Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2016 | Oct. 31, 2016 | |
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 | |
Entity Common Stock, Shares Outstanding | 43,584,558 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2016 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 84,145 | $ 128,546 |
Short-term Investments | 0 | 11,988 |
Accounts receivable, net | 29,962 | 28,853 |
Inventories, net | 41,455 | 31,252 |
Prepaids and other | 9,294 | 8,887 |
Total current assets | 164,856 | 209,526 |
Property and equipment, net | 55,461 | 47,796 |
Intangible assets, net | 88,370 | 52,482 |
Deferred income taxes | 42,208 | 31,821 |
Long-term investments | 0 | 7,459 |
Goodwill | 83,898 | 49,619 |
Other | 6,335 | 3,853 |
Total assets | 441,128 | 402,556 |
Current liabilities: | ||
Accounts payable | 9,881 | 7,868 |
Accrued liabilities | 16,115 | 15,152 |
Deferred revenue | 5,601 | 4,212 |
Total current liabilities | 31,597 | 27,232 |
Deferred revenue | 1,864 | 2,064 |
Other | 4,902 | 4,724 |
Total liabilities | 38,363 | 34,020 |
Stockholders' equity: | ||
Common stock, $.001 par value, 200,000,000 shares authorized; issued and outstanding: 42,708,733 shares at September 30, 2016; 42,314,581 shares at December 31, 2015 | 43 | 42 |
Preferred stock, $.001 par value, 5,000,000 shares authorized; no shares issued and outstanding | 0 | 0 |
Additional paid-in capital | 331,474 | 321,657 |
Accumulated other comprehensive loss | (966) | (1,296) |
Retained earnings | 72,214 | 48,133 |
Total stockholders' equity | 402,765 | 368,536 |
Total liabilities and stockholders' equity | $ 441,128 | $ 402,556 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS Parenthetical - $ / shares | Sep. 30, 2016 | Dec. 31, 2015 |
Stockholders' equity: | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 200,000,000 | 200,000,000 |
Common stock, issued (in shares) | 42,708,733 | 42,314,581 |
Common stock, outstanding (in shares) | 42,708,733 | 42,314,581 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Preferred stock, outstanding (in shares) | 0 | 0 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Income Statement [Abstract] | ||||
Revenue | $ 71,221 | $ 60,601 | $ 198,368 | $ 177,259 |
Cost of revenue | 25,556 | 18,789 | 62,976 | 51,958 |
Gross profit | 45,665 | 41,812 | 135,392 | 125,301 |
Operating expenses: | ||||
Research and development | 12,762 | 10,093 | 35,324 | 31,748 |
Selling, general and administrative | 26,393 | 21,236 | 70,942 | 61,740 |
Amortization of acquired intangible assets | 2,482 | 777 | 5,797 | 2,455 |
Total operating expenses | 41,637 | 32,106 | 112,063 | 95,943 |
Income from operations | 4,028 | 9,706 | 23,329 | 29,358 |
Other income (expense), net | 30 | 13 | (1,395) | 964 |
Settlement of litigation | 0 | 0 | 0 | (7,300) |
Income before income taxes | 4,058 | 9,719 | 21,934 | 23,022 |
Income taxes | (1,307) | (3,317) | (4,760) | (6,538) |
Net income | 2,751 | 6,402 | 17,174 | 16,484 |
Other comprehensive income: | ||||
Foreign currency translation adjustments | 113 | (20) | 292 | (375) |
Unrealized gain on available-for-sale securities, net of tax | 0 | 2 | 38 | 24 |
Other comprehensive income (loss) | 113 | (18) | 330 | (351) |
Comprehensive income | $ 2,864 | $ 6,384 | $ 17,504 | $ 16,133 |
Net income per share, basic | $ 0.06 | $ 0.15 | $ 0.40 | $ 0.39 |
Shares used in computing net income per share, basic | 42,683 | 42,152 | 42,522 | 42,041 |
Net income per share, diluted | $ 0.06 | $ 0.15 | $ 0.40 | $ 0.39 |
Shares used in computing net income per share, diluted | 43,136 | 42,556 | 42,929 | 42,354 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Net income | $ 2,751 | $ 6,402 | $ 17,174 | $ 16,484 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Depreciation and amortization | 5,913 | 3,411 | 14,401 | 9,733 |
Stock-based compensation | 3,526 | 3,099 | 8,181 | 7,768 |
Deferred income tax expense | 1,540 | 176 | 4,471 | 6,207 |
Excess income tax expense from employee stock-based awards | 0 | 14 | 0 | 1,005 |
Loss (gain) on sale or disposal of assets | 87 | (62) | 128 | (743) |
Other | (799) | (25) | (870) | (128) |
Changes in operating assets and liabilities: | ||||
Accounts receivable, net | (3,118) | (3,985) | 3,555 | 2,101 |
Inventories, net | (2,125) | 3,364 | (6,165) | 7,414 |
Other assets | (902) | 764 | (230) | (1,629) |
Accounts payable | (1,674) | 1,238 | 1,050 | (2,536) |
Accrued liabilities | (428) | (3,452) | (6,602) | (1,485) |
Deferred revenue | 112 | (36) | 733 | (212) |
Net cash provided by operating activities | 4,883 | 10,908 | 35,826 | 43,979 |
Cash flows from investing activities: | ||||
Sales and maturities of available-for-sale securities | 0 | 0 | 19,491 | 0 |
Purchase of property and equipment | (2,675) | (2,731) | (8,394) | (15,299) |
Proceeds from sale of assets | 42 | 0 | 45 | 893 |
Business acquisition consideration, net of cash acquired | (1,196) | 0 | (68,098) | 0 |
Purchase of cost method investment | (500) | 0 | (500) | 0 |
Acquired technology rights | 0 | (650) | (200) | (852) |
Net cash used in investing activities | (4,329) | (3,381) | (57,656) | (15,258) |
Cash flows from financing activities: | ||||
Payments on debt | 0 | 0 | (25,000) | 0 |
Proceeds from issuance of common stock | 1,799 | 977 | 3,561 | 1,690 |
Shares surrendered for tax withholding | (13) | (14) | (1,497) | (1,593) |
Excess income tax expense from employee stock-based awards | 0 | (14) | 0 | (1,005) |
Net cash provided by (used in) financing activities | 1,786 | 949 | (22,936) | (908) |
Effect of foreign currency exchange rate on cash | 87 | 13 | 365 | 46 |
Change in cash and cash equivalents | 2,427 | 8,489 | (44,401) | 27,859 |
Cash and cash equivalents, beginning of period | 81,718 | 111,064 | 128,546 | 91,694 |
Cash and cash equivalents, end of period | $ 84,145 | $ 119,553 | $ 84,145 | $ 119,553 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 9 Months Ended |
Sep. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | NOTE 1 — BASIS OF PRESENTATION The accompanying unaudited condensed consolidated financial statements have been prepared by Luminex Corporation (the Company or Luminex) in accordance with United States generally accepted accounting principles (U.S. GAAP) for interim financial information and the rules and regulations of the Securities and Exchange Commission (SEC). Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. In the opinion of management, all adjustments (consisting of normal recurring entries) considered necessary for a fair presentation have been included. Operating results for the three and nine months ended September 30, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016 . These financial statements should be read in conjunction with the financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015 (the 2015 10-K). |
BUSINESS COMBINATIONS
BUSINESS COMBINATIONS | 9 Months Ended |
Sep. 30, 2016 | |
Business Combinations [Abstract] | |
Business Combination Disclosure [Text Block] | NOTE 2 — BUSINESS COMBINATIONS On June 30, 2016, the Company completed its acquisition (the Acquisition) of 100% of the outstanding shares of Nanosphere, Inc. (Nanosphere), which was a publicly-held molecular diagnostic company that was founded in 1999 and based in Northbrook, Illinois. On May 15, 2016, the Company, Nanosphere and Commodore Acquisition, Inc., a Delaware corporation and wholly-owned subsidiary of the Company (Purchaser) entered into an Agreement and Plan of Merger (as amended, the Merger Agreement). In accordance with the terms of the Merger Agreement, on June 2, 2016, Purchaser commenced a cash tender offer (the Tender Offer) for all of the outstanding shares of Nanosphere’s common stock, par value $0.01 per share (the Shares), for $1.70 per share, net to the seller in cash, without interest and less any required withholding taxes, upon the terms and conditions set forth in the Offer to Purchase dated June 2, 2016, as amended or supplemented from time to time, and in the related Letter of Transmittal. The Tender Offer expired at 12:00 midnight Eastern Daylight Time, at the end of June 29, 2016, and was not extended. Upon the completion of the Tender Offer, the Company, through Purchaser, paid $1.70 for each Share validly tendered and not withdrawn. Following the consummation of the Tender Offer, the Company completed the Acquisition by consummating the merger of Purchaser with and into Nanosphere, pursuant to which, any Shares not purchased in the Tender Offer were automatically converted into the right to receive $1.70 per Share. The aggregate consideration paid to Nanosphere stockholders required to acquire all outstanding Shares pursuant to the Tender Offer and the merger was approximately $88.5 million , which was funded from cash on hand. Pursuant to the terms of the Merger Agreement, Nanosphere agreed to cancel all outstanding and exercisable Nanosphere stock options and replace each such stock option with the right to receive a cash payment equal to the number of shares subject to such option multiplied by the difference between $1.70 and the applicable exercise price of the respective options. Nanosphere also agreed to cancel all of its outstanding restricted stock and convert such restricted stock into the right to receive a cash payment equal to the number of shares of restricted stock multiplied by $1.70 . The Company paid $1.4 million in aggregate consideration of the cancelled Nanosphere options and outstanding restricted stock. Additionally, for each Nanosphere warrant holder, the Company agreed to issue replacement warrants that are exercisable for an amount in cash equal to the product of the number of shares of stock represented by the replacement warrant and the difference between $1.70 and the per share price of the replacement warrant. The Company purchased 1.5 million Nanosphere warrants outstanding for an additional $2.5 million in consideration to the Nanosphere warrant holders. The Acquisition was undertaken to expand the Company's access to the high-growth molecular microbiology market and to Nanosphere's portfolio of molecular testing solutions. Nanosphere delivers proprietary diagnostic tools that enable detection of respiratory, gastroenteric and bloodstream infections. Nanosphere shares ceased trading on the Nasdaq Capital Market as of the close of business on June 30, 2016. The results of operations for Nanosphere have been included in the Company’s consolidated financial statements beginning July 1, 2016. Immediately subsequent to the Acquisition, on June 30, 2016, the Company retired approximately $25.4 million of Nanosphere's debt, including approximately $391,000 of accrued interest, by using the Company's existing cash reserves, including $25.6 million of cash acquired in the Acquisition. As part of this debt retirement, we incurred $1.5 million of related fees which were expensed as part of the Company's second quarter 2016 results. The Acquisition has been accounted for as a business combination in accordance with U.S. GAAP and, as such, the assets acquired and liabilities assumed have been recorded at their respective fair values. The determination of fair value for the identifiable tangible and intangible assets acquired and liabilities assumed requires extensive use of estimates and judgments. Significant estimates and assumptions include, but are not limited to, Level 3 measurements estimating future cash flows and determining the appropriate discount rate. The following table summarizes the estimated fair values of Nanosphere’s assets acquired and liabilities assumed at June 30, 2016 (in thousands): Net tangible assets assumed as of June 30, 2016 $ 34,387 Intangible assets subject to amortization 41,685 Long-term debt and accrued interest (25,391 ) Deferred tax assets, net of deferred tax liabilities 7,449 Goodwill 34,279 Total purchase price 92,409 Less cash and cash equivalents acquired (24,311 ) Net cash paid for business acquisition $ 68,098 The Company is in the process of finalizing third-party valuations of certain intangible assets and finalizing the calculations of the deferred tax liabilities related to Nanosphere; thus the provisional measurement of intangible assets, deferred tax liabilities and goodwill are subject to change. If information that existed prior to June 30, 2016 becomes available which would indicate adjustments are required to the purchase price allocation, such adjustments will be included in the purchase price allocations through revisions to the net tangible assets assumed, fair values of the intangible assets, deferred tax assets and liabilities and resulting goodwill recorded. Acquired finished goods and work-in-process inventory was valued at its estimated selling price less the sum of the costs of sales efforts and a reasonable profit allowance for the Company's selling effort and, with respect to work-in-process inventory, estimated costs to complete. This resulted in a fair value adjustment that increased finished goods inventory by approximately $0.5 million , which increased cost of goods sold in the quarter ending September 30, 2016 as these inventory items were sold. The Acquisition contributed $7.4 million of revenue and net losses of $6.2 million , during the three months ended September 30, 2016. Unaudited Pro forma Financial Information Nanosphere's results of operations have been included in the Company's financial statements for the three months ended September 30, 2016 , following the Acquisition on June 30, 2016. The unaudited pro forma financial information set forth below assumes that Nanosphere had been acquired at the beginning of January 1, 2015, and includes the effect of estimated amortization of acquired identifiable intangible assets, removal of interest expense on Nanosphere’s debt extinguished at the date of the Acquisition, and removal of Acquisition costs and the impact of purchase accounting adjustments, tax and inventory valuation adjustments. This unaudited pro forma financial information is presented for informational purposes only and is not necessarily indicative of the results of operations that actually would have resulted had the Acquisition been in effect at the beginning of the periods presented. In addition, the unaudited pro forma financial information is not intended to be a projection of future results and does not reflect any operating efficiencies or cost savings that might be achievable. Nine Months Ended September 30, 2016 2015 (unaudited) (in thousands) Revenue $ 212,320 $ 191,483 Income from operations 12,814 4,060 Net income (loss) 10,557 (2,792 ) Net income (loss) per share, basic 0.25 (0.07 ) Shares used in computing net income (loss) per share, basic 42,522 42,041 Net income (loss) per share, diluted 0.25 (0.07 ) Shares used in computing net income (loss) per share, diluted 42,929 42,354 |
INVESTMENTS
INVESTMENTS | 9 Months Ended |
Sep. 30, 2016 | |
Investments [Abstract] | |
INVESTMENTS | NOTE 3 — INVESTMENTS Marketable Securities The Company determines the appropriate classification of its investments in debt and equity securities at the time of purchase and re-evaluates 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 the 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. As of September 30, 2016 and December 31, 2015 , all of the Company’s marketable securities were classified as available-for-sale. Marketable securities are recorded as either short-term or long-term on the balance sheet based on the contractual maturity date. The fair value of all securities is determined by quoted market prices, market interest rate inputs, or other than quoted prices that are observable either directly or indirectly (as of the end of the reporting period). Declines in fair value below the Company’s carrying value deemed to be other than temporary are charged against net earnings. As of September 30, 2016 , the Company had no short or long term investments, since those funds were used to pay for the Acquisition. Available-for-sale securities consisted of the following as of September 30, 2016 (in thousands): Amortized Cost Gains in Accumulated Other Comprehensive Income Losses in Accumulated Other Comprehensive Income Estimated Fair Value Current: Cash equivalents $ 701 $ — $ 701 Government sponsored debt securities — — — — Non-government sponsored debt securities — — — — Total current securities 701 — — 701 Noncurrent: Government sponsored debt securities — — — — Non-government sponsored debt securities — — — — Total noncurrent securities — — — — Total available-for-sale securities $ 701 $ — $ — $ 701 Available-for-sale securities consisted of the following as of December 31, 2015 (in thousands): Amortized Cost Gains in Accumulated Other Comprehensive Income Losses in Accumulated Other Comprehensive Income Estimated Fair Value Current: Cash equivalents $ 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 Proceeds from the sales of available-for-sale securities during the three and nine months ended September 30, 2016 totaled zero and $19.5 million , respectively, and these proceeds were used to partially fund the Acquisition. There were no proceeds from the sales of available-for-sale securities for the three and nine ended September 30, 2015 . Realized gains and losses on sales of investments are determined using the specific identification method. Realized gains and losses are included in Other income, net in the Consolidated Statements of Comprehensive Income. All of the Company's available-for-sale securities with gross unrealized holding losses as of September 30, 2016 and December 31, 2015 had been in a loss position for less than 12 months. The estimated fair value of available-for-sale debt securities as of September 30, 2016 and December 31, 2015 , by contractual maturity, was as follows (in thousands): Estimated Fair Value September 30, 2016 December 31, 2015 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. Non-Marketable Securities and Other-Than-Temporary Impairment In the third quarter of 2016, the Company made a $0.5 million minority interest investment in a private company based in the U.S. that is focused on development of next generation technologies. 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 since the Company owns less than 20% of the voting equity in the investee and the investee is not publicly traded. Although we may invest further in this entity over the course of the next several quarters, we do not anticipate our ownership interest to exceed 20% in the short term. 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 since the Company owns less than 20% of the voting equity in the investee 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. The Company realized a gain of $5.4 million on the sale of this minority interest investment in the third quarter of 2013 and an additional gain of $0.9 million in the first quarter of 2015 related to the settlement of escrowed funds. The Company regularly evaluates the carrying value of its cost-method investment for impairment and whether any events or circumstances are identified that would significantly harm the fair value of the investment. 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 Comprehensive Income. As the inputs utilized for the Company's periodic impairment assessment are not based on observable market data, the determination of fair value of this cost-method investment is classified within Level 3 of the fair value hierarchy. See Note 5 - Fair Value Measurement to our condensed consolidated financial statements for further discussion. To determine the fair value of this investment, 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. |
INVENTORY, NET
INVENTORY, NET | 9 Months Ended |
Sep. 30, 2016 | |
Inventory, Net [Abstract] | |
INVENTORIES, NET | NOTE 4 — INVENTORIES, NET Inventories 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. The Company routinely assesses its on-hand inventory for timely identification and measurement of obsolete, slow-moving or otherwise impaired inventory. Inventories consisted of the following (in thousands): September 30, 2016 December 31, 2015 Parts and supplies $ 23,792 $ 15,296 Work-in-progress 6,704 8,797 Finished goods 10,959 7,159 $ 41,455 $ 31,252 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENT | NOTE 5 — FAIR VALUE MEASUREMENT The Fair Value Measurements and Disclosures Topic of the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 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. The ASC 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 three month period ended September 30, 2016 . 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 September 30, 2016 and December 31, 2015 (in thousands): Fair Value Measurements as of September 30, 2016 Using Level 1 Level 2 Level 3 Total Assets: Money Market funds $ 701 $ — $ — $ 701 Government sponsored debt securities — — — — Non-government sponsored debt securities — — — — Fair Value Measurements as of December 31, 2015 Using 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 |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 9 Months Ended |
Sep. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS | NOTE 6 — GOODWILL AND OTHER INTANGIBLE ASSETS On June 30, 2016, the Company completed the Acquisition. As a result of the Acquisition, the Company recorded approximately $34.3 million of goodwill and $41.7 million of other identifiable intangible assets. The goodwill is derived from expected synergies from combining operations of the Company and Nanosphere. The purchase price allocation is preliminary as the Company’s determination of the fair values of the assets acquired and liabilities assumed is still in process. Goodwill is reviewed for impairment at least annually at the beginning of the fourth quarter, or more frequently if impairment indicators arise. The Company's goodwill is not expected to be deductible for tax purposes. The changes in the carrying amount of the Company’s goodwill during the period are as follows (in thousands): September 30, 2016 December 31, 2015 Balance at beginning of year $ 49,619 $ 49,619 Acquisition of Nanosphere 34,279 — Balance at end of period $ 83,898 $ 49,619 The Company’s intangible assets are reflected in the table below (in thousands, except weighted average lives): Finite-lived Indefinite-lived Technology, trade secrets and know-how Customer lists and contracts Other identifiable intangible assets IP R&D Total 2015 Balance as of December 31, 2014 $ 29,704 $ 7,958 $ 1,890 $ 40,100 $ 79,652 Completion of IP R&D project 40,100 — — (40,100 ) — Removal of fully amortized assets (702 ) (161 ) (238 ) — (1,101 ) Balance as of December 31, 2015 69,102 7,797 1,652 — 78,551 Less: accumulated amortization: Accumulated amortization balance as of 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 as of December 31, 2015 (21,646 ) (3,667 ) (756 ) — (26,069 ) Net balance as of December 31, 2015 $ 47,456 $ 4,130 $ 896 $ — $ 52,482 Weighted average life (in years) 10 11 11 2016 Balance as of December 31, 2015 $ 69,102 $ 7,797 $ 1,652 $ — $ 78,551 Additions due to acquisition of Nanosphere 12,282 12,409 4,012 12,982 41,685 Balance as of September 30, 2016 81,384 20,206 5,664 12,982 120,236 Less: accumulated amortization: Accumulated amortization balance as of December 31, 2015 (21,646 ) (3,667 ) (756 ) — (26,069 ) Amortization expense (4,683 ) (902 ) (212 ) — (5,797 ) Accumulated amortization balance as of September 30, 2016 (26,329 ) (4,569 ) (968 ) — (31,866 ) Net balance as of September 30, 2016 $ 55,055 $ 15,637 $ 4,696 $ 12,982 $ 88,370 Weighted average life (in years) 10 10 10 The estimated aggregate amortization expense for the next five fiscal years and thereafter is as follows (in thousands): 2016 (three months) $ 2,482 2017 8,979 2018 8,789 2019 8,789 2020 8,789 Thereafter 37,560 $ 75,388 IPR&D 12,982 $ 88,370 |
OTHER COMPREHENSIVE (LOSS) INCO
OTHER COMPREHENSIVE (LOSS) INCOME | 9 Months Ended |
Sep. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | |
Comprehensive Income (Loss) Note | NOTE 7 — OTHER COMPREHENSIVE INCOME (LOSS) Other comprehensive income (loss) 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 income (loss) 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 income (loss), net of tax (in thousands): Foreign Currency Items Available-for-Sale Investments Accumulated Other Comprehensive Income (Loss) Items Balance as of December 31, 2015 $ (1,258 ) $ (38 ) $ (1,296 ) Other comprehensive income before reclassifications 292 38 330 Net current-period other comprehensive income 292 38 330 Balance as of September 30, 2016 $ (966 ) $ — $ (966 ) The following table presents the tax (expense) benefit allocated to each component of other comprehensive income (loss) (in thousands): Three Months Ended September 30, 2016 Nine Months Ended September 30, 2016 Before Tax Tax Benefit Net of Tax Before Tax Tax Benefit Net of Tax Foreign currency translation adjustments $ 113 $ — $ 113 $ 292 $ — $ 292 Unrealized gains on available-for-sale investments — — — 44 (6 ) 38 Other comprehensive income (loss) $ 113 $ — $ 113 $ 336 $ (6 ) $ 330 |
EARNINGS PER SHARE
EARNINGS PER SHARE | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | NOTE 8 — EARNINGS PER SHARE A reconciliation of the denominators used in computing per share net income, or EPS, is as follows (in thousands, except per share amounts): Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Numerator: Net income $ 2,751 $ 6,402 $ 17,174 $ 16,484 Denominator: Denominator for basic net income per share - weighted average common stock outstanding 42,683 42,152 42,522 42,041 Effect of dilutive securities: stock options and awards 453 404 407 313 Denominator for diluted net income per share - weighted average shares outstanding - diluted 43,136 42,556 42,929 42,354 Basic net income per share $ 0.06 $ 0.15 $ 0.40 $ 0.39 Diluted net income per share $ 0.06 $ 0.15 $ 0.40 $ 0.39 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 and common equivalent shares outstanding during the period. Stock options to acquire approximately zero and 0.6 million shares for the three months ended September 30, 2016 and 2015 , and zero and 0.6 million shares for the nine months ended September 30, 2016 and 2015, respectively, were excluded from the computations of diluted EPS because the effect of including those stock options would have been anti-dilutive. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 9 Months Ended |
Sep. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
STOCK-BASED COMPENSATION | NOTE 9 — STOCK-BASED COMPENSATION The Company’s stock option activity for the nine months ended September 30, 2016 was as follows: Stock Options (shares in thousands) Shares Weighted Average Exercise Price Outstanding as of December 31, 2015 1,692 $ 17.47 Granted 886 19.21 Exercised (143 ) 17.51 Cancelled or expired (92 ) 18.58 Outstanding as of September 30, 2016 2,343 $ 18.08 The Company had $11.7 million of total unrecognized compensation costs related to stock options as of September 30, 2016 , which costs are expected to be recognized over a weighted average period of 2.86 years years. The Company’s restricted share activity for the nine months ended September 30, 2016 was as follows: Restricted Stock Awards (shares in thousands) Shares Weighted Average Grant Price Non-vested as of December 31, 2015 836 $ 18.66 Granted 300 19.74 Vested (205 ) 19.59 Cancelled or expired (53 ) 18.36 Non-vested as of September 30, 2016 878 $ 18.83 Restricted Stock Units (in thousands) Shares Non-vested as of December 31, 2015 501 Granted 99 Vested (83 ) Cancelled or expired (46 ) Non-vested as of September 30, 2016 471 As of September 30, 2016 , there was $15.0 million and $3.3 million of total unrecognized compensation costs related to Restricted Stock Awards (RSAs) and Restricted Stock Units (RSUs), respectively. This cost is expected to be recognized over a weighted average period of 2.36 years years for the RSAs and 1.95 years years for the RSUs. The Company issues a small number of cash settled RSUs pursuant to the Company's equity incentive plan in certain foreign countries. These grants do not result in the issuance of common stock and are considered immaterial by the Company. The following are the stock-based compensation costs recognized in the Company’s condensed consolidated statements of comprehensive income (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Cost of revenue $ 334 $ 238 $ 903 $ 742 Research and development 754 725 1,896 1,705 Selling, general and administrative 2,438 2,136 5,382 5,321 Stock-based compensation costs reflected in net income $ 3,526 $ 3,099 $ 8,181 $ 7,768 |
ACCRUED LIABILITIES
ACCRUED LIABILITIES | 9 Months Ended |
Sep. 30, 2016 | |
Accrued Liabilities, Current [Abstract] | |
ACCRUED WARRANTY COSTS | NOTE 10 — ACCRUED LIABILITIES Accrued liabilities consisted of the following (in thousands): September 30, 2016 December 31, 2015 Compensation and employee benefits $ 11,515 $ 10,946 Income and other taxes 734 1,261 Warranty costs 667 553 Other 3,199 2,392 $ 16,115 $ 15,152 Sales of certain of the Company's systems are subject to a warranty. System warranties typically extend for a period of 12 months from the date of installation not to exceed 24 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 as of December 31, 2015 $ 553 Warranty adjustments/settlements (582 ) Accrual for warranty costs 696 Accrued warranty costs as of September 30, 2016 $ 667 |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | OTE 11 — INCOME TAXES At the end of each interim reporting period, an estimate is made of the effective tax rate expected to be applicable for the full year. The estimated full year’s effective tax rate is used to determine the income tax rate for each applicable interim reporting period. 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. The effective tax rate for the nine months ended September 30, 2016 was 21.70% , including amounts recorded for discrete events. This differs from the statutory rate of 35% primarily because of the worldwide mix of consolidated earnings and losses before taxes and an assessment regarding the realizability of the Company’s deferred tax assets. The Company’s tax expense reflects the full federal, various state, and foreign blended statutory rates. The Company is utilizing its net operating losses and tax credits in the U.S., Canada and the Netherlands and currently expects a full year effective tax rate of less than 30% . Therefore, cash taxes to be paid are expected to continue to be less than 15% of book tax expense. The Company or one of its subsidiaries files income tax returns in the U.S. federal jurisdiction, Australia, Canada, China, Hong Kong, Japan, the Netherlands, and various states. Due to net operating losses, the U.S., Canadian and Australian tax returns dating back to 2011 can still be reviewed by the taxing authorities. No material changes to this liability are expected within the next 12 months. For the nine months ended September 30, 2016 , there were no material changes to the total amount of unrecognized tax benefits. The Company recognizes interest and penalties related to uncertain tax positions in the provision for income taxes. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 12 - COMMITMENTS AND CONTINGENCIES 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) 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. 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. |
RECENT ACCOUNTING PRONOUNCEMENT
RECENT ACCOUNTING PRONOUNCEMENTS | 9 Months Ended |
Sep. 30, 2016 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
RECENT ACCOUNTING PRONOUNCEMENTS | NOTE 13 — RECENT ACCOUNTING PRONOUNCEMENTS Recently adopted accounting guidance In March 2016, the FASB issued guidance that simplifies some provisions in stock compensation accounting related to accounting for a stock payment’s tax consequences. The guidance also amends how excess tax benefits and a company's payments to cover the tax bills for the shares’ recipients should be classified. The amendments allow companies to estimate the number of stock awards they expect to vest, and the amendments also revise the withholding requirements for classifying stock awards as equity. This guidance is effective for annual periods beginning after December 15, 2016. Early adoption is permitted. This new standard requires that an entity recognize excess tax benefits and tax deficiencies as income tax expense or benefit in the income statement when the awards vest or are settled. Under the previous standard, excess tax benefits and tax deficiencies were recognized in additional paid-in capital. Cash flows related to excess tax benefits will no longer be separately classified as a financing activity apart from other income tax cash flows. In addition, related cash payments made on an employee's behalf for shares withheld are presented as a financing activity on the statement of cash flows. The Company early adopted this standard in the quarter ended June 30, 2016. The adoption of this standard resulted in the recognition of $6.9 million of previously unrecognized excess tax benefits in deferred income taxes, net and an increase to retained earnings on our Consolidated Balance Sheet and the recognition of $211,000 of income tax expense in our income tax provision for the nine months ended September 30, 2016 . We have elected to continue to estimate forfeitures expected to occur to determine the amount of compensation cost to be recognized in each period. In September 2015, the FASB issued additional guidance on business combinations. This guidance requires that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period with a corresponding adjustment to goodwill in the reporting period in which the adjustment amounts are determined. The effect on earnings from changes in depreciation, amortization or other income effects, if any, as a result of the change to the provisional amounts will be recorded in the same period's financial statements, calculated as if the accounting had been completed at the acquisition date. The Company adopted this standard during the quarter ended June 30, 2016, and its adoption did not have any impact on its consolidated financial statements. Recent accounting guidance not yet adopted In August 2016, the FASB issued specific guidance on eight cash flow classification issues that are not currently addressed by current U.S. GAAP and thereby reduce the current diversity in practice. This guidance is effective for annual periods beginning after December 15, 2017. Early adoption is permitted. The Company does not anticipate that this guidance will have a material impact on its consolidated financial statements. In February 2016, the FASB issued guidance requiring lessees to recognize a right-of-use asset and a lease liability on the balance sheet for all leases with the exception of short-term leases. The effective date of the new guidance is for the Company's first quarter of fiscal 2019 and early adoption is permitted. The new standard must be adopted using a modified retrospective transition and requires application of the new guidance at the beginning of the earliest comparative period presented. 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 except for the addition of the right-of-use asset and a lease liability to the balance sheet. In January 2016, the FASB issued guidance that changes how entities measure equity investments that do not result in consolidation and are not accounted for under the equity method. Entities will be required to measure these investments at fair value at the end of each reporting period and recognize changes in fair value in net income. This guidance also changes certain disclosure requirements and other aspects of current U.S. GAAP. This guidance is effective for annual periods beginning after December 15, 2017. Early adoption is permitted. The Company does not anticipate that adoption of this guidance will have a material impact on its consolidated financial statements as the only potential impact would be related to the Company's one cost-method investment discussed in Note 3 - Investments. 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 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. |
BUSINESS COMBINATIONS (Tables)
BUSINESS COMBINATIONS (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | The following table summarizes the estimated fair values of Nanosphere’s assets acquired and liabilities assumed at June 30, 2016 (in thousands): Net tangible assets assumed as of June 30, 2016 $ 34,387 Intangible assets subject to amortization 41,685 Long-term debt and accrued interest (25,391 ) Deferred tax assets, net of deferred tax liabilities 7,449 Goodwill 34,279 Total purchase price 92,409 Less cash and cash equivalents acquired (24,311 ) Net cash paid for business acquisition $ 68,098 |
Business Acquisition, Pro Forma Information [Table Text Block] | dition, the unaudited pro forma financial information is not intended to be a projection of future results and does not reflect any operating efficiencies or cost savings that might be achievable. Nine Months Ended September 30, 2016 2015 (unaudited) (in thousands) Revenue $ 212,320 $ 191,483 Income from operations 12,814 4,060 Net income (loss) 10,557 (2,792 ) Net income (loss) per share, basic 0.25 (0.07 ) Shares used in computing net income (loss) per share, basic 42,522 42,041 Net income (loss) per share, diluted 0.25 (0.07 ) Shares used in computing net income (loss) per share, diluted 42,929 42,354 |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Investments [Abstract] | |
Components of available-for-sale securities | Available-for-sale securities consisted of the following as of September 30, 2016 (in thousands): Amortized Cost Gains in Accumulated Other Comprehensive Income Losses in Accumulated Other Comprehensive Income Estimated Fair Value Current: Cash equivalents $ 701 $ — $ 701 Government sponsored debt securities — — — — Non-government sponsored debt securities — — — — Total current securities 701 — — 701 Noncurrent: Government sponsored debt securities — — — — Non-government sponsored debt securities — — — — Total noncurrent securities — — — — Total available-for-sale securities $ 701 $ — $ — $ 701 Available-for-sale securities consisted of the following as of December 31, 2015 (in thousands): Amortized Cost Gains in Accumulated Other Comprehensive Income Losses in Accumulated Other Comprehensive Income Estimated Fair Value Current: Cash equivalents $ 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 |
Estimated fair value of available-for-sale debt securities, by contractual maturity | The estimated fair value of available-for-sale debt securities as of September 30, 2016 and December 31, 2015 , by contractual maturity, was as follows (in thousands): Estimated Fair Value September 30, 2016 December 31, 2015 Due in one year or less $ — $ 11,988 Due after one year through two years — 7,459 $ — $ 19,447 |
INVENTORY, NET (Tables)
INVENTORY, NET (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Inventory, Net [Abstract] | |
Schedule of Inventory, Current | Inventories consisted of the following (in thousands): September 30, 2016 December 31, 2015 Parts and supplies $ 23,792 $ 15,296 Work-in-progress 6,704 8,797 Finished goods 10,959 7,159 $ 41,455 $ 31,252 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
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 September 30, 2016 and December 31, 2015 (in thousands): Fair Value Measurements as of September 30, 2016 Using Level 1 Level 2 Level 3 Total Assets: Money Market funds $ 701 $ — $ — $ 701 Government sponsored debt securities — — — — Non-government sponsored debt securities — — — — Fair Value Measurements as of December 31, 2015 Using 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 |
GOODWILL AND OTHER INTANGIBLE23
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in the carrying amount of goodwill | The changes in the carrying amount of the Company’s goodwill during the period are as follows (in thousands): September 30, 2016 December 31, 2015 Balance at beginning of year $ 49,619 $ 49,619 Acquisition of Nanosphere 34,279 — Balance at end of period $ 83,898 $ 49,619 |
Schedule of intangible assets | The Company’s intangible assets are reflected in the table below (in thousands, except weighted average lives): Finite-lived Indefinite-lived Technology, trade secrets and know-how Customer lists and contracts Other identifiable intangible assets IP R&D Total 2015 Balance as of December 31, 2014 $ 29,704 $ 7,958 $ 1,890 $ 40,100 $ 79,652 Completion of IP R&D project 40,100 — — (40,100 ) — Removal of fully amortized assets (702 ) (161 ) (238 ) — (1,101 ) Balance as of December 31, 2015 69,102 7,797 1,652 — 78,551 Less: accumulated amortization: Accumulated amortization balance as of 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 as of December 31, 2015 (21,646 ) (3,667 ) (756 ) — (26,069 ) Net balance as of December 31, 2015 $ 47,456 $ 4,130 $ 896 $ — $ 52,482 Weighted average life (in years) 10 11 11 2016 Balance as of December 31, 2015 $ 69,102 $ 7,797 $ 1,652 $ — $ 78,551 Additions due to acquisition of Nanosphere 12,282 12,409 4,012 12,982 41,685 Balance as of September 30, 2016 81,384 20,206 5,664 12,982 120,236 Less: accumulated amortization: Accumulated amortization balance as of December 31, 2015 (21,646 ) (3,667 ) (756 ) — (26,069 ) Amortization expense (4,683 ) (902 ) (212 ) — (5,797 ) Accumulated amortization balance as of September 30, 2016 (26,329 ) (4,569 ) (968 ) — (31,866 ) Net balance as of September 30, 2016 $ 55,055 $ 15,637 $ 4,696 $ 12,982 $ 88,370 Weighted average life (in years) 10 10 10 |
Estimated aggregate amortization expense for the next five years and thereafter | The estimated aggregate amortization expense for the next five fiscal years and thereafter is as follows (in thousands): 2016 (three months) $ 2,482 2017 8,979 2018 8,789 2019 8,789 2020 8,789 Thereafter 37,560 $ 75,388 IPR&D 12,982 $ 88,370 |
OTHER COMPREHENSIVE (LOSS) IN24
OTHER COMPREHENSIVE (LOSS) INCOME (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table presents the changes in each component of accumulated other comprehensive income (loss), net of tax (in thousands): Foreign Currency Items Available-for-Sale Investments Accumulated Other Comprehensive Income (Loss) Items Balance as of December 31, 2015 $ (1,258 ) $ (38 ) $ (1,296 ) Other comprehensive income before reclassifications 292 38 330 Net current-period other comprehensive income 292 38 330 Balance as of September 30, 2016 $ (966 ) $ — $ (966 ) |
Schedule of Comprehensive Income (Loss) | The following table presents the tax (expense) benefit allocated to each component of other comprehensive income (loss) (in thousands): Three Months Ended September 30, 2016 Nine Months Ended September 30, 2016 Before Tax Tax Benefit Net of Tax Before Tax Tax Benefit Net of Tax Foreign currency translation adjustments $ 113 $ — $ 113 $ 292 $ — $ 292 Unrealized gains on available-for-sale investments — — — 44 (6 ) 38 Other comprehensive income (loss) $ 113 $ — $ 113 $ 336 $ (6 ) $ 330 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of Calculation of Numerator and Denominator in Earnings Per Share | A reconciliation of the denominators used in computing per share net income, or EPS, is as follows (in thousands, except per share amounts): Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Numerator: Net income $ 2,751 $ 6,402 $ 17,174 $ 16,484 Denominator: Denominator for basic net income per share - weighted average common stock outstanding 42,683 42,152 42,522 42,041 Effect of dilutive securities: stock options and awards 453 404 407 313 Denominator for diluted net income per share - weighted average shares outstanding - diluted 43,136 42,556 42,929 42,354 Basic net income per share $ 0.06 $ 0.15 $ 0.40 $ 0.39 Diluted net income per share $ 0.06 $ 0.15 $ 0.40 $ 0.39 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock options activity | The Company’s stock option activity for the nine months ended September 30, 2016 was as follows: Stock Options (shares in thousands) Shares Weighted Average Exercise Price Outstanding as of December 31, 2015 1,692 $ 17.47 Granted 886 19.21 Exercised (143 ) 17.51 Cancelled or expired (92 ) 18.58 Outstanding as of September 30, 2016 2,343 $ 18.08 |
Restricted shares activity | The Company’s restricted share activity for the nine months ended September 30, 2016 was as follows: Restricted Stock Awards (shares in thousands) Shares Weighted Average Grant Price Non-vested as of December 31, 2015 836 $ 18.66 Granted 300 19.74 Vested (205 ) 19.59 Cancelled or expired (53 ) 18.36 Non-vested as of September 30, 2016 878 $ 18.83 Restricted Stock Units (in thousands) Shares Non-vested as of December 31, 2015 501 Granted 99 Vested (83 ) Cancelled or expired (46 ) Non-vested as of September 30, 2016 471 |
Stock-based compensation costs recognized in consolidated statements of income | The following are the stock-based compensation costs recognized in the Company’s condensed consolidated statements of comprehensive income (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Cost of revenue $ 334 $ 238 $ 903 $ 742 Research and development 754 725 1,896 1,705 Selling, general and administrative 2,438 2,136 5,382 5,321 Stock-based compensation costs reflected in net income $ 3,526 $ 3,099 $ 8,181 $ 7,768 |
ACCRUED LIABILITIES (Tables)
ACCRUED LIABILITIES (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Accrued Liabilities, Current [Abstract] | |
Schedule of Accrued Liabilities [Table Text Block] | Accrued liabilities consisted of the following (in thousands): September 30, 2016 December 31, 2015 Compensation and employee benefits $ 11,515 $ 10,946 Income and other taxes 734 1,261 Warranty costs 667 553 Other 3,199 2,392 $ 16,115 $ 15,152 |
Changes in warranty accrual | The following table summarizes the changes in the warranty accrual (in thousands): Accrued warranty costs as of December 31, 2015 $ 553 Warranty adjustments/settlements (582 ) Accrual for warranty costs 696 Accrued warranty costs as of September 30, 2016 $ 667 |
BUSINESS COMBINATIONS (Details)
BUSINESS COMBINATIONS (Details) - USD ($) $ / shares in Units, shares in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Jun. 30, 2016 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Business Acquisition [Line Items] | ||||||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | $ 0.001 | |||
Goodwill | $ 34,279,000 | $ 0 | ||||
Revenue | $ 71,221,000 | $ 60,601,000 | 198,368,000 | $ 177,259,000 | ||
Net loss | $ 2,751,000 | $ 6,402,000 | $ 17,174,000 | $ 16,484,000 | ||
Denominator for basic net income per share - weighted average common stock outstanding | 42,683 | 42,152 | 42,522 | 42,041 | ||
Denominator for diluted net income per share - weighted average shares outstanding - diluted | 43,136 | 42,556 | 42,929 | 42,354 | ||
Nanosphere [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Business Acquisition, Percentage of Voting Interests Acquired | 100.00% | |||||
Common stock, par value (in dollars per share) | $ 0.01 | |||||
Business Acquisition, Share Price | $ 1.70 | |||||
Business Acquisition, Cost of Acquired Entity, Cash Paid | $ 88,500,000 | |||||
Business acquisition, consideration of cancelled options and restricted stock | $ 1,400,000 | |||||
Business acquisition, warrants outstanding | 1,500 | |||||
Business acquisition, consideration to warrant holders | $ 2,500,000 | |||||
Business acquisition, accrued interest on debt | 391,000 | |||||
Business acquisition, cash acquired during acquisition | 25,600,000 | |||||
Business Acquisition, Transaction Costs | 1,500,000 | |||||
Net tangible assets assumed as of June 30, 2016 | 34,387,000 | |||||
Intangible assets subject to amortization | 41,685,000 | |||||
Long-term debt and accrued interest | (25,391,000) | |||||
Deferred tax assets, net of deferred tax liabilities | 7,449,000 | |||||
Goodwill | 34,279,000 | |||||
Business Acquisition, Cost of Acquired Entity, Purchase Price | 92,409,000 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents | 24,311,000 | |||||
Net cash paid for business acquisition | $ 68,098,000 | |||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Inventory | $ 500,000 | |||||
Revenue | 7,400,000 | |||||
Net loss | $ 6,200,000 | |||||
Business Acquisition, Pro Forma Revenue | $ 212,320,000 | $ 191,483,000 | ||||
Business Acquisition, Pro Forma Income (Loss) from Continuing Operations, Net of Tax | 12,814,000 | 4,060,000 | ||||
Business Acquisition, Pro Forma Net Income (Loss) | $ 10,557,000 | $ (2,792,000) | ||||
Business Acquisition, Pro Forma Earnings Per Share, Basic | $ 0.25 | $ (0.07) | ||||
Business Acquisition, Pro Forma Earnings Per Share, Diluted | $ 0.25 | $ (0.07) |
INVESTMENTS (Details)
INVESTMENTS (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2013 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Components of Available-for-sale Securities [Line Items] | ||||||
Payments to Acquire Other Investments | $ 500 | $ 0 | $ 500 | $ 0 | ||
Amortized Cost | 701 | 701 | $ 19,634 | |||
Gains in Accumulated Other Comprehensive Gain | 0 | 0 | 0 | |||
Losses in Accumulated Other Comprehensive Gain | 0 | 0 | (43) | |||
Non-government sponsored debt securities fair value disclosure | 0 | 0 | 7,459 | |||
Government sponsored debt securities fair value disclosure | 0 | 0 | 11,988 | |||
Estimated Fair Value | 701 | 701 | 19,591 | |||
Available-for-sale Securities [Abstract] | ||||||
Proceeds from sales of available-for-sale-securities | 0 | $ 0 | 19,500 | $ 0 | ||
Available-for-sale securities, debt maturities [Abstract] | ||||||
Due in one year or less | 0 | 0 | 11,988 | |||
Due after one year through two years | 0 | 0 | 7,459 | |||
Total estimated fair value of available-for-sale debt securities | $ 0 | $ 0 | 19,447 | |||
Ownership percentage in cost method investment | 20.00% | 20.00% | ||||
Money Market Funds [Member] | ||||||
Components of Available-for-sale Securities [Line Items] | ||||||
Amortized Cost | $ 701 | $ 701 | 144 | |||
Gains in Accumulated Other Comprehensive Gain | 0 | |||||
Losses in Accumulated Other Comprehensive Gain | 0 | 0 | 0 | |||
Estimated Fair Value | 701 | 701 | 144 | |||
Current government-sponsored debt securities [Member] | ||||||
Components of Available-for-sale Securities [Line Items] | ||||||
Amortized Cost | 0 | 0 | 10,000 | |||
Gains in Accumulated Other Comprehensive Gain | 0 | 0 | 0 | |||
Losses in Accumulated Other Comprehensive Gain | 0 | 0 | (10) | |||
Estimated Fair Value | 0 | 0 | 9,990 | |||
Current Non-Government Sponsored Debt Securities [Member] | ||||||
Components of Available-for-sale Securities [Line Items] | ||||||
Amortized Cost | 0 | 0 | 2,001 | |||
Gains in Accumulated Other Comprehensive Gain | 0 | 0 | 0 | |||
Losses in Accumulated Other Comprehensive Gain | 0 | 0 | (3) | |||
Estimated Fair Value | 0 | 0 | 1,998 | |||
Total Current Available-for-sale Securities [Member] | ||||||
Components of Available-for-sale Securities [Line Items] | ||||||
Amortized Cost | 701 | 701 | 12,145 | |||
Gains in Accumulated Other Comprehensive Gain | 0 | 0 | 0 | |||
Losses in Accumulated Other Comprehensive Gain | 0 | 0 | (13) | |||
Estimated Fair Value | 701 | 701 | 12,132 | |||
Non-current government sponsored debt securities | ||||||
Components of Available-for-sale Securities [Line Items] | ||||||
Amortized Cost | 0 | 0 | 1,998 | |||
Gains in Accumulated Other Comprehensive Gain | 0 | 0 | 0 | |||
Losses in Accumulated Other Comprehensive Gain | 0 | 0 | (6) | |||
Government sponsored debt securities fair value disclosure | 0 | 0 | ||||
Estimated Fair Value | 1,992 | |||||
Non-Current Non-Government Sponsored Debt Securities [Member] | ||||||
Components of Available-for-sale Securities [Line Items] | ||||||
Amortized Cost | 0 | 0 | 5,491 | |||
Gains in Accumulated Other Comprehensive Gain | 0 | 0 | 0 | |||
Losses in Accumulated Other Comprehensive Gain | 0 | 0 | (24) | |||
Non-government sponsored debt securities fair value disclosure | 0 | 0 | ||||
Estimated Fair Value | 5,467 | |||||
Total Non-Current Available-for-sale Securities [Member] | ||||||
Components of Available-for-sale Securities [Line Items] | ||||||
Amortized Cost | 0 | 0 | 7,489 | |||
Gains in Accumulated Other Comprehensive Gain | 0 | 0 | 0 | |||
Losses in Accumulated Other Comprehensive Gain | 0 | 0 | (30) | |||
Estimated Fair Value | 0 | 0 | $ 7,459 | |||
Investment in Private Company 1 [Member] | ||||||
Available-for-sale securities, debt maturities [Abstract] | ||||||
Gain (Loss) on Disposition of Property Plant Equipment, Excluding Oil and Gas Property and Timber Property | 900 | $ 5,400 | ||||
Investment in Private Company 2 [Member] | ||||||
Available-for-sale securities, debt maturities [Abstract] | ||||||
Amount of investments in a private company | $ 1,000 | $ 1,000 |
INVENTORY, NET (Details)
INVENTORY, NET (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Inventory, Net [Abstract] | ||
Parts and supplies | $ 23,792 | $ 15,296 |
Work-in-progress | 6,704 | 8,797 |
Finished goods | 10,959 | 7,159 |
Inventory, net | $ 41,455 | $ 31,252 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Amounts included in asset accounts [Abstract] | ||
Money Market funds | $ 701 | $ 144 |
Government sponsored debt securities fair value disclosure | 0 | 11,988 |
Non-government sponsored debt securities fair value disclosure | 0 | 7,459 |
Fair Value, Inputs, Level 1 [Member] | ||
Amounts included in asset accounts [Abstract] | ||
Money Market funds | 701 | 144 |
Government sponsored debt securities fair value disclosure | 0 | 0 |
Non-government sponsored debt securities fair value disclosure | 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 | 0 | 11,988 |
Non-government sponsored debt securities fair value disclosure | 0 | 7,459 |
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 fair value disclosure | 0 | $ 0 |
Non-Current Non-Government Sponsored Debt Securities [Member] | ||
Amounts included in asset accounts [Abstract] | ||
Non-government sponsored debt securities fair value disclosure | $ 0 |
GOODWILL AND OTHER INTANGIBLE32
GOODWILL AND OTHER INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Goodwill [Roll Forward] | |||||
Balance at beginning of year | $ 49,619 | $ 49,619 | $ 49,619 | ||
Goodwill | 34,279 | 0 | |||
Balance at end of period | $ 83,898 | 83,898 | 49,619 | ||
Finite and Indefinite-lived Intangible Assets [Roll Forward] | |||||
Balance, beginning | 78,551 | 79,652 | 79,652 | ||
Completion of In Process Research and Development Project | 0 | ||||
Removal of fully amortized assets | (1,101) | ||||
Business Acquisition, Purchase Price Allocation, Amortizable Intangible Assets | 41,685 | 41,685 | |||
Balance, ending | 120,236 | 120,236 | 78,551 | ||
Less: accumulated amortization [Abstract] | |||||
Accumulated amortization, beginning balance | (26,069) | (23,270) | (23,270) | ||
Amortization expense | (2,482) | $ (777) | (5,797) | (2,455) | (3,900) |
Removal of amortization of fully amortized assets | 1,101 | ||||
Accumulated amortization, ending balance | (31,866) | (31,866) | (26,069) | ||
Net balance | 88,370 | 88,370 | 52,482 | ||
Estimated aggregate amortization expense for the next five years and thereafter [Abstract] | |||||
2016 (three months) | 2,482 | 2,482 | |||
2,017 | 8,979 | 8,979 | |||
2,018 | 8,789 | 8,789 | |||
2,019 | 8,789 | 8,789 | |||
2,020 | 8,789 | 8,789 | |||
Thereafter | 37,560 | 37,560 | |||
Total | 75,388 | 75,388 | |||
IPR&D | 12,982 | 12,982 | |||
Total | 88,370 | 88,370 | |||
In-process Research and Development [Member] | |||||
Finite and Indefinite-lived Intangible Assets [Roll Forward] | |||||
Balance, beginning | 0 | 40,100 | 40,100 | ||
Completion of In Process Research and Development Project | (40,100) | ||||
Removal of fully amortized assets | 0 | ||||
Business Acquisition, Purchase Price Allocation, Amortizable Intangible Assets | 12,982 | 12,982 | |||
Balance, ending | 12,982 | 12,982 | 0 | ||
Less: accumulated amortization [Abstract] | |||||
Accumulated amortization, beginning balance | 0 | 0 | 0 | ||
Amortization expense | 0 | 0 | |||
Removal of amortization of fully amortized assets | 0 | ||||
Accumulated amortization, ending balance | 0 | 0 | 0 | ||
Net balance | 12,982 | 12,982 | 0 | ||
Technology, Trade Secrets, and Know-how [Member] | |||||
Finite and Indefinite-lived Intangible Assets [Roll Forward] | |||||
Balance, beginning | 69,102 | 29,704 | 29,704 | ||
Completion of In Process Research and Development Project | (40,100) | ||||
Removal of fully amortized assets | (702) | ||||
Business Acquisition, Purchase Price Allocation, Amortizable Intangible Assets | 12,282 | 12,282 | |||
Balance, ending | 81,384 | 81,384 | 69,102 | ||
Less: accumulated amortization [Abstract] | |||||
Accumulated amortization, beginning balance | (21,646) | (19,325) | (19,325) | ||
Amortization expense | (4,683) | (3,023) | |||
Removal of amortization of fully amortized assets | 702 | ||||
Accumulated amortization, ending balance | (26,329) | (26,329) | (21,646) | ||
Net balance | 55,055 | $ 55,055 | $ 47,456 | ||
Weighted average life (in years) | 10 years | 10 years | |||
Customer Lists and Contracts [Member] | |||||
Finite and Indefinite-lived Intangible Assets [Roll Forward] | |||||
Balance, beginning | $ 7,797 | 7,958 | $ 7,958 | ||
Completion of In Process Research and Development Project | 0 | ||||
Removal of fully amortized assets | (161) | ||||
Business Acquisition, Purchase Price Allocation, Amortizable Intangible Assets | 12,409 | 12,409 | |||
Balance, ending | 20,206 | 20,206 | 7,797 | ||
Less: accumulated amortization [Abstract] | |||||
Accumulated amortization, beginning balance | (3,667) | (3,085) | (3,085) | ||
Amortization expense | (902) | (743) | |||
Removal of amortization of fully amortized assets | 161 | ||||
Accumulated amortization, ending balance | (4,569) | (4,569) | (3,667) | ||
Net balance | 15,637 | $ 15,637 | $ 4,130 | ||
Weighted average life (in years) | 10 years | 11 years | |||
Other Identifiable Intangible Assets [Member] | |||||
Finite and Indefinite-lived Intangible Assets [Roll Forward] | |||||
Balance, beginning | $ 1,652 | 1,890 | $ 1,890 | ||
Completion of In Process Research and Development Project | 0 | ||||
Removal of fully amortized assets | (238) | ||||
Business Acquisition, Purchase Price Allocation, Amortizable Intangible Assets | 4,012 | 4,012 | |||
Balance, ending | 5,664 | 5,664 | 1,652 | ||
Less: accumulated amortization [Abstract] | |||||
Accumulated amortization, beginning balance | (756) | $ (860) | (860) | ||
Amortization expense | (212) | (134) | |||
Removal of amortization of fully amortized assets | 238 | ||||
Accumulated amortization, ending balance | (968) | (968) | (756) | ||
Net balance | $ 4,696 | $ 4,696 | $ 896 | ||
Weighted average life (in years) | 10 years | 11 years |
OTHER COMPREHENSIVE (LOSS) IN33
OTHER COMPREHENSIVE (LOSS) INCOME (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||
Balance as of December 31, 2015 | $ (1,296) | |||
Other comprehensive income before reclassifications | 330 | |||
Net current-period other comprehensive income | $ 113 | $ (18) | 330 | $ (351) |
Balance as of September 30, 2016 | (966) | (966) | ||
Accumulated Translation Adjustment [Member] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||
Balance as of December 31, 2015 | (1,258) | |||
Other comprehensive income before reclassifications | 292 | |||
Net current-period other comprehensive income | 292 | |||
Balance as of September 30, 2016 | (966) | (966) | ||
Available-for-sale Securities [Member] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||
Balance as of December 31, 2015 | (38) | |||
Other comprehensive income before reclassifications | 38 | |||
Net current-period other comprehensive income | 38 | |||
Balance as of September 30, 2016 | $ 0 | $ 0 |
OTHER COMPREHENSIVE (LOSS) IN34
OTHER COMPREHENSIVE (LOSS) INCOME (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||
Foreign currency translation adjustments, before tax | $ 113 | $ 292 | ||
Foreign currency translation adjustments, tax benefit | 0 | 0 | ||
Foreign currency translation adjustments, net of tax | 113 | 292 | ||
Unrealized gains on available-for-sale investments, before tax | 0 | 44 | ||
Unrealized gains on available-for-sale investments, tax benefit | 0 | (6) | ||
Unrealized gains on available-for-sale investments, net of tax | 0 | 38 | ||
Other comprehensive (loss) income, before tax | 113 | 336 | ||
Other comprehensive (loss) income, tax benefit | 0 | (6) | ||
Other comprehensive (loss) income, net of tax | $ 113 | $ (18) | $ 330 | $ (351) |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Numerator: | ||||
Net income | $ 2,751 | $ 6,402 | $ 17,174 | $ 16,484 |
Denominator: | ||||
Denominator for basic net income per share - weighted average common stock outstanding | 42,683,000 | 42,152,000 | 42,522,000 | 42,041,000 |
Effect of dilutive securities: stock options and awards | 453,000 | 404,000 | 407,000 | 313,000 |
Denominator for diluted net income per share - weighted average shares outstanding - diluted | 43,136,000 | 42,556,000 | 42,929,000 | 42,354,000 |
Basic net income per share | $ 0.06 | $ 0.15 | $ 0.40 | $ 0.39 |
Diluted net income per share | $ 0.06 | $ 0.15 | $ 0.40 | $ 0.39 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive restricted stock awards, stock options | 0 | 579,256 | 0 | 579,256 |
STOCK-BASED COMPENSATION (Detai
STOCK-BASED COMPENSATION (Details) $ / shares in Units, shares in Thousands, $ in Millions | 9 Months Ended |
Sep. 30, 2016USD ($)$ / sharesshares | |
Stock options, additional Disclosures [Abstract] | |
Total unrecognized compensation costs | $ | $ 11.7 |
Unrecognized compensation costs, weighted average period of recognition (in years) | 2 years 10 months 10 days |
Stock Options [Member] | |
Stock options, outstanding [Roll Forward] | |
Options outstanding, beginning balance (in shares) | 1,692 |
Granted (in shares) | 886 |
Exercised (in shares) | (143) |
Cancelled or expired (in shares) | (92) |
Options outstanding, ending balance (in shares) | 2,343 |
Stock options, additional Disclosures [Abstract] | |
Weighted-average price, beginning of period (in dollars per share) | $ / shares | $ 17.47 |
Weighted-average price, granted (in dollars per share) | $ / shares | 19.21 |
Weighted average price, exercised (in dollars per share) | $ / shares | 17.51 |
Weighted-average price, cancelled or expired (in dollars per share) | $ / shares | 18.58 |
Weighted-average price, end of period (in dollars per share) | $ / shares | $ 18.08 |
Restricted Stock [Member] | |
Stock options, additional Disclosures [Abstract] | |
Total unrecognized compensation costs | $ | $ 15 |
Unrecognized compensation costs, weighted average period of recognition (in years) | 2 years 4 months 10 days |
Equity instruments other than options, nonvested [Roll Forward] | |
Non-vested, beginning balance (in shares) | 836 |
Granted (in shares) | 300 |
Vested (in shares) | (205) |
Cancelled or expired (in shares) | (53) |
Non-vested, ending balance (in shares) | 878 |
Equity instruments other than options, additional Disclosures [Abstract] | |
Non-vested, beginning balance (in dollars per share) | $ / shares | $ 18.66 |
Granted (in dollars per share) | $ / shares | 19.74 |
Vested (in dollars per share) | $ / shares | 19.59 |
Cancelled or expired (in dollars per share) | $ / shares | 18.36 |
Non-vested, ending balance (in dollars per share) | $ / shares | $ 18.83 |
Restricted Stock Units (RSUs) [Member] | |
Stock options, additional Disclosures [Abstract] | |
Total unrecognized compensation costs | $ | $ 3.3 |
Unrecognized compensation costs, weighted average period of recognition (in years) | 1 year 11 months 12 days |
Equity instruments other than options, nonvested [Roll Forward] | |
Non-vested, beginning balance (in shares) | 501 |
Granted (in shares) | 99 |
Vested (in shares) | (83) |
Cancelled or expired (in shares) | (46) |
Non-vested, ending balance (in shares) | 471 |
STOCK-BASED COMPENSATION (Det37
STOCK-BASED COMPENSATION (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Cost of revenue | ||||
Share-based Compensation, allocation and classification in income statements [Abstract] | ||||
Stock-based compensation costs | $ 334 | $ 238 | $ 903 | $ 742 |
Research and development | ||||
Share-based Compensation, allocation and classification in income statements [Abstract] | ||||
Stock-based compensation costs | 754 | 725 | 1,896 | 1,705 |
Selling, general and administrative | ||||
Share-based Compensation, allocation and classification in income statements [Abstract] | ||||
Stock-based compensation costs | 2,438 | 2,136 | 5,382 | 5,321 |
Selling, general and administrative | ||||
Share-based Compensation, allocation and classification in income statements [Abstract] | ||||
Stock-based compensation costs | $ 3,526 | $ 3,099 | $ 8,181 | $ 7,768 |
ACCRUED LIABILITIES (Details)
ACCRUED LIABILITIES (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Dec. 31, 2015 | |
Accrued Liabilities, Current [Abstract] | ||
Accrued Employee Benefits, Current | $ 11,515 | $ 10,946 |
Accrued Income And Other Taxes | 734 | 1,261 |
Other Accrued Liabilities, Current | 3,199 | 2,392 |
Accrued liabilities | 16,115 | $ 15,152 |
Accrued warranty costs [Roll Forward] | ||
Accrued warranty costs as of December 31, 2015 | 553 | |
Warranty adjustments/settlements | (582) | |
Accrual for warranty costs | 696 | |
Accrued warranty costs as of September 30, 2016 | $ 667 |
INCOME TAXES (Details)
INCOME TAXES (Details) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2016 | |
Effective tax rate, including amounts recorded for discrete events (in hundredths) | 21.70% | |
Statutory rate (in hundredths) | 35.00% | |
Maximum rate for cash taxes expected to be paid (in hundredths) | 15.00% | |
Scenario, Forecast [Member] | ||
Effective tax rate, including amounts recorded for discrete events (in hundredths) | 30.00% |
COMMITMENTS AND CONTINGENCIES C
COMMITMENTS AND CONTINGENCIES COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Jun. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
COMMITTMENTS AND CONTINGENCIES [Abstract] | |||||
Settlement of litigation | $ 0 | $ 0 | $ 7,100 | $ 0 | $ 7,300 |
RECENT ACCOUNTING PRONOUNCEME41
RECENT ACCOUNTING PRONOUNCEMENTS RECENT ACCOUNTING PRONOUNCEMENTS (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
New Accounting Pronouncement, Early Adoption [Line Items] | |||||
Income Tax Expense (Benefit) | $ 1,307,000 | $ 3,317,000 | $ 4,760,000 | $ 6,538,000 | |
Retained earnings | 72,214,000 | 72,214,000 | $ 48,133,000 | ||
New Accounting Pronouncement, Early Adoption, Effect [Member] | |||||
New Accounting Pronouncement, Early Adoption [Line Items] | |||||
Income Tax Expense (Benefit) | 211,000 | ||||
Retained earnings | $ 6,900,000 | $ 6,900,000 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Jun. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Subsequent Event [Line Items] | |||||
Settlement of litigation | $ 0 | $ 0 | $ (7,100) | $ 0 | $ (7,300) |