IRIDEX (IRIX) 10-Q 5 May 14 2014 Q1 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	3 Months Ended
	Mar. 29, 2014	Apr. 21, 2014
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	29-Mar-14	'
Amendment Flag	'false	'
Document Fiscal Year Focus	'2014	'
Document Fiscal Period Focus	'Q1	'
Current Fiscal Year End Date	'--12-27	'
Entity Filer Category	'Smaller Reporting Company	'
Entity Common Stock, Shares Outstanding	'	9,949,429

Condensed_Consolidated_Balance

Condensed Consolidated Balance Sheets (Unaudited) (USD $)	Mar. 29, 2014	Dec. 28, 2013
In Thousands, unless otherwise specified
Current assets:	'	'
Cash and cash equivalents	$13,969	$13,444	[1]
Accounts receivable, net of allowance for doubtful accounts of $217 at March 29, 2014 and $207 at December 28, 2013	6,732	7,345	[1]
Inventories	9,858	10,605	[1]
Prepaid expenses and other current assets	730	576	[1]
Total current assets	31,289	31,970	[1]
Property and equipment, net	575	543	[1]
Intangible assets, net	296	328	[1]
Goodwill	533	533	[1]
Other long-term assets	288	303	[1]
Total assets	32,981	33,677	[1]
Current liabilities:	'	'
Accounts payable	1,770	2,278	[1]
Accrued compensation	1,398	1,891	[1]
Accrued expenses	1,335	1,592	[1]
Accrued warranty	484	468	[1]
Deferred revenue	1,084	1,133	[1]
Total current liabilities	6,071	7,362	[1]
Long-term liabilities:	'	'
Other long-term liabilities	342	461	[1]
Total liabilities	6,413	7,823	[1]
Stockholders’ equity:	'	'
Convertible preferred stock, $0.01 par value: Authorized: 2,000,000 shares; Issued and outstanding: None	'	'	[1]
Common stock, $0.01 par value: Authorized: 30,000,000 shares: Issued and outstanding 9,978,973 and 9,899,483 shares at March 29, 2014 and at December 28, 2013, respectively	105	104	[1]
Additional paid-in capital	40,897	40,671	[1]
Accumulated deficit	-14,434	-14,921	[1]
Total stockholders’ equity	26,568	25,854	[1]
Total liabilities and stockholders’ equity	$32,981	$33,677	[1]
[1]	Derived from the audited consolidated financial statements included in the Annual Report on Form 10-K filed with the SEC for the year ended December 28, 2013.

Condensed_Consolidated_Balance1

Condensed Consolidated Balance Sheets (Parenthetical) (Unaudited) (USD $)	Mar. 29, 2014	Dec. 28, 2013
In Thousands, except Share data, unless otherwise specified
Accounts receivable, allowance for doubtful accounts	$217	$207
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	'	'
Convertible preferred stock, shares outstanding	'	'
Common stock, par value	$0.01	$0.01
Common stock, shares authorized	30,000,000	30,000,000
Common stock, shares issued	9,978,973	9,899,483
Common stock, shares outstanding	9,978,973	9,899,483

Condensed_Consolidated_Stateme

Condensed Consolidated Statements of Operations (Unaudited) (USD $)	3 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Mar. 29, 2014	Mar. 30, 2013
Total revenues	$10,329	$8,939
Cost of revenues	5,274	4,708
Gross profit	5,055	4,231
Operating expenses:	'	'
Research and development	1,194	996
Sales and marketing	1,748	1,625
General and administrative	1,516	1,186
Proceeds from demutualization of insurance carrier	'	-473
Total operating expenses	4,458	3,334
Income from operations	597	897
Other expense, net	97	18
Income from operations before provision for income taxes	500	879
Provision for income taxes	13	5
Net income	$487	$874
Net income per share:	'	'
Basic	$0.05	$0.10
Diluted	$0.05	$0.09
Weighted average shares used in computing net income per common share	'	'
Basic	9,963	8,511
Diluted	10,526	9,802

Condensed_Consolidated_Stateme1

Condensed Consolidated Statements of Comprehensive Income (Unaudited) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 29, 2014	Mar. 30, 2013
Net income	$487	$874
Other comprehensive income, net of tax	'	'
Comprehensive income	$487	$874

Condensed_Consolidated_Stateme2

Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 29, 2014		Mar. 30, 2013
Operating activities:	'		'
Net income	$487		$874
Adjustments to reconcile net income to net cash provided by (used in) operating activities:	'		'
Depreciation and amortization	108		126
Change in fair value of earn-out liability	99		19
Stock-based compensation expense	244		161
Provision for doubtful accounts	10		54
Changes in operating assets and liabilities, net of assets and liabilities acquired:	'		'
Accounts receivable	603		-605
Inventories	747		-112
Prepaid expenses and other current assets	-154		6
Other long-term assets	15		-11
Accounts payable	-508		-825
Accrued compensation	-493		-121
Accrued expenses	-582		108
Accrued warranty	16		-7
Deferred revenue	-49		-61
Other long-term liabilities	102		-12
Net cash provided by (used in) operating activities	645		-406
Investing activities:	'		'
Acquisition of property and equipment	-108		-18
Payment on earn-out liability	-94		-83
Net cash used in investing activities	-202		-101
Financing activities:	'		'
Proceeds from stock option exercises	329		273
Repurchase of common stock	-247		-46
Payment of legal costs in connection with tender offer	'		-40
Net cash provided by financing activities	82		187
Net increase (decrease) in cash and cash equivalents	525		-320
Cash and cash equivalents, beginning of period	13,444	[1]	11,901
Cash and cash equivalents, end of period	13,969		11,581
Cash paid during the period for:	'		'
Income taxes	4		10
Supplemental non-cash financing activities:	'		'
Accrual for unsettled repurchases of common stock	$99		'
[1]	Derived from the audited consolidated financial statements included in the Annual Report on Form 10-K filed with the SEC for the year ended December 28, 2013.

Basis_of_Presentation

Basis of Presentation	3 Months Ended
	Mar. 29, 2014
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 28, 2013, which was filed with the Securities and Exchange Commission (“SEC”) on March 27, 2014. The results of operations for the three months ended March 29, 2014 are not necessarily indicative of the results for the year ending December 27, 2014 or any future interim period.

Summary_of_Significant_Account

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 29, 2014
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 28, 2013, which was filed with the SEC on March 27, 2014.
	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.
	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 three months ended March 29, 2014 and March 30, 2013 is as follows:
		Three Months Ended
	(in thousands)	March 29,			March 30,
		2014			2013
	Balance, beginning of period	$	1,133		$	1,004
	Additions to deferral		337			269
	Revenue recognized		(386	)		(330	)
	Balance, end of period	$	1,084		$	943
	Warranty.
	The Company generally provides a one to two year 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 three months ended March 29, 2014 and March 30, 2013 is as follows:
		Three Months Ended
	(in thousands)	March 29,			March 30,
		2014			2013
	Balance, beginning of period	$	468		$	453
	Accruals for product warranties		67			67
	Cost of warranty claims and adjustments		(51	)		(74	)
	Balance, end of period	$	484		$	446
	Recently Issued and Adopted Accounting Standards.
	In July 2013, the Financial Accounting Standards Board (“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, its adoption did not have an impact on the Company’s financial position or results of operations.

Inventories

Inventories	3 Months Ended
	Mar. 29, 2014
Inventories	'
	3. Inventories
	The components of the Company’s inventories as of March 29, 2014 and December 28, 2013 are as follows:
	(in thousands)	March 29,		December 28,
		2014		2013
	Raw materials	$	5,004	$	5,922
	Work in process		1,036		976
	Finished goods		3,818		3,707
	Total inventories	$	9,858	$	10,605

Goodwill_and_Intangible_Assets

Goodwill and Intangible Assets	3 Months Ended
	Mar. 29, 2014
Goodwill and Intangible Assets	'
	4. Goodwill and Intangible Assets
	Goodwill.
	The carrying value of goodwill was $0.5 million as of March 29, 2014 and December 28, 2013.
	Goodwill represents the excess of the purchase price over the fair value of the net tangible and identifiable intangible assets acquired in a business combination. The Company reviews goodwill for impairment on an annual basis or whenever events or changes in circumstances indicate the carrying value may not be recoverable. The Company first assesses qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step quantitative goodwill impairment test. If, after assessing the totality of circumstances, an entity determines that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, then it is required to perform the two-step impairment test. An entity is not required to calculate the fair value of a reporting unit unless the entity determines that it is more likely than not that its fair value is less than its carrying value. However, an entity also has the option to bypass the qualitative assessment for any reporting unit in any period and proceed directly to performing the first step of the two-step goodwill impairment test. The Company has determined that it has a single reporting unit for purposes of performing its goodwill impairment test. As the Company uses the market approach to assess impairment, its common stock price is an important component of the fair value calculation. If the Company’s stock price continues to experience significant price and volume fluctuations, this will impact the fair value of the reporting unit and can lead to potential impairment in future periods. The Company performed its annual impairment test during the second quarter of 2013 and determined that its goodwill was not impaired. As of March 29, 2014, the Company had not identified any factors that indicated there was an impairment of its goodwill and determined that no additional impairment analysis was then required.
	Intangible Assets.
	The following table summarizes the components of gross and net intangible asset balances:
		March 29, 2014						December 28, 2013
	(in thousands)	Gross		Accumulated		Net		Gross		Accumulated		Net		Amortization
		Carrying		Amortization		Carrying		Carrying		Amortization		Carrying		Life
		Amount				Amount		Amount				Amount
	Patents	$	720	$	600	$	120	$	720	$	572	$	148	Varies
	Customer relations		240		64		176	$	240		60		180	11.2 years
		$	960	$	664	$	296	$	960	$	632	$	328
	Amortization expense totaled $32 thousand and $65 thousand for the three months ended March 29, 2014 and March 30, 2013, 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):
	2014 (nine months)	$	12
	2015		30
	2016		52
	2017		86
	2018		16
	Thereafter		100
	Total	$	296

Fair_Value_Measurements

Fair Value Measurements	3 Months Ended
	Mar. 29, 2014
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 as of March 29, 2014 and December 28, 2013, approximate fair value because of the short maturity of these instruments.
	As of March 29, 2014 and December 28, 2013, 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 were as follows:
		March 29, 2014										December 28, 2013
		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	$	13,044			—			—	$	13,044	$	12,742		—		—	$	12,742
	Liabilities:
	Earn-out liability		—			—		$	629	$	629	$	—		—	$	624	$	624
	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 March 29, 2014.
	As of March 29, 2014		Fair Value		Valuation		Significant		Weighted
			(in thousands)		Technique		Unobservable		Average
							Input		(range)
	Earn-out liability		$629		Discounted cash flow		Projected royalties		$1,666
							(in thousands)		($414 - $1,917)
							Discount rate		21.40%
									(20.28% - 27.00%)
	A reconciliation of the changes in the Company’s earn-out liability (Level 3 liability) for the three months ended March 29, 2014 and March 30, 2013 is as follows:
			Three Months Ended
	(in thousands)		March 29,				March 30,
			2014				2013
	Balance at the beginning of the period		$	624			$	652
	Payments against earn-out			(94	)			(83	)
	Change in fair value of earn-out liability			99				19
			$	629			$	588
	The earn-out liability is included in accrued expenses and other long-term liabilities in the condensed consolidated balance sheets. Any change in the fair value adjustment is recorded to other expense in the statement of operations.

Stock_Based_Compensation

Stock Based Compensation	3 Months Ended
	Mar. 29, 2014
Stock Based Compensation	'
	6. Stock Based Compensation
	2008 Equity Incentive Plan
	For the three months ended March 29, 2014, the only active share-based compensation plan was the 2008 Equity Incentive Plan (the “Incentive Plan”). The terms of awards granted during the three months ended March 29, 2014 were consistent with those described in the consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 28, 2013.
	Summary of Stock Options
	The following table summarizes information regarding activity in our stock option plan during the three months ended March 29, 2014:
			Number of			Weighted				Aggregate
			Shares			Average				Intrinsic
						Exercise Price				Value
						Per Share				(thousands)
	Outstanding at December 28, 2013		1,102,842			$	3.97
	Granted		98,000			$	8.66
	Exercised		(84,303	)		$	3.90
	Canceled or forfeited		(2,208	)		$	4.26
	Outstanding at March 29, 2014		1,114,331			$	4.39			$	4,697
	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 $4.09 and $3.05 per share for the three months ended March 29, 2014 and March 30, 2013, 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
			March 29,				March 30,
			2014				2013
	Average risk free interest rate			1.49	%			0.59	%
	Expected life (in years)			4.5 years				4.5 years
	Dividend yield			—	%			—	%
	Average volatility			57	%			86	%
	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 ended March 29, 2014 and March 30, 2013:
			Three Months Ended
	(in thousands)		March 29,				March 30,
			2014				2013
	Cost of revenues		$	34			$	22
	Research and development			22				20
	Sales and marketing			32				22
	General and administrative			156				97
			$	244			$	161
	Approximately $17 thousand of the stock-based compensation recognized was capitalized into inventory as a component of overhead for the quarters ended March 29, 2014 and March 30, 2013, respectively.
	Information regarding stock options outstanding, vested and expected to vest and exercisable at March 29, 2014 is summarized below:
			Number of				Weighted				Weighted		Aggregate
			Shares				Average				Average		Intrinsic Value
							Exercise Price				Remaining		(thousands)
											Contractual
											Life (Years)
	Options outstanding			1,114,331			$	4.39				3.78	$	4,697
	Options vested and expected to vest			1,038,459			$	4.29				3.61	$	4,478
	Options exercisable			659,237			$	3.71				2.36	$	3,218
	The aggregate intrinsic value in the table above represents the pre-tax intrinsic value, based on the Company’s closing price as of March 28, 2014, 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 three months ended March 29, 2014 and March 30, 2013 were approximately $462 thousand and $259 thousand, respectively.
	As of March 29, 2014, there was $1.8 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 2.93 years.
	Summary of Restricted Stock Units and Awards
	Information regarding the restricted stock units activity for the three months ended March 29, 2014 is summarized below:
		Number
		of Shares
	Outstanding at December 28, 2013		269,259
	Restricted stock units granted		50,000
	Restricted stock units released		(35,000	)
	Outstanding at March 29, 2014		284,259
	The grant date fair value for restricted stock units awarded during the period was $234 thousand. The weighted average stock price on the date of grant was $4.67 per share.
	On January 4, 2014, the Company granted a restricted stock unit award for up to 50,000 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 calculated stock price (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. None of the restricted stock units will vest if the calculated stock price is less than $11.00 per share. 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 no restricted stock awards granted, vested and forfeited for the three months ended March 29, 2014.
	Stock Repurchase Program
	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. On February 27, 2014, the Board of Directors approved the extension of the plan for an additional year. For the three months ended March 29, 2014, the Company has purchased 39,813 shares at an average price of $8.69 per share. As of March 29, 2014, the Company still has the authorization to purchase up to $2.2 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.

Income_Taxes

Income Taxes	3 Months Ended
	Mar. 29, 2014
Income Taxes	'
	7. Income Taxes
	Provision for Income Tax
	The Company calculates its interim tax provision in accordance with the provisions of ASC 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 $13 thousand for the three months ended March 29, 2014 and $5 thousand for the three months ended March 30, 2013.
	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 28, 2013, the Company had a deferred tax asset of approximately $10.0 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.
	Uncertain Tax Positions
	The Company accounts for its uncertain tax positions in accordance with ASC 740. As of December 28, 2013, 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 2008 to 2013 remain open in several jurisdictions, none of which have individual significance.

Computation_of_Basic_and_Dilut

Computation of Basic and Diluted Net Income Per Common Share	3 Months Ended
	Mar. 29, 2014
Computation of Basic and Diluted Net Income Per Common Share	'
	8. Computation of Basic and Diluted Net Income 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 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. 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 March 29, 2014 and March 30, 2013, respectively, stock options to purchase 48,253 and 755,013 shares were excluded from the computation of diluted weighted average shares outstanding.
	A reconciliation of the numerator and denominator of basic and diluted net income per common share is provided as follows:
		Three Months Ended
	(in thousands, except per share amounts)	March 29,		March 30,
		2014		2013
	Numerator:
	Net income	$	487	$	874
	Denominator:
	Weighted average shares of common stock (basic)		9,963		8,511
	Effect of dilutive preferred shares		—		1,000
	Effect of dilutive stock options		371		261
	Effect of dilutive contingent shares		192		30
	Weighted average shares of common stock (diluted)		10,526		9,802
	Per share data:
	Basic net income per share	$	0.05	$	0.10
	Diluted net income per share	$	0.05	$	0.09

Business_Segments

Business Segments	3 Months Ended
	Mar. 29, 2014
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
	(in thousands)	March 29,		March 30,
		2014		2013
	United States	$	4,705	$	4,209
	Europe		2,303		1,973
	Rest of Americas		838		850
	Asia/Pacific Rim		2,483		1,907
		$	10,329	$	8,939
	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 month period, except for the United States, which accounted for 45.6% and 47.1% of revenues for the three month periods ended March 29, 2014 and March 30, 2013, respectively.
	No one customer accounted for more than 10% of total revenues for the three month periods ended March 29, 2014 and March 30, 2013, respectively.
	One customer accounted for more than 10% of accounts receivable balance as of March 29, 2014.  No one customer accounted for more than 10% of accounts receivable balance at March 30, 2013.

Subsequent_Events

Subsequent Events	3 Months Ended
	Mar. 29, 2014
Subsequent Events	'
	10. Subsequent Events
	The Company has evaluated subsequent events and has concluded that no subsequent events that require disclosure in the financial statements have occurred since the quarter ended March 29, 2014.

Summary_of_Significant_Account1

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 29, 2014
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.
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 three months ended March 29, 2014 and March 30, 2013 is as follows:
		Three Months Ended
	(in thousands)	March 29,			March 30,
		2014			2013
	Balance, beginning of period	$	1,133		$	1,004
	Additions to deferral		337			269
	Revenue recognized		(386	)		(330	)
	Balance, end of period	$	1,084		$	943
Warranty	'
	Warranty.
	The Company generally provides a one to two year 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 three months ended March 29, 2014 and March 30, 2013 is as follows:
		Three Months Ended
	(in thousands)	March 29,			March 30,
		2014			2013
	Balance, beginning of period	$	468		$	453
	Accruals for product warranties		67			67
	Cost of warranty claims and adjustments		(51	)		(74	)
	Balance, end of period	$	484		$	446
Recently Issued and Adopted Accounting Standards	'
	Recently Issued and Adopted Accounting Standards.
	In July 2013, the Financial Accounting Standards Board (“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, its adoption did not have an impact on the Company’s financial position or results of operations.

Summary_of_Significant_Account2

Summary of Significant Accounting Policies (Tables)	3 Months Ended
	Mar. 29, 2014
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 three months ended March 29, 2014 and March 30, 2013 is as follows:
		Three Months Ended
	(in thousands)	March 29,			March 30,
		2014			2013
	Balance, beginning of period	$	1,133		$	1,004
	Additions to deferral		337			269
	Revenue recognized		(386	)		(330	)
	Balance, end of period	$	1,084		$	943
Reconciliation of the Changes in the Company's Warranty Liability	'
	A reconciliation of the changes in the Company’s warranty liability for the three months ended March 29, 2014 and March 30, 2013 is as follows:
		Three Months Ended
	(in thousands)	March 29,			March 30,
		2014			2013
	Balance, beginning of period	$	468		$	453
	Accruals for product warranties		67			67
	Cost of warranty claims and adjustments		(51	)		(74	)
	Balance, end of period	$	484		$	446

Inventories_Tables

Inventories (Tables)	3 Months Ended
	Mar. 29, 2014
Components of Inventories	'
	The components of the Company’s inventories as of March 29, 2014 and December 28, 2013 are as follows:
	(in thousands)	March 29,		December 28,
		2014		2013
	Raw materials	$	5,004	$	5,922
	Work in process		1,036		976
	Finished goods		3,818		3,707
	Total inventories	$	9,858	$	10,605

Goodwill_and_Intangible_Assets1

Goodwill and Intangible Assets (Tables)	3 Months Ended
	Mar. 29, 2014
Schedule of Intangible Assets	'
	The following table summarizes the components of gross and net intangible asset balances:
		March 29, 2014						December 28, 2013
	(in thousands)	Gross		Accumulated		Net		Gross		Accumulated		Net		Amortization
		Carrying		Amortization		Carrying		Carrying		Amortization		Carrying		Life
		Amount				Amount		Amount				Amount
	Patents	$	720	$	600	$	120	$	720	$	572	$	148	Varies
	Customer relations		240		64		176	$	240		60		180	11.2 years
		$	960	$	664	$	296	$	960	$	632	$	328
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):
	2014 (nine months)	$	12
	2015		30
	2016		52
	2017		86
	2018		16
	Thereafter		100
	Total	$	296

Fair_Value_Measurements_Tables

Fair Value Measurements (Tables)	3 Months Ended
	Mar. 29, 2014
Financial Assets and Liabilities Measured and Recognized at Fair Value on a Recurring Basis	'
	As of March 29, 2014 and December 28, 2013, 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 were as follows:
		March 29, 2014										December 28, 2013
		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	$	13,044			—			—	$	13,044	$	12,742		—		—	$	12,742
	Liabilities:
	Earn-out liability		—			—		$	629	$	629	$	—		—	$	624	$	624
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 March 29, 2014.
	As of March 29, 2014		Fair Value		Valuation		Significant		Weighted
			(in thousands)		Technique		Unobservable		Average
							Input		(range)
	Earn-out liability		$629		Discounted cash flow		Projected royalties		$1,666
							(in thousands)		($414 - $1,917)
							Discount rate		21.40%
									(20.28% - 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 three months ended March 29, 2014 and March 30, 2013 is as follows:
			Three Months Ended
	(in thousands)		March 29,				March 30,
			2014				2013
	Balance at the beginning of the period		$	624			$	652
	Payments against earn-out			(94	)			(83	)
	Change in fair value of earn-out liability			99				19
			$	629			$	588

Stock_Based_Compensation_Table

Stock Based Compensation (Tables)	3 Months Ended
	Mar. 29, 2014
Activity in Stock Option Plan	'
	The following table summarizes information regarding activity in our stock option plan during the three months ended March 29, 2014:
			Number of			Weighted				Aggregate
			Shares			Average				Intrinsic
						Exercise Price				Value
						Per Share				(thousands)
	Outstanding at December 28, 2013		1,102,842			$	3.97
	Granted		98,000			$	8.66
	Exercised		(84,303	)		$	3.90
	Canceled or forfeited		(2,208	)		$	4.26
	Outstanding at March 29, 2014		1,114,331			$	4.39			$	4,697
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
			March 29,				March 30,
			2014				2013
	Average risk free interest rate			1.49	%			0.59	%
	Expected life (in years)			4.5 years				4.5 years
	Dividend yield			—	%			—	%
	Average volatility			57	%			86	%
Stock-Based Compensation Expense	'
	The following table shows stock-based compensation expense included in the condensed consolidated statements of operations for the three months ended March 29, 2014 and March 30, 2013:
			Three Months Ended
	(in thousands)		March 29,				March 30,
			2014				2013
	Cost of revenues		$	34			$	22
	Research and development			22				20
	Sales and marketing			32				22
	General and administrative			156				97
			$	244			$	161
Stock Options Outstanding, Exercisable and Expected to Vest	'
	Information regarding stock options outstanding, vested and expected to vest and exercisable at March 29, 2014 is summarized below:
			Number of				Weighted				Weighted		Aggregate
			Shares				Average				Average		Intrinsic Value
							Exercise Price				Remaining		(thousands)
											Contractual
											Life (Years)
	Options outstanding			1,114,331			$	4.39				3.78	$	4,697
	Options vested and expected to vest			1,038,459			$	4.29				3.61	$	4,478
	Options exercisable			659,237			$	3.71				2.36	$	3,218
Restricted Stock Units Activity	'
	Information regarding the restricted stock units activity for the three months ended March 29, 2014 is summarized below:
		Number
		of Shares
	Outstanding at December 28, 2013		269,259
	Restricted stock units granted		50,000
	Restricted stock units released		(35,000	)
	Outstanding at March 29, 2014		284,259

Computation_of_Basic_and_Dilut1

Computation of Basic and Diluted Net Income Per Common Share (Tables)	3 Months Ended
	Mar. 29, 2014
Reconciliation of the Numerator and Denominator of Basic and Diluted Net Income Per Common Share	'
	A reconciliation of the numerator and denominator of basic and diluted net income per common share is provided as follows:
		Three Months Ended
	(in thousands, except per share amounts)	March 29,		March 30,
		2014		2013
	Numerator:
	Net income	$	487	$	874
	Denominator:
	Weighted average shares of common stock (basic)		9,963		8,511
	Effect of dilutive preferred shares		—		1,000
	Effect of dilutive stock options		371		261
	Effect of dilutive contingent shares		192		30
	Weighted average shares of common stock (diluted)		10,526		9,802
	Per share data:
	Basic net income per share	$	0.05	$	0.10
	Diluted net income per share	$	0.05	$	0.09

Business_Segments_Tables

Business Segments (Tables)	3 Months Ended
	Mar. 29, 2014
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
	(in thousands)	March 29,		March 30,
		2014		2013
	United States	$	4,705	$	4,209
	Europe		2,303		1,973
	Rest of Americas		838		850
	Asia/Pacific Rim		2,483		1,907
		$	10,329	$	8,939

Summary_of_Significant_Account3

Summary of Significant Accounting Policies (Details) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 29, 2014		Mar. 30, 2013
Reconciliation of the changes in the Company's deferred revenue balance	'		'
Balance, beginning of period	$1,133	[1]	$1,004
Additions to deferral	337		269
Revenue recognized	-386		-330
Balance, end of period	$1,084		$943
[1]	Derived from the audited consolidated financial statements included in the Annual Report on Form 10-K filed with the SEC for the year ended December 28, 2013.

Summary_of_Significant_Account4

Summary of Significant Accounting Policies (Details 1) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 29, 2014		Mar. 30, 2013
Reconciliation of the changes in the Company's warranty liability	'		'
Balance, beginning of period	$468	[1]	$453
Accruals for product warranties	67		67
Cost of warranty claims and adjustments	-51		-74
Balance, end of period	$484		$446
[1]	Derived from the audited consolidated financial statements included in the Annual Report on Form 10-K filed with the SEC for the year ended December 28, 2013.

Inventories_Details

Inventories (Details) (USD $)	Mar. 29, 2014	Dec. 28, 2013
In Thousands, unless otherwise specified
Components of inventories	'	'
Raw materials	$5,004	$5,922
Work in process	1,036	976
Finished goods	3,818	3,707
Total inventories	$9,858	$10,605	[1]
[1]	Derived from the audited consolidated financial statements included in the Annual Report on Form 10-K filed with the SEC for the year ended December 28, 2013.

Goodwill_and_Intangible_Assets2

Goodwill and Intangible Assets (Details Textual) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 29, 2014	Mar. 30, 2013	Dec. 28, 2013
Goodwill and Intangible Assets (Textual) [Abstract]	'	'	'
Carrying value of goodwill	$533	'	$533	[1]
Amortization expense	$32	$65	'
[1]	Derived from the audited consolidated financial statements included in the Annual Report on Form 10-K filed with the SEC for the year ended December 28, 2013.

Goodwill_and_Intangible_Assets3

Goodwill and Intangible Assets (Details) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 29, 2014	Dec. 28, 2013
Schedule of Intangible Assets	'	'
Gross Carrying Amount	$960	$960
Accumulated Amortization	664	632
Net Carrying Amount	296	328	[1]
Patents	'	'
Schedule of Intangible Assets	'	'
Gross Carrying Amount	720	720
Accumulated Amortization	600	572
Net Carrying Amount	120	148
Customer Relations	'	'
Schedule of Intangible Assets	'	'
Gross Carrying Amount	240	240
Accumulated Amortization	64	60
Net Carrying Amount	$176	$180
Amortization Life	'11 years 2 months 12 days	'
[1]	Derived from the audited consolidated financial statements included in the Annual Report on Form 10-K filed with the SEC for the year ended December 28, 2013.

Goodwill_and_Intangible_Assets4

Goodwill and Intangible Assets (Details 1) (USD $)	Mar. 29, 2014	Dec. 28, 2013
In Thousands, unless otherwise specified
Future estimated amortization expense	'	'
2014 (nine months)	$12	'
2015	30	'
2016	52	'
2017	86	'
2018	16	'
Thereafter	100	'
Net Carrying Amount	$296	$328	[1]
[1]	Derived from the audited consolidated financial statements included in the Annual Report on Form 10-K filed with the SEC for the year ended December 28, 2013.

Fair_Value_Measurements_Detail

Fair Value Measurements (Details) (USD $)	Mar. 29, 2014	Dec. 28, 2013
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	$629	$624
Level 1 | Earn-Out liability	'	'
Financial assets and liabilities measured and recognized at fair value on a recurring basis	'	'
Liabilities, Fair Value Measurements	'	'
Level 2 | Earn-Out liability	'	'
Financial assets and liabilities measured and recognized at fair value on a recurring basis	'	'
Liabilities, Fair Value Measurements	'	'
Level 3 | Earn-Out liability	'	'
Financial assets and liabilities measured and recognized at fair value on a recurring basis	'	'
Liabilities, Fair Value Measurements	629	624
Money market funds	'	'
Financial assets and liabilities measured and recognized at fair value on a recurring basis	'	'
Assets, Fair Value Measurements	13,044	12,742
Money market funds | Level 1	'	'
Financial assets and liabilities measured and recognized at fair value on a recurring basis	'	'
Assets, Fair Value Measurements	13,044	12,742
Money market funds | Level 2	'	'
Financial assets and liabilities measured and recognized at fair value on a recurring basis	'	'
Assets, Fair Value Measurements	'	'
Money market funds | Level 3	'	'
Financial assets and liabilities measured and recognized at fair value on a recurring basis	'	'
Assets, Fair Value Measurements	'	'

Fair_Value_Measurements_Detail1

Fair Value Measurements (Details 1) (Level 3, Discounted Cash Flow, USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 29, 2014
Quantitative information about the inputs and valuation methodologies used for fair value measurements	'
Fair Value, Earn-out liability	$629
Valuation Technique, Earn-out liability	'Discounted cash flow
Weighted Average, Projected royalties	1,666
Weighted Average, Discount rate	21.40%
Minimum	'
Quantitative information about the inputs and valuation methodologies used for fair value measurements	'
Weighted Average, Projected royalties	414
Weighted Average, Discount rate	20.28%
Maximum	'
Quantitative information about the inputs and valuation methodologies used for fair value measurements	'
Weighted Average, Projected royalties	$1,917
Weighted Average, Discount rate	27.00%

Fair_Value_Measurements_Detail2

Fair Value Measurements (Details 2) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 29, 2014	Mar. 30, 2013
Reconciliation of the changes in the Company's earn-out - cash (Level 3 liabilities) balance	'	'
Balance at the beginning of the period	$624	$652
Payments against earn-out	-94	-83
Change in fair value of earn-out liability	99	19
Balance at the end of the period	$629	$588

Stock_Based_Compensation_Detai

Stock Based Compensation (Details) (USD $)	3 Months Ended
In Thousands, except Share data, unless otherwise specified	Mar. 29, 2014
Activity in stock option plan	'
Outstanding, Number of Shares, Beginning Balance	1,102,842
Number of Shares, Options Granted	98,000
Number of Shares, Options Exercised	-84,303
Number of Shares, Options Cancelled or forfeited	-2,208
Outstanding, Number of Shares, Ending Balance	1,114,331
Weighted Average Exercise Price Per Share, Beginning Balance	$3.97
Weighted Average Exercise Price Per Share , Options Granted	$8.66
Weighted Average Exercise Price Per Share, Options Exercised	$3.90
Weighted Average Exercise Price Per Share, Options Cancelled or forfeited	$4.26
Weighted Average Exercise Price Per Share, Ending Balance	$4.39
Aggregate Intrinsic Value, Beginning Balance	'
Aggregate Intrinsic Value, Ending Balance	$4,697

Stock_Based_Compensation_Detai1

Stock Based Compensation (Details Textual) (USD $)	1 Months Ended		3 Months Ended		0 Months Ended	3 Months Ended
	Feb. 28, 2013	Feb. 29, 2012	Mar. 29, 2014	Mar. 30, 2013	Jan. 04, 2014	Mar. 29, 2014	Mar. 29, 2014	Mar. 29, 2014
					Restricted stock units	Restricted stock units	Restricted Stock Awards	Maximum
								Restricted stock units
Stock Based Compensation (Additional Textual) [Abstract]	'	'	'	'	'	'	'	'
Weighted-average grant date fair value of the options granted	'	'	$4.09	$3.05	'	'	'	'
Stock-based compensation capitalized into inventory	'	'	$17,000	$17,000	'	'	'	'
Total intrinsic value of options exercised	'	'	462,000	259,000	'	'	'	'
Total unrecognized compensation cost, net of expected forfeitures, related to non-vested share-based compensation arrangements under the Incentive Plan	'	'	1,800,000	'	'	'	'	'
Compensation cost recognition, weighted average period (years)	'	'	'2 years 11 months 5 days	'	'	'	'	'
Weighted grant date fair value of restricted stock units granted	'	'	234,000	'	'	'	'	'
Weighted-average grant date fair value of restricted stock units granted	'	'	$4.67	'	'	'	'	'
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	'	'	'	'	'	'
Stock repurchase, shares	'	'	39,813	'	'	'	'	'
Shares repurchased price, per share	'	'	$8.69	'	'	'	'	'
Common shares under the stock repurchase program	'	'	$2,200,000	'	'	'	'	'
Dividend yield	'	'	0.00%	0.00%	'	'	'	'
Stock Based Compensation (Textual) [Abstract]	'	'	'	'	'	'	'	'
Restricted stock units granted	'	'	'	'	50,000	50,000	'	'
Restricted stock units, calculated stock price	'	'	'	'	'	'	'	$11
Restricted stock vested during the period	'	'	'	'	'	35,000	0	'
Restricted stock forfeited during the period	'	'	'	'	'	'	0	'
Restricted stock awards granted	'	'	'	'	'	'	0	'

Stock_Based_Compensation_Detai2

Stock Based Compensation (Details 1)	3 Months Ended
	Mar. 29, 2014	Mar. 30, 2013
Weighted average assumptions for fair value estimate of stock-based awards (options)	'	'
Average risk free interest rate	1.49%	0.59%
Expected life (in years)	'4 years 6 months	'4 years 6 months
Dividend yield	0.00%	0.00%
Average volatility	57.00%	86.00%

Stock_Based_Compensation_Detai3

Stock Based Compensation (Details 2) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 29, 2014	Mar. 30, 2013
Stock-based compensation expense	'	'
Stock based compensation expense	$244	$161
Cost of revenues	'	'
Stock-based compensation expense	'	'
Stock based compensation expense	34	22
Research and development	'	'
Stock-based compensation expense	'	'
Stock based compensation expense	22	20
Sales and marketing	'	'
Stock-based compensation expense	'	'
Stock based compensation expense	32	22
General and administrative	'	'
Stock-based compensation expense	'	'
Stock based compensation expense	$156	$97

Stock_Based_Compensation_Detai4

Stock Based Compensation (Details 3) (USD $)	3 Months Ended
In Thousands, except Share data, unless otherwise specified	Mar. 29, 2014	Dec. 28, 2013
Stock options outstanding, exercisable and expected to vest	'	'
Options outstanding, Number of Shares	1,114,331	1,102,842
Options outstanding, Weighted Average Exercise Price	$4.39	$3.97
Options outstanding, Weighted Average Remaining Contractual Life (years)	'3 years 9 months 11 days	'
Options outstanding, Aggregate Intrinsic Value	$4,697	'
Options vested and expected to vest, Number of Shares	1,038,459	'
Options vested and expected to vest, Weighted Average Exercise Price	$4.29	'
Options vested and expected to vest, Weighted Average Remaining Contractual Life (years)	'3 years 7 months 10 days	'
Options vested and expected to vest, Aggregate Intrinsic Value	4,478	'
Options exercisable, Number of Shares	659,237	'
Options exercisable, Weighted Average Exercise Price	$3.71	'
Options exercisable, Weighted Average Remaining Contractual Life (years)	'2 years 4 months 10 days	'
Options exercisable, Aggregate Intrinsic Value	$3,218	'

Stock_Based_Compensation_Detai5

Stock Based Compensation (Details 4) (Restricted stock units)	0 Months Ended	3 Months Ended
	Jan. 04, 2014	Mar. 29, 2014
Restricted stock units	'	'
Restricted stock units activity	'	'
Outstanding at December 28, 2013	'	269,259
Restricted stock units granted	50,000	50,000
Restricted stock units released	'	-35,000
Outstanding at March 29, 2014	'	284,259

Income_Taxes_Details_Textual

Income Taxes (Details Textual) (USD $)	3 Months Ended
	Mar. 29, 2014	Mar. 30, 2013	Dec. 28, 2013
Income Taxes (Textual) [Abstract]	'	'	'
Provision for income taxes	$13,000	$5,000	'
Deferred Tax Assets	'	'	10,000,000
Unrecognized tax benefits recognition impact on income tax rate	'	'	$1,000,000

Computation_of_Basic_and_Dilut2

Computation of Basic and Diluted Net Income Per Common Share (Details Textual) (Stock option)	3 Months Ended
	Mar. 29, 2014	Mar. 30, 2013
Stock option	'	'
Computation of Basic and Diluted Net Income Per Common Share (Textual) [Abstract]	'	'
Stock options to purchase shares excluded from the computation of diluted weighted average shares outstanding	48,253	755,013

Computation_of_Basic_and_Dilut3

Computation of Basic and Diluted Net Income Per Common Share (Details) (USD $)	3 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Mar. 29, 2014	Mar. 30, 2013
Numerator:	'	'
Net income	$487	$874
Denominator:	'	'
Weighted average shares of common stock (basic)	9,963	8,511
Effect of dilutive preferred shares	'	1,000
Effect of dilutive stock options	371	261
Effect of dilutive contingent shares	192	30
Weighted average shares of common stock (diluted)	10,526	9,802
Per share data:	'	'
Basic net income per share	$0.05	$0.10
Diluted net income per share	$0.05	$0.09

Business_Segments_Details_Text

Business Segments (Details Textual)	3 Months Ended
	Mar. 29, 2014	Mar. 30, 2013
	Customer	Customer
	Country	Segment
	Segment	Country
Business segments (Additional Textual) [Abstract]	'	'
Number of operating segments	1	1
Number of country accounted for more than ten percent of revenue	1	1
Number of customers accounted for more than ten percent of revenue	0	0
Number of customers accounted for more than ten percent of account receivable	1	0
Maximum | Revenues	'	'
Business Segments (Textual) [Abstract]	'	'
Customer accounted, percentage	10.00%	10.00%
Maximum | Accounts Receivable	'	'
Business Segments (Textual) [Abstract]	'	'
Customer accounted, percentage	'	10.00%
Minimum | Accounts Receivable	'	'
Business Segments (Textual) [Abstract]	'	'
Customer accounted, percentage	10.00%	'
United States	'	'
Business segments (Additional Textual) [Abstract]	'	'
Percentage of revenues accounted	45.60%	47.10%

Business_Segments_Details

Business Segments (Details) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 29, 2014	Mar. 30, 2013
Revenue information shown by geographic region	'	'
Total revenues	$10,329	$8,939
United States	'	'
Revenue information shown by geographic region	'	'
Total revenues	4,705	4,209
Europe	'	'
Revenue information shown by geographic region	'	'
Total revenues	2,303	1,973
Rest of Americas	'	'
Revenue information shown by geographic region	'	'
Total revenues	838	850
Asia/Pacific Rim	'	'
Revenue information shown by geographic region	'	'
Total revenues	$2,483	$1,907