x | Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
For the quarterly period ended June 30, 2018 |
o | Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
For the transition period from ______ to ______ |
DELAWARE | 94-3065014 | |
(State or other jurisdiction of Incorporation or organization) | (I.R.S. Employer Identification No.) |
Large accelerated filer x | Accelerated filer o | |
Non-accelerated filer o (Do not check if a smaller reporting company) | Smaller reporting company o | |
Emerging growth company o |
Class | Shares Outstanding at July 16, 2018 |
Common Stock, $0.001 par value | 29,407,488 |
Page | ||
Item 1. | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
Item 1. | ||
Item 1A. | ||
Item 2. | ||
Item 6. | ||
(In thousands) | June 30, 2018 | December 31, 2017 | |||||
ASSETS | |||||||
CURRENT ASSETS: | |||||||
Cash and cash equivalents | $ | 148,187 | $ | 93,655 | |||
Short-term marketable securities | 98,494 | 189,236 | |||||
Accounts receivable, net of allowances for doubtful accounts of $751 and $734 in 2018 and 2017, respectively | 6,843 | 16,798 | |||||
Inventories | 68,824 | 57,087 | |||||
Prepaid expenses and other current assets | 10,619 | 7,758 | |||||
Total current assets | 332,967 | 364,534 | |||||
PROPERTY AND EQUIPMENT, net | 111,063 | 111,705 | |||||
INTANGIBLE ASSETS, net | 23,751 | 25,419 | |||||
GOODWILL | 91,849 | 91,849 | |||||
DEFERRED TAX ASSETS | 3,181 | 2,364 | |||||
OTHER ASSETS | 25,216 | 25,203 | |||||
Total assets | $ | 588,027 | $ | 621,074 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
CURRENT LIABILITIES: | |||||||
Accounts payable | $ | 26,518 | $ | 33,211 | |||
Accrued payroll and related expenses | 12,053 | 12,064 | |||||
Taxes payable | 1,254 | 1,767 | |||||
Other accrued liabilities | 4,588 | 4,009 | |||||
Total current liabilities | 44,413 | 51,051 | |||||
LONG-TERM INCOME TAXES PAYABLE | 17,635 | 18,259 | |||||
DEFERRED TAX LIABILITIES | 55 | 138 | |||||
OTHER LIABILITIES | 4,095 | 3,944 | |||||
Total liabilities | 66,198 | 73,392 | |||||
COMMITMENTS AND CONTINGENCIES (Notes 11, 12 and 13) | |||||||
STOCKHOLDERS’ EQUITY: | |||||||
Common stock | 28 | 29 | |||||
Additional paid-in capital | 152,380 | 198,384 | |||||
Accumulated other comprehensive loss | (2,088 | ) | (2,139 | ) | |||
Retained earnings | 371,509 | 351,408 | |||||
Total stockholders’ equity | 521,829 | 547,682 | |||||
Total liabilities and stockholders’ equity | $ | 588,027 | $ | 621,074 |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
(In thousands, except per share amounts) | 2018 | 2017 | 2018 | 2017 | |||||||||||
NET REVENUES | $ | 109,482 | $ | 107,563 | $ | 212,563 | $ | 212,251 | |||||||
COST OF REVENUES | 53,248 | 54,116 | 102,785 | 108,328 | |||||||||||
GROSS PROFIT | 56,234 | 53,447 | 109,778 | 103,923 | |||||||||||
OPERATING EXPENSES: | |||||||||||||||
Research and development | 17,898 | 17,341 | 35,379 | 33,981 | |||||||||||
Sales and marketing | 13,497 | 13,144 | 26,585 | 25,360 | |||||||||||
General and administrative | 9,220 | 8,765 | 18,234 | 17,469 | |||||||||||
Total operating expenses | 40,615 | 39,250 | 80,198 | 76,810 | |||||||||||
INCOME FROM OPERATIONS | 15,619 | 14,197 | 29,580 | 27,113 | |||||||||||
OTHER INCOME | 885 | 465 | 1,721 | 971 | |||||||||||
INCOME BEFORE INCOME TAXES | 16,504 | 14,662 | 31,301 | 28,084 | |||||||||||
PROVISION FOR INCOME TAXES | 1,123 | 760 | 1,720 | 83 | |||||||||||
NET INCOME | $ | 15,381 | $ | 13,902 | $ | 29,581 | $ | 28,001 | |||||||
EARNINGS PER SHARE: | |||||||||||||||
Basic | $ | 0.52 | $ | 0.47 | $ | 1.00 | $ | 0.95 | |||||||
Diluted | $ | 0.51 | $ | 0.46 | $ | 0.97 | $ | 0.92 | |||||||
SHARES USED IN PER SHARE CALCULATION: | |||||||||||||||
Basic | 29,505 | 29,720 | 29,651 | 29,589 | |||||||||||
Diluted | 30,183 | 30,454 | 30,387 | 30,370 |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
(In thousands) | 2018 | 2017 | 2018 | 2017 | |||||||||||
NET INCOME | $ | 15,381 | $ | 13,902 | $ | 29,581 | $ | 28,001 | |||||||
Other comprehensive income, net of tax: | |||||||||||||||
Foreign currency translation adjustments, net of $0 tax in each of the three and six months ended June 30, 2018 and 2017 | 37 | 31 | — | 95 | |||||||||||
Unrealized gain (loss) on marketable securities, net of $0 tax in each of the three and six months ended June 30, 2018 and 2017 | 226 | 15 | (12 | ) | 98 | ||||||||||
Amortization of defined benefit pension items, net of tax of $9 and $18 in the three and six months ended June 30, 2018, respectively, and $14 and $27 in the three and six months ended June 30, 2017, respectively | 31 | 49 | 63 | 98 | |||||||||||
Total other comprehensive income | 294 | 95 | 51 | 291 | |||||||||||
TOTAL COMPREHENSIVE INCOME | $ | 15,675 | $ | 13,997 | $ | 29,632 | $ | 28,292 |
Six Months Ended | |||||||
June 30, | |||||||
(In thousands) | 2018 | 2017 | |||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||
Net income | $ | 29,581 | $ | 28,001 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation | 9,691 | 8,469 | |||||
Amortization of intangibles | 2,668 | 3,178 | |||||
Loss on disposal of property and equipment | 60 | 38 | |||||
Stock-based compensation expense | 11,740 | 11,296 | |||||
Amortization of premium on marketable securities | 376 | 508 | |||||
Deferred income taxes | (900 | ) | (648 | ) | |||
Increase in accounts receivable allowances | 17 | 80 | |||||
Change in operating assets and liabilities: | |||||||
Accounts receivable | 9,938 | (12,249 | ) | ||||
Inventories | (11,737 | ) | 132 | ||||
Prepaid expenses and other assets | (1,388 | ) | (8,349 | ) | |||
Accounts payable | (7,276 | ) | (3,629 | ) | |||
Taxes payable and accrued liabilities | (344 | ) | 3,208 | ||||
Net cash provided by operating activities | 42,426 | 30,035 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
Purchases of property and equipment | (10,513 | ) | (22,876 | ) | |||
Acquisition of technology licenses | (500 | ) | — | ||||
Purchases of marketable securities | — | (111,574 | ) | ||||
Proceeds from sales and maturities of marketable securities | 90,353 | 78,140 | |||||
Net cash provided by (used in) investing activities | 79,340 | (56,310 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
Issuance of common stock under employee stock plans | 5,635 | 5,089 | |||||
Repurchase of common stock | (63,389 | ) | — | ||||
Payments of dividends to stockholders | (9,480 | ) | (8,299 | ) | |||
Proceeds from draw on line of credit | 8,000 | — | |||||
Payments on line of credit | (8,000 | ) | — | ||||
Net cash used in financing activities | (67,234 | ) | (3,210 | ) | |||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 54,532 | (29,485 | ) | ||||
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 93,655 | 62,134 | |||||
CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ | 148,187 | $ | 32,649 | |||
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES: | |||||||
Unpaid property and equipment | $ | 4,996 | $ | 5,851 | |||
Unpaid technology licenses | $ | 500 | $ | — | |||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | |||||||
Cash paid (refund) for income taxes, net | $ | 4,178 | $ | (1,775 | ) |
(In thousands) | June 30, 2018 | December 31, 2017 | |||||
Accounts receivable trade | $ | 55,128 | $ | 58,718 | |||
Allowances for ship and debit | (44,660 | ) | (39,486 | ) | |||
Allowances for stock rotation and rebate | (2,874 | ) | (1,700 | ) | |||
Allowances for doubtful accounts | (751 | ) | (734 | ) | |||
Total | $ | 6,843 | $ | 16,798 |
(In thousands) | June 30, 2018 | December 31, 2017 | |||||
Raw materials | $ | 25,421 | $ | 15,517 | |||
Work-in-process | 15,403 | 16,765 | |||||
Finished goods | 28,000 | 24,805 | |||||
Total | $ | 68,824 | $ | 57,087 |
(In thousands) | June 30, 2018 | December 31, 2017 | |||||
Prepaid legal fees | $ | 151 | $ | 213 | |||
Prepaid income tax | 864 | 460 | |||||
Prepaid maintenance agreements | 1,695 | 856 | |||||
Interest receivable | 690 | 1,195 | |||||
Advance to suppliers | 2,546 | 1,211 | |||||
Other | 4,673 | 3,823 | |||||
Total | $ | 10,619 | $ | 7,758 |
June 30, 2018 | December 31, 2017 | ||||||||||||||||||||||
(In thousands) | Gross | Accumulated Amortization | Net | Gross | Accumulated Amortization | Net | |||||||||||||||||
Domain name | $ | 1,261 | $ | — | $ | 1,261 | $ | 1,261 | $ | — | $ | 1,261 | |||||||||||
In-process research and development | 4,690 | — | 4,690 | 4,690 | — | 4,690 | |||||||||||||||||
Developed technology | 33,270 | (20,838 | ) | 12,432 | 33,270 | (19,211 | ) | 14,059 | |||||||||||||||
Customer relationships | 20,030 | (15,610 | ) | 4,420 | 20,030 | (14,621 | ) | 5,409 | |||||||||||||||
Technology licenses | 1,000 | (52 | ) | 948 | — | — | — | ||||||||||||||||
In-place leases | — | — | — | 660 | (660 | ) | — | ||||||||||||||||
Total | $ | 60,251 | $ | (36,500 | ) | $ | 23,751 | $ | 59,911 | $ | (34,492 | ) | $ | 25,419 |
Fiscal Year | Estimated Amortization (In thousands) | ||
2018 (remaining six months) | $ | 2,599 | |
2019 | 4,878 | ||
2020 | 3,653 | ||
2021 | 2,787 | ||
2022 | 1,709 | ||
Thereafter | 2,174 | ||
Total (1) | $ | 17,800 |
(1) | The total above excludes $4.7 million of in-process research and development that will be amortized, upon completion of development, over the estimated useful life of the technology. |
Unrealized Gains and Losses on Marketable Securities | Defined Benefit Pension Items | Foreign Currency Items | Total | ||||||||||||||||||||||||||||
Three Months Ended | Three Months Ended | Three Months Ended | Three Months Ended | ||||||||||||||||||||||||||||
June 30, | June 30, | June 30, | June 30, | ||||||||||||||||||||||||||||
(In thousands) | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | |||||||||||||||||||||||
Beginning balance | $ | (665 | ) | $ | (137 | ) | $ | (1,205 | ) | $ | (1,887 | ) | $ | (512 | ) | $ | (490 | ) | $ | (2,382 | ) | $ | (2,514 | ) | |||||||
Other comprehensive income before reclassifications | 226 | 15 | — | — | 37 | 31 | 263 | 46 | |||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive loss | — | — | 31 | (1) | 49 | (1) | — | — | 31 | 49 | |||||||||||||||||||||
Net-current period other comprehensive income | 226 | 15 | 31 | 49 | 37 | 31 | 294 | 95 | |||||||||||||||||||||||
Ending balance | $ | (439 | ) | $ | (122 | ) | $ | (1,174 | ) | $ | (1,838 | ) | $ | (475 | ) | $ | (459 | ) | $ | (2,088 | ) | $ | (2,419 | ) |
(1) | This component of accumulated other comprehensive income (loss) is included in the computation of net periodic pension cost for the three months ended June 30, 2018 and 2017. |
Unrealized Gains and Losses on Marketable Securities | Defined Benefit Pension Items | Foreign Currency Items | Total | ||||||||||||||||||||||||||||
Six Months Ended | Six Months Ended | Six Months Ended | Six Months Ended | ||||||||||||||||||||||||||||
June 30, | June 30, | June 30, | June 30, | ||||||||||||||||||||||||||||
(In thousands) | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | |||||||||||||||||||||||
Beginning balance | $ | (427 | ) | $ | (220 | ) | $ | (1,237 | ) | $ | (1,936 | ) | $ | (475 | ) | $ | (554 | ) | $ | (2,139 | ) | $ | (2,710 | ) | |||||||
Other comprehensive income (loss) before reclassifications | (12 | ) | 98 | — | — | — | 95 | (12 | ) | 193 | |||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive loss | — | — | 63 | (1) | 98 | (1) | — | — | 63 | 98 | |||||||||||||||||||||
Net-current period other comprehensive income (loss) | (12 | ) | 98 | 63 | 98 | — | 95 | 51 | 291 | ||||||||||||||||||||||
Ending balance | $ | (439 | ) | $ | (122 | ) | $ | (1,174 | ) | $ | (1,838 | ) | $ | (475 | ) | $ | (459 | ) | $ | (2,088 | ) | $ | (2,419 | ) |
(1) | This component of accumulated other comprehensive income (loss) is included in the computation of net periodic pension cost for the six months ended June 30, 2018 and 2017. |
Fair Value Measurement at | |||||||||||
June 30, 2018 | |||||||||||
(In thousands) | Total Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | ||||||||
Corporate securities | $ | 89,265 | $ | — | $ | 89,265 | |||||
Commercial paper | 128,809 | — | 128,809 | ||||||||
Government securities | 9,229 | — | 9,229 | ||||||||
Money market funds | 467 | 467 | — | ||||||||
Total | $ | 227,770 | $ | 467 | $ | 227,303 |
Fair Value Measurement at | |||||||||||
December 31, 2017 | |||||||||||
(In thousands) | Total Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | ||||||||
Corporate securities | $ | 179,951 | $ | — | $ | 179,951 | |||||
Commercial paper | 51,122 | — | 51,122 | ||||||||
Government securities | 9,285 | — | 9,285 | ||||||||
Money market funds | 195 | 195 | — | ||||||||
Total | $ | 240,553 | $ | 195 | $ | 240,358 |
Amortized Cost | Gross Unrealized | Estimated Fair Market Value | |||||||||||||
(In thousands) | Gains | Losses | |||||||||||||
Investments due in 3 months or less: | |||||||||||||||
Government securities | $ | 9,234 | $ | — | $ | (5 | ) | $ | 9,229 | ||||||
Corporate securities | 47,926 | — | (58 | ) | 47,868 | ||||||||||
Total | 57,160 | — | (63 | ) | 57,097 | ||||||||||
Investments due in 4-12 months: | |||||||||||||||
Corporate securities | 21,981 | — | (133 | ) | 21,848 | ||||||||||
Total | 21,981 | — | (133 | ) | 21,848 | ||||||||||
Investments due in 12 months or greater: | |||||||||||||||
Corporate securities | 19,792 | — | (243 | ) | 19,549 | ||||||||||
Total | 19,792 | — | (243 | ) | 19,549 | ||||||||||
Total marketable securities | $ | 98,933 | $ | — | $ | (439 | ) | $ | 98,494 |
Amortized Cost | Gross Unrealized | Estimated Fair Market Value | |||||||||||||
(In thousands) | Gains | Losses | |||||||||||||
Investments due in 3 months or less: | |||||||||||||||
Corporate securities | $ | 38,485 | $ | — | $ | (16 | ) | $ | 38,469 | ||||||
Total | 38,485 | — | (16 | ) | 38,469 | ||||||||||
Investments due in 4-12 months: | |||||||||||||||
Corporate securities | 104,440 | — | (199 | ) | 104,241 | ||||||||||
Government securities | 9,302 | — | (17 | ) | 9,285 | ||||||||||
Total | 113,742 | — | (216 | ) | 113,526 | ||||||||||
Investments due in 12 months or greater: | |||||||||||||||
Corporate securities | 37,436 | — | (195 | ) | 37,241 | ||||||||||
Total | 37,436 | — | (195 | ) | 37,241 | ||||||||||
Total marketable securities | $ | 189,663 | $ | — | $ | (427 | ) | $ | 189,236 |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
(In thousands) | 2018 | 2017 | 2018 | 2017 | |||||||||||
Cost of revenues | $ | 292 | $ | 351 | $ | 541 | $ | 494 | |||||||
Research and development | 2,271 | 2,351 | 4,110 | 3,985 | |||||||||||
Sales and marketing | 1,126 | 1,189 | 2,402 | 2,286 | |||||||||||
General and administrative | 2,426 | 2,436 | 4,687 | 4,531 | |||||||||||
Total stock-based compensation expense | $ | 6,115 | $ | 6,327 | $ | 11,740 | $ | 11,296 |
Shares (In thousands) | Weighted- Average Exercise Price | Weighted-Average Remaining Contractual Term (In years) | Aggregate Intrinsic Value (In thousands) | |||||||||
Outstanding at January 1, 2018 | 511 | $ | 29.03 | |||||||||
Granted | — | — | ||||||||||
Exercised | (126 | ) | $ | 23.29 | ||||||||
Forfeited or expired | — | — | ||||||||||
Outstanding at June 30, 2018 | 385 | $ | 30.92 | 1.87 | $ | 16,220 | ||||||
Vested and exercisable at June 30, 2018 | 385 | 1.87 | $ | 16,220 |
Shares (In thousands) | Weighted- Average Grant Date Fair Value Per Share | Weighted-Average Remaining Contractual Term (In years) | Aggregate Intrinsic Value (In thousands) | |||||||||
Outstanding at January 1, 2018 | 79 | $ | 63.99 | |||||||||
Granted | 88 | $ | 62.82 | |||||||||
Vested | (79 | ) | $ | 63.99 | ||||||||
Forfeited | — | — | ||||||||||
Outstanding at June 30, 2018 | 88 | $ | 62.82 | 0.50 | $ | 6,458 | ||||||
Outstanding and expected to vest at June 30, 2018 | 47 | 0.50 | $ | 3,398 |
Shares (In thousands) | Weighted- Average Grant Date Fair Value Per Share | Weighted-Average Remaining Contractual Term (In years) | Aggregate Intrinsic Value (In thousands) | |||||||||
Outstanding at January 1, 2018 | 184 | $ | 52.80 | |||||||||
Granted | 72 | $ | 59.90 | |||||||||
Vested | (38 | ) | $ | 52.45 | ||||||||
Forfeited | — | — | ||||||||||
Outstanding at June 30, 2018 | 218 | $ | 55.20 | 1.49 | $ | 15,896 | ||||||
Outstanding and expected to vest at June 30, 2018 | 214 | 1.45 | $ | 15,637 |
Shares (In thousands) | Weighted- Average Grant Date Fair Value Per Share | Weighted-Average Remaining Contractual Term (In years) | Aggregate Intrinsic Value (In thousands) | |||||||||
Outstanding at January 1, 2018 | 948 | $ | 55.51 | |||||||||
Granted | 251 | $ | 62.31 | |||||||||
Vested | (282 | ) | $ | 53.80 | ||||||||
Forfeited | (16 | ) | $ | 58.66 | ||||||||
Outstanding at June 30, 2018 | 901 | $ | 57.88 | 2.23 | $ | 65,818 | ||||||
Outstanding and expected to vest at June 30, 2018 | 815 | 2.11 | $ | 59,552 |
Three Months Ended | Six Months Ended | ||||||||||
June 30, | June 30, | ||||||||||
Customer | 2018 | 2017 | 2018 | 2017 | |||||||
Avnet | 14 | % | 16 | % | 15 | % | 17 | % |
Customer | June 30, 2018 | December 31, 2017 | |||
Avnet | 21 | % | 18 | % |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
(In thousands) | 2018 | 2017 | 2018 | 2017 | |||||||||||
United States of America | $ | 3,729 | $ | 4,474 | $ | 7,596 | $ | 8,303 | |||||||
Hong Kong/China | 58,614 | 56,547 | 109,971 | 111,392 | |||||||||||
Taiwan | 12,914 | 10,762 | 24,800 | 23,796 | |||||||||||
Korea | 8,229 | 9,678 | 17,878 | 19,184 | |||||||||||
Western Europe (excluding Germany) | 11,476 | 12,751 | 25,068 | 24,722 | |||||||||||
Japan | 5,647 | 5,837 | 10,198 | 10,485 | |||||||||||
Germany | 3,705 | 2,915 | 7,009 | 5,711 | |||||||||||
Other | 5,168 | 4,599 | 10,043 | 8,658 | |||||||||||
Total net revenues | $ | 109,482 | $ | 107,563 | $ | 212,563 | $ | 212,251 |
Three Months Ended | Six Months Ended | ||||||||||||||
(In thousands, except per share amounts) | June 30, 2018 | June 30, 2017 | June 30, 2018 | June 30, 2017 | |||||||||||
Dividends declared and paid | $ | 4,705 | $ | 4,162 | $ | 9,480 | $ | 8,299 | |||||||
Dividends declared and paid per common share | $ | 0.16 | $ | 0.14 | $ | 0.32 | $ | 0.28 |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
(In thousands, except per share amounts) | 2018 | 2017 | 2018 | 2017 | |||||||||||
Basic earnings per share: | |||||||||||||||
Net income | $ | 15,381 | $ | 13,902 | $ | 29,581 | $ | 28,001 | |||||||
Weighted-average common shares | 29,505 | 29,720 | 29,651 | 29,589 | |||||||||||
Basic earnings per share | $ | 0.52 | $ | 0.47 | $ | 1.00 | $ | 0.95 | |||||||
Diluted earnings per share: (1) | |||||||||||||||
Net income | $ | 15,381 | $ | 13,902 | $ | 29,581 | $ | 28,001 | |||||||
Weighted-average common shares | 29,505 | 29,720 | 29,651 | 29,589 | |||||||||||
Effect of dilutive awards: | |||||||||||||||
Employee stock plans | 678 | 734 | 736 | 781 | |||||||||||
Diluted weighted-average common shares | 30,183 | 30,454 | 30,387 | 30,370 | |||||||||||
Diluted earnings per share | $ | 0.51 | $ | 0.46 | $ | 0.97 | $ | 0.92 |
(1) | The Company includes the shares underlying performance-based awards in the calculation of diluted earnings per share if the performance conditions have been satisfied as of the end of the reporting period and excludes such shares when the necessary conditions have not been met. The Company has excluded the shares underlying the outstanding performance-based awards in the 2018 and 2017 calculations as the shares were not contingently issuable as of the end of the reporting periods. |
• | Increase our penetration of the markets we serve. We currently address AC-DC power-supply applications with power outputs up to approximately 500 watts, and gate-driver applications of ten kilowatts and higher. Through our R&D efforts, we seek to introduce more advanced products for this market that offer higher levels of integration and performance compared to earlier products. We also continue to expand our sales and application-engineering staff and our network of distributors, as well as our offerings of technical documentation and design-support tools and services to help customers use our products. These tools and services include our PI Expert™ design software, which we offer free of charge, and our transformer-sample service. |
• | Increase the size of our addressable market. Prior to 2010 our addressable market consisted of AC-DC applications with up to about 50 watts of output, a served available market (“SAM”) opportunity of approximately $1.5 billion. Since that time we have expanded our SAM to approximately $3 billion through a variety of means. These include |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||
Net revenues | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | |||
Cost of revenues | 48.6 | 50.3 | 48.4 | 51.0 | |||||||
Gross profit | 51.4 | 49.7 | 51.6 | 49.0 | |||||||
Operating expenses: | |||||||||||
Research and development | 16.4 | 16.1 | 16.6 | 16.0 | |||||||
Sales and marketing | 12.3 | 12.2 | 12.5 | 11.9 | |||||||
General and administrative | 8.4 | 8.2 | 8.6 | 8.2 | |||||||
Total operating expenses | 37.1 | 36.5 | 37.7 | 36.1 | |||||||
Income from operations | 14.3 | 13.2 | 13.9 | 12.9 | |||||||
Other income | 0.8 | 0.4 | 0.8 | 0.5 | |||||||
Income before income taxes | 15.1 | 13.6 | 14.7 | 13.4 | |||||||
Provision for income taxes | 1.1 | 0.7 | 0.8 | — | |||||||
Net income | 14.0 | % | 12.9 | % | 13.9 | % | 13.4 | % |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||
End Market | 2018 | 2017 | 2018 | 2017 | |||||||
Communications | 20 | % | 22 | % | 20 | % | 25 | % | |||
Computer | 5 | % | 4 | % | 5 | % | 4 | % | |||
Consumer | 40 | % | 41 | % | 40 | % | 39 | % | |||
Industrial | 35 | % | 33 | % | 35 | % | 32 | % |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||
Customer | 2018 | 2017 | 2018 | 2017 | |||||||
Avnet | 14 | % | 16 | % | 15 | % | 17 | % |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
(dollars in millions) | 2018 | 2017 | 2018 | 2017 | |||||||||||
Net revenues | $ | 109.5 | $ | 107.6 | $ | 212.6 | $ | 212.3 | |||||||
Gross profit | $ | 56.2 | $ | 53.4 | $ | 109.8 | $ | 103.9 | |||||||
Gross margin | 51.4 | % | 49.7 | % | 51.6 | % | 49.0 | % |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
(dollars in millions) | 2018 | 2017 | 2018 | 2017 | |||||||||||
Net revenues | $ | 109.5 | $ | 107.6 | $ | 212.6 | $ | 212.3 | |||||||
R&D expenses | $ | 17.9 | $ | 17.3 | $ | 35.4 | $ | 34.0 | |||||||
R&D expenses as a % of net revenue | 16.4 | % | 16.1 | % | 16.6 | % | 16.0 | % |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
(dollars in millions) | 2018 | 2017 | 2018 | 2017 | |||||||||||
Net revenues | $ | 109.5 | $ | 107.6 | $ | 212.6 | $ | 212.3 | |||||||
S&M expenses | $ | 13.5 | $ | 13.1 | $ | 26.6 | $ | 25.4 | |||||||
S&M expenses as a % of net revenue | 12.3 | % | 12.2 | % | 12.5 | % | 11.9 | % |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
(dollars in millions) | 2018 | 2017 | 2018 | 2017 | |||||||||||
Net revenues | $ | 109.5 | $ | 107.6 | $ | 212.6 | $ | 212.3 | |||||||
G&A expenses | $ | 9.2 | $ | 8.8 | $ | 18.2 | $ | 17.5 | |||||||
G&A expenses as a % of net revenue | 8.4 | % | 8.2 | % | 8.6 | % | 8.2 | % |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
(dollars in millions) | 2018 | 2017 | 2018 | 2017 | |||||||||||
Net revenues | $ | 109.5 | $ | 107.6 | $ | 212.6 | $ | 212.3 | |||||||
Other income | $ | 0.9 | $ | 0.5 | $ | 1.7 | $ | 1.0 | |||||||
Other income as a % of net revenue | 0.8 | % | 0.4 | % | 0.8 | % | 0.5 | % |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
(dollars in millions) | 2018 | 2017 | 2018 | 2017 | |||||||||||
Income before income taxes | $ | 16.5 | $ | 14.7 | $ | 31.3 | $ | 28.1 | |||||||
Provision for (benefit from) income taxes | $ | 1.1 | $ | 0.8 | $ | 1.7 | $ | 0.1 | |||||||
Effective tax rate | 6.8 | % | 5.2 | % | 5.5 | % | 0.3 | % |
Period | Total Number of Shares Purchased | Average Price Paid Per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Approximate Dollar Value of Shares that May Yet be Repurchased Under the Plans or Programs (in millions) | |||||||||
April 1, 2018, to April 30, 2018 | 283,457 | $ | 68.12 | 283,457 | $ | 21.8 | |||||||
May 1, 2018, to May 31, 2018 | 133,553 | $ | 70.99 | 133,553 | $ | 12.3 | |||||||
June 1, 2018, to June 30, 2018 | 17,300 | $ | 74.28 | 17,300 | $ | 11.0 | |||||||
Total | 434,310 | 434,310 |
Incorporation by Reference | |||||||||||||
EXHIBIT NUMBER | Exhibit Description | Form | File Number | Exhibit/Appendix Reference | Filing Date | Filed Herewith | |||||||
3.1 | 10-K | 000-23441 | 3.1 | 2/29/2012 | |||||||||
3.2 | 8-K | 000-23441 | 3.1 | 4/26/2013 | |||||||||
4.1 | Reference is made to Exhibits 3.1 to 3.2. | ||||||||||||
10.1 | X | ||||||||||||
31.1 | X | ||||||||||||
31.2 | X | ||||||||||||
32.1** | X | ||||||||||||
32.2** | X | ||||||||||||
101.INS | XBRL Instance Document | X | |||||||||||
101.SCH | XBRL Taxonomy Extension Schema Document | X | |||||||||||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document | X | |||||||||||
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document | X | |||||||||||
101.LAB | XBRL Taxonomy Extension Label Linkbase Document | X | |||||||||||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document | X |
** | The certifications attached as Exhibits 32.1 and 32.2 accompanying this Form 10-Q, are not deemed filed with the SEC, and are not to be incorporated by reference into any filing of Power Integrations, Inc. under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, whether made before or after the date of this Form 10-Q, irrespective of any general incorporation language contained in such filing. |
POWER INTEGRATIONS, INC. | |||
Dated: | July 26, 2018 | By: | /s/ SANDEEP NAYYAR |
Sandeep Nayyar Chief Financial Officer (Duly Authorized Officer, Principal Financial Officer and Principal Accounting Officer) |
WELLS FARGO BANK, | ||||
POWER INTEGRATIONS, INC. | NATIONAL ASSOCIATION | |||
By: | /s/ Balu Balakrishnan | By: | /s/ Natasha Fatheree | |
BALU BALAKRISHNAN, | NATASHA FATHEREE | |||
CHIEF EXECUTIVE OFFICER AND | RELATIONSHIP MANAGER | |||
PRESIDENT |
$75,000,000.00 | San Jose, California |
April 30, 2018 |
POWER INTEGRATIONS, INC. | |
By: | /s/ Balu Balakrishnan |
BALU BALAKRISHNAN, | |
CHIEF EXECUTIVE OFFICER AND | |
PRESIDENT |
Dated: | July 26, 2018 | By: | /s/ BALU BALAKRISHNAN |
Balu Balakrishnan Chief Executive Officer |
Dated: | July 26, 2018 | By: | /s/ SANDEEP NAYYAR |
Sandeep Nayyar Chief Financial Officer |
Dated: | July 26, 2018 | By: | /s/ BALU BALAKRISHNAN |
Balu Balakrishnan Chief Executive Officer |
Dated: | July 26, 2018 | By: | /s/ SANDEEP NAYYAR |
Sandeep Nayyar Chief Financial Officer |
DOCUMENT AND ENTITY INFORMATION Document - shares |
6 Months Ended | |
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Jun. 30, 2018 |
Jul. 16, 2018 |
|
Document and Entity Information [Abstract] | ||
Entity Registrant Name | POWER INTEGRATIONS INC | |
Entity Central Index Key | 0000833640 | |
Trading Symbol | POWI | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2018 | |
Document Fiscal Year Focus | 2018 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 29,407,488 |
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (PARENTHETICAL) - USD ($) $ in Thousands |
Jun. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance | $ 751 | $ 734 |
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|||
Income Statement [Abstract] | ||||||
NET REVENUES | $ 109,482 | $ 107,563 | $ 212,563 | $ 212,251 | ||
COST OF REVENUES | 53,248 | 54,116 | 102,785 | 108,328 | ||
GROSS PROFIT | 56,234 | 53,447 | 109,778 | 103,923 | ||
OPERATING EXPENSES: | ||||||
Research and development | 17,898 | 17,341 | 35,379 | 33,981 | ||
Sales and marketing | 13,497 | 13,144 | 26,585 | 25,360 | ||
General and administrative | 9,220 | 8,765 | 18,234 | 17,469 | ||
Total operating expenses | 40,615 | 39,250 | 80,198 | 76,810 | ||
INCOME FROM OPERATIONS | 15,619 | 14,197 | 29,580 | 27,113 | ||
OTHER INCOME | 885 | 465 | 1,721 | 971 | ||
INCOME BEFORE INCOME TAXES | 16,504 | 14,662 | 31,301 | 28,084 | ||
PROVISION FOR INCOME TAXES | 1,123 | 760 | 1,720 | 83 | ||
NET INCOME | $ 15,381 | $ 13,902 | $ 29,581 | $ 28,001 | ||
EARNINGS PER SHARE: | ||||||
Basic (in dollars per share) | $ 0.52 | $ 0.47 | $ 1.00 | $ 0.95 | ||
Diluted (in dollars per share) | [1] | $ 0.51 | $ 0.46 | $ 0.97 | $ 0.92 | |
SHARES USED IN PER SHARE CALCULATION: | ||||||
Basic (in shares) | 29,505 | 29,720 | 29,651 | 29,589 | ||
Diluted (in shares) | 30,183 | 30,454 | 30,387 | 30,370 | ||
|
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Statement of Comprehensive Income [Abstract] | ||||
NET INCOME | $ 15,381 | $ 13,902 | $ 29,581 | $ 28,001 |
Other comprehensive income, net of tax: | ||||
Foreign currency translation adjustments, net of $0 tax in each of the three and six months ended June 30, 2018 and 2017 | 37 | 31 | 0 | 95 |
Unrealized gain (loss) on marketable securities, net of $0 tax in each of the three and six months ended June 30, 2018 and 2017 | 226 | 15 | (12) | 98 |
Amortization of defined benefit pension items, net of tax of $9 and $18 in the three and six months ended June 30, 2018, respectively, and $14 and $27 in the three and six months ended June 30, 2017, respectively | 31 | 49 | 63 | 98 |
Total other comprehensive income | 294 | 95 | 51 | 291 |
TOTAL COMPREHENSIVE INCOME | $ 15,675 | $ 13,997 | $ 29,632 | $ 28,292 |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (PARENTHETICAL) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Statement of Comprehensive Income [Abstract] | ||||
Foreign currency translation adjustments, tax | $ 0 | $ 0 | $ 0 | $ 0 |
Unrealized gain (loss) on marketable securities, tax | 0 | 0 | 0 | 0 |
Amortization of defined benefit pension items, tax | $ 9 | $ 14 | $ 18 | $ 27 |
BASIS OF PRESENTATION |
6 Months Ended |
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Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION: The condensed consolidated financial statements include the accounts of Power Integrations, Inc., a Delaware corporation (the “Company”), and its wholly owned subsidiaries. Significant intercompany accounts and transactions have been eliminated in consolidation. While the financial information furnished is unaudited, the condensed consolidated financial statements included in this report reflect all adjustments (consisting only of normal recurring adjustments) that the Company considers necessary for the fair presentation of the results of operations for the interim periods covered and the financial condition of the Company at the date of the interim balance sheet in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The results for interim periods are not necessarily indicative of the results for the entire year. The condensed consolidated financial statements should be read in conjunction with the Power Integrations, Inc. consolidated financial statements and the notes thereto for the year ended December 31, 2017, included in its Form 10-K filed on February 14, 2018, with the Securities and Exchange Commission. |
SIGNIFICANT ACCOUNTING POLICIES AND RECENT ACCOUNTING PRONOUNCEMENTS |
6 Months Ended |
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Jun. 30, 2018 | |
Accounting Policies and Recent Accounting Pronouncements [Abstract] | |
Significant accounting policies and recent accounting pronouncements [Text Block] | SIGNIFICANT ACCOUNTING POLICIES AND RECENT ACCOUNTING PRONOUNCEMENTS: Significant Accounting Policies and Estimates No material changes have been made to the Company's significant accounting policies disclosed in Note 2, Significant Accounting Policies and Recent Accounting Pronouncements, in its Annual Report on Form 10-K, filed on February 14, 2018, for the year ended December 31, 2017. Recent Accounting Pronouncements In February 2016, the FASB amended the existing accounting standards for leases, ASU 2016-02, Leases. The amendments require lessees to recognize, on the balance sheet, assets and liabilities for the rights and obligations created by leases of greater than twelve months. The accounting by lessors will remain largely unchanged from that applied under previous U.S. GAAP. The Company is required to adopt the amendments in the first quarter of fiscal 2019, with early adoption permitted. The amendments require a modified retrospective transition approach to recognize and measure leases at the beginning of the earliest period presented. The Company is currently evaluating the impact of these amendments and the transition alternatives on its condensed consolidated financial statements. |
COMPONENTS OF THE COMPANY'S CONDENSED CONSOLIDATED BALANCE SHEETS |
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Balance Sheet Related Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Balance Sheet Disclosures | COMPONENTS OF THE COMPANY’S CONDENSED CONSOLIDATED BALANCE SHEETS: Accounts Receivable
Inventories
Prepaid Expenses and Other Current Assets
Intangible Assets
The estimated future amortization expense related to finite-lived intangible assets at June 30, 2018, is as follows:
_______________
Accumulated Other Comprehensive Loss Changes in accumulated other comprehensive loss for the three and six months ended June 30, 2018 and 2017, were as follows:
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FAIR VALUE MEASUREMENTS |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS: The FASB established a three-tier value hierarchy, which prioritizes the inputs used in measuring fair value as follows: (Level 1) observable inputs such as quoted prices for identical assets in active markets; (Level 2) inputs other than the quoted prices in active markets that are observable either directly or indirectly; and (Level 3) unobservable inputs in which there is little or no market data, which requires the Company to develop its own assumptions. This hierarchy requires the Company to use observable market data, when available, and to minimize the use of unobservable inputs when determining fair value. The Company's cash equivalents and short-term marketable securities are classified within Level 1 or Level 2 of the fair-value hierarchy because they are valued using quoted market prices, broker or dealer quotations, or alternative pricing sources with reasonable levels of price transparency. The fair-value hierarchy of the Company's cash equivalents and marketable securities at June 30, 2018, and December 31, 2017, was as follows:
The Company did not transfer any investments between Level 1 and Level 2 of the fair-value hierarchy in the six months ended June 30, 2018, and the twelve months ended December 31, 2017. |
MARKETABLE SECURITITES |
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Marketable Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure | MARKETABLE SECURITIES: Amortized cost and estimated fair market value of marketable securities classified as available-for-sale (excluding cash equivalents) at June 30, 2018, were as follows:
Amortized cost and estimated fair market value of marketable securities classified as available-for-sale (excluding cash equivalents) at December 31, 2017, were as follows:
As of June 30, 2018, and December 31, 2017, the Company evaluated the nature of the investments with a loss position, which were primarily high-quality corporate securities, and determined the unrealized losses were not other-than-temporary. |
STOCK-BASED COMPENSATION |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
STOCK PLANS AND SHARE-BASED COMPENSATION | STOCK-BASED COMPENSATION: The following table summarizes the stock-based compensation expense recognized in accordance with ASC 718-10 for the three and six months ended June 30, 2018, and June 30, 2017:
Stock-based compensation expense in the three months ended June 30, 2018, was approximately $6.1 million (comprising approximately $3.9 million related to restricted stock unit (RSU) awards, $1.8 million related to performance-based (PSU) awards and long-term performance-based (PRSU) awards and $0.4 million related to the Company’s employee stock purchase plan). In the six months ended June 30, 2018, stock-based compensation expense was approximately $11.7 million (comprising approximately $8.2 million related to restricted stock unit (RSU) awards, $2.7 million related to performance-based (PSU) awards and long-term performance-based (PRSU) awards and $0.8 million related to the Company’s employee stock purchase plan). Stock-based compensation expense in the three months ended June 30, 2017, was approximately $6.3 million (comprising approximately $3.7 million related to RSUs, $2.3 million related to PSUs and PRSUs and $0.3 million related to the Company’s employee stock purchase plan). In the six months ended June 30, 2017, stock-based compensation expense was approximately $11.3 million (comprising approximately $7.2 million related to RSUs, $3.5 million related to PSUs and PRSUs and $0.6 million related to the Company’s employee stock purchase plan). Stock Options A summary of stock options outstanding as of June 30, 2018, and activity during the six months then ended, is presented below:
PSU Awards Under the performance-based awards program, the Company grants awards in the performance year in an amount equal to twice the target number of shares to be issued if the maximum performance metrics are met. The number of shares that are released at the end of the performance year can range from zero to 200% of the target number depending on the Company’s performance. The performance metrics of this program are annual targets consisting of a combination of net revenue, non-GAAP operating income and strategic goals. As the net revenue, non-GAAP operating income and strategic goals are considered performance conditions, expense associated with these awards, net of estimated forfeitures, is recognized over the service period based on an assessment of the achievement of the performance targets. The fair value of these PSUs is determined using the fair value of the Company’s common stock on the date of the grant, reduced by the discounted present value of dividends expected to be declared before the awards vest. If the performance conditions are not achieved, no compensation cost is recognized and any previously recognized compensation is reversed. In January 2018, it was determined that approximately 79,000 shares of the PSUs granted in 2017, vested in aggregate and were released to the Company’s employees and executives in the first quarter of 2018. A summary of PSUs outstanding as of June 30, 2018, and activity during the six months then ended, is presented below:
PRSU Awards The Company's PRSU program provides for the issuance of PRSUs which will vest based on the Company's performance measured against the PRSU program's established revenue targets. PRSUs are granted in an amount equal to twice the target number of shares to be issued if the maximum performance metrics are met. The actual number of shares the recipient receives is determined at the end of a three-year performance period based on results achieved versus the Company's performance goals, and may range from zero to 200% of the target number. The performance goals for PRSUs granted in fiscal 2016, 2017 and 2018 were based on the Company’s annual revenue growth over the respective three-year performance period. Expense associated with these awards, net of estimated forfeitures, is recorded throughout the year depending on the number of shares expected to vest based on progress toward the performance target. If the performance conditions are not achieved, no compensation cost is recognized and any previously recognized compensation is reversed. In January 2018, it was determined that approximately 38,000 shares of the PRSUs granted in 2015, vested in aggregate and were released to the Company’s executives in the first quarter of 2018. A summary of PRSUs outstanding as of June 30, 2018, and activity during the six months then ended, is presented below:
RSU Awards A summary of RSUs outstanding as of June 30, 2018, and activity during the six months then ended, is presented below:
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SIGNIFICANT CUSTOMERS AND GEOGRAPHIC NET REVENUES |
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Risks and Uncertainties [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Concentration Risk Disclosure [Text Block] | SIGNIFICANT CUSTOMERS AND GEOGRAPHIC NET REVENUES: Segment Reporting The Company is organized and operates as one reportable segment, the design, development, manufacture and marketing of integrated circuits and related components for use primarily in the high-voltage power-conversion market. The Company’s chief operating decision maker, the Chief Executive Officer, reviews financial information presented on a consolidated basis for purposes of making operating decisions and assessing financial performance. Customer Concentration The Company's top ten customers accounted for approximately 59% and 58% of net revenues for the three and six months ended June 30, 2018, respectively, and approximately 57% of net revenues in the corresponding periods of 2017. A significant portion of these revenues are attributable to sales of the Company’s products to distributors of electronic components. These distributors sell the Company’s products to a broad, diverse range of end users, including OEMs and merchant power supply manufacturers. Sales to distributors were $83.0 million and $162.1 million for the three and six months ended June 30, 2018, respectively, and $85.5 million and $166.1 million, respectively, for the corresponding periods of 2017. Direct sales to OEMs and power-supply manufacturers accounted for the remainder. In each of the three and six months ended June 30, 2018 and 2017, one customer, a distributor of the Company's products, accounted for more than 10% of the Company’s net revenues. The following table discloses this customer’s percentage of revenues for the respective periods:
No other customer accounted for 10% or more of the Company’s net revenues in the periods presented. Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash investments and trade receivables. The Company does not have any off-balance-sheet credit exposure related to its customers. As of June 30, 2018, and December 31, 2017, 65% and 64%, respectively, of accounts receivable were concentrated with the Company’s top 10 customers. As of June 30, 2018, and December 31, 2017, one customer, a distributor of the Company’s products, represented 10% or more of the Company’s accounts receivable. The following table discloses this customer’s percentage of accounts receivable as of the respective dates:
No other customer represented 10% or more of the Company’s accounts receivable as of the dates presented. Geographic Net Revenues The Company markets its products globally through its sales personnel and a worldwide network of independent sales representatives and distributors. Geographic net revenues, based on “bill to” customer locations, for the three and six months ended June 30, 2018, and June 30, 2017, were as follows:
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COMMON STOCK REPURCHASES AND CASH DIVIDENDS |
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Common Stock Repurchases and Cash Dividends [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock Repurchase and Cash Dividends [Text Block] | COMMON STOCK REPURCHASES AND CASH DIVIDENDS: Common Stock Repurchases As of December 31, 2017, the Company had approximately $44.4 million available under its stock-repurchase program. In January 2018, the Company’s board of directors authorized the use of an additional $30.0 million for the repurchase of the Company’s common stock, with repurchases to be executed according to pre-defined price/volume guidelines. In the six months ended June 30, 2018, the Company repurchased approximately 0.9 million shares of its common stock for approximately $63.4 million. As of June 30, 2018, the Company had approximately $11.0 million remaining under its current repurchase program, which has no expiration date. Authorization of future repurchase programs is at the discretion of the board of directors and will depend on the Company’s financial condition, results of operations, capital requirements, business conditions and other factors. Cash Dividends In January 2018, the Company’s board of directors declared four quarterly cash dividends in the amount of $0.16 per share to be paid to stockholders of record at the end of each quarter in 2018. For the three and six months ended June 30, 2018, and June 30, 2017, cash dividends declared and paid were as follows:
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EARNINGS PER SHARE |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EARNINGS PER SHARE | EARNINGS PER SHARE: Basic earnings per share are calculated by dividing net income by the weighted-average shares of common stock outstanding during the period. Diluted earnings per share are calculated by dividing net income by the weighted-average shares of common stock and dilutive common equivalent shares outstanding during the period. Dilutive common equivalent shares included in this calculation consist of dilutive shares issuable upon the assumed exercise of outstanding common stock options, the assumed vesting of outstanding restricted stock units, the assumed issuance of awards under the stock purchase plan and contingently issuable performance-based awards, as computed using the treasury stock method. A summary of the earnings per share calculation is as follows:
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In the three and six months ended June 30, 2018 and 2017, no outstanding stock awards were determined to be anti-dilutive and therefore excluded from the computation of diluted earnings per share. |
PROVISION FOR INCOME TAXES |
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Income Tax Disclosure [Abstract] | |
PROVISION FOR INCOME TAXES | PROVISION FOR INCOME TAXES: U.S. Tax Reform The Tax Cuts and Jobs Act (Tax Act) was enacted on December 22, 2017. The Act reduced the U.S. federal corporate tax rate from 35% to 21%, requires companies to pay a one-time transition tax on earnings of certain foreign subsidiaries that were previously tax deferred and creates new taxes on certain foreign sourced earnings. The Company has not completed the accounting for the tax effects of enactment of the Tax Act; however, in certain cases, as described below, the Company has made a reasonable estimate of the effects on existing deferred tax balances and the one-time transition tax. In other cases, the Company has not been able to make a reasonable estimate. The Company has not recorded any additional measurement-period adjustments during the six months ended June 30, 2018. However, the Company continues to evaluate the provisions of the Tax Act, including the recently issued IRS notices, and expects to complete the accounting within the prescribed measurement period. The SEC staff issued Staff Accounting Bulletin 118 (SAB 118), which provides guidance on accounting for the tax effects of the Tax Act. SAB 118 provides a measurement period that should not extend beyond one year from the Tax Act enactment date for companies to complete the accounting under ASC 740. In accordance with SAB 118, a company must reflect the income tax effects of those aspects of the Tax Act for which the accounting under ASC 740 is complete. To the extent that a company’s accounting for certain income tax effects of the Tax Act is incomplete but it is able to determine a reasonable estimate, it must record a provisional estimate in the financial statements. If a company cannot determine a provisional estimate to be included in the financial statements, it should continue to apply ASC 740 on the basis of the provisions of the tax laws that were in effect immediately before the enactment of the Tax Act. The items for which the Company was able to determine a reasonable estimate includes a provisional one-time transition tax of $35.3 million, which was included as a component of the income tax provision for the year-ended December 31, 2017. This one-time transition tax was based on the Company’s estimated total post-1986 earnings and profits (E&P) previously deferred from U.S. income taxes. As of December 31, 2017, the Company had no additional undistributed foreign earnings that would be subject to the transition tax; although, this amount may change upon finalization of the total post-1986 foreign E&P balances and local foreign tax returns filed in the current year. The Company also re-measured certain deferred tax assets and liabilities based on the rates at which they are expected to reverse in future periods, which is generally 21%. In the year ended December 31, 2017, the Company recorded a provisional amount of $4.9 million related to the re-measurement of the Company’s deferred tax assets and liabilities. As the Company is still analyzing certain aspects of the Tax Act and refining calculations, the measurement of these balances may potentially change or give rise to new deferred tax amounts. The Act also includes provisions for Global Intangible Low-Taxed Income (“GILTI”) wherein taxes on foreign income are imposed in excess of a deemed return on tangible assets of foreign corporations. Due to the complexity of the GILTI tax rules and lack of IRS guidance, the Company continues to evaluate this provision of the Tax Act and the application of ASC 740. The Company is allowed to make an accounting policy choice of either (1) treating taxes due on future U.S. inclusions in taxable income related to GILTI as a current-period expense when incurred (the “period cost method”) or (2) factoring such amounts into the Company’s measurement of deferred taxes (the “deferred method”). The Company’s selection of an accounting policy with respect to the new GILTI tax rules will depend, in part, on analyzing the Company’s global income to determine whether the Company expects to have future U.S. inclusions in taxable income related to GILTI and, if so, what the impact is expected to be. Whether the Company expects to have future U.S. inclusions in taxable income related to GILTI depends on not only the Company’s current structure and estimated future results of global operations but also the Company’s intent and ability to modify the Company’s structure and/or business. The Company has not made any provisional adjustments related to potential GILTI deferred taxes in the Company’s financial statements and has not made a policy decision regarding whether to record deferred taxes on GILTI. However, the Company has included a current estimate of the 2018 GILTI impact in the computation of the annual effective tax rate. Income Taxes Income-tax expense includes a provision for federal, state and foreign taxes based on the annual estimated effective tax rate applicable to the Company and its subsidiaries, adjusted for certain discrete items which are fully recognized in the period they occur. The Company's effective tax rates for the three and six months ended June 30, 2018, were 6.8% and 5.5%, respectively, and 5.2% and 0.3% for the corresponding periods of 2017. In the three and six months ended June 30, 2018 and 2017, the effective tax rates for these periods were lower than the then statutory federal income-tax rates of 21% and 35%, respectively, due to the geographic distribution of the Company’s world-wide earnings in lower tax jurisdictions, federal research tax credits, as well as the recognition of excess tax benefits related to share-based payments. These benefits were offset in part by the estimated 2018 GILTI tax for both the three and six months ended June 30, 2018. As of June 30, 2018, the Company maintained a valuation allowance on its California deferred tax assets, New Jersey deferred tax assets, and capital losses for federal purposes, and a valuation allowance with respect to its deferred tax assets relating to tax credits in Canada. Determining the consolidated provision for income tax expense, income tax liabilities and deferred tax assets and liabilities involves judgment. The Company calculates and provides for income taxes in each of the tax jurisdictions in which it operates, which involves estimating current tax exposures as well as making judgments regarding the recoverability of deferred tax assets in each jurisdiction. The estimates used could differ from actual results, which may have a significant impact on operating results in future periods. |
COMMITMENTS |
6 Months Ended |
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Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS | COMMITMENTS: Supplier Agreements Under the terms of the Company's wafer-supply agreements with Seiko Epson Corporation ("Epson"), and ROHM Lapis Semiconductor Co., Ltd. ("Lapis") the wafers purchased from these suppliers are priced in U.S. dollars; however, these agreements also allow for mutual sharing of the impact of the exchange rate fluctuation between Japanese yen and the U.S. dollar on future purchases. Each year, the Company's management and these two suppliers review and negotiate future pricing; the negotiated pricing is denominated in U.S. dollars but is subject to contractual exchange rate provisions. The fluctuation in the exchange rate is shared equally between the Company and each of these suppliers on future purchases. |
LEGAL PROCEEDINGS AND CONTINGENCIES |
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Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
LEGAL PROCEEDINGS AND CONTINGENCIES | LEGAL PROCEEDINGS AND CONTINGENCIES: From time to time in the ordinary course of business, the Company becomes involved in lawsuits, or customers and distributors may make claims against the Company. In accordance with ASC 450-10, Contingencies, the Company makes a provision for a liability when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. On October 20, 2004, the Company filed a complaint against Fairchild Semiconductor International, Inc. and Fairchild Semiconductor Corporation (referred to collectively as “Fairchild”) in the United States District Court for the District of Delaware. In its complaint, the Company alleged that Fairchild has and is infringing four of Power Integrations’ patents pertaining to pulse width modulation (PWM) integrated circuit devices. Fairchild denied infringement and asked for a declaration from the court that it does not infringe any Power Integrations patent and that the patents are invalid. The Court issued a claim construction order on March 31, 2006 which was favorable to the Company. The Court set a first trial on the issues of infringement, willfulness and damages for October 2, 2006. At the close of the first trial, on October 10, 2006, the jury returned a verdict in favor of the Company finding all asserted claims of all four patents-in-suit to be willfully infringed by Fairchild and awarding $34.0 million in damages. Fairchild raised defenses contending that the asserted patents are invalid or unenforceable, and the Court held a second trial on these issues beginning on September 17, 2007. On September 21, 2007, the jury returned a verdict in the Company’s favor, affirming the validity of the asserted claims of all four patents-in-suit. Fairchild submitted further materials on the issue of enforceability along with various other post-trial motions, and the Company filed post-trial motions seeking a permanent injunction and increased damages and attorneys’ fees, among other things. On September 24, 2008, the Court denied Fairchild’s motion regarding enforceability and ruled that all four patents are enforceable. On December 12, 2008, the Court ruled on the remaining post-trial motions, including granting a permanent injunction, reducing the damages award to $6.1 million, granting Fairchild a new trial on the issue of willful infringement in view of an intervening change in the law, and denying the Company’s motion for increased damages and attorneys’ fees with leave to renew the motion after the resolution of the issue of willful infringement. On December 22, 2008, at Fairchild’s request, the Court temporarily stayed the permanent injunction for 90 days. On January 12, 2009, Fairchild filed a notice of appeal challenging the Court’s refusal to enter a more permanent stay of the injunction, and Fairchild filed additional motions requesting that both the Federal Circuit and the District Court extend the stay of injunction. The District Court temporarily extended the stay pending the Federal Circuit ruling on Fairchild’s pending motion, but the Federal Circuit dismissed Fairchild’s appeal and denied its motion on May 5, 2009, and the District Court issued an order on May 13, 2009 confirming the reinstatement of the permanent injunction as originally entered in December 2008. On June 22, 2009, the Court held a brief bench re-trial on the issue of willful infringement. On July 22, 2010, the Court found that Fairchild willfully infringed all four of the asserted patents, and the Court also invited briefing on enhanced damages and attorneys’ fees. Fairchild also filed a motion requesting that the Court amend its findings regarding willfulness. On January 18, 2011, the Court denied Fairchild’s request to amend the findings regarding Fairchild’s willful infringement and doubled the damages award against Fairchild but declined to award attorneys’ fees. On February 3, 2011, the Court entered final judgment in favor of the Company for a total damages award of $12.9 million. Fairchild filed a notice of appeal challenging the final judgment and a number of the underlying rulings, and the Company filed a cross-appeal seeking to increase the damages award. The appeal was argued on January 11, 2012, and the Federal Circuit issued a mixed ruling on March 26, 2013, affirming Fairchild’s infringement of certain claims that support the basis for the permanent injunction while reversing, vacating, and remanding the findings with respect to other claims, including the Company’s claim for damages. The Company filed a petition seeking Supreme Court review of the Federal Circuit’s ruling on damages issues, and the Supreme Court called for a response from Fairchild but ultimately declined to review the case. On remand, the District Court reinstated the prior findings that Fairchild willfully infringed three of the Company’s patents; the Company intends to pursue its claim for financial compensation based on Fairchild’s infringement. On May 23, 2008, the Company filed a complaint against Fairchild Semiconductor International, Inc., Fairchild Semiconductor Corporation, and Fairchild’s wholly owned subsidiary System General Corporation (referred to collectively as “Fairchild”), in the United States District Court for the District of Delaware. In its complaint, the Company alleged that Fairchild has infringed and is infringing three patents pertaining to power supply controller integrated circuit devices. Fairchild answered the Company’s complaint on November 7, 2008, denying infringement and asking for a declaration from the Court that it does not infringe any Power Integrations patent and that the patents are invalid and unenforceable. Fairchild’s answer also included counterclaims accusing the Company of infringing three patents pertaining to primary side power conversion integrated circuit devices. Fairchild had earlier brought these same claims in a separate suit against the Company, also in Delaware, which Fairchild dismissed in favor of adding its claims to the Company’s already pending suit against Fairchild. The Company has answered Fairchild’s counterclaims, denying infringement and asking for a declaration from the Court that it does not infringe any Fairchild patent and that the Fairchild patents are invalid. Fairchild also filed a motion to stay the case, but the Court denied that motion on December 19, 2008. On March 5, 2009, Fairchild filed a motion for summary judgment to preclude any recovery for post-verdict sales of parts found to infringe in the parties’ other ongoing litigation, described above, and the Company filed its opposition and a cross-motion to preclude Fairchild from re-litigating the issues of infringement and damages for those same products. On June 26, 2009, the Court held a hearing on the parties’ motions, and on July 9, 2009 the Court issued an order denying the parties’ motions but staying proceedings with respect to the products that were found to infringe and which are subject to the injunction in the other Delaware case between the parties pending the entry of final judgment in that case; those products are expected to be addressed in the context of the parties’ remand proceedings following the appeal in their earlier litigation in Delaware, and the remainder of the case is proceeding. On December 18, 2009, the Court issued an order construing certain terms in the asserted claims of the Company’s and Fairchild’s patents in suit. Following the Court’s ruling on claim construction, Fairchild withdrew its claim related to one of its patents and significantly reduced the number of claims asserted for the remaining two patents. The parties thereafter filed and argued a number of motions for summary judgment, and the Court denied the majority of the parties’ motions but granted the Company’s motion to preclude Fairchild from re-arguing validity positions that were rejected in the prior case between the parties. Because the assigned Judge retired at the end of July 2010, the case was re-assigned to a different Judge, and the Court vacated the trial schedule and had the parties provide their input on the appropriate course of action. The Court thereafter set a trial schedule with the jury trial on infringement and validity to begin in July 2011. On April 18, 2011, the Court rescheduled the trial to begin in January 2012, and on June 2, 2011, the Court moved the trial date to April 2012 to permit the parties to address another patent the Company accused Fairchild of infringing. Following a trial in April 2012, the jury returned a verdict finding that Fairchild infringes two of the Company’s patents, that Fairchild has induced others to infringe the Company’s patents, and also upheld the validity of the infringed patents. Of the two remaining counterclaim patents Fairchild asserted in the case, one was found not to be infringed, but the jury found the second patent to be infringed by a limited number of the Company’s products, although the jury further found the Company did not induce infringement by any customers, including customers outside the United States. On March 29, 2013, the District Court denied most of the parties’ post-trial motions on liability but granted the Company’s motion for judgment as a matter of law finding that Fairchild infringed another of the Company’s patents. On April 25, 2013, the Court denied both parties’ motions regarding the unenforceability of each other’s patents. The Company challenged adverse findings on appeal; nevertheless, the Company estimated that even if the verdict on Fairchild’s patent had ultimately been upheld, the sales potentially impacted would have amounted to less than 0.5% of the Company’s revenues. The Company requested an injunction preventing further infringement of its own patents by Fairchild, and Fairchild requested an injunction as well. Following a hearing on the issue in June 2014, the Court denied Fairchild’s request for an injunction against the Company and granted the Company’s request for an injunction against Fairchild. On January 13, 2015, the District Court entered final judgment on the liability and validity issues discussed above, and both parties filed appeals with the Federal Circuit. After briefing was completed, oral argument on the appeal took place in early July 2016, and on December 12, 2016, the Federal Circuit issued its opinion in the appeal, overturning the lone infringement verdict against the Company, finding one of the Company’s patents invalid, and overturning the District Court’s jury instruction on inducement. In view of the Federal Circuit’s rejection of the District Court’s jury instruction on inducement, the Court also vacated the inducement findings and associated injunction against Fairchild and remanded the case for a retrial on inducement, but the underlying validity and infringement findings against Fairchild on those two patents remain intact. On remand, the Company will also be seeking financial damages as well as enhanced damages for Fairchild’s willful infringement. On June 28, 2004, the Company filed a complaint for patent infringement in the U.S. District Court, Northern District of California, against System General Corporation (SG), a Taiwanese company, and its U.S. subsidiary. The Company’s complaint alleged that certain integrated circuits produced by SG infringed and continue to infringe certain of its patents. On June 10, 2005, in response to the initiation of an International Trade Commission (ITC) investigation on the patents asserted in the District Court lawsuit, the District Court stayed all proceedings. Subsequent to the completion of the ITC proceedings, the District Court temporarily lifted the stay and scheduled a case management conference. On December 6, 2006, SG filed a notice of appeal of the ITC decision. In response, and by agreement of the parties, the District Court vacated the scheduled case management conference and renewed the stay of proceedings pending the outcome of the Federal Circuit appeal of the ITC determination. On November 19, 2007, the Federal Circuit affirmed the ITC’s findings in all respects, and SG did not file a petition for review. The parties subsequently filed a motion to dismiss the District Court case without prejudice. On November 4, 2009, the Company re-filed its complaint for patent infringement against SG and its parent corporations, Fairchild Semiconductor International, Inc. and Fairchild Semiconductor Corporation, to address their continued infringement of patents at issue in the original suit that recently emerged from SG requested reexamination proceedings before the U.S. Patent and Trademark Office (USPTO). The Company seeks, among other things, an order enjoining SG and Fairchild from infringing the Company’s patents and an award of damages resulting from the alleged infringement. Fairchild has denied infringement and asked for a declaration from the Court that it does not infringe any Power Integrations patent, that the patents are invalid, and that one of the two of the Company’s patents now at issue in the case is unenforceable. On May 5, 2010, SG and Fairchild filed an amended answer including counterclaims accusing the Company of infringing two patents, and later Fairchild withdrew its claim for infringement of one of the patents it originally asserted against the Company but added another patent to the case over the Company’s objections. Both parties filed summary judgment motions and challenges to each other’s experts’ testimony, and the Court granted the Company’s motion for summary judgment of non-infringement with respect to one of Fairchild’s two patents. Following a trial on the remaining claims in February 2014, the jury returned a verdict in the Company’s favor, affirming the validity of the asserted claims of the Company’s patents-in-suit, finding that SG and Fairchild infringed the Company’s asserted patents and induced infringement by others, and awarding $105.0 million in damages. The Jury also rejected Fairchild’s remaining counterclaims for infringement against the Company. Fairchild challenged these rulings in post-trial motions, but the judge confirmed the jury’s determinations on infringement and damages, although the Court declined to find Fairchild’s infringement willful. Fairchild also pressed its unenforceability claim with respect to one of the two patents it was found to infringe in post-trial briefing, but the Court rejected Fairchild’s unenforceability claim. Fairchild also requested reconsideration of the damages determinations, and the Court granted a new trial with respect to damages but none of the other issues addressed in the previous trial, with the retrial scheduled for December 2015. Thereafter, the parties completed pretrial proceedings challenging each other’s experts, and the Court granted portions of each party’s motions limiting the scope of expert testimony for purposes of the damages retrial, but neither party was successful in their efforts to prevent the other side’s experts from testifying at trial. Following a retrial on the issue of damages in December 2015, the jury returned a verdict in the Company’s favor, finding that the Company’s patented technology created the basis for customer demand for the infringing Fairchild products and awarding $139.8 million in damages. Although the jury awarded damages, at this stage of the proceedings the Company cannot state the amount, if any, it might ultimately recover from Fairchild, and no benefits have been recorded in the Company’s consolidated financial statements as a result of the damages verdict. Fairchild filed post-trial motions challenging the verdict, but the Court rejected Fairchild’s motions challenging the damages verdict in August 2016. The Company also filed motions requesting enhanced damages and attorney fees and reinstatement of the willfulness finding against Fairchild in view of an intervening change of law; on January 13, 2017, the District Court reinstated the finding that Fairchild’s infringement was willful but declined to enhance damages or award fees. In January 2017, Fairchild filed a further challenge to the verdict, but the Court rejected Fairchild’s motion and entered a final judgment of $146.5 million after factoring in pre-judgment interest. Fairchild’s appeal on the merits challenged the infringement findings and damages award. In July 2018, on appeal, the Federal Circuit affirmed the findings that Fairchild infringed both of the Company’s asserted patents but vacated the damages award and remanded the case for further proceedings. The Company intends to pursue its claim for damages, although the claims at issue in litigation currently stand rejected in IPR proceedings, subject to appeal as discussed below. On July 11, 2011, the Company filed a complaint in the U.S. District Court, District of Columbia, against David Kappos in his capacity as Director of the United States Patent and Trademark Office (PTO) as part of the ongoing reexamination proceedings related to one of the patents asserted against Fairchild and SG in the Delaware litigation described above. The Company filed a motion for summary judgment on a preliminary jurisdictional issue, and the PTO filed a cross-motion to dismiss on this same issue; briefing on those motions was completed in October, 2011. On November 18, 2013, the Court granted the PTO’s motion and transferred the case to the Federal Circuit, where additional briefing took place. Following a hearing in May 2015, the Federal Circuit ruled in the Company’s favor on August 12, 2015, overturning the PTO’s claim construction and remanding the case for further proceedings. On remand, the PTO ignored the Federal Circuit’s guidance, so the Company filed another appeal to the Federal Circuit; in that second appeal, the Federal Circuit overturned the PTO’s rulings and confirmed the validity of the challenged claims of the Company’s patent on March 19, 2018. On May 1, 2012, Fairchild Semiconductor Corporation and Fairchild’s wholly owned subsidiary, System General Corporation (referred to collectively as “Fairchild”), filed a complaint against the Company in the United States District Court for the District of Delaware. In its complaint, Fairchild alleged that the Company has infringed and is infringing four patents pertaining to power conversion integrated circuit devices. The Company answered Fairchild’s complaint, denying infringement and asking for a declaration from the Court that it does not infringe any Fairchild patent and that the Fairchild patents are invalid, and the Company also asserted counterclaims against Fairchild for infringement of five of the Company’s patents. Fairchild withdrew its claim for infringement of one of the patents it asserted against the Company after the Company’s preliminary challenge. The parties streamlined their contentions in view of the Court’s pretrial rulings, and following a trial in late May and early June 2015, a jury returned a verdict finding that Fairchild infringed one of the Company’s patents, that Fairchild has induced and contributed to others’ infringement of the Company’s patent, and that the Company induced infringement of a Fairchild patent that was previously found infringed in the 2012 trial described above, with a damages award of $2.4 million in favor of Fairchild. Both parties filed post-trial motions and challenges to various portions of the jury verdicts, and the Court addressed the first wave of post-trial motions, denying each side’s challenges to the verdict and denying Fairchild’s request for an injunction. In parallel proceedings, the Federal Circuit overturned the underlying finding of infringement against the Company on the Fairchild patent-in-suit, and the Company moved to vacate the inducement and damages judgment against the Company, a motion that Fairchild did not oppose. Further proceedings and a retrial on indirect infringement and damages for Fairchild’s infringement of one of the Company’s asserted patents are expected in the coming months, with appeals to follow. On October 21, 2015, the Company filed a complaint for patent infringement against in the United States District Court for the Northern District of California Fairchild Semiconductor Corporation, Fairchild Semiconductor International, Inc., and wholly-owned subsidiary Fairchild (Taiwan) Corporation (referred to collectively as “Fairchild”) to address Fairchild’s continued infringement of two patents Fairchild was previously found to infringe in the three District Court cases the Company brought against Fairchild discussed above. In each of the three prior cases, Fairchild was found to infringe one of the patents at issue in the latest complaint, and Fairchild’s challenges to the validity of the patents were rejected during the course of the prior lawsuits as well. Fairchild has answered the Company’s complaint, denying infringement and asking for a declaration from the Court that it does not infringe any Power Integrations patent and that the patents are invalid. Fairchild’s answer also included counterclaims accusing the Company of infringing four patents pertaining to power conversion integrated circuit devices, including one patent the Company was found not to infringe in prior litigation. The Company has answered Fairchild’s counterclaims, denying infringement and asking for a declaration from the Court that it does not infringe any Fairchild patent and that the Fairchild patents are invalid. On December 15, 2016, the Court stayed the case pending resolution of the parties’ inter partes review (IPR) and reexamination proceedings regarding the patents-in-suit. On March 10, 2016, Silver Star Capital, LLC filed a petition with the U.S. Patent & Trademark Office (PTO) requesting that the PTO conduct an IPR of the validity of the Company’s U.S. Patent No. 6,212,079 (the ‘079 patent), which the Company has asserted against Fairchild Semiconductor in the California litigation initiated in 2004, as discussed above. The Company’s ‘079 patent is also asserted in the Company’s most recent lawsuits against Fairchild filed in October 2015 and against ON Semiconductor filed in November 2016, also discussed herein. On March 29, 2016, ON Semiconductor Corporation filed another petition requesting an IPR of the Company’s ‘079 patent. Since that time, ON Semiconductor filed eleven more IPR petitions requesting review of various patents that the Company previously asserted against Fairchild as described above, and another three IPR petitions requesting review of various patents that the Company asserted against ON Semiconductor as described herein. The PTO denied Silver Star Capital’s IPR petition on the ‘079 patent but instituted IPR proceedings with respect to ON Semiconductor’s petition directed to the ‘079 patent. On September 22, 2017, the PTO rejected as obvious the claims of the Company’s ‘079 patent that were asserted in litigation and which formed the basis for the $146.5 million judgment against Fairchild; an appeal has been filed to reverse the PTO’s adverse findings, with further proceeding expected in the coming months. The PTO also instituted IPR proceedings in response to eight of ON Semiconductor’s eleven other petitions challenging patents previously asserted against Fairchild, denying institution in three cases, and the PTO has rejected a number of the Company’s patent claims in the context of these ongoing proceedings. In one case, the PTO rejected as anticipated the claims of the Company’s U.S. Patent No. 6,538,908 that were asserted in litigation against Fairchild; an appeal is under way, with briefing expected in the coming months, and further proceedings and appeals regarding other IPRs are expected in the coming months as well. Although the validity of many of the Company’s challenged patents has previously been confirmed in the Company’s District Court litigation with Fairchild and in many cases in prior PTO reexamination proceedings as well, and though the Company intends to vigorously defend the validity of its patents, the outcome of the IPR proceedings is uncertain. On April 1, 2016, Opticurrent, LLC filed a complaint against the Company in the United States District Court for the Eastern District of Texas. In its complaint, Opticurrent alleges that the Company has infringed and is infringing one patent pertaining to transistor switch devices. The Company filed a motion to transfer the case to California, which the Court granted, and the case was assigned to a new judge in San Francisco following the transfer. Further proceedings are expected over the course of the coming months, with trial scheduled for February 2019. The Company intends to vigorously defend itself against Opticurrent’s claims. On August 11, 2016, ON Semiconductor filed a complaint against the Company in the United States District Court for the District of Arizona. In its complaint, ON Semiconductor alleged that the Company has infringed and is infringing six patents and requested injunctive relief. The Company filed a motion to transfer the case to the Northern District of California, which the Court granted, and the case has been consolidated with the Company’s affirmative case against ON Semiconductor in the Northern District of California, as discussed below. The Company believes it has valid defenses and intends to vigorously defend itself against ON Semiconductor’s claims. On November 1, 2016, the Company filed a lawsuit against ON Semiconductor in the United States District Court for the Northern District of California to address ON Semiconductor’s infringement of six patents. The court denied ON Semiconductor’s motion requesting that the case be transferred to Arizona and scheduled trial for December of 2019, with interim deadlines for hearing claim construction and dispositive motions. In consolidating the pleadings from the California and Arizona cases following the transfer of ON Semiconductor’s case from Arizona, ON Semiconductor asserted two additional patents, bringing the total number of patents asserted against the Company to eight in this case, and ON Semiconductor’s amended complaint also seeks a declaration of non-infringement with respect to another of the Company’s patents that was previously asserted against Fairchild Semiconductor. Further proceedings and discovery will take place over the coming months, with a trial scheduled for December of 2019. On December 27, 2016, ON Semiconductor filed a complaint against the Company in the United States District Court for the Eastern District of Texas. In its complaint, ON Semiconductor alleged that the Company has infringed and is infringing six patents and requests injunctive relief. On March 9, 2017, ON Semiconductor dismissed its Texas complaint and re-filed a substantially similar complaint in the District of Delaware. After the Company filed a motion to dismiss, ON Semiconductor filed an amended complaint; the Company has answered ON Semiconductor’s complaint and asserted claims for infringement of several of the Company’s patents. Trial has been scheduled for February of 2020, with interim deadlines for discovery and claim construction, and the Company believes it has valid defenses and intends to vigorously defend itself against ON Semiconductor’s claims. In November 2017, ON Semiconductor filed suit against the Company in Taiwan charging the Company with infringing three Taiwanese patents and seeking an injunction and damages of approximately $1.0 million. Briefing on various disputed issues is under way, and issues of jurisdiction, claim construction, validity, and infringement are expected to be addressed in the coming months, but the Company believes it has valid defenses and intends to vigorously defend itself against ON Semiconductor’s claims. The Company is unable to predict the outcome of legal proceedings with certainty, and there can be no assurance that Power Integrations will prevail in the above-mentioned unsettled litigations. These litigations, whether or not determined in Power Integrations’ favor or settled, will be costly and will divert the efforts and attention of the Company’s management and technical personnel from normal business operations, potentially causing a material adverse effect on the business, financial condition and operating results. Currently, the Company is not able to estimate a loss or a range of loss for the ongoing litigation disclosed above, however adverse determinations in litigation could result in monetary losses, the loss of proprietary rights, subject the Company to significant liabilities, require Power Integrations to seek licenses from third parties or prevent the Company from licensing the technology, any of which could have a material adverse effect on the Company’s business, financial condition and operating results. |
INDEMNIFICATIONS |
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Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
INDEMNIFICATIONS | INDEMNIFICATIONS: The Company sells products to its distributors under contracts, collectively referred to as Distributor Sales Agreements (“DSA”). Each DSA contains the relevant terms of the contractual arrangement with the distributor, and generally includes certain provisions for indemnifying the distributor against losses, expenses, and liabilities from damages that may be awarded against the distributor in the event the Company's products are found to infringe upon a patent, copyright, trademark, or other proprietary right of a third party (“Customer Indemnification”). The DSA generally limits the scope of and remedies for the Customer Indemnification obligations in a variety of industry-standard respects, including, but not limited to, limitations based on time and geography, and a right to replace an infringing product. The Company also, from time to time, has granted a specific indemnification right to individual customers. The Company believes its internal development processes and other policies and practices limit its exposure related to such indemnifications. In addition, the Company requires its employees to sign a proprietary information and inventions agreement, which assigns the rights to its employees' development work to the Company. To date, the Company has not had to reimburse any of its distributors or customers for any losses related to these indemnifications and no material claims were outstanding as of June 30, 2018. For several reasons, including the lack of prior indemnification claims and the lack of a monetary liability limit for certain infringement cases, the Company cannot determine the maximum amount of potential future payments, if any, related to such indemnifications. |
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Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance Sheet Related Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accounts Receivable | Accounts Receivable
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Schedule of Inventory, Current | Inventories
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Schedule of Prepaid Expenses and Other Current Assets | Prepaid Expenses and Other Current Assets
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Schedule Of Intangible Assets | Intangible Assets
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Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | The estimated future amortization expense related to finite-lived intangible assets at June 30, 2018, is as follows:
_______________
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Schedule of Accumulated Other Comprehensive Income (Loss) | Changes in accumulated other comprehensive loss for the three and six months ended June 30, 2018 and 2017, were as follows:
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FAIR VALUE MEASUREMENTS (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value of marketable securities and investments | The fair-value hierarchy of the Company's cash equivalents and marketable securities at June 30, 2018, and December 31, 2017, was as follows:
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MARKETABLE SECURITITES (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Marketable Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Available-for-sale Securities | Amortized cost and estimated fair market value of marketable securities classified as available-for-sale (excluding cash equivalents) at June 30, 2018, were as follows:
Amortized cost and estimated fair market value of marketable securities classified as available-for-sale (excluding cash equivalents) at December 31, 2017, were as follows:
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STOCK-BASED COMPENSATION (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based Compensation Expense | The following table summarizes the stock-based compensation expense recognized in accordance with ASC 718-10 for the three and six months ended June 30, 2018, and June 30, 2017:
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Summary of Option Activity Under the Plans | A summary of stock options outstanding as of June 30, 2018, and activity during the six months then ended, is presented below:
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Performance Based Awards (PSUs) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Share-based Compensation, Restricted Stock Units Award Activity | A summary of PSUs outstanding as of June 30, 2018, and activity during the six months then ended, is presented below:
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Long-Term Performance-Based Awards (PRSUs) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Share-based Compensation, Restricted Stock Units Award Activity | A summary of PRSUs outstanding as of June 30, 2018, and activity during the six months then ended, is presented below:
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Restricted Stock Units (RSUs) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Share-based Compensation, Restricted Stock Units Award Activity | A summary of RSUs outstanding as of June 30, 2018, and activity during the six months then ended, is presented below:
|
SIGNIFICANT CUSTOMERS AND GEOGRAPHIC NET REVENUES Concentration Risks (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sales Revenue, Goods, Net | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Concentration Risk [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedules of Concentration of Risk, by Risk Factor | The following table discloses this customer’s percentage of revenues for the respective periods:
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Accounts Receivable | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Concentration Risk [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedules of Concentration of Risk, by Risk Factor | The following table discloses this customer’s percentage of accounts receivable as of the respective dates:
|
SIGNIFICANT CUSTOMERS AND GEOGRAPHIC NET REVENUES Geographic Net Revenues (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Geographic Net Revenues [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from External Customers by Geographic Areas [Table Text Block] | Geographic net revenues, based on “bill to” customer locations, for the three and six months ended June 30, 2018, and June 30, 2017, were as follows:
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COMMON STOCK REPURCHASES AND CASH DIVIDENDS (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock Repurchases and Cash Dividends [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends Declared and Paid [Table Text Block] | For the three and six months ended June 30, 2018, and June 30, 2017, cash dividends declared and paid were as follows:
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EARNINGS PER SHARE (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings per share calculation | A summary of the earnings per share calculation is as follows:
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COMPONENTS OF THE COMPANY'S CONDENSED CONSOLIDATED BALANCE SHEETS Accounts Receivable (Details) - USD ($) $ in Thousands |
Jun. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Balance Sheet Related Disclosures [Abstract] | ||
Accounts receivable trade | $ 55,128 | $ 58,718 |
Allowances for ship and debit | (44,660) | (39,486) |
Allowances for stock rotation and rebate | (2,874) | (1,700) |
Allowances for doubtful accounts | (751) | (734) |
Total | $ 6,843 | $ 16,798 |
COMPONENTS OF THE COMPANY'S CONDENSED CONSOLIDATED BALANCE SHEETS Inventory (Details) - USD ($) $ in Thousands |
Jun. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Balance Sheet Related Disclosures [Abstract] | ||
Raw materials | $ 25,421 | $ 15,517 |
Work-in-process | 15,403 | 16,765 |
Finished goods | 28,000 | 24,805 |
Total | $ 68,824 | $ 57,087 |
COMPONENTS OF THE COMPANY'S CONDENSED CONSOLIDATED BALANCE SHEETS Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands |
Jun. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Balance Sheet Related Disclosures [Abstract] | ||
Prepaid legal fees | $ 151 | $ 213 |
Prepaid income tax | 864 | 460 |
Prepaid maintenance agreements | 1,695 | 856 |
Interest receivable | 690 | 1,195 |
Advance to suppliers | 2,546 | 1,211 |
Other | 4,673 | 3,823 |
Total | $ 10,619 | $ 7,758 |
COMPONENTS OF THE COMPANY'S CONDENSED CONSOLIDATED BALANCE SHEETS Future Amortization Expense (Details) $ in Thousands |
Jun. 30, 2018
USD ($)
|
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---|---|---|---|---|
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||||
2018 (remaining six months) | $ 2,599 | |||
2019 | 4,878 | |||
2020 | 3,653 | |||
2021 | 2,787 | |||
2022 | 1,709 | |||
Thereafter | 2,174 | |||
Total (1) | $ 17,800 | [1] | ||
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COMPONENTS OF THE COMPANY'S CONDENSED CONSOLIDATED BALANCE SHEETS Changes in Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
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Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||||
Beginning balance | $ (2,382) | $ (2,514) | $ (2,139) | $ (2,710) | ||||||||
Other comprehensive income before reclassifications | 263 | 46 | (12) | 193 | ||||||||
Amounts reclassified from accumulated other comprehensive loss | 31 | 49 | 63 | 98 | ||||||||
Net-current period other comprehensive income | 294 | 95 | 51 | 291 | ||||||||
Ending balance | (2,088) | (2,419) | (2,088) | (2,419) | ||||||||
Unrealized Gains and Losses on Marketable Securities | ||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||||
Beginning balance | (665) | (137) | (427) | (220) | ||||||||
Other comprehensive income before reclassifications | 226 | 15 | (12) | 98 | ||||||||
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | 0 | 0 | ||||||||
Net-current period other comprehensive income | 226 | 15 | (12) | 98 | ||||||||
Ending balance | (439) | (122) | (439) | (122) | ||||||||
Defined Benefit Pension Items | ||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||||
Beginning balance | (1,205) | (1,887) | (1,237) | (1,936) | ||||||||
Other comprehensive income before reclassifications | 0 | 0 | 0 | 0 | ||||||||
Amounts reclassified from accumulated other comprehensive loss | 31 | [1] | 49 | [1] | 63 | [2] | 98 | [2] | ||||
Net-current period other comprehensive income | 31 | 49 | 63 | 98 | ||||||||
Ending balance | (1,174) | (1,838) | (1,174) | (1,838) | ||||||||
Foreign Currency Items | ||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||||
Beginning balance | (512) | (490) | (475) | (554) | ||||||||
Other comprehensive income before reclassifications | 37 | 31 | 0 | 95 | ||||||||
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | 0 | 0 | ||||||||
Net-current period other comprehensive income | 37 | 31 | 0 | 95 | ||||||||
Ending balance | $ (475) | $ (459) | $ (475) | $ (459) | ||||||||
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FAIR VALUE MEASUREMENTS Fair Value Measurement (Details) - USD ($) $ in Thousands |
Jun. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Investments at Fair Value | $ 227,770 | $ 240,553 |
Corporate securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments at Fair Value | 89,265 | 179,951 |
Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments at Fair Value | 128,809 | 51,122 |
Government securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments at Fair Value | 9,229 | 9,285 |
Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments at Fair Value | 467 | 195 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Investments at Fair Value | 467 | 195 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments at Fair Value | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments at Fair Value | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Government securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments at Fair Value | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments at Fair Value | 467 | 195 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Investments at Fair Value | 227,303 | 240,358 |
Significant Other Observable Inputs (Level 2) | Corporate securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments at Fair Value | 89,265 | 179,951 |
Significant Other Observable Inputs (Level 2) | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments at Fair Value | 128,809 | 51,122 |
Significant Other Observable Inputs (Level 2) | Government securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments at Fair Value | 9,229 | 9,285 |
Significant Other Observable Inputs (Level 2) | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments at Fair Value | $ 0 | $ 0 |
MARKETABLE SECURITITES Marketable Securities (Details) - USD ($) $ in Thousands |
Jun. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 98,933 | $ 189,663 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (439) | (427) |
Estimated Fair Market Value | 98,494 | 189,236 |
Investments due in 3 months or less: | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 57,160 | 38,485 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (63) | (16) |
Estimated Fair Market Value | 57,097 | 38,469 |
Investments due in 4-12 months: | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 21,981 | 113,742 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (133) | (216) |
Estimated Fair Market Value | 21,848 | 113,526 |
Investments due in 12 months or greater: | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 19,792 | 37,436 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (243) | (195) |
Estimated Fair Market Value | 19,549 | 37,241 |
Corporate securities | Investments due in 3 months or less: | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 47,926 | 38,485 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (58) | (16) |
Estimated Fair Market Value | 47,868 | 38,469 |
Corporate securities | Investments due in 4-12 months: | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 21,981 | 104,440 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (133) | (199) |
Estimated Fair Market Value | 21,848 | 104,241 |
Corporate securities | Investments due in 12 months or greater: | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 19,792 | 37,436 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (243) | (195) |
Estimated Fair Market Value | 19,549 | 37,241 |
Government securities | Investments due in 3 months or less: | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 9,234 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | (5) | |
Estimated Fair Market Value | $ 9,229 | |
Government securities | Investments due in 4-12 months: | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 9,302 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | (17) | |
Estimated Fair Market Value | $ 9,285 |
STOCK-BASED COMPENSATION Stock-Based Compensation (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
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Stock-based compensation expense for stock options, stock awards and employee stock purchases included in operations: | ||||
Stock-Based Compensation Expense | $ 6,115 | $ 6,327 | $ 11,740 | $ 11,296 |
Performance Based Awards and Long Term Performance based Units | ||||
Stock-based compensation expense for stock options, stock awards and employee stock purchases included in operations: | ||||
Stock-Based Compensation Expense | 1,800 | 2,300 | 2,700 | 3,500 |
Restricted Stock Units (RSUs) | ||||
Stock-based compensation expense for stock options, stock awards and employee stock purchases included in operations: | ||||
Stock-Based Compensation Expense | 3,900 | 3,700 | 8,200 | 7,200 |
Employee Stock Purchase Plan | ||||
Stock-based compensation expense for stock options, stock awards and employee stock purchases included in operations: | ||||
Stock-Based Compensation Expense | 400 | 300 | 800 | 600 |
Cost of revenues | ||||
Stock-based compensation expense for stock options, stock awards and employee stock purchases included in operations: | ||||
Stock-Based Compensation Expense | 292 | 351 | 541 | 494 |
Research and development | ||||
Stock-based compensation expense for stock options, stock awards and employee stock purchases included in operations: | ||||
Stock-Based Compensation Expense | 2,271 | 2,351 | 4,110 | 3,985 |
Sales and marketing | ||||
Stock-based compensation expense for stock options, stock awards and employee stock purchases included in operations: | ||||
Stock-Based Compensation Expense | 1,126 | 1,189 | 2,402 | 2,286 |
General and administrative | ||||
Stock-based compensation expense for stock options, stock awards and employee stock purchases included in operations: | ||||
Stock-Based Compensation Expense | $ 2,426 | $ 2,436 | $ 4,687 | $ 4,531 |
STOCK-BASED COMPENSATION Option Activity (Details) - Stock Options $ / shares in Units, shares in Thousands, $ in Thousands |
6 Months Ended |
---|---|
Jun. 30, 2018
USD ($)
$ / shares
shares
| |
Option activity under the Plans | |
Outstanding at January 1, 2018 | 511 |
Granted | 0 |
Exercised | (126) |
Forfeited or expired | 0 |
Outstanding at June 30, 2018 | 385 |
Vested and exercisable at June 30, 2018 | 385 |
Weighted- Average Exercise Price (in dollars per share) | |
Outstanding at January 1, 2018 | $ / shares | $ 29.03 |
Granted | $ / shares | 0.00 |
Exercised | $ / shares | 23.29 |
Forfeited or expired | $ / shares | 0.00 |
Outstanding at June 30, 2018 | $ / shares | $ 30.92 |
Weighted-Average Remaining Contractual Term (In years) | |
Outstanding, weighted-average remaining contractual term at period end | 1 year 10 months 15 days |
Exercisable, weighted-average remaining contractual term, at period-end | 1 year 10 months 15 days |
Aggregate Intrinsic Value [Abstract] | |
Outstanding, aggregate intrinsic value at period end | $ | $ 16,220 |
Exercisable, aggregate intrinsic value, at period end | $ | $ 16,220 |
STOCK-BASED COMPENSATION Performance-based Awards and Restricted Stock Units (Details) $ / shares in Units, shares in Thousands, $ in Thousands |
6 Months Ended |
---|---|
Jun. 30, 2018
USD ($)
$ / shares
shares
| |
Performance Based Awards (PSUs) | |
Shares | |
Outstanding at January 1, 2018 | 79 |
Granted | 88 |
Vested | (79) |
Forfeited | 0 |
Outstanding at June 30, 2018 | 88 |
Outstanding and expected to vest at June 30, 2018 | 47 |
Weighted- Average Grant Date Fair Value Per Share (in dollars per share) | |
Outstanding at January 1, 2018 | $ / shares | $ 63.99 |
Granted | $ / shares | 62.82 |
Vested | $ / shares | 63.99 |
Forfeited | $ / shares | 0.00 |
Outstanding at June 30, 2018 | $ / shares | $ 62.82 |
Weighted-Average Remaining Contractual Term (In years) | |
Outstanding at June 30, 2018 | 6 months |
Outstanding and expected to vest at June 30, 2018 | 6 months |
Aggregate Intrinsic Value (In thousands) | |
Outstanding at June 30, 2018 | $ | $ 6,458 |
Outstanding and expected to vest at June 30, 2018 | $ | $ 3,398 |
Long-Term Performance-Based Awards (PRSUs) | |
Shares | |
Outstanding at January 1, 2018 | 184 |
Granted | 72 |
Vested | (38) |
Forfeited | 0 |
Outstanding at June 30, 2018 | 218 |
Outstanding and expected to vest at June 30, 2018 | 214 |
Weighted- Average Grant Date Fair Value Per Share (in dollars per share) | |
Outstanding at January 1, 2018 | $ / shares | $ 52.80 |
Granted | $ / shares | 59.90 |
Vested | $ / shares | 52.45 |
Forfeited | $ / shares | 0.00 |
Outstanding at June 30, 2018 | $ / shares | $ 55.20 |
Weighted-Average Remaining Contractual Term (In years) | |
Outstanding at June 30, 2018 | 1 year 5 months 25 days |
Outstanding and expected to vest at June 30, 2018 | 1 year 5 months 12 days |
Aggregate Intrinsic Value (In thousands) | |
Outstanding at June 30, 2018 | $ | $ 15,896 |
Outstanding and expected to vest at June 30, 2018 | $ | $ 15,637 |
Restricted Stock Units (RSUs) | |
Shares | |
Outstanding at January 1, 2018 | 948 |
Granted | 251 |
Vested | (282) |
Forfeited | (16) |
Outstanding at June 30, 2018 | 901 |
Outstanding and expected to vest at June 30, 2018 | 815 |
Weighted- Average Grant Date Fair Value Per Share (in dollars per share) | |
Outstanding at January 1, 2018 | $ / shares | $ 55.51 |
Granted | $ / shares | 62.31 |
Vested | $ / shares | 53.80 |
Forfeited | $ / shares | 58.66 |
Outstanding at June 30, 2018 | $ / shares | $ 57.88 |
Weighted-Average Remaining Contractual Term (In years) | |
Outstanding at June 30, 2018 | 2 years 2 months 22 days |
Outstanding and expected to vest at June 30, 2018 | 2 years 1 month 8 days |
Aggregate Intrinsic Value (In thousands) | |
Outstanding at June 30, 2018 | $ | $ 65,818 |
Outstanding and expected to vest at June 30, 2018 | $ | $ 59,552 |
Minimum [Member] | Performance Based Awards (PSUs) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Performance Based Awards Shares Released As Percentage Of Target Number | 0.00% |
Minimum [Member] | Long-Term Performance-Based Awards (PRSUs) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Performance Based Awards Shares Released As Percentage Of Target Number | 0.00% |
Maximum [Member] | Performance Based Awards (PSUs) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Performance Based Awards Shares Released As Percentage Of Target Number | 200.00% |
Maximum [Member] | Long-Term Performance-Based Awards (PRSUs) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Performance Based Awards Shares Released As Percentage Of Target Number | 200.00% |
SIGNIFICANT CUSTOMERS AND GEOGRAPHIC NET REVENUES Customer and Credit Risk Concentration (Details) $ in Thousands |
3 Months Ended | 6 Months Ended | 12 Months Ended | ||
---|---|---|---|---|---|
Jun. 30, 2018
USD ($)
Customer
|
Jun. 30, 2017
USD ($)
Customer
|
Jun. 30, 2018
USD ($)
Customer
|
Jun. 30, 2017
USD ($)
Customer
|
Dec. 31, 2017
Customer
|
|
Concentration Risk [Line Items] | |||||
NET REVENUES | $ | $ 109,482 | $ 107,563 | $ 212,563 | $ 212,251 | |
Distributors [Member] | |||||
Concentration Risk [Line Items] | |||||
NET REVENUES | $ | $ 83,000 | $ 85,500 | $ 162,100 | $ 166,100 | |
Sales Revenue, Goods, Net | Customer Concentration Risk [Member] | |||||
Concentration Risk [Line Items] | |||||
Number of major customers | 1 | 1 | 1 | 1 | |
Concentration risk percentage benchmark | 10.00% | 10.00% | 10.00% | 10.00% | |
Sales Revenue, Goods, Net | Customer Concentration Risk [Member] | Avnet | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage of total net revenues | 14.00% | 16.00% | 15.00% | 17.00% | |
Sales Revenue, Goods, Net | Customer Concentration Risk [Member] | Ten Customers | |||||
Concentration Risk [Line Items] | |||||
Number of major customers | 10 | 10 | 10 | 10 | |
Concentration risk, percentage of total net revenues | 59.00% | 57.00% | 58.00% | 57.00% | |
Accounts Receivable | Credit Concentration Risk [Member] | |||||
Concentration Risk [Line Items] | |||||
Number of major customers | 10 | 10 | 10 | ||
Concentration risk percentage benchmark for accounts receivable (more than) | 10.00% | 10.00% | 10.00% | ||
Accounts Receivable | Credit Concentration Risk [Member] | Avnet | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage benchmark | 21.00% | 21.00% | 18.00% | ||
Accounts Receivable | Credit Concentration Risk [Member] | Ten Customers | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage benchmark | 65.00% | 65.00% | 64.00% |
SIGNIFICANT CUSTOMERS AND GEOGRAPHIC NET REVENUES Geograpic Net Revenues (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Revenue by Geography | ||||
Total net revenues | $ 109,482 | $ 107,563 | $ 212,563 | $ 212,251 |
United States of America | ||||
Revenue by Geography | ||||
Total net revenues | 3,729 | 4,474 | 7,596 | 8,303 |
Hong Kong/China | ||||
Revenue by Geography | ||||
Total net revenues | 58,614 | 56,547 | 109,971 | 111,392 |
Taiwan | ||||
Revenue by Geography | ||||
Total net revenues | 12,914 | 10,762 | 24,800 | 23,796 |
Korea | ||||
Revenue by Geography | ||||
Total net revenues | 8,229 | 9,678 | 17,878 | 19,184 |
Western Europe (excluding Germany) | ||||
Revenue by Geography | ||||
Total net revenues | 11,476 | 12,751 | 25,068 | 24,722 |
Japan | ||||
Revenue by Geography | ||||
Total net revenues | 5,647 | 5,837 | 10,198 | 10,485 |
Germany | ||||
Revenue by Geography | ||||
Total net revenues | 3,705 | 2,915 | 7,009 | 5,711 |
Other | ||||
Revenue by Geography | ||||
Total net revenues | $ 5,168 | $ 4,599 | $ 10,043 | $ 8,658 |
COMMON STOCK REPURCHASES AND CASH DIVIDENDS Common Stock Repurchases (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions |
3 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
Jan. 30, 2018 |
Dec. 31, 2017 |
|
Common Stock Repurchases and Cash Dividends [Abstract] | ||||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 11.0 | $ 11.0 | $ 44.4 | |||
Stock Repurchase Program, Authorized Amount | $ 30.0 | |||||
Stock Repurchased During Period, Shares | 0.9 | |||||
Stock Repurchased During Period, Value | $ 63.4 | |||||
Common Stock, Dividends, Per Share, Cash Paid | $ 0.16 | $ 0.14 | $ 0.32 | $ 0.28 |
COMMON STOCK REPURCHASES AND CASH DIVIDENDS Cash Dividends (Details) $ / shares in Units, $ in Thousands |
1 Months Ended | 3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|---|
Jan. 31, 2018
Quarter
$ / shares
|
Jun. 30, 2018
USD ($)
$ / shares
|
Jun. 30, 2017
USD ($)
$ / shares
|
Jun. 30, 2018
USD ($)
$ / shares
|
Jun. 30, 2017
USD ($)
$ / shares
|
|
Dividends Declared and Paid [Line Items] | |||||
Common Stock, Dividends, Number of Quarterly Distributions Declared, Current Fiscal Year | Quarter | 4 | ||||
Common Stock, Dividends, Per Share, Declared, Current Fiscal Year, First Quarter | $ 0.16 | ||||
Common Stock, Dividends Per Share Declared, Current Fiscal Year, Second Quarter | 0.16 | ||||
Common Stock, Dividends Per Share Declared, Current Fiscal Year, Third Quarter | 0.16 | ||||
Common Stock, Dividends Per Share Declared, Current Fiscal Year, Fourth Quarter | $ 0.16 | ||||
Payments of Dividends | $ | $ 4,705 | $ 4,162 | $ 9,480 | $ 8,299 | |
Common Stock, Dividends, Per Share, Cash Paid | $ 0.16 | $ 0.14 | $ 0.32 | $ 0.28 |
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|||
Basic earnings per share: | ||||||
NET INCOME | $ 15,381 | $ 13,902 | $ 29,581 | $ 28,001 | ||
Weighted-average common shares | 29,505,000 | 29,720,000 | 29,651,000 | 29,589,000 | ||
Basic earnings per share | $ 0.52 | $ 0.47 | $ 1.00 | $ 0.95 | ||
Diluted earnings per share: | ||||||
NET INCOME | $ 15,381 | $ 13,902 | $ 29,581 | $ 28,001 | ||
Weighted-average common shares | 29,505,000 | 29,720,000 | 29,651,000 | 29,589,000 | ||
Effect of dilutive awards: | ||||||
Employee stock plans | 678,000 | 734,000 | 736,000 | 781,000 | ||
Diluted weighted-average common shares | 30,183,000 | 30,454,000 | 30,387,000 | 30,370,000 | ||
Diluted earnings per share | [1] | $ 0.51 | $ 0.46 | $ 0.97 | $ 0.92 | |
Stock awards excluded in the computation of diluted earnings per share | 0 | 0 | 0 | 0 | ||
|
PROVISION FOR INCOME TAXES (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | 12 Months Ended | ||
---|---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
Dec. 31, 2017 |
|
Income Tax Disclosure [Abstract] | |||||
Federal statutory tax rate | 21.00% | 35.00% | 21.00% | 35.00% | |
Provisional One Time Transition Tax Related to Tax Cuts and Jobs Act | $ 35.3 | ||||
Provisional Net Adjustment to Deferred Tax Assets and Liabilities Related to Tax Cuts and Jobs Act | $ 4.9 | ||||
Effective income tax rate | 6.80% | 5.20% | 5.50% | 0.30% |
LEGAL PROCEEDINGS AND CONTINGENCIES (Details) $ in Millions |
1 Months Ended | 6 Months Ended | ||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 27, 2016
patent
|
Nov. 01, 2016
patent
|
Aug. 11, 2016
patent
|
Apr. 01, 2016
patent
|
Oct. 21, 2015
patents
|
May 01, 2012
USD ($)
patents
|
Feb. 03, 2011
USD ($)
|
May 05, 2010
patents
|
Dec. 18, 2009
patents
|
Nov. 04, 2009
patents
patent
|
Dec. 22, 2008 |
Dec. 12, 2008
USD ($)
|
Nov. 07, 2008
patents
|
May 23, 2008
patents
|
Oct. 10, 2006
USD ($)
|
Oct. 20, 2004
patents
|
Nov. 30, 2017
USD ($)
|
Jan. 31, 2017
USD ($)
|
Dec. 31, 2015
USD ($)
|
Jun. 30, 2015
patent
|
Feb. 28, 2014
USD ($)
patents
patent
|
Apr. 30, 2012
patents
|
May 31, 2010
patents
|
Jun. 30, 2018 |
|
Pending Litigation [Member] | Patent Infringement Claim One | ||||||||||||||||||||||||
Gain and Loss Contingencies [Line Items] | ||||||||||||||||||||||||
Period for petition for further stay of permanent injunction | 90 days | |||||||||||||||||||||||
Pending Litigation [Member] | Patent Infringement Claim Two | ||||||||||||||||||||||||
Gain and Loss Contingencies [Line Items] | ||||||||||||||||||||||||
Gain Contingency, Patents Allegedly Infringed upon, Number | 3 | |||||||||||||||||||||||
Pending Litigation [Member] | Patent Infringement Claim Two Counterclaim [Member] | ||||||||||||||||||||||||
Gain and Loss Contingencies [Line Items] | ||||||||||||||||||||||||
Number of patents withdrawn from infringement claims | 1 | |||||||||||||||||||||||
Number of patents remaining in infringement claims | 2 | 2 | ||||||||||||||||||||||
Loss Contingency, Patents Allegedly Infringed, Number | 3 | |||||||||||||||||||||||
Potential impact on revenue by patent litigation, less than (as a percentage) | 0.50% | |||||||||||||||||||||||
Pending Litigation [Member] | Patent Infringement Claim Three Counterclaim [Member] | ||||||||||||||||||||||||
Gain and Loss Contingencies [Line Items] | ||||||||||||||||||||||||
Number of patents withdrawn from infringement claims | 1 | |||||||||||||||||||||||
Pending Litigation [Member] | Patent Infringement Claim Five | ||||||||||||||||||||||||
Gain and Loss Contingencies [Line Items] | ||||||||||||||||||||||||
Number of patents withdrawn from infringement claims | 1 | |||||||||||||||||||||||
Loss Contingency, Patents Allegedly Infringed, Number | 4 | |||||||||||||||||||||||
Pending Litigation [Member] | Patent Infringement Claim Six | ||||||||||||||||||||||||
Gain and Loss Contingencies [Line Items] | ||||||||||||||||||||||||
Gain Contingency, Patents Found Infringed upon, Number | 2 | |||||||||||||||||||||||
Pending Litigation [Member] | Patent Infringement Claim Seven | ||||||||||||||||||||||||
Gain and Loss Contingencies [Line Items] | ||||||||||||||||||||||||
Loss Contingency, Patents Allegedly Infringed, Number | patent | 1 | |||||||||||||||||||||||
Pending Litigation [Member] | Patent Infringement Claim Eight [Member] | ||||||||||||||||||||||||
Gain and Loss Contingencies [Line Items] | ||||||||||||||||||||||||
Loss Contingency, Patents Allegedly Infringed, Number | patent | 6 | |||||||||||||||||||||||
Pending Litigation [Member] | Patent Infringement Claim Nine [Member] | ||||||||||||||||||||||||
Gain and Loss Contingencies [Line Items] | ||||||||||||||||||||||||
Gain Contingency, Patents Allegedly Infringed upon, Number | patent | 6 | |||||||||||||||||||||||
Pending Litigation [Member] | Patent Infringement Claim Ten [Member] | ||||||||||||||||||||||||
Gain and Loss Contingencies [Line Items] | ||||||||||||||||||||||||
Loss Contingency, Patents Allegedly Infringed, Number | patent | 6 | |||||||||||||||||||||||
Pending Litigation [Member] | Patent Infringement Claim Eleven [Domain] | ||||||||||||||||||||||||
Gain and Loss Contingencies [Line Items] | ||||||||||||||||||||||||
Damages sought after the Company | $ | $ 1.0 | |||||||||||||||||||||||
Counterclaims [Member] | Patent Infringement Claim Three Counterclaim [Member] | ||||||||||||||||||||||||
Gain and Loss Contingencies [Line Items] | ||||||||||||||||||||||||
Loss Contingency, Patents Allegedly Infringed, Number | 2 | 1 | ||||||||||||||||||||||
Counterclaims [Member] | Patent Infringement Claim Five | ||||||||||||||||||||||||
Gain and Loss Contingencies [Line Items] | ||||||||||||||||||||||||
Gain Contingency, Patents Allegedly Infringed upon, Number | 5 | |||||||||||||||||||||||
Loss Contingency, Damages Awarded, Value | $ | $ 2.4 | |||||||||||||||||||||||
Judicial Ruling [Member] | Patent Infringement Claim Two | ||||||||||||||||||||||||
Gain and Loss Contingencies [Line Items] | ||||||||||||||||||||||||
Gain Contingency, Patents Found Infringed upon, Number | 2 | |||||||||||||||||||||||
Judicial Ruling [Member] | Patent Infringement Claim Two Counterclaim [Member] | ||||||||||||||||||||||||
Gain and Loss Contingencies [Line Items] | ||||||||||||||||||||||||
Number of Patents Not Infringed | 1 | |||||||||||||||||||||||
Judicial Ruling [Member] | Patent Infringement Claim Five | ||||||||||||||||||||||||
Gain and Loss Contingencies [Line Items] | ||||||||||||||||||||||||
Gain Contingency, Patents Found Infringed upon, Number | patent | 1 | |||||||||||||||||||||||
Positive Outcome of Litigation [Member] | Patent Infringement Claim One | ||||||||||||||||||||||||
Gain and Loss Contingencies [Line Items] | ||||||||||||||||||||||||
Gain Contingency, Patents Found Infringed upon, Number | 4 | |||||||||||||||||||||||
Litigation Settlement, Amount Awarded from Other Party | $ | $ 12.9 | |||||||||||||||||||||||
Loss Contingency, Damages Awarded, Value | $ | $ 6.1 | $ 34.0 | ||||||||||||||||||||||
Positive Outcome of Litigation [Member] | Patent Infringement Claim Three [Member] | ||||||||||||||||||||||||
Gain and Loss Contingencies [Line Items] | ||||||||||||||||||||||||
Litigation Settlement, Amount Awarded from Other Party | $ | $ 146.5 | $ 139.8 | $ 105.0 | |||||||||||||||||||||
Number of patents in infringement case deemed unenforceable by Fairchild | patent | 1 | 1 | ||||||||||||||||||||||
Gain Contingency, Patents Allegedly Infringed upon, Number | 2 | |||||||||||||||||||||||
Loss Contingency, Patents Allegedly Infringed, Number | 2 |