Balance Sheet Details

3 Months Ended

Apr. 02, 2022

Balance Sheet Related Disclosures [Abstract]

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


	April 2, 2022		December 31, 2021
Accounts receivable	$	88,663	$	85,944
Allowance for doubtful accounts	(711)		(725)
	$	87,952	$	85,219

Inventory consisted of the following (in thousands):


	April 2, 2022		December 31, 2021
Raw materials	$	323	$	130
Finished goods	104,693		88,750
	$	105,016	$	88,880

Property and equipment, net consisted of the following (in thousands):


	April 2, 2022		December 31, 2021
Test equipment	$	41,093	$	39,476
Computer equipment	10,735		11,156
Software	9,264		9,013
Furniture and fixtures	1,526		1,812
Leasehold improvements	1,401		1,351
Total	64,019		62,808
Accumulated depreciation and amortization	(41,712)		(41,025)
	$	22,307	$	21,783

Other long-term assets consisted of the following (in thousands):


	April 2, 2022		December 31, 2021
Intangible asset	$	6,227	$	6,885
Other long-term assets	9,834		6,800
	$	16,061	$	13,685

Intangible Asset Acquisition

In March 2018, and as amended in December 2020, the Company entered into an agreement with a vendor to develop a certain software product and related enhancements pursuant to which the Company is obligated to make revenue-share payments under the program, subject to aggregate fixed revenue-share payments of $15.8 million. The payments are based on a revenue-share rate applied to revenue from the developed-product and the corresponding hardware sales through March 2024. If the minimum revenue-share payments are not achieved by the end of that period, a true-up payment will be due. The Company had its first sale in August 2019, and as a result, the Company capitalized an intangible asset with a value of $13.2 million in the third quarter of 2019 and also recognized a liability of $13.2 million (a non-cash investing activity). The intangible asset has an estimated five-year useful life and is being amortized using the greater of the ratio of current gross revenue for the products to the total of current and anticipated future gross revenue for the products or the straight-line method. As of April 2, 2022, the liability, including accrued interest, was $13.3 million of which $6.6 million is included in “Accrued liabilities” and $6.7 million in “Other long-term liabilities” in the accompanying Condensed Consolidated Balance Sheet. As of December 31, 2021, the liability, including accrued interest, was $13.2 million of which $4.7 million was included in “Accrued liabilities” and $8.5 million in other “Other long-term liabilities.”

Accrued liabilities consisted of the following (in thousands):


	April 2, 2022		December 31, 2021
Compensation and related benefits	$	15,979	$	23,165
Component inventory held by suppliers	8,360		7,611
Current portion of warranty and retrofit	7,337		7,076
Customer advances or rebates	6,979		4,742
Current portion of revenue share payments	6,580		4,731
Professional and consulting fees	5,654		4,819
Taxes payable	5,115		4,251
Freight	4,548		3,997
Operating leases	3,761		3,596
Product returns	2,186		1,836
Operations	1,213		1,400
Other	4,052		4,373
	$	71,764	$	71,597

Changes in the Company’s accrued warranty and retrofit liability were as follows (in thousands):


	Three Months Ended
	April 2, 2022		April 3, 2021
Balance at beginning of period	$	9,594	$	9,208
Provision for warranty and retrofit charged to cost of revenue	527		1,202
Utilization of reserve	(551)		(760)

Balance at end of period	$	9,570	$	9,650