Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2017 | Aug. 02, 2017 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | KVH INDUSTRIES INC \DE\ | |
Entity Central Index Key | 1,007,587 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2017 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --06-30 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 17,088,206 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Deferred Tax Assets, Net, Noncurrent | $ 24 | $ 24 |
Current assets: | ||
Cash and cash equivalents | 30,431 | 26,422 |
Marketable securities | 13,771 | 25,712 |
Accounts receivable, net of allowance for doubtful accounts of $2,820 and $3,477 as of June 30, 2017 and December 31, 2016, respectively | 27,068 | 31,152 |
Inventories | 23,412 | 20,745 |
Prepaid expenses and other current assets | 4,863 | 4,801 |
Total current assets | 99,545 | 108,832 |
Property and equipment, less accumulated depreciation of $38,937 as of June 30, 2014 and $36,456 as of December 31, 2013 | 41,754 | 36,586 |
Intangible assets, less accumulated amortization of $2,934 as of June 30, 2014 and $2,005 as of December 31, 2013 | 16,657 | 17,838 |
Goodwill | 32,802 | 31,343 |
Other non-current assets | 5,751 | 5,134 |
Total assets | 196,533 | 199,757 |
Current liabilities: | ||
Accounts payable | 11,781 | 8,436 |
Accrued compensation and employee-related expenses | 6,020 | 4,766 |
Accrued other | 8,094 | 8,317 |
Accrued product warranty costs | 2,407 | 2,280 |
Deferred revenue | 9,906 | 6,661 |
Current portion of long-term debt | 2,477 | 7,900 |
Liability for Uncertain Tax Positions, Current | 1,356 | 1,283 |
Total current liabilities | 42,041 | 39,643 |
Deferred income taxes | 3,302 | 3,133 |
Long-term debt, excluding current portion | 33 | 326 |
Non-current deferred income tax liability | 45,815 | 50,153 |
Total liabilities | 91,191 | 93,255 |
Stockholders’ equity: | ||
Preferred stock, $0.01 par value. Authorized 1,000,000 shares; none issued | 0 | 0 |
Common stock, $0.01 par value. Authorized 30,000,000 shares; 17,099,149 and 16,936,128 shares issued at June 30, 2014 and December 31, 2013; and 15,440,158 and 15,277,137 shares outstanding at June 30, 2014 and December 31, 2013, respectively | 187 | 184 |
Additional paid-in capital | 132,325 | 129,660 |
(Accumulated deficit) retained earnings | (294) | 6,617 |
Accumulated other comprehensive loss | (13,726) | (16,809) |
Stockholders Equity Before Treasury Stock Adjustment | 118,492 | 119,652 |
Less: treasury stock at cost, common stock, 1,658,991 shares as of June 30, 2017 and December 31, 2016 | (13,150) | (13,150) |
Total stockholders’ equity | 105,342 | 106,502 |
Total liabilities and stockholders’ equity | $ 196,533 | $ 199,757 |
Consolidated Balance Sheets (U3
Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ (2,820) | $ (3,477) |
Property and equipment, accumulated depreciation | (48,514) | (45,766) |
Intangible assets, accumulated amortization | $ (18,514) | $ (16,344) |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 30,000,000 | 30,000,000 |
Common stock, shares issued | 18,722,987 | 18,420,914 |
Common stock, shares outstanding | 17,063,996 | 16,761,923 |
Treasury stock, shares outstanding | 1,658,991 | 1,658,991 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Sales: | ||||
Product | $ 14,323 | $ 20,062 | $ 29,186 | $ 35,444 |
Service | 26,126 | 25,904 | 51,474 | 50,902 |
Net sales | 40,449 | 45,966 | 80,660 | 86,346 |
Costs and expenses: | ||||
Costs of product sales | 9,295 | 12,989 | 19,834 | 23,659 |
Costs of service sales | 13,094 | 13,259 | 26,362 | 26,250 |
Research and development | 3,761 | 4,037 | 7,708 | 7,820 |
Sales, marketing and support | 8,124 | 9,234 | 16,864 | 17,892 |
General and administrative | 7,543 | 7,140 | 15,730 | 14,792 |
Total costs and expenses | 41,817 | 46,659 | 86,498 | 90,413 |
Loss from operations | (1,368) | (693) | (5,838) | (4,067) |
Interest income | 159 | 118 | 325 | 223 |
Interest expense | 349 | 353 | 702 | 728 |
Other (expense) income, net | (112) | 144 | (180) | 67 |
Loss before income tax expense (benefit) | (1,670) | (784) | (6,395) | (4,505) |
Income tax expense (benefit) | 356 | 22 | 516 | (908) |
Net income (loss) | $ (2,026) | $ (806) | $ (6,911) | $ (3,597) |
Net loss per common share | ||||
Earnings Per Share, Basic and Diluted | $ (0.12) | $ (0.05) | $ (0.42) | $ (0.23) |
Weighted average number of common shares outstanding: | ||||
Weighted Average Number of Shares Outstanding, Basic | 16,446 | 15,825 | 16,354 | 15,774 |
Weighted Average Number of Shares Outstanding, Basic and Diluted | 15,825 | 16,354 | 15,774 | |
Diluted | 16,446 | 15,825 | 16,354 | 15,774 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ (2,026) | $ (806) | $ (6,911) | $ (3,597) |
Other comprehensive income (loss), net of tax (1): | ||||
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax | (3) | 0 | (3) | 0 |
Foreign currency translation adjustment | 2,440 | (4,472) | 3,041 | (5,148) |
Unrealized gain (loss) on derivative instruments, net (2) | 18 | 9 | 45 | (11) |
Other comprehensive income (loss), net of tax | 2,455 | (4,463) | 3,083 | (5,159) |
Total comprehensive income (loss) | $ 429 | $ (5,269) | $ (3,828) | $ (8,756) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Changes in Accrued Liabilities Related to Fixed Asset Additions | $ 1,452 | $ 0 |
Deferred purchase price consideration related to asset acquisition included in accrued expenses | 50 | 0 |
Cash flows from operating activities: | ||
Net income (loss) | (6,911) | (3,597) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Provision for doubtful accounts | 294 | 434 |
Depreciation and amortization | 5,477 | 6,255 |
Deferred income taxes | 0 | (1,060) |
Gain (Loss) on Disposition of Property Plant Equipment | 3 | 145 |
Loss on derivative instruments | 0 | 241 |
Compensation expense related to stock-based awards and employee stock purchase plan | 1,812 | 1,881 |
Foreign Currency Transaction Gain (Loss), Unrealized | (119) | 697 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 4,051 | 10,171 |
Inventories | (2,661) | (134) |
Prepaid expenses and other current assets | (49) | (1,002) |
Other non-current assets | (577) | (1,575) |
Accounts payable | 2,345 | 603 |
Deferred revenue | 3,004 | 824 |
Accrued other | 397 | (4,957) |
Other long-term liabilities | (294) | (74) |
Net cash provided by operating activities | 6,772 | 8,852 |
Cash flows from investing activities: | ||
Capital expenditures | (6,809) | (2,528) |
Payments to Acquire Intangible Assets | (50) | 0 |
Purchases of marketable securities | (7,348) | (3,780) |
Maturities and sales of marketable securities | 19,286 | 3,740 |
Net cash provided by (used in) investing activities | 5,079 | (2,568) |
Cash flows from financing activities: | ||
Repayments of long-term debt | (1,561) | (674) |
Repayments of Long-term loan | 8,200 | 2,437 |
Payments of employee restricted stock withholdings | 392 | 313 |
Proceeds From Stock Options Exercised and Employee Stock Purchase Plan | 1,268 | 119 |
Net cash used in financing activities | (8,885) | (3,305) |
Effect of exchange rate changes on cash and cash equivalents | 1,043 | (912) |
Net increase in cash and cash equivalents | 4,009 | 2,067 |
Cash and cash equivalents at beginning of period | 26,422 | 22,719 |
Cash and cash equivalents at end of period | $ 30,431 | $ 24,786 |
Description of Business
Description of Business | 6 Months Ended |
Jun. 30, 2017 | |
Description of Business [Abstract] | |
Description of Business | Description of Business KVH Industries, Inc. (together with its subsidiaries, the Company or KVH) designs, develops, manufactures and markets mobile connectivity products and services for the marine and land mobile markets, and inertial navigation products for both the commercial and defense markets. In the fourth quarter of 2016, consistent with certain internal organizational changes implemented, the Company changed its reporting structure from two operating segments based on geographies selling navigation, guidance, and stabilization and mobile communication products, to two operating segments based on product lines: mobile connectivity and inertial navigation. The change was driven by several factors including: • changes in the Company's overall organizational structure, including the appointment of a Chief Operating Officer and a new Chief Financial Officer; • the completion of the Company's planning process for 2017, as a result of which the Company changed how it will measure and assess its financial performance; and • the Company's process for measuring incentive compensation for key executives in 2016 and later years. KVH’s mobile connectivity products enable customers to receive voice and internet services, and live digital television via satellite services in marine vessels, recreational vehicles, buses and automobiles. KVH’s CommBox offers a range of tools designed to increase communication efficiency, reduce costs, and manage network operations. KVH sells and leases its mobile connectivity products through an extensive international network of dealers and distributors. KVH also sells and leases products directly to end users. In the second quarter of 2017, the Company launched a new mini-VSAT Broadband service offering, AgilePlans, which is a monthly subscription model providing global connectivity to commercial maritime customers, including hardware, installation, broadband Internet, VOIP, entertainment and training content and global support for a monthly fee with no minimum commitment. KVH offers AgilePlans customers a variety of airtime data plans with varying data speeds and fixed data usage levels with overage charges per megabyte, which is similar to the plans that the Company offers to its other customers. The Company recognizes the monthly subscription fee as service revenue over the service delivery period. The Company retains ownership of the hardware that it provides to AgilePlans customers, who must return the hardware to KVH if they decide to terminate the service. Because KVH does not sell the hardware under AgilePlans, the Company does not recognize any product revenue when the hardware is deployed to an AgilePlans customer. KVH records the cost of the hardware used by AgilePlans customers as revenue-generating assets and depreciates the cost over an estimated useful life of five years. Since the Company is retaining ownership of the hardware, it does not accrue any warranty costs for AgilePlans hardware; however, any maintenance costs on the hardware is expensed in the period these costs are incurred. KVH’s mobile connectivity service sales represent primarily sales earned from satellite voice and Internet airtime services. KVH provides, for monthly fixed and usage fees, satellite connectivity services, including broadband Internet, data and Voice over Internet Protocol (VoIP) services, to its TracPhone V-series customers. Mobile connectivity service sales also include the distribution of commercially licensed entertainment, including news, sports, music, and movies to commercial and leisure customers in the maritime, hotel, and retail markets through KVH Media Group (acquired as Headland Media Limited), the media and entertainment service company that KVH acquired on May 11, 2013, and the distribution of training films and eLearning computer-based training courses to commercial customers in the maritime market through Super Dragon Limited and Videotel Marine Asia Limited (together referred to as Videotel), a maritime training services company that KVH acquired on July 2, 2014. KVH also earns monthly usage fees from third-party satellite connectivity services, including voice, data and Internet services, provided to its Inmarsat and Iridium customers who choose to activate their subscriptions with KVH. Mobile connectivity service sales also include engineering services provided under development contracts, sales from product repairs, and extended warranty sales. KVH's inertial navigation products offer precision fiber optic gyro (FOG)-based systems that enable platform and optical stabilization, navigation, pointing and guidance. KVH’s inertial navigation products also include tactical navigation systems that provide uninterrupted access to navigation and pointing information in a variety of military vehicles, including tactical trucks and light armored vehicles. KVH’s inertial navigation products are sold directly to U.S. and foreign governments and government contractors, as well as through an international network of authorized independent sales representatives. In addition, KVH's inertial navigation products are used in numerous commercial products, such as navigation and positioning systems for various applications including precision mapping, dynamic surveying, autonomous vehicles, train location control and track geometry measurement systems, industrial robotics and optical stabilization. KVH’s inertial navigation service sales include product repairs, engineering services provided under development contracts and extended warranty sales. |
Significant Accounting Policies
Significant Accounting Policies (Notes) | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | Summary of Significant Accounting Policies Basis of Presentation The accompanying consolidated financial statements of KVH Industries, Inc. and its wholly owned subsidiaries have been prepared in accordance with accounting principles generally accepted in the United States of America. The Company has evaluated all subsequent events through the date of this filing. All significant intercompany accounts and transactions have been eliminated in consolidation. The consolidated financial statements have not been audited by the Company's independent registered public accounting firm and include all adjustments (consisting of only normal recurring adjustments) which are, in the opinion of management, necessary for a fair presentation of the financial condition, results of operations, and cash flows for the periods presented. These consolidated financial statements do not include all disclosures associated with annual financial statements and accordingly should be read in conjunction with the Company’s consolidated financial statements and related notes included in the Company’s annual report on Form 10-K for the year ended December 31, 2016 filed on March 9, 2017 with the Securities and Exchange Commission. The results for the three and six months ended June 30, 2017 are not necessarily indicative of operating results for the remainder of the year. The Company’s marine leisure business within the mobile connectivity segment is highly seasonal, and seasonality can also impact the Company’s commercial marine business. Historically, the Company has generated the majority of its marine leisure product revenues during the first and second quarters of each year, and these revenues typically decline in the third and fourth quarters of each year, compared to the first two quarters. Temporary suspensions of the Company’s airtime services typically increase in the third and fourth quarters of each year as boats are placed out of service during the winter months. Significant Estimates and Assumptions The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of sales and expenses during the reporting periods. As described in the Company’s annual report on Form 10-K, the most significant estimates and assumptions by management affect the Company’s revenue recognition, valuation of accounts receivable, valuation of inventory, valuations and purchase price allocations related to business combinations, expected future cash flows including growth rates, discount rates, terminal values and other assumptions and estimates used to evaluate the recoverability of long-lived assets and goodwill, estimated fair values of long-lived assets, including goodwill, amortization methods and periods, certain accrued expenses and other related charges, stock-based compensation, contingent liabilities, key valuation assumptions for its share-based awards, estimated fulfillment costs for warranty obligations, tax reserves and recoverability of the Company’s net deferred tax assets and related valuation allowance. The Company has reviewed these estimates and determined that these remain the most significant estimates for the six months ended June 30, 2017 . There have been no material changes to the significant accounting policies previously disclosed in the Company’s annual report on Form 10-K for the year ended December 31, 2016, except for ASC Update No. 2016-09, Compensation- Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting , which the Company adopted as required on January 1, 2017 resulted primarily in a change in the Company’s accounting prospectively for share-based payment forfeitures and accounting for excess tax benefits or deficiencies related to share-based payments as a component of earnings (see Note 5 for further discussion) and ASC Update No. 2015-11, Simplifying the Measurement of Inventory adopted as of January 1, 2017, which simplified the subsequent measurement of inventory by replacing the lower of cost or market test with a lower of cost or net realizable value test (see Note 7 for further discussion). Although the Company regularly assesses these estimates, actual results could differ materially from these estimates. Changes in estimates are recorded in the period in which they become known. The Company bases its estimates on historical experience and various other assumptions that it believes to be reasonable under the circumstances. |
Recently Announced Accounting P
Recently Announced Accounting Pronouncements (Notes) | 6 Months Ended |
Jun. 30, 2017 | |
Significant Accounting Policies [Abstract] | |
New Accounting Pronouncements, Policy [Text Block] | Recently Announced Accounting Pronouncements ASC Updates No. 2014-09, No. 2016-08, No. 2016-10, No. 2016-11, No. 2016-12 and No. 2016-20 In May 2014, the FASB issued ASC Update No. 2014-09, Revenue from Contracts with Customers (Topic 606). Update No. 2014-09 provides enhancements to the quality and consistency of how revenue is reported while also improving comparability in the financial statements of companies using International Financial Reporting Standards and U.S. GAAP. The core principle requires entities to recognize revenue in a manner that depicts the transfer of goods or services to customers in amounts that reflect the consideration an entity expects to be entitled to in exchange for those goods or services. In July 2015, the FASB voted to approve a one year deferral, making the standard effective for public entities for annual and interim periods beginning after December 15, 2017. In March 2016, the FASB issued ASC Update No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) . The purpose of Update No. 2016-08 is to clarify the guidance on principal versus agent considerations. It includes indicators that help to determine whether an entity controls the specified good or service before it is transferred to the customer and to assist in determining when the entity satisfied the performance obligation and as such, whether to recognize a gross or a net amount of consideration in their consolidated statement of operations. In April 2016, the FASB issued ASC Update No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing. Update No. 2016-10 clarifies that entities are not required to assess whether promised goods or services are performance obligations if they are immaterial in the context of the contract. Update No. 2016-10 also addresses how to determine whether promised goods or services are separately identifiable and permits entities to make a policy election to treat shipping and handling costs as fulfillment activities. In addition, it clarifies key provisions in Topic 606 related to licensing. In May 2016, the FASB issued ASC Update No. 2016-11, Revenue Recognition (Topic 605) and Derivatives and Hedging (Topic 815). Update No. 2016-11 rescinds previous SEC comments that were codified in Topic 605, Topic 932 and Topic 815. Upon adoption of Topic 606, certain SEC comments including guidance on accounting for shipping and handling fees and costs and consideration given by a vendor to a customer should not be relied upon. In May 2016, the FASB also issued ASC Update No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow Scope Improvements and Practical Expedients . Update No. 2016-12 provides clarity around collectability, presentation of sales taxes, non-cash consideration, contract modifications at transition and completed contracts at transition. Update No. 2016-12 also includes a technical correction within Topic 606 related to required disclosures if the guidance is applied retrospectively upon adoption. In December 2016, the FASB issued ASC Update No. 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers . Update No. 2016-20 allows entities not to make quantitative disclosures about remaining performance obligations in certain cases and requires entities that use any of the optional exemptions to expand their qualitative disclosures. Update No. 2016-20 also clarifies other areas of the new revenue standard, including disclosure requirements for prior period performance obligations, impairment guidance for contract costs and the interaction of impairment guidance in ASC 340-40 with other guidance elsewhere in the Codification. The Company will adopt Topic 606 effective January 1, 2018. The Company anticipates that it will adopt Topic 606 under the modified retrospective method and will only apply this method to contracts that are not completed as of the date of adoption. The modified retrospective method will result in a cumulative effect of initially applying the standard as an adjustment to the opening balance of retained earnings at the date of initial application for any open contracts as of the adoption date. The Company has established an implementation team to assist with its assessment of the impact of the new revenue guidance on our operations, consolidated financial statements and related disclosures. To date, this assessment has included (1) utilizing questionnaires to assist with the identification of revenue streams, (2) performing sample contract analyses for each revenue stream identified, (3) assessing the noted differences in recognition and measurement that may result from adopting this new standard, (4) performing detailed analyses of contracts with larger customers, and (5) developing plans to test transactions for consistency with contract provisions that affect revenue recognition. Based on the preliminary results of the evaluation, which is still in process, the Company currently believes that the most significant potential changes relate to promised services under certain contracts that were previously determined to be separate units of accounting under ASC 605 that will not represent performance obligations under Topic 606 due to the fact that they are not distinct in the context of the contract, which will impact the timing of revenue recognition. The Company also anticipates changes to the consolidated balance sheet related to accounts receivable, contract assets, and contract liabilities. The Company is in the process of evaluating and designing the necessary changes to its business processes, systems and controls to support recognition and disclosure under the new standard. Further, the Company is continuing to assess what incremental disaggregated revenue disclosures will be required in its consolidated financial statements. ASC Update No. 2016-01 In January 2016, the FASB issued ASC Update No. 2016-01, Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. It is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early application of certain provisions is permitted. Update No. 2016-01 requires entities to measure equity investments that do not result in consolidation and are not accounted for under the equity method at fair value with changes recognized in net income. However, an entity may choose to measure equity investments that do not have readily determinable fair values at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. It also simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment. Update No. 2016-01 also requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset and liability. The adoption of Update No. 2016-01 is not expected to have a material impact on the Company's financial position or results of operations. ASC Update No. 2016-02 In February 2016, the FASB issued ASC Update No. 2016-02, Leases (Topic 842). It is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Earlier application is permitted. Update No. 2016-02 creates new accounting and reporting guidelines for leasing arrangements. The new guidance requires organizations that lease assets to recognize assets and liabilities on the balance sheet related to the rights and obligations created by those leases, regardless of whether they are classified as finance or operating leases. Consistent with current guidance, the recognition, measurement, and presentation of expenses and cash flows arising from a lease primarily will depend on its classification as a finance or operating lease. The guidance also requires new disclosures to help financial statement users better understand the amount, timing, and uncertainty of cash flows arising from leases. The new standard is to be applied using a modified retrospective approach. The Company is currently evaluating the impact of the new pronouncement on its financial statements. Based on its preliminary assessment, upon adoption the Company expects to recognize significant right-to-use assets and corresponding lease liabilities on its balance sheet related to leased facilities and equipment. ASC Update No. 2016-13 In June 2016, the FASB issued ASC Update No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . The update is effective for fiscal years beginning after December 15, 2019. Early adoption is permitted for fiscal years beginning after December 15, 2018. The purpose of Update No. 2016-13 is to replace the current incurred loss impairment methodology for financial assets measured at amortized cost with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information, including forecasted information, to develop credit loss estimates. The Company is in the process of determining the effect that the adoption will have on its financial position and results of operation. ASC Update No. 2016-15 In August 2016, the FASB issued ASC Update No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. The update is effective for fiscal years beginning after December 15, 2017 and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. The purpose of Update No. 2016-15 is to reduce the diversity in practice in presentation and classification of the following items within the statement of cash flows: debt prepayments, settlement of zero coupon debt instruments, contingent consideration payments, insurance proceeds, securitization transactions and distributions from equity method investees. The update also addresses classification of transactions that have characteristics of more than one class of cash flows. The Company is in the process of determining the effect that the adoption will have on its financial position and results of operations. ASC Update No. 2016-16 In October 2016, the FASB issued ASC Update No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory . The update is effective for fiscal years beginning after December 15, 2017, including interim reporting periods within those fiscal years. Early adoption is permitted as of the beginning of an annual reporting period for which financial statements (interim or annual) have not been issued or made available for issuance. The purpose of Update No. 2016-16 is to allow an entity to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs, as opposed to waiting until the asset is sold to an outside party. The Company is in the process of determining the effect that the adoption will have on its financial position and results of operations. ASC Update No. 2017-04 In January 2017, the FASB issued ASC Update No. 2017-04, Intangibles--Goodwill and Other (Topic 350): Simplifying the Test of Goodwill Impairment. This ASC simplifies the accounting for goodwill impairment for all entities by requiring impairment charges to be based on the first step of the goodwill impairment test under ASC 350. Under previous guidance, if the fair value of a reporting unit is lower than its carrying amount (Step 1), an entity calculates any impairment charge by comparing the implied fair value of goodwill with its carrying amount (Step 2). The implied fair value of goodwill is calculated by deducting the fair value of all assets and liabilities of the reporting unit from the reporting unit’s fair value as determined in Step 1. To determine the implied fair value of goodwill, entities estimate the fair value of any unrecognized intangible assets (including in-process research and development) and any corporate-level assets or liabilities that were included in the determination of the carrying amount and fair value of the reporting unit in Step 1. Under this new guidance if a reporting unit's carrying value exceeds its fair value, an entity will record an impairment charge based on that difference with such impairment charge limited to the amount of goodwill in the reporting unit. This ASC does not change the guidance on completing Step 1 of the goodwill impairment test. An entity will still be able to perform today’s optional qualitative goodwill impairment assessment before determining whether to proceed to Step 1. This ASC will be applied prospectively and is effective for annual and interim impairment test performed in periods beginning after December 15, 2019 for public business enterprises. Early adoption is permitted for annual and interim goodwill impairment testing dates after January 1, 2017. The Company elected to early adopt this ASC as of January 1, 2017. The adoption of this ASC had no impact on the Company's consolidated statements of operations, financial condition or cash flows. The Company expects that adoption of this ASC will simplify the evaluation and recording of goodwill impairment charges, if any. ASC Update No. 2017-09 In May 2017, the FASB issued ASC Update No. 2017-09, Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting. The update is effective for annual periods beginning on or after December 15, 2017. Early adoption is permitted. The purpose of Update No. 2017-09 is to clarify when to account for a change to the terms or conditions of a share-based payment award as a modification under Topic 718, Compensation - Stock Compensation . Under this new guidance, modification accounting is only required if the fair value, the vesting conditions, or the equity or liability classification of the award changes as a result of the change in terms or conditions. The Company expects that the adoption of this standard will only affect, on a prospective basis, the manner in which the Company evaluates any changes to the terms or conditions of its share-based payment awards. There are no other recent accounting pronouncements issued by the FASB that would have a material impact on the Company's financial statements. |
Marketable Securities (Notes)
Marketable Securities (Notes) | 6 Months Ended |
Jun. 30, 2017 | |
Marketable Securities [Abstract] | |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | Marketable Securities Marketable securities as of June 30, 2017 and December 31, 2016 consisted of the following: June 30, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Money market mutual funds $ 8,031 $ — $ — $ 8,031 United States treasuries 4,014 — (3 ) 4,011 Certificates of deposit 1,729 — — 1,729 Total marketable securities designated as available-for-sale $ 13,774 $ — $ (3 ) $ 13,771 December 31, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Money market mutual funds $ 21,848 $ — $ — $ 21,848 Certificates of deposit 3,864 — — 3,864 Total marketable securities designated as available-for-sale $ 25,712 $ — $ — $ 25,712 The amortized costs and fair value of marketable securities as of June 30, 2017 and December 31, 2016 are shown below by effective maturity. Effective maturities may differ from contractual maturities because the issuers of the securities may have the right to prepay obligations without prepayment penalties. June 30, 2017 Amortized Cost Fair Value Due in less than one year $ 5,743 $ 5,740 December 31, 2016 Amortized Cost Fair Value Due in less than one year $ 3,864 $ 3,864 Interest income from marketable securities was $30 and $20 during the three months ended June 30, 2017 and 2016 , |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2017 | |
Share-based Compensation [Abstract] | |
Stock-Based Compensation | Stockholder's Equity (a) Stock Equity and Incentive Plan The Company adopted ASC Update No. 2016-09, Compensation- Stock Compensation (ASC Topic 718): Improvements to Employee Share-Based Payment Accounting on January 1, 2017. Although, this ASC update did not impact the Company’s results of operations, financial position or cash flows for any periods prior to the adoption, the adoption of this ASC update had the following impact on the date of adoption: • The adoption of ASC Update No. 2016-09 requires all income tax adjustments to be recorded in the consolidated statements of operations. The cumulative adjustment upon adoption to accumulated earnings was zero since the increase in net deferred tax assets was fully offset by a corresponding increase in the deferred tax asset valuation allowance. The amount of deferred tax assets that had not been previously recognized due to the recognition of excess tax benefits was $1,571 . • The tax benefit or expense is required to be classified as a cash flow provided by (used in) operating activities. It was previously required to be presented as a cash flow provided by (used in) financing activities in the Consolidated Statements of Cash Flows, with a corresponding adjustment to operating cash flows. • In the diluted net earnings per share calculation, when applying the treasury stock method for shares that could be repurchased, the assumed proceeds no longer include the amount of excess tax benefit. This provision, which is only applicable on a prospective basis, did not have an impact on the Company's diluted net earnings per share calculation for the three and six months ended June 30, 2017 . • The Company has elected to account for forfeitures on share-based payments as these forfeitures occur, which represents a change from the accounting previously required under ASC Topic 718. As a result, future forfeitures could result in a significant reversal of stock-based compensation expense recognized in the period in which such forfeitures occur. During the three and six months ended June 30, 2017 , as a result of share-based award forfeitures, the Company recorded a reversal of previously recognized stock-based compensation expense of $52 and $57 , respectively. In addition, had the Company continued to account for stock-based compensation expense related to forfeitures of share-based payments based on estimating the number of awards expected to be forfeited and recognizing only stock-based compensation expense on awards expected to vest, the Company would have recognized $778 and $ 1,705 of stock-based compensation expense, or $71 and $ 87 less than what was actually recorded, during the three and six months ended June 30, 2017 , respectively. The Company recognizes stock-based compensation in accordance with the provisions of ASC Topic 718, Compensation--Stock Compensation . Stock-based compensation expense, excluding compensation charges related to our employee stock purchase plan, or the ESPP, was $ 849 and $ 841 for the three months ended June 30, 2017 and 2016 , respectively, and $1,792 and $1,881 for the six months ended June 30, 2017 and 2016 , respectively. As of June 30, 2017 , there was $1,794 of total unrecognized compensation expense related to stock options, which is expected to be recognized over a weighted-average period of 3.13 years. As of June 30, 2017 , there was $4,913 of total unrecognized compensation expense related to restricted stock awards, which is expected to be recognized over a weighted-average period of 2.68 years. Stock Options During the three months ended June 30, 2017 , no stock options were exercised for common stock. Additionally, during the three months ended June 30, 2017 , no stock options were granted and 7 stock options were forfeited. During the six months ended June 30, 2017 , 114 stock options were exercised for common stock, none of which was delivered to the Company as payment for the exercise price or related minimum tax withholding obligations. Additionally, during the six months ended June 30, 2017 , 531 stock options were granted with a weighted average grant date fair value of $2.47 per share and 11 stock options were forfeited. The Company has estimated the fair value of each option grant on the date of grant using the Black-Scholes option-pricing model. The weighted average assumptions utilized to determine the fair value of options granted during the six months ended June 30, 2017 and 2016 were as follows: Six Months Ended June 30, 2017 2016 Risk-free interest rate 1.96 % 1.43 % Expected volatility 35.53 % 38.22 % Expected life (in years) 4.22 4.17 Dividend yield 0 % 0 % As of June 30, 2017 , there were 1,018 options outstanding with a weighted average exercise price of $9.74 per share and 292 options exercisable with a weighted average exercise price of $12.31 per share. Restricted Stock During the three months ended June 30, 2017 , 14 shares of restricted stock were granted with a weighted average grant date fair value of $9.47 per share and 17 shares of restricted stock were forfeited. Additionally, during the three months ended June 30, 2017 , 10 shares of restricted stock vested, of which no shares of common stock were surrendered to the Company as payment by employees in lieu of cash to satisfy minimum tax withholding obligations in connection with the vesting of restricted stock. During the six months ended June 30, 2017 , 223 shares of restricted stock were granted with a weighted average grant date fair value of $8.39 per share and 17 shares of restricted stock were forfeited. Additionally, during the six months ended June 30, 2017 , 243 shares of restricted stock vested, of which 43 shares of common stock were surrendered to the Company as payment by employees in lieu of cash to satisfy minimum tax withholding obligations in connection with the vesting of restricted stock and these shares were immediately retired. As of June 30, 2017 , there were 607 shares of restricted stock outstanding still subject to service-based vesting conditions. As of June 30, 2017 , the Company had no shares of restricted stock that were subject to performance-based or market-based vesting conditions. (b) Employee Stock Purchase Plan On June 15, 2016, at the Company's 2016 Annual Meeting of Stockholders, the stockholders of the Company approved amendments to the Company's Amended and Restated 1996 Employee Stock Purchase Plan (ESPP) that, among other things, increased the number of shares of common stock reserved for issuance to a total of 1,650 . As amended, the ESPP affords eligible employees the right to purchase common stock, via payroll deductions, through various offering periods at a purchase price equal to 85% of the fair market value of the common stock on the first or last day of the offering period, whichever is lower. During the three and six months ended June 30, 2017 , 26 shares were issued under the ESPP plan. During the three and six months ended June 30, 2016, 0 and 18 shares were issued under the ESPP plan, respectively. The Company recorded compensation charges related to the ESPP of $3 and $0 for the three months ended June 30, 2017 and 2016 , respectively, and $20 and $13 for the six months ended June 30, 2017 and 2016 , respectively. (c) Stock- Based Compensation Expense The following table presents stock-based compensation expense, including expense for the ESPP, in the Company's consolidated statements of operations for the six months ended June 30, 2017 and 2016 : Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Cost of product sales $ 72 $ 75 $ 154 $ 165 Cost of service sales 1 — 1 1 Research and development 170 166 359 352 Sales, marketing and support 221 251 489 524 General and administrative 388 336 809 839 $ 852 $ 828 $ 1,812 $ 1,881 (d) Accumulated Other Comprehensive Loss Comprehensive income (loss) includes net earnings (loss), unrealized gains and losses from foreign currency translation, unrealized gains and losses from available for sale marketable securities and changes in fair value related to interest rate swap derivative instruments, net of tax attributes, which were not material. The components of the Company’s comprehensive income (loss) and the effect on earnings for the periods presented are detailed in the accompanying consolidated statements of comprehensive income (loss). The balances for the three months ended June 30, 2017 and 2016 are as follows: Foreign Currency Translation Unrealized Gain (Loss) on Available for Sale Marketable Securities Interest Rate Swaps Total Accumulated Other Comprehensive Loss Balance, March 31, 2017 $ (16,050 ) $ — $ (131 ) $ (16,181 ) Other comprehensive income (loss) before reclassifications (1) 2,440 (3 ) (1 ) 2,436 Amounts reclassified from AOCI to Other income, net (2) — — 19 19 Net other comprehensive income (loss), June 30, 2017 2,440 (3 ) 18 2,455 Balance, June 30, 2017 $ (13,610 ) $ (3 ) $ (113 ) $ (13,726 ) Foreign Currency Translation Unrealized Gain (Loss) on Available for Sale Marketable Securities Interest Rate Swaps Total Accumulated Other Comprehensive Loss Balance, March 31, 2016 $ (8,039 ) $ 1 $ (258 ) $ (8,296 ) Other comprehensive loss before reclassifications (1) (4,472 ) — (16 ) (4,488 ) Amounts reclassified from AOCI to Other income, net (2) — — 25 25 Net other comprehensive (loss) income, June 30, 2016 (4,472 ) — 9 (4,463 ) Balance, June 30, 2016 $ (12,511 ) $ 1 $ (249 ) $ (12,759 ) The balances for the six months ended June 30, 2017 and 2016 are as follows: Foreign Currency Translation Unrealized Gain (Loss) on Available for Sale Marketable Securities Interest Rate Swaps Total Accumulated Other Comprehensive Loss Balance, December 31, 2016 $ (16,651 ) $ — $ (158 ) $ (16,809 ) Other comprehensive income (loss) before reclassifications (1) 3,041 (3 ) 4 3,042 Amounts reclassified from AOCI to Other income, net (2) — — 41 41 Net other comprehensive income (loss), June 30, 2017 3,041 (3 ) 45 3,083 Balance, June 30, 2017 $ (13,610 ) $ (3 ) $ (113 ) $ (13,726 ) Foreign Currency Translation Unrealized Gain (Loss) on Available for Sale Marketable Securities Interest Rate Swaps Total Accumulated Other Comprehensive Loss Balance, December 31, 2015 $ (7,363 ) $ 1 $ (238 ) $ (7,600 ) Other comprehensive loss before reclassifications (1) (5,148 ) — (61 ) (5,209 ) Amounts reclassified from AOCI to Other income, net (2) — — 50 50 Net other comprehensive loss, June 30, 2016 (5,148 ) — (11 ) (5,159 ) Balance, June 30, 2016 $ (12,511 ) $ 1 $ (249 ) $ (12,759 ) (1) For additional information, see Note 4, "Marketable Securities." (2) For additional information, see Note 17, "Derivative Instruments and Hedging Activities." |
Net Income (Loss) per Common Sh
Net Income (Loss) per Common Share | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
Net Income per Common Share | Net Loss per Common Share Basic net loss per share is calculated based on the weighted average number of common shares outstanding during the period. Diluted net loss per share incorporates the dilutive effect of common stock equivalent options, warrants and other convertible securities, if any, as determined with the treasury stock accounting method. For the three and six months ended , June 30, 2017 and 2016 , since there was a net loss, the Company excluded all outstanding stock options and non-vested restricted shares from its diluted loss per share calculation, as inclusion of these securities would have reduced the net loss per share. A reconciliation of the basic and diluted weighted average common shares outstanding is as follows: Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 Weighted average common shares outstanding—basic 16,446 15,825 16,354 15,774 Dilutive common shares issuable in connection with stock plans — — — — Weighted average common shares outstanding—diluted 16,446 15,825 16,354 15,774 |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories The Company adopted ASC 2015-11, Simplifying the Measurement of Inventory as of January 1, 2017. ASC 2015-11 simplifies the subsequent measurement of inventory by replacing the lower of cost or market test with a lower of cost or net realizable value test. The adoption of this standard did not have a material impact on the Company’s consolidated financial position or results of operations. Inventories are stated at the lower of cost or net realizable value using the first-in first-out costing method. Inventories as of June 30, 2017 and December 31, 2016 include the costs of material, labor, and factory overhead. Components of inventories consist of the following: June 30, December 31, Raw materials $ 11,946 $ 10,606 Work in process 2,623 2,185 Finished goods 8,843 7,954 $ 23,412 $ 20,745 |
Product Warranty
Product Warranty | 6 Months Ended |
Jun. 30, 2017 | |
Product Warranties Disclosures [Abstract] | |
Product Warranty | Product Warranty The Company’s products carry standard limited warranties that range from one to two years and vary by product. The warranty period begins on the date of retail purchase or lease by the original purchaser. The Company accrues estimated product warranty costs at the time of sale and any additional amounts are recorded when such costs are probable and can be reasonably estimated. Factors that affect the Company’s warranty liability include the number of units sold or leased, historical and anticipated rates of warranty repairs and the cost per repair. Warranty and related costs are reflected within sales, marketing and support in the accompanying consolidated statements of operations. As of June 30, 2017 and December 31, 2016 , the Company had accrued product warranty costs of $2,407 and $2,280 , respectively. The following table summarizes product warranty activity during 2017 and 2016 : Six Months Ended June 30, 2017 2016 Beginning balance $ 2,280 $ 1,880 Charges to expense 500 1,044 Costs incurred (373 ) (697 ) Ending balance $ 2,407 $ 2,227 |
Debt (Notes)
Debt (Notes) | 6 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | Debt Long-term debt consisted of the following: June 30, December 31, Term note $ 45,425 $ 53,625 Mortgage loan 2,867 2,951 Equipment loans — 1,477 Total 48,292 58,053 Less amounts classified as current 2,477 7,900 Long-term debt, excluding current portion $ 45,815 $ 50,153 Term Note and Line of Credit On July 1, 2014, the Company entered into (i) a five -year senior credit facility agreement (the Credit Agreement) with Bank of America, N.A., as Administrative Agent, and the lenders named from time to time as parties thereto (the Lenders), for an aggregate amount of up to $80,000 , including a revolving credit facility (the Revolver) of up to $15,000 and a term loan (Term Loan) of $65,000 to be used for general corporate purposes, including both (A) the refinancing of the Company’s $30,000 then-outstanding indebtedness under its previous credit facility and (B) permitted acquisitions, (ii) revolving credit notes (together, the Revolving Credit Note) to evidence the Revolver, (iii) term notes (together, the Term Note, and together with the Revolving Credit Note, the Notes) to evidence the Term Loan, (iv) a Security Agreement (the Security Agreement) required by the Lenders with respect to the grant by the Company of a security interest in substantially all of the assets of the Company in order to secure the obligations of the Company under the Credit Agreement and the Notes, and (v) Pledge Agreements (the Pledge Agreements) required by the Lenders with respect to the grant by the Company of a security interest in 65% of the capital stock of each of KVH Industries A/S and KVH Industries U.K. Limited held by the Company in order to secure the obligations of the Company under the Credit Agreement and the Notes. The Credit Agreement was amended in March 2017 to modify the Maximum Consolidated Leverage Ratio, the Applicable Rate, the Consolidated Fixed Charge Coverage Ratio and the amortization schedule of the Term Loan, as well as to make certain other changes. The amendment was accounted for as a debt modification as it did not result in a significant modification to the Credit Agreement. In connection with the March 2017 amendment, the Company made an additional principal repayment of $6,000 on the Term Note and amended the repayment terms. Under the amended terms, the Company must make principal repayments of $575 every three months starting on April 1, 2017 until the Term Note maturity on July 1, 2019. On the maturity date, the entire remaining principal balance of the loan, including any future loans under the Revolver, is due and payable, together with all accrued and unpaid interest, penalties, and any other amounts due and payable under the Credit Agreement. The Credit Agreement contains provisions requiring the mandatory prepayment of amounts outstanding under the Term Loan and the Revolver under specified circumstances, including (i) 100% of the net cash proceeds from certain dispositions to the extent not reinvested in the Company’s business within a stated period, (ii) 50% of the net cash proceeds from stated equity issuances and (iii) 100% of the net cash proceeds from certain receipts of more than $250 outside the ordinary course of business. The prepayments are first applied to the Term Loan, in inverse order of maturity, and then to the Revolver. In the discretion of the Administrative Agent, certain mandatory prepayments made on the Revolver can permanently reduce the amount of credit available under the Revolver. Loans under the Credit Agreement bear interest at varying rates determined in accordance with the Credit Agreement. Each LIBOR Rate Loan, as defined in the Credit Agreement, bears interest on the outstanding principal amount thereof for each interest period from the applicable borrowing date at a rate per annum equal to the LIBOR Daily Floating Rate or LIBOR Monthly Floating Rate, each as defined in the Credit Agreement, as applicable, plus the Applicable Rate, as defined in the Credit Agreement, and each Base Rate Loan, as defined in the Credit Agreement, bears interest on the outstanding principal amount thereof from the applicable borrowing date at a rate per annum equal to the Base Rate, as defined in the Credit Agreement, plus the Applicable Rate. The Applicable Rate ranges from 1.75% to 2.25% , depending on the Company’s Consolidated Leverage Ratio, as defined in the Credit Agreement. The highest Applicable Rate applies when the Consolidated Leverage Ratio exceeds 1.50:1.00. Upon certain defaults, including failure to make payments when due, interest becomes payable at a higher default rate. Borrowings under the Revolver are subject to the satisfaction of numerous conditions precedent at the time of each borrowing, including the continued accuracy of the Company’s representations and warranties and the absence of any default under the Credit Agreement. As of June 30, 2017 , there were no borrowings outstanding under the Revolver and the full balance of $15,000 was available for borrowing. The Credit Agreement contains two financial covenants, a Maximum Consolidated Leverage Ratio and a Minimum Consolidated Fixed Charge Coverage Ratio, each as defined in the Credit Agreement. The Maximum Consolidated Leverage Ratio may not be greater than 1.50:1.00. The Minimum Consolidated Fixed Charge Coverage Ratio may not be less than 1.25:1.00. In the March 2017 amendment, the definition of the Consolidated Fixed Charge Coverage Ratio was amended to include only maintenance capital expenditures as defined. The Company was in compliance with these financial ratio debt covenants as of June 30, 2017 . The Credit Agreement imposes certain other affirmative and negative covenants, including without limitation covenants with respect to the payment of taxes and other obligations, compliance with laws, entry into material contracts, creation of liens, incurrence of indebtedness, investments, dispositions, fundamental changes, restricted payments, changes in the nature of the Company’s business, transactions with affiliates, corporate and accounting changes, and sale and leaseback arrangements. The Company’s obligation to repay loans under the Credit Agreement could be accelerated upon a default or event of default under the terms of the Credit Agreement, including certain failures to pay principal or interest when due, certain breaches of representations and warranties, the failure to comply with the Company’s affirmative and negative covenants under the Credit Agreement, a change of control of the Company, certain defaults in payment relating to other indebtedness, the acceleration of payment of certain other indebtedness, certain events relating to the liquidation, dissolution, bankruptcy, insolvency or receivership of the Company, the entry of certain judgments against the Company, certain events relating to the impairment of collateral or the Lenders' security interest therein, and any other material adverse change with respect to the Company. Mortgage Loan The Company has a mortgage loan (as amended, the Mortgage Loan) in the amount of $ 4,000 related to its headquarters facility in Middletown, Rhode Island. The loan term is ten years , with a principal amortization of 20 years . The interest rate is based on the BBA LIBOR Rate plus 2.00 percentage points. The Mortgage Loan is secured by the underlying property and improvements. The monthly mortgage payment is approximately $ 14 , plus interest, and increases in increments of approximately $ 1 each year over the life of the mortgage. Due to the difference in the term of the loan and amortization of the principal, a balloon payment of $ 2,551 is due on April 6, 2019. The loan contains one financial covenant, a Fixed Charge Coverage Ratio, which applies in the event that the Company's consolidated cash, cash equivalents and marketable securities balance falls below $ 25,000 at any time. As the Company's consolidated cash, cash equivalents, and marketable securities balance was above the minimum threshold throughout the six months ended June 30, 2017 , the Fixed Charge Coverage Ratio did not apply. Under the Mortgage Loan, the Company may prepay its outstanding loan balance subject to certain early termination charges as defined in the Mortgage Loan agreement. If the Company were to default on the Mortgage Loan, the underlying and improvements would be used as collateral. As discussed in Note 17, the Company entered into two interest rate swap agreements that are intended to hedge its mortgage interest obligations by fixing the interest rates specified in the Mortgage Loan to 5.91% for half of the principal amount outstanding and 6.07% for the remaining half of the principal amount outstanding as of April 1, 2010, over the term of the Mortgage Loan. Equipment Loans In January 2013, the Company borrowed $ 4,700 from a bank and pledged as collateral six satellite hubs and related equipment. This equipment loan had a term of five years, and carried a fixed rate of interest of 2.76% per annum. In December 2013, the Company borrowed $ 1,200 from a bank and pledged as collateral one satellite hub and related equipment. This equipment loan had a term of five years, and carried a fixed rate of interest of 3.08% per annum. In March 2017, the Company repaid in full the remaining outstanding balances of both loans before their 2018 maturity dates. |
Segment Reporting
Segment Reporting | 6 Months Ended |
Jun. 30, 2017 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting The financial results of each segment are based on revenues from external customers, cost of revenue and operating expenses that are directly attributable to the segment and an allocation of costs from shared functions. These shared functions include, but are not limited to, facilities, human resources, information technology, and engineering. Allocations are made based on management’s judgment of the most relevant factors, such as head count, number of customer sites, or other operational data that contribute to the shared costs. Certain corporate-level costs have not been allocated as they are not directly attributable to either segment. These costs primarily consist of broad corporate functions, including executive, legal, finance, and costs associated with corporate actions. Segment-level asset information has not been provided as such information is not reviewed by the chief operating decision-maker for purposes of assessing segment performance and allocating resources. There are no inter-segment sales or transactions. The Company's performance is impacted by the levels of activity in the marine and land mobile markets and defense sectors, among others. Performance in any particular period could be impacted by the timing of sales to certain large customers. The mobile connectivity segment primarily manufactures and distributes a comprehensive family of mobile satellite antenna products and services that provide access to television, the Internet and voice services while on the move. Product sales within the mobile connectivity segment accounted for 22% and 25% of consolidated net sales for the three months ended June 30, 2017 and 2016 , respectively, and 23% and 26% of consolidated net sales for the six months ended June 30, 2017 and 2016 , respectively. Sales of mini-VSAT Broadband airtime service accounted for 41% and 35% of consolidated net sales for the three months ended June 30, 2017 and 2016 , respectively, and 40% and 35% of consolidated net sales for the six months ended June 30, 2017 and 2016 , respectively. Sales of content and training services within the mobile connectivity segment accounted for 20% and 19% of consolidated net sales for the three months ended June 30, 2017 and 2016 , respectively, and 20% and 20% of consolidated net sales for the six months ended June 30, 2017 and 2016 , respectively. The inertial navigation segment manufactures and distributes a portfolio of digital compass and fiber optic gyro (FOG)-based systems that address the rigorous requirements of military and commercial customers and provide reliable, easy-to-use and continuously available navigation and pointing data. The principal product categories in this segment include the FOG-based inertial measurement units (IMUs) for precision guidance, FOGs for tactical navigation as well as pointing and stabilization systems, and digital compasses that provide accurate heading information for demanding applications, security, automation and access control equipment and systems. Sales of FOG-based guidance and navigation systems within the inertial navigation segment accounted for 12% and 9% of the consolidated net sales for the three months ended June 30, 2017 and 2016 , respectively, and 11% and 10% of the consolidated net sales for the six months ended June 30, 2017 and 2016 , respectively. No other single product class accounts for 10% or more of consolidated net sales. The Company operates in a number of major geographic areas across the globe. The Company generates international net sales, based upon customer location, primarily from customers located in Canada, Europe, Africa, Asia/Pacific, the Middle East, and India. International revenues represented 62% and 63% of consolidated net sales for the three months ended June 30, 2017 and 2016 , respectively, and 61% and 63% of consolidated net sales for the six months ended June 30, 2017 and 2016 , respectively. Sales to Canada represented 13% of consolidated net sales for the three months ended June 30, 2016. No other individual foreign country represented 10% or more of the Company's consolidated net sales for the three months ended June 30, 2017 and 2016. No individual foreign country represented 10% or more of consolidated net sales for the six months ended June 30, 2017 and 2016 . As of June 30, 2017 and December 31, 2016 , the long-lived tangible assets related to the Company’s international subsidiaries were less than 10% of the Company’s long-lived tangible assets and were deemed not material. Net sales and operating earnings (loss) for the Company's reporting segments and the Company's loss before income tax expense (benefit) for the three and six months ended June 30, 2017 and 2016 were as follows: Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 Net sales: Mobile connectivity $ 34,034 $ 36,890 $ 68,321 $ 72,155 Inertial navigation 6,415 9,076 12,339 14,191 Consolidated net sales $ 40,449 $ 45,966 $ 80,660 $ 86,346 Operating earnings (loss): Mobile connectivity $ 2,638 $ 1,631 $ 3,260 $ 3,621 Inertial navigation 362 1,596 318 669 Subtotal 3,000 3,227 3,578 4,290 Unallocated, net (4,368 ) (3,920 ) (9,416 ) (8,357 ) Loss from operations (1,368 ) (693 ) (5,838 ) (4,067 ) Net interest and other (expense) income (302 ) (91 ) (557 ) (438 ) Loss before income tax expense (benefit) $ (1,670 ) $ (784 ) $ (6,395 ) $ (4,505 ) Depreciation expense and amortization expense for the Company's segments are presented in the following table for the periods presented: Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 Depreciation expense: Mobile connectivity $ 1,394 $ 1,567 $ 2,872 $ 3,226 Inertial navigation 199 224 395 448 Unallocated 21 24 40 48 Total consolidated depreciation expense $ 1,614 $ 1,815 $ 3,307 $ 3,722 Amortization expense: Mobile connectivity $ 1,102 $ 1,250 $ 2,170 $ 2,533 Inertial navigation — — — — Unallocated — — — — Total consolidated amortization expense $ 1,102 $ 1,250 $ 2,170 $ 2,533 |
Legal Matters
Legal Matters | 6 Months Ended |
Jun. 30, 2017 | |
Legal Matters [Abstract] | |
Legal Matters | Legal Matters From time to time, the Company is involved in litigation incidental to the conduct of its business. In the ordinary course of business, the Company is a party to inquiries, legal proceedings and claims including, from time to time, disagreements with vendors and customers. The Company is not a party to any lawsuit or proceeding that, in management's opinion, is likely to materially harm the Company's business, results of operations, financial condition, or cash flows. |
Share Buyback Program
Share Buyback Program | 6 Months Ended |
Jun. 30, 2017 | |
Disclosure of Repurchase Agreements [Abstract] | |
Share Buyback Program | Share Buyback Program On November 26, 2008, the Company’s Board of Directors authorized a program to repurchase up to 1,000 shares of the Company’s common stock. As of June 30, 2017 , 341 shares of the Company’s common stock remain available for repurchase under the authorized program. The repurchase program is funded using the Company’s existing cash, cash equivalents, marketable securities and future cash flows. Under the repurchase program, the Company, at management’s discretion, may repurchase shares on the open market from time to time, in privately negotiated transactions or block transactions, or through an accelerated repurchase agreement. The timing of such repurchases depends on availability of shares, price, market conditions, alternative uses of capital, and applicable regulatory requirements. The program may be modified, suspended or terminated at any time without prior notice. The repurchase program has no expiration date. There were no other repurchase programs outstanding during the six months ended June 30, 2017 and no repurchase programs expired during the period. During the six months ended June 30, 2017 and 2016, the Company did not repurchase any shares of its common stock. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements ASC Topic 820, Fair Value Measurements and Disclosures (ASC 820), provides a framework for measuring fair value and requires expanded disclosures regarding fair value measurements. ASC 820 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 describes three levels of inputs that may be used to measure fair value: Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. The Company’s Level 1 assets are investments in money market mutual funds, U.S. treasury securities, and certificates of deposit. Level 2: Quoted prices for similar assets or liabilities in active markets; or observable prices that are based on observable market data, based on directly or indirectly market-corroborated inputs. The Company’s Level 2 liabilities are interest rate swaps. Level 3: Unobservable inputs that are supported by little or no market activity, and are developed based on the best information available given the circumstances. The Company has no Level 3 assets. Assets and liabilities measured at fair value are based on the valuation techniques identified in the table below. The valuation techniques are: (a) Market approach—prices and other relevant information generated by market transactions involving identical or comparable assets. (b) The valuations of the interest rate swaps intended to mitigate the Company’s interest rate risk are determined with the assistance of a third-party financial institution using widely accepted valuation techniques, including discounted cash flow analysis on the expected cash flows of each instrument. This analysis utilizes observable market-based inputs, including interest rate curves and interest rate volatility, and reflects the contractual terms of these instruments, including the period to maturity. The following tables present financial assets and liabilities at June 30, 2017 and December 31, 2016 for which the Company measures fair value on a recurring basis, by level, within the fair value hierarchy: June 30, 2017 Total Level 1 Level 2 Level 3 Valuation Technique Assets Money market mutual funds $ 8,031 $ 8,031 $ — $ — (a) United States treasuries 4,011 4,011 — — (a) Certificates of deposit 1,729 1,729 — — (a) Liabilities Interest rate swaps 113 — 113 — (b) December 31, 2016 Total Level 1 Level 2 Level 3 Valuation Technique Assets Money market mutual funds $ 21,848 $ 21,848 $ — $ — (a) Certificates of deposit 3,864 3,864 — — (a) Liabilities Interest rate swaps 158 — 158 — (b) Certain financial instruments are carried at cost on the consolidated balance sheets, which approximates fair value due to their short-term, highly liquid nature. These instruments include cash and cash equivalents, accounts receivable, accounts payable, and accrued expenses. The carrying amount of the Company's debt approximates fair value based on currently available quoted rates of similarly structured debt. Assets Measured and Recorded at Fair Value on a Nonrecurring Basis The Company's non-financial assets, such as goodwill, intangible assets, and other long-lived assets resulting from business combinations, are measured at fair value using income approach valuation methodologies at the date of acquisition and subsequently re-measured if an impairment exists. There were no impairments of the Company’s non-financial assets noted as of June 30, 2017 . The Company does not have any liabilities that are recorded at fair value on a non-recurring basis. |
Goodwill and Intagible Assets
Goodwill and Intagible Assets | 6 Months Ended |
Jun. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill The following table sets forth the changes in the carrying amount of goodwill for the six months ended June 30, 2017 : Amounts Balance at December 31, 2016 $ 31,343 Foreign currency translation adjustment 1,459 Balance at June 30, 2017 $ 32,802 ASC Topic 350, Intangibles—Goodwill and Other (ASC 350) requires the completion of a goodwill impairment test at least annually. Historically, this goodwill impairment test was comprised of a two-step process. The first step compares the carrying value of the Company’s reporting units to their estimated fair values as of the test date. If fair value is less than carrying value, a second step is performed to quantify the amount of the impairment, if any. As of August 31, 2016 (the Company's annual goodwill impairment test date), the Company performed its annual impairment test for goodwill at the reporting unit level and, after conducting the first step, determined that it was not necessary to conduct the second step as it concluded that the fair value of its reporting units exceeded their carrying value. If different assumptions were used, particularly with respect to estimating future cash flows, weighted average costs of capital, and terminal growth rates, different estimates of fair value may have resulted. However, based on the excess of fair value over carrying value and additional sensitivity analysis considered with respect to the Company’s valuation assumptions, the Company concluded that it was more likely than not that no goodwill impairment exists. As of August 31, 2016, the Company noted that the fair value of all of the Company’s reporting units exceeded their carrying values by more than 10%. The Company notes that its one reporting unit whose fair value exceeded its carrying value by less than 100% had goodwill of approximately $4,401 at June 30, 2017 . In January 2017, the FASB issued ASC Update No. 2017-04, Intangibles--Goodwill and Other (Topic 350): Simplifying the Test of Goodwill Impairment. This ASC simplifies the accounting for goodwill impairment for all entities by requiring impairment charges to be based on the first step of the goodwill impairment test under ASC 350. Under previous guidance, if the fair value of a reporting unit is lower than its carrying amount (Step 1), an entity calculates any impairment charge by comparing the implied fair value of goodwill with its carrying amount (Step 2). The implied fair value of goodwill is calculated by deducting the fair value of all assets and liabilities of the reporting unit from the reporting unit’s fair value as determined in Step 1. To determine the implied fair value of goodwill, entities estimate the fair value of any unrecognized intangible assets (including in-process research and development) and any corporate-level assets or liabilities that were included in the determination of the carrying amount and fair value of the reporting unit in Step 1. Under this new guidance if a reporting unit's carrying value exceeds its fair value, an entity will record an impairment charge based on that difference with such impairment charge limited to the amount of goodwill in the reporting unit. This ASC does not change the guidance on completing Step 1 of the goodwill impairment test. An entity will still be able to perform today’s optional qualitative goodwill impairment assessment before determining whether to proceed to Step 1. This ASC will be applied prospectively and is effective for annual and interim impairment test performed in periods beginning after December 15, 2019 for public business enterprises. Early adoption is permitted for annual and interim goodwill impairment testing dates after January 1, 2017. The Company has elected to early adopt this ASC as of January 1, 2017. The adoption of this ASC had no impact on the Company's consolidated statements of operations, financial condition or cash flows. The Company evaluated whether any potential indicators of impairment existed as of June 30, 2017 that would require an interim goodwill impairment test. Although the Company has experienced a decline in sales within its mobile connectivity operating segment, which is the operating segment that contains all of the Company's reporting units with goodwill, the overall period and magnitude of the decline has not been significant and the operating results of its reporting units with goodwill have not differed significantly from the forecasted results utilized in the last annual goodwill impairment test completed as of August 31, 2016. In addition, the operating earnings of the Company's mobile connectivity operating segment increased by 62% for the three months ended June 30, 2017 as compared to the same period of the prior year. As a result, for the two reporting units that had over 100% excess of fair value over carrying value of the reporting unit's respective net assets as of August 31, 2016, given the current and forecasted operating trends, the Company does not believe that there is a significant risk related to a potential goodwill impairment. These two reporting units represent $28,401 , or 87% , of the Company's total consolidated goodwill as of June 30, 2017. With respect to the Company other reporting unit with goodwill of $4,401 as of June 30, 2017, the Company does note that a continued further decline sales or operating results could result in a goodwill impairment. Intangible Assets The changes in the carrying amount of intangible assets during the six months ended June 30, 2017 are as follows: Amounts Balance at December 31, 2016 $ 17,838 Amortization expense (2,170 ) Intangible assets acquired in asset acquisition 100 Foreign currency translation adjustment 889 Balance at June 30, 2017 $ 16,657 Intangible assets arose from an acquisition made prior to 2013, the acquisition of KVH Media Group (acquired as Headland Media Limited) in May 2013 and the acquisition of Videotel in July 2014. Intangibles arising from the acquisition made prior to 2013 are being amortized on a straight-line basis over an estimated useful life of 7 years . Intangibles arising from the acquisition of KVH Media Group are being amortized on a straight-line basis over the estimated useful life of: (i) 10 years for acquired subscriber relationships, (ii) 15 years for distribution rights, (iii) 3 years for internally developed software and (iv) 2 years for proprietary content. Intangibles arising from the acquisition of Videotel are being amortized on a straight-line basis over the estimated useful life of: (i) 8 years for acquired subscriber relationships, (ii) 5 years for favorable leases, (iii) 4 years for internally developed software and (iv) 5 years for proprietary content. The intangibles arising from the KVH Media Group and Videotel acquisitions were recorded in pounds sterling and fluctuations in exchange rates could cause these amounts to increase or decrease from time to time. In January 2017, the Company completed the acquisition of certain subscriber relationships from a third party. This acquisition did not meet the definition of a business under ASC 2017-01, Business Combinations (Topic 805)-Clarifying the Definition of a Business , which the Company adopted on October 1, 2016. The Company ascribed $100 of the initial purchase price to the acquired subscriber relationships definite-lived intangible assets with an initial estimated useful life of 10 years. Under the asset purchase agreement, the purchase price includes a component of contingent consideration under which the Company is required to pay a percentage of recurring revenues received from the acquired subscriber relationships through 2026 up to a maximum annual payment of $114 . As the acquisition did not represent a business combination, the contingent consideration arrangement is recognized only when the contingency is resolved and the consideration is paid or becomes payable. The amounts payable under the contingent consideration arrangement, if any, will be included in the measurement of the cost of the acquired subscriber relationships. During the six months ended June 30, 2017 , no additional consideration was earned under the contingent consideration arrangement. Acquired intangible assets are subject to amortization. The following table summarizes acquired intangible assets at June 30, 2017 and December 31, 2016 , respectively: Gross Carrying Amount Accumulated Amortization Net Carrying Value June 30, 2017 Subscriber relationships $ 17,523 $ 7,366 $ 10,157 Distribution rights 4,277 1,312 2,965 Internally developed software 2,318 2,064 254 Proprietary content 8,128 5,152 2,976 Intellectual property 2,284 2,219 65 Favorable lease 641 401 240 $ 35,171 $ 18,514 $ 16,657 December 31, 2016 Subscriber relationships $ 16,888 $ 6,431 $ 10,457 Distribution rights 4,122 1,180 2,942 Internally developed software 2,301 1,904 397 Proprietary content 7,960 4,431 3,529 Intellectual property 2,284 2,056 228 Favorable lease 627 342 285 $ 34,182 $ 16,344 $ 17,838 Amortization expense related to intangible assets for the three and six months ended June 30, 2017 and 2016 was as follows: Three Months Ended Six Months Ended June 30, June 30, Expense Category 2017 2016 2017 2016 Cost of service sales $ 367 $ 417 $ 722 $ 869 General administrative expense 735 833 1,448 1,664 Total amortization expense $ 1,102 $ 1,250 $ 2,170 $ 2,533 As of June 30, 2017 , the total weighted average remaining useful lives of the definite-lived intangible assets was 4.7 years and the weighted average remaining useful lives by the definite-lived intangible asset category are as follows: Intangible Asset Weighted Average Remaining Useful Life in Years Subscriber relationships 5.3 Distribution rights 10.8 Internally developed software 0.9 Proprietary content 2.0 Intellectual property 0.3 Favorable lease 2.0 Estimated future amortization expense remaining at June 30, 2017 for intangible assets acquired is as follows: Remainder of 2017 $ 2,113 2018 3,931 2019 3,007 2020 2,206 2021 2,206 Thereafter 3,194 Total future amortization expense $ 16,657 For intangible assets, the Company assesses the carrying value of these assets whenever events or circumstances indicate that the carrying value may not be recoverable. Recoverability of assets to be held and used is measured by comparing the carrying amount of an asset, or asset group, to the future undiscounted cash flows expected to be generated by the asset, or asset group. There were no events or changes in circumstances during the second quarter of 2017 which indicated that an assessment of the impairment of goodwill and intangible assets was required. |
Business and Credit Concentrati
Business and Credit Concentrations | 6 Months Ended |
Jun. 30, 2017 | |
Risks and Uncertainties [Abstract] | |
Business and Credit Concentrations | Business and Credit Concentrations Concentrations of risk with respect to trade accounts receivable are generally limited due to the large number of customers and their dispersion across several geographic areas. Although the Company does not foresee that credit risk associated with these receivables will deviate from historical experience, repayment is dependent upon the financial stability of those individual customers. The Company establishes allowances for potential bad debts and evaluates, on a monthly basis, the adequacy of those reserves based upon historical experience and its expectations for future collectability concerns. The Company performs ongoing credit evaluations of the financial condition of its customers and generally does not require collateral. No single customer accounted for 10% or more of consolidated net sales for three and six months ended June 30, 2017 or 2016 or accounts receivable at June 30, 2017 or December 31, 2016. Certain components from third parties used in the Company’s products are procured from single sources of supply. The failure of a supplier, including a subcontractor, to deliver on schedule could delay or interrupt the Company’s delivery of products and thereby materially adversely affect the Company’s revenues and operating results. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 6 Months Ended |
Jun. 30, 2017 | |
General Discussion of Derivative Instruments and Hedging Activities [Abstract] | |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities Effective April 1, 2010, in order to reduce the volatility of cash outflows that arise from changes in interest rates, the Company entered into two interest rate swap agreements. These interest rate swap agreements are intended to hedge the Company’s mortgage loan related to its headquarters facility in Middletown, Rhode Island by fixing the interest rates specified in the mortgage loan to 5.9% for half of the principal amount outstanding and 6.1% for the remaining half of the principal amount outstanding as of April 1, 2010 until the mortgage loan expires on April 16, 2019 . The Company does not use derivatives for speculative purposes. For a derivative that is designated as a cash flow hedge, changes in the fair value of the derivative are recognized in accumulated other comprehensive (loss) income (AOCI) to the extent the derivative is effective at offsetting the changes in the cash flows being hedged until the hedged item affects earnings. As the Company makes the required principal and interest payments under the mortgage loan and the related interest rate swaps are settled, the Company reclassifies the amounts recorded in AOCI related to the changes in the fair value of the settled interest rate swaps to earnings. To the extent there is any hedge ineffectiveness, changes in fair value relating to the ineffective portion are immediately recognized in earnings in other income (expense) in the consolidated statements of income. The interest rate swap is recorded within accrued other liabilities on the balance sheet. The critical terms of the interest rate swaps were designed to mirror the terms of the Company’s mortgage loans. The Company designated these derivatives as cash flow hedges of the variability of the LIBOR-based interest payments on principal over a nine-year period, which ends on April 1, 2019. As of June 30, 2017 , the Company determined that the existence of hedge ineffectiveness, if any, was immaterial and all changes in the fair value of the interest rate caps were recorded in the consolidated statements of comprehensive (loss) income as a component of AOCI. As of June 30, 2017 , the Company had the following outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk: Interest Rate Derivatives Notional (in thousands) Asset (Liability) Effective Date Maturity Date Index Strike Rate Interest rate swap $ 1,433 $ (54 ) April 1, 2010 April 1, 2019 1-month LIBOR 5.91 % Interest rate swap $ 1,433 $ (59 ) April 1, 2010 April 1, 2019 1-month LIBOR 6.07 % As of December 31, 2016 , the Company had the following outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk: Interest Rate Derivatives Notional (in thousands) Asset (Liability) Effective Date Maturity Date Index Strike Rate Interest rate swap $ 1,476 $ (76 ) April 1, 2010 April 1, 2019 1-month LIBOR 5.91 % Interest rate swap $ 1,476 $ (82 ) April 1, 2010 April 1, 2019 1-month LIBOR 6.07 % |
Income Taxes (Notes)
Income Taxes (Notes) | 6 Months Ended |
Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | Income Taxes |
Summary of Significant Accounti
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation The accompanying consolidated financial statements of KVH Industries, Inc. and its wholly owned subsidiaries have been prepared in accordance with accounting principles generally accepted in the United States of America. The Company has evaluated all subsequent events through the date of this filing. All significant intercompany accounts and transactions have been eliminated in consolidation. The consolidated financial statements have not been audited by the Company's independent registered public accounting firm and include all adjustments (consisting of only normal recurring adjustments) which are, in the opinion of management, necessary for a fair presentation of the financial condition, results of operations, and cash flows for the periods presented. These consolidated financial statements do not include all disclosures associated with annual financial statements and accordingly should be read in conjunction with the Company’s consolidated financial statements and related notes included in the Company’s annual report on Form 10-K for the year ended December 31, 2016 filed on March 9, 2017 with the Securities and Exchange Commission. The results for the three and six months ended June 30, 2017 are not necessarily indicative of operating results for the remainder of the year. |
Significant Estimates and Assumptions [Policy Text Block] | Significant Estimates and Assumptions The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of sales and expenses during the reporting periods. As described in the Company’s annual report on Form 10-K, the most significant estimates and assumptions by management affect the Company’s revenue recognition, valuation of accounts receivable, valuation of inventory, valuations and purchase price allocations related to business combinations, expected future cash flows including growth rates, discount rates, terminal values and other assumptions and estimates used to evaluate the recoverability of long-lived assets and goodwill, estimated fair values of long-lived assets, including goodwill, amortization methods and periods, certain accrued expenses and other related charges, stock-based compensation, contingent liabilities, key valuation assumptions for its share-based awards, estimated fulfillment costs for warranty obligations, tax reserves and recoverability of the Company’s net deferred tax assets and related valuation allowance. The Company has reviewed these estimates and determined that these remain the most significant estimates for the six months ended June 30, 2017 . There have been no material changes to the significant accounting policies previously disclosed in the Company’s annual report on Form 10-K for the year ended December 31, 2016, except for ASC Update No. 2016-09, Compensation- Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting , which the Company adopted as required on January 1, 2017 resulted primarily in a change in the Company’s accounting prospectively for share-based payment forfeitures and accounting for excess tax benefits or deficiencies related to share-based payments as a component of earnings (see Note 5 for further discussion) and ASC Update No. 2015-11, Simplifying the Measurement of Inventory adopted as of January 1, 2017, which simplified the subsequent measurement of inventory by replacing the lower of cost or market test with a lower of cost or net realizable value test (see Note 7 for further discussion). Although the Company regularly assesses these estimates, actual results could differ materially from these estimates. Changes in estimates are recorded in the period in which they become known. The Company bases its estimates on historical experience and various other assumptions that it believes to be reasonable under the circumstances. |
Stock-Based Compensation (Polic
Stock-Based Compensation (Policies) | 6 Months Ended |
Jun. 30, 2017 | |
Share-based Compensation [Abstract] | |
Compensation-Stock Based Compensation | The Company recognizes stock-based compensation in accordance with the provisions of ASC Topic 718, Compensation--Stock Compensation . Stock-based compensation expense, excluding compensation charges related to our employee stock purchase plan, or the ESPP, was $ 849 and $ 841 for the three months ended June 30, 2017 and 2016 , respectively, and $1,792 and $1,881 for the six months ended June 30, 2017 and 2016 , respectively. As of June 30, 2017 , there was $1,794 of total unrecognized compensation expense related to stock options, which is expected to be recognized over a weighted-average period of 3.13 years. As of June 30, 2017 , there was $4,913 of total unrecognized compensation expense related to restricted stock awards, which is expected to be recognized over a weighted-average period of 2.68 years. |
Fair Value Measurements (Polici
Fair Value Measurements (Policies) | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements and Disclosures | ASC Topic 820, Fair Value Measurements and Disclosures (ASC 820), provides a framework for measuring fair value and requires expanded disclosures regarding fair value measurements. ASC 820 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 describes three levels of inputs that may be used to measure fair value: Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. The Company’s Level 1 assets are investments in money market mutual funds, U.S. treasury securities, and certificates of deposit. Level 2: Quoted prices for similar assets or liabilities in active markets; or observable prices that are based on observable market data, based on directly or indirectly market-corroborated inputs. The Company’s Level 2 liabilities are interest rate swaps. Level 3: Unobservable inputs that are supported by little or no market activity, and are developed based on the best information available given the circumstances. The Company has no Level 3 assets. Assets and liabilities measured at fair value are based on the valuation techniques identified in the table below. The valuation techniques are: (a) Market approach—prices and other relevant information generated by market transactions involving identical or comparable assets. (b) The valuations of the interest rate swaps intended to mitigate the Company’s interest rate risk are determined with the assistance of a third-party financial institution using widely accepted valuation techniques, including discounted cash flow analysis on the expected cash flows of each instrument. This analysis utilizes observable market-based inputs, including interest rate curves and interest rate volatility, and reflects the contractual terms of these instruments, including the period to maturity. |
Goodwill and Intagible Assets (
Goodwill and Intagible Assets (Policies) | 6 Months Ended |
Jun. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets, Impairment Test Policy | ASC Topic 350, Intangibles—Goodwill and Other (ASC 350) |
Marketable Securities (Tables)
Marketable Securities (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Marketable Securities [Abstract] | |
Available-for-sale Securities [Table Text Block] | securities as of June 30, 2017 and December 31, 2016 consisted of the following: June 30, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Money market mutual funds $ 8,031 $ — $ — $ 8,031 United States treasuries 4,014 — (3 ) 4,011 Certificates of deposit 1,729 — — 1,729 Total marketable securities designated as available-for-sale $ 13,774 $ — $ (3 ) $ 13,771 December 31, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Money market mutual funds $ 21,848 $ — $ — $ 21,848 Certificates of deposit 3,864 — — 3,864 Total marketable securities designated as available-for-sale $ 25,712 $ — $ — $ 25,712 |
Available-for-sale Securities, Debt Maturities, Amortized Cost And Fair Value Basis [Table Text Block] | The amortized costs and fair value of marketable securities as of June 30, 2017 and December 31, 2016 are shown below by effective maturity. Effective maturities may differ from contractual maturities because the issuers of the securities may have the right to prepay obligations without prepayment penalties. June 30, 2017 Amortized Cost Fair Value Due in less than one year $ 5,743 $ 5,740 December 31, 2016 Amortized Cost Fair Value Due in less than one year $ 3,864 $ 3,864 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Share-based Compensation [Abstract] | |
Schedule of share-based payment award, stock options, valuation assumptions | The weighted average assumptions utilized to determine the fair value of options granted during the six months ended June 30, 2017 and 2016 were as follows: Six Months Ended June 30, 2017 2016 Risk-free interest rate 1.96 % 1.43 % Expected volatility 35.53 % 38.22 % Expected life (in years) 4.22 4.17 Dividend yield 0 % 0 % |
Schedule of Share-based Compensation, Activity | The following table presents stock-based compensation expense, including expense for the ESPP, in the Company's consolidated statements of operations for the six months ended June 30, 2017 and 2016 : Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Cost of product sales $ 72 $ 75 $ 154 $ 165 Cost of service sales 1 — 1 1 Research and development 170 166 359 352 Sales, marketing and support 221 251 489 524 General and administrative 388 336 809 839 $ 852 $ 828 $ 1,812 $ 1,881 |
Schedule of Accumulated Other Comprehensive Income (Loss) | Foreign Currency Translation Unrealized Gain (Loss) on Available for Sale Marketable Securities Interest Rate Swaps Total Accumulated Other Comprehensive Loss Balance, March 31, 2016 $ (8,039 ) $ 1 $ (258 ) $ (8,296 ) Other comprehensive loss before reclassifications (1) (4,472 ) — (16 ) (4,488 ) Amounts reclassified from AOCI to Other income, net (2) — — 25 25 Net other comprehensive (loss) income, June 30, 2016 (4,472 ) — 9 (4,463 ) Balance, June 30, 2016 $ (12,511 ) $ 1 $ (249 ) $ (12,759 ) The balances for the six months ended June 30, 2017 and 2016 are as follows: Foreign Currency Translation Unrealized Gain (Loss) on Available for Sale Marketable Securities Interest Rate Swaps Total Accumulated Other Comprehensive Loss Balance, December 31, 2016 $ (16,651 ) $ — $ (158 ) $ (16,809 ) Other comprehensive income (loss) before reclassifications (1) 3,041 (3 ) 4 3,042 Amounts reclassified from AOCI to Other income, net (2) — — 41 41 Net other comprehensive income (loss), June 30, 2017 3,041 (3 ) 45 3,083 Balance, June 30, 2017 $ (13,610 ) $ (3 ) $ (113 ) $ (13,726 ) Foreign Currency Translation Unrealized Gain (Loss) on Available for Sale Marketable Securities Interest Rate Swaps Total Accumulated Other Comprehensive Loss Balance, December 31, 2015 $ (7,363 ) $ 1 $ (238 ) $ (7,600 ) Other comprehensive loss before reclassifications (1) (5,148 ) — (61 ) (5,209 ) Amounts reclassified from AOCI to Other income, net (2) — — 50 50 Net other comprehensive loss, June 30, 2016 (5,148 ) — (11 ) (5,159 ) Balance, June 30, 2016 $ (12,511 ) $ 1 $ (249 ) $ (12,759 ) (1) For additional information, see Note 4, "Marketable Securities." |
Net Income (Loss) per Common 30
Net Income (Loss) per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of reconciliation of basic and diluted weighted average common shares outstanding | A reconciliation of the basic and diluted weighted average common shares outstanding is as follows: Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 Weighted average common shares outstanding—basic 16,446 15,825 16,354 15,774 Dilutive common shares issuable in connection with stock plans — — — — Weighted average common shares outstanding—diluted 16,446 15,825 16,354 15,774 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Inventory Disclosure [Abstract] | |
Components of inventories | Components of inventories consist of the following: June 30, December 31, Raw materials $ 11,946 $ 10,606 Work in process 2,623 2,185 Finished goods 8,843 7,954 $ 23,412 $ 20,745 |
Product Warranty (Tables)
Product Warranty (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Product Warranties Disclosures [Abstract] | |
Summary of product warranty activity | The following table summarizes product warranty activity during 2017 and 2016 : Six Months Ended June 30, 2017 2016 Beginning balance $ 2,280 $ 1,880 Charges to expense 500 1,044 Costs incurred (373 ) (697 ) Ending balance $ 2,407 $ 2,227 |
Debt Long-term debt (Tables)
Debt Long-term debt (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments [Table Text Block] | Long-term debt consisted of the following: June 30, December 31, Term note $ 45,425 $ 53,625 Mortgage loan 2,867 2,951 Equipment loans — 1,477 Total 48,292 58,053 Less amounts classified as current 2,477 7,900 Long-term debt, excluding current portion $ 45,815 $ 50,153 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Segment Reporting [Abstract] | |
Schedule of operations by geographic segment | Net sales and operating earnings (loss) for the Company's reporting segments and the Company's loss before income tax expense (benefit) for the three and six months ended June 30, 2017 and 2016 were as follows: Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 Net sales: Mobile connectivity $ 34,034 $ 36,890 $ 68,321 $ 72,155 Inertial navigation 6,415 9,076 12,339 14,191 Consolidated net sales $ 40,449 $ 45,966 $ 80,660 $ 86,346 Operating earnings (loss): Mobile connectivity $ 2,638 $ 1,631 $ 3,260 $ 3,621 Inertial navigation 362 1,596 318 669 Subtotal 3,000 3,227 3,578 4,290 Unallocated, net (4,368 ) (3,920 ) (9,416 ) (8,357 ) Loss from operations (1,368 ) (693 ) (5,838 ) (4,067 ) Net interest and other (expense) income (302 ) (91 ) (557 ) (438 ) Loss before income tax expense (benefit) $ (1,670 ) $ (784 ) $ (6,395 ) $ (4,505 ) Depreciation expense and amortization expense for the Company's segments are presented in the following table for the periods presented: Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 Depreciation expense: Mobile connectivity $ 1,394 $ 1,567 $ 2,872 $ 3,226 Inertial navigation 199 224 395 448 Unallocated 21 24 40 48 Total consolidated depreciation expense $ 1,614 $ 1,815 $ 3,307 $ 3,722 Amortization expense: Mobile connectivity $ 1,102 $ 1,250 $ 2,170 $ 2,533 Inertial navigation — — — — Unallocated — — — — Total consolidated amortization expense $ 1,102 $ 1,250 $ 2,170 $ 2,533 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Schedule of assets and liabilities measured at fair value on recurring basis | The following tables present financial assets and liabilities at June 30, 2017 and December 31, 2016 for which the Company measures fair value on a recurring basis, by level, within the fair value hierarchy: June 30, 2017 Total Level 1 Level 2 Level 3 Valuation Technique Assets Money market mutual funds $ 8,031 $ 8,031 $ — $ — (a) United States treasuries 4,011 4,011 — — (a) Certificates of deposit 1,729 1,729 — — (a) Liabilities Interest rate swaps 113 — 113 — (b) December 31, 2016 Total Level 1 Level 2 Level 3 Valuation Technique Assets Money market mutual funds $ 21,848 $ 21,848 $ — $ — (a) Certificates of deposit 3,864 3,864 — — (a) Liabilities Interest rate swaps 158 — 158 — (b) |
Goodwill and Intagible Assets36
Goodwill and Intagible Assets (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of goodwill | The following table sets forth the changes in the carrying amount of goodwill for the six months ended June 30, 2017 : Amounts Balance at December 31, 2016 $ 31,343 Foreign currency translation adjustment 1,459 Balance at June 30, 2017 $ 32,802 |
Schedule of finite-lived intangible assets | The changes in the carrying amount of intangible assets during the six months ended June 30, 2017 are as follows: Amounts Balance at December 31, 2016 $ 17,838 Amortization expense (2,170 ) Intangible assets acquired in asset acquisition 100 Foreign currency translation adjustment 889 Balance at June 30, 2017 $ 16,657 |
Finite-lived Intangible Assets Amortization Expense [Table Text Block] | Acquired intangible assets are subject to amortization. The following table summarizes acquired intangible assets at June 30, 2017 and December 31, 2016 , respectively: Gross Carrying Amount Accumulated Amortization Net Carrying Value June 30, 2017 Subscriber relationships $ 17,523 $ 7,366 $ 10,157 Distribution rights 4,277 1,312 2,965 Internally developed software 2,318 2,064 254 Proprietary content 8,128 5,152 2,976 Intellectual property 2,284 2,219 65 Favorable lease 641 401 240 $ 35,171 $ 18,514 $ 16,657 December 31, 2016 Subscriber relationships $ 16,888 $ 6,431 $ 10,457 Distribution rights 4,122 1,180 2,942 Internally developed software 2,301 1,904 397 Proprietary content 7,960 4,431 3,529 Intellectual property 2,284 2,056 228 Favorable lease 627 342 285 $ 34,182 $ 16,344 $ 17,838 |
Schedule of expected amortization expense | Estimated future amortization expense remaining at June 30, 2017 for intangible assets acquired is as follows: Remainder of 2017 $ 2,113 2018 3,931 2019 3,007 2020 2,206 2021 2,206 Thereafter 3,194 Total future amortization expense $ 16,657 |
Derivative Instruments and He37
Derivative Instruments and Hedging Activities (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
General Discussion of Derivative Instruments and Hedging Activities [Abstract] | |
Schedule of interest rate derivatives designated as cash flow hedges of interest rate risk | As of June 30, 2017 , the Company had the following outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk: Interest Rate Derivatives Notional (in thousands) Asset (Liability) Effective Date Maturity Date Index Strike Rate Interest rate swap $ 1,433 $ (54 ) April 1, 2010 April 1, 2019 1-month LIBOR 5.91 % Interest rate swap $ 1,433 $ (59 ) April 1, 2010 April 1, 2019 1-month LIBOR 6.07 % |
Marketable Securities (Details)
Marketable Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Debt Securities, Amortized Cost Basis | $ 13,774 | $ 25,712 |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 0 | 0 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | (3) | 0 |
Available-for-sale Securities | 13,771 | 25,712 |
Mutual Funds, Money Market [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Debt Securities, Amortized Cost Basis | 8,031 | 21,848 |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 0 | 0 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 0 | 0 |
Available-for-sale Securities | 8,031 | 21,848 |
Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Debt Maturities, Next Twelve Months, Amortized Cost Basis | 5,743 | 3,864 |
Available-for-sale Securities, Debt Maturities, Next Twelve Months, Fair Value | $ 5,740 | $ 3,864 |
Marketable Securities Maturity
Marketable Securities Maturity Schedule (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Debt Securities, Amortized Cost Basis | $ 13,774 | $ 25,712 |
Available-for-sale Securities | 13,771 | 25,712 |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 0 | 0 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | (3) | 0 |
Mutual Funds, Money Market [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Debt Securities, Amortized Cost Basis | 8,031 | 21,848 |
Available-for-sale Securities | 8,031 | 21,848 |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 0 | 0 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 0 | 0 |
US Treasury Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Debt Securities, Amortized Cost Basis | 4,014 | |
Available-for-sale Securities | 4,011 | |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 0 | |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | (3) | |
Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Debt Maturities, Next Twelve Months, Amortized Cost Basis | 5,743 | 3,864 |
Available-for-sale Securities, Debt Maturities, Next Twelve Months, Fair Value | 5,740 | 3,864 |
Certificates of Deposit | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Debt Securities, Amortized Cost Basis | 1,729 | 3,864 |
Available-for-sale Securities | 1,729 | 3,864 |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 0 | 0 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | $ 0 | $ 0 |
Marketable Securities Textual (
Marketable Securities Textual (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Marketable Securities [Abstract] | ||||
Interest Income, Money Market Deposits | $ 30 | $ 20 | $ 61 | $ 40 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 1,018,000 | 1,018,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost | $ 52 | $ 57 | ||
New Accounting Pronouncement, Effect of Adoption on Previously Stated Amounts in Prior Periods | 778 | 1,705 | ||
Allocated Share-based Compensation Expense | $ 852 | $ 828 | $ 1,812 | $ 1,881 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 0 | 114,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 0 | 531,000 | ||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ 71 | $ 87 | ||
Stock Repurchased and Retired During Period, Shares | 0 | 43,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $ 9.74 | $ 9.74 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 292,000 | 292,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price | $ 12.31 | $ 12.31 | ||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 2.47 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period | 7,000 | 11,000 | ||
Stock options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 1.96% | 1.43% | ||
Allocated Share-based Compensation Expense | $ 849 | 841 | $ 1,792 | $ 1,881 |
Unrecognized compensation expense | $ 1,794 | $ 1,794 | ||
Weighted-average period of recognition (in years) | 3 years 1 month 17 days | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 35.53% | 38.22% | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 4 years 2 months 20 days | 4 years 2 months 1 day | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 0.00% | 0.00% | ||
Restricted stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 10,000 | 243,000 | ||
Unrecognized compensation expense | $ 4,913 | $ 4,913 | ||
Weighted-average period of recognition (in years) | 2 years 8 months 4 days | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 607,000 | 607,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 14,000 | 223,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 9.47 | $ 8.39 | ||
Stock Issued During Period, Shares, Restricted Stock Award, Forfeited | 17,000 | 17,000 | ||
Performance Shares [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 0 | 0 | ||
ESPP Plan [Member] | Employee Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Allocated Share-based Compensation Expense | $ 3 | $ 0 | $ 20 | $ 13 |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 1,650,000 | 1,650,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period | 26,000 | 0 | 18,000 | |
Accounting Standards Update 2016-09 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ 1,571 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Stock Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Allocated Share-based Compensation Expense | $ 852 | $ 828 | $ 1,812 | $ 1,881 |
Cost of product sales | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Allocated Share-based Compensation Expense | 72 | 75 | 154 | 165 |
Cost of service sales | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Allocated Share-based Compensation Expense | 1 | 0 | 1 | 1 |
Research and development | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Allocated Share-based Compensation Expense | 170 | 166 | 359 | 352 |
Sales, marketing and support | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Allocated Share-based Compensation Expense | 221 | 251 | 489 | 524 |
General and administrative | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Allocated Share-based Compensation Expense | $ 388 | $ 336 | $ 809 | $ 839 |
Stock-Based Compensation - Sc43
Stock-Based Compensation - Schedule of AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
AOCI Attributable to Parent [Roll Forward] | ||||
Beginning balance | $ 106,502 | |||
Net other comprehensive loss, June 30, 2016 | $ 2,455 | $ (4,463) | 3,083 | $ (5,159) |
Ending balance | 105,342 | 105,342 | ||
Foreign Currency Translation | ||||
AOCI Attributable to Parent [Roll Forward] | ||||
Beginning balance | (16,050) | (8,039) | (16,651) | (7,363) |
Other comprehensive loss before reclassifications (1) | 2,440 | (4,472) | 3,041 | (5,148) |
Amounts reclassified from AOCI to Other income (expense), net | 0 | 0 | 0 | 0 |
Net other comprehensive loss, June 30, 2016 | 2,440 | (4,472) | 3,041 | (5,148) |
Ending balance | (13,610) | (12,511) | (13,610) | (12,511) |
Unrealized Gain (Loss) on Available for Sale Marketable Securities | ||||
AOCI Attributable to Parent [Roll Forward] | ||||
Beginning balance | 0 | 1 | 0 | 1 |
Other comprehensive loss before reclassifications (1) | (3) | 0 | (3) | 0 |
Amounts reclassified from AOCI to Other income (expense), net | 0 | 0 | 0 | 0 |
Net other comprehensive loss, June 30, 2016 | (3) | 0 | (3) | 0 |
Ending balance | (3) | 1 | (3) | 1 |
Unrealized Gain (Loss) on Available for Sale Marketable Securities | ||||
AOCI Attributable to Parent [Roll Forward] | ||||
Beginning balance | (131) | (258) | (158) | (238) |
Other comprehensive loss before reclassifications (1) | (1) | (16) | 4 | (61) |
Amounts reclassified from AOCI to Other income (expense), net | 19 | 25 | 41 | 50 |
Net other comprehensive loss, June 30, 2016 | 18 | 9 | 45 | (11) |
Ending balance | (113) | (249) | (113) | (249) |
Total Accumulated Other Comprehensive Loss | ||||
AOCI Attributable to Parent [Roll Forward] | ||||
Beginning balance | (16,181) | (8,296) | (16,809) | (7,600) |
Other comprehensive loss before reclassifications (1) | 2,436 | (4,488) | 3,042 | (5,209) |
Amounts reclassified from AOCI to Other income (expense), net | 19 | 25 | 41 | 50 |
Net other comprehensive loss, June 30, 2016 | 2,455 | (4,463) | 3,083 | (5,159) |
Ending balance | $ (13,726) | $ (12,759) | $ (13,726) | $ (12,759) |
Net Income (Loss) per Common 44
Net Income (Loss) per Common Share (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Earnings Per Share [Abstract] | ||||
Weighted Average Number of Shares Outstanding, Basic | 16,446 | 15,825 | 16,354 | 15,774 |
Schedule of reconciliation of basic and diluted weighted average common shares outstanding | ||||
Dilutive common shares issuable in connection with stock plans | 0 | 0 | 0 | 0 |
Weighted average common shares outstanding - diluted | 16,446 | 15,825 | 16,354 | 15,774 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Components of inventories | ||
Raw materials | $ 11,946 | $ 10,606 |
Work in process | 2,623 | 2,185 |
Finished goods | 8,843 | 7,954 |
Inventories, net | $ 23,412 | $ 20,745 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | |||||
Property, Plant and Equipment, Gross | $ 90,268 | $ 90,268 | $ 82,352 | ||
Property, Plant and Equipment, Net | 41,754 | 41,754 | 36,586 | ||
Depreciation | 1,614 | $ 1,815 | 3,307 | $ 3,722 | |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | (48,514) | (48,514) | (45,766) | ||
Land [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, Plant and Equipment, Gross | 3,828 | 3,828 | 3,828 | ||
Building and Building Improvements [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, Plant and Equipment, Gross | 23,848 | 23,848 | 21,717 | ||
Leasehold Improvements [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, Plant and Equipment, Gross | 354 | 354 | 155 | ||
Machinery and Equipment [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, Plant and Equipment, Gross | 45,359 | 45,359 | 41,777 | ||
Office And Computer Equipment [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, Plant and Equipment, Gross | 16,828 | 16,828 | 14,824 | ||
Vehicles [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, Plant and Equipment, Gross | $ 51 | $ 51 | $ 51 |
Property and Equipment Property
Property and Equipment Property and Equipment [Textual] (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | |||||
Depreciation | $ 1,614 | $ 1,815 | $ 3,307 | $ 3,722 | |
Property, Plant and Equipment, Net | 41,754 | 41,754 | $ 36,586 | ||
Hardware Revenue Generating Asset [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, Plant and Equipment, Net | $ 8,080 | $ 8,080 | $ 7,734 |
Product Warranty (Details)
Product Warranty (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Product Warranties Disclosures [Abstract] | |||
Product Warranty Accrual | $ 2,407 | $ 2,280 | |
Summary of product warranty activity | |||
Beginning balance | 2,280 | $ 1,880 | |
Charges to expense | 500 | 1,044 | |
Costs incurred | (373) | (697) | |
Ending balance | $ 2,407 | $ 2,227 |
Product Warranty (Details Textu
Product Warranty (Details Textual) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Dec. 31, 2016 | |
Product Warranty (Textual) [Abstract] | ||
Accrued product warranty costs | $ 2,407 | $ 2,280 |
Minimum | ||
Product Warranty (Textual) [Abstract] | ||
Limited warranty period on product | 1 year | |
Maximum | ||
Product Warranty (Textual) [Abstract] | ||
Limited warranty period on product | 2 years |
Debt (Details)
Debt (Details) | Jul. 02, 2014USD ($) | Jul. 01, 2014 | Dec. 30, 2013USD ($)satellite_hub | Jan. 30, 2013USD ($)satellite_hubs | Apr. 06, 2009USD ($) | Jun. 30, 2017USD ($)covenant | Jul. 01, 2019USD ($) | Apr. 01, 2019USD ($) | Dec. 31, 2016USD ($) | Apr. 01, 2010Contract |
Debt Instrument [Line Items] | ||||||||||
Long-term Debt | $ 48,292,000 | $ 58,053,000 | ||||||||
Long-term debt, Repayment of Principal in connection with Amendment | 6,000,000 | |||||||||
Long-term Debt, Current Maturities | 2,477,000 | 7,900,000 | ||||||||
Long-term Debt, Excluding Current Maturities | 45,815,000 | 50,153,000 | ||||||||
Line of Credit Facility, Current Borrowing Capacity | $ 15,000,000 | |||||||||
Number of Financial Covenants | covenant | 2 | |||||||||
Senior Credit Facility [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Term | 5 years | |||||||||
Line of Credit [Member] | Term Loan [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term Debt | $ 45,425,000 | 53,625,000 | ||||||||
Line of Credit [Member] | Senior Credit Facility [Member] | Line of Credit [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of Credit Facility, Current Borrowing Capacity | $ 80,000,000 | |||||||||
Long-term Line of Credit | $ 30,000,000 | |||||||||
Line of Credit Facility, Mandatory Prepayment Provision, Net Cash Proceeds from Dispositions Not Reinvested, Percentage | 100.00% | |||||||||
Line of Credit Facility, Mandatory Prepayment Provision, Net Cash Proceeds from Stated Equity Issuance, Percentage | 50.00% | |||||||||
Line of Credit Facility, Mandatory Prepayment Provision, Net Cash Proceeds from Receipts Greater than 250 Thousand Dollars, Non-ordinary Business, Percentage | 100.00% | |||||||||
Proceeds from Lines of Credit | $ 0 | |||||||||
Line of Credit [Member] | Senior Credit Facility [Member] | Line of Credit [Member] | Minimum [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of Credit Facility, Covenant Compliance, Maximum Consolidated Fixed Charge Coverage Ratio | 1.25 | |||||||||
Line of Credit [Member] | Senior Credit Facility [Member] | Line of Credit [Member] | Minimum [Member] | Base Rate [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.75% | |||||||||
Line of Credit [Member] | Senior Credit Facility [Member] | Line of Credit [Member] | Maximum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of Credit Facility, Covenant Compliance, Maximum Consolidated Leverage Ratio | 1.5 | |||||||||
Line of Credit [Member] | Senior Credit Facility [Member] | Line of Credit [Member] | Maximum | Base Rate [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.25% | |||||||||
Line of Credit [Member] | Senior Credit Facility [Member] | Revolving Credit Facility [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of Credit Facility, Current Borrowing Capacity | 15,000,000 | |||||||||
Line of Credit [Member] | Senior Credit Facility [Member] | Term Loan [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of Credit Facility, Current Borrowing Capacity | $ 65,000,000 | |||||||||
Mortgages [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term Debt | $ 2,867,000 | $ 2,951,000 | ||||||||
Mortgages [Member] | Mortgage Loan On Headquarters Facility [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Term | 10 years | |||||||||
Debt Instrument, Periodic Payment, Principal | $ 14,000 | |||||||||
Number of Financial Covenants | covenant | 1 | |||||||||
Debt Instrument, Face Amount | $ 4,000,000 | |||||||||
Debt Instrument, Term If Balloon Not Considered | 20 years | |||||||||
Debt Instrument, Periodic Payment, Increase (Decrease) in Principal | $ 1,000 | |||||||||
Mortgages [Member] | Mortgage Loan On Headquarters Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.00% | |||||||||
Mortgages [Member] | Mortgage Loan On Headquarters Facility [Member] | Minimum [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Covenant, Cash And Cash Equivalents Threshold | 25,000,000 | |||||||||
Mortgages [Member] | Mortgage Loan On Headquarters Facility [Member] | Debt Instrument, Redemption, Period Two [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 6.07% | 6.07% | ||||||||
Mortgages [Member] | Mortgage Loan On Headquarters Facility [Member] | Debt Instrument, Redemption, Period One [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 5.905% | 5.91% | ||||||||
Equipment Loan [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term Debt | $ 0 | $ 1,477,000 | ||||||||
Equipment Loan [Member] | Equipment Loan [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Term | 5 years | 5 years | ||||||||
Debt Instrument, Face Amount | $ 1,200,000 | $ 4,700,000 | ||||||||
Debt Instrument, Collateral Pledged | 1 | 6 | ||||||||
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 3.08% | 2.76% | ||||||||
Scenario, Forecast [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Periodic Payment, Principal | $ 575,000 | |||||||||
Scenario, Forecast [Member] | Mortgages [Member] | Mortgage Loan On Headquarters Facility [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Periodic Payment Terms, Balloon Payment to be Paid | $ 2,551,000 | |||||||||
Interest Rate Swap [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Derivative, Number of Instruments Held | Contract | 2 |
Segment Reporting (Details Text
Segment Reporting (Details Textual) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Mobile Connectivity [Member] | Mobile Comm Product Sales [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Percent of Consolidated Net Sales | 22.00% | 25.00% | 23.00% | 26.00% | |
Mobile Connectivity [Member] | VSAT Airtime Service Sales [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Percent of Consolidated Net Sales | 41.00% | 35.00% | 40.00% | 35.00% | |
Mobile Connectivity [Member] | Training and Content Sales [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Percent of Consolidated Net Sales | 20.00% | 19.00% | 20.00% | ||
Intertial Navigation [Member] | FOG System Sales [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Percent of Consolidated Net Sales | 12.00% | 9.00% | 11.00% | 10.00% | |
Non-US [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Percent of consolidated long-lived tangible assets | 10.00% | 10.00% | 10.00% | ||
Percent of Consolidated Net Sales | 62.00% | 63.00% | 61.00% | 63.00% | |
CANADA | |||||
Segment Reporting Information [Line Items] | |||||
Percent of Consolidated Net Sales | 13.00% |
Segment Reporting Segment Repor
Segment Reporting Segment Reporting - Net Sales and Operating Earnings (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Segment Reporting Information [Line Items] | ||||
Revenue, Net | $ 40,449 | $ 45,966 | $ 80,660 | $ 86,346 |
Operating Income (Loss) | (1,368) | (693) | (5,838) | (4,067) |
Net interest and other expense | (302) | (91) | (557) | (438) |
(Loss) income before income tax expense | (1,670) | (784) | (6,395) | (4,505) |
Mobile Connectivity and Intertial Navigation Combined [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating Income (Loss) | 3,000 | 3,227 | 3,578 | 4,290 |
Other Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating Income (Loss) | (4,368) | (3,920) | (9,416) | (8,357) |
Operating Segments [Member] | Mobile Connectivity [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue, Net | 34,034 | 36,890 | 68,321 | 72,155 |
Operating Income (Loss) | 2,638 | 1,631 | 3,260 | 3,621 |
Operating Segments [Member] | Intertial Navigation [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue, Net | 6,415 | 9,076 | 12,339 | 14,191 |
Operating Income (Loss) | $ 362 | $ 1,596 | $ 318 | $ 669 |
Segment Reporting Segment Rep53
Segment Reporting Segment Reporting - Deprecation and Amortization Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Segment Reporting Information [Line Items] | ||||
Depreciation | $ 1,614 | $ 1,815 | $ 3,307 | $ 3,722 |
Amortization expense | 1,102 | 1,250 | 2,170 | 2,533 |
Mobile Connectivity [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation | 1,394 | 1,567 | 2,872 | 3,226 |
Amortization expense | 1,102 | 1,250 | 2,170 | 2,533 |
Intertial Navigation [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation | 199 | 224 | 395 | 448 |
Amortization expense | 0 | 0 | 0 | 0 |
Other Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation | 21 | 24 | 40 | 48 |
Amortization expense | $ 0 | $ 0 | $ 0 | $ 0 |
Share Buyback Program (Details)
Share Buyback Program (Details) shares in Thousands | 6 Months Ended | |
Jun. 30, 2017Programshares | Nov. 26, 2008shares | |
Share Buyback Program (Textual) [Abstract] | ||
Common stock available for repurchase | shares | 341 | 1,000 |
Number of other repurchase programs outstanding | 0 | |
Number of stock repurchase programs other expired | 0 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Schedule of assets and liabilities measured at fair value on recurring basis | ||
Interest Rate Derivative Liabilities, at Fair Value Disclosure | $ 113 | $ 158 |
Fair Value, Inputs, Level 1 | ||
Schedule of assets and liabilities measured at fair value on recurring basis | ||
Interest Rate Derivative Liabilities, at Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 2 | ||
Schedule of assets and liabilities measured at fair value on recurring basis | ||
Interest Rate Derivative Liabilities, at Fair Value Disclosure | 113 | 158 |
Fair Value, Inputs, Level 3 | ||
Schedule of assets and liabilities measured at fair value on recurring basis | ||
Interest Rate Derivative Liabilities, at Fair Value Disclosure | 0 | 0 |
Money market mutual funds [Member] | ||
Schedule of assets and liabilities measured at fair value on recurring basis | ||
Assets, Fair Value Disclosure | 8,031 | 21,848 |
Money market mutual funds [Member] | Fair Value, Inputs, Level 1 | ||
Schedule of assets and liabilities measured at fair value on recurring basis | ||
Assets, Fair Value Disclosure | 8,031 | 21,848 |
Money market mutual funds [Member] | Fair Value, Inputs, Level 2 | ||
Schedule of assets and liabilities measured at fair value on recurring basis | ||
Assets, Fair Value Disclosure | 0 | 0 |
Money market mutual funds [Member] | Fair Value, Inputs, Level 3 | ||
Schedule of assets and liabilities measured at fair value on recurring basis | ||
Assets, Fair Value Disclosure | 0 | 0 |
US Treasury Securities [Member] | ||
Schedule of assets and liabilities measured at fair value on recurring basis | ||
Assets, Fair Value Disclosure | 4,011 | |
US Treasury Securities [Member] | Fair Value, Inputs, Level 1 | ||
Schedule of assets and liabilities measured at fair value on recurring basis | ||
Assets, Fair Value Disclosure | 4,011 | |
US Treasury Securities [Member] | Fair Value, Inputs, Level 2 | ||
Schedule of assets and liabilities measured at fair value on recurring basis | ||
Assets, Fair Value Disclosure | 0 | |
US Treasury Securities [Member] | Fair Value, Inputs, Level 3 | ||
Schedule of assets and liabilities measured at fair value on recurring basis | ||
Assets, Fair Value Disclosure | 0 | |
Certificates of Deposit | ||
Schedule of assets and liabilities measured at fair value on recurring basis | ||
Assets, Fair Value Disclosure | 1,729 | 3,864 |
Certificates of Deposit | Fair Value, Inputs, Level 1 | ||
Schedule of assets and liabilities measured at fair value on recurring basis | ||
Assets, Fair Value Disclosure | 1,729 | 3,864 |
Certificates of Deposit | Fair Value, Inputs, Level 2 | ||
Schedule of assets and liabilities measured at fair value on recurring basis | ||
Assets, Fair Value Disclosure | 0 | 0 |
Certificates of Deposit | Fair Value, Inputs, Level 3 | ||
Schedule of assets and liabilities measured at fair value on recurring basis | ||
Assets, Fair Value Disclosure | $ 0 | $ 0 |
Goodwill and Intagible Assets56
Goodwill and Intagible Assets (Details) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2017USD ($) | Jun. 30, 2017USD ($) | |
Goodwill [Roll Forward] | ||
Balance at December 31, 2016 | $ 31,343 | |
Foreign currency translation adjustment | 1,459 | |
Balance at June 30, 2017 | $ 32,802 | $ 32,802 |
Reporting units with over 100% excess of fair value over carrying value of the reporting unit's respective net assets | 2 | 2 |
Operating Segments [Member] | Mobile Connectivity [Member] | ||
Goodwill [Line Items] | ||
Increase in operating earnings | 62.00% | |
Exceeds carrying value by less than 100% [Member] | ||
Goodwill [Roll Forward] | ||
Balance at June 30, 2017 | $ 4,401 | $ 4,401 |
With over 100% excess of fair value over carrying value of the reporting unit's respective net assets [Domain] | ||
Goodwill [Line Items] | ||
Goodwill, Percent | 87.00% | 87.00% |
Goodwill [Roll Forward] | ||
Balance at June 30, 2017 | $ 28,401 | $ 28,401 |
Goodwill and Intagible Assets57
Goodwill and Intagible Assets (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Goodwill [Line Items] | |||||
Goodwill | $ 32,802 | $ 32,802 | $ 31,343 | ||
Intangible Assets, Gross (Excluding Goodwill) | 16,657 | 16,657 | $ 17,838 | ||
Amortization expense | $ (1,102) | $ (1,250) | (2,170) | $ (2,533) | |
Finite-lived Intangible Assets Acquired | 100 | ||||
Finite-Lived Intangible Assets, Translation Adjustments | $ 889 |
Goodwill and Intagible Assets58
Goodwill and Intagible Assets (Details 3) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Dec. 31, 2016 | |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible Assets, Gross (Excluding Goodwill) | $ 16,657 | $ 17,838 |
Finite-lived intangible assets, gross | 35,171 | 34,182 |
Intangible assets, accumulated amortization | 18,514 | 16,344 |
Finite-lived intangible assets, net | 16,657 | 17,838 |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | 17,523 | 16,888 |
Intangible assets, accumulated amortization | 7,366 | 6,431 |
Finite-lived intangible assets, net | 10,157 | 10,457 |
Distribution rights | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | 4,277 | 4,122 |
Intangible assets, accumulated amortization | 1,312 | 1,180 |
Finite-lived intangible assets, net | 2,965 | 2,942 |
Internally developed software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | 2,318 | 2,301 |
Intangible assets, accumulated amortization | 2,064 | 1,904 |
Finite-lived intangible assets, net | 254 | 397 |
Proprietary content | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | 8,128 | 7,960 |
Intangible assets, accumulated amortization | 5,152 | 4,431 |
Finite-lived intangible assets, net | $ 2,976 | 3,529 |
Intellectual Property [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 7 years | |
Finite-lived intangible assets, gross | $ 2,284 | 2,284 |
Intangible assets, accumulated amortization | 2,219 | 2,056 |
Finite-lived intangible assets, net | 65 | 228 |
Off-Market Favorable Lease [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | 641 | 627 |
Intangible assets, accumulated amortization | 401 | 342 |
Finite-lived intangible assets, net | $ 240 | $ 285 |
Headland Media Limited [Member] | Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 10 years | |
Headland Media Limited [Member] | Distribution rights | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 15 years | |
Headland Media Limited [Member] | Internally developed software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 3 years | |
Headland Media Limited [Member] | Proprietary content | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 2 years | |
Videotel [Member] | Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 8 years | |
Videotel [Member] | Internally developed software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 4 years | |
Videotel [Member] | Proprietary content | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 5 years | |
Videotel [Member] | Off-Market Favorable Lease [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 5 years |
Goodwill and Intagible Assets59
Goodwill and Intagible Assets (Details 4) - USD ($) $ in Thousands | Dec. 31, 2026 | Jun. 30, 2017 |
Finite-Lived Intangible Assets [Line Items] | ||
2,014 | $ 2,113 | |
2,015 | 3,931 | |
2,016 | 3,007 | |
2,017 | 2,206 | |
2,018 | 2,206 | |
Thereafter | 3,194 | |
Total future amortization expense | $ 16,657 | |
Scenario, Forecast [Member] | Q1-2017 Acquisition [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | $ 114 |
Goodwill and Intagible Assets S
Goodwill and Intagible Assets Schedule of Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Finite-lived Intangible Assets Acquired | $ 100 | |||
Amortization of Intangible Assets | $ 1,102 | $ 1,250 | 2,170 | $ 2,533 |
General and administrative | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of Intangible Assets | 735 | 833 | 1,448 | 1,664 |
Cost of service sales | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of Intangible Assets | $ 367 | $ 417 | $ 722 | $ 869 |
Goodwill and Intagible Assets I
Goodwill and Intagible Assets Intangible Asset Remaining Useful Life (Details) | 6 Months Ended |
Jun. 30, 2017 | |
Finite-Lived Intangible Assets [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Assets, Remaining Amortization Period | 4 years 8 months 12 days |
Customer Relationships [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Assets, Remaining Amortization Period | 5 years 3 months 18 days |
Distribution rights | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Assets, Remaining Amortization Period | 10 years 9 months 18 days |
Software Development [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Assets, Remaining Amortization Period | 10 months 24 days |
Trade Secrets [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Assets, Remaining Amortization Period | 2 years |
Intellectual Property [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 7 years |
Finite-Lived Intangible Assets, Remaining Amortization Period | 3 months 18 days |
Off-Market Favorable Lease [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Assets, Remaining Amortization Period | 2 years |
Q1-2017 Acquisition [Member] | Customer Relationships [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 10 years |
Headland Media Limited [Member] | Customer Relationships [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 10 years |
Headland Media Limited [Member] | Distribution rights | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 15 years |
Business and Credit Concentra62
Business and Credit Concentrations (Details) | 6 Months Ended |
Jun. 30, 2017 | |
Concentration Risk [Line Items] | |
Concentration Risk, Additional Characteristic | 0 |
Derivative Instruments and He63
Derivative Instruments and Hedging Activities (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2017 | Dec. 31, 2016 | Apr. 01, 2010 | |
Debt Instrument, Redemption, Period One [Member] | Mortgage Loan On Headquarters Facility [Member] | Mortgages [Member] | |||
Schedule of interest rate derivatives designated as cash flow hedges of interest rate risk | |||
Strike rate | 5.905% | 5.91% | |
Debt Instrument, Redemption, Period Two [Member] | Mortgage Loan On Headquarters Facility [Member] | Mortgages [Member] | |||
Schedule of interest rate derivatives designated as cash flow hedges of interest rate risk | |||
Strike rate | 6.07% | 6.07% | |
Interest Rate Swap [Member] | First half of mortgage [Member] | |||
Schedule of interest rate derivatives designated as cash flow hedges of interest rate risk | |||
Notional | $ 1,433 | $ 1,476 | |
Asset (Liability) | $ (54) | $ (76) | |
Effective Date | Apr. 1, 2010 | Apr. 1, 2010 | |
Maturity Date | Apr. 1, 2019 | Apr. 1, 2019 | |
Derivative, Type of Interest Rate Paid on Swap | 1-month LIBOR | 1-month LIBOR | |
Strike rate | 5.91% | ||
Interest Rate Swap [Member] | Second half of mortgage [Member] | |||
Schedule of interest rate derivatives designated as cash flow hedges of interest rate risk | |||
Notional | $ 1,433 | $ 1,476 | |
Asset (Liability) | $ (59) | $ (82) | |
Effective Date | Apr. 1, 2010 | Apr. 1, 2010 | |
Maturity Date | Apr. 1, 2019 | Apr. 1, 2019 | |
Derivative, Type of Interest Rate Paid on Swap | 1-month LIBOR | 1-month LIBOR | |
Strike rate | 6.07% |
Derivative Instruments and He64
Derivative Instruments and Hedging Activities (Details Textual) - Interest Rate Swap [Member] - Contract | Jun. 30, 2017 | Apr. 01, 2010 |
Derivative Instruments and Hedging Activities (Textual) [Abstract] | ||
Number of Interest rate swap agreements | 2 | |
First half of mortgage [Member] | ||
Derivative Instruments and Hedging Activities (Textual) [Abstract] | ||
Strike rate | 5.91% | |
Second half of mortgage [Member] | ||
Derivative Instruments and Hedging Activities (Textual) [Abstract] | ||
Strike rate | 6.07% |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Dec. 31, 2016 | |
Income Taxes [Textual] [Abstract] | ||||
Effective Income Tax Rate Reconciliation, Percent | (21.30%) | (2.80%) | (8.10%) | (20.20%) |
Deferred tax asset related to unrecognized excess tax benefits | $ 1,117 | $ 1,117 | ||
Employee Service Share-based Compensation, Tax Benefit Realized from Exercise of Stock Options | 50 | 392 | ||
Reserve for Uncertain Tax Positions | 1,356 | 1,356 | $ 1,283 | |
Income Tax Examination, Penalties and Interest Expense | $ 11 | $ 22 |