Luminex (LMNX) 10-Q 7 Aug 18 2018 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2018	Aug. 06, 2018
Document and Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2018
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q2
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		44,608,397

BALANCE SHEETS

BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents	$ 138,996	$ 127,112
Accounts receivable, net of allowance for doubtful accounts of $285 and $345	46,778	40,648
Inventory, Net	52,085	49,478
Other	7,984	7,403
Total current assets	245,843	224,641
Property and equipment, net of accumulated depreciation of $25,523 and $24,179	59,642	58,258
Finite-Lived Intangible Assets, Net	71,653	75,985
Deferred Income Tax Assets, Net	32,538	37,552
Goodwill	85,481	85,481
Other Assets, Noncurrent	15,071	8,599
Total assets	510,228	490,516
Current liabilities:
Accounts payable	12,599	14,537
Accrued Liabilities, Current	18,236	25,990
Short-term unearned revenue	5,546	4,721
Total current liabilities	36,381	45,248
Long-term unearned revenue	1,326	1,498
Other long-term liabilities	6,992	5,863
Total liabilities	44,699	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	357,076	350,834
Accumulated Other Comprehensive Income (Loss), Net of Tax	(944)	(625)
Retained earnings	109,353	87,655
Total stockholders' equity	465,529	437,907
Total liabilities and stockholders' equity	$ 510,228	$ 490,516

BALANCE SHEETS (Parenthetical)

BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 30, 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		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Revenue
Total revenue	$ 79,578	$ 76,457	$ 162,240	$ 154,236
Cost of revenue
Total cost of revenue	30,272	26,396	59,346	51,389
Gross margin	49,306	50,061	102,894	102,847
Research and development	11,672	12,260	21,998	24,680
Selling, General and Administrative Expense	27,610	28,153	53,440	52,150
Amortization of Intangible Assets	2,166	2,166	4,332	4,523
Operating Expenses	41,448	42,579	79,770	81,353
Operating income	7,858	7,482	23,124	21,494
Other income, net	8	1	457	(5)
Income before income taxes	7,866	7,483	23,581	21,489
Provision for income taxes	(2,197)	(1,939)	(4,515)	(6,714)
Net income	5,669	5,544	19,066	14,775
Net Income (Loss) Available to Common Stockholders, Basic	5,571	5,441	18,741	14,499
Net Income (Loss) Available to Common Stockholders, Diluted	$ 5,571	$ 5,441	$ 18,742	$ 14,499
Earnings per share:
Earnings Per Share, Basic	$ 0.13	$ 0.13	$ 0.43	$ 0.34
Earnings Per Share, Diluted	$ 0.13	$ 0.13	$ 0.43	$ 0.34
Weighted average shares outstanding:
Weighted Average Number of Shares Outstanding, Basic	43,734	43,160	43,599	43,030
Weighted Average Number of Shares Outstanding, Diluted	44,246	43,259	43,871	43,128
Cash dividends declared per common share	$ 0.06	$ 0.06	$ 0.12	$ 0.12
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax	$ (711)	$ 339	$ (319)	$ 602
Other comprehensive income (loss)	(711)	339	(319)	602
Comprehensive income	$ 4,958	$ 5,883	$ 18,747	$ 15,377

CASH FLOWS STATEMENTS

CASH FLOWS STATEMENTS - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Operations
Net income	$ 5,669	$ 5,544	$ 19,066	$ 14,775
Net Income (Loss) Attributable to Parent, Diluted				14,775
Adjustments to reconcile net income to net cash from operations:
Gain (Loss) on Disposition of Assets	111		111
Depreciation, amortization, and other	6,130	5,651	12,023	11,270
Stock-based compensation expense	3,547	4,026	4,808	4,748
Deferred income taxes	2,308	4,332	3,761	7,267
Other Noncash Income (Expense)	(1,158)	478	(1,127)	922
Changes in operating assets and liabilities:
Accounts receivable	(503)	3,911	5,053	(758)
Inventories	133	(3,417)	(2,602)	(6,304)
Other current assets	(353)	(1,892)	(556)	(1,197)
Accounts payable	(1,981)	1,337	(1,661)	(2,369)
Other current liabilities	3,366	2,661	(8,073)	(7,411)
Unearned revenue	231	(547)	653	(350)
Net cash from operations	17,500	22,084	31,456	20,593
Financing
Common stock issued	2,290	1,495	3,416	2,229
Payments Related to Tax Withholding for Share-based Compensation	(13)	(40)	(2,016)	(2,096)
Common stock cash dividends paid	(2,678)	(2,636)	(5,302)	(2,636)
Net cash from (used in) financing	(401)	(1,181)	(3,902)	(2,503)
Investing
Additions to property and equipment	(4,968)	(2,970)	(9,036)	(6,403)
Increase (Decrease) in Notes Receivables	(500)	0	(1,000)	0
Purchases of investments	(1,782)	(500)	(1,782)	(1,000)
Payments to Acquire Intangible Assets	0	0	(4,000)	0
Net cash used in investing	(7,250)	(3,470)	(15,818)	(7,403)
Effect of foreign exchange rates on cash and cash equivalents	492	(194)	148	(434)
Net change in cash and cash equivalents	10,341	17,239	11,884	10,253
Cash and cash equivalents, beginning of period	128,655	86,466	127,112	93,452
Cash and cash equivalents, end of period	$ 138,996	$ 103,705	$ 138,996	$ 103,705

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		40,142
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
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
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period	143,000
Balance, beginning of period at Dec. 31, 2017	$ 437,907	43	350,834	(625)	87,655
Net income	19,066
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax	(319)
Other comprehensive income (loss)	(319)
Balance, end of period at Jun. 30, 2018	465,529	$ 44	357,076	(944)	109,353
Common Stock, Shares, Outstanding		43,667,169
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period		102,976
Stock Issued During Period, Value, Stock Options Exercised	1,874	$ 0	1,874	0	0
Stock Issued During Period, Shares, Restructed Stock Award, Net of Forfeitures		12,670
Stock Issued During Period, Value, Restricted Stock Award, Gross	(13)	$ 0	(13)	0	0
Balance, beginning of period at Mar. 31, 2018	457,006	44	350,810	(233)	106,385
Net income	5,669	0	0	0	5,669
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax	(711)	0	0	(711)	0
Other comprehensive income (loss)	(711)
Common stock cash dividends	(2,713)	0	(12)	0	(2,701)
Stockholders' Equity, Other	0				0
Stock-based compensation expense	3,563	0	3,563	0	0
Balance, end of period at Jun. 30, 2018	465,529	$ 44	357,076	(944)	109,353
Stock Issued During Period, Shares, Employee Stock Purchase Plans		47,300
Stock Issued During Period, Value, Employee Stock Purchase Plan	$ 854	$ 0	$ 854	$ 0	$ 0
Common Stock, Shares, Outstanding	42,708,733	43,830,115

ACCOUNTING POLICIES

ACCOUNTING POLICIES	6 Months Ended
	Jun. 30, 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 and six months ended June 30, 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	6 Months Ended
	Jun. 30, 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): June 30, 2018 December 31, 2017 Parts and supplies $ 31,458 $ 29,266 Work-in-progress 9,895 8,712 Finished goods 10,732 11,500 $ 52,085 $ 49,478

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	6 Months Ended
	Jun. 30, 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 six -month period ended June 30, 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 June 30, 2018 and December 31, 2017 . Fair Value Measurements as of June 30, 2018 Using Level 1 Level 2 Level 3 Total Assets: Money Market funds $ 702 $ — $ — $ 702 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	6 Months Ended
	Jun. 30, 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, on which we began clinical trials in May 2018. We believe the VERIGENE II will launch commercially in 2019. The estimated cost to complete this project is less than $1.0 million.

ACCUMULATED OTHER COMPREHENSIVE

ACCUMULATED OTHER COMPREHENSIVE INCOME	6 Months Ended
	Jun. 30, 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 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 (319 ) — (319 ) Net current-period other comprehensive loss (319 ) — (319 ) Balance as of June 30, 2018 $ (944 ) $ — $ (944 ) The following table presents the tax expense allocated to each component of other comprehensive income (loss) (in thousands): Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 Before Tax Tax Benefit Net of Tax Before Tax Tax Benefit Net of Tax Foreign currency translation adjustments $ (711 ) $ — $ (711 ) $ (319 ) $ — $ (319 ) Unrealized gains on available-for-sale investments — — — — — — Other comprehensive loss $ (711 ) $ — $ (711 ) $ (319 ) $ — $ (319 )

EARNINGS PER SHARE

EARNINGS PER SHARE	6 Months Ended
	Jun. 30, 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 June 30, Six Months Ended June 30, 2018 2017 2018 2017 Basic: Net income $ 5,669 $ 5,544 $ 19,066 $ 14,775 Less: allocation to participating securities (98 ) (103 ) (325 ) (276 ) Net income attributable to common stockholders $ 5,571 $ 5,441 $ 18,741 $ 14,499 Weighted average common stock outstanding 43,734 43,160 43,599 43,030 Net income per share attributable to common stockholders $ 0.13 $ 0.13 $ 0.43 $ 0.34 Diluted: Net income $ 5,669 $ 5,544 $ 19,066 $ 14,775 Less: allocation to participating securities (98 ) (103 ) (324 ) (276 ) Net income attributable to common stockholders $ 5,571 $ 5,441 $ 18,742 $ 14,499 Weighted average common stock outstanding 43,734 43,160 43,599 43,030 Effect of dilutive securities: stock options and awards 512 99 272 98 Weighted-average shares used in computing net income per share 44,246 43,259 43,871 43,128 Net income per share attributable to common stockholders $ 0.13 $ 0.13 $ 0.43 $ 0.34 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 0.8 million and 2.5 million shares for the three months ended June 30, 2018 and 2017 , and 0.6 million and 2.0 million shares for the six months ended June 30, 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	6 Months Ended
	Jun. 30, 2018
Equity [Abstract]
Shareholders' Equity and Share-based Payments [Text Block]	Dividends On May 18, 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 June 22, 2018 and was paid on July 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 six months ended June 30, 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 761 22.06 Exercised (143 ) 17.96 Cancelled or expired (372 ) 18.48 Outstanding as of June 30, 2018 3,332 $ 19.01 The Company had $14.1 million of total unrecognized compensation costs related to stock options as of June 30, 2018 . These costs are expected to be recognized over a weighted average period of 2.64 years . The Company’s restricted share activity for the six months ended June 30, 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 383 22.14 Vested (284 ) 18.47 Cancelled or expired (39 ) 19.25 Non-vested as of June 30, 2018 775 $ 20.24 Restricted Stock Units (in thousands) Shares Non-vested as of December 31, 2017 423 Granted 92 Vested (49 ) Cancelled or expired (3 ) Non-vested as of June 30, 2018 463 As of June 30, 2018 , there were $15.6 million and $3.2 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 2.82 years for the RSAs and 2.40 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 June 30, Six Months Ended June 30, 2018 2017 2018 2017 Cost of revenue $ 406 $ 402 $ 816 $ 737 Research and development 537 759 200 597 Selling, general and administrative 2,604 2,865 3,792 3,414 Stock-based compensation costs reflected in net income $ 3,547 $ 4,026 $ 4,808 $ 4,748

INCOME TAXES

INCOME TAXES	6 Months Ended
	Jun. 30, 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 six months ended June 30, 2018 was 19.2% , 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 30%, 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 June 30, 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 and for the six month period ended June 30, 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 to 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 month period ended March 31, 2018 and included in the six months ended June 30, 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 June 30, 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 six months ended June 30, 2018, the Company decreased this provisional amount by $1.3 million, which was recorded during the three month period ended March 31, 2018 and is included as a component of income tax expense from continuing operations. As of June 30, 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 six months ended June 30, 2018, the Company decreased its provisional amount by $2.5 million, which was recorded during the three month period ended March 31, 2018 and is included as a component of income tax expense from continuing operations. The deferred tax liabilities for withholding tax are still provisional as of June 30, 2018 as the Company’s permanent reinvestment assertions for foreign earnings associated with certain aspects of the Tax Act are not yet finalized. In June 2018, the Company recorded an income tax expense of $1.3 million based primarily on the results of a Canadian income tax audit. The expense recorded is the net result of reductions to the scientific research and experimental development expenditure pool and investment tax credit carryforward balances and an increase to non-capital carryforward losses. 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 six months ended June 30, 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	6 Months Ended
	Jun. 30, 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)	6 Months Ended
	Jun. 30, 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 has not and is not expected to 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 transfers occur. 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. 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 Company does not have any tax effects resulting from the Tax Act that are stranded in AOCI and therefore this guidance has no impact on its consolidated financial statements. The Company has early adopted this guidance and established the accounting policy for reclassifying to retained earnings any tax effects resulting from the Tax Act that are stranded in AOCI. In June 2018, the FASB issued guidance which simplifies the accounting for share-based payments to nonemployees by aligning it with the accounting for share-based payments to employees, with certain exceptions. For public business entities, the guidance is effective for annual periods beginning after December 15, 2018, and interim periods within those annual periods, however, early adoption is permitted. Although nonemployee directors do not satisfy the definition of employee, under FASB guidance, the Company's nonemployee directors acting in their role as members of a board of directors are treated as employees as those directors were elected by the Company's shareholders. Therefore, awards granted to these nonemployee directors for their services as directors already were accounted for as employee awards. The Company has early adopted this guidance, which did not have a material impact on its consolidated financial statements. Recent accounting guidance not yet adopted 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; however, early adoption is permitted. The FASB has approved an optional, alternative method to adopt the lease standard by recognizing a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. While the Company is continuing to assess the effects of adoption, we believe that we will use this alternative transition method. The Company continues to evaluate the impact of the adoption of this requirement on its consolidated financial statements, 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 consolidated balance sheet.

STOCKHOLDERS' EQUITY DIVIDENDS

STOCKHOLDERS' EQUITY DIVIDENDS (Policies)	6 Months Ended
	Jun. 30, 2018
Equity [Abstract]
Dividends Declared [Table Text Block]	On May 18, 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 June 22, 2018 and was paid on July 13, 2018 .

STOCKHOLDERS' EQUITY STOCK (Pol

STOCKHOLDERS' EQUITY STOCK (Policies)	6 Months Ended
	Jun. 30, 2018
Equity [Abstract]
Share-based Compensation, Stock Options, Activity [Table Text Block]	The Company’s stock option activity for the six months ended June 30, 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 761 22.06 Exercised (143 ) 17.96 Cancelled or expired (372 ) 18.48 Outstanding as of June 30, 2018 3,332 $ 19.01 The Company had $14.1 million of total unrecognized compensation costs related to stock options as of June 30, 2018 . These costs are expected to be recognized over a weighted average period of 2.64 years .
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity [Table Text Block]	The Company’s restricted share activity for the six months ended June 30, 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 383 22.14 Vested (284 ) 18.47 Cancelled or expired (39 ) 19.25 Non-vested as of June 30, 2018 775 $ 20.24 Restricted Stock Units (in thousands) Shares Non-vested as of December 31, 2017 423 Granted 92 Vested (49 ) Cancelled or expired (3 ) Non-vested as of June 30, 2018 463 As of June 30, 2018 , there were $15.6 million and $3.2 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 2.82 years for the RSAs and 2.40 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 June 30, Six Months Ended June 30, 2018 2017 2018 2017 Cost of revenue $ 406 $ 402 $ 816 $ 737 Research and development 537 759 200 597 Selling, general and administrative 2,604 2,865 3,792 3,414 Stock-based compensation costs reflected in net income $ 3,547 $ 4,026 $ 4,808 $ 4,748

INVESTMENTS (Tables)

INVESTMENTS (Tables)	6 Months Ended
	Jun. 30, 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 June 30, 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 June 30, 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 June 30, 2018 (in thousands): Amortized Cost Gains in Accumulated Other Comprehensive Income Losses in Accumulated Other Comprehensive Income Estimated Fair Value Current: Cash equivalents $ 702 $ — $ — $ 702 Total current securities 702 — — 702 Noncurrent: Total noncurrent securities — — — — Total available-for-sale securities $ 702 $ — $ — $ 702
Available-for-sale Securities [Table Text Block]	There were no proceeds from the sales of available-for-sale securities during the three and six months ended June 30, 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 June 30, 2018 and December 31, 2017 have been in a loss position for less than 12 months. There were no available-for-sale debt securities as of June 30, 2018 and December 31, 2017 .

INVESTMENTS AND OTHER ASSETS OT

INVESTMENTS AND OTHER ASSETS OTHER ASSETS (Tables)	6 Months Ended
	Jun. 30, 2018
Other Assets [Abstract]
Investments and Other Noncurrent Assets [Text Block]	During the three months ended June 30, 2018 , the Company made a $1.8 million investment in a private company. Based in the U.S. and not publicly traded, this minority investment is included at cost in other long-term assets of the Company’s Consolidated Balance Sheets. The Company does not have significant influence over the investee since the Company owns less than 20% of the voting equity in the investee. Further, the Company does not participate in policy-making processes or interchange managerial personnel. 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 second 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. The Company owns less than 20% of the voting equity in the investee, which is not publicly traded, and the Company does not participate in policy-making processes. 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. The Company loaned an additional $1.0 million to the private company in the six months ended June 30, 2018, resulting in a notes receivable balance of $2.4 million as of June 30, 2018 . The Company owns a minority interest in a third 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. Further, the Company does not participate in policy-making processes or interchange managerial personnel. 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 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 June 30, 2018 , the Company has not recorded any impairment charges related to the 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 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, an 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): June 30, 2018 December 31, 2017 Purchased technology rights (net of accumulated amortization of $7,305 and $7,012 as of June 30, 2018 and December 31, 2017, respectively) $ 6,856 $ 3,149 Investments 4,782 3,000 Notes receivable (1) 2,400 1,400 Other 1,033 1,050 $ 15,071 $ 8,599 (1) During the six months ended June 30, 2018 , the Company increased the principal amount of the promissory note with a private company, in which it made an aggregate $2.0 million minority interest investment, as discussed above.
Estimated Future Amortization Expense Related to Intangible Assets	For the six months ending June 30, 2018 and year ended December 31, 2017 , the Company recognized amortization expense related to the amortization of purchased technology rights of approximately $293,000 and $559,000 , respectively. Future amortization expense is estimated to be $302,000 in the two remaining quarters of 2018 , $603,000 in 2019 , $497,000 in 2020 , $470,000 in 2021 , $464,000 in 2022 , $456,000 in 2023 and $3,712,000 thereafter. The estimated aggregate amortization expense for the next five fiscal years and thereafter is as follows (in thousands): 2018 (six months) $ 4,333 2019 8,666 2020 8,666 2021 8,307 2022 7,060 Thereafter 21,639 $ 58,671 IP R&D 12,982 $ 71,653

GOODWILL (Tables)

GOODWILL (Tables)	6 Months Ended
	Jun. 30, 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 six months ended June 30, 2018 and twelve months ended December 31, 2017 as follows (in thousands): June 30, 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)	6 Months Ended
	Jun. 30, 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 June 30, 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 (3,044 ) (999 ) (289 ) — (4,332 ) Accumulated amortization balance as of June 30, 2018 (37,458 ) (8,036 ) (1,981 ) — (47,475 ) Net balance as of June 30, 2018 $ 43,927 $ 11,061 $ 3,683 $ 12,982 $ 71,653 Weighted average life (in years) 11 10 10
Estimated Future Amortization Expense Related to Intangible Assets	For the six months ending June 30, 2018 and year ended December 31, 2017 , the Company recognized amortization expense related to the amortization of purchased technology rights of approximately $293,000 and $559,000 , respectively. Future amortization expense is estimated to be $302,000 in the two remaining quarters of 2018 , $603,000 in 2019 , $497,000 in 2020 , $470,000 in 2021 , $464,000 in 2022 , $456,000 in 2023 and $3,712,000 thereafter. The estimated aggregate amortization expense for the next five fiscal years and thereafter is as follows (in thousands): 2018 (six months) $ 4,333 2019 8,666 2020 8,666 2021 8,307 2022 7,060 Thereafter 21,639 $ 58,671 IP R&D 12,982 $ 71,653

ACCUMULATED OTHER COMPREHENSI23

ACCUMULATED OTHER COMPREHENSIVE INCOME (Tables)	6 Months Ended
	Jun. 30, 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 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 (319 ) — (319 ) Net current-period other comprehensive loss (319 ) — (319 ) Balance as of June 30, 2018 $ (944 ) $ — $ (944 )
Comprehensive Income (Loss) Note [Text Block]	The following table presents the tax expense allocated to each component of other comprehensive income (loss) (in thousands): Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 Before Tax Tax Benefit Net of Tax Before Tax Tax Benefit Net of Tax Foreign currency translation adjustments $ (711 ) $ — $ (711 ) $ (319 ) $ — $ (319 ) Unrealized gains on available-for-sale investments — — — — — — Other comprehensive loss $ (711 ) $ — $ (711 ) $ (319 ) $ — $ (319 )

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	6 Months Ended
	Jun. 30, 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 June 30, Six Months Ended June 30, 2018 2017 2018 2017 Basic: Net income $ 5,669 $ 5,544 $ 19,066 $ 14,775 Less: allocation to participating securities (98 ) (103 ) (325 ) (276 ) Net income attributable to common stockholders $ 5,571 $ 5,441 $ 18,741 $ 14,499 Weighted average common stock outstanding 43,734 43,160 43,599 43,030 Net income per share attributable to common stockholders $ 0.13 $ 0.13 $ 0.43 $ 0.34 Diluted: Net income $ 5,669 $ 5,544 $ 19,066 $ 14,775 Less: allocation to participating securities (98 ) (103 ) (324 ) (276 ) Net income attributable to common stockholders $ 5,571 $ 5,441 $ 18,742 $ 14,499 Weighted average common stock outstanding 43,734 43,160 43,599 43,030 Effect of dilutive securities: stock options and awards 512 99 272 98 Weighted-average shares used in computing net income per share 44,246 43,259 43,871 43,128 Net income per share attributable to common stockholders $ 0.13 $ 0.13 $ 0.43 $ 0.34

ACCRUED LIABILITIES (Tables)

ACCRUED LIABILITIES (Tables)	6 Months Ended
	Jun. 30, 2018
Accrued Liabilities [Abstract]
Schedule of Accrued Liabilities [Table Text Block]	Accrued liabilities consisted of the following (in thousands): June 30, 2018 December 31, 2017 Compensation and employee benefits $ 11,149 $ 18,218 Dividends payable 2,701 2,671 Income and other taxes 215 1,070 Warranty costs 1,334 1,308 Other 2,837 2,723 $ 18,236 $ 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 (991 ) Accrual for warranty costs 1,017 Accrued warranty costs as of June 30, 2018 $ 1,334

Investment Components

Investment Components - USD ($) $ in Thousands	Jun. 30, 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	$ 702	$ 701
Available-for-sale Securities, Amortized Cost Basis	702	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	702	701
Available-for-sale Securities, Amortized Cost Basis	702	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	702	701
Available-for-sale Securities, Amortized Cost Basis	702	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	6 Months Ended	12 Months Ended
	Jun. 30, 2018	Jun. 30, 2018	Dec. 31, 2017
Purchased Technology Rights	$ 6,856,000	$ 6,856,000	$ 3,149,000
Cost Method Investments, Original Cost	4,782,000	4,782,000	3,000,000
Nontrade Receivables, Noncurrent	2,400,000	2,400,000	1,400,000
Other Assets, Miscellaneous, Noncurrent	1,033,000	1,033,000	1,050,000
Other Assets, Noncurrent	15,071,000	15,071,000	8,599,000
Future Amortization Expense Acquired Technology Rights Rest of Year		302,000
Future Amortization Expense Acquired Technology Rights Year One		603,000
Future Amortization Expense Acquired Technology Rights Year Two		497,000
Future Amortization Expense Acquired Technology Rights Year Three		470,000
Future Amortization Expense Acquired Technology Rights Year Four		464,000
Future Amortization Expense Acquired Technology Rights Year Five		456,000
Future Amortization Expense Acquired Technology Rights After Year Five		$ 3,712,000
Technology-Based Intangible Assets [Member]
Amortization	$ 293,000		$ 559,000

INVENTORIES INVENTORIES (Detail

INVENTORIES INVENTORIES (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Inventory Disclosure [Abstract]
Inventory, Raw Materials, Net of Reserves	$ 31,458	$ 29,266
Inventory, Work in Process, Net of Reserves	9,895	8,712
Inventory, Finished Goods, Net of Reserves	10,732	11,500
Inventory, Net	$ 52,085	$ 49,478

FAIR VALUE MEASUREMENTS FAIR VA

FAIR VALUE MEASUREMENTS FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Cash and Cash Equivalents, Fair Value Disclosure	$ 702	$ 701
Fair Value, Inputs, Level 1 [Member]
Cash and Cash Equivalents, Fair Value Disclosure	702	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	Jun. 30, 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		6 Months Ended		12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017	Dec. 31, 2016
Finite-Lived Intangible Assets [Line Items]
Intangible Assets, Gross (Excluding Goodwill)	$ 119,128		$ 119,128		$ 119,128	$ 119,128
Finite-Lived Intangible Assets, Accumulated Amortization	(47,475)		(47,475)		(43,143)	(34,287)
Intangible Assets, Net (Excluding Goodwill)	71,653		71,653		75,985
Finite-Lived Intangible Assets, Amortization Expense, Remainder of Fiscal Year	4,333		4,333
Amortization of Intangible Assets	(2,166)	$ (2,166)	(4,332)	$ (4,523)	(8,856)
Finite-Lived Intangible Assets, Amortization Expense, Year Two	8,666		8,666
Finite-Lived Intangible Assets, Amortization Expense, Year Three	8,666		8,666
Finite-Lived Intangible Assets, Amortization Expense, Year Four	8,307		8,307
Finite-Lived Intangible Assets, Amortization Expense, Year Five	7,060		7,060
Finite-Lived Intangible Assets, Amortization Expense, after Year Five	21,639		21,639
Finite Lived Intangible Assets, Future Amortization Expense, Except In Process Research & Development	58,671		58,671
Finite Lived Intangible Assets, Future Amortization Expense, In Process Research & Development	12,982		12,982
Finite-Lived Intangible Assets, Net	71,653		71,653		75,985
Technology-Based Intangible Assets [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible Assets, Gross (Excluding Goodwill)	81,385		81,385		81,385	81,385
Finite-Lived Intangible Assets, Accumulated Amortization	(37,458)		(37,458)		(34,414)	(28,137)
Intangible Assets, Net (Excluding Goodwill)	43,927		$ 43,927		$ 46,971
Finite-Lived Intangible Asset, Useful Life			11 years		11 years
Amortization of Intangible Assets			$ (3,044)		$ (6,277)
Customer-Related Intangible Assets [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible Assets, Gross (Excluding Goodwill)	19,097		19,097		19,097	19,097
Finite-Lived Intangible Assets, Accumulated Amortization	(8,036)		(8,036)		(7,037)	(5,038)
Intangible Assets, Net (Excluding Goodwill)	11,061		$ 11,061		$ 12,060
Finite-Lived Intangible Asset, Useful Life			10 years		10 years
Amortization of Intangible Assets			$ (999)		$ (1,999)
Other Intangible Assets [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible Assets, Gross (Excluding Goodwill)	5,664		5,664		5,664	5,664
Finite-Lived Intangible Assets, Accumulated Amortization	(1,981)		(1,981)		(1,692)	(1,112)
Intangible Assets, Net (Excluding Goodwill)	3,683		$ 3,683		$ 3,972
Finite-Lived Intangible Asset, Useful Life			10 years		10 years
Amortization of Intangible Assets			$ (289)		$ (580)
In Process Research and Development [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible Assets, Gross (Excluding Goodwill)	12,982		12,982		12,982	$ 12,982
Intangible Assets, Net (Excluding Goodwill)	$ 12,982		$ 12,982		$ 12,982

ACCUMULATED OTHER COMPREHENSI33

ACCUMULATED OTHER COMPREHENSIVE INCOME OTHER COMPREHENSIVE INCOME (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, before Tax, Portion Attributable to Noncontrolling Interest	$ (711)		$ (319)
Other Comprehensive Income (Loss), Foreign Currency Translation Gain (Loss) Arising During Period, Tax	0		0
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax	(711)		(319)
Accumulated Other Comprehensive Income (Loss), Net of Tax	(944)		(944)		$ (625)
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax			(319)
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent	(711)	$ 339	(319)	$ 602
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, before Tax	0		0
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Tax	0		0
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax	0		0
Other Comprehensive Income (Loss), before Tax, Portion Attributable to Parent	(711)		(319)
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent	0		0
Accumulated Foreign Currency Adjustment Attributable to Parent [Member]
Accumulated Other Comprehensive Income (Loss), Net of Tax	(944)		(944)		(625)
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax			(319)
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent			(319)
Accumulated Net Investment Gain (Loss) Attributable to Parent [Member]
Accumulated Other Comprehensive Income (Loss), Net of Tax	$ 0		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			6 Months Ended
	Jun. 30, 2018	Mar. 31, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Earnings Per Share [Abstract]
Net income	$ 5,669	$ 13,397	$ 5,544	$ 19,066	$ 14,775
Net Income (Loss) Attributable to Parent, Diluted					14,775
Participating Securities, Distributed and Undistributed Earnings (Loss), Basic				(325)	(276)
Net Income (Loss) Available to Common Stockholders, Basic	$ 5,571		$ 5,441	$ 18,741	$ 14,499
Weighted Average Number of Shares Outstanding, Basic	43,734		43,160	43,599	43,030
Earnings Per Share, Basic	$ 0.13		$ 0.13	$ 0.43	$ 0.34
Net Income (Loss) Available to Common Stockholders, Diluted	$ 5,571		$ 5,441	$ 18,742	$ 14,499
Weighted Average Number Diluted Shares Outstanding Adjustment	512		99	272	98
Participating Securities, Distributed and Undistributed Earnings (Loss), Diluted	$ (98)		$ (103)	$ (324)	$ (276)
Weighted Average Number of Shares Outstanding, Diluted	44,246		43,259	43,871	43,128
Earnings Per Share, Diluted	$ 0.13		$ 0.13	$ 0.43	$ 0.34

Stockholders' Equity - Addition

Stockholders' Equity - Additional Information (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 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	$ 14,100		$ 14,100
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number	3,332		3,332		3,086
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price	$ 19.01		$ 19.01		$ 18.10
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross			761
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price			$ 22.06
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period			(143)
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			(372)
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition			2 years 7 months 22 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	$ 15,600		$ 15,600
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number	775		775		715
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value	$ 20.24		$ 20.24		$ 18.46
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted			383
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value			$ 22.14
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period			(284)
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value			$ 18.47
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period			(39)
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value			$ 19.25
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition			2 years 9 months 27 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	$ 3,200		$ 3,200
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number	463		463		423
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted			92
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period			(49)
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period			(3)
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition			2 years 4 months 26 days
Net [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated Share-based Compensation Expense	$ 3,547	$ 4,026	$ 4,808	$ 4,748
Research and Development Expense [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated Share-based Compensation Expense	537	759	200	597
Selling, General and Administrative Expenses [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated Share-based Compensation Expense	2,604	2,865	3,792	3,414
Cost of Sales [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated Share-based Compensation Expense	$ 406	$ 402	$ 816	$ 737

ACCRUED LIABILITIES (Details)

ACCRUED LIABILITIES (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Accrued Liabilities [Abstract]
Standard Product Warranty Accrual	$ 1,334	$ 1,308
Employee-related Liabilities, Current	11,149	18,218
Dividends Payable, Current	2,701	2,671
Taxes Payable, Current	215	1,070
Product Warranty Accrual, Current	1,334	1,308
Standard Product Warranty Accrual, Decrease for Payments	(991)
Standard Product Warranty Accrual, Increase for Warranties Issued	1,017
Other Accrued Liabilities, Current	2,837	2,723
Accrued Liabilities, Current	$ 18,236	$ 25,990

REVENUE RECOGNITION (Details)

REVENUE RECOGNITION (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 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 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 some of 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 each 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 will adjust 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 six months ended June 30 , 2018 (in thousands): Balance at Beginning of Period Balance at End of Period Contract assets: Unbilled receivables - Royalties $ 10,643 $ 10,962 Contract liabilities - short-term: Deferred revenue - Service $ 4,438 $ 5,048 Deferred revenue - Licenses 246 241 Deferred revenue - Other 37 257 Total Contract liabilities - short-term $ 4,721 $ 5,546 Contract liabilities - long-term: Deferred revenue - Service $ 315 $ 262 Deferred revenue - Licenses 1,099 981 Deferred revenue - Other 83 83 Total Contract liabilities - long-term $ 1,497 $ 1,326 During the six months ended June 30 , 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): Six Months Ended June 31, Revenue recognized in the period from: 2018 Amounts included as contract liabilities at the beginning of the period $ 3,412 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 June 30, 2018 Six Months Ended June 30, 2018 Income Statement As Reported in this Quarterly Report Amounts Before Adoption of the Standard Net Effect of Adoption of the Standard As Reported in this Quarterly Report Amounts Before Adoption of the Standard Net Effect of Adoption of the Standard System sales $ 11,820 $ 11,215 $ 605 $ 19,751 $ 18,723 $ 1,028 Consumable sales 10,967 10,967 — 22,839 22,839 — Royalty revenue 11,567 11,677 (110 ) 23,806 23,390 416 Assay revenue 40,174 40,889 (715 ) 86,015 87,138 (1,123 ) Other revenue 5,050 5,050 — 9,829 9,829 — Revenue 79,578 79,798 (220 ) 162,240 — 161,919 321 Gross profit 49,306 49,526 (220 ) 102,894 103 102,573 321 Income from operations 7,858 8,078 (220 ) 23,124 22,803 321 Income tax benefit (expense) (2,197 ) (2,250 ) 53 (4,515 ) (4,438 ) (77 ) Net Income 5,669 5,836 (167 ) 19,066 19 18,822 244 As of June 30, 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 46,778 35,814 10,964 Deferred income taxes 32,538 35,169 (2,631 ) LIABILITIES AND STOCKHOLDERS' EQUITY Retained earnings 109,353 101,020 8,333
Revenue Recognition Unbilled Receivables	$ 10,962	$ 10,643
Revenue Recognition Short-Term Deferred Revenue	5,546	4,721
Revenue Recognition Long-Term Deferred Revenue	1,326	1,497
Nonsoftware Service, Support and Maintenance Arrangement [Member]
Revenue Recognition Short-Term Deferred Revenue	5,048	4,438
Revenue Recognition Long-Term Deferred Revenue	262	315
Royalty Arrangement [Member]
Revenue Recognition Short-Term Deferred Revenue	257	37
Revenue Recognition Long-Term Deferred Revenue	83	83
Nonsoftware License Arrangement [Member]
Revenue Recognition Short-Term Deferred Revenue	241	246
Revenue Recognition Long-Term Deferred Revenue	$ 981	$ 1,099