table presents the effect of the restatement on the Company's previously reported unaudited condensed consolidated statement of cash flows for the three months ended March 31, 2023 (in thousands).

	Three Months Ended March 31, 2023
	As Previously Reported		Adjustments			As Restated
Cash flows from operating activities:
Net loss	$	(17,135)	$	(6,682)	(a)(b)	$	(23,817)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	2,465		—			2,465
Amortization of deferred financing costs	60		—			60
Stock-based compensation	4,486		—			4,486
Provision for inventory write-down	1,086		—			1,086
Provision for credit losses, net of recoveries	(184)		—			(184)
Provision for sales returns	541		—			541
Provision for warranty	70		—			70
Unrealized loss on foreign currency transactions	1,396		—			1,396
Loss on disposal of property, plant and equipment	40		—			40
Changes in operating assets and liabilities:
Accounts receivable	11,033		15,433		(a)(d)	26,466
Other receivable	(5,511)		(1,938)		(d)	(7,449)
Inventories	7,051		(9,111)		(a)(d)	(2,060)
Contract assets	(29)		—			(29)
Prepaid expenses and other assets	(3,138)		(680)		(b)	(3,818)
Accounts payable	(13,875)		2,559		(d)	(11,316)
Contract liabilities	(3,493)		228		(a)	(3,265)
Accrued and other liabilities	131		28		(b)	159
Net cash used in operating activities	(15,006)		(163)			(15,169)
Cash flows from investing activities:
Proceeds from disposal of property, plant and equipment and other assets	1,790		—			1,790
Purchases of property, plant and equipment	(775)		—			(775)
Net cash provided by investing activities	1,015		—			1,015
Cash flows from financing activities:
Repayments of long-term borrowings	(313)		—			(313)
Proceeds from short-term borrowings and line of credit, net	8,918		—			8,918
Proceeds from related party term loan	4,059		—			4,059
Repayments of related party term loan	(5,845)		—			(5,845)
Payments for debt issue costs	(122)		—			(122)
Proceeds from exercise of stock awards and employee stock plan purchases	(87)		—			(87)
Net cash provided by financing activities	6,610		—			6,610
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(67)		163		(a)	96
Net change in cash, cash equivalents and restricted cash	(7,448)		—			(7,448)
Cash, cash equivalents and restricted cash at beginning of period	38,464		—			38,464
Cash, cash equivalents and restricted cash at end of period	$	31,016	$	—		$	31,016

The impact of each error for the corresponding period in the above table is described below:

(a) Error corrections relating to the timing of revenue recognition with respect to certain customer projects.

(b) Tax impact on the error corrections relating to the timing of revenue recognition with respect to certain customer projects.

(d) Error corrections relating to the classification of certain transactions on the Company's previously reported consolidated balance sheet.

The following table presents the effect of the restatement on the Company's previously reported unaudited condensed consolidated statement of cash flows for the three months ended March 31, 2022 (in thousands).

	Three Months Ended March 31, 2022
	As Previously Reported		Adjustments			As Restated
Cash flows from operating activities:
Net loss	$	(3,048)	$	(4,538)	(a)(b)	$	(7,586)
Adjustments to reconcile net loss to net cash   used in operating activities:
Depreciation and amortization	1,081		—			1,081
Stock-based compensation	2,671		—			2,671
Provision for inventory write-down	705		—			705
Provision for credit losses, net of recoveries	(752)		—			(752)
Provision for sales returns	1,448		—			1,448
Provision for warranty expense	121		—			121
Unrealized loss on foreign currency transactions	874		—			874
Subsidiary dissolution	(68)		—			(68)
Changes in operating assets and liabilities:
Accounts receivable	2,761		3,657		(a)	6,418
Other receivable	126		—			126
Inventories	(10,931)		(3,626)		(a)	(14,557)
Contract assets	1,261		—			1,261
Prepaid expenses and other assets	(7,577)		3,020		(b)	(4,557)
Accounts payable	1,586		—			1,586
Contract liabilities	(1,446)		1,403		(a)	(43)
Accrued and other liabilities	456		84		(b)	540
Net cash used in operating activities	(10,732)		—			(10,732)
Cash flows from investing activities:
Purchases of property, plant and equipment	(1,317)		—			(1,317)
Net cash used in investing activities	(1,317)		—			(1,317)
Cash flows from financing activities:
Payments for debt issue costs	(178)		—			(178)
Proceeds from exercise of stock awards and employee stock plan purchases	156		—			156
Net cash used in financing activities	(22)		—			(22)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(903)		—			(903)
Net increase in cash, cash equivalents and restricted cash	(12,974)		—			(12,974)
Cash, cash equivalents and restricted cash at beginning of period	53,639		—			53,639
Cash, cash equivalents and restricted cash at end of period	$	40,665	$	—		$	40,665

The impact of each error for the corresponding period in the above table is described below:

(a) Error corrections relating to the timing of revenue recognition with respect to certain customer projects.

(b) Tax impact on the error corrections relating to the timing of revenue recognition with respect to certain customer projects.