Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 23, 2016 | Jun. 30, 2015 | |
Entity [Abstract] | |||
Entity Registrant Name | Luminex Corp | ||
Entity Central Index Key | 1,033,905 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 43,144,310 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 692,312,097 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 128,546 | $ 91,694 |
Short-term investments | 11,988 | 0 |
Accounts receivable (net of allowance for doubtful accounts of $204 and $4,357 at December 31, 2015 and 2014, respectively) | 28,853 | 28,272 |
Inventories, net | 31,252 | 36,616 |
Deferred income taxes | 0 | 12,203 |
Prepaids and other | 8,887 | 8,235 |
Total current assets | 209,526 | 177,020 |
Property and equipment, net | 47,796 | 39,945 |
Intangible assets, net | 52,482 | 56,382 |
Deferred income taxes | 31,821 | 15,400 |
Long-term investments | 7,459 | 15,975 |
Goodwill | 49,619 | 49,619 |
Other | 3,853 | 3,185 |
Total assets | 402,556 | 357,526 |
Current liabilities: | ||
Accounts payable | 7,868 | 11,841 |
Accrued liabilities | 15,152 | 14,118 |
Deferred revenue | 4,212 | 4,407 |
Total current liabilities | 27,232 | 30,366 |
Deferred revenue | 2,064 | 2,297 |
Other | 4,724 | 4,869 |
Total liabilities | 34,020 | 37,532 |
Stockholders' equity: | ||
Common stock, $.001 par value, 200,000,000 shares authorized; issued and outstanding: 42,314,581 shares at December 31, 2015; 41,805,962 shares at December 31, 2014 | 42 | 42 |
Preferred stock, $.001 par value, 5,000,000 shares authorized; no shares issued and outstanding | 0 | 0 |
Additional paid-in capital | 321,657 | 309,424 |
Accumulated other comprehensive loss | (1,296) | (744) |
Retained earnings | 48,133 | 11,272 |
Total stockholders' equity | 368,536 | 319,994 |
Total liabilities and stockholders' equity | $ 402,556 | $ 357,526 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Current assets: | ||
Allowance for doubtful accounts | $ 204 | $ 4,357 |
Stockholders' equity: | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, authorized (in shares) | 200,000,000 | 200,000,000 |
Common stock, issued (in shares) | 42,314,581 | 41,805,962 |
Common stock, outstanding (in shares) | 42,314,581 | 41,805,962 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Preferred stock, outstanding (in shares) | 0 | 0 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS [Abstract] | |||
Revenue | $ 237,708 | $ 226,983 | $ 213,423 |
Cost of revenue | 69,001 | 67,131 | 69,797 |
Gross profit | 168,707 | 159,852 | 143,626 |
Operating expenses: | |||
Research and development | 42,690 | 43,135 | 45,041 |
Selling, general and administrative | 84,760 | 82,785 | 87,301 |
Amortization of acquired intangible assets | 3,900 | 3,913 | 4,099 |
Restructuring Charges | 0 | 1,882 | 2,418 |
Total operating expenses | 131,350 | 131,715 | 138,859 |
Income from operations | 37,357 | 28,137 | 4,767 |
Interest expense on long-term debt | 0 | (6) | (76) |
Other income (expense), net | 987 | (46) | 6,733 |
Settlement of litigation, net | (5,300) | 0 | 0 |
Income before income taxes | 33,044 | 28,085 | 11,424 |
Income tax benefit (expense) | 3,817 | 10,958 | (4,328) |
Net income | 36,861 | 39,043 | 7,096 |
Other comprehensive loss: | |||
Foreign currency translation adjustments | (531) | (1,146) | (681) |
Unrealized losses on available-for-sale securities, net of tax | (21) | (17) | (1) |
Other comprehensive loss | (552) | (1,163) | (682) |
Comprehensive income | $ 36,309 | $ 37,880 | $ 6,414 |
Net income per share, basic (in dollars per share) | $ 0.88 | $ 0.94 | $ 0.17 |
Shares used in computing net income per share, basic (in shares) | 42,091 | 41,558 | 40,799 |
Net income per share, diluted (in dollars per share) | $ 0.86 | $ 0.93 | $ 0.17 |
Shares used in computing net income per share, diluted (in shares) | 42,637 | 42,156 | 41,986 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash flows from operating activities: | |||
Net income | $ 36,861 | $ 39,043 | $ 7,096 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 13,744 | 14,205 | 15,922 |
Stock-based compensation | 10,855 | 9,548 | 9,221 |
Deferred income tax (benefit) expense | (5,624) | (8,549) | 551 |
Excess income tax benefit from employee stock-based awards | (10) | (287) | (2,569) |
Loss (gain) on sale of assets | 385 | 181 | (5,173) |
Non-cash restructuring charges | 0 | 2,836 | 4,137 |
Other | (252) | (347) | (1,209) |
Changes in operating assets and liabilities: | |||
Accounts receivable, net | (594) | 1,964 | 2,346 |
Inventories, net | 5,476 | (7,046) | (3,005) |
Other assets | (968) | (2,888) | (1,470) |
Accounts payable | (3,943) | 841 | 962 |
Accrued liabilities | 276 | 564 | (324) |
Deferred revenue | (427) | (814) | 417 |
Net cash provided by operating activities | 55,779 | 49,251 | 26,902 |
Cash flows from investing activities: | |||
Purchases of available-for-sale securities | (7,488) | (18,999) | (10,005) |
Sales and maturities of available-for-sale securities | 4,000 | 7,509 | 22,128 |
Purchase of property and equipment | (18,706) | (17,078) | (18,088) |
Proceeds from sale of assets and investments | 893 | 98 | 9,598 |
Acquired technology rights | (852) | (64) | (930) |
Net cash (used in) provided by investing activities | (22,153) | (28,534) | 2,703 |
Cash flows from financing activities: | |||
Payments on debt | 0 | (1,621) | (1,105) |
Proceeds from employee stock plans and issuance of common stock | 3,118 | 4,746 | 8,677 |
Payments for stock repurchases | 0 | 0 | (14,556) |
Excess income tax benefit from employee stock-based awards | 10 | 287 | 2,569 |
Net cash provided by (used in) financing activities | 3,128 | 3,412 | (4,415) |
Effect of foreign currency exchange rate on cash | 98 | (359) | (55) |
Change in cash and cash equivalents | 36,852 | 23,770 | 25,135 |
Cash and cash equivalents, beginning of year | 91,694 | 67,924 | 42,789 |
Cash and cash equivalents, end of year | $ 128,546 | $ 91,694 | $ 67,924 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Income (Loss) | (Accumulated Deficit) Retained Earnings |
Balance (in shares) at Dec. 31, 2012 | 40,824,932 | ||||
Balance at Dec. 31, 2012 | $ 259,667 | $ 41 | $ 293,392 | $ 1,101 | $ (34,867) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Exercise of stock options (in shares) | 834,581 | ||||
Exercise of stock options | 7,562 | $ 1 | 7,561 | 0 | 0 |
Issuances of restricted stock, net of shares withheld for taxes (in shares) | 264,555 | ||||
Issuances of restricted stock, net of shares withheld for taxes | (2,352) | $ 0 | (2,352) | 0 | 0 |
Stock compensation | 9,214 | $ 0 | 9,214 | 0 | 0 |
Repurchase and retirement of common stock (in shares) | (852,483) | ||||
Repurchase and retirement of common stock | (14,556) | $ (1) | (14,555) | 0 | 0 |
Issuance of common shares under ESPP (in shares) | 71,226 | ||||
Issuance of common shares under ESPP | 1,102 | $ 0 | 1,102 | 0 | 0 |
Net income | 7,096 | 0 | 0 | 0 | 7,096 |
Tax benefits associated with options | (2,569) | 0 | (2,569) | 0 | 0 |
Foreign currency translation adjustments | (681) | $ 0 | 0 | (681) | 0 |
Other (in shares) | (9,158) | ||||
Other | (1) | $ 0 | 0 | (1) | 0 |
Balance (in shares) at Dec. 31, 2013 | 41,133,653 | ||||
Balance at Dec. 31, 2013 | 269,620 | $ 41 | 296,931 | 419 | (27,771) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Exercise of stock options (in shares) | 346,053 | ||||
Exercise of stock options | 3,646 | $ 1 | 3,645 | 0 | 0 |
Issuances of restricted stock, net of shares withheld for taxes (in shares) | 251,377 | ||||
Issuances of restricted stock, net of shares withheld for taxes | (2,093) | $ 0 | (2,093) | 0 | 0 |
Stock compensation | 9,544 | $ 0 | 9,544 | 0 | 0 |
Issuance of common shares under ESPP (in shares) | 74,879 | ||||
Issuance of common shares under ESPP | 1,110 | $ 0 | 1,110 | 0 | 0 |
Net income | 39,043 | 0 | 0 | 0 | 39,043 |
Tax benefits associated with options | (287) | 0 | (287) | 0 | 0 |
Foreign currency translation adjustments | (1,146) | $ 0 | 0 | (1,146) | 0 |
Other (in shares) | 0 | ||||
Other | $ (17) | $ 0 | 0 | (17) | 0 |
Balance (in shares) at Dec. 31, 2014 | 41,805,962 | 41,805,962 | |||
Balance at Dec. 31, 2014 | $ 319,994 | $ 42 | 309,424 | (744) | 11,272 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Exercise of stock options (in shares) | 128,751 | ||||
Exercise of stock options | 1,878 | $ 0 | 1,878 | 0 | 0 |
Issuances of restricted stock, net of shares withheld for taxes (in shares) | 300,733 | ||||
Issuances of restricted stock, net of shares withheld for taxes | (1,604) | $ 0 | (1,604) | 0 | 0 |
Stock compensation | 10,827 | $ 0 | 10,827 | 0 | 0 |
Issuance of common shares under ESPP (in shares) | 79,135 | ||||
Issuance of common shares under ESPP | 1,122 | $ 0 | 1,122 | 0 | 0 |
Net income | 36,861 | 0 | 0 | 0 | 36,861 |
Tax benefits associated with options | (6) | 0 | (10) | 16 | 0 |
Foreign currency translation adjustments | (531) | $ 0 | 0 | (531) | 0 |
Other (in shares) | 0 | ||||
Other | $ (5) | $ 0 | 0 | (5) | 0 |
Balance (in shares) at Dec. 31, 2015 | 42,314,581 | 42,314,581 | |||
Balance at Dec. 31, 2015 | $ 368,536 | $ 42 | $ 321,657 | $ (1,296) | $ 48,133 |
DESCRIPTION OF BUSINESS AND SUM
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 1 - DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Description of Business Luminex Corporation, the “Company” or “Luminex,” develops, manufactures and sells proprietary biological testing technologies and products with applications throughout the life sciences, pharmaceutical and diagnostics industries. We have established a position in several segments of the life sciences industry by developing and delivering products that meet a variety of customer needs in specific market segments, including multiplexing, accuracy, precision, sensitivity, specificity, reduction of labor and ability to test for proteins and nucleic acids. These needs are addressed by our proprietary technology, which allows the end user in a laboratory to perform biological testing in a multiplexed format. Multiplexing allows for many different laboratory results to be generated from one sample with a single assay. We have a full range of instruments using our xMAP technology: our LUMINEX 100/200™ systems offer 100-plex testing; our FLEXMAP 3D® system is our high-throughput, 500-plex testing system; and our MAGPIX® system provides 50-plex testing at a lower cost using imaging rather than flow cytometry. By using our xMAP technology, the end users are able to generate multiple simultaneous results per sample. Using the products Luminex has available today, up to 500 simultaneous analyte results can be determined from a single sample. We primarily serve the diagnostics, pharmaceutical and life sciences industries by marketing products, including our testing equipment and assays, to various types of testing laboratories. We have a large installed base of systems that has grown primarily from the following: • placements made by partners who either: • license our xMAP technology and develop products that incorporate our xMAP technology into products that they then sell to end users, or • purchase our proprietary xMAP laboratory instrumentation and our proprietary xMAP microspheres and sell xMAP-based assay products and/or xMAP-based testing services, which run on the xMAP instrumentation, and pay a royalty to us; and • our direct sales force that focuses on the sale of molecular diagnostic assays that run on our xMAP and ARIES ® systems. We have recently received FDA clearance for our ARIES ® system. The ARIES ® system is a sample to answer clinical test system that automates and integrates extraction of nucleic acid from a clinical sample, performs real-time polymerase chain reaction, and detects multiple signals generated by target specific probes. The ARIES ® system was commercially launched in the fourth quarter of 2015. We also received FDA clearance for the ARIES ® HSV (herpes simplex virus) 1&2 Assay in the fourth quarter of 2015. Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All significant intercompany transactions and balances have been eliminated upon consolidation. The Company has reclassified certain 2014 amounts in the accompanying condensed consolidated balance sheet to conform to the 2015 presentation. These reclassifications include $0.8 million from accounts receivable, net to prepaids and other. This reclassification was not material to the Company's consolidated financial statements. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual amounts and results could differ from those estimates, and such differences could be material to the financial statements. Cash and Cash Equivalents Cash and cash equivalents consist of cash deposits and highly liquid investments with original maturities of three months or less when purchased. Investments The Company determines the appropriate classification of its investments in debt and equity securities at the time of purchase and reevaluates such determinations at each balance sheet date. Marketable securities that are bought and held principally for the purpose of selling them in the near term are classified as trading securities and are reported at fair value, with unrealized gains and losses recognized in earnings. Debt securities are classified as held-to-maturity when the Company has the positive intent and ability to hold the securities to maturity. Held-to-maturity securities are stated at amortized cost, which approximates fair value of these investments. Debt securities for which the Company does not have the intent or ability to hold to maturity are classified as available-for-sale. Debt and marketable equity securities not classified as held-to-maturity or as trading are classified as available-for-sale, and are carried at fair market value, with the unrealized gains and losses included in the determination of comprehensive income and reported in stockholders’ equity. Marketable securities are recorded as either short-term or long-term on the balance sheet based on contractual maturity date. The fair value of all securities is determined by obtaining non-binding market prices from the Company's third-party portfolio managers on the last day of the quarter, whose sources may use quoted prices in active markets for identical assets or inputs other than quoted prices that are observable either directly or indirectly in determining fair value. Declines in fair value below the Company’s carrying value deemed to be other than temporary are charged against net earnings. Fair Value of Financial Instruments The fair values of financial instruments are determined by obtaining non-binding market prices from the Company's third-party portfolio managers on the last day of the quarter, whose sources may use quoted prices in active markets for identical assets or inputs other than quoted prices that are observable either directly or indirectly in determining fair value. The Company’s financial instruments include cash and cash equivalents, short-term investments, accounts receivable, cost-method investments, long-term investments, accounts payable and accrued liabilities. The fair values of these financial instruments were not materially different from their carrying or contract values at December 31, 2015 and 2014 . See Note 6 for further details concerning fair value measurements. Supplemental Cash Flow Statement Information (in thousands) Year Ended December 31, 2015 2014 2013 Cash paid during the period for taxes $ 578 $ 1,193 $ 1,284 Cash paid during the period for interest and penalties 96 157 124 Concentration of Credit Risk Financial instruments which potentially subject the Company to concentrations of credit risk consist of short-term and long-term investments and trade receivables. The Company’s short-term investments consist of investments in high credit quality financial institutions, non-government sponsored debt securities and corporate issuers. The Company provides credit, in the normal course of business, to a number of its customers geographically dispersed primarily throughout the U.S. The Company attempts to limit its credit risk by performing ongoing credit evaluations of its customers and maintaining adequate allowances for potential credit losses, but the Company does not require collateral. Laboratory Corporation of America (LabCorp) accounted for 24% , 21% and 18% of our total revenues in 2015 , 2014 and 2013 , respectively. Thermo Fisher Scientific, Inc. accounted for 13% , 17% and 17% of our total revenues in 2015 , 2014 and 2013 , respectively. Bio-Rad Laboratories, Inc. accounted for 8% , 7% and 9% of our total revenues in 2015 , 2014 and 2013 , respectively. No other customer accounted for more than 10% of our total revenues in 2015 , 2014 or 2013 . Inventories Inventories, consisting primarily of raw materials and purchased components, are stated at the lower of cost or market, with cost determined according to the standard cost method, which approximates the first-in, first-out method. As a developer and manufacturer of high technology medical equipment, the Company may be exposed to a number of economic and industry factors that could result in portions of inventory becoming either obsolete or in excess of anticipated usage. These factors include, but are not limited to, technological changes in the Company's markets, ability to meet changing customer requirements, competitive pressures on products and prices, and reliability and replacement of and the availability of key components from suppliers. The Company's policy is to establish inventory reserves when conditions exist that suggest that inventory may be in excess of anticipated demand or is obsolete based upon the Company's assumptions about future demand for products and market conditions. The Company regularly evaluates the ability to realize the value of inventory based on a combination of factors including the following: historical usage rates, forecasted sales or usage, product expiration or end of life dates, estimated current and future market values and new product introductions. Assumptions used in determining the Company's estimates of future product demand may prove to be incorrect, in which case the provision required for excess and obsolete inventory would have to be adjusted. If inventory is determined to be overvalued, excess or obsolete, the Company would be required to record impairment charges within cost of goods sold at the time of such determination. Although considerable effort is made to ensure the accuracy of forecasts of future product demand, any significant unanticipated changes in demand or expected usage could have a significant negative impact on the value of inventory and the Company's operating results. When recorded, reserves are intended to reduce the carrying value of inventory to its net realizable value. Property and Equipment Property and equipment are carried at cost less accumulated amounts for amortization and depreciation. Property and equipment are typically amortized or depreciated on a straight-line basis over the useful lives of the assets, which range from two to seven years. Leasehold improvements and equipment under capital leases are amortized on a straight-line basis over the shorter of the remaining term of the lease or the estimated useful life of the improvements and equipment. The Company classifies the carrying value of Luminex xMAP or ARIES ® systems placed within the reagent rental program and the instruments on loan to customers in property and equipment as "Assets on loan/rental." Goodwill and Other Intangible Assets Goodwill represents the excess of the cost over the fair value of the assets of the acquired business. In accordance with Accounting Standards Codification (ASC) 350 “Goodwill and Other” (ASC 350), goodwill is reviewed for impairment at least annually at the beginning of the fourth quarter, or more frequently if impairment indicators arise, using a two-step impairment process tested at our sole reporting unit level. Events or circumstances that could trigger an impairment test include, but are not limited to, a significant adverse change in the business climate, significant changes in our use of the acquired assets, significant negative industry or economic trends, significant under-performance relative to operating performance indicators and significant changes in competition. The Company determined that no triggering events occurred during the year ended December 31, 2015 . In 2015 , the Company estimated the fair value of the reporting unit using a fair-value-based approach based on the market capitalization. In 2014 and 2013 , the Company estimated the fair value of the reporting unit using a discounted cash flow (DCF) analysis of the Company’s projected future results. Determining the fair value of goodwill is subjective in nature and often involves the use of estimates and assumptions including, without limitation, use of estimates of future prices and volumes for the Company’s products, capital needs, economic trends and other factors which are inherently difficult to forecast. The Company's annual test did not result in an impairment charge in 2015 or 2014 , as the estimated fair value of the reporting unit continued to exceed the carrying value by a significant enough amount such that any reasonably likely change in the assumptions used in the analysis would not cause the carrying value to exceed the estimated fair value for the reporting unit. No goodwill impairments were recorded in 2015 , 2014 or 2013 . Intangible assets are amortized on a straight-line basis over their respective estimated useful lives ranging from 5 to 15 years. Any in-process research and development will be an indefinite-lived intangible asset until completion or abandonment, at which point it will be accounted for as a finite-lived intangible asset or written off if abandoned. Impairment of Long-Lived Assets Long-lived assets held and used by the Company are reviewed for impairment whenever events or changes in circumstances indicate that their net book value may not be recoverable. When such factors and circumstances exist, the Company compares the projected undiscounted future cash flows associated with the related asset or group of assets over their estimated useful lives against their respective carrying amounts. Impairment, if any, is based on the excess of the carrying amount over the fair value of those assets and is recorded in the period in which the determination was made. Revenue Recognition and Allowance for Doubtful Accounts Revenue is generated primarily from the sale of the Company’s products and related services, which are primarily support and maintenance services on the Company's systems. The Company recognizes product revenue at the time the product is shipped provided there is persuasive evidence of an agreement, no right of return exists, the fee is fixed or determinable and collectability is probable. There is no customer right of return in the Company’s sales agreements. If the criteria for revenue recognition are not met at the time of shipment, the revenue is deferred until all criteria are met. The Company regularly enters into arrangements for system sales that are multiple-element arrangements, including services such as installation and training, and multiple products. These products or services are primarily delivered within a short time frame, approximately three to six months, of the agreement execution date and can also be performed by one of the Company’s third-party partners. Based on the terms and conditions of the sale, management believes that these services can be accounted for separately from the delivered system as the delivered products have value to customers on a stand-alone basis. Items are considered to have stand-alone value when they are sold separately by any vendor or when the customer could resell the item on a stand-alone basis. Accordingly, the estimated selling price of services or products not yet performed or delivered at the time of system shipment are deferred and recognized as revenue as such services are performed. The Company has typically been able to determine the selling price of each deliverable in a multiple-element arrangement based on the price for such deliverable when it is sold separately. If vendor specific objective evidence is not determinable and when third-party evidence is not available, management uses the estimated selling price of a deliverable, which is determined based upon the Company’s pricing policies, expected margin of the deliverable, geographical location and information gathered from customer negotiations. The Company provides systems and certain other hardware to customers through reagent rental agreements under which the customers commit to purchasing minimum quantities of disposable products at a stated price over a defined contract term, which is normally two to three years. Instead of rental payments, the Company recovers the cost of providing the system and other hardware in the amount charged for diagnostic assays and other disposables. Revenue is recognized over the defined contract term as assays and other disposable products are shipped. The depreciation costs associated with the system and other hardware are charged to cost of sales on a straight-line basis over the estimated life of the system. The costs to maintain these instruments in the field are charged to cost of sales as incurred. Revenue from extended service agreements is deferred and recognized ratably over the term of the agreement. The Company may also be entitled to milestone payments that are contingent upon achieving a predefined objective. The Company follows the milestone method of recognizing revenue from milestones and milestone payments are recorded as revenue in full upon achievement of the milestone. Revenues from royalties related to agreements with strategic partners are recognized when such amounts are reported to the Company; therefore, the underlying end user sales may be related to prior periods. Additional revenue is derived from cost-type contracts with the U.S. government. Revenue and profit under cost-plus service contracts are recognized as costs are incurred, plus negotiated fees. Fixed fees on cost-plus service contracts are recognized ratably over the contract performance period as services are performed. Contract costs include labor and related employee benefits, subcontracting costs and other direct costs, as well as allocations of allowable indirect costs. For contract change orders, claims or similar items, judgment is required for estimating the amounts, assessing the potential for realization, and determining whether realization is probable. From time to time, facts develop that require revisions of revenue recognized or cost estimates. To the extent that a revised estimate affects the current or an earlier period, the cumulative effect of the revision is recognized in the period in which the facts requiring the revision become known. Reimbursements of certain costs, including certain hardware costs or out-of-pocket expenses, are included in revenue with corresponding costs included in cost of revenue as costs are incurred. The Company continuously monitors collections and payments from its customers and maintains allowances for doubtful accounts based upon its historical experience and any specific customer collection issues that have been identified. While such credit losses have historically been within the Company’s expectations, there can be no assurance that the Company will continue to experience the same level of credit losses that it has in the past. A significant change in the liquidity or financial position of any one of the Company’s significant customers, or a deterioration in the economic environment in general, could have a material adverse impact on the collectability of the Company’s accounts receivable and its future operating results, including a reduction in future revenues and additional allowances for doubtful accounts. Product-Related Expenses The Company provides for the estimated cost of initial product warranties at the time revenue is recognized. While the Company engages in product quality programs and processes, the Company’s warranty obligation is affected by product failure rates, material usage and service delivery costs incurred in correcting a product failure. Should actual product failure rates, material usage or service delivery costs differ from the Company’s estimates, revisions to the estimated warranty liability would be required. Shipping and handling costs associated with product sales are included in cost of sales. Advertising costs are charged to operations as incurred. The Company does not have any direct-response advertising. Advertising expenses, which include trade shows and conventions, were approximately $2.3 million , $2.3 million and $2.6 million for 2015 , 2014 and 2013 , respectively, and were included in selling, general and administrative expense in the Consolidated Statements of Comprehensive Income. Research and Development Costs Research and development costs are expensed in the period incurred. Nonrefundable advance payments for research and development activities for materials, equipment, facilities and purchased intangible assets that have an alternative future use are deferred and capitalized. The capitalized amounts are expensed as the related goods are delivered or the services are performed. In addition, the Company capitalizes certain internally developed products used for evaluation during development projects that also have alternative future uses. These internally developed assets are generally depreciated on a straight-line basis over the useful life of the assets, which range from one to two years. Foreign Currency Translation The financial statements of the Company’s foreign subsidiaries are translated in accordance with ASC 830, “Foreign Currency Matters.” The reporting currency for the Company is the U.S. dollar. With the exception of its Canadian subsidiary, whose functional currency is the U.S. dollar, the functional currency of the Company’s foreign subsidiaries is their local currency. Accordingly, assets and liabilities of these subsidiaries are translated at the exchange rate in effect at each balance sheet date. Before translation, the Company re-measures foreign currency denominated assets and liabilities, including inter-company accounts receivable and payable, into the functional currency of the respective entity, resulting in unrealized gains or losses recorded in selling, general and administrative expenses in the Consolidated Statement of Comprehensive Income. Revenues and expenses are translated using average exchange rates during the respective period. Foreign currency translation adjustments are accumulated as a component of other comprehensive income as a separate component of stockholders’ equity. Gains and losses arising from transactions denominated in foreign currencies are included in selling, general and administrative expenses in the Consolidated Statement of Comprehensive Income and to date have not been material. Incentive Compensation Management incentive plans are tied to various financial and non-financial performance metrics. Bonus accruals made throughout the year related to the various incentive plans are based on management’s best estimate of the achievement of the specific metrics. Adjustments to the accruals are made on a quarterly basis as forecasts of performance are updated. At year-end, the accruals are adjusted to reflect the actual results achieved. Income Taxes The Company accounts for income taxes under the asset and liability method. Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax balances are adjusted to reflect tax rates based on currently enacted tax laws, which will be in effect in the years in which the temporary differences are expected to reverse. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the results of operations in the period of the enactment date. A valuation allowance is recorded to reduce the carrying amounts of deferred tax assets unless it is more likely than not that those assets will be realized. The Company recognizes excess tax benefits associated with share-based compensation to stockholders’ equity only when realized. When assessing whether excess tax benefits relating to share-based compensation have been realized, the Company follows the with-and-without approach, excluding any indirect effects of the excess tax deductions. Under this approach, excess tax benefits related to share-based compensation are not deemed to be realized until after the utilization of all other tax benefits available to the Company. The Company accounts for uncertain tax positions in accordance with ASC 740, “Income Taxes”, which clarifies the accounting for uncertainty in tax positions. These provisions require recognition of the impact of a tax position in the Company’s financial statements only if that position is more likely than not of being sustained upon examination by taxing authorities, based on the technical merits of the position. Any interest and penalties related to uncertain tax positions will be reflected as a component of income tax expense. Settlement of Litigation Effective July 2, 2015, Luminex agreed to pay $7.1 million to settle a complaint filed by ENZO Life Sciences. See Note 15 - Commitments and Contingencies. We recorded the settlement as non-operating expense in the second quarter of 2015. In October 2015, Luminex settled a lawsuit that we filed in 2013 against a third party alleging breach of contract and patent infringement in exchange for a $2.0 million lump sum payment. We received the $2.0 million payment in October 2015 and recorded the settlement as non-operating other income in the fourth quarter of 2015. The Company is not currently a party to any litigation. Earnings Per Share Basic net income per share is computed by dividing the net income for the period by the weighted average number of common shares outstanding during the period. Diluted net income per share is computed by dividing the net income for the period by the weighted average number of common shares and potential common shares from outstanding stock options, restricted stock units (RSUs) and contingently issuable shares resulting from an award subject to performance or market conditions determined by applying the treasury stock method. In periods with a net loss, potentially dilutive securities composed of incremental common shares issuable upon the exercise of stock options and warrants, and common shares issuable on conversion of preferred stock, would be excluded from historical diluted loss per share because of their anti-dilutive effect. Stock-Based Compensation The Company accounts for stock-based employee compensation plans under the fair value recognition and measurement provisions of ASC 718 “Stock Compensation” (ASC 718). ASC 718 requires the recognition of compensation expense, using a fair-value based method, for costs related to all share-based payments including stock options, restricted stock units and shares issued under the Company’s employee stock purchase plan. Pursuant to ASC 718, stock-based compensation cost is measured at the grant date, based on the fair value of the award, and is recognized as expense over the requisite service period. Segment Reporting During the fourth quarter of 2014, following the appointment of our new CEO, the Company evaluated its historical reporting segments: the TSP segment and the ARP segment. As a result of this evaluation and based upon how the Company's Chief Executive Officer and the Company's management team collectively manages its business, management determined that the two former segments were so integrated and interrelated that they no longer provide an accurate representation of the Company's business when reported separately. Additionally, management took actions to consolidate sales and service functions. As a result, effective with the fourth quarter of 2014, the Company no longer has two operating segments and, accordingly, the Company's business as one operating segment and one reporting unit. |
RESTRUCTURING (Notes)
RESTRUCTURING (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
RESTRUCTURING [Abstract] | |
Restructuring and Related Costs [Table Text Block] | NOTE 2 — RESTRUCTURING In August 2013, the Company announced a restructuring plan focused on its Newborn Screening Group and its Brisbane, Australia office where automated punching systems were designed and manufactured. The Company halted development of the newborn screening assay in 2013 and the manufacturing facility in Brisbane, Australia was closed in the third quarter of 2014. In conjunction with the restructuring plan, the Company recorded non-cash impairment charges of $2.8 million in 2014, including a write-down of goodwill of $1.2 million resulting from the disposal of the manufacturing facility in Brisbane, Australia. Pretax loss related to the Brisbane, Australia facility was $2.8 million and $3.9 million for the years ended December 31, 2014 and 2013, respectively. The Company measured and accrued the facilities exit costs, primarily consisting of cease-use losses recorded upon vacating the facilities, at fair value upon the Company's exit in the third quarter of 2014. As the final restructuring costs were paid in the fourth quarter of 2014, there is no remaining balance of accrued restructuring costs as of December 31, 2015 or 2014. 2013 Restructuring Plan Year Ended December 31, 2014 Non-cash impairment charges: Inventory $ 1,183 Property and equipment 494 Goodwill 1,159 Employee separation costs 154 Facility exit costs 69 Other 41 Total charges $ 3,100 Recorded to cost of revenue 1,218 Recorded to restructuring costs $ 1,882 |
INVESTMENTS
INVESTMENTS | 12 Months Ended |
Dec. 31, 2015 | |
Investments [Abstract] | |
INVESTMENTS | NOTE 3 – INVESTMENTS Available-for-sale securities consisted of the following as of December 31, 2015 (in thousands): Amortized Cost Gains in Accumulated Other Comprehensive Income (Loss) Losses in Accumulated Other Comprehensive Income (Loss) Estimated Fair Value Current: Money Market funds $ 144 $ — $ — $ 144 Government sponsored debt securities 10,000 — (10 ) 9,990 Non-government sponsored debt securities 2,001 — (3 ) 1,998 Total current securities 12,145 — (13 ) 12,132 Noncurrent: Government sponsored debt securities 1,998 — (6 ) 1,992 Non-government sponsored debt securities 5,491 — (24 ) 5,467 Total noncurrent securities 7,489 — (30 ) 7,459 Total available-for-sale securities $ 19,634 $ — $ (43 ) $ 19,591 Available-for-sale securities consisted of the following as of December 31, 2014 (in thousands): Amortized Cost Gains in Accumulated Other Comprehensive Income (Loss) Losses in Accumulated Other Comprehensive Income (Loss) Estimated Fair Value Current: Money Market funds $ 3,569 $ — $ — $ 3,569 Total current securities 3,569 — — 3,569 Noncurrent: Government sponsored debt securities 10,000 — (11 ) 9,989 Non-government sponsored debt securities 6,002 — (16 ) 5,986 Total noncurrent securities 16,002 — (27 ) 15,975 Total available-for-sale securities $ 19,571 $ — $ (27 ) $ 19,544 There were $0 in proceeds from the sales of available-for-sale securities during the years ended December 31, 2015 and 2014 . Realized gains and losses on sales of investments are determined using the specific identification method and are included in other income (expense) in the Consolidated Statement of Comprehensive Income. Net unrealized holding losses on available-for-sale securities are included in accumulated other comprehensive income (loss) as of December 31, 2015 . All of the Company's available-for-sale securities with gross unrealized losses as of December 31, 2015 and 2014 had been in a loss position for less than 12 months. The estimated fair value of available-for-sale debt securities at December 31, 2015 , by contractual maturity, was as follows (in thousands): Estimated Fair Value Due in one year or less $ 11,988 Due after one year through two years 7,459 $ 19,447 Expected maturities may differ from contractual maturities because the issuers of the securities may have the right to prepay obligations without prepayment penalties. |
ACCOUNTS RECEIVABLE AND RESERVE
ACCOUNTS RECEIVABLE AND RESERVES | 12 Months Ended |
Dec. 31, 2015 | |
Receivables [Abstract] | |
ACCOUNTS RECEIVABLE AND RESERVES | NOTE 4 - ACCOUNTS RECEIVABLE AND RESERVES The Company records an allowance for doubtful accounts based upon a specific review of all outstanding invoices, known collection issues and historical experience. The Company regularly evaluates the collectability of its trade accounts receivables and performs ongoing credit evaluations of its customers and adjusts credit limits based upon payment history and its assessment of the customer’s current creditworthiness. These estimates are based on specific facts and circumstances of particular orders, analysis of credit memo data and other known factors. Accounts receivable consisted of the following at December 31 (in thousands): 2015 2014 Accounts receivable $ 29,057 $ 32,629 Less: Allowance for doubtful accounts (204 ) (4,357 ) $ 28,853 $ 28,272 The following table summarizes the changes in the allowance for doubtful accounts (in thousands): Balance at December 31, 2012 $ 444 Increases charged to costs and expenses 4,604 Write-offs of uncollectible accounts (469 ) Balance at December 31, 2013 $ 4,579 Recoveries charged to costs and expenses (123 ) Write-offs of uncollectible accounts (99 ) Balance at December 31, 2014 $ 4,357 Increases charged to costs and expenses 456 Write-offs of uncollectible accounts (4,609 ) Balance at December 31, 2015 $ 204 |
INVENTORIES, NET
INVENTORIES, NET | 12 Months Ended |
Dec. 31, 2015 | |
Inventory, Net [Abstract] | |
INVENTORIES, NET | NOTE 5 - INVENTORIES, NET Inventories consisted of the following at December 31 (in thousands): 2015 2014 Parts and supplies $ 15,296 $ 19,354 Work-in-progress 8,797 8,687 Finished goods 7,159 8,575 $ 31,252 $ 36,616 The Company has non-cancellable purchase commitments with certain of its component suppliers in the amount of approximately $21.0 million at December 31, 2015 . Should production requirements fall below the level of the Company’s commitments, the Company could be required to take delivery of inventory for which it has no immediate need or incur an increased cost per unit going forward. |
FAIR VALUE MEASUREMENT
FAIR VALUE MEASUREMENT | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | NOTE 6 – FAIR VALUE MEASUREMENT ASC 820 "Fair Value Measurement" (ASC 820) defines fair value, establishes a framework for measuring fair value under U.S. GAAP and enhances disclosures about fair value measurements. Fair value is defined 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. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. ASC 820 describes a fair value hierarchy based on the following three levels of inputs that may be used to measure fair value, of which the first two are considered observable and the last unobservable: Level 1—Quoted prices in active markets for identical assets or liabilities. Level 2—Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The Company determines the fair value of its investment portfolio assets by obtaining non-binding market prices from its third-party portfolio managers on the last day of the quarter, whose sources may use quoted prices in active markets for identical assets (Level 1 inputs) or inputs other than quoted prices that are observable either directly or indirectly (Level 2 inputs) in determining fair value. There were no transfers between Level 1, Level 2 or Level 3 measurements for the year ended December 31, 2015 . The following table represents the Company’s fair value hierarchy for its financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2015 and 2014 (in thousands): Fair Value Measurements at December 31, 2015 Level 1 Level 2 Level 3 Total Assets: Money Market funds $ 144 $ — $ — $ 144 Government sponsored debt securities — 11,988 — 11,988 Non-government sponsored debt securities — 7,459 — 7,459 Fair Value Measurements at December 31, 2014 Level 1 Level 2 Level 3 Total Assets: Money Market funds $ 3,569 $ — $ — $ 3,569 Government sponsored debt securities — 9,989 — 9,989 Non-government sponsored debt securities — 5,986 — 5,986 |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | NOTE 7 - PROPERTY AND EQUIPMENT Property and equipment consisted of the following at December 31 (in thousands): 2015 2014 Laboratory equipment $ 41,795 $ 33,137 Leasehold improvements 28,651 26,119 Computer equipment 5,274 7,659 Purchased software 20,782 20,440 Furniture and fixtures 5,020 4,754 Assets on loan/rental 8,596 5,229 Capital lease equipment 1,321 1,321 111,439 98,659 Less: Accumulated depreciation (63,643 ) (58,714 ) $ 47,796 $ 39,945 Depreciation expense was $9.4 million , $8.9 million , and $10.2 million for the years ended December 31, 2015 , 2014 , and 2013 , respectively. |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS | NOTE 8 - GOODWILL AND OTHER INTANGIBLE ASSETS The changes in the carrying amount of goodwill during the period are as follows (in thousands): 2015 2014 Balance at beginning of year $ 49,619 $ 50,738 Allocation in disposal of Brisbane, Australia business (See Note 2) — (1,159 ) Foreign currency translation adjustments — 40 Balance at end of year $ 49,619 $ 49,619 The Company's goodwill is not expected to be deductible for tax purposes. The in-process research and development project related to the Company's acquisition of GenturaDx, the foundation of our ARIES ® system, in 2012 has been completed. The Company received FDA clearance for the Company's ARIES ® system and ARIES ® HSV 1&2 Assay in October 2015. Therefore, this in-process research and development project has been classified as definite-lived technology since October 2015 and is being amortized ratably over its estimated useful life of 11 years . The Company’s intangible assets are reflected in the table below (in thousands, except weighted average lives): Definite-lived Indefinite-lived Technology, trade secrets and know-how Customer lists and contracts Other identifiable intangible assets IP R&D Total 2014 Balance at December 31, 2013 $ 29,676 $ 7,952 $ 1,880 $ 40,100 $ 79,608 Foreign currency translation adjustments 28 6 10 — 44 Balance at December 31, 2014 29,704 7,958 1,890 40,100 79,652 Less: accumulated amortization: Accumulated amortization balance at December 31, 2013 (16,272 ) (2,326 ) (715 ) — (19,313 ) Amortization expense (3,025 ) (753 ) (135 ) — (3,913 ) Foreign currency translation adjustments (28 ) (6 ) (10 ) — (44 ) Accumulated amortization balance at December 31, 2014 (19,325 ) (3,085 ) (860 ) — (23,270 ) Net balance at December 31, 2014 $ 10,379 $ 4,873 $ 1,030 $ 40,100 $ 56,382 Weighted average life (in years) 10 11 11 2015 Balance at December 31, 2014 $ 29,704 $ 7,958 $ 1,890 $ 40,100 $ 79,652 Completion of IP R&D projects 40,100 — — (40,100 ) — Removal of fully amortized assets (702 ) (161 ) (238 ) — (1,101 ) Balance at December 31, 2015 69,102 7,797 1,652 — 78,551 Less: accumulated amortization: Accumulated amortization balance at December 31, 2014 (19,325 ) (3,085 ) (860 ) — (23,270 ) Amortization expense (3,023 ) (743 ) (134 ) — (3,900 ) Removal of fully amortized assets 702 161 238 — 1,101 Accumulated amortization balance at December 31, 2015 (21,646 ) (3,667 ) (756 ) — (26,069 ) Net balance at December 31, 2015 $ 47,456 $ 4,130 $ 896 $ — $ 52,482 Weighted average life (in years) 10 11 11 The estimated aggregate amortization expense for the next five years and thereafter is as follows (in thousands): 2016 $ 7,110 2017 6,154 2018 5,964 2019 5,964 2020 5,964 Thereafter 21,326 $ 52,482 |
OTHER COMPREHENSIVE (LOSS) INCO
OTHER COMPREHENSIVE (LOSS) INCOME OTHER COMPREHENSIVE (LOSS) INCOME | 12 Months Ended |
Dec. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | |
Comprehensive Income (Loss) Note [Text Block] | NOTE 9 — OTHER COMPREHENSIVE (LOSS) INCOME Comprehensive (loss) income represents a measure of all changes in equity that result from recognized transactions and other economic events other than those resulting from investments by and distributions to shareholders. Other comprehensive (loss) income for the Company includes foreign currency translation adjustments and net unrealized holding gains and losses on available-for-sale investments. The following table presents the changes in each component of accumulated other comprehensive loss, net of tax (in thousands): Foreign Currency Items Available for Sale Investments Accumulated Other Comprehensive Income Items Balance at December 31, 2014 $ (727 ) $ (17 ) $ (744 ) Other comprehensive loss before reclassifications (531 ) (21 ) (552 ) Net current-period other comprehensive loss (531 ) (21 ) (552 ) Balance at December 31, 2015 $ (1,258 ) $ (38 ) $ (1,296 ) The following table presents the tax expense allocated to each component of other comprehensive loss (in thousands): Twelve Months Ended December 31, 2015 Before Tax Tax Benefit Net of Tax Foreign currency translation adjustments $ (531 ) $ — $ (531 ) Unrealized losses on available-for-sale investments (16 ) (5 ) (21 ) Other comprehensive loss $ (547 ) $ (5 ) $ (552 ) |
OTHER ASSETS
OTHER ASSETS | 12 Months Ended |
Dec. 31, 2015 | |
Other Assets [Abstract] | |
OTHER ASSETS | NOTE 10 – OTHER ASSETS Other assets consisted of the following at December 31 (in thousands): 2015 2014 Purchased technology rights (net of accumulated amortization of $3,826 and $3,392 in 2015 and 2014, respectively) $ 1,922 $ 1,543 Cost-method investments 1,000 1,000 Other 931 642 $ 3,853 $ 3,185 For the years ended December 31, 2015 and 2014 , the Company recognized amortization expense related to the amortization of purchased technology rights of approximately $474,000 and $1,410,000 , respectively. Future amortization expense is estimated to be $212,000 in 2016 , $195,000 in 2017 , $140,000 in 2018 , $128,000 in 2019 , $118,000 in 2020 and $1,129,000 thereafter. Non-Marketable Securities and Other-Than-Temporary Impairment The Company owns a minority interest in a private company based in the U.S. through its investment of $1.0 million in the third quarter of 2012. This minority interest is included at cost in other long-term assets on the Company’s Consolidated Balance Sheets as the Company does not have significant influence over the investee, as the Company owns less than 20% of the voting equity and the investee is not publicly traded. The Company's other minority interest in a private company was acquired by a third party in July 2013 and, as a result, the Company's minority interest in that private company was sold. The Company realized a gain of $5.4 million on this minority interest investment in the third quarter of 2013. The Company regularly evaluates the carrying value of cost-method investments for impairment and whether any events or circumstances are identified that would significantly harm the fair value of the investments. The primary indicators the Company utilizes to identify these events and circumstances are the investee's ability to remain in business, such as the investee's liquidity and rate of cash use, and the investee’s ability to secure additional funding and the value of that additional funding. In the event a decline in fair value is judged to be other-than-temporary, the Company will record an other-than-temporary impairment charge in other income, net in the Consolidated Statements of Operations. As the inputs utilized for the Company's periodic impairment assessment are not based on observable market data, these cost-method investments are classified within Level 3 of the fair value hierarchy. To determine the fair value of these investments, the Company uses all available financial information related to the entities, including information based on recent or pending third-party equity investments in these entities. In certain instances, a cost-method investment's fair value is not estimated as there are no identified events or changes in the circumstances that may have a significant adverse effect on the fair value of the investment and to do so would be impractical. |
ACCRUED LIABILITIES
ACCRUED LIABILITIES | 12 Months Ended |
Dec. 31, 2015 | |
Accrued Liabilities, Current [Abstract] | |
ACCRUED LIABILITIES | NOTE 11 - ACCRUED LIABILITIES Accrued liabilities consisted of the following as of December 31 (in thousands): 2015 2014 Compensation and employee benefits $ 10,946 $ 9,960 Income and other taxes 1,261 870 Warranty costs 553 488 Other 2,392 2,800 $ 15,152 $ 14,118 Sales of certain of the Company’s systems are subject to a warranty. System warranties typically extend for a period of twelve months from the date of installation or no more than 15 months from the date of shipment. The Company estimates the amount of warranty claims on sold products that may be incurred based on current and historical data. The actual warranty expense could differ from the estimates made by the Company based on product performance. Warranty expenses are evaluated and adjusted periodically. The following table summarizes the changes in the warranty accrual (in thousands): Accrued warranty costs at December 31, 2012 $ 603 Warranty expenses (1,150 ) Accrual for warranty costs 1,268 Accrued warranty costs at December 31, 2013 721 Warranty expenses (914 ) Accrual for warranty costs 681 Accrued warranty costs at December 31, 2014 488 Warranty expenses (859 ) Accrual for warranty costs 924 Accrued warranty costs at December 31, 2015 $ 553 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 12 - INCOME TAXES The components of income before income taxes for the years ended December 31 are as follows (in thousands): 2015 2014 2013 Domestic $ 7,472 $ 12,762 $ 20,301 Foreign 25,572 15,323 (8,877 ) Total $ 33,044 $ 28,085 $ 11,424 The components of the (benefit) provision for income taxes attributable to continuing operations for the years ended December 31 are as follows (in thousands): 2015 2014 2013 Current: Federal $ 490 $ 2,191 $ 4,024 Foreign 174 (1,833 ) 406 State 58 305 720 Total current $ 722 $ 663 $ 5,150 Deferred: Federal (13 ) (2,471 ) (381 ) Foreign (4,422 ) (10,329 ) (1 ) State (104 ) 1,179 (440 ) Total deferred (4,539 ) (11,621 ) (822 ) Total (benefit) provision for income taxes $ (3,817 ) $ (10,958 ) $ 4,328 The provision for income taxes differs from the amount computed by applying the statutory federal rate to pretax income as follows (in percentages): Year Ended December 31, 2015 2014 2013 Statutory tax rate 35.0 % 35.0 % 35.0 % State taxes, net of federal benefit (0.2 )% 4.9 % 0.3 % Permanent items 0.6 % (1.9 )% (4.6 )% Effect of foreign operations (8.0 )% (3.0 )% 3.1 % Research and incentive tax credit generated (3.0 )% (9.5 )% (43.0 )% Valuation allowance (32.1 )% (39.5 )% 42.6 % Income tax reserves (0.5 )% (0.4 )% 4.9 % Deferred charge 0.0 % (9.1 )% 0.0 % Worthless stock deduction 0.0 % (6.2 )% 0.0 % Nontaxable cancellation of debt (3.5 )% 0.0 % 0.0 % Stock compensation deferred 0.0 % (10.7 )% 0.0 % Other 0.1 % 1.4 % (0.4 )% (11.6 )% (39.0 )% 37.9 % The Company accounts for income taxes using the liability method in accordance with ASC 740 "Income Taxes" (ASC 740) . Under this method, deferred income taxes are recognized for the future tax consequences of differences between the tax and financial accounting bases of assets and liabilities at the end of each reporting period. Deferred income taxes are based on enacted tax laws and statutory tax rates applicable to the periods in which the differences are expected to affect taxable income. A valuation allowance is established when necessary to reduce deferred tax assets to the amounts expected to be realized. As a result of prospective application of Accounting Standards Update No. 2015-17, "Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes " , Luminex offset all deferred tax liabilities and assets, as well as any related valuation allowance, and is presenting them as a single non-current amount as of December 31, 2015. Luminex has not retrospectively adjusted prior periods. Significant components of the Company’s deferred tax assets and liabilities as of December 31 are as follows (in thousands): 2015 2014 Deferred tax assets: Accrued liabilities and other $ 5,705 $ 12,220 Net operating loss and credit carryforwards 50,628 47,598 Deferred revenue 2,400 2,541 Depreciation and amortization 5,843 8,099 Stock compensation and other 6,591 5,231 Gross deferred tax assets 71,167 75,689 Valuation allowance (14,867 ) (25,012 ) Total deferred tax assets $ 56,300 $ 50,677 Deferred tax liabilities: Accrued liabilities and other $ (1,313 ) $ (1,000 ) Depreciation and amortization (22,239 ) (21,097 ) Stock compensation — (50 ) Acquired intangibles (927 ) (927 ) Total deferred tax liabilities (24,479 ) (23,074 ) Net deferred tax assets $ 31,821 $ 27,603 Under ASC 740, the Company can only recognize a deferred tax asset to the extent that it is “more likely than not” that these assets will be realized. In evaluating the need for a valuation allowance, all available evidence, both positive and negative, is considered to determine whether, based on the weight of that evidence, a valuation allowance is needed. The Company has established a valuation allowance against a portion of its remaining deferred tax assets because it is more likely than not that certain deferred tax assets will not be realized. In determining whether deferred tax assets are realizable, the Company considered numerous factors including historical profitability, the amount of future taxable income and the existence of taxable temporary differences that can be used to realize deferred tax assets. The valuation allowance decreased approximately $10.1 million in 2015 from 2014 primarily due to our Canadian subsidiary which recorded a partial release to valuation allowances on its net deferred tax assets. Based on our recent history of generating income in Canada and our expectation to continue to generate future income in Canada in susequent years, we determined that it was more likely than not that a portion of Canadian deferred tax assets would be realized. Luminex recorded a partial release to valuation allowances on its net deferred tax assets of our Canadian subsidiary in 2014. The potential loss of certain genetic testing assay products revenue from our largest customer for the year ended December 31, 2015 did not occur as expected and this profitability, or potential reduction thereof, was a significant contributing factor in the determination of whether a portion of the deferred tax assets were realizable in 2015 and 2014. At December 31, 2015 , the Company had gross federal, state and foreign net operating loss carryforwards of approximately $71.2 million , $49.2 million , and $11.3 million respectively. These losses expire beginning in 2016. Approximately $19.1 million of the federal net operating loss carryforward is attributable to excess employee stock option deductions, the benefit from which will be allocated to additional paid-in capital rather than current earnings if subsequently realized. Federal and state net operating losses of approximately $52.1 million and $49.2 million , respectively, were acquired as part of the acquisitions of U.S. companies. These acquired net operating losses are subject to annual limitations due to the "change of ownership" provisions of Section 382 of the Internal Revenue Code of 1986, as amended, and similar state provisions. The Company has federal, state and foreign credit carryforwards of approximately $11.0 million , $2.4 million , and $12.6 million , respectively. These credits begin to expire in 2018 , except for approximately $3.3 million which have an indefinite carryforward period. Approximately $8.2 million of the federal credits are attributable to excess employee stock option deductions, the benefit of which has been allocated to additional paid-in capital rather than current earnings when realized. State credits of approximately $1.1 million were acquired as part of the acquisition of GenturaDx in 2012 and are subject to annual limitations due to the "change of ownership" provisions of Section 382 of the Internal Revenue Code of 1986, as amended, and similar California state tax provisions. In addition, the Company has a gross scientific research and experimental development pool in Canada of approximately $44.2 million , which has an indefinite carryforward period. Undistributed earnings of the Company's foreign subsidiaries are considered permanently reinvested and, accordingly, no provision for U.S. federal or state income taxes has been provided thereon. The cumulative amount of undistributed earnings of the Company's non-U.S. subsidiaries was approximately $17.2 million at December 31, 2015 , $1.4 million at December 31, 2014 and $0.9 million at December 31, 2013 . The increase in undistributed earnings in 2015 is primarily a result of profitability of our Canadian subsidiary. We have not recognized a deferred tax liability on these undistributed earnings because the Company currently intends to reinvest these earnings in operations outside the U.S. and determination of such liability, if any, is dependent upon circumstances existing if and when remittance occurs. As of December 31, 2015 and December 31, 2014 , the Company had recorded gross unrecognized tax benefits of approximately $2.2 million and $2.3 million , respectively. All of the unrecognized tax benefits as of December 31, 2015 , if recognized, would impact the effective tax rate. The Company recognizes interest expense and penalties associated with uncertain tax positions as a component of income tax expense. During the years ended December 31, 2015 and 2014 , the Company recognized approximately $47,600 and $31,900 in tax related interest and penalties, respectively. Reserves for interest and penalties as of December 31, 2015 and 2014 are not significant as the Company has net operating loss carryovers. A reconciliation of the beginning and ending balance of unrecognized tax benefits is as follows (in thousands): 2015 2014 Balance at beginning of year $ 2,318 $ 2,333 Additions based on tax positions related to the current year 168 156 Additions for tax positions of prior years — 58 Reductions for tax positions of prior years (9 ) (131 ) Lapse of statute of limitations (293 ) (98 ) Balance at end of year $ 2,184 $ 2,318 As of December 31, 2015 , there were no unrecognized tax benefits that the Company expects would change significantly over the next 12 months. The Company files U.S., state, and foreign income tax returns in jurisdictions with varying statutes of limitations. In the United States and Canada, the statute of limitations with respect to the federal income tax returns for tax years after 2011 are open to audit; however, since the Company has net operating losses, the taxing authority has the ability to review tax returns prior to the 2011 tax year and make adjustments to these net operating loss carryforwards. There are numerous other income tax jurisdictions for which tax returns are not yet settled, none of which is individually significant. We are currently under audit in Canada for the Company’s scientific research and experimental development pool claims for the 2011 through 2013 tax years. Although we do not expect a material adjustment, the outcome of the audit is not known at this time. We are not under audit in any other major taxing jurisdictions at this time. |
NET INCOME PER SHARE
NET INCOME PER SHARE | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
NET INCOME PER SHARE | NOTE 13 - NET INCOME PER SHARE The following table sets forth the computation of basic and diluted net income per share (in thousands, except share and per share data): Year Ended December 31, 2015 2014 2013 Numerator: Net income $ 36,861 $ 39,043 $ 7,096 Denominator: Denominator for basic net income per share - weighted average common stock outstanding 42,091 41,558 40,799 Effect of dilutive securities: Stock options and awards 546 598 1,187 Denominator for diluted net income per share - weighted average shares outstanding - diluted 42,637 42,156 41,986 Basic net income per share $ 0.88 $ 0.94 $ 0.17 Diluted net income per share $ 0.86 $ 0.93 $ 0.17 Restricted stock awards (RSAs) and stock options to acquire 1,252,000 , 442,000 , and 381,000 shares for the years ended December 31, 2015 , 2014 and 2013 , respectively, were excluded from the computations of diluted earnings per share because the effect of including the RSAs and stock options would have been anti-dilutive. |
STOCKHOLDERS' EQUITY, EMPLOYEE
STOCKHOLDERS' EQUITY, EMPLOYEE BENEFIT PLANS AND STOCK-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
EMPLOYEE BENEFIT PLANS AND STOCK-BASED COMPENSATION | NOTE 14 - STOCKHOLDERS' EQUITY, EMPLOYEE BENEFIT PLANS AND STOCK-BASED COMPENSATION Preferred Stock The Company’s Board of Directors has the authority to issue up to 5,000,000 shares of preferred stock in one or more series and to fix the rights, preferences, privileges and restrictions thereof, including dividend rights, dividend rates, conversion rights, voting rights, terms of redemption, redemption prices, liquidation preferences and the number of shares constituting any series or the designation of such series, without further vote or action by the Company’s stockholders. At December 31, 2015 and 2014 , there was no preferred stock issued and outstanding. Stock-Based Compensation At December 31, 2015 , the Company has one stock-based employee compensation plan pursuant to which grants may be made: the Third Amended and Restated 2006 Equity Incentive Plan (Equity Incentive Plan) which was approved at the Company’s Annual Meeting on May 25, 2006 and amended at the Company’s Annual Meetings on each of May 21, 2009, May 17, 2012 and May 14, 2015. No further grants shall be made pursuant to the 2000 Long-Term Incentive Plan (2000 Plan), the 2001 Broad-Based Stock Option Plan (2001 Plan) or the 2006 Management Stock Purchase Plan (MSPP), which was terminated effective March 7, 2012. In addition, at December 31, 2015 , the Company has one plan pursuant to which discount purchases may be made by the participants in such plan: the Luminex Corporation Employee Stock Purchase Plan (ESPP), which was approved at the Company's Annual Meeting on May 17, 2012. Equity Incentive Plans Under the Company’s Equity Incentive Plan, certain employees, consultants and non-employee directors have been granted RSAs, restricted share units (RSUs) and options to purchase shares of common stock. The options, RSAs, and RSUs generally vest in installments over a three to five year period, and the options expire either five , seven or ten years after the date of grant. Under the Equity Incentive Plan, certain employees of, directors of, and consultants to the Company are eligible to be granted RSAs, RSUs, and options to purchase common stock. The ESPP provides for the granting of rights to certain employees of the Company to defer an elected percentage, up to 15% , of their base salary through the purchase of the Company's common stock, discounted by 15% . As of December 31, 2015 , there were approximately 5.0 million shares authorized for future issuance under the Company’s Equity Incentive Plan and approximately 239,000 shares eligible for purchase pursuant to the terms and conditions of the ESPP as more fully described below. The Equity Incentive Plan and the ESPP are administered by the Compensation Committee of the Board of Directors. The Compensation Committee has the authority to determine the terms and conditions under which awards will be granted from the Equity Incentive Plan, including the number of shares, vesting schedule and term, as applicable. Any option award exercise prices, as set forth in the Equity Incentive Plan, will be equal to the fair market value on the date of grant. Under certain circumstances, the Company may repurchase previously granted RSAs and RSUs. On March 7, 2012 and March 19, 2013 the Compensation Committee of the Board adopted the Luminex Corporation 2012 Long Term Incentive Plan (2012 LTIP) and the 2013 Long Term Incentive Plan (2013 LTIP), respectively. Awards under all of the LTIP plans were granted by the Compensation Committee in the form of RSUs and are to be treated as Performance Awards under the Equity Incentive Plan. Grants of RSUs under the LTIP plans shall initially be unvested and represent the maximum amount of shares that participants may receive under the plan, assuming achievement of the maximum level of performance goals established for the grant, and subject to adjustment for certain transactions and other extraordinary or non-recurring events that may affect Luminex or its financial performance. On March 7, 2012, the Company’s former CEO was granted an award for an unvested RSU under the 2012 LTIP for up to $2,200,000 worth of shares (grant date fair value) of Luminex common stock, and the Company’s CFO was granted an award for an unvested RSU under the 2012 LTIP for up to $550,000 worth of shares (grant date fair value) of Luminex common stock. The actual maximum number of shares of 98,434 shares and 24,608 shares for the former CEO and CFO, respectively, were determined on March 7, 2012, based upon the closing price of the stock on that date. Performance goals under the grants are based on the following components, with the following weights given to each: 50% on the trading price of Luminex common stock at the end of the performance period and 50% on Luminex’s total income from operations at the end of the performance period. The 2012 LTIP performance goals are as described below: • Partial or complete achievement of the trading price goal is dependent upon the average closing price of Luminex’s common stock for the twenty consecutive trading days ending December 31, 2014, inclusive, subject to certain adjustments as described in the 2012 LTIP. There is a range of trading price targets as follows: a minimum threshold of $29.29 per share, a target of $32.54 per share, and a maximum goal of $39.75 per share. No shares were earned for this goal under the 2012 LTIP. • Partial or complete achievement of the total income from operations goal is dependent upon the total income from operations for the year ended December 31, 2014, as further described in the 2012 LTIP. Total income from operations means Luminex’s income from operations as reflected on the Company’s Consolidated Statement of Comprehensive Operations for the year ended December 31, 2014, as further described in the 2012 LTIP. There is a range of targets as follows: a minimum threshold of $58,663,000 , a target of $67,286,000 , and a maximum goal of $85,831,000 . No shares were earned for this goal under the 2012 LTIP. On March 19, 2013, the Company’s former CEO was granted an award for an unvested RSU under the 2013 LTIP for up to $1,200,000 worth of shares (grant date fair value) of Luminex common stock, and the Company’s CFO was granted an award for an unvested RSU under the 2013 LTIP for up to $300,000 worth of shares (grant date fair value) of Luminex common stock. The actual maximum number of shares of 71,727 shares and 17,931 shares for the former CEO and CFO, respectively, were determined on March 19, 2013, based upon the closing price of the stock on that date. The performance goal under the grants is based on Luminex’s fully diluted earnings per share at the end of the performance period (Adjusted EPS Goal). Partial or complete achievement of the Adjusted EPS Goal is dependent upon Luminex's fully diluted earnings per share for the year ended December 31, 2015, as further described in the 2013 LTIP. There is a range of targets as follows: a minimum threshold of $1.06 per share, a target of $1.18 per share, and a maximum goal of $1.36 per share. The final determination and certification of the shares earned for this goal will be made by the Compensation Committee of the Board of Directors after the filing of this Annual Report on Form 10-K, but we expect no shares will be earned for this goal under the 2013 LTIP. In the event that a participant achieves less than the maximum level of the performance goal, the total number of shares represented by such RSU shall be reduced to reflect where actual performance lies in the range of performance goals and weighted aggregate corresponding payout opportunities established for the grant. Calculation of shares between threshold and maximum performance shall be determined based on straight-line interpolation. Accounting for Stock Compensation Stock-based compensation costs are generally based on the fair value calculated from the Black-Scholes option-pricing model on the date of grant for stock options and market value on the date of grant for RSAs. The fair values of stock and stock options are amortized as compensation expense on a straight-line basis over the vesting period of the grants. In accordance with ASC 718, the Company evaluates the assumptions used in the Black-Scholes model at each grant date using a consistent methodology for computing expected volatility, expected term and risk-free rate of return. Calculation of expected volatility is based on historical volatility. The expected life is calculated using the contractual term of the options as well as an analysis of the Company’s historical exercises of stock options. The estimate of the risk-free rate is based on the U.S. Treasury yield curve in effect at the time of grant. The Company has never paid cash dividends and does not currently intend to pay cash dividends, and thus has assumed a 0% dividend yield. The assumptions used are summarized in the following table: 2015 2014 2013 Dividend yield — % — % — % Expected volatility 0.5 0.5 0.5 Risk-free rate of return 1.6 % 1.8 % 1.2 % Expected life of a 10 year contractual term option 7 years 7 years 7 years Expected life of a 7 year contractual term option 4.87 years — — Weighted average fair value at grant date $ 6.73 $ 10.75 $ 8.79 As part of the requirements of ASC 718, the Company is required to estimate potential forfeitures of stock grants and adjust compensation cost recorded accordingly. The estimate of forfeitures is based on historical forfeiture performance and will be adjusted over the requisite service period to the extent that actual forfeitures differ, or are expected to differ, from such estimates. Changes in estimated forfeitures will be recognized through a cumulative catch-up adjustment in the period of evaluation and will also impact the amount of stock compensation expense to be recognized in future periods. The Company’s stock option activity for the years ended December 31, 2013 , 2014 and 2015 is as follows: Stock Options Shares (in thousands) Weighted Average Exercise Price Weighted Average Remaining Contractual Life (in years) Aggregate Intrinsic Value (in thousands) Outstanding at December 31, 2012 1,676 $ 12.13 Granted 159 17.24 Exercised (835 ) 9.06 Cancelled or expired (33 ) 19.80 Outstanding at December 31, 2013 967 $ 15.35 Granted 250 21.10 Exercised (348 ) 10.59 Cancelled or expired (44 ) 20.17 Outstanding at December 31, 2014 825 $ 18.84 Granted 1,023 15.98 Exercised (129 ) 14.59 Cancelled or expired (27 ) 16.67 Outstanding at December 31, 2015 1,692 $ 17.47 5.58 $ 6,775 Vested at December 31, 2015 and expected to vest 1,622 $ 17.50 5.56 $ 6,449 Exercisable at December 31, 2015 464 $ 19.27 3.99 $ 1,129 During the years ended December 31, 2015 , 2014 and 2013 , the total exercise intrinsic value of stock options exercised was $0.8 million , $2.8 million and $8.7 million , respectively, and the total fair value of stock options that vested was $2.5 million , $2.4 million and $2.5 million , respectively. Exercise intrinsic value represents the difference between the market value of the Company's common stock at the time of exercise and the price paid by the employee to exercise the options. The Company had $7.5 million of total unrecognized compensation costs related to stock options at December 31, 2015 that are expected to be recognized over a weighted-average period of 3.1 years. The Company’s restricted share activity for the years ended December 31, 2013 , 2014 and 2015 is as follows: Restricted Stock Awards Shares (in thousands) Weighted Average Grant Price Non-vested at December 31, 2012 818 $ 19.32 Granted 354 17.28 Vested (267 ) 18.83 Cancelled or expired (79 ) 19.15 Non-vested at December 31, 2013 826 $ 18.62 Granted 637 20.21 Vested (286 ) 18.09 Cancelled or expired (78 ) 19.27 Non-vested at December 31, 2014 1,098 $ 19.63 Granted 276 15.95 Vested (349 ) 19.30 Cancelled or expired (190 ) 19.19 Non-vested at December 31, 2015 836 $ 18.66 Restricted Stock Units Shares (in thousands) Weighted Average Remaining Contractual Life (in years) Aggregate Intrinsic Value (in thousands) Non-vested at December 31, 2012 875 Granted 199 Vested (79 ) Cancelled or expired (162 ) Non-vested at December 31, 2013 833 Granted 139 Vested (74 ) Cancelled or expired (241 ) Non-vested at December 31, 2014 658 Granted 122 Vested (54 ) Cancelled or expired (224 ) Non-vested at December 31, 2015 501 1.19 $ 10,720 Vested at December 31, 2015 and expected to vest 484 1.17 $ 4,246 Exercisable at December 31, 2015 285 0.00 $ 6,098 As of December 31, 2015 , there was $18.5 million of unrecognized compensation cost related to RSAs and RSUs. That cost is expected to be recognized over a weighted average-period of 2.2 years . The total fair value of restricted shares vested during the year ended December 31, 2015 , 2014 and 2013 was $8.5 million , $6.5 million , and $7.2 million , respectively. RSAs and RSUs may be granted at the discretion of the Board of Directors under the Equity Incentive Plan in connection with the hiring or retention of key employees and are subject to certain conditions. Restrictions expire at certain dates after the grant date in accordance with specific provisions in the applicable agreement. During the year ended December 31, 2015 , the Company awarded 276,271 shares of RSAs, which had a fair value at the date of grant ranging from $15.93 – $16.72 . During the year ended December 31, 2014 , the Company awarded 637,184 shares of RSAs, which had a fair value at the date of grant ranging from $16.82 – $21.10 . During the year ended December 31, 2013 , the Company awarded 353,537 shares of RSAs, which had a fair value at the date of grant ranging from $16.18 – $18.11 . During the year ended December 31, 2015 , the Company awarded 121,802 shares of RSUs, which had a fair value at the date of grant ranging from $15.93 – $16.72 . During the year ended December 31, 2014 , the Company awarded 139,417 shares of RSUs, which had a fair value at the date of grant ranging from $17.91 – $20.14 . During the year ended December 31, 2013 , the Company awarded 199,051 shares of RSUs, which had a fair value at the date of grant ranging from $16.73 – $20.51 . Compensation under these RSAs and RSUs was charged to expense over the restriction period and amounted to $8.1 million , $8.1 million , and $7.5 million in 2015 , 2014 and 2013 , respectively. There were no significant stock compensation costs capitalized into assets as of December 31, 2015 , 2014 or 2013 . The Company received $1.9 million , $3.7 million , and $7.6 million for the exercise of stock options during the years ended December 31, 2015 , 2014 and 2013 , respectively. Cash was not used to settle any equity instruments previously granted. The Company issued shares pursuant to grants relating to each of the Equity Incentive Plan and 2000 Plan from reserves upon the exercise of stock options and vesting of RSAs. The following are the stock-based compensation costs recognized in the Company’s consolidated statements of comprehensive income (in thousands): Year Ended December 31, 2015 2014 2013 Cost of revenue $ 975 $ 981 $ 856 Research and development 2,422 2,573 2,553 Selling, general and administrative 7,458 5,994 5,812 Stock-based compensation costs reflected in net income $ 10,855 $ 9,548 $ 9,221 Employee Savings Plans and Other Benefit Plans Effective January 1, 2001, the Company began sponsoring a retirement plan authorized by section 401(k) of the Internal Revenue Code for the Company’s employees in the United States. In accordance with the 401(k) plan, all employees are eligible to participate in the plan on the first day of the month following the commencement of full time employment. For 2015 , 2014 and 2013 , each employee could contribute a percentage of compensation up to a maximum of $18,000 , $17,500 , and $17,500 per year, respectively, with the Company matching 50% of each employee’s contributions. Effective January 1, 2010, the Company began contributing to a deferred profit sharing plan for its Canadian employees. All Canadian employees are eligible to participate in the plan. The Company’s contributions to these plans for 2015 , 2014 and 2013 were $2.8 million , $2.5 million , and $2.4 million , respectively. Several of the Company’s Netherlands employees are covered by a defined benefit plan. The cost and total liability to the Company is not material. Effective January 1, 2011, all of the Company’s new hires in the Netherlands are eligible to participate in a defined contribution plan. Employee Stock Purchase Plan In May 2012, the Company's stockholders approved the ESPP, which provides for the granting of up to 500,000 shares of the Company's common stock to eligible employees. The ESPP period is semi-annual and allows participants to purchase the Company's common stock at 85% of the lesser of (i) the closing market value per share of the common stock on the first trading date of the option period or (ii) the closing market value per share of the common stock on the last trading date of the option period. The first plan option period began on July 1, 2012. As of December 31, 2015 , 2014 and 2013 , 260,536 shares, 181,401 shares and 106,522 shares, respectively had been issued out of the ESPP. The related stock-based compensation expense was $0.4 million , $0.4 million and $0.4 million for 2015 , 2014 and 2013 , respectively. The Company uses the Black-Scholes model to estimate the fair value of shares to be issued under the ESPP as of the grant date using the following weighted average assumptions: 2015 Assumptions: Risk-free interest rates 0.07% to 0.08% Expected life 0.4 to 0.5 years Expected volatility 0.47 Dividend yield — % Reserved Shares of Common Stock At December 31, 2015 and 2014 , the Company had reserved 7,485,118 and 4,790,386 shares of common stock, respectively, for the issuance of common stock upon the exercise of options, issuance of RSAs, RSUs, purchase of common stock pursuant to the ESPP or other awards issued pursuant to the Company’s equity plans and arrangements. The following table summarizes the reserved shares by plan as of December 31, 2015 : Options Outstanding Shares Available for Future Issuance Total Shares Reserved Equity Incentive Plan 2,200,803 5,044,851 7,245,654 ESPP — 239,464 239,464 2,200,803 5,284,315 7,485,118 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 15 - COMMITMENTS AND CONTINGENCIES Lease Arrangements The Company has operating leases related primarily to its office and manufacturing facilities with original lease periods of up to ten years. Rental and lease expense for these operating leases for the years 2015 , 2014 and 2013 totaled approximately $4.7 million , $4.5 million , and $5.1 million , respectively. Minimum annual lease commitments as of December 31, 2015 under non-cancellable leases for each of the next five years and in the aggregate were as follows (in thousands): 2016 $ 3,837 2017 3,632 2018 3,524 2019 3,411 2020 1,727 Thereafter 2,842 Total $ 18,973 These non-cancellable lease commitments related to facilities include certain rent escalation provisions which have been included in the minimum annual rental commitments shown above. These amounts are recorded to expense on a straight-line basis over the life of the lease. In addition, some of the Company’s leases contain options to renew the lease for five to ten years at the then prevailing market rental rate, right of first refusal to lease additional space that becomes available, or leasehold improvement incentives. Non-Cancellable Purchase Commitments As of December 31, 2015 the Company had approximately $21.0 million in purchase commitments primarily with several of its inventory suppliers as well as other operating commitments. Certain of our supply agreements require purchase and delivery of minimum amounts of components through 2018, and purchases under these arrangements were $1.2 million , $2.4 million and $1.8 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. Employment Contracts The Company has entered into employment contracts with certain of its key executives. Generally, certain amounts may become payable in the event the Company terminates the executives’ employment without cause or the executive resigns for good reason. Legal Proceedings On August 30, 2012, Abbott Laboratories, Inc. (Abbott) was named as a defendant in a complaint filed by ENZO Life Sciences, Inc. (ENZO) in U.S. District Court in Delaware for alleged infringement of U.S. Patent 7,064,197 as a result of Abbott's distribution of Luminex's xTAG Respiratory Viral Panel. Luminex and Abbott entered into an agreement requiring Luminex to defend and indemnify Abbott for any alleged patent infringement resulting from its distribution of Luminex's xTAG Respiratory Viral Panel. The complaint sought unspecified monetary damages and injunctive relief. Abbott filed an answer to the complaint on October 15, 2012. On November 30, 2012, Luminex intervened in the lawsuit. On January 2, 2013, ENZO filed additional claims against Luminex, alleging infringement of U.S. Patent 7,064,197 resulting from Luminex's sale of its xTAG, FlexScript LDA, SelecTAG, and xMAP Salmonella Serotyping Assay products and alleging infringement of U.S. Patent 8,097,405 resulting from Luminex's sale of MultiCode products. Luminex filed an answer to ENZO's additional claims on January 28, 2013. On October 2, 2013, ENZO filed additional claims against Luminex, alleging infringement of U.S. Patent 6,992,180 resulting from Luminex’s sale of MultiCode products. Luminex filed an answer to ENZO’s additional claims on October 21, 2013. Effective July 2, 2015, Luminex agreed to pay ENZO $7.1 million to settle the litigation. This settlement resulted in the entry of orders dismissing (i) with prejudice all claims, counterclaims and causes of action asserted by ENZO against Luminex, (ii) without prejudice all claims, counterclaims and causes of action asserted by Luminex against ENZO, (iii) with prejudice all claims, counterclaims and causes of action solely under U.S. Patent 7,064,197 asserted in the litigation by ENZO against Abbott and (iv) without prejudice all claims, counterclaims and causes of action relating solely to U.S. Patent 7,064,197 asserted by Abbott against ENZO; and resulted in the grant to the Company and its affiliates of a fully paid, non-exclusive, worldwide license under the patents asserted in the complaint. In addition, the Company and ENZO released each other from certain claims related to the above-referenced patents, including the claims and counterclaims asserted in the complaint. ENZO further released Abbott from certain claims, including those asserted in the complaint, related solely to U.S. Patent 7,064,197. The settlement was entered into solely by way of compromise and does not constitute an admission or concession by Luminex of any liability or wrongdoing. Because Luminex (i) has never paid any royalties to ENZO in the past, (ii) will not be required to pay any future or ongoing royalties to ENZO as a result of the settlement, (iii) has never recorded any revenue or expense related to ENZO in operating revenue or in operating expenses in the past, outside of legal fees, and (iv) believes that it does not infringe on any valid and enforceable claim with respect to the asserted patents, Luminex determined that this settlement of litigation expense was outside of operations. Luminex accordingly recorded the settlement as a separate, non-operating line item in the second quarter of 2015. Luminex made the $7.1 million payment to ENZO in July 2015. On November 1, 2013, Irori Technologies, Inc. (Irori) filed a complaint against Luminex in U.S. District Court in the Southern District of California alleging infringement of its U.S. Patents 6,372,428, 6,416,714, and 6,352,854 resulting from Luminex’s sale of its xMAP and xTAG based products. Luminex filed a motion to dismiss on January 9, 2014. Irori filed its response to our motion to dismiss on February 7, 2014. The court granted the motion to dismiss without prejudice on February 25, 2014. On March 18, 2014, Irori filed an amended complaint, again alleging infringement of U.S. Patents 6,372,428, 6,416,714, and 6,352,854 resulting from Luminex’s sale of its xMAP and xTAG based products. The complaint sought unspecified monetary damages and injunctive relief. Luminex filed an answer to Irori’s amended complaint on April 2, 2014. On June 10, 2014, Luminex filed with the USPTO’s Patent Trial and Appeal Board a total of five petitions for inter partes review (IPR) seeking to invalidate the claims of the three patents involved in the litigation. On June 17, 2014, Luminex filed a motion to stay proceedings in the district court pending the USPTO’s resolution of the IPR of Irori’s patents. Irori filed its opposition to the motion to stay on July 7, 2014, and Luminex filed a reply on July 14, 2014. On July 16, 2014, the court granted Luminex’s motion to stay the case until the earlier of i) a determination by the USPTO that reexamination proceedings will not take place or ii) the conclusion of reexamination proceedings and appeals. On December 11, 2014, the USPTO's Patent Trial and Appeal Board instituted review on all five IPR petitions that Luminex filed. On March 5, 2015 Luminex and Irori reached a settlement. The settlement amount was not material. On March 19, 2015 the district court dismissed Irori's lawsuit with prejudice. On March 26, 2015, the IPR petitions were terminated. When and if it appears probable in management's judgment, and based upon consultation with outside counsel, that we will incur monetary damages or other costs in connection with any claims or proceedings, and such costs can be reasonably estimated, we record the estimated liability in the financial statements. If only a range of estimated losses can be estimated, we record an amount within the range that, in management's judgment, reflects the most likely outcome; if none of the estimates within that range is a better estimate than any other amount, we record the liability at the low end of the range of estimates. Any such accrual would be charged to expense in the appropriate period. We disclose significant contingencies when the loss is not probable and/or the amount of the loss is not estimable, when we believe there is at least a reasonable possibility that a loss has been incurred. We recognize costs associated with legal proceedings in the period in which the services were provided. Other Matters In January 2013, the Company finalized the termination of its molecular diagnostics distribution agreements and an expense of $7.0 million was recorded in selling, general and administrative expenses in the first quarter of 2013. All payments were made in the second quarter of 2013. |
GUARANTEES
GUARANTEES | 12 Months Ended |
Dec. 31, 2015 | |
Guarantees [Abstract] | |
GUARANTEES | NOTE 16 - GUARANTEES The terms and conditions of the Company’s development and supply and license agreements with its strategic partners generally provide for a limited indemnification of such partners, arising from the sale of Luminex systems and consumables, against losses, expenses and liabilities resulting from third-party claims based on an alleged infringement on an intellectual property right of such third party. The terms of such indemnification provisions generally limit the scope of and remedies for such indemnification obligations to a multiple of amounts paid by such strategic partner to Luminex during the previous annual period(s). To date, the Company has not had to reimburse any of its strategic partners for any losses arising from such indemnification obligations. |
GEOGRAPHIC INFORMATION
GEOGRAPHIC INFORMATION | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | NOTE 17 – GEOGRAPHIC INFORMATION The table below provides information regarding product revenues and property and equipment, net from the Company’s sales to customers within the United States and in foreign countries for the years ended December 31 (in thousands): Sales to Customers Property and Equipment, net 2015 2014 2013 2015 2014 2013 Domestic $ 200,427 $ 187,945 $ 178,276 $ 43,910 $ 36,826 $ 30,847 Foreign: Europe 17,034 17,819 16,690 1,358 1,093 1,013 Asia 12,794 14,863 12,287 429 261 234 Canada 3,239 3,664 3,025 2,085 1,746 640 Other 4,214 2,692 3,145 14 19 59 $ 237,708 $ 226,983 $ 213,423 $ 47,796 $ 39,945 $ 32,793 The Company's aggregate foreign currency transaction losses of $841,000 , $16,000 and $385,000 were included in determining the consolidated results for the years ended December 31, 2015 , 2014 and 2013 , respectively. |
RECENT ACCOUNTING PRONOUNCEMENT
RECENT ACCOUNTING PRONOUNCEMENTS | 12 Months Ended |
Dec. 31, 2015 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
RECENT ACCOUNTING PRONOUNCEMENTS | NOTE 18 - RECENT ACCOUNTING PRONOUNCEMENTS In November 2015, the FASB issued guidance which simplifies the presentation of deferred income taxes. This new guidance requires that deferred tax assets and liabilities be classified as non-current in a statement of financial position. The Company early adopted this guidance effective December 31, 2015 on a prospective basis. Adoption of this guidance resulted in a reclassification of the Company's net current deferred tax asset to the net non-current deferred tax asset in the Company's Consolidated Balance Sheet as of December 31, 2015. No prior periods were retrospectively adjusted. In July 2015, the FASB issued guidance regarding the measurement of inventory. The new guidance requires inventory to be measured at the lower of cost and net realizable value, which is defined as the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. This new guidance is effective for the Company's first quarter of fiscal 2018 and early adoption is permitted. The guidance must be applied prospectively. The Company is currently evaluating the impact of the adoption of this requirement on its consolidated financial statements, but does not anticipate that adoption of this guidance will have a material impact on its consolidated financial statements. In February 2015, the FASB amended guidance related to consolidation. This guidance focuses on a reporting company’s consolidation evaluation to determine whether certain legal entities should be consolidated. This guidance is effective for annual periods beginning after December 15, 2015, and is applicable to the Company in fiscal 2017. Early adoption is permitted, including adoption in an interim period. The Company is currently evaluating this guidance, but does not anticipate that adoption of this guidance will have a material impact on its consolidated financial statements. In May 2014, the FASB issued a new standard on revenue recognition, which outlines a single comprehensive model to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The core principle of the revenue model is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In doing so, companies will need to use their judgment and make estimates more extensively than under current U.S. GAAP. These judgments may include identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. The standard is designed to create greater comparability for financial statement users across industries and jurisdictions and also requires enhanced disclosures. On July 9, 2015, the FASB voted in favor of delaying the effective date of the new standard by one year, with early adoption permitted as of the original effective date. The guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. The Company is currently evaluating the impact of the adoption of this standard on its consolidated financial statements. |
SELECTED QUARTERLY RESULTS (UNA
SELECTED QUARTERLY RESULTS (UNAUDITED) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information [Text Block] | NOTE 19 - SELECTED QUARTERLY RESULTS (UNAUDITED) The following table sets forth certain quarterly financial data for the periods indicated (in thousands, except per share data): Quarter Ended March 31, June 30, September 30, December 31, Revenue $ 57,741 $ 58,917 $ 60,601 $ 60,449 Gross profit 40,219 43,270 41,812 43,406 Income from operations 9,693 9,959 9,706 7,999 Net income (1) 7,453 2,629 6,402 20,377 Basic income per common share 0.18 0.06 0.15 0.48 Diluted income per common share 0.18 0.06 0.15 0.47 Quarter Ended March 31, June 30, September 30, December 31, Revenue $ 56,561 $ 55,632 $ 56,684 $ 58,106 Gross profit 39,954 38,147 39,010 42,741 Income from operations 8,185 4,771 4,996 10,185 Net income (2) 5,966 4,725 5,550 22,802 Basic income per common share 0.14 0.11 0.13 0.55 Diluted income per common share 0.14 0.11 0.13 0.54 (1) Net income in the fourth quarter of 2015 included an income tax benefit from the release of a portion of the valuation allowance on deferred tax assets in Canada. See Note 12 – Income Taxes. (2) Net income in the fourth quarter of 2014 included an income tax benefit from the release of a portion of the valuation allowance on deferred tax assets in Canada and the recognition of a tax benefit related to intercompany profits on sales of assets for which the assets had not been disposed of as of December 31, 2014. See Note 12 – Income Taxes. See Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations for further discussion. |
DESCRIPTION OF BUSINESS AND S26
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Description of Business | Description of Business Luminex Corporation, the “Company” or “Luminex,” develops, manufactures and sells proprietary biological testing technologies and products with applications throughout the life sciences, pharmaceutical and diagnostics industries. We have established a position in several segments of the life sciences industry by developing and delivering products that meet a variety of customer needs in specific market segments, including multiplexing, accuracy, precision, sensitivity, specificity, reduction of labor and ability to test for proteins and nucleic acids. These needs are addressed by our proprietary technology, which allows the end user in a laboratory to perform biological testing in a multiplexed format. Multiplexing allows for many different laboratory results to be generated from one sample with a single assay. We have a full range of instruments using our xMAP technology: our LUMINEX 100/200™ systems offer 100-plex testing; our FLEXMAP 3D® system is our high-throughput, 500-plex testing system; and our MAGPIX® system provides 50-plex testing at a lower cost using imaging rather than flow cytometry. By using our xMAP technology, the end users are able to generate multiple simultaneous results per sample. Using the products Luminex has available today, up to 500 simultaneous analyte results can be determined from a single sample. We primarily serve the diagnostics, pharmaceutical and life sciences industries by marketing products, including our testing equipment and assays, to various types of testing laboratories. We have a large installed base of systems that has grown primarily from the following: • placements made by partners who either: • license our xMAP technology and develop products that incorporate our xMAP technology into products that they then sell to end users, or • purchase our proprietary xMAP laboratory instrumentation and our proprietary xMAP microspheres and sell xMAP-based assay products and/or xMAP-based testing services, which run on the xMAP instrumentation, and pay a royalty to us; and • our direct sales force that focuses on the sale of molecular diagnostic assays that run on our xMAP and ARIES ® systems. We have recently received FDA clearance for our ARIES ® system. The ARIES ® system is a sample to answer clinical test system that automates and integrates extraction of nucleic acid from a clinical sample, performs real-time polymerase chain reaction, and detects multiple signals generated by target specific probes. The ARIES ® system was commercially launched in the fourth quarter of 2015. We also received FDA clearance for the ARIES ® HSV (herpes simplex virus) 1&2 Assay in the fourth quarter of 2015. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All significant intercompany transactions and balances have been eliminated upon consolidation. The Company has reclassified certain 2014 amounts in the accompanying condensed consolidated balance sheet to conform to the 2015 presentation. These reclassifications include $0.8 million from accounts receivable, net to prepaids and other. This reclassification was not material to the Company's consolidated financial statements. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual amounts and results could differ from those estimates, and such differences could be material to the financial statements. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents consist of cash deposits and highly liquid investments with original maturities of three months or less when purchased. |
Investments | Investments The Company determines the appropriate classification of its investments in debt and equity securities at the time of purchase and reevaluates such determinations at each balance sheet date. Marketable securities that are bought and held principally for the purpose of selling them in the near term are classified as trading securities and are reported at fair value, with unrealized gains and losses recognized in earnings. Debt securities are classified as held-to-maturity when the Company has the positive intent and ability to hold the securities to maturity. Held-to-maturity securities are stated at amortized cost, which approximates fair value of these investments. Debt securities for which the Company does not have the intent or ability to hold to maturity are classified as available-for-sale. Debt and marketable equity securities not classified as held-to-maturity or as trading are classified as available-for-sale, and are carried at fair market value, with the unrealized gains and losses included in the determination of comprehensive income and reported in stockholders’ equity. Marketable securities are recorded as either short-term or long-term on the balance sheet based on contractual maturity date. The fair value of all securities is determined by obtaining non-binding market prices from the Company's third-party portfolio managers on the last day of the quarter, whose sources may use quoted prices in active markets for identical assets or inputs other than quoted prices that are observable either directly or indirectly in determining fair value. Declines in fair value below the Company’s carrying value deemed to be other than temporary are charged against net earnings. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The fair values of financial instruments are determined by obtaining non-binding market prices from the Company's third-party portfolio managers on the last day of the quarter, whose sources may use quoted prices in active markets for identical assets or inputs other than quoted prices that are observable either directly or indirectly in determining fair value. The Company’s financial instruments include cash and cash equivalents, short-term investments, accounts receivable, cost-method investments, long-term investments, accounts payable and accrued liabilities. The fair values of these financial instruments were not materially different from their carrying or contract values at December 31, 2015 and 2014 . See Note 6 for further details concerning fair value measurements. |
Supplemental Cash Flow Statement Information | Supplemental Cash Flow Statement Information (in thousands) Year Ended December 31, 2015 2014 2013 Cash paid during the period for taxes $ 578 $ 1,193 $ 1,284 Cash paid during the period for interest and penalties 96 157 124 |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments which potentially subject the Company to concentrations of credit risk consist of short-term and long-term investments and trade receivables. The Company’s short-term investments consist of investments in high credit quality financial institutions, non-government sponsored debt securities and corporate issuers. The Company provides credit, in the normal course of business, to a number of its customers geographically dispersed primarily throughout the U.S. The Company attempts to limit its credit risk by performing ongoing credit evaluations of its customers and maintaining adequate allowances for potential credit losses, but the Company does not require collateral. Laboratory Corporation of America (LabCorp) accounted for 24% , 21% and 18% of our total revenues in 2015 , 2014 and 2013 , respectively. Thermo Fisher Scientific, Inc. accounted for 13% , 17% and 17% of our total revenues in 2015 , 2014 and 2013 , respectively. Bio-Rad Laboratories, Inc. accounted for 8% , 7% and 9% of our total revenues in 2015 , 2014 and 2013 , respectively. No other customer accounted for more than 10% of our total revenues in 2015 , 2014 or 2013 . |
Inventories | Inventories Inventories, consisting primarily of raw materials and purchased components, are stated at the lower of cost or market, with cost determined according to the standard cost method, which approximates the first-in, first-out method. As a developer and manufacturer of high technology medical equipment, the Company may be exposed to a number of economic and industry factors that could result in portions of inventory becoming either obsolete or in excess of anticipated usage. These factors include, but are not limited to, technological changes in the Company's markets, ability to meet changing customer requirements, competitive pressures on products and prices, and reliability and replacement of and the availability of key components from suppliers. The Company's policy is to establish inventory reserves when conditions exist that suggest that inventory may be in excess of anticipated demand or is obsolete based upon the Company's assumptions about future demand for products and market conditions. The Company regularly evaluates the ability to realize the value of inventory based on a combination of factors including the following: historical usage rates, forecasted sales or usage, product expiration or end of life dates, estimated current and future market values and new product introductions. Assumptions used in determining the Company's estimates of future product demand may prove to be incorrect, in which case the provision required for excess and obsolete inventory would have to be adjusted. If inventory is determined to be overvalued, excess or obsolete, the Company would be required to record impairment charges within cost of goods sold at the time of such determination. Although considerable effort is made to ensure the accuracy of forecasts of future product demand, any significant unanticipated changes in demand or expected usage could have a significant negative impact on the value of inventory and the Company's operating results. When recorded, reserves are intended to reduce the carrying value of inventory to its net realizable value. |
Property and Equipment | Property and Equipment Property and equipment are carried at cost less accumulated amounts for amortization and depreciation. Property and equipment are typically amortized or depreciated on a straight-line basis over the useful lives of the assets, which range from two to seven years. Leasehold improvements and equipment under capital leases are amortized on a straight-line basis over the shorter of the remaining term of the lease or the estimated useful life of the improvements and equipment. The Company classifies the carrying value of Luminex xMAP or ARIES ® systems placed within the reagent rental program and the instruments on loan to customers in property and equipment as "Assets on loan/rental." |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill represents the excess of the cost over the fair value of the assets of the acquired business. In accordance with Accounting Standards Codification (ASC) 350 “Goodwill and Other” (ASC 350), goodwill is reviewed for impairment at least annually at the beginning of the fourth quarter, or more frequently if impairment indicators arise, using a two-step impairment process tested at our sole reporting unit level. Events or circumstances that could trigger an impairment test include, but are not limited to, a significant adverse change in the business climate, significant changes in our use of the acquired assets, significant negative industry or economic trends, significant under-performance relative to operating performance indicators and significant changes in competition. The Company determined that no triggering events occurred during the year ended December 31, 2015 . In 2015 , the Company estimated the fair value of the reporting unit using a fair-value-based approach based on the market capitalization. In 2014 and 2013 , the Company estimated the fair value of the reporting unit using a discounted cash flow (DCF) analysis of the Company’s projected future results. Determining the fair value of goodwill is subjective in nature and often involves the use of estimates and assumptions including, without limitation, use of estimates of future prices and volumes for the Company’s products, capital needs, economic trends and other factors which are inherently difficult to forecast. The Company's annual test did not result in an impairment charge in 2015 or 2014 , as the estimated fair value of the reporting unit continued to exceed the carrying value by a significant enough amount such that any reasonably likely change in the assumptions used in the analysis would not cause the carrying value to exceed the estimated fair value for the reporting unit. No goodwill impairments were recorded in 2015 , 2014 or 2013 . Intangible assets are amortized on a straight-line basis over their respective estimated useful lives ranging from 5 to 15 years. Any in-process research and development will be an indefinite-lived intangible asset until completion or abandonment, at which point it will be accounted for as a finite-lived intangible asset or written off if abandoned. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets Long-lived assets held and used by the Company are reviewed for impairment whenever events or changes in circumstances indicate that their net book value may not be recoverable. When such factors and circumstances exist, the Company compares the projected undiscounted future cash flows associated with the related asset or group of assets over their estimated useful lives against their respective carrying amounts. Impairment, if any, is based on the excess of the carrying amount over the fair value of those assets and is recorded in the period in which the determination was made. |
Revenue Recognition and Allowance for Doubtful Accounts | Revenue Recognition and Allowance for Doubtful Accounts Revenue is generated primarily from the sale of the Company’s products and related services, which are primarily support and maintenance services on the Company's systems. The Company recognizes product revenue at the time the product is shipped provided there is persuasive evidence of an agreement, no right of return exists, the fee is fixed or determinable and collectability is probable. There is no customer right of return in the Company’s sales agreements. If the criteria for revenue recognition are not met at the time of shipment, the revenue is deferred until all criteria are met. The Company regularly enters into arrangements for system sales that are multiple-element arrangements, including services such as installation and training, and multiple products. These products or services are primarily delivered within a short time frame, approximately three to six months, of the agreement execution date and can also be performed by one of the Company’s third-party partners. Based on the terms and conditions of the sale, management believes that these services can be accounted for separately from the delivered system as the delivered products have value to customers on a stand-alone basis. Items are considered to have stand-alone value when they are sold separately by any vendor or when the customer could resell the item on a stand-alone basis. Accordingly, the estimated selling price of services or products not yet performed or delivered at the time of system shipment are deferred and recognized as revenue as such services are performed. The Company has typically been able to determine the selling price of each deliverable in a multiple-element arrangement based on the price for such deliverable when it is sold separately. If vendor specific objective evidence is not determinable and when third-party evidence is not available, management uses the estimated selling price of a deliverable, which is determined based upon the Company’s pricing policies, expected margin of the deliverable, geographical location and information gathered from customer negotiations. The Company provides systems and certain other hardware to customers through reagent rental agreements under which the customers commit to purchasing minimum quantities of disposable products at a stated price over a defined contract term, which is normally two to three years. Instead of rental payments, the Company recovers the cost of providing the system and other hardware in the amount charged for diagnostic assays and other disposables. Revenue is recognized over the defined contract term as assays and other disposable products are shipped. The depreciation costs associated with the system and other hardware are charged to cost of sales on a straight-line basis over the estimated life of the system. The costs to maintain these instruments in the field are charged to cost of sales as incurred. Revenue from extended service agreements is deferred and recognized ratably over the term of the agreement. The Company may also be entitled to milestone payments that are contingent upon achieving a predefined objective. The Company follows the milestone method of recognizing revenue from milestones and milestone payments are recorded as revenue in full upon achievement of the milestone. Revenues from royalties related to agreements with strategic partners are recognized when such amounts are reported to the Company; therefore, the underlying end user sales may be related to prior periods. Additional revenue is derived from cost-type contracts with the U.S. government. Revenue and profit under cost-plus service contracts are recognized as costs are incurred, plus negotiated fees. Fixed fees on cost-plus service contracts are recognized ratably over the contract performance period as services are performed. Contract costs include labor and related employee benefits, subcontracting costs and other direct costs, as well as allocations of allowable indirect costs. For contract change orders, claims or similar items, judgment is required for estimating the amounts, assessing the potential for realization, and determining whether realization is probable. From time to time, facts develop that require revisions of revenue recognized or cost estimates. To the extent that a revised estimate affects the current or an earlier period, the cumulative effect of the revision is recognized in the period in which the facts requiring the revision become known. Reimbursements of certain costs, including certain hardware costs or out-of-pocket expenses, are included in revenue with corresponding costs included in cost of revenue as costs are incurred. The Company continuously monitors collections and payments from its customers and maintains allowances for doubtful accounts based upon its historical experience and any specific customer collection issues that have been identified. While such credit losses have historically been within the Company’s expectations, there can be no assurance that the Company will continue to experience the same level of credit losses that it has in the past. A significant change in the liquidity or financial position of any one of the Company’s significant customers, or a deterioration in the economic environment in general, could have a material adverse impact on the collectability of the Company’s accounts receivable and its future operating results, including a reduction in future revenues and additional allowances for doubtful accounts. |
Product-Related Expenses | Product-Related Expenses The Company provides for the estimated cost of initial product warranties at the time revenue is recognized. While the Company engages in product quality programs and processes, the Company’s warranty obligation is affected by product failure rates, material usage and service delivery costs incurred in correcting a product failure. Should actual product failure rates, material usage or service delivery costs differ from the Company’s estimates, revisions to the estimated warranty liability would be required. Shipping and handling costs associated with product sales are included in cost of sales. Advertising costs are charged to operations as incurred. The Company does not have any direct-response advertising. Advertising expenses, which include trade shows and conventions, were approximately $2.3 million , $2.3 million and $2.6 million for 2015 , 2014 and 2013 , respectively, and were included in selling, general and administrative expense in the Consolidated Statements of Comprehensive Income. |
Research and Development Costs | Research and Development Costs Research and development costs are expensed in the period incurred. Nonrefundable advance payments for research and development activities for materials, equipment, facilities and purchased intangible assets that have an alternative future use are deferred and capitalized. The capitalized amounts are expensed as the related goods are delivered or the services are performed. In addition, the Company capitalizes certain internally developed products used for evaluation during development projects that also have alternative future uses. These internally developed assets are generally depreciated on a straight-line basis over the useful life of the assets, which range from one to two years. |
Foreign Currency Translation | Foreign Currency Translation The financial statements of the Company’s foreign subsidiaries are translated in accordance with ASC 830, “Foreign Currency Matters.” The reporting currency for the Company is the U.S. dollar. With the exception of its Canadian subsidiary, whose functional currency is the U.S. dollar, the functional currency of the Company’s foreign subsidiaries is their local currency. Accordingly, assets and liabilities of these subsidiaries are translated at the exchange rate in effect at each balance sheet date. Before translation, the Company re-measures foreign currency denominated assets and liabilities, including inter-company accounts receivable and payable, into the functional currency of the respective entity, resulting in unrealized gains or losses recorded in selling, general and administrative expenses in the Consolidated Statement of Comprehensive Income. Revenues and expenses are translated using average exchange rates during the respective period. Foreign currency translation adjustments are accumulated as a component of other comprehensive income as a separate component of stockholders’ equity. Gains and losses arising from transactions denominated in foreign currencies are included in selling, general and administrative expenses in the Consolidated Statement of Comprehensive Income and to date have not been material. |
Incentive Compensation | Incentive Compensation Management incentive plans are tied to various financial and non-financial performance metrics. Bonus accruals made throughout the year related to the various incentive plans are based on management’s best estimate of the achievement of the specific metrics. Adjustments to the accruals are made on a quarterly basis as forecasts of performance are updated. At year-end, the accruals are adjusted to reflect the actual results achieved. |
Income Taxes | Income Taxes The Company accounts for income taxes under the asset and liability method. Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax balances are adjusted to reflect tax rates based on currently enacted tax laws, which will be in effect in the years in which the temporary differences are expected to reverse. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the results of operations in the period of the enactment date. A valuation allowance is recorded to reduce the carrying amounts of deferred tax assets unless it is more likely than not that those assets will be realized. The Company recognizes excess tax benefits associated with share-based compensation to stockholders’ equity only when realized. When assessing whether excess tax benefits relating to share-based compensation have been realized, the Company follows the with-and-without approach, excluding any indirect effects of the excess tax deductions. Under this approach, excess tax benefits related to share-based compensation are not deemed to be realized until after the utilization of all other tax benefits available to the Company. The Company accounts for uncertain tax positions in accordance with ASC 740, “Income Taxes”, which clarifies the accounting for uncertainty in tax positions. These provisions require recognition of the impact of a tax position in the Company’s financial statements only if that position is more likely than not of being sustained upon examination by taxing authorities, based on the technical merits of the position. Any interest and penalties related to uncertain tax positions will be reflected as a component of income tax expense. |
Settlement of Litigation | Settlement of Litigation Effective July 2, 2015, Luminex agreed to pay $7.1 million to settle a complaint filed by ENZO Life Sciences. See Note 15 - Commitments and Contingencies. We recorded the settlement as non-operating expense in the second quarter of 2015. In October 2015, Luminex settled a lawsuit that we filed in 2013 against a third party alleging breach of contract and patent infringement in exchange for a $2.0 million lump sum payment. We received the $2.0 million payment in October 2015 and recorded the settlement as non-operating other income in the fourth quarter of 2015. The Company is not currently a party to any litigation. |
Earnings Per Share | Earnings Per Share Basic net income per share is computed by dividing the net income for the period by the weighted average number of common shares outstanding during the period. Diluted net income per share is computed by dividing the net income for the period by the weighted average number of common shares and potential common shares from outstanding stock options, restricted stock units (RSUs) and contingently issuable shares resulting from an award subject to performance or market conditions determined by applying the treasury stock method. In periods with a net loss, potentially dilutive securities composed of incremental common shares issuable upon the exercise of stock options and warrants, and common shares issuable on conversion of preferred stock, would be excluded from historical diluted loss per share because of their anti-dilutive effect. |
Stock-Based Compensation | Stock-Based Compensation The Company accounts for stock-based employee compensation plans under the fair value recognition and measurement provisions of ASC 718 “Stock Compensation” (ASC 718). ASC 718 requires the recognition of compensation expense, using a fair-value based method, for costs related to all share-based payments including stock options, restricted stock units and shares issued under the Company’s employee stock purchase plan. Pursuant to ASC 718, stock-based compensation cost is measured at the grant date, based on the fair value of the award, and is recognized as expense over the requisite service period. |
Segment Reporting | Segment Reporting During the fourth quarter of 2014, following the appointment of our new CEO, the Company evaluated its historical reporting segments: the TSP segment and the ARP segment. As a result of this evaluation and based upon how the Company's Chief Executive Officer and the Company's management team collectively manages its business, management determined that the two former segments were so integrated and interrelated that they no longer provide an accurate representation of the Company's business when reported separately. Additionally, management took actions to consolidate sales and service functions. As a result, effective with the fourth quarter of 2014, the Company no longer has two operating segments and, accordingly, the Company's business as one operating segment and one reporting unit. |
DESCRIPTION OF BUSINESS AND S27
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Supplemental Cash Flow Statement Information | Supplemental Cash Flow Statement Information (in thousands) Year Ended December 31, 2015 2014 2013 Cash paid during the period for taxes $ 578 $ 1,193 $ 1,284 Cash paid during the period for interest and penalties 96 157 124 |
RESTRUCTURING (Tables)
RESTRUCTURING (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
RESTRUCTURING [Abstract] | |
Restructuring and Related Activities Disclosure [Text Block] | 2013 Restructuring Plan Year Ended December 31, 2014 Non-cash impairment charges: Inventory $ 1,183 Property and equipment 494 Goodwill 1,159 Employee separation costs 154 Facility exit costs 69 Other 41 Total charges $ 3,100 Recorded to cost of revenue 1,218 Recorded to restructuring costs $ 1,882 |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Investments [Abstract] | |
Components of available-for-sale securities | Available-for-sale securities consisted of the following as of December 31, 2015 (in thousands): Amortized Cost Gains in Accumulated Other Comprehensive Income (Loss) Losses in Accumulated Other Comprehensive Income (Loss) Estimated Fair Value Current: Money Market funds $ 144 $ — $ — $ 144 Government sponsored debt securities 10,000 — (10 ) 9,990 Non-government sponsored debt securities 2,001 — (3 ) 1,998 Total current securities 12,145 — (13 ) 12,132 Noncurrent: Government sponsored debt securities 1,998 — (6 ) 1,992 Non-government sponsored debt securities 5,491 — (24 ) 5,467 Total noncurrent securities 7,489 — (30 ) 7,459 Total available-for-sale securities $ 19,634 $ — $ (43 ) $ 19,591 Available-for-sale securities consisted of the following as of December 31, 2014 (in thousands): Amortized Cost Gains in Accumulated Other Comprehensive Income (Loss) Losses in Accumulated Other Comprehensive Income (Loss) Estimated Fair Value Current: Money Market funds $ 3,569 $ — $ — $ 3,569 Total current securities 3,569 — — 3,569 Noncurrent: Government sponsored debt securities 10,000 — (11 ) 9,989 Non-government sponsored debt securities 6,002 — (16 ) 5,986 Total noncurrent securities 16,002 — (27 ) 15,975 Total available-for-sale securities $ 19,571 $ — $ (27 ) $ 19,544 |
Estimated fair value of available-for-sale debt securities, by contractual maturity | The estimated fair value of available-for-sale debt securities at December 31, 2015 , by contractual maturity, was as follows (in thousands): Estimated Fair Value Due in one year or less $ 11,988 Due after one year through two years 7,459 $ 19,447 |
ACCOUNTS RECEIVABLE AND RESER30
ACCOUNTS RECEIVABLE AND RESERVES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Receivables [Abstract] | |
Components of Accounts Receivable | Accounts receivable consisted of the following at December 31 (in thousands): 2015 2014 Accounts receivable $ 29,057 $ 32,629 Less: Allowance for doubtful accounts (204 ) (4,357 ) $ 28,853 $ 28,272 |
Changes in Allowance for Doubtful Accounts | The following table summarizes the changes in the allowance for doubtful accounts (in thousands): Balance at December 31, 2012 $ 444 Increases charged to costs and expenses 4,604 Write-offs of uncollectible accounts (469 ) Balance at December 31, 2013 $ 4,579 Recoveries charged to costs and expenses (123 ) Write-offs of uncollectible accounts (99 ) Balance at December 31, 2014 $ 4,357 Increases charged to costs and expenses 456 Write-offs of uncollectible accounts (4,609 ) Balance at December 31, 2015 $ 204 |
INVENTORIES, NET (Tables)
INVENTORIES, NET (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Inventory, Net [Abstract] | |
Inventory | Inventories consisted of the following at December 31 (in thousands): 2015 2014 Parts and supplies $ 15,296 $ 19,354 Work-in-progress 8,797 8,687 Finished goods 7,159 8,575 $ 31,252 $ 36,616 |
FAIR VALUE MEASUREMENT (Tables)
FAIR VALUE MEASUREMENT (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair value, financial assets (cash equivalents and investments) measured on a recurring basis | The following table represents the Company’s fair value hierarchy for its financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2015 and 2014 (in thousands): Fair Value Measurements at December 31, 2015 Level 1 Level 2 Level 3 Total Assets: Money Market funds $ 144 $ — $ — $ 144 Government sponsored debt securities — 11,988 — 11,988 Non-government sponsored debt securities — 7,459 — 7,459 Fair Value Measurements at December 31, 2014 Level 1 Level 2 Level 3 Total Assets: Money Market funds $ 3,569 $ — $ — $ 3,569 Government sponsored debt securities — 9,989 — 9,989 Non-government sponsored debt securities — 5,986 — 5,986 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property and equipment consisted of the following at December 31 (in thousands): 2015 2014 Laboratory equipment $ 41,795 $ 33,137 Leasehold improvements 28,651 26,119 Computer equipment 5,274 7,659 Purchased software 20,782 20,440 Furniture and fixtures 5,020 4,754 Assets on loan/rental 8,596 5,229 Capital lease equipment 1,321 1,321 111,439 98,659 Less: Accumulated depreciation (63,643 ) (58,714 ) $ 47,796 $ 39,945 |
GOODWILL AND OTHER INTANGIBLE34
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in the carrying amount of goodwill | The changes in the carrying amount of goodwill during the period are as follows (in thousands): 2015 2014 Balance at beginning of year $ 49,619 $ 50,738 Allocation in disposal of Brisbane, Australia business (See Note 2) — (1,159 ) Foreign currency translation adjustments — 40 Balance at end of year $ 49,619 $ 49,619 |
Schedule of intangible assets | The Company’s intangible assets are reflected in the table below (in thousands, except weighted average lives): Definite-lived Indefinite-lived Technology, trade secrets and know-how Customer lists and contracts Other identifiable intangible assets IP R&D Total 2014 Balance at December 31, 2013 $ 29,676 $ 7,952 $ 1,880 $ 40,100 $ 79,608 Foreign currency translation adjustments 28 6 10 — 44 Balance at December 31, 2014 29,704 7,958 1,890 40,100 79,652 Less: accumulated amortization: Accumulated amortization balance at December 31, 2013 (16,272 ) (2,326 ) (715 ) — (19,313 ) Amortization expense (3,025 ) (753 ) (135 ) — (3,913 ) Foreign currency translation adjustments (28 ) (6 ) (10 ) — (44 ) Accumulated amortization balance at December 31, 2014 (19,325 ) (3,085 ) (860 ) — (23,270 ) Net balance at December 31, 2014 $ 10,379 $ 4,873 $ 1,030 $ 40,100 $ 56,382 Weighted average life (in years) 10 11 11 2015 Balance at December 31, 2014 $ 29,704 $ 7,958 $ 1,890 $ 40,100 $ 79,652 Completion of IP R&D projects 40,100 — — (40,100 ) — Removal of fully amortized assets (702 ) (161 ) (238 ) — (1,101 ) Balance at December 31, 2015 69,102 7,797 1,652 — 78,551 Less: accumulated amortization: Accumulated amortization balance at December 31, 2014 (19,325 ) (3,085 ) (860 ) — (23,270 ) Amortization expense (3,023 ) (743 ) (134 ) — (3,900 ) Removal of fully amortized assets 702 161 238 — 1,101 Accumulated amortization balance at December 31, 2015 (21,646 ) (3,667 ) (756 ) — (26,069 ) Net balance at December 31, 2015 $ 47,456 $ 4,130 $ 896 $ — $ 52,482 Weighted average life (in years) 10 11 11 |
Estimated aggregate amortization expense for the next five years and thereafter | The estimated aggregate amortization expense for the next five years and thereafter is as follows (in thousands): 2016 $ 7,110 2017 6,154 2018 5,964 2019 5,964 2020 5,964 Thereafter 21,326 $ 52,482 |
OTHER COMPREHENSIVE (LOSS) IN35
OTHER COMPREHENSIVE (LOSS) INCOME OTHER COMPREHENSIVE (LOSS) INCOME (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | The following table presents the changes in each component of accumulated other comprehensive loss, net of tax (in thousands): Foreign Currency Items Available for Sale Investments Accumulated Other Comprehensive Income Items Balance at December 31, 2014 $ (727 ) $ (17 ) $ (744 ) Other comprehensive loss before reclassifications (531 ) (21 ) (552 ) Net current-period other comprehensive loss (531 ) (21 ) (552 ) Balance at December 31, 2015 $ (1,258 ) $ (38 ) $ (1,296 ) |
Comprehensive Income (Loss) [Table Text Block] | The following table presents the tax expense allocated to each component of other comprehensive loss (in thousands): Twelve Months Ended December 31, 2015 Before Tax Tax Benefit Net of Tax Foreign currency translation adjustments $ (531 ) $ — $ (531 ) Unrealized losses on available-for-sale investments (16 ) (5 ) (21 ) Other comprehensive loss $ (547 ) $ (5 ) $ (552 ) |
OTHER ASSETS (Tables)
OTHER ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Other Assets [Abstract] | |
Components of Other Assets | Other assets consisted of the following at December 31 (in thousands): 2015 2014 Purchased technology rights (net of accumulated amortization of $3,826 and $3,392 in 2015 and 2014, respectively) $ 1,922 $ 1,543 Cost-method investments 1,000 1,000 Other 931 642 $ 3,853 $ 3,185 |
ACCRUED LIABILITIES (Tables)
ACCRUED LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accrued Liabilities, Current [Abstract] | |
Schedule of Accrued Liabilities [Table Text Block] | Accrued liabilities consisted of the following as of December 31 (in thousands): 2015 2014 Compensation and employee benefits $ 10,946 $ 9,960 Income and other taxes 1,261 870 Warranty costs 553 488 Other 2,392 2,800 $ 15,152 $ 14,118 |
Changes in warranty accrual | The following table summarizes the changes in the warranty accrual (in thousands): Accrued warranty costs at December 31, 2012 $ 603 Warranty expenses (1,150 ) Accrual for warranty costs 1,268 Accrued warranty costs at December 31, 2013 721 Warranty expenses (914 ) Accrual for warranty costs 681 Accrued warranty costs at December 31, 2014 488 Warranty expenses (859 ) Accrual for warranty costs 924 Accrued warranty costs at December 31, 2015 $ 553 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Components of income before income taxes | The components of income before income taxes for the years ended December 31 are as follows (in thousands): 2015 2014 2013 Domestic $ 7,472 $ 12,762 $ 20,301 Foreign 25,572 15,323 (8,877 ) Total $ 33,044 $ 28,085 $ 11,424 |
Components of the provision (benefit) for income taxes attributable to continuing operations | The components of the (benefit) provision for income taxes attributable to continuing operations for the years ended December 31 are as follows (in thousands): 2015 2014 2013 Current: Federal $ 490 $ 2,191 $ 4,024 Foreign 174 (1,833 ) 406 State 58 305 720 Total current $ 722 $ 663 $ 5,150 Deferred: Federal (13 ) (2,471 ) (381 ) Foreign (4,422 ) (10,329 ) (1 ) State (104 ) 1,179 (440 ) Total deferred (4,539 ) (11,621 ) (822 ) Total (benefit) provision for income taxes $ (3,817 ) $ (10,958 ) $ 4,328 |
Income tax rate reconciliation | The provision for income taxes differs from the amount computed by applying the statutory federal rate to pretax income as follows (in percentages): Year Ended December 31, 2015 2014 2013 Statutory tax rate 35.0 % 35.0 % 35.0 % State taxes, net of federal benefit (0.2 )% 4.9 % 0.3 % Permanent items 0.6 % (1.9 )% (4.6 )% Effect of foreign operations (8.0 )% (3.0 )% 3.1 % Research and incentive tax credit generated (3.0 )% (9.5 )% (43.0 )% Valuation allowance (32.1 )% (39.5 )% 42.6 % Income tax reserves (0.5 )% (0.4 )% 4.9 % Deferred charge 0.0 % (9.1 )% 0.0 % Worthless stock deduction 0.0 % (6.2 )% 0.0 % Nontaxable cancellation of debt (3.5 )% 0.0 % 0.0 % Stock compensation deferred 0.0 % (10.7 )% 0.0 % Other 0.1 % 1.4 % (0.4 )% (11.6 )% (39.0 )% 37.9 % |
Deferred tax assets and liabilities | 2015 2014 Deferred tax assets: Accrued liabilities and other $ 5,705 $ 12,220 Net operating loss and credit carryforwards 50,628 47,598 Deferred revenue 2,400 2,541 Depreciation and amortization 5,843 8,099 Stock compensation and other 6,591 5,231 Gross deferred tax assets 71,167 75,689 Valuation allowance (14,867 ) (25,012 ) Total deferred tax assets $ 56,300 $ 50,677 Deferred tax liabilities: Accrued liabilities and other $ (1,313 ) $ (1,000 ) Depreciation and amortization (22,239 ) (21,097 ) Stock compensation — (50 ) Acquired intangibles (927 ) (927 ) Total deferred tax liabilities (24,479 ) (23,074 ) Net deferred tax assets $ 31,821 $ 27,603 |
Reconciliation of unrecognized tax benefits | A reconciliation of the beginning and ending balance of unrecognized tax benefits is as follows (in thousands): 2015 2014 Balance at beginning of year $ 2,318 $ 2,333 Additions based on tax positions related to the current year 168 156 Additions for tax positions of prior years — 58 Reductions for tax positions of prior years (9 ) (131 ) Lapse of statute of limitations (293 ) (98 ) Balance at end of year $ 2,184 $ 2,318 |
NET INCOME PER SHARE (Tables)
NET INCOME PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of Calculation of Numerator and Denominator in Earnings Per Share | The following table sets forth the computation of basic and diluted net income per share (in thousands, except share and per share data): Year Ended December 31, 2015 2014 2013 Numerator: Net income $ 36,861 $ 39,043 $ 7,096 Denominator: Denominator for basic net income per share - weighted average common stock outstanding 42,091 41,558 40,799 Effect of dilutive securities: Stock options and awards 546 598 1,187 Denominator for diluted net income per share - weighted average shares outstanding - diluted 42,637 42,156 41,986 Basic net income per share $ 0.88 $ 0.94 $ 0.17 Diluted net income per share $ 0.86 $ 0.93 $ 0.17 |
STOCKHOLDERS' EQUITY, EMPLOYE40
STOCKHOLDERS' EQUITY, EMPLOYEE BENEFIT PLANS AND STOCK-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Schedule Of Assumptions For Employee Stock Purchase Plan [Line Items] | |
Fair value assumptions used for stock-based compensation costs | The assumptions used are summarized in the following table: 2015 2014 2013 Dividend yield — % — % — % Expected volatility 0.5 0.5 0.5 Risk-free rate of return 1.6 % 1.8 % 1.2 % Expected life of a 10 year contractual term option 7 years 7 years 7 years Expected life of a 7 year contractual term option 4.87 years — — Weighted average fair value at grant date $ 6.73 $ 10.75 $ 8.79 |
Stock options activity | The Company’s stock option activity for the years ended December 31, 2013 , 2014 and 2015 is as follows: Stock Options Shares (in thousands) Weighted Average Exercise Price Weighted Average Remaining Contractual Life (in years) Aggregate Intrinsic Value (in thousands) Outstanding at December 31, 2012 1,676 $ 12.13 Granted 159 17.24 Exercised (835 ) 9.06 Cancelled or expired (33 ) 19.80 Outstanding at December 31, 2013 967 $ 15.35 Granted 250 21.10 Exercised (348 ) 10.59 Cancelled or expired (44 ) 20.17 Outstanding at December 31, 2014 825 $ 18.84 Granted 1,023 15.98 Exercised (129 ) 14.59 Cancelled or expired (27 ) 16.67 Outstanding at December 31, 2015 1,692 $ 17.47 5.58 $ 6,775 Vested at December 31, 2015 and expected to vest 1,622 $ 17.50 5.56 $ 6,449 Exercisable at December 31, 2015 464 $ 19.27 3.99 $ 1,129 |
Restricted shares activity | The Company’s restricted share activity for the years ended December 31, 2013 , 2014 and 2015 is as follows: Restricted Stock Awards Shares (in thousands) Weighted Average Grant Price Non-vested at December 31, 2012 818 $ 19.32 Granted 354 17.28 Vested (267 ) 18.83 Cancelled or expired (79 ) 19.15 Non-vested at December 31, 2013 826 $ 18.62 Granted 637 20.21 Vested (286 ) 18.09 Cancelled or expired (78 ) 19.27 Non-vested at December 31, 2014 1,098 $ 19.63 Granted 276 15.95 Vested (349 ) 19.30 Cancelled or expired (190 ) 19.19 Non-vested at December 31, 2015 836 $ 18.66 Restricted Stock Units Shares (in thousands) Weighted Average Remaining Contractual Life (in years) Aggregate Intrinsic Value (in thousands) Non-vested at December 31, 2012 875 Granted 199 Vested (79 ) Cancelled or expired (162 ) Non-vested at December 31, 2013 833 Granted 139 Vested (74 ) Cancelled or expired (241 ) Non-vested at December 31, 2014 658 Granted 122 Vested (54 ) Cancelled or expired (224 ) Non-vested at December 31, 2015 501 1.19 $ 10,720 Vested at December 31, 2015 and expected to vest 484 1.17 $ 4,246 Exercisable at December 31, 2015 285 0.00 $ 6,098 |
Stock-based compensation costs recognized in consolidated statements of income | The following are the stock-based compensation costs recognized in the Company’s consolidated statements of comprehensive income (in thousands): Year Ended December 31, 2015 2014 2013 Cost of revenue $ 975 $ 981 $ 856 Research and development 2,422 2,573 2,553 Selling, general and administrative 7,458 5,994 5,812 Stock-based compensation costs reflected in net income $ 10,855 $ 9,548 $ 9,221 |
Reserved shares by plan | The following table summarizes the reserved shares by plan as of December 31, 2015 : Options Outstanding Shares Available for Future Issuance Total Shares Reserved Equity Incentive Plan 2,200,803 5,044,851 7,245,654 ESPP — 239,464 239,464 2,200,803 5,284,315 7,485,118 |
Employee Stock Purchase Plan [Member] | |
Schedule Of Assumptions For Employee Stock Purchase Plan [Line Items] | |
Fair value assumptions used for stock-based compensation costs | The Company uses the Black-Scholes model to estimate the fair value of shares to be issued under the ESPP as of the grant date using the following weighted average assumptions: 2015 Assumptions: Risk-free interest rates 0.07% to 0.08% Expected life 0.4 to 0.5 years Expected volatility 0.47 Dividend yield — % |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of minimum lease commitments for the next five years | Minimum annual lease commitments as of December 31, 2015 under non-cancellable leases for each of the next five years and in the aggregate were as follows (in thousands): 2016 $ 3,837 2017 3,632 2018 3,524 2019 3,411 2020 1,727 Thereafter 2,842 Total $ 18,973 |
GEOGRAPHIC INFORMATION (Tables)
GEOGRAPHIC INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Schedule of sales and property and equipment, net by geographical area | The table below provides information regarding product revenues and property and equipment, net from the Company’s sales to customers within the United States and in foreign countries for the years ended December 31 (in thousands): Sales to Customers Property and Equipment, net 2015 2014 2013 2015 2014 2013 Domestic $ 200,427 $ 187,945 $ 178,276 $ 43,910 $ 36,826 $ 30,847 Foreign: Europe 17,034 17,819 16,690 1,358 1,093 1,013 Asia 12,794 14,863 12,287 429 261 234 Canada 3,239 3,664 3,025 2,085 1,746 640 Other 4,214 2,692 3,145 14 19 59 $ 237,708 $ 226,983 $ 213,423 $ 47,796 $ 39,945 $ 32,793 |
SELECTED QUARTERLY RESULTS (Tab
SELECTED QUARTERLY RESULTS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information [Table Text Block] | The following table sets forth certain quarterly financial data for the periods indicated (in thousands, except per share data): Quarter Ended March 31, June 30, September 30, December 31, Revenue $ 57,741 $ 58,917 $ 60,601 $ 60,449 Gross profit 40,219 43,270 41,812 43,406 Income from operations 9,693 9,959 9,706 7,999 Net income (1) 7,453 2,629 6,402 20,377 Basic income per common share 0.18 0.06 0.15 0.48 Diluted income per common share 0.18 0.06 0.15 0.47 Quarter Ended March 31, June 30, September 30, December 31, Revenue $ 56,561 $ 55,632 $ 56,684 $ 58,106 Gross profit 39,954 38,147 39,010 42,741 Income from operations 8,185 4,771 4,996 10,185 Net income (2) 5,966 4,725 5,550 22,802 Basic income per common share 0.14 0.11 0.13 0.55 Diluted income per common share 0.14 0.11 0.13 0.54 |
DESCRIPTION OF BUSINESS AND S44
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Concentration Risk [Line Items] | |||
Goodwill, Impairment Loss | $ 0 | $ 0 | $ 0 |
Prior Period Reclassification Adjustment | 800 | ||
Supplemental Cash Flow Information [Abstract] | |||
Cash paid during the period for taxes | 578 | 1,193 | 1,284 |
Cash paid during the period for interest and penalties | $ 96 | $ 157 | $ 124 |
Laboratory Corporation of America (LabCorp) [Member] | |||
Concentration Risk [Line Items] | |||
Percentage of total revenues | 24.00% | 21.00% | 18.00% |
Thermo Fisher Scientific, Inc. [Member] | |||
Concentration Risk [Line Items] | |||
Percentage of total revenues | 13.00% | 17.00% | 17.00% |
Bio-Rad Laboratories, Inc. [Member] | |||
Concentration Risk [Line Items] | |||
Percentage of total revenues | 8.00% | 7.00% | 9.00% |
DESCRIPTION OF BUSINESS AND S45
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2015 | Jun. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Intangible Assets [Line Items] | |||||
Settlement of litigation | $ 2,000 | $ 7,100 | $ (5,300) | $ 0 | $ 0 |
Assets [Abstract] | |||||
Advertising expenses | $ 2,300 | $ 2,300 | $ 2,600 | ||
Customer Lists and Contracts [Member] | |||||
Intangible Assets [Line Items] | |||||
Intangible assets, estimated lives | 11 years | 11 years | |||
Minimum [Member] | |||||
Intangible Assets [Line Items] | |||||
Intangible assets, estimated lives | 5 years | ||||
Assets [Abstract] | |||||
Property and equipment, Useful Life | 2 years | ||||
Minimum [Member] | Research and Development Expense [Member] | |||||
Intangible Assets [Line Items] | |||||
Intangible assets, estimated lives | 1 year | ||||
Maximum [Member] | |||||
Intangible Assets [Line Items] | |||||
Intangible assets, estimated lives | 15 years | ||||
Assets [Abstract] | |||||
Property and equipment, Useful Life | 7 years | ||||
Maximum [Member] | Research and Development Expense [Member] | |||||
Intangible Assets [Line Items] | |||||
Intangible assets, estimated lives | 2 years |
RESTRUCTURING (Details)
RESTRUCTURING (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Restructuring Cost and Reserve [Line Items] | |||
Asset Impairment Charges | $ 0 | $ (2,800) | |
Employee Separation Costs | 154 | ||
Facility Exit Costs | 69 | ||
Other Restructuring Costs | 41 | ||
Total Restructuring Charges | 3,100 | ||
Restructuring Charges Included In Cost Of Revenue | 1,218 | ||
Restructuring Charges And Associated Cost | 1,882 | ||
Discontinued Operation, Gain (Loss) from Disposal of Discontinued Operation, before Income Tax | 2,800 | $ 3,900 | |
Inventories [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Asset Impairment Charges | (1,183) | ||
Property, Plant and Equipment [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Asset Impairment Charges | (494) | ||
Goodwill [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Asset Impairment Charges | $ (1,159) |
INVESTMENTS (Details)
INVESTMENTS (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Components of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 19,634 | $ 19,571 |
Gains in Accumulated Other Comprehensive Income (Loss) | 0 | 0 |
Losses in Accumulated Other Comprehensive Income (Loss) | (43) | (27) |
Estimated Fair Value | 19,591 | 19,544 |
Proceeds from Sale of Available-for-sale Securities | 0 | 0 |
Available-for-sale securities, debt maturities [Abstract] | ||
Due in one year or less | 11,988 | |
Due after one year through two years | 7,459 | |
Total estimated fair value of available-for-sale debt securities | 19,447 | |
Money Market Funds [Member] | ||
Components of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 144 | 3,569 |
Gains in Accumulated Other Comprehensive Income (Loss) | 0 | 0 |
Losses in Accumulated Other Comprehensive Income (Loss) | 0 | 0 |
Estimated Fair Value | 144 | 3,569 |
Current government-sponsored debt securities [Member] | ||
Components of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 10,000 | |
Gains in Accumulated Other Comprehensive Income (Loss) | 0 | |
Losses in Accumulated Other Comprehensive Income (Loss) | (10) | |
Estimated Fair Value | 9,990 | |
Current Non-Government Sponsored Debt Securities [Member] | ||
Components of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 2,001 | |
Gains in Accumulated Other Comprehensive Income (Loss) | 0 | |
Losses in Accumulated Other Comprehensive Income (Loss) | (3) | |
Estimated Fair Value | 1,998 | |
Total Current Available-for-sale Securities [Member] | ||
Components of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 12,145 | 3,569 |
Gains in Accumulated Other Comprehensive Income (Loss) | 0 | 0 |
Losses in Accumulated Other Comprehensive Income (Loss) | (13) | 0 |
Estimated Fair Value | 12,132 | 3,569 |
Non-Current Government Sponsored Debt Securities [Member] | ||
Components of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 1,998 | 10,000 |
Gains in Accumulated Other Comprehensive Income (Loss) | 0 | 0 |
Losses in Accumulated Other Comprehensive Income (Loss) | (6) | (11) |
Estimated Fair Value | 1,992 | 9,989 |
Non-Current Non-Government Sponsored Debt Securities [Member] | ||
Components of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 5,491 | 6,002 |
Gains in Accumulated Other Comprehensive Income (Loss) | 0 | 0 |
Losses in Accumulated Other Comprehensive Income (Loss) | (24) | (16) |
Estimated Fair Value | 5,467 | 5,986 |
Total Non-Current Available-for-sale Securities [Member] | ||
Components of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 7,489 | 16,002 |
Gains in Accumulated Other Comprehensive Income (Loss) | 0 | 0 |
Losses in Accumulated Other Comprehensive Income (Loss) | (30) | (27) |
Estimated Fair Value | $ 7,459 | $ 15,975 |
ACCOUNTS RECEIVABLE AND RESER48
ACCOUNTS RECEIVABLE AND RESERVES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Receivables [Abstract] | |||
Accounts receivable, gross | $ 29,057 | $ 32,629 | |
Less: Allowance for doubtful accounts | (204) | (4,357) | |
Accounts receivable, net | 28,853 | 28,272 | |
Allowance for Doubtful Accounts [Roll Forward] | |||
Balance | 4,357 | 4,579 | $ 444 |
Reductions charged to costs and expenses | (456) | (123) | (4,604) |
Write-offs of uncollectible accounts | (4,609) | (99) | (469) |
Balance | $ 204 | $ 4,357 | $ 4,579 |
INVENTORIES, NET (Details)
INVENTORIES, NET (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Inventory, Net [Abstract] | ||
Parts and supplies | $ 15,296 | $ 19,354 |
Work-in-progress | 8,797 | 8,687 |
Finished goods | 7,159 | 8,575 |
Inventory, net | 31,252 | $ 36,616 |
Non-cancelable purchase commitments | $ 21,000 |
FAIR VALUE MEASUREMENT (Details
FAIR VALUE MEASUREMENT (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Amounts included in asset accounts [Abstract] | ||
Money Market funds | $ 144 | $ 3,569 |
Government sponsored debt securities fair value disclosure | 11,988 | 9,989 |
Non-government sponsored debt securities | 7,459 | 5,986 |
Fair Value, Inputs, Level 1 [Member] | ||
Amounts included in asset accounts [Abstract] | ||
Money Market funds | 144 | 3,569 |
Government sponsored debt securities fair value disclosure | 0 | 0 |
Non-government sponsored debt securities | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | ||
Amounts included in asset accounts [Abstract] | ||
Money Market funds | 0 | 0 |
Government sponsored debt securities fair value disclosure | 11,988 | 9,989 |
Non-government sponsored debt securities | 7,459 | 5,986 |
Fair Value, Inputs, Level 3 [Member] | ||
Amounts included in asset accounts [Abstract] | ||
Money Market funds | 0 | 0 |
Government sponsored debt securities fair value disclosure | 0 | 0 |
Non-government sponsored debt securities | $ 0 | $ 0 |
PROPERTY AND EQUIPMENT (Details
PROPERTY AND EQUIPMENT (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 111,439 | $ 98,659 | |
Less: Accumulated amortization and depreciation | (63,643) | (58,714) | |
Property, plant and equipment, net | 47,796 | 39,945 | $ 32,793 |
Depreciation expense | 9,400 | 8,900 | $ 10,200 |
Laboratory Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 41,795 | 33,137 | |
Leasehold Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 28,651 | 26,119 | |
Computer Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 5,274 | 7,659 | |
Purchased Software [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 20,782 | 20,440 | |
Furniture and Fixtures [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 5,020 | 4,754 | |
Assets On Loan/Rental [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 8,596 | 5,229 | |
Capital Lease Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 1,321 | $ 1,321 |
GOODWILL AND OTHER INTANGIBLE52
GOODWILL AND OTHER INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Goodwill [Roll Forward] | ||
Balance at beginning of year | $ 49,619 | $ 50,738 |
Asset Impairment Charges | 0 | (2,800) |
Foreign currency translation adjustments | 0 | 40 |
Balance at end of period | $ 49,619 | $ 49,619 |
Technology, Trade Secrets, and Know-how [Member] | ||
Intangible Assets [Line Items] | ||
Intangible assets, estimated lives | 10 years | 10 years |
Technology, Trade Secrets, and Know-how [Member] | Business Acquisition - GenturaDx (British Virgin Islands) [Member] | ||
Intangible Assets [Line Items] | ||
Intangible assets, estimated lives | 11 years | |
Customer Lists and Contracts [Member] | ||
Intangible Assets [Line Items] | ||
Intangible assets, estimated lives | 11 years | 11 years |
Goodwill [Member] | ||
Goodwill [Roll Forward] | ||
Asset Impairment Charges | $ (1,159) |
GOODWILL AND OTHER INTANGIBLE53
GOODWILL AND OTHER INTANGIBLE ASSETS (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Intangible Assets [Line Items] | |||
Balance, beginning | $ 79,652 | $ 79,608 | |
Completion of In Process Research and Development Project | 0 | ||
Foreign currency translation adjustments | 44 | ||
Removal of fully amortized assets | (1,101) | ||
Balance, ending | 78,551 | 79,652 | $ 79,608 |
Less: accumulated amortization [Abstract] | |||
Accumulated amortization, beginning balance | (23,270) | (19,313) | |
Amortization expense | (3,900) | (3,913) | (4,099) |
Foreign currency translation adjustments | (44) | ||
Removal of amortization of fully amortized assets | 1,101 | ||
Accumulated amortization, ending balance | (26,069) | (23,270) | (19,313) |
Net balance | 52,482 | 56,382 | |
Estimated aggregate amortization expense for the next five years and thereafter [Abstract] | |||
2,016 | 7,110 | ||
2,017 | 6,154 | ||
2,018 | 5,964 | ||
2,019 | 5,964 | ||
2,020 | 5,964 | ||
Thereafter | 21,326 | ||
Total amortization of finite-lived intangibles | 52,482 | ||
In-process Research and Development [Member] | |||
Intangible Assets [Line Items] | |||
Balance, beginning | 40,100 | 40,100 | |
Completion of In Process Research and Development Project | (40,100) | ||
Foreign currency translation adjustments | 0 | ||
Removal of fully amortized assets | 0 | ||
Balance, ending | 0 | 40,100 | 40,100 |
Less: accumulated amortization [Abstract] | |||
Accumulated amortization, beginning balance | 0 | 0 | |
Amortization expense | 0 | 0 | |
Foreign currency translation adjustments | 0 | ||
Removal of amortization of fully amortized assets | 0 | ||
Accumulated amortization, ending balance | 0 | 0 | 0 |
Net balance | 0 | 40,100 | |
Technology, Trade Secrets, and Know-how [Member] | |||
Intangible Assets [Line Items] | |||
Balance, beginning | 29,704 | 29,676 | |
Completion of In Process Research and Development Project | 40,100 | ||
Foreign currency translation adjustments | 28 | ||
Removal of fully amortized assets | (702) | ||
Balance, ending | 69,102 | 29,704 | 29,676 |
Less: accumulated amortization [Abstract] | |||
Accumulated amortization, beginning balance | (19,325) | (16,272) | |
Amortization expense | (3,023) | (3,025) | |
Foreign currency translation adjustments | (28) | ||
Removal of amortization of fully amortized assets | 702 | ||
Accumulated amortization, ending balance | (21,646) | (19,325) | (16,272) |
Net balance | $ 47,456 | $ 10,379 | |
Weighted average life (in years) | 10 years | 10 years | |
Technology, Trade Secrets, and Know-how [Member] | Business Acquisition - GenturaDx (British Virgin Islands) [Member] | |||
Less: accumulated amortization [Abstract] | |||
Weighted average life (in years) | 11 years | ||
Customer Lists and Contracts [Member] | |||
Intangible Assets [Line Items] | |||
Balance, beginning | $ 7,958 | $ 7,952 | |
Completion of In Process Research and Development Project | 0 | ||
Foreign currency translation adjustments | 6 | ||
Removal of fully amortized assets | (161) | ||
Balance, ending | 7,797 | 7,958 | 7,952 |
Less: accumulated amortization [Abstract] | |||
Accumulated amortization, beginning balance | (3,085) | (2,326) | |
Amortization expense | (743) | (753) | |
Foreign currency translation adjustments | (6) | ||
Removal of amortization of fully amortized assets | 161 | ||
Accumulated amortization, ending balance | (3,667) | (3,085) | (2,326) |
Net balance | $ 4,130 | $ 4,873 | |
Weighted average life (in years) | 11 years | 11 years | |
Other Identifiable Intangible Assets [Member] | |||
Intangible Assets [Line Items] | |||
Balance, beginning | $ 1,890 | $ 1,880 | |
Completion of In Process Research and Development Project | 0 | ||
Foreign currency translation adjustments | 10 | ||
Removal of fully amortized assets | (238) | ||
Balance, ending | 1,652 | 1,890 | 1,880 |
Less: accumulated amortization [Abstract] | |||
Accumulated amortization, beginning balance | (860) | (715) | |
Amortization expense | (134) | (135) | |
Foreign currency translation adjustments | (10) | ||
Removal of amortization of fully amortized assets | 238 | ||
Accumulated amortization, ending balance | (756) | (860) | $ (715) |
Net balance | $ 896 | $ 1,030 | |
Weighted average life (in years) | 11 years | 11 years |
OTHER COMPREHENSIVE (LOSS) IN54
OTHER COMPREHENSIVE (LOSS) INCOME OTHER COMPREHENSIVE (LOSS) INCOME (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Balance at December 31, 2014 | $ (744) | ||
Other comprehensive loss before reclassifications | (552) | ||
Net current-period other comprehensive loss | (552) | $ (1,163) | $ (682) |
Balance at December 31, 2015 | (1,296) | (744) | |
Accumulated Translation Adjustment [Member] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Balance at December 31, 2014 | (727) | ||
Other comprehensive loss before reclassifications | (531) | ||
Net current-period other comprehensive loss | (531) | ||
Balance at December 31, 2015 | (1,258) | (727) | |
Available-for-sale Securities [Member] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Balance at December 31, 2014 | (17) | ||
Other comprehensive loss before reclassifications | (21) | ||
Net current-period other comprehensive loss | (21) | ||
Balance at December 31, 2015 | $ (38) | $ (17) |
OTHER COMPREHENSIVE (LOSS) IN55
OTHER COMPREHENSIVE (LOSS) INCOME OTHER COMPREHENSIVE (LOSS) INCOME (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Foreign currency translation adjustments, before tax | $ (531) | ||
Foreign currency translation adjustments, tax benefit | 0 | ||
Foreign currency translation adjustments, net of tax | (531) | ||
Unrealized gains on available-for-sale investments, before tax | (16) | ||
Unrealized gains on available-for-sale investments, tax benefit | (5) | ||
Unrealized gains on available-for-sale investments, net of tax | (21) | ||
Other Comprehensive loss, before tax | (547) | ||
Other Comprehensive loss, tax benefit | (5) | ||
Other Comprehensive loss, net of tax | $ (552) | $ (1,163) | $ (682) |
OTHER ASSETS (Details)
OTHER ASSETS (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2012 | |
Other Assets [Abstract] | ||||
Purchased technology rights (net of accumulated amortization) | $ 1,922,000 | $ 1,543,000 | ||
Cost-method investments | 1,000,000 | 1,000,000 | ||
Other | 931,000 | 642,000 | ||
Non-current other assets | 3,853,000 | 3,185,000 | ||
Accumulated amortization, purchased technology rights | 3,826,000 | 3,392,000 | ||
Amortization expense relating to acquired technology rights | $ 474,000 | $ 1,410,000 | ||
Amount of investments in a private company | $ 1,000,000 | |||
Significant influence percentage (in hundredths) | 20.00% | |||
Cost-method Investments, Realized Gain (Loss) | $ 5,400,000 | |||
Estimated future amortization expense [Abstract] | ||||
2,016 | $ 212,000 | |||
2,017 | 195,000 | |||
2,018 | 140,000 | |||
2,019 | 128,000 | |||
2,020 | 118,000 | |||
Thereafter | $ 1,129,000 |
ACCRUED LIABILITIES (Details)
ACCRUED LIABILITIES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Accrued Liabilities, Current [Abstract] | |||
Accrued Employee Benefits, Current | $ 10,946 | $ 9,960 | |
Accrued Income And Other Taxes | 1,261 | 870 | |
Other Accrued Liabilities, Current | 2,392 | 2,800 | |
Accrued Liabilities, Current | 15,152 | 14,118 | |
Accrued warranty costs [Roll Forward] | |||
Accrued warranty costs | 488 | 721 | $ 603 |
Warranty expenses | (859) | (914) | (1,150) |
Accrual for warranty costs | 924 | 681 | 1,268 |
Accrued warranty costs | $ 553 | $ 488 | $ 721 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Components of income tax expense (benefit) [Abstract] | |||
Domestic | $ 7,472,000 | $ 12,762,000 | $ 20,301,000 |
Foreign | 25,572,000 | 15,323,000 | (8,877,000) |
Income before income taxes | 33,044,000 | 28,085,000 | 11,424,000 |
Federal | 490,000 | 2,191,000 | 4,024,000 |
Foreign | 174,000 | (1,833,000) | 406,000 |
State | 58,000 | 305,000 | 720,000 |
Total current | 722,000 | 663,000 | 5,150,000 |
Deferred [Abstract] | |||
Federal | (13,000) | (2,471,000) | (381,000) |
Foreign | (4,422,000) | (10,329,000) | (1,000) |
State | (104,000) | 1,179,000 | (440,000) |
Total deferred | (4,539,000) | (11,621,000) | (822,000) |
Total provision (benefit) for income taxes | $ (3,817,000) | $ (10,958,000) | $ 4,328,000 |
Income tax rate reconciliation [Abstract] | |||
Statutory tax rate (in hundredths) | 35.00% | 35.00% | 35.00% |
State taxes, net of federal benefit (in hundredths) | (0.20%) | 4.90% | 0.30% |
Permanent items (in hundredths) | (0.60%) | (1.90%) | (4.60%) |
Effect of foreign operations (in hundredths) | (8.00%) | (3.00%) | 3.10% |
Research and incentive tax credit generated (in hundredths) | (3.00%) | (9.50%) | (43.00%) |
Valuation allowance (in hundredths) | (32.10%) | (39.50%) | 42.60% |
Income tax reserves (in hundredths) | (0.50%) | (0.40%) | 4.90% |
Deferred Charge (in hundredths) | 0.00% | (9.10%) | 0.00% |
Worthless stock deduction (in hundredths) | 0.00% | (6.20%) | 0.00% |
Nontaxable cancellation of debt (in hundredths) | (3.50%) | 0.00% | 0.00% |
Stock compensation deferred (in hundredths) | (0.00%) | (10.70%) | (0.00%) |
Other (in hundredths) | 0.10% | 1.40% | (0.40%) |
Effective tax rate, excluding amounts recorded for discrete events (in hundredths) | (11.60%) | (39.00%) | 37.90% |
Current deferred tax assets [Abstract] | |||
Accrued liabilities and other | $ 5,705,000 | $ 12,220,000 | |
Noncurrent deferred tax assets [Abstract] | |||
Net operating loss and credit carryforwards | 50,628,000 | 47,598,000 | |
Deferred revenue | 2,400,000 | 2,541,000 | |
Depreciation and amortization | 5,843,000 | 8,099,000 | |
Stock compensation | 6,591,000 | 5,231,000 | |
Gross noncurrent deferred tax assets | 71,167,000 | 75,689,000 | |
Valuation allowance | (14,867,000) | (25,012,000) | |
Net noncurrent deferred tax asset | 56,300,000 | 50,677,000 | |
Current deferred tax liabilities [Abstract] | |||
Accrued liabilities and other | (1,313,000) | (1,000,000) | |
Net current deferred tax asset | 0 | 12,203,000 | |
Noncurrent deferred tax liabilities [Abstract] | |||
Depreciation and amortization | (22,239,000) | (21,097,000) | |
Stock Compensation | 0 | (50,000) | |
Acquired intangibles | (927,000) | (927,000) | |
Total noncurrent deferred tax liabilities | 24,479,000 | 23,074,000 | |
Net deferred tax assets | 31,821,000 | 27,603,000 | |
Valuation Allowance [Line Items] | |||
Increase (Decrease) in valuation allowance | (10,100,000) | ||
Federal net operating losses carry-forwards | 71,200,000 | ||
Net operating loss carry-forwards, State and local | 49,200,000 | ||
Foreign non-capital income tax loss carry-forwards | 11,300,000 | ||
Deferred Tax Assets, Tax Credit Carryforwards, Foreign | $ 12,600,000 | ||
Tax Credit Carryforward, Expiration Dates | Dec. 31, 2018 | ||
Deferred Tax Assets, Tax Credit Carryforwards, Not Subject to Expiration | $ 3,300,000 | ||
Undistributed earnings of non-U.S. subsidiaries | 17,200,000 | 1,400,000 | $ 900,000 |
Unrecognized tax benefits that would impact effective tax rate | 2,200,000 | 2,300,000 | |
Tax related interest and penalties | 47,600 | 31,900 | |
Reconciliation of unrecognized tax benefits [Roll Forward] | |||
Balance, Beginning of period | 2,318,000 | 2,333,000 | |
Additions based on tax positions related to the current year | 168,000 | 156,000 | |
Additions for tax positions of prior years | 0 | 58,000 | |
Reductions for tax positions of prior years | (9,000) | (131,000) | |
Lapse of statute of limitations | (293,000) | (98,000) | |
Balance, End of period | 2,184,000 | $ 2,318,000 | $ 2,333,000 |
Stock-Based Compensation [Member] | |||
Valuation Allowance [Line Items] | |||
Federal net operating losses carry-forwards | 19,100,000 | ||
Domestic Country [Member] | |||
Valuation Allowance [Line Items] | |||
Amount of net operating loss acquired in business acquisition | 52,100,000 | ||
Deferred Tax Assets, Tax Credit Carryforwards | 11,000,000 | ||
Domestic Country [Member] | Stock-Based Compensation [Member] | |||
Valuation Allowance [Line Items] | |||
Deferred Tax Assets, Tax Credit Carryforwards | 8,200,000 | ||
Canada [Member] | |||
Valuation Allowance [Line Items] | |||
Deferred Tax Assets, Tax Credit Carryforwards, Foreign | 44,200,000 | ||
State and Local Jurisdiction [Member] | |||
Valuation Allowance [Line Items] | |||
Amount of net operating loss acquired in business acquisition | 49,200,000 | ||
Deferred Tax Assets, Tax Credit Carryforwards | 2,400,000 | ||
State and Local Jurisdiction [Member] | Business Acquisition - GenturaDx (British Virgin Islands) [Member] | |||
Valuation Allowance [Line Items] | |||
Deferred Tax Assets, Tax Credit Carryforwards | $ 1,100,000 |
NET INCOME PER SHARE (Details)
NET INCOME PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Numerator: | |||||||||||
Net income | $ 20,377 | $ 6,402 | $ 2,629 | $ 7,453 | $ 22,802 | $ 5,550 | $ 4,725 | $ 5,966 | $ 36,861 | $ 39,043 | $ 7,096 |
Denominator: | |||||||||||
Denominator for basic net income per share - weighted average common stock outstanding (in shares) | 42,091,000 | 41,558,000 | 40,799,000 | ||||||||
Effect of dilutive securities [Abstract] | |||||||||||
Stock options and awards (in shares) | 546,000 | 598,000 | 1,187,000 | ||||||||
Denominator for diluted net income per share - weighted average shares outstanding - diluted (in shares) | 42,637,000 | 42,156,000 | 41,986,000 | ||||||||
Basic net income per share (in dollars per share) | $ 0.48 | $ 0.15 | $ 0.06 | $ 0.18 | $ 0.55 | $ 0.13 | $ 0.11 | $ 0.14 | $ 0.88 | $ 0.94 | $ 0.17 |
Diluted net income per share (in dollars per share) | $ 0.47 | $ 0.15 | $ 0.06 | $ 0.18 | $ 0.54 | $ 0.13 | $ 0.11 | $ 0.14 | $ 0.86 | $ 0.93 | $ 0.17 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||
Anti-dilutive restricted stock awards, stock options | 1,252,000 | 442,000 | 381,000 |
STOCKHOLDERS' EQUITY, EMPLOYE60
STOCKHOLDERS' EQUITY, EMPLOYEE BENEFIT PLANS AND STOCK BASED COMPENSATION (Details) | 12 Months Ended | ||
Dec. 31, 2015USD ($)$ / sharesshares | Dec. 31, 2014shares | Dec. 31, 2013shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Board of Directors has the authority to issue preferred stock (in shares) | 5,000,000 | 5,000,000 | |
Preferred Stock, Shares Issued | 0 | 0 | |
Preferred Stock, Shares Outstanding | 0 | 0 | |
Number of stock-based employee compensation plans | 1 | ||
Vesting period of options, RSAs, and RSUs, minimum (in years) | 3 | ||
Vesting period of options, RSAs, and RSUs, maximum (in years) | 5 | ||
Number of shares authorized for future issuance (in shares) | 5,284,315 | ||
Long Term Incentive Plan 2013 [Member] | Chief Financial Officer [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Actual maximum number of RSU shares granted (in shares) | 17,931 | ||
Value of unvested RSUs granted | $ | $ 300,000 | ||
Long Term Incentive Plan 2013 [Member] | Chief Executive Officer [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Actual maximum number of RSU shares granted (in shares) | 71,727 | ||
Value of unvested RSUs granted | $ | $ 1,200,000 | ||
Long Term Incentive Plan 2013 [Member] | Minimum Threshold [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Income from operations targets (in dollars per share) | $ / shares | $ 1.06 | ||
Long Term Incentive Plan 2013 [Member] | Target [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Income from operations targets (in dollars per share) | $ / shares | 1.18 | ||
Long Term Incentive Plan 2013 [Member] | Maximum Goal [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Income from operations targets (in dollars per share) | $ / shares | $ 1.36 | ||
Long Term Incentive Plan 2012 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weight of trading price of Luminex Common Stock in performance goals (in hundredths) | 50.00% | ||
Weight of Luminex's total income from operations in performance goals (in hundredths) | 50.00% | ||
Long Term Incentive Plan 2012 [Member] | Chief Financial Officer [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Actual maximum number of RSU shares granted (in shares) | 24,608 | ||
Value of unvested RSUs granted | $ | $ 550,000 | ||
Long Term Incentive Plan 2012 [Member] | Chief Executive Officer [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Actual maximum number of RSU shares granted (in shares) | 98,434 | ||
Value of unvested RSUs granted | $ | $ 2,200,000 | ||
Long Term Incentive Plan 2012 [Member] | Minimum Threshold [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Trading price targets (in dollars per share) | $ / shares | $ 29.29 | ||
Income From Operations Targets (in dollars) | $ | $ 58,663,000 | ||
Long Term Incentive Plan 2012 [Member] | Target [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Trading price targets (in dollars per share) | $ / shares | $ 32.54 | ||
Income From Operations Targets (in dollars) | $ | $ 67,286,000 | ||
Long Term Incentive Plan 2012 [Member] | Maximum Goal [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Trading price targets (in dollars per share) | $ / shares | $ 39.75 | ||
Income From Operations Targets (in dollars) | $ | $ 85,831,000 | ||
Equity Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares authorized for future issuance (in shares) | 5,044,851 | ||
Employee Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Maximum percentage of contribution to ESPP | 15.00% | ||
Discount Rate of Common Stock for ESPP | 15.00% | ||
Number of shares authorized for future issuance (in shares) | 239,464 | ||
Number of shares eligible for purchase | 239,000 | ||
Employee Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expiration date after grant date, minimum (in years) | 5 | ||
Expiration date after date of grant, average (in years) | 7 | ||
Expiration date after date of grant, maximum (in years) | 10 |
STOCKHOLDERS' EQUITY, EMPLOYE61
STOCKHOLDERS' EQUITY, EMPLOYEE BENEFIT PLANS AND STOCK-BASED COMPENSATION (Details 2) - USD ($) | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs, Capitalized Amount | $ 0 | $ 0 | $ 0 | |
Fair value assumptions used [Abstract] | ||||
Dividend yield (in hundredths) | 0.00% | 0.00% | 0.00% | |
Expected volatility (in hundredths) | 50.00% | 50.00% | 50.00% | |
Risk-free rate of return (in hundredths) | 1.60% | 1.80% | 1.20% | |
Weighted average fair value at grant date (in dollars per share) | $ 6.73 | $ 10.75 | $ 8.79 | |
Stock options, additional disclosures [Abstract] | ||||
Total intrinsic value of stock options exercised | $ 800,000 | $ 2,800,000 | $ 8,700,000 | |
Total fair value of stock options vested | $ 2,500,000 | $ 2,400,000 | $ 2,500,000 | |
Unrecognized compensation costs, weighted-average period of recognition | 3 years 29 days | |||
Percentage of employer matching contribution (in hundredths) | 50.00% | 50.00% | 50.00% | |
10 year contractual term option [Member] | ||||
Fair value assumptions used [Abstract] | ||||
Expected life | 7 years | 7 years | 7 years | |
7 year contractual term option [Member] | ||||
Fair value assumptions used [Abstract] | ||||
Expected life | 4 years 10 months 15 days | |||
Restricted Stock Units (RSUs) [Member] | ||||
Stock options, outstanding [Roll Forward] | ||||
Vested and expected to vest, end of period (in shares) | 484,000 | |||
Exercisable, ending balance (in shares) | 285,000 | |||
Weighted-average remaining contractual life, outstanding, end of period | 1 year 2 months 9 days | |||
Weighted-average remaining contractual life, vested and expected to vest, end of period | 1 year 2 months 1 day | |||
Weighted-average remaining contractual life, exercisable, end of period | 0 days | |||
Aggregate intrinsic value, outstanding, end of period | $ 10,720,000 | |||
Aggregate intrinsic value, vested and expected to vest, end of period | 4,246,000 | |||
Aggregate intrinsic value, exercisable, end of period | $ 6,098,000 | |||
Equity instruments other than options, nonvested [Roll Forward] | ||||
Non-vested, beginning of period (in shares) | 658,000 | 833,000 | 875,000 | |
Granted (in shares) | 121,802 | 139,417 | 199,051 | |
Vested (in shares) | (54,000) | (74,000) | (79,000) | |
Cancelled or expired (in shares) | (224,000) | (241,000) | (162,000) | |
Non-vested, end of period (in shares) | 501,000 | 658,000 | 833,000 | |
Stock options, additional disclosures [Abstract] | ||||
Grant-date fair value, minimum (in dollars per share) | $ 15.93 | $ 17.91 | $ 16.73 | |
Grant-date fair value, maximum (in dollars per share) | $ 16.72 | $ 20.14 | $ 20.51 | |
Restricted Shares [Member] | ||||
Stock options, additional disclosures [Abstract] | ||||
Total unrecognized compensation costs | $ 18,500,000 | |||
Unrecognized compensation costs, weighted-average period of recognition | 2 years 2 months 16 days | |||
Total fair value of restricted shares vested | $ 8,500,000 | $ 6,500,000 | $ 7,200,000 | |
Compensation costs charged to expense | $ 8,100,000 | $ 8,100,000 | $ 7,500,000 | |
Restricted Stock [Member] | ||||
Fair value assumptions used [Abstract] | ||||
Weighted average fair value at grant date (in dollars per share) | $ 18.66 | $ 19.63 | $ 18.62 | $ 19.32 |
Equity instruments other than options, nonvested [Roll Forward] | ||||
Non-vested, beginning of period (in shares) | 1,098,000 | 826,000 | 818,000 | |
Granted (in shares) | 276,271 | 637,184 | 353,537 | |
Vested (in shares) | (349,000) | (286,000) | (267,000) | |
Cancelled or expired (in shares) | (190,000) | (78,000) | (79,000) | |
Non-vested, end of period (in shares) | 836,000 | 1,098,000 | 826,000 | |
Granted, weighted-average grant-date fair value (in dollars per share) | $ 15.95 | $ 20.21 | $ 17.28 | |
Vested, weighted-average grant-date fair value (in dollars per share) | 19.30 | 18.09 | 18.83 | |
Cancelled or expired, weighted-average grant-date fair value (in dollars per share) | 19.19 | 19.27 | 19.15 | |
Stock options, additional disclosures [Abstract] | ||||
Grant-date fair value, minimum (in dollars per share) | 15.93 | 16.82 | 16.18 | |
Grant-date fair value, maximum (in dollars per share) | $ 16.72 | $ 21.10 | $ 18.11 | |
Stock Options [Member] | ||||
Stock options, outstanding [Roll Forward] | ||||
Options outstanding, beginning of period (in shares) | 825,000 | 967,000 | 1,676,000 | |
Granted (in shares) | 1,023,000 | 250,000 | 159,000 | |
Exercised (in shares) | (129,000) | (348,000) | (835,000) | |
Cancelled or expired (in shares) | (27,000) | (44,000) | (33,000) | |
Options outstanding, end of period (in shares) | 1,692,000 | 825,000 | 967,000 | |
Vested and expected to vest, end of period (in shares) | 1,622,000 | |||
Exercisable, ending balance (in shares) | 464,000 | |||
Weighted-average exercise price, end of period (in dollars per share) | $ 17.47 | $ 18.84 | $ 15.35 | $ 12.13 |
Weighted-average exercise price, granted (in dollars per share) | 15.98 | 21.10 | 17.24 | |
Weighted average exercise price, exercised (in dollars per share) | 14.59 | 10.59 | 9.06 | |
Weighted-average exercise price, cancelled or expired (in dollars per share) | 16.67 | $ 20.17 | $ 19.80 | |
Weighted-average exercise price, vested and expected to vest, end of period (in dollars per share) | 17.50 | |||
Weighted-average exercise price, exercisable, end of period (in dollars per share) | $ 19.27 | |||
Weighted-average remaining contractual life, outstanding, end of period | 5 years 6 months 29 days | |||
Weighted-average remaining contractual life, vested and expected to vest, end of period | 5 years 6 months 22 days | |||
Weighted-average remaining contractual life, exercisable, end of period | 3 years 11 months 27 days | |||
Aggregate intrinsic value, outstanding, end of period | $ 6,775,000 | |||
Aggregate intrinsic value, vested and expected to vest, end of period | 6,449,000 | |||
Aggregate intrinsic value, exercisable, end of period | 1,129,000 | |||
Stock options, additional disclosures [Abstract] | ||||
Total unrecognized compensation costs | 7,500,000 | |||
Proceeds from exercise of stock options | $ 1,900,000 | $ 3,700,000 | $ 7,600,000 | |
Employee Stock [Member] | ||||
Fair value assumptions used [Abstract] | ||||
Dividend yield (in hundredths) | 0.00% | |||
Expected volatility (in hundredths) | 47.00% | |||
Stock options, additional disclosures [Abstract] | ||||
Compensation costs charged to expense | $ 400,000 | $ 400,000 | $ 400,000 | |
Minimum [Member] | Employee Stock [Member] | ||||
Fair value assumptions used [Abstract] | ||||
Risk-free rate of return (in hundredths) | 0.07% | |||
Expected life | 4 months 24 days | |||
Maximum [Member] | Employee Stock [Member] | ||||
Fair value assumptions used [Abstract] | ||||
Risk-free rate of return (in hundredths) | 0.08% | |||
Expected life | 6 months |
STOCKHOLDERS' EQUITY, EMPLOYE62
STOCKHOLDERS' EQUITY, EMPLOYEE BENEFIT PLANS AND STOCK-BASED COMPENSATION (Details 3) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Maximum individual contribution to 401(k) plan per year | $ 18,000 | $ 17,500 | $ 17,500 |
Percentage of employer matching contribution (in hundredths) | 50.00% | 50.00% | 50.00% |
Employer's contributions to 401(k) and deferred profit sharing plan | $ 2,800,000 | $ 2,500,000 | $ 2,400,000 |
Fair value assumptions used [Abstract] | |||
Risk-free rate of return (in hundredths) | 1.60% | 1.80% | 1.20% |
Expected volatility (in hundredths) | 50.00% | 50.00% | 50.00% |
Dividend yield (in hundredths) | 0.00% | 0.00% | 0.00% |
Preferred Stock, Shares Issued | 0 | 0 | |
Preferred Stock, Shares Outstanding | 0 | 0 | |
Cost of Sales [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation costs | $ 975,000 | $ 981,000 | $ 856,000 |
Research and Development Expense [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation costs | 2,422,000 | 2,573,000 | 2,553,000 |
General and Administrative Expense [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation costs | 7,458,000 | 5,994,000 | 5,812,000 |
Reflected in Net Income (Loss) [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation costs | 10,855,000 | 9,548,000 | 9,221,000 |
Employee Stock [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation costs | $ 400,000 | $ 400,000 | $ 400,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 500,000 | ||
Percentage Of Purchase Price Of Common Stock Under ESPP | 85.00% | ||
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 260,536 | 181,401 | 106,522 |
Fair value assumptions used [Abstract] | |||
Expected volatility (in hundredths) | 47.00% | ||
Dividend yield (in hundredths) | 0.00% | ||
Minimum [Member] | Employee Stock [Member] | |||
Fair value assumptions used [Abstract] | |||
Risk-free rate of return (in hundredths) | 0.07% | ||
Expected life | 4 months 24 days | ||
Maximum [Member] | Employee Stock [Member] | |||
Fair value assumptions used [Abstract] | |||
Risk-free rate of return (in hundredths) | 0.08% | ||
Expected life | 6 months |
STOCKHOLDERS' EQUITY, EMPLOYE63
STOCKHOLDERS' EQUITY, EMPLOYEE BENEFIT PLANS AND STOCK-BASED COMPENSATION (Details 4) - shares | Dec. 31, 2015 | Dec. 31, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options/ warrants outstanding (in shares) | 2,200,803 | |
Shares available for future issuance (in shares) | 5,284,315 | |
Total shares reserved (in shares) | 7,485,118 | 4,790,386 |
2006 Equity Incentive Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options/ warrants outstanding (in shares) | 2,200,803 | |
Shares available for future issuance (in shares) | 5,044,851 | |
Total shares reserved (in shares) | 7,245,654 | |
Employee Stock Purchase Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options/ warrants outstanding (in shares) | 0 | |
Shares available for future issuance (in shares) | 239,464 | |
Total shares reserved (in shares) | 239,464 |
COMMITMENTS AND CONTINGENCIES64
COMMITMENTS AND CONTINGENCIES (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2013USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | ||||||
Rental and lease expense | $ 4,700 | $ 4,500 | $ 5,100 | |||
Lease periods maximum (in years) | 10 | |||||
Operating leases future minimum payments due [Abstract] | ||||||
2,016 | $ 3,837 | $ 3,837 | ||||
2,017 | 3,632 | 3,632 | ||||
2,018 | 3,524 | 3,524 | ||||
2,019 | 3,411 | 3,411 | ||||
2,020 | 1,727 | 1,727 | ||||
Thereafter | 2,842 | 2,842 | ||||
Total | 18,973 | 18,973 | ||||
Non-cancelable purchase commitments | 21,000 | |||||
Unrecorded Unconditional Purchase Obligation, Purchases | 1,200 | 2,400 | 1,800 | |||
Settlement of litigation | $ 2,000 | $ 7,100 | $ (5,300) | $ 0 | $ 0 | |
Distribution Agreement Settlement | $ 7,000 |
GEOGRAPHIC INFORMATION (Details
GEOGRAPHIC INFORMATION (Details 2) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenues from External Customers and Property and Equipment, net [Line Items] | |||||||||||
Revenues from external customers | $ 60,449,000 | $ 60,601,000 | $ 58,917,000 | $ 57,741,000 | $ 58,106,000 | $ 56,684,000 | $ 55,632,000 | $ 56,561,000 | $ 237,708,000 | $ 226,983,000 | $ 213,423,000 |
Property and equipment, net | 47,796,000 | 39,945,000 | 47,796,000 | 39,945,000 | 32,793,000 | ||||||
Aggregate foreign currency transaction losses | 841,000 | 16,000 | 385,000 | ||||||||
Domestic Country [Member] | |||||||||||
Revenues from External Customers and Property and Equipment, net [Line Items] | |||||||||||
Revenues from external customers | 200,427,000 | 187,945,000 | 178,276,000 | ||||||||
Property and equipment, net | 43,910,000 | 36,826,000 | 43,910,000 | 36,826,000 | 30,847,000 | ||||||
Europe [Member] | |||||||||||
Revenues from External Customers and Property and Equipment, net [Line Items] | |||||||||||
Revenues from external customers | 17,034,000 | 17,819,000 | 16,690,000 | ||||||||
Property and equipment, net | 1,358,000 | 1,093,000 | 1,358,000 | 1,093,000 | 1,013,000 | ||||||
Asia [Member] | |||||||||||
Revenues from External Customers and Property and Equipment, net [Line Items] | |||||||||||
Revenues from external customers | 12,794,000 | 14,863,000 | 12,287,000 | ||||||||
Property and equipment, net | 429,000 | 261,000 | 429,000 | 261,000 | 234,000 | ||||||
Canada [Member] | |||||||||||
Revenues from External Customers and Property and Equipment, net [Line Items] | |||||||||||
Revenues from external customers | 3,239,000 | 3,664,000 | 3,025,000 | ||||||||
Property and equipment, net | 2,085,000 | 1,746,000 | 2,085,000 | 1,746,000 | 640,000 | ||||||
Other Countries [Member] | |||||||||||
Revenues from External Customers and Property and Equipment, net [Line Items] | |||||||||||
Revenues from external customers | 4,214,000 | 2,692,000 | 3,145,000 | ||||||||
Property and equipment, net | $ 14,000 | $ 19,000 | $ 14,000 | $ 19,000 | $ 59,000 |
SELECTED QUARTERLY RESULTS (Det
SELECTED QUARTERLY RESULTS (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenue | $ 60,449 | $ 60,601 | $ 58,917 | $ 57,741 | $ 58,106 | $ 56,684 | $ 55,632 | $ 56,561 | $ 237,708 | $ 226,983 | $ 213,423 |
Gross Profit | 43,406 | 41,812 | 43,270 | 40,219 | 42,741 | 39,010 | 38,147 | 39,954 | 168,707 | 159,852 | 143,626 |
Income from operations | 7,999 | 9,706 | 9,959 | 9,693 | 10,185 | 4,996 | 4,771 | 8,185 | 37,357 | 28,137 | 4,767 |
Net income | $ 20,377 | $ 6,402 | $ 2,629 | $ 7,453 | $ 22,802 | $ 5,550 | $ 4,725 | $ 5,966 | $ 36,861 | $ 39,043 | $ 7,096 |
Net income per share, basic (in dollars per share) | $ 0.48 | $ 0.15 | $ 0.06 | $ 0.18 | $ 0.55 | $ 0.13 | $ 0.11 | $ 0.14 | $ 0.88 | $ 0.94 | $ 0.17 |
Net income per share, diluted (in dollars per share) | $ 0.47 | $ 0.15 | $ 0.06 | $ 0.18 | $ 0.54 | $ 0.13 | $ 0.11 | $ 0.14 | $ 0.86 | $ 0.93 | $ 0.17 |