View Filing Data

$ (9,077)

$ (3,913)

$ (3,560)

Weighted average shares outstanding - basic and diluted

$ (0.24)

$ (0.11)

37,851

35,959

31,507

[1]	Includes deferred revenue fair value adjustment — 52 93
[2]	Includes inventory step-up and backlog amortization 12 475 1,965 Amortization of acquired intangible assets 1,192 1,192 497 Stock-based compensation 367 324 243
[3]	Includes stock-based compensation 2,545 2,466 1,648
[4]	Includes acquisition and integration related costs — — 2,460 Stock-based compensation 3,737 2,893 2,352 Amortization of acquired intangible assets 312 404 168
[5]	Includes fair value adjustment on convertible debt conversion option — — 743 Discount accretion on convertible debt fair value — 69 196 Gain on debt extinguishment — (1,272) (29)
[6]	Includes benefit related to tax reform — — (343)

Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Inventory step-up and backlog amortization	$ 12	$ 475	$ 1,965
Amortization of acquired intangible assets	1,504
Gain on debt extinguishment	0	1,272	29
Discount accretion on convertible debt fair value	0	69	196
Fair value adjustment on convertible debt conversion option	0	0	743
Revenue
Deferred revenue fair value adjustment	0	52	93
Cost of revenue
Amortization of acquired intangible assets	1,192	1,192	497
Stock-based compensation	367	324	243
Inventory step-up and backlog amortization	12	475	1,965
Amortization of acquired intangible assets	1,192
Research and development
Stock-based compensation	2,545	2,466	1,648
Selling, general and administrative
Stock-based compensation	3,737	2,893	2,352
Amortization of acquired intangible assets	312	404	168
Acquisition and integration related costs	0	0	2,460
Interest expense and other, net
Gain on debt extinguishment	0	(1,272)	(29)
Discount accretion on convertible debt fair value	0	69	196
Fair value adjustment on convertible debt conversion option	0	0	743
Provision for income taxes
Includes benefit related to tax reform	$ 0	$ 0	$ (343)

Consolidated Statement of Comprehensive Loss - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Net loss	$ (9,077)	$ (3,913)	$ (3,560)
Other comprehensive income (loss):
Foreign pension adjustment	(7)	(6)	14
Unrealized gain (loss) on available-for-sale securities	3	(2)	0
Tax effect of foreign pension adjustment	1	3	(4)
Total comprehensive loss	$ (9,080)	$ (3,918)	$ (3,550)

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Cash flows from operating activities:
Net loss	$ (9,077)	$ (3,913)	$ (3,560)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Stock-based compensation	6,649	5,683	4,243
Gain on sale of patents	(3,905)	0	0
Depreciation and amortization	3,837	3,555	3,577
Amortization of acquired intangible assets	1,504	1,596	665
Reversal of uncertain tax positions	(124)	(19)	(191)
Accretion on short-term marketable securities	(94)	(44)	0
Deferred income tax (benefit) expense	45	(62)	4
Inventory step-up and backlog amortization	12	475	1,965
Gain on debt extinguishment	0	(1,272)	(29)
Discount accretion on convertible debt fair value	0	69	196
Fair value adjustment on convertible debt conversion option	0	0	743
Other	(3)	11	71
Changes in operating assets and liabilities:
Accounts receivable, net	(3,933)	(2,342)	(554)
Inventories	(2,459)	(531)	1,378
Prepaid expenses and other current and long-term assets, net	2,172	110	650
Accounts payable	(1,304)	675	(2,063)
Accrued current and long-term liabilities	(3,686)	(2,890)	4,206
Income taxes payable	(14)	(146)	898
Net cash provided by (used in) operating activities	(10,380)	955	12,199
Cash flows from investing activities:
Purchases of available-for-sale marketable securities	(10,856)
Purchases of available-for-sale marketable securities		(8,177)	0
Proceeds from sales and maturities of marketable securities	10,050	2,150	0
Proceeds from sale of patents	4,250	0	0
Purchases of property and equipment	(2,629)	(2,096)	(2,484)
Purchases of licensed technology	(521)	0	0
Payment associated with sale of patents	(345)	0	0
Cash received in connection with acquisition of business	0	0	1,901
Net cash used in investing activities	(51)	(8,123)	(583)
Cash flows from financing activities:
Payments on asset financings	(826)	(1,874)	(1,673)
Proceeds from issuances of common stock under employee equity incentive plans	570	1,683	3,004
Payments on convertible debt	0	(2,220)	(1,000)
Payments on line of credit related to acquisition	0	0	(4,046)
Net cash used in financing activities	(256)	(2,411)	(3,715)
Net increase (decrease) in cash and cash equivalents	(10,687)	(9,579)	7,901
Cash and cash equivalents, beginning of period	17,944	27,523	19,622
Cash and cash equivalents, end of period	7,257	17,944	27,523
Supplemental disclosure of cash flow information:
Cash paid for income taxes, net of refunds received	547	657	160
Cash paid during the year for interest	142	501	418
Non-cash investing and financing activities:
Acquisitions of property and equipment and other assets under extended payment terms	934	501	3,558
Value of debt converted into shares	0	2,646	329
Value of shares issued in acquisition	$ 0	$ 0	$ 16,975

Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands	Total	Common Stock	Accumulated Other Comprehensive Income (Loss)	Accumulated Deficit
Beginning balance at Dec. 31, 2016	$ 22,295	$ 394,296	$ 10	$ (372,011)
Beginning balance, shares at Dec. 31, 2016		28,885,795
Increase (Decrease) in Shareholders' Equity [Roll Forward]
Stock issued under employee equity incentive plans	3,004	$ 3,004
Stock issued under employee equity incentive plans, shares		2,001,782
Stock-based compensation expense	4,243	$ 4,243
Other	0	$ 44		44
Issuance of stock for acquisition, shares		3,708,262
Issuance of stock for acquisition	16,975	$ 16,975	0	0
Debt conversion, shares		55,248
Debt conversion	329	$ 329	0	0
Net loss	(3,560)			(3,560)
Foreign pension adjustment, net of tax	10		10
Ending balance at Dec. 31, 2017	43,296	$ 418,891	20	(375,615)
Ending balance, shares at Dec. 31, 2017		34,651,087.000
Increase (Decrease) in Shareholders' Equity [Roll Forward]
Stock issued under employee equity incentive plans	1,683	$ 1,683
Stock issued under employee equity incentive plans, shares		1,851,018
Stock-based compensation expense	5,683	$ 5,683
Unrealized gain (loss) on available-for-sale securities	(2)	$ 0	(2)
Debt conversion, shares		435,353
Debt conversion	2,646	$ 2,646
Net loss	(3,913)			(3,913)
Foreign pension adjustment, net of tax	(3)		(3)
Ending balance at Dec. 31, 2018	49,390	$ 428,903	15	(379,528)
Ending balance, shares at Dec. 31, 2018		36,937,458
Increase (Decrease) in Shareholders' Equity [Roll Forward]
Stock issued under employee equity incentive plans	570	$ 570
Stock issued under employee equity incentive plans, shares		1,497,030
Stock-based compensation expense	6,649	$ 6,649
Unrealized gain (loss) on available-for-sale securities	3		3
Net loss	(9,077)			(9,077)
Foreign pension adjustment, net of tax	(6)		(6)
Ending balance at Dec. 31, 2019	$ 47,529	$ 436,122	$ 12	$ (388,605)
Ending balance, shares at Dec. 31, 2019		38,434,488

Consolidated Statements of Shareholders' Equity (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Tax effect of foreign pension adjustment	$ (1)	$ (3)	$ 4

Basis of Presentation

12 Months Ended

Dec. 31, 2019

Basis of Presentation

BASIS OF PRESENTATION

Nature of Business

Pixelworks is a leading provider of high-performance and power-efficient visual processing solutions that bridge the gap between video content formats and rapidly advancing display capabilities. We develop and market semiconductor and software solutions that enable consistently high-quality, authentic viewing experiences in a wide variety of applications from cinema to smartphones. Our primary target markets include Mobile (smartphone, gaming and tablet), Home Entertainment (TV, personal video recorder ("PVR"), over-the-air ("OTA") and projector), Content (creation, remastering and delivery), and Business & Education (projector).

As of December 31, 2019, we had an intellectual property portfolio of 347 patents related to the visual display of digital image data. We focus our research and development efforts on developing video algorithms that improve quality, and architectures that reduce system power, cost, bandwidth and increase overall system performance and device functionality. We seek to expand our technology portfolio through internal development and co-development with business partners, and we continually evaluate acquisition opportunities and other ways to leverage our technology into other high-value markets.

Pixelworks was founded in 1997 and is incorporated under the laws of the state of Oregon. On August 2, 2017, we acquired ViXS Systems, Inc., a corporation organized in Canada ("ViXS").

Our consolidated financial statements include the accounts of Pixelworks and its wholly-owned subsidiaries. Intercompany accounts and transactions have been eliminated. All foreign subsidiaries use the U.S. dollar as the functional currency, and as a result, transaction gains and losses are included in the consolidated statements of operations. Transaction losses were $270, $178 and $172 for the years ended December 31, 2019, 2018 and 2017, respectively.

Use of Estimates

The preparation of condensed consolidated financial statements in conformity with U.S. generally accepted accounting principles ("U.S. GAAP") requires us to make estimates and judgments that affect amounts reported in the financial statements and accompanying notes. Our significant estimates and judgments include those related to revenue recognition, valuation of excess and obsolete inventory, lives and recoverability of equipment and other long-lived assets, valuation of goodwill, stock-based compensation and income taxes. The actual results experienced could differ materially from our estimates.

Immaterial Error Correction

During the second quarter of 2019, the Company determined that the statute of limitations had previously expired related to a portion of a liability that had been accrued in prior periods. Management evaluated the materiality of the error, both quantitatively and qualitatively, and concluded that it was not material to the financial statements of any period presented. The Company has revised beginning retained earnings and corrected the error in the accompanying prior period financial information in these condensed consolidated financial statements.

The following table sets forth the effect this immaterial error correction had on the Company’s condensed consolidated statements of operations for the years ended December 31, 2018 and 2017:



	Year Ended								Year Ended
	December 31, 2018								December 31, 2017
	Previously Reported			Correction		Revised			Previously Reported			Correction		Revised
Interest income (expense) and other, net	$	647		$	708	$	1,355		$	(1,647	)	$	613	$	(1,034	)
Total other income (expense), net	647			708		1,355			(1,647		)	613		(1,034		)
Loss before income taxes	(4,173		)	708		(3,465		)	(3,680		)	613		(3,067		)
Net loss	(4,621		)	708		(3,913		)	(4,173		)	613		(3,560		)
Net loss per share - basic and diluted	$	(0.13	)	$	0.02	$	(0.11	)	$	(0.13	)	$	0.02	$	(0.11	)

The following table sets forth the effect this immaterial error correction had on the Company's condensed consolidated balance sheet as of December 31, 2018:



	December 31, 2018
	Previously Reported			Correction			Revised
Accrued liabilities and current portion of long-term liabilities	$	14,823		$	(4,567	)	$	10,256
Total current liabilities	17,202			(4,567		)	12,635
Total liabilities	20,518			(4,567		)	15,951
Accumulated deficit	(384,095		)	4,567			(379,528		)
Total shareholders’ equity	44,823			4,567			49,390

The following table sets forth the effect this immaterial error correction had on the Company's condensed consolidated statement of cash flows for the years ended December 31, 2018 and 2017:



	Year Ended						Year Ended
	December 31, 2018						December 31, 2017
	Previously Reported		Correction		Revised		Previously Reported		Correction		Revised
Operating activities:
Net loss	(4,621	)	708		(3,913	)	(4,173	)	613		(3,560	)
Change in accrued current and long-term liabilities	(2,182	)	(708	)	(2,890	)	4,819		(613	)	4,206
Net cash provided by operating activities	955		—		955		12,199		—		12,199

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2019

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Cash and Cash Equivalents

We classify all cash and highly liquid investments with original maturities of three months or less at the date of purchase as cash and cash equivalents. Cash equivalents, which as of December 31, 2019 consisted of U.S. denominated money market funds and as of December 31, 2018 consisted of U.S. denominated money market funds, commercial paper and corporate debt securities totaled $1,307 and $13,887 as of December 31, 2019 and 2018, respectively.

Marketable Securities

Our investments in marketable securities are classified as available-for-sale. Available-for-sale securities are stated at fair value based on quoted market prices with unrealized holding gains or losses, net of tax, included in accumulated other comprehensive income (loss), a component of shareholders’ equity. The cost of securities sold is based on the specific identification method.

Accounts Receivable

Accounts receivable are recorded at invoiced amount and do not bear interest when recorded or accrue interest when past due. We maintain an allowance for doubtful accounts for estimated losses that may result from the inability of our customers to make required payments. At the end of each reporting period, we estimate the allowance for doubtful accounts based on an account-by-account risk analysis of outstanding receivable balances. The determination to write-off specific accounts receivable balances is made based on the likelihood of collection and past due status. Past due status is based on invoice date and terms specific to each customer.

Inventories

Inventories consist of finished goods and work-in-process, and are stated at the lower of standard cost (which approximates actual cost on a first-in, first-out basis) or market (net realizable value).

Property and Equipment

Property and equipment are stated at cost. Depreciation and amortization is calculated on a straight-line basis over the estimated useful life of the assets which are generally as follows:



	Software	Lesser of 3 years or contractual license term
	Equipment, furniture and fixtures	2 years
	Tooling	2 to 4 years
	Leasehold improvements	Lesser of lease term or estimated useful life

The cost of property and equipment repairs and maintenance is expensed as incurred.

Licensed Technology

We have capitalized licensed technology assets in other long-term assets. These assets are stated at cost and are amortized on a straight-line basis over the term of the license or the estimated life of the asset, if the license is not contractually limited, which is generally two to five years.

Useful Lives and Recoverability of Equipment and Other Long-Lived Assets

We evaluate the remaining useful life and recoverability of equipment and other assets, including identifiable intangible assets, whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. If there is an indicator of impairment, we prepare an estimate of future, undiscounted cash flows expected to result from the use of each asset and its eventual disposition. If these cash flows are less than the carrying value of the asset, we adjust the carrying amount of the asset to its estimated fair value. We have concluded that the carrying value of our long-lived assets is recoverable as of December 31, 2019.

Goodwill

Goodwill is not amortized, rather tested, at least annually, for impairment at a reporting unit level. Impairment of goodwill is the condition that exists when the carrying amount of a reporting unit that includes goodwill exceeds its fair value. A goodwill impairment loss is recognized for the amount that the carrying amount of the reporting unit, including goodwill, exceeds its fair value, limited to the total amount of goodwill allocated to that reporting unit. If the fair value of a reporting unit exceeds the carrying amount, goodwill of the reporting unit is not considered impaired.

We evaluate impairment using the guidance set forth in FASB Accounting Standards Update No. 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment ("ASU 2017-04") which states that an entity may first assess qualitative factors to determine whether it is necessary to perform the quantitative goodwill impairment test. If determined to be necessary, the quantitative impairment test shall be used to identify goodwill impairment and measure the amount of goodwill impairment loss to be recognized. An entity has an unconditional option to bypass the qualitative assessment for any reporting unit in any period and proceed directly to the quantitative goodwill impairment test. Accordingly, we have elected to bypass the qualitative assessment and proceed directly to the quantitative goodwill impairment test. We tested goodwill for impairment under the quantitative goodwill impairment test during the fourth quarter of 2019 and concluded that goodwill was not impaired.

Warranty Program

We warrant that our products will be free from defects in material and workmanship for a period of twelve months from delivery. Warranty repairs are guaranteed for the remainder of the original warranty period. Our warranty is limited to repairing or replacing products, or refunding the purchase price. At the end of each reporting period, we estimate a reserve for warranty returns based on historical experience and knowledge of any applicable events or transactions. The reserve for warranty returns is included in accrued liabilities in our consolidated balance sheets.

Stock-Based Compensation

We currently sponsor a stock incentive plan that allows for issuance of employee stock options and restricted stock awards, including restricted stock units. We also have an employee stock purchase plan for all eligible employees. The fair value of share-based payment awards is expensed straight-line over the requisite service period, which is generally the vesting period, for the entire award. Additionally, any modification of an award that increases its fair value will require us to recognize additional expense.

The fair value of our stock option grants and purchase rights under our employee stock purchase plan are estimated as of the grant date using the Black-Scholes option pricing model which is affected by our estimates of the risk free interest rate, our expected dividend yield, expected term and the expected share price volatility of our common shares over the expected term. The fair value of our restricted stock awards are based on the market value of our stock on the date of grant.

Research and Development

Costs associated with research and development activities are expensed as incurred, except for items with alternate future uses which are capitalized and depreciated over their estimated useful lives.

On occasion, we enter into co-development arrangements with current or prospective customers to defray a portion of the research and development expenses we expect to incur in connection with our development of an IC product. As amounts become due and payable, they are offset against research and development expense on a pro-rata basis.

Income Taxes

We account for income taxes under the asset and liability method. This approach requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between financial statement carrying amounts and tax bases of assets and liabilities. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. We establish a valuation allowance to reduce deferred tax assets if it is "more likely than not" that a portion or all of the asset will not be realized in future tax returns.

An uncertain tax position represents treatment of a tax position taken in a filed tax return, or planned to be taken in a future tax return, that has not been reflected in measuring income tax expense for financial reporting purposes. Until these positions are sustained by the taxing authorities, we do not recognize the tax benefits resulting from such positions and report the tax effects for uncertain tax positions in our consolidated balance sheets.

Risks and Uncertainties

Concentration of Suppliers

We do not own or operate a semiconductor fabrication facility and do not have the resources to manufacture our products internally. We rely on a limited number of foundries and assembly and test vendors to produce all of our wafers and for completion of finished products. We do not have any long-term agreements with any of these suppliers. In light of these dependencies, it is reasonably possible that failure to perform by one of these suppliers could have a severe impact on our results of operations. Additionally, the concentration of these vendors within Taiwan, and the People’s Republic of China increases our risk of supply disruption due to natural disasters, economic instability, political unrest or other regional disturbances.

Risk of Technological Change

The markets in which we compete, or seek to compete, are subject to rapid technological change, frequent new product introductions, changing customer requirements for new products and features, and evolving industry standards. The introduction of new technologies and the emergence of new industry standards could render our products less desirable or obsolete, which could harm our business.

Concentrations of Credit Risk

Financial instruments that potentially subject us to concentrations of credit risk consist of cash equivalents and accounts receivable. We limit our exposure to credit risk associated with cash equivalent balances by holding our funds in high quality, highly liquid money market accounts. We limit our exposure to credit risk associated with accounts receivable by carefully evaluating creditworthiness before offering terms to customers.

Recent Accounting Pronouncements

In November 2018, the FASB issued Accounting Standards Update No. 2018-18, Collaborative Arrangements: Clarifying the Interaction Between Topic 808 and Topic 606 ("ASU 2018-18"). ASU 2018-18 requires transactions in collaborative arrangements to be accounted for under ASC 606 if the counterparty is a customer for a good or service (or bundle of goods and services) that is a distinct unit of account. The amendment also precludes entities from presenting consideration from transactions with a collaborator that is not a customer together with revenue recognized from contracts with customers. ASU 2018-18 is effective for us on January 1, 2020. We are currently assessing the impact of this update on our financial position, results of operations and cash flows.

In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases (Topic 842) ("ASC 842"), which requires lessees to recognize leases on the balance sheet and disclose key information about leasing arrangements. Topic 842 was subsequently amended by ASU No. 2018-01, Land Easement Practical Expedient for Transition to Topic 842; ASU No. 2018-10, Codification Improvements to Topic 842; and ASU No. 2018-11, Targeted Improvements. The new standard establishes a right-of-use model ("ROU") that requires a lessee to recognize a ROU asset and lease liability on the balance sheet for all leases with a term longer than 12 months. Leases are classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the income statement.

We adopted the new standard on January 1, 2019 and used the effective date as our date of initial application under the modified retrospective approach. Under the effective date method, financial information and disclosures prior to January 1, 2019 are not required to be restated.

We elected the “practical expedient package,” which permits us not to reassess under the new standard our prior conclusions about lease identification, lease classification and initial direct costs. We did not elect the use-of-hindsight or the practical expedient pertaining to land easements; the latter not being applicable to us. We elected the short-term lease recognition exemption for all leases that qualify. This means, for those leases that qualify, we will not recognize ROU assets or lease liabilities, and this includes not recognizing ROU assets or lease liabilities for existing short-term leases of those assets in transition. We also elected the practical expedient to not separate lease and non-lease components for all of our leases.

Upon adoption, we recognized operating lease liabilities of $6,847 based on the present value of the remaining minimum rental payments under current leasing standards for existing operating leases. We also recognized ROU assets of $6,224 which represents the operating lease liability adjusted for accrued rent and cease-use liabilities. The adoption did not have a material impact on our condensed consolidated statements of operations or cash flows. The most significant impact relates to (1) the recognition of new ROU assets and lease liabilities on our balance sheet for our office operating leases; and (2) providing significant new disclosures about our leasing activities.

Acquisition

12 Months Ended

Dec. 31, 2019

Business Combinations [Abstract]

Acquisition

ACQUISITION

On August 2, 2017, we acquired 100% of the outstanding shares of ViXS (the "Acquisition"). We issued 0.04836 of a share of our common stock in exchange for each share of ViXS common stock outstanding and for certain ViXS restricted stock units which were vested simultaneously with closing.

ViXS designs and develops advanced video processing semiconductor solutions. The Acquisition added families of video processor components for consumer applications and cloud, video delivery and infrastructure markets, along with a companion family of networking components to our solutions. These factors contributed to establishing the purchase price and supported the premium paid over the fair value of the tangible and intangible assets acquired.

The aggregate purchase price for ViXS was $16,975 and consisted of $16,316 related to the issuance of 3,586,020 shares of our common stock plus $659 related to: (i) the issuance of 202,043 unvested restricted stock units, in exchange for ViXS’ unvested restricted stock units, plus (ii) the issuance of 122,242 shares to a holder of ViXS restricted stock units which were vested simultaneously with closing. The purchase price calculations were based on the closing price of our common stock on the day the transaction closed.

The ViXS chief executive officer (the "CEO") was terminated in connection with the closing of the transaction. As a result, we recognized expense of $1,115, which consisted of $800 related to a severance agreement, payable over 24 months, and $315 related to accelerated vesting of the CEO’s ViXS restricted stock units which were exchanged for Pixelworks common stock at closing. Such amount was included within selling, general and administrative within our consolidated statement of operations for the year ended December 31, 2017.

The purchase price was allocated to the assets and liabilities based on fair values as follows:



Purchase price			$	16,975
Less net liabilities assumed:
Assets acquired:
Cash and cash equivalents	1,901
Accounts receivable	968
Inventories	3,175
Property and equipment	964
Other assets	1,562
Identifiable intangible assets	6,730
Liabilities assumed:
Accounts payable	(1,736	)
Accrued liabilities and other current liabilities	(2,832	)
Revolving bank loan	(4,046	)
Convertible debt	(6,485	)
Other noncurrent liabilities	(1,633	)	(1,432		)
Goodwill			$	18,407

The allocation of the purchase price was based upon various estimates and assumptions. Below are the significant valuations that were performed in connection with the Acquisition:


•	We performed a valuation of the convertible debt. We assigned $4,762 of the purchase price to convertible debt, consisting of the contractual amount of $6,068 offset by a debt discount of $1,306, and $1,723 to the embedded conversion feature. No other features of the debt were assigned value at the Acquisition date.


•	We performed a valuation of acquired intangible assets. We assigned $5,050 of the purchase price to acquired developed technology with estimated lives of 5 years or less, $1,270 to customer relationships with estimated lives of 3 years or less, and $410 to backlog and trademark with estimated lives of 2 years or less. ViXS had no in-process research and development.


•	We recorded an inventory step-up of $2,191 to record inventory at fair value. We recognized $12 in 2019, $424 in 2018 and $1,755 in 2017 within cost of goods sold as the inventory was sold. The inventory step-up was fully recognized as of December 31, 2019.

We recorded gross deferred tax assets of $62,992, subject to a valuation allowance of $62,972 to recognize book basis and tax basis differences of various balance sheet assets and liabilities and corporate tax attributes acquired.

The goodwill resulting from this transaction is not deductible for tax purposes.

The results of ViXS’ operations are included in our consolidated statement of operations beginning on the date of acquisition. ViXS revenue of $4,489 and net loss of $(6,729), which included $1,920 in restructuring charges, (see Note 7: "Restructurings") and $3,633 of non-cash amortization of acquisition and debt related items are included in our consolidated statement of operations for the year ended December 31, 2017.

Balance Sheet Components

12 Months Ended

Dec. 31, 2019

Balance Sheet Related Disclosures [Abstract]

Balance Sheet Components

BALANCE SHEET COMPONENTS

Accounts Receivable, Net

Accounts receivable consists of the following:



	December 31,
	2019			2018
Accounts receivable, gross	$	10,938		$	7,003
Allowance for doubtful accounts	(23		)	(21		)
Accounts receivable, net	$	10,915		$	6,982

The following is a summary of the change in our allowance for doubtful accounts:



	Year Ended December 31,
	2019		2018			2017
Balance at beginning of year	$	21	$	47		$	32
Additions charged (reductions credited)	2		(26		)	15
Balance at end of year	$	23	$	21		$	47

Inventories

Inventories consist of the following:



	December 31,
	2019		2018
Finished goods	$	1,630	$	1,577
Work-in-process	3,771		1,377
Inventories	$	5,401	$	2,954

We recorded inventory write-downs of $137, $121 and $349 for the years ended December 31, 2019, 2018 and 2017, respectively. The inventory write-downs were for lower of cost or market and excess and obsolescence exposure. The inventory write-downs were offset by sales of previously written-down inventory of $35, $152 and $165 for the years ended December 31, 2019, 2018 and 2017, respectively.

Prepaid Expenses and Other Current Assets

Prepaid expenses and other current assets consist of current prepaid expenses, deposits, income taxes receivable and other receivables.

Property and Equipment, Net

Property and equipment consists of the following:



	December 31,
	2019			2018
Equipment, furniture and fixtures	$	8,494		$	9,536
Tooling	6,552			6,552
Software	6,428			5,444
Leasehold improvements	1,392			1,350
	22,866			22,882
Accumulated depreciation and amortization	(18,258		)	(16,731		)
Property and equipment, net	$	4,608		$	6,151

Software amortization was $1,320, $1,407 and $1,501 for the years ended December 31, 2019, 2018 and 2017, respectively. Depreciation and amortization expense for equipment, furniture, fixtures, tooling and leasehold improvements was $2,300, $2,148 and $2,076 for the years ended December 31, 2019, 2018 and 2017, respectively.

Other Assets, Net

Other assets consist primarily of deposits, deferred tax assets and licensed technology. Amortization of licensed technology was $217 for the year ended December 31, 2019 and $0 for each of the years ended December 31, 2018 and 2017.

Acquired Intangible Assets, Net

In connection with the Acquisition, we recorded certain identifiable intangible assets. See Note 3: “Acquisition” for additional information. Acquired intangible assets resulting from this transaction consist of the following:



	December 31,
	2019			2018
Developed technology	$	5,050		$	5,050
Customer relationships	1,270			1,270
Backlog and tradename	410			410
	6,730			6,730
Less: accumulated amortization	(4,026		)	(2,522		)
Acquired intangible assets, net	$	2,704		$	4,208

Intangible assets are amortized over the following estimated useful lives: developed technology and customer relationships, 3 to 5 years; tradename and backlog, 6 to 18 months. Backlog was fully amortized as of December 31, 2018 and tradename was fully amortized as of December 31, 2019.

Amortization expense for intangible assets was $1,504 for the year ended December 31, 2019, with $1,192 included in cost of revenue and $312 included in selling, general and administrative on the consolidated statement of operations. As of December 31, 2019, future estimated amortization expense is as follows:



Years ending December 31:
2020	1,497
2021	1,117
2022	90
	$	2,704

Acquired intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Conditions that would trigger an impairment assessment include, but are not limited to, past, current, or expected cash flow or operating losses associated with the asset. There were no such triggering events requiring an impairment assessment of other intangible assets as of December 31, 2019.

Goodwill

Goodwill resulted from the Acquisition, whereby we recorded goodwill of $18,407. See Note 3: "Acquisition" for information concerning the acquisition. See Note 2: "Summary of Significant Accounting Policies" for information on our assessment of goodwill impairment.

Accrued Liabilities and Current Portion of Long-Term Liabilities

Accrued liabilities and current portion of long-term liabilities consist of the following:



	December 31,
	2019		2018
Accrued payroll and related liabilities	$	3,440	$	4,428
Operating lease liability, current	1,545		—
Accrued commissions and royalties	663		900
Current portion of accrued liabilities for asset financings	483		748
Accrued interest payable	397		403
Deferred revenue	146		96
Accrued costs related to restructuring	66		200
Liability for warranty returns	10		13
Other	1,942		3,468
Accrued liabilities and current portion of long-term liabilities	$	8,692	$	10,256

The following is a summary of the change in deferred revenue and our liability for warranty returns:



	Year Ended December 31,
	2019			2018			2017
Deferred revenue:
Balance at beginning of period	$	96		$	418		$	—
Revenue deferred	511			610			418
Revenue recognized	(461		)	(932		)	—
Balance at end of period	$	146		$	96		$	418
Liability for warranty returns:
Balance at beginning of year	$	13		$	17		$	28
Provision	5			9			2
Charge-offs	(8		)	(13		)	(13		)
Balance at end of year	$	10		$	13		$	17

Short-Term Line of Credit

On December 21, 2010, we entered into a Loan and Security Agreement with Silicon Valley Bank (the "Bank"), which was amended on December 14, 2012, December 4, 2013, December 18, 2015, December 15, 2016, July 21, 2017, December 21, 2017, December 18, 2018 and December 18, 2019 (as amended, the "Revolving Loan Agreement"). The Revolving Loan Agreement provides a secured working capital-based revolving line of credit (the "Revolving Line") in an aggregate amount of up to the lesser of (i) $10,000, or (ii) $2,500 plus 80% of eligible domestic accounts receivable and certain foreign accounts receivable. The Revolving Line has a maturity date of December 27, 2020. In addition, the Revolving Loan Agreement provides for non-formula advances of up to $10,000 which may be made solely during the last five business days of any fiscal month or quarter and which must be repaid by the Company on or before the fifth business day after the applicable fiscal month or quarter end.

Amounts advanced under the Revolving Line bear interest at an annual rate equal to the lender's prime rate plus 0.25%. The Revolving Loan Agreement, as amended also provides an option for LIBOR advances that bear interest based on the LIBOR rate, subject to the availability of a LIBOR rate. Interest on the Revolving Line is due monthly, with the balance due on December 27, 2020, which is the scheduled maturity date for the Revolving Line.

The Revolving Loan Agreement, as amended contains customary affirmative and negative covenants, including with respect to the following: compliance with laws, provision of financial statements and periodic reports, payment of taxes, maintenance of inventory and insurance, maintenance of operating accounts at the Bank, the Bank's access to collateral, formation or acquisition of subsidiaries, incurrence of indebtedness, dispositions of assets, granting liens, changes in business, ownership or business locations, engaging in mergers and acquisitions, making investments or distributions and affiliate transactions. The covenants also require that the Company maintain a minimum ratio of qualifying financial assets to the sum of qualifying financial obligations.

The Revolving Loan Agreement, as amended also contains customary events of default, including the following: defaults with respect to covenant compliance, the occurrence of a material adverse change, the occurrence of certain bankruptcy or insolvency events, cross-defaults, judgment defaults and material misrepresentations. The occurrence of an event of default could result in the acceleration of the Company's obligations under the Revolving Loan Agreement, as amended and an increase to the applicable interest rate, and would permit the Bank to exercise remedies with respect to its security interest.

To secure the repayment of any amounts borrowed under the Revolving Loan Agreement, as amended, the Company granted to the Bank a security interest in substantially all of its assets, excluding its intellectual property assets. The Company has agreed not to pledge or otherwise encumber its intellectual property assets without prior written permission from the Bank.

As of December 31, 2019 and December 31, 2018, we had no outstanding borrowings on the Revolving Line.

Convertible Debt	12 Months Ended
Convertible Debt	Dec. 31, 2019
Debt Disclosure [Abstract]
Convertible Debt	CONVERTIBLE DEBT As part of the Acquisition, we assumed secured convertible debt and as a result of the change in control of ViXS, the convertible debt holders had a right to put the debt to the Company. A majority of the holders agreed to waive their right to accelerate and to accept 0.04836 share of our common stock for each share of ViXS common stock the holder would have been entitled to receive upon the exercise of the conversion option. On January 12, 2018, the Company provided notice to the holders of the convertible debt of its election to redeem the convertible debt in full as of March 13, 2018. Subsequently, certain holders of the convertible debt elected to convert their convertible debt into shares of common stock of Pixelworks pursuant to the terms of the convertible debt. This resulted in the issuance of 435,353 shares of our common stock which was valued at an aggregate of $2,646. We paid an aggregate of CAD $2,875 (equivalent to $2,220 USD) to redeem the convertible debt of those holders who did not elect to convert their convertible debt. The extinguishment of the debt during the first quarter of 2018 resulted in a gain of $1,272 which is recorded in interest income (expense) and other, net within our condensed consolidated statement of operations. For the year ended December 31, 2018, interest expense consisted of $66 related to the contractual rate of interest and $69 related to accretion of the discount. During the year ended December 31, 2018, we recorded net foreign currency losses of approximately $15 in other expense. For the year ended December 31, 2017, interest expense consisted of $227 related to the contractual rate of interest and $196 related to accretion of the discount. During the year ended December 31, 2017, we recorded net foreign currency gains of approximately $(4) in other expense.

Marketable Securities and Fair Value Measurements

12 Months Ended

Dec. 31, 2019

Fair Value Disclosures [Abstract]

Fair Value Measurements

MARKETABLE SECURITIES AND FAIR VALUE MEASUREMENTS

Marketable Securities

As of December 31, 2019 and December 31, 2018, all of our marketable securities are classified as available-for-sale and consist of the following:



	Cost		Unrealized Gain (Loss)			Fair Value
Short-term marketable securities:
As of December 31, 2019:
Commercial paper	$	2,487	$	—		$	2,487
U.S. government treasury bills	2,249		1			2,250
Corporate debt securities	2,236		2			2,238
	$	6,972	$	3		$	6,975

As of December 31, 2018:
Corporate debt securities	$	3,238	$	(2	)	$	3,236
U.S. government treasury bills	1,841		—			1,841
Commercial paper	992		—			992
	$	6,071	$	(2	)	$	6,069

Unrealized holding gains and losses are recorded in accumulated other comprehensive income, a component of shareholders’ equity, in the condensed consolidated balance sheets.

Fair Value Measurements

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Three levels of inputs may be used to measure fair value:


Level 1:	Valuations based on quoted prices in active markets for identical assets and liabilities.


Level 2:	Valuations based on inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.


Level 3:	Valuations based on unobservable inputs in which there is little or no market data available, which require the reporting entity to develop its own assumptions.

The following table presents information about our assets and liabilities measured at fair value on a recurring basis in the consolidated balance sheets as of December 31, 2019 and 2018:



	Level 1		Level 2		Level 3		Total
As of December 31, 2019:
Assets:
Cash equivalents:
Money market funds	$	1,307	$	—	$	—	$	1,307
Short-term marketable securities:
U.S. government treasury bills	2,250		—		—		2,250
Commercial paper	—		2,487		—		2,487
Corporate debt securities	—		2,238		—		2,238

As of December 31, 2018:
Assets:
Cash equivalents:
Money market funds	$	13,388	$	—	$	—	13,388
Commercial paper	—		250		—		250
Corporate debt securities	—		249		—		249
Short-term marketable securities:
U.S. government treasury bills	1,841		—		—		1,841
Corporate debt securities	—		3,236		—		3,236
Commercial paper	—		992		—		992

We primarily use the market approach to determine the fair value of our financial instruments. The fair value of our current assets and liabilities, including accounts receivable and accounts payable approximates the carrying value due to the short-term nature of these balances. We have currently chosen not to elect the fair value option for any items that are not already required to be measured at fair value in accordance with U.S. GAAP.

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

Restructuring and Related Activities [Abstract]

Restructuring

12 Months Ended

Dec. 31, 2019

Restructuring

RESTRUCTURINGS

In June 2019, we executed a restructuring plan to make the operation of the Company more efficient. The plan included an approximately 2% reduction in workforce, primarily in the areas of sales and operations.

In April 2018, we executed a restructuring plan to make the operation of the Company more efficient. The plan included an approximately 5% reduction in workforce, primarily in the areas of development, marketing and administration. The plan also included closing the Hong Kong office and reducing the size of the Toronto office.

In September 2017, in connection with the Acquisition, we executed a restructuring plan to secure significant synergies between ViXS and Pixelworks. The plan included an approximately 15% reduction in workforce, primarily in the area of development, however, it also impacted administration and sales.

Total restructuring expense included in our statement of operations for the years ended December 31, 2019, 2018 and 2017 is comprised of the following:



	Year Ended December 31,
	2019		2018		2017
Operating expenses — restructuring:
Employee severance and benefits	$	398	$	714	$	1,920
Facility closure and consolidations	—		750		—
Total included in operating expenses	398		1,464		1,920
Total restructuring expense	$	398	$	1,464	$	1,920

The following is a rollforward of the accrued liabilities related to restructuring for the year ended December 31, 2019:



	Balance as of December 31, 2018		Adjustment			Expensed		Payments			Balance as of December 31, 2019
Facility closure and consolidations	$	360	$	(360	)	$	—	$	—		$	—
Employee severance and benefits	—		—			398		(332		)	66
Accrued costs related to restructuring	360		(360		)	398		(332		)	66

The adjustment to accrued costs related to restructuring was due to adjusting the right-of-use asset associated with cease-use liabilities upon the adoption of ASC 842 and did not result in an adjustment to restructuring expense.

Research and Development (Notes)	12 Months Ended
Research and Development (Notes)	Dec. 31, 2019
Research and Development [Abstract]
Research and Development	RESEARCH AND DEVELOPMENT During the first quarter of 2017, we entered into a best efforts co-development agreement (the "Co-development Agreement") with a customer to defray a portion of the research and development expenses we incurred in connection with our development of an integrated circuit product to be sold exclusively to the customer. Our development costs exceeded the amounts received from the customer and we retain ownership of any modifications or improvements to our pre-existing intellectual property and may use such improvements in products sold to other customers. Under the co-development agreement, $4,000 was payable by the customer within 60 days of the date of the agreement and two additional payments of $2,000 were each payable upon completion of certain development milestones. As amounts became due and payable, they were offset against research and development expense on a pro rata basis. We recognized offsets to research and development expense of $4,000 related to the Co-development Agreement during each of the years ended December 31, 2018 and 2017. All milestones under the Co-development Agreement were completed as of December 31, 2018.

Leases

12 Months Ended

Dec. 31, 2019

Leases [Abstract]

Leases

LEASES

On January 1, 2019, we adopted the new requirements of ASC 842, under the modified retrospective approach, using the effective date method. Under the effective date method, financial information and disclosures prior to January 1, 2019 are not required to be restated.

We determine if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets, other current liabilities, and operating lease liabilities in our condensed consolidated balance sheets.

ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. Operating lease ROU assets also exclude lease incentives received. For purposes of calculating operating lease liabilities, lease terms may be deemed to include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option.

We have operating leases for office buildings and one vehicle. Our leases have remaining lease terms of 1 year to 7 years. Supplemental information related to lease expense and valuation of the ROU assets and lease liabilities was as follows:



	Year Ended
	December 31, 2019
Operating lease cost	$	2,496
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	2,697
Leased assets obtained in exchange for new operating lease liabilities	1,440
Weighted average remaining lease term (in years)	4.97
Weighted average discount rate	5.49		%

Future minimum lease payments under non-cancellable leases as of December 31, 2019 were as follows:



Operating Lease Payments
Years ending December 31:
2020	1,810
2021	1,170
2022	1,144
2023	933
2024	822
2025	308
2026	308
Thereafter	77
Total operating lease payments	6,572
Less imputed interest	(815		)
Total operating lease liabilities	$	5,757

As of December 31, 2019, the Company had no operating lease liabilities that had not commenced.

As required, the following disclosure is provided for periods prior to adoption of ASC 842. Minimum lease commitments as of December 31, 2018 that had initial or remaining lease terms in excess of one year were as follows:



	Operating Leases
2019	1,856
2020	1,039
2021	708
2022	539
2023	492
2024	378

Revenue

12 Months Ended

Dec. 31, 2019

Revenue from Contract with Customer [Abstract]

Revenue

REVENUE

On January 1, 2018 we adopted the new requirements of Accounting Standards Codification 606, Revenue from Contracts with Customers ("ASC 606"), under the modified retrospective approach. Therefore, the requirements of ASC 606 have only been applied to existing contracts (those for which the entity has remaining performance obligations) as of, and new contracts after, the date of initial application, or January 1, 2018. ASC 606 is not applied to contracts that were completed before the effective date. The adoption of this new standard did not result in an adjustment to our consolidated financial statements but we have included additional disclosures in our periodic reports.

Revenue is recognized when control of the promised good or service is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. Our principal revenue generating activities consist of the following:

Product Sales - We sell integrated circuit products, also known as “chips” or “ICs”, based upon a customer purchase order, which includes a fixed price per unit. We have elected to account for shipping and handling as activities to fulfill the promise to transfer the goods, and not evaluate whether these activities are promised services to the customer. We generally satisfy our single performance obligation upon shipment of the goods to the customer and recognize revenue at a point in time upon shipment of the underlying product.

Our shipments are subject to limited return rights subject to our limited warranty for our products sold. In addition, we may provide other credits to certain customers pursuant to price protection and stock rotation rights, all of which are considered variable consideration when estimating the amount of revenue to recognize. We use the “most likely amount” method to determine the amount of consideration to which we are entitled. Our estimate of variable consideration is reassessed at the end of each reporting period based on changes in facts and circumstances. Historically, returns and credits have not been material.

Engineering Services - We enter into contracts for professional engineering services that include software development and customization. We identify each performance obligation in our engineering services agreements (“ESAs”) at contract inception. The ESA generally includes project deliverables specified by the customer. The performance obligations in the ESA are generally combined into one deliverable, with the pricing for services stated at a fixed amount. Services provided under the ESA generally result in the transfer of control over time. We recognize revenue on ESAs based on the proportion of labor hours expended to the total hours expected to complete the contract performance obligation. ESAs could include substantive customer acceptance provisions. In ESAs that include substantive customer acceptance provisions, we recognize revenue upon customer acceptance.

License Revenue - On occasion, we derive revenue from the license of our internally developed intellectual property ("IP"). IP licensing agreements that we enter into generally provide licensees the right to incorporate our IP components in their products with terms and conditions that vary by licensee. Fees under these agreements generally include license fees relating to our IP and support service fees, resulting in two performance obligations. We evaluate each performance obligation, which generally results in the transfer of control at a point in time for the license fee and over time for support services.

Other - From time-to-time, we enter into arrangements for other revenue generating activities, such as providing technical support services to customers through technical support agreements. In each circumstance, we evaluate such arrangements for our performance obligations which generally results in the transfer of control for such services over time. Historically, such arrangements have not been material to our operating results.

The following table provides information about disaggregated revenue based on the preceding categories for the years ended December 31, 2019 and 2018:



	Year ended December 31,
	2019		2018
IC sales	$	66,250	$	74,247
Engineering services, license and other	2,505		2,307
Total revenues	$	68,755	$	76,554

For segment information, including revenue by geographic region, see "Note 16: Segment Information".

Our contract balances include accounts receivable, deferred revenue and our liability for warranty returns. For information concerning these contract balances, see "Note 4: Balance Sheet Components".

Payment terms and conditions for goods and services provided vary by contract; however, payment is generally required within 30 to 60 days of invoicing.

We have not identified any material costs incurred associated with obtaining a contract with a customer which would meet the criteria to be capitalized, therefore, these costs are expensed as incurred.

The aggregate amount of the transaction price allocated to unsatisfied performance obligations with an original expected duration of greater than one year is $270,

Interest Income (Expense) and Other, Net

12 Months Ended

Dec. 31, 2019

Other Income and Expenses [Abstract]

Interest Expense and Other, Net

INTEREST INCOME (EXPENSE) AND OTHER, NET

Interest income (expense) and other, consists of the following:



	Year Ended December 31,
	2019			2018			2017
Other income	$	425		$	225		$	190
Interest income	327			296			141
Interest expense	(158		)	(369		)	(455		)
Gain on debt extinguishment	—			1,272			29
Discount accretion on convertible debt fair value	—			(69		)	(196		)
Fair value adjustment on convertible debt conversion option	—			—			(743		)
Total interest income (expense) and other, net	$	594		$	1,355		$	(1,034	)

Income Taxes

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Income Taxes

INCOME TAXES

Current and Deferred Income Tax Expense

Domestic and foreign pre-tax income (loss) is as follows:



	Year Ended December 31,
	2019			2018			2017
Domestic	$	(16,072	)	$	(3,843	)	$	1,516
Foreign	7,448			378			(4,583		)
Domestic and foreign pre-tax loss	$	(8,624	)	$	(3,465	)	$	(3,067	)

Income tax expense attributable to operations is comprised of the following:



	Year Ended December 31,
	2019			2018			2017
Current:
Federal	$	(103	)	$	(6	)	$	(321	)
State	2			10			4
Foreign	509			506			806
Total current	408			510			489
Deferred:
Foreign	45			(62		)	4
Total deferred	45			(62		)	4
Income tax expense	$	453		$	448		$	493

The reconciliation of the U.S. federal statutory income tax rate to our effective income tax rate is as follows:



	Year Ended December 31,
	2019		2018		2017
Federal statutory rate	21	%	21	%	34	%
Expiration of tax attributes	(38	)	(140	)	(146	)
Change in valuation allowance	31		73		1,064
Impact of foreign earnings	(25	)	13		(3	)
Permanent items	3		—		(9	)
Research and development credits	7		10		7
Stock-based compensation	(5	)	(5	)	(10	)
Tax contingencies, net of reversals	1		2		(1	)
Tax law change	—		—		(946	)
Other	—		13		(6	)
Effective income tax rate	(5	)%	(13	)%	(16	)%

Deferred Tax Assets, Liabilities and Valuation Allowance

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts for income tax purposes. Significant components of our deferred tax assets and liabilities are as follows:



	December 31,
	2019			2018
Deferred tax assets:
Research and experimentation credit and deduction carryforwards	$	67,648		$	65,868
Net operating loss carryforwards	47,779			53,415
Depreciation and amortization	1,956			1,420
Reserves and accrued expenses	1,785			1,348
Deferred stock-based compensation	1,134			884
Foreign tax credit carryforwards	719			928
Other	1,434			320
Total gross deferred tax assets	122,455			124,183
Deferred tax liabilities:
Other	(1,300		)	(319		)
Total gross deferred tax liabilities	(1,300		)	(319		)
Less valuation allowance	(121,005		)	(123,672		)
Net deferred tax assets	$	150		$	192

The Company adopted ASU 2016-09 in the first quarter of 2017. The Company had excess tax benefits for which a benefit could not be previously recognized of approximately $485. Upon adoption the balance of the unrecognized excess tax benefits was reversed with the impact recorded to retained earnings including the change to the valuation allowance as a result of the adoption.

The Tax Cuts and Jobs Act (the "Act") was enacted on December 22, 2017. The Act reduced the U.S. federal corporate tax rate from 35% to 21%, and required 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. Due to a net operating loss position for U.S. tax purposes, the impact from the repatriation of our foreign earnings was not significant. Additionally, a tax on certain foreign earnings in excess of 10 percent of the foreign subsidiaries tangible assets (i.e., global intangible low-taxed income or "GILTI") became effective in 2018. The calculation of GILTI resulted in an inclusion of $8,054 for the current year. We previously elected to treat the GILTI as a period cost or period expense. As of December 31, 2017 we recorded a receivable for our AMT tax credit carryforwards of $343 which is refundable under the Act and we expect to receive this $343 during 2020.

On December 22, 2017, Staff Accounting Bulletin No. 118 was issued to address the application of U.S. GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Act. In accordance with SAB 118, we used provisional amounts and reasonable estimates at December 31, 2017 to estimate the impact of the Act. The accounting related to the Act was completed in the fourth quarter of 2018 and we determined that there was no impact due to a full valuation allowance in the U.S. and the utilization of prior year net operating loss carryforwards against additional taxable income.

We continue to record a full valuation allowance against our U.S. and Canadian net deferred tax assets as of December 31, 2019 and 2018, as it is not more likely than not that we will realize a benefit from these assets in a future period. We have not provided a valuation allowance against any of our foreign net deferred tax assets as we have concluded it is more likely than not that we will realize a benefit from these assets in a future period because our subsidiaries in these jurisdictions are cost-plus taxpayers. The net valuation allowance decreased $2,667 and decreased $2,531 for the years ended December 31, 2019 and 2018, respectively, and increased $30,867 for the year ended December 31, 2017.

As of December 31, 2019, we had federal, state and foreign net operating loss carryforwards of $174,465, $10,851 and $38,461 respectively, which will begin to expire in 2020 with $973 of our federal net operating loss carryforward lasting indefinitely. As of December 31, 2019, we had available federal, state and foreign research and experimentation tax credit carryforwards of $9,506, $4,653, and $28,123 respectively. The federal and state tax credits began expiring in 2020 while the foreign credits have an indefinite life. In addition, our Canadian subsidiary has unclaimed scientific and experimental expenditures to be carried forward and applied against future income in Canada of approximately $120,964. We have a general foreign tax credit of $610 which began expiring in 2020.

Our ability to utilize our federal net operating losses may be limited by Section 382 of the Internal Revenue Code of 1986, as amended, which imposes an annual limit on the ability of a corporation that undergoes an "ownership change" to use its net operating loss carryforwards to reduce its tax liability. An ownership change is generally defined as a greater than 50% increase in equity ownership by 5% shareholders in any three-year period.

We recognized all of the earnings of our foreign subsidiaries as part of the transition tax of the Act. As of December 31, 2019, we do not have a liability for unremitted foreign earnings.

Our Chinese subsidiary is designated as an Advanced Technology Service Enterprise, allowing it to benefit from a Chinese tax holiday resulting in a reduction of its tax rate to 15% through 2021. The tax rate will return to 25% in 2022 upon expiration of the tax holiday. The impact from the extension of the tax holiday was recognized during the fourth quarter of 2019, the quarter in which the extension was approved by the tax authorities.

Uncertain Tax Positions

We have recorded tax liabilities to address potential exposures involving positions that could be challenged by taxing authorities. As of December 31, 2019 the amount of our uncertain tax positions was a liability of $1,554 and a reduction to deferred tax assets of $1,100. As of December 31, 2018, the amount of our uncertain tax positions was a liability of $1,661 and a reduction to deferred tax assets of $925.

The following is a summary of the change in our liability for uncertain tax positions and interest and penalties:



	2019			2018
Uncertain tax positions:
Balance at beginning of year	$	2,504		$	2,444
Accrual for positions taken in a prior year	(14		)	(91		)
Accrual for positions taken in current year	188			160
Reversals due to lapse of statute of limitations	(109		)	(9		)
Balance at end of year	$	2,569		$	2,504
Interest and penalties:
Balance at beginning of year	$	82		$	68
Accrual for positions taken in prior year	28			21
Accrual for positions taken in current year	2			3
Reversals due to lapse of statute of limitations	(27		)	(10		)
Balance at end of year	$	85		$	82

During the years ended December 31, 2019, 2018 and 2017, we recognized $30, $24 and $46, respectively, of interest and penalties in income tax expense in our consolidated statements of operations.

We file income tax returns in the U.S. and various foreign jurisdictions. A number of years may elapse before an uncertain tax position is resolved by settlement or statute of limitations. Settlement of any particular position could require the use of cash. If the uncertain tax positions we have accrued for are sustained by the taxing authorities in our favor, the reduction of the liability will reduce our effective tax rate. We reasonably expect reductions in the liability for unrecognized tax benefits and interest and penalties of approximately $85 within the next twelve months due to the expiration of statutes of limitation in federal, state and foreign jurisdictions.

We are no longer subject to U.S. federal, state, and foreign examinations for years before 2016, 2015 and 2012, respectively. Our net operating loss and tax credit carryforwards from all years may be subject to adjustment for three years following the year in which utilized. We do not anticipate that any potential tax adjustments will have a significant impact on our financial position or results of operations.

We were not subject to, nor have we received any notice of, income tax examinations in any jurisdiction as of December 31, 2019.

Commitments and Contingencies

12 Months Ended

Dec. 31, 2019

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

COMMITMENTS AND CONTINGENCIES

Royalties

We license technology from third parties and have agreed to pay certain suppliers a royalty based on the number of chips sold or manufactured, the net sales price of the chips containing the licensed technology or a fixed non-cancelable fee. Royalty expense is recognized based on our estimated average unit cost for royalty contracts with non-cancelable prepayments and the stated contractual per unit rate for all other agreements. Royalty expense was $521, $742 and $1,017 for the years ended December 31, 2019, 2018 and 2017, respectively, which is included in cost of revenue in our consolidated statements of operations.

401(k) Plan

We sponsor a 401(k) plan for eligible employees. Participants may defer a percentage of their annual compensation on a pre-tax basis, not to exceed the dollar limit that is set by law. A discretionary matching contribution by the Company is allowed and is equal to a uniform percentage of the amount of salary reduction elected to be deferred, which percentage will be determined each year by the Company. We made contributions of $62 to the 401(k) plan during the year ended December 31, 2019 and no contributions to the 401(k) plan during 2018 or 2017.

Software licenses

We acquire rights to use certain software engineer design tools under software licenses.

As of December 31, 2019, future minimum payments under non-cancelable software licenses are as follows:



Year Ending December 31,	Software licenses
2020	$	507
2021	333
2022	250
	1,090
Less: Interest component	(79		)
Present value of minimum software license payments	1,011
Less: Current portion	(483		)
Long-term portion of obligations	$	528

Other Contractual Obligation

As part of the Acquisition discussed in "Note 3: Acquisition", we acquired debt associated with an agreement with the Government of Canada called Technology Partnerships Canada ("TPC"). As part of the TPC agreement, ViXS Systems Inc. was provided funding to assist in research and development expenses of which a portion was later required to be repaid because the conditions for repayment were met. The scheduled payments are made on a quarterly basis and end in January 2024. $482 and $446 are included in accrued liabilities and current portion of long-term liabilities in our consolidated balance sheet as of December 31, 2019 and 2018, respectively. $441 and $562 are included in long-term liabilities, net of current portion in our consolidated balance sheets as of December 31, 2019 and 2018, respectively.

Contract Manufacturers

In the normal course of business, we commit to purchase products from our contract manufacturers to be delivered within the next 90 days. In certain situations, should we cancel an order, we could be required to pay cancellation fees. Such obligations could impact our immediate results of operations but would not materially affect our business.

Indemnifications

Certain of our agreements include limited indemnification provisions for claims from third-parties relating to our intellectual property. It is not possible for us to predict the maximum potential amount of future payments or indemnification costs under these or similar agreements due to the conditional nature of our obligations and the unique facts and circumstances involved in each particular agreement. We have not made any payments under these agreements in the past, and as of December 31, 2019, we have not incurred any material liabilities arising from these indemnification obligations. In the future, however, such obligations could immediately impact our results of operations but are not expected to materially affect our business.

Legal Proceedings

We are subject to legal matters that arise from time to time in the ordinary course of our business. Although we currently believe that resolving such matters, individually or in the aggregate, will not have a material adverse effect on our financial position, our results of operations, or our cash flows, these matters are subject to inherent uncertainties and our view of these matters may change in the future.

Earnings Per Share

12 Months Ended

Dec. 31, 2019

Earnings Per Share [Abstract]

Earnings Per Share

EARNINGS PER SHARE

Basic earnings per share amounts are computed based on the weighted average number of common shares outstanding. Diluted weighted average shares outstanding include the weighted average number of common shares outstanding plus potentially dilutive common shares outstanding during the period.

The following schedule reconciles the computation of basic and diluted net loss per share (in thousands, except per share data):



	Year Ended December 31,
	2019			2018			2017
Net loss	$	(9,077	)	$	(3,913	)	$	(3,560	)
Weighted average shares outstanding - basic and diluted	37,851			35,959			31,507
Net loss per share - basic and diluted	$	(0.24	)	$	(0.11	)	$	(0.11	)

The following shares were excluded from the calculation of diluted net loss per share as their effect would have been anti-dilutive (in thousands):



	Year Ended December 31,
	2019	2018	2017
Employee equity incentive plans	3,419	3,349	3,879
Convertible debt	—	—	371

Potentially dilutive common shares from employee equity incentive plans are determined by applying the treasury stock method to the assumed exercise of outstanding stock options, the assumed vesting of outstanding restricted stock units, and the assumed issuance of common stock under the employee stock purchase plan. Potentially dilutive common shares from the convertible debt were determined by applying the if-converted method to the assumed conversion of the outstanding convertible debt.

Shareholders' Equity

12 Months Ended

Dec. 31, 2019

Stockholders' Equity Note [Abstract]

Shareholders' Equity

SHAREHOLDERS’ EQUITY

Preferred Stock

The Company is authorized to issue 50,000,000 shares of preferred stock with a par value of $0.001 per share. The Board of Directors is authorized to fix or alter the rights, preferences, privileges and restrictions granted to, or imposed on, each series of preferred stock. There were no shares of preferred stock issued as of December 31, 2019 and 2018.

Common Stock

The Company is authorized to issue 250,000,000 shares of common stock with a par value of $0.001 per share. Shareholders of common stock have unlimited voting rights and are entitled to receive the net assets of the Company upon dissolution, subject to the rights of the preferred shareholders, if any.

Employee Equity Incentive Plans

On May 23, 2006, our shareholders approved the adoption of the Pixelworks, Inc. 2006 Stock Incentive Plan (the "2006 Plan"). The 2006 Plan has since been amended on certain occasions, most recently on May 15, 2019 when our shareholders approved an increase to the total number of authorized shares to 16,783,333 shares. As of December 31, 2019, 1,312,937 shares were available for grant under the 2006 Plan.

Stock Options

The contractual life of newly issued stock option awards is six years. Our new hire vesting schedule provides that each option becomes exercisable at a rate of 25% on the first anniversary date of the grant and 2.083% on the last day of every month thereafter for a total of 36 additional increments. Our merit vesting schedule provides that merit-type awards become exercisable monthly over a period of three years.

The following is a summary of stock option activity:



	Number of shares		Weighted average exercise price
Options outstanding as of December 31, 2018:	603,355		$	2.52
Granted	33,484		3.91
Exercised	(80,542	)	0.61
Canceled and forfeited	(10,687	)	2.63
Expired	(12,126	)	3.50
Options outstanding as of December 31, 2019:	533,484		$	2.87

The following table summarizes information about options outstanding as of December 31, 2019:



	Options Outstanding				Options Exercisable
Range of exercise prices	Number outstanding as of December 31, 2019	Weighted average remaining contractual life	Weighted average exercise price		Number exercisable as of December 31, 2019	Weighted average exercise price
$2.00 - $2.00	3,500	2.53	$	2.00	2,917	$	2.00
2.46 - 2.46	350,000	2.01	2.46		342,708	2.46
2.67 - 4.52	135,984	3.15	3.23		80,814	2.93
4.56 - 6.05	44,000	2.62	5.14		31,042	5.14
$0.60 - $6.05	533,484	2.35	$	2.87	457,481	$	2.72

During the years ended December 31, 2019, 2018 and 2017 the total intrinsic value of options exercised was $256, $1,698 and $1,801, respectively, for which no income tax benefit has been recorded because a full valuation allowance has been provided for our U.S. deferred tax assets. As of December 31, 2019, options outstanding had a total intrinsic value of $617.

Options outstanding that have vested and are expected to vest as of December 31, 2019 are as follows:



	Number of shares	Weighted average exercise price		Weighted average remaining contractual term	Aggregate intrinsic value
Vested	457,481	$	2.72	2.07	$	589
Expected to vest	70,871	3.77		4.01	28
Total	528,352	$	2.86	2.33	$	617

Restricted Stock

The 2006 Plan provides for the issuance of restricted stock, including restricted stock units. During the years ended December 31, 2019, 2018 and 2017 we granted 1,917,514, 1,346,440, and 1,514,527 shares, respectively, of restricted stock with a weighted average grant date fair value of $3.81, $4.24, and $4.87 per share, respectively.

The following is a summary of restricted stock activity:



	Number of shares		Weighted average grant date fair value
Unvested at December 31, 2018:	2,564,254		$	4.16
Granted	1,917,514		3.81
Vested	(1,222,127	)	3.87
Canceled	(147,215	)	4.37
Unvested at December 31, 2019:	3,112,426		$	4.06
Expected to vest after December 31, 2019	2,855,953		$	4.06

Employee Stock Purchase Plans

On May 18, 2010, our shareholders approved the adoption of the 2010 Pixelworks, Inc. Employee Stock Purchase Plan (the "ESPP") for U.S. employees and for certain foreign subsidiary employees. The ESPP provides for separate offering periods commencing on February 1 and August 1, with the first offering period beginning August 1, 2010. Each offering period continues for a period of 18 months with purchases every six months. Each eligible employee may purchase up to 3,000 shares of stock on each purchase date, with a maximum annual purchase amount of $25. The purchase price is equal to 85% of the lesser of the fair market value of the shares on the offering date or on the purchase date. A total of 1,300,000 shares of common stock have been reserved for issuance under the ESPP. During the years ended December 31, 2019, 2018 and 2017, we issued 194,361, 181,960 and 153,242 shares, respectively for proceeds of $519, $420 and $270, respectively, under the ESPP.

Stock-Based Compensation Expense

The fair value of stock-based compensation was determined using the Black-Scholes option pricing model and the following weighted average assumptions:



	Year Ended December 31,
	2019		2018		2017
Stock Option Plans:
Risk free interest rate	2.47	%	2.68	%	1.85	%
Expected dividend yield	0	%	0	%	0	%
Expected term (in years)	5.00		5.00		5.00
Volatility	66	%	74	%	75	%
Employee Stock Purchase Plan:
Risk free interest rate	2.05	%	1.97	%	1.09	%
Expected dividend yield	0	%	0	%	0	%
Expected term (in years)	1.05		1.06		1.07
Volatility	65	%	51	%	65	%

The weighted average fair value of options granted during the years ended December 31, 2019, 2018 and 2017 was $2.23, $3.03 and $2.58, respectively. The risk free interest rate is estimated using an average of treasury bill interest rates. The expected dividend yield is zero as we have not paid any dividends to date and do not expect to pay dividends in the future. Expected volatility is estimated based on the historical volatility of our common stock over the expected term as this represents our best estimate of future volatility. The contractual life of newly issued stock options is six years, and we have elected to use the "simplified method" to estimate expected term. Under the simplified method, an option's expected term is calculated as the average of its vesting period and original contractual life. The expected term of ESPP purchase rights is based on the estimated weighted average time to purchase.

As of December 31, 2019, unrecognized stock-based compensation expense is $6,830, which is expected to be recognized as stock-based compensation expense over a weighted average period of 1.19 years.

Segment Information

12 Months Ended

Dec. 31, 2019

Segment Reporting [Abstract]

Segment Information

SEGMENT INFORMATION

We have identified a single operating segment: the design and development of ICs for use in electronic display devices. Substantially all of our assets are located in the U.S.

Geographic Information

Revenue by geographic region, was as follows:



	Year Ended December 31,
	2019		2018		2017
Japan	$	53,628	$	67,330	$	66,041
China	10,213		5,079		2,117
U.S.	3,105		1,815		1,697
Taiwan	1,597		1,619		6,841
Korea	108		427		987
Europe	104		284		2,166
Other	—		—		788
	$	68,755	$	76,554	$	80,637

Significant Customers

The percentage of revenue attributable to our distributors, top five end customers, and individual distributors or end customers that represented more than 10% of revenue in at least one of the periods presented, is as follows:



	Year Ended December 31,
	2019		2018		2017
Distributors:
All distributors	44	%	44	%	47	%
Distributor A	28	%	34	%	27	%
End Customers: ¹
Top five end customers	77	%	82	%	79	%
End customer A	49	%	50	%	47	%
End customer B	12	%	9	%	2	%
End customer C	4	%	10	%	9	%

¹ End customers include customers who purchase directly from us, as well as customers who purchase our products indirectly through distributors.

Each of the following accounts represented 10% or more of total accounts receivable in at least one of the periods presented:



	December 31,
	2019		2018
Account X	42	%	34	%
Account Y	26	%	—	%
Account Z	24	%	54	%

Quarterly Financial Data (Unaudited)

12 Months Ended

Dec. 31, 2019

Quarterly Financial Information Disclosure [Abstract]

Quarterly Financial Data (Unaudited)

QUARTERLY FINANCIAL DATA (UNAUDITED)



	Quarterly Period Ended
	March 31			June 30			September 30			December 31 ¹
2019
Revenue, net	$	16,648		$	18,027		$	18,057		$	16,023
Gross profit	8,472			9,376			9,347			7,300
Loss from operations	(3,460		)	(2,321		)	(2,444		)	(4,898		)
Income (loss) before income taxes	541			(2,217		)	(2,374		)	(4,574		)
Net income (loss)	133			(2,448		)	(2,306		)	(4,456		)
Net income (loss) per share:
Basic	0.00			(0.06		)	(0.06		)	(0.12		)
Diluted	0.00			(0.06		)	(0.06		)	(0.12		)
2018
Revenue, net	$	15,292		$	19,251		$	21,472		$	20,539
Gross profit	7,802			9,534			11,237			10,905
Income (loss) from operations	(1,294		)	(2,450		)	431			(1,507		)
Income (loss) before income taxes	(157		)	(2,410		)	519			(1,417		)
Net income (loss)	(433		)	(2,442		)	431			(1,469		)
Net income (loss) per share:
Basic	(0.01		)	(0.07		)	0.01			(0.04		)
Diluted	(0.01		)	(0.07		)	0.01			(0.04		)

¹ The three months ended December 31, 2018 includes $424 in restructuring expenses.

Subsequent Events	12 Months Ended
Subsequent Events	Dec. 31, 2019
Subsequent Events [Abstract]
Subsequent Events	SUBSEQUENT EVENTS On January 2, 2020, the Board of Directors (the “Board”) of the Company approved a restructuring plan to make the operation of the Company more efficient and which would result in an approximately 4% reduction in workforce, primarily in the areas of research and development and sales. The Board believes adoption of this restructuring plan will help streamline the Company’s operations and workforce, and more appropriately align the Company’s operating expenses with current revenue levels. The Company expects the restructuring to be substantially completed by the end of the first quarter ending March 31, 2020 and expects to incur total estimated restructuring charges of approximately $0.6 million related to employee severance and benefits. The Company expects that these charges will largely be recorded in the first quarter of 2020.

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2019

Accounting Policies [Abstract]

Use of Estimates, Policy

Cash and Cash Equivalents, Policy

Marketable Securities, Policy

Accounts Receivable, Policy

Inventories, Policy

Property and Equipment, Policy

Property and equipment are stated at cost. Depreciation and amortization is calculated on a straight-line basis over the estimated useful life of the assets which are generally as follows:



	Software	Lesser of 3 years or contractual license term
	Equipment, furniture and fixtures	2 years
	Tooling	2 to 4 years
	Leasehold improvements	Lesser of lease term or estimated useful life

The cost of property and equipment repairs and maintenance is expensed as incurred.

Licensed Technology, Policy

Useful Lives and Recoverability of Equipment and Other Long-Lived Assets, Policy

If there is an indicator of impairment, we prepare an estimate of future, undiscounted cash flows expected to result from the use of each asset and its eventual disposition. If these cash flows are less than the carrying value of the asset, we adjust the carrying amount of the asset to its estimated fair value.

Goodwill, Policy

Warranty Program, Policy

Share-Based Compensation, Policy

Research and Development, Policy

Income Taxes, Policy

Fair Value of Financial Instruments, Policy


Level 1:	Valuations based on quoted prices in active markets for identical assets and liabilities.


Level 2:	Valuations based on inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.

Level 3:

Valuations based on unobservable inputs in which there is little or no market data available, which require the reporting entity to develop its own assumptions.

Revenue, Policy

Basis of Presentation - (Tables)

12 Months Ended

Dec. 31, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Immaterial Error Correction

The following table sets forth the effect this immaterial error correction had on the Company’s condensed consolidated statements of operations for the years ended December 31, 2018 and 2017:



	Year Ended								Year Ended
	December 31, 2018								December 31, 2017
	Previously Reported			Correction		Revised			Previously Reported			Correction		Revised
Interest income (expense) and other, net	$	647		$	708	$	1,355		$	(1,647	)	$	613	$	(1,034	)
Total other income (expense), net	647			708		1,355			(1,647		)	613		(1,034		)
Loss before income taxes	(4,173		)	708		(3,465		)	(3,680		)	613		(3,067		)
Net loss	(4,621		)	708		(3,913		)	(4,173		)	613		(3,560		)
Net loss per share - basic and diluted	$	(0.13	)	$	0.02	$	(0.11	)	$	(0.13	)	$	0.02	$	(0.11	)

The following table sets forth the effect this immaterial error correction had on the Company's condensed consolidated balance sheet as of December 31, 2018:



	December 31, 2018
	Previously Reported			Correction			Revised
Accrued liabilities and current portion of long-term liabilities	$	14,823		$	(4,567	)	$	10,256
Total current liabilities	17,202			(4,567		)	12,635
Total liabilities	20,518			(4,567		)	15,951
Accumulated deficit	(384,095		)	4,567			(379,528		)
Total shareholders’ equity	44,823			4,567			49,390

The following table sets forth the effect this immaterial error correction had on the Company's condensed consolidated statement of cash flows for the years ended December 31, 2018 and 2017:



	Year Ended						Year Ended
	December 31, 2018						December 31, 2017
	Previously Reported		Correction		Revised		Previously Reported		Correction		Revised
Operating activities:
Net loss	(4,621	)	708		(3,913	)	(4,173	)	613		(3,560	)
Change in accrued current and long-term liabilities	(2,182	)	(708	)	(2,890	)	4,819		(613	)	4,206
Net cash provided by operating activities	955		—		955		12,199		—		12,199

Acquisition (Tables)

12 Months Ended

Dec. 31, 2019

Business Combinations [Abstract]

Purchase Price Allocation

The purchase price was allocated to the assets and liabilities based on fair values as follows:



Purchase price			$	16,975
Less net liabilities assumed:
Assets acquired:
Cash and cash equivalents	1,901
Accounts receivable	968
Inventories	3,175
Property and equipment	964
Other assets	1,562
Identifiable intangible assets	6,730
Liabilities assumed:
Accounts payable	(1,736	)
Accrued liabilities and other current liabilities	(2,832	)
Revolving bank loan	(4,046	)
Convertible debt	(6,485	)
Other noncurrent liabilities	(1,633	)	(1,432		)
Goodwill			$	18,407

Balance Sheet Components (Tables)

12 Months Ended

Dec. 31, 2019

Balance Sheet Related Disclosures [Abstract]

Accounts Receivable, Net

Accounts receivable consists of the following:



	December 31,
	2019			2018
Accounts receivable, gross	$	10,938		$	7,003
Allowance for doubtful accounts	(23		)	(21		)
Accounts receivable, net	$	10,915		$	6,982

Allowance for Doubtful Accounts

The following is a summary of the change in our allowance for doubtful accounts:



	Year Ended December 31,
	2019		2018			2017
Balance at beginning of year	$	21	$	47		$	32
Additions charged (reductions credited)	2		(26		)	15
Balance at end of year	$	23	$	21		$	47

Inventories

Inventories consist of the following:



	December 31,
	2019		2018
Finished goods	$	1,630	$	1,577
Work-in-process	3,771		1,377
Inventories	$	5,401	$	2,954

Property and Equipment, Net

Property and equipment consists of the following:



	December 31,
	2019			2018
Equipment, furniture and fixtures	$	8,494		$	9,536
Tooling	6,552			6,552
Software	6,428			5,444
Leasehold improvements	1,392			1,350
	22,866			22,882
Accumulated depreciation and amortization	(18,258		)	(16,731		)
Property and equipment, net	$	4,608		$	6,151

Schedule of Finite-Lived Intangible Assets

Acquired intangible assets resulting from this transaction consist of the following:



	December 31,
	2019			2018
Developed technology	$	5,050		$	5,050
Customer relationships	1,270			1,270
Backlog and tradename	410			410
	6,730			6,730
Less: accumulated amortization	(4,026		)	(2,522		)
Acquired intangible assets, net	$	2,704		$	4,208

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense

As of December 31, 2019, future estimated amortization expense is as follows:



Years ending December 31:
2020	1,497
2021	1,117
2022	90
	$	2,704

Accrued Liabilities and Current Portion of Long-Term Liabilities

Accrued liabilities and current portion of long-term liabilities consist of the following:



	December 31,
	2019		2018
Accrued payroll and related liabilities	$	3,440	$	4,428
Operating lease liability, current	1,545		—
Accrued commissions and royalties	663		900
Current portion of accrued liabilities for asset financings	483		748
Accrued interest payable	397		403
Deferred revenue	146		96
Accrued costs related to restructuring	66		200
Liability for warranty returns	10		13
Other	1,942		3,468
Accrued liabilities and current portion of long-term liabilities	$	8,692	$	10,256

Liability for Deferred Revenue and Warranty Returns

The following is a summary of the change in deferred revenue and our liability for warranty returns:



	Year Ended December 31,
	2019			2018			2017
Deferred revenue:
Balance at beginning of period	$	96		$	418		$	—
Revenue deferred	511			610			418
Revenue recognized	(461		)	(932		)	—
Balance at end of period	$	146		$	96		$	418
Liability for warranty returns:
Balance at beginning of year	$	13		$	17		$	28
Provision	5			9			2
Charge-offs	(8		)	(13		)	(13		)
Balance at end of year	$	10		$	13		$	17

Marketable Securities and Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2019

Fair Value Disclosures [Abstract]

Fair Value, Assets Measured on Recurring and Nonrecurring Basis

As of December 31, 2019 and December 31, 2018, all of our marketable securities are classified as available-for-sale and consist of the following:



	Cost		Unrealized Gain (Loss)			Fair Value
Short-term marketable securities:
As of December 31, 2019:
Commercial paper	$	2,487	$	—		$	2,487
U.S. government treasury bills	2,249		1			2,250
Corporate debt securities	2,236		2			2,238
	$	6,972	$	3		$	6,975

As of December 31, 2018:
Corporate debt securities	$	3,238	$	(2	)	$	3,236
U.S. government treasury bills	1,841		—			1,841
Commercial paper	992		—			992
	$	6,071	$	(2	)	$	6,069

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The following table presents information about our assets and liabilities measured at fair value on a recurring basis in the consolidated balance sheets as of December 31, 2019 and 2018:



	Level 1		Level 2		Level 3		Total
As of December 31, 2019:
Assets:
Cash equivalents:
Money market funds	$	1,307	$	—	$	—	$	1,307
Short-term marketable securities:
U.S. government treasury bills	2,250		—		—		2,250
Commercial paper	—		2,487		—		2,487
Corporate debt securities	—		2,238		—		2,238

As of December 31, 2018:
Assets:
Cash equivalents:
Money market funds	$	13,388	$	—	$	—	13,388
Commercial paper	—		250		—		250
Corporate debt securities	—		249		—		249
Short-term marketable securities:
U.S. government treasury bills	1,841		—		—		1,841
Corporate debt securities	—		3,236		—		3,236
Commercial paper	—		992		—		992

Restructuring (Tables)

12 Months Ended

Dec. 31, 2019

Restructuring and Related Activities [Abstract]

Restructuring Expense by Components

Total restructuring expense included in our statement of operations for the years ended December 31, 2019, 2018 and 2017 is comprised of the following:



	Year Ended December 31,
	2019		2018		2017
Operating expenses — restructuring:
Employee severance and benefits	$	398	$	714	$	1,920
Facility closure and consolidations	—		750		—
Total included in operating expenses	398		1,464		1,920
Total restructuring expense	$	398	$	1,464	$	1,920

Schedule of Accrued Restructuring Liabilities

The following is a rollforward of the accrued liabilities related to restructuring for the year ended December 31, 2019:



	Balance as of December 31, 2018		Adjustment			Expensed		Payments			Balance as of December 31, 2019
Facility closure and consolidations	$	360	$	(360	)	$	—	$	—		$	—
Employee severance and benefits	—		—			398		(332		)	66
Accrued costs related to restructuring	360		(360		)	398		(332		)	66

Leases (Tables)

12 Months Ended

Dec. 31, 2019

Leases [Abstract]

Supplemental Information Related to Leases



	Year Ended
	December 31, 2019
Operating lease cost	$	2,496
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	2,697
Leased assets obtained in exchange for new operating lease liabilities	1,440
Weighted average remaining lease term (in years)	4.97
Weighted average discount rate	5.49		%

Future Minimum Payments Under Non-cancellable Leases

Future minimum lease payments under non-cancellable leases as of December 31, 2019 were as follows:



Operating Lease Payments
Years ending December 31:
2020	1,810
2021	1,170
2022	1,144
2023	933
2024	822
2025	308
2026	308
Thereafter	77
Total operating lease payments	6,572
Less imputed interest	(815		)
Total operating lease liabilities	$	5,757

Future Minimum Lease Payments Under Previous Guidance



	Operating Leases
2019	1,856
2020	1,039
2021	708
2022	539
2023	492
2024	378

Revenue (Tables)

12 Months Ended

Dec. 31, 2019

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenue

The following table provides information about disaggregated revenue based on the preceding categories for the years ended December 31, 2019 and 2018:



	Year ended December 31,
	2019		2018
IC sales	$	66,250	$	74,247
Engineering services, license and other	2,505		2,307
Total revenues	$	68,755	$	76,554

Interest Income (Expense) and Other, Net (Tables)

12 Months Ended

Dec. 31, 2019

Other Income and Expenses [Abstract]

Schedule of Other Operating Cost and Expense, by Component

Interest income (expense) and other, consists of the following:



	Year Ended December 31,
	2019			2018			2017
Other income	$	425		$	225		$	190
Interest income	327			296			141
Interest expense	(158		)	(369		)	(455		)
Gain on debt extinguishment	—			1,272			29
Discount accretion on convertible debt fair value	—			(69		)	(196		)
Fair value adjustment on convertible debt conversion option	—			—			(743		)
Total interest income (expense) and other, net	$	594		$	1,355		$	(1,034	)

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Schedule of Income (Loss) before Income Tax, Domestic and Foreign

Domestic and foreign pre-tax income (loss) is as follows:



	Year Ended December 31,
	2019			2018			2017
Domestic	$	(16,072	)	$	(3,843	)	$	1,516
Foreign	7,448			378			(4,583		)
Domestic and foreign pre-tax loss	$	(8,624	)	$	(3,465	)	$	(3,067	)

Schedule of Components of Income Tax Expense (Benefit)

Income tax expense attributable to operations is comprised of the following:



	Year Ended December 31,
	2019			2018			2017
Current:
Federal	$	(103	)	$	(6	)	$	(321	)
State	2			10			4
Foreign	509			506			806
Total current	408			510			489
Deferred:
Foreign	45			(62		)	4
Total deferred	45			(62		)	4
Income tax expense	$	453		$	448		$	493

Schedule of Effective Income Tax Rate Reconciliation

The reconciliation of the U.S. federal statutory income tax rate to our effective income tax rate is as follows:



	Year Ended December 31,
	2019		2018		2017
Federal statutory rate	21	%	21	%	34	%
Expiration of tax attributes	(38	)	(140	)	(146	)
Change in valuation allowance	31		73		1,064
Impact of foreign earnings	(25	)	13		(3	)
Permanent items	3		—		(9	)
Research and development credits	7		10		7
Stock-based compensation	(5	)	(5	)	(10	)
Tax contingencies, net of reversals	1		2		(1	)
Tax law change	—		—		(946	)
Other	—		13		(6	)
Effective income tax rate	(5	)%	(13	)%	(16	)%

Schedule of Deferred Tax Assets, Liabilities, and Valuation Allowance

Significant components of our deferred tax assets and liabilities are as follows:



	December 31,
	2019			2018
Deferred tax assets:
Research and experimentation credit and deduction carryforwards	$	67,648		$	65,868
Net operating loss carryforwards	47,779			53,415
Depreciation and amortization	1,956			1,420
Reserves and accrued expenses	1,785			1,348
Deferred stock-based compensation	1,134			884
Foreign tax credit carryforwards	719			928
Other	1,434			320
Total gross deferred tax assets	122,455			124,183
Deferred tax liabilities:
Other	(1,300		)	(319		)
Total gross deferred tax liabilities	(1,300		)	(319		)
Less valuation allowance	(121,005		)	(123,672		)
Net deferred tax assets	$	150		$	192

Summary of Uncertain Tax Positions and Interest and Penalties

The following is a summary of the change in our liability for uncertain tax positions and interest and penalties:



	2019			2018
Uncertain tax positions:
Balance at beginning of year	$	2,504		$	2,444
Accrual for positions taken in a prior year	(14		)	(91		)
Accrual for positions taken in current year	188			160
Reversals due to lapse of statute of limitations	(109		)	(9		)
Balance at end of year	$	2,569		$	2,504
Interest and penalties:
Balance at beginning of year	$	82		$	68
Accrual for positions taken in prior year	28			21
Accrual for positions taken in current year	2			3
Reversals due to lapse of statute of limitations	(27		)	(10		)
Balance at end of year	$	85		$	82

Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2019

Commitments and Contingencies Disclosure [Abstract]

Future Minimum Payments Disclosure

As of December 31, 2019, future minimum payments under non-cancelable software licenses are as follows:



Year Ending December 31,	Software licenses
2020	$	507
2021	333
2022	250
	1,090
Less: Interest component	(79		)
Present value of minimum software license payments	1,011
Less: Current portion	(483		)
Long-term portion of obligations	$	528

Earnings Per Share (Tables)

12 Months Ended

Dec. 31, 2019

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted

The following schedule reconciles the computation of basic and diluted net loss per share (in thousands, except per share data):



	Year Ended December 31,
	2019			2018			2017
Net loss	$	(9,077	)	$	(3,913	)	$	(3,560	)
Weighted average shares outstanding - basic and diluted	37,851			35,959			31,507
Net loss per share - basic and diluted	$	(0.24	)	$	(0.11	)	$	(0.11	)

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share

The following shares were excluded from the calculation of diluted net loss per share as their effect would have been anti-dilutive (in thousands):



	Year Ended December 31,
	2019	2018	2017
Employee equity incentive plans	3,419	3,349	3,879
Convertible debt	—	—	371

Shareholders' Equity (Tables)

12 Months Ended

Dec. 31, 2019

Stockholders' Equity Note [Abstract]

Schedule of Stock Option Activity

The following is a summary of stock option activity:



	Number of shares		Weighted average exercise price
Options outstanding as of December 31, 2018:	603,355		$	2.52
Granted	33,484		3.91
Exercised	(80,542	)	0.61
Canceled and forfeited	(10,687	)	2.63
Expired	(12,126	)	3.50
Options outstanding as of December 31, 2019:	533,484		$	2.87

Schedue of Shares Authorized under Stock Option Plans, by Exercise Price Range

The following table summarizes information about options outstanding as of December 31, 2019:



	Options Outstanding				Options Exercisable
Range of exercise prices	Number outstanding as of December 31, 2019	Weighted average remaining contractual life	Weighted average exercise price		Number exercisable as of December 31, 2019	Weighted average exercise price
$2.00 - $2.00	3,500	2.53	$	2.00	2,917	$	2.00
2.46 - 2.46	350,000	2.01	2.46		342,708	2.46
2.67 - 4.52	135,984	3.15	3.23		80,814	2.93
4.56 - 6.05	44,000	2.62	5.14		31,042	5.14
$0.60 - $6.05	533,484	2.35	$	2.87	457,481	$	2.72

Schedule of Stock Options Outstanding, Vested and Expected to Vest

Options outstanding that have vested and are expected to vest as of December 31, 2019 are as follows:



	Number of shares	Weighted average exercise price		Weighted average remaining contractual term	Aggregate intrinsic value
Vested	457,481	$	2.72	2.07	$	589
Expected to vest	70,871	3.77		4.01	28
Total	528,352	$	2.86	2.33	$	617

Schedule of Restricted Stock Units Activity

The following is a summary of restricted stock activity:



	Number of shares		Weighted average grant date fair value
Unvested at December 31, 2018:	2,564,254		$	4.16
Granted	1,917,514		3.81
Vested	(1,222,127	)	3.87
Canceled	(147,215	)	4.37
Unvested at December 31, 2019:	3,112,426		$	4.06
Expected to vest after December 31, 2019	2,855,953		$	4.06

Stock-Based Compensation, Valuation Assumptions

The fair value of stock-based compensation was determined using the Black-Scholes option pricing model and the following weighted average assumptions:



	Year Ended December 31,
	2019		2018		2017
Stock Option Plans:
Risk free interest rate	2.47	%	2.68	%	1.85	%
Expected dividend yield	0	%	0	%	0	%
Expected term (in years)	5.00		5.00		5.00
Volatility	66	%	74	%	75	%
Employee Stock Purchase Plan:
Risk free interest rate	2.05	%	1.97	%	1.09	%
Expected dividend yield	0	%	0	%	0	%
Expected term (in years)	1.05		1.06		1.07
Volatility	65	%	51	%	65	%

Segment Information (Tables)

12 Months Ended

Dec. 31, 2019

Segment Reporting [Abstract]

Schedule of Revenue by Geographic Region

Revenue by geographic region, was as follows:



	Year Ended December 31,
	2019		2018		2017
Japan	$	53,628	$	67,330	$	66,041
China	10,213		5,079		2,117
U.S.	3,105		1,815		1,697
Taiwan	1,597		1,619		6,841
Korea	108		427		987
Europe	104		284		2,166
Other	—		—		788
	$	68,755	$	76,554	$	80,637

Schedule of Revenue from Significant Customers



	Year Ended December 31,
	2019		2018		2017
Distributors:
All distributors	44	%	44	%	47	%
Distributor A	28	%	34	%	27	%
End Customers: ¹
Top five end customers	77	%	82	%	79	%
End customer A	49	%	50	%	47	%
End customer B	12	%	9	%	2	%
End customer C	4	%	10	%	9	%

¹ End customers include customers who purchase directly from us, as well as customers who purchase our products indirectly through distributors.

Schedule of Accounts Receivable Percentages from Significant Customers

Each of the following accounts represented 10% or more of total accounts receivable in at least one of the periods presented:



	December 31,
	2019		2018
Account X	42	%	34	%
Account Y	26	%	—	%
Account Z	24	%	54	%

Quarterly Financial Data (Unaudited) (Tables)

12 Months Ended

Dec. 31, 2019

Quarterly Financial Information Disclosure [Abstract]

Schedule of Quarterly Financial Data (Unaudited)



	Quarterly Period Ended
	March 31			June 30			September 30			December 31 ¹
2019
Revenue, net	$	16,648		$	18,027		$	18,057		$	16,023
Gross profit	8,472			9,376			9,347			7,300
Loss from operations	(3,460		)	(2,321		)	(2,444		)	(4,898		)
Income (loss) before income taxes	541			(2,217		)	(2,374		)	(4,574		)
Net income (loss)	133			(2,448		)	(2,306		)	(4,456		)
Net income (loss) per share:
Basic	0.00			(0.06		)	(0.06		)	(0.12		)
Diluted	0.00			(0.06		)	(0.06		)	(0.12		)
2018
Revenue, net	$	15,292		$	19,251		$	21,472		$	20,539
Gross profit	7,802			9,534			11,237			10,905
Income (loss) from operations	(1,294		)	(2,450		)	431			(1,507		)
Income (loss) before income taxes	(157		)	(2,410		)	519			(1,417		)
Net income (loss)	(433		)	(2,442		)	431			(1,469		)
Net income (loss) per share:
Basic	(0.01		)	(0.07		)	0.01			(0.04		)
Diluted	(0.01		)	(0.07		)	0.01			(0.04		)

¹ The three months ended December 31, 2018 includes $424 in restructuring expenses.

Basis of Presentation (Details) $ in Thousands	12 Months Ended
Basis of Presentation (Details) $ in Thousands	Dec. 31, 2019 USD ($) patent	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of patents held \| patent	347
Foreign currency transaction loss, realized \| $	$ (270)	$ (178)	$ (172)

Summary of Significant Accounting Policies (Cash and cash equivalents) (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Cash and Cash Equivalents [Abstract]
Cash equivalents, at carrying value	$ 1,307	$ 13,887

Basis of Presentation (Immaterial Error Correction, Statement of Operations) (Details) - USD ($)
$ / shares in Units, $ in Thousands

3 Months Ended

12 Months Ended

Dec. 31, 2019

Sep. 30, 2019

Jun. 30, 2019

Mar. 31, 2019

Dec. 31, 2018

Sep. 30, 2018

Jun. 30, 2018

Mar. 31, 2018

Dec. 31, 2019

Dec. 31, 2018

Dec. 31, 2017

Error Corrections and Prior Period Adjustments Restatement [Line Items]

Other Nonoperating Income (Expense)

^[1]

$ 594

$ 1,355

$ (1,034)

Nonoperating Income (Expense)

4,499

1,355

(1,034)

Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest

$ (4,574)

$ (2,374)

$ (2,217)

$ 541

$ (1,417)

$ 519

$ (2,410)

$ (157)

(8,624)

(3,465)

(3,067)

$ (4,456)

$ (2,306)

$ (2,448)

$ 133

$ (1,469)

$ 431

$ (2,442)

$ (433)

$ (9,077)

$ (3,913)

$ (3,560)

Error Corrections and Prior Period Adjustments Restatement [Line Items]

$ (0.24)

$ (0.11)

Previously Reported

Other Nonoperating Income (Expense)

$ 647

$ (1,647)

Nonoperating Income (Expense)

647

(1,647)

Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest

(4,173)

(3,680)

$ (4,621)

$ (4,173)

Error Corrections and Prior Period Adjustments Restatement [Line Items]

$ (0.13)

Correction

Other Nonoperating Income (Expense)

$ 708

$ 613

Nonoperating Income (Expense)

708

613

Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest

708

613

$ 708

$ 613

$ 0.02

[1]	Includes fair value adjustment on convertible debt conversion option — — 743 Discount accretion on convertible debt fair value — 69 196 Gain on debt extinguishment — (1,272) (29)

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

Summary of Significant Accounting Policies (Property and equipment) (Details)	12 Months Ended
	Dec. 31, 2019
Software [Member]
Property, Plant and Equipment [Line Items]
Estimated useful life	Lesser of 3 years or contractual license term
Equipment, furniture and fixtures [Member]
Property, Plant and Equipment [Line Items]
Estimated useful life	2 years
Tooling [Member]
Property, Plant and Equipment [Line Items]
Estimated useful life	2 to 4 years
Leasehold improvements [Member]
Property, Plant and Equipment [Line Items]
Estimated useful life	Lesser of lease term or estimated useful life

Basis of Presentation (Immaterial Error Correction, Balance Sheet) (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Accrued liabilities and current portion of long-term liabilities	$ 8,692	$ 10,256
Total current liabilities	9,674	12,635
Total liabilities	17,128	15,951
Accumulated deficit	(388,605)	(379,528)
Total shareholders’ equity	$ 47,529	49,390	$ 43,296	$ 22,295
Previously Reported
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Accrued liabilities and current portion of long-term liabilities		14,823
Total current liabilities		17,202
Total liabilities		20,518
Accumulated deficit		(384,095)
Total shareholders’ equity		44,823
Correction
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Accrued liabilities and current portion of long-term liabilities		(4,567)
Total current liabilities		(4,567)
Total liabilities		(4,567)
Accumulated deficit		4,567
Total shareholders’ equity		$ 4,567

Summary of Significant Accounting Policies (Licensed Technology) (Details)	12 Months Ended
	Dec. 31, 2019
Accounting Policies [Abstract]
Years of amortization period of licensed technology, lower limit	2 years
Years of amortization period of licensed technology, upper limit	5 years

Basis of Presentation (Immaterial Error Correction, Cash Flow) (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Net loss	$ (4,456)	$ (2,306)	$ (2,448)	$ 133	$ (1,469)	$ 431	$ (2,442)	$ (433)	$ (9,077)	$ (3,913)	$ (3,560)
Change in accrued current and long-term liabilities									(3,686)	(2,890)	4,206
Net cash provided by operating activities									$ (10,380)	955	12,199
Previously Reported
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Net loss										(4,621)	(4,173)
Change in accrued current and long-term liabilities										(2,182)	4,819
Net cash provided by operating activities										955	12,199
Correction
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Net loss										708	613
Change in accrued current and long-term liabilities										(708)	(613)
Net cash provided by operating activities										$ 0	$ 0

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

Other Income and Expenses [Abstract]

Summary of Significant Accounting Policies (Recent Accounting Pronouncements) (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Jan. 01, 2019	Dec. 31, 2018
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total operating lease liabilities	$ 5,757
Right of use assets recognized	$ 5,434		$ 0
Accounting Standards Update 2016-02
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total operating lease liabilities		$ 6,847
Right of use assets recognized		$ 6,224

Acquisition - Additional Information (Details) - USD ($) $ in Thousands		3 Months Ended	5 Months Ended	12 Months Ended
	Aug. 02, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Business Acquisition [Line Items]
Restructuring		$ 424		$ 398	$ 1,464	$ 1,920
ViXS Systems, Inc.
Business Acquisition [Line Items]
Percent of outstanding shares acquired	100.00%
Shares issued per acquired share (in shares)	0.04836				0.04836
Purchase price	$ 16,975
Integration related costs	1,115
Severance pay	$ 800
Period of severance payments	24 months
Cost of accelerated vesting of restricted stock units	$ 315
Inventory	3,175
Deferred tax assets	62,992
Valuation allowance	62,972
Revenue of acquiree since acquisition date, actual			$ 4,489
Net income (loss) of acquiree since acquisition date, actual			(6,729)
Restructuring			1,920
Amortization			3,633
ViXS Systems, Inc. \| Fair Value Adjustment to Inventory
Business Acquisition [Line Items]
Inventory	2,191			$ 12
ViXS Systems, Inc. \| Developed technology
Business Acquisition [Line Items]
Finite-lived intangible assets acquired	$ 5,050
Weighted average useful life	5 years
ViXS Systems, Inc. \| Customer relationships
Business Acquisition [Line Items]
Finite-lived intangible assets acquired	$ 1,270
Weighted average useful life	3 years
ViXS Systems, Inc. \| Backlog and tradename
Business Acquisition [Line Items]
Finite-lived intangible assets acquired	$ 410
Weighted average useful life	2 years
ViXS Systems, Inc. \| Convertible Debt
Business Acquisition [Line Items]
Long-term debt	$ 4,762
Principal amount	6,068
Unamortized discount	1,306
Debt conversion feature	$ 1,723
ViXS Systems, Inc. \| Holder of ViXS Restricted Stock, Vested at Closing
Business Acquisition [Line Items]
Stock issued due to acquisition (in shares)	122,242
ViXS Systems, Inc. \| Restricted Stock Units (RSUs)
Business Acquisition [Line Items]
Value of shares issued	$ 659
Stock issued due to acquisition (in shares)	202,043
ViXS Systems, Inc. \| Common Stock
Business Acquisition [Line Items]
Value of shares issued	$ 16,316
Stock issued due to acquisition (in shares)	3,586,020
Cost of revenue \| ViXS Systems, Inc. \| Fair Value Adjustment to Inventory
Business Acquisition [Line Items]
Inventory		$ 424	$ 1,755		$ 424	$ 1,755

Acquisition - Schedule of Purchase Price Allocation of Assets and Liabilities (Details) - USD ($) $ in Thousands	Aug. 02, 2017	Dec. 31, 2019	Dec. 31, 2018
Assets acquired:
Goodwill		$ 18,407	$ 18,407
ViXS Systems, Inc.
Business Acquisition [Line Items]
Purchase price	$ 16,975
Assets acquired:
Cash and cash equivalents	1,901
Accounts receivable	968
Inventories	3,175
Property and equipment	964
Other assets	1,562
Identifiable intangible assets	6,730
Goodwill	18,407
Liabilities assumed:
Accounts payable	(1,736)
Accrued liabilities and other current liabilities	(2,832)
Other noncurrent liabilities	(1,633)
Less net liabilities assumed	(1,432)
ViXS Systems, Inc. \| Line of Credit
Liabilities assumed:
Debt	(4,046)
ViXS Systems, Inc. \| Convertible Debt
Liabilities assumed:
Debt	$ (6,485)

Balance Sheet Components (Accounts Receivable) (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Accounts Receivable, after Allowance for Credit Loss [Abstract]
Accounts receivable, gross	$ 10,938	$ 7,003
Allowance for doubtful accounts	(23)	(21)	$ (47)	$ (32)
Accounts receivable, net	$ 10,915	$ 6,982

Balance Sheet Components (Allowance for Doubtful Accounts) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Allowance for Doubtful Accounts [Roll Forward]
Balance at beginning of year	$ 21	$ 47	$ 32
Additions charged (reductions credited)	2	(26)	15
Balance at end of year	$ 23	$ 21	$ 47

Balance Sheet Components (Inventories) (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Balance Sheet Related Disclosures [Abstract]
Finished goods	$ 1,630	$ 1,577
Work-in-process	3,771	1,377
Inventories	$ 5,401	$ 2,954

Balance Sheet Components (Inventories) (Narrative) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Balance Sheet Related Disclosures [Abstract]
Inventory write-downs	$ 137	$ 121	$ 349
Sale of previously written-down inventory	$ 35	$ 152	$ 165

Balance Sheet Components (Property and Equipment) (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Balance Sheet Related Disclosures [Abstract]
Equipment, furniture and fixtures	$ 8,494	$ 9,536
Tooling	6,552	6,552
Software	6,428	5,444
Leasehold improvements	1,392	1,350
Gross carrying amount	22,866	22,882
Accumulated depreciation and amortization	(18,258)	(16,731)
Property and equipment, net	$ 4,608	$ 6,151

Balance Sheet Components (Property and Equipment) (Narrative) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Balance Sheet Related Disclosures [Abstract]
Software amortization	$ 1,320	$ 1,407	$ 1,501
Depreciation and amortization	$ 2,300	$ 2,148	$ 2,076

Balance Sheet Components (Other Assets, Net) (Narrative) (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Balance Sheet Related Disclosures [Abstract]
Amortization of licensed technology	$ 217,000	$ 0	$ 0

Balance Sheet Components (Acquired Intangible Assets, Net) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Finite-Lived Intangible Assets [Line Items]
Acquired intangible assets, gross	$ 6,730	$ 6,730
Less: accumulated amortization	(4,026)	(2,522)
Acquired intangible assets, net	2,704	4,208
Amortization of acquired intangible assets	1,504
Cost of revenue
Finite-Lived Intangible Assets [Line Items]
Amortization of acquired intangible assets	1,192
Selling, general and administrative
Finite-Lived Intangible Assets [Line Items]
Amortization of acquired intangible assets	312	404	$ 168
Developed technology
Finite-Lived Intangible Assets [Line Items]
Acquired intangible assets, gross	$ 5,050	5,050
Developed technology \| Minimum
Finite-Lived Intangible Assets [Line Items]
Estimated useful lives	3 years
Developed technology \| Maximum
Finite-Lived Intangible Assets [Line Items]
Estimated useful lives	5 years
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Acquired intangible assets, gross	$ 1,270	1,270
Customer relationships \| Minimum
Finite-Lived Intangible Assets [Line Items]
Estimated useful lives	3 years
Customer relationships \| Maximum
Finite-Lived Intangible Assets [Line Items]
Estimated useful lives	5 years
Backlog and tradename
Finite-Lived Intangible Assets [Line Items]
Acquired intangible assets, gross	$ 410	$ 410
Backlog and tradename \| Minimum
Finite-Lived Intangible Assets [Line Items]
Estimated useful lives	6 months
Backlog and tradename \| Maximum
Finite-Lived Intangible Assets [Line Items]
Estimated useful lives	18 months

Balance Sheet Components (Future Amortization Expense) (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
2020	$ 1,497
2021	1,117
2022	90
Acquired intangible assets, net	$ 2,704	$ 4,208

Balance Sheet Components (Goodwill) (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018	Aug. 02, 2017
Goodwill [Line Items]
Goodwill	$ 18,407	$ 18,407
ViXS Systems, Inc.
Goodwill [Line Items]
Goodwill			$ 18,407

Balance Sheet Components (Accrued Liabilities and Current Portion of Long-Term Liabilities) (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Balance Sheet Related Disclosures [Abstract]
Accrued payroll and related liabilities	$ 3,440	$ 4,428
Operating lease liability, current	1,545	0
Accrued commissions and royalties	663	900
Current portion of accrued liabilities for asset financings	483	748
Accrued interest payable	397	403
Deferred revenue	146	96
Accrued costs related to restructuring	66	200
Liability for warranty returns	10	13	$ 17	$ 28
Other	1,942	3,468
Accrued liabilities and current portion of long-term liabilities	$ 8,692	$ 10,256

Balance Sheet Components (Liability for Warranty Returns & Deferred Revenue) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Deferred revenue:
Balance at beginning of period	$ 96	$ 418	$ 0
Revenue deferred	511	610	418
Revenue recognized	(461)	(932)	0
Balance at end of period	146	96	418
Liability for warranty returns:
Balance at beginning of year	13	17	28
Provision	5	9	2
Charge-offs	(8)	(13)	(13)
Balance at end of year	$ 10	$ 13	$ 17

Balance Sheet Components (Short-Term Line of Credit) (Narrative) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Balance Sheet Related Disclosures [Abstract]
Line of credit facility, maximum borrowing capacity	$ 10,000
Line of credit facility, component of calculation for maximum borrowing amount under formula advances	$ 2,500
Line of credit facility, maximum borrowing capacity, limited by eligible A/R	80.00%
Line of credit facility, maximum borrowing capacity under non-formula advances	$ 10,000
Line of credit facility, borrowing terms for non-formula advances	5 days
Line of credit facility, annual interest rate equal to lender's prime rate plus	0.25%
Line of credit facility, outstanding borrowings	$ 0	$ 0

Convertible Debt - Additional Information (Details) $ in Thousands, $ in Thousands				3 Months Ended	12 Months Ended
	Jan. 12, 2018 USD ($) shares	Jan. 12, 2018 CAD ($) shares	Aug. 02, 2017 shares	Mar. 31, 2018 USD ($)	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($) shares	Dec. 31, 2017 USD ($)
Debt Instrument [Line Items]
Value of debt converted into shares					$ 0	$ 2,646	$ 329
Repayments of convertible debt					0	2,220	1,000
Gain on debt extinguishment					0	1,272	29
Discount accretion on convertible debt fair value					0	69	196
Foreign currency transaction gain (loss)					$ (270)	(178)	(172)
Convertible Debt
Debt Instrument [Line Items]
Converted instrument, shares issued \| shares	435,353	435,353
Value of debt converted into shares	$ 2,646
Repayments of convertible debt	$ 2,220	$ 2,875
Gain on debt extinguishment				$ 1,272
Convertible Debt \| 10% convertible notes
Debt Instrument [Line Items]
Interest expense, debt						66	227
Discount accretion on convertible debt fair value						69	196
Foreign currency transaction gain (loss)						$ 15	$ (4)
ViXS Systems, Inc.
Debt Instrument [Line Items]
Shares issued per acquired share (in shares) \| shares			0.04836			0.04836

Marketable Securities and Fair Value Measurements (Short Term Marketable Securities) (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cost	$ 6,972	$ 6,071
Unrealized Gain (Loss)	3	(2)
Fair Value	6,975	6,069
Corporate debt securities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cost	2,236	3,238
Unrealized Gain (Loss)	2	(2)
Fair Value	2,238	3,236
U.S. government treasury bills
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cost	2,249	1,841
Unrealized Gain (Loss)	1	0
Fair Value	2,250	1,841
Commercial paper
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cost	2,487	992
Unrealized Gain (Loss)	0	0
Fair Value	$ 2,487	$ 992

Marketable Securities and Fair Value Measurements (Assets and Liabilities) (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Fair Value, Assets and Liabilities Measured on Recurring [Line Items]
Short-term marketable securities:	$ 6,975	$ 6,069
Level 1
Fair Value, Assets and Liabilities Measured on Recurring [Line Items]
Commercial paper		0
Corporate debt securities		0
Level 3
Fair Value, Assets and Liabilities Measured on Recurring [Line Items]
Commercial paper		0
Corporate debt securities		0
Cash equivalents:
Fair Value, Assets and Liabilities Measured on Recurring [Line Items]
Cash equivalents:	1,307	13,388
Cash equivalents: \| Level 1
Fair Value, Assets and Liabilities Measured on Recurring [Line Items]
Cash equivalents:	1,307	13,388
Cash equivalents: \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring [Line Items]
Cash equivalents:	0	0
Cash equivalents: \| Level 3
Fair Value, Assets and Liabilities Measured on Recurring [Line Items]
Cash equivalents:	0	0
Commercial paper
Fair Value, Assets and Liabilities Measured on Recurring [Line Items]
Cash equivalents:		250
Commercial paper \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring [Line Items]
Cash equivalents:		250
Corporate debt securities
Fair Value, Assets and Liabilities Measured on Recurring [Line Items]
Cash equivalents:		249
Corporate debt securities \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring [Line Items]
Cash equivalents:		249
U.S. government treasury bills
Fair Value, Assets and Liabilities Measured on Recurring [Line Items]
Short-term marketable securities:	2,250	1,841
U.S. government treasury bills \| Level 1
Fair Value, Assets and Liabilities Measured on Recurring [Line Items]
Short-term marketable securities:	2,250	1,841
U.S. government treasury bills \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring [Line Items]
Short-term marketable securities:	0
U.S. government treasury bills \| Level 3
Fair Value, Assets and Liabilities Measured on Recurring [Line Items]
Short-term marketable securities:	0
Corporate debt securities
Fair Value, Assets and Liabilities Measured on Recurring [Line Items]
Short-term marketable securities:	2,238	3,236
Corporate debt securities \| Level 1
Fair Value, Assets and Liabilities Measured on Recurring [Line Items]
Short-term marketable securities:	0
Corporate debt securities \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring [Line Items]
Short-term marketable securities:	2,238	3,236
Corporate debt securities \| Level 3
Fair Value, Assets and Liabilities Measured on Recurring [Line Items]
Short-term marketable securities:	0
Commercial paper
Fair Value, Assets and Liabilities Measured on Recurring [Line Items]
Short-term marketable securities:	2,487	992
Commercial paper \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring [Line Items]
Short-term marketable securities:	$ 2,487	$ 992

Restructuring (Narrative) (Details)	1 Months Ended
Restructuring (Narrative) (Details)	Jun. 30, 2019	Apr. 30, 2018	Sep. 30, 2017
June 2019 Plan [Member]
Restructuring Cost and Reserve [Line Items]
Approximate reduction in workforce from restructuring plan (percent)	2.00%
April 2018 Plan [Member]
Restructuring Cost and Reserve [Line Items]
Approximate reduction in workforce from restructuring plan (percent)		5.00%
September 2017 Plan [Member]
Restructuring Cost and Reserve [Line Items]
Approximate reduction in workforce from restructuring plan (percent)			15.00%

Restructuring (Components of Restructuring Expense) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Restructuring Cost and Reserve [Line Items]
Total restructuring expense	$ 398	$ 1,464	$ 1,920
Operating Expense [Member]
Restructuring Cost and Reserve [Line Items]
Employee severance and benefits	398	714	1,920
Facility Closure & Consolidations	0	750	0
Total restructuring expense	$ 398	$ 1,464	$ 1,920

Restructuring (Restructuring Reserve) (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Restructuring Reserve [Roll Forward]
Balance at December 31, 2018		$ 360
Adjustment		(360)
Expensed	$ 424	398	$ 1,464	$ 1,920
Payments		332
Balance at December 31, 2019	360	66	360
Facility Closing [Member]
Restructuring Reserve [Roll Forward]
Balance at December 31, 2018		360
Adjustment		(360)
Expensed		0
Payments		0
Balance at December 31, 2019	360	0	360
Employee Severance [Member]
Restructuring Reserve [Roll Forward]
Balance at December 31, 2018		0
Adjustment		0
Expensed		398
Payments		332
Balance at December 31, 2019	$ 0	$ 66	$ 0

Research and Development (Details) - USD ($) $ in Thousands	12 Months Ended
Research and Development (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Research and Development [Abstract]
Amount receivable as of date of development agreement	$ 4,000
Payment term after agreement date	60 days
Amounts payable upon completion of milestones	$ 2,000
Research and development benefit recognized		$ 4,000	$ 4,000

Leases - Narrative (Details)	12 Months Ended
Leases - Narrative (Details)	Dec. 31, 2019
Minimum
Lessee, Lease, Description [Line Items]
Remaining lease terms on operating leases	1 year
Maximum
Lessee, Lease, Description [Line Items]
Remaining lease terms on operating leases	7 years

Leases - Supplemental information related to leases (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2019 USD ($)
Leases [Abstract]
Operating lease cost	$ 2,496
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	2,697
Leased assets obtained in exchange for new operating lease liabilities	$ 1,440
Weighted average remaining lease term (in years)	4 years 11 months 19 days
Weighted average discount rate	5.49%

Leases - Future minimum lease payments under noncancellable leases (Details) $ in Thousands	Dec. 31, 2019 USD ($)
Years ending December 31:
2020	$ 1,810
2021	1,170
2022	1,144
2023	933
2024	822
2025	308
2026	308
Thereafter	77
Total operating lease payments	6,572
Less imputed interest	(815)
Total operating lease liabilities	$ 5,757

Leases - Future minimum lease payments under previous guidance (Details) $ in Thousands	Dec. 31, 2018 USD ($)
Leases [Abstract]
2019	$ 1,856
2020	1,039
2021	708
2022	539
2023	492
2024	$ 378

Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Revenue from External Customer [Line Items]
Revenues	$ 68,755	$ 76,554
IC sales
Revenue from External Customer [Line Items]
Revenues	66,250	74,247
Engineering services, license and other
Revenue from External Customer [Line Items]
Revenues	$ 2,505	$ 2,307

Revenue - Narrative (Details) $ in Thousands	12 Months Ended
Revenue - Narrative (Details) $ in Thousands	Dec. 31, 2019 USD ($)
Revenue from Contract with Customer [Abstract]
Unsatisfied performance obligations	$ 270
Expected timing of satisfaction of performance obligations	which we expect to recognize ratably over the next 27 months.

Interest Income (Expense) and Other, Net (Details) - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2019

Dec. 31, 2018

Dec. 31, 2017

Other income

$ 425

$ 225

$ 190

Interest income

327

296

141

Interest expense

(158)

(369)

(455)

Gain on debt extinguishment

1,272

Discount accretion on convertible debt fair value

(69)

(196)

Fair value adjustment on convertible debt conversion option

(743)

Total interest expense and other, net

^[1]

$ 594

$ 1,355

$ (1,034)

[1]	Includes fair value adjustment on convertible debt conversion option — — 743 Discount accretion on convertible debt fair value — 69 196 Gain on debt extinguishment — (1,272) (29)

Income Taxes (Domestic and Foreign Pre-Tax Income (Loss)) (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Domestic									$ (16,072)	$ (3,843)	$ 1,516
Foreign									7,448	378	(4,583)
Loss before income taxes	$ (4,574)	$ (2,374)	$ (2,217)	$ 541	$ (1,417)	$ 519	$ (2,410)	$ (157)	$ (8,624)	$ (3,465)	$ (3,067)

Income Taxes (Income Tax Expense (Benefit)) (Details) - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2019

Dec. 31, 2018

Dec. 31, 2017

Current:

Federal

$ (103)

$ (6)

$ (321)

State

Foreign

509

506

806

Total current

408

510

489

Deferred:

Foreign

(62)

Total deferred

(62)

Income tax expense

^[1]

$ 453

$ 448

$ 493

[1]	Includes benefit related to tax reform — — (343)

Income Taxes (Reconciliation of U.S. Federal Statuatory Rate to our Effective Rate) (Details)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Federal statutory rate	21.00%	21.00%	34.00%
Expiration of tax attributes	(38.00%)	(140.00%)	(146.00%)
Change in valuation allowance	31.00%	73.00%	1064.00%
Impact of foreign earnings	(25.00%)	13.00%	(3.00%)
Permanent items	3.00%	0.00%	(9.00%)
Research and development credits	7.00%	10.00%	7.00%
Stock-based compensation	(5.00%)	(5.00%)	(10.00%)
Tax contingencies, net of reversals	1.00%	2.00%	(1.00%)
Tax law change	0	0	(9.46)
Other	0.00%	13.00%	(6.00%)
Effective income tax rate	(5.00%)	(13.00%)	(16.00%)

Income Taxes (Deferred Tax Assets, Liabilities and Valuation Allowance) (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Deferred tax assets:
Research and experimentation credit and deduction carryforwards	$ 67,648	$ 65,868
Net operating loss carryforwards	47,779	53,415
Depreciation and amortization	1,956	1,420
Reserves and accrued expenses	1,785	1,348
Deferred stock-based compensation	1,134	884
Foreign tax credit carryforwards	719	928
Other	1,434	320
Total gross deferred tax assets	122,455	124,183
Deferred tax liabilities:
Other	(1,300)	(319)
Total gross deferred tax liabilities	(1,300)	(319)
Less valuation allowance	(121,005)	(123,672)
Net deferred tax assets	$ 150	$ 192

Income Taxes (Deferred Tax Assets, Liabilities and Valuation Allowance) (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2017	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Effective Income Tax Rate Reconciliation, Share-based Compensation, Excess Tax Benefit, Amount	$ 485
GILTI Impact		$ 8,054
Alternative minimum tax credit carryforward, receivable				$ 343
Alternative minimum tax credit carryforward, receivable, current		343
Change in net valuation allowance		$ 2,667	$ 2,531	$ 30,867

Income Taxes (Net Operating Loss Carryforwards and Tax Credits) (Narrative) (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2019 USD ($)
Federal [Member]
Tax Credit Carryforward [Line Items]
Operating loss carryforwards	$ 174,465
Tax credit carryforwards, research	$ 9,506
Ownership change, percent increase in equity ownership by 5% shareholder	50.00%
Minimum percent equity ownership by shareholder for ownership change considerations	5.00%
State [Member]
Tax Credit Carryforward [Line Items]
Operating loss carryforwards	$ 10,851
Tax credit carryforwards, research	4,653
Foreign [Member]
Tax Credit Carryforward [Line Items]
Operating loss carryforwards	38,461
Tax credit carryforwards, research	28,123
General foreign tax credit	$ 610
China, Income tax holiday, reduced statutory rate	15.00%
Canada Revenue Agency [Member] \| Foreign [Member]
Tax Credit Carryforward [Line Items]
Tax credit carryforwards, research	$ 120,964

Income Taxes (Uncertain Tax Positions) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Balance at beginning of year	$ 1,661
Balance at end of year	1,554	$ 1,661
Uncertain Tax Positions [Member]
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Balance at beginning of year	2,504	2,444
Accrual for positions taken in a prior year	(14)	(91)
Accrual for positions taken in current year	188	160
Reversals due to lapse of statute of limitations	(109)	(9)
Balance at end of year	2,569	2,504
Interest and Penalties [Member]
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Balance at beginning of year	82	68
Accrual for positions taken in a prior year	28	21
Accrual for positions taken in current year	2	3
Reversals due to lapse of statute of limitations	(27)	(10)
Balance at end of year	$ 85	$ 82

Income Taxes (Uncertain Tax Positions) (Narrative) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Liability for uncertain tax positions, noncurrent	$ 1,554	$ 1,661
Reduction to deferred tax assets	1,100	925
Unrecognized tax benefits, income tax penalties and interest expense	30	$ 24	$ 46
Anticipated decrease of unrecognized tax liability, within twelve months	$ 85

Commitments and Contingencies (Royalties) (Narrative) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Commitments and Contingencies Disclosure [Abstract]
Royalty Expense	$ 521	$ 742	$ 1,017

Commitments and Contingencies (401(k) Plan) (Narrative) (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Commitments and Contingencies Disclosure [Abstract]
Employer contributions to 401(k) plan	$ 62	$ 0	$ 0

Commitments and Contingencies (Future Minimum Payments) (Details) $ in Thousands	Dec. 31, 2019 USD ($)
Software licenses
2020	$ 507
2021	333
2022	250
Total	1,090
Less: Interest component	(79)
Present value of minimum software license payments	1,011
Less: Current portion	(483)
Long-term portion of obligations	$ 528

Commitments and Contingencies (Other Contractual Obligation) (Narrative) (Details) - ViXS Systems, Inc. - Debt associated with agreement with TPC - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Debt Instrument [Line Items]
Contractual obligation, other, current	$ 482	$ 446
Contractual obligation, other, noncurrent	$ 441	$ 562

Earnings Per Share (Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Earnings Per Share [Abstract]
Net loss	$ (4,456)	$ (2,306)	$ (2,448)	$ 133	$ (1,469)	$ 431	$ (2,442)	$ (433)	$ (9,077)	$ (3,913)	$ (3,560)
Weighted average shares outstanding - basic and diluted									37,851	35,959	31,507
Net loss per share - basic and diluted									$ (0.24)	$ (0.11)	$ (0.11)

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

Earnings Per Share (Antidilutive Effect on Weighted Average Shares) (Details) - shares	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Employee equity incentive plans
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share, amount	3,419	3,349	3,879
Convertible debt
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share, amount	0	0	371

Shareholders' Equity (Shareholders' Equity) (Narrative) (Details) - $ / shares	Dec. 31, 2019	Dec. 31, 2018
Stockholders' Equity Note [Abstract]
Preferred stock, shares authorized	50,000,000	50,000,000
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares issued	0	0
Common stock, shares authorized	250,000,000	250,000,000
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares reserved for future issuance	16,783,333
2006 Plan, number of shares available for grant	1,312,937

Shareholders' Equity (Stock Options) (Narrative) (Details) - USD ($) $ in Thousands	1 Months Ended	12 Months Ended
	May 31, 2009	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options, percent vested on one year anniversary of grant	25.00%
Options, monthly vesting percentage beginning after year one anniversary	2.083%
Options, number of months vesting after one year anniversary	36
Total intrinsic value of options exercised		$ 256	$ 1,698	$ 1,801
Total intrinsic value of outstanding options		$ 617
Stock Option Plans:
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options, merit vesting period	3 years
Stock Option Plans: \| Maximum \| 2006 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Plan modification, contractual life	10 years
Stock Option Plans: \| Minimum \| 2006 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Plan modification, contractual life	6 years

Shareholders' Equity (Stock Options Activity Roll-forward) (Details)	12 Months Ended
	Dec. 31, 2019 $ / shares shares
Options Outstanding - Number of Shares
Options outstanding as of December 31, 2018: \| shares	603,355
Granted \| shares	33,484
Exercised \| shares	(80,542)
Canceled and forfeited \| shares	(10,687)
Expired \| shares	(12,126)
Options outstanding as of December 31, 2019: \| shares	533,484
Options Outstanding - Weighted Average Exercise Price
Options outstanding as of December 31, 2018: \| $ / shares	$ 2.52
Granted \| $ / shares	3.91
Exercised \| $ / shares	0.61
Canceled and forfeited \| $ / shares	2.63
Expired \| $ / shares	3.50
Options outstanding as of December 31, 2019: \| $ / shares	$ 2.87

Shareholders' Equity (Schedule of Shares Authorized Under Equity Compensation Plans, By Exercise Price) (Details) - $ / shares	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Number outstanding as of end of year	533,484	603,355
$2.00 - $2.00
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Range of exercise prices, minimum	$ 2.00
Range of exercise prices, maximum	$ 2.00
Number outstanding as of end of year	3,500
Options outstanding, weighted average remaining contractual life	2 years 6 months 10 days
Options outstanding, weighted average exercise price	$ 2.00
Number exercisable as of end of year	2,917
Options exerciseable, weighted average exercise price	$ 2.00
2.46 - 2.46
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Range of exercise prices, minimum	2.46
Range of exercise prices, maximum	$ 2.46
Number outstanding as of end of year	350,000
Options outstanding, weighted average remaining contractual life	2 years 3 days
Options outstanding, weighted average exercise price	$ 2.46
Number exercisable as of end of year	342,708
Options exerciseable, weighted average exercise price	$ 2.46
2.67 - 4.52
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Range of exercise prices, minimum	2.67
Range of exercise prices, maximum	$ 4.52
Number outstanding as of end of year	135,984
Options outstanding, weighted average remaining contractual life	3 years 1 month 24 days
Options outstanding, weighted average exercise price	$ 3.23
Number exercisable as of end of year	80,814
Options exerciseable, weighted average exercise price	$ 2.93
4.56 - 6.05
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Range of exercise prices, minimum	4.56
Range of exercise prices, maximum	$ 6.05
Number outstanding as of end of year	44,000
Options outstanding, weighted average remaining contractual life	2 years 7 months 13 days
Options outstanding, weighted average exercise price	$ 5.14
Number exercisable as of end of year	31,042
Options exerciseable, weighted average exercise price	$ 5.14
$0.60 - $6.05
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Range of exercise prices, minimum	0.60
Range of exercise prices, maximum	$ 6.05
Number outstanding as of end of year	533,484
Options outstanding, weighted average remaining contractual life	2 years 4 months 6 days
Options outstanding, weighted average exercise price	$ 2.87
Number exercisable as of end of year	457,481
Options exerciseable, weighted average exercise price	$ 2.72

Shareholders' Equity (Options Vested or are Expected to Vest as of December 31, 2019) (Details) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2019 USD ($) $ / shares shares
Stockholders' Equity Note [Abstract]
Vested, number of shares \| shares	457,481
Expected to vest, number of shares \| shares	70,871
Total, number of shares \| shares	528,352
Vested, weighted average exercise price \| $ / shares	$ 2.72
Expected to vest, weighted average exercise price \| $ / shares	3.77
Total, weighted average exercise price \| $ / shares	$ 2.86
Vested, weighted average remaining contractual term	2 years 25 days
Expected to vest, weighted average remaining contractual term	4 years 3 days
Total, weighted average remaining contractual term	2 years 3 months 29 days
Vested, aggregate intrinsic value \| $	$ 589
Expected to vest, aggregate intrinsic value \| $	28
Total, aggregate intrinsic value \| $	$ 617

Shareholders' Equity (Restricted Stock) (Narrative) (Details) - $ / shares	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Stockholders' Equity Note [Abstract]
Restricted stock grants, number of shares	1,917,514	1,346,440	1,514,527
Restricted stock grants, weighted average grant date fair value	$ 3.81	$ 4.24	$ 4.87

Shareholders' Equity (Unvested Restricted Stock Units Activity Roll-Forward) (Details) - $ / shares	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Unvested Restricted Stock Units - Number of Shares
Unvested at December 31, 2018:	2,564,254
Granted	1,917,514
Vested	(1,222,127)
Canceled	(147,215)
Unvested at December 31, 2019:	3,112,426	2,564,254
Expected to vest after December 31, 2019	2,855,953
Unvested Restricted Stock Units - Weighted Average Grant Date Fair Value
Unvested at December 31, 2018:	$ 4.16
Granted	3.81	$ 4.24	$ 4.87
Vested	3.87
Canceled	4.37
Unvested at December 31, 2019:	4.06	$ 4.16
Expected to vest after December 31, 2019	$ 4.06

Shareholders' Equity (Employee Stock Purchase Plans) (Narrative) (Details) - 2010 Employee Stock Purchase Plan [Member] - USD ($) $ in Thousands		12 Months Ended
	May 18, 2010	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Employee Stock Purchase Plan, Activity in Period [Line Items]
Employee Stock Purchase Plan, offering period	18 months
Employee Stock Purchase Plan, purchase period	6 months
Employee Stock Purchase Plan, maximum number of shares per employee	3,000
Employee Stock Purchase Plan, maximum annual purchase amount per employee	$ 25
Employee Stock Purchase Plan, purchase price of common stock, percent	85.00%
Employee Stock Purchase Plan, number of shares authorized	1,300,000
Employee Stock Purchase Plans, shares issued		194,361	181,960	153,242
Employee Stock Purchase Plans, proceeds from shares issued		$ 519	$ 420	$ 270

Shareholders' Equity (Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions) (Details)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Stock Option Plans:
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract]
Risk free interest rate	2.47%	2.68%	1.85%
Expected dividend yield	0.00%	0.00%	0.00%
Expected term (in years)	5 years	5 years	5 years
Volatility	66.00%	74.00%	75.00%
Employee Stock Purchase Plan:
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract]
Risk free interest rate	2.05%	1.97%	1.09%
Expected dividend yield	0.00%	0.00%	0.00%
Expected term (in years)	1 year 18 days	1 year 21 days	1 year 25 days
Volatility	65.00%	51.00%	65.00%

Shareholders' Equity (Stock-based Compensation Expense) (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended	12 Months Ended
	May 31, 2009	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options, grants in period, weighted average grant date fair value		$ 2.23	$ 3.03	$ 2.58
Nonvested awards, total compensation cost not yet recognized		$ 6,830
Nonvested awards, total compensation cost not yet recognized, period for recognition		1 year 2 months 8 days
Stock Option Plans:
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected dividend yield		0.00%	0.00%	0.00%
Maximum \| 2006 Plan \| Stock Option Plans:
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Plan modification, contractual life	10 years
Minimum \| 2006 Plan \| Stock Option Plans:
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Plan modification, contractual life	6 years

Segment Information (Geographic Information) (Details) - USD ($)
$ in Thousands

3 Months Ended

12 Months Ended

Dec. 31, 2019

Sep. 30, 2019

Jun. 30, 2019

Mar. 31, 2019

Dec. 31, 2018

Sep. 30, 2018

Jun. 30, 2018

Mar. 31, 2018

Dec. 31, 2019

Dec. 31, 2018

Dec. 31, 2017

$ 16,023

$ 18,057

$ 18,027

$ 16,648

$ 20,539

$ 21,472

$ 19,251

$ 15,292

$ 68,755

^[1]

$ 76,554

^[1]

$ 80,637

^[1]

Japan

53,628

67,330

66,041

China

10,213

5,079

2,117

U.S.

3,105

1,815

1,697

Taiwan

1,597

1,619

6,841

Korea

108

427

987

Europe

104

284

2,166

Other

$ 0

$ 788

[1]	Includes deferred revenue fair value adjustment — 52 93

Segment Information (Schedule of Revenue by Major Customer) (Details) - Revenue

12 Months Ended

Dec. 31, 2019

Dec. 31, 2018

Dec. 31, 2017

All distributors

44.00%

47.00%

Distributor A

28.00%

34.00%

27.00%

Top five end customers

^[1]

77.00%

82.00%

79.00%

End customer A

^[1]

49.00%

50.00%

47.00%

End customer B

^[1]

12.00%

9.00%

2.00%

End customer C

Quarterly Financial Information Disclosure [Abstract]

^[1]

4.00%

10.00%

9.00%

[1]	End customers include customers who purchase directly from us, as well as customers who purchase our products indirectly through distributors.

Segment Information (Accounts Receivable by Major Customer) (Details) - Accounts receivable	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Account X
Segment Reporting Information [Line Items]
Percentage of accounts receivable	42.00%	34.00%
Account Y
Segment Reporting Information [Line Items]
Percentage of accounts receivable	26.00%	0.00%
Account Z
Segment Reporting Information [Line Items]
Percentage of accounts receivable	24.00%	54.00%

Quarterly Financial Data (Unaudited) (Details) - USD ($)
$ / shares in Units, $ in Thousands

3 Months Ended

12 Months Ended

Dec. 31, 2019

Sep. 30, 2019

Jun. 30, 2019

Mar. 31, 2019

Dec. 31, 2018

Sep. 30, 2018

Jun. 30, 2018

Mar. 31, 2018

Dec. 31, 2019

Dec. 31, 2018

Dec. 31, 2017