Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 28, 2013 | Oct. 18, 2013 | |
Document Document And Entity Information [Line Items] | ' | ' |
Entity Registrant Name | 'IRIDEX CORP | ' |
Entity Central Index Key | '0001006045 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 28-Sep-13 | ' |
Amendment Flag | 'false | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Current Fiscal Year End Date | '--12-28 | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Common Stock, Shares Outstanding | ' | 9,804,582 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (Unaudited) (USD $) | Sep. 28, 2013 | Dec. 29, 2012 | |
In Thousands, unless otherwise specified | |||
Current assets: | ' | ' | |
Cash and cash equivalents | $14,089 | $11,901 | [1] |
Accounts receivable, net of allowance for doubtful accounts of $206 at September 28, 2013 and $146 at December 29, 2012 | 5,743 | 5,480 | [1] |
Inventories | 9,998 | 8,035 | [1] |
Prepaid expenses and other current assets | 534 | 1,129 | [1] |
Current assets of discontinued operations | 0 | 510 | [1] |
Total current assets | 30,364 | 27,055 | [1] |
Property and equipment, net | 526 | 483 | [1] |
Intangible assets, net | 382 | 554 | [1] |
Goodwill | 533 | 533 | [1] |
Other long-term assets | 233 | 287 | [1] |
Total assets | 32,038 | 28,912 | [1] |
Current liabilities: | ' | ' | |
Accounts payable | 2,077 | 2,105 | [1] |
Accrued compensation | 1,538 | 1,563 | [1] |
Accrued expenses | 1,370 | 1,242 | [1] |
Accrued warranty | 472 | 453 | [1] |
Deferred revenue | 1,062 | 1,004 | [1] |
Total current liabilities | 6,519 | 6,367 | [1] |
Long-term liabilities: | ' | ' | |
Other long-term liabilities | 441 | 640 | [1] |
Total liabilities | 6,960 | 7,007 | [1] |
Stockholders’ equity: | ' | ' | |
Convertible preferred stock, $0.01 par value: Authorized: 2,000,000 shares; Issued and outstanding: 0 and 500,000 shares at September 28, 2013 and at December 29, 2012, respectively | 0 | 5 | [1] |
Common stock, $0.01 par value: Authorized: 30,000,000 shares; Issued and outstanding 9,818,012 and 8,452,971 shares at September 28, 2013 and at December 29, 2012, respectively | 103 | 94 | [1] |
Additional paid-in capital | 40,308 | 38,958 | [1] |
Accumulated deficit | -15,333 | -17,152 | [1] |
Total stockholders’ equity | 25,078 | 21,905 | [1] |
Total liabilities and stockholders’ equity | $32,038 | $28,912 | [1] |
[1] | Derived from the audited consolidated financial statements included in the annual report filed on Form 10-K with the SEC for the year ended December 29, 2012. |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (Unaudited) (USD $) | Sep. 28, 2013 | Dec. 29, 2012 |
In Thousands, except Share data, unless otherwise specified | ||
Statement Condensed Consolidated Balance Sheets Parenthetical Unaudited [Line Items] | ' | ' |
Accounts receivable, allowance for doubtful accounts | $206 | $146 |
Convertible preferred stock, par value | $0.01 | $0.01 |
Convertible preferred stock, shares authorized | 2,000,000 | 2,000,000 |
Convertible preferred stock, shares issued | 0 | 500,000 |
Convertible preferred stock, shares outstanding | 0 | 500,000 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 30,000,000 | 30,000,000 |
Common stock, shares issued | 9,818,012 | 8,452,971 |
Common stock, shares outstanding | 9,818,012 | 8,452,971 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 |
Statement Condensed Consolidated Statements Of Operations Unaudited [Line Items] | ' | ' | ' | ' |
Total revenues | $9,526 | $7,881 | $27,675 | $24,631 |
Cost of revenues | 4,802 | 3,970 | 14,238 | 12,623 |
Gross profit | 4,724 | 3,911 | 13,437 | 12,008 |
Operating expenses: | ' | ' | ' | ' |
Research and development | 923 | 1,006 | 2,803 | 3,294 |
Sales and marketing | 1,869 | 1,875 | 5,340 | 5,861 |
General and administrative | 1,267 | 1,609 | 3,690 | 4,018 |
Proceeds from demutualization of insurance carrier | 0 | 0 | -473 | 0 |
Total operating expenses | 4,059 | 4,490 | 11,360 | 13,173 |
Income (loss) from continuing operations | 665 | -579 | 2,077 | -1,165 |
Legal settlement | 0 | 0 | 0 | 800 |
Interest and other expense, net | -85 | -117 | -200 | -192 |
Income (loss) from continuing operations before provision for (benefit from) income taxes | 580 | -696 | 1,877 | -557 |
Provision for (benefit from) income taxes | 50 | -141 | 58 | -134 |
Income (loss) from continuing operations | 530 | -555 | 1,819 | -423 |
Loss from discontinued operations, net of tax | 0 | -190 | 0 | -413 |
Gain on sale of discontinued operations, net of tax | 0 | 0 | 0 | 2,032 |
(Loss) income from discontinued operations, net of tax | 0 | -190 | 0 | 1,619 |
Net income (loss) | $530 | ($745) | $1,819 | $1,196 |
Basic | ' | ' | ' | ' |
Continuing operations | $0.05 | ($0.06) | $0.20 | ($0.05) |
Discontinued operations | $0 | ($0.02) | $0 | $0.18 |
Net income (loss) | $0.05 | ($0.08) | $0.20 | $0.13 |
Diluted | ' | ' | ' | ' |
Continuing operations | $0.05 | ($0.06) | $0.18 | ($0.05) |
Discontinued operations | $0 | ($0.02) | $0 | $0.18 |
Net income (loss) | $0.05 | ($0.08) | $0.18 | $0.13 |
Weighted average shares used in computing net income (loss) per common share | ' | ' | ' | ' |
Basic | 9,796 | 9,005 | 9,044 | 8,974 |
Diluted | 10,177 | 9,005 | 9,995 | 8,974 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 |
Statement Condensed Consolidated Statements Of Comprehensive Income Unaudited [Line Items] | ' | ' | ' | ' |
Net income (loss) | $530 | ($745) | $1,819 | $1,196 |
Recognition of accumulated foreign currency translation loss related to sale of foreign operations | 0 | 0 | 0 | 35 |
Comprehensive income (loss) | $530 | ($745) | $1,819 | $1,231 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | |
Operating activities: | ' | ' | |
Net income | $1,819 | $1,196 | |
Less income from discontinued operations | 0 | 1,619 | |
Income (loss) from continuing operations | 1,819 | -423 | |
Adjustments to reconcile net income (loss) from continuing operations to net cash provided by (used in) operating activities: | ' | ' | |
Depreciation and amortization | 364 | 310 | |
Change in fair value of earn-out liability | 181 | 195 | |
Stock compensation expense | 511 | 277 | |
Provision for doubtful accounts | 60 | -24 | |
Changes in operating assets and liabilities, net of assets and liabilities acquired: | ' | ' | |
Accounts receivable | -323 | 79 | |
Inventories | -1,963 | -883 | |
Prepaid expenses and other current assets | 595 | -653 | |
Other long-term assets | 54 | -20 | |
Accounts payable | -28 | -51 | |
Accrued compensation | -25 | 807 | |
Accrued expenses | 35 | -999 | |
Accrued warranty | 19 | -28 | |
Deferred revenue | 58 | -153 | |
Other long-term liabilities | 0 | 21 | |
Net cash provided by (used in) operating activities | 1,357 | -1,545 | |
Investing activities: | ' | ' | |
Acquisition of property and equipment | -235 | -310 | |
Payment on earn-out liability | -287 | -241 | |
Net cash used in investing activities | -522 | -551 | |
Financing activities: | ' | ' | |
Proceeds from stock option exercises | 1,077 | 405 | |
Repurchase of common stock | -194 | -578 | |
Payment of legal costs in connection with tender offer | -40 | 0 | |
Net cash provided by (used in) financing activities | 843 | -173 | |
Net cash provided by operating activities from discontinued operations | 0 | 547 | |
Net cash provided by investing activities from discontinued operations | 510 | 4,632 | |
Effect of foreign exchange rate changes from discontinued operations | 0 | 35 | |
Net cash provided by discontinued operations | 510 | 5,214 | |
Net increase in cash and cash equivalents | 2,188 | 2,945 | |
Cash and cash equivalents, beginning of period | 11,901 | [1] | 10,789 |
Cash and cash equivalents, end of period | 14,089 | 13,734 | |
Cash paid during the period for: | ' | ' | |
Income taxes | 12 | 29 | |
Non-cash financing transaction: | ' | ' | |
Preferred stock conversion into common stock | $5 | $0 | |
[1] | Derived from the audited consolidated financial statements included in the annual report filed on Form 10-K with the SEC for the year ended December 29, 2012. |
Basis_of_Presentation
Basis of Presentation | 9 Months Ended |
Sep. 28, 2013 | |
Basis of Presentation | ' |
1. Basis of Presentation | |
The accompanying unaudited condensed consolidated financial statements of IRIDEX Corporation (“IRIDEX”, the “Company”, “we”, “our”, or “us”) have been prepared in accordance with generally accepted accounting principles in the United States (“US GAAP”) for interim financial information and pursuant to the instructions to Form 10-Q and Article 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by US GAAP for complete financial statements. In the opinion of management, all adjustments, consisting of normal recurring adjustments, considered necessary for a fair presentation of the financial statements have been included. | |
The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto, together with management’s discussion and analysis of the Company’s financial condition and results of operations, contained in our Annual Report on Form 10-K for the fiscal year ended December 29, 2012, which was filed with the Securities and Exchange Commission (“SEC”) on March 28, 2013. The results of operations for the three and nine months ended September 28, 2013 are not necessarily indicative of the results for the year ending December 28, 2013 or any future interim period. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 9 Months Ended | ||||||||||||||||||||
Sep. 28, 2013 | |||||||||||||||||||||
Summary of Significant Accounting Policies | ' | ||||||||||||||||||||
2. Summary of Significant Accounting Policies | |||||||||||||||||||||
The Company’s significant accounting policies are disclosed in our Annual Report on Form 10-K for the year ended December 29, 2012, which was filed with the SEC on March 28, 2013. | |||||||||||||||||||||
Financial Statement Presentation. | |||||||||||||||||||||
The consolidated financial statements include the accounts of the Company and our wholly owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. | |||||||||||||||||||||
Use of Estimates. | |||||||||||||||||||||
The preparation of consolidated financial statements in conformity with US GAAP requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues, and expenses and the related disclosure of contingent assets and liabilities. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. In addition, any change in these estimates or their related assumptions could have an adverse effect on our operating results. | |||||||||||||||||||||
Discontinued Operations. | |||||||||||||||||||||
Discontinued operations are presented and accounted for in accordance with Accounting Standards Codification (“ASC”) 360, “Impairment or Disposal of Long-Lived Assets”, (“ASC 360”). When a qualifying component of the Company is disposed of or has been classified as held for sale, the operating results of that component are removed from continuing operations for all periods presented and displayed as discontinued operations if: (a) elimination of the component’s operations and cash flows from the Company’s ongoing operations has occurred (or will occur) and (b) significant continuing involvement by the Company in the component’s operations does not exist after the disposal transaction. | |||||||||||||||||||||
On December 30, 2011, we entered into an agreement to sell our aesthetics business to Cutera, Inc. The sale of the aesthetics business was completed on February 2, 2012. | |||||||||||||||||||||
The operating results of our aesthetics business were therefore classified as discontinued operations, and the associated assets and liabilities were classified as discontinued operations for all periods presented under the requirements of ASC 360. | |||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||
(in thousands) | September 28, | September 29, | September 28, | September 29, | |||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||
Total revenues | $ | 0 | $ | 399 | $ | 0 | $ | 1,627 | |||||||||||||
Loss from discontinued operations | $ | 0 | (56 | ) | $ | 0 | (279 | ) | |||||||||||||
Gain on sales of aesthetics business, net | $ | 0 | 0 | $ | 0 | 1,149 | |||||||||||||||
(Loss) income before provision for (benefit from) income taxes | $ | 0 | (56 | ) | $ | 0 | 870 | ||||||||||||||
Income tax (expense) benefit | $ | 0 | (134 | ) | $ | 0 | 749 | ||||||||||||||
(Loss) income from discontinued operations, net of tax | $ | 0 | (190 | ) | $ | 0 | 1,619 | ||||||||||||||
Current assets of discontinued operations as of December 29, 2012 comprised of restricted cash in the amount of $510 thousand. In accordance with the terms of the sale of the aesthetics segment to Cutera, Inc., 10% of the total purchase price was deposited and held in an escrow account for a period of twelve months from the date of closing and was available to resolve certain claims by Cutera, Inc., if any, which the Company had indemnified. There had been no claims made by Cutera, Inc. and in May 2013, the cash held in the escrow account was released to the Company. | |||||||||||||||||||||
Revenue Recognition. | |||||||||||||||||||||
Our revenues arise from the sale of laser consoles, delivery devices, consumables and service and support activities. Revenue from product sales is recognized upon receipt of a purchase order and product shipment provided that no significant obligations remain and collection of the receivables is reasonably assured. Shipments are generally made with Free-On-Board (“FOB”) shipping point terms, whereby title passes upon shipment from our dock. Any shipments with FOB receiving point terms are recorded as revenue when the shipment arrives at the receiving point. Cost is recognized as product sales revenue is recognized. The Company’s sales may include post-sales obligations for training or other deliverables. For revenue arrangements such as these, we recognize revenue in accordance with ASC 605, Revenue Recognition, Multiple-Element Arrangements. The Company allocates revenue among deliverables in multiple-element arrangements using the relative selling price method. Revenue allocated to each element is recognized when the basic revenue recognition criteria is met for each element. The Company is required to apply a hierarchy to determine the selling price to be used for allocating revenue to deliverables: (i) vendor-specific objective evidence of selling price (“VSOE”), (ii) third-party evidence of selling price (“TPE”) and (iii) best estimate of the selling price (“ESP”). In general, the Company is unable to establish VSOE or TPE for all of the elements in the arrangement; therefore, revenue is allocated to these elements based on the Company’s ESP, which the Company determines after considering multiple factors such as management approved pricing guidelines, geographic differences, market conditions, competitor pricing strategies, internal costs and gross margin objectives. These factors may vary over time depending upon the unique facts and circumstances related to each deliverable. As a result, the Company’s ESP for products and services could change. Revenues for post-sales obligations are recognized as the obligations are fulfilled. | |||||||||||||||||||||
In international regions, we utilize distributors to market and sell our products. We recognize revenue upon shipment for sales to these independent, third party distributors as we have no continuing obligations subsequent to shipment. Generally our distributors are responsible for all marketing, sales, installation, training and warranty labor coverage for our products. Our standard terms and conditions do not provide price protection or stock retention rights to any of our distributors. | |||||||||||||||||||||
Royalty revenues are typically based on licensees’ net sales of products that utilize our technology and are recognized as earned in accordance with the contract terms when royalties from licensees can be reliably measured and collectibility is reasonably assured, such as upon the earlier of the receipt of a royalty statement from the licensee or upon payment by the licensee. | |||||||||||||||||||||
Taxes Collected from Customers and Remitted to Governmental Authorities. | |||||||||||||||||||||
Taxes collected from customers and remitted to governmental authorities are recognized on a net basis in the accompanying consolidated statements of operations. | |||||||||||||||||||||
Shipping and Handling Costs. | |||||||||||||||||||||
Our shipping and handling costs billed to customers are included in revenues and the associated expense is recorded in cost of revenues for all periods presented. | |||||||||||||||||||||
Deferred Revenue. | |||||||||||||||||||||
Revenue related to extended service contracts is deferred and recognized on a straight line basis over the period of the applicable service contract. Costs associated with these service arrangements are recognized as incurred. | |||||||||||||||||||||
A reconciliation of the changes in the Company’s deferred revenue balance for the nine months ended September 28, 2013 and September 29, 2012 is as follows: | |||||||||||||||||||||
Nine Months Ended | |||||||||||||||||||||
(in thousands) | September 28, | September 29, | |||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
Balance, beginning of period | $ | 1,004 | $ | 1,014 | |||||||||||||||||
Additions to deferral | 985 | 680 | |||||||||||||||||||
Revenue recognized | (927 | ) | (833 | ) | |||||||||||||||||
Balance, end of period | $ | 1,062 | $ | 861 | |||||||||||||||||
Warranty. | |||||||||||||||||||||
The Company generally provides a one to two years warranty on its products, which is accrued for upon shipment of products. Actual warranty costs incurred have not materially differed from those accrued. The Company’s warranty policy is applicable to products which are considered defective in their performance or fail to meet the product specifications. Warranty costs are reflected in the statement of operations as cost of revenues. | |||||||||||||||||||||
A reconciliation of the changes in the Company’s warranty liability for the nine months ended September 28, 2013 and September 29, 2012 is as follows: | |||||||||||||||||||||
Nine Months Ended | |||||||||||||||||||||
(in thousands) | September 28, | September 29, | |||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
Balance, beginning of period | $ | 453 | $ | 556 | |||||||||||||||||
Accruals for product warranties | 162 | 123 | |||||||||||||||||||
Cost of warranty claims and adjustments | (143 | ) | (151 | ) | |||||||||||||||||
Balance, end of period | $ | 472 | $ | 528 | |||||||||||||||||
Recently Issued and Adopted Accounting Standards. | |||||||||||||||||||||
In February 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2013-02, Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income (“AOCI”), which aims to improve the reporting of reclassifications out of AOCI. This update requires an entity to report the effect of significant reclassifications out of AOCI on the respective line items in net income if the amount being reclassified is required under US GAAP to be reclassified in its entirety to net income. For other amounts that are not required under US GAAP to be reclassified in their entirety to net income in the same reporting period, an entity is required to cross-reference other disclosures required under US GAAP that provide additional detail about those amounts. The amendments do not change the current requirements for reporting net income or other comprehensive income in financial statements. For public entities, the amendments are effective prospectively for reporting periods beginning after December 15, 2012. The Company adopted this standard in the first quarter of fiscal year 2013. The adoption of this standard did not have a material effect on our consolidated financial position, results of operations, or cash flows. | |||||||||||||||||||||
In July 2013, the FASB issued Accounting Standards Update (“ASU”) No. 2013-11, “Presentation of an Unrecognized Tax Benefit when a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists.” This standard requires an entity to present unrecognized tax benefits as a reduction to deferred tax assets when a net operating loss carryforward, similar tax loss or a tax credit carryforward exists, with limited exceptions. This standard is effective for fiscal years beginning on or after December 15, 2013, and for interim periods within those fiscal years. Since ASU 2013-11 only impacts financial statement disclosure requirements for unrealized tax benefits, the Company does not expect its adoption to have an impact on the Company’s financial position or results of operations. |
Inventories
Inventories | 9 Months Ended | |||||||||
Sep. 28, 2013 | ||||||||||
Inventories | ' | |||||||||
3. Inventories | ||||||||||
The components of the Company’s inventories as of September 28, 2013 and December 29, 2012 are as follows: | ||||||||||
(in thousands) | September 28, | December 29, | ||||||||
2013 | 2012 | |||||||||
Raw materials and work in process | $ | 6,318 | $ | 5,357 | ||||||
Finished goods | 3,680 | 2,678 | ||||||||
Total inventories | $ | 9,998 | $ | 8,035 | ||||||
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets | 9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Sep. 28, 2013 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets | ' | ||||||||||||||||||||||||||||||||||||||||||||||||||||
4. Goodwill and Intangible Assets | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
The carrying amount of goodwill and the changes in those balances are as follows: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, December 29, 2012 | $ | 533 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Additions as a result of acquisitions | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, September 28, 2013 | $ | 533 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible Assets. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
The following table summarizes the components of gross and net intangible asset balances: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
September 28, 2013 | December 29, 2012 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | Gross | Accumulated | Net | Gross | Accumulated | Net | Amortization | ||||||||||||||||||||||||||||||||||||||||||||||
Carrying | Amortization | Carrying | Carrying | Amortization | Carrying | Life | |||||||||||||||||||||||||||||||||||||||||||||||
Amount | Amount | Amount | Amount | ||||||||||||||||||||||||||||||||||||||||||||||||||
Patents | $ | 720 | $ | 522 | $ | 198 | $ | 720 | $ | 362 | $ | 358 | Varies | ||||||||||||||||||||||||||||||||||||||||
Customer relations | 240 | $ | 56 | 184 | 240 | 44 | 196 | 11.5 years | |||||||||||||||||||||||||||||||||||||||||||||
$ | 960 | $ | 578 | $ | 382 | $ | 960 | $ | 406 | $ | 554 | ||||||||||||||||||||||||||||||||||||||||||
Amortization expense totaled $172 thousand and $143 thousand for the nine months ended September 28, 2013 and September 29, 2012, respectively. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
The amortization of customer relations was charged to sales and marketing expense and the amortization of patents was charged to cost of revenues. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Future estimated amortization expense (in thousands): | |||||||||||||||||||||||||||||||||||||||||||||||||||||
2013 (three months) | $ | 82 | |||||||||||||||||||||||||||||||||||||||||||||||||||
2014 | 30 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
2015 | 52 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
2016 | 86 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
2017 | 16 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Thereafter | 116 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 382 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Fair_Value_Measurements
Fair Value Measurements | 9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sep. 28, 2013 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | ' | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
5. Fair Value Measurements | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value hierarchy distinguishes between (1) market participant assumptions developed based on market data obtained from independent sources (observable inputs) and (2) an entity’s own assumptions about market participant assumptions developed based on the best information available in the circumstances (unobservable inputs). The fair value hierarchy consists of three broad levels, which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described below: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Level 2: Directly or indirectly observable inputs as of the reporting date through correlation with market data, including quoted prices for similar assets and liabilities in active markets and quoted prices in markets that are not active. Level 2 also includes assets and liabilities that are valued using models or other pricing methodologies that do not require significant judgment since the input assumptions used in the models, such as interest rates and volatility factors, are corroborated by readily observable data from actively quoted markets for substantially the full term of the financial instrument. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Level 3: Unobservable inputs that are supported by little or no market activity and reflect the use of significant management judgment. These values are generally determined using pricing models for which the assumptions utilize management’s estimates of market participant assumptions. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible, as well as considers counterparty credit risk in its assessment of fair value. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The carrying amounts of the Company’s financial assets and liabilities, including cash and cash equivalents, accounts receivable, accounts payable, and accrued expenses at September 28, 2013 and December 29, 2012, approximate fair value because of the short maturity of these instruments. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
As of September 28, 2013 and December 29, 2012, financial assets and liabilities measured and recognized at fair value on a recurring basis and classified under the appropriate level of the fair value hierarchy as described above was as follows: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
28-Sep-13 | 29-Dec-12 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Money market funds | $ | 12,741 | $ | 12,741 | $ | 10,839 | 0 | 0 | $ | 10,839 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earn-out liability | $ | 546 | $ | 546 | $ | 0 | 0 | $ | 652 | $ | 652 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
The Company’s Level 1 financial assets are money market funds whose fair values are based on quoted market prices. The Company does not have any Level 2 financial assets or liabilities. The fair value of the earn-out liability arising from the acquisitions of RetinaLabs, Inc. and Ocunetics, Inc. is classified within Level 3 of the fair value hierarchy since it is based on significant unobservable inputs. The significant unobservable inputs include projected royalties and discount rates to present value the payments. A significant increase (decrease) in the projected royalty payments in isolation could result in a significantly higher (lower) fair value measurement and a significant increase (decrease) in the discount rate in isolation could result in a significantly lower (higher) fair value measurement. The fair value of the earn-out liability is calculated on a quarterly basis by the Company based on a collaborative effort of the Company’s operations, finance and accounting groups based on additional information as it becomes available. Any change in the fair value adjustment is recorded in the statement of operations of that period. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The following table presents quantitative information about the inputs and valuation methodologies used for our fair value measurements classified in Level 3 of the fair value hierarchy as of September 28, 2013. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
As of September 28, 2013 | Fair Value | Valuation | Significant | Weighted | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | Technique | Unobservable | Average | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Input | (range) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earn-out liability | $ | 546 | Discounted cash flow | Projected royalties | $1,408 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | ($414 - $1,644) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discount rate | 21.67% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(20.40% - 27.00%) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
A reconciliation of the changes in the Company’s earn-out liability (Level 3 liability) for the nine months ended September 28, 2013 and September 29, 2012 is as follows: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nine Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | September 28 | September 29, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2013, | 2012 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at the beginning of the period | $ | 652 | $ | 765 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payments against earn-out | (287 | ) | (241 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Change in fair value of earn-out liability | 181 | 195 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at the end of the period | $ | 546 | $ | 719 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The earn-out liability is included in accrued expenses and other long-term liabilities in the condensed consolidated balance sheets. |
Stock_Based_Compensation
Stock Based Compensation | 9 Months Ended | ||||||||||||||||||||||||||||||||
Sep. 28, 2013 | |||||||||||||||||||||||||||||||||
Stock Based Compensation | ' | ||||||||||||||||||||||||||||||||
6. Stock Based Compensation | |||||||||||||||||||||||||||||||||
2008 Equity Incentive Plan | |||||||||||||||||||||||||||||||||
For the nine months ended September 28, 2013, the only active share-based compensation plan was the 2008 Equity Incentive Plan (the “Incentive Plan”). The terms of awards granted during the nine months ended September 28, 2013 were consistent with those described in the consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 29, 2012. | |||||||||||||||||||||||||||||||||
Summary of Stock Options | |||||||||||||||||||||||||||||||||
The following table summarizes information regarding activity in our stock option plan during the nine months ended September 28, 2013: | |||||||||||||||||||||||||||||||||
Number of Shares | Weighted | Aggregate Intrinsic Value (thousands) | |||||||||||||||||||||||||||||||
Average | |||||||||||||||||||||||||||||||||
Exercise Price | |||||||||||||||||||||||||||||||||
Per Share | |||||||||||||||||||||||||||||||||
Outstanding at December 29, 2012 | 1,570,543 | $ | 3.64 | ||||||||||||||||||||||||||||||
Granted | 145,800 | $ | 5.59 | ||||||||||||||||||||||||||||||
Exercised | (373,663 | ) | $ | 2.88 | |||||||||||||||||||||||||||||
Canceled or forfeited | (117,879 | ) | $ | 5.54 | |||||||||||||||||||||||||||||
Outstanding at September 28, 2013 | 1,224,801 | $ | 3.92 | $ | 2,706 | ||||||||||||||||||||||||||||
The weighted-average grant date fair value of the options granted under the Company’s stock plans as calculated using the Black-Scholes option-pricing model was $3.19 and $2.37 per share for the three months ended September 28, 2013 and September 29, 2012, respectively. The weighted-average grant date fair value of the options granted under the Company’s stock plans as calculated using the Black-Scholes option-pricing model was $3.12 and $2.70 per share for the nine months ended September 28, 2013 and September 29, 2012, respectively. | |||||||||||||||||||||||||||||||||
The Company uses the Black-Scholes option-pricing model to estimate fair value of stock-based awards (options) with the following weighted average assumptions: | |||||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||
September 28, | September 29, | September 28, | September 29, | ||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||||||
Average risk free interest rate | 1.26 | % | 0.59 | % | 1.11 | % | 0.68 | % | |||||||||||||||||||||||||
Expected life (in years) | 4.50 years | 4.55 years | 4.50 years | 4.55 years | |||||||||||||||||||||||||||||
Dividend yield | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | |||||||||||||||||||||||||
Average volatility | 66 | % | 90 | % | 72 | % | 91 | % | |||||||||||||||||||||||||
Option-pricing models require the input of various subjective assumptions, including the option’s expected life and the price volatility of the underlying stock. The expected stock price volatility is based on analysis of the Company’s stock price history over a period commensurate with the expected term of the options, trading volume of the Company’s stock, look-back volatilities and Company specific events that affected volatility in a prior period. The expected term of employee stock options represents the weighted average period the stock options are expected to remain outstanding and is based on the history of exercises and cancellations on all past option grants made by the Company, the contractual term, the vesting period and the expected remaining term of the outstanding options. The risk-free interest rate is based on the U.S. Treasury interest rates whose term is consistent with the expected life of the stock options. No dividend yield is included as the Company has not issued any dividends and does not anticipate issuing any dividends in the future. | |||||||||||||||||||||||||||||||||
The following table shows stock-based compensation expense included in the condensed consolidated statements of operations for the three months and nine months ended September 28, 2013 and September 29, 2012: | |||||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||
(in thousands) | September 28, | September 29, | September 28, | September 29, | |||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||||||
Cost of revenues | $ | 27 | $ | 17 | $ | 78 | $ | 51 | |||||||||||||||||||||||||
Research and development | 17 | 19 | 53 | 58 | |||||||||||||||||||||||||||||
Sales and marketing | 30 | 29 | 80 | 84 | |||||||||||||||||||||||||||||
General and administrative | 103 | (85 | ) | 300 | 84 | ||||||||||||||||||||||||||||
$ | 177 | $ | (20 | ) | $ | 511 | $ | 277 | |||||||||||||||||||||||||
Approximately $17 thousand and $11 thousand of the stock-based compensation recognized was capitalized into inventory as a component of overhead for the quarters ended September 28, 2013 and September 29, 2012, respectively. | |||||||||||||||||||||||||||||||||
Information regarding stock options outstanding, vested and expected to vest and exercisable at September 28, 2013 is summarized below: | |||||||||||||||||||||||||||||||||
Number of | Weighted Average | Weighted Average | Aggregate | ||||||||||||||||||||||||||||||
Shares | Exercise Price | Remaining Contractual | Intrinsic Value | ||||||||||||||||||||||||||||||
Life (Years) | (thousands) | ||||||||||||||||||||||||||||||||
Options outstanding | 1,224,801 | $ | 3.92 | 3.73 | $ | 2,706 | |||||||||||||||||||||||||||
Options vested and expected to vest | 1,155,031 | $ | 3.89 | 3.56 | $ | 2,596 | |||||||||||||||||||||||||||
Options exercisable | 789,589 | $ | 3.67 | 2.42 | $ | 1,967 | |||||||||||||||||||||||||||
The aggregate intrinsic value in the table above represents the pre-tax intrinsic value, based on the Company’s closing price as of September 27, 2013, that would have been received by option holders had all option holders exercised their stock options as of that date. This amount changes based on the fair market value of the Company’s stock. The total intrinsic value of options exercised for the nine months ended September 28, 2013 and September 29, 2012 were approximately $231 thousand and $225 thousand, respectively. | |||||||||||||||||||||||||||||||||
As of September 28, 2013, there was $1.0 million of total unrecognized compensation cost, net of expected forfeitures, related to non-vested share-based compensation arrangements under the Incentive Plan. The cost is expected to be recognized over a weighted average period of 3.09 years. | |||||||||||||||||||||||||||||||||
Summary of Restricted Stock Units and Awards | |||||||||||||||||||||||||||||||||
Information regarding the restricted stock units activity for the nine months ended September 28, 2013 is summarized below: | |||||||||||||||||||||||||||||||||
Number | |||||||||||||||||||||||||||||||||
of Shares | |||||||||||||||||||||||||||||||||
Outstanding at December 29, 2012 | 55,999 | ||||||||||||||||||||||||||||||||
Restricted stock units granted | 230,509 | ||||||||||||||||||||||||||||||||
Restricted stock units released | (17,249 | ) | |||||||||||||||||||||||||||||||
Restricted stock units forfeited | 0 | ||||||||||||||||||||||||||||||||
Outstanding at September 28, 2013 | 269,259 | ||||||||||||||||||||||||||||||||
The grant date fair value for restricted stock units awarded during the period was $318 thousand. The weighted average stock price on the date of grant was $4.51 per share. | |||||||||||||||||||||||||||||||||
On March 25, 2013, the Company granted a restricted stock unit award for up to 220,000 shares of the Company’s common stock (the “Market Performance Award”) under the terms of the Company’s 2008 Equity Incentive Plan, as amended, to the Company’s President and Chief Executive Officer. The number of shares issuable pursuant to the Market Performance Award will be based upon the Company’s average stock price performance during the two months prior to and two months following the date the service condition is met, or the fair market value of the Company’s common stock in the event vesting is triggered by a change of control of the Company. The Market Performance Award is expected to vest on December 31, 2014, given that no other vesting triggers occur prior to that date. To the extent that the market condition is not met, the Market Performance Award will not vest and will be cancelled. Since the market conditions will affect the vesting of the Market Performance Award, the Company cannot use the Black-Scholes option-pricing model to value the award; instead, a binomial model must be used. The Company utilized the Monte Carlo simulation technique, which incorporated assumptions for the expected holding period, risk-free interest rate, stock price volatility and dividend yield. Compensation expense is recognized ratably until such time as the market condition is satisfied. | |||||||||||||||||||||||||||||||||
There were 3,503 restricted stock awards granted, vested and forfeited for the nine months ended September 28, 2013. | |||||||||||||||||||||||||||||||||
Stock Repurchase Program | |||||||||||||||||||||||||||||||||
In May 2011, the Company approved a stock repurchase program authorizing the Company to purchase in open market or privately negotiated transactions, up to $2.0 million worth of our common stock, from time to time during the next 12 months. In February 2012, the Company approved an extension of its stock repurchase program authorizing the Company to purchase up to $4.0 million worth of our common stock, from time to time prior to March 2013. In February 2013, the Board of Directors approved a new one year $3.0 million stock repurchase program that replaced the prior two year $4.0 million stock repurchase program. For the nine months ended September 28, 2013, the Company has purchased 36,537 shares at an average price of $5.31 per share. As of September 28, 2013, the Company still has the authorization to purchase up to $2.8 million in common shares under the stock repurchase program. See Item 2, Unregistered Sales of Equity Securities and Use of Proceeds in Part II, Other Information, for additional information. | |||||||||||||||||||||||||||||||||
Preferred Stock Conversion | |||||||||||||||||||||||||||||||||
On June 11, 2013, all outstanding shares of the Company’s Series A Preferred Stock automatically converted into 1,000,000 shares of common stock. The Series A Preferred shares were issued to BlueLine Capital Partners LP and affiliated entities as part of a private placement in 2007. The Certificate of Designation authorizing the Series A Preferred shares provided for their automatic conversion into common stock in the event that IRIDEX common stock traded above $5.00 per share for 30 consecutive trading days. |
Income_Taxes
Income Taxes | 9 Months Ended |
Sep. 28, 2013 | |
Income Taxes | ' |
7. Income Taxes | |
Provision for Income Tax | |
The Company calculates its interim tax provision in accordance with the provisions of ASC topic -740-270, “Income Taxes; Interim Reporting”. For interim periods, the Company estimates its annual effective income tax rate and applies the estimated rate to the year-to-date income or loss before income taxes. The Company also computes the tax provision or benefit related to items reported separately and recognizes the items net of their related tax effect in the interim periods in which they occur. The Company also recognizes the effect of changes in enacted tax laws or rates in the interim periods in which the changes occur. The Company recorded a provision for income tax of $58 thousand for the nine months ended September 28, 2013 and a benefit from income taxes of $134 thousand for the nine months ended September 29, 2012. | |
Deferred Income Taxes | |
The Company accounts for income taxes in accordance with ASC topic 740, Income Taxes (“ASC 740”), which requires that deferred tax assets and liabilities be recognized using enacted tax rates for the effect of temporary differences between the book and tax bases of recorded assets and liabilities. ASC 740 also requires that deferred tax assets be reduced by a valuation allowance if it is more likely than not that some or all of the deferred tax assets will not be realized. As of December 29, 2012, the Company had a deferred tax asset of approximately $10.1 million which is fully offset by a valuation allowance. If realized, the asset will be reflected on the Company’s balance sheet and the reversal of the corresponding valuation allowance will result in a tax benefit being recorded in the statement of operations in the respective period. | |
The American Taxpayer Relief Act of 2012 was enacted on January 2, 2012. The Act reinstated the research and development credit retroactively to January 1, 2012 and extended it through 2013. | |
Uncertain Tax Positions | |
The Company accounts for its uncertain tax positions in accordance with ASC 740. As of December 29, 2012, the Company had $1.0 million of unrecognized tax benefits which would impact the income statement if recognized. | |
The Company is not aware of any other uncertain tax positions that could result in significant additional payments, accruals, or other material deviation in this estimate during the fiscal year. | |
The Company files U.S. federal and state returns, as well as foreign returns in France. The tax years 2007 to 2012 remain open in several jurisdictions, none of which have individual significance. |
Computation_of_Basic_and_Dilut
Computation of Basic and Diluted Net Income (Loss) Per Common Share | 9 Months Ended | ||||||||||||||||||||
Sep. 28, 2013 | |||||||||||||||||||||
Computation of Basic and Diluted Net Income (Loss) Per Common Share | ' | ||||||||||||||||||||
8. Computation of Basic and Diluted Net Income (Loss) Per Common Share | |||||||||||||||||||||
Basic net income per share is computed by dividing net income for the period by the weighted average number of shares outstanding during the period. | |||||||||||||||||||||
Diluted net income per share is computed as follows: | |||||||||||||||||||||
In periods of net income from continuing operations, diluted net income per share is computed by dividing net income for the period by the weighted average number of shares, plus the weighted average common stock equivalents outstanding during the period, which included 1,000,000 shares of common stock issuable upon conversion of 500,000 shares of convertible Series A Preferred Stock. In June 2013, the Series A Preferred Stock was converted into 1,000,000 shares of common stock. The Company excludes options from the computation of diluted weighted average shares outstanding if the exercise price of the options is greater than the average market price of the shares because the inclusion of these options would be anti-dilutive to earnings per share. Accordingly, for the three months ended September 28, 2013 and September 29, 2012, respectively, stock options to purchase 147,111 and 881,893 shares were excluded from the computation of diluted weighted average shares outstanding. For the nine months ended September 28, 2013 and September 29, 2012, respectively, stock options to purchase 543,142 and 899,809 shares were excluded from the computation of diluted weighted average shares outstanding. | |||||||||||||||||||||
In periods of net loss from continuing operations, the basic and diluted weighted average shares of common stock and common stock equivalents are the same because inclusion of common stock equivalents would be anti-dilutive. | |||||||||||||||||||||
A reconciliation of the numerator and denominator of basic and diluted net income (loss) per common share is provided as follows: | |||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||
(in thousands, except per share amounts) | September 28, | September 29, | September 28, | September 29, | |||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||
Numerator: | |||||||||||||||||||||
Income (loss) from continuing operations | $ | 530 | $ | (555 | ) | $ | 1,819 | $ | (423 | ) | |||||||||||
Income (loss) from discontinued operations | 0 | (190 | ) | 0 | 1,619 | ||||||||||||||||
Net income (loss) | $ | 530 | $ | (745 | ) | $ | 1,819 | $ | 1,196 | ||||||||||||
Denominator: | |||||||||||||||||||||
Weighted average shares of common stock (basic) | 9,796 | 9,005 | 9,044 | 8,974 | |||||||||||||||||
Effect of dilutive preferred shares | 0 | 0 | 597 | 0 | |||||||||||||||||
Effect of dilutive stock options | 276 | 0 | 270 | 0 | |||||||||||||||||
Effect of dilutive contingent shares | 105 | 0 | 84 | 0 | |||||||||||||||||
Weighted average shares of common stock (diluted) | 10,177 | 9,005 | 9,995 | 8,974 | |||||||||||||||||
Per share data: | |||||||||||||||||||||
Basic income (loss) per share: | |||||||||||||||||||||
Income (loss) before discontinued operations | $ | 0.05 | $ | (0.06 | ) | $ | 0.20 | $ | (0.05 | ) | |||||||||||
Discontinued operations | 0.00 | (0.02 | ) | 0.00 | 0.18 | ||||||||||||||||
Net income (loss) | $ | 0.05 | $ | (0.08 | ) | $ | 0.20 | $ | 0.13 | ||||||||||||
Diluted income (loss) per share: | |||||||||||||||||||||
Income (loss) before discontinued operations | 0.05 | (0.06 | ) | 0.18 | (0.05 | ) | |||||||||||||||
Discontinued operations | 0.00 | (0.02 | ) | 0.00 | 0.18 | ||||||||||||||||
Net income (loss) | $ | 0.05 | $ | (0.08 | ) | $ | 0.18 | $ | 0.13 | ||||||||||||
Business_Segments
Business Segments | 9 Months Ended | ||||||||||||||||||||
Sep. 28, 2013 | |||||||||||||||||||||
Business Segments | ' | ||||||||||||||||||||
9. Business Segments | |||||||||||||||||||||
The Company operates in one segment, ophthalmology. The Company develops, manufactures and markets medical devices. Our revenues arise from the sale of consoles, delivery devices, consumables, service and support activities. | |||||||||||||||||||||
Revenue information shown by geographic region, based on the location at which each sale originates, is as follows: | |||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||
(in thousands) | September 28, | September 29, | September 28, | September 29, | |||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||
United States | $ | 5,572 | $ | 4,516 | $ | 14,743 | $ | 13,180 | |||||||||||||
Europe | 1,942 | 1,686 | 5,543 | 5,463 | |||||||||||||||||
Rest of Americas | 578 | 394 | 2,369 | 1,722 | |||||||||||||||||
Asia/Pacific Rim | 1,434 | 1,285 | 5,020 | 4,266 | |||||||||||||||||
$ | 9,526 | $ | 7,881 | $ | 27,675 | $ | 24,631 | ||||||||||||||
Revenues are attributed to countries based on location of end customers. No individual country accounted for more than 10% of the Company’s revenues for the three and nine month periods, except for the United States, which accounted for 58.5% and 57.3% of revenues for the three month periods ended September 28, 2013 and September 29, 2012, respectively. For the nine month periods ended September 28, 2013 and September 29, 2012, it accounted for 53.3% and 53.5% of revenues, respectively. | |||||||||||||||||||||
No one customer accounted for more than 10% of total revenues for the three and nine month periods ended September 28, 2013 and September 29, 2012, respectively. |
Subsequent_Events
Subsequent Events | 9 Months Ended |
Sep. 28, 2013 | |
Subsequent Events | ' |
10. Subsequent Events | |
The Company has evaluated subsequent events and has concluded that no additional subsequent events that require disclosure in the financial statements have occurred since the quarter ended September 28, 2013. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 9 Months Ended | ||||||||||||||||||||
Sep. 28, 2013 | |||||||||||||||||||||
Financial Statement Presentation | ' | ||||||||||||||||||||
Financial Statement Presentation. | |||||||||||||||||||||
The consolidated financial statements include the accounts of the Company and our wholly owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. | |||||||||||||||||||||
Use of Estimates | ' | ||||||||||||||||||||
Use of Estimates. | |||||||||||||||||||||
The preparation of consolidated financial statements in conformity with US GAAP requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues, and expenses and the related disclosure of contingent assets and liabilities. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. In addition, any change in these estimates or their related assumptions could have an adverse effect on our operating results. | |||||||||||||||||||||
Discontinued Operations | ' | ||||||||||||||||||||
Discontinued Operations. | |||||||||||||||||||||
Discontinued operations are presented and accounted for in accordance with Accounting Standards Codification (“ASC”) 360, “Impairment or Disposal of Long-Lived Assets”, (“ASC 360”). When a qualifying component of the Company is disposed of or has been classified as held for sale, the operating results of that component are removed from continuing operations for all periods presented and displayed as discontinued operations if: (a) elimination of the component’s operations and cash flows from the Company’s ongoing operations has occurred (or will occur) and (b) significant continuing involvement by the Company in the component’s operations does not exist after the disposal transaction. | |||||||||||||||||||||
On December 30, 2011, we entered into an agreement to sell our aesthetics business to Cutera, Inc. The sale of the aesthetics business was completed on February 2, 2012. | |||||||||||||||||||||
The operating results of our aesthetics business were therefore classified as discontinued operations, and the associated assets and liabilities were classified as discontinued operations for all periods presented under the requirements of ASC 360. | |||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||
(in thousands) | September 28, | September 29, | September 28, | September 29, | |||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||
Total revenues | $ | 0 | $ | 399 | $ | 0 | $ | 1,627 | |||||||||||||
Loss from discontinued operations | $ | 0 | (56 | ) | $ | 0 | (279 | ) | |||||||||||||
Gain on sales of aesthetics business, net | $ | 0 | 0 | $ | 0 | 1,149 | |||||||||||||||
(Loss) income before provision for (benefit from) income taxes | $ | 0 | (56 | ) | $ | 0 | 870 | ||||||||||||||
Income tax (expense) benefit | $ | 0 | (134 | ) | $ | 0 | 749 | ||||||||||||||
(Loss) income from discontinued operations, net of tax | $ | 0 | (190 | ) | $ | 0 | 1,619 | ||||||||||||||
Current assets of discontinued operations as of December 29, 2012 comprised of restricted cash in the amount of $510 thousand. In accordance with the terms of the sale of the aesthetics segment to Cutera, Inc., 10% of the total purchase price was deposited and held in an escrow account for a period of twelve months from the date of closing and was available to resolve certain claims by Cutera, Inc., if any, which the Company had indemnified. There had been no claims made by Cutera, Inc. and in May 2013, the cash held in the escrow account was released to the Company. | |||||||||||||||||||||
Revenue Recognition | ' | ||||||||||||||||||||
Revenue Recognition. | |||||||||||||||||||||
Our revenues arise from the sale of laser consoles, delivery devices, consumables and service and support activities. Revenue from product sales is recognized upon receipt of a purchase order and product shipment provided that no significant obligations remain and collection of the receivables is reasonably assured. Shipments are generally made with Free-On-Board (“FOB”) shipping point terms, whereby title passes upon shipment from our dock. Any shipments with FOB receiving point terms are recorded as revenue when the shipment arrives at the receiving point. Cost is recognized as product sales revenue is recognized. The Company’s sales may include post-sales obligations for training or other deliverables. For revenue arrangements such as these, we recognize revenue in accordance with ASC 605, Revenue Recognition, Multiple-Element Arrangements. The Company allocates revenue among deliverables in multiple-element arrangements using the relative selling price method. Revenue allocated to each element is recognized when the basic revenue recognition criteria is met for each element. The Company is required to apply a hierarchy to determine the selling price to be used for allocating revenue to deliverables: (i) vendor-specific objective evidence of selling price (“VSOE”), (ii) third-party evidence of selling price (“TPE”) and (iii) best estimate of the selling price (“ESP”). In general, the Company is unable to establish VSOE or TPE for all of the elements in the arrangement; therefore, revenue is allocated to these elements based on the Company’s ESP, which the Company determines after considering multiple factors such as management approved pricing guidelines, geographic differences, market conditions, competitor pricing strategies, internal costs and gross margin objectives. These factors may vary over time depending upon the unique facts and circumstances related to each deliverable. As a result, the Company’s ESP for products and services could change. Revenues for post-sales obligations are recognized as the obligations are fulfilled. | |||||||||||||||||||||
In international regions, we utilize distributors to market and sell our products. We recognize revenue upon shipment for sales to these independent, third party distributors as we have no continuing obligations subsequent to shipment. Generally our distributors are responsible for all marketing, sales, installation, training and warranty labor coverage for our products. Our standard terms and conditions do not provide price protection or stock retention rights to any of our distributors. | |||||||||||||||||||||
Royalty revenues are typically based on licensees’ net sales of products that utilize our technology and are recognized as earned in accordance with the contract terms when royalties from licensees can be reliably measured and collectibility is reasonably assured, such as upon the earlier of the receipt of a royalty statement from the licensee or upon payment by the licensee. | |||||||||||||||||||||
Taxes Collected from Customers and Remitted to Governmental Authorities | ' | ||||||||||||||||||||
Taxes Collected from Customers and Remitted to Governmental Authorities. | |||||||||||||||||||||
Taxes collected from customers and remitted to governmental authorities are recognized on a net basis in the accompanying consolidated statements of operations. | |||||||||||||||||||||
Shipping and Handling Costs | ' | ||||||||||||||||||||
Shipping and Handling Costs. | |||||||||||||||||||||
Our shipping and handling costs billed to customers are included in revenues and the associated expense is recorded in cost of revenues for all periods presented. | |||||||||||||||||||||
Deferred Revenue | ' | ||||||||||||||||||||
Deferred Revenue. | |||||||||||||||||||||
Revenue related to extended service contracts is deferred and recognized on a straight line basis over the period of the applicable service contract. Costs associated with these service arrangements are recognized as incurred. | |||||||||||||||||||||
A reconciliation of the changes in the Company’s deferred revenue balance for the nine months ended September 28, 2013 and September 29, 2012 is as follows: | |||||||||||||||||||||
Nine Months Ended | |||||||||||||||||||||
(in thousands) | September 28, | September 29, | |||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
Balance, beginning of period | $ | 1,004 | $ | 1,014 | |||||||||||||||||
Additions to deferral | 985 | 680 | |||||||||||||||||||
Revenue recognized | (927 | ) | (833 | ) | |||||||||||||||||
Balance, end of period | $ | 1,062 | $ | 861 | |||||||||||||||||
Warranty | ' | ||||||||||||||||||||
Warranty. | |||||||||||||||||||||
The Company generally provides a one to two years warranty on its products, which is accrued for upon shipment of products. Actual warranty costs incurred have not materially differed from those accrued. The Company’s warranty policy is applicable to products which are considered defective in their performance or fail to meet the product specifications. Warranty costs are reflected in the statement of operations as cost of revenues. | |||||||||||||||||||||
A reconciliation of the changes in the Company’s warranty liability for the nine months ended September 28, 2013 and September 29, 2012 is as follows: | |||||||||||||||||||||
Nine Months Ended | |||||||||||||||||||||
(in thousands) | September 28, | September 29, | |||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
Balance, beginning of period | $ | 453 | $ | 556 | |||||||||||||||||
Accruals for product warranties | 162 | 123 | |||||||||||||||||||
Cost of warranty claims and adjustments | (143 | ) | (151 | ) | |||||||||||||||||
Balance, end of period | $ | 472 | $ | 528 | |||||||||||||||||
Recently Issued and Adopted Accounting Standards | ' | ||||||||||||||||||||
Recently Issued and Adopted Accounting Standards. | |||||||||||||||||||||
In February 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2013-02, Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income (“AOCI”), which aims to improve the reporting of reclassifications out of AOCI. This update requires an entity to report the effect of significant reclassifications out of AOCI on the respective line items in net income if the amount being reclassified is required under US GAAP to be reclassified in its entirety to net income. For other amounts that are not required under US GAAP to be reclassified in their entirety to net income in the same reporting period, an entity is required to cross-reference other disclosures required under US GAAP that provide additional detail about those amounts. The amendments do not change the current requirements for reporting net income or other comprehensive income in financial statements. For public entities, the amendments are effective prospectively for reporting periods beginning after December 15, 2012. The Company adopted this standard in the first quarter of fiscal year 2013. The adoption of this standard did not have a material effect on our consolidated financial position, results of operations, or cash flows. | |||||||||||||||||||||
In July 2013, the FASB issued Accounting Standards Update (“ASU”) No. 2013-11, “Presentation of an Unrecognized Tax Benefit when a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists.” This standard requires an entity to present unrecognized tax benefits as a reduction to deferred tax assets when a net operating loss carryforward, similar tax loss or a tax credit carryforward exists, with limited exceptions. This standard is effective for fiscal years beginning on or after December 15, 2013, and for interim periods within those fiscal years. Since ASU 2013-11 only impacts financial statement disclosure requirements for unrealized tax benefits, the Company does not expect its adoption to have an impact on the Company’s financial position or results of operations. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 9 Months Ended | ||||||||||||||||||||
Sep. 28, 2013 | |||||||||||||||||||||
Summary of Activities for Discontinued Operations | ' | ||||||||||||||||||||
The operating results of our aesthetics business were therefore classified as discontinued operations, and the associated assets and liabilities were classified as discontinued operations for all periods presented under the requirements of ASC 360. | |||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||
(in thousands) | September 28, | September 29, | September 28, | September 29, | |||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||
Total revenues | $ | 0 | $ | 399 | $ | 0 | $ | 1,627 | |||||||||||||
Loss from discontinued operations | $ | 0 | (56 | ) | $ | 0 | (279 | ) | |||||||||||||
Gain on sales of aesthetics business, net | $ | 0 | 0 | $ | 0 | 1,149 | |||||||||||||||
(Loss) income before provision for (benefit from) income taxes | $ | 0 | (56 | ) | $ | 0 | 870 | ||||||||||||||
Income tax (expense) benefit | $ | 0 | (134 | ) | $ | 0 | 749 | ||||||||||||||
(Loss) income from discontinued operations, net of tax | $ | 0 | (190 | ) | $ | 0 | 1,619 | ||||||||||||||
Reconciliation of the Changes in the Company's Deferred Revenue Balance | ' | ||||||||||||||||||||
A reconciliation of the changes in the Company’s deferred revenue balance for the nine months ended September 28, 2013 and September 29, 2012 is as follows: | |||||||||||||||||||||
Nine Months Ended | |||||||||||||||||||||
(in thousands) | September 28, | September 29, | |||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
Balance, beginning of period | $ | 1,004 | $ | 1,014 | |||||||||||||||||
Additions to deferral | 985 | 680 | |||||||||||||||||||
Revenue recognized | (927 | ) | (833 | ) | |||||||||||||||||
Balance, end of period | $ | 1,062 | $ | 861 | |||||||||||||||||
Reconciliation of the Changes in the Company's Warranty Liability | ' | ||||||||||||||||||||
A reconciliation of the changes in the Company’s warranty liability for the nine months ended September 28, 2013 and September 29, 2012 is as follows: | |||||||||||||||||||||
Nine Months Ended | |||||||||||||||||||||
(in thousands) | September 28, | September 29, | |||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
Balance, beginning of period | $ | 453 | $ | 556 | |||||||||||||||||
Accruals for product warranties | 162 | 123 | |||||||||||||||||||
Cost of warranty claims and adjustments | (143 | ) | (151 | ) | |||||||||||||||||
Balance, end of period | $ | 472 | $ | 528 | |||||||||||||||||
Inventories_Tables
Inventories (Tables) | 9 Months Ended | |||||||||
Sep. 28, 2013 | ||||||||||
Components of Inventories | ' | |||||||||
The components of the Company’s inventories as of September 28, 2013 and December 29, 2012 are as follows: | ||||||||||
(in thousands) | September 28, | December 29, | ||||||||
2013 | 2012 | |||||||||
Raw materials and work in process | $ | 6,318 | $ | 5,357 | ||||||
Finished goods | 3,680 | 2,678 | ||||||||
Total inventories | $ | 9,998 | $ | 8,035 | ||||||
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Sep. 28, 2013 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in Goodwill | ' | ||||||||||||||||||||||||||||||||||||||||||||||||||||
The carrying amount of goodwill and the changes in those balances are as follows: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, December 29, 2012 | $ | 533 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Additions as a result of acquisitions | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, September 28, 2013 | $ | 533 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Intangible Assets | ' | ||||||||||||||||||||||||||||||||||||||||||||||||||||
The following table summarizes the components of gross and net intangible asset balances: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
September 28, 2013 | December 29, 2012 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | Gross | Accumulated | Net | Gross | Accumulated | Net | Amortization | ||||||||||||||||||||||||||||||||||||||||||||||
Carrying | Amortization | Carrying | Carrying | Amortization | Carrying | Life | |||||||||||||||||||||||||||||||||||||||||||||||
Amount | Amount | Amount | Amount | ||||||||||||||||||||||||||||||||||||||||||||||||||
Patents | $ | 720 | $ | 522 | $ | 198 | $ | 720 | $ | 362 | $ | 358 | Varies | ||||||||||||||||||||||||||||||||||||||||
Customer relations | 240 | $ | 56 | 184 | 240 | 44 | 196 | 11.5 years | |||||||||||||||||||||||||||||||||||||||||||||
$ | 960 | $ | 578 | $ | 382 | $ | 960 | $ | 406 | $ | 554 | ||||||||||||||||||||||||||||||||||||||||||
Future Estimated Amortization Expense | ' | ||||||||||||||||||||||||||||||||||||||||||||||||||||
The amortization of customer relations was charged to sales and marketing expense and the amortization of patents was charged to cost of revenues. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Future estimated amortization expense (in thousands): | |||||||||||||||||||||||||||||||||||||||||||||||||||||
2013 (three months) | $ | 82 | |||||||||||||||||||||||||||||||||||||||||||||||||||
2014 | 30 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
2015 | 52 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
2016 | 86 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
2017 | 16 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Thereafter | 116 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 382 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sep. 28, 2013 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Assets and Liabilities Measured and Recognized at Fair Value on a Recurring Basis | ' | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
As of September 28, 2013 and December 29, 2012, financial assets and liabilities measured and recognized at fair value on a recurring basis and classified under the appropriate level of the fair value hierarchy as described above was as follows: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
28-Sep-13 | 29-Dec-12 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Money market funds | $ | 12,741 | $ | 12,741 | $ | 10,839 | 0 | 0 | $ | 10,839 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earn-out liability | $ | 546 | $ | 546 | $ | 0 | 0 | $ | 652 | $ | 652 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Quantitative Information about the Inputs and Valuation Methodologies Used for Fair Value Measurements | ' | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The following table presents quantitative information about the inputs and valuation methodologies used for our fair value measurements classified in Level 3 of the fair value hierarchy as of September 28, 2013. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
As of September 28, 2013 | Fair Value | Valuation | Significant | Weighted | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | Technique | Unobservable | Average | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Input | (range) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earn-out liability | $ | 546 | Discounted cash flow | Projected royalties | $1,408 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | ($414 - $1,644) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discount rate | 21.67% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(20.40% - 27.00%) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of the Changes in the Company's Earn-Out - Cash (Level 3 Liabilities) Balance | ' | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
A reconciliation of the changes in the Company’s earn-out liability (Level 3 liability) for the nine months ended September 28, 2013 and September 29, 2012 is as follows: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nine Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | September 28 | September 29, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2013, | 2012 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at the beginning of the period | $ | 652 | $ | 765 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payments against earn-out | (287 | ) | (241 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Change in fair value of earn-out liability | 181 | 195 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at the end of the period | $ | 546 | $ | 719 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock_Based_Compensation_Table
Stock Based Compensation (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||||||
Sep. 28, 2013 | |||||||||||||||||||||||||||||||||
Activity in Stock Option Plan | ' | ||||||||||||||||||||||||||||||||
The following table summarizes information regarding activity in our stock option plan during the nine months ended September 28, 2013: | |||||||||||||||||||||||||||||||||
Number of Shares | Weighted | Aggregate Intrinsic Value (thousands) | |||||||||||||||||||||||||||||||
Average | |||||||||||||||||||||||||||||||||
Exercise Price | |||||||||||||||||||||||||||||||||
Per Share | |||||||||||||||||||||||||||||||||
Outstanding at December 29, 2012 | 1,570,543 | $ | 3.64 | ||||||||||||||||||||||||||||||
Granted | 145,800 | $ | 5.59 | ||||||||||||||||||||||||||||||
Exercised | (373,663 | ) | $ | 2.88 | |||||||||||||||||||||||||||||
Canceled or forfeited | (117,879 | ) | $ | 5.54 | |||||||||||||||||||||||||||||
Outstanding at September 28, 2013 | 1,224,801 | $ | 3.92 | $ | 2,706 | ||||||||||||||||||||||||||||
Weighted Average Assumptions for Fair Value Estimate of Stock-Based Awards (Options) | ' | ||||||||||||||||||||||||||||||||
The Company uses the Black-Scholes option-pricing model to estimate fair value of stock-based awards (options) with the following weighted average assumptions: | |||||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||
September 28, | September 29, | September 28, | September 29, | ||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||||||
Average risk free interest rate | 1.26 | % | 0.59 | % | 1.11 | % | 0.68 | % | |||||||||||||||||||||||||
Expected life (in years) | 4.50 years | 4.55 years | 4.50 years | 4.55 years | |||||||||||||||||||||||||||||
Dividend yield | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | |||||||||||||||||||||||||
Average volatility | 66 | % | 90 | % | 72 | % | 91 | % | |||||||||||||||||||||||||
Stock-Based Compensation Expense | ' | ||||||||||||||||||||||||||||||||
The following table shows stock-based compensation expense included in the condensed consolidated statements of operations for the three months and nine months ended September 28, 2013 and September 29, 2012: | |||||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||
(in thousands) | September 28, | September 29, | September 28, | September 29, | |||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||||||
Cost of revenues | $ | 27 | $ | 17 | $ | 78 | $ | 51 | |||||||||||||||||||||||||
Research and development | 17 | 19 | 53 | 58 | |||||||||||||||||||||||||||||
Sales and marketing | 30 | 29 | 80 | 84 | |||||||||||||||||||||||||||||
General and administrative | 103 | (85 | ) | 300 | 84 | ||||||||||||||||||||||||||||
$ | 177 | $ | (20 | ) | $ | 511 | $ | 277 | |||||||||||||||||||||||||
Stock Options Outstanding, Exercisable and Expected to Vest | ' | ||||||||||||||||||||||||||||||||
Information regarding stock options outstanding, vested and expected to vest and exercisable at September 28, 2013 is summarized below: | |||||||||||||||||||||||||||||||||
Number of | Weighted Average | Weighted Average | Aggregate | ||||||||||||||||||||||||||||||
Shares | Exercise Price | Remaining Contractual | Intrinsic Value | ||||||||||||||||||||||||||||||
Life (Years) | (thousands) | ||||||||||||||||||||||||||||||||
Options outstanding | 1,224,801 | $ | 3.92 | 3.73 | $ | 2,706 | |||||||||||||||||||||||||||
Options vested and expected to vest | 1,155,031 | $ | 3.89 | 3.56 | $ | 2,596 | |||||||||||||||||||||||||||
Options exercisable | 789,589 | $ | 3.67 | 2.42 | $ | 1,967 | |||||||||||||||||||||||||||
Restricted Stock Units Activity | ' | ||||||||||||||||||||||||||||||||
Information regarding the restricted stock units activity for the nine months ended September 28, 2013 is summarized below: | |||||||||||||||||||||||||||||||||
Number | |||||||||||||||||||||||||||||||||
of Shares | |||||||||||||||||||||||||||||||||
Outstanding at December 29, 2012 | 55,999 | ||||||||||||||||||||||||||||||||
Restricted stock units granted | 230,509 | ||||||||||||||||||||||||||||||||
Restricted stock units released | (17,249 | ) | |||||||||||||||||||||||||||||||
Restricted stock units forfeited | 0 | ||||||||||||||||||||||||||||||||
Outstanding at September 28, 2013 | 269,259 | ||||||||||||||||||||||||||||||||
Computation_of_Basic_and_Dilut1
Computation of Basic and Diluted Net Income (Loss) Per Common Share (Tables) | 9 Months Ended | ||||||||||||||||||||
Sep. 28, 2013 | |||||||||||||||||||||
Reconciliation of the Numerator and Denominator of Basic and Diluted Net Income (Loss) Per Common Share | ' | ||||||||||||||||||||
A reconciliation of the numerator and denominator of basic and diluted net income (loss) per common share is provided as follows: | |||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||
(in thousands, except per share amounts) | September 28, | September 29, | September 28, | September 29, | |||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||
Numerator: | |||||||||||||||||||||
Income (loss) from continuing operations | $ | 530 | $ | (555 | ) | $ | 1,819 | $ | (423 | ) | |||||||||||
Income (loss) from discontinued operations | 0 | (190 | ) | 0 | 1,619 | ||||||||||||||||
Net income (loss) | $ | 530 | $ | (745 | ) | $ | 1,819 | $ | 1,196 | ||||||||||||
Denominator: | |||||||||||||||||||||
Weighted average shares of common stock (basic) | 9,796 | 9,005 | 9,044 | 8,974 | |||||||||||||||||
Effect of dilutive preferred shares | 0 | 0 | 597 | 0 | |||||||||||||||||
Effect of dilutive stock options | 276 | 0 | 270 | 0 | |||||||||||||||||
Effect of dilutive contingent shares | 105 | 0 | 84 | 0 | |||||||||||||||||
Weighted average shares of common stock (diluted) | 10,177 | 9,005 | 9,995 | 8,974 | |||||||||||||||||
Per share data: | |||||||||||||||||||||
Basic income (loss) per share: | |||||||||||||||||||||
Income (loss) before discontinued operations | $ | 0.05 | $ | (0.06 | ) | $ | 0.20 | $ | (0.05 | ) | |||||||||||
Discontinued operations | 0.00 | (0.02 | ) | 0.00 | 0.18 | ||||||||||||||||
Net income (loss) | $ | 0.05 | $ | (0.08 | ) | $ | 0.20 | $ | 0.13 | ||||||||||||
Diluted income (loss) per share: | |||||||||||||||||||||
Income (loss) before discontinued operations | 0.05 | (0.06 | ) | 0.18 | (0.05 | ) | |||||||||||||||
Discontinued operations | 0.00 | (0.02 | ) | 0.00 | 0.18 | ||||||||||||||||
Net income (loss) | $ | 0.05 | $ | (0.08 | ) | $ | 0.18 | $ | 0.13 | ||||||||||||
Business_Segments_Tables
Business Segments (Tables) | 9 Months Ended | ||||||||||||||||||||
Sep. 28, 2013 | |||||||||||||||||||||
Revenue Information Shown by Geographic Region | ' | ||||||||||||||||||||
Revenue information shown by geographic region, based on the location at which each sale originates, is as follows: | |||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||
(in thousands) | September 28, | September 29, | September 28, | September 29, | |||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||
United States | $ | 5,572 | $ | 4,516 | $ | 14,743 | $ | 13,180 | |||||||||||||
Europe | 1,942 | 1,686 | 5,543 | 5,463 | |||||||||||||||||
Rest of Americas | 578 | 394 | 2,369 | 1,722 | |||||||||||||||||
Asia/Pacific Rim | 1,434 | 1,285 | 5,020 | 4,266 | |||||||||||||||||
$ | 9,526 | $ | 7,881 | $ | 27,675 | $ | 24,631 | ||||||||||||||
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 |
Summary of activities for discontinued operations | ' | ' | ' | ' |
Total revenues | $0 | $399 | $0 | $1,627 |
Loss from discontinued operations | 0 | -56 | 0 | -279 |
Gain on sales of aesthetics business, net | 0 | 0 | 0 | 1,149 |
(Loss) income before provision for (benefit from) income taxes | 0 | -56 | 0 | 870 |
Income tax (expense) benefit | 0 | -134 | 0 | 749 |
(Loss) income from discontinued operations, net of tax | $0 | ($190) | $0 | $1,619 |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies (Details 1) (USD $) | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | |
Reconciliation of the changes in the Company's deferred revenue balance | ' | ' | |
Balance, beginning of period | $1,004 | [1] | $1,014 |
Additions to deferral | 985 | 680 | |
Revenue recognized | -927 | -833 | |
Balance, end of period | $1,062 | $861 | |
[1] | Derived from the audited consolidated financial statements included in the annual report filed on Form 10-K with the SEC for the year ended December 29, 2012. |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies (Details 2) (USD $) | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | |
Reconciliation of the changes in the Company's warranty liability | ' | ' | |
Balance, beginning of period | $453 | [1] | $556 |
Accruals for product warranties | 162 | 123 | |
Cost of warranty claims and adjustments | -143 | -151 | |
Balance, end of period | $472 | $528 | |
[1] | Derived from the audited consolidated financial statements included in the annual report filed on Form 10-K with the SEC for the year ended December 29, 2012. |
Summary_of_Significant_Account6
Summary of Significant Accounting Policies (Details Textual) (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 30, 2013 | Sep. 28, 2013 | Dec. 29, 2012 | |
Summary of Significant Accounting Policies (Textual) [Abstract] | ' | ' | ' | |
Percentage of purchase price to be deposited in escrow account | 10.00% | ' | ' | |
Current assets of discontinued operations | ' | $0 | $510 | [1] |
[1] | Derived from the audited consolidated financial statements included in the annual report filed on Form 10-K with the SEC for the year ended December 29, 2012. |
Inventories_Details
Inventories (Details) (USD $) | Sep. 28, 2013 | Dec. 29, 2012 | |
In Thousands, unless otherwise specified | |||
Components of inventories | ' | ' | |
Raw materials and work in process | $6,318 | $5,357 | |
Finished goods | 3,680 | 2,678 | |
Total inventories | $9,998 | $8,035 | [1] |
[1] | Derived from the audited consolidated financial statements included in the annual report filed on Form 10-K with the SEC for the year ended December 29, 2012. |
Goodwill_and_Intangible_Assets2
Goodwill and Intangible Assets (Details) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 28, 2013 | |
Changes in goodwill | ' | |
Balance, beginning of period | $533 | [1] |
Additions as a result of acquisitions | 0 | |
Balance, end of period | $533 | |
[1] | Derived from the audited consolidated financial statements included in the annual report filed on Form 10-K with the SEC for the year ended December 29, 2012. |
Goodwill_and_Intangible_Assets3
Goodwill and Intangible Assets (Details 1) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 28, 2013 | Dec. 29, 2012 |
Schedule of Intangible Assets | ' | ' |
Gross Carrying Amount | $960 | $960 |
Accumulated Amortization | 578 | 406 |
Net Carrying Amount | 382 | 554 |
Patents | ' | ' |
Schedule of Intangible Assets | ' | ' |
Gross Carrying Amount | 720 | 720 |
Accumulated Amortization | 522 | 362 |
Net Carrying Amount | 198 | 358 |
Customer Relations | ' | ' |
Schedule of Intangible Assets | ' | ' |
Gross Carrying Amount | 240 | 240 |
Accumulated Amortization | 56 | 44 |
Net Carrying Amount | $184 | $196 |
Amortization Life | '11 years 6 months | ' |
Goodwill_and_Intangible_Assets4
Goodwill and Intangible Assets (Details 2) (USD $) | Sep. 28, 2013 | Dec. 29, 2012 |
In Thousands, unless otherwise specified | ||
Future estimated amortization expense | ' | ' |
2013 (three months) | $82 | ' |
2014 | 30 | ' |
2015 | 52 | ' |
2016 | 86 | ' |
2017 | 16 | ' |
Thereafter | 116 | ' |
Net Carrying Amount | $382 | $554 |
Goodwill_and_Intangible_Assets5
Goodwill and Intangible Assets (Details Textual) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 |
Goodwill and Intangible Assets (Textual) [Abstract] | ' | ' |
Amortization expense | $172 | $143 |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | Sep. 28, 2013 | Dec. 29, 2012 |
In Thousands, unless otherwise specified | ||
Earn Out Liability | ' | ' |
Financial assets and liabilities measured and recognized at fair value on a recurring basis | ' | ' |
Liabilities, Fair Value Measurements | $546 | $652 |
Level 1 | Earn Out Liability | ' | ' |
Financial assets and liabilities measured and recognized at fair value on a recurring basis | ' | ' |
Liabilities, Fair Value Measurements | ' | 0 |
Level 2 | Earn Out Liability | ' | ' |
Financial assets and liabilities measured and recognized at fair value on a recurring basis | ' | ' |
Liabilities, Fair Value Measurements | ' | 0 |
Level 3 | Earn Out Liability | ' | ' |
Financial assets and liabilities measured and recognized at fair value on a recurring basis | ' | ' |
Liabilities, Fair Value Measurements | 546 | 652 |
Money market funds | ' | ' |
Financial assets and liabilities measured and recognized at fair value on a recurring basis | ' | ' |
Assets, Fair Value Measurements | 12,741 | 10,839 |
Money market funds | Level 1 | ' | ' |
Financial assets and liabilities measured and recognized at fair value on a recurring basis | ' | ' |
Assets, Fair Value Measurements | 12,741 | 10,839 |
Money market funds | Level 2 | ' | ' |
Financial assets and liabilities measured and recognized at fair value on a recurring basis | ' | ' |
Assets, Fair Value Measurements | ' | 0 |
Money market funds | Level 3 | ' | ' |
Financial assets and liabilities measured and recognized at fair value on a recurring basis | ' | ' |
Assets, Fair Value Measurements | ' | $0 |
Fair_Value_Measurements_Detail1
Fair Value Measurements (Details 1) (Level 3, Discounted Cash Flow, USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 28, 2013 |
Quantitative information about the inputs and valuation methodologies used for fair value measurements | ' |
Fair Value, Earn-out liability | $546 |
Valuation Technique, Earn-out liability | 'Discounted cash flow |
Weighted Average, Projected royalties | 1,408 |
Weighted Average, Discount rate | 21.67% |
Minimum | ' |
Quantitative information about the inputs and valuation methodologies used for fair value measurements | ' |
Weighted Average, Projected royalties | 414 |
Weighted Average, Discount rate | 20.40% |
Maximum | ' |
Quantitative information about the inputs and valuation methodologies used for fair value measurements | ' |
Weighted Average, Projected royalties | $1,644 |
Weighted Average, Discount rate | 27.00% |
Fair_Value_Measurements_Detail2
Fair Value Measurements (Details 2) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 |
Reconciliation of the changes in the Company's earn-out - cash (Level 3 liabilities) balance | ' | ' |
Balance at the beginning of the period | $652 | $765 |
Payments against earn-out | -287 | -241 |
Change in fair value of earn-out liability | 181 | 195 |
Balance at the end of the period | $546 | $719 |
Stock_Based_Compensation_Detai
Stock Based Compensation (Details) (USD $) | 9 Months Ended |
In Thousands, except Share data, unless otherwise specified | Sep. 28, 2013 |
Activity in stock option plan | ' |
Outstanding, Number of Shares, Beginning Balance | 1,570,543 |
Number of Shares, Options Granted | 145,800 |
Number of Shares, Options Exercised | -373,663 |
Number of Shares, Options Cancelled or forfeited | -117,879 |
Outstanding, Number of Shares, Ending Balance | 1,224,801 |
Weighted Average Exercise Price Per Share, Beginning Balance | $3.64 |
Weighted Average Exercise Price Per Share , Options Granted | $5.59 |
Weighted Average Exercise Price Per Share, Options Exercised | $2.88 |
Weighted Average Exercise Price Per Share, Options Cancelled or forfeited | $5.54 |
Weighted Average Exercise Price Per Share, Ending Balance | $3.92 |
Aggregate Intrinsic Value, Beginning Balance | ' |
Aggregate Intrinsic Value, Ending Balance | $2,706 |
Stock_Based_Compensation_Detai1
Stock Based Compensation (Details 1) | 3 Months Ended | 9 Months Ended | ||
Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 | |
Weighted average assumptions for fair value estimate of stock-based awards (options) | ' | ' | ' | ' |
Average risk free interest rate | 1.26% | 0.59% | 1.11% | 0.68% |
Expected life (in years) | '4 years 6 months | '4 years 6 months 18 days | '4 years 6 months | '4 years 6 months 18 days |
Dividend yield | 0.00% | 0.00% | 0.00% | 0.00% |
Average volatility | 66.00% | 90.00% | 72.00% | 91.00% |
Stock_Based_Compensation_Detai2
Stock Based Compensation (Details 2) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 |
Stock-based compensation expense | ' | ' | ' | ' |
Stock based compensation expense | $177 | ($20) | $511 | $277 |
Cost of revenues | ' | ' | ' | ' |
Stock-based compensation expense | ' | ' | ' | ' |
Stock based compensation expense | 27 | 17 | 78 | 51 |
Research and development | ' | ' | ' | ' |
Stock-based compensation expense | ' | ' | ' | ' |
Stock based compensation expense | 17 | 19 | 53 | 58 |
Sales and marketing | ' | ' | ' | ' |
Stock-based compensation expense | ' | ' | ' | ' |
Stock based compensation expense | 30 | 29 | 80 | 84 |
General and administrative | ' | ' | ' | ' |
Stock-based compensation expense | ' | ' | ' | ' |
Stock based compensation expense | $103 | ($85) | $300 | $84 |
Stock_Based_Compensation_Detai3
Stock Based Compensation (Details 3) (USD $) | 9 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Sep. 28, 2013 | Dec. 29, 2012 |
Stock options outstanding, exercisable and expected to vest | ' | ' |
Options outstanding, Number of Shares | 1,224,801 | 1,570,543 |
Options outstanding, Weighted Average Exercise Price | $3.92 | $3.64 |
Options outstanding, Weighted Average Remaining Contractual Life (Years) | '3 years 8 months 23 days | ' |
Options outstanding, Aggregate Intrinsic Value | $2,706 | ' |
Options vested and expected to vest, Number of Shares | 1,155,031 | ' |
Options vested and expected to vest, Weighted Average Exercise Price | $3.89 | ' |
Options vested and expected to vest, Weighted Average Remaining Contractual Life (Years) | '3 years 6 months 22 days | ' |
Options vested and expected to vest, Aggregate Intrinsic Value | 2,596 | ' |
Options exercisable, Number of Shares | 789,589 | ' |
Options exercisable, Weighted Average Exercise Price | $3.67 | ' |
Options exercisable, Weighted Average Remaining Contractual Life (Years) | '2 years 5 months 1 day | ' |
Options exercisable, Aggregate Intrinsic Value | $1,967 | ' |
Stock_Based_Compensation_Detai4
Stock Based Compensation (Details 4) (Restricted stock units) | 3 Months Ended | 9 Months Ended |
Mar. 30, 2013 | Sep. 28, 2013 | |
Restricted stock units | ' | ' |
Restricted stock units activity | ' | ' |
Outstanding at December 29, 2012 | ' | 55,999 |
Restricted stock units granted | 220,000 | 230,509 |
Restricted stock units released | ' | -17,249 |
Restricted stock units forfeited | ' | 0 |
Outstanding at September 28, 2013 | ' | 269,259 |
Stock_Based_Compensation_Detai5
Stock Based Compensation (Details Textual) (USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | ||||||
Feb. 28, 2013 | Feb. 29, 2012 | 31-May-11 | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Mar. 30, 2013 | Sep. 28, 2013 | Sep. 28, 2013 | |
Minimum | Restricted stock units | Restricted stock units | Restricted Stock Awards | ||||||||
Stock Based Compensation (Additional Textual) [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted-average grant date fair value of the options granted | ' | ' | ' | $3.19 | $2.37 | $3.12 | $2.70 | ' | ' | ' | ' |
Dividend yield | ' | ' | ' | 0.00% | 0.00% | 0.00% | 0.00% | ' | ' | ' | ' |
Stock-based compensation capitalized into inventory | ' | ' | ' | $17,000 | $11,000 | ' | ' | ' | ' | ' | ' |
Total intrinsic value of options exercised | ' | ' | ' | ' | ' | 231,000 | 225,000 | ' | ' | ' | ' |
Total unrecognized compensation cost, net of expected forfeitures, related to non-vested share-based compensation arrangements under the Incentive Plan | ' | ' | ' | 1,000,000 | ' | 1,000,000 | ' | ' | ' | ' | ' |
Compensation cost recognition, weighted average period (years) | ' | ' | ' | ' | ' | '3 years 1 month 2 days | ' | ' | ' | ' | ' |
Weighted grant date fair value of restricted stock units granted | ' | ' | ' | ' | ' | 318,000 | ' | ' | ' | ' | ' |
Weighted-average grant date fair value of restricted stock units granted | ' | ' | ' | $4.51 | ' | $4.51 | ' | ' | ' | ' | ' |
Period consider for calculation of average stock price performance prior awards vesting | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2 months | ' |
Period consider for calculation of average stock price performance after awards vesting | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2 months | ' |
Stock repurchase program authorized amount | 3,000,000 | 4,000,000 | 2,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Stock repurchase paid | ' | ' | ' | ' | ' | '12 months | ' | ' | ' | ' | ' |
Stock repurchase, shares | ' | ' | ' | ' | ' | 36,537 | ' | ' | ' | ' | ' |
Shares repurchased price, per share | ' | ' | ' | ' | ' | $5.31 | ' | ' | ' | ' | ' |
Common shares under the stock repurchase program | ' | ' | ' | ' | ' | $2,800,000 | ' | ' | ' | ' | ' |
Common stock converted from Series A Preferred Stock, shares | ' | ' | ' | ' | ' | 1,000,000 | ' | ' | ' | ' | ' |
Trading price of common stock per share | ' | ' | ' | ' | ' | ' | ' | $5 | ' | ' | ' |
Number of consecutive trading days | ' | ' | ' | ' | ' | '30 days | ' | ' | ' | ' | ' |
Stock Based Compensation (Textual) [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restricted stock units granted | ' | ' | ' | ' | ' | ' | ' | ' | 220,000 | 230,509 | 3,503 |
Restricted stock vested during the period | ' | ' | ' | ' | ' | ' | ' | ' | ' | 17,249 | 0 |
Restricted stock forfeited during the period | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 |
Income_Taxes_Details_Textual
Income Taxes (Details Textual) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 | Dec. 29, 2012 | |
Income Taxes (Textual) [Abstract] | ' | ' | ' | ' | ' |
Provision for (benefit from) income taxes | $50,000 | ($141,000) | $58,000 | ($134,000) | ' |
Deferred Tax Assets | ' | ' | ' | ' | 10,100,000 |
Unrecognized tax benefits recognition impact on income tax rate | ' | ' | ' | ' | $1,000,000 |
Computation_of_Basic_and_Dilut2
Computation of Basic and Diluted Net Income (Loss) Per Common Share (Details Textual) | 3 Months Ended | 9 Months Ended | ||
Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 | |
Common Stock Equivalent Relating To Preferred Shares | ' | ' | ' | ' |
Computation of Basic and Diluted Net Income (Loss) Per Common Share (Textual) [Abstract] | ' | ' | ' | ' |
Shares that were excluded from the computation of diluted weighted average shares outstanding | ' | ' | 1,000,000 | ' |
Series A Preferred Stock | ' | ' | ' | ' |
Computation of Basic and Diluted Net Income (Loss) Per Common Share (Textual) [Abstract] | ' | ' | ' | ' |
Shares that were excluded from the computation of diluted weighted average shares outstanding | ' | ' | 500,000 | ' |
Stock Options | ' | ' | ' | ' |
Computation of Basic and Diluted Net Income (Loss) Per Common Share (Textual) [Abstract] | ' | ' | ' | ' |
Shares that were excluded from the computation of diluted weighted average shares outstanding | 147,111 | 881,893 | 543,142 | 899,809 |
Computation_of_Basic_and_Dilut3
Computation of Basic and Diluted Net Income (Loss) Per Common Share (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 |
Numerator: | ' | ' | ' | ' |
Income (loss) from continuing operations | $530 | ($555) | $1,819 | ($423) |
(Loss) income from discontinued operations, net of tax | 0 | -190 | 0 | 1,619 |
Net income (loss) | $530 | ($745) | $1,819 | $1,196 |
Denominator: | ' | ' | ' | ' |
Weighted average shares of common stock (basic) | 9,796 | 9,005 | 9,044 | 8,974 |
Effect of dilutive preferred shares | 0 | 0 | 597 | 0 |
Effect of dilutive stock options | 276 | 0 | 270 | 0 |
Effect of dilutive contingent shares | 105 | 0 | 84 | 0 |
Weighted average shares of common stock (diluted) | 10,177 | 9,005 | 9,995 | 8,974 |
Basic income (loss) per share: | ' | ' | ' | ' |
Income (loss) before discontinued operations | $0.05 | ($0.06) | $0.20 | ($0.05) |
Discontinued operations | $0 | ($0.02) | $0 | $0.18 |
Net income (loss) | $0.05 | ($0.08) | $0.20 | $0.13 |
Diluted income (loss) per share: | ' | ' | ' | ' |
Income (loss) before discontinued operations | $0.05 | ($0.06) | $0.18 | ($0.05) |
Discontinued operations | $0 | ($0.02) | $0 | $0.18 |
Net income (loss) | $0.05 | ($0.08) | $0.18 | $0.13 |
Business_Segments_Details
Business Segments (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 |
Revenue information shown by geographic region | ' | ' | ' | ' |
Total revenues | $9,526 | $7,881 | $27,675 | $24,631 |
United States | ' | ' | ' | ' |
Revenue information shown by geographic region | ' | ' | ' | ' |
Total revenues | 5,572 | 4,516 | 14,743 | 13,180 |
Europe | ' | ' | ' | ' |
Revenue information shown by geographic region | ' | ' | ' | ' |
Total revenues | 1,942 | 1,686 | 5,543 | 5,463 |
Rest of Americas | ' | ' | ' | ' |
Revenue information shown by geographic region | ' | ' | ' | ' |
Total revenues | 578 | 394 | 2,369 | 1,722 |
Asia/Pacific Rim | ' | ' | ' | ' |
Revenue information shown by geographic region | ' | ' | ' | ' |
Total revenues | $1,434 | $1,285 | $5,020 | $4,266 |
Business_Segments_Details_Text
Business Segments (Details Textual) | 3 Months Ended | 9 Months Ended | ||
Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 | |
country | Customer | country | country | |
Customer | country | Customer | Customer | |
Segment | ||||
Business segments (Additional Textual) [Abstract] | ' | ' | ' | ' |
Number of operating segments | 1 | ' | ' | ' |
Individual country accounted | 1 | 1 | 1 | 1 |
Company's revenues accounted | 58.50% | 57.30% | 53.30% | 53.50% |
Number of customers accounted for more than ten percent of revenue | 0 | 0 | 0 | 0 |
Maximum | ' | ' | ' | ' |
Business Segments (Textual) [Abstract] | ' | ' | ' | ' |
Customer accounted, total revenue | 10.00% | 10.00% | 10.00% | 10.00% |