Consolidated Balance Sheet Components

9 Months Ended

Sep. 30, 2012

Consolidated Balance Sheet Components [Abstract]

Consolidated balance sheet components

3. Consolidated balance sheet components

Inventories

Inventories as of September 30, 2012 and December 31, 2011 consisted of the following:

	September 30, 2012		December 31, 2011
	(in thousands)
Work in progress	$	3,772	$	8,684
Finished goods		7,766		11,558
Total inventory	$	11,538	$	20,242

Property and equipment

Property and equipment, net as of September 30, 2012 and December 31, 2011 consisted of the following:

	September 30, 2012			December 31, 2011
	(in thousands)
Computers and equipment	$	2,337		$	1,640
Machinery and equipment		3,012			1,414
Software		727			581
Furniture and fixtures		442			401
Leasehold improvements		1,120			431
Construction in progress		1,139			—
Gross property and equipment		8,777			4,467
Accumulated depreciation and amortization		(3,268	)		(2,230	)
Property and equipment, net	$	5,509		$	2,237

On June 5, 2012, we entered into a lease agreement for our future headquarters, which will consist of 87,565 rentable square feet in Mountain View, California. The facility is in the process of being constructed. Pursuant to the lease agreement, we agreed to pay construction cost in excess of a certain amount and we have certain indemnification obligations related to the construction. As a result of our involvement during construction period, we are considered to be the owner of the construction project during the construction period in accordance with accounting for the effect of lessee involvement in asset construction. As of September 30, 2012, we capitalized $1.1 million of assets as construction in progress, based on the construction costs incurred by the landlord. Upon execution of the lease agreement, we reimbursed the landlord $0.5 million for the construction cost in the form of a security deposit, and as a result, our corresponding liability of $0.6 million was reflected as a financing obligation for construction in progress.

Depreciation and amortization expense for the three and nine months ended September 30, 2012 was $423,000 and $1.1 million, respectively. Depreciation and amortization expense for the three and nine months ended September 30, 2011 was $226,000 and $586,000, respectively.

Accrued and other current liabilities

Accrued and other current liabilities as of September 30, 2012 and December 31, 2011 consisted of the following:

	September 30, 2012		December 31, 2011
	(in thousands)
Compensation	$	4,064	$	2,171
Professional fees		959		909
Royalties		352		490
Tenant improvements		39		63
Accrued engineering costs		240		496
Other		1,781		276
Accrued and other current liabilities	$	7,435	$	4,405