Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | May 07, 2018 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | LMNX | |
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 | 44,448,132 |
BALANCE SHEETS
BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 128,655 | $ 127,112 |
Accounts receivable, net of allowance for doubtful accounts of $285 and $345 | 46,283 | 40,648 |
Inventory, Net | 52,248 | 49,478 |
Other | 7,692 | 7,403 |
Total current assets | 234,878 | 224,641 |
Property and equipment, net of accumulated depreciation of $25,523 and $24,179 | 58,589 | 58,258 |
Finite-Lived Intangible Assets, Net | 73,819 | 75,985 |
Deferred Income Tax Assets, Net | 34,858 | 37,552 |
Goodwill | 85,481 | 85,481 |
Other Assets, Noncurrent | 12,888 | 8,599 |
Total assets | 500,513 | 490,516 |
Current liabilities: | ||
Accounts payable | 14,705 | 14,537 |
Accrued Liabilities, Current | 15,188 | 25,990 |
Short-term unearned revenue | 5,237 | 4,721 |
Total current liabilities | 35,130 | 45,248 |
Long-term unearned revenue | 1,410 | 1,498 |
Other long-term liabilities | 6,967 | 5,863 |
Total liabilities | 43,507 | 52,609 |
Stockholders' equity: | ||
Common stock and paid-in capital – shares authorized 24,000; outstanding 7,720 and 7,708 | 44 | 43 |
Preferred Stock, Value, Issued | 0 | 0 |
Additional Paid in Capital | 350,810 | 350,834 |
Accumulated Other Comprehensive Income (Loss), Net of Tax | (233) | (625) |
Retained earnings | 106,385 | 87,655 |
Total stockholders' equity | 457,006 | 437,907 |
Total liabilities and stockholders' equity | $ 500,513 | $ 490,516 |
BALANCE SHEETS (Parenthetical)
BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Common Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common Stock, Shares, Issued | 42,708,733 | 42,314,581 |
Common Stock, Shares, Outstanding | 42,708,733 | 42,314,581 |
Preferred Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 |
Preferred Stock, Shares Authorized | 5,000,000 | 5,000,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
INCOME STATEMENTS
INCOME STATEMENTS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Revenue | ||
Total revenue | $ 82,662 | $ 77,779 |
Cost of revenue | ||
Total cost of revenue | 29,074 | 24,993 |
Gross margin | 53,588 | 52,786 |
Research and development | 10,326 | 12,420 |
Selling, General and Administrative Expense | 25,830 | 23,998 |
Amortization of Intangible Assets | 2,166 | 2,356 |
Operating Expenses | 38,322 | 38,774 |
Operating income | 15,266 | 14,012 |
Other income, net | 449 | (6) |
Income before income taxes | 15,715 | 14,006 |
Provision for income taxes | (2,318) | (4,775) |
Net income | 13,397 | 9,231 |
Net Income (Loss) Available to Common Stockholders, Basic | 13,192 | 9,058 |
Net Income (Loss) Available to Common Stockholders, Diluted | $ 13,192 | $ 9,058 |
Earnings per share: | ||
Earnings Per Share, Basic | $ 0.30 | $ 0.21 |
Earnings Per Share, Diluted | $ 0.30 | $ 0.21 |
Weighted average shares outstanding: | ||
Weighted Average Number of Shares Outstanding, Basic | 43,462 | 42,898 |
Weighted Average Number of Shares Outstanding, Diluted | 43,633 | 42,989 |
Cash dividends declared per common share | $ 0.06 | $ 0.06 |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | $ 392 | $ 263 |
Other comprehensive income (loss) | 392 | 263 |
Comprehensive income | $ 13,789 | $ 9,494 |
CASH FLOWS STATEMENTS
CASH FLOWS STATEMENTS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Operations | ||
Net income | $ 13,397 | $ 9,231 |
Adjustments to reconcile net income to net cash from operations: | ||
Depreciation, amortization, and other | 5,893 | 5,619 |
Stock-based compensation expense | 1,261 | 722 |
Deferred income taxes | 1,453 | 2,935 |
Other Noncash Income (Expense) | 31 | 444 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 5,556 | (4,669) |
Inventories | (2,735) | (2,887) |
Other current assets | (203) | 695 |
Accounts payable | 320 | (3,706) |
Other current liabilities | (11,439) | (10,072) |
Unearned revenue | 422 | 197 |
Net cash from operations | 13,956 | (1,491) |
Financing | ||
Common stock issued | 1,126 | 734 |
Payments Related to Tax Withholding for Share-based Compensation | (2,003) | (2,056) |
Common stock cash dividends paid | (2,624) | 0 |
Net cash from (used in) financing | (3,501) | (1,322) |
Investing | ||
Additions to property and equipment | (4,068) | (3,433) |
Increase (Decrease) in Notes Receivables | (500) | 0 |
Purchases of investments | 0 | (500) |
Payments to Acquire Intangible Assets | (4,000) | 0 |
Net cash used in investing | (8,568) | (3,933) |
Effect of foreign exchange rates on cash and cash equivalents | (344) | (240) |
Net change in cash and cash equivalents | 1,543 | (6,986) |
Cash and cash equivalents, beginning of period | 127,112 | 93,452 |
Cash and cash equivalents, end of period | $ 128,655 | $ 86,466 |
STOCKHOLDERS' EQUITY STATEMENTS
STOCKHOLDERS' EQUITY STATEMENTS - USD ($) $ in Thousands | Total | Common stock | Additional Paid-in Capital | Accumulated other comprehensive income | Retained earnings |
Common Stock, Shares, Outstanding | 42,314,581 | 43,404,493 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 40,000 | 40,142 | |||
Stock Issued During Period, Value, Stock Options Exercised | $ 697 | $ 0 | $ 697 | $ 0 | $ 0 |
Stock Issued During Period, Shares, Restructed Stock Award, Net of Forfeitures | 222,534 | ||||
Stock Issued During Period, Value, Restricted Stock Award, Gross | (2,002) | $ (1) | (2,003) | 0 | 0 |
Balance, beginning of period at Dec. 31, 2017 | 437,907 | 43 | 350,834 | (625) | 87,655 |
Net income | 13,397 | 0 | 0 | 0 | 13,397 |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | 392 | 0 | 0 | 392 | 0 |
Other comprehensive income (loss) | 392 | ||||
Common stock cash dividends | (2,643) | 0 | (47) | 0 | (2,690) |
Stockholders' Equity, Other | (8,023) | 8,023 | |||
Stock-based compensation expense | 1,235 | 0 | 1,235 | 0 | 0 |
Balance, end of period at Mar. 31, 2018 | 457,006 | $ 44 | 350,810 | (233) | 106,385 |
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 0 | ||||
Stock Issued During Period, Value, Employee Stock Purchase Plan | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
Common Stock, Shares, Outstanding | 42,708,733 | 43,667,169 |
ACCOUNTING POLICIES
ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | 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, 2018 are not necessarily indicative of the results that may be expected for the year ending December 31, 2018 . 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, 2017 (the 2017 10-K). |
INVENTORIES
INVENTORIES | 3 Months Ended |
Mar. 31, 2018 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | 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): March 31, 2018 December 31, 2017 Parts and supplies $ 30,917 $ 29,266 Work-in-progress 10,438 8,712 Finished goods 10,893 11,500 $ 52,248 $ 49,478 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | 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, 2018 . The Company's financial assets and liabilities were all Level 1 money market fund assets and were measured at fair value on a recurring basis. These Level 1 assets were $0.7 million as of March 31, 2018 and December 31, 2017 . Fair Value Measurements as of March 31, 2018 Using Level 1 Level 2 Level 3 Total Assets: Money Market funds $ 701 $ — $ — $ 701 Fair Value Measurements as of December 31, 2017 Using Level 1 Level 2 Level 3 Total Assets: Money Market funds $ 701 $ — $ — $ 701 |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 3 Months Ended |
Mar. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Research, Development, and Computer Software Disclosure [Text Block] | The in-process research and development (IP R&D) project is the development of the next generation VERIGENE ® system, VERIGENE II, which we currently believe will start clinical trials in 2018 and launch commercially in 2019. The estimated cost to complete this project is between $3.5 million and $5.5 million. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME | 3 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
Comprehensive Income, Policy [Policy Text Block] | 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, 2017 $ (625 ) $ — $ (625 ) Other comprehensive income before reclassifications 392 — 392 Net current-period other comprehensive income 392 — 392 Balance as of March 31, 2018 $ (233 ) $ — $ (233 ) The following table presents the tax (expense) benefit allocated to each component of other comprehensive income (loss) (in thousands): Three Months Ended March 31, 2018 Before Tax Tax Benefit Net of Tax Foreign currency translation adjustments $ 392 $ — $ 392 Unrealized gains on available-for-sale investments — — — Other comprehensive income (loss) $ 392 $ — $ 392 |
EARNINGS PER SHARE
EARNINGS PER SHARE | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | A reconciliation of the denominators used in computing per share net income (EPS) is as follows (in thousands, except per share amounts): Three Months Ended March 31, 2018 2017 Basic: Net income $ 13,397 $ 9,231 Less: allocation to participating securities (205 ) (173 ) Net income attributable to common stockholders $ 13,192 $ 9,058 Weighted average common stock outstanding 43,462 42,898 Net income per share attributable to common stockholders $ 0.30 $ 0.21 Diluted: Net income $ 13,397 $ 9,231 Less: allocation to participating securities (205 ) (173 ) Net income attributable to common stockholders $ 13,192 $ 9,058 Weighted average common stock outstanding 43,462 42,898 Effect of dilutive securities: stock options and awards 171 91 Weighted-average shares used in computing net income per share 43,633 42,989 Net income per share attributable to common stockholders $ 0.30 $ 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 2.2 million and 2.3 million shares for the three months ended March 31, 2018 and 2017 , 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 EPS, which requires the calculation of separate EPS 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. |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 3 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
Shareholders' Equity and Share-based Payments [Text Block] | Dividends On January 24, 2018 , the Board of Directors declared a cash dividend on the Company’s common stock of $0.06 per share. The dividend declared was payable to stockholders of record as of March 23, 2018 and was paid on April 13, 2018 . 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, 2018 was as follows: Stock Options (shares in thousands) Shares Weighted Average Exercise Price Outstanding as of December 31, 2017 3,086 $ 18.10 Granted 752 21.98 Exercised (40 ) 17.36 Cancelled or expired (370 ) 18.50 Outstanding as of March 31, 2018 3,428 $ 18.96 The Company had $15.8 million of total unrecognized compensation costs related to stock options as of March 31, 2018 . These costs are expected to be recognized over a weighted average period of 2.88 years . The Company’s restricted share activity for the three months ended March 31, 2018 was as follows: Restricted Stock Awards (shares in thousands) Shares Weighted Average Grant Price Non-vested as of December 31, 2017 715 $ 18.46 Granted 367 21.97 Vested (271 ) 18.35 Cancelled or expired (24 ) 19.00 Non-vested as of March 31, 2018 787 $ 20.12 Restricted Stock Units (in thousands) Shares Non-vested as of December 31, 2017 423 Granted 55 Vested (46 ) Cancelled or expired — Non-vested as of March 31, 2018 432 As of March 31, 2018 , there were $17.0 million and $2.8 million of total unrecognized compensation costs related to Restricted Stock Awards (RSAs) and Restricted Stock Units (RSUs), respectively. These costs are expected to be recognized over a weighted average period of 3.04 years for the RSAs and 2.49 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 March 31, 2018 2017 Cost of revenue $ 410 $ 335 Research and development (337 ) (162 ) Selling, general and administrative 1,188 549 Stock-based compensation costs reflected in net income $ 1,261 $ 722 |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | NOTE 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, 2018 was 14.8%, including amounts recorded for discrete events. This differs from the statutory rate of 21% primarily as a result of the worldwide mix of consolidated earnings and losses before taxes and changes to provisional amounts recorded for certain aspects of the Tax Cuts and Jobs Act (the Tax Act). The Company currently expects a 2018 full year effective tax rate of 25% to 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 will be subject to the Tax Act provisions regarding U.S. federal taxation of foreign intangible income and has included in its estimate of income tax the effects of this tax. The effect of this estimate is still under evaluation as the Company gains a more thorough understanding of these provisions and changes may materially impact income tax expenses. The Company is utilizing its net operating losses (NOLs) and tax credits in the U.S., Canada and the Netherlands and, therefore, cash taxes to be paid are expected to be less than 10% of book tax expense. The Tax Act was enacted on December 22, 2017. The Tax Act includes, among other things, a U.S. federal corporate income tax rate decrease from 35% to 21%, requires companies to pay a one-time transition tax on earnings of certain foreign subsidiaries that were previously tax deferred, and creates new taxes on certain foreign sourced earnings. On December 22, 2017, Staff Accounting Bulletin No. 118 (SAB 118) was issued to address the application of U.S. GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Tax Act. The Company is applying the guidance in SAB 118 when accounting for the enactment-date effect of the Tax Act. As of March 31, 2018, the Company has not completed its accounting for all of the tax effects of the Tax Act; however, the Company has made a reasonable estimate of the effects. During the three month period ended March 31, 2018, the Company recognized adjustments totaling $2.2 million to the provisional amounts recorded at December 31, 2017 and included these adjustments as a component of income tax expense from continuing operations. The Company will continue to make and refine its calculations as additional analysis is completed. These changes could be material to income tax expense. Deferred tax assets and liabilities. The Company remeasured certain deferred tax assets and liabilities based on the tax rates at which they are expected to reverse in the future, which is generally 21%. The Company recorded a provisional amount of $2.7 million at December 31, 2017 related to the remeasurement of certain deferred tax balances. Upon further analyses of certain aspects of the Tax Act and refinement of its calculations during the three months ended March 31, 2018, the Company increased its provisional amount by $164,000, which is included as a component of income tax expense from continuing operations. Due to the continued refinement of its calculations for the transition tax, certain aspects of deferred compensation, and the effect these calculations may have on the measurement of NOLs and other carryforwards, the Company will continue to analyze and refine its calculations related to the measurement of these balances. As of March 31, 2018, the Company's deferred tax assets and liabilities continue to have provisional amounts recorded for remeasurement. Foreign tax effects One-time transition tax. The one-time transition tax is based on the Company's total post-1986 earnings and profits (E&P), which the Company had deferred from U.S. income taxes under previous U.S. law. The Company originally recorded a provisional amount for its one-time transition tax liability of $6.7 million at December 31, 2017. Upon further analysis of certain aspects of the E&P of its Canadian subsidiary and refinement of its calculations for its foreign subsidiaries during the three months ended March 31, 2018, the Company decreased this provisional amount by $1.3 million, which is included as a component of income tax expense from continuing operations. As of March 31, 2018, the Company continues to have provisional amounts recorded for the one-time tax liability. As the Company continues to refine its E&P analysis, the Company will refine its calculations of the one-time transitions tax, which could affect the measurement of this liability. Deferred tax liabilities for withholding tax. The excess of financial reporting basis over tax basis of the Company’s foreign subsidiaries is considered permanently reinvested with the exception of certain earnings of the Canadian subsidiary. The Company originally recorded a provisional amount of deferred tax liability for withholding and state income taxes associated with the ultimate repatriation from Canada to the U.S. of these certain earnings of $3.2 million at December 31, 2017. Upon further analysis of its calculations of the Canadian withholding tax during the three months ended March 31, 2018, the Company decreased its provisional amount by $2.5 million, which is included as a component of income tax expense from continuing operations. The deferred tax liabilities for withholding tax are still provisional as of March 31, 2018 as the Company’s permanent reinvestment assertions for foreign earnings associated with certain aspects of the Tax Act are not yet finalized. 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 U.S. 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 three months ended March 31, 2018, unrecognized tax benefits related to the U.S. transition tax on earnings of certain foreign subsidiaries and deferred tax liabilities for withholding tax of $1.3 million and $140,000, respectively, were recorded. The Company does not expect any material changes to the unrecognized tax benefit liability within the next 12 months. The Company recognizes interest and penalties related to uncertain tax positions in the provision for income taxes. |
CONTINGENCIES
CONTINGENCIES | 3 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | 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 PRONOUNCMENTS
RECENT ACCOUNTING PRONOUNCMENTS (Notes) | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | NOTE 13 — RECENT ACCOUNTING PRONOUNCEMENTS Recently adopted accounting guidance In May 2014, the FASB issued the Standard 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. The Company adopted the Standard effective January 1, 2018, using the modified retrospective approach. Under this method, the Company recorded a cumulative adjustment increasing retained earnings of $10.6 million before related tax impacts or $8.1 million net of related tax impacts. See Note 10, “Revenue Recognition” for additional discussion related to the Company’s adoption of the Standard. Under the Standard, estimated royalty revenue will be recorded each quarter on an accrual basis to more closely coincide with the timing of the end user sale by the strategic partner; with reconciliation made upon submission of the royalty report by the partner indicating actual royalties owed in the following quarter. In addition, the Company began recording the portion of reagent rental revenue associated with the recovery of the cost of providing the system and other hardware in reagent rental agreements as system revenue rather than assay revenue effective January 1, 2018. This change will not have any impact on top line revenue and the Company does not anticipate any material effects to its revenue categorization. In January 2016, the FASB issued guidance that amends various aspects of the recognition, measurement, presentation, and disclosure for financial instruments. This guidance was effective for annual reporting periods, and interim periods within those years beginning after December 15, 2017. The Company adopted this standard during the quarter ended March 31, 2018. The adoption of this new standard resulted in a change to the Company’s accounting policy; however, adoption did not have a material impact on its consolidated financial position or results of operations. 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. The Company adopted this standard during the quarter ended March 31, 2018, and its adoption did not 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 new standard became effective for the Company on January 1, 2018. The Company has adopted this new standard using the modified retrospective method, through a cumulative-effect adjustment based on currently enacted tax rates directly to retained earnings as of the beginning of that date. The adoption of this new standard resulted in a change to the Company's accounting policy; however, adoption did not have a material impact on the Company’s consolidated financial position or results of operations. On January 10, 2018, the FASB issued guidance on the accounting for tax on the global intangible low-taxed income (GILTI) provisions of the Tax Act. The GILTI provisions impose a tax on foreign income in excess of a deemed return on tangible assets of foreign corporations. Effective January 1, 2018, the Company recognizes the tax on GILTI as a period expense in the period the tax is incurred. Under this policy, the Company has not provided deferred taxes related to temporary differences that upon their reversal will affect the amount of income subject to GILTI in the period. Recent accounting guidance not yet adopted In January 2018, the FASB issued guidance related to reporting comprehensive income, which gives entities the option to reclassify to retained earnings the tax effects resulting from the Tax Act related to items in Additional Other Comprehensive Income (AOCI) that the FASB refers to as having been “stranded” in AOCI. The guidance is effective for annual and interim periods beginning after December 15, 2018, and is applicable to the Company in fiscal year 2019, however, early adoption is permitted. The guidance, when adopted, will require new disclosures regarding the Company's accounting policy for releasing the tax effects in AOCI and permit the Company the option to reclassify to retained earnings the tax effects resulting from the Tax Act that are stranded in AOCI. The Company is currently evaluating how to apply the new guidance. The Company does not anticipate that this guidance will have a material impact on its consolidated financial statements. In January 2017, the FASB issued guidance on intangibles, including goodwill, which simplifies 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 year 2020, however, 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 year 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 continues to evaluate the impact of the adoption of this requirement on its consolidated financial statements, but has completed an inventory of the Company's leases, and 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. |
STOCKHOLDERS' EQUITY DIVIDENDS
STOCKHOLDERS' EQUITY DIVIDENDS (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
Dividends Declared [Table Text Block] | On January 24, 2018 , the Board of Directors declared a cash dividend on the Company’s common stock of $0.06 per share. The dividend declared was payable to stockholders of record as of March 23, 2018 and was paid on April 13, 2018 . |
STOCKHOLDERS' EQUITY STOCK (Pol
STOCKHOLDERS' EQUITY STOCK (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
Share-based Compensation, Stock Options, Activity [Table Text Block] | The Company’s stock option activity for the three months ended March 31, 2018 was as follows: Stock Options (shares in thousands) Shares Weighted Average Exercise Price Outstanding as of December 31, 2017 3,086 $ 18.10 Granted 752 21.98 Exercised (40 ) 17.36 Cancelled or expired (370 ) 18.50 Outstanding as of March 31, 2018 3,428 $ 18.96 The Company had $15.8 million of total unrecognized compensation costs related to stock options as of March 31, 2018 . These costs are expected to be recognized over a weighted average period of 2.88 years . |
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity [Table Text Block] | The Company’s restricted share activity for the three months ended March 31, 2018 was as follows: Restricted Stock Awards (shares in thousands) Shares Weighted Average Grant Price Non-vested as of December 31, 2017 715 $ 18.46 Granted 367 21.97 Vested (271 ) 18.35 Cancelled or expired (24 ) 19.00 Non-vested as of March 31, 2018 787 $ 20.12 Restricted Stock Units (in thousands) Shares Non-vested as of December 31, 2017 423 Granted 55 Vested (46 ) Cancelled or expired — Non-vested as of March 31, 2018 432 As of March 31, 2018 , there were $17.0 million and $2.8 million of total unrecognized compensation costs related to Restricted Stock Awards (RSAs) and Restricted Stock Units (RSUs), respectively. These costs are expected to be recognized over a weighted average period of 3.04 years for the RSAs and 2.49 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. |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | 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, 2018 2017 Cost of revenue $ 410 $ 335 Research and development (337 ) (162 ) Selling, general and administrative 1,188 549 Stock-based compensation costs reflected in net income $ 1,261 $ 722 |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Cash and Cash Equivalents [Abstract] | |
Marketable Securities, Policy [Policy Text Block] | 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, 2018 and December 31, 2017 , 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, 2018 , the Company had no short or long term investments |
Schedule of Available-for-sale Securities Reconciliation [Table Text Block] | Available-for-sale securities consisted of the following as of March 31, 2018 (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 [Table Text Block] | There were no proceeds from the sales of available-for-sale securities during the three months ended March 31, 2018 . 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, 2018 and December 31, 2017 had been in a loss position for less than 12 months. There were no available-for-sale debt securities as of March 31, 2018 and December 31, 2017 . |
INVESTMENTS AND OTHER ASSETS OT
INVESTMENTS AND OTHER ASSETS OTHER ASSETS (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Other Assets [Abstract] | |
Investments and Other Noncurrent Assets [Text Block] | During each of the years ended December 31, 2017 and December 31, 2016, 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 year ended December 31, 2017, the Company also entered into a $1.4 million promissory note with this same private company. The promissory note is payable at the annual interest rate of 1.95% with a maturity date of 5 years from the date of issuance. As of March 31, 2018 , the notes receivable balance was $1.9 million , up $0.5 million from December 31, 2017 . 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. These investments do not have readily determinable fair values. Therefore, the Company has elected the measurement alternative for these minority interests and the investments are recorded at cost, less any impairment, including changes resulting from observable price changes. 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 less than the investment's carrying value, the Company will record an impairment charge in Other Income, net in the Consolidated Statements of Comprehensive Income. As of March 31, 2018 , the Company has not recorded any impairment charges related to the cost-method investments discussed above. 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 information on the fair value hierarchy and the three classification levels. To determine the fair value of these investments, the Company uses all available financial information related to the entities, including information based on recent or pending third-party equity investments in these entities. In certain instances, a cost-method investment's fair value is not estimated as there are no identified events or changes in the circumstances that may have a significant adverse effect on the fair value of the investments and to do so would be impractical. |
Schedule of Other Assets, Noncurrent [Table Text Block] | Other long-term assets consisted of the following (in thousands): March 31, 2018 December 31, 2017 Purchased technology rights (net of accumulated amortization of $7,140 and $7,012 as of March 31, 2018 and December 31, 2017, respectively) $ 7,022 $ 3,149 Cost-method investments 3,000 3,000 Notes receivable (1) 1,900 1,400 Other 966 1,050 $ 12,888 $ 8,599 (1) During the three months ended March 31, 2018 , the Company increased the promissory note with a private company, for which it owns an aggregate of $2.0 million minority interest, as discussed above. |
Estimated Future Amortization Expense Related to Intangible Assets | For the three months ending March 31, 2018 and year ended December 31, 2017 , the Company recognized amortization expense related to the amortization of purchased technology rights of approximately $127,000 and $559,000 , respectively. Future amortization expense is estimated to be $367,000 in the three remaining quarters of 2018 , $488,000 in 2019 , $382,000 in 2020 , $355,000 in 2021 , $349,000 in 2022 , $341,000 in 2023 and $2,382,000 thereafter. The estimated aggregate amortization expense for the next five fiscal years and thereafter is as follows (in thousands): 2018 (nine months) $ 6,499 2019 8,666 2020 8,666 2021 8,307 2022 7,060 Thereafter 21,639 $ 60,837 IP R&D 12,982 $ 73,819 |
GOODWILL (Tables)
GOODWILL (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill Disclosure [Text Block] | 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. There were no changes in the carrying amount of the Company’s goodwill during the three months ended March 31, 2018 and twelve months ended December 31, 2017 as follows (in thousands): March 31, 2018 December 31, 2017 Balance at beginning of year $ 85,481 $ 85,481 Balance at end of period $ 85,481 $ 85,481 |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets Disclosure [Text Block] | 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 2017 Balance as of December 31, 2016 $ 81,385 $ 19,097 $ 5,664 $ 12,982 $ 119,128 Balance as of December 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 (6,277 ) (1,999 ) (580 ) — (8,856 ) Accumulated amortization balance as of December 31, 2017 (34,414 ) (7,037 ) (1,692 ) — (43,143 ) Net balance as of December 31, 2017 $ 46,971 $ 12,060 $ 3,972 $ 12,982 $ 75,985 Weighted average life (in years) 11 10 10 2018 Balance as of December 31, 2017 $ 81,385 $ 19,097 $ 5,664 $ 12,982 $ 119,128 Balance as of March 31, 2018 81,385 19,097 5,664 12,982 119,128 Less: accumulated amortization: Accumulated amortization balance as of December 31, 2017 (34,414 ) (7,037 ) (1,692 ) — (43,143 ) Amortization expense (1,522 ) (499 ) (145 ) — (2,166 ) Accumulated amortization balance as of March 31, 2018 (35,936 ) (7,536 ) (1,837 ) — (45,309 ) Net balance as of March 31, 2018 $ 45,449 $ 11,561 $ 3,827 $ 12,982 $ 73,819 Weighted average life (in years) 11 10 10 |
Estimated Future Amortization Expense Related to Intangible Assets | For the three months ending March 31, 2018 and year ended December 31, 2017 , the Company recognized amortization expense related to the amortization of purchased technology rights of approximately $127,000 and $559,000 , respectively. Future amortization expense is estimated to be $367,000 in the three remaining quarters of 2018 , $488,000 in 2019 , $382,000 in 2020 , $355,000 in 2021 , $349,000 in 2022 , $341,000 in 2023 and $2,382,000 thereafter. The estimated aggregate amortization expense for the next five fiscal years and thereafter is as follows (in thousands): 2018 (nine months) $ 6,499 2019 8,666 2020 8,666 2021 8,307 2022 7,060 Thereafter 21,639 $ 60,837 IP R&D 12,982 $ 73,819 |
ACCUMULATED OTHER COMPREHENSI23
ACCUMULATED OTHER COMPREHENSIVE INCOME (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
Summary of Changes in Accumulated Other Comprehensive Income by Component | 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, 2017 $ (625 ) $ — $ (625 ) Other comprehensive income before reclassifications 392 — 392 Net current-period other comprehensive income 392 — 392 Balance as of March 31, 2018 $ (233 ) $ — $ (233 ) |
Comprehensive Income (Loss) Note [Text Block] | The following table presents the tax (expense) benefit allocated to each component of other comprehensive income (loss) (in thousands): Three Months Ended March 31, 2018 Before Tax Tax Benefit Net of Tax Foreign currency translation adjustments $ 392 $ — $ 392 Unrealized gains on available-for-sale investments — — — Other comprehensive income (loss) $ 392 $ — $ 392 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Earnings Per Share | A reconciliation of the denominators used in computing per share net income (EPS) is as follows (in thousands, except per share amounts): Three Months Ended March 31, 2018 2017 Basic: Net income $ 13,397 $ 9,231 Less: allocation to participating securities (205 ) (173 ) Net income attributable to common stockholders $ 13,192 $ 9,058 Weighted average common stock outstanding 43,462 42,898 Net income per share attributable to common stockholders $ 0.30 $ 0.21 Diluted: Net income $ 13,397 $ 9,231 Less: allocation to participating securities (205 ) (173 ) Net income attributable to common stockholders $ 13,192 $ 9,058 Weighted average common stock outstanding 43,462 42,898 Effect of dilutive securities: stock options and awards 171 91 Weighted-average shares used in computing net income per share 43,633 42,989 Net income per share attributable to common stockholders $ 0.30 $ 0.21 |
ACCRUED LIABILITIES (Tables)
ACCRUED LIABILITIES (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Accrued Liabilities [Abstract] | |
Schedule of Accrued Liabilities [Table Text Block] | Accrued liabilities consisted of the following (in thousands): March 31, 2018 December 31, 2017 Compensation and employee benefits $ 8,093 $ 18,218 Dividends payable 2,666 2,671 Income and other taxes 271 1,070 Warranty costs 1,284 1,308 Other 2,874 2,723 $ 15,188 $ 25,990 |
Schedule of Product Warranty Liability [Table Text Block] | The following table summarizes the changes in the warranty accrual (in thousands): Accrued warranty costs as of December 31, 2017 $ 1,308 Warranty adjustments/settlements (376 ) Accrual for warranty costs 352 Accrued warranty costs as of March 31, 2018 $ 1,284 |
Investment Components
Investment Components - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Money Market Funds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities and Held-to-maturity Securities | $ 701 | $ 701 |
Available-for-sale Securities, Amortized Cost Basis | 701 | 701 |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 0 | 0 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 0 | 0 |
Total Non-Current Available-for-Sale Securities [Domain] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities and Held-to-maturity Securities | 0 | 0 |
Available-for-sale Securities, Amortized Cost Basis | 0 | 0 |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 0 | 0 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 0 | 0 |
Total Current Available-for-Sale Securities [Domain] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities and Held-to-maturity Securities | 701 | 701 |
Available-for-sale Securities, Amortized Cost Basis | 701 | 701 |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 0 | 0 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 0 | 0 |
Marketable Securities and Investments Held at Cost [Domain] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities and Held-to-maturity Securities | 701 | 701 |
Available-for-sale Securities, Amortized Cost Basis | 701 | 701 |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 0 | 0 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | $ 0 | $ 0 |
Investments - Cost Method - Add
Investments - Cost Method - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | 24 Months Ended |
Dec. 31, 2017 | Dec. 31, 2017 | |
Chandlertech [Member] | ||
Schedule of Cost-method Investments [Line Items] | ||
Payments to Noncontrolling Interests | $ 1 | $ 2 |
Genometry [Member] | ||
Schedule of Cost-method Investments [Line Items] | ||
Payments to Noncontrolling Interests | $ 1 |
INVESTMENTS AND OTHER ASSETS 28
INVESTMENTS AND OTHER ASSETS Other Assets (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Purchased Technology Rights | $ 7,022,000 | $ 3,149,000 |
Cost Method Investments, Original Cost | 3,000,000 | 3,000,000 |
Nontrade Receivables, Noncurrent | 1,900,000 | 1,400,000 |
Other Assets, Miscellaneous, Noncurrent | 966,000 | 1,050,000 |
Other Assets, Noncurrent | 12,888,000 | 8,599,000 |
Future Amortization Expense Acquired Technology Rights Rest of Year | 367,000 | |
Future Amortization Expense Acquired Technology Rights Year One | 488,000 | |
Future Amortization Expense Acquired Technology Rights Year Two | 382,000 | |
Future Amortization Expense Acquired Technology Rights Year Three | 355,000 | |
Future Amortization Expense Acquired Technology Rights Year Four | 349,000 | |
Future Amortization Expense Acquired Technology Rights Year Five | 341,000 | |
Future Amortization Expense Acquired Technology Rights After Year Five | 2,382,000 | |
Technology-Based Intangible Assets [Member] | ||
Amortization | $ 127,000 | $ 559,000 |
INVENTORIES INVENTORIES (Detail
INVENTORIES INVENTORIES (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Inventory Disclosure [Abstract] | ||
Inventory, Raw Materials, Net of Reserves | $ 30,917 | $ 29,266 |
Inventory, Work in Process, Net of Reserves | 10,438 | 8,712 |
Inventory, Finished Goods, Net of Reserves | 10,893 | 11,500 |
Inventory, Net | $ 52,248 | $ 49,478 |
FAIR VALUE MEASUREMENTS FAIR VA
FAIR VALUE MEASUREMENTS FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Cash and Cash Equivalents, Fair Value Disclosure | $ 701 | $ 701 |
Fair Value, Inputs, Level 1 [Member] | ||
Cash and Cash Equivalents, Fair Value Disclosure | 701 | 701 |
Fair Value, Inputs, Level 2 [Member] | ||
Cash and Cash Equivalents, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | ||
Cash and Cash Equivalents, Fair Value Disclosure | $ 0 | $ 0 |
GOODWILL GOODWILL (Details)
GOODWILL GOODWILL (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Goodwill | $ 85,481 | $ 85,481 | $ 85,481 |
Intangible Assets - Additional
Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Intangible Assets, Gross (Excluding Goodwill) | $ 119,128 | $ 119,128 | $ 119,128 | |
Finite-Lived Intangible Assets, Accumulated Amortization | (45,309) | (43,143) | (34,287) | |
Intangible Assets, Net (Excluding Goodwill) | 73,819 | 75,985 | ||
Finite-Lived Intangible Assets, Amortization Expense, Remainder of Fiscal Year | 6,499 | |||
Amortization of Intangible Assets | (2,166) | $ (2,356) | (8,856) | |
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 8,666 | |||
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 8,666 | |||
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 8,307 | |||
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 7,060 | |||
Finite-Lived Intangible Assets, Amortization Expense, after Year Five | 21,639 | |||
Finite Lived Intangible Assets, Future Amortization Expense, Except In Process Research & Development | 60,837 | |||
Finite Lived Intangible Assets, Future Amortization Expense, In Process Research & Development | 12,982 | |||
Finite-Lived Intangible Assets, Net | 73,819 | 75,985 | ||
Technology-Based Intangible Assets [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Intangible Assets, Gross (Excluding Goodwill) | 81,385 | 81,385 | 81,385 | |
Finite-Lived Intangible Assets, Accumulated Amortization | (35,936) | (34,414) | (28,137) | |
Intangible Assets, Net (Excluding Goodwill) | $ 45,449 | $ 46,971 | ||
Finite-Lived Intangible Asset, Useful Life | 11 years | 11 years | ||
Amortization of Intangible Assets | $ (1,522) | $ (6,277) | ||
Customer-Related Intangible Assets [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Intangible Assets, Gross (Excluding Goodwill) | 19,097 | 19,097 | 19,097 | |
Finite-Lived Intangible Assets, Accumulated Amortization | (7,536) | (7,037) | (5,038) | |
Intangible Assets, Net (Excluding Goodwill) | $ 11,561 | $ 12,060 | ||
Finite-Lived Intangible Asset, Useful Life | 10 years | 10 years | ||
Amortization of Intangible Assets | $ (499) | $ (1,999) | ||
Other Intangible Assets [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Intangible Assets, Gross (Excluding Goodwill) | 5,664 | 5,664 | 5,664 | |
Finite-Lived Intangible Assets, Accumulated Amortization | (1,837) | (1,692) | (1,112) | |
Intangible Assets, Net (Excluding Goodwill) | $ 3,827 | $ 3,972 | ||
Finite-Lived Intangible Asset, Useful Life | 10 years | 10 years | ||
Amortization of Intangible Assets | $ (145) | $ (580) | ||
In Process Research and Development [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Intangible Assets, Gross (Excluding Goodwill) | 12,982 | 12,982 | $ 12,982 | |
Intangible Assets, Net (Excluding Goodwill) | $ 12,982 | $ 12,982 |
ACCUMULATED OTHER COMPREHENSI33
ACCUMULATED OTHER COMPREHENSIVE INCOME OTHER COMPREHENSIVE INCOME (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, before Tax, Portion Attributable to Noncontrolling Interest | $ 392 | ||
Other Comprehensive Income (Loss), Foreign Currency Translation Gain (Loss) Arising During Period, Tax | 0 | ||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax | 392 | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (233) | $ (625) | |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 392 | ||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 392 | $ 263 | |
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, before Tax | 0 | ||
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Tax | 0 | ||
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax | 0 | ||
Other Comprehensive Income (Loss), before Tax, Portion Attributable to Parent | 392 | ||
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent | 0 | ||
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (233) | (625) | |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 392 | ||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 392 | ||
Accumulated Net Investment Gain (Loss) Attributable to Parent [Member] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax | 0 | $ 0 | |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 0 | ||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | $ 0 |
EARNINGS PER SHARE EARNINGS PER
EARNINGS PER SHARE EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Earnings Per Share [Abstract] | ||
Net income | $ 13,397 | $ 9,231 |
Net Income (Loss) Attributable to Parent, Diluted | 9,231 | |
Participating Securities, Distributed and Undistributed Earnings (Loss), Basic | (205) | (173) |
Net Income (Loss) Available to Common Stockholders, Basic | $ 13,192 | $ 9,058 |
Weighted Average Number of Shares Outstanding, Basic | 43,462 | 42,898 |
Earnings Per Share, Basic | $ 0.30 | $ 0.21 |
Net Income (Loss) Available to Common Stockholders, Diluted | $ 13,192 | $ 9,058 |
Weighted Average Number Diluted Shares Outstanding Adjustment | 171 | 91 |
Participating Securities, Distributed and Undistributed Earnings (Loss), Diluted | $ (205) | $ (173) |
Weighted Average Number of Shares Outstanding, Diluted | 43,633 | 42,989 |
Earnings Per Share, Diluted | $ 0.30 | $ 0.21 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 15,800 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 3,428 | 3,086 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $ 18.96 | $ 18.10 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 752 | ||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 21.98 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | (40) | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period, Weighted Average Exercise Price | $ 0 | ||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price | $ 0 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period | (370) | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years 10 months 16 days | ||
Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 17,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 787 | 715 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 20.12 | $ 18.46 | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted | 367 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 21.97 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | (271) | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $ 18.35 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | (24) | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ 19 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 3 years 15 days | ||
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 2,800 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 432 | 423 | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted | 55 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | (46) | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | 0 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years 5 months 26 days | ||
Net [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated Share-based Compensation Expense | $ 1,261 | $ 722 | |
Research and Development Expense [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated Share-based Compensation Expense | (337) | (162) | |
Selling, General and Administrative Expenses [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated Share-based Compensation Expense | 1,188 | 549 | |
Cost of Sales [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated Share-based Compensation Expense | $ 410 | $ 335 |
ACCRUED LIABILITIES (Details)
ACCRUED LIABILITIES (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | |
Accrued Liabilities [Abstract] | ||
Standard Product Warranty Accrual | $ 1,284 | $ 1,308 |
Employee-related Liabilities, Current | 8,093 | 18,218 |
Dividends Payable, Current | 2,666 | 2,671 |
Taxes Payable, Current | 271 | 1,070 |
Product Warranty Accrual, Current | 1,284 | 1,308 |
Standard Product Warranty Accrual, Decrease for Payments | (376) | |
Standard Product Warranty Accrual, Increase for Warranties Issued | 352 | |
Other Accrued Liabilities, Current | 2,874 | 2,723 |
Accrued Liabilities, Current | $ 15,188 | $ 25,990 |
REVENUE RECOGNITION (Details)
REVENUE RECOGNITION (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Jan. 01, 2018 | |
Revenue Recognition [Abstract] | ||
Revenue Recognition Accounting Policy, Gross and Net Revenue Disclosure [Policy Text Block] | NOTE 10 — REVENUE RECOGNITION On January 1, 2018, the Company adopted a new standard on revenue recognition, Accounting Standards Codification 606 (the Standard), using the modified retrospective transition method consistent with the guidance issued by the FASB in May 2014. Under this method, the Company applied the guidance retrospectively, only to those contracts which were not completed as of the date of initial application, and recognized the cumulative effect of initially applying the Standard as an adjustment to the opening balance of retained earnings as of January 1, 2018. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. The Company does not expect the impact of the adoption of the Standard to be material to its net income on an ongoing basis. The Standard applies to all contracts with customers, except for contracts that are within the scope of other standards, such as leases, insurance, collaboration arrangements and financial instruments. Under the Standard, the Company recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration which the Company expects to receive in exchange for those goods or services. To determine revenue recognition for arrangements that the Company determines are within the scope of the Standard, the Company performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when the Company satisfies a performance obligation. The Company only applies the five-step model to contracts when it is probable that the Company will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. At contract inception, once the contract is determined to be within the scope of the Standard, the Company assesses the goods or services promised within each contract, identifies the performance obligations and assesses whether each promised good or service is distinct. The Company allocates the total transaction price to each performance obligation in an amount based on the estimated relative standalone selling prices of the promised goods or service underlying each performance obligation and recognizes as revenue when such performance obligation is satisfied. Revenue is generated primarily from the sale of the Company’s products and related services, which are primarily support and maintenance services on the Company's systems. The Company recognizes product revenue when the Customer obtains control of the Company’s product, which typically occurs upon shipment or delivery to the Customer depending upon the shipping terms. We treat shipping and handling costs performed after a customer obtains control of the good as a fulfillment cost. Our customers do not typically have any contractual rights of return outside of our warranty provisions. The Company has allowed few returns to date and believes that returns of its products will be minimal. Royalties: For arrangements that include sales-based royalties, including minimum payments, the Company recognizes revenue at the later of (i) when the related sales occur, or (ii) when the performance obligation, to which some or all of the royalty has been allocated has been satisfied. This is a change from how the Company has historically treated royalty payments, by recognizing royalty revenue when our strategic partners reported the end-user sales to the Company, and is primarily the basis for our cumulative adjustment to retained earnings of $10.6 million before related tax impacts or $8.1 million net of related tax impacts. Royalty payments are typically received when our strategic partners report the end-user sales to the Company. Reagent Rentals: The Company provides systems and certain other hardware to customers through reagent rental agreements under which the customers commit to purchasing minimum quantities of disposable products at a stated price over a defined contract term, which is normally two to three years. Instead of rental payments, the Company recovers the cost of providing the system and other hardware in the amount charged for assays. Revenue is recognized over the defined contract term as assays are shipped. The depreciation costs associated with the system and other hardware are charged to cost of sales on a straight-line basis over the estimated life of the system. The costs to maintain these instruments in the field are charged to cost of sales as incurred. Under the Standard, the Company has reclassified the portion of reagent rental revenue associated with the recovery of the cost of providing the system and other hardware in reagent rental agreements from assay revenue to system revenue effective January 1, 2018. This change will not have any impact on top line revenue and the Company does not anticipate any material effects to its revenue categorization. Warranties: The Company provides a limited, assurance-type warranty, typically for twelve months from installation for the systems sold to end customers and fifteen months for the systems sold to partners. The Company accrues for the estimated cost of initial product warranties at the time revenue is recognized. The actual warranty expense could differ from the estimates made by the Company based on product performance. Warranty expenses are evaluated and adjusted periodically. License Revenues: The Company enters into out-licensing agreements which are within the scope of the Standard, under which it licenses certain rights to its technology to third parties. These licenses are typically not distinct, as the customer cannot benefit from the license on its own, and do not have significant standalone functionality, but represent single performance obligations together with the sales of our consumables, systems and assays. The terms of these arrangements typically include payment to the Company of non-refundable, up-front license fees and can extend up to twenty years, although our current agreements extend through 2027. Each of these payments results in license revenues which are recognized ratably over time and are included in other revenues, except for revenues from royalties on net sales of licensed products, which are classified as royalty revenues. Deferred revenues related to these out-licensing agreements are shown in contract liabilities in the table below. Performance Obligations: Revenue from extended service agreements is deferred when payment is received in advance of the performance obligation being satisfied or completed. Luminex provides an integrated service of maintenance and related activities for equipment sold to customers, where the nature of the overall promise is to provide a stand ready service. As such, the performance obligation is recognized as a series of distinct service periods and the service revenue is recognized ratably over the term of the agreement. The extended service agreements typically range from one to four years and payment is typically received up-front. Reserves for Variable Consideration : Revenues from product sales are recorded at the net sales price (transaction price), which includes estimates of variable consideration for which reserves are established and which result from discounts and any other allowances that are offered within contracts between the Company and its customers relating to the Company’s sales of its products. These reserves are based on the amounts earned or to be claimed on the related sales and are classified as reductions of accounts receivable. Where appropriate, these estimates take into consideration a range of possible outcomes which are probability-weighted for relevant factors such as the Company’s historical experience, current contractual requirements, industry data and forecasted customer buying and payment patterns. Overall, these reserves reflect the Company’s best estimates of the amount of consideration to which it is entitled based on the terms of the contract. The amount of variable consideration which is included in the transaction price may be constrained, and is included in the net sales price only to the extent that it is probable that a significant reversal in the amount of the cumulative revenue recognized will not occur in a future period. Actual amounts of consideration ultimately received may differ from the Company’s estimates. If actual results in the future vary from the Company’s estimates, the Company adjusts these estimates, which would affect net product revenue and earnings in the period when such variances become known. Contract assets are included within Accounts receivables, net and contract liabilities are included in Deferred revenue on the Company's Balance Sheet. The following table presents the opening and closing balances of the Company’s contract assets and liabilities for the three months ended March 31 , 2018 (in thousands): Balance at Beginning of Period Balance at End of Period Contract assets: Unbilled receivables - Royalties $ 10,643 $ 11,183 Contract liabilities - short-term: Deferred revenue - Service $ 4,438 $ 4,807 Deferred revenue - Licenses 246 246 Deferred revenue - Other 37 184 Total Contract liabilities - short-term $ 4,721 $ 5,237 Contract liabilities - long-term: Deferred revenue - Service $ 315 $ 289 Deferred revenue - Licenses 1,099 1,038 Deferred revenue - Other 83 83 Total Contract liabilities - long-term $ 1,497 $ 1,410 During the three months ended March 31 , 2018 , the Company recognized the following revenues as a result of changes in the contract asset and contract liability balances in the period (in thousands): Three Months Ended March 31, Revenue recognized in the period from: 2018 Amounts included as contract liabilities at the beginning of the period $ 2,955 Performance obligations satisfied in previous periods - In accordance with the Standard, the disclosure of the impact of adoption on our consolidated income statement and balance sheet was as follows (in thousands): Three Months Ended March 31, 2018 Income Statement As Reported in this Quarterly Report Amounts Before Adoption of the Standard Net Effect of Adoption of the Standard System sales $ 7,931 $ 7,508 $ 423 Consumable sales 11,872 11,872 — Royalty revenue 12,239 11,713 526 Assay revenue 45,841 46,249 (408 ) Other revenue 4,779 4,779 — Revenue 82,662 82,121 541 Gross profit 53,588 53,047 541 Income from operations 15,266 14,725 541 Income tax benefit (expense) (2,318 ) (2,188 ) (130 ) Net Income 13,397 12,986 411 As of March 31, 2018 Balance Sheet As Reported in this Quarterly Report Balances Before Adoption of ASC 606 Effect of Adoption of the Standard ASSETS Accounts receivable, net 46,283 35,099 11,184 Deferred income taxes 34,858 37,542 (2,684 ) LIABILITIES AND STOCKHOLDERS' EQUITY Retained earnings 106,385 97,885 8,500 | |
Revenue Recognition Unbilled Receivables | $ 11,183 | $ 10,643 |
Revenue Recognition Short-Term Deferred Revenue | 5,237 | 4,721 |
Revenue Recognition Long-Term Deferred Revenue | 1,410 | 1,497 |
Nonsoftware Service, Support and Maintenance Arrangement [Member] | ||
Revenue Recognition Short-Term Deferred Revenue | 4,807 | 4,438 |
Revenue Recognition Long-Term Deferred Revenue | 289 | 315 |
Royalty Arrangement [Member] | ||
Revenue Recognition Short-Term Deferred Revenue | 184 | 37 |
Revenue Recognition Long-Term Deferred Revenue | 83 | 83 |
Nonsoftware License Arrangement [Member] | ||
Revenue Recognition Short-Term Deferred Revenue | 246 | 246 |
Revenue Recognition Long-Term Deferred Revenue | $ 1,038 | $ 1,099 |