Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2017 | May 01, 2017 | |
Entity [Abstract] | ||
Entity Registrant Name | Luminex Corp | |
Entity Central Index Key | 1,033,905 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 43,926,105 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2017 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 86,466 | $ 93,452 |
Accounts receivable, net | 37,038 | 32,365 |
Inventories, net | 43,673 | 40,775 |
Prepaids and other | 6,304 | 7,145 |
Total current assets | 173,481 | 173,737 |
Property and equipment, net | 58,259 | 57,375 |
Intangible assets, net | 82,485 | 84,841 |
Deferred income taxes | 39,669 | 42,497 |
Goodwill | 85,481 | 85,481 |
Other | 7,237 | 6,785 |
Total assets | 446,612 | 450,716 |
Current liabilities: | ||
Accounts payable | 9,095 | 12,276 |
Accrued liabilities | 15,536 | 22,804 |
Deferred revenue | 5,317 | 5,120 |
Total current liabilities | 29,948 | 40,200 |
Deferred revenue | 1,882 | 1,875 |
Other | 4,914 | 4,962 |
Total liabilities | 36,744 | 47,037 |
Stockholders' equity: | ||
Common stock, $.001 par value, 200,000,000 shares authorized; issued and outstanding: 43,091,504 shares at March 31, 2017; 42,802,480 shares at December 31, 2016 | 43 | 43 |
Preferred stock, $.001 par value, 5,000,000 shares authorized; no shares issued and outstanding | 0 | 0 |
Additional paid-in capital | 335,786 | 336,430 |
Accumulated other comprehensive loss | (1,429) | (1,692) |
Retained earnings | 75,468 | 68,898 |
Total stockholders' equity | 409,868 | 403,679 |
Total liabilities and stockholders' equity | $ 446,612 | $ 450,716 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS Parenthetical - $ / shares | Mar. 31, 2017 | Dec. 31, 2016 |
Stockholders' equity: | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 200,000,000 | 200,000,000 |
Common stock, issued (in shares) | 42,708,733 | 42,802,480 |
Common stock, outstanding (in shares) | 42,708,733 | 42,802,480 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Preferred stock, outstanding (in shares) | 0 | 0 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Income Statement [Abstract] | ||
Revenue | $ 77,779 | $ 62,981 |
Cost of revenue | 24,993 | 18,175 |
Gross profit | 52,786 | 44,806 |
Operating expenses: | ||
Research and development | 12,420 | 11,019 |
Selling, general and administrative | 23,998 | 20,359 |
Amortization of acquired intangible assets | 2,356 | 1,627 |
Total operating expenses | 38,774 | 33,005 |
Income from operations | 14,012 | 11,801 |
Other income (expense), net | (6) | 21 |
Income before income taxes | 14,006 | 11,822 |
Income taxes | (4,775) | (3,052) |
Net income | 9,231 | 8,770 |
Net Income (Loss) Available to Common Stockholders, Basic | 9,058 | 8,770 |
Net Income (Loss) Available to Common Stockholders, Diluted | 9,058 | 8,770 |
Net income attributable to common stock holders | ||
Basic | 263 | 210 |
Diluted | 0 | 45 |
Other comprehensive income (loss) | $ 263 | $ 255 |
Basic | $ 0.21 | $ 0.21 |
Diluted | 42,898 | 42,346 |
Net income per share, diluted | $ 0.21 | $ 0.21 |
Shares used in computing net income per share, diluted | 42,989 | 42,443 |
Common Stock, Dividends, Per Share, Declared | $ 60 | $ 0 |
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | $ 9,494 | $ 9,025 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Net income | $ 9,231 | $ 8,770 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 5,619 | 4,212 |
Stock-based compensation | 722 | 1,180 |
Deferred income tax expense | 2,935 | 3,326 |
Loss on sale or disposal of assets | 0 | 37 |
Other | 444 | (54) |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | (4,669) | (548) |
Inventories, net | (2,887) | 102 |
Other assets | 695 | 164 |
Accounts payable | (3,706) | (1,013) |
Accrued liabilities | (10,072) | (8,721) |
Deferred revenue | 197 | 830 |
Net cash (used in) provided by operating activities | (1,491) | 8,285 |
Cash flows from investing activities: | ||
Purchase of property and equipment | (3,433) | (2,848) |
Purchase of cost method investment | (500) | 0 |
Acquired technology rights | 0 | (200) |
Net cash used in investing activities | (3,933) | (3,048) |
Cash flows from financing activities: | ||
Proceeds from issuance of common stock | 734 | 356 |
Shares surrendered for tax withholding | (2,056) | 0 |
Net cash (used in) provided by financing activities | (1,322) | 356 |
Effect of foreign currency exchange rate on cash | (240) | 163 |
Change in cash and cash equivalents | (6,986) | 5,756 |
Cash and cash equivalents, beginning of period | 93,452 | 128,546 |
Cash and cash equivalents, end of period | $ 86,466 | $ 134,302 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY Statement - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | AOCI Attributable to Parent [Member] | Retained Earnings [Member] |
Common Stock, Shares, Outstanding | 42,802,480 | 42,802,480 | |||
Stockholders' Equity Attributable to Parent | $ 403,679 | $ 42 | $ 336,431 | $ (1,692) | $ 68,898 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 45,396 | ||||
Stock Issued During Period, Value, Stock Options Exercised | 733 | $ 0 | 733 | 0 | 0 |
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 243,628 | ||||
Stock Issued During Period, Value, Restricted Stock Award, Gross | (2,055) | $ (1) | (2,056) | 0 | 0 |
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition | 678 | $ 0 | 678 | 0 | 0 |
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 0 | ||||
Stock Issued During Period, Value, Employee Stock Purchase Plan | 0 | $ 0 | 0 | 0 | 0 |
Net income | 9,231 | 0 | 0 | 0 | 9,231 |
Basic | $ 263 | $ 0 | 0 | 263 | 0 |
Dividends, Common Stock, Cash | (2,661) | ||||
Common Stock, Shares, Outstanding | 42,708,733 | 43,091,504 | |||
Stockholders' Equity Attributable to Parent | $ 409,868 | $ 43 | $ 335,786 | $ (1,429) | $ 75,468 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 3 Months Ended |
Mar. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | NOTE 1 — BASIS OF PRESENTATION The accompanying unaudited condensed consolidated financial statements have been prepared by Luminex Corporation (the Company or Luminex) in accordance with United States generally accepted accounting principles (U.S. GAAP) for interim financial information and the rules and regulations of the Securities and Exchange Commission (SEC). Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. In the opinion of management, all adjustments (consisting of normal recurring entries) considered necessary for a fair presentation have been included. Operating results for the three months ended March 31, 2017 are not necessarily indicative of the results that may be expected for the year ending December 31, 2017 . These financial statements should be read in conjunction with the financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 (the 2016 10-K). |
REORGANIZATION REORGANIZATION
REORGANIZATION REORGANIZATION | 3 Months Ended |
Mar. 31, 2017 | |
Reorganization [Abstract] | |
Restructuring and Related Costs [Table Text Block] | REORGANIZATION Following the acquisition of Nanosphere, Inc. (Nanosphere) which occurred June 30, 2016, 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 consisted of severance pay and other employee 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 March 31, 2017 Balance at December 31, 2016 1,471 Total reorganization charges — Employee separation payments (1,471 ) Balance at March 31, 2017 $ — The remaining employee separation payments were paid in January 2017. As such, there is no remaining liability within accrued liabilities on the consolidated balance sheet as of March 31, 2017 . |
INVESTMENTS
INVESTMENTS | 3 Months Ended |
Mar. 31, 2017 | |
Investments [Abstract] | |
INVESTMENTS | NOTE 3 — INVESTMENTS Marketable Securities The Company determines the appropriate classification of its investments in debt and equity securities at the time of purchase and re-evaluates such determinations at each balance sheet date. Marketable securities that are bought and held principally for the purpose of selling them in the near term are classified as trading securities and are reported at fair value, with unrealized gains and losses recognized in earnings. Debt securities are classified as held-to-maturity when the Company has the positive intent and ability to hold the securities to maturity. Held-to-maturity securities are stated at amortized cost, which approximates the fair value of these investments. Debt securities for which the Company does not have the intent or ability to hold to maturity are classified as available-for-sale. Debt and marketable equity securities not classified as held-to-maturity or as trading are classified as available-for-sale, and are carried at fair market value, with the unrealized gains and losses included in the determination of comprehensive income and reported in stockholders’ equity. As of March 31, 2017 and December 31, 2016 , all of the Company’s marketable securities were classified as available-for-sale. Marketable securities are recorded as either short-term or long-term on the balance sheet based on the contractual maturity date. The fair value of all securities is determined by quoted market prices, market interest rate inputs, or other than quoted prices that are observable either directly or indirectly (as of the end of the reporting period). Declines in fair value below the Company’s carrying value deemed to be other than temporary are charged against net earnings. As of March 31, 2017 , the Company had no short or long term investments, since those funds were used to pay for a portion of the acquisition of Nanosphere. Available-for-sale securities consisted of the following as of March 31, 2017 (in thousands): Amortized Cost Gains in Accumulated Other Comprehensive Income Losses in Accumulated Other Comprehensive Income 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, 2016 (in thousands): Amortized Cost Gains in Accumulated Other Comprehensive Income Losses in Accumulated Other Comprehensive Income 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 There were no proceeds from the sales of available-for-sale securities for the three months ended March 31, 2017 . Realized gains and losses on sales of investments are determined using the specific identification method. Realized gains and losses are included in Other income, net in the Consolidated Statements of Comprehensive Income. All of the Company's available-for-sale securities with gross unrealized holding losses as of March 31, 2017 and December 31, 2016 had been in a loss position for less than 12 months. There were no available-for-sale debt securities as of March 31, 2017 or December 31, 2016 . Expected maturities may differ from contractual maturities because the issuers of the securities may have the right to prepay obligations without prepayment penalties. Non-Marketable Securities and Other-Than-Temporary Impairment During the year ended December 31, 2016 and the three months ended March 31, 2017 , the Company made a $ 1.0 million and $ 0.5 million minority interest investment, respectively, in a private company based in the U.S. that is focused on development of next generation technologies. This minority interest is included at cost in other long-term assets on the Company’s Consolidated Balance Sheets as the Company does not have significant influence over the investee since the Company owns less than 20% of the voting equity in the investee and the investee is not publicly traded. Although we may invest further in this entity over the course of the next several quarters, we do not anticipate our ownership interest to exceed 20% in the short term. The Company owns a minority interest in a second private company based in the U.S. through its investment of $1.0 million in the third quarter of 2012. This minority interest is included at cost in other long-term assets on the Company’s Consolidated Balance Sheets as the Company does not have significant influence over the investee since the Company owns less than 20% of the voting equity in the investee and the investee is not publicly traded. The Company regularly evaluates the carrying value of its cost-method investment for impairment and whether any events or circumstances are identified that would significantly harm the fair value of the investment. The primary indicators the Company utilizes to identify these events and circumstances are the investee's ability to remain in business, such as the investee's liquidity and rate of cash use, and the investee’s ability to secure additional funding and the value of that additional funding. In the event a decline in fair value is judged to be other-than-temporary, the Company will record an other-than-temporary impairment charge in Other income, net in the Consolidated Statements of Comprehensive Income. As the inputs utilized for the Company's periodic impairment assessment are not based on observable market data, the determination of fair value of this cost-method investment is classified within Level 3 of the fair value hierarchy. See Note 5 - Fair Value Measurement to our Condensed Consolidated Financial Statements for further discussion. To determine the fair value of this investment, the Company uses all available financial information related to the entities, including information based on recent or pending third-party equity investments in these entities. In certain instances, a cost-method investment's fair value is not estimated as there are no identified events or changes in the circumstances that may have a significant adverse effect on the fair value of the investment and to do so would be impractical. |
INVENTORY, NET
INVENTORY, NET | 3 Months Ended |
Mar. 31, 2017 | |
Inventory, Net [Abstract] | |
INVENTORIES, NET | NOTE 4 — INVENTORIES, NET Inventories are stated at the lower of cost or net realizable value, with cost determined according to the standard cost method, which approximates the first-in, first-out method. Net realizable value is defined as the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. The Company routinely assesses its on-hand inventory for timely identification and measurement of obsolete, slow-moving or otherwise impaired inventory. Inventories consisted of the following (in thousands): March 31, 2017 December 31, 2016 Parts and supplies $ 23,138 $ 22,960 Work-in-progress 7,394 6,268 Finished goods 13,141 11,547 $ 43,673 $ 40,775 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENT | NOTE 5 — FAIR VALUE MEASUREMENT The Fair Value Measurements and Disclosures Topic of the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) defines fair value, establishes a framework for measuring fair value under U.S. GAAP and enhances disclosures about fair value measurements. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The ASC describes a fair value hierarchy based on the following three levels of inputs that may be used to measure fair value, of which the first two are considered observable and the last unobservable: Level 1 – Quoted prices in active markets for identical assets or liabilities. Level 2 – Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The Company determines the fair value of its investment portfolio assets by obtaining non-binding market prices from its third-party portfolio managers on the last day of the quarter, whose sources may use quoted prices in active markets for identical assets (Level 1 inputs) or inputs other than quoted prices that are observable either directly or indirectly (Level 2 inputs) in determining fair value. There were no transfers between Level 1, Level 2, or Level 3 measurements for the three month period ended March 31, 2017 . 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 March 31, 2017 and December 31, 2016 (in thousands): Fair Value Measurements as of March 31, 2017 Using Level 1 Level 2 Level 3 Total Assets: Money Market funds $ 701 $ — $ — $ 701 Government sponsored debt securities — — — — Non-government sponsored debt securities — — — — Fair Value Measurements as of December 31, 2016 Using Level 1 Level 2 Level 3 Total Assets: Money Market funds $ 701 $ — $ — $ 701 Government sponsored debt securities — — — $ — Non-government sponsored debt securities — — — $ — |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 3 Months Ended |
Mar. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS | NOTE 6 — GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill is reviewed for impairment at least annually at the beginning of the fourth quarter, or more frequently if impairment indicators arise. The Company's goodwill is not expected to be deductible for tax purposes. The changes in the carrying amount of the Company’s goodwill during the period are as follows (in thousands): March 31, 2017 December 31, 2016 Balance at beginning of year $ 85,481 $ 85,481 Balance at end of period $ 85,481 $ 85,481 The Company’s intangible assets are reflected in the table below (in thousands, except weighted average lives): Finite-lived Indefinite-lived Technology, trade secrets and know-how Customer lists and contracts Other identifiable intangible assets IP R&D Total 2016 Balance as of 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 as of December 31, 2016 81,385 19,097 5,664 12,982 119,128 Less: accumulated amortization: Accumulated amortization balance as of December 31, 2015 (21,646 ) (3,667 ) (756 ) — (26,069 ) Amortization expense (6,491 ) (1,371 ) (356 ) — (8,218 ) Accumulated amortization balance as of December 31, 2016 (28,137 ) (5,038 ) (1,112 ) — (34,287 ) Net balance as of December 31, 2016 $ 53,248 $ 14,059 $ 4,552 $ 12,982 $ 84,841 Weighted average life (in years) 10 10 10 2017 Balance as of December 31, 2016 $ 81,385 $ 19,097 $ 5,664 $ 12,982 $ 119,128 Foreign currency translation adjustments — — — — — Balance as of March 31, 2017 81,385 19,097 5,664 12,982 119,128 Less: accumulated amortization: Accumulated amortization balance as of December 31, 2016 (28,137 ) (5,038 ) (1,112 ) — (34,287 ) Amortization expense (1,712 ) (499 ) (145 ) — (2,356 ) Accumulated amortization balance as of March 31, 2017 (29,849 ) (5,537 ) (1,257 ) — (36,643 ) Net balance as of March 31, 2017 $ 51,536 $ 13,560 $ 4,407 $ 12,982 $ 82,485 Weighted average life (in years) 10 10 10 The in-process research and development project is the development of the next generation Verigene system, Verigene II, which we believe will be completed in 2018. The estimated cost to complete this project is between $18.0 million and $20.0 million. The estimated aggregate amortization expense for the next five fiscal years and thereafter is as follows (in thousands): 2017 (nine months) $ 6,499 2018 8,666 2019 8,666 2020 8,666 2021 8,307 Thereafter 28,699 $ 69,503 IPR&D 12,982 $ 82,485 |
OTHER COMPREHENSIVE (LOSS) INCO
OTHER COMPREHENSIVE (LOSS) INCOME | 3 Months Ended |
Mar. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |
Comprehensive Income (Loss) Note | NOTE 7 — OTHER COMPREHENSIVE LOSS Other comprehensive income (loss) represents a measure of all changes in equity that result from recognized transactions and other economic events other than those resulting from investments by and distributions to shareholders. Other comprehensive income (loss) for the Company includes foreign currency translation adjustments. The following table presents the changes in each component of accumulated other comprehensive income (loss), net of tax (in thousands): Foreign Currency Items Available-for-Sale Investments Accumulated Other Comprehensive Income (Loss) Items Balance as of December 31, 2016 $ (1,692 ) $ — $ (1,692 ) Other comprehensive income before reclassifications 263 — 263 Net current-period other comprehensive income 263 — 263 Balance as of March 31, 2017 $ (1,429 ) $ — $ (1,429 ) The following table presents the tax (expense) benefit allocated to each component of other comprehensive income (loss) (in thousands): Three Months Ended March 31, 2017 Before Tax Tax Benefit Net of Tax Foreign currency translation adjustments $ 263 $ — $ 263 Other comprehensive income (loss) $ 263 $ — $ 263 |
EARNINGS PER SHARE
EARNINGS PER SHARE | 3 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | NOTE 8 — EARNINGS PER SHARE A reconciliation of the denominators used in computing per share net income, or EPS, is as follows (in thousands, except per share amounts): Three Months Ended March 31, 2017 2016 Basic: Net income $ 9,231 $ 8,770 Less: allocation to participating securities (173 ) — Net income attributable to common stockholders $ 9,058 $ 8,770 Weighted average common stock outstanding 42,898 42,346 Net income per share attributable to common stockholders $ 0.21 $ 0.21 Diluted: Net income $ 9,231 8,770 Less: allocation to participating securities (173 ) — Net income attributable to common stockholders $ 9,058 $ 8,770 Weighted average common stock outstanding 42,898 42,346 Effect of dilutive securities: stock options and awards 91 97 Weighted-average shares used in computing net income per share 42,989 42,443 Net income per share attributable to common stockholders $ 0.21 $ 0.21 Basic net income per share is computed by dividing the net income for the period by the weighted average number of common shares outstanding during the period. Diluted net income per share is computed by dividing the net income for the period by the weighted average number of common and common equivalent shares outstanding during the period. Stock options to acquire approximately 2.3 million and 0.6 million shares for the three months ended March 31, 2017 and 2016 respectively, were excluded from the computations of diluted EPS because the effect of including those stock options would have been anti-dilutive. We apply the two-class method of computing earnings per share, which requires the calculation of separate earnings per share amounts for our non-vested, time-based restricted stock awards with non-forfeitable dividends and for our common stock. Our non-vested, time-based restricted stock awards with non-forteitable rights to dividends are considered securities which participate in undistributed earnings with common stock. Under the two-class computation method, net losses are not allocated to participating securities unless the holder of the security has a contractual obligation to share in the losses. Our non-vested, time-based restricted stock awards with non-forteitable dividends do not have such an obligation so they are not allocated losses. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 3 Months Ended |
Mar. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
STOCK-BASED COMPENSATION | NOTE 9 — STOCKHOLDERS' EQUITY AND STOCK-BASED COMPENSATION Dividends 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 is 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. Stock-Based Compensation The Company’s stock option activity for the three months ended March 31, 2017 was as follows: Stock Options (shares in thousands) Shares Weighted Average Exercise Price Outstanding as of December 31, 2016 2,180 $ 18.06 Granted 1,406 18.08 Exercised (54 ) 16.49 Cancelled or expired (120 ) 19.59 Outstanding as of March 31, 2017 3,412 $ 18.05 The Company had $18.3 million of total unrecognized compensation costs related to stock options as of March 31, 2017 , which costs are expected to be recognized over a weighted average period of 3.26 years . The Company’s restricted share activity for the three months ended March 31, 2017 was as follows: Restricted Stock Awards (shares in thousands) Shares Weighted Average Grant Price Non-vested as of December 31, 2016 810 $ 18.74 Granted 357 18.13 Vested (310 ) 18.47 Cancelled or expired (19 ) 18.87 Non-vested as of March 31, 2017 838 $ 18.58 Restricted Stock Units (in thousands) Shares Non-vested as of December 31, 2016 457 Granted 63 Vested (49 ) Cancelled or expired (4 ) Non-vested as of March 31, 2017 467 As of March 31, 2017 , there was $17.2 million and $3.2 million of total unrecognized compensation costs related to Restricted Stock Awards (RSAs) and Restricted Stock Units (RSUs), respectively. This cost is expected to be recognized over a weighted average period of 2.85 years for the RSAs and 2.26 years for the RSUs. The Company issues a small number of cash settled RSUs pursuant to the Company's equity incentive plan in certain foreign countries. These grants do not result in the issuance of common stock and are considered immaterial by the Company. The holders of these grants have the right to vote the related shares of common stock and receive all dividends declared and paid whether or not vested. The fair value of time-based restricted stock awards is calculated based on the market value of our common stock on the date of grant. The following are the stock-based compensation costs recognized in the Company’s condensed consolidated statements of comprehensive income (in thousands): Three Months Ended March 31, 2017 2016 Cost of revenue $ 335 $ 249 Research and development (162 ) 390 Selling, general and administrative 549 541 Stock-based compensation costs reflected in net income $ 722 $ 1,180 The reduction in stock compensation costs associated with research and development in the three months ended March 31, 2017 is primarily related to the reversal of previously accrued stock compensation expense on unvested equity associated with the one-time headcount reduction of approximately 40 people in the fourth quarter of 2016 as noted in Note 2 - Reorganization above. |
ACCRUED LIABILITIES
ACCRUED LIABILITIES | 3 Months Ended |
Mar. 31, 2017 | |
Accrued Liabilities, Current [Abstract] | |
ACCRUED WARRANTY COSTS | NOTE 10 — ACCRUED LIABILITIES Accrued liabilities consisted of the following (in thousands): March 31, 2017 December 31, 2016 Compensation and employee benefits $ 6,919 $ 17,229 Dividends payable 2,661 — Income and other taxes 1,620 816 Warranty costs 762 675 Other 3,574 4,084 $ 15,536 $ 22,804 Sales of certain of the Company's systems are subject to a warranty. System warranties typically extend for a period of 12 months from the date of installation not to exceed 24 months from the date of shipment. The Company estimates the amount of warranty claims on sold products that may be incurred based on current and historical data. The actual warranty expense could differ from the estimates made by the Company based on product performance. Warranty expenses are evaluated and adjusted periodically. The following table summarizes the changes in the warranty accrual (in thousands): Accrued warranty costs as of December 31, 2016 $ 675 Warranty adjustments/settlements 336 Accrual for warranty costs (249 ) Accrued warranty costs as of March 31, 2017 $ 762 |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | OTE 11 — INCOME TAXES At the end of each interim reporting period, an estimate is made of the effective tax rate expected to be applicable for the full year. The estimated full year’s effective tax rate is used to determine the income tax rate for each applicable interim reporting period. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the results of operations in the period of the enactment date. The effective tax rate for the three months ended March 31, 2017 was 34% , including amounts recorded for discrete events. This differs from the statutory rate of 35% primarily because of the worldwide mix of consolidated earnings and losses before taxes and an assessment regarding the realizability of the Company’s deferred tax assets. The mix of profits for the 2017 fiscal year is estimated to have a higher concentration in the U.S. than prior years, which is subject to a statutory U.S. federal and state rate of 37.5%. The Company’s tax expense reflects the full federal, various state, and foreign blended statutory rates. The Company is utilizing its net operating losses and tax credits in the U.S., Canada and the Netherlands and currently expects a full year effective tax rate of less than 35% . Therefore, cash taxes to be paid are expected to continue to be less than 15% of book tax expense. The Company or one of its subsidiaries files income tax returns in the U.S. federal jurisdiction, Australia, Canada, China, Hong Kong, Japan, the Netherlands, and various states within the U.S. Due to net operating losses, the U.S., Canadian and Australian tax returns dating back to 2011 can still be reviewed by the taxing authorities. The Netherlands tax returns dating back to 2013 can still be reviewed by the taxing authorities. For the three months ended March 31, 2017 , there were no material changes to the total amount of unrecognized tax benefits. No material changes to this liability are expected within the next 12 months. The Company recognizes interest and penalties related to uncertain tax positions in the provision for income taxes. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 12 — COMMITMENTS AND CONTINGENCIES In the normal course of business, the Company is subject to claims, lawsuits and legal proceedings. When and if it appears probable in management's judgment, and based upon consultation with outside counsel, that we will incur monetary damages or other costs in connection with any claims or proceedings, and such costs can be reasonably estimated, we record the estimated liability in the financial statements. If only a range of estimated losses can be estimated, we record an amount within the range that, in management's judgment, reflects the most likely outcome; if none of the estimates within that range is a better estimate than any other amount, we record the liability at the low end of the range of estimates. Any such accrual would be charged to expense in the appropriate period. We disclose significant contingencies when the loss is not probable and/or the amount of the loss is not estimable, when we believe there is at least a reasonable possibility that a loss has been incurred. We recognize costs associated with legal proceedings in the period in which the services were provided. |
RECENT ACCOUNTING PRONOUNCEMENT
RECENT ACCOUNTING PRONOUNCEMENTS | 3 Months Ended |
Mar. 31, 2017 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
RECENT ACCOUNTING PRONOUNCEMENTS | NOTE 13 — RECENT ACCOUNTING PRONOUNCEMENTS Recently adopted accounting guidance 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. The Company adopted this standard during the quarter ended March 31, 2017, 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 3 - Investments. 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 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 has begun assessing its various revenue streams to identify performance obligations under this guidance and the key aspects of the standard that will impact the Company's revenue recognition process. Based upon our preliminary assessments these standards may impact our allocation of contract revenue between various products and services, the timing of when those revenues are recognized and the treatment of certain costs to obtain a contract. Given the diversity of its commercial arrangements, the Company is continuing to assess the impact these standards may have on its consolidated results of operation, financial position, cash flows and financial statement disclosures. |
REORGANIZATION RESTRUCTURING (T
REORGANIZATION RESTRUCTURING (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Reorganization [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 March 31, 2017 Balance at December 31, 2016 1,471 Total reorganization charges — Employee separation payments (1,471 ) Balance at March 31, 2017 $ — |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Investments [Abstract] | |
Components of available-for-sale securities | Available-for-sale securities consisted of the following as of March 31, 2017 (in thousands): Amortized Cost Gains in Accumulated Other Comprehensive Income Losses in Accumulated Other Comprehensive Income 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, 2016 (in thousands): Amortized Cost Gains in Accumulated Other Comprehensive Income Losses in Accumulated Other Comprehensive Income 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 |
Estimated fair value of available-for-sale debt securities, by contractual maturity | available-for-sale debt securities as of March 31, 2017 or December 31, 2016 . |
INVENTORY, NET (Tables)
INVENTORY, NET (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Inventory, Net [Abstract] | |
Schedule of Inventory, Current | Inventories consisted of the following (in thousands): March 31, 2017 December 31, 2016 Parts and supplies $ 23,138 $ 22,960 Work-in-progress 7,394 6,268 Finished goods 13,141 11,547 $ 43,673 $ 40,775 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
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 March 31, 2017 and December 31, 2016 (in thousands): Fair Value Measurements as of March 31, 2017 Using Level 1 Level 2 Level 3 Total Assets: Money Market funds $ 701 $ — $ — $ 701 Government sponsored debt securities — — — — Non-government sponsored debt securities — — — — Fair Value Measurements as of December 31, 2016 Using Level 1 Level 2 Level 3 Total Assets: Money Market funds $ 701 $ — $ — $ 701 Government sponsored debt securities — — — $ — Non-government sponsored debt securities — — — $ — |
GOODWILL AND OTHER INTANGIBLE24
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in the carrying amount of goodwill | The changes in the carrying amount of the Company’s goodwill during the period are as follows (in thousands): March 31, 2017 December 31, 2016 Balance at beginning of year $ 85,481 $ 85,481 Balance at end of period $ 85,481 $ 85,481 |
Schedule of intangible assets | The Company’s intangible assets are reflected in the table below (in thousands, except weighted average lives): Finite-lived Indefinite-lived Technology, trade secrets and know-how Customer lists and contracts Other identifiable intangible assets IP R&D Total 2016 Balance as of 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 as of December 31, 2016 81,385 19,097 5,664 12,982 119,128 Less: accumulated amortization: Accumulated amortization balance as of December 31, 2015 (21,646 ) (3,667 ) (756 ) — (26,069 ) Amortization expense (6,491 ) (1,371 ) (356 ) — (8,218 ) Accumulated amortization balance as of December 31, 2016 (28,137 ) (5,038 ) (1,112 ) — (34,287 ) Net balance as of December 31, 2016 $ 53,248 $ 14,059 $ 4,552 $ 12,982 $ 84,841 Weighted average life (in years) 10 10 10 2017 Balance as of December 31, 2016 $ 81,385 $ 19,097 $ 5,664 $ 12,982 $ 119,128 Foreign currency translation adjustments — — — — — Balance as of March 31, 2017 81,385 19,097 5,664 12,982 119,128 Less: accumulated amortization: Accumulated amortization balance as of December 31, 2016 (28,137 ) (5,038 ) (1,112 ) — (34,287 ) Amortization expense (1,712 ) (499 ) (145 ) — (2,356 ) Accumulated amortization balance as of March 31, 2017 (29,849 ) (5,537 ) (1,257 ) — (36,643 ) Net balance as of March 31, 2017 $ 51,536 $ 13,560 $ 4,407 $ 12,982 $ 82,485 Weighted average life (in years) 10 10 10 |
Estimated aggregate amortization expense for the next five years and thereafter | The estimated aggregate amortization expense for the next five fiscal years and thereafter is as follows (in thousands): 2017 (nine months) $ 6,499 2018 8,666 2019 8,666 2020 8,666 2021 8,307 Thereafter 28,699 $ 69,503 IPR&D 12,982 $ 82,485 |
OTHER COMPREHENSIVE (LOSS) IN25
OTHER COMPREHENSIVE (LOSS) INCOME (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table presents the changes in each component of accumulated other comprehensive income (loss), net of tax (in thousands): Foreign Currency Items Available-for-Sale Investments Accumulated Other Comprehensive Income (Loss) Items Balance as of December 31, 2016 $ (1,692 ) $ — $ (1,692 ) Other comprehensive income before reclassifications 263 — 263 Net current-period other comprehensive income 263 — 263 Balance as of March 31, 2017 $ (1,429 ) $ — $ (1,429 ) |
Schedule of Comprehensive Income (Loss) | The following table presents the tax (expense) benefit allocated to each component of other comprehensive income (loss) (in thousands): Three Months Ended March 31, 2017 Before Tax Tax Benefit Net of Tax Foreign currency translation adjustments $ 263 $ — $ 263 Other comprehensive income (loss) $ 263 $ — $ 263 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Calculation of Numerator and Denominator in Earnings Per Share | A reconciliation of the denominators used in computing per share net income, or EPS, is as follows (in thousands, except per share amounts): Three Months Ended March 31, 2017 2016 Basic: Net income $ 9,231 $ 8,770 Less: allocation to participating securities (173 ) — Net income attributable to common stockholders $ 9,058 $ 8,770 Weighted average common stock outstanding 42,898 42,346 Net income per share attributable to common stockholders $ 0.21 $ 0.21 Diluted: Net income $ 9,231 8,770 Less: allocation to participating securities (173 ) — Net income attributable to common stockholders $ 9,058 $ 8,770 Weighted average common stock outstanding 42,898 42,346 Effect of dilutive securities: stock options and awards 91 97 Weighted-average shares used in computing net income per share 42,989 42,443 Net income per share attributable to common stockholders $ 0.21 $ 0.21 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock options activity | The Company’s stock option activity for the three months ended March 31, 2017 was as follows: Stock Options (shares in thousands) Shares Weighted Average Exercise Price Outstanding as of December 31, 2016 2,180 $ 18.06 Granted 1,406 18.08 Exercised (54 ) 16.49 Cancelled or expired (120 ) 19.59 Outstanding as of March 31, 2017 3,412 $ 18.05 |
Restricted shares activity | The Company’s restricted share activity for the three months ended March 31, 2017 was as follows: Restricted Stock Awards (shares in thousands) Shares Weighted Average Grant Price Non-vested as of December 31, 2016 810 $ 18.74 Granted 357 18.13 Vested (310 ) 18.47 Cancelled or expired (19 ) 18.87 Non-vested as of March 31, 2017 838 $ 18.58 Restricted Stock Units (in thousands) Shares Non-vested as of December 31, 2016 457 Granted 63 Vested (49 ) Cancelled or expired (4 ) Non-vested as of March 31, 2017 467 |
Stock-based compensation costs recognized in consolidated statements of income | The following are the stock-based compensation costs recognized in the Company’s condensed consolidated statements of comprehensive income (in thousands): Three Months Ended March 31, 2017 2016 Cost of revenue $ 335 $ 249 Research and development (162 ) 390 Selling, general and administrative 549 541 Stock-based compensation costs reflected in net income $ 722 $ 1,180 |
ACCRUED LIABILITIES (Tables)
ACCRUED LIABILITIES (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Accrued Liabilities, Current [Abstract] | |
Schedule of Accrued Liabilities [Table Text Block] | Accrued liabilities consisted of the following (in thousands): March 31, 2017 December 31, 2016 Compensation and employee benefits $ 6,919 $ 17,229 Dividends payable 2,661 — Income and other taxes 1,620 816 Warranty costs 762 675 Other 3,574 4,084 $ 15,536 $ 22,804 |
Changes in warranty accrual | The following table summarizes the changes in the warranty accrual (in thousands): Accrued warranty costs as of December 31, 2016 $ 675 Warranty adjustments/settlements 336 Accrual for warranty costs (249 ) Accrued warranty costs as of March 31, 2017 $ 762 |
REORGANIZATION (Details)
REORGANIZATION (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and Related Cost, Number of Positions Eliminated | 40 | |
Employee Separation Costs | $ 2,525 | |
Total Restructuring Charges | 2,525 | |
Restructuring Charges Included In Cost Of Revenue | 244 | |
Restructuring Charges And Associated Cost | 2,281 | |
Restructuring Reserve | $ 0 | $ 1,471 |
Employee Separation Payments | $ (1,471) | |
Restructuring and Related Cost, Number of Positions Eliminated, Period Percent | 0.00% | |
Restructuring Charges | $ 2,500 |
BUSINESS COMBINATIONS (Details)
BUSINESS COMBINATIONS (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Business Acquisition [Line Items] | |||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | |
Revenue | $ 77,779 | $ 62,981 | |
Net income | $ 9,231 | $ 8,770 | |
Weighted average common stock outstanding | 42,898 | 42,346 | |
Weighted-average shares used in computing net income per share | 42,989 | 42,443 |
INVESTMENTS (Details)
INVESTMENTS (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Components of Available-for-sale Securities [Line Items] | |||
Payments to Acquire Other Investments | $ 500 | $ 0 | |
Amortized Cost | 701 | $ 701 | |
Gains in Accumulated Other Comprehensive Gain | 0 | 0 | |
Losses in Accumulated Other Comprehensive Gain | 0 | 0 | |
Non-government sponsored debt securities fair value disclosure | 0 | 0 | |
Government sponsored debt securities fair value disclosure | 0 | 0 | |
Estimated Fair Value | 701 | 701 | |
Available-for-sale Securities [Abstract] | |||
Proceeds from sales of available-for-sale-securities | 0 | $ 0 | |
Available-for-sale securities, debt maturities [Abstract] | |||
Amount of investments in a private company | $ 500 | 1,000 | |
Significant influence percentage | 20.00% | ||
Ownership percentage in cost method investment | 20.00% | ||
Money Market Funds [Member] | |||
Components of Available-for-sale Securities [Line Items] | |||
Amortized Cost | $ 701 | 701 | |
Gains in Accumulated Other Comprehensive Gain | 0 | ||
Losses in Accumulated Other Comprehensive Gain | 0 | 0 | |
Estimated Fair Value | 701 | 701 | |
Current government-sponsored debt securities [Member] | |||
Components of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 0 | 0 | |
Gains in Accumulated Other Comprehensive Gain | 0 | 0 | |
Losses in Accumulated Other Comprehensive Gain | 0 | 0 | |
Estimated Fair Value | 0 | 0 | |
Current Non-Government Sponsored Debt Securities [Member] | |||
Components of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 0 | 0 | |
Gains in Accumulated Other Comprehensive Gain | 0 | 0 | |
Losses in Accumulated Other Comprehensive Gain | 0 | 0 | |
Estimated Fair Value | 0 | 0 | |
Total Current Available-for-sale Securities [Member] | |||
Components of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 701 | 701 | |
Gains in Accumulated Other Comprehensive Gain | 0 | 0 | |
Losses in Accumulated Other Comprehensive Gain | 0 | 0 | |
Estimated Fair Value | 701 | 701 | |
Non-current government sponsored debt securities | |||
Components of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 0 | 0 | |
Gains in Accumulated Other Comprehensive Gain | 0 | 0 | |
Losses in Accumulated Other Comprehensive Gain | 0 | 0 | |
Government sponsored debt securities fair value disclosure | 0 | ||
Estimated Fair Value | 0 | ||
Non-Current Non-Government Sponsored Debt Securities [Member] | |||
Components of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 0 | 0 | |
Gains in Accumulated Other Comprehensive Gain | 0 | 0 | |
Losses in Accumulated Other Comprehensive Gain | 0 | 0 | |
Non-government sponsored debt securities fair value disclosure | 0 | ||
Estimated Fair Value | 0 | ||
Total Non-Current Available-for-sale Securities [Member] | |||
Components of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 0 | 0 | |
Gains in Accumulated Other Comprehensive Gain | 0 | 0 | |
Losses in Accumulated Other Comprehensive Gain | 0 | 0 | |
Estimated Fair Value | 0 | $ 0 | |
Investment in Private Company 2 [Member] | |||
Available-for-sale securities, debt maturities [Abstract] | |||
Amount of investments in a private company | $ 1,000 |
INVENTORY, NET (Details)
INVENTORY, NET (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Inventory, Net [Abstract] | ||
Parts and supplies | $ 23,138 | $ 22,960 |
Work-in-progress | 7,394 | 6,268 |
Finished goods | 13,141 | 11,547 |
Inventory, net | $ 43,673 | $ 40,775 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Amounts included in asset accounts [Abstract] | ||
Money Market funds | $ 701 | $ 701 |
Government sponsored debt securities fair value disclosure | 0 | 0 |
Non-government sponsored debt securities fair value disclosure | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | ||
Amounts included in asset accounts [Abstract] | ||
Money Market funds | 701 | 701 |
Government sponsored debt securities fair value disclosure | 0 | 0 |
Non-government sponsored debt securities fair value disclosure | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | ||
Amounts included in asset accounts [Abstract] | ||
Money Market funds | 0 | 0 |
Government sponsored debt securities fair value disclosure | 0 | 0 |
Non-government sponsored debt securities fair value disclosure | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | ||
Amounts included in asset accounts [Abstract] | ||
Money Market funds | 0 | 0 |
Government sponsored debt securities fair value disclosure | 0 | 0 |
Non-government sponsored debt securities fair value disclosure | 0 | $ 0 |
Non-Current Non-Government Sponsored Debt Securities [Member] | ||
Amounts included in asset accounts [Abstract] | ||
Non-government sponsored debt securities fair value disclosure | $ 0 |
GOODWILL AND OTHER INTANGIBLE34
GOODWILL AND OTHER INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | |
Goodwill [Roll Forward] | ||||
Balance at beginning of year | $ 85,481 | $ 85,481 | ||
Balance at end of period | 85,481 | |||
Finite and Indefinite-lived Intangible Assets [Roll Forward] | ||||
Balance, beginning | 119,128 | 78,551 | ||
Business Acquisition, Purchase Price Allocation, Amortizable Intangible Assets | 0 | $ 40,577 | ||
Balance, ending | 119,128 | |||
Less: accumulated amortization [Abstract] | ||||
Accumulated amortization, beginning balance | (34,287) | (26,069) | ||
Amortization expense | (2,356) | $ (1,627) | (8,218) | |
Accumulated amortization, ending balance | (36,643) | |||
Net balance | 82,485 | 84,841 | ||
Estimated aggregate amortization expense for the next five years and thereafter [Abstract] | ||||
2017 (nine months) | 6,499 | |||
2,017 | 8,666 | |||
2,018 | 8,666 | |||
2,019 | 8,666 | |||
2,020 | 8,307 | |||
Thereafter | 28,699 | |||
Total | 69,503 | |||
IPR&D | 12,982 | |||
Total | 82,485 | |||
In-process Research and Development [Member] | ||||
Finite and Indefinite-lived Intangible Assets [Roll Forward] | ||||
Balance, beginning | 12,982 | 0 | ||
Business Acquisition, Purchase Price Allocation, Amortizable Intangible Assets | 12,982 | |||
Balance, ending | 12,982 | |||
Less: accumulated amortization [Abstract] | ||||
Accumulated amortization, beginning balance | 0 | 0 | ||
Amortization expense | 0 | 0 | ||
Accumulated amortization, ending balance | 0 | |||
Net balance | 12,982 | 12,982 | ||
Technology, Trade Secrets, and Know-how [Member] | ||||
Finite and Indefinite-lived Intangible Assets [Roll Forward] | ||||
Balance, beginning | 81,385 | 69,102 | ||
Business Acquisition, Purchase Price Allocation, Amortizable Intangible Assets | 12,283 | |||
Balance, ending | 81,385 | |||
Less: accumulated amortization [Abstract] | ||||
Accumulated amortization, beginning balance | (28,137) | (21,646) | ||
Amortization expense | (1,712) | $ (6,491) | ||
Accumulated amortization, ending balance | (29,849) | |||
Net balance | $ 51,536 | 53,248 | ||
Weighted average life (in years) | 10 years | 10 years | ||
Customer Lists and Contracts [Member] | ||||
Finite and Indefinite-lived Intangible Assets [Roll Forward] | ||||
Balance, beginning | $ 19,097 | $ 7,797 | ||
Business Acquisition, Purchase Price Allocation, Amortizable Intangible Assets | 11,300 | |||
Balance, ending | 19,097 | |||
Less: accumulated amortization [Abstract] | ||||
Accumulated amortization, beginning balance | (5,038) | (3,667) | ||
Amortization expense | (499) | $ (1,371) | ||
Accumulated amortization, ending balance | (5,537) | |||
Net balance | $ 13,560 | 14,059 | ||
Weighted average life (in years) | 10 years | 10 years | ||
Other Identifiable Intangible Assets [Member] | ||||
Finite and Indefinite-lived Intangible Assets [Roll Forward] | ||||
Balance, beginning | $ 5,664 | $ 1,652 | ||
Business Acquisition, Purchase Price Allocation, Amortizable Intangible Assets | 4,012 | |||
Balance, ending | 5,664 | |||
Less: accumulated amortization [Abstract] | ||||
Accumulated amortization, beginning balance | (1,112) | (756) | ||
Amortization expense | (145) | $ (356) | ||
Accumulated amortization, ending balance | (1,257) | |||
Net balance | $ 4,407 | $ 4,552 | ||
Weighted average life (in years) | 10 years | 10 years |
OTHER COMPREHENSIVE (LOSS) IN35
OTHER COMPREHENSIVE (LOSS) INCOME (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||
Balance as of December 31, 2016 | $ (1,692) | |
Other comprehensive income before reclassifications | 263 | |
Net current-period other comprehensive income | 263 | $ 255 |
Balance as of March 31, 2017 | (1,429) | |
Accumulated Translation Adjustment [Member] | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||
Balance as of December 31, 2016 | (1,692) | |
Other comprehensive income before reclassifications | 263 | |
Net current-period other comprehensive income | 263 | |
Balance as of March 31, 2017 | (1,429) | |
Available-for-sale Securities [Member] | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||
Balance as of December 31, 2016 | 0 | |
Other comprehensive income before reclassifications | 0 | |
Net current-period other comprehensive income | 0 | |
Balance as of March 31, 2017 | $ 0 |
OTHER COMPREHENSIVE (LOSS) IN36
OTHER COMPREHENSIVE (LOSS) INCOME (Details 1) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||
Foreign currency translation adjustments, before tax | $ 263 | |
Foreign currency translation adjustments, tax benefit | 0 | |
Foreign currency translation adjustments, net of tax | 263 | |
Other comprehensive (loss) income, before tax | 263 | |
Other comprehensive (loss) income, tax benefit | 0 | |
Other comprehensive (loss) income, net of tax | $ 263 | $ 255 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Numerator: | ||
Net income | $ (9,231) | $ (8,770) |
Undistributed Earnings (Loss) Allocated to Participating Securities, Basic | (173) | 0 |
Net Income (Loss) Available to Common Stockholders, Basic | 9,058 | 8,770 |
Net Income (Loss) Available to Common Stockholders, Basic [Abstract] | $ 9,058 | $ 8,770 |
Diluted: | ||
Weighted average common stock outstanding | 42,898,000 | 42,346,000 |
Effect of dilutive securities: stock options and awards | 91,000 | 97,000 |
Weighted-average shares used in computing net income per share | 42,989,000 | 42,443,000 |
Basic net income per share | $ 0.21 | $ 0.21 |
Net income per share attributable to common stockholders | $ 0.21 | $ 0.21 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive restricted stock awards, stock options | 2,309,340 | 579,256 |
STOCK-BASED COMPENSATION (Detai
STOCK-BASED COMPENSATION (Details) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended |
Mar. 31, 2017USD ($)$ / sharesshares | |
Stock options, additional Disclosures [Abstract] | |
Total unrecognized compensation costs | $ | $ 18.3 |
Unrecognized compensation costs, weighted average period of recognition (in years) | 3 years 3 months 4 days |
Stock Options [Member] | |
Stock options, outstanding [Roll Forward] | |
Options outstanding, beginning balance (in shares) | 2,180 |
Granted (in shares) | 1,406 |
Exercised (in shares) | (54) |
Cancelled or expired (in shares) | (120) |
Options outstanding, ending balance (in shares) | 3,412 |
Stock options, additional Disclosures [Abstract] | |
Weighted-average price, beginning of period (in dollars per share) | $ / shares | $ 18.06 |
Weighted-average price, granted (in dollars per share) | $ / shares | 18.08 |
Weighted average price, exercised (in dollars per share) | $ / shares | 16.49 |
Weighted-average price, cancelled or expired (in dollars per share) | $ / shares | 19.59 |
Weighted-average price, end of period (in dollars per share) | $ / shares | $ 18.05 |
Restricted Stock [Member] | |
Stock options, additional Disclosures [Abstract] | |
Total unrecognized compensation costs | $ | $ 17.2 |
Unrecognized compensation costs, weighted average period of recognition (in years) | 2 years 10 months 6 days |
Equity instruments other than options, nonvested [Roll Forward] | |
Non-vested, beginning balance (in shares) | 810 |
Granted (in shares) | 357 |
Vested (in shares) | (310) |
Cancelled or expired (in shares) | (19) |
Non-vested, ending balance (in shares) | 838 |
Equity instruments other than options, additional Disclosures [Abstract] | |
Non-vested, beginning balance (in dollars per share) | $ / shares | $ 18.74 |
Granted (in dollars per share) | $ / shares | 18.13 |
Vested (in dollars per share) | $ / shares | 18.47 |
Cancelled or expired (in dollars per share) | $ / shares | 18.87 |
Non-vested, ending balance (in dollars per share) | $ / shares | $ 18.58 |
Restricted Stock Units (RSUs) [Member] | |
Stock options, additional Disclosures [Abstract] | |
Total unrecognized compensation costs | $ | $ 3.2 |
Unrecognized compensation costs, weighted average period of recognition (in years) | 2 years 3 months 4 days |
Equity instruments other than options, nonvested [Roll Forward] | |
Non-vested, beginning balance (in shares) | 457 |
Granted (in shares) | 63 |
Vested (in shares) | (49) |
Cancelled or expired (in shares) | (4) |
Non-vested, ending balance (in shares) | 467 |
STOCK-BASED COMPENSATION (Det39
STOCK-BASED COMPENSATION (Details 1) - USD ($) $ / shares in Units, $ in Thousands | Apr. 14, 2017 | Mar. 24, 2017 | Feb. 21, 2017 | Mar. 31, 2017 | Mar. 31, 2016 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||
Dividends Payable, Date Declared | Feb. 21, 2017 | ||||
Share-based Compensation, allocation and classification in income statements [Abstract] | |||||
Dividends Payable, Amount Per Share | $ 0.06 | ||||
Dividends Payable, Date of Record | Mar. 24, 2017 | ||||
Cost of revenue | |||||
Share-based Compensation, allocation and classification in income statements [Abstract] | |||||
Stock-based compensation costs | $ 335 | $ 249 | |||
Research and development | |||||
Share-based Compensation, allocation and classification in income statements [Abstract] | |||||
Stock-based compensation costs | (162) | 390 | |||
Selling, general and administrative | |||||
Share-based Compensation, allocation and classification in income statements [Abstract] | |||||
Stock-based compensation costs | 549 | 541 | |||
Selling, general and administrative | |||||
Share-based Compensation, allocation and classification in income statements [Abstract] | |||||
Stock-based compensation costs | $ 722 | $ 1,180 | |||
Subsequent Event [Member] | |||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||
Dividends Payable, Date to be Paid | Apr. 14, 2017 |
ACCRUED LIABILITIES (Details)
ACCRUED LIABILITIES (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Dec. 31, 2016 | |
Accrued Liabilities, Current [Abstract] | ||
Accrued Employee Benefits, Current | $ 6,919 | $ 17,229 |
Accrued Income And Other Taxes | 1,620 | 816 |
Other Accrued Liabilities, Current | 3,574 | 4,084 |
Accrued liabilities | 15,536 | 22,804 |
Accrued warranty costs [Roll Forward] | ||
Accrued warranty costs as of December 31, 2016 | 675 | |
Warranty adjustments/settlements | (336) | |
Accrual for warranty costs | (249) | |
Accrued warranty costs as of March 31, 2017 | 762 | |
Dividends Payable, Current | $ 2,661 | $ 0 |
INCOME TAXES (Details)
INCOME TAXES (Details) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2017 | |
Effective tax rate, including amounts recorded for discrete events (in hundredths) | 34.09% | |
Statutory rate (in hundredths) | 35.00% | |
Maximum rate for cash taxes expected to be paid (in hundredths) | 15.00% | |
Scenario, Forecast [Member] | ||
Effective tax rate, including amounts recorded for discrete events (in hundredths) | 35.00% |
RECENT ACCOUNTING PRONOUNCEME42
RECENT ACCOUNTING PRONOUNCEMENTS RECENT ACCOUNTING PRONOUNCEMENTS (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
New Accounting Pronouncement, Early Adoption [Line Items] | |||
Income Tax Expense (Benefit) | $ 4,775 | $ 3,052 | |
Retained earnings | $ 75,468 | $ 68,898 |