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Stockholders' Equity (Tables)
 9 Months Ended
Sep. 28, 2013
Equity [Abstract]  
Summary of Company's Equity Award Activity - Options
The following tables summarize the Company’s equity award activity and related information (in thousands, except per share data):
 
 
Number of
Options
 
Average
Exercise
Price
  Per Share  
 
  Aggregate  
Intrinsic
Value
Outstanding at December 29, 2012
9,008

 
$
7.13

 
$
5,726

Options exercised
(1,988
)
 
$
6.53

 
$
6,848

Options canceled
(417
)
 
$
7.96

 


Outstanding at September 28, 2013
6,603

 
$
7.26

 
$
27,954

Vested and expected to vest as of September 28, 2013
6,592

 
 
 
$
27,916

Exercisable at September 28, 2013
6,187

 
$
7.22

 
$
26,493
Summary of Company's Equity Award Activity - RSUs
 
Number of
Restricted
Stock Units
 
Weighted-
Average
 Grant Date 
Fair Value
Per Share
 
  Aggregate  
Intrinsic
Value
Outstanding at December 29, 2012
6,703

 
$
8.01

 
$
38,873

RSUs granted
3,258

 
$
7.36

 


RSUs released
(2,903
)
 
$
8.27

 
$
23,389

RSUs canceled
(499
)
 
$
7.67

 


Outstanding at September 28, 2013
6,559

 
$
7.60

 
$
74,768

Expected to vest at September 28, 2013
6,375

 


 
$
72,679
Summary of Company's Equity Award Activity - PSUs
 
Number of
Performance
Stock Units
 
Weighted-
Average
 Grant Date 
Fair Value
Per Share
 
  Aggregate  
Intrinsic
Value
Outstanding at December 29, 2012
1,368

 
$
10.53

 
$
7,933

PSUs granted
552

 
$
6.70

 

PSUs released
(684
)
 
$
10.53

 
$
4,284

PSUs canceled
(515
)
 
$
11.31

 

Outstanding at September 28, 2013
721

 
$
7.04

 
$
8,214

Expected to vest at September 28, 2013
490

 

 
$
5,587
Total Stock Based Compensation Cost for Instruments Granted but Not Yet Amortized
The following table presents total stock-based compensation cost for instruments granted but not yet amortized, net of estimated forfeitures, of the Company’s equity compensation plans as of September 28, 2013. These costs are expected to be amortized on a straight-line basis over the following weighted-average periods (in thousands, except for weighted-average period): 
 
Unrecognized
Compensation
Expense, Net
 
Weighted-
Average Period
(in years)
Stock options
1,420

 
1.02
RSUs
32,616

 
2.26
PSUs
2,183

 
1.70
Ranges of Estimated Values of Stock Options and Performance-Based Stock Options Granted
The ranges of estimated values of stock options and performance-based stock options granted, as well as ranges of assumptions used in calculating these values were based on estimates as follows:
 
 
Three Months Ended
 
Nine Months Ended
Employee and Director Stock Options
September 28,     
2013
 
     September 29,     
2012
 
    September 28,     
2013
 
September 29,
2012
Volatility
N/A
 
N/A
 
N/A
 
65% - 68%
Risk-free interest rate
N/A
 
N/A
 
N/A
 
0.7%-1.0%
Expected life
N/A
 
N/A
 
N/A
 
4.0 - 5.3 years
Estimated fair value
N/A
 
N/A
 
N/A
 
$3.75 - $3.76
Stock-based compensation expense (in thousands)
$
665

 
$
2,553

 
$
2,190

 
$
7,121

_________________
N/A
Not applicable because the Company did not grant any options to employees for the periods presented.
Estimated Fair Value of ESPP Shares
The fair value of the ESPP shares was estimated at the date of grant using the following assumptions:
 
 
Three Months Ended
 
Nine Months Ended
Employee Stock Purchase Plan
September 28,    
2013
 
September 29,    
2012
 
September 28,    
2013
 
September 29,    
2012
Volatility
49%
 
54%
 
46% - 49%
 
54% - 57%
Risk-free interest rate
0.10%
 
0.17%
 
0.10% - 0.14%
 
0.16% - 0.17%
Expected life
0.5 years
 
0.5 years
 
0.5 years
 
0.5 years
Estimated fair value
$
3.00

 
$
1.73

 
$1.87 - $3.00
 
$1.73 - $2.63
Stock-based compensation expense (in thousands)
$
777

 
$
895

 
$
2,050

 
$
2,653
Summary of Effects of Stock-Based Compensation on Company's Balance Sheets and Statements of Operations
The following tables summarize the effects of stock-based compensation on the Company’s condensed consolidated balance sheets and statements of operations for the periods presented (in thousands):
 
 
September 28,    
2013
 
December 29,
2012
Stock-based compensation effects in inventory
$
3,656

 
$
4,891

Stock-based compensation effects in deferred inventory cost
$
16

 
$
42

Stock-based compensation effects in fixed assets
$
152

 
$
171

 
 
Three Months Ended
 
Nine Months Ended
 
September 28,    
2013
 
September 29,    
2012
 
September 28,    
2013
 
September 29,    
2012
Stock-based compensation effects in net income (loss) before income taxes
 
 
 
 
 
 
 
Cost of revenue
$
422

 
$
683

 
$
1,382

 
$
1,975

Research and development
2,434

 
3,439

 
8,175

 
10,454

Sales and marketing
1,853

 
2,685

 
5,659

 
7,648

General and administration
1,807

 
2,804

 
4,167

 
7,732

 
6,516

 
9,611

 
19,383

 
27,809

Cost of revenue – amortization from balance sheet (1)
1,127

 
1,706

 
4,419

 
3,875

Total stock-based compensation expense
$
7,643

 
$
11,317

 
$
23,802

 
$
31,684

_________________

(1) 
Stock-based compensation expense deferred to inventory and deferred inventory costs in prior periods and recognized in the current period.