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Balance Sheet Components (Tables)
3 Months Ended
Mar. 31, 2013
Accounts Receivable, Net

Accounts receivable, net consists of the following (in thousands):

 

 

  

March 31, 
2013

 

 

December 31, 
2012

 

Accounts receivable

 

$

58,878

 

 

$

66,338

 

Trade notes receivable

 

 

5,375

 

 

 

4,979

 

Allowance for doubtful accounts

 

 

(986

)

 

 

(963

)

 

 

$

63,267

 

 

$

70,354

 

 

Inventories

Inventories consist of the following (in thousands):

 

 

  

March 31, 
2013

 

  

December 31, 
2012

 

Raw materials

 

$

26,332

 

 

$

20,520

 

Work in process

 

 

20,560

 

 

 

8,603

 

Finished goods (1)

 

 

14,967

 

 

 

14,670

 

 

 

$

61,859

 

 

$

43,793

 

 

(1)

Finished goods inventory at offsite managed inventory locations was $4.8 million and $4.5 million as of March 31, 2013 and December 31, 2012, respectively.

 

Purchased Intangible Assets

Purchased intangible assets consist of the following (in thousands):

 

 

  

March 31, 2013    

 

  

December 31, 2012

 

 

  

Gross
Assets

 

  

Accumulated
Amortization

 

 

Net
Assets

 

  

Gross
Assets

 

  

Accumulated
Amortization

 

 

Net
Assets

 

Technology and patents

 

$

34,295

 

 

$

(23,405

)

 

$

10,890

 

 

$

32,176

 

 

$

(22,869

)

 

$

9,307

 

Customer relationships

 

 

15,128

 

 

 

(8,392

)

 

 

6,736

 

 

 

11,898

 

 

 

(8,148

)

 

 

3,750

 

Leasehold interest

 

 

1,358

 

 

 

(234

)

 

 

1,124

 

 

 

1,355

 

 

 

(241

)

 

 

1,114

 

Noncompete agreements

 

 

950

 

 

 

(934

)

 

 

16

 

 

 

950

 

 

 

(908

)

 

 

42

 

 

 

$

51,731

 

 

$

(32,965

)

 

$

18,766

 

 

$

46,379

 

 

$

(32,166

)

 

$

14,213

 

 

Amortization Expense of Purchased Intangible Assets

Amortization expense relating to technology and patents and the leasehold interest intangible assets is included within cost of goods sold, and customer relationships and the noncompete agreements within operating expenses. The following table presents details of the amortization expense of the Company’s purchased intangible assets as reported in the condensed consolidated statements of operations (in thousands):

 

 

  

Three months ended
March 31,

 

 

  

2013

 

  

2012

 

Cost of goods sold

  

$

428

  

  

$

598

  

Operating expenses

  

 

321

  

  

 

354

  

Total

  

$

749

  

  

$

952

  

 

Estimated Future Amortization Expense of Purchased Intangible Assets

The estimated future amortization expense of purchased intangible assets as of March 31, 2013, is as follows (in thousands):

 

2013 (remaining 9 months)

  

$

3,617

  

2014

  

 

4,505

  

2015

  

 

4,490

  

2016

  

 

3,743

  

2017

  

 

814

  

Thereafter

  

 

1,597

  

 

  

$

18,766

  

 

Accrued Expenses and Other Current Liabilities

Accrued and other current liabilities consist of the following (in thousands):

 

 

  

March 31, 
2013
    

 

  

December 31, 
2012

 

Employee-related

  

$

9,731

  

  

$

12,293

  

Other

  

 

15,143

  

  

 

7,666

  

 

  

$

24,874

  

  

$

19,959

  

 

Summary of Movement in Warranty Accrual

The table below summarizes the movement in the warranty accrual (in thousands):

 

 

  

Three months ended
March 31,

 

 

  

2013

 

 

2012

 

Beginning balance

 

$

1,072

 

 

$

1,443

 

Warranty accruals

 

 

26

 

 

 

19

 

Settlements and adjustments

 

 

86

 

 

 

(247

)

Ending balance

 

$

1,184

 

 

$

1,215

 

 

Other Noncurrent Liabilities

Other noncurrent liabilities consist of the following (in thousands):

 

 

 

March 31,
2013
    

 

 

December 31,
2012

 

Employee-related

 

$

6,712

 

 

$

188

 

Penalty payment derivative (Note 11)

 

 

138

 

 

 

138

 

Other

 

 

1,297

 

 

 

1,536

 

      

 

$

8,147

 

 

$

1,862