Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 27, 2014 | Oct. 20, 2014 | |
Document And Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'IRIDEX CORP | ' |
Entity Central Index Key | '0001006045 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 27-Sep-14 | ' |
Amendment Flag | 'false | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Current Fiscal Year End Date | '--01-03 | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Common Stock, Shares Outstanding | ' | 9,841,749 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (Unaudited) (USD $) | Sep. 27, 2014 | Dec. 28, 2013 | |
In Thousands, unless otherwise specified | |||
Current assets: | ' | ' | |
Cash and cash equivalents | $13,042 | $13,444 | [1] |
Accounts receivable, net of allowance for doubtful accounts of $186 as of September 27, 2014 and $207 as of December 28, 2013 | 7,578 | 7,345 | [1] |
Inventories | 9,604 | 10,605 | [1] |
Prepaid expenses and other current assets | 548 | 576 | [1] |
Total current assets | 30,772 | 31,970 | [1] |
Property and equipment, net | 748 | 543 | [1] |
Intangible assets, net | 288 | 328 | [1] |
Goodwill | 533 | 533 | [1] |
Other long-term assets | 238 | 303 | [1] |
Total assets | 32,579 | 33,677 | [1] |
Current liabilities: | ' | ' | |
Accounts payable | 1,842 | 2,278 | [1] |
Accrued compensation | 1,502 | 1,891 | [1] |
Accrued expenses | 1,456 | 1,592 | [1] |
Accrued warranty | 538 | 468 | [1] |
Deferred revenue | 1,175 | 1,133 | [1] |
Total current liabilities | 6,513 | 7,362 | [1] |
Long-term liabilities: | ' | ' | |
Other long-term liabilities | 445 | 461 | [1] |
Total liabilities | 6,958 | 7,823 | [1] |
Stockholders’ equity: | ' | ' | |
Common stock, $0.01 par value: Authorized: 30, 000, 000 shares: Issued and outstanding 9,839,959 and 9,899,483 shares as of September 27, 2014 and as of December 28, 2013, respectively | 107 | 104 | [1] |
Additional paid-in capital | 39,161 | 40,671 | [1] |
Accumulated deficit | -13,647 | -14,921 | [1] |
Total stockholders’ equity | 25,621 | 25,854 | [1] |
Total liabilities and stockholders’ equity | $32,579 | $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 $) | Sep. 27, 2014 | Dec. 28, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Statement Of Financial Position [Abstract] | ' | ' |
Accounts receivable, allowance for doubtful accounts | $186 | $207 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 30,000,000 | 30,000,000 |
Common stock, shares issued | 9,839,959 | 9,899,483 |
Common stock, shares outstanding | 9,839,959 | 9,899,483 |
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. 27, 2014 | Sep. 28, 2013 | Sep. 27, 2014 | Sep. 28, 2013 |
Income Statement [Abstract] | ' | ' | ' | ' |
Total revenues | $10,118 | $9,526 | $31,036 | $27,675 |
Cost of revenues | 4,969 | 4,802 | 15,532 | 14,238 |
Gross profit | 5,149 | 4,724 | 15,504 | 13,437 |
Operating expenses: | ' | ' | ' | ' |
Research and development | 1,096 | 923 | 3,596 | 2,803 |
Sales and marketing | 1,980 | 1,869 | 5,784 | 5,340 |
General and administrative | 1,467 | 1,267 | 4,521 | 3,690 |
Proceeds from demutualization of insurance carrier | ' | ' | ' | -473 |
Total operating expenses | 4,543 | 4,059 | 13,901 | 11,360 |
Income from operations | 606 | 665 | 1,603 | 2,077 |
Other expense, net | 112 | 85 | 300 | 200 |
Income from operations before provision for income taxes | 494 | 580 | 1,303 | 1,877 |
Provision for income taxes | 4 | 50 | 29 | 58 |
Net income | $490 | $530 | $1,274 | $1,819 |
Net income per share: | ' | ' | ' | ' |
Basic | $0.05 | $0.05 | $0.13 | $0.20 |
Diluted | $0.05 | $0.05 | $0.12 | $0.18 |
Weighted average shares used in computing net income per common share | ' | ' | ' | ' |
Basic | 9,869 | 9,796 | 9,918 | 9,044 |
Diluted | 10,255 | 10,177 | 10,397 | 9,995 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 27, 2014 | Sep. 28, 2013 | Sep. 27, 2014 | Sep. 28, 2013 |
Statement Of Income And Comprehensive Income [Abstract] | ' | ' | ' | ' |
Net income | $490 | $530 | $1,274 | $1,819 |
Other comprehensive income, net of tax | 0 | 0 | 0 | 0 |
Comprehensive income | $490 | $530 | $1,274 | $1,819 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 27, 2014 | Sep. 28, 2013 | |
Operating activities: | ' | ' | |
Net income | $1,274 | $1,819 | |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' | |
Depreciation and amortization | 307 | 364 | |
Change in fair value of earn-out liability | 303 | 181 | |
Stock-based compensation expense | 722 | 511 | |
Provision for doubtful accounts | 49 | 60 | |
Changes in operating assets and liabilities: | ' | ' | |
Accounts receivable | -282 | -323 | |
Inventories | 1,001 | -1,963 | |
Prepaid expenses and other current assets | 28 | 595 | |
Other long-term assets | 65 | 54 | |
Accounts payable | -436 | -28 | |
Accrued compensation | -389 | -25 | |
Accrued expenses | -73 | 35 | |
Accrued warranty | 70 | 19 | |
Deferred revenue | 42 | 58 | |
Other long-term liabilities | -21 | ' | |
Net cash provided by operating activities | 2,660 | 1,357 | |
Investing activities: | ' | ' | |
Acquisition of property and equipment | -472 | -235 | |
Payment on earn-out liability | -361 | -287 | |
Net cash used in investing activities | -833 | -522 | |
Financing activities: | ' | ' | |
Proceeds from stock option exercises | 1,182 | 1,077 | |
Repurchase of common stock | -3,411 | -194 | |
Payment of legal costs in connection with tender offer | ' | -40 | |
Net cash (used in) provided by financing activities | -2,229 | 843 | |
Net cash provided by investing activities from discontinued operations | ' | 510 | |
Net cash provided by discontinued operations | ' | 510 | |
Net (decrease) increase in cash and cash equivalents | -402 | 2,188 | |
Cash and cash equivalents, beginning of period | 13,444 | [1] | 11,901 |
Cash and cash equivalents, end of period | 13,042 | 14,089 | |
Cash paid during the period for: | ' | ' | |
Income taxes | 47 | 12 | |
Supplemental non-cash financing activities: | ' | ' | |
Preferred stock conversion into common stock | ' | $5 | |
[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 | 9 Months Ended |
Sep. 27, 2014 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | ' |
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 and nine months ended September 27, 2014 are not necessarily indicative of the results for the year ending January 3, 2015 or any future interim period. The three and nine month periods ended September 27, 2014 and September 28, 2013, each had 13 and 39 weeks, respectively. For purposes of reporting the financial results, the Company’s fiscal years end on the Saturday closest to the end of December. The year ended December 28, 2013 is referred to as fiscal year 2013 or fiscal 2013, whereas the current fiscal year 2014 or fiscal 2014 will end on January 3, 2015. Periodically, the Company adds a 53rd week to a year in order to end that year on the Saturday closest to the end of December. Fiscal 2013 contains 52 weeks or 364 days and fiscal 2014 contains 53 weeks or 371 days, respectively. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 9 Months Ended | |||||||
Sep. 27, 2014 | ||||||||
Accounting Policies [Abstract] | ' | |||||||
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 unaudited condensed 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 unaudited condensed 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 collectibility 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 27, 2014 and September 28, 2013 is as follows: | ||||||||
Nine Months Ended | ||||||||
(in thousands) | September 27, | September 28, | ||||||
2014 | 2013 | |||||||
Balance, beginning of period | $ | 1,133 | $ | 1,004 | ||||
Additions to deferral | 1,095 | 985 | ||||||
Revenue recognized | (1,053 | ) | (927 | ) | ||||
Balance, end of period | $ | 1,175 | $ | 1,062 | ||||
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 nine months ended September 27, 2014 and September 28, 2013 is as follows: | ||||||||
Nine Months Ended | ||||||||
(in thousands) | September 27, | September 28, | ||||||
2014 | 2013 | |||||||
Balance, beginning of period | $ | 468 | $ | 453 | ||||
Accruals for product warranties | 207 | 162 | ||||||
Cost of warranty claims and adjustments | (137 | ) | (143 | ) | ||||
Balance, end of period | $ | 538 | $ | 472 | ||||
Recently Issued and Adopted Accounting Standards. | ||||||||
In May 2014, as part of its ongoing efforts to assist in the convergence of US GAAP and International Financial Reporting Standards (“IFRS”), the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers.” The new guidance sets forth a new five-step revenue recognition model which replaces the prior revenue recognition guidance in its entirety and is intended to eliminate numerous industry-specific pieces of revenue recognition guidance that have historically existed in US GAAP. The underlying principle of the new standard is that a business or other organization will recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects what it expects in exchange for the goods or services. The standard also requires more detailed disclosures and provides additional guidance for transactions that were not addressed completely in the prior accounting guidance. The ASU provides alternative methods of initial adoption and is effective for annual and interim periods beginning after December 15, 2016. We are currently evaluating the impact that this standard will have on our consolidated financial statements. | ||||||||
In June 2014, the FASB issued ASU 2014-12, “Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period (a consensus of the FASB Emerging Issues Task Force)”. The ASU clarifies that entities should treat performance targets that can be met after the requisite service period of a share-based payment award as performance conditions that affect vesting. Therefore, an entity would not record compensation expense (measured as of the grant date without taking into account the effect of the performance target) related to an award for which transfer to the employee is contingent on the entity’s satisfaction of a performance target until it becomes probable that the performance target will be met. The ASU does not contain any new disclosure requirements. For all entities, the ASU is effective for reporting periods beginning after December 15, 2015. Early adoption is permitted. We expect to adopt this standard in fiscal 2016 and do not expect the adoption of this standard to have a material impact on our consolidated financial statements. | ||||||||
In August 2014, the FASB issued ASU No. 2014-15, “Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern”, to provide guidance on management’s responsibility in evaluating whether there is substantial doubt about a company’s ability to continue as a going concern and to provide related footnote disclosures. ASU 2014-15 is effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Since ASU 2014-15 only impacts financial statement disclosure requirements regarding whether there is substantial doubt about an entity’s ability to continue as a going concern, we do not expect its adoption to have an impact on our consolidated financial statements. |
Inventories
Inventories | 9 Months Ended | |||||||
Sep. 27, 2014 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Inventories | ' | |||||||
3. Inventories | ||||||||
The components of the Company’s inventories as of September 27, 2014 and December 28, 2013 are as follows: | ||||||||
(in thousands) | September 27, | December 28, | ||||||
2014 | 2013 | |||||||
Raw materials | $ | 4,281 | $ | 5,922 | ||||
Work in process | 1,742 | 976 | ||||||
Finished goods | 3,581 | 3,707 | ||||||
Total inventories | $ | 9,604 | $ | 10,605 | ||||
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets | 9 Months Ended | ||||||||||||||||||||||||||
Sep. 27, 2014 | |||||||||||||||||||||||||||
Goodwill And Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||||||||||||
Goodwill and Intangible Assets | ' | ||||||||||||||||||||||||||
4. Goodwill and Intangible Assets | |||||||||||||||||||||||||||
Goodwill. | |||||||||||||||||||||||||||
The carrying value of goodwill was $0.5 million as of September 27, 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 ended June 28, 2014 and determined that its goodwill was not impaired. As of September 27, 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: | |||||||||||||||||||||||||||
27-Sep-14 | 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 | 72 | 168 | $ | 240 | 60 | 180 | 10.5 years | |||||||||||||||||||
$ | 960 | $ | 672 | $ | 288 | $ | 960 | $ | 632 | $ | 328 | ||||||||||||||||
Amortization expense totaled $40 thousand and $172 thousand for the nine months ended September 27, 2014 and September 28, 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 (three months) | $ | 4 | |||||||||||||||||||||||||
2015 | 30 | ||||||||||||||||||||||||||
2016 | 52 | ||||||||||||||||||||||||||
2017 | 86 | ||||||||||||||||||||||||||
2018 | 16 | ||||||||||||||||||||||||||
Thereafter | 100 | ||||||||||||||||||||||||||
Total | $ | 288 | |||||||||||||||||||||||||
Fair_Value_Measurements
Fair Value Measurements | 9 Months Ended | |||||||||||||||||||||||||||||
Sep. 27, 2014 | ||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||||||||||||||||
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 September 27, 2014 and December 28, 2013, approximate fair value because of the short maturity of these instruments. | ||||||||||||||||||||||||||||||
As of September 27, 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: | ||||||||||||||||||||||||||||||
27-Sep-14 | 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 | $ | 11,846 | — | — | $ | 11,846 | $ | 12,742 | — | — | $ | 12,742 | ||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||
Earn-out liability | — | — | $ | 566 | $ | 566 | $ | — | — | $ | 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 as additional information 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 27, 2014. | ||||||||||||||||||||||||||||||
As of September 27, 2014 | Fair Value | Valuation | Significant | Weighted | ||||||||||||||||||||||||||
(in thousands) | Technique | Unobservable | Average | |||||||||||||||||||||||||||
Input | (range) | |||||||||||||||||||||||||||||
Earn-out liability | $ | 566 | Discounted cash flow | Projected royalties | $1,474 | |||||||||||||||||||||||||
(in thousands) | ($414 - $1,715) | |||||||||||||||||||||||||||||
Discount rate | 21.71% | |||||||||||||||||||||||||||||
(20.50% - 27.00%) | ||||||||||||||||||||||||||||||
A reconciliation of the changes in the Company’s earn-out liability (Level 3 liability) for the nine months ended September 27, 2014 and September 28, 2013 is as follows: | ||||||||||||||||||||||||||||||
Nine Months Ended | ||||||||||||||||||||||||||||||
(in thousands) | September 27, | September 28, | ||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||
Balance at the beginning of the period | $ | 624 | $ | 652 | ||||||||||||||||||||||||||
Payments against earn-out | (361 | ) | (287 | ) | ||||||||||||||||||||||||||
Change in fair value of earn-out liability | 303 | 181 | ||||||||||||||||||||||||||||
Balance at the end of the period | $ | 566 | $ | 546 | ||||||||||||||||||||||||||
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 condensed consolidated statements of operations. |
Stock_Based_Compensation
Stock Based Compensation | 9 Months Ended | |||||||||||||||
Sep. 27, 2014 | ||||||||||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | |||||||||||||||
Stock Based Compensation | ' | |||||||||||||||
6. Stock Based Compensation | ||||||||||||||||
2008 Equity Incentive Plan. | ||||||||||||||||
For the nine months ended September 27, 2014, 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 27, 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 nine months ended September 27, 2014: | ||||||||||||||||
Number of | Weighted | Aggregate | ||||||||||||||
Shares | Average | Intrinsic | ||||||||||||||
Exercise Price | Value | |||||||||||||||
Per Share | (thousands) | |||||||||||||||
Outstanding as of December 28, 2013 | 1,102,842 | $ | 3.97 | |||||||||||||
Granted | 135,900 | $ | 8.66 | |||||||||||||
Exercised | (296,459 | ) | $ | 3.99 | ||||||||||||
Canceled or forfeited | (27,457 | ) | $ | 6.16 | ||||||||||||
Outstanding as of September 27, 2014 | 914,826 | $ | 4.60 | $ | 2,535 | |||||||||||
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 $3.54 and $3.19 per share for the three months ended September 27, 2014 and September 28, 2013, 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 $4.06 and $3.12 per share for the nine months ended September 27, 2014 and September 28, 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 | Nine Months Ended | |||||||||||||||
September 27, | September 28, | September 27, | September 28, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Average risk free interest rate | 1.56 | % | 1.26 | % | 1.49 | % | 1.11 | % | ||||||||
Expected life (in years) | 4.5 years | 4.5 years | 4.5 years | 4.5 years | ||||||||||||
Dividend yield | — | % | — | % | — | % | — | % | ||||||||
Average volatility | 54 | % | 66 | % | 56 | % | 72 | % | ||||||||
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 and nine months ended September 27, 2014 and September 28, 2013: | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 27, | September 28, | September 27, | September 28, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Cost of revenues | $ | 37 | $ | 27 | $ | 110 | $ | 78 | ||||||||
Research and development | 27 | 17 | 75 | 53 | ||||||||||||
Sales and marketing | 26 | 30 | 86 | 80 | ||||||||||||
General and administrative | 154 | 103 | 451 | 300 | ||||||||||||
Total | $ | 244 | $ | 177 | $ | 722 | $ | 511 | ||||||||
Approximately $23 thousand and $17 thousand of the stock-based compensation recognized was capitalized into inventory as a component of overhead for the quarters ended September 27, 2014 and September 28, 2013, respectively. | ||||||||||||||||
Information regarding stock options outstanding, vested and expected to vest and exercisable as of September 27, 2014 is summarized below: | ||||||||||||||||
Number of | Weighted | Weighted | Aggregate | |||||||||||||
Shares | Average | Average | Intrinsic Value | |||||||||||||
Exercise Price | Remaining | (thousands) | ||||||||||||||
Contractual | ||||||||||||||||
Life (Years) | ||||||||||||||||
Options outstanding | 914,826 | $ | 4.6 | 4.09 | $ | 2,535 | ||||||||||
Options vested and expected to vest | 855,313 | $ | 4.48 | 3.97 | $ | 2,448 | ||||||||||
Options exercisable | 513,636 | $ | 3.62 | 2.91 | $ | 1,815 | ||||||||||
The aggregate intrinsic value in the table above represents the pre-tax intrinsic value, based on the Company’s closing price as of September 26, 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 nine months ended September 27, 2014 and September 28, 2013 was approximately $354 thousand and $231 thousand, respectively. | ||||||||||||||||
As of September 27, 2014, there was $1.5 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 2.60 years. | ||||||||||||||||
Summary of Restricted Stock Units and Awards | ||||||||||||||||
Information regarding the restricted stock units activity for the nine months ended September 27, 2014 is summarized below: | ||||||||||||||||
Number | ||||||||||||||||
of Shares | ||||||||||||||||
Outstanding as of December 28, 2013 | 269,259 | |||||||||||||||
Restricted stock units granted | 59,780 | |||||||||||||||
Restricted stock units released | (46,759 | ) | ||||||||||||||
Restricted stock units cancelled | (2,445 | ) | ||||||||||||||
Outstanding as of September 27, 2014 | 279,835 | |||||||||||||||
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. The grant date fair value for restricted stock units awarded during the nine month period was $314 thousand. The weighted average stock price on the date of grant for restricted stock units awarded during the nine month period was $5.25 per share. | ||||||||||||||||
Information regarding the restricted stock awards activity for the nine months ended September 27, 2014 is summarized below: | ||||||||||||||||
Number | ||||||||||||||||
of Shares | ||||||||||||||||
Outstanding as of December 28, 2013 | 3,503 | |||||||||||||||
Restricted stock awards granted | 2,445 | |||||||||||||||
Restricted stock awards released | (3,503 | ) | ||||||||||||||
Outstanding as of September 27, 2014 | 2,445 | |||||||||||||||
The grant date fair value for restricted stock awards granted during the nine month period was $20 thousand. The weighted average stock price on the date of grant for restricted stock units awarded during the nine month period was $8.18 per share. | ||||||||||||||||
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. In February 2014, the Board of Directors approved the extension of the plan for an additional year. In July 2014, the Board of Directors approved a further extension of the plan for an additional year and authorized an additional $3.0 million of stock repurchases under this plan. For the nine months ended September 27, 2014, the Company has purchased 406,245 shares at an average price of $8.40 per share. As of September 27, 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 | 9 Months Ended |
Sep. 27, 2014 | |
Income Tax Disclosure [Abstract] | ' |
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 taxes of $29 thousand for the nine months ended September 27, 2014 and $58 thousand for the nine months ended September 28, 2013. | |
Deferred Income Taxes. | |
The Company accounts for income taxes in accordance with ASC 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. No additional deferred income tax has been recorded during the quarter. | |
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 US 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 | 9 Months Ended | |||||||||||||||
Sep. 27, 2014 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
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 September 27, 2014 and September 28, 2013, stock options to purchase 106,527 and 147,111 shares, respectively, were excluded from the computation of diluted weighted average shares outstanding. For the nine months ended September 27, 2014 and September 28, 2013, stock options to purchase 228,241 and 543,142 shares, respectively, 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 | Nine Months Ended | |||||||||||||||
September 27, | September 28, | September 27, | September 28, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Numerator: | ||||||||||||||||
Net income | $ | 490 | $ | 530 | $ | 1,274 | $ | 1,819 | ||||||||
Denominator: | ||||||||||||||||
Weighted average shares of common stock (basic) | 9,869 | 9,796 | 9,918 | 9,044 | ||||||||||||
Effect of dilutive preferred shares | — | — | — | 597 | ||||||||||||
Effect of dilutive stock options | 256 | 276 | 313 | 270 | ||||||||||||
Effect of dilutive contingent shares | 130 | 105 | 166 | 84 | ||||||||||||
Weighted average shares of common stock (diluted) | 10,255 | 10,177 | 10,397 | 9,995 | ||||||||||||
Per share data: | ||||||||||||||||
Basic income per share | $ | 0.05 | $ | 0.05 | $ | 0.13 | $ | 0.2 | ||||||||
Diluted income per share | $ | 0.05 | $ | 0.05 | $ | 0.12 | $ | 0.18 | ||||||||
Business_Segments
Business Segments | 9 Months Ended | |||||||||||||||
Sep. 27, 2014 | ||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||
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 27, | September 28, | September 27, | September 28, | ||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
United States | $ | 5,547 | $ | 5,572 | $ | 16,236 | $ | 14,743 | ||||||||
Europe | 2,011 | 1,942 | 6,587 | 5,543 | ||||||||||||
Rest of Americas | 822 | 578 | 2,431 | 2,369 | ||||||||||||
Asia/Pacific Rim | 1,738 | 1,434 | 5,782 | 5,020 | ||||||||||||
Total | $ | 10,118 | $ | 9,526 | $ | 31,036 | $ | 27,675 | ||||||||
Revenues are attributed to countries based on location of end customers. No individual country accounted for more than 10% of the Company’s sales for the three and nine month periods, except for the United States, which accounted for 54.8% and 58.5% of sales for the three month periods ended September 27, 2014 and September 28, 2013, respectively. For the nine month periods ended September 27, 2014 and September 28, 2013, the United States accounted for 52.3% and 53.3% of sales, respectively. | ||||||||||||||||
No one customer accounted for more than 10% of total revenues for the three and nine month periods ended September 27, 2014 and September 28, 2013, respectively. | ||||||||||||||||
No one customer accounted for more than 10% of accounts receivable balance as of September 27, 2014 or December 28, 2013. |
Subsequent_Events
Subsequent Events | 9 Months Ended |
Sep. 27, 2014 | |
Subsequent Events [Abstract] | ' |
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 September 27, 2014. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 9 Months Ended | |||||||
Sep. 27, 2014 | ||||||||
Accounting Policies [Abstract] | ' | |||||||
Financial Statement Presentation | ' | |||||||
Financial Statement Presentation. | ||||||||
The unaudited condensed 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 unaudited condensed 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 collectibility 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 27, 2014 and September 28, 2013 is as follows: | ||||||||
Nine Months Ended | ||||||||
(in thousands) | September 27, | September 28, | ||||||
2014 | 2013 | |||||||
Balance, beginning of period | $ | 1,133 | $ | 1,004 | ||||
Additions to deferral | 1,095 | 985 | ||||||
Revenue recognized | (1,053 | ) | (927 | ) | ||||
Balance, end of period | $ | 1,175 | $ | 1,062 | ||||
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 nine months ended September 27, 2014 and September 28, 2013 is as follows: | ||||||||
Nine Months Ended | ||||||||
(in thousands) | September 27, | September 28, | ||||||
2014 | 2013 | |||||||
Balance, beginning of period | $ | 468 | $ | 453 | ||||
Accruals for product warranties | 207 | 162 | ||||||
Cost of warranty claims and adjustments | (137 | ) | (143 | ) | ||||
Balance, end of period | $ | 538 | $ | 472 | ||||
Recently Issued and Adopted Accounting Standards | ' | |||||||
Recently Issued and Adopted Accounting Standards. | ||||||||
In May 2014, as part of its ongoing efforts to assist in the convergence of US GAAP and International Financial Reporting Standards (“IFRS”), the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers.” The new guidance sets forth a new five-step revenue recognition model which replaces the prior revenue recognition guidance in its entirety and is intended to eliminate numerous industry-specific pieces of revenue recognition guidance that have historically existed in US GAAP. The underlying principle of the new standard is that a business or other organization will recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects what it expects in exchange for the goods or services. The standard also requires more detailed disclosures and provides additional guidance for transactions that were not addressed completely in the prior accounting guidance. The ASU provides alternative methods of initial adoption and is effective for annual and interim periods beginning after December 15, 2016. We are currently evaluating the impact that this standard will have on our consolidated financial statements. | ||||||||
In June 2014, the FASB issued ASU 2014-12, “Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period (a consensus of the FASB Emerging Issues Task Force)”. The ASU clarifies that entities should treat performance targets that can be met after the requisite service period of a share-based payment award as performance conditions that affect vesting. Therefore, an entity would not record compensation expense (measured as of the grant date without taking into account the effect of the performance target) related to an award for which transfer to the employee is contingent on the entity’s satisfaction of a performance target until it becomes probable that the performance target will be met. The ASU does not contain any new disclosure requirements. For all entities, the ASU is effective for reporting periods beginning after December 15, 2015. Early adoption is permitted. We expect to adopt this standard in fiscal 2016 and do not expect the adoption of this standard to have a material impact on our consolidated financial statements. | ||||||||
In August 2014, the FASB issued ASU No. 2014-15, “Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern”, to provide guidance on management’s responsibility in evaluating whether there is substantial doubt about a company’s ability to continue as a going concern and to provide related footnote disclosures. ASU 2014-15 is effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Since ASU 2014-15 only impacts financial statement disclosure requirements regarding whether there is substantial doubt about an entity’s ability to continue as a going concern, we do not expect its adoption to have an impact on our consolidated financial statements. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 9 Months Ended | |||||||
Sep. 27, 2014 | ||||||||
Accounting Policies [Abstract] | ' | |||||||
Reconciliation of Changes in Deferred Revenue | ' | |||||||
A reconciliation of the changes in the Company’s deferred revenue balance for the nine months ended September 27, 2014 and September 28, 2013 is as follows: | ||||||||
Nine Months Ended | ||||||||
(in thousands) | September 27, | September 28, | ||||||
2014 | 2013 | |||||||
Balance, beginning of period | $ | 1,133 | $ | 1,004 | ||||
Additions to deferral | 1,095 | 985 | ||||||
Revenue recognized | (1,053 | ) | (927 | ) | ||||
Balance, end of period | $ | 1,175 | $ | 1,062 | ||||
Reconciliation of Changes in Warranty Liability | ' | |||||||
A reconciliation of the changes in the Company’s warranty liability for the nine months ended September 27, 2014 and September 28, 2013 is as follows: | ||||||||
Nine Months Ended | ||||||||
(in thousands) | September 27, | September 28, | ||||||
2014 | 2013 | |||||||
Balance, beginning of period | $ | 468 | $ | 453 | ||||
Accruals for product warranties | 207 | 162 | ||||||
Cost of warranty claims and adjustments | (137 | ) | (143 | ) | ||||
Balance, end of period | $ | 538 | $ | 472 | ||||
Inventories_Tables
Inventories (Tables) | 9 Months Ended | |||||||
Sep. 27, 2014 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Components of Inventories | ' | |||||||
The components of the Company’s inventories as of September 27, 2014 and December 28, 2013 are as follows: | ||||||||
(in thousands) | September 27, | December 28, | ||||||
2014 | 2013 | |||||||
Raw materials | $ | 4,281 | $ | 5,922 | ||||
Work in process | 1,742 | 976 | ||||||
Finished goods | 3,581 | 3,707 | ||||||
Total inventories | $ | 9,604 | $ | 10,605 | ||||
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets (Tables) | 9 Months Ended | ||||||||||||||||||||||||||
Sep. 27, 2014 | |||||||||||||||||||||||||||
Goodwill And Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||||||||||||
Summary of Components of Gross and Net Intangible Asset | ' | ||||||||||||||||||||||||||
The following table summarizes the components of gross and net intangible asset balances: | |||||||||||||||||||||||||||
27-Sep-14 | 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 | 72 | 168 | $ | 240 | 60 | 180 | 10.5 years | |||||||||||||||||||
$ | 960 | $ | 672 | $ | 288 | $ | 960 | $ | 632 | $ | 328 | ||||||||||||||||
Amortization of Sales and Marketing Expense and Cost of Revenue | ' | ||||||||||||||||||||||||||
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 (three months) | $ | 4 | |||||||||||||||||||||||||
2015 | 30 | ||||||||||||||||||||||||||
2016 | 52 | ||||||||||||||||||||||||||
2017 | 86 | ||||||||||||||||||||||||||
2018 | 16 | ||||||||||||||||||||||||||
Thereafter | 100 | ||||||||||||||||||||||||||
Total | $ | 288 | |||||||||||||||||||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 9 Months Ended | |||||||||||||||||||||||||||||
Sep. 27, 2014 | ||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||||||||||||||||
Financial Assets and Liabilities Measured and Recognized at Fair Value on a Recurring Basis | ' | |||||||||||||||||||||||||||||
As of September 27, 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: | ||||||||||||||||||||||||||||||
27-Sep-14 | 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 | $ | 11,846 | — | — | $ | 11,846 | $ | 12,742 | — | — | $ | 12,742 | ||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||
Earn-out liability | — | — | $ | 566 | $ | 566 | $ | — | — | $ | 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 September 27, 2014. | ||||||||||||||||||||||||||||||
As of September 27, 2014 | Fair Value | Valuation | Significant | Weighted | ||||||||||||||||||||||||||
(in thousands) | Technique | Unobservable | Average | |||||||||||||||||||||||||||
Input | (range) | |||||||||||||||||||||||||||||
Earn-out liability | $ | 566 | Discounted cash flow | Projected royalties | $1,474 | |||||||||||||||||||||||||
(in thousands) | ($414 - $1,715) | |||||||||||||||||||||||||||||
Discount rate | 21.71% | |||||||||||||||||||||||||||||
(20.50% - 27.00%) | ||||||||||||||||||||||||||||||
Reconciliation of Changes in Earn-Out (Level 3 Liabilities) | ' | |||||||||||||||||||||||||||||
A reconciliation of the changes in the Company’s earn-out liability (Level 3 liability) for the nine months ended September 27, 2014 and September 28, 2013 is as follows: | ||||||||||||||||||||||||||||||
Nine Months Ended | ||||||||||||||||||||||||||||||
(in thousands) | September 27, | September 28, | ||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||
Balance at the beginning of the period | $ | 624 | $ | 652 | ||||||||||||||||||||||||||
Payments against earn-out | (361 | ) | (287 | ) | ||||||||||||||||||||||||||
Change in fair value of earn-out liability | 303 | 181 | ||||||||||||||||||||||||||||
Balance at the end of the period | $ | 566 | $ | 546 | ||||||||||||||||||||||||||
Stock_Based_Compensation_Table
Stock Based Compensation (Tables) | 9 Months Ended | |||||||||||||||
Sep. 27, 2014 | ||||||||||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | |||||||||||||||
Summary of Activity in Stock Option Plan | ' | |||||||||||||||
The following table summarizes information regarding activity in our stock option plan during the nine months ended September 27, 2014: | ||||||||||||||||
Number of | Weighted | Aggregate | ||||||||||||||
Shares | Average | Intrinsic | ||||||||||||||
Exercise Price | Value | |||||||||||||||
Per Share | (thousands) | |||||||||||||||
Outstanding as of December 28, 2013 | 1,102,842 | $ | 3.97 | |||||||||||||
Granted | 135,900 | $ | 8.66 | |||||||||||||
Exercised | (296,459 | ) | $ | 3.99 | ||||||||||||
Canceled or forfeited | (27,457 | ) | $ | 6.16 | ||||||||||||
Outstanding as of September 27, 2014 | 914,826 | $ | 4.60 | $ | 2,535 | |||||||||||
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 27, | September 28, | September 27, | September 28, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Average risk free interest rate | 1.56 | % | 1.26 | % | 1.49 | % | 1.11 | % | ||||||||
Expected life (in years) | 4.5 years | 4.5 years | 4.5 years | 4.5 years | ||||||||||||
Dividend yield | — | % | — | % | — | % | — | % | ||||||||
Average volatility | 54 | % | 66 | % | 56 | % | 72 | % | ||||||||
Stock-Based Compensation Expense | ' | |||||||||||||||
The following table shows stock-based compensation expense included in the condensed consolidated statements of operations for the three and nine months ended September 27, 2014 and September 28, 2013: | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 27, | September 28, | September 27, | September 28, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Cost of revenues | $ | 37 | $ | 27 | $ | 110 | $ | 78 | ||||||||
Research and development | 27 | 17 | 75 | 53 | ||||||||||||
Sales and marketing | 26 | 30 | 86 | 80 | ||||||||||||
General and administrative | 154 | 103 | 451 | 300 | ||||||||||||
Total | $ | 244 | $ | 177 | $ | 722 | $ | 511 | ||||||||
Summary of Stock Options Outstanding, Vested and Expected to Vest and Exercisable | ' | |||||||||||||||
Information regarding stock options outstanding, vested and expected to vest and exercisable as of September 27, 2014 is summarized below: | ||||||||||||||||
Number of | Weighted | Weighted | Aggregate | |||||||||||||
Shares | Average | Average | Intrinsic Value | |||||||||||||
Exercise Price | Remaining | (thousands) | ||||||||||||||
Contractual | ||||||||||||||||
Life (Years) | ||||||||||||||||
Options outstanding | 914,826 | $ | 4.6 | 4.09 | $ | 2,535 | ||||||||||
Options vested and expected to vest | 855,313 | $ | 4.48 | 3.97 | $ | 2,448 | ||||||||||
Options exercisable | 513,636 | $ | 3.62 | 2.91 | $ | 1,815 | ||||||||||
Restricted Stock Units and Awards | ' | |||||||||||||||
Information regarding the restricted stock units activity for the nine months ended September 27, 2014 is summarized below: | ||||||||||||||||
Number | ||||||||||||||||
of Shares | ||||||||||||||||
Outstanding as of December 28, 2013 | 269,259 | |||||||||||||||
Restricted stock units granted | 59,780 | |||||||||||||||
Restricted stock units released | (46,759 | ) | ||||||||||||||
Restricted stock units cancelled | (2,445 | ) | ||||||||||||||
Outstanding as of September 27, 2014 | 279,835 | |||||||||||||||
Information regarding the restricted stock awards activity for the nine months ended September 27, 2014 is summarized below: | ||||||||||||||||
Number | ||||||||||||||||
of Shares | ||||||||||||||||
Outstanding as of December 28, 2013 | 3,503 | |||||||||||||||
Restricted stock awards granted | 2,445 | |||||||||||||||
Restricted stock awards released | (3,503 | ) | ||||||||||||||
Outstanding as of September 27, 2014 | 2,445 | |||||||||||||||
Computation_of_Basic_and_Dilut1
Computation of Basic and Diluted Net Income Per Common Share (Tables) | 9 Months Ended | |||||||||||||||
Sep. 27, 2014 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
Reconciliation of 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 | Nine Months Ended | |||||||||||||||
September 27, | September 28, | September 27, | September 28, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Numerator: | ||||||||||||||||
Net income | $ | 490 | $ | 530 | $ | 1,274 | $ | 1,819 | ||||||||
Denominator: | ||||||||||||||||
Weighted average shares of common stock (basic) | 9,869 | 9,796 | 9,918 | 9,044 | ||||||||||||
Effect of dilutive preferred shares | — | — | — | 597 | ||||||||||||
Effect of dilutive stock options | 256 | 276 | 313 | 270 | ||||||||||||
Effect of dilutive contingent shares | 130 | 105 | 166 | 84 | ||||||||||||
Weighted average shares of common stock (diluted) | 10,255 | 10,177 | 10,397 | 9,995 | ||||||||||||
Per share data: | ||||||||||||||||
Basic income per share | $ | 0.05 | $ | 0.05 | $ | 0.13 | $ | 0.2 | ||||||||
Diluted income per share | $ | 0.05 | $ | 0.05 | $ | 0.12 | $ | 0.18 | ||||||||
Business_Segments_Tables
Business Segments (Tables) | 9 Months Ended | |||||||||||||||
Sep. 27, 2014 | ||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||
Revenue Information 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 27, | September 28, | September 27, | September 28, | ||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
United States | $ | 5,547 | $ | 5,572 | $ | 16,236 | $ | 14,743 | ||||||||
Europe | 2,011 | 1,942 | 6,587 | 5,543 | ||||||||||||
Rest of Americas | 822 | 578 | 2,431 | 2,369 | ||||||||||||
Asia/Pacific Rim | 1,738 | 1,434 | 5,782 | 5,020 | ||||||||||||
Total | $ | 10,118 | $ | 9,526 | $ | 31,036 | $ | 27,675 | ||||||||
Summary_of_Significant_Account3
Summary of Significant Accounting Policies - Reconciliation of Changes in Deferred Revenue (Details) (USD $) | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 27, 2014 | Sep. 28, 2013 | |
Reconciliation of the changes in the Company's deferred revenue balance | ' | ' | |
Balance, beginning of period | $1,133 | [1] | $1,004 |
Additions to deferral | 1,095 | 985 | |
Revenue recognized | -1,053 | -927 | |
Balance, end of period | $1,175 | $1,062 | |
[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 - Additional Information (Details) | 9 Months Ended |
Sep. 27, 2014 | |
Minimum | ' |
Disclosure Summary Of Significant Accounting Policies Details2 [Line Items] | ' |
Products warranty period | '1 year |
Maximum | ' |
Disclosure Summary Of Significant Accounting Policies Details2 [Line Items] | ' |
Products warranty period | '2 years |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies - Reconciliation of Changes in Warranty Liability (Details) (USD $) | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 27, 2014 | Sep. 28, 2013 | |
Reconciliation of the changes in the Company's warranty liability | ' | ' | |
Balance, beginning of period | $468 | [1] | $453 |
Accruals for product warranties | 207 | 162 | |
Cost of warranty claims and adjustments | -137 | -143 | |
Balance, end of period | $538 | $472 | |
[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 $) | Sep. 27, 2014 | Dec. 28, 2013 | |
In Thousands, unless otherwise specified | |||
Inventory Disclosure [Abstract] | ' | ' | |
Raw materials | $4,281 | $5,922 | |
Work in process | 1,742 | 976 | |
Finished goods | 3,581 | 3,707 | |
Total inventories | $9,604 | $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 $) | 9 Months Ended | |||
Sep. 27, 2014 | Sep. 28, 2013 | Dec. 28, 2013 | ||
Goodwill And Intangible Assets Disclosure [Abstract] | ' | ' | ' | |
Carrying value of goodwill | $533,000 | ' | $533,000 | [1] |
Goodwill impaired | 0 | ' | ' | |
Amortization expense | $40,000 | $172,000 | ' | |
[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 - Summary of Components of Gross and Net Intangible Asset (Details) (USD $) | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 27, 2014 | Dec. 28, 2013 | |
Schedule of Intangible Assets | ' | ' | |
Gross Carrying Amount | $960 | $960 | |
Accumulated Amortization | 672 | 632 | |
Net Carrying Amount | 288 | 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 | 72 | 60 | |
Net Carrying Amount | $168 | $180 | |
Amortization Life | '10 years 6 months | ' | |
[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 - Amortization of Sales and Marketing Expense and Cost of Revenue (Details) (USD $) | Sep. 27, 2014 | Dec. 28, 2013 | |
In Thousands, unless otherwise specified | |||
Future estimated amortization expense | ' | ' | |
2014 (three months) | $4 | ' | |
2015 | 30 | ' | |
2016 | 52 | ' | |
2017 | 86 | ' | |
2018 | 16 | ' | |
Thereafter | 100 | ' | |
Net Carrying Amount | $288 | $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_Financ
Fair Value Measurements - Financial Assets and Liabilities Measured and Recognized at Fair Value on a Recurring Basis (Details) (USD $) | Sep. 27, 2014 | Dec. 28, 2013 |
In Thousands, unless otherwise specified | ||
Money Market Funds | ' | ' |
Assets: | ' | ' |
Assets, Fair Value Measurements | $11,846 | $12,742 |
Level 1 | Money Market Funds | ' | ' |
Assets: | ' | ' |
Assets, Fair Value Measurements | 11,846 | 12,742 |
Earn Out Liability | ' | ' |
Liabilities: | ' | ' |
Liabilities, Fair Value Measurements | 566 | 624 |
Earn Out Liability | Level 3 | ' | ' |
Liabilities: | ' | ' |
Liabilities, Fair Value Measurements | $566 | $624 |
Fair_Value_Measurements_Quanti
Fair Value Measurements - Quantitative Information about the Inputs and Valuation Methodologies Used for Fair Value Measurements (Details) (USD $) | Sep. 27, 2014 | Dec. 28, 2013 | Sep. 28, 2013 | Dec. 29, 2012 | Sep. 27, 2014 | Sep. 27, 2014 | Sep. 27, 2014 |
In Thousands, unless otherwise specified | Level 3 | Level 3 | Level 3 | ||||
Discounted Cash Flow | Discounted Cash Flow | Discounted Cash Flow | |||||
Minimum | Maximum | ||||||
Quantitative information about the inputs and valuation methodologies used for fair value measurements | ' | ' | ' | ' | ' | ' | ' |
Fair Value, Earn-out liability | $566 | $624 | $546 | $652 | $566 | ' | ' |
Valuation Technique, Earn-out liability | ' | ' | ' | ' | 'Discounted cash flow | ' | ' |
Weighted Average, Projected royalties | ' | ' | ' | ' | $1,474 | $414 | $1,715 |
Weighted Average, Discount rate | ' | ' | ' | ' | 21.71% | 20.50% | 27.00% |
Fair_Value_Measurements_Reconc
Fair Value Measurements - Reconciliation of Changes in Earn-out (Level 3 Liabilities) (Details) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 27, 2014 | Sep. 28, 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 | -361 | -287 |
Change in fair value of earn-out liability | 303 | 181 |
Balance at the end of the period | $566 | $546 |
Stock_Based_Compensation_Summa
Stock Based Compensation - Summary of Activity in Stock Option Plan (Details) (USD $) | 9 Months Ended |
In Thousands, except Share data, unless otherwise specified | Sep. 27, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ' |
Outstanding, Number of Shares, Beginning Balance | 1,102,842 |
Number of Shares, Options Granted | 135,900 |
Number of Shares, Options Exercised | -296,459 |
Number of Shares, Options Cancelled or forfeited | -27,457 |
Outstanding, Number of Shares, Ending Balance | 914,826 |
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 | $3.99 |
Weighted Average Exercise Price Per Share, Options Cancelled or forfeited | $6.16 |
Weighted Average Exercise Price Per Share, Ending Balance | $4.60 |
Aggregate Intrinsic Value, Ending Balance | $2,535 |
Stock_Based_Compensation_Detai
Stock Based Compensation (Details Textual) (USD $) | 3 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | 9 Months Ended | ||||||
Sep. 27, 2014 | Sep. 28, 2013 | Sep. 27, 2014 | Sep. 28, 2013 | Jul. 31, 2014 | Feb. 28, 2013 | Feb. 28, 2012 | Jan. 04, 2014 | Sep. 27, 2014 | Sep. 27, 2014 | Sep. 27, 2014 | |
Restricted Stock Units (RSUs) | Restricted Stock Units (RSUs) | Restricted Stock Units (RSUs) | Restricted Stock Awards | ||||||||
Maximum | |||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted-average grant date fair value of the options granted | $3.54 | $3.19 | $4.06 | $3.12 | ' | ' | ' | ' | ' | ' | ' |
Dividend yield | 0.00% | 0.00% | 0.00% | 0.00% | ' | ' | ' | ' | ' | ' | ' |
Stock-based compensation capitalized into inventory | $23,000 | $17,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total intrinsic value of options exercised | ' | ' | 354,000 | 231,000 | ' | ' | ' | ' | ' | ' | ' |
Total unrecognized compensation cost, net of expected forfeitures, related to non-vested share-based compensation arrangements under the Incentive Plan | 1,500,000 | ' | 1,500,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Compensation cost recognition, weighted average period (years) | ' | ' | '2 years 7 months 6 days | ' | ' | ' | ' | ' | ' | ' | ' |
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 | ' | ' |
Restricted stock units granted | ' | ' | ' | ' | ' | ' | ' | 50,000 | 59,780 | ' | 2,445 |
Restricted stock units, calculated stock price | ' | ' | ' | ' | ' | ' | ' | ' | ' | $11 | ' |
Weighted grant date fair value of restricted stock units granted | ' | ' | ' | ' | ' | ' | ' | ' | 314,000 | ' | 20,000 |
Weighted-average grant date fair value of restricted stock units granted | ' | ' | ' | ' | ' | ' | ' | ' | $5.25 | ' | $8.18 |
Stock repurchase program authorized amount | ' | ' | ' | ' | 3,000,000 | 3,000,000 | 4,000,000 | ' | ' | ' | ' |
Stock repurchase, shares | ' | ' | 406,245 | ' | ' | ' | ' | ' | ' | ' | ' |
Shares repurchased price, per share | ' | ' | $8.40 | ' | ' | ' | ' | ' | ' | ' | ' |
Common shares under the stock repurchase program | $2,200,000 | ' | $2,200,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Stock_Based_Compensation_Weigh
Stock Based Compensation - Weighted Average Assumptions for Fair Value Stock-Based Awards (Options) (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 27, 2014 | Sep. 28, 2013 | Sep. 27, 2014 | Sep. 28, 2013 | |
Weighted average assumptions for fair value estimate of stock-based awards (options) | ' | ' | ' | ' |
Average risk free interest rate | 1.56% | 1.26% | 1.49% | 1.11% |
Expected life (in years) | '4 years 6 months | '4 years 6 months | '4 years 6 months | '4 years 6 months |
Dividend yield | 0.00% | 0.00% | 0.00% | 0.00% |
Average volatility | 54.00% | 66.00% | 56.00% | 72.00% |
Stock_Based_Compensation_Stock
Stock Based Compensation - Stock Based Compensation Expense (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 27, 2014 | Sep. 28, 2013 | Sep. 27, 2014 | Sep. 28, 2013 |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Stock-based compensation expense | $244 | $177 | $722 | $511 |
Cost of Sales | ' | ' | ' | ' |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Stock-based compensation expense | 37 | 27 | 110 | 78 |
Research and Development Expense | ' | ' | ' | ' |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Stock-based compensation expense | 27 | 17 | 75 | 53 |
Selling and Marketing Expense | ' | ' | ' | ' |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Stock-based compensation expense | 26 | 30 | 86 | 80 |
General and Administrative Expense | ' | ' | ' | ' |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Stock-based compensation expense | $154 | $103 | $451 | $300 |
Stock_Based_Compensation_Summa1
Stock Based Compensation - Summary of Stock Options Outstanding, Vested and Expected to Vest and Exercisable (Details) (USD $) | 9 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Sep. 27, 2014 | Dec. 28, 2013 |
Stock options outstanding, exercisable and expected to vest | ' | ' |
Options outstanding, Number of Shares | 914,826 | 1,102,842 |
Options vested and expected to vest, Number of Shares | 855,313 | ' |
Options exercisable, Number of Shares | 513,636 | ' |
Options outstanding, Weighted Average Exercise Price | $4.60 | $3.97 |
Options vested and expected to vest, Weighted Average Exercise Price | $4.48 | ' |
Options exercisable, Weighted Average Exercise Price | $3.62 | ' |
Options outstanding, Weighted Average Remaining Contractual Life (years) | '4 years 1 month 2 days | ' |
Options vested and expected to vest, Weighted Average Remaining Contractual Life (years) | '3 years 11 months 19 days | ' |
Options exercisable, Weighted Average Remaining Contractual Life (years) | '2 years 10 months 28 days | ' |
Options outstanding, Aggregate Intrinsic Value | $2,535 | ' |
Options vested and expected to vest, Aggregate Intrinsic Value | 2,448 | ' |
Options exercisable, Aggregate Intrinsic Value | $1,815 | ' |
Stock_Based_Compensation_Restr
Stock Based Compensation - Restricted Stock Units and Awards (Details) | 0 Months Ended | 9 Months Ended |
Jan. 04, 2014 | Sep. 27, 2014 | |
Restricted Stock Awards | ' | ' |
Restricted stock awards | ' | ' |
Number of Shares, Beginning Balance | ' | 3,503 |
Restricted stock units granted | ' | 2,445 |
Number of Shares, Restricted stock awards released | ' | -3,503 |
Number of Shares, Ending Balance | ' | 2,445 |
Restricted Stock Units (RSUs) | ' | ' |
Restricted stock awards | ' | ' |
Number of Shares, Beginning Balance | ' | 269,259 |
Restricted stock units granted | 50,000 | 59,780 |
Number of Shares, Restricted stock awards released | ' | -46,759 |
Number of Shares, Restricted stock units cancelled | ' | -2,445 |
Number of Shares, Ending Balance | ' | 279,835 |
Income_Taxes_Details_Textual
Income Taxes (Details Textual) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 27, 2014 | Sep. 28, 2013 | Sep. 27, 2014 | Sep. 28, 2013 | Dec. 28, 2013 | |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' | ' |
Provision for income taxes | $4,000 | $50,000 | $29,000 | $58,000 | ' |
Deferred Tax Assets | ' | ' | ' | ' | 10,000,000 |
Deferred Income Tax Expense (Benefit) | 0 | ' | ' | ' | ' |
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 | 9 Months Ended | ||
Sep. 27, 2014 | Sep. 28, 2013 | Sep. 27, 2014 | Sep. 28, 2013 | |
Stock option | ' | ' | ' | ' |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Stock options to purchase shares excluded from the computation of diluted weighted average shares outstanding | 106,527 | 147,111 | 228,241 | 543,142 |
Computation_of_Basic_and_Dilut3
Computation of Basic and Diluted Net Income Per Common Share - Reconciliation of Numerator and Denominator of Basic and Diluted Net Income Per Common Share (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 27, 2014 | Sep. 28, 2013 | Sep. 27, 2014 | Sep. 28, 2013 |
Numerator: | ' | ' | ' | ' |
Net income | $490 | $530 | $1,274 | $1,819 |
Denominator: | ' | ' | ' | ' |
Weighted average shares of common stock (basic) | 9,869 | 9,796 | 9,918 | 9,044 |
Effect of dilutive preferred shares | ' | ' | ' | 597 |
Effect of dilutive stock options | 256 | 276 | 313 | 270 |
Effect of dilutive contingent shares | 130 | 105 | 166 | 84 |
Weighted average shares of common stock (diluted) | 10,255 | 10,177 | 10,397 | 9,995 |
Per share data: | ' | ' | ' | ' |
Basic income per share | $0.05 | $0.05 | $0.13 | $0.20 |
Diluted income per share | $0.05 | $0.05 | $0.12 | $0.18 |
Business_Segments_Details_Text
Business Segments (Details Textual) | 3 Months Ended | 9 Months Ended | 12 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | |||||
Sep. 27, 2014 | Sep. 28, 2013 | Sep. 27, 2014 | Sep. 28, 2013 | Sep. 27, 2014 | Dec. 28, 2013 | Sep. 27, 2014 | Sep. 27, 2014 | Sep. 28, 2013 | Sep. 28, 2013 | Sep. 27, 2014 | Sep. 28, 2013 | Sep. 27, 2014 | Sep. 28, 2013 | |
Country | Country | Customer | Segment | Maximum | Maximum | Maximum | Maximum | Maximum | Maximum | United States | United States | United States | United States | |
Customer | Customer | Segment | Customer | Accounts Receivable | Accounts Receivable | Geographic Concentration Risk | Geographic Concentration Risk | Customer Concentration Risk | Customer Concentration Risk | |||||
Segment | Segment | Country | Country | Revenues | Revenues | Revenues | Revenues | |||||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of operating segments | 1 | 1 | 1 | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of country accounted for more than ten percent of revenue | 1 | 1 | 1 | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of revenues accounted | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 54.80% | 58.50% | 52.30% | 53.30% |
Number of customers accounted for more than ten percent of revenue | 0 | 0 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of customers accounted for more than ten percent of account receivable | 0 | 0 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Customer accounted, percentage | ' | ' | ' | ' | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | ' | ' | ' | ' |
Business_Segments_Revenue_Info
Business Segments - Revenue Information by Geographic Region (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 27, 2014 | Sep. 28, 2013 | Sep. 27, 2014 | Sep. 28, 2013 |
Revenues From External Customers And Long Lived Assets [Line Items] | ' | ' | ' | ' |
Total revenues | $10,118 | $9,526 | $31,036 | $27,675 |
United States | ' | ' | ' | ' |
Revenues From External Customers And Long Lived Assets [Line Items] | ' | ' | ' | ' |
Total revenues | 5,547 | 5,572 | 16,236 | 14,743 |
Europe | ' | ' | ' | ' |
Revenues From External Customers And Long Lived Assets [Line Items] | ' | ' | ' | ' |
Total revenues | 2,011 | 1,942 | 6,587 | 5,543 |
Rest of Americas | ' | ' | ' | ' |
Revenues From External Customers And Long Lived Assets [Line Items] | ' | ' | ' | ' |
Total revenues | 822 | 578 | 2,431 | 2,369 |
Asia/Pacific Rim | ' | ' | ' | ' |
Revenues From External Customers And Long Lived Assets [Line Items] | ' | ' | ' | ' |
Total revenues | $1,738 | $1,434 | $5,782 | $5,020 |