Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Feb. 23, 2017 | Jun. 30, 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 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 40,947,348 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 820,845,238 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 93,452 | $ 128,546 |
Short-term investments | 0 | 11,988 |
Accounts receivable (net of allowance for doubtful accounts of $419 and $204 at December 31, 2016 and 2015, respectively) | 32,365 | 28,853 |
Inventories, net | 40,775 | 31,252 |
Prepaids and other | 7,145 | 8,887 |
Total current assets | 173,737 | 209,526 |
Property and equipment, net | 57,375 | 47,796 |
Intangible assets, net | 84,841 | 52,482 |
Deferred income taxes | 42,497 | 31,821 |
Long-term investments | 0 | 7,459 |
Goodwill | 85,481 | 49,619 |
Other | 6,785 | 3,853 |
Total assets | 450,716 | 402,556 |
Current liabilities: | ||
Accounts payable | 12,276 | 7,868 |
Accrued liabilities | 22,804 | 15,152 |
Deferred revenue | 5,120 | 4,212 |
Total current liabilities | 40,200 | 27,232 |
Deferred revenue | 1,875 | 2,064 |
Other | 4,962 | 4,724 |
Total liabilities | 47,037 | 34,020 |
Stockholders' equity: | ||
Common stock, $.001 par value, 200,000,000 shares authorized; issued and outstanding: 42,802,480 shares at December 31, 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 | 336,430 | 321,657 |
Accumulated other comprehensive loss | (1,692) | (1,296) |
Retained earnings | 68,898 | 48,133 |
Total stockholders' equity | 403,679 | 368,536 |
Total liabilities and stockholders' equity | $ 450,716 | $ 402,556 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Current assets: | ||
Allowance for doubtful accounts | $ 419 | $ 204 |
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) | 42,802,480 | 42,314,581 |
Common stock, outstanding (in shares) | 42,802,480 | 42,314,581 |
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, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS [Abstract] | |||
Revenue | $ 270,639 | $ 237,708 | $ 226,983 |
Cost of revenue | 90,984 | 69,001 | 67,131 |
Gross profit | 179,655 | 168,707 | 159,852 |
Operating expenses: | |||
Research and development | 48,659 | 42,690 | 43,135 |
Selling, general and administrative | 99,511 | 84,760 | 82,785 |
Amortization of acquired intangible assets | 8,218 | 3,900 | 3,913 |
Restructuring Charges | 2,281 | 0 | 1,882 |
Total operating expenses | 158,669 | 131,350 | 131,715 |
Income from operations | 20,986 | 37,357 | 28,137 |
Interest expense on long-term debt | 0 | 0 | (6) |
Other (expense) income, net | 129 | 987 | (46) |
Gain (Loss) on Extinguishment of Debt | (1,500) | ||
Payments of Debt Extinguishment Costs | 0 | 0 | |
Settlement of litigation, net | 0 | (5,300) | 0 |
Income before income taxes | 19,615 | 33,044 | 28,085 |
Income tax (expense) benefit | (5,801) | 3,817 | 10,958 |
Net income | 13,814 | 36,861 | 39,043 |
Other comprehensive loss: | |||
Foreign currency translation adjustments | (434) | (531) | (1,146) |
Unrealized losses on available-for-sale securities, net of tax | 38 | (21) | (17) |
Other comprehensive loss | (396) | (552) | (1,163) |
Comprehensive income | $ 13,418 | $ 36,309 | $ 37,880 |
Net income per share, basic (in dollars per share) | $ 0.32 | $ 0.88 | $ 0.94 |
Shares used in computing net income per share, basic (in shares) | 42,584 | 42,091 | 41,558 |
Net income per share, diluted (in dollars per share) | $ 0.32 | $ 0.86 | $ 0.93 |
Shares used in computing net income per share, diluted (in shares) | 43,013 | 42,637 | 42,156 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cash flows from operating activities: | |||
Net income | $ 13,814 | $ 36,861 | $ 39,043 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 20,131 | 13,744 | 14,205 |
Stock-based compensation | 11,821 | 10,855 | 9,548 |
Deferred income tax (benefit) expense | 3,626 | (5,624) | (8,549) |
Excess income tax benefit from employee stock-based awards | 0 | (10) | (287) |
Loss on sale of assets | 265 | 385 | 181 |
Non-cash restructuring charges | 0 | 0 | 2,836 |
Other | (1,378) | (252) | (347) |
Changes in operating assets and liabilities: | |||
Accounts receivable, net | 1,136 | (594) | 1,964 |
Inventories, net | (5,484) | 5,476 | (7,046) |
Other assets | 1,811 | (968) | (2,888) |
Accounts payable | 3,460 | (3,943) | 841 |
Accrued liabilities | 198 | 1,879 | 2,657 |
Deferred revenue | 281 | (427) | (814) |
Net cash provided by operating activities | 49,681 | 57,382 | 51,344 |
Cash flows from investing activities: | |||
Purchases of available-for-sale securities | 0 | (7,488) | (18,999) |
Sales and maturities of available-for-sale securities | 19,491 | 4,000 | 7,509 |
Purchase of property and equipment | (13,130) | (18,706) | (17,078) |
Payments to Acquire Businesses, Net of Cash Acquired | 68,098 | 0 | 0 |
Payments to Acquire Other Investments | 1,000 | 0 | 0 |
Proceeds from sale of assets and investments | 45 | 893 | 98 |
Acquired technology rights | (200) | (852) | (64) |
Net cash used in investing activities | (62,892) | (22,153) | (28,534) |
Cash flows from financing activities: | |||
Payments on debt | (25,000) | 0 | (1,621) |
Proceeds from employee stock plans and issuance of common stock | 5,089 | 3,118 | 4,746 |
Payments for stock repurchases | (1,719) | (1,603) | (2,093) |
Excess income tax benefit from employee stock-based awards | 0 | 10 | 287 |
Net cash (used in) provided by financing activities | (21,630) | 1,525 | 1,319 |
Effect of foreign currency exchange rate on cash | (253) | 98 | (359) |
Change in cash and cash equivalents | (35,094) | 36,852 | 23,770 |
Cash and cash equivalents, beginning of year | 128,546 | 91,694 | 67,924 |
Cash and cash equivalents, end of year | $ 93,452 | $ 128,546 | $ 91,694 |
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, 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 | ||||
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 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Exercise of stock options (in shares) | 178,111 | ||||
Exercise of stock options | 3,303 | $ 0 | 3,303 | 0 | 0 |
Issuances of restricted stock, net of shares withheld for taxes (in shares) | 228,480 | ||||
Issuances of restricted stock, net of shares withheld for taxes | (1,718) | $ 0 | (1,718) | 0 | 0 |
Stock compensation | 11,776 | $ 0 | 11,776 | 0 | 0 |
Issuance of common shares under ESPP (in shares) | 81,308 | ||||
Issuance of common shares under ESPP | 1,413 | $ 0 | 1,413 | 0 | 0 |
Net income | 13,814 | 0 | 0 | 0 | 13,814 |
Tax benefits associated with options | 6,951 | 0 | 0 | 0 | 6,951 |
Foreign currency translation adjustments | (434) | $ 0 | 0 | (434) | 0 |
Other (in shares) | 0 | ||||
Other | $ 38 | $ 0 | 0 | 38 | 0 |
Balance (in shares) at Dec. 31, 2016 | 42,802,480 | 42,802,480 | |||
Balance at Dec. 31, 2016 | $ 403,679 | $ 42 | $ 336,431 | $ (1,692) | $ 68,898 |
DESCRIPTION OF BUSINESS AND SUM
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2016 | |
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, called systems and assays, to various types of testing laboratories. We have a large base of installed 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 systems. Following the completion of our acquisition of Nanosphere, Inc. (Nanosphere) on June 30, 2016 our offering in the molecular diagnostic market segment expanded to include Nanosphere's proprietary diagnostic tools that enable rapid and accurate detection of respiratory, gastrointestinal and bloodstream infections. Nanosphere is a leader in the high-growth bloodstream infection testing segment with its U.S. Food and Drug Administration (FDA) cleared Verigene ® Gram-Positive Blood Culture (BC-GP) and Gram-Negative Blood Culture (BC-GN) test panels for the early detection of pathogens associated with bloodstream infections. In addition to detecting bacteria, these panels also detect yeast and identify antibiotic resistance markers. In contrast to traditional methodologies, which can take several days, these assays enable physicians to identify the pathogen, including any associated resistance markers, and prescribe the most appropriate antibiotic regimen, all within 2.5 hours after identification of a positive blood culture. The ability for clinicians to make earlier, better informed therapeutic decisions results in improved patient outcomes and lower healthcare costs. In addition, Nanosphere has FDA-cleared products for the detection of gastrointestinal and respiratory infections. These include a targeted product for the detection of C. difficile , as well as highly multiplexed molecular enteric, blood and respiratory pathogen panels which test for a wide spectrum of microorganisms often associated with these types of infections. With the addition of the Verigene platform, Luminex offers customers automated molecular platforms for both syndromic and targeted molecular diagnostic testing. 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. 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, 2016 and 2015 . See Note 7 for further details concerning fair value measurements. Supplemental Cash Flow Statement Information (in thousands) Year Ended December 31, 2016 2015 2014 Cash paid during the period for taxes $ 385 $ 578 $ 1,193 Cash (received) paid during the period for interest and penalties (3 ) 96 157 Cash paid during the period for Nanosphere debt interest 391 — — Cash paid during the period for Nanosphere debt prepayment penalty 1,500 — — Effect of acquisitions: Fair value of tangible assets acquired 34,372 — — Liabilities assumed (25,391 ) — — Cost in excess of fair value of assets acquired 35,862 — — Acquired identifiable intangible assets 27,595 — — Deferred tax assets (liabilities), net 6,989 — — In-process research and development 12,982 — — Total purchase price 92,409 — — Less cash and cash equivalents acquired 24,311 — — Net cash paid for business acquisition $ 68,098 $ — $ — 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 20% , 24% and 21% of our total revenues in 2016 , 2015 and 2014 , respectively. Thermo Fisher Scientific, Inc. accounted for 13% , 13% and 17% of our total revenues in 2016 , 2015 and 2014 , respectively. Bio-Rad Laboratories, Inc. accounted for 7% , 8% and 7% of our total revenues in 2016 , 2015 and 2014 , respectively. No other customer accounted for more than 10% of our total revenues in 2016 , 2015 or 2014 . 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 typically 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, ARIES ® and Verigene 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, 2016 . In 2016 and 2015 , the Company estimated the fair value of the reporting unit using a fair-value-based approach based on the market capitalization. In 2014 , 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 2016 , 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 2016 , 2015 or 2014 . 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 may enter into arrangements for system sales that are multiple-element arrangements, including services such as installation and multiple products. When such arrangements include installation, no revenue is generally recognized until installation and delivery is complete. When such arrangements include multiple products, all of the products are generally shipped at the same time. As a result, the Company generally does not need to defer revenue for any undelivered elements. However, in situations where revenue is deferred for an undelivered element, 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. 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 $2.2 million , $2.3 million and $2.3 million for 2016 , 2015 and 2014 , 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. 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 five 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 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. 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. |
BUSINESS COMBINATIONS (Notes)
BUSINESS COMBINATIONS (Notes) | 12 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
Business Combination Disclosure [Text Block] | BUSINESS COMBINATION 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 an additional $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 outstanding warrants for the purchase of 1.5 million shares of commons stock of Nanosphere 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 $24.3 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 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 $ 34,372 Intangible assets subject to amortization 27,595 In process research and development 12,982 Long-term debt and accrued interest (25,391 ) Deferred tax assets, net of deferred tax liabilities 6,989 Goodwill 35,862 Total purchase price 92,409 Less cash and cash equivalents acquired (24,311 ) Net cash paid for business acquisition $ 68,098 $40.6 million of intangible assets have been identified as $27.6 million of acquired identifiable intangible assets, which are subject to amortization, and $13.0 million of in-process research and development (IPR&D) that has not yet reached technological feasibility as of the acquisition date. Technological feasibility is primarily established by obtaining regulatory approval to perform certain diagnostic testing on the Company's systems. The IPR&D project relates to the next generation Verigene System which is expected to be completed in 2018. The fair value of the IPR&D has been estimated using a cost-to-recreate methodology based on the costs that would be incurred to recreate the IPR&D in its existing state as of the acquisition date. The Company finalized the purchase price allocation for the Nanosphere transaction. If information later becomes available which would indicate adjustments are required to the purchase price allocation, such adjustments will be recognized in the income statement. The excess of the purchase price over the fair value of the tangible net assets, liabilities and intangible assets acquired was recorded to goodwill. 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 ended September 30, 2016 as these inventory items were sold. The Acquisition contributed $16.9 million of revenue and net losses of $9.6 million , during the year ended December 31, 2016 . Unaudited Pro forma Financial Information Nanosphere's results of operations have been included in the Company's financial statements from the date of 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. Twelve Months Ended December 31, 2016 2015 (unaudited) (in thousands) Revenue $ 284,591 $ 258,780 Income from operations 11,262 6,595 Net income 8,302 14,036 Net income per share, basic 0.19 0.33 Shares used in computing net income per share, basic 42,584 42,091 Net income per share, diluted 0.19 0.33 Shares used in computing net income per share, diluted 43,013 42,637 |
RESTRUCTURING (Notes)
RESTRUCTURING (Notes) | 12 Months Ended |
Dec. 31, 2016 | |
RESTRUCTURING [Abstract] | |
Restructuring and Related Costs [Table Text Block] | NOTE 3 — REORGANIZATION Following the acquisition of Nanosphere, and to better focus on the Company's core business, the Company conducted a reorganization in December 2016. The reorganization included a headcount reduction of approximately 40 people, a reallocation of responsibilities within the research and development organization and a significant reduction of biodefense efforts. The Company measured and accrued the liabilities associated with employee separation costs at fair value as of the date the plan was announced and terminations were communicated to employees, which primarily included severance pay and other separation costs such as outplacement services and benefits. As a result of the organizational change, the Company eliminated approximately 4% of its aggregate workforce. The Company recognized a charge of approximately $2.5 million in the fourth quarter of 2016 in conjunction with these activities. 2016 Reorganization Plan Year Ended December 31, 2016 Employee separation costs 2,525 Total charges $ 2,525 Recorded to cost of revenue 244 Recorded to reorganization costs $ 2,281 Rollforward of Accrued Reorganization December 31, 2016 Balance at beginning of year $ — Total reorganization charges 2,525 Employee separation payments (1,054 ) Balance at end of period $ 1,471 The remaining reorganization accrual balance is expected to be paid in January 2017. As such, it is recorded as a current liability within accrued liabilities on the consolidated balance sheet as of December 31, 2016 . |
INVESTMENTS
INVESTMENTS | 12 Months Ended |
Dec. 31, 2016 | |
Investments [Abstract] | |
INVESTMENTS | NOTE 4 – INVESTMENTS Available-for-sale securities consisted of the following as of December 31, 2016 (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 $ 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 (Loss) Losses in Accumulated Other Comprehensive Income (Loss) 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 There were $19.5 million in proceeds from the sales of available-for-sale securities during the year ended December 31, 2016 , which were used to partially fund the Acquisition. There were no proceeds from the sales of available-for-sale securities for the year ended December 31, 2015 . 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 were included in accumulated other comprehensive income (loss) as of December 31, 2015 . There were no available-for-sale debt securities as of December 31, 2016 . All of the Company's available-for-sale securities with gross unrealized losses as of December 31, 2015 had been in a loss position for less than 12 months. |
ACCOUNTS RECEIVABLE AND RESERVE
ACCOUNTS RECEIVABLE AND RESERVES | 12 Months Ended |
Dec. 31, 2016 | |
Receivables [Abstract] | |
ACCOUNTS RECEIVABLE AND RESERVES | NOTE 5 — 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): 2016 2015 Accounts receivable $ 28,181 $ 29,057 Accounts receivable acquired through the Nanosphere acquisition 4,603 — Less: Allowance for doubtful accounts (419 ) (204 ) $ 32,365 $ 28,853 The following table summarizes the changes in the allowance for doubtful accounts (in thousands): 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 Increases charged to costs and expenses 320 Write-offs of uncollectible accounts (105 ) Balance at December 31, 2016 $ 419 |
INVENTORIES, NET
INVENTORIES, NET | 12 Months Ended |
Dec. 31, 2016 | |
Inventory, Net [Abstract] | |
INVENTORIES, NET | NOTE 6 — INVENTORIES, NET Inventories consisted of the following at December 31 (in thousands): 2016 2015 Parts and supplies $ 22,960 $ 15,296 Work-in-progress 6,268 8,797 Finished goods 11,547 7,159 $ 40,775 $ 31,252 The Company has non-cancellable purchase commitments with certain of its component suppliers in the amount of approximately $21.4 million at December 31, 2016 . 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, 2016 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | NOTE 7 — 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, 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 December 31, 2016 and 2015 (in thousands): Fair Value Measurements at December 31, 2016 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 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 |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | NOTE 8 — PROPERTY AND EQUIPMENT Property and equipment consisted of the following at December 31 (in thousands): 2016 2015 Laboratory equipment $ 48,334 $ 41,795 Leasehold improvements 34,660 28,651 Computer equipment 3,672 5,274 Purchased software 22,009 20,782 Furniture and fixtures 5,242 5,020 Assets on loan/rental 12,517 8,596 Capital lease equipment 1,321 1,321 127,755 111,439 Less: Accumulated depreciation (70,380 ) (63,643 ) $ 57,375 $ 47,796 Depreciation expense was $11.5 million , $9.4 million , and $8.9 million for the years ended December 31, 2016 , 2015 , and 2014 , respectively. |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS | NOTE 9 — GOODWILL AND OTHER INTANGIBLE ASSETS On June 30, 2016, the Company completed the Acquisition. As a result of the Acquisition, the Company recorded approximately $35.9 million of goodwill and $40.6 million of other identifiable intangible assets. The goodwill is derived from expected synergies from combining operations of the Company and Nanosphere. The Company has finalized the purchase price allocation for the Acquisition. The Company's goodwill is not expected to be deductible for tax purposes. The changes in the carrying amount of goodwill during the period are as follows (in thousands): 2016 2015 Balance at beginning of year $ 49,619 $ 49,619 Acquisition of Nanosphere 35,862 — Balance at end of year $ 85,481 $ 49,619 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 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 2016 Balance at December 31, 2015 69,102 7,797 1,652 — 78,551 Acquisition of Nanosphere 12,283 11,300 4,012 12,982 40,577 Balance at December 31, 2016 81,385 19,097 5,664 12,982 119,128 Less: accumulated amortization: Accumulated amortization balance at December 31, 2015 (21,646 ) (3,667 ) (756 ) — (26,069 ) Amortization expense (6,491 ) (1,371 ) (356 ) — (8,218 ) Accumulated amortization balance at December 31, 2016 (28,137 ) (5,038 ) (1,112 ) — (34,287 ) Net balance at December 31, 2016 $ 53,248 $ 14,059 $ 4,552 $ 12,982 $ 84,841 Weighted average life (in years) 10 10 10 The in-process research and development project is the development of the next generation Verigene System (currently referred to as Project Atlas). The current in process research and development project is scheduled to be completed in 2018. The estimated cost to complete this project are between $20.0 million and $22.0 million . The estimated aggregate amortization expense for the next five years and thereafter is as follows (in thousands): 2017 $ 8,856 2018 8,666 2019 8,666 2020 8,666 2021 8,307 Thereafter 28,698 $ 71,859 IPR&D 12,982 $ 84,841 |
OTHER COMPREHENSIVE (LOSS) INCO
OTHER COMPREHENSIVE (LOSS) INCOME OTHER COMPREHENSIVE (LOSS) INCOME | 12 Months Ended |
Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |
Comprehensive Income (Loss) Note [Text Block] | NOTE 10 — 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 income (loss), net of tax (in thousands): Foreign Currency Items Available for Sale Investments Accumulated Other Comprehensive Income Items Balance at December 31, 2015 $ (1,258 ) $ (38 ) $ (1,296 ) Other comprehensive loss before reclassifications (434 ) 38 (396 ) Net current-period other comprehensive loss (434 ) 38 (396 ) Balance at December 31, 2016 $ (1,692 ) $ — $ (1,692 ) The following table presents the tax expense allocated to each component of other comprehensive loss (in thousands): Twelve Months Ended December 31, 2016 Before Tax Tax Benefit Net of Tax Foreign currency translation adjustments $ (434 ) $ — $ (434 ) Unrealized losses on available-for-sale investments 44 (6 ) 38 Other comprehensive loss $ (390 ) $ (6 ) $ (396 ) |
OTHER ASSETS
OTHER ASSETS | 12 Months Ended |
Dec. 31, 2016 | |
Other Assets [Abstract] | |
OTHER ASSETS | NOTE 11 — OTHER ASSETS Other long-term assets consisted of the following at December 31 (in thousands): 2016 2015 Purchased technology rights (net of accumulated amortization of $6,453 and $3,826 in 2016 and 2015, respectively) $ 3,567 $ 1,922 Cost-method investments 2,000 1,000 Other 1,218 931 $ 6,785 $ 3,853 For the years ended December 31, 2016 and 2015 , the Company recognized amortization expense related to the amortization of purchased technology rights of approximately $394,000 and $474,000 , respectively. Future amortization expense is estimated to be $472,000 in 2017 , $417,000 in 2018 , $405,000 in 2019 , $305,000 in 2020 , $272,000 in 2021 and $1,696,000 thereafter. Non-Marketable Securities and Other-Than-Temporary Impairment During the year ended December 31, 2016 , the Company made a $1.0 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 another 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. One of the Company's other minority interests 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 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 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, 2016 | |
Accrued Liabilities, Current [Abstract] | |
ACCRUED LIABILITIES | NOTE 12 — ACCRUED LIABILITIES Accrued liabilities consisted of the following as of December 31 (in thousands): 2016 2015 Compensation and employee benefits $ 17,229 $ 10,946 Income and other taxes 816 1,261 Warranty costs 675 553 Other 4,084 2,392 $ 22,804 $ 15,152 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, 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 Warranty expenses (1,322 ) Accrual for warranty costs 1,444 Accrued warranty costs at December 31, 2016 $ 675 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 13 — INCOME TAXES The components of income before income taxes for the years ended December 31 are as follows (in thousands): 2016 2015 2014 Domestic $ 2,281 $ 7,472 $ 12,762 Foreign 17,334 25,572 15,323 Total $ 19,615 $ 33,044 $ 28,085 The components of the (benefit) provision for income taxes attributable to continuing operations for the years ended December 31 are as follows (in thousands): 2016 2015 2014 Current: Federal $ 1,545 $ 490 $ 2,191 Foreign 204 174 (1,833 ) State 449 58 305 Total current $ 2,198 $ 722 $ 663 Deferred: Federal (215 ) (13 ) (2,471 ) Foreign 3,813 (4,422 ) (10,329 ) State 5 (104 ) 1,179 Total deferred 3,603 (4,539 ) (11,621 ) Total (benefit) provision for income taxes $ 5,801 $ (3,817 ) $ (10,958 ) 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, 2016 2015 2014 Statutory tax rate 35.0 % 35.0 % 35.0 % State taxes, net of federal benefit 1.5 % (0.2 )% 4.9 % Permanent items 9.5 % 0.6 % (1.9 )% Effect of foreign operations (9.0 )% (8.0 )% (3.0 )% Research and incentive tax credit generated (14.3 )% (3.0 )% (9.5 )% Valuation allowance 5.5 % (32.1 )% (39.5 )% Income tax reserves 1.3 % (0.5 )% (0.4 )% Deferred charge 0.0 % 0.0 % (9.1 )% Worthless stock deduction 0.0 % 0.0 % (6.2 )% Nontaxable cancellation of debt 0.0 % 0.0 % (10.7 )% Stock compensation deferred 0.0 % (3.5 )% 0.0 % Other 0.1 % 0.1 % 1.4 % 29.6 % (11.6 )% (39.0 )% 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. Significant components of the Company’s deferred tax assets and liabilities as of December 31 are as follows (in thousands): 2016 2015 Deferred tax assets: Accrued liabilities and other $ 7,582 $ 5,705 Net operating loss and credit carryforwards 81,404 50,628 Deferred revenue 2,628 2,400 Depreciation and amortization 4,980 5,843 Stock compensation and other 7,673 6,591 Gross deferred tax assets 104,267 71,167 Valuation allowance (27,879 ) (14,867 ) Total deferred tax assets $ 76,388 $ 56,300 Deferred tax liabilities: Accrued liabilities and other $ (1,333 ) $ (1,313 ) Depreciation and amortization (31,631 ) (22,239 ) Stock compensation — — Acquired intangibles (927 ) (927 ) Total deferred tax liabilities (33,891 ) (24,479 ) Net deferred tax assets $ 42,497 $ 31,821 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 increased approximately $13.0 million in 2016 from 2015 primarily due to recording valuation allowances against net deferred tax assets acquired as part of the acquisition of Nanosphere in 2016 and recording valuation allowances on the net deferred tax assets of our Dutch subsidiary. Based on our income projections in the United States and Netherlands, we do not expect to utilize portions of net operating loss carryforwards before statutory expiration dates and thus we determined that it was more likely than not that a portion of these United States and Dutch deferred tax assets would not be realized. At December 31, 2016 , the Company had gross federal, state and foreign net operating loss carryforwards of approximately $81.2 million , $400.6 million , and $10.0 million respectively. These losses expire beginning in 2020. Federal and state net operating losses of approximately $81.2 million and $400.6 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 $13.4 million , $3.6 million , and $13.4 million , respectively. These credits begin to expire in 2018 , except for approximately $3.6 million which have an indefinite carryforward period. 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 $31.3 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 $26.6 million at December 31, 2016 , $17.2 million at December 31, 2015 and $1.4 million at December 31, 2014 . The increase in undistributed earnings in 2016 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, 2016 and December 31, 2015 , the Company had recorded gross unrecognized tax benefits of approximately $2.6 million and $2.2 million , respectively. All of the unrecognized tax benefits as of December 31, 2016 , 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, 2016 and 2015 , the Company recognized approximately $2,700 and $47,600 in tax related interest and penalties, respectively. Reserves for interest and penalties as of December 31, 2016 and 2015 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): 2016 2015 Balance at beginning of year $ 2,184 $ 2,318 Additions based on tax positions related to the current year 481 168 Additions for tax positions of prior years 12 — Reductions for tax positions of prior years — (9 ) Lapse of statute of limitations — (293 ) Balance at end of year $ 2,677 $ 2,184 As of December 31, 2016 , 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 2010 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 2010 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 2012 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, 2016 | |
Earnings Per Share [Abstract] | |
NET INCOME PER SHARE | NOTE 14 — 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, 2016 2015 2014 Numerator: Net income $ 13,814 $ 36,861 $ 39,043 Denominator: Denominator for basic net income per share - weighted average common stock outstanding 42,584 42,091 41,558 Effect of dilutive securities: Stock options and awards 429 546 598 Denominator for diluted net income per share - weighted average shares outstanding - diluted 43,013 42,637 42,156 Basic net income per share $ 0.32 $ 0.88 $ 0.94 Diluted net income per share $ 0.32 $ 0.86 $ 0.93 Restricted stock awards (RSAs) and stock options to acquire 2,017,000 , 1,252,000 , and 442,000 shares for the years ended December 31, 2016 , 2015 and 2014 , 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, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
EMPLOYEE BENEFIT PLANS AND STOCK-BASED COMPENSATION | NOTE 15 — 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, 2016 and 2015 , there was no preferred stock issued and outstanding. Stock-Based Compensation At December 31, 2016 , 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, 2016 , 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 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, 2016 , there were approximately 4.0 million shares authorized for future issuance under the Company’s Equity Incentive Plan and approximately 158,000 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 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 19, 2013 the Compensation Committee of the Board adopted the 2013 Long Term Incentive Plan (2013 LTIP). Awards under the 2013 LTIP 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 2013 LTIP were initially unvested and represented the maximum amount of shares that participants may have received under the 2013 LTIP, 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 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 was 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 was dependent upon Luminex's fully diluted earnings per share for the year ended December 31, 2015, as further described in the 2013 LTIP. The range of targets included a minimum threshold of $1.06 per share, a target of $1.18 per share, and a maximum goal of $1.36 per share. No shares were earned for this goal under the 2013 LTIP. Subsequent to 2013, no further grants of RSUs were made pursuant to a long term incentive plan. On March 22, 2016, the Compensation Committee approved an award of stock options (the “Performance Options”) to the Company’s named executive officers and certain other executives that vest over four years based on achievement of certain operating profit and revenue targets in 2016. The Performance Options have an exercise price equal to the closing market price for the Company’s common stock on the NASDAQ Global Select Market on the date of grant (March 22, 2016) and expire seven years from the date of grant. The Performance Options are measured over a performance period ending on December 31, 2016. Following the end of the fiscal year, the Committee will determine the number of Performance Options which remain eligible to vest based upon the level of achievement of an established Company performance goal (the "Company Financial Goal"). If the Company fails to meet the threshold performance for the performance period, no Performance Options will be eligible to vest. Minimum vesting for minimum threshold performance starts at 30% of the target value for the Company Financial Goal. If the Company’s performance exceeds the target performance, the recipient may receive additional Performance Options above the target number, subject to a maximum of 200% of the target award. The Performance Options that remain eligible to vest after the determination date will vest 25% on each of the first four anniversaries of the grant date. In the event of a change of control of the Company before the end of the performance period, the Performance Options will automatically vest based on the greater of actual achievement of the pro-rated Company Financial Goal as of the date of the change of control or 100% of target performance, as determined by the Committee in its sole discretion. The Performance Options are exercisable into shares of the Company’s common stock. 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 dividend yield is based on our history and expectation of dividend payouts at the time of grant. The assumptions used are summarized in the following table: 2016 2015 2014 Dividend yield — % — % — % Expected volatility 0.5 0.5 0.5 Risk-free rate of return 1.4 % 1.6 % 1.8 % 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 4.87 years 0 Weighted average fair value at grant date $ 7.86 $ 6.73 $ 10.75 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, 2014 , 2015 and 2016 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, 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 Granted 886 19.21 Exercised (178 ) 18.55 Cancelled or expired (220 ) 17.83 Outstanding at December 31, 2016 2,180 $ 18.06 5.37 $ 5,086 Vested at December 31, 2016 and expected to vest 2,148 $ 18.05 5.36 $ 5,020 Exercisable at December 31, 2016 341 $ 19.49 3.87 $ 489 During the years ended December 31, 2016 , 2015 and 2014 , the total exercise intrinsic value of stock options exercised was $0.6 million , $0.8 million and $2.8 million , respectively, and the total fair value of stock options that vested was $1.6 million , $2.5 million and $2.4 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 $9.9 million of total unrecognized compensation costs related to stock options at December 31, 2016 that are expected to be recognized over a weighted-average period of 2.6 . The Company’s restricted share activity for the years ended December 31, 2014 , 2015 and 2016 is as follows: Restricted Stock Awards Shares (in thousands) Weighted Average Grant Price 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 Granted 301 19.76 Vested (231 ) 19.75 Cancelled or expired (96 ) 18.78 Non-vested at December 31, 2016 810 $ 18.74 Restricted Stock Units Shares (in thousands) Weighted Average Remaining Contractual Life (in years) Aggregate Intrinsic Value (in thousands) 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 Granted 99 Vested (83 ) Cancelled or expired (61 ) Non-vested at December 31, 2016 457 0.90 $ 9,240 Vested at December 31, 2016 and expected to vest 451 0.87 $ 9,127 Exercisable at December 31, 2016 289 0.00 $ 5,846 As of December 31, 2016 , there was $0.0 million of unrecognized compensation cost related to RSAs and RSUs. That cost is expected to be recognized over a weighted average-period of 2.0 years . The total fair value of restricted shares vested during the year ended December 31, 2016 , 2015 and 2014 was $7.0 million , $8.5 million and $6.5 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, 2016 , the Company awarded 301,419 shares of RSAs, which had a fair value at the date of grant ranging from $19.48 – $22.59 . 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, 2016 , the Company awarded 99,144 shares of RSUs, which had a fair value at the date of grant ranging from $19.48 – $20.62 . 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 . Compensation under these RSAs and RSUs was charged to expense over the restriction period and amounted to $7.9 million , $8.1 million , and $8.1 million in 2016 , 2015 and 2014 , respectively. There were no significant stock compensation costs capitalized into assets as of December 31, 2016 , 2015 or 2014 . The Company received $3.3 million , $1.9 million and $3.7 million for the exercise of stock options during the years ended December 31, 2016 , 2015 and 2014 , 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, 2016 2015 2014 Cost of revenue $ 1,247 $ 975 $ 981 Research and development 2,658 2,422 2,573 Selling, general and administrative 7,916 7,458 5,994 Stock-based compensation costs reflected in net income $ 11,821 $ 10,855 $ 9,548 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 2016 , 2015 and 2014 , each employee could contribute a percentage of compensation up to a maximum of $18,000 , $18,000 , 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 2016 , 2015 and 2014 were $3.2 million , $2.8 million and $2.5 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 purchase of up to 500,000 shares of the Company's common stock by 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, 2016 , 2015 and 2014 , 341,844 shares, 260,536 shares and 181,401 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 2016 , 2015 and 2014 , 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: 2016 Assumptions: Risk-free interest rates 0.04% to 0.05% Expected life 0.4 to 0.5 years Expected volatility 0.47 Dividend yield — % Reserved Shares of Common Stock At December 31, 2016 and 2015 , the Company had reserved 6,816,465 and 7,485,118 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, 2016 : Options Outstanding Shares Available for Future Issuance Total Shares Reserved Equity Incentive Plan 2,635,591 4,022,718 6,658,309 ESPP — 158,156 158,156 2,635,591 4,180,874 6,816,465 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 16 — 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 2016 , 2015 and 2014 totaled approximately $5.8 million , $4.7 million and $4.5 million , respectively. Minimum annual lease commitments as of December 31, 2016 under non-cancellable leases for each of the next five years and in the aggregate were as follows (in thousands): 2017 $ 4,351 2018 4,018 2019 3,435 2020 1,740 2021 999 Thereafter 1,885 Total $ 16,428 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, 2016 the Company had approximately $21.4 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 $2.6 million , $1.2 million and $2.4 million for the years ended December 31, 2016 , 2015 and 2014 , 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. 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. |
GUARANTEES
GUARANTEES | 12 Months Ended |
Dec. 31, 2016 | |
Guarantees [Abstract] | |
GUARANTEES | NOTE 17 — 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, 2016 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | NOTE 18 — 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 2016 2015 2014 2016 2015 2014 Domestic $ 222,706 $ 200,427 $ 187,945 $ 53,283 $ 43,910 $ 36,826 Foreign: Europe 19,211 17,034 17,819 1,079 1,358 1,093 Asia 20,733 12,794 14,863 730 429 261 Canada 3,738 3,239 3,664 2,274 2,085 1,746 Other 4,251 4,214 2,692 9 14 19 $ 270,639 $ 237,708 $ 226,983 $ 57,375 $ 47,796 $ 39,945 The Company's aggregate foreign currency transaction losses of $121,000 , $841,000 and $16,000 were included in determining the consolidated results for the years ended December 31, 2016 , 2015 and 2014 , respectively. |
RECENT ACCOUNTING PRONOUNCEMENT
RECENT ACCOUNTING PRONOUNCEMENTS | 12 Months Ended |
Dec. 31, 2016 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
RECENT ACCOUNTING PRONOUNCEMENTS | NOTE 19 — 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 guidance allows companies to estimate the number of stock awards they expect to vest, and the guidance also revises 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 $472,000 of income tax expense in our income tax provision for the twelve months ended December 31, 2016 . The Company has 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 October 2016, the FASB issued guidance on income taxes which requires companies to recognize the income tax effects of intercompany sales and transfers of assets, other than inventory, in the income statement as income tax expense (or benefit) in the period in which the transfer occurs. The guidance is effective for annual periods beginning after December 15, 2017. Early adoption is permitted. The Company is currently evaluating the impact of the adoption of this guidance on its consolidated financial position and results of operations. The Company does not anticipate that this guidance will have a material impact on its consolidated financial statements. 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 cost-method investments discussed in Note 4 - 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 2017 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 currently anticipates adopting the new standard effective January 1, 2018. The new standard also permits two methods of adoption: retrospectively to each prior reporting period presented (full retrospective method), or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application (the modified retrospective method). The Company currently anticipates adopting the standard using the modified retrospective method. 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, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information [Text Block] | NOTE 20 — 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 $ 62,981 $ 64,166 $ 71,221 $ 72,271 Gross profit 44,806 44,921 45,665 44,263 Income (loss) from operations 11,801 7,500 4,028 (2,343 ) Net income (loss) 8,770 5,653 2,751 (3,360 ) Basic income (loss) per common share 0.21 0.13 0.06 (0.08 ) Diluted income (loss) per common share 0.21 0.13 0.06 (0.08 ) 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 (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 13 – Income Taxes. See Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations for further discussion. |
SUBSEQUENT EVENTS (Notes)
SUBSEQUENT EVENTS (Notes) | 12 Months Ended |
Dec. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | SUBSEQUENT EVENTS On February 21, 2017 , the Board of Directors declared a cash dividend on the Company’s common stock of $0.06 per share. The dividend will be payable to stockholders of record as of March 24, 2017 and will be paid on April 14, 2017 . The Company's intent is to pay a continuing dividend on a quarterly basis. |
DESCRIPTION OF BUSINESS AND S28
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
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, called systems and assays, to various types of testing laboratories. We have a large base of installed 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 systems. |
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. |
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, 2016 and 2015 . See Note 7 for further details concerning fair value measurements. |
Supplemental Cash Flow Statement Information | Supplemental Cash Flow Statement Information (in thousands) Year Ended December 31, 2016 2015 2014 Cash paid during the period for taxes $ 385 $ 578 $ 1,193 Cash (received) paid during the period for interest and penalties (3 ) 96 157 Cash paid during the period for Nanosphere debt interest 391 — — Cash paid during the period for Nanosphere debt prepayment penalty 1,500 — — Effect of acquisitions: Fair value of tangible assets acquired 34,372 — — Liabilities assumed (25,391 ) — — Cost in excess of fair value of assets acquired 35,862 — — Acquired identifiable intangible assets 27,595 — — Deferred tax assets (liabilities), net 6,989 — — In-process research and development 12,982 — — Total purchase price 92,409 — — Less cash and cash equivalents acquired 24,311 — — Net cash paid for business acquisition $ 68,098 $ — $ — |
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 20% , 24% and 21% of our total revenues in 2016 , 2015 and 2014 , respectively. Thermo Fisher Scientific, Inc. accounted for 13% , 13% and 17% of our total revenues in 2016 , 2015 and 2014 , respectively. Bio-Rad Laboratories, Inc. accounted for 7% , 8% and 7% of our total revenues in 2016 , 2015 and 2014 , respectively. No other customer accounted for more than 10% of our total revenues in 2016 , 2015 or 2014 . |
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 typically 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, ARIES ® and Verigene 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, 2016 . In 2016 and 2015 , the Company estimated the fair value of the reporting unit using a fair-value-based approach based on the market capitalization. In 2014 , 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 2016 , 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 2016 , 2015 or 2014 . 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 may enter into arrangements for system sales that are multiple-element arrangements, including services such as installation and multiple products. When such arrangements include installation, no revenue is generally recognized until installation and delivery is complete. When such arrangements include multiple products, all of the products are generally shipped at the same time. As a result, the Company generally does not need to defer revenue for any undelivered elements. However, in situations where revenue is deferred for an undelivered element, 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. 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 $2.2 million , $2.3 million and $2.3 million for 2016 , 2015 and 2014 , 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. 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 five 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 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. |
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. |
DESCRIPTION OF BUSINESS AND S29
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Supplemental Cash Flow Statement Information | Supplemental Cash Flow Statement Information (in thousands) Year Ended December 31, 2016 2015 2014 Cash paid during the period for taxes $ 385 $ 578 $ 1,193 Cash (received) paid during the period for interest and penalties (3 ) 96 157 Cash paid during the period for Nanosphere debt interest 391 — — Cash paid during the period for Nanosphere debt prepayment penalty 1,500 — — Effect of acquisitions: Fair value of tangible assets acquired 34,372 — — Liabilities assumed (25,391 ) — — Cost in excess of fair value of assets acquired 35,862 — — Acquired identifiable intangible assets 27,595 — — Deferred tax assets (liabilities), net 6,989 — — In-process research and development 12,982 — — Total purchase price 92,409 — — Less cash and cash equivalents acquired 24,311 — — Net cash paid for business acquisition $ 68,098 $ — $ — |
BUSINESS COMBINATIONS (Tables)
BUSINESS COMBINATIONS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
Business Combination Disclosure [Text Block] | BUSINESS COMBINATION 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 an additional $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 outstanding warrants for the purchase of 1.5 million shares of commons stock of Nanosphere 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 $24.3 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 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 $ 34,372 Intangible assets subject to amortization 27,595 In process research and development 12,982 Long-term debt and accrued interest (25,391 ) Deferred tax assets, net of deferred tax liabilities 6,989 Goodwill 35,862 Total purchase price 92,409 Less cash and cash equivalents acquired (24,311 ) Net cash paid for business acquisition $ 68,098 $40.6 million of intangible assets have been identified as $27.6 million of acquired identifiable intangible assets, which are subject to amortization, and $13.0 million of in-process research and development (IPR&D) that has not yet reached technological feasibility as of the acquisition date. Technological feasibility is primarily established by obtaining regulatory approval to perform certain diagnostic testing on the Company's systems. The IPR&D project relates to the next generation Verigene System which is expected to be completed in 2018. The fair value of the IPR&D has been estimated using a cost-to-recreate methodology based on the costs that would be incurred to recreate the IPR&D in its existing state as of the acquisition date. The Company finalized the purchase price allocation for the Nanosphere transaction. If information later becomes available which would indicate adjustments are required to the purchase price allocation, such adjustments will be recognized in the income statement. The excess of the purchase price over the fair value of the tangible net assets, liabilities and intangible assets acquired was recorded to goodwill. 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 ended September 30, 2016 as these inventory items were sold. The Acquisition contributed $16.9 million of revenue and net losses of $9.6 million , during the year ended December 31, 2016 . Unaudited Pro forma Financial Information Nanosphere's results of operations have been included in the Company's financial statements from the date of 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. Twelve Months Ended December 31, 2016 2015 (unaudited) (in thousands) Revenue $ 284,591 $ 258,780 Income from operations 11,262 6,595 Net income 8,302 14,036 Net income per share, basic 0.19 0.33 Shares used in computing net income per share, basic 42,584 42,091 Net income per share, diluted 0.19 0.33 Shares used in computing net income per share, diluted 43,013 42,637 |
Business Acquisition, Pro Forma Information [Table Text Block] | 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. Twelve Months Ended December 31, 2016 2015 (unaudited) (in thousands) Revenue $ 284,591 $ 258,780 Income from operations 11,262 6,595 Net income 8,302 14,036 Net income per share, basic 0.19 0.33 Shares used in computing net income per share, basic 42,584 42,091 Net income per share, diluted 0.19 0.33 Shares used in computing net income per share, diluted 43,013 42,637 |
RESTRUCTURING (Tables)
RESTRUCTURING (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
RESTRUCTURING [Abstract] | |
Restructuring and Related Activities Disclosure [Text Block] | 2016 Reorganization Plan Year Ended December 31, 2016 Employee separation costs 2,525 Total charges $ 2,525 Recorded to cost of revenue 244 Recorded to reorganization costs $ 2,281 Rollforward of Accrued Reorganization December 31, 2016 Balance at beginning of year $ — Total reorganization charges 2,525 Employee separation payments (1,054 ) Balance at end of period $ 1,471 |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Investments [Abstract] | |
Components of available-for-sale securities | Available-for-sale securities consisted of the following as of December 31, 2016 (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 $ 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 (Loss) Losses in Accumulated Other Comprehensive Income (Loss) 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 |
ACCOUNTS RECEIVABLE AND RESER33
ACCOUNTS RECEIVABLE AND RESERVES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Receivables [Abstract] | |
Components of Accounts Receivable | Accounts receivable consisted of the following at December 31 (in thousands): 2016 2015 Accounts receivable $ 28,181 $ 29,057 Accounts receivable acquired through the Nanosphere acquisition 4,603 — Less: Allowance for doubtful accounts (419 ) (204 ) $ 32,365 $ 28,853 |
Changes in Allowance for Doubtful Accounts | The following table summarizes the changes in the allowance for doubtful accounts (in thousands): 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 Increases charged to costs and expenses 320 Write-offs of uncollectible accounts (105 ) Balance at December 31, 2016 $ 419 |
INVENTORIES, NET (Tables)
INVENTORIES, NET (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Inventory, Net [Abstract] | |
Inventory | Inventories consisted of the following at December 31 (in thousands): 2016 2015 Parts and supplies $ 22,960 $ 15,296 Work-in-progress 6,268 8,797 Finished goods 11,547 7,159 $ 40,775 $ 31,252 |
FAIR VALUE MEASUREMENT (Tables)
FAIR VALUE MEASUREMENT (Tables) | 12 Months Ended |
Dec. 31, 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 December 31, 2016 and 2015 (in thousands): Fair Value Measurements at December 31, 2016 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 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 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property and equipment consisted of the following at December 31 (in thousands): 2016 2015 Laboratory equipment $ 48,334 $ 41,795 Leasehold improvements 34,660 28,651 Computer equipment 3,672 5,274 Purchased software 22,009 20,782 Furniture and fixtures 5,242 5,020 Assets on loan/rental 12,517 8,596 Capital lease equipment 1,321 1,321 127,755 111,439 Less: Accumulated depreciation (70,380 ) (63,643 ) $ 57,375 $ 47,796 |
GOODWILL AND OTHER INTANGIBLE37
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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): 2016 2015 Balance at beginning of year $ 49,619 $ 49,619 Acquisition of Nanosphere 35,862 — Balance at end of year $ 85,481 $ 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 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 2016 Balance at December 31, 2015 69,102 7,797 1,652 — 78,551 Acquisition of Nanosphere 12,283 11,300 4,012 12,982 40,577 Balance at December 31, 2016 81,385 19,097 5,664 12,982 119,128 Less: accumulated amortization: Accumulated amortization balance at December 31, 2015 (21,646 ) (3,667 ) (756 ) — (26,069 ) Amortization expense (6,491 ) (1,371 ) (356 ) — (8,218 ) Accumulated amortization balance at December 31, 2016 (28,137 ) (5,038 ) (1,112 ) — (34,287 ) Net balance at December 31, 2016 $ 53,248 $ 14,059 $ 4,552 $ 12,982 $ 84,841 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 years and thereafter is as follows (in thousands): 2017 $ 8,856 2018 8,666 2019 8,666 2020 8,666 2021 8,307 Thereafter 28,698 $ 71,859 IPR&D 12,982 $ 84,841 |
OTHER COMPREHENSIVE (LOSS) IN38
OTHER COMPREHENSIVE (LOSS) INCOME OTHER COMPREHENSIVE (LOSS) INCOME (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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 income (loss), net of tax (in thousands): Foreign Currency Items Available for Sale Investments Accumulated Other Comprehensive Income Items Balance at December 31, 2015 $ (1,258 ) $ (38 ) $ (1,296 ) Other comprehensive loss before reclassifications (434 ) 38 (396 ) Net current-period other comprehensive loss (434 ) 38 (396 ) Balance at December 31, 2016 $ (1,692 ) $ — $ (1,692 ) |
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, 2016 Before Tax Tax Benefit Net of Tax Foreign currency translation adjustments $ (434 ) $ — $ (434 ) Unrealized losses on available-for-sale investments 44 (6 ) 38 Other comprehensive loss $ (390 ) $ (6 ) $ (396 ) |
OTHER ASSETS (Tables)
OTHER ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Other Assets [Abstract] | |
Components of Other Assets | Other long-term assets consisted of the following at December 31 (in thousands): 2016 2015 Purchased technology rights (net of accumulated amortization of $6,453 and $3,826 in 2016 and 2015, respectively) $ 3,567 $ 1,922 Cost-method investments 2,000 1,000 Other 1,218 931 $ 6,785 $ 3,853 |
ACCRUED LIABILITIES (Tables)
ACCRUED LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accrued Liabilities, Current [Abstract] | |
Schedule of Accrued Liabilities [Table Text Block] | Accrued liabilities consisted of the following as of December 31 (in thousands): 2016 2015 Compensation and employee benefits $ 17,229 $ 10,946 Income and other taxes 816 1,261 Warranty costs 675 553 Other 4,084 2,392 $ 22,804 $ 15,152 |
Changes in warranty accrual | The following table summarizes the changes in the warranty accrual (in thousands): 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 Warranty expenses (1,322 ) Accrual for warranty costs 1,444 Accrued warranty costs at December 31, 2016 $ 675 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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): 2016 2015 2014 Domestic $ 2,281 $ 7,472 $ 12,762 Foreign 17,334 25,572 15,323 Total $ 19,615 $ 33,044 $ 28,085 |
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): 2016 2015 2014 Current: Federal $ 1,545 $ 490 $ 2,191 Foreign 204 174 (1,833 ) State 449 58 305 Total current $ 2,198 $ 722 $ 663 Deferred: Federal (215 ) (13 ) (2,471 ) Foreign 3,813 (4,422 ) (10,329 ) State 5 (104 ) 1,179 Total deferred 3,603 (4,539 ) (11,621 ) Total (benefit) provision for income taxes $ 5,801 $ (3,817 ) $ (10,958 ) |
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, 2016 2015 2014 Statutory tax rate 35.0 % 35.0 % 35.0 % State taxes, net of federal benefit 1.5 % (0.2 )% 4.9 % Permanent items 9.5 % 0.6 % (1.9 )% Effect of foreign operations (9.0 )% (8.0 )% (3.0 )% Research and incentive tax credit generated (14.3 )% (3.0 )% (9.5 )% Valuation allowance 5.5 % (32.1 )% (39.5 )% Income tax reserves 1.3 % (0.5 )% (0.4 )% Deferred charge 0.0 % 0.0 % (9.1 )% Worthless stock deduction 0.0 % 0.0 % (6.2 )% Nontaxable cancellation of debt 0.0 % 0.0 % (10.7 )% Stock compensation deferred 0.0 % (3.5 )% 0.0 % Other 0.1 % 0.1 % 1.4 % 29.6 % (11.6 )% (39.0 )% |
Deferred tax assets and liabilities | 2016 2015 Deferred tax assets: Accrued liabilities and other $ 7,582 $ 5,705 Net operating loss and credit carryforwards 81,404 50,628 Deferred revenue 2,628 2,400 Depreciation and amortization 4,980 5,843 Stock compensation and other 7,673 6,591 Gross deferred tax assets 104,267 71,167 Valuation allowance (27,879 ) (14,867 ) Total deferred tax assets $ 76,388 $ 56,300 Deferred tax liabilities: Accrued liabilities and other $ (1,333 ) $ (1,313 ) Depreciation and amortization (31,631 ) (22,239 ) Stock compensation — — Acquired intangibles (927 ) (927 ) Total deferred tax liabilities (33,891 ) (24,479 ) Net deferred tax assets $ 42,497 $ 31,821 |
Reconciliation of unrecognized tax benefits | A reconciliation of the beginning and ending balance of unrecognized tax benefits is as follows (in thousands): 2016 2015 Balance at beginning of year $ 2,184 $ 2,318 Additions based on tax positions related to the current year 481 168 Additions for tax positions of prior years 12 — Reductions for tax positions of prior years — (9 ) Lapse of statute of limitations — (293 ) Balance at end of year $ 2,677 $ 2,184 |
NET INCOME PER SHARE (Tables)
NET INCOME PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 2015 2014 Numerator: Net income $ 13,814 $ 36,861 $ 39,043 Denominator: Denominator for basic net income per share - weighted average common stock outstanding 42,584 42,091 41,558 Effect of dilutive securities: Stock options and awards 429 546 598 Denominator for diluted net income per share - weighted average shares outstanding - diluted 43,013 42,637 42,156 Basic net income per share $ 0.32 $ 0.88 $ 0.94 Diluted net income per share $ 0.32 $ 0.86 $ 0.93 |
STOCKHOLDERS' EQUITY, EMPLOYE43
STOCKHOLDERS' EQUITY, EMPLOYEE BENEFIT PLANS AND STOCK-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | |
Stock options activity | The Company’s stock option activity for the years ended December 31, 2014 , 2015 and 2016 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, 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 Granted 886 19.21 Exercised (178 ) 18.55 Cancelled or expired (220 ) 17.83 Outstanding at December 31, 2016 2,180 $ 18.06 5.37 $ 5,086 Vested at December 31, 2016 and expected to vest 2,148 $ 18.05 5.36 $ 5,020 Exercisable at December 31, 2016 341 $ 19.49 3.87 $ 489 |
Fair value assumptions used for stock-based compensation costs | The assumptions used are summarized in the following table: 2016 2015 2014 Dividend yield — % — % — % Expected volatility 0.5 0.5 0.5 Risk-free rate of return 1.4 % 1.6 % 1.8 % 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 4.87 years 0 Weighted average fair value at grant date $ 7.86 $ 6.73 $ 10.75 |
Restricted shares activity | The Company’s restricted share activity for the years ended December 31, 2014 , 2015 and 2016 is as follows: Restricted Stock Awards Shares (in thousands) Weighted Average Grant Price 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 Granted 301 19.76 Vested (231 ) 19.75 Cancelled or expired (96 ) 18.78 Non-vested at December 31, 2016 810 $ 18.74 Restricted Stock Units Shares (in thousands) Weighted Average Remaining Contractual Life (in years) Aggregate Intrinsic Value (in thousands) 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 Granted 99 Vested (83 ) Cancelled or expired (61 ) Non-vested at December 31, 2016 457 0.90 $ 9,240 Vested at December 31, 2016 and expected to vest 451 0.87 $ 9,127 Exercisable at December 31, 2016 289 0.00 $ 5,846 |
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, 2016 2015 2014 Cost of revenue $ 1,247 $ 975 $ 981 Research and development 2,658 2,422 2,573 Selling, general and administrative 7,916 7,458 5,994 Stock-based compensation costs reflected in net income $ 11,821 $ 10,855 $ 9,548 |
Reserved shares by plan | The following table summarizes the reserved shares by plan as of December 31, 2016 : Options Outstanding Shares Available for Future Issuance Total Shares Reserved Equity Incentive Plan 2,635,591 4,022,718 6,658,309 ESPP — 158,156 158,156 2,635,591 4,180,874 6,816,465 |
Employee Stock [Member] | |
Defined Benefit Plan Disclosure [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: 2016 Assumptions: Risk-free interest rates 0.04% to 0.05% 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, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of minimum lease commitments for the next five years | Minimum annual lease commitments as of December 31, 2016 under non-cancellable leases for each of the next five years and in the aggregate were as follows (in thousands): 2017 $ 4,351 2018 4,018 2019 3,435 2020 1,740 2021 999 Thereafter 1,885 Total $ 16,428 |
GEOGRAPHIC INFORMATION (Tables)
GEOGRAPHIC INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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 2016 2015 2014 2016 2015 2014 Domestic $ 222,706 $ 200,427 $ 187,945 $ 53,283 $ 43,910 $ 36,826 Foreign: Europe 19,211 17,034 17,819 1,079 1,358 1,093 Asia 20,733 12,794 14,863 730 429 261 Canada 3,738 3,239 3,664 2,274 2,085 1,746 Other 4,251 4,214 2,692 9 14 19 $ 270,639 $ 237,708 $ 226,983 $ 57,375 $ 47,796 $ 39,945 |
SELECTED QUARTERLY RESULTS (Tab
SELECTED QUARTERLY RESULTS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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 $ 62,981 $ 64,166 $ 71,221 $ 72,271 Gross profit 44,806 44,921 45,665 44,263 Income (loss) from operations 11,801 7,500 4,028 (2,343 ) Net income (loss) 8,770 5,653 2,751 (3,360 ) Basic income (loss) per common share 0.21 0.13 0.06 (0.08 ) Diluted income (loss) per common share 0.21 0.13 0.06 (0.08 ) 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 |
DESCRIPTION OF BUSINESS AND S47
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Concentration Risk [Line Items] | |||
Goodwill, Impairment Loss | $ 0 | $ 0 | $ 0 |
Supplemental Cash Flow Information [Abstract] | |||
Cash paid during the period for taxes | 385,000 | 578,000 | 1,193,000 |
Interest Income, Operating | (3,000) | ||
Cash paid during the period for interest and penalties | 391,000 | 96,000 | 157,000 |
Effect of acquisitions: | |||
Gain (Loss) on Extinguishment of Debt | 1,500,000 | ||
Payments of Debt Extinguishment Costs | 0 | 0 | |
Fair Value of Assets Acquired | 34,372,000 | ||
Liabilities Assumed | (25,391,000) | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Indefinite-Lived Intangible Assets | 35,862,000 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 27,595,000 | ||
Deferred Tax Assets Liabilities Noncurrent | 6,989,000 | ||
Research and Development in Process | 12,982,000 | ||
Business Combination, Consideration Transferred | 92,409,000 | ||
Cash Acquired from Acquisition | 24,311,000 | ||
Payments to Acquire Businesses, Net of Cash Acquired | $ 68,098,000 | $ 0 | $ 0 |
Laboratory Corporation of America (LabCorp) [Member] | |||
Concentration Risk [Line Items] | |||
Percentage of total revenues | 20.00% | 24.00% | 21.00% |
Thermo Fisher Scientific, Inc. [Member] | |||
Concentration Risk [Line Items] | |||
Percentage of total revenues | 13.00% | 13.00% | 17.00% |
Bio-Rad Laboratories, Inc. [Member] | |||
Concentration Risk [Line Items] | |||
Percentage of total revenues | 7.00% | 8.00% | 7.00% |
Minimum [Member] | |||
Concentration Risk [Line Items] | |||
Property, Plant and Equipment, Useful Life | 2 years | ||
Finite-Lived Intangible Asset, Useful Life | 5 years | ||
Maximum [Member] | |||
Concentration Risk [Line Items] | |||
Property, Plant and Equipment, Useful Life | 7 years | ||
Finite-Lived Intangible Asset, Useful Life | 15 years | ||
Research and Development Expense [Member] | Minimum [Member] | |||
Concentration Risk [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 1 year | ||
Research and Development Expense [Member] | Maximum [Member] | |||
Concentration Risk [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 5 years |
DESCRIPTION OF BUSINESS AND S48
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 2) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Assets [Abstract] | |||
Advertising expenses | $ 2.2 | $ 2.3 | $ 2.3 |
LabCorp, including acquired Genzyme Genetics [Member] | |||
Intangible Assets [Line Items] | |||
Concentration Risk, Percentage | 20.00% | 24.00% | 21.00% |
Thermo Fisher Scientific, Inc. [Member] | |||
Intangible Assets [Line Items] | |||
Concentration Risk, Percentage | 13.00% | 13.00% | 17.00% |
Bio Rad Laboratories Inc Member | |||
Intangible Assets [Line Items] | |||
Concentration Risk, Percentage | 7.00% | 8.00% | 7.00% |
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 | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Jun. 30, 2016 | Sep. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Business Acquisition [Line Items] | |||||||||||||
Revenue | $ 72,271,000 | $ 71,221,000 | $ 64,166,000 | $ 62,981,000 | $ 60,449,000 | $ 60,601,000 | $ 58,917,000 | $ 57,741,000 | $ 270,639,000 | $ 237,708,000 | $ 226,983,000 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 27,595,000 | 27,595,000 | |||||||||||
Net income | $ (3,360,000) | $ 2,751,000 | $ 5,653,000 | $ 8,770,000 | $ 20,377,000 | $ 6,402,000 | $ 2,629,000 | $ 7,453,000 | $ 13,814,000 | $ 36,861,000 | $ 39,043,000 | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | |||||||||
Weighted Average Number of Shares Outstanding, Basic | 42,584 | 42,091 | 41,558 | ||||||||||
Earnings Per Share, Diluted | $ (0.08) | $ 0.06 | $ 0.13 | $ 0.21 | $ 0.47 | $ 0.15 | $ 0.06 | $ 0.18 | $ 0.32 | $ 0.86 | $ 0.93 | ||
Weighted Average Number of Shares Outstanding, Diluted | 43,013 | 42,637 | 42,156 | ||||||||||
Research and Development in Process | $ 12,982,000 | ||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Indefinite-Lived Intangible Assets | 35,862,000 | ||||||||||||
Nanosphere [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Revenue | 16,900,000 | ||||||||||||
Business Acquisition, Percentage of Voting Interests Acquired | 100.00% | 100.00% | |||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 27,595,000 | $ 40,600,000 | $ 40,600,000 | 27,595,000 | |||||||||
Net income | 9,600,000 | ||||||||||||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |||||||||||
Business Acquisition, Share Price | $ 1.70 | $ 1.70 | |||||||||||
Business acquisition, warrants outstanding | 1,500 | 1,500 | |||||||||||
Business acquisition, consideration to warrant holders | $ 2,500,000 | $ 2,500,000 | |||||||||||
Business acquisition, consideration of cancelled options and restricted stock | 1,400,000 | 1,400,000 | |||||||||||
Business Acquisition, Cost of Acquired Entity, Cash Paid | 88,500,000 | 88,500,000 | |||||||||||
Revenues | 284,591,000 | $ 258,780,000 | |||||||||||
Business Acquisition, Pro Forma Net Income (Loss) | 11,262,000 | 6,595,000 | |||||||||||
Business Acquisition, Pro Forma Net Income (Loss) | $ 8,302,000 | $ 14,036,000 | |||||||||||
Business Acquisition, Pro Forma Earnings Per Share, Basic | $ 0.19 | $ 0.33 | |||||||||||
Weighted Average Number of Shares Outstanding, Basic | 42,584 | 42,091 | |||||||||||
Business Acquisition, Pro Forma Earnings Per Share, Diluted | $ 0.19 | $ 0.33 | |||||||||||
Weighted Average Number of Shares Outstanding, Diluted | 43,013 | 42,637 | |||||||||||
Business acquisition, net tangible assets assumed | 34,372,000 | 27,600,000 | 27,600,000 | $ 34,372,000 | |||||||||
Research and Development in Process | 12,982,000 | ||||||||||||
Research and Development in Process | 13,000,000 | ||||||||||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Inventory | $ 500,000 | ||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | (25,391,000) | 25,400,000 | 25,400,000 | (25,391,000) | |||||||||
Business acquisition, accrued interest on debt | 391,000 | 391,000 | |||||||||||
Business Combination Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Assets | 6,989,000 | 6,989,000 | |||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Indefinite-Lived Intangible Assets | 35,862,000 | ||||||||||||
Business Acquisition, Cost of Acquired Entity, Purchase Price | 92,409,000 | 92,409,000 | |||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents | (24,311,000) | (24,311,000) | |||||||||||
Business Acquisition, Transaction Costs | $ 1,500,000 | $ 1,500,000 | |||||||||||
Business Acquisition, Net Cash Paid | $ 68,098,000 | $ 68,098,000 |
RESTRUCTURING (Details)
RESTRUCTURING (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2016USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and Related Cost, Expected Number of Positions Eliminated | 40 | |||
Employee Separation Costs | $ 2,525 | |||
Total Restructuring Charges | 2,525 | |||
Employee Separation Payments | (1,054) | |||
Restructuring Charges Included In Cost Of Revenue | 244 | |||
Restructuring Charges And Associated Cost | 2,281 | |||
Restructuring Reserve | $ 1,471 | $ 1,471 | ||
Restructuring and Related Cost, Number of Positions Eliminated, Period Percent | 0.00% | |||
Restructuring Charges | $ 2,500 | $ 2,281 | $ 0 | $ 1,882 |
INVESTMENTS (Details)
INVESTMENTS (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Components of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 701 | $ 19,634 |
Gains in Accumulated Other Comprehensive Income (Loss) | 0 | 0 |
Losses in Accumulated Other Comprehensive Income (Loss) | 0 | (43) |
Estimated Fair Value | 701 | 19,591 |
Proceeds from Sale of Available-for-sale Securities | 19,500 | 0 |
Money Market Funds [Member] | ||
Components of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 701 | 144 |
Gains in Accumulated Other Comprehensive Income (Loss) | 0 | 0 |
Losses in Accumulated Other Comprehensive Income (Loss) | 0 | 0 |
Estimated Fair Value | 701 | 144 |
Current government-sponsored debt securities [Member] | ||
Components of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 0 | 10,000 |
Gains in Accumulated Other Comprehensive Income (Loss) | 0 | 0 |
Losses in Accumulated Other Comprehensive Income (Loss) | (10) | |
Estimated Fair Value | 0 | 9,990 |
Current Non-Government Sponsored Debt Securities [Member] | ||
Components of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 0 | 2,001 |
Gains in Accumulated Other Comprehensive Income (Loss) | 0 | |
Losses in Accumulated Other Comprehensive Income (Loss) | (3) | |
Estimated Fair Value | 0 | 1,998 |
Total Current Available-for-sale Securities [Member] | ||
Components of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 701 | 12,145 |
Gains in Accumulated Other Comprehensive Income (Loss) | 0 | 0 |
Losses in Accumulated Other Comprehensive Income (Loss) | 0 | (13) |
Estimated Fair Value | 701 | 12,132 |
Non-Current Government Sponsored Debt Securities [Member] | ||
Components of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 0 | 1,998 |
Gains in Accumulated Other Comprehensive Income (Loss) | 0 | 0 |
Losses in Accumulated Other Comprehensive Income (Loss) | (6) | |
Estimated Fair Value | 0 | 1,992 |
Non-Current Non-Government Sponsored Debt Securities [Member] | ||
Components of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 0 | 5,491 |
Gains in Accumulated Other Comprehensive Income (Loss) | 0 | 0 |
Losses in Accumulated Other Comprehensive Income (Loss) | (24) | |
Estimated Fair Value | 0 | 5,467 |
Total Non-Current Available-for-sale Securities [Member] | ||
Components of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 0 | 7,489 |
Gains in Accumulated Other Comprehensive Income (Loss) | 0 | 0 |
Losses in Accumulated Other Comprehensive Income (Loss) | 0 | (30) |
Estimated Fair Value | $ 0 | $ 7,459 |
ACCOUNTS RECEIVABLE AND RESER52
ACCOUNTS RECEIVABLE AND RESERVES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Receivables [Abstract] | |||
Accounts receivable, gross | $ 28,181 | $ 29,057 | |
Accounts Receivable, Related Parties | 4,603 | 0 | |
Less: Allowance for doubtful accounts | (419) | (204) | |
Accounts receivable, net | 32,365 | 28,853 | |
Allowance for Doubtful Accounts [Roll Forward] | |||
Balance | 204 | 4,357 | $ 4,579 |
Reductions charged to costs and expenses | 320 | 456 | (123) |
Write-offs of uncollectible accounts | (105) | (4,609) | (99) |
Balance | $ 419 | $ 204 | $ 4,357 |
INVENTORIES, NET (Details)
INVENTORIES, NET (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Inventory, Net [Abstract] | ||
Parts and supplies | $ 22,960 | $ 15,296 |
Work-in-progress | 6,268 | 8,797 |
Finished goods | 11,547 | 7,159 |
Inventory, net | 40,775 | $ 31,252 |
Non-cancelable purchase commitments | $ 21,400 |
FAIR VALUE MEASUREMENT (Details
FAIR VALUE MEASUREMENT (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands | Dec. 31, 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 | 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 | 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 | 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 | $ 0 | $ 0 |
PROPERTY AND EQUIPMENT (Details
PROPERTY AND EQUIPMENT (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 127,755 | $ 111,439 | |
Less: Accumulated amortization and depreciation | (70,380) | (63,643) | |
Property, plant and equipment, net | 57,375 | 47,796 | $ 39,945 |
Depreciation expense | 11,500 | 9,400 | $ 8,900 |
Laboratory Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 48,334 | 41,795 | |
Leasehold Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 34,660 | 28,651 | |
Computer Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 3,672 | 5,274 | |
Purchased Software [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 22,009 | 20,782 | |
Furniture and Fixtures [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 5,242 | 5,020 | |
Assets On Loan/Rental [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 12,517 | 8,596 | |
Capital Lease Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 1,321 | $ 1,321 |
GOODWILL AND OTHER INTANGIBLE56
GOODWILL AND OTHER INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Intangible Assets [Line Items] | ||
Minimum In-Process Research and Development Expense Estimated | $ 20,000 | |
Maximum In-Process Research and Development Expense Estimated | 22,000 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Indefinite-Lived Intangible Assets | 35,862 | |
Business Acquisition, Purchase Price Allocation, Amortizable Intangible Assets | 40,577 | |
Goodwill [Roll Forward] | ||
Balance at beginning of year | 49,619 | $ 49,619 |
Balance at end of period | 85,481 | 49,619 |
Asset Impairment Charges | $ 0 | |
Technology, Trade Secrets, and Know-how [Member] | ||
Intangible Assets [Line Items] | ||
Business Acquisition, Purchase Price Allocation, Amortizable Intangible Assets | $ 12,283 | |
Intangible assets, estimated lives | 10 years | 10 years |
Customer Lists and Contracts [Member] | ||
Intangible Assets [Line Items] | ||
Business Acquisition, Purchase Price Allocation, Amortizable Intangible Assets | $ 11,300 | |
Intangible assets, estimated lives | 10 years | 11 years |
GOODWILL AND OTHER INTANGIBLE57
GOODWILL AND OTHER INTANGIBLE ASSETS (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Intangible Assets [Line Items] | |||
Minimum In-Process Research and Development Expense Estimated | $ 20,000 | ||
Maximum In-Process Research and Development Expense Estimated | 22,000 | ||
Business Acquisition, Purchase Price Allocation, Amortizable Intangible Assets | 40,577 | ||
Finite-Lived Intangible Assets, Future Amortization Expense, In-process Research and Development | 12,982 | ||
Balance, beginning | 78,551 | $ 79,652 | |
Completion of In Process Research and Development Project | 0 | ||
Removal of fully amortized assets | (1,101) | ||
Balance, ending | 119,128 | 78,551 | $ 79,652 |
Less: accumulated amortization [Abstract] | |||
Accumulated amortization, beginning balance | (26,069) | (23,270) | |
Amortization expense | (8,218) | (3,900) | (3,913) |
Removal of amortization of fully amortized assets | 1,101 | ||
Accumulated amortization, ending balance | (34,287) | (26,069) | (23,270) |
Net balance | 84,841 | 52,482 | |
Finite-Lived Intangible Assets, Net | 84,841 | ||
Estimated aggregate amortization expense for the next five years and thereafter [Abstract] | |||
2,016 | 8,856 | ||
2,017 | 8,666 | ||
2,018 | 8,666 | ||
2,019 | 8,666 | ||
2,020 | 8,307 | ||
Thereafter | 28,698 | ||
Total amortization of finite-lived intangibles | 71,859 | ||
In-process Research and Development [Member] | |||
Intangible Assets [Line Items] | |||
Business Acquisition, Purchase Price Allocation, Amortizable Intangible Assets | 12,982 | ||
Balance, beginning | 0 | 40,100 | |
Completion of In Process Research and Development Project | (40,100) | ||
Removal of fully amortized assets | 0 | ||
Balance, ending | 12,982 | 0 | 40,100 |
Less: accumulated amortization [Abstract] | |||
Accumulated amortization, beginning balance | 0 | 0 | |
Amortization expense | 0 | 0 | |
Accumulated amortization, ending balance | 0 | 0 | 0 |
Net balance | 12,982 | 0 | |
Technology, Trade Secrets, and Know-how [Member] | |||
Intangible Assets [Line Items] | |||
Business Acquisition, Purchase Price Allocation, Amortizable Intangible Assets | 12,283 | ||
Balance, beginning | 69,102 | 29,704 | |
Completion of In Process Research and Development Project | 40,100 | ||
Removal of fully amortized assets | (702) | ||
Balance, ending | 81,385 | 69,102 | 29,704 |
Less: accumulated amortization [Abstract] | |||
Accumulated amortization, beginning balance | (21,646) | (19,325) | |
Amortization expense | (6,491) | (3,023) | |
Removal of amortization of fully amortized assets | 702 | ||
Accumulated amortization, ending balance | (28,137) | (21,646) | (19,325) |
Net balance | $ 53,248 | $ 47,456 | |
Weighted average life (in years) | 10 years | 10 years | |
In-process Research and Development [Member] | |||
Less: accumulated amortization [Abstract] | |||
Removal of amortization of fully amortized assets | $ 0 | ||
Customer Lists and Contracts [Member] | |||
Intangible Assets [Line Items] | |||
Business Acquisition, Purchase Price Allocation, Amortizable Intangible Assets | $ 11,300 | ||
Balance, beginning | 7,797 | 7,958 | |
Completion of In Process Research and Development Project | 0 | ||
Removal of fully amortized assets | (161) | ||
Balance, ending | 19,097 | 7,797 | 7,958 |
Less: accumulated amortization [Abstract] | |||
Accumulated amortization, beginning balance | (3,667) | (3,085) | |
Amortization expense | (1,371) | (743) | |
Removal of amortization of fully amortized assets | 161 | ||
Accumulated amortization, ending balance | (5,038) | (3,667) | (3,085) |
Net balance | $ 14,059 | $ 4,130 | |
Weighted average life (in years) | 10 years | 11 years | |
Other Identifiable Intangible Assets [Member] | |||
Intangible Assets [Line Items] | |||
Business Acquisition, Purchase Price Allocation, Amortizable Intangible Assets | $ 4,012 | ||
Balance, beginning | 1,652 | $ 1,890 | |
Completion of In Process Research and Development Project | 0 | ||
Removal of fully amortized assets | 238 | ||
Balance, ending | 5,664 | 1,652 | 1,890 |
Less: accumulated amortization [Abstract] | |||
Accumulated amortization, beginning balance | (756) | (860) | |
Amortization expense | (356) | (134) | |
Removal of amortization of fully amortized assets | 238 | ||
Accumulated amortization, ending balance | (1,112) | (756) | $ (860) |
Net balance | $ 4,552 | $ 896 | |
Weighted average life (in years) | 10 years | 11 years |
OTHER COMPREHENSIVE (LOSS) IN58
OTHER COMPREHENSIVE (LOSS) INCOME OTHER COMPREHENSIVE (LOSS) INCOME (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Balance at December 31, 2015 | $ (1,296) | ||
Other comprehensive loss before reclassifications | (396) | ||
Net current-period other comprehensive loss | (396) | $ (552) | $ (1,163) |
Balance at December 31, 2016 | (1,692) | (1,296) | |
Accumulated Translation Adjustment [Member] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Balance at December 31, 2015 | (1,258) | ||
Other comprehensive loss before reclassifications | (434) | ||
Net current-period other comprehensive loss | (434) | ||
Balance at December 31, 2016 | (1,692) | (1,258) | |
Accumulated Net Investment Gain (Loss) Attributable to Parent [Member] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Balance at December 31, 2015 | (38) | ||
Other comprehensive loss before reclassifications | 38 | ||
Net current-period other comprehensive loss | 38 | ||
Balance at December 31, 2016 | $ 0 | $ (38) |
OTHER COMPREHENSIVE (LOSS) IN59
OTHER COMPREHENSIVE (LOSS) INCOME OTHER COMPREHENSIVE (LOSS) INCOME (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Foreign currency translation adjustments, before tax | $ (434) | ||
Foreign currency translation adjustments, tax benefit | 0 | ||
Foreign currency translation adjustments, net of tax | (434) | ||
Unrealized gains on available-for-sale investments, before tax | 44 | ||
Unrealized gains on available-for-sale investments, tax benefit | (6) | ||
Unrealized gains on available-for-sale investments, net of tax | 38 | ||
Other Comprehensive loss, before tax | (390) | ||
Other Comprehensive loss, tax benefit | (6) | ||
Other Comprehensive loss, net of tax | $ (396) | $ (552) | $ (1,163) |
OTHER ASSETS (Details)
OTHER ASSETS (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2015 | Sep. 30, 2013 | Dec. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2012 | |
Other Assets [Abstract] | |||||
Purchased technology rights (net of accumulated amortization) | $ 3,567,000 | $ 1,922,000 | |||
Cost-method investments | 2,000,000 | 1,000,000 | |||
Other | 1,218,000 | 931,000 | |||
Non-current other assets | 6,785,000 | 3,853,000 | |||
Accumulated amortization, purchased technology rights | 3,826,000 | 3,392,000 | |||
Amortization expense relating to acquired technology rights | $ 394,000 | $ 474,000 | |||
Amount of investments in a private company | $ 1,000,000 | ||||
Significant influence percentage (in hundredths) | 20.00% | ||||
Cost-method Investments, Realized Gain (Loss) | $ 900,000 | $ 5,400,000 | |||
Estimated future amortization expense [Abstract] | |||||
2,016 | $ 472,000 | ||||
2,017 | 417,000 | ||||
2,018 | 405,000 | ||||
2,019 | 305,000 | ||||
2,020 | 272,000 | ||||
Thereafter | $ 1,696,000 |
ACCRUED LIABILITIES (Details)
ACCRUED LIABILITIES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Accrued Liabilities, Current [Abstract] | |||
Accrued Employee Benefits, Current | $ 17,229 | $ 10,946 | |
Accrued Income And Other Taxes | 816 | 1,261 | |
Other Accrued Liabilities, Current | 4,084 | 2,392 | |
Accrued Liabilities, Current | 22,804 | 15,152 | |
Accrued warranty costs [Roll Forward] | |||
Accrued warranty costs | 553 | 488 | $ 721 |
Warranty expenses | (1,322) | (859) | (914) |
Accrual for warranty costs | 1,444 | 924 | 681 |
Accrued warranty costs | $ 675 | $ 553 | $ 488 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Components of income tax expense (benefit) [Abstract] | |||
Domestic | $ 2,281,000 | $ 7,472,000 | $ 12,762,000 |
Foreign | 17,334,000 | 25,572,000 | 15,323,000 |
Income before income taxes | 19,615,000 | 33,044,000 | 28,085,000 |
Federal | 1,545,000 | 490,000 | 2,191,000 |
Foreign | 204,000 | 174,000 | (1,833,000) |
State | 449,000 | 58,000 | 305,000 |
Total current | 2,198,000 | 722,000 | 663,000 |
Deferred [Abstract] | |||
Federal | (215,000) | (13,000) | (2,471,000) |
Foreign | 3,813,000 | (4,422,000) | (10,329,000) |
State | 5,000 | (104,000) | 1,179,000 |
Total deferred | 3,603,000 | (4,539,000) | (11,621,000) |
Total provision (benefit) for income taxes | $ 5,801,000 | $ (3,817,000) | $ (10,958,000) |
Income tax rate reconciliation [Abstract] | |||
Statutory tax rate (in hundredths) | 35.00% | 35.00% | 35.00% |
State taxes, net of federal benefit (in hundredths) | 1.50% | (0.20%) | 4.90% |
Permanent items (in hundredths) | 9.50% | 0.60% | 1.90% |
Effect of foreign operations (in hundredths) | (9.00%) | (8.00%) | (3.00%) |
Research and incentive tax credit generated (in hundredths) | (14.30%) | (3.00%) | (9.50%) |
Valuation allowance (in hundredths) | 5.50% | (32.10%) | (39.50%) |
Income tax reserves (in hundredths) | 1.30% | (0.50%) | (0.40%) |
Deferred Charge (in hundredths) | 0.00% | 0.00% | (9.10%) |
Worthless stock deduction (in hundredths) | 0.00% | 0.00% | (6.20%) |
Nontaxable cancellation of debt (in hundredths) | 0.00% | 0.00% | (10.70%) |
Stock compensation deferred (in hundredths) | (0.00%) | (3.50%) | (0.00%) |
Other (in hundredths) | 0.10% | 0.10% | 1.40% |
Effective tax rate, excluding amounts recorded for discrete events (in hundredths) | 29.60% | (11.60%) | (39.00%) |
Current deferred tax assets [Abstract] | |||
Accrued liabilities and other | $ 7,582,000 | $ 5,705,000 | |
Noncurrent deferred tax assets [Abstract] | |||
Net operating loss and credit carryforwards | 81,404,000 | 50,628,000 | |
Deferred revenue | 2,628,000 | 2,400,000 | |
Depreciation and amortization | 4,980,000 | 5,843,000 | |
Stock compensation | 7,673,000 | 6,591,000 | |
Gross noncurrent deferred tax assets | 104,267,000 | 71,167,000 | |
Valuation allowance | (27,879,000) | (14,867,000) | |
Net noncurrent deferred tax asset | 76,388,000 | 56,300,000 | |
Current deferred tax liabilities [Abstract] | |||
Accrued liabilities and other | (1,333,000) | (1,313,000) | |
Noncurrent deferred tax liabilities [Abstract] | |||
Depreciation and amortization | (31,631,000) | (22,239,000) | |
Stock Compensation | 0 | 0 | |
Acquired intangibles | (927,000) | (927,000) | |
Total noncurrent deferred tax liabilities | 33,891,000 | 24,479,000 | |
Net deferred tax assets | 42,497,000 | 31,821,000 | |
Valuation Allowance [Line Items] | |||
Increase (Decrease) in valuation allowance | (13,000,000) | ||
Federal net operating losses carry-forwards | 81,200,000 | ||
Net operating loss carry-forwards, State and local | 400,600,000 | ||
Foreign non-capital income tax loss carry-forwards | 10,000,000 | ||
Deferred Tax Assets, Tax Credit Carryforwards, Foreign | $ 13,400,000 | ||
Tax Credit Carryforward, Expiration Dates | Dec. 31, 2018 | ||
Deferred Tax Assets, Tax Credit Carryforwards, Not Subject to Expiration | $ 3,600,000 | ||
Undistributed earnings of non-U.S. subsidiaries | 26,600,000 | 17,200,000 | $ 1,400,000 |
Unrecognized tax benefits that would impact effective tax rate | 2,600,000 | 2,200,000 | |
Tax related interest and penalties | 2,700 | 47,600 | |
Reconciliation of unrecognized tax benefits [Roll Forward] | |||
Balance, Beginning of period | 2,184,000 | 2,318,000 | |
Additions based on tax positions related to the current year | 481,000 | 168,000 | |
Additions for tax positions of prior years | 12,000 | 0 | |
Reductions for tax positions of prior years | 0 | (9,000) | |
Lapse of statute of limitations | 0 | (293,000) | |
Balance, End of period | 2,677,000 | $ 2,184,000 | $ 2,318,000 |
Domestic Country [Member] | |||
Valuation Allowance [Line Items] | |||
Amount of net operating loss acquired in business acquisition | 81,200,000 | ||
Deferred Tax Assets, Tax Credit Carryforwards | 13,400,000 | ||
Canada [Member] | |||
Valuation Allowance [Line Items] | |||
Deferred Tax Assets, Tax Credit Carryforwards, Foreign | 31,300,000 | ||
State and Local Jurisdiction [Member] | |||
Valuation Allowance [Line Items] | |||
Amount of net operating loss acquired in business acquisition | 400,600,000 | ||
Deferred Tax Assets, Tax Credit Carryforwards | 3,600,000 | ||
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, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Numerator: | |||||||||||
Net income | $ (3,360) | $ 2,751 | $ 5,653 | $ 8,770 | $ 20,377 | $ 6,402 | $ 2,629 | $ 7,453 | $ 13,814 | $ 36,861 | $ 39,043 |
Denominator: | |||||||||||
Weighted Average Number of Shares Outstanding, Basic | 42,584,000 | 42,091,000 | 41,558,000 | ||||||||
Effect of dilutive securities [Abstract] | |||||||||||
Stock options and awards (in shares) | 429,000 | 546,000 | 598,000 | ||||||||
Denominator for diluted net income per share - weighted average shares outstanding - diluted (in shares) | 43,013,000 | 42,637,000 | 42,156,000 | ||||||||
Net income per share, basic (in dollars per share) | $ (0.08) | $ 0.06 | $ 0.13 | $ 0.21 | $ 0.48 | $ 0.15 | $ 0.06 | $ 0.18 | $ 0.32 | $ 0.88 | $ 0.94 |
Earnings Per Share, Diluted | $ (0.08) | $ 0.06 | $ 0.13 | $ 0.21 | $ 0.47 | $ 0.15 | $ 0.06 | $ 0.18 | $ 0.32 | $ 0.86 | $ 0.93 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||
Anti-dilutive restricted stock awards, stock options | 2,017,000 | 1,252,000 | 442,000 |
STOCKHOLDERS' EQUITY, EMPLOYE64
STOCKHOLDERS' EQUITY, EMPLOYEE BENEFIT PLANS AND STOCK BASED COMPENSATION (Details) | 12 Months Ended | |
Dec. 31, 2016USD ($)shares | Dec. 31, 2015shares | |
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 years | |
Vesting period of options, RSAs, and RSUs, maximum (in years) | 5 | |
Expiration date after date of grant, average (in years) | 7 years | |
Number of shares authorized for future issuance (in shares) | 4,180,874 | |
Income From Operation Targets Maximum Performance Target | 0.00% | |
Income From Operations Targets Maximum Performance Target | 200.00% | |
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 | |
Share-based Compensation Arrangements by Share-based Payment Award, Range of Performance Targets [Domain] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period of options, RSAs, and RSUs, minimum (in years) | 4 years | |
Equity Incentive Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares authorized for future issuance (in shares) | 4,022,718 | |
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) | 158,156 | |
Number of shares eligible for purchase | 158,000 | |
Employee Stock Option [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expiration date after date of grant, average (in years) | 7 years | |
Expiration date after date of grant, maximum (in years) | 10 |
STOCKHOLDERS' EQUITY, EMPLOYE65
STOCKHOLDERS' EQUITY, EMPLOYEE BENEFIT PLANS AND STOCK-BASED COMPENSATION (Details 2) - USD ($) | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
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) | 1.40% | 1.60% | 1.80% | |
Weighted average fair value at grant date (in dollars per share) | $ 7.86 | $ 6.73 | $ 10.75 | |
Stock options, additional disclosures [Abstract] | ||||
Total intrinsic value of stock options exercised | $ 600,000 | $ 800,000 | $ 2,800,000 | |
Total fair value of stock options vested | $ 1,600,000 | $ 2,500,000 | $ 2,400,000 | |
Unrecognized compensation costs, weighted-average period of recognition | 2 years 7 months 6 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 | 4 years 10 months 15 days | 0 days | |
Restricted Stock Units (RSUs) [Member] | ||||
Stock options, outstanding [Roll Forward] | ||||
Vested and expected to vest, end of period (in shares) | 451,000 | |||
Exercisable, ending balance (in shares) | 289,000 | |||
Weighted-average remaining contractual life, outstanding, end of period | 10 months 24 days | |||
Weighted-average remaining contractual life, vested and expected to vest, end of period | 10 months 13 days | |||
Weighted-average remaining contractual life, exercisable, end of period | 0 days | |||
Aggregate intrinsic value, outstanding, end of period | $ 9,240,000 | |||
Aggregate intrinsic value, vested and expected to vest, end of period | 9,127,000 | |||
Aggregate intrinsic value, exercisable, end of period | $ 5,846,000 | |||
Equity instruments other than options, nonvested [Roll Forward] | ||||
Non-vested, beginning of period (in shares) | 501,000 | 658,000 | 833,000 | |
Granted (in shares) | 99,144 | 121,802 | 139,417 | |
Vested (in shares) | (83,000) | (54,000) | (74,000) | |
Cancelled or expired (in shares) | (61,000) | (224,000) | (241,000) | |
Non-vested, end of period (in shares) | 457,000 | 501,000 | 658,000 | |
Stock options, additional disclosures [Abstract] | ||||
Grant-date fair value, minimum (in dollars per share) | $ 19.48 | $ 15.93 | $ 17.91 | |
Grant-date fair value, maximum (in dollars per share) | $ 20.62 | $ 16.72 | $ 20.14 | |
Restricted Shares [Member] | ||||
Stock options, additional disclosures [Abstract] | ||||
Total unrecognized compensation costs | $ 0 | |||
Unrecognized compensation costs, weighted-average period of recognition | 2 years | |||
Total fair value of restricted shares vested | $ 7,000,000 | $ 8,500,000 | $ 6,500,000 | |
Compensation costs charged to expense | $ 7,900,000 | $ 8,100,000 | $ 8,100,000 | |
Restricted Stock [Member] | ||||
Fair value assumptions used [Abstract] | ||||
Weighted average fair value at grant date (in dollars per share) | $ 18.74 | $ 18.66 | $ 19.63 | $ 18.62 |
Equity instruments other than options, nonvested [Roll Forward] | ||||
Non-vested, beginning of period (in shares) | 836,000 | 1,098,000 | 826,000 | |
Granted (in shares) | 301,419 | 276,271 | 637,184 | |
Vested (in shares) | (231,000) | (349,000) | (286,000) | |
Cancelled or expired (in shares) | (96,000) | (190,000) | (78,000) | |
Non-vested, end of period (in shares) | 810,000 | 836,000 | 1,098,000 | |
Granted, weighted-average grant-date fair value (in dollars per share) | $ 19.76 | $ 15.95 | $ 20.21 | |
Vested, weighted-average grant-date fair value (in dollars per share) | 19.75 | 19.30 | 18.09 | |
Cancelled or expired, weighted-average grant-date fair value (in dollars per share) | 18.78 | 19.19 | 19.27 | |
Stock options, additional disclosures [Abstract] | ||||
Grant-date fair value, minimum (in dollars per share) | 19.48 | 15.93 | 16.82 | |
Grant-date fair value, maximum (in dollars per share) | $ 22.59 | $ 16.72 | $ 21.10 | |
Stock Options [Member] | ||||
Stock options, outstanding [Roll Forward] | ||||
Options outstanding, beginning of period (in shares) | 1,692,000 | 825,000 | 967,000 | |
Granted (in shares) | 886,000 | 1,023,000 | 250,000 | |
Exercised (in shares) | (178,000) | (129,000) | (348,000) | |
Cancelled or expired (in shares) | (220,000) | (27,000) | (44,000) | |
Options outstanding, end of period (in shares) | 2,180,000 | 1,692,000 | 825,000 | |
Vested and expected to vest, end of period (in shares) | 2,148,000 | |||
Exercisable, ending balance (in shares) | 341,000 | |||
Weighted-average exercise price, end of period (in dollars per share) | $ 18.06 | $ 17.47 | $ 18.84 | $ 15.35 |
Weighted-average exercise price, granted (in dollars per share) | 19.21 | 15.98 | 21.10 | |
Weighted average exercise price, exercised (in dollars per share) | 18.55 | 14.59 | 10.59 | |
Weighted-average exercise price, cancelled or expired (in dollars per share) | 17.83 | $ 16.67 | $ 20.17 | |
Weighted-average exercise price, vested and expected to vest, end of period (in dollars per share) | 18.05 | |||
Weighted-average exercise price, exercisable, end of period (in dollars per share) | $ 19.49 | |||
Weighted-average remaining contractual life, outstanding, end of period | 5 years 4 months 13 days | |||
Weighted-average remaining contractual life, vested and expected to vest, end of period | 5 years 4 months 10 days | |||
Weighted-average remaining contractual life, exercisable, end of period | 3 years 10 months 13 days | |||
Aggregate intrinsic value, outstanding, end of period | $ 5,086,000 | |||
Aggregate intrinsic value, vested and expected to vest, end of period | 5,020,000 | |||
Aggregate intrinsic value, exercisable, end of period | 489,000 | |||
Stock options, additional disclosures [Abstract] | ||||
Total unrecognized compensation costs | 9,900,000 | |||
Proceeds from exercise of stock options | $ 3,300,000 | $ 1,900,000 | $ 3,700,000 | |
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 | |
Employee Stock [Member] | Minimum [Member] | ||||
Fair value assumptions used [Abstract] | ||||
Risk-free rate of return (in hundredths) | 0.07% | |||
Expected life | 4 months 24 days | |||
Employee Stock [Member] | Maximum [Member] | ||||
Fair value assumptions used [Abstract] | ||||
Risk-free rate of return (in hundredths) | 0.08% | |||
Expected life | 6 months |
STOCKHOLDERS' EQUITY, EMPLOYE66
STOCKHOLDERS' EQUITY, EMPLOYEE BENEFIT PLANS AND STOCK-BASED COMPENSATION (Details 3) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Maximum individual contribution to 401(k) plan per year | $ 18,000 | $ 18,000 | $ 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 | $ 3,200,000 | $ 2,800,000 | $ 2,500,000 |
Fair value assumptions used [Abstract] | |||
Risk-free rate of return (in hundredths) | 1.40% | 1.60% | 1.80% |
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 | $ 1,247,000 | $ 975,000 | $ 981,000 |
Research and Development Expense [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation costs | 2,658,000 | 2,422,000 | 2,573,000 |
General and Administrative Expense [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation costs | 7,916,000 | 7,458,000 | 5,994,000 |
Reflected in Net Income (Loss) [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation costs | 11,821,000 | 10,855,000 | 9,548,000 |
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 | 341,844 | 260,536 | 181,401 |
Fair value assumptions used [Abstract] | |||
Expected volatility (in hundredths) | 47.00% | ||
Dividend yield (in hundredths) | 0.00% | ||
Employee Stock [Member] | Minimum [Member] | |||
Fair value assumptions used [Abstract] | |||
Risk-free rate of return (in hundredths) | 0.07% | ||
Expected life | 4 months 24 days | ||
Employee Stock [Member] | Maximum [Member] | |||
Fair value assumptions used [Abstract] | |||
Risk-free rate of return (in hundredths) | 0.08% | ||
Expected life | 6 months |
STOCKHOLDERS' EQUITY, EMPLOYE67
STOCKHOLDERS' EQUITY, EMPLOYEE BENEFIT PLANS AND STOCK-BASED COMPENSATION (Details 4) - shares | Dec. 31, 2016 | Dec. 31, 2015 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options/ warrants outstanding (in shares) | 2,635,591 | |
Shares available for future issuance (in shares) | 4,180,874 | |
Total shares reserved (in shares) | 6,816,465 | 7,485,118 |
2006 Equity Incentive Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options/ warrants outstanding (in shares) | 2,635,591 | |
Shares available for future issuance (in shares) | 4,022,718 | |
Total shares reserved (in shares) | 6,658,309 | |
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) | 158,156 | |
Total shares reserved (in shares) | 158,156 |
COMMITMENTS AND CONTINGENCIES68
COMMITMENTS AND CONTINGENCIES (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2016USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | ||||
Rental and lease expense | $ 5,800 | $ 4,700 | $ 4,500 | |
Lease periods maximum (in years) | 10 | |||
Operating leases future minimum payments due [Abstract] | ||||
2,016 | $ 4,351 | |||
2,017 | 4,018 | |||
2,018 | 3,435 | |||
2,019 | 1,740 | |||
2,020 | 999 | |||
Thereafter | 1,885 | |||
Total | 16,428 | |||
Non-cancelable purchase commitments | 21,400 | |||
Unrecorded Unconditional Purchase Obligation, Purchases | 2,600 | 1,200 | 2,400 | |
Settlement of litigation | $ 7,100 | $ 0 | $ (5,300) | $ 0 |
GEOGRAPHIC INFORMATION (Details
GEOGRAPHIC INFORMATION (Details 2) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenues from External Customers and Property and Equipment, net [Line Items] | |||||||||||
Revenues from external customers | $ 72,271,000 | $ 71,221,000 | $ 64,166,000 | $ 62,981,000 | $ 60,449,000 | $ 60,601,000 | $ 58,917,000 | $ 57,741,000 | $ 270,639,000 | $ 237,708,000 | $ 226,983,000 |
Property and equipment, net | 57,375,000 | 47,796,000 | 57,375,000 | 47,796,000 | 39,945,000 | ||||||
Aggregate foreign currency transaction losses | 121,000 | 841,000 | 16,000 | ||||||||
Domestic Country [Member] | |||||||||||
Revenues from External Customers and Property and Equipment, net [Line Items] | |||||||||||
Revenues from external customers | 222,706,000 | 200,427,000 | 187,945,000 | ||||||||
Property and equipment, net | 53,283,000 | 43,910,000 | 53,283,000 | 43,910,000 | 36,826,000 | ||||||
Europe [Member] | |||||||||||
Revenues from External Customers and Property and Equipment, net [Line Items] | |||||||||||
Revenues from external customers | 19,211,000 | 17,034,000 | 17,819,000 | ||||||||
Property and equipment, net | 1,079,000 | 1,358,000 | 1,079,000 | 1,358,000 | 1,093,000 | ||||||
Asia [Member] | |||||||||||
Revenues from External Customers and Property and Equipment, net [Line Items] | |||||||||||
Revenues from external customers | 20,733,000 | 12,794,000 | 14,863,000 | ||||||||
Property and equipment, net | 730,000 | 429,000 | 730,000 | 429,000 | 261,000 | ||||||
Canada [Member] | |||||||||||
Revenues from External Customers and Property and Equipment, net [Line Items] | |||||||||||
Revenues from external customers | 3,738,000 | 3,239,000 | 3,664,000 | ||||||||
Property and equipment, net | 2,274,000 | 2,085,000 | 2,274,000 | 2,085,000 | 1,746,000 | ||||||
Other Countries [Member] | |||||||||||
Revenues from External Customers and Property and Equipment, net [Line Items] | |||||||||||
Revenues from external customers | 4,251,000 | 4,214,000 | 2,692,000 | ||||||||
Property and equipment, net | $ 9,000 | $ 14,000 | $ 9,000 | $ 14,000 | $ 19,000 |
RECENT ACCOUNTING PRONOUNCEME70
RECENT ACCOUNTING PRONOUNCEMENTS Recent Accounting Pronouncements (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Retained earnings | $ 68,898,000 | $ 48,133,000 | |
Income Tax Expense (Benefit) | 5,801,000 | $ (3,817,000) | $ (10,958,000) |
New Accounting Pronouncement, Early Adoption, Effect [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Retained earnings | 6,900,000 | ||
New Accounting Pronouncement, Early Adoption, Effect [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Income Tax Expense (Benefit) | $ 472,000 |
SELECTED QUARTERLY RESULTS (Det
SELECTED QUARTERLY RESULTS (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenue | $ 72,271 | $ 71,221 | $ 64,166 | $ 62,981 | $ 60,449 | $ 60,601 | $ 58,917 | $ 57,741 | $ 270,639 | $ 237,708 | $ 226,983 |
Gross Profit | 44,263 | 45,665 | 44,921 | 44,806 | 43,406 | 41,812 | 43,270 | 40,219 | 179,655 | 168,707 | 159,852 |
Income from operations | (2,343) | 4,028 | 7,500 | 11,801 | 7,999 | 9,706 | 9,959 | 9,693 | 20,986 | 37,357 | 28,137 |
Net income | $ (3,360) | $ 2,751 | $ 5,653 | $ 8,770 | $ 20,377 | $ 6,402 | $ 2,629 | $ 7,453 | $ 13,814 | $ 36,861 | $ 39,043 |
Net income per share, basic (in dollars per share) | $ (0.08) | $ 0.06 | $ 0.13 | $ 0.21 | $ 0.48 | $ 0.15 | $ 0.06 | $ 0.18 | $ 0.32 | $ 0.88 | $ 0.94 |
Net income per share, diluted (in dollars per share) | $ (0.08) | $ 0.06 | $ 0.13 | $ 0.21 | $ 0.47 | $ 0.15 | $ 0.06 | $ 0.18 | $ 0.32 | $ 0.86 | $ 0.93 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - Subsequent Event [Member] - $ / shares | Apr. 14, 2017 | Mar. 24, 2017 | Feb. 21, 2017 |
Subsequent Event [Line Items] | |||
Dividends Payable, Date of Record | Mar. 24, 2017 | ||
Dividends Payable, Date Declared | Feb. 21, 2017 | ||
Dividends Payable, Amount Per Share | $ 0.06 | ||
Dividends Payable, Date to be Paid | Apr. 14, 2017 |
Uncategorized Items - lmnx-2016
Label | Element | Value |
Long Term Incentive Plan 2013 [Member] | Maximum Goal [Member] | ||
Income From Operations Targets | lmnx_IncomeFromOperationsTargets | $ 1.36 |
Long Term Incentive Plan 2013 [Member] | Target [Member] | ||
Income From Operations Targets | lmnx_IncomeFromOperationsTargets | 1.18 |
Long Term Incentive Plan 2013 [Member] | Minimum Threshold [Member] | ||
Income From Operations Targets | lmnx_IncomeFromOperationsTargets | $ 1.06 |