Luminex (LMNX) 10-Q 31 Oct 17 2017 Q3 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	9 Months Ended
	Sep. 30, 2017	Oct. 30, 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		44,054,473
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q3
Document Type	10-Q
Document Period End Date	Sep. 30, 2017
Amendment Flag	false

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 110,911	$ 93,452
Short-term Investments	0	0
Accounts receivable, net	36,432	32,365
Inventories, net	46,114	40,775
Prepaids and other	9,915	7,145
Total current assets	203,372	173,737
Property and equipment, net	57,686	57,375
Intangible assets, net	78,152	84,841
Deferred income taxes	45,943	42,497
Long-term investments	0	0
Goodwill	85,481	85,481
Other	8,094	6,785
Total assets	478,728	450,716
Current liabilities:
Accounts payable	7,813	12,276
Accrued liabilities	21,175	22,804
Deferred revenue	5,123	5,120
Total current liabilities	34,111	40,200
Deferred revenue	1,609	1,875
Other	4,828	4,962
Total liabilities	40,548	47,037
Stockholders' equity:
Common stock, $.001 par value, 200,000,000 shares authorized; issued and outstanding: 43,303,597 shares at September 30, 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	345,663	336,430
Accumulated other comprehensive loss	(817)	(1,692)
Retained earnings	93,291	68,898
Total stockholders' equity	438,180	403,679
Total liabilities and stockholders' equity	$ 478,728	$ 450,716

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS Parenthetical - $ / shares	Sep. 30, 2017	Dec. 31, 2015
Stockholders' equity:
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	200,000,000	200,000,000
Common stock, issued (in shares)	42,708,733	42,314,581
Common stock, outstanding (in shares)	42,708,733	42,314,581
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	5,000,000	5,000,000
Preferred stock, issued (in shares)	0	0
Preferred stock, outstanding (in shares)	0	0

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS [Abstract]
Document Fiscal Year Focus			2,017
Income Statement [Abstract]
Revenue	$ 74,136	$ 71,221	$ 228,372	$ 198,368
Cost of revenue	28,317	25,556	79,706	62,976
Gross profit	45,819	45,665	148,666	135,392
Operating expenses:
Research and development	10,670	12,762	35,350	35,324
Selling, general and administrative	26,454	26,393	78,604	70,942
Amortization of acquired intangible assets	2,166	2,482	6,689	5,797
Total operating expenses	39,290	41,637	120,643	112,063
Income from operations	6,529	4,028	28,023	23,329
Other income (expense), net	(1)	30	(6)	(1,395)
Income before income taxes	6,528	4,058	28,017	21,934
Income taxes	11,085	(1,307)	4,371	(4,760)
Net income	17,613	2,751	32,388	17,174
Other comprehensive income:
Foreign currency translation adjustments	273	113	875	292
Unrealized gain on available-for-sale securities, net of tax	0	0	0	38
Other comprehensive income (loss)	273	113	875	330
Comprehensive income	$ 17,886	$ 2,864	$ 33,263	$ 17,504
Net income per share, basic	$ 0.40	$ 0.06	$ 0.74	$ 0.40
Shares used in computing net income per share, basic	43,164	42,683	43,110	42,522
Net income per share, diluted	$ 0.40	$ 0.06	$ 0.74	$ 0.40
Shares used in computing net income per share, diluted	43,266	43,136	43,216	42,929
Common Stock, Dividends, Per Share, Declared	$ 60	$ 0	$ 180	$ 0

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Net income	$ 17,613	$ 2,751	$ 32,388	$ 17,174
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	5,609	5,913	16,879	14,401
Stock-based compensation	3,829	3,526	8,577	8,181
Deferred income tax expense	(10,379)	1,540	(3,112)	4,471
Loss on sale or disposal of assets	417	87	417	128
Other	357	(799)	1,279	(870)
Changes in operating assets and liabilities:
Accounts receivable, net	(3,295)	(3,118)	(4,053)	3,555
Inventories, net	988	(2,125)	(5,316)	(6,165)
Other assets	(1,564)	(902)	(2,761)	(230)
Accounts payable	(2,163)	(1,674)	(4,532)	1,050
Accrued liabilities	2,273	(428)	(5,138)	(6,602)
Deferred revenue	81	112	(269)	733
Net cash provided by operating activities	13,766	4,883	34,359	35,826
Cash flows from investing activities:
Sales and maturities of available-for-sale securities	0	0	0	19,491
Purchase of property and equipment	(3,981)	(2,675)	(10,384)	(8,394)
Proceeds from sale of assets	1	42	1	45
Business acquisition consideration, net of cash acquired	0	(1,196)	0	(68,098)
Payments for (Proceeds from) Investments	(700)		(700)
Purchase of cost method investment	0	(500)	(1,000)	(500)
Acquired technology rights	(60)	0	(60)	(200)
Net cash used in investing activities	(4,740)	(4,329)	(12,143)	(57,656)
Cash flows from financing activities:
Payments on debt	0	0	0	(25,000)
Proceeds from issuance of common stock	1,005	1,799	3,234	3,561
Shares surrendered for tax withholding	(28)	(13)	(2,124)	(1,497)
Payments of Ordinary Dividends	(2,645)		(5,281)
Net cash (used in) provided by financing activities	(1,668)	1,786	(4,171)	(22,936)
Effect of foreign currency exchange rate on cash	(152)	87	(586)	365
Change in cash and cash equivalents	7,206	2,427	17,459	(44,401)
Cash and cash equivalents, beginning of period	103,705	81,718	93,452	128,546
Cash and cash equivalents, end of period	$ 110,911	$ 84,145	$ 110,911	$ 84,145

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
Stockholders' Equity Attributable to Parent	$ 403,679	$ 43	$ 336,430	$ (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	(2,056)	$ 0	(2,056)	0	0
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition	679	0	679	0	0
Net income	9,231	0	0	0	9,231
Foreign currency translation adjustments	263	$ 0	0	263	0
Dividends, Common Stock, Cash					(2,661)
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period		35,248
Net income	32,388
Foreign currency translation adjustments	875
Common Stock, Shares, Outstanding		43,091,504
Stockholders' Equity Attributable to Parent	409,868	$ 43	335,786	(1,429)	75,468
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period		41,648
Stock Issued During Period, Value, Stock Options Exercised	684	$ 0	684	0	0
Stock Issued During Period, Shares, Restricted Stock Award, Gross		82,983
Stock Issued During Period, Value, Restricted Stock Award, Gross	(39)	$ 0	(39)	0	0
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition	4,022	$ 0	4,022	0	0
Stock Issued During Period, Shares, Employee Stock Purchase Plans		48,374
Stock Issued During Period, Value, Employee Stock Purchase Plan	813	$ 0	813	0	0
Net income	5,544	0	0	0	5,544
Foreign currency translation adjustments	339	$ 0	0	339	0
Dividends, Common Stock, Cash	(2,644)				(2,668)
Common Stock, Shares, Outstanding		43,264,509
Stockholders' Equity Attributable to Parent	418,587	$ 43	341,290	(1,090)	78,344
Stock Issued During Period, Value, Stock Options Exercised	583	$ 0	583	0	0
Stock Issued During Period, Shares, Restricted Stock Award, Gross		3,840
Stock Issued During Period, Value, Restricted Stock Award, Gross	(28)	$ 0	(28)	0	0
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition	3,664	$ 0	3,664	0	0
Stock Issued During Period, Shares, Employee Stock Purchase Plans		0
Stock Issued During Period, Value, Employee Stock Purchase Plan	131	$ 0	131	0	0
Net income	17,613	0	0	0	17,613
Foreign currency translation adjustments	273	$ 0		273	0
Dividends, Common Stock, Cash	$ (2,643)				(2,666)
Common Stock, Shares, Outstanding	42,708,733	43,303,597
Stockholders' Equity Attributable to Parent	$ 438,180	$ 43	$ 345,663	$ (817)	$ 93,291

BASIS OF PRESENTATION

BASIS OF PRESENTATION	9 Months Ended
	Sep. 30, 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 and nine months ended September 30, 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).

INVESTMENTS

INVESTMENTS	9 Months Ended
	Sep. 30, 2017
Investments [Abstract]
INVESTMENTS	NOTE 2 — INVESTMENTS AND OTHER ASSETS Marketable Securities The Company determines the appropriate classification of its investments in debt and equity securities at the time of purchase and re-evaluates such determinations at each balance sheet date. Marketable securities that are bought and held principally for the purpose of selling them in the near term are classified as trading securities and are reported at fair value, with unrealized gains and losses recognized in earnings. Debt securities are classified as held-to-maturity when the Company has the positive intent and ability to hold the securities to maturity. Held-to-maturity securities are stated at amortized cost, which approximates the fair value of these investments. Debt securities for which the Company does not have the intent or ability to hold to maturity are classified as available-for-sale. Debt and marketable equity securities not classified as held-to-maturity or as trading are classified as available-for-sale, and are carried at fair market value, with the unrealized gains and losses included in the determination of comprehensive income and reported in stockholders’ equity. As of September 30, 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 September 30, 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, Inc. (Nanosphere). Available-for-sale securities consisted of the following as of September 30, 2017 (in thousands): Amortized Cost Gains in Accumulated Other Comprehensive Income Losses in Accumulated Other Comprehensive Income Estimated Fair Value Current: Cash equivalents $ 701 $ — $ — $ 701 Total current securities 701 — — 701 Noncurrent: 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: Cash equivalents $ 701 $ — $ — $ 701 Total current securities 701 — — 701 Noncurrent: Total noncurrent securities — — — — Total available-for-sale securities $ 701 $ — $ — $ 701 There were no proceeds from the sales of available-for-sale securities during the three and nine months ended September 30, 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 September 30, 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 September 30, 2017 and 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 in the nine months ended September 30, 2017 , respectively, the Company made a $ 1.0 million minority interest investment (an aggregate of $ 2.0 million ), 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. During the three months ended September 30, 2017 , the Company entered into a promissory note with the private company, for which it owns an aggregate of $2.0 million minority interest. 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 4 - 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. Other long-term assets consisted of the following (in thousands): September 30, 2017 December 31, 2016 Purchased technology rights (net of accumulated amortization of $6,891 and $6,453 as of September 30, 2017 and December 31, 2016, respectively) $ 3,270 $ 3,567 Cost-method investments 3,000 2,000 Notes receivable (1) 700 — Other 1,124 1,218 $ 8,094 $ 6,785 (1) During the three months ended September 30, 2017 , the Company entered into a promissory note with the private company, for which it owns an aggregate of $2.0 million minority interest. For the nine months ending September 30, 2017 and year ended December 31, 2016 , the Company recognized amortization expense related to the amortization of purchased technology rights of approximately $438,000 and $394,000 , respectively. Future amortization expense is estimated to be $121,000 in the last quarter of 2017 , $430,000 in 2018 , $418,000 in 2019 , $310,000 in 2020 , $285,000 in 2021 , $273,000 in 2022 and $1,433,000 thereafter.

INVENTORY, NET

INVENTORY, NET	9 Months Ended
	Sep. 30, 2017
Inventory, Net [Abstract]
INVENTORIES, NET	NOTE 3 — 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. Net inventories consisted of the following (in thousands): September 30, 2017 December 31, 2016 Parts and supplies $ 24,721 $ 22,960 Work-in-progress 8,167 6,268 Finished goods 13,226 11,547 $ 46,114 $ 40,775

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	9 Months Ended
	Sep. 30, 2017
Fair Value Disclosures [Abstract]
FAIR VALUE MEASUREMENT	NOTE 4 — 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 or nine month period ended September 30, 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 September 30, 2017 and December 31, 2016 (in thousands): Fair Value Measurements as of September 30, 2017 Using Level 1 Level 2 Level 3 Total Assets: Money Market funds $ 701 $ — $ — $ 701 Fair Value Measurements as of December 31, 2016 Using Level 1 Level 2 Level 3 Total Assets: Money Market funds $ 701 $ — $ — $ 701

GOODWILL AND OTHER INTANGIBLE A

GOODWILL AND OTHER INTANGIBLE ASSETS	9 Months Ended
	Sep. 30, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
GOODWILL AND OTHER INTANGIBLE ASSETS	NOTE 5 — 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): September 30, 2017 December 31, 2016 Balance at beginning of year $ 85,481 $ 49,619 Acquisition of Nanosphere — 35,862 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 Balance as of September 30, 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 (4,756 ) (1,499 ) (434 ) — (6,689 ) Accumulated amortization balance as of September 30, 2017 (32,893 ) (6,537 ) (1,546 ) — (40,976 ) Net balance as of September 30, 2017 $ 48,492 $ 12,560 $ 4,118 $ 12,982 $ 78,152 Weighted average life (in years) 11 10 10 The in-process research and development project is the development of the next generation VERIGENE system, VERIGENE II, which we currently believe will start clinical trials in 2018 and be commercially launched in 2019. The estimated cost to complete this project is between $11.0 million and $14.0 million. The estimated aggregate amortization expense for the next five fiscal years and thereafter is as follows (in thousands): 2017 (three months) $ 2,167 2018 8,666 2019 8,666 2020 8,666 2021 8,307 Thereafter 28,698 $ 65,170 IPR&D 12,982 $ 78,152

OTHER COMPREHENSIVE (LOSS) INCO

OTHER COMPREHENSIVE (LOSS) INCOME	9 Months Ended
	Sep. 30, 2017
Statement of Comprehensive Income [Abstract]
Comprehensive Income (Loss) Note	NOTE 6 — OTHER COMPREHENSIVE INCOME (LOSS) Other comprehensive income (loss) represents a measure of all changes in equity that result from recognized transactions and other economic events other than those resulting from investments by and distributions to shareholders. Other comprehensive income (loss) for the Company includes foreign currency translation adjustments. 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 875 — 875 Net current-period other comprehensive income 875 — 875 Balance as of September 30, 2017 $ (817 ) $ — $ (817 ) The following table presents the tax (expense) benefit allocated to each component of other comprehensive income (loss) (in thousands): Three Months Ended September 30, 2017 Nine Months Ended September 30, 2017 Before Tax Tax Benefit Net of Tax Before Tax Tax Benefit Net of Tax Foreign currency translation adjustments $ 273 $ — $ 273 $ 875 $ — $ 875 Unrealized gains on available-for-sale investments — — — — — — Other comprehensive income (loss) $ 273 $ — $ 273 $ 875 $ — $ 875

EARNINGS PER SHARE

EARNINGS PER SHARE	9 Months Ended
	Sep. 30, 2017
Earnings Per Share [Abstract]
EARNINGS PER SHARE	NOTE 7 — EARNINGS PER SHARE A reconciliation of the denominators used in computing per share net income, or EPS, is as follows (in thousands, except per share amounts): Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Basic: Net income $ 17,613 $ 2,751 $ 32,388 $ 17,174 Less: allocation to participating securities (314 ) — (599 ) — Net income attributable to common stockholders $ 17,299 $ 2,751 $ 31,789 $ 17,174 Weighted average common stock outstanding 43,164 42,683 43,110 42,522 Net income per share attributable to common stockholders $ 0.40 $ 0.06 $ 0.74 $ 0.40 Diluted: Net income 17,613 $ 2,751 $ 32,388 $ 17,174 Less: allocation to participating securities (314 ) — (599 ) — Net income attributable to common stockholders $ 17,299 $ 2,751 $ 31,789 $ 17,174 Weighted average common stock outstanding 43,164 42,683 43,110 42,522 Effect of dilutive securities: stock options and awards 102 453 106 407 Weighted-average shares used in computing net income per share 43,266 43,136 43,216 42,929 Net income per share attributable to common stockholders $ 0.40 $ 0.06 $ 0.74 $ 0.40 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 2.5 million and zero shares for the three months ended September 30, 2017 and 2016 , and 2.1 million and zero shares for the nine months ended September 30, 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-forfeitable 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-forfeitable dividends do not have such an obligation so they are not allocated losses.

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	9 Months Ended
	Sep. 30, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
STOCK-BASED COMPENSATION	NOTE 8 — STOCKHOLDERS' EQUITY AND STOCK-BASED COMPENSATION Dividends On February 21, 2017 , May 24, 2017 and September 12, 2017, the Board of Directors declared cash dividends on the Company’s common stock of $0.06 per share, respectively. The dividend declared in February was payable to stockholders of record as of March 24, 2017 and was paid on April 14, 2017 . The dividend declared in May was payable to stockholders of record as of June 23, 2017 and was paid on July 14, 2017. The dividend declared in September was payable to stockholders of record as of September 22, 2017 and was paid on October 13, 2017. The Company's current intent is to pay a continuing dividend on a quarterly basis. Stock-Based Compensation The Company’s stock option activity for the nine months ended September 30, 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 (131 ) 16.49 Cancelled or expired (275 ) 18.61 Outstanding as of September 30, 2017 3,180 $ 18.07 The Company had $15.1 million of total unrecognized compensation costs related to stock options as of September 30, 2017 , which costs are expected to be recognized over a weighted average period of 2.75 years . The Company’s restricted share activity for the nine months ended September 30, 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 370 18.22 Vested (327 ) 18.56 Cancelled or expired (82 ) 18.78 Non-vested as of September 30, 2017 771 $ 18.57 Restricted Stock Units (in thousands) Shares Non-vested as of December 31, 2016 457 Granted 101 Vested (122 ) Cancelled or expired (10 ) Non-vested as of September 30, 2017 426 As of September 30, 2017 , there was $13.1 million and $2.7 million of total unrecognized compensation costs related to Restricted Stock Awards (RSAs) and Restricted Stock Units (RSUs), respectively. This cost is expected to be recognized over a weighted average period of 2.36 years for the RSAs and 2.11 years for the RSUs. The Company issues a small number of cash settled RSUs pursuant to the Company's equity incentive plan in certain foreign countries. These grants do not result in the issuance of common stock and are considered immaterial by the Company. The following are the stock-based compensation costs recognized in the Company’s condensed consolidated statements of comprehensive income (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Cost of revenue $ 409 $ 334 $ 1,146 $ 903 Research and development 702 754 1,299 1,896 Selling, general and administrative 2,718 2,438 6,132 5,382 Stock-based compensation costs reflected in net income $ 3,829 $ 3,526 $ 8,577 $ 8,181

ACCRUED LIABILITIES

ACCRUED LIABILITIES	9 Months Ended
	Sep. 30, 2017
Accrued Liabilities, Current [Abstract]
ACCRUED WARRANTY COSTS	NOTE 9 — ACCRUED LIABILITIES Accrued liabilities consisted of the following (in thousands): September 30, 2017 December 31, 2016 Compensation and employee benefits $ 13,855 $ 17,229 Dividends payable 2,666 — Income and other taxes 585 816 Warranty costs 1,492 675 Other 2,577 4,084 $ 21,175 $ 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 288 Accrual for warranty costs 529 Accrued warranty costs as of September 30, 2017 $ 1,492

INCOME TAXES

INCOME TAXES	9 Months Ended
	Sep. 30, 2017
Income Tax Disclosure [Abstract]
INCOME TAXES	OTE 10 — INCOME TAXES At the end of each interim reporting period, an estimate is made of the effective tax rate expected to be applicable for the full year. The estimated full year’s effective tax rate is used to determine the income tax rate for each applicable interim reporting period. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the results of operations in the period of the enactment date. The effective tax rate for the nine months ended September 30, 2017 was (15.6)% , including amounts recorded for discrete events. This differs from the statutory rate of 35% primarily because of the release of the remaining valuation allowance on the Canadian subsidiary’s deferred tax assets in the third quarter of 2017 and the effect of foreign operations. The Company currently expects a full year effective tax rate of less than 35% , excluding amounts recorded for discrete events. 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 therefore, cash taxes to be paid are expected to continue to be less than 15% of book tax expense. The Company announced in the third quarter of 2017 that is has reached an agreement with Laboratory Corporation of America (LabCorp) whereby LabCorp has agreed to extend its commitment to the Luminex Cystic Fibrosis (CF) product line through December 31, 2019. The Company previously established a valuation allowance against a portion of its deferred tax assets because it was more likely than not that certain deferred tax assets would not be realized. This valuation allowance decreased approximately $12.4 million in the third quarter of 2017 primarily due to our Canadian subsidiary which recorded a release to valuation allowances on its net deferred tax assets. Based on our recent history of generating income in Canada and our expectation to continue to generate future income in Canada in subsequent years with the extension of the LabCorp commitment, we determined that it was more likely than not that Canadian deferred tax assets would be realized. The Company or one of its subsidiaries files income tax returns in the U.S. federal jurisdiction, Australia, Canada, China, Hong Kong, Japan, the Netherlands, and various states. Due to net operating losses, the U.S., Canadian and Australian tax returns dating back to 2011 can still be reviewed by the taxing authorities. The Netherlands tax returns dating back to 2013 can still be reviewed by the taxing authorities. For the nine months ended September 30, 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	9 Months Ended
	Sep. 30, 2017
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE 11 - 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	9 Months Ended
	Sep. 30, 2017
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
RECENT ACCOUNTING PRONOUNCEMENTS	NOTE 12 — RECENT ACCOUNTING PRONOUNCEMENTS Recently adopted accounting guidance In July 2015, the FASB issued guidance regarding the measurement of inventory. The 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 January 2017, the FASB issued guidance simplifying how companies calculate goodwill impairments by eliminating Step 2 of the impairment test. The guidance requires companies to compare the fair value of a reporting unit to its carrying amount and recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value. The guidance is effective for annual periods beginning after December 15, 2019, and is applicable to the Company in fiscal 2020. 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 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 addressed by current U.S. GAAP and thereby reduced 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 2 - Investments and Other Assets. 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 plans on 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 been 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 the Company's preliminary assessments, these standards will impact the timing of the recognition of the Company's royalty revenue as the Company has historically waited until the partners have reported end user sales to recognize royalty revenue. With the implementation of the standard, the Company expects to record a cumulative adjustment increasing retained earnings which is estimated to be approximately one quarter of royalty revenue. After implementation, the Company will begin recording estimated royalty revenue each quarter to coincide with the timing of the end user sale by the partner, with any necessary corrections to the estimates in the following quarter. 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.

INVESTMENTS (Tables)

INVESTMENTS (Tables)	9 Months Ended
	Sep. 30, 2017
Investments [Abstract]
Components of available-for-sale securities	Available-for-sale securities consisted of the following as of September 30, 2017 (in thousands): Amortized Cost Gains in Accumulated Other Comprehensive Income Losses in Accumulated Other Comprehensive Income Estimated Fair Value Current: Cash equivalents $ 701 $ — $ — $ 701 Total current securities 701 — — 701 Noncurrent: 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: Cash equivalents $ 701 $ — $ — $ 701 Total current securities 701 — — 701 Noncurrent: Total noncurrent securities — — — — Total available-for-sale securities $ 701 $ — $ — $ 701
Estimated fair value of available-for-sale debt securities, by contractual maturity	There were no available-for-sale debt securities as of September 30, 2017 and December 31, 2016 .

INVENTORY, NET (Tables)

INVENTORY, NET (Tables)	9 Months Ended
	Sep. 30, 2017
Inventory, Net [Abstract]
Schedule of Inventory, Current	nventories consisted of the following (in thousands): September 30, 2017 December 31, 2016 Parts and supplies $ 24,721 $ 22,960 Work-in-progress 8,167 6,268 Finished goods 13,226 11,547 $ 46,114 $ 40,775

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	9 Months Ended
	Sep. 30, 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 September 30, 2017 and December 31, 2016 (in thousands): Fair Value Measurements as of September 30, 2017 Using Level 1 Level 2 Level 3 Total Assets: Money Market funds $ 701 $ — $ — $ 701 Fair Value Measurements as of December 31, 2016 Using Level 1 Level 2 Level 3 Total Assets: Money Market funds $ 701 $ — $ — $ 701

GOODWILL AND OTHER INTANGIBLE22

GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)	9 Months Ended
	Sep. 30, 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): September 30, 2017 December 31, 2016 Balance at beginning of year $ 85,481 $ 49,619 Acquisition of Nanosphere — 35,862 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 Balance as of September 30, 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 (4,756 ) (1,499 ) (434 ) — (6,689 ) Accumulated amortization balance as of September 30, 2017 (32,893 ) (6,537 ) (1,546 ) — (40,976 ) Net balance as of September 30, 2017 $ 48,492 $ 12,560 $ 4,118 $ 12,982 $ 78,152 Weighted average life (in years) 11 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 (three months) $ 2,167 2018 8,666 2019 8,666 2020 8,666 2021 8,307 Thereafter 28,698 $ 65,170 IPR&D 12,982 $ 78,152

OTHER COMPREHENSIVE (LOSS) IN23

OTHER COMPREHENSIVE (LOSS) INCOME (Tables)	9 Months Ended
	Sep. 30, 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 875 — 875 Net current-period other comprehensive income 875 — 875 Balance as of September 30, 2017 $ (817 ) $ — $ (817 )
Schedule of Comprehensive Income (Loss)	The following table presents the tax (expense) benefit allocated to each component of other comprehensive income (loss) (in thousands): Three Months Ended September 30, 2017 Nine Months Ended September 30, 2017 Before Tax Tax Benefit Net of Tax Before Tax Tax Benefit Net of Tax Foreign currency translation adjustments $ 273 $ — $ 273 $ 875 $ — $ 875 Unrealized gains on available-for-sale investments — — — — — — Other comprehensive income (loss) $ 273 $ — $ 273 $ 875 $ — $ 875

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	9 Months Ended
	Sep. 30, 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 September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Basic: Net income $ 17,613 $ 2,751 $ 32,388 $ 17,174 Less: allocation to participating securities (314 ) — (599 ) — Net income attributable to common stockholders $ 17,299 $ 2,751 $ 31,789 $ 17,174 Weighted average common stock outstanding 43,164 42,683 43,110 42,522 Net income per share attributable to common stockholders $ 0.40 $ 0.06 $ 0.74 $ 0.40 Diluted: Net income 17,613 $ 2,751 $ 32,388 $ 17,174 Less: allocation to participating securities (314 ) — (599 ) — Net income attributable to common stockholders $ 17,299 $ 2,751 $ 31,789 $ 17,174 Weighted average common stock outstanding 43,164 42,683 43,110 42,522 Effect of dilutive securities: stock options and awards 102 453 106 407 Weighted-average shares used in computing net income per share 43,266 43,136 43,216 42,929 Net income per share attributable to common stockholders $ 0.40 $ 0.06 $ 0.74 $ 0.40

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables)	9 Months Ended
	Sep. 30, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock options activity	The Company’s stock option activity for the nine months ended September 30, 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 (131 ) 16.49 Cancelled or expired (275 ) 18.61 Outstanding as of September 30, 2017 3,180 $ 18.07
Restricted shares activity	The Company’s restricted share activity for the nine months ended September 30, 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 370 18.22 Vested (327 ) 18.56 Cancelled or expired (82 ) 18.78 Non-vested as of September 30, 2017 771 $ 18.57 Restricted Stock Units (in thousands) Shares Non-vested as of December 31, 2016 457 Granted 101 Vested (122 ) Cancelled or expired (10 ) Non-vested as of September 30, 2017 426
Stock-based compensation costs recognized in consolidated statements of income	The following are the stock-based compensation costs recognized in the Company’s condensed consolidated statements of comprehensive income (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Cost of revenue $ 409 $ 334 $ 1,146 $ 903 Research and development 702 754 1,299 1,896 Selling, general and administrative 2,718 2,438 6,132 5,382 Stock-based compensation costs reflected in net income $ 3,829 $ 3,526 $ 8,577 $ 8,181

ACCRUED LIABILITIES (Tables)

ACCRUED LIABILITIES (Tables)	9 Months Ended
	Sep. 30, 2017
Accrued Liabilities, Current [Abstract]
Schedule of Accrued Liabilities [Table Text Block]	Accrued liabilities consisted of the following (in thousands): September 30, 2017 December 31, 2016 Compensation and employee benefits $ 13,855 $ 17,229 Dividends payable 2,666 — Income and other taxes 585 816 Warranty costs 1,492 675 Other 2,577 4,084 $ 21,175 $ 22,804
Changes in warranty accrual	Accrued warranty costs as of December 31, 2016 $ 675 Warranty adjustments/settlements 288 Accrual for warranty costs 529 Accrued warranty costs as of September 30, 2017 $ 1,492

BUSINESS COMBINATIONS (Details)

BUSINESS COMBINATIONS (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended				9 Months Ended		12 Months Ended
	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016	Dec. 31, 2015
Business Acquisition [Line Items]
Common stock, par value (in dollars per share)	$ 0.001				$ 0.001			$ 0.001
Goodwill							$ 35,862
Revenue	$ 74,136			$ 71,221	$ 228,372	$ 198,368
Net loss	$ 17,613	$ 5,544	$ 9,231	$ 2,751	$ 32,388	$ 17,174
Net income attributable to common stockholders	43,164			42,683	43,110	42,522
Net income per share attributable to common stockholders	43,266			43,136	43,216	42,929

INVESTMENTS (Details)

INVESTMENTS (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Components of Available-for-sale Securities [Line Items]
Payments to Acquire Other Investments	$ 0	$ 500	$ 1,000	$ 500
Amortized Cost	701		701		$ 701
Gains in Accumulated Other Comprehensive Gain	0		0		0
Losses in Accumulated Other Comprehensive Gain	0		0		0
Estimated Fair Value	701		701		701
Available-for-sale Securities [Abstract]
Proceeds from sales of available-for-sale-securities	$ 0	$ 0	$ 19,500	$ 0
Available-for-sale securities, debt maturities [Abstract]
Ownership percentage in cost method investment	20.00%		20.00%
Money Market Funds [Member]
Components of Available-for-sale Securities [Line Items]
Amortized Cost	$ 701		$ 701		701
Gains in Accumulated Other Comprehensive Gain	0		0		0
Losses in Accumulated Other Comprehensive Gain	0		0		0
Estimated Fair Value	701		701		701
Total Current Available-for-sale Securities [Member]
Components of Available-for-sale Securities [Line Items]
Amortized Cost	701		701		701
Gains in Accumulated Other Comprehensive Gain	0		0		0
Losses in Accumulated Other Comprehensive Gain	0		0		0
Estimated Fair Value	701		701		701
Total Non-Current Available-for-sale Securities [Member]
Components of Available-for-sale Securities [Line Items]
Amortized Cost	0		0		0
Gains in Accumulated Other Comprehensive Gain	0		0		0
Losses in Accumulated Other Comprehensive Gain	0		0		0
Estimated Fair Value	0		0		0
Investment in Private Company 1 [Member]
Available-for-sale securities, debt maturities [Abstract]
Amount of investments in a private company	2,000		2,000
Investment in Private Company 2 [Member]
Available-for-sale securities, debt maturities [Abstract]
Amount of investments in a private company	$ 1,000		$ 1,000		$ 1,000

INVENTORY, NET (Details)

INVENTORY, NET (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Inventory, Net [Abstract]
Parts and supplies	$ 24,721	$ 22,960
Work-in-progress	8,167	6,268
Finished goods	13,226	11,547
Inventory, net	$ 46,114	$ 40,775

FAIR VALUE MEASUREMENTS (Detail

FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Amounts included in asset accounts [Abstract]
Money Market funds	$ 701	$ 701
Fair Value, Inputs, Level 1 [Member]
Amounts included in asset accounts [Abstract]
Money Market funds	701	701
Fair Value, Inputs, Level 2 [Member]
Amounts included in asset accounts [Abstract]
Money Market funds	0	0
Fair Value, Inputs, Level 3 [Member]
Amounts included in asset accounts [Abstract]
Money Market funds	$ 0	$ 0

GOODWILL AND OTHER INTANGIBLE31

GOODWILL AND OTHER INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016	Dec. 31, 2015
Intangible Assets [Line Items]
Business Acquisition, Purchase Price Allocation, Amortizable Intangible Assets					$ 40,577
Goodwill [Roll Forward]
Balance at beginning of year			$ 85,481	$ 49,619	49,619
Goodwill					35,862
Balance at end of period	$ 85,481		85,481		85,481	$ 49,619
Finite and Indefinite-lived Intangible Assets [Roll Forward]
Balance, beginning			119,128	78,551	78,551
Balance, ending	119,128		119,128		119,128	78,551
Less: accumulated amortization [Abstract]
Accumulated amortization, beginning balance			(34,287)	(26,069)	(26,069)
Amortization expense	(2,166)	$ (2,482)	(6,689)	(5,797)		(8,218)
Accumulated amortization, ending balance	(40,976)		(40,976)		(34,287)	(26,069)
Net balance	78,152		78,152		84,841
Estimated aggregate amortization expense for the next five years and thereafter [Abstract]
2017 (three months)	2,167		2,167
2,018	8,666		8,666
2,019	8,666		8,666
2,020	8,666		8,666
2,021	8,307		8,307
Thereafter	28,698		28,698
Total	65,170		65,170
IPR&D	12,982		12,982
Total	78,152		78,152
In-process Research and Development [Member]
Intangible Assets [Line Items]
Business Acquisition, Purchase Price Allocation, Amortizable Intangible Assets					12,982
Finite and Indefinite-lived Intangible Assets [Roll Forward]
Balance, beginning			12,982	0	0
Balance, ending	12,982		12,982		12,982	0
Less: accumulated amortization [Abstract]
Accumulated amortization, beginning balance			0	0	0
Amortization expense			0			0
Accumulated amortization, ending balance	0		0		0	0
Net balance	12,982		12,982		12,982
Technology, Trade Secrets, and Know-how [Member]
Intangible Assets [Line Items]
Business Acquisition, Purchase Price Allocation, Amortizable Intangible Assets					12,283
Finite and Indefinite-lived Intangible Assets [Roll Forward]
Balance, beginning			81,385	69,102	69,102
Balance, ending	81,385		81,385		81,385	69,102
Less: accumulated amortization [Abstract]
Accumulated amortization, beginning balance			(28,137)	(21,646)	(21,646)
Amortization expense			(4,756)			(6,491)
Accumulated amortization, ending balance	(32,893)		(32,893)		(28,137)	$ (21,646)
Net balance	48,492		$ 48,492		53,248
Weighted average life (in years)			11 years			10 years
Customer Lists and Contracts [Member]
Intangible Assets [Line Items]
Business Acquisition, Purchase Price Allocation, Amortizable Intangible Assets					11,300
Finite and Indefinite-lived Intangible Assets [Roll Forward]
Balance, beginning			$ 19,097	7,797	7,797
Balance, ending	19,097		19,097		19,097	$ 7,797
Less: accumulated amortization [Abstract]
Accumulated amortization, beginning balance			(5,038)	(3,667)	(3,667)
Amortization expense			(1,499)			(1,371)
Accumulated amortization, ending balance	(6,537)		(6,537)		(5,038)	$ (3,667)
Net balance	12,560		$ 12,560		14,059
Weighted average life (in years)			10 years			10 years
Other Identifiable Intangible Assets [Member]
Intangible Assets [Line Items]
Business Acquisition, Purchase Price Allocation, Amortizable Intangible Assets					4,012
Finite and Indefinite-lived Intangible Assets [Roll Forward]
Balance, beginning			$ 5,664	1,652	1,652
Balance, ending	5,664		5,664		5,664	$ 1,652
Less: accumulated amortization [Abstract]
Accumulated amortization, beginning balance			(1,112)	$ (756)	(756)
Amortization expense			(434)			(356)
Accumulated amortization, ending balance	(1,546)		(1,546)		(1,112)	$ (756)
Net balance	$ 4,118		$ 4,118		$ 4,552
Weighted average life (in years)			10 years			10 years

OTHER COMPREHENSIVE (LOSS) IN32

OTHER COMPREHENSIVE (LOSS) INCOME (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
Balance as of December 31, 2016			$ (1,692)
Other comprehensive income before reclassifications			875
Net current-period other comprehensive income	$ 273	$ 113	875	$ 330
Balance as of September 30, 2017	(817)		(817)
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			875
Net current-period other comprehensive income			875
Balance as of September 30, 2017	(817)		(817)
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 September 30, 2017	$ 0		$ 0

OTHER COMPREHENSIVE (LOSS) IN33

OTHER COMPREHENSIVE (LOSS) INCOME (Details 1) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Other Comprehensive Income (Loss), Net of Tax [Abstract]
Foreign currency translation adjustments, before tax	$ 273		$ 875
Foreign currency translation adjustments, tax benefit	0		0
Foreign currency translation adjustments, net of tax	273		875
Unrealized gains on available-for-sale investments, before tax	0		0
Unrealized gains on available-for-sale investments, tax benefit	0		0
Unrealized gains on available-for-sale investments, net of tax	0		0
Other comprehensive (loss) income, before tax	273		875
Other comprehensive (loss) income, tax benefit	0		0
Other comprehensive (loss) income, net of tax	$ 273	$ 113	$ 875	$ 330

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended				9 Months Ended
	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Numerator:
Net income	$ 17,613	$ 5,544	$ 9,231	$ 2,751	$ 32,388	$ 17,174
Undistributed Earnings (Loss) Allocated to Participating Securities, Basic	(314)			0	(599)	0
Net Income (Loss) Available to Common Stockholders, Basic	$ 17,299			$ 2,751	$ 31,789	$ 17,174
Less: allocation to participating securities
Net income attributable to common stockholders	43,164			42,683	43,110	42,522
Net income per share attributable to common stockholders	43,266			43,136	43,216	42,929
Basic net income per share	$ 0.40			$ 0.06	$ 0.74	$ 0.40
Net income per share attributable to common stockholders	$ 0.40			$ 0.06	$ 0.74	$ 0.40
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive restricted stock awards, stock options	102			453	106	407

STOCK-BASED COMPENSATION (Detai

STOCK-BASED COMPENSATION (Details) $ / shares in Units, shares in Thousands, $ in Millions	9 Months Ended
	Sep. 30, 2017USD ($)$ / sharesshares
Stock options, additional Disclosures [Abstract]
Total unrecognized compensation costs | $	$ 15.1
Unrecognized compensation costs, weighted average period of recognition (in years)	2 years 9 months
Stock Options [Member]
Stock options, outstanding [Roll Forward]
Options outstanding, beginning balance (in shares)	2,180
Granted (in shares)	1,406
Exercised (in shares)	(131)
Cancelled or expired (in shares)	(275)
Options outstanding, ending balance (in shares)	3,180
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	18.61
Weighted-average price, end of period (in dollars per share) | $ / shares	$ 18.07
Restricted Stock [Member]
Stock options, additional Disclosures [Abstract]
Total unrecognized compensation costs | $	$ 13.1
Unrecognized compensation costs, weighted average period of recognition (in years)	2 years 4 months 9 days
Equity instruments other than options, nonvested [Roll Forward]
Non-vested, beginning balance (in shares)	810
Granted (in shares)	370
Vested (in shares)	(327)
Cancelled or expired (in shares)	(82)
Non-vested, ending balance (in shares)	771
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	18.22
Vested (in dollars per share) | $ / shares	18.56
Cancelled or expired (in dollars per share) | $ / shares	18.78
Non-vested, ending balance (in dollars per share) | $ / shares	$ 18.57
Restricted Stock Units (RSUs) [Member]
Stock options, additional Disclosures [Abstract]
Total unrecognized compensation costs | $	$ 2.7
Unrecognized compensation costs, weighted average period of recognition (in years)	2 years 1 month 9 days
Equity instruments other than options, nonvested [Roll Forward]
Non-vested, beginning balance (in shares)	457
Granted (in shares)	101
Vested (in shares)	(122)
Cancelled or expired (in shares)	(10)
Non-vested, ending balance (in shares)	426

STOCK-BASED COMPENSATION (Det36

STOCK-BASED COMPENSATION (Details 1) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Cost of revenue
Share-based Compensation, allocation and classification in income statements [Abstract]
Stock-based compensation costs	$ 409	$ 334	$ 1,146	$ 903
Research and development
Share-based Compensation, allocation and classification in income statements [Abstract]
Stock-based compensation costs	702	754	1,299	1,896
Selling, general and administrative
Share-based Compensation, allocation and classification in income statements [Abstract]
Stock-based compensation costs	2,718	2,438	6,132	5,382
Selling, general and administrative
Share-based Compensation, allocation and classification in income statements [Abstract]
Stock-based compensation costs	$ 3,829	$ 3,526	$ 8,577	$ 8,181

ACCRUED LIABILITIES (Details)

ACCRUED LIABILITIES (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Accrued Liabilities, Current [Abstract]
Accrued Employee Benefits, Current	$ 13,855	$ 17,229
Dividends Payable	2,666	0
Accrued Income And Other Taxes	585	816
Other Accrued Liabilities, Current	2,577	4,084
Accrued liabilities	21,175	$ 22,804
Accrued warranty costs [Roll Forward]
Accrued warranty costs as of December 31, 2016	675
Warranty adjustments/settlements	(288)
Accrual for warranty costs	529
Accrued warranty costs as of September 30, 2017	$ 1,492

INCOME TAXES (Details)

INCOME TAXES (Details)	9 Months Ended
	Sep. 30, 2017
Effective tax rate, including amounts recorded for discrete events (in hundredths)	(15.60%)
Statutory rate (in hundredths)	35.00%
Maximum rate for cash taxes expected to be paid (in hundredths)	15.00%

RECENT ACCOUNTING PRONOUNCEME39

RECENT ACCOUNTING PRONOUNCEMENTS RECENT ACCOUNTING PRONOUNCEMENTS (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
New Accounting Pronouncement, Early Adoption [Line Items]
Income Tax Expense (Benefit)	$ (11,085)	$ 1,307	$ (4,371)	$ 4,760
Retained earnings	$ 93,291		$ 93,291		$ 68,898