ADTRAN INC, 10-Q filed on 11/5/2021
Quarterly Report
v3.21.2
Document and Entity Information - shares
 9 Months Ended
Sep. 30, 2021
Nov. 01, 2021
Cover [Abstract]    
Document Type 10-Q  
Amendment Flag false  
Document Period End Date Sep. 30, 2021  
Document Fiscal Year Focus 2021  
Document Fiscal Period Focus Q3  
Entity Registrant Name ADTRAN, Inc.  
Trading Symbol ADTN  
Entity Central Index Key 0000926282  
Current Fiscal Year End Date --12-31  
Entity Filer Category Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Common Stock, Shares Outstanding   48,679,989
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Shell Company false  
Entity File Number 000-24612  
Entity Tax Identification Number 63-0918200  
Entity Address, Address Line One 901 Explorer Boulevard  
Entity Address, City or Town Huntsville  
Entity Address, State or Province AL  
Entity Address, Postal Zip Code 35806-2807  
City Area Code 256  
Local Phone Number 963-8000  
Entity Incorporation, State or Country Code DE  
Document Quarterly Report true  
Document Transition Report false  
Title of 12(b) Security Common Stock, Par Value $0.01 per share  
Security Exchange Name NASDAQ  
v3.21.2
Condensed Consolidated Balance Sheets (Unaudited) - USD ($)
$ in Thousands
Sep. 30, 2021
Dec. 31, 2020
Current Assets    
Cash and cash equivalents $ 75,503 $ 60,161
Restricted cash 102 18
Short-term investments (includes $1,210 and $1,731 of available-for-sale securities as of September 30, 2021 and December 31, 2020, respectively, reported at fair value) 2,610 3,131
Accounts receivable, less allowance for expected credit losses of $0 as of September 30, 2021 and $38 as of December 31, 2020 124,146 98,827
Other receivables 9,867 21,531
Inventory, net 127,241 125,457
Prepaid expenses and other current assets 10,061 8,293
Total Current Assets 349,530 317,418
Property, plant and equipment, net 56,556 62,399
Deferred tax assets, net 8,957 9,869
Goodwill 6,968 6,968
Intangibles, net 20,291 23,470
Other assets 31,675 25,425
Long-term investments (includes $44,305 and $43,385 of available-for-sale securities as of September 30, 2021 and December 31, 2020, respectively, reported at fair value) 83,935 80,130
Total Assets 557,912 525,679
Current Liabilities    
Accounts payable 79,074 49,929
Unearned revenue 16,394 14,092
Accrued expenses and other liabilities 15,392 13,609
Accrued wages and benefits 17,270 15,262
Income tax payable, net 5,914 1,301
Total Current Liabilities 134,044 94,193
Non-current unearned revenue 7,426 6,888
Pension liability 16,988 18,664
Deferred compensation liability 28,336 25,866
Other non-current liabilities 7,365 7,124
Total Liabilities 194,159 152,735
Commitments and contingencies (see Note 18)
Stockholders’ Equity    
Common stock, par value $0.01 per share; 200,000 shares authorized; 79,652 shares issued and 48,680 shares outstanding as of September 30, 2021 and 79,652 shares issued and 48,241 shares outstanding as of December 31, 2020 797 797
Additional paid-in capital 286,923 281,466
Accumulated other comprehensive loss (14,466) (11,639)
Retained earnings 760,398 781,813
Treasury stock at cost: 30,973 and 31,280 shares at September 30, 2021 and December 31, 2020, respectively (669,899) (679,493)
Total Stockholders’ Equity 363,753 372,944
Total Liabilities and Stockholders’ Equity $ 557,912 $ 525,679
v3.21.2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($)
$ in Thousands
Sep. 30, 2021
Dec. 31, 2020
Statement Of Financial Position [Abstract]    
Short term investments, available-for-sale securities at fair value $ 1,210 $ 1,731
Accounts receivable, allowance for expected credit losses 0 38
Long Term Investments, available-for-sale securities Fair Value $ 44,305 $ 43,385
Common stock, par value $ 0.01 $ 0.01
Common stock, shares authorized 200,000,000 200,000,000
Common stock, shares issued 79,652,000 79,652,000
Common stock, shares outstanding 48,680,000 48,241,000
Treasury stock, shares 30,973,000 31,280,000
v3.21.2
Condensed Consolidated Statements of Income (Loss) (Unaudited) - USD ($)
shares in Thousands, $ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
Revenue        
Total Revenue $ 138,081 $ 133,143 $ 408,846 $ 376,381
Cost of Revenue        
Total Cost of Revenue 90,408 74,181 244,904 212,347
Gross Profit 47,673 58,962 163,942 164,034
Selling, general and administrative expenses 30,972 27,205 89,273 84,624
Research and development expenses 26,759 27,223 82,131 85,794
Asset impairments       65
Operating Income (Loss) (10,058) 4,534 (7,462) (6,449)
Interest and dividend income 344 344 887 1,031
Interest expense (6)   (18) (1)
Net investment gain (loss) (63) 2,844 2,942 1,819
Other income (expense), net 648 (1,679) 2,673 (2,307)
Income (Loss) Before Income Taxes (9,135) 6,043 (978) (5,907)
Income tax (expense) benefit (1,292) (562) (3,467) 2,171
Net Income (Loss) $ (10,427) $ 5,481 $ (4,445) $ (3,736)
Weighted average shares outstanding – basic 48,609 47,957 48,470 47,957
Weighted average shares outstanding – diluted 48,609 48,424 48,470 47,957
Earnings (loss) per common share – basic $ (0.21) $ 0.11 $ (0.09) $ (0.08)
Earnings (loss) per common share – diluted $ (0.21) $ 0.11 $ (0.09) $ (0.08)
Network Solutions [Member]        
Revenue        
Total Revenue $ 120,767 $ 115,229 $ 360,025 $ 323,924
Cost of Revenue        
Total Cost of Revenue 81,029 62,795 216,044 178,492
Gross Profit 39,738 52,434 143,981 145,432
Services & Support [Member]        
Revenue        
Total Revenue 17,314 17,914 48,821 52,457
Cost of Revenue        
Total Cost of Revenue 9,379 11,386 28,860 33,855
Gross Profit $ 7,935 $ 6,528 $ 19,961 $ 18,602
v3.21.2
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
Statement Of Income And Comprehensive Income [Abstract]        
Net Income (Loss) $ (10,427) $ 5,481 $ (4,445) $ (3,736)
Other Comprehensive Income (Loss), net of tax        
Net unrealized gain (loss) on available-for-sale securities (61) (45) (348) 445
Defined benefit plan adjustments 124 244 435 576
Foreign currency translation (1,389) 2,469 (2,914) 2,718
Other Comprehensive Income (Loss), net of tax (1,326) 2,668 (2,827) 3,739
Comprehensive Income (Loss), net of tax $ (11,753) $ 8,149 $ (7,272) $ 3
v3.21.2
Condensed Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($)
shares in Thousands, $ in Thousands
Total
Common Stock [Member]
Additional Paid-In Capital [Member]
Retained Earnings [Member]
Treasury Stock [Member]
Accumulated Other Comprehensive Loss [Member]
Beginning Balance at Dec. 31, 2019 $ 380,426 $ 797 $ 274,632 $ 806,702 $ (685,288) $ (16,417)
Beginning Balance, Shares at Dec. 31, 2019   79,652        
Net Income (Loss) (9,969)     (9,969)    
Other comprehensive income (loss), net of tax (1,392)         (1,392)
Dividend payments ($0.09 per share) (4,328)     (4,328)    
Dividends accrued on unvested RSUs (32)     (32)    
Deferred compensation adjustments, net of tax (2,758)       (2,758)  
PSUs, RSUs and restricted stock vested (23)     (1,524) 1,501  
Stock-based compensation expense 1,791   1,791      
Ending Balance at Mar. 31, 2020 363,715 $ 797 276,423 790,849 (686,545) (17,809)
Ending Balance, Shares at Mar. 31, 2020   79,652        
Beginning Balance at Dec. 31, 2019 380,426 $ 797 274,632 806,702 (685,288) (16,417)
Beginning Balance, Shares at Dec. 31, 2019   79,652        
Net Income (Loss) (3,736)          
Other comprehensive income (loss), net of tax 3,739          
Ending Balance at Sep. 30, 2020 369,593 $ 797 279,688 788,294 (686,508) (12,678)
Ending Balance, Shares at Sep. 30, 2020   79,652        
Beginning Balance at Mar. 31, 2020 363,715 $ 797 276,423 790,849 (686,545) (17,809)
Beginning Balance, Shares at Mar. 31, 2020   79,652        
Net Income (Loss) 752     752    
Other comprehensive income (loss), net of tax 2,463         2,463
Dividend payments ($0.09 per share) (4,337)     (4,337)    
Dividends accrued on unvested RSUs (28)     (28)    
Deferred compensation adjustments, net of tax (24)       (24)  
PSUs, RSUs and restricted stock vested (2)     (16) 14  
Stock-based compensation expense 1,655   1,655      
Ending Balance at Jun. 30, 2020 364,194 $ 797 278,078 787,220 (686,555) (15,346)
Ending Balance, Shares at Jun. 30, 2020   79,652        
Net Income (Loss) 5,481     5,481    
Other comprehensive income (loss), net of tax 2,668         2,668
Dividend payments ($0.09 per share) (4,328)     (4,328)    
Dividends accrued on unvested RSUs (12)     (12)    
Deferred compensation adjustments, net of tax (12)       (12)  
PSUs, RSUs and restricted stock vested (8)     (67) 59  
Stock-based compensation expense 1,610   1,610      
Ending Balance at Sep. 30, 2020 369,593 $ 797 279,688 788,294 (686,508) (12,678)
Ending Balance, Shares at Sep. 30, 2020   79,652        
Beginning Balance at Dec. 31, 2020 $ 372,944 $ 797 281,466 781,813 (679,493) (11,639)
Beginning Balance, Shares at Dec. 31, 2020 79,652 79,652        
Net Income (Loss) $ 896     896    
Other comprehensive income (loss), net of tax (1,956)         (1,956)
Dividend payments ($0.09 per share) (4,361)     (4,361)    
Dividends accrued on unvested RSUs (68)     (68)    
Deferred compensation adjustments, net of tax (50)       (50)  
PSUs, RSUs and restricted stock vested (81)     (1,683) 1,602  
Stock options exercised 1,244     (476) 1,720  
Stock-based compensation expense 1,807   1,807      
Ending Balance at Mar. 31, 2021 370,375 $ 797 283,273 776,121 (676,221) (13,595)
Ending Balance, Shares at Mar. 31, 2021   79,652        
Beginning Balance at Dec. 31, 2020 $ 372,944 $ 797 281,466 781,813 (679,493) (11,639)
Beginning Balance, Shares at Dec. 31, 2020 79,652 79,652        
Net Income (Loss) $ (4,445)          
Other comprehensive income (loss), net of tax (2,827)          
Ending Balance at Sep. 30, 2021 $ 363,753 $ 797 286,923 760,398 (669,899) (14,466)
Ending Balance, Shares at Sep. 30, 2021 79,652 79,652        
Beginning Balance at Mar. 31, 2021 $ 370,375 $ 797 283,273 776,121 (676,221) (13,595)
Beginning Balance, Shares at Mar. 31, 2021   79,652        
Net Income (Loss) 5,086     5,086    
Other comprehensive income (loss), net of tax 455         455
Dividend payments ($0.09 per share) (4,374)     (4,374)    
Dividends accrued on unvested RSUs (128)     (128)    
Deferred compensation adjustments, net of tax (12)       (12)  
PSUs, RSUs and restricted stock vested (3)     (32) 29  
Stock options exercised 2,308     (619) 2,927  
Stock-based compensation expense 1,808   1,808      
Ending Balance at Jun. 30, 2021 375,515 $ 797 285,081 776,054 (673,277) (13,140)
Ending Balance, Shares at Jun. 30, 2021   79,652        
Net Income (Loss) (10,427)     (10,427)    
Other comprehensive income (loss), net of tax (1,326)         (1,326)
Dividend payments ($0.09 per share) (4,389)     (4,389)    
Dividends accrued on unvested RSUs 2     2    
Deferred compensation adjustments, net of tax (12)       (12)  
PSUs, RSUs and restricted stock vested (11)     (185) 174  
Stock options exercised 2,559     (657) 3,216  
Stock-based compensation expense 1,842   1,842      
Ending Balance at Sep. 30, 2021 $ 363,753 $ 797 $ 286,923 $ 760,398 $ (669,899) $ (14,466)
Ending Balance, Shares at Sep. 30, 2021 79,652 79,652        
v3.21.2
Condensed Consolidated Statements of Changes in Stockholders' Equity (Unaudited) (Parenthetical) - $ / shares
 3 Months Ended
Sep. 30, 2021
Jun. 30, 2021
Mar. 31, 2021
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
Statement Of Stockholders Equity [Abstract]            
Dividend payments $ 0.09 $ 0.09 $ 0.09 $ 0.09 $ 0.09 $ 0.09
v3.21.2
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
$ in Thousands
 9 Months Ended 12 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Dec. 31, 2020
Cash flows from operating activities:      
Net loss $ (4,445) $ (3,736)  
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:      
Depreciation and amortization 12,246 12,525  
Gain on investments (3,320) (1,819)  
Stock-based compensation expense 5,457 5,056  
Deferred income taxes 437 (1)  
Other 89 195  
Asset impairments   65  
Changes in operating assets and liabilities:      
Accounts receivable, net (26,346) (9,131)  
Other receivables 11,152 (6,224)  
Inventory, net (2,669) (21,170)  
Prepaid expenses, other current assets and other assets (8,514) (672)  
Accounts payable 29,614 14,204  
Accrued expenses and other liabilities 10,392 5,618  
Income taxes payable, net 4,798 (227)  
Net cash provided by (used in) operating activities 28,891 (5,317)  
Cash flows from investing activities:      
Purchases of property, plant and equipment (3,572) (5,082)  
Proceeds from sales and maturities of available-for-sale investments 28,305 86,145  
Purchases of available-for-sale investments (28,853) (42,641)  
Acquisition of note receivable   (523)  
Insurance proceeds received 500    
Net cash (used in) provided by investing activities (3,620) 37,899  
Cash flows from financing activities:      
Proceeds from stock option exercises 6,111    
Tax withholdings related to stock-based compensation settlements (113)    
Dividend payments (13,124) (12,993)  
Repayment of bonds payable   (24,600)  
Net cash used in financing activities (7,126) (37,593)  
Net increase (decrease) in cash, cash equivalents and restricted cash 18,145 (5,011)  
Effect of exchange rate changes (2,719) 2,641  
Cash, cash equivalents and restricted cash, beginning of period 60,179 73,773 $ 73,773
Cash, cash equivalents and restricted cash, end of period 75,605 71,403 $ 60,179
Supplemental disclosure of non-cash investing activities:      
Right-of-use assets obtained in exchange for lease obligations 1,833 231  
Purchases of property, plant and equipment included in accounts payable $ 100 $ 442  
v3.21.2
Summary of Significant Accounting Policies
 9 Months Ended
Sep. 30, 2021
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements of ADTRAN®, Inc. and its subsidiaries (“ADTRAN”, the “Company”, “we”, “our” or “us”) have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) applicable to interim financial information presented in Quarterly Reports on Form 10-Q. Accordingly, certain information and notes required by generally accepted accounting principles in the United States of America (“U.S. GAAP”) for complete financial statements are not included herein. The December 31, 2020 Condensed Consolidated Balance Sheet is derived from audited financial statements but does not include all disclosures required by U.S. GAAP.

In the opinion of management, all adjustments necessary to fairly state these interim statements have been recorded and are of a normal and recurring nature. The results of operations for an interim period are not necessarily indicative of the results for the full year. The interim financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in ADTRAN’s Annual Report on Form 10-K for the year ended December 31, 2020, filed with the SEC on February 26, 2021.

Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expense during the reporting period. The more significant estimates include excess and obsolete inventory reserves, warranty reserves, customer rebates, determination and accrual of deferred revenue components of multi-element sales agreements, estimated costs to complete obligations associated with deferred and accrued revenues and network installations, estimated income tax provision and income tax contingencies, fair value of stock-based compensation, assessment of goodwill and other intangibles for impairment, estimated lives of intangible assets, estimated pension liability and fair value of investments. Actual amounts could differ significantly from these estimates.

We assessed certain accounting matters that generally require consideration of forecasted financial information in context with the information reasonably available to us and the unknown future impacts of the SARS-CoV-2 coronavirus/COVID-19 global pandemic (or variants of the SARS-CoV-2 coronavirus, including the Delta variant) as well as supply chain constraints as of September 30, 2021 and through the date of this report. The accounting matters assessed included, but were not limited to, the allowance for expected credit losses, stock-based compensation, carrying value of goodwill, intangibles and other long-lived assets, financial assets, valuation allowances for tax assets, revenue recognition and costs of revenue. Future conditions related to the magnitude and duration of the COVID-19 pandemic, as well as other factors, including supply chain constraints, could result in further impacts to our consolidated financial statements in future reporting periods.

Correction of an Immaterial Misstatement

During the three months ended March 31, 2020, it was determined that certain investments held in the Company’s stock for a deferred compensation plan accounted for as a Rabbi trust were incorrectly classified as long-term investments with the fair value of such investments incorrectly marked to market at each period end rather than classified as Treasury stock held at historical cost. This plan has been in existence since 2011. The Company corrected this misstatement as an out-of-period adjustment in the three months ended March 31, 2020 by remeasuring the investment assets to their historical cost basis through the recording of a net investment gain of $1.5 million in the unaudited Condensed Consolidated Statement of Income (Loss) and then correcting the classification by decreasing the long-term investment balance at its remeasured cost basis of $2.8 million to Treasury stock in the unaudited Condensed Consolidated Balance Sheet as of March 31, 2020. Management has determined that this misstatement was not material to any of its previously issued financial statements and that the correction of the misstatement was not material to the Company’s 2020 annual financial results on either a quantitative or qualitative basis.

Recently Adopted Accounting Pronouncements

We recently adopted the following accounting standards, which had the following impacts on our condensed consolidated financial statements:

 

In August 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2018-14, Compensation – Retirement Benefits – Defined Benefit Plans – General (Subtopic 715-20): Disclosure Framework – Changes to the Disclosure Requirements for Defined Benefit Plans, which makes changes to and clarifies the disclosure requirements related to defined benefit pension and other postretirement plans. ASU 2018-14 requires additional disclosures related to the reasons for significant gains and losses affecting the benefit obligation and an explanation of any other significant changes in the benefit obligation or plan assets that are not otherwise apparent in other disclosures required by Accounting Standards Codification (“ASC”) 715. ASU 2018-14 also clarifies the guidance in ASC 715 to require disclosure of the projected benefit obligation (“PBO”) and fair value of plan assets for pension plans with PBOs in excess of plan assets and the accumulated benefit obligation (“ABO”) and fair value of plan assets for pension plans with ABOs in excess of plan assets. ASU 2018-14 became effective for public business entities for fiscal years ending after December 15, 2020. The adoption of this standard did not have a material effect on the disclosures in the condensed consolidated financial statements.

 

In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which simplifies the accounting for income taxes by removing various exceptions, such as the exception to the incremental approach for intra-period tax allocation when there is a loss from continuing operations and income or a gain from other items. The amendments in this update also simplify the accounting for income taxes related to income-based franchise taxes and require that an entity reflect enacted tax laws or rates in the annual effective tax rate computation in the interim period that includes the enactment date. The Company early adopted ASU 2019-12 on April 1, 2020, which was applied on a prospective basis as if the Company adopted the standard on January 1, 2020. The Company early adopted the standard to take advantage of the simplification of rules for income taxes on intra-period tax allocations. Specifically, the adoption of this standard resulted in the recognition of approximately $0.1 million of tax benefit in other comprehensive income (loss) for the three months ended March 31, 2020, that otherwise would have been recognized in continuing operations had the intra-period tax allocation been completed. There were no other impacts from this standard on the condensed consolidated financial statements.

 

Recent Accounting Pronouncements Not Yet Adopted 
v3.21.2
Cash, Cash Equivalents and Restricted Cash
 9 Months Ended
Sep. 30, 2021
Cash And Cash Equivalents [Abstract]  
Cash, Cash Equivalents and Restricted Cash

2. CASH, CASH EQUIVALENTS AND RESTRICTED CASH

The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the Condensed Consolidated Balance Sheets that sum to the total of the same such amounts shown in the Condensed Consolidated Statements of Cash Flows:

 

 

 

As of

 

 

As of

 

(In thousands)

 

September 30, 2021

 

 

December 31, 2020

 

Cash and cash equivalents

 

$

75,503

 

 

$

60,161

 

Restricted cash

 

 

102

 

 

 

18

 

Cash, cash equivalents and restricted cash

 

$

75,605

 

 

$

60,179

 

 

See Note 18 for additional information regarding restricted cash.
v3.21.2
Revenue
 9 Months Ended
Sep. 30, 2021
Revenue From Contract With Customer [Abstract]  
Revenue

3. REVENUE

The following is a description of the principal activities from which revenue is generated by reportable segment:

Network Solutions Segment - Includes hardware products and software-defined next-generation virtualized solutions used in service provider or business networks, as well as prior generation products.

Services & Support Segment - Includes maintenance, network implementation, solutions integration and managed services, which include hosted cloud services and subscription services.

Revenue by Category

 

In addition to our reportable segments, revenue is also reported for the following three categories – Access & Aggregation, Subscriber Solutions & Experience and Traditional & Other Products.

 

The following tables disaggregate revenue by reportable segment and revenue category:

 

 

 

Three Months Ended

 

 

 

September 30, 2021

 

 

September 30, 2020

 

(In thousands)

 

Network Solutions

 

 

Services & Support

 

 

Total

 

 

Network Solutions

 

 

Services & Support

 

 

Total

 

Access & Aggregation

 

$

77,104

 

 

$

12,069

 

 

$

89,173

 

 

$

71,919

 

 

$

13,504

 

 

$

85,423

 

Subscriber Solutions & Experience

 

 

42,093

 

 

 

2,819

 

 

 

44,912

 

 

 

40,843

 

 

 

2,282

 

 

 

43,125

 

Traditional & Other Products

 

 

1,570

 

 

 

2,426

 

 

 

3,996

 

 

 

2,467

 

 

 

2,128

 

 

 

4,595

 

Total

 

$

120,767

 

 

$

17,314

 

 

$

138,081

 

 

$

115,229

 

 

$

17,914

 

 

$

133,143

 

 

 

 

Nine Months Ended

 

 

 

September 30, 2021

 

 

September 30, 2020

 

(In thousands)

 

Network Solutions

 

 

Services & Support

 

 

Total

 

 

Network Solutions

 

 

Services & Support

 

 

Total

 

Access & Aggregation

 

$

215,464

 

 

$

33,747

 

 

$

249,211

 

 

$

194,695

 

 

$

39,470

 

 

$

234,165

 

Subscriber Solutions & Experience

 

 

139,459

 

 

 

7,832

 

 

 

147,291

 

 

 

118,907

 

 

 

6,790

 

 

 

125,697

 

Traditional & Other Products

 

 

5,102

 

 

 

7,242

 

 

 

12,344

 

 

 

10,322

 

 

 

6,197

 

 

 

16,519

 

Total

 

$

360,025

 

 

$

48,821

 

 

$

408,846

 

 

$

323,924

 

 

$

52,457

 

 

$

376,381

 

 

Revenue allocated to remaining performance obligations represents contract revenue that has not yet been recognized for contracts with a duration of greater than one year. As of September 30, 2021, we did not have any significant performance obligations related to customer contracts that had an original expected duration of one year or more, other than maintenance services, which are satisfied over time. As a practical expedient, for certain contracts we recognize revenue equal to the amounts that we are entitled to invoice, which correspond to the value of completed performance obligations to date. The amount related to these performance obligations was $20.7 million and $17.7 million as of September 30, 2021 and December 31, 2020, respectively. The Company expects to recognize 64% of the $20.7 million as of September 30, 2021 over the next 12 months, with the remainder to be recognized thereafter.

The following table provides information about receivables, contract assets and unearned revenue from contracts with customers:

 

 

 

As of

 

 

As of

 

(In thousands)

 

September 30, 2021

 

 

December 31, 2020

 

Accounts receivable, net

 

$

124,146

 

 

$

98,827

 

Contract assets(1)

 

$

999

 

 

$

63

 

Unearned revenue

 

$

16,394

 

 

$

14,092

 

Non-current unearned revenue

 

$

7,426

 

 

$

6,888

 

 

(1) Included in other receivables on the Condensed Consolidated Balance Sheets.

 

Of the outstanding unearned revenue balances as of December 31, 2020, $2.0 million and $9.8 million were recognized as revenue during the three and nine months ended September 30, 2021, respectively.
v3.21.2
Income Taxes
 9 Months Ended
Sep. 30, 2021
Income Tax Disclosure [Abstract]  
Income Taxes

4. INCOME TAXES

Our effective tax rate increased from an expense of 9.3% of pre-tax income for the three months ended September 30, 2020, to an expense of 14.1% of pre-tax loss for the three months ended September 30, 2021 and increased from a benefit of 36.8% of pre-tax loss for the nine months ended September 30, 2020 to an expense of 354.5% of pre-tax loss for the nine months ended September 30, 2021. The change in the effective tax rate for the three months ended September 30, 2021 was driven by tax expense in our international operations and additional changes in the valuation allowance related to our domestic operations. The change in the effective tax rate for the nine months ended September 30, 2021 was primarily driven by a tax benefit of $7.8 million recognized during the nine months ended September 30, 2020 as a result of the passing of the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) on March 27, 2020, which allowed for the carryback of federal net operating losses, partially offset with tax expense in our international operations in the current quarter.

On February 12, 2021, the Alabama Business Tax Competitiveness Act (the "Act") was signed into law. As a result of the Act, we recognized an expense of $1.6 million in the first quarter of 2021 related to the revaluation of our deferred tax assets, which was offset by changes in our valuation allowance previously recorded against our domestic deferred tax assets.

 

During the third quarter of 2021, management pursued a claim for refund related to the revocation of the IRC Section 59(e) election that was made on our originally filed 2018 U.S. federal tax return. The Company filed a related carryback claim of net operating losses generated in 2018 to prior years as allowed under the CARES Act that was passed in the first quarter of 2020. An IRS Section 59(e) election is generally non-revocable except in cases for which IRS Commissioner’s approval is given. Approval is granted only in rare and unusual circumstances. The Company filed a private letter ruling (the "PLR") request to revoke our election. To date, a response to the PLR has not been published. As a result of these filings, and management’s position to pursue them through appeals, if necessary, we have established a receivable in the amount of $15.2 million and a deferred tax asset related to our additional research and development credit carryforward in the amount of $1.8 million that would be available if our revocation request is successful, offset with an uncertain tax liability of $17.0 million within our financials as of September 30, 2021.

 

The Company continually reviews the adequacy of its valuation allowance and recognizes the benefits of deferred tax assets only as the assessment indicates that it is more likely than not that the deferred tax assets will be recognized in accordance with ASC 740, Income Taxes. As of September 30, 2021, the Company had deferred tax assets totaling $59.2 million, and a valuation allowance totaling $50.2 million against those deferred tax assets. The remaining $9.0 million in deferred tax assets not offset by a valuation allowance are located in various foreign jurisdictions where the Company believes it is more likely than not we will realize these deferred tax assets. During the nine months ended September 30, 2021, the total increase in the valuation allowance against our domestic and international deferred tax assets was recorded in the amount of $4.0 million and $0.4 million, respectively. Our assessment of the realizability of our deferred tax assets includes the evaluation of historical operating results as well as the evaluation of evidence which requires significant judgement, including the evaluation of our three-year cumulative income position, future taxable income projections and tax planning strategies. Should management’s conclusion change in the future and an additional valuation allowance or a partial or full release of the valuation allowance becomes necessary, it may have a material effect on our consolidated financial statements.

Supplemental balance sheet information related to deferred tax assets is as follows:

 

 

 

As of September 30, 2021

 

(In thousands)

 

Deferred Tax Assets

 

 

Valuation Allowance

 

 

Deferred Tax Assets, net

 

Domestic

 

$

47,839

 

 

$

(47,839

)

 

$

—

 

International

 

 

11,350

 

 

 

(2,393

)

 

 

8,957

 

Total

 

$

59,189

 

 

$

(50,232

)

 

$

8,957

 

 

 

 

As of December 31, 2020

 

(In thousands)

 

Deferred Tax Assets

 

 

Valuation Allowance

 

 

Deferred Tax Assets, net

 

Domestic

 

$

43,791

 

 

$

(43,791

)

 

$

—

 

International

 

 

11,896

 

 

 

(2,027

)

 

 

9,869

 

Total

 

$

55,687

 

 

$

(45,818

)

 

$

9,869

 

 

 

The change in the unrecognized income tax benefits for the nine months ended September 30, 2021 and year ended December 31, 2020, is reconciled below:

 

(In thousands)

 

For the Nine Months Ended
 September 30, 2021

 

 

For the Year Ended December 31, 2020

 

Balance at beginning of period

 

$

1,078

 

 

$

1,487

 

Increases for tax position related to:

 

 

 

 

 

 

Prior years

 

 

17,025

 

 

 

4

 

Current year

 

 

102

 

 

 

165

 

Decreases for tax positions related to:

 

 

 

 

 

 

Prior years

 

 

(27

)

 

 

—

 

Expiration of applicable statute of limitations

 

 

—

 

 

 

(578

)

Balance at end of period

 

$

18,178

 

 

$

1,078

 

 

As of September 30, 2021 and December 31, 2020, the liability for unrecognized tax benefit was $18.2 million and $1.1 million, respectively, of which $18.1 million and $1.0 million, respectively, would reduce the effective tax rate if we were successful in upholding all of the uncertain positions and recognized the amounts recorded. We classify interest and penalties recognized on the liability for unrecognized tax benefits as income tax expense. As of September 30, 2021 and December 31, 2020, the balances of accrued interest and penalties were $0.3 million and $0.3 million, respectively.

 

We do not anticipate a single tax position generating a significant increase or decrease in our liability for unrecognized tax benefits within 12 months of this reporting date, unless a resolution is reached regarding the item noted above. We file income tax returns in the U.S. for federal and various state jurisdictions and several foreign jurisdictions. We are not currently under audit by the Internal Revenue Service. Generally, we are not subject to changes in income taxes by any taxing jurisdiction for the years prior to 2017.
v3.21.2
Stock-Based Compensation
 9 Months Ended
Sep. 30, 2021
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]  
Stock-Based Compensation

5. STOCK-BASED COMPENSATION

The following table summarizes stock-based compensation expense related to stock options, performance stock units (“PSUs”), restricted stock units (“RSUs”) and restricted stock:

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

(In thousands)

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Stock-based compensation expense included in cost of revenue

 

$

133

 

 

$

101

 

 

$

389

 

 

$

303

 

Selling, general and administrative expense

 

 

1,116

 

 

 

953

 

 

 

3,312

 

 

 

2,999

 

Research and development expense

 

 

593

 

 

 

556

 

 

 

1,756

 

 

 

1,754

 

Stock-based compensation expense included in operating expenses

 

 

1,709

 

 

 

1,509

 

 

 

5,068

 

 

 

4,753

 

Total stock-based compensation expense

 

 

1,842

 

 

 

1,610

 

 

 

5,457

 

 

 

5,056

 

Tax benefit for expense associated with stock options, PSUs, RSUs and restricted stock

 

 

(460

)

 

 

(384

)

 

 

(1,343

)

 

 

(1,205

)

Total stock-based compensation expense, net of tax

 

$

1,382

 

 

$

1,226

 

 

$

4,114

 

 

$

3,851

 

 

PSUs, RSUs and Restricted Stock

 

The following table summarizes PSUs, RSUs and restricted stock outstanding as of December 31, 2020 and September 30, 2021 and the changes that occurred during the nine months ended September 30, 2021:

 

 

 

Number of
Shares
(in thousands)

 

 

Weighted Avg. Grant Date Fair Value
(per share)

 

Unvested PSUs, RSUs and restricted stock outstanding, December 31, 2020

 

 

1,846

 

 

$

11.49

 

PSUs, RSUs and restricted stock granted

 

 

359

 

 

$

16.75

 

PSUs, RSUs and restricted stock vested

 

 

(21

 )

 

$

13.00

 

PSUs, RSUs and restricted stock forfeited

 

 

(65

)

 

$

11.93

 

Unvested PSUs, RSUs and restricted stock outstanding, September 30, 2021

 

 

2,119

 

 

$

12.40

 

 

During each of the nine month periods ended September 30, 2021 and 2020, the Company granted 0.3 million performance-based PSUs to its executive officers and certain employees. The grant-date fair value of these performance-based awards was based on the closing price of the Company’s stock on the date of grant. These awards vest over two-year and three-year periods, respectively, subject to the grantee’s continued employment, with the ability to earn shares in a range of 0% to 142.8% of the awarded number of PSUs based on the achievement of defined performance targets. Equity-based compensation expense with respect to these awards may be adjusted over the vesting period to reflect the probability of achievement of performance targets defined in the award agreements.

 

The fair value of RSUs and restricted stock is equal to the closing price of our stock on the date of grant. The fair value of PSUs with market conditions is calculated using a Monte Carlo simulation valuation method.

 

As of September 30, 2021, total unrecognized compensation expense related to non-vested market-based PSUs, RSUs and restricted stock was approximately $11.3 million, which will be recognized over the remaining weighted-average period of 2.3 years. In addition, there was $7.5 million of unrecognized compensation expense related to unvested 2020 and 2021 performance-based PSUs, which will be recognized over the remaining requisite service period of 1.3 years if achievement of the performance obligation becomes probable. Unrecognized compensation expense will be adjusted for actual forfeitures.

 

As of September 30, 2021, 4.0 million shares were available for issuance under stockholder-approved equity plans.

Stock Options

The following table summarizes stock options outstanding as of December 31, 2020 and September 30, 2021 and the changes that occurred during the nine months ended September 30, 2021:

 

 

 

Number of
Stock Options
(in thousands)

 

 

Weighted Avg.
Exercise Price
(per share)

 

 

Weighted Avg.
Remaining
Contractual
Life
(in years)

 

 

Aggregate
Intrinsic Value
(in thousands)

 

Stock options outstanding, December 31, 2020

 

 

2,718

 

 

$

21.17

 

 

 

2.9

 

 

$

—

 

Stock options exercised

 

 

(363

)

 

$

16.81

 

 

 

 

 

 

1,411

 

Stock options expired

 

 

(607

)

 

$

28.93

 

 

 

 

 

 

18

 

Stock options outstanding, September 30, 2021

 

 

1,748

 

 

$

19.37

 

 

 

2.7

 

 

$

2,060

 

Stock options exercisable, September 30, 2021

 

 

1,748

 

 

$

19.37

 

 

 

2.7

 

 

$

2,060

 

As of September 30, 2021, there was no unrecognized compensation expense related to stock options as all awards vested in prior periods.

There were no stock options granted during the nine months ended September 30, 2021 and 2020. All of the options were previously issued at exercise prices that approximated fair market value at the date of grant.

 

The aggregate intrinsic value of stock options represents the total pre-tax intrinsic value (the difference between ADTRAN’s closing stock price on the last trading day of the quarter and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on September 30, 2021. The amount of aggregate intrinsic value was $2.1 million as of September 30, 2021 and will change based on the fair market value of ADTRAN’s stock. The total pre-tax intrinsic value of options exercised during the nine months ended September 30, 2021 was $1.4 million.
v3.21.2
Investments
 9 Months Ended
Sep. 30, 2021
Investments Debt And Equity Securities [Abstract]  
Investments

 

6. INVESTMENTS

Debt Securities and Other Investments

The following debt securities and other investments were included on the Condensed Consolidated Balance Sheet and recorded at fair value:

 

 

 

As of September 30, 2021

 

 

 

Amortized

 

 

Gross Unrealized

 

 

Fair

 

(In thousands)

 

Cost

 

 

Gains

 

 

Losses

 

 

Value

 

Corporate bonds

 

$

13,381

 

 

$

39

 

 

$

(6

)

 

$

13,414

 

Municipal fixed-rate bonds

 

 

2,236

 

 

 

13

 

 

 

(1

)

 

 

2,248

 

Asset-backed bonds

 

 

3,497

 

 

 

17

 

 

 

(1

)

 

 

3,513

 

Mortgage/Agency-backed bonds

 

 

9,194

 

 

 

35

 

 

 

(17

)

 

 

9,212

 

U.S. government bonds

 

 

16,031

 

 

 

34

 

 

 

(13

)

 

 

16,052

 

Foreign government bonds

 

 

544

 

 

 

1

 

 

 

(2

)

 

 

543

 

Other

 

 

533

 

 

 

—

 

 

 

—

 

 

 

533

 

Available-for-sale debt securities held at fair value

 

$

45,416

 

 

$

139

 

 

$

(40

)

 

$

45,515

 

 

 

 

As of December 31, 2020

 

 

 

Amortized

 

 

Gross Unrealized

 

 

Fair

 

(In thousands)

 

Cost

 

 

Gains

 

 

Losses

 

 

Value

 

Corporate bonds

 

$

11,762

 

 

$

123

 

 

$

—

 

 

$

11,885

 

Municipal fixed-rate bonds

 

 

2,854

 

 

 

30

 

 

 

—

 

 

 

2,884

 

Asset-backed bonds

 

 

6,634

 

 

 

74

 

 

 

—

 

 

 

6,708

 

Mortgage/Agency-backed bonds

 

 

11,536

 

 

 

114

 

 

 

(6

)

 

 

11,644

 

U.S. government bonds

 

 

9,763

 

 

 

112

 

 

 

—

 

 

 

9,875

 

Foreign government bonds

 

 

1,334

 

 

 

4

 

 

 

(1

)

 

 

1,337

 

Commercial Paper

 

 

250

 

 

 

—

 

 

 

—

 

 

 

250

 

Other

 

 

533

 

 

 

—

 

 

 

—

 

 

 

533

 

Available-for-sale debt securities held at fair value

 

$

44,666

 

 

$

457

 

 

$

(7

)

 

$

45,116

 

 

The contractual maturities related to debt securities and other investments were as follows:

 

 

 

As of September 30, 2021

 

(In thousands)

 

Corporate
bonds

 

 

Municipal
fixed-rate
bonds

 

 

Asset-
backed
bonds

 

 

Mortgage/
Agency-
backed bonds

 

 

 U.S. government
bonds

 

 

Foreign government bonds

 

 

Other

 

Less than one year

 

$

275

 

 

$

652

 

 

$

—

 

 

$

638

 

 

$

2,593

 

 

$

—

 

 

$

533

 

One to two years

 

 

4,494

 

 

 

534

 

 

 

—

 

 

 

1,005

 

 

 

4,021

 

 

 

246

 

 

 

—

 

Two to three years

 

 

6,616

 

 

 

761

 

 

 

93

 

 

 

1,102

 

 

 

5,810

 

 

 

297

 

 

 

—

 

Three to five years

 

 

2,029

 

 

 

301

 

 

 

1,573

 

 

 

235

 

 

 

3,628

 

 

 

—

 

 

 

—

 

Five to ten years

 

 

—

 

 

 

—

 

 

 

785

 

 

 

1,322

 

 

 

—

 

 

 

—

 

 

 

—

 

More than ten years

 

 

—

 

 

 

—

 

 

 

1,062

 

 

 

4,910

 

 

 

—

 

 

 

—

 

 

 

—

 

Total

 

$

13,414

 

 

$

2,248

 

 

$

3,513

 

 

$

9,212

 

 

$

16,052

 

 

$

543

 

 

$

533

 

 

Actual maturities may differ from contractual maturities as some borrowers have the right to call or prepay obligations with or without call or prepayment penalties.

Realized gains and losses on sales of debt securities are computed under the specific identification method. The following table presents the gross realized gains and losses related to our debt securities:

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

(In thousands)

 

2021

 

 

2020

 

 

2021

 

 

2020

 

     Gross realized gain on debt securities

 

$

22

 

 

$

70

 

 

$

206

 

 

$

303

 

     Gross realized loss on debt securities

 

 

(17

)

 

 

(6

)

 

 

(53

)

 

 

(45

)

Total gain recognized, net

 

$

5

 

 

$

64

 

 

$

153

 

 

$

258

 

 

Income generated from available-for-sale debt securities was recorded as interest and dividend income in the Condensed Consolidated Statements of Income (Loss). No allowance for credit loss was recorded for the nine months ended September 30, 2021 and 2020 related to available-for-sale debt securities. The Company’s investment policy provides limitations for issuer concentration, which limits, at the time of purchase, the concentration in any one issuer to 5% of the market value of our total investment portfolio. The Company did not purchase any available-for-sale debt security with credit deterioration during the nine months ended September 30, 2021.

 

Marketable Equity Securities

 

Our marketable equity securities consist of publicly traded stock, interests in funds and certain other investments measured at fair value or cost (where appropriate).

 

In March 2019, an outstanding note receivable of $4.3 million owed to the Company was repaid and reissued in the form of debt and equity. Of the outstanding $4.3 million, $3.4 million was issued as an equity investment. The Company elected to record this equity investment that does not have a readily determinable fair value using the measurement alternative. Under the measurement alternative, equity investments that do not have a readily determinable fair value can be recorded at cost less impairment, if any, adjusted for observable price changes for an identical or similar investment. During the year ended December 31, 2020, impairment charges totaling $2.6 million were recorded related to this equity investment, which was included in net investment gain (loss) on the Condensed Consolidated Statement of Income (Loss). As a result, the carrying value of this investment was $0.8 million as of September 30, 2021 and December 31, 2020. The remaining amount, $0.9 million of the original $4.3 million note receivable, was reissued as a new note receivable, which is included in long-term investments on the Condensed Consolidated Balance Sheets as of September 30, 2021 and December 31, 2020. No impairment charge was recognized related to the note receivable as it is a secured loan.

Realized and unrealized gains and losses related to marketable equity securities were as follows:

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

(In thousands)

 

2021

 

 

2020

 

 

2021

 

 

2020

 

     Realized gain (loss) on equity securities sold

 

$

—

 

 

$

623

 

 

$

(55

)

 

$

(1,485

)

     Unrealized (loss) gain on equity securities held

 

 

(68

)

 

 

2,157

 

 

 

2,844

 

 

 

3,046

 

Total gain (loss) recognized, net

 

$

(68

)

 

$

2,780

 

 

$

2,789

 

 

$

1,561

 

 

Income generated from marketable equity securities was recorded as interest and dividend income in the Condensed Consolidated Statements of Income (Loss). U.S. GAAP establishes a three-level valuation hierarchy based upon observable and unobservable inputs for fair value measurement of financial instruments:


• Level 1 – Observable outputs; values based on unadjusted quoted prices for identical assets or liabilities in an active market;

• Level 2 – Significant inputs that are observable; values based on quoted prices in markets that are not active or model inputs that are observable either directly or indirectly;

• Level 3 – Significant unobservable inputs; values based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. These inputs could include information supplied by investees.

The Company’s cash equivalents and investments held at fair value are categorized into this hierarchy as follows:

 

 

 

 

 

 

Fair Value Measurements as of September 30, 2021 Using

 

(In thousands)

 

 Fair Value

 

 

Quoted Prices
in Active
Market for
Identical
Assets
(Level 1)

 

 

Significant
Other
Observable
Inputs
(Level 2)

 

 

Significant Unobservable Inputs
(Level 3)

 

Cash equivalents

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

$

532

 

 

$

532

 

 

$

—

 

 

$

—

 

Commercial paper

 

 

400

 

 

 

—

 

 

 

400

 

 

 

—

 

Available-for-sale debt securities

 

 

 

 

 

 

 

 

 

 

 

 

Corporate bonds

 

 

13,414

 

 

 

—

 

 

 

13,414

 

 

 

—

 

Municipal fixed-rate bonds

 

 

2,248

 

 

 

—

 

 

 

2,248

 

 

 

—

 

Asset-backed bonds

 

 

3,513

 

 

 

—

 

 

 

3,513

 

 

 

—

 

Mortgage/Agency-backed bonds

 

 

9,212

 

 

 

—

 

 

 

9,212

 

 

 

—

 

U.S. government bonds

 

 

16,052

 

 

 

16,052

 

 

 

—

 

 

 

—

 

Foreign government securities

 

 

543

 

 

 

—

 

 

 

543

 

 

 

—

 

Other

 

 

533

 

 

 

—

 

 

 

—

 

 

 

533

 

Marketable equity securities

 

 

 

 

 

 

 

 

 

 

 

 

Marketable equity securities – various industries

 

 

12,144

 

 

 

12,144

 

 

 

—

 

 

 

—

 

Deferred compensation plan assets

 

 

25,733

 

 

 

25,733

 

 

 

—

 

 

 

—

 

Other investments

 

 

1,400

 

 

 

1,400

 

 

 

—

 

 

 

—

 

Total

 

$

85,724

 

 

$

55,861

 

 

$

29,330

 

 

$

533

 

 

 

 

 

 

 

Fair Value Measurements as of December 31, 2020 Using

 

(In thousands)

 

 Fair Value

 

 

Quoted Prices
in Active
Market for
Identical
Assets
(Level 1)

 

 

Significant
Other
Observable
Inputs
(Level 2)

 

 

Significant Unobservable Inputs
(Level 3)

 

Cash equivalents

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

$

497

 

 

$

497

 

 

$

—

 

 

$

—

 

U.S. government bonds

 

 

350

 

 

 

350

 

 

 

—

 

 

 

—

 

Available-for-sale debt securities

 

 

 

 

 

 

 

 

 

 

 

 

Corporate bonds

 

 

11,885

 

 

 

—

 

 

 

11,885

 

 

 

—

 

Municipal fixed-rate bonds

 

 

2,884

 

 

 

—

 

 

 

2,884

 

 

 

—

 

Asset-backed bonds

 

 

6,708

 

 

 

—

 

 

 

6,708

 

 

 

—

 

Mortgage/Agency-backed bonds

 

 

11,644

 

 

 

—

 

 

 

11,644

 

 

 

—

 

U.S. government bonds

 

 

9,875

 

 

 

9,875

 

 

 

—

 

 

 

—

 

Foreign government bonds

 

 

1,337

 

 

 

—

 

 

 

1,337

 

 

 

—

 

Commercial paper

 

 

250

 

 

 

—

 

 

 

250

 

 

 

—

 

Other

 

 

533

 

 

 

—

 

 

 

—

 

 

 

533

 

Marketable equity securities

 

 

 

 

 

 

 

 

 

 

 

 

Marketable equity securities – various industries

 

 

10,963

 

 

 

10,963

 

 

 

—

 

 

 

—

 

Deferred compensation plan assets

 

 

23,891

 

 

 

23,891

 

 

 

—

 

 

 

—

 

Other investments

 

 

1,400

 

 

 

1,400

 

 

 

—

 

 

 

—

 

Total

 

$

82,217

 

 

$

46,976

 

 

$

34,708

 

 

$

533

 

 

The fair value of our Level 2 securities is calculated using a weighted average market price for each security. Market prices are obtained from a variety of industry standard data providers, large financial institutions and other third-party sources. These multiple market prices are used as inputs into a distribution-curve-based algorithm to determine the daily market value of each security.

 

The fair value of Level 3 securities is calculated based on unobservable inputs. Quantitative information with respect to unobservable inputs consists of third-party valuations performed in accordance with ASC 820 – Fair Value Measurement. Inputs used in preparing the third-party valuation included the following assumptions, among others: estimated discount rates and fair market yields.
v3.21.2
Inventory
 9 Months Ended
Sep. 30, 2021
Inventory Disclosure [Abstract]  
Inventory

7. INVENTORY

Inventory consisted of the following:

 

 

 

As of

 

 

As of

 

(In thousands)

 

September 30, 2021

 

 

December 31, 2020

 

Raw materials

 

$

66,777

 

 

$

47,026

 

Work in process

 

 

1,202

 

 

 

776

 

Finished goods

 

 

59,262

 

 

 

77,655

 

Total inventory, net

 

$

127,241

 

 

$

125,457

 

 

Inventory reserves are established for estimated excess and obsolete inventory equal to the difference between the cost of the inventory and the estimated net realizable value of the inventory based on estimated reserve percentages, which considers historical usage, known trends, inventory age and market conditions. As of September 30, 2021 and December 31, 2020, inventory reserves were $44.3 million and $39.6 million, respectively.
v3.21.2
Property, Plant and Equipment
 9 Months Ended
Sep. 30, 2021
Property Plant And Equipment [Abstract]  
Property, Plant and Equipment

8. PROPERTY, PLANT AND EQUIPMENT

 

Property, plant and equipment consisted of the following:

 

 

 

As of

 

 

As of

 

(In thousands)

 

September 30, 2021

 

 

December 31, 2020

 

Land

 

$

4,575

 

 

$

4,575

 

Building and land improvements

 

 

34,995

 

 

 

35,142

 

Building

 

 

68,156

 

 

 

68,169

 

Furniture and fixtures

 

 

19,925

 

 

 

19,965

 

Computer hardware and software

 

 

71,615

 

 

 

70,942

 

Engineering and other equipment

 

 

134,689

 

 

 

132,920

 

     Total property, plant and equipment

 

 

333,955

 

 

 

331,713

 

Less: accumulated depreciation

 

 

(277,399

)

 

 

(269,314

)

     Total property, plant and equipment, net

 

$

56,556

 

 

$

62,399

 

 

Long-lived assets used in operations are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable and the undiscounted cash flows estimated to be generated by the asset are less than the asset’s carrying value. Due to the current economic environment, particularly related to COVID-19, the Company assessed impairment triggers related to long-lived assets during the third quarters of 2021 and 2020. As a result, no impairment test of long-lived assets was performed as of September 30, 2021 and 2020, and no impairment losses of long-lived assets were recorded during the three or nine months ended September 30, 2021 and 2020.

 

Depreciation expense was $3.0 million and $3.1 million for the three months ended September 30, 2021 and 2020 respectively, and $9.1 million for both the nine months ended September 30, 2021 and 2020, which is recorded in cost of revenue, selling, general and administrative expenses and research and development expenses in the Condensed Consolidated Statements of Income (Loss).
v3.21.2
Goodwill
 9 Months Ended
Sep. 30, 2021
Goodwill Disclosure [Abstract]  
Goodwill

9. GOODWILL

Goodwill was $7.0 million as of September 30, 2021 and December 31, 2020, of which $6.6 million and $0.4 million was allocated to our Network Solutions and Services & Support reportable segments, respectively.

The Company evaluates the carrying value of goodwill during the fourth quarter of each year and between annual evaluations if events occur or circumstances change that could more likely than not reduce the fair value of the reporting unit below its carrying amount. We assess qualitative factors to determine whether the fair value of the reporting unit to which the goodwill is assigned is less than its carrying amount and recognize an impairment charge for the amount by which the carrying value exceeds the fair value of the reporting unit. No interim impairment test of goodwill was performed as of September 30, 2021 and 2020, and no impairment of goodwill was recorded during the three or nine months ended September 30, 2021 and 2020.
v3.21.2
Intangible Assets
 9 Months Ended
Sep. 30, 2021
Intangible Assets Net Excluding Goodwill [Abstract]  
Intangible Assets

10. INTANGIBLE ASSETS

Intangible assets consisted of the following:

 

 

 

As of September 30, 2021

 

 

As of December 31, 2020

 

(In thousands)

 

Gross Carrying Amount

 

 

Accumulated Amortization

 

 

Net Book Value

 

 

Gross Carrying Amount

 

 

Accumulated Amortization

 

 

Net Book Value

 

Customer relationships

 

$

20,876

 

 

$

(9,483

)

 

$

11,393

 

 

$

21,123

 

 

$

(8,055

)

 

$

13,068

 

Developed technology

 

 

8,200

 

 

 

(3,399

)

 

 

4,801

 

 

 

8,200

 

 

 

(2,546

)

 

 

5,654

 

Licensed technology

 

 

5,900

 

 

 

(2,322

)

 

 

3,578

 

 

 

5,900

 

 

 

(1,830

)

 

 

4,070

 

Supplier relationships

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2,800

 

 

 

(2,800

)

 

 

—

 

Licensing agreements

 

 

560

 

 

 

(207

)

 

 

353

 

 

 

560

 

 

 

(152

)

 

 

408

 

Patents

 

 

500

 

 

 

(346

)

 

 

154

 

 

 

500

 

 

 

(294

)

 

 

206

 

Trade names

 

 

210

 

 

 

(198

)

 

 

12

 

 

 

210

 

 

 

(146

)

 

 

64

 

Total

 

$

36,246

 

 

$

(15,955

)

 

$

20,291

 

 

$

39,293

 

 

$

(15,823

)

 

$

23,470

 

 

The Company evaluates the carrying value of intangible assets whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable and the undiscounted cash flows estimated to be generated by the asset are less than the asset’s carrying value. Due to the current economic environment, particularly related to COVID-19, the Company assessed impairment triggers related to intangible assets during the third quarters of 2021 and 2020. As a result, no impairment test of long-lived assets was performed as of September 30, 2021 and 2020, and no impairment losses of intangible assets were recorded during the three and nine months ended September 30, 2021 and 2020.

 

Amortization expense was $1.0 million in each of the three months ended September 30, 2021 and 2020, and $3.1 million and $3.4 million for the nine months ended September 30, 2021 and 2020, respectively, and was included in cost of revenue, selling, general and administrative expenses and research and development expenses in the Condensed Consolidated Statements of Income (Loss).

Estimated future amortization expense of intangible assets was as follows:

 

 

 

As of

 

(In thousands)

 

September 30, 2021

 

2021

 

$

984

 

2022

 

 

3,479

 

2023

 

 

3,327

 

2024

 

 

3,233

 

2025

 

 

3,027

 

Thereafter

 

 

6,241

 

Total

 

$

20,291

 
v3.21.2
Leases
 9 Months Ended
Sep. 30, 2021
Leases [Abstract]  
Leases

11. LEASES

Net Investment in Sales-Type Leases

We are the lessor in sales-type lease arrangements for network equipment, which consisted of the following:

 

 

As of

 

 

As of

 

(In thousands)

 

September 30, 2021

 

 

December 31, 2020

 

Current minimum lease payments receivable(1)

 

$

129

 

 

$

702

 

Non-current minimum lease payments receivable(2)

 

 

7

 

 

 

347

 

     Total minimum lease payments receivable

 

 

136

 

 

 

1,049

 

Less: Current unearned revenue

 

 

98

 

 

 

218

 

Less: Non-current unearned revenue

 

 

1

 

 

 

50

 

     Net investment in sales-type leases

 

$

37

 

 

$

781

 

 

(1)
Included in other receivables on the Condensed Consolidated Balance Sheets.
(2)
Included in other assets on the Condensed Consolidated Balance Sheets. 
v3.21.2
Revolving Credit Agreement
 9 Months Ended
Sep. 30, 2021
Debt Disclosure [Abstract]  
Revolving Credit Agreement

12. REVOLVING CREDIT AGREEMENT

On November 4, 2020, the Company, as borrower, entered into a Revolving Credit and Security Agreement and related Promissory Note (together, the “Revolving Credit Agreement”) with Cadence Bank, N.A., as lender (the “Lender”). The Revolving Credit Agreement provides the Company with a new $10.0 million secured revolving credit facility. Loans under the Revolving Credit Agreement will bear interest at a rate equal to 1.50% over the screen rate as obtained by Reuter’s, Bloomberg or another commercially available source as may be designated by the Lender from time to time; provided, however, that in no event shall the applicable rate of interest under the Revolving Credit Agreement be less than 1.50% per annum. Such loans are secured by all of the cash, securities, securities entitlements and investment property in a certain bank account, as outlined in the Revolving Credit Agreement, at a maximum loan-to-value ratio of 75% determined by dividing the full commitment amount under the Revolving Credit Agreement on the date of testing, determined by the Lender each fiscal quarter, by the market value of the collateral. The Revolving Credit Agreement matures on November 4, 2021, subject to earlier termination upon the occurrence of certain events of default. The Company had not made any draws under the Revolving Credit Agreement as of September 30, 2021.
v3.21.2
Alabama State Industrial Development Authority Financing and Economic Incentives
 9 Months Ended
Sep. 30, 2021
Text Block [Abstract]  
Alabama State Industrial Development Authority Financing and Economic Incentives

13. ALABAMA STATE INDUSTRIAL DEVELOPMENT AUTHORITY FINANCING AND ECONOMIC INCENTIVES

In conjunction with the 1995 expansion of our Huntsville, Alabama facility, we were approved for participation in an incentive program offered by the State of Alabama Industrial Development Authority (the “Authority”). Pursuant to the program, in January 1995, the Authority issued $20.0 million of its taxable revenue bonds (the “Taxable Revenue Bonds”) and loaned the proceeds from the sale of the Taxable Revenue Bonds to the Company. Further advances on the Taxable Revenue Bonds were made by the Authority, bringing the total amount to $50.0 million. The Taxable Revenue Bonds bore interest, payable monthly with an interest rate of 2% per annum. The Taxable Revenue Bonds aggregate principal amount of $24.6 million matured on January 1, 2020 and was repaid in full on January 2, 2020, using the funds held in a certificate of deposit by the Company.
v3.21.2
Stockholders' Equity
 9 Months Ended
Sep. 30, 2021
Equity [Abstract]  
Stockholders' Equity

14. STOCKHOLDERS’ EQUITY

 

Stock Repurchase Program

Since 1997, the Company’s Board of Directors has approved multiple share repurchase programs that have authorized repurchases of its common stock, which are implemented through open market or private purchases from time to time as conditions warrant. During the nine months ended September 30, 2021, we did not repurchase any shares of our common stock. As of September 30, 2021, we had the authority to purchase an additional 2.5 million shares of our common stock under the current authorization of up to 5.0 million shares.

Accumulated Other Comprehensive Income (Loss)

The following tables present the changes in accumulated other comprehensive loss, net of tax, by component:

 

 

 

Three Months Ended September 30, 2021

 

(In thousands)

 

Unrealized
Losses
on
Available-
for-Sale
Securities

 

 

Defined
Benefit Plan
Adjustments

 

 

Foreign
Currency
Adjustments

 

 

ASU 2018-02 Adoption

 

 

Total

 

As of June 30, 2021

 

$

(255

)

 

$

(9,310

)

 

$

(3,960

)

 

$

385

 

 

$

(13,140

)

Other comprehensive loss before
   reclassifications

 

 

(29

)

 

 

—

 

 

 

(1,389

)

 

 

—

 

 

 

(1,418

)

Amounts reclassified from accumulated other
   comprehensive income (loss)

 

 

(32

)

 

 

124

 

 

 

—

 

 

 

—

 

 

 

92

 

Net current period other comprehensive income (loss)

 

 

(61

)

 

 

124

 

 

 

(1,389

)

 

 

—

 

 

 

(1,326

)

As of September 30, 2021

 

$

(316

)

 

$

(9,186

)

 

$

(5,349

)

 

$

385

 

 

$

(14,466

)

 

 

 

 

 

Three Months Ended September 30, 2020

 

(In thousands)

 

Unrealized
Gains
(Losses)
on
Available-
for-Sale
Securities

 

 

Defined
Benefit Plan
Adjustments

 

 

Foreign
Currency
Adjustments

 

 

ASU 2018-02 Adoption

 

 

Total

 

As of June 30, 2020

 

$

206

 

 

$

(8,894

)

 

$

(7,043

)

 

$

385

 

 

$

(15,346

)

Other comprehensive income before
   reclassifications

 

 

494

 

 

 

—

 

 

 

2,469

 

 

 

—

 

 

 

2,963

 

Amounts reclassified from accumulated other
   comprehensive income (loss)

 

 

(539

)

 

 

244

 

 

 

—

 

 

 

—

 

 

 

(295

)

Net current period other comprehensive income (loss)

 

 

(45

)

 

 

244

 

 

 

2,469

 

 

 

—

 

 

 

2,668

 

As of September 30, 2020

 

$

161

 

 

$

(8,650

)

 

$

(4,574

)

 

$

385

 

 

$

(12,678

)

 

 

 

 

Nine Months Ended September 30, 2021

 

(In thousands)

 

Unrealized
Gains
(Losses)
on
Available-
for-Sale
Securities

 

 

Defined
Benefit Plan
Adjustments

 

 

Foreign
Currency
Adjustments

 

 

ASU 2018-02 Adoption

 

 

Total

 

As of December 31, 2020

 

$

32

 

 

$

(9,621

)

 

$

(2,435

)

 

$

385

 

 

$

(11,639

)

Other comprehensive loss before
   reclassifications

 

 

(358

)

 

 

—

 

 

 

(2,914

)

 

 

—

 

 

 

(3,272

)

Amounts reclassified from accumulated other
   comprehensive income

 

 

10

 

 

 

435

 

 

 

—

 

 

 

—

 

 

 

445

 

Net current period other comprehensive income (loss)

 

 

(348

)

 

 

435

 

 

 

(2,914

)

 

 

—

 

 

 

(2,827

)

As of September 30, 2021

 

$

(316

)

 

$

(9,186

)

 

$

(5,349

)

 

$

385

 

 

$

(14,466

)

 

 

 

Nine Months Ended September 30, 2020

 

(In thousands)

 

Unrealized
Gains
(Losses)
on
Available-
for-Sale
Securities

 

 

Defined
Benefit Plan
Adjustments

 

 

Foreign
Currency
Adjustments

 

 

ASU 2018-02 Adoption

 

 

Total

 

As of December 31, 2019

 

$

(284

)

 

$

(9,226

)

 

$

(7,292

)

 

$

385

 

 

$

(16,417

)

Other comprehensive income before
   reclassifications

 

 

444

 

 

 

—

 

 

 

2,718

 

 

 

—

 

 

 

3,162

 

Amounts reclassified from accumulated other
   comprehensive income

 

 

1

 

 

 

576

 

 

 

—

 

 

 

—

 

 

 

577

 

Net current period other comprehensive income

 

 

445

 

 

 

576

 

 

 

2,718

 

 

 

—

 

 

 

3,739

 

As of September 30, 2020

 

$

161

 

 

$

(8,650

)

 

$

(4,574

)

 

$

385

 

 

$

(12,678

)

The following tables present the details of reclassifications out of accumulated other comprehensive income (loss):

 

 

 

Three Months Ended September 30, 2021

(In thousands)

 

Amount
Reclassified
from
Accumulated
Other
Comprehensive
Income (Loss)

 

 

Affected Line Item in the
Statement Where Net
Income Is Presented

Unrealized gain (loss) on available-for-sale securities:

 

 

 

 

 

Net realized loss on sales of securities

 

$

42

 

 

Net investment gain (loss)

Defined benefit plan adjustments – actuarial gain

 

 

(180

)

 

(1)

Total reclassifications for the period, before tax

 

 

(138

)

 

 

Tax expense

 

 

46

 

 

 

Total reclassifications for the period, net of tax

 

$

(92

)

 

 

 

(1)
A part of the computation of net periodic pension cost, which is included in other income (expense), net in the Condensed Consolidated Statements of Income (Loss).

 

 

 

Three Months Ended September 30, 2020

(In thousands)

 

Amount
Reclassified
from
Accumulated
Other
Comprehensive
Income (Loss)

 

 

Affected Line Item in the
Statement Where Net
Income Is Presented

Unrealized gain (loss) on available-for-sale securities:

 

 

 

 

 

Net realized loss on sales of securities

 

$

728

 

 

Net investment gain (loss)

Defined benefit plan adjustments – actuarial gain

 

 

(354

)

 

(1)

Total reclassifications for the period, before tax

 

 

374

 

 

 

Tax benefit

 

 

(79

)

 

 

Total reclassifications for the period, net of tax

 

$

295

 

 

 
(1)
A part of the computation of net periodic pension cost, which is included in other income (expense), net in the Condensed Consolidated Statements of Income (Loss).

 

 

 

Nine Months Ended September 30, 2021

(In thousands)

 

Amount
Reclassified
from
Accumulated
Other
Comprehensive
Income (Loss)

 

 

Affected Line Item in the
Statement Where Net
Income Is Presented

Unrealized gain (loss) on available-for-sale securities:

 

 

 

 

 

Net realized gain on sales of securities

 

$

(13

)

 

Net investment gain (loss)

Defined benefit plan adjustments – actuarial gain

 

 

(630

)

 

(1)

Total reclassifications for the period, before tax

 

 

(643

)

 

 

Tax expense

 

 

198

 

 

 

Total reclassifications for the period, net of tax

 

$

(445

)

 

 
(1)
A part of the computation of net periodic pension cost, which is included in other income (expense), net in the Condensed Consolidated Statements of Income (Loss).

 

 

 

Nine Months Ended September 30, 2020

(In thousands)

 

Amount
Reclassified
from
Accumulated
Other
Comprehensive
Income (Loss)

 

 

Affected Line Item in the
Statement Where Net
Income Is Presented

Unrealized gain (loss) on available-for-sale securities:

 

 

 

 

 

Net realized gain on sales of securities

 

$

(1

)

 

Net investment gain (loss)

Defined benefit plan adjustments – actuarial gain

 

 

(835

)

 

(1)

Total reclassifications for the period, before tax

 

 

(836

)

 

 

Tax expense

 

 

259

 

 

 

Total reclassifications for the period, net of tax

 

$

(577

)

 

 
(1)
A part of the computation of net periodic pension cost, which is included in other income (expense), net in the Condensed Consolidated Statements of Income (Loss).

 

The following tables present the tax effects related to the change in each component of other comprehensive income (loss):

 

 

Three Months Ended

 

 

Three Months Ended

 

 

 

September 30, 2021

 

 

September 30, 2020

 

(In thousands)

 

Before-Tax
Amount

 

 

Tax
(Expense)
Benefit

 

 

Net-of-Tax
Amount

 

 

Before-Tax
Amount

 

 

Tax
(Expense)
Benefit

 

 

Net-of-Tax
Amount

 

Unrealized gain (loss) on available-for-sale
   securities

 

$

(38

)

 

$

9

 

 

$

(29

)

 

$

668

 

 

$

(174

)

 

$

494

 

Reclassification adjustment for amounts related to
   available-for-sale investments included in net
   income (loss)

 

 

(42

)

 

 

10

 

 

 

(32

)

 

 

(728

)

 

 

189

 

 

 

(539

)

Reclassification adjustment for amounts related to
   defined benefit plan adjustments included in net
   income (loss)

 

 

180

 

 

 

(56

)

 

 

124

 

 

 

354

 

 

 

(110

)

 

 

244

 

Foreign currency translation adjustment

 

 

(1,389

)

 

 

—

 

 

 

(1,389

)

 

 

2,469

 

 

 

—

 

 

 

2,469

 

Total Other Comprehensive Income (Loss)

 

$

(1,289

)

 

$

(37

)

 

$

(1,326

)

 

$

2,763

 

 

$

(95

)

 

$

2,668

 

 

 

 

Nine Months Ended

 

 

Nine Months Ended

 

 

 

September 30, 2021

 

 

September 30, 2020

 

(In thousands)

 

Before-Tax
Amount

 

 

Tax
(Expense)
Benefit

 

 

Net-of-Tax
Amount

 

 

Before-Tax
Amount

 

 

Tax
(Expense)
Benefit

 

 

Net-of-Tax
Amount

 

Unrealized gain (loss) on available-for-sale
   securities

 

$

(471

)

 

$

113

 

 

$

(358

)

 

$

600

 

 

$

(156

)

 

$

444

 

Reclassification adjustment for amounts related to
   available-for-sale investments included in net
   income (loss)

 

 

13

 

 

 

(3

)

 

 

10

 

 

 

1

 

 

 

—

 

 

 

1

 

Reclassification adjustment for amounts related to
   defined benefit plan adjustments included in net
   income (loss)

 

 

630

 

 

 

(195

)

 

 

435

 

 

 

835

 

 

 

(259

)

 

 

576

 

Foreign currency translation adjustment

 

 

(2,914

)

 

 

—

 

 

 

(2,914

)

 

 

2,718

 

 

 

—

 

 

 

2,718

 

Total Other Comprehensive Income (Loss)

 

$

(2,742

)

 

$

(85

)

 

$

(2,827

)

 

$

4,154

 

 

$

(415

)

 

$

3,739

 
v3.21.2
Earnings (Loss) Per Share
 9 Months Ended
Sep. 30, 2021
Earnings Per Share [Abstract]  
Earnings (Loss) Per Share

15. EARNINGS (LOSS) PER SHARE

The calculation of basic and diluted earnings (loss) per share is as follows:

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

(In thousands, except per share amounts)

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Numerator

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

(10,427

)

 

$

5,481

 

 

$

(4,445

)

 

$

(3,736

)

Denominator

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of shares – basic

 

 

48,609

 

 

 

47,957

 

 

 

48,470

 

 

 

47,957

 

Effect of dilutive securities

 

 

 

 

 

 

 

 

 

 

 

 

PSUs, RSUs and restricted stock

 

 

—

 

 

 

467

 

 

 

—

 

 

 

—

 

Weighted average number of shares – diluted

 

 

48,609

 

 

 

48,424

 

 

 

48,470

 

 

 

47,957

 

Earnings (loss) per share – basic

 

$

(0.21

)

 

$

0.11

 

 

$

(0.09

)

 

$

(0.08

)

Earnings (loss) per share – diluted

 

$

(0.21

)

 

$

0.11

 

 

$

(0.09

)

 

$

(0.08

)

 

 

For the three months ended September 30, 2021 and 2020, 0.2 million and 3.4 million stock options, respectively, and for the nine months ended September 30, 2021 and 2020, 0.4 million and 4.3 million stock options, respectively, were outstanding but were not included in the computation of diluted earnings per share. These stock options were excluded because their exercise prices were greater than the average market price of the common shares during the applicable period, making them anti-dilutive under the treasury stock method.

 

For the three months ended September 30, 2021 and 2020, less than one thousand and eighteen thousand shares, respectively, and for the nine months ended September 30, 2021 and 2020, four thousand and 0.1 million shares, respectively, of unvested PSUs, RSUs and restricted stock were excluded from the calculation of diluted earnings per share due to their anti-dilutive effect.
v3.21.2
Segment Information
 9 Months Ended
Sep. 30, 2021
Segment Reporting [Abstract]  
Segment Information

16. SEGMENT INFORMATION

The chief operating decision maker regularly reviews the Company’s financial performance based on two reportable segments: (1) Network Solutions and (2) Services & Support. Network Solutions includes hardware and software products and next-generation virtualized solutions used in service provider or business networks, as well as prior-generation products. Services & Support includes a portfolio of maintenance, network installation and solution integration services, which include hosted cloud services and subscription services.

The performance of these segments is evaluated based on gross profit; therefore, selling, general and administrative expenses, research and development expenses, interest and dividend income, interest expense, net investment gain (loss), other income (expense), net and income tax benefit (expense) are reported on a Company-wide basis only. There is no inter-segment revenue. Asset information by reportable segment is not produced and, therefore, is not reported.

The following tables present information about the revenue and gross profit of our reportable segments:

 

 

 

Three Months Ended

 

 

 

September 30, 2021

 

 

September 30, 2020

 

(In thousands)

 

Revenue

 

 

Gross Profit

 

 

Revenue

 

 

Gross Profit

 

Network Solutions

 

$

120,767

 

 

$

39,738

 

 

$

115,229

 

 

$

52,434

 

Services & Support

 

 

17,314

 

 

 

7,935

 

 

 

17,914

 

 

 

6,528

 

Total

 

$

138,081

 

 

$

47,673

 

 

$

133,143

 

 

$

58,962

 

 

 

 

Nine Months Ended

 

 

 

September 30, 2021

 

 

September 30, 2020

 

(In thousands)

 

Revenue

 

 

Gross Profit

 

 

Revenue

 

 

Gross Profit

 

Network Solutions

 

$

360,025

 

 

$

143,981

 

 

$

323,924

 

 

$

145,432

 

Services & Support

 

 

48,821

 

 

 

19,961

 

 

 

52,457

 

 

 

18,602

 

Total

 

$

408,846

 

 

$

163,942

 

 

$

376,381

 

 

$

164,034

 

 

Revenue by Category

In addition to our reportable segments, revenue is also reported for the following three categories – Access & Aggregation, Subscriber Solutions & Experience and Traditional & Other Products.

The table below presents revenue information by category:

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

(In thousands)

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Access & Aggregation

 

$

89,173

 

 

$

85,423

 

 

$

249,211

 

 

$

234,165

 

Subscriber Solutions & Experience

 

 

44,912

 

 

 

43,125

 

 

 

147,291

 

 

 

125,697

 

Traditional & Other Products

 

 

3,996

 

 

 

4,595

 

 

 

12,344

 

 

 

16,519

 

Total

 

$

138,081

 

 

$

133,143

 

 

$

408,846

 

 

$

376,381

 

 

Revenue by Geographic Area

 

The following table presents revenue information by geographic area:

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

(In thousands)

 

2021

 

 

2020

 

 

2021

 

 

2020

 

United States

 

$

91,868

 

 

$

92,838

 

 

$

273,009

 

 

$

256,287

 

International

 

 

46,213

 

 

 

40,305

 

 

 

135,837

 

 

 

120,094

 

Total

 

$

138,081

 

 

$

133,143

 

 

$

408,846

 

 

$

376,381

 
v3.21.2
Liability for Warranty Returns
 9 Months Ended
Sep. 30, 2021
Product Warranties Disclosures [Abstract]  
Liability for Warranty Returns

17. LIABILITY FOR WARRANTY RETURNS

Our products generally include warranties of 90 days to five years for product defects. We accrue for warranty returns at the time of product shipment based on our historical return rate and estimate of the cost to repair or replace the defective products. We engage in extensive product quality programs and processes, including actively monitoring and evaluating the quality of our component suppliers. The increasing complexity of our products may cause warranty incidences, when they arise, to be more costly. Estimates regarding future warranty obligations may change due to product failure rates, material usage and other rework costs incurred in correcting a product failure. In addition, from time to time, specific warranty accruals may be recorded if unforeseen problems arise. Should our actual experience relative to these factors be worse than our estimates, we will be required to record additional warranty expense. The liability for warranty obligations totaled $5.6 million and $7.1 million as of September 30, 2021 and December 31, 2020, respectively, and is included in accrued expenses and other liabilities in the Condensed Consolidated Balance Sheets. During the three and nine months ended September 30, 2021 and 2020, we had a net reversal of prior provisions related to warranty expirations, the impact of which is reflected in the table below:

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

(In thousands)

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Balance at beginning of period

 

$

5,997

 

 

$

7,294

 

 

$

7,146

 

 

$

8,394

 

Plus: Amounts charged to cost and expenses

 

 

472

 

 

 

632

 

 

 

253

 

 

 

970

 

Less: Deductions

 

 

(822

)

 

 

(734

)

 

 

(1,752

)

 

 

(2,172

)

Balance at end of period

 

$

5,647

 

 

$

7,192

 

 

$

5,647

 

 

$

7,192

 
v3.21.2
Commitments and Contingencies
 9 Months Ended
Sep. 30, 2021
Commitments And Contingencies Disclosure [Abstract]  
Commitments and Contingencies

18. COMMITMENTS AND CONTINGENCIES

 

Shareholder Derivative Lawsuit

 

On March 31, 2020, a shareholder derivative suit, captioned Johnson (Derivatively on behalf of ADTRAN) v. Stanton, et al., Case No. 5:20-cv-00447, was filed in the U.S. District Court for the Northern District of Alabama against two of the Company’s current executive officers, one of its former executive officers, and certain current and former members of its Board of Directors. The derivative suit alleges, among other things, that the defendants made or caused the Company to make materially false and misleading statements regarding, and/or failed to disclose material adverse facts about, the Company’s business, operations and prospects, specifically relating to the Company’s internal control over financial reporting, excess and obsolete inventory reserves, financial results and demand from certain customers. The case was temporarily stayed pending an order on the defendants’ motion to dismiss in a separate securities class action case that included similar factual allegations, Burbridge v. ADTRAN, Inc., et al., Case No. 5:20-cv-00050-LCB (N.D. Ala.). The Burbridge case was dismissed on March 31, 2021, and the time to appeal the dismissal has expired, such that the dismissal is now final. Following the dismissal, the plaintiff in the shareholder derivative suit sent a demand letter dated June 29, 2021 to ADTRAN’s Board of Directors. The letter contains similar allegations to those made in the plaintiff’s filed complaint and in the now dismissed securities class action, and it demands, among other things, that the Board commence an investigation into the alleged wrongdoing. We expect that the derivative suit will remain stayed pending the Board’s response to the demand. At this time, we are unable to predict the outcome of or estimate the possible loss or range of loss, if any, associated with the derivative lawsuit or the demand letter.

 

Other Legal Matters

 

In addition to the litigation described above, from time to time we are subject to or otherwise involved in various lawsuits, claims, investigations and legal proceedings that arise out of or are incidental to the conduct of our business (collectively, “Legal Matters”), including those relating to patent rights, employment matters, regulatory compliance matters, stockholder claims, and contractual and other commercial disputes. Such Legal Matters, even if not meritorious, could result in the expenditure of significant financial and managerial resources. Additionally, an unfavorable outcome in any legal matter, including in a patent dispute, could require the Company to pay damages, entitle claimants to other relief, such as royalties, or could prevent the Company from selling some of its products in certain jurisdictions. While the Company cannot predict with certainty the results of the Legal Matters in which it is currently involved, the Company does not expect that the ultimate outcome of such Legal Matters will individually or in the aggregate have a material adverse effect on its business, results of operations, financial condition or cash flows.

 

Business Combination Agreement

 

On August 30, 2021, the Company, and ADVA Optical Networking SE, a European stock corporation incorporated under the laws of the European Union and Germany (“ADVA”), entered into a business combination agreement (the “Business Combination Agreement”), pursuant to which both companies agreed to combine their respective businesses and each become subsidiaries of a new holding company, Acorn HoldCo, Inc. (the "surviving corporation"), a Delaware corporation and currently a wholly-owned direct subsidiary of the Company.

 

Under the terms of the Business Combination Agreement, Acorn MergeCo, Inc., a newly formed Delaware corporation and wholly-owned direct subsidiary of Acorn HoldCo (“Merger Sub”), will merge with and into ADTRAN, with ADTRAN surviving the merger (the “Merger”) as a wholly-owned direct subsidiary of Acorn HoldCo. Pursuant to the Merger, each outstanding share of common stock of the Company will be converted into the right to receive one share of common stock of Acorn HoldCo. Acorn HoldCo will also make a public exchange offer to exchange each issued and outstanding no-par value bearer share of ADVA, pursuant to which each ADVA share tendered and accepted for exchange will be exchanged for 0.8244 shares of common stock of Acorn HoldCo (the “Exchange Offer”, and together with the Merger, the “Business Combination”). Upon completion of the Business Combination, and assuming that all of the outstanding ADVA shares are exchanged in the Exchange Offer, former ADTRAN stockholders and former ADVA shareholders will own approximately 54% and 46%, respectively, of the outstanding Acorn HoldCo shares.

 

The Business Combination Agreement was unanimously approved by the Board of Directors of the Company and by the supervisory board and management board of ADVA. The Company anticipates consummation of the Business Combination during mid-2022, subject to customary closing conditions as well as regulatory and shareholder approvals.

 

Acorn HoldCo has entered into an irrevocable undertaking agreement (the “Irrevocable Undertaking”) with EGORA Holding GmbH and Egora Investments GmbH (collectively, the “Supporting Shareholders”) to validly accept the public exchange offer with respect to 7,000,000 shares held by them, representing 13.7% of the share capital of ADVA. The Irrevocable Undertaking includes other customary provisions, including certain restrictions on the Supporting Shareholders from disposing of the relevant shares.

 

Additional information about the Business Combination Agreement and proposed Business Combination is set forth in the Company’s filings with the SEC, as well as in the registration statement on Form S-4 that Acorn HoldCo filed with the SEC, which has not yet become effective.

Performance Bonds

Certain contracts, customers and jurisdictions in which we do business require us to provide various guarantees of performance such as bid bonds, performance bonds and customs bonds. As of September 30, 2021 and December 31, 2020, we had commitments related to these bonds totaling $20.9 million and $15.2 million, respectively, which expire at various dates through August 2024. In general we would only be liable for the amount of these guarantees in the event of default under each contract, the probability of which we believe is remote.

In June 2020, the Company entered into a letter of credit with a bank to guarantee performance obligations under a contract with a certain customer. The obligations under this customer contract will be performed over multiple years. We reached the maximum value of our minimum collateral requirement of $15.0 million during the three months ended March 31, 2021 as the Company reached certain milestones through the first quarter of 2021 as outlined in the customer contract. The letter of credit was secured by a pledge of a portion of the Company’s fixed-income securities, which totaled $18.4 million as of September 30, 2021, of which $0.1 million is included in restricted cash and $18.3 million is included in long-term investments on the Condensed Consolidated Balance Sheets. This pledged collateral value will fluctuate as the Company changes the mix of the pledged collateral between restricted cash and investments. Any shortfalls in the minimum collateral value are required to be restored by the Company from available cash and cash equivalents, short-term investments and/or long-term investments. The collateral under the letter of credit will be released when all obligations under the

customer contract have been met. As of September 30, 2021, the Company was in compliance with all contractual requirements under the letter of credit.

Investment Commitment

We have committed to invest up to an aggregate of $5.0 million in a private equity fund, of which $4.9 million has been invested as of September 30, 2021.
v3.21.2
Restructuring
 9 Months Ended
Sep. 30, 2021
Restructuring And Related Activities [Abstract]  
Restructuring

19. RESTRUCTURING

 

During the second half of 2019, the Company initiated a restructuring plan to realign its expense structure with the reduction in revenue experienced in recent years and overall Company objectives. As part of this restructuring plan, the Company announced plans to reduce its overall operating expenses, both in the U.S. and internationally. Management continued to assess the efficiency of operations during 2020 and the first nine months of 2021 and, in turn, consolidated locations and personnel, among other things, where possible.

In February 2019, the Company announced the restructuring of a certain portion of its workforce predominantly in Germany, which included the closure of the Company’s office location in Munich, Germany accompanied by relocation or severance benefits for the affected employees. Voluntary early retirement was offered to certain other employees and was announced in March 2019 and again in August 2020.

The cumulative amount of restructuring expenses incurred as of September 30, 2021 for the restructuring plans was $12.5 million.

 

A reconciliation of the beginning and ending restructuring liability, which is included in accrued wages and benefits in the Condensed Consolidated Balance Sheets is as follows:

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

(In thousands)

 

September 30, 2021

 

 

September 30, 2021

 

Balance at beginning of period

 

$

1,521

 

 

$

4,186

 

Plus: Amounts charged to cost and expense

 

 

—

 

 

 

309

 

Less: Amounts paid

 

 

(42

)

 

 

(3,016

)

Balance as of September 30, 2021

 

$

1,479

 

 

$

1,479

 

 

(In thousands)

 

For the Year Ended December 31, 2020

 

Balance as of December 31, 2019

 

$

1,568

 

Plus: Amounts charged to cost and expense

 

 

6,229

 

Less: Amounts paid

 

 

(3,611

)

Balance as of December 31, 2020

 

$

4,186

 

 

Restructuring expenses included in the Condensed Consolidated Statements of Income (Loss) were as follows:

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

(In thousands)

 

2021

 

 

2020

 

 

2021

 

 

2020

 

   Network Solutions - Cost of revenue

 

$

—

 

 

$

187

 

 

$

12

 

 

$

220

 

   Services & Support - Cost of revenue

 

 

—

 

 

 

45

 

 

 

3

 

 

 

68

 

Cost of revenue

 

$

—

 

 

$

232

 

 

$

15

 

 

$

288

 

Selling, general and administrative expenses (1)

 

 

—

 

 

 

1,050

 

 

 

145

 

 

 

1,622

 

Research and development expenses (1)

 

 

—

 

 

 

621

 

 

 

149

 

 

 

1,738

 

Total restructuring expenses

 

$

—

 

 

$

1,903

 

 

$

309

 

 

$

3,648

 

 

(1) The Company does not allocate selling, general and administrative expense and research and development expense to the segment level.

 

Components of restructuring expense by geographic area were as follows:

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

(In thousands)

 

2021

 

 

2020

 

 

2021

 

 

2020

 

United States

 

$

—

 

 

$

448

 

 

$

212

 

 

$

2,191

 

International

 

 

—

 

 

 

1,455

 

 

 

97

 

 

 

1,457

 

Total restructuring expenses

 

$

—

 

 

$

1,903

 

 

$

309

 

 

$

3,648

 
v3.21.2
Subsequent Events
 9 Months Ended
Sep. 30, 2021
Subsequent Events [Abstract]  
Subsequent Events

20. SUBSEQUENT EVENTS

On November 1, 2021, we announced that our Board of Directors declared a quarterly cash dividend of $0.09 per common share to be paid to the Company’s stockholders of record as of the close of business on November 16, 2021. The payment date will be November 30, 2021 in the aggregate amount of approximately $4.4 million.

On November 4, 2021, the Company entered into a loan modification agreement and amendment to loan documents to extend the maturity date of the Revolving Credit Agreement through November 3, 2022. See Item 5, Other Information, of this report for additional information regarding the loan modification agreement.
v3.21.2
Summary of Significant Accounting Policies (Policies)
 9 Months Ended
Sep. 30, 2021
Accounting Policies [Abstract]  
Basis of Presentation

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements of ADTRAN®, Inc. and its subsidiaries (“ADTRAN”, the “Company”, “we”, “our” or “us”) have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) applicable to interim financial information presented in Quarterly Reports on Form 10-Q. Accordingly, certain information and notes required by generally accepted accounting principles in the United States of America (“U.S. GAAP”) for complete financial statements are not included herein. The December 31, 2020 Condensed Consolidated Balance Sheet is derived from audited financial statements but does not include all disclosures required by U.S. GAAP.

In the opinion of management, all adjustments necessary to fairly state these interim statements have been recorded and are of a normal and recurring nature. The results of operations for an interim period are not necessarily indicative of the results for the full year. The interim financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in ADTRAN’s Annual Report on Form 10-K for the year ended December 31, 2020, filed with the SEC on February 26, 2021.
Use of Estimates

Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expense during the reporting period. The more significant estimates include excess and obsolete inventory reserves, warranty reserves, customer rebates, determination and accrual of deferred revenue components of multi-element sales agreements, estimated costs to complete obligations associated with deferred and accrued revenues and network installations, estimated income tax provision and income tax contingencies, fair value of stock-based compensation, assessment of goodwill and other intangibles for impairment, estimated lives of intangible assets, estimated pension liability and fair value of investments. Actual amounts could differ significantly from these estimates.

We assessed certain accounting matters that generally require consideration of forecasted financial information in context with the information reasonably available to us and the unknown future impacts of the SARS-CoV-2 coronavirus/COVID-19 global pandemic (or variants of the SARS-CoV-2 coronavirus, including the Delta variant) as well as supply chain constraints as of September 30, 2021 and through the date of this report. The accounting matters assessed included, but were not limited to, the allowance for expected credit losses, stock-based compensation, carrying value of goodwill, intangibles and other long-lived assets, financial assets, valuation allowances for tax assets, revenue recognition and costs of revenue. Future conditions related to the magnitude and duration of the COVID-19 pandemic, as well as other factors, including supply chain constraints, could result in further impacts to our consolidated financial statements in future reporting periods.
Correction of an Immaterial Misstatement

Correction of an Immaterial Misstatement

During the three months ended March 31, 2020, it was determined that certain investments held in the Company’s stock for a deferred compensation plan accounted for as a Rabbi trust were incorrectly classified as long-term investments with the fair value of such investments incorrectly marked to market at each period end rather than classified as Treasury stock held at historical cost. This plan has been in existence since 2011. The Company corrected this misstatement as an out-of-period adjustment in the three months ended March 31, 2020 by remeasuring the investment assets to their historical cost basis through the recording of a net investment gain of $1.5 million in the unaudited Condensed Consolidated Statement of Income (Loss) and then correcting the classification by decreasing the long-term investment balance at its remeasured cost basis of $2.8 million to Treasury stock in the unaudited Condensed Consolidated Balance Sheet as of March 31, 2020. Management has determined that this misstatement was not material to any of its previously issued financial statements and that the correction of the misstatement was not material to the Company’s 2020 annual financial results on either a quantitative or qualitative basis.
Recently Adopted Accounting Pronouncements

Recently Adopted Accounting Pronouncements

We recently adopted the following accounting standards, which had the following impacts on our condensed consolidated financial statements:

 

In August 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2018-14, Compensation – Retirement Benefits – Defined Benefit Plans – General (Subtopic 715-20): Disclosure Framework – Changes to the Disclosure Requirements for Defined Benefit Plans, which makes changes to and clarifies the disclosure requirements related to defined benefit pension and other postretirement plans. ASU 2018-14 requires additional disclosures related to the reasons for significant gains and losses affecting the benefit obligation and an explanation of any other significant changes in the benefit obligation or plan assets that are not otherwise apparent in other disclosures required by Accounting Standards Codification (“ASC”) 715. ASU 2018-14 also clarifies the guidance in ASC 715 to require disclosure of the projected benefit obligation (“PBO”) and fair value of plan assets for pension plans with PBOs in excess of plan assets and the accumulated benefit obligation (“ABO”) and fair value of plan assets for pension plans with ABOs in excess of plan assets. ASU 2018-14 became effective for public business entities for fiscal years ending after December 15, 2020. The adoption of this standard did not have a material effect on the disclosures in the condensed consolidated financial statements.

 

In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which simplifies the accounting for income taxes by removing various exceptions, such as the exception to the incremental approach for intra-period tax allocation when there is a loss from continuing operations and income or a gain from other items. The amendments in this update also simplify the accounting for income taxes related to income-based franchise taxes and require that an entity reflect enacted tax laws or rates in the annual effective tax rate computation in the interim period that includes the enactment date. The Company early adopted ASU 2019-12 on April 1, 2020, which was applied on a prospective basis as if the Company adopted the standard on January 1, 2020. The Company early adopted the standard to take advantage of the simplification of rules for income taxes on intra-period tax allocations. Specifically, the adoption of this standard resulted in the recognition of approximately $0.1 million of tax benefit in other comprehensive income (loss) for the three months ended March 31, 2020, that otherwise would have been recognized in continuing operations had the intra-period tax allocation been completed. There were no other impacts from this standard on the condensed consolidated financial statements.
Recent Accounting Pronouncements Not Yet Adopted

Recent Accounting Pronouncements Not Yet Adopted 
v3.21.2
Cash, Cash Equivalents and Restricted Cash (Tables)
 9 Months Ended
Sep. 30, 2021
Cash And Cash Equivalents [Abstract]  
Summary of Reconciliation of Cash, Cash Equivalents and Restricted Cash

The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the Condensed Consolidated Balance Sheets that sum to the total of the same such amounts shown in the Condensed Consolidated Statements of Cash Flows:

 

 

 

As of

 

 

As of

 

(In thousands)

 

September 30, 2021

 

 

December 31, 2020

 

Cash and cash equivalents

 

$

75,503

 

 

$

60,161

 

Restricted cash

 

 

102

 

 

 

18

 

Cash, cash equivalents and restricted cash

 

$

75,605

 

 

$

60,179

 
v3.21.2
Revenue (Tables)
 9 Months Ended
Sep. 30, 2021
Revenue From Contract With Customer [Abstract]  
Disaggregate of Revenue by Reportable Segment and Revenue Category

The following tables disaggregate revenue by reportable segment and revenue category:

 

 

 

Three Months Ended

 

 

 

September 30, 2021

 

 

September 30, 2020

 

(In thousands)

 

Network Solutions

 

 

Services & Support

 

 

Total

 

 

Network Solutions

 

 

Services & Support

 

 

Total

 

Access & Aggregation

 

$

77,104

 

 

$

12,069

 

 

$

89,173

 

 

$

71,919

 

 

$

13,504

 

 

$

85,423

 

Subscriber Solutions & Experience

 

 

42,093

 

 

 

2,819

 

 

 

44,912

 

 

 

40,843

 

 

 

2,282

 

 

 

43,125

 

Traditional & Other Products

 

 

1,570

 

 

 

2,426

 

 

 

3,996

 

 

 

2,467

 

 

 

2,128

 

 

 

4,595

 

Total

 

$

120,767

 

 

$

17,314

 

 

$

138,081

 

 

$

115,229

 

 

$

17,914

 

 

$

133,143

 

 

 

 

Nine Months Ended

 

 

 

September 30, 2021

 

 

September 30, 2020

 

(In thousands)

 

Network Solutions

 

 

Services & Support

 

 

Total

 

 

Network Solutions

 

 

Services & Support

 

 

Total

 

Access & Aggregation

 

$

215,464

 

 

$

33,747

 

 

$

249,211

 

 

$

194,695

 

 

$

39,470

 

 

$

234,165

 

Subscriber Solutions & Experience

 

 

139,459

 

 

 

7,832

 

 

 

147,291

 

 

 

118,907

 

 

 

6,790

 

 

 

125,697

 

Traditional & Other Products

 

 

5,102

 

 

 

7,242

 

 

 

12,344

 

 

 

10,322

 

 

 

6,197

 

 

 

16,519

 

Total

 

$

360,025

 

 

$

48,821

 

 

$

408,846

 

 

$

323,924

 

 

$

52,457

 

 

$

376,381

 

The table below presents revenue information by category:

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

(In thousands)

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Access & Aggregation

 

$

89,173

 

 

$

85,423

 

 

$

249,211

 

 

$

234,165

 

Subscriber Solutions & Experience

 

 

44,912

 

 

 

43,125

 

 

 

147,291

 

 

 

125,697

 

Traditional & Other Products

 

 

3,996

 

 

 

4,595

 

 

 

12,344

 

 

 

16,519

 

Total

 

$

138,081

 

 

$

133,143

 

 

$

408,846

 

 

$

376,381

 
Information about Receivables, Contract Assets, and Unearned Revenue from Contracts with Customers

The following table provides information about receivables, contract assets and unearned revenue from contracts with customers:

 

 

 

As of

 

 

As of

 

(In thousands)

 

September 30, 2021

 

 

December 31, 2020

 

Accounts receivable, net

 

$

124,146

 

 

$

98,827

 

Contract assets(1)

 

$

999

 

 

$

63

 

Unearned revenue

 

$

16,394

 

 

$

14,092

 

Non-current unearned revenue

 

$

7,426

 

 

$

6,888

 

 

(1) Included in other receivables on the Condensed Consolidated Balance Sheets.
v3.21.2
Income Taxes (Tables)
 9 Months Ended
Sep. 30, 2021
Income Tax Disclosure [Abstract]  
Summary of Supplemental Balance Sheet Information Related to Deferred Tax Assets

Supplemental balance sheet information related to deferred tax assets is as follows:

 

 

 

As of September 30, 2021

 

(In thousands)

 

Deferred Tax Assets

 

 

Valuation Allowance

 

 

Deferred Tax Assets, net

 

Domestic

 

$

47,839

 

 

$

(47,839

)

 

$

—

 

International

 

 

11,350

 

 

 

(2,393

)

 

 

8,957

 

Total

 

$

59,189

 

 

$

(50,232

)

 

$

8,957

 

 

 

 

As of December 31, 2020

 

(In thousands)

 

Deferred Tax Assets

 

 

Valuation Allowance

 

 

Deferred Tax Assets, net

 

Domestic

 

$

43,791

 

 

$

(43,791

)

 

$

—

 

International

 

 

11,896

 

 

 

(2,027

)

 

 

9,869

 

Total

 

$

55,687

 

 

$

(45,818

)

 

$

9,869

 

 
Change in Unrecognized Income Tax Benefits

The change in the unrecognized income tax benefits for the nine months ended September 30, 2021 and year ended December 31, 2020, is reconciled below:

 

(In thousands)

 

For the Nine Months Ended
 September 30, 2021

 

 

For the Year Ended December 31, 2020

 

Balance at beginning of period

 

$

1,078

 

 

$

1,487

 

Increases for tax position related to:

 

 

 

 

 

 

Prior years

 

 

17,025

 

 

 

4

 

Current year

 

 

102

 

 

 

165

 

Decreases for tax positions related to:

 

 

 

 

 

 

Prior years

 

 

(27

)

 

 

—

 

Expiration of applicable statute of limitations

 

 

—

 

 

 

(578

)

Balance at end of period

 

$

18,178

 

 

$

1,078

 
v3.21.2
Stock-Based Compensation (Tables)
 9 Months Ended
Sep. 30, 2021
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]  
Stock-Based Compensation Expense Related to Stock Options, PSUs, RSUs and Restricted Stock

The following table summarizes stock-based compensation expense related to stock options, performance stock units (“PSUs”), restricted stock units (“RSUs”) and restricted stock:

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

(In thousands)

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Stock-based compensation expense included in cost of revenue

 

$

133

 

 

$

101

 

 

$

389

 

 

$

303

 

Selling, general and administrative expense

 

 

1,116

 

 

 

953

 

 

 

3,312

 

 

 

2,999

 

Research and development expense

 

 

593

 

 

 

556

 

 

 

1,756

 

 

 

1,754

 

Stock-based compensation expense included in operating expenses

 

 

1,709

 

 

 

1,509

 

 

 

5,068

 

 

 

4,753

 

Total stock-based compensation expense

 

 

1,842

 

 

 

1,610

 

 

 

5,457

 

 

 

5,056

 

Tax benefit for expense associated with stock options, PSUs, RSUs and restricted stock

 

 

(460

)

 

 

(384

)

 

 

(1,343

)

 

 

(1,205

)

Total stock-based compensation expense, net of tax

 

$

1,382

 

 

$

1,226

 

 

$

4,114

 

 

$

3,851

 

 
Summary of PSUs, RSUs and Restricted Stock Outstanding

The following table summarizes PSUs, RSUs and restricted stock outstanding as of December 31, 2020 and September 30, 2021 and the changes that occurred during the nine months ended September 30, 2021:

 

 

 

Number of
Shares
(in thousands)

 

 

Weighted Avg. Grant Date Fair Value
(per share)

 

Unvested PSUs, RSUs and restricted stock outstanding, December 31, 2020

 

 

1,846

 

 

$

11.49

 

PSUs, RSUs and restricted stock granted

 

 

359

 

 

$

16.75

 

PSUs, RSUs and restricted stock vested

 

 

(21

 )

 

$

13.00

 

PSUs, RSUs and restricted stock forfeited

 

 

(65

)

 

$

11.93

 

Unvested PSUs, RSUs and restricted stock outstanding, September 30, 2021

 

 

2,119

 

 

$

12.40

 
Summary of Stock Options Outstanding

The following table summarizes stock options outstanding as of December 31, 2020 and September 30, 2021 and the changes that occurred during the nine months ended September 30, 2021:

 

 

 

Number of
Stock Options
(in thousands)

 

 

Weighted Avg.
Exercise Price
(per share)

 

 

Weighted Avg.
Remaining
Contractual
Life
(in years)

 

 

Aggregate
Intrinsic Value
(in thousands)

 

Stock options outstanding, December 31, 2020

 

 

2,718

 

 

$

21.17

 

 

 

2.9

 

 

$

—

 

Stock options exercised

 

 

(363

)

 

$

16.81

 

 

 

 

 

 

1,411

 

Stock options expired

 

 

(607

)

 

$

28.93

 

 

 

 

 

 

18

 

Stock options outstanding, September 30, 2021

 

 

1,748

 

 

$

19.37

 

 

 

2.7

 

 

$

2,060

 

Stock options exercisable, September 30, 2021

 

 

1,748

 

 

$

19.37

 

 

 

2.7

 

 

$

2,060

 
v3.21.2
Investments (Tables)
 9 Months Ended
Sep. 30, 2021
Investments Debt And Equity Securities [Abstract]  
Debt Securities and Other Investments, Included on Condensed Consolidated Balance Sheet and Recorded at Fair Value

Debt Securities and Other Investments

The following debt securities and other investments were included on the Condensed Consolidated Balance Sheet and recorded at fair value:

 

 

 

As of September 30, 2021

 

 

 

Amortized

 

 

Gross Unrealized

 

 

Fair

 

(In thousands)

 

Cost

 

 

Gains

 

 

Losses

 

 

Value

 

Corporate bonds

 

$

13,381

 

 

$

39

 

 

$

(6

)

 

$

13,414

 

Municipal fixed-rate bonds

 

 

2,236

 

 

 

13

 

 

 

(1

)

 

 

2,248

 

Asset-backed bonds

 

 

3,497

 

 

 

17

 

 

 

(1

)

 

 

3,513

 

Mortgage/Agency-backed bonds

 

 

9,194

 

 

 

35

 

 

 

(17

)

 

 

9,212

 

U.S. government bonds

 

 

16,031

 

 

 

34

 

 

 

(13

)

 

 

16,052

 

Foreign government bonds

 

 

544

 

 

 

1

 

 

 

(2

)

 

 

543

 

Other

 

 

533

 

 

 

—

 

 

 

—

 

 

 

533

 

Available-for-sale debt securities held at fair value

 

$

45,416

 

 

$

139

 

 

$

(40

)

 

$

45,515

 

 

 

 

As of December 31, 2020

 

 

 

Amortized

 

 

Gross Unrealized

 

 

Fair

 

(In thousands)

 

Cost

 

 

Gains

 

 

Losses

 

 

Value

 

Corporate bonds

 

$

11,762

 

 

$

123

 

 

$

—

 

 

$

11,885

 

Municipal fixed-rate bonds

 

 

2,854

 

 

 

30

 

 

 

—

 

 

 

2,884

 

Asset-backed bonds

 

 

6,634

 

 

 

74

 

 

 

—

 

 

 

6,708

 

Mortgage/Agency-backed bonds

 

 

11,536

 

 

 

114

 

 

 

(6

)

 

 

11,644

 

U.S. government bonds

 

 

9,763

 

 

 

112

 

 

 

—

 

 

 

9,875

 

Foreign government bonds

 

 

1,334

 

 

 

4

 

 

 

(1

)

 

 

1,337

 

Commercial Paper

 

 

250

 

 

 

—

 

 

 

—

 

 

 

250

 

Other

 

 

533

 

 

 

—

 

 

 

—

 

 

 

533

 

Available-for-sale debt securities held at fair value

 

$

44,666

 

 

$

457

 

 

$

(7

)

 

$

45,116

 
Contractual Maturities of Debt Securities and Other Investments

The contractual maturities related to debt securities and other investments were as follows:

 

 

 

As of September 30, 2021

 

(In thousands)

 

Corporate
bonds

 

 

Municipal
fixed-rate
bonds

 

 

Asset-
backed
bonds

 

 

Mortgage/
Agency-
backed bonds

 

 

 U.S. government
bonds

 

 

Foreign government bonds

 

 

Other

 

Less than one year

 

$

275

 

 

$

652

 

 

$

—

 

 

$

638

 

 

$

2,593

 

 

$

—

 

 

$

533

 

One to two years

 

 

4,494

 

 

 

534

 

 

 

—

 

 

 

1,005

 

 

 

4,021

 

 

 

246

 

 

 

—

 

Two to three years

 

 

6,616

 

 

 

761

 

 

 

93

 

 

 

1,102

 

 

 

5,810

 

 

 

297

 

 

 

—

 

Three to five years

 

 

2,029

 

 

 

301

 

 

 

1,573

 

 

 

235

 

 

 

3,628

 

 

 

—

 

 

 

—

 

Five to ten years

 

 

—

 

 

 

—

 

 

 

785

 

 

 

1,322

 

 

 

—

 

 

 

—

 

 

 

—

 

More than ten years

 

 

—

 

 

 

—

 

 

 

1,062

 

 

 

4,910

 

 

 

—

 

 

 

—

 

 

 

—

 

Total

 

$

13,414

 

 

$

2,248

 

 

$

3,513

 

 

$

9,212

 

 

$

16,052

 

 

$

543

 

 

$

533

 
Gross Realized Gains and Losses on Sale of Debt Securities The following table presents the gross realized gains and losses related to our debt securities:

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

(In thousands)

 

2021

 

 

2020

 

 

2021

 

 

2020

 

     Gross realized gain on debt securities

 

$

22

 

 

$

70

 

 

$

206

 

 

$

303

 

     Gross realized loss on debt securities

 

 

(17

)

 

 

(6

)

 

 

(53

)

 

 

(45

)

Total gain recognized, net

 

$

5

 

 

$

64

 

 

$

153

 

 

$

258

 

 
Realized and Unrealized Gains and Losses related to Marketable Equity Securities

Realized and unrealized gains and losses related to marketable equity securities were as follows:

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

(In thousands)

 

2021

 

 

2020

 

 

2021

 

 

2020

 

     Realized gain (loss) on equity securities sold

 

$

—

 

 

$

623

 

 

$

(55

)

 

$

(1,485

)

     Unrealized (loss) gain on equity securities held

 

 

(68

)

 

 

2,157

 

 

 

2,844

 

 

 

3,046

 

Total gain (loss) recognized, net

 

$

(68

)

 

$

2,780

 

 

$

2,789

 

 

$

1,561

 
Cash Equivalents and Investments held at Fair Value

The Company’s cash equivalents and investments held at fair value are categorized into this hierarchy as follows:

 

 

 

 

 

 

Fair Value Measurements as of September 30, 2021 Using

 

(In thousands)

 

 Fair Value

 

 

Quoted Prices
in Active
Market for
Identical
Assets
(Level 1)

 

 

Significant
Other
Observable
Inputs
(Level 2)

 

 

Significant Unobservable Inputs
(Level 3)

 

Cash equivalents

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

$

532

 

 

$

532

 

 

$

—

 

 

$

—

 

Commercial paper

 

 

400

 

 

 

—

 

 

 

400

 

 

 

—

 

Available-for-sale debt securities

 

 

 

 

 

 

 

 

 

 

 

 

Corporate bonds

 

 

13,414

 

 

 

—

 

 

 

13,414

 

 

 

—

 

Municipal fixed-rate bonds

 

 

2,248

 

 

 

—

 

 

 

2,248

 

 

 

—

 

Asset-backed bonds

 

 

3,513

 

 

 

—

 

 

 

3,513

 

 

 

—

 

Mortgage/Agency-backed bonds

 

 

9,212

 

 

 

—

 

 

 

9,212

 

 

 

—

 

U.S. government bonds

 

 

16,052

 

 

 

16,052

 

 

 

—

 

 

 

—

 

Foreign government securities

 

 

543

 

 

 

—

 

 

 

543

 

 

 

—

 

Other

 

 

533

 

 

 

—

 

 

 

—

 

 

 

533

 

Marketable equity securities

 

 

 

 

 

 

 

 

 

 

 

 

Marketable equity securities – various industries

 

 

12,144

 

 

 

12,144

 

 

 

—

 

 

 

—

 

Deferred compensation plan assets

 

 

25,733

 

 

 

25,733

 

 

 

—

 

 

 

—

 

Other investments

 

 

1,400

 

 

 

1,400

 

 

 

—

 

 

 

—

 

Total

 

$

85,724

 

 

$

55,861

 

 

$

29,330

 

 

$

533

 

 

 

 

 

 

 

Fair Value Measurements as of December 31, 2020 Using

 

(In thousands)

 

 Fair Value

 

 

Quoted Prices
in Active
Market for
Identical
Assets
(Level 1)

 

 

Significant
Other
Observable
Inputs
(Level 2)

 

 

Significant Unobservable Inputs
(Level 3)

 

Cash equivalents

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

$

497

 

 

$

497

 

 

$

—

 

 

$

—

 

U.S. government bonds

 

 

350

 

 

 

350

 

 

 

—

 

 

 

—

 

Available-for-sale debt securities

 

 

 

 

 

 

 

 

 

 

 

 

Corporate bonds

 

 

11,885

 

 

 

—

 

 

 

11,885

 

 

 

—

 

Municipal fixed-rate bonds

 

 

2,884

 

 

 

—

 

 

 

2,884

 

 

 

—

 

Asset-backed bonds

 

 

6,708

 

 

 

—

 

 

 

6,708

 

 

 

—

 

Mortgage/Agency-backed bonds

 

 

11,644

 

 

 

—

 

 

 

11,644

 

 

 

—

 

U.S. government bonds

 

 

9,875

 

 

 

9,875

 

 

 

—

 

 

 

—

 

Foreign government bonds

 

 

1,337

 

 

 

—

 

 

 

1,337

 

 

 

—

 

Commercial paper

 

 

250

 

 

 

—

 

 

 

250

 

 

 

—

 

Other

 

 

533

 

 

 

—

 

 

 

—

 

 

 

533

 

Marketable equity securities

 

 

 

 

 

 

 

 

 

 

 

 

Marketable equity securities – various industries

 

 

10,963

 

 

 

10,963

 

 

 

—

 

 

 

—

 

Deferred compensation plan assets

 

 

23,891

 

 

 

23,891

 

 

 

—

 

 

 

—

 

Other investments

 

 

1,400

 

 

 

1,400

 

 

 

—

 

 

 

—

 

Total

 

$

82,217

 

 

$

46,976

 

 

$

34,708

 

 

$

533

 
v3.21.2
Inventory (Tables)
 9 Months Ended
Sep. 30, 2021
Inventory Disclosure [Abstract]  
Components of Inventory

Inventory consisted of the following:

 

 

 

As of

 

 

As of

 

(In thousands)

 

September 30, 2021

 

 

December 31, 2020

 

Raw materials

 

$

66,777

 

 

$

47,026

 

Work in process

 

 

1,202

 

 

 

776

 

Finished goods

 

 

59,262

 

 

 

77,655

 

Total inventory, net

 

$

127,241

 

 

$

125,457

 

 
v3.21.2
Property, Plant and Equipment (Tables)
 9 Months Ended
Sep. 30, 2021
Property Plant And Equipment [Abstract]  
Property, Plant and Equipment

Property, plant and equipment consisted of the following:

 

 

 

As of

 

 

As of

 

(In thousands)

 

September 30, 2021

 

 

December 31, 2020

 

Land

 

$

4,575

 

 

$

4,575

 

Building and land improvements

 

 

34,995

 

 

 

35,142

 

Building

 

 

68,156

 

 

 

68,169

 

Furniture and fixtures

 

 

19,925

 

 

 

19,965

 

Computer hardware and software

 

 

71,615

 

 

 

70,942

 

Engineering and other equipment

 

 

134,689

 

 

 

132,920

 

     Total property, plant and equipment

 

 

333,955

 

 

 

331,713

 

Less: accumulated depreciation

 

 

(277,399

)

 

 

(269,314

)

     Total property, plant and equipment, net

 

$

56,556

 

 

$

62,399

 
v3.21.2
Intangible Assets (Tables)
 9 Months Ended
Sep. 30, 2021
Intangible Assets Net Excluding Goodwill [Abstract]  
Summary of Intangible Assets

Intangible assets consisted of the following:

 

 

 

As of September 30, 2021

 

 

As of December 31, 2020

 

(In thousands)

 

Gross Carrying Amount

 

 

Accumulated Amortization

 

 

Net Book Value

 

 

Gross Carrying Amount

 

 

Accumulated Amortization

 

 

Net Book Value

 

Customer relationships

 

$

20,876

 

 

$

(9,483

)

 

$

11,393

 

 

$

21,123

 

 

$

(8,055

)

 

$

13,068

 

Developed technology

 

 

8,200

 

 

 

(3,399

)

 

 

4,801

 

 

 

8,200

 

 

 

(2,546

)

 

 

5,654

 

Licensed technology

 

 

5,900

 

 

 

(2,322

)

 

 

3,578

 

 

 

5,900

 

 

 

(1,830

)

 

 

4,070

 

Supplier relationships

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2,800

 

 

 

(2,800

)

 

 

—

 

Licensing agreements

 

 

560

 

 

 

(207

)

 

 

353

 

 

 

560

 

 

 

(152

)

 

 

408

 

Patents

 

 

500

 

 

 

(346

)

 

 

154

 

 

 

500

 

 

 

(294

)

 

 

206

 

Trade names

 

 

210

 

 

 

(198

)

 

 

12

 

 

 

210

 

 

 

(146

)

 

 

64

 

Total

 

$

36,246

 

 

$

(15,955

)

 

$

20,291

 

 

$

39,293

 

 

$

(15,823

)

 

$

23,470

 
Estimated Future Amortization Expense Related to Intangible Assets

Estimated future amortization expense of intangible assets was as follows:

 

 

 

As of

 

(In thousands)

 

September 30, 2021

 

2021

 

$

984

 

2022

 

 

3,479

 

2023

 

 

3,327

 

2024

 

 

3,233

 

2025

 

 

3,027

 

Thereafter

 

 

6,241

 

Total

 

$

20,291

 
v3.21.2
Leases (Tables)
 9 Months Ended
Sep. 30, 2021
Leases [Abstract]  
Net Investment in Sales-Type Leases

We are the lessor in sales-type lease arrangements for network equipment, which consisted of the following:

 

 

As of

 

 

As of

 

(In thousands)

 

September 30, 2021

 

 

December 31, 2020

 

Current minimum lease payments receivable(1)

 

$

129

 

 

$

702

 

Non-current minimum lease payments receivable(2)

 

 

7

 

 

 

347

 

     Total minimum lease payments receivable

 

 

136

 

 

 

1,049

 

Less: Current unearned revenue

 

 

98

 

 

 

218

 

Less: Non-current unearned revenue

 

 

1

 

 

 

50

 

     Net investment in sales-type leases

 

$

37

 

 

$

781

 

 

(1)
Included in other receivables on the Condensed Consolidated Balance Sheets.
(2)
Included in other assets on the Condensed Consolidated Balance Sheets. 
v3.21.2
Stockholders' Equity (Tables)
 9 Months Ended
Sep. 30, 2021
Equity [Abstract]  
Changes in Accumulated Other Comprehensive Loss, Net of Tax by Component

The following tables present the changes in accumulated other comprehensive loss, net of tax, by component:

 

 

 

Three Months Ended September 30, 2021

 

(In thousands)

 

Unrealized
Losses
on
Available-
for-Sale
Securities

 

 

Defined
Benefit Plan
Adjustments

 

 

Foreign
Currency
Adjustments

 

 

ASU 2018-02 Adoption

 

 

Total

 

As of June 30, 2021

 

$

(255

)

 

$

(9,310

)

 

$

(3,960

)

 

$

385

 

 

$

(13,140

)

Other comprehensive loss before
   reclassifications

 

 

(29

)

 

 

—

 

 

 

(1,389

)

 

 

—

 

 

 

(1,418

)

Amounts reclassified from accumulated other
   comprehensive income (loss)

 

 

(32

)

 

 

124

 

 

 

—

 

 

 

—

 

 

 

92

 

Net current period other comprehensive income (loss)

 

 

(61

)

 

 

124

 

 

 

(1,389

)

 

 

—

 

 

 

(1,326

)

As of September 30, 2021

 

$

(316

)

 

$

(9,186

)

 

$

(5,349

)

 

$

385

 

 

$

(14,466

)

 

 

 

 

 

Three Months Ended September 30, 2020

 

(In thousands)

 

Unrealized
Gains
(Losses)
on
Available-
for-Sale
Securities

 

 

Defined
Benefit Plan
Adjustments

 

 

Foreign
Currency
Adjustments

 

 

ASU 2018-02 Adoption

 

 

Total

 

As of June 30, 2020

 

$

206

 

 

$

(8,894

)

 

$

(7,043

)

 

$

385

 

 

$

(15,346

)

Other comprehensive income before
   reclassifications

 

 

494

 

 

 

—

 

 

 

2,469

 

 

 

—

 

 

 

2,963

 

Amounts reclassified from accumulated other
   comprehensive income (loss)

 

 

(539

)

 

 

244

 

 

 

—

 

 

 

—

 

 

 

(295

)

Net current period other comprehensive income (loss)

 

 

(45

)

 

 

244

 

 

 

2,469

 

 

 

—

 

 

 

2,668

 

As of September 30, 2020

 

$

161

 

 

$

(8,650

)

 

$

(4,574

)

 

$

385

 

 

$

(12,678

)

 

 

 

 

Nine Months Ended September 30, 2021

 

(In thousands)

 

Unrealized
Gains
(Losses)
on
Available-
for-Sale
Securities

 

 

Defined
Benefit Plan
Adjustments

 

 

Foreign
Currency
Adjustments

 

 

ASU 2018-02 Adoption

 

 

Total

 

As of December 31, 2020

 

$

32

 

 

$

(9,621

)

 

$

(2,435

)

 

$

385

 

 

$

(11,639

)

Other comprehensive loss before
   reclassifications

 

 

(358

)

 

 

—

 

 

 

(2,914

)

 

 

—

 

 

 

(3,272

)

Amounts reclassified from accumulated other
   comprehensive income

 

 

10

 

 

 

435

 

 

 

—

 

 

 

—

 

 

 

445

 

Net current period other comprehensive income (loss)

 

 

(348

)

 

 

435

 

 

 

(2,914

)

 

 

—

 

 

 

(2,827

)

As of September 30, 2021

 

$

(316

)

 

$

(9,186

)

 

$

(5,349

)

 

$

385

 

 

$

(14,466

)

 

 

 

Nine Months Ended September 30, 2020

 

(In thousands)

 

Unrealized
Gains
(Losses)
on
Available-
for-Sale
Securities

 

 

Defined
Benefit Plan
Adjustments

 

 

Foreign
Currency
Adjustments

 

 

ASU 2018-02 Adoption

 

 

Total

 

As of December 31, 2019

 

$

(284

)

 

$

(9,226

)

 

$

(7,292

)

 

$

385

 

 

$

(16,417

)

Other comprehensive income before
   reclassifications

 

 

444

 

 

 

—

 

 

 

2,718

 

 

 

—

 

 

 

3,162

 

Amounts reclassified from accumulated other
   comprehensive income

 

 

1

 

 

 

576

 

 

 

—

 

 

 

—

 

 

 

577

 

Net current period other comprehensive income

 

 

445

 

 

 

576

 

 

 

2,718

 

 

 

—

 

 

 

3,739

 

As of September 30, 2020

 

$

161

 

 

$

(8,650

)

 

$

(4,574

)

 

$

385

 

 

$

(12,678

)
Reclassifications Out of Accumulated Other Comprehensive Income (Loss)

The following tables present the details of reclassifications out of accumulated other comprehensive income (loss):

 

 

 

Three Months Ended September 30, 2021

(In thousands)

 

Amount
Reclassified
from
Accumulated
Other
Comprehensive
Income (Loss)

 

 

Affected Line Item in the
Statement Where Net
Income Is Presented

Unrealized gain (loss) on available-for-sale securities:

 

 

 

 

 

Net realized loss on sales of securities

 

$

42

 

 

Net investment gain (loss)

Defined benefit plan adjustments – actuarial gain

 

 

(180

)

 

(1)

Total reclassifications for the period, before tax

 

 

(138

)

 

 

Tax expense

 

 

46

 

 

 

Total reclassifications for the period, net of tax

 

$

(92

)

 

 

 

(1)
A part of the computation of net periodic pension cost, which is included in other income (expense), net in the Condensed Consolidated Statements of Income (Loss).

 

 

 

Three Months Ended September 30, 2020

(In thousands)

 

Amount
Reclassified
from
Accumulated
Other
Comprehensive
Income (Loss)

 

 

Affected Line Item in the
Statement Where Net
Income Is Presented

Unrealized gain (loss) on available-for-sale securities:

 

 

 

 

 

Net realized loss on sales of securities

 

$

728

 

 

Net investment gain (loss)

Defined benefit plan adjustments – actuarial gain

 

 

(354

)

 

(1)

Total reclassifications for the period, before tax

 

 

374

 

 

 

Tax benefit

 

 

(79

)

 

 

Total reclassifications for the period, net of tax

 

$

295

 

 

 
(1)
A part of the computation of net periodic pension cost, which is included in other income (expense), net in the Condensed Consolidated Statements of Income (Loss).

 

 

 

Nine Months Ended September 30, 2021

(In thousands)

 

Amount
Reclassified
from
Accumulated
Other
Comprehensive
Income (Loss)

 

 

Affected Line Item in the
Statement Where Net
Income Is Presented

Unrealized gain (loss) on available-for-sale securities:

 

 

 

 

 

Net realized gain on sales of securities

 

$

(13

)

 

Net investment gain (loss)

Defined benefit plan adjustments – actuarial gain

 

 

(630

)

 

(1)

Total reclassifications for the period, before tax

 

 

(643

)

 

 

Tax expense

 

 

198

 

 

 

Total reclassifications for the period, net of tax

 

$

(445

)

 

 
(1)
A part of the computation of net periodic pension cost, which is included in other income (expense), net in the Condensed Consolidated Statements of Income (Loss).

 

 

 

Nine Months Ended September 30, 2020

(In thousands)

 

Amount
Reclassified
from
Accumulated
Other
Comprehensive
Income (Loss)

 

 

Affected Line Item in the
Statement Where Net
Income Is Presented

Unrealized gain (loss) on available-for-sale securities:

 

 

 

 

 

Net realized gain on sales of securities

 

$

(1

)

 

Net investment gain (loss)

Defined benefit plan adjustments – actuarial gain

 

 

(835

)

 

(1)

Total reclassifications for the period, before tax

 

 

(836

)

 

 

Tax expense

 

 

259

 

 

 

Total reclassifications for the period, net of tax

 

$

(577

)

 

 
(1)
A part of the computation of net periodic pension cost, which is included in other income (expense), net in the Condensed Consolidated Statements of Income (Loss).
Tax Effects Related to the Change in Each Component of Other Comprehensive Income (Loss)

The following tables present the tax effects related to the change in each component of other comprehensive income (loss):

 

 

Three Months Ended

 

 

Three Months Ended

 

 

 

September 30, 2021

 

 

September 30, 2020

 

(In thousands)

 

Before-Tax
Amount

 

 

Tax
(Expense)
Benefit

 

 

Net-of-Tax
Amount

 

 

Before-Tax
Amount

 

 

Tax
(Expense)
Benefit

 

 

Net-of-Tax
Amount

 

Unrealized gain (loss) on available-for-sale
   securities

 

$

(38

)

 

$

9

 

 

$

(29

)

 

$

668

 

 

$

(174

)

 

$

494

 

Reclassification adjustment for amounts related to
   available-for-sale investments included in net
   income (loss)

 

 

(42

)

 

 

10

 

 

 

(32

)

 

 

(728

)

 

 

189

 

 

 

(539

)

Reclassification adjustment for amounts related to
   defined benefit plan adjustments included in net
   income (loss)

 

 

180

 

 

 

(56

)

 

 

124

 

 

 

354

 

 

 

(110

)

 

 

244

 

Foreign currency translation adjustment

 

 

(1,389

)

 

 

—

 

 

 

(1,389

)

 

 

2,469

 

 

 

—

 

 

 

2,469

 

Total Other Comprehensive Income (Loss)

 

$

(1,289

)

 

$

(37

)

 

$

(1,326

)

 

$

2,763

 

 

$

(95

)

 

$

2,668

 

 

 

 

Nine Months Ended

 

 

Nine Months Ended

 

 

 

September 30, 2021

 

 

September 30, 2020

 

(In thousands)

 

Before-Tax
Amount

 

 

Tax
(Expense)
Benefit

 

 

Net-of-Tax
Amount

 

 

Before-Tax
Amount

 

 

Tax
(Expense)
Benefit

 

 

Net-of-Tax
Amount

 

Unrealized gain (loss) on available-for-sale
   securities

 

$

(471

)

 

$

113

 

 

$

(358

)

 

$

600

 

 

$

(156

)

 

$

444

 

Reclassification adjustment for amounts related to
   available-for-sale investments included in net
   income (loss)

 

 

13

 

 

 

(3

)

 

 

10

 

 

 

1

 

 

 

—

 

 

 

1

 

Reclassification adjustment for amounts related to
   defined benefit plan adjustments included in net
   income (loss)

 

 

630

 

 

 

(195

)

 

 

435

 

 

 

835

 

 

 

(259

)

 

 

576

 

Foreign currency translation adjustment

 

 

(2,914

)

 

 

—

 

 

 

(2,914

)

 

 

2,718

 

 

 

—

 

 

 

2,718

 

Total Other Comprehensive Income (Loss)

 

$

(2,742

)

 

$

(85

)

 

$

(2,827

)

 

$

4,154

 

 

$

(415

)

 

$

3,739

 
v3.21.2
Earnings (Loss) Per Share (Tables)
 9 Months Ended
Sep. 30, 2021
Earnings Per Share [Abstract]  
Summary of Calculation of Basic and Diluted Earnings (Loss) Per Share

The calculation of basic and diluted earnings (loss) per share is as follows:

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

(In thousands, except per share amounts)

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Numerator

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

(10,427

)

 

$

5,481

 

 

$

(4,445

)

 

$

(3,736

)

Denominator

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of shares – basic

 

 

48,609

 

 

 

47,957

 

 

 

48,470

 

 

 

47,957

 

Effect of dilutive securities

 

 

 

 

 

 

 

 

 

 

 

 

PSUs, RSUs and restricted stock

 

 

—

 

 

 

467

 

 

 

—

 

 

 

—

 

Weighted average number of shares – diluted

 

 

48,609

 

 

 

48,424

 

 

 

48,470

 

 

 

47,957

 

Earnings (loss) per share – basic

 

$

(0.21

)

 

$

0.11

 

 

$

(0.09

)

 

$

(0.08

)

Earnings (loss) per share – diluted

 

$

(0.21

)

 

$

0.11

 

 

$

(0.09

)

 

$

(0.08

)

 

 
v3.21.2
Segment Information (Tables)
 9 Months Ended
Sep. 30, 2021
Segment Reporting [Abstract]  
Revenue and Gross Profit of Reportable Segments

The following tables present information about the revenue and gross profit of our reportable segments:

 

 

 

Three Months Ended

 

 

 

September 30, 2021

 

 

September 30, 2020

 

(In thousands)

 

Revenue

 

 

Gross Profit

 

 

Revenue

 

 

Gross Profit

 

Network Solutions

 

$

120,767

 

 

$

39,738

 

 

$

115,229

 

 

$

52,434

 

Services & Support

 

 

17,314

 

 

 

7,935

 

 

 

17,914

 

 

 

6,528

 

Total

 

$

138,081

 

 

$

47,673

 

 

$

133,143

 

 

$

58,962

 

 

 

 

Nine Months Ended

 

 

 

September 30, 2021

 

 

September 30, 2020

 

(In thousands)

 

Revenue

 

 

Gross Profit

 

 

Revenue

 

 

Gross Profit

 

Network Solutions

 

$

360,025

 

 

$

143,981

 

 

$

323,924

 

 

$

145,432

 

Services & Support

 

 

48,821

 

 

 

19,961

 

 

 

52,457

 

 

 

18,602

 

Total

 

$

408,846

 

 

$

163,942

 

 

$

376,381

 

 

$

164,034

 
Disaggregate of Revenue by Reportable Segment and Revenue Category

The following tables disaggregate revenue by reportable segment and revenue category:

 

 

 

Three Months Ended

 

 

 

September 30, 2021

 

 

September 30, 2020

 

(In thousands)

 

Network Solutions

 

 

Services & Support

 

 

Total

 

 

Network Solutions

 

 

Services & Support

 

 

Total

 

Access & Aggregation

 

$

77,104

 

 

$

12,069

 

 

$

89,173

 

 

$

71,919

 

 

$

13,504

 

 

$

85,423

 

Subscriber Solutions & Experience

 

 

42,093

 

 

 

2,819

 

 

 

44,912

 

 

 

40,843

 

 

 

2,282

 

 

 

43,125

 

Traditional & Other Products

 

 

1,570

 

 

 

2,426

 

 

 

3,996

 

 

 

2,467

 

 

 

2,128

 

 

 

4,595

 

Total

 

$

120,767

 

 

$

17,314

 

 

$

138,081

 

 

$

115,229

 

 

$

17,914

 

 

$

133,143

 

 

 

 

Nine Months Ended

 

 

 

September 30, 2021

 

 

September 30, 2020

 

(In thousands)

 

Network Solutions

 

 

Services & Support

 

 

Total

 

 

Network Solutions

 

 

Services & Support

 

 

Total

 

Access & Aggregation

 

$

215,464

 

 

$

33,747

 

 

$

249,211

 

 

$

194,695

 

 

$

39,470

 

 

$

234,165

 

Subscriber Solutions & Experience

 

 

139,459

 

 

 

7,832

 

 

 

147,291

 

 

 

118,907

 

 

 

6,790

 

 

 

125,697

 

Traditional & Other Products

 

 

5,102

 

 

 

7,242

 

 

 

12,344

 

 

 

10,322

 

 

 

6,197

 

 

 

16,519

 

Total

 

$

360,025

 

 

$

48,821

 

 

$

408,846

 

 

$

323,924

 

 

$

52,457

 

 

$

376,381

 

The table below presents revenue information by category:

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

(In thousands)

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Access & Aggregation

 

$

89,173

 

 

$

85,423

 

 

$

249,211

 

 

$

234,165

 

Subscriber Solutions & Experience

 

 

44,912

 

 

 

43,125

 

 

 

147,291

 

 

 

125,697

 

Traditional & Other Products

 

 

3,996

 

 

 

4,595

 

 

 

12,344

 

 

 

16,519

 

Total

 

$

138,081

 

 

$

133,143

 

 

$

408,846

 

 

$

376,381

 
Revenue Information by Geographic Area

The following table presents revenue information by geographic area:

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

(In thousands)

 

2021

 

 

2020

 

 

2021

 

 

2020

 

United States

 

$

91,868

 

 

$

92,838

 

 

$

273,009

 

 

$

256,287

 

International

 

 

46,213

 

 

 

40,305

 

 

 

135,837

 

 

 

120,094

 

Total

 

$

138,081

 

 

$

133,143

 

 

$

408,846

 

 

$

376,381

 
v3.21.2
Liability for Warranty Returns (Tables)
 9 Months Ended
Sep. 30, 2021
Product Warranties Disclosures [Abstract]  
Summary of Reversal of Prior Provisions Related to Warranty Expirations During the three and nine months ended September 30, 2021 and 2020, we had a net reversal of prior provisions related to warranty expirations, the impact of which is reflected in the table below:

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

(In thousands)

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Balance at beginning of period

 

$

5,997

 

 

$

7,294

 

 

$

7,146

 

 

$

8,394

 

Plus: Amounts charged to cost and expenses

 

 

472

 

 

 

632

 

 

 

253

 

 

 

970

 

Less: Deductions

 

 

(822

)

 

 

(734

)

 

 

(1,752

)

 

 

(2,172

)

Balance at end of period

 

$

5,647

 

 

$

7,192

 

 

$

5,647

 

 

$

7,192

 
v3.21.2
Restructuring (Tables)
 9 Months Ended
Sep. 30, 2021
Restructuring And Related Activities [Abstract]  
Schedule of Reconciliation of Restructuring Liability

A reconciliation of the beginning and ending restructuring liability, which is included in accrued wages and benefits in the Condensed Consolidated Balance Sheets is as follows:

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

(In thousands)

 

September 30, 2021

 

 

September 30, 2021

 

Balance at beginning of period

 

$

1,521

 

 

$

4,186

 

Plus: Amounts charged to cost and expense

 

 

—

 

 

 

309

 

Less: Amounts paid

 

 

(42

)

 

 

(3,016

)

Balance as of September 30, 2021

 

$

1,479

 

 

$

1,479

 

 

(In thousands)

 

For the Year Ended December 31, 2020

 

Balance as of December 31, 2019

 

$

1,568

 

Plus: Amounts charged to cost and expense

 

 

6,229

 

Less: Amounts paid

 

 

(3,611

)

Balance as of December 31, 2020

 

$

4,186

 
Schedule of Components of Restructuring Expenses

Restructuring expenses included in the Condensed Consolidated Statements of Income (Loss) were as follows:

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

(In thousands)

 

2021

 

 

2020

 

 

2021

 

 

2020

 

   Network Solutions - Cost of revenue

 

$

—

 

 

$

187

 

 

$

12

 

 

$

220

 

   Services & Support - Cost of revenue

 

 

—

 

 

 

45

 

 

 

3

 

 

 

68

 

Cost of revenue

 

$

—

 

 

$

232

 

 

$

15

 

 

$

288

 

Selling, general and administrative expenses (1)

 

 

—

 

 

 

1,050

 

 

 

145

 

 

 

1,622

 

Research and development expenses (1)

 

 

—

 

 

 

621

 

 

 

149

 

 

 

1,738

 

Total restructuring expenses

 

$

—

 

 

$

1,903

 

 

$

309

 

 

$

3,648

 

 

(1) The Company does not allocate selling, general and administrative expense and research and development expense to the segment level.

 

Components of restructuring expense by geographic area were as follows:

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

(In thousands)

 

2021

 

 

2020

 

 

2021

 

 

2020

 

United States

 

$

—

 

 

$

448

 

 

$

212

 

 

$

2,191

 

International

 

 

—

 

 

 

1,455

 

 

 

97

 

 

 

1,457

 

Total restructuring expenses

 

$

—

 

 

$

1,903

 

 

$

309

 

 

$

3,648

 
v3.21.2
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Mar. 31, 2020
Sep. 30, 2021
Sep. 30, 2020
Summary Of Significant Accounting Policy [Line Items]          
Tax benefit in other comprehensive income (loss) $ 37 $ 95   $ 85 $ 415
ASU 2016-13 [Member]          
Summary Of Significant Accounting Policy [Line Items]          
Change in Accounting Principle, Accounting Standards Update, Adopted [true false] true     true  
Change in Accounting Principle, Accounting Standards Update, Adoption Date Jan. 01, 2020     Jan. 01, 2020  
Change in Accounting Principle, Accounting Standards Update, Immaterial Effect [true false] true     true  
ASU 2019-12 [Member]          
Summary Of Significant Accounting Policy [Line Items]          
Change in Accounting Principle, Accounting Standards Update, Adopted [true false] true     true  
Change in Accounting Principle, Accounting Standards Update, Adoption Date Apr. 01, 2020     Apr. 01, 2020  
Change in Accounting Principle, Accounting Standards Update, Immaterial Effect [true false] true     true  
Adjustments for New Accounting Principle, Early Adoption [Member]          
Summary Of Significant Accounting Policy [Line Items]          
Tax benefit in other comprehensive income (loss)     $ (100)    
Overstatement Long-term Investment Balance at Remeasured Cost Basis [Member]          
Summary Of Significant Accounting Policy [Line Items]          
Amount of revision     2,800    
Errors in Net Investment Gain [Member]          
Summary Of Significant Accounting Policy [Line Items]          
Amount of revision     $ 1,500    
v3.21.2
Cash, Cash Equivalents and Restricted Cash - Summary of Reconciliation of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($)
$ in Thousands
Sep. 30, 2021
Dec. 31, 2020
Cash And Cash Equivalents [Abstract]    
Cash and cash equivalents $ 75,503 $ 60,161
Restricted cash 102 18
Cash, cash equivalents and restricted cash $ 75,605 $ 60,179
v3.21.2
Revenue - Additional Information (Detail)
 3 Months Ended 9 Months Ended
Sep. 30, 2021
USD ($)
Sep. 30, 2021
USD ($)
Category
Dec. 31, 2020
USD ($)
Revenue [Line Items]      
Number of categories | Category   3  
Remaining performance obligations $ 0 $ 0  
Recognized revenue 2,000,000.0 9,800,000  
Other Than Maintenance Services [Member]      
Revenue [Line Items]      
Remaining performance obligations $ 20,700,000 $ 20,700,000 $ 17,700,000
v3.21.2
Revenue - Disaggregate of Revenue by Reportable Segment and Revenue Category (Detail) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
Disaggregation Of Revenue [Line Items]        
Revenue $ 138,081 $ 133,143 $ 408,846 $ 376,381
Access & Aggregation [Member]        
Disaggregation Of Revenue [Line Items]        
Revenue 89,173 85,423 249,211 234,165
Subscriber Solutions & Experience [Member]        
Disaggregation Of Revenue [Line Items]        
Revenue 44,912 43,125 147,291 125,697
Traditional & Other Products [Member]        
Disaggregation Of Revenue [Line Items]        
Revenue 3,996 4,595 12,344 16,519
Network Solutions [Member]        
Disaggregation Of Revenue [Line Items]        
Revenue 120,767 115,229 360,025 323,924
Network Solutions [Member] | Access & Aggregation [Member]        
Disaggregation Of Revenue [Line Items]        
Revenue 77,104 71,919 215,464 194,695
Network Solutions [Member] | Subscriber Solutions & Experience [Member]        
Disaggregation Of Revenue [Line Items]        
Revenue 42,093 40,843 139,459 118,907
Network Solutions [Member] | Traditional & Other Products [Member]        
Disaggregation Of Revenue [Line Items]        
Revenue 1,570 2,467 5,102 10,322
Services & Support [Member]        
Disaggregation Of Revenue [Line Items]        
Revenue 17,314 17,914 48,821 52,457
Services & Support [Member] | Access & Aggregation [Member]        
Disaggregation Of Revenue [Line Items]        
Revenue 12,069 13,504 33,747 39,470
Services & Support [Member] | Subscriber Solutions & Experience [Member]        
Disaggregation Of Revenue [Line Items]        
Revenue 2,819 2,282 7,832 6,790
Services & Support [Member] | Traditional & Other Products [Member]        
Disaggregation Of Revenue [Line Items]        
Revenue $ 2,426 $ 2,128 $ 7,242 $ 6,197
v3.21.2
Revenue - Additional Information (Detail1) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2021-10-01
Sep. 30, 2021
Revenue [Line Items]  
Remaining performance obligations, percentage 64.00%
Remaining performance obligations, period 12 months
v3.21.2
Revenue - Information about Receivables, Contract Assets, and Unearned Revenue from Contracts with Customers (Detail) - USD ($)
$ in Thousands
Sep. 30, 2021
Dec. 31, 2020
Revenue From Contract With Customer [Abstract]    
Accounts receivable, net $ 124,146 $ 98,827
Contract assets 999 63
Unearned revenue 16,394 14,092
Non-current unearned revenue $ 7,426 $ 6,888
v3.21.2
Income Taxes - Additional Information (Detail) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2021
Mar. 31, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
Dec. 31, 2020
Dec. 31, 2019
Income Tax Disclosure [Line Items]              
Effective tax rate expense (benefit) 14.10%   9.30% 354.50% (36.80%)    
Income tax benefit, result of CARES act of 2020         $ 7,800    
Income tax expense, result of Alabama business tax competitiveness act   $ 1,600          
Unrecognized tax benefits $ 18,178     $ 18,178   $ 1,078 $ 1,487
Deferred tax assets, gross 59,189     59,189   55,687  
Valuation allowance established against deferred tax assets 50,232     50,232   45,818  
Deferred tax assets 8,957     8,957   9,869  
Unrecognized tax benefits, effective tax rate 18,100     18,100   1,000  
Accrued interest and penalties 300     300   300  
IRS [Member]              
Income Tax Disclosure [Line Items]              
Income tax refund receivable 15,200     15,200      
Deferred tax asset, research and development credit carryforwards 1,800     1,800      
Unrecognized tax benefits 17,000     17,000      
Domestic [Member]              
Income Tax Disclosure [Line Items]              
Deferred tax assets, gross 47,839     47,839   43,791  
Valuation allowance established against deferred tax assets 47,839     47,839   43,791  
Increase in deferred tax asset valuation allowance       4,000      
International [Member]              
Income Tax Disclosure [Line Items]              
Deferred tax assets, gross 11,350     11,350   11,896  
Valuation allowance established against deferred tax assets 2,393     2,393   2,027  
Deferred tax assets $ 8,957     8,957   $ 9,869  
Increase in deferred tax asset valuation allowance       $ 400      
v3.21.2
Income Taxes - Summary of Supplemental Balance Sheet Information Related to Deferred Tax Assets (Detail) - USD ($)
$ in Thousands
Sep. 30, 2021
Dec. 31, 2020
Operating Loss Carryforwards [Line Items]    
Deferred Tax Assets $ 59,189 $ 55,687
Valuation Allowance (50,232) (45,818)
Deferred Tax Assets, net 8,957 9,869
Domestic [Member]    
Operating Loss Carryforwards [Line Items]    
Deferred Tax Assets 47,839 43,791
Valuation Allowance (47,839) (43,791)
International [Member]    
Operating Loss Carryforwards [Line Items]    
Deferred Tax Assets 11,350 11,896
Valuation Allowance (2,393) (2,027)
Deferred Tax Assets, net $ 8,957 $ 9,869
v3.21.2
Income Taxes - Change in Unrecognized Income Tax Benefits (Detail) - USD ($)
$ in Thousands
 9 Months Ended 12 Months Ended
Sep. 30, 2021
Dec. 31, 2020
Income Tax Disclosure [Abstract]    
Balance at beginning of period $ 1,078 $ 1,487
Increases for tax position related to, Prior years 17,025 4
Increases for tax position related to, Current year 102 165
Decreases for tax positions related to, Prior years (27)  
Expiration of applicable statute of limitations   (578)
Balance at end of period $ 18,178 $ 1,078
v3.21.2
Stock-Based Compensation - Stock-Based Compensation Expense Related to Stock Options, PSUs, RSUs and Restricted Stock (Detail) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]        
Total stock-based compensation expense $ 1,842 $ 1,610 $ 5,457 $ 5,056
Tax benefit for expense associated with stock options, PSUs, RSUs and restricted stock (460) (384) (1,343) (1,205)
Total stock-based compensation expense, net of tax 1,382 1,226 4,114 3,851
Stock-based Compensation Expense Included in Cost of Revenue [Member]        
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]        
Total stock-based compensation expense 133 101 389 303
Selling, General and Administrative Expense [Member]        
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]        
Total stock-based compensation expense 1,116 953 3,312 2,999
Research and Development Expense [Member]        
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]        
Total stock-based compensation expense 593 556 1,756 1,754
Stock-based Compensation Expense Included in Operating Expenses [Member]        
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]        
Total stock-based compensation expense $ 1,709 $ 1,509 $ 5,068 $ 4,753
v3.21.2
Stock-Based Compensation - Summary of PSUs, RSUs and Restricted Stock Outstanding (Detail)
shares in Thousands
 9 Months Ended
Sep. 30, 2021
$ / shares
shares
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]  
Number of Shares, Unvested PSUs, RSUs and restricted stock outstanding, beginning balance | shares 1,846
Number of Shares, PSUs, RSUs and restricted stock granted | shares 359
Number of Shares, PSUs, RSUs and restricted stock vested | shares (21)
Number of Shares, PSUs, RSUs and restricted stock forfeited | shares (65)
Number of Shares, Unvested PSUs, RSUs and restricted stock outstanding, ending balance | shares 2,119
Weighted Avg. Grant Date Fair Value, Unvested PSUs, RSUs and restricted stock outstanding, Beginning Balance | $ / shares $ 11.49
Weighted Avg. Grant Date Fair Value, PSUs, RSUs and restricted stock granted | $ / shares 16.75
Weighted Avg. Grant Date Fair Value, PSUs, RSUs and restricted stock vested | $ / shares 13.00
Weighted Avg. Grant Date Fair Value, PSUs, RSUs and restricted stock forfeited | $ / shares 11.93
Weighted Avg. Grant Date Fair Value, Unvested PSUs, RSUs and restricted stock outstanding, Ending Balance | $ / shares $ 12.40
v3.21.2
Stock-Based Compensation (PSUs, RSUs and Restricted Stock) - Additional Information (Detail) - USD ($)
shares in Thousands, $ in Millions
 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]    
Share granted 359  
Options available for issuance under stockholders-approved equity plan 4,000  
Performance Stock Units (PSUs) [Member]    
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]    
Share granted 300 300
Vesting period 2 years 3 years
Performance Stock Units (PSUs) [Member] | Minimum [Member]    
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]    
Percentage of performance stock units granted 0.00% 0.00%
Performance Stock Units (PSUs) [Member] | Maximum [Member]    
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]    
Percentage of performance stock units granted 142.80% 142.80%
Market-Based PSUs, RSUs and Restricted Stock [Member]    
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]    
Unrecognized compensation expense related to other than options $ 11.3  
Recognition period of unvested compensation expense 2 years 3 months 18 days  
Performance-Based PSUs [Member]    
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]    
Unrecognized compensation expense related to other than options $ 7.5  
Recognition period of unvested compensation expense 1 year 3 months 18 days  
v3.21.2
Stock-Based Compensation - Summary of Stock Options Outstanding (Detail) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 9 Months Ended 12 Months Ended
Sep. 30, 2021
Dec. 31, 2020
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]    
Number of Stock Options, Stock options outstanding, Beginning Balance 2,718  
Number of Stock Options, Stock options exercised (363)  
Number of Stock Options, Stock options expired (607)  
Number of Stock Options, Stock options outstanding, Ending Balance 1,748 2,718
Number of Stock Options, Stock options exercisable 1,748  
Weighted Avg. Exercise Price, Stock options outstanding, Beginning Balance $ 21.17  
Weighted Avg. Exercise Price, Stock options exercised 16.81  
Weighted Avg. Exercise Price, Stock options expired 28.93  
Weighted Avg. Exercise Price, Stock options outstanding, Ending Balance 19.37 $ 21.17
Weighted Avg. Exercise Price, Stock options exercisable $ 19.37  
Weighted Avg. Remaining Contractual Life In Years, Stock options outstanding 2 years 8 months 12 days 2 years 10 months 24 days
Weighted Avg. Remaining Contractual Life in Years, Stock options exercisable 2 years 8 months 12 days  
Aggregate Intrinsic Value, Stock options exercised $ 1,411  
Aggregate Intrinsic Value, Stock options expired 18  
Aggregate Intrinsic Value, Stock options outstanding 2,060  
Aggregate Intrinsic Value, Stock options exercisable $ 2,060  
v3.21.2
Stock-Based Compensation (Stock Options) - Additional Information (Detail) - USD ($)
 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]    
Unrecognized compensation expense related to stock options $ 0  
Number of Stock options, granted 0 0
Aggregate intrinsic value based on fair market value $ 2,060,000  
Total pre-tax intrinsic value of options exercised $ 1,411,000  
v3.21.2
Investments - Debt Securities and Other Investments, Included on Condensed Consolidated Balance Sheet and Recorded at Fair Value (Detail) - USD ($)
$ in Thousands
Sep. 30, 2021
Dec. 31, 2020
Schedule of Available-for-sale Securities [Line Items]    
Amortized Cost $ 45,416 $ 44,666
Gross Unrealized Gains 139 457
Gross Unrealized Losses (40) (7)
Fair Value 45,515 45,116
Corporate Bonds [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Amortized Cost 13,381 11,762
Gross Unrealized Gains 39 123
Gross Unrealized Losses (6)  
Fair Value 13,414 11,885
Municipal Fixed-Rate Bonds [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Amortized Cost 2,236 2,854
Gross Unrealized Gains 13 30
Gross Unrealized Losses (1)  
Fair Value 2,248 2,884
Asset-Backed Bonds [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Amortized Cost 3,497 6,634
Gross Unrealized Gains 17 74
Gross Unrealized Losses (1)  
Fair Value 3,513 6,708
Mortgage/Agency-Backed Bonds [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Amortized Cost 9,194 11,536
Gross Unrealized Gains 35 114
Gross Unrealized Losses (17) (6)
Fair Value 9,212 11,644
U.S. Government Bonds [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Amortized Cost 16,031 9,763
Gross Unrealized Gains 34 112
Gross Unrealized Losses (13)  
Fair Value 16,052 9,875
Foreign Government Bonds [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Amortized Cost 544 1,334
Gross Unrealized Gains 1 4
Gross Unrealized Losses (2) (1)
Fair Value 543 1,337
Commercial Paper [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Amortized Cost   250
Fair Value   250
Other [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Amortized Cost 533 533
Fair Value $ 533 $ 533
v3.21.2
Investments - Contractual Maturities of Debt Securities and Other Investments (Detail) - USD ($)
$ in Thousands
Sep. 30, 2021
Dec. 31, 2020
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale debt securities, Fair Value/Carrying Value $ 45,515 $ 45,116
Corporate Bonds [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Less than one year 275  
One to two years 4,494  
Two to three years 6,616  
Three to five years 2,029  
Available-for-sale debt securities, Fair Value/Carrying Value 13,414 11,885
Municipal Fixed-Rate Bonds [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Less than one year 652  
One to two years 534  
Two to three years 761  
Three to five years 301  
Available-for-sale debt securities, Fair Value/Carrying Value 2,248 2,884
Asset-Backed Bonds [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Two to three years 93  
Three to five years 1,573  
Five to ten years 785  
More than ten years 1,062  
Available-for-sale debt securities, Fair Value/Carrying Value 3,513 6,708
Mortgage/Agency-Backed Bonds [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Less than one year 638  
One to two years 1,005  
Two to three years 1,102  
Three to five years 235  
Five to ten years 1,322  
More than ten years 4,910  
Available-for-sale debt securities, Fair Value/Carrying Value 9,212 11,644
U.S. Government Bonds [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Less than one year 2,593  
One to two years 4,021  
Two to three years 5,810  
Three to five years 3,628  
Available-for-sale debt securities, Fair Value/Carrying Value 16,052 9,875
Foreign Government Bonds [Member]    
Schedule of Available-for-sale Securities [Line Items]    
One to two years 246  
Two to three years 297  
Available-for-sale debt securities, Fair Value/Carrying Value 543 1,337
Other [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Less than one year 533  
Available-for-sale debt securities, Fair Value/Carrying Value $ 533 $ 533
v3.21.2
Investments - Gross Realized Gains and Losses on Sale of Debt Securities (Detail) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
Investments Debt And Equity Securities [Abstract]        
Gross realized gain on debt securities $ 22 $ 70 $ 206 $ 303
Gross realized loss on debt securities (17) (6) (53) (45)
Total gain recognized, net $ 5 $ 64 $ 153 $ 258
v3.21.2
Investments - Additional Information (Detail) - USD ($)
 3 Months Ended 9 Months Ended 12 Months Ended
Mar. 31, 2019
Sep. 30, 2021
Sep. 30, 2020
Dec. 31, 2020
Schedule of Investments [Line Items]        
Available-for-sale debt securities, allowance for credit loss   $ 0 $ 0  
Purchase an available-for-sale debt securities with credit deterioration   0    
Transfer from investments $ 3,400,000      
Asset impairments     $ 65,000  
Carrying value of investment   800,000   $ 800,000
Net Investment Gain (Loss) [Member]        
Schedule of Investments [Line Items]        
Asset impairments       2,600,000
Other Receivables [Member]        
Schedule of Investments [Line Items]        
Note receivable, current $ 4,300,000 4,300,000   4,300,000
Asset impairments   0    
Long-term Investments [Member]        
Schedule of Investments [Line Items]        
Note receivable, noncurrent   $ 900,000   $ 900,000
Investment [Member] | Issuer Concentration [Member] | Market Value of Total Investment Portfolio [Member]        
Schedule of Investments [Line Items]        
Investment concentration risk percentage   5.00%    
v3.21.2
Investments - Realized and Unrealized Gains and Losses related to Marketable Equity Securities (Detail) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
Investments Debt And Equity Securities [Abstract]        
Realized gain (loss) on equity securities sold   $ 623 $ (55) $ (1,485)
Unrealized (loss) gain on equity securities held $ (68) 2,157 2,844 3,046
Total gain (loss) recognized, net $ (68) $ 2,780 $ 2,789 $ 1,561
v3.21.2
Investments - Cash Equivalents and Investments held at Fair Value (Detail) - USD ($)
$ in Thousands
Sep. 30, 2021
Dec. 31, 2020
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale debt securities $ 45,515 $ 45,116
Marketable equity securities 800 800
Fair Value, Measurements [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Other investments 1,400 1,400
Total 85,724 82,217
Fair Value, Measurements [Member] | Quoted Prices in Active Market for Identical Assets (Level 1) [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Other investments 1,400 1,400
Total 55,861 46,976
Fair Value, Measurements [Member] | Significant Other Observable Inputs (Level 2) [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Total 29,330 34,708
Fair Value, Measurements [Member] | Significant Unobservable Inputs (Level 3) [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Total 533 533
Money Market Funds [Member] | Fair Value, Measurements [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Cash equivalents 532 497
Money Market Funds [Member] | Fair Value, Measurements [Member] | Quoted Prices in Active Market for Identical Assets (Level 1) [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Cash equivalents 532 497
Commercial Paper [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale debt securities   250
Commercial Paper [Member] | Fair Value, Measurements [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Cash equivalents 400  
Available-for-sale debt securities   250
Commercial Paper [Member] | Fair Value, Measurements [Member] | Significant Other Observable Inputs (Level 2) [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Cash equivalents 400  
Available-for-sale debt securities   250
Corporate Bonds [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale debt securities 13,414 11,885
Corporate Bonds [Member] | Fair Value, Measurements [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale debt securities 13,414 11,885
Corporate Bonds [Member] | Fair Value, Measurements [Member] | Significant Other Observable Inputs (Level 2) [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale debt securities 13,414 11,885
Municipal Fixed-Rate Bonds [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale debt securities 2,248 2,884
Municipal Fixed-Rate Bonds [Member] | Fair Value, Measurements [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale debt securities 2,248 2,884
Municipal Fixed-Rate Bonds [Member] | Fair Value, Measurements [Member] | Significant Other Observable Inputs (Level 2) [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale debt securities 2,248 2,884
Asset-Backed Bonds [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale debt securities 3,513 6,708
Asset-Backed Bonds [Member] | Fair Value, Measurements [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale debt securities 3,513 6,708
Asset-Backed Bonds [Member] | Fair Value, Measurements [Member] | Significant Other Observable Inputs (Level 2) [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale debt securities 3,513 6,708
Mortgage/Agency-Backed Bonds [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale debt securities 9,212 11,644
Mortgage/Agency-Backed Bonds [Member] | Fair Value, Measurements [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale debt securities 9,212 11,644
Mortgage/Agency-Backed Bonds [Member] | Fair Value, Measurements [Member] | Significant Other Observable Inputs (Level 2) [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale debt securities 9,212 11,644
U.S. Government Bonds [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale debt securities 16,052 9,875
U.S. Government Bonds [Member] | Fair Value, Measurements [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Cash equivalents   350
Available-for-sale debt securities 16,052 9,875
U.S. Government Bonds [Member] | Fair Value, Measurements [Member] | Quoted Prices in Active Market for Identical Assets (Level 1) [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Cash equivalents   350
Available-for-sale debt securities 16,052 9,875
Foreign Government Bonds [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale debt securities 543 1,337
Foreign Government Bonds [Member] | Fair Value, Measurements [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale debt securities 543 1,337
Foreign Government Bonds [Member] | Fair Value, Measurements [Member] | Significant Other Observable Inputs (Level 2) [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale debt securities 543 1,337
Other [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale debt securities 533 533
Other [Member] | Fair Value, Measurements [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale debt securities 533 533
Other [Member] | Fair Value, Measurements [Member] | Significant Unobservable Inputs (Level 3) [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale debt securities 533 533
Marketable Equity Securities - Various Industries [Member] | Fair Value, Measurements [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Marketable equity securities 12,144 10,963
Marketable Equity Securities - Various Industries [Member] | Fair Value, Measurements [Member] | Quoted Prices in Active Market for Identical Assets (Level 1) [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Marketable equity securities 12,144 10,963
Deferred Compensation Plan Assets [Member] | Fair Value, Measurements [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Marketable equity securities 25,733 23,891
Deferred Compensation Plan Assets [Member] | Fair Value, Measurements [Member] | Quoted Prices in Active Market for Identical Assets (Level 1) [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Marketable equity securities $ 25,733 $ 23,891
v3.21.2
Inventory - Components of Inventory (Detail) - USD ($)
$ in Thousands
Sep. 30, 2021
Dec. 31, 2020
Inventory Disclosure [Abstract]    
Raw materials $ 66,777 $ 47,026
Work in process 1,202 776
Finished goods 59,262 77,655
Total inventory, net $ 127,241 $ 125,457
v3.21.2
Inventory - Additional Information (Detail) - USD ($)
$ in Millions
Sep. 30, 2021
Dec. 31, 2020
Inventory Disclosure [Abstract]    
Inventory valuation reserves $ 44.3 $ 39.6
v3.21.2
Property, Plant and Equipment - Property, Plant and Equipment (Detail) - USD ($)
$ in Thousands
Sep. 30, 2021
Dec. 31, 2020
Property Plant And Equipment [Abstract]    
Land $ 4,575 $ 4,575
Building and land improvements 34,995 35,142
Building 68,156 68,169
Furniture and fixtures 19,925 19,965
Computer hardware and software 71,615 70,942
Engineering and other equipment 134,689 132,920
Total property, plant and equipment 333,955 331,713
Less: accumulated depreciation (277,399) (269,314)
Total property, plant and equipment, net $ 56,556 $ 62,399
v3.21.2
Property, Plant and Equipment - Additional Information (Detail) - USD ($)
 3 Months Ended 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
Property Plant And Equipment [Abstract]        
Impairment losses of long-lived assets $ 0 $ 0 $ 0 $ 0
Depreciation $ 3,000,000.0 $ 3,100,000 $ 9,100,000 $ 9,100,000
v3.21.2
Goodwill - Additional Information (Detail) - USD ($)
 3 Months Ended 9 Months Ended 12 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
Dec. 31, 2020
Goodwill [Line Items]          
Goodwill     $ 7,000,000.0   $ 7,000,000.0
Impairment of goodwill $ 0 $ 0 0 $ 0  
Network Solutions [Member]          
Goodwill [Line Items]          
Goodwill     6,600,000   6,600,000
Services & Support [Member]          
Goodwill [Line Items]          
Goodwill     $ 400,000   $ 400,000
v3.21.2
Intangible Assets - Summary of Intangible Assets (Detail) - USD ($)
$ in Thousands
Sep. 30, 2021
Dec. 31, 2020
Finite Lived Intangible Assets [Line Items]    
Gross Carrying Amount $ 36,246 $ 39,293
Accumulated Amortization (15,955) (15,823)
Net Book Value 20,291 23,470
Customer Relationships [Member]    
Finite Lived Intangible Assets [Line Items]    
Gross Carrying Amount 20,876 21,123
Accumulated Amortization (9,483) (8,055)
Net Book Value 11,393 13,068
Developed Technology [Member]    
Finite Lived Intangible Assets [Line Items]    
Gross Carrying Amount 8,200 8,200
Accumulated Amortization (3,399) (2,546)
Net Book Value 4,801 5,654
Licensed Technology [Member]    
Finite Lived Intangible Assets [Line Items]    
Gross Carrying Amount 5,900 5,900
Accumulated Amortization (2,322) (1,830)
Net Book Value 3,578 4,070
Supplier Relationships [Member]    
Finite Lived Intangible Assets [Line Items]    
Gross Carrying Amount   2,800
Accumulated Amortization   (2,800)
Licensing Agreements [Member]    
Finite Lived Intangible Assets [Line Items]    
Gross Carrying Amount 560 560
Accumulated Amortization (207) (152)
Net Book Value 353 408
Patent [Member]    
Finite Lived Intangible Assets [Line Items]    
Gross Carrying Amount 500 500
Accumulated Amortization (346) (294)
Net Book Value 154 206
Trade Names [Member]    
Finite Lived Intangible Assets [Line Items]    
Gross Carrying Amount 210 210
Accumulated Amortization (198) (146)
Net Book Value $ 12 $ 64
v3.21.2
Intangible Assets - Additional Information (Detail) - USD ($)
 3 Months Ended 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
Intangible Assets Net Excluding Goodwill [Abstract]        
Impairment losses of intangible assets $ 0 $ 0 $ 0 $ 0
Amortization expense 1,000,000.0 1,000,000.0 3,100,000 3,400,000
Impairment losses of long-lived assets $ 0 $ 0 $ 0 $ 0
v3.21.2
Intangible Assets - Estimated Future Amortization Expense Related to Intangible Assets (Detail) - USD ($)
$ in Thousands
Sep. 30, 2021
Dec. 31, 2020
Finite Lived Intangible Assets Future Amortization Expense [Abstract]    
2021 $ 984  
2022 3,479  
2023 3,327  
2024 3,233  
2025 3,027  
Thereafter 6,241  
Net Book Value $ 20,291 $ 23,470
v3.21.2
Leases - Net Investment in Sales-Type Leases (Detail) - USD ($)
$ in Thousands
Sep. 30, 2021
Dec. 31, 2020
Sales Type Leases Net Investment In Leases [Abstract]    
Current minimum lease payments receivable $ 129 $ 702
Non-current minimum lease payments receivable 7 347
Total minimum lease payments receivable 136 1,049
Less: Current unearned revenue 98 218
Less: Non-current unearned revenue 1 50
Net investment in sales-type leases $ 37 $ 781
v3.21.2
Revolving Credit Agreement - Additional Information (Detail) - Cadence Bank, N.A [Member] - Secured Revolving Credit Facility [Member] - Revolving Credit and Security Agreement (The “Revolving Credit Agreement”) [Member] - USD ($)
Nov. 04, 2020
Sep. 30, 2021
Line Of Credit Facility [Line Items]    
Secured revolving credit facility amount $ 10,000,000.0  
Credit agreement maturity period Nov. 04, 2021  
Maximum loan to value ratio percentage 75.00%  
Maximum interest rate in no event time 1.50%  
Borrowings under revolving credit agreement   $ 0
Screen Rate [Member]    
Line Of Credit Facility [Line Items]    
Debt instrument interest over screen rate 1.50%  
v3.21.2
Alabama State Industrial Development Authority Financing and Economic Incentives - Additional Information (Detail) - USD ($)
$ in Thousands
 9 Months Ended
Jan. 02, 2020
Sep. 30, 2021
Sep. 30, 2020
Dec. 31, 2008
Debt Instrument [Line Items]        
Repayment of bond     $ 24,600  
Taxable Revenue Bonds [Member]        
Debt Instrument [Line Items]        
Proceeds from state industrial development authority issued taxable bonds loaned to ADTRAN       $ 50,000
Percentage of interest on bond   2.00%    
Maturity date of bond   Jan. 01, 2020    
Repayment of bond $ 24,600      
Taxable Municipal Bonds Issued In January 1995 [Member]        
Debt Instrument [Line Items]        
Proceeds from state industrial development authority issued taxable bonds loaned to ADTRAN   $ 20,000    
v3.21.2
Stockholders' Equity - Additional Information (Detail)
 9 Months Ended
Sep. 30, 2021
shares
Equity [Abstract]  
Stock repurchased, shares 0
Additional shares authorized for purchase 2,500,000
Maximum shares authorized for repurchase, prior and new announcements and total after new announcement 5,000,000.0
v3.21.2
Stockholders' Equity - Changes in Accumulated Other Comprehensive Loss, Net of Tax by Component (Detail) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
Accumulated Other Comprehensive Income (Loss) [Line Items]        
Beginning Balance $ 375,515 $ 364,194 $ 372,944 $ 380,426
Other comprehensive income (loss) before reclassifications (1,418) 2,963 (3,272) 3,162
Amounts reclassified from accumulated other comprehensive income (loss) 92 (295) 445 577
Net current period other comprehensive income (loss) (1,326) 2,668 (2,827) 3,739
Ending Balance 363,753 369,593 363,753 369,593
ASU 2018-02 [Member]        
Accumulated Other Comprehensive Income (Loss) [Line Items]        
Beginning Balance 385 385 385 385
Ending Balance 385 385 385 385
Accumulated Other Comprehensive Loss [Member]        
Accumulated Other Comprehensive Income (Loss) [Line Items]        
Beginning Balance (13,140) (15,346) (11,639) (16,417)
Ending Balance (14,466) (12,678) (14,466) (12,678)
Unrealized Gains (Losses) on Available-for-Sale Securities [Member]        
Accumulated Other Comprehensive Income (Loss) [Line Items]        
Beginning Balance (255) 206 32 (284)
Other comprehensive income (loss) before reclassifications (29) 494 (358) 444
Amounts reclassified from accumulated other comprehensive income (loss) (32) (539) 10 1
Net current period other comprehensive income (loss) (61) (45) (348) 445
Ending Balance (316) 161 (316) 161
Defined Benefit Plan Adjustments [Member]        
Accumulated Other Comprehensive Income (Loss) [Line Items]        
Beginning Balance (9,310) (8,894) (9,621) (9,226)
Amounts reclassified from accumulated other comprehensive income (loss) 124 244 435 576
Net current period other comprehensive income (loss) 124 244 435 576
Ending Balance (9,186) (8,650) (9,186) (8,650)
Foreign Currency Adjustments [Member]        
Accumulated Other Comprehensive Income (Loss) [Line Items]        
Beginning Balance (3,960) (7,043) (2,435) (7,292)
Other comprehensive income (loss) before reclassifications (1,389) 2,469 (2,914) 2,718
Net current period other comprehensive income (loss) (1,389) 2,469 (2,914) 2,718
Ending Balance $ (5,349) $ (4,574) $ (5,349) $ (4,574)
v3.21.2
Stockholders' Equity - Reclassifications Out of Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2021
Jun. 30, 2021
Mar. 31, 2021
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
Sep. 30, 2021
Sep. 30, 2020
Reclassification Adjustment Out of Accumulated Other Comprehensive Income (Loss) [Line Items]                
Income (Loss) Before Income Taxes $ (9,135)     $ 6,043     $ (978) $ (5,907)
Tax benefit (expense) (1,292)     (562)     (3,467) 2,171
Net Income (Loss) (10,427) $ 5,086 $ 896 5,481 $ 752 $ (9,969) (4,445) (3,736)
Reclassification Out of Accumulated Other Comprehensive Income (Loss) [Member]                
Reclassification Adjustment Out of Accumulated Other Comprehensive Income (Loss) [Line Items]                
Income (Loss) Before Income Taxes (138)     374     (643) (836)
Tax benefit (expense) 46     (79)     198 259
Net Income (Loss) (92)     295     (445) (577)
Reclassification Out of Accumulated Other Comprehensive Income (Loss) [Member] | Unrealized Gains (Losses) on Available-for-Sale Securities [Member]                
Reclassification Adjustment Out of Accumulated Other Comprehensive Income (Loss) [Line Items]                
Net investment gain (loss) 42     728     (13) (1)
Reclassification Out of Accumulated Other Comprehensive Income (Loss) [Member] | Other Income (Expense), Net [Member]                
Reclassification Adjustment Out of Accumulated Other Comprehensive Income (Loss) [Line Items]                
Defined benefit plan adjustments - actuarial gain $ (180)     $ (354)     $ (630) $ (835)
v3.21.2
Stockholders' Equity - Tax Effects Related to the Change in Each Component of Other Comprehensive Income (Loss) (Detail) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2021
Jun. 30, 2021
Mar. 31, 2021
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
Sep. 30, 2021
Sep. 30, 2020
Equity [Abstract]                
Unrealized gain (loss) on available-for-sale securities, Before-Tax Amount $ (38)     $ 668     $ (471) $ 600
Unrealized gain (loss) on available-for-sale securities, Tax (Expense) Benefit 9     (174)     113 (156)
Unrealized gain (loss) on available-for-sale securities, Net-of-Tax Amount (29)     494     (358) 444
Reclassification adjustment for amounts related to available-for-sale investments included in net income (loss), Before-Tax Amount (42)     (728)     13 1
Reclassification adjustment for amounts related to available-for-sale investments included in net income (loss), Tax (Expense) Benefit 10     189     (3)  
Reclassification adjustment for amounts related to available-for-sale investments included in net income (loss), Net-of-Tax Amount (32)     (539)     10 1
Reclassification adjustment for amounts related to defined benefit plan adjustments included in net income (loss), Before-Tax Amount 180     354     630 835
Reclassification adjustment for amounts related to defined benefit plan adjustments included in net income (loss), Tax (Expense) Benefit (56)     (110)     (195) (259)
Reclassification adjustment for amounts related to defined benefit plan adjustments included in net income (loss), Net-of-Tax Amount 124     244     435 576
Foreign currency translation adjustment, Before-Tax Amount (1,389)     2,469     (2,914) 2,718
Foreign currency translation adjustment, Net-of-Tax Amount (1,389)     2,469     (2,914) 2,718
Total Other Comprehensive Income (Loss), Before-Tax Amount (1,289)     2,763     (2,742) 4,154
Total Other Comprehensive Income (Loss), Tax (Expense) Benefit (37)     (95)     (85) (415)
Other Comprehensive Income (Loss), net of tax $ (1,326) $ 455 $ (1,956) $ 2,668 $ 2,463 $ (1,392) $ (2,827) $ 3,739
v3.21.2
Earnings (Loss) Per Share - Summary of Calculation of Basic and Diluted Earnings (Loss) Per Share (Detail) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2021
Jun. 30, 2021
Mar. 31, 2021
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
Sep. 30, 2021
Sep. 30, 2020
Numerator                
Net income (loss) $ (10,427) $ 5,086 $ 896 $ 5,481 $ 752 $ (9,969) $ (4,445) $ (3,736)
Denominator                
Weighted average number of shares – basic 48,609     47,957     48,470 47,957
Effect of dilutive securities                
PSUs, RSUs and restricted stock       467        
Weighted average number of shares – diluted 48,609     48,424     48,470 47,957
Earnings (loss) per share – basic $ (0.21)     $ 0.11     $ (0.09) $ (0.08)
Earnings (loss) per share – diluted $ (0.21)     $ 0.11     $ (0.09) $ (0.08)
v3.21.2
Earnings (Loss) Per Share - Additional Information (Detail) - shares
shares in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]        
Anti-dilutive effect excluded calculation of diluted earnings per share 200 3,400 400 4,300
Unvested Stock Options, PSUs, RSUs and Restricted Stock [Member]        
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]        
Anti-dilutive effect excluded calculation of diluted earnings per share   18 4 100
Unvested Stock Options, PSUs, RSUs and Restricted Stock [Member] | Maximum [Member]        
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]        
Anti-dilutive effect excluded calculation of diluted earnings per share 1      
v3.21.2
Segment Information - Additional Information (Detail)
 9 Months Ended
Sep. 30, 2021
Segment
Category
Segment Reporting [Abstract]  
Number of reportable segments | Segment 2
Number of categories | Category 3
v3.21.2
Segment Information - Revenue and Gross Profit of Reportable Segments (Detail) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
Segment Reporting Information [Line Items]        
Revenue $ 138,081 $ 133,143 $ 408,846 $ 376,381
Gross Profit 47,673 58,962 163,942 164,034
Network Solutions [Member]        
Segment Reporting Information [Line Items]        
Revenue 120,767 115,229 360,025 323,924
Gross Profit 39,738 52,434 143,981 145,432
Services & Support [Member]        
Segment Reporting Information [Line Items]        
Revenue 17,314 17,914 48,821 52,457
Gross Profit $ 7,935 $ 6,528 $ 19,961 $ 18,602
v3.21.2
Segment Information - Revenue Information by Category (Detail) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
Disaggregation Of Revenue [Line Items]        
Revenue $ 138,081 $ 133,143 $ 408,846 $ 376,381
Access & Aggregation [Member]        
Disaggregation Of Revenue [Line Items]        
Revenue 89,173 85,423 249,211 234,165
Subscriber Solutions & Experience [Member]        
Disaggregation Of Revenue [Line Items]        
Revenue 44,912 43,125 147,291 125,697
Traditional & Other Products [Member]        
Disaggregation Of Revenue [Line Items]        
Revenue $ 3,996 $ 4,595 $ 12,344 $ 16,519
v3.21.2
Segment Information - Revenue Information by Geographic Area (Detail) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
Revenue from External Customer [Line Items]        
Revenue $ 138,081 $ 133,143 $ 408,846 $ 376,381
United States [Member]        
Revenue from External Customer [Line Items]        
Revenue 91,868 92,838 273,009 256,287
International [Member]        
Revenue from External Customer [Line Items]        
Revenue $ 46,213 $ 40,305 $ 135,837 $ 120,094
v3.21.2
Liability for Warranty Returns - Additional Information (Detail) - USD ($)
$ in Thousands
 9 Months Ended
Sep. 30, 2021
Jun. 30, 2021
Dec. 31, 2020
Sep. 30, 2020
Jun. 30, 2020
Dec. 31, 2019
Product Warranties Disclosures [Abstract]            
Period of assurance-based warranty for product defects 90 days to five years          
Liability for warranty obligations $ 5,647 $ 5,997 $ 7,146 $ 7,192 $ 7,294 $ 8,394
v3.21.2
Liability for Warranty Returns - Summary of Reversal of Prior Provisions Related to Warranty Expirations (Detail) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
Product Warranties Disclosures [Abstract]        
Balance at beginning of period $ 5,997 $ 7,294 $ 7,146 $ 8,394
Plus: Amounts charged to cost and expenses 472 632 253 970
Less: Deductions (822) (734) (1,752) (2,172)
Balance at end of period $ 5,647 $ 7,192 $ 5,647 $ 7,192
v3.21.2
Commitments and Contingencies - Additional Information (Detail)
 9 Months Ended
Aug. 30, 2021
shares
Mar. 31, 2020
Officer
Sep. 30, 2021
USD ($)
Mar. 31, 2021
USD ($)
Dec. 31, 2020
USD ($)
Contingencies And Commitments [Line Items]          
Commitments related to performance bonds     $ 20,900,000   $ 15,200,000
Commitments related to performance bonds expiration month and year     2024-08    
Letter of credit secured by pledge of a portion of fixed income securities     $ 18,400,000    
Commitments towards private equity funds     4,900,000    
Investment Commitments [Member]          
Contingencies And Commitments [Line Items]          
Aggregate investment committed in private equity funds     5,000,000.0    
Long-term Investments [Member]          
Contingencies And Commitments [Line Items]          
Letter of credit secured by pledge of a portion of fixed income securities     18,300,000    
Minimum [Member]          
Contingencies And Commitments [Line Items]          
Collateral value required to be maintained       $ 15,000,000.0  
Maximum [Member] | Restricted Cash [Member]          
Contingencies And Commitments [Line Items]          
Letter of credit secured by pledge of a portion of fixed income securities     $ 100,000    
Acorn HoldCo, Inc., [Member]          
Contingencies And Commitments [Line Items]          
Business combination date of agreement Aug. 30, 2021        
Acorn HoldCo, Inc., [Member] | ADTRAN INC [Member]          
Contingencies And Commitments [Line Items]          
Percentage of ownership interest acquired 54.00%        
Acorn HoldCo, Inc., [Member] | ADTRAN INC [Member] | Common Stock [Member]          
Contingencies And Commitments [Line Items]          
Number of shares issuable for each share of acquired entity | shares 1        
Acorn HoldCo, Inc., [Member] | ADVA Optical Networking SE, [Member]          
Contingencies And Commitments [Line Items]          
Percentage of ownership interest acquired 46.00%        
Acorn HoldCo, Inc., [Member] | ADVA Optical Networking SE, [Member] | Common Stock [Member]          
Contingencies And Commitments [Line Items]          
Number of shares issuable for each share of acquired entity | shares 0.8244        
Acorn HoldCo, Inc., [Member] | EGORA Holding GmbH and Egora Investments GmbH [Member] | Irrevocable Undertaking [Member]          
Contingencies And Commitments [Line Items]          
Number of shares issuable | shares 7,000,000        
Percentage of ownership interest acquired 13.70%        
Current Executive Officers [Member]          
Contingencies And Commitments [Line Items]          
Number of officers | Officer   2      
Former Executive Officers [Member]          
Contingencies And Commitments [Line Items]          
Number of officers | Officer   1      
v3.21.2
Restructuring - Additional Information (Detail)
$ in Millions
 9 Months Ended
Sep. 30, 2021
USD ($)
Restructuring And Related Activities [Abstract]  
Cumulative amount of restructuring expenses incurred for restructuring plan $ 12.5
v3.21.2
Restructuring - Schedule of Reconciliation of Restructuring Liability (Detail) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended 12 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
Dec. 31, 2020
Restructuring And Related Activities [Abstract]          
Balance at beginning of period $ 1,521   $ 4,186 $ 1,568 $ 1,568
Plus: Amounts charged to cost and expense   $ 1,903 309 $ 3,648 6,229
Less: Amounts paid (42)   (3,016)   (3,611)
Balance at end of period $ 1,479   $ 1,479   $ 4,186
v3.21.2
Restructuring - Schedule of Components of Restructuring Expenses Including in Condensed Consolidated Statements of Income (Loss) (Detail) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended 12 Months Ended
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
Dec. 31, 2020
Restructuring Cost And Reserve [Line Items]        
Total restructuring expenses $ 1,903 $ 309 $ 3,648 $ 6,229
Cost of Revenue [Member]        
Restructuring Cost And Reserve [Line Items]        
Total restructuring expenses 232 15 288  
Selling, General and Administrative Expenses [Member]        
Restructuring Cost And Reserve [Line Items]        
Total restructuring expenses 1,050 145 1,622  
Research and Development Expenses [Member]        
Restructuring Cost And Reserve [Line Items]        
Total restructuring expenses 621 149 1,738  
Network Solutions [Member] | Cost of Revenue [Member]        
Restructuring Cost And Reserve [Line Items]        
Total restructuring expenses 187 12 220  
Services & Support [Member] | Cost of Revenue [Member]        
Restructuring Cost And Reserve [Line Items]        
Total restructuring expenses $ 45 $ 3 $ 68  
v3.21.2
Restructuring - Schedule of Components of Restructuring Expense by Geographic Area (Detail) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended 12 Months Ended
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
Dec. 31, 2020
Restructuring Cost And Reserve [Line Items]        
Total restructuring expenses $ 1,903 $ 309 $ 3,648 $ 6,229
United States [Member]        
Restructuring Cost And Reserve [Line Items]        
Total restructuring expenses 448 212 2,191  
International [Member]        
Restructuring Cost And Reserve [Line Items]        
Total restructuring expenses $ 1,455 $ 97 $ 1,457  
v3.21.2
Subsequent Events - Additional Information (Detail) - USD ($)
$ / shares in Units, $ in Millions
 3 Months Ended
Nov. 04, 2021
Nov. 01, 2021
Sep. 30, 2021
Jun. 30, 2021
Mar. 31, 2021
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
Nov. 30, 2021
Subsequent Event [Line Items]                  
Common stock dividends per share declared     $ 0.09 $ 0.09 $ 0.09 $ 0.09 $ 0.09 $ 0.09  
Subsequent Event [Member]                  
Subsequent Event [Line Items]                  
Dividend declaration date   Nov. 01, 2021              
Common stock dividends per share declared   $ 0.09              
Dividend record date   Nov. 16, 2021              
Dividend payment date   Nov. 30, 2021              
Subsequent Event [Member] | Revolving Credit Agreement [Member]                  
Subsequent Event [Line Items]                  
Amended credit agreement maturity period Nov. 03, 2022                
Scenario Forecast [Member]                  
Subsequent Event [Line Items]                  
Quarterly dividend payable, aggregate amount                 $ 4.4