Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Feb. 25, 2019 | Jun. 30, 2018 | |
Document and Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
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 | 44,675,028 | ||
Entity Public Float | $ 1,219,631,021 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes |
BALANCE SHEETS
BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 76,441 | $ 127,112 |
Accounts receivable, net of allowance for doubtful accounts of $285 and $345 | 53,396 | 40,648 |
Inventory, Net | 63,250 | 49,478 |
Other | 9,657 | 7,403 |
Total current assets | 202,744 | 224,641 |
Property, Plant and Equipment, Net | 66,288 | 58,258 |
Finite-Lived Intangible Assets, Net | 105,148 | 75,985 |
Deferred Income Tax Assets, Net | 21,470 | 37,552 |
Goodwill | 118,127 | 85,481 |
Other Assets, Noncurrent | 11,398 | 8,599 |
Total assets | 525,175 | 490,516 |
Current liabilities: | ||
Accounts payable | 14,504 | 14,537 |
Accrued Liabilities, Current | 26,772 | 25,990 |
Deferred Revenue, Current | 10,099 | 4,721 |
Total current liabilities | 51,375 | 45,248 |
Long-term unearned revenue | 1,079 | 1,498 |
Other long-term liabilities | 5,065 | 5,863 |
Total liabilities | 57,519 | 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 | 365,349 | 350,834 |
Accumulated Other Comprehensive Income (Loss), Net of Tax | (1,127) | (625) |
Retained earnings | 103,390 | 87,655 |
Total stockholders' equity | 467,656 | 437,907 |
Total liabilities and stockholders' equity | $ 525,175 | $ 490,516 |
BALANCE SHEETS (Parenthetical)
BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 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 | 43,899,210 | |
Common Stock, Shares, Outstanding | 43,899,210 | 43,404,493 |
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 | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenue | |||||||||||
Revenue, Net | $ 81,133 | $ 72,445 | $ 79,578 | $ 82,662 | $ 78,199 | $ 74,136 | $ 76,457 | $ 77,779 | $ 315,818 | $ 306,571 | $ 270,639 |
Cost of revenue | |||||||||||
Total cost of revenue | 32,792 | 28,189 | 30,272 | 29,074 | 27,819 | 28,317 | 26,396 | 24,993 | 120,327 | 107,525 | 90,984 |
Gross Profit | 48,341 | 44,256 | 49,306 | 53,588 | 50,380 | 45,819 | 50,061 | 52,786 | 195,491 | 199,046 | 179,655 |
Research and Development Expense | 47,164 | 45,717 | 48,659 | ||||||||
Selling, General and Administrative Expense | 111,816 | 107,322 | 99,511 | ||||||||
Amortization of Intangible Assets | 8,665 | 8,854 | 8,218 | ||||||||
Restructuring Charges | 0 | 0 | 2,281 | ||||||||
Operating Expenses | 47,373 | 40,502 | 41,448 | 38,322 | 41,250 | 39,290 | 42,579 | 38,774 | 167,645 | 161,893 | 158,669 |
Operating Income (Loss) | 968 | 3,754 | 7,858 | 15,266 | 9,130 | 6,529 | 7,482 | 14,012 | 27,846 | 37,153 | 20,986 |
Other income, net | 465 | (4) | 129 | ||||||||
Gain (Loss) on Extinguishment of Debt | 0 | 0 | (1,500) | ||||||||
Income before income taxes | 28,311 | 37,149 | 19,615 | ||||||||
Provision for income taxes | (9,803) | (7,726) | (5,801) | ||||||||
Net Income (Loss) Attributable to Parent | $ (2,295) | $ 1,737 | $ 5,669 | $ 13,397 | $ (2,965) | $ 17,613 | $ 5,544 | $ 9,231 | $ 18,508 | $ 29,423 | $ 13,814 |
Earnings Per Share, Basic | $ (0.05) | $ 0.04 | $ 0.13 | $ 0.30 | $ (0.07) | $ 0.40 | $ 0.13 | $ 0.21 | $ 0.42 | $ 0.67 | $ 0.32 |
Weighted average shares outstanding: | |||||||||||
Weighted Average Number of Shares Outstanding, Basic | 43,727 | 43,173 | 42,584 | ||||||||
Weighted Average Number of Shares Outstanding, Diluted | 44,291 | 43,300 | 43,013 | ||||||||
Cash dividends declared per common share | $ 0.24 | $ 0.24 | $ 0 | ||||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | $ (502) | $ 1,067 | $ (434) | ||||||||
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, before Tax, Portion Attributable to Noncontrolling Interest | 0 | 0 | 38 | ||||||||
Other comprehensive income (loss) | (502) | 1,067 | (396) | ||||||||
Comprehensive income | $ 18,006 | $ 30,490 | $ 13,418 | ||||||||
Earnings Per Share, Diluted | $ 0.41 | $ 0.67 | $ 0.32 |
CASH FLOWS STATEMENTS
CASH FLOWS STATEMENTS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Operations | |||
Net Income (Loss) Attributable to Parent | $ 18,508 | $ 29,423 | $ 13,814 |
Adjustments to reconcile net income to net cash from operations: | |||
Gain (Loss) on Disposition of Assets | 730 | 964 | 265 |
Depreciation, amortization, and other | 23,674 | 22,641 | 20,131 |
Stock-based compensation expense | 12,226 | 12,478 | 11,821 |
Income Tax Expense (Benefit), Continuing Operations, Discontinued Operations | 8,159 | 6,383 | 3,626 |
Other Noncash Income (Expense) | (1,369) | 1,531 | (1,378) |
Changes in operating assets and liabilities: | |||
Accounts receivable | (1,569) | (8,265) | 1,136 |
Inventories | (6,827) | (8,668) | (5,484) |
Other current assets | (3,319) | (83) | 1,811 |
Accounts payable | 4 | 4,469 | 3,460 |
Other current liabilities | 103 | (2,657) | 198 |
Unearned revenue | 579 | (785) | 281 |
Net cash from operations | 50,899 | 57,431 | 49,681 |
Financing | |||
Common stock issued | 4,570 | 4,305 | 5,089 |
Payments Related to Tax Withholding for Share-based Compensation | (2,312) | (2,350) | (1,719) |
Common stock cash dividends paid | (10,654) | (7,930) | 0 |
Net cash from (used in) financing | (8,396) | (5,975) | (21,630) |
Repayments of Other Debt | 0 | 0 | (25,000) |
Investing | |||
Additions to property and equipment | (21,292) | (14,635) | (13,130) |
Payments to Acquire Businesses, Gross | (65,381) | 0 | (68,098) |
Proceeds from Sale and Maturity of Available-for-sale Securities | 0 | 0 | 19,491 |
Increase (Decrease) in Notes Receivables | (1,000) | (1,400) | 0 |
Purchases of investments | (1,782) | (1,000) | (1,000) |
Proceeds from Sale of Property, Plant, and Equipment | 2 | 62 | 45 |
Payments to Acquire Intangible Assets | (4,000) | (140) | (200) |
Net cash used in investing | (93,453) | (17,113) | (62,892) |
Effect of foreign exchange rates on cash and cash equivalents | 279 | (683) | (253) |
Net change in cash and cash equivalents | (50,671) | 33,660 | (35,094) |
Cash and cash equivalents, beginning of period | 127,112 | 93,452 | 128,546 |
Cash and cash equivalents, end of period | $ 76,441 | $ 127,112 | $ 93,452 |
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, Issued | 42,314,581 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 178,111 | ||||
Stock Issued During Period, Value, Stock Options Exercised | $ 3,303 | $ 0 | $ 3,303 | $ 0 | $ 0 |
Stock Issued During Period, Shares, Restructed Stock Award, Net of Forfeitures | 228,480 | ||||
Stock Issued During Period, Value, Restricted Stock Award, Gross | (1,718) | $ 0 | (1,718) | 0 | 0 |
Balance, beginning of period at Dec. 31, 2015 | 368,536 | 42 | 321,657 | (1,296) | 48,133 |
Net Income (Loss) Attributable to Parent | 13,814 | 0 | 0 | 0 | 13,814 |
Adjustments to Additional Paid in Capital, Income Tax Benefit from Share-based Compensation | 6,951 | 6,951 | |||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | (434) | 0 | 0 | (434) | 0 |
Other comprehensive income (loss) | (396) | ||||
Stockholders' Equity, Other | 38 | (38) | 0 | ||
Stock-based compensation expense | 11,776 | 0 | 11,776 | 0 | 0 |
Balance, end of period at Dec. 31, 2016 | $ 403,679 | $ 42 | 336,431 | (1,692) | 68,898 |
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 341,844 | 81,308 | |||
Stock Issued During Period, Value, Employee Stock Purchase Plan | $ 1,413 | $ 0 | 1,413 | 0 | 0 |
Common Stock, Shares, Outstanding | 42,802,480 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 163,579 | ||||
Stock Issued During Period, Value, Stock Options Exercised | 2,684 | $ 0 | 2,684 | 0 | 0 |
Stock Issued During Period, Shares, Restructed Stock Award, Net of Forfeitures | 345,978 | ||||
Stock Issued During Period, Value, Restricted Stock Award, Gross | (2,349) | $ (1) | (2,350) | 0 | 0 |
Net Income (Loss) Attributable to Parent | 29,423 | 0 | 0 | 0 | 29,423 |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | 1,067 | 0 | 0 | 1,067 | 0 |
Other comprehensive income (loss) | 1,067 | ||||
Common stock cash dividends | (10,597) | 0 | 69 | 0 | (10,666) |
Stock-based compensation expense | 12,409 | 0 | 12,409 | 0 | 0 |
Balance, end of period at Dec. 31, 2017 | $ 437,907 | $ 43 | 350,834 | (625) | 87,655 |
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 434,400 | 92,456 | |||
Stock Issued During Period, Value, Employee Stock Purchase Plan | $ 1,591 | $ 0 | 1,591 | 0 | 0 |
Common Stock, Shares, Outstanding | 43,404,493 | 43,404,493 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 157,754 | ||||
Stock Issued During Period, Value, Stock Options Exercised | $ 2,814 | $ 0 | 2,814 | 0 | 0 |
Stock Issued During Period, Shares, Restructed Stock Award, Net of Forfeitures | 253,152 | ||||
Stock Issued During Period, Value, Restricted Stock Award, Gross | (2,311) | $ (1) | (2,312) | 0 | 0 |
Net Income (Loss) Attributable to Parent | 18,508 | 0 | 0 | 0 | 18,508 |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | (502) | 0 | 0 | (502) | 0 |
Other comprehensive income (loss) | (502) | ||||
Common stock cash dividends | (10,710) | 0 | (86) | 0 | (10,796) |
Stock-based compensation expense | 12,187 | 0 | 12,187 | 0 | 0 |
Balance, end of period at Dec. 31, 2018 | $ 467,656 | $ 44 | 365,349 | (1,127) | 103,390 |
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 518,111 | 83,811 | |||
Stock Issued During Period, Value, Employee Stock Purchase Plan | $ 1,740 | $ 0 | $ 1,740 | $ 0 | $ 0 |
Common Stock, Shares, Issued | 43,899,210 | ||||
Common Stock, Shares, Outstanding | 43,899,210 | 43,899,210 |
INVENTORIES
INVENTORIES | 12 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Inventory Disclosure [Text Block] | NOTE 5 — INVENTORIES, NET Inventories consisted of the following at December 31 (in thousands): 2018 2017 Parts and supplies $ 39,873 $ 29,266 Work-in-progress 11,847 8,712 Finished goods 11,530 11,500 $ 63,250 $ 49,478 The Company has non-cancellable purchase commitments with certain of its component suppliers in the amount of approximately $39.6 million at December 31, 2018 . Should production requirements fall below the level of the Company’s commitments, the Company could be required to take delivery of inventory for which it has no immediate need or incur an increased cost per unit going forward. |
Schedule of Inventory, Current [Table Text Block] | 2018 2017 Parts and supplies $ 39,873 $ 29,266 Work-in-progress 11,847 8,712 Finished goods 11,530 11,500 $ 63,250 $ 49,478 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures [Text Block] | ASC 820 “Fair Value Measurement” (ASC 820) defines fair value, establishes a framework for measuring fair value under U.S. GAAP and enhances disclosures about fair value measurements. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. ASC 820 describes a fair value hierarchy based on the following three levels of inputs that may be used to measure fair value, of which the first two are considered observable and the last unobservable: Level 1—Quoted prices in active markets for identical assets or liabilities. Level 2—Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The Company determines the fair value of its investment portfolio assets by obtaining non-binding market prices from its third-party portfolio managers on the last day of the quarter, whose sources may use quoted prices in active markets for identical assets (Level 1 inputs) or inputs other than quoted prices that are observable either directly or indirectly (Level 2 inputs) in determining fair value. There were no transfers between Level 1, Level 2 or Level 3 measurements for the year ended December 31, 2018 . The following table represents the Company’s fair value hierarchy for its financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2018 and 2017 (in thousands): Fair Value Measurements as of December 31, 2018 Using Level 1 Level 2 Level 3 Total Assets: Money Market funds $ 704 $ — $ — $ 704 Minority Interest Investments $ — $ — $ 2,782 $ 2,782 Fair Value Measurements as of December 31, 2017 Using Level 1 Level 2 Level 3 Total Assets: Money Market funds $ 701 $ — $ — $ 701 Minority Interest Investments $ — $ — $ 3,000 $ 3,000 |
GOODWILL
GOODWILL | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill Disclosure [Text Block] | December 31, 2018 December 31, 2017 Balance at beginning of period $ 85,481 $ 85,481 Flow cytometry acquisition $ 32,646 $ — Balance at end of period $ 118,127 $ 85,481 |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Research, Development, and Computer Software Disclosure [Text Block] | As discussed in Note 3 above, in August 2018, the Company exercised its purchase option of a private company and recorded approximately $4.3 million of intangible assets through an asset acquisition. The Company currently has three IP R&D projects. The first relates to the development of the next generation VERIGENE ® System, VERIGENE II, on which the Company began clinical trials in May 2018. The Company believes the VERIGENE II will launch commercially in 2019. The second is a defensive IP R&D project related to the Company’s next generation xMAP System, the SENSIPLEX, which the Company believes will launch commercially in 2020. The third relates to the development of the next generation Guava System, acquired as part of the Acquisition. The fair value of the Guava Next Gen IP R&D project was determined using the income approach. The discount rate applied to the projected cash flows was 13.0%, which reflects the engineering and technical risks related to the projects. The allocation of the purchase price is preliminary and subject to change, based on the finalization of income tax matters. The Company believes the Guava Next Gen System will launch by the end of 2019. The estimated costs to complete these IP R&D projects are approximately $9.9 million . |
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 Flow cytometry acquisition 17,084 4,722 4,991 6,703 33,500 Asset acquisition — — — 4,328 4,328 Balance as of December 31, 2018 98,469 23,819 10,655 24,013 156,956 Less: accumulated amortization: Accumulated amortization balance as of December 31, 2017 (34,414 ) (7,037 ) (1,692 ) — (43,143 ) Amortization expense (6,087 ) (1,999 ) (579 ) — (8,665 ) Accumulated amortization balance as of December 31, 2018 (40,501 ) (9,036 ) (2,271 ) — (51,808 ) Net balance as of December 31, 2018 $ 57,968 $ 14,783 $ 8,384 $ 24,013 $ 105,148 Weighted average life (in years) 11 10 10 |
Estimated Future Amortization Expense Related to Intangible Assets | For the years ended December 31, 2018 and 2017 , the Company recognized amortization expense related to the amortization of purchased technology rights of approximately $621,000 and $559,000 , respectively. Future amortization expense is estimated to be $647,000 in 2019 , $547,000 in 2020 , $515,000 in 2021 , $497,000 in 2022 , $481,000 in 2023 and $3,965,000 thereafter. The estimated aggregate amortization expense for the next five fiscal years and thereafter is as follows (in thousands): 2019 $ 11,345 2020 11,345 2021 10,987 2022 9,740 2022 9,391 Thereafter 28,327 $ 81,135 IP R&D 24,013 $ 105,148 |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Comprehensive Income, Policy [Policy Text Block] | NOTE 9 — OTHER COMPREHENSIVE (LOSS) INCOME Comprehensive (loss) income represents a measure of all changes in equity that result from recognized transactions and other economic events other than those resulting from investments by and distributions to shareholders. Other comprehensive (loss) income for the Company includes foreign currency translation adjustments and net unrealized holding gains and losses on available-for-sale investments. The following table presents the changes in each component of accumulated other comprehensive (loss) income, 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 (502 ) — (502 ) Net current-period other comprehensive loss (502 ) — (502 ) Balance as of December 31, 2018 $ (1,127 ) $ — $ (1,127 ) There are no tax benefits or expenses related to the other comprehensive loss for the twelve months ended December 31, 2018 . |
Summary of Changes in Accumulated Other Comprehensive Income by Component | Foreign Currency Items Available-for-Sale Investments Accumulated Other Comprehensive Income (Loss) Items Balance as of December 31, 2017 $ (625 ) $ — $ (625 ) Other comprehensive income (502 ) — (502 ) Net current-period other comprehensive loss (502 ) — (502 ) Balance as of December 31, 2018 $ (1,127 ) $ — $ (1,127 ) |
ACCRUED LIABILITIES POLICIES (N
ACCRUED LIABILITIES POLICIES (Notes) | 12 Months Ended |
Dec. 31, 2018 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | NOTE 10 — ACCRUED LIABILITIES Accrued liabilities consisted of the following as of December 31 (in thousands): 2018 2017 Compensation and employee benefits $ 18,086 $ 18,218 Income and other taxes 1,014 1,070 Warranty costs 1,901 1,308 Dividends payable 2,703 2,671 Other 3,068 2,723 $ 26,772 $ 25,990 Sales of certain of the Company’s systems are subject to a warranty. System warranties typically extend for a period of twelve months from the date of installation or no more than 15 months from the date of shipment. The Company estimates the amount of warranty claims on sold products that may be incurred based on current and historical data. The actual warranty expense could differ from the estimates made by the Company based on product performance. Warranty expenses are evaluated and adjusted periodically. The following table summarizes the changes in the warranty accrual (in thousands): Accrued warranty costs at December 31, 2015 $ 553 Warranty services provided (1,322 ) Accrual for warranty costs 1,444 Accrued warranty costs at December 31, 2016 675 Warranty services provided (2,049 ) Accrual for warranty costs 2,682 Accrued warranty costs at December 31, 2017 1,308 Warranty services provided (2,159 ) Accrual for warranty costs 2,752 Accrued warranty costs at December 31, 2018 $ 1,901 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Summary of Operating Loss Carryforwards [Table Text Block] | At December 31, 2018 , the Company had gross federal, state and foreign net operating loss carryforwards of approximately $60.8 million , $349.0 million , and $8.1 million , respectively. These losses expire beginning in 2019 . Federal and state net operating losses of approximately $60.8 million and $349.0 million , respectively, were acquired as part of the acquisitions of U.S. companies. These acquired net operating losses are subject to annual limitations due to the “change of ownership” provisions of Section 382 of the Internal Revenue Code of 1986, as amended, and similar state provisions. |
Income Tax Disclosure [Text Block] | NOTE 11 — INCOME TAXES The components of income before income taxes for the years ended December 31 are as follows (in thousands): 2018 2017 2016 Domestic $ 7,242 $ 18,436 $ 2,281 Foreign 21,069 18,713 17,334 Total $ 28,311 $ 37,149 $ 19,615 The components of the (benefit) provision for income taxes attributable to continuing operations for the years ended December 31 are as follows (in thousands): 2018 2017 2016 Current: Federal $ (3,318 ) $ 3,149 $ 1,545 Foreign 515 295 204 State 600 883 449 Total current $ (2,203 ) $ 4,327 $ 2,198 Deferred: Federal 6,351 14,970 (215 ) Foreign 5,271 (9,267 ) 3,813 State 384 (2,304 ) 5 Total deferred 12,006 3,399 3,603 Total provision for income taxes $ 9,803 $ 7,726 $ 5,801 The Tax Cuts and Jobs Act (the Tax Act) was enacted on December 22, 2017 making significant reforms to the Internal Revenue Code. The reforms include, but are not limited to, a corporate tax rate decrease from 35% to 21% effective for tax years beginning after December 31, 2017, transition of U.S. international taxation from a worldwide tax system to a territorial system, and a mandatory one-time transition tax on the deemed repatriation of cumulative foreign earnings as of December 31, 2017. On December 22, 2017 , Staff Accounting Bulletin No. 118 (SAB 118) was issued to address the implication of US 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 and provides a one-year measurement period to complete the accounting required under ASC 740. We applied the guidance in SAB 118 when accounting for the enactment-date effects of the Tax Act in 2017 and throughout 2018 . At December 31, 2017, we had not completed our accounting for all the enactment-date income tax effects of the Tax Act under ASC 740, Income Taxes. The Company finalized its provisional amounts in the fourth quarter of 2018 for the following aspects: remeasurement of deferred tax assets and liabilities, one-time transition tax, and other deferred tax impacts. Deferred tax assets and liabilities As of December 31, 2017 , we remeasured certain deferred tax assets and liabilities based on the rates at which they were expected to reverse in the future (which was generally 21% ), by recording a provisional expense of $2.7 million . Upon further analysis of certain aspects of the Tax Act and refinement of our calculations during the twelve months ended December 31, 2018 , we reduced our provisional expense by $74,000 , which is included as a component of income tax expense from continuing operations. 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. In the fourth quarter of 2017, we recorded a provisional amount for our one-time transition tax liability for each of our foreign subsidiaries, resulting in a transition tax liability of $6.7 million . Upon further analyses of the Tax Act and notices and regulations issued and proposed by the U.S. Department of the Treasury and the Internal Revenue Service, as well as certain refinements to our E&P calculations related to our subsidiaries, the Company finalized its calculations of the transition tax liability during 2018. We increased our 2017 provisional amount by $1.9 million , which is included as a component of income tax expense from continuing operations. We have elected to pay our transition tax over eight-year period provided in the Tax Act. As of December 31, 2018 , the remaining balance of our transition tax obligation will be paid over the permitted eight year period. Global intangible low-taxed income (GILTI) The Tax Act subjects a U.S. shareholder to tax on GILTI earned by certain foreign subsidiaries. The FASB Staff Q&A, Topic 740, No. 5, Accounting for Global Intangible Low-Taxed Income, states that an entity can make an accounting policy election to either recognize deferred taxes for temporary basis differences expected to reverse as GILTI in future years or to provide for the tax expense related to GILTI in the year the tax is incurred as a period expense only. Because we were evaluating the provision of GILTI as of December 31, 2017 , we recorded no GILTI-related deferred amounts in 2017. After further consideration in the current year, we have elected to account for GILTI as a period expense in the year the tax is incurred; therefore, no deferred taxes are recorded related to GILTI. 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 earnings of $3.2 million at December 31, 2017 . Upon further analysis of its calculations of the Canadian withholding tax, the Company decreased its provisional amount by $2.5 million , which is included as a component of income tax expense from continuing operations. The provision for income taxes differs from the amount computed by applying the statutory federal rate to pretax income as follows (in percentages): Year Ended December 31, 2018 2017 2016 Statutory tax rate 21.0 % 35.0 % 35.0 % State taxes, net of federal benefit 3.0 % (1.4 )% 1.5 % Permanent items 2.6 % 0.5 % 9.5 % Effect of foreign operations 3.4 % (5.7 )% (9.0 )% Research and incentive tax credit generated (8.7 )% (4.6 )% (14.3 )% Valuation allowance 0.4 % (37.6 )% 5.5 % Income tax reserves 24.7 % 0.5 % 1.3 % Remeasurement U.S. deferreds (0.3 )% 7.3 % 0.0 % Transition tax (16.6 )% 18.1 % 0.0 % Foreign earnings withholding tax (7.9 )% 8.6 % 0.0 % Global intangible low-taxed income 5.7 % 0.0 % 0.0 % Other measurement period Tax Act adjustments 2.6 % 0.0 % 0.0 % Canadian income tax audit 4.8 % 0.0 % 0.0 % Other (0.1 )% 0.1 % 0.1 % 34.6 % 20.8 % 29.6 % The Company accounts for income taxes using the asset and liability method in accordance with ASC 740 “Income Taxes” (ASC 740) . Under this method, deferred income taxes are recognized for the future tax consequences of differences between the tax and financial accounting bases of assets and liabilities at the end of each reporting period. Deferred income taxes are based on enacted tax laws and statutory tax rates applicable to the periods in which the differences are expected to affect taxable income. A valuation allowance is established when necessary to reduce deferred tax assets to the amounts expected to be realized. Significant components of the Company’s deferred tax assets and liabilities as of December 31 are as follows (in thousands): 2018 2017 Deferred tax assets: Accrued liabilities and other $ 5,646 $ 6,444 Net operating loss and credit carryforwards 54,167 67,299 Deferred revenue — 1,541 Depreciation and amortization — 4,071 Stock compensation and other 6,525 5,429 Gross deferred tax assets 66,338 84,784 Valuation allowance (21,354 ) (21,943 ) Total deferred tax assets $ 44,984 $ 62,841 Deferred tax liabilities: Accrued liabilities and other $ (2,204 ) $ (4,207 ) Deferred revenue (358 ) — Depreciation and amortization (20,952 ) (20,155 ) Acquired intangibles — (927 ) Total deferred tax liabilities (23,514 ) (25,289 ) Net deferred tax assets $ 21,470 $ 37,552 The Company has established a valuation allowance against a portion of its remaining deferred tax assets because it is more likely than not that certain deferred tax assets will not be realized. In determining whether deferred tax assets are realizable, the Company considered numerous factors including historical profitability, the amount of future taxable income and the existence of taxable temporary differences that can be used to realize deferred tax assets. The valuation allowance decreased approximately $589,000 in 2018 from 2017 primarily due to releasing valuation allowance of $1.1 million against net deferred tax assets of certain state net operating loss and research carryforwards, and recording increased valuation allowance on the net deferred tax assets for stock compensation of $472,000 . Net deferred tax assets of certain state net operating losses offset by valuation allowance expired and the Company released these valuation allowances. We anticipate portions of net deferred tax assets will not be realized under the provisions of Section 162(m) of the Tax Act which limit the deductibility of executive compensation. At December 31, 2018 , the Company had gross federal, state and foreign net operating loss carryforwards of approximately $60.8 million , $349.0 million , and $8.1 million , respectively. These losses expire beginning in 2019 . Federal and state net operating losses of approximately $60.8 million and $349.0 million , respectively, were acquired as part of the acquisitions of U.S. companies. These acquired net operating losses are subject to annual limitations due to the “change of ownership” provisions of Section 382 of the Internal Revenue Code of 1986, as amended, and similar state provisions. The Company has federal, state and foreign credit carryforwards of approximately $7.1 million , $3.6 million , and $15.1 million , respectively. These credits begin to expire in 2019 , except for approximately $1.6 million which have an indefinite carryforward period. Certain of these credits are subject to annual limitations under the change in ownership provisions. Alternative minimum tax credits of $462,000 which are potentially subject to refund under the Tax Act have been reflected as deferred tax assets. In addition, the Company has state research credits of approximately $1.1 million which have an indefinite carryforward period. 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 cumulative amount of excess financial reporting basis of the Company’s non-U.S. subsidiaries was approximately $3.8 million at December 31, 2018 , $7.4 million at December 31, 2017 and $26.6 million at December 31, 2016 . Since the Company does not intend to permanently reinvest portions of its previously taxed Canadian earnings, it has recorded a deferred tax liability of $284,000 related to withholding and state income taxes associated with the ultimate repatriation from Canada to the U.S. of these previously taxed earnings. Beginning January 1, 2018, the Tax Act implemented a territorial tax system in the U.S. such that the income earned by the Company’s non-U.S. subsidiaries will be subject to a 100% dividend received deduction. As such, only potential withholding and state income taxes on the non-permanently reinvested earnings have a deferred tax liability recorded. We have not recognized a deferred tax liability related to withholding taxes on the excess financial reporting basis of our other foreign subsidiaries because the Company currently intends to reinvest earnings of these subsidiaries in operations outside the U.S. Determination of the amount of the unrecognized deferred tax liability on these unremitted earnings is not practicable. As of December 31, 2018 and December 31, 2017 , the Company had recorded gross unrecognized tax benefits of approximately $9.7 million and $2.8 million , respectively. All of the unrecognized tax benefits as of December 31, 2018 , if recognized, would impact the effective tax rate. The Company recognizes interest expense and penalties associated with uncertain tax positions as a component of income tax expense. During the years ended December 31, 2018 and 2017 , the Company recognized approximately $104,000 and $35,400 in tax related interest and penalties, respectively. Reserves for interest and penalties as of December 31, 2018 and 2017 are not significant as the Company has net operating loss carryovers. A reconciliation of the beginning and ending balance of unrecognized tax benefits is as follows (in thousands): 2018 2017 Balance at beginning of year $ 2,777 $ 2,677 Additions based on tax positions related to the current year 749 355 Additions for tax positions of prior years 6,605 — Reductions for tax positions of prior years (410 ) (103 ) Lapse of statute of limitations — (152 ) Balance at end of year $ 9,721 $ 2,777 As of December 31, 2018 , unrecognized tax benefits related to the U.S. transition tax on earnings of certain foreign subsidiaries and U.S. tax on global intangible low tax income of $6.2 million and $453,000 , respectively, were recorded. The Company has submitted a ruling for certain aspects of the E&P calculation of its Canadian subsidiary, and if the request is granted, it is reasonably possible that the unrecognized tax benefits will decrease by approximately $6.6 million in the next 12 months. The Company files U.S., state, and foreign income tax returns in jurisdictions with varying statutes of limitations. In the United States and Canada, the statute of limitations with respect to the federal income tax returns for tax years after 2012 are open to audit; however, since the Company has net operating losses, the taxing authority has the ability to review tax returns prior to the 2012 tax year and make adjustments to these net operating loss carryforwards. In June and September 2018, the Company recorded an income tax expense totaling $1.4 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. We are not under audit in any major taxing jurisdictions at this time. |
Summary of Tax Credit Carryforwards [Table Text Block] | The Company has federal, state and foreign credit carryforwards of approximately $7.1 million , $3.6 million , and $15.1 million , respectively. These credits begin to expire in 2019 , except for approximately $1.6 million which have an indefinite carryforward period. Certain of these credits are subject to annual limitations under the change in ownership provisions. Alternative minimum tax credits of $462,000 which are potentially subject to refund under the Tax Act have been reflected as deferred tax assets. In addition, the Company has state research credits of approximately $1.1 million which have an indefinite carryforward period. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | A reconciliation of the denominators used in computing per share net income (EPS) is as follows (in thousands, except per share amounts): Year Ended December 31, 2018 2017 2016 Basic: Net income $ 18,508 $ 29,423 $ 13,814 Less: allocation to participating securities (312 ) (529 ) — Net income attributable to common stockholders $ 18,196 $ 28,894 $ 13,814 Weighted average common stock outstanding 43,727 43,173 42,584 Net income per share attributable to common stockholders $ 0.42 $ 0.67 $ 0.32 Diluted: Net income $ 18,508 $ 29,423 $ 13,814 Less: allocation to participating securities (311 ) (529 ) — Net income attributable to common stockholders $ 18,197 $ 28,894 $ 13,814 Weighted average common stock outstanding 43,727 43,173 42,584 Effect of dilutive securities: stock options and awards 564 127 429 Weighted-average shares used in computing net income per share 44,291 43,300 43,013 Net income per share attributable to common stockholders $ 0.41 $ 0.67 $ 0.32 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. Restricted stock awards (RSAs) and stock options to acquire 619,113 , 2,182,404 , and 2,017,106 shares for the years ended December 31, 2018 , 2017 and 2016 , respectively, were excluded from the computations of diluted earnings per share because the effect of including the RSAs and stock options would have been anti-dilutive. We apply the two-class method of computing earnings per share, which requires the calculation of separate earnings per share amounts for our non-vested, time-based restricted stock awards with non-forfeitable dividends and for our common stock. Our non-vested, time-based restricted stock awards with non-forfeitable dividends are considered securities which participate in undistributed earnings with common stock. Under the two-class computation method, net losses are not allocated to participating securities unless the holder of the security has a contractual obligation to share in the losses. Our non-vested, time-based restricted stock awards with non-forfeitable dividends do not have such an obligation so they are not allocated losses. |
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): Year Ended December 31, 2018 2017 2016 Basic: Net income $ 18,508 $ 29,423 $ 13,814 Less: allocation to participating securities (312 ) (529 ) — Net income attributable to common stockholders $ 18,196 $ 28,894 $ 13,814 Weighted average common stock outstanding 43,727 43,173 42,584 Net income per share attributable to common stockholders $ 0.42 $ 0.67 $ 0.32 Diluted: Net income $ 18,508 $ 29,423 $ 13,814 Less: allocation to participating securities (311 ) (529 ) — Net income attributable to common stockholders $ 18,197 $ 28,894 $ 13,814 Weighted average common stock outstanding 43,727 43,173 42,584 Effect of dilutive securities: stock options and awards 564 127 429 Weighted-average shares used in computing net income per share 44,291 43,300 43,013 Net income per share attributable to common stockholders $ 0.41 $ 0.67 $ 0.32 |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Shareholders' Equity and Share-based Payments [Text Block] | Employee Stock Purchase Plan In May 2012, the Company’s stockholders approved the ESPP, which provides for the purchase of up to 500,000 shares of the Company’s common stock by eligible employees. In May 2017, the Company’s stockholders approved an amendment to the ESPP Plan, which increased the shares available under the ESPP by 341,744 shares. The ESPP period is semi-annual and allows participants to purchase the Company’s common stock at 85% of the lesser of (i) the closing market value per share of the common stock on the first trading date of the option period or (ii) the closing market value per share of the common stock on the last trading date of the option period. As of December 31, 2018 , 2017 and 2016 , 518,111 shares, 434,400 shares and 341,844 shares, respectively had been issued out of the ESPP. The related stock-based compensation expense was $0.6 million , $0.5 million and $0.4 million for 2018 , 2017 and 2016 , respectively. The Company uses the Black-Scholes model to estimate the fair value of shares to be issued under the ESPP as of the grant date using the following weighted average assumptions: 2018 2017 2016 Assumptions: Risk-free interest rates 2.1 % 1.07 % 0.04% to 0.05% Expected life 0.5 years 0.5 years 0.4 to 0.5 years Expected volatility .44 .45 .47 Dividend yield 1.2 % 1.3 % — % |
CONTINGENCIES
CONTINGENCIES | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | 2019 $ 5,747 2020 5,546 2021 5,457 2022 4,080 2023 3,540 Thereafter 2,813 Total $ 27,183 |
Commitments and Contingencies Disclosure [Text Block] | NOTE 14 — COMMITMENTS AND CONTINGENCIES Lease Arrangements The Company has operating leases related primarily to its office and manufacturing facilities with original lease periods of up to ten years. Rental and lease expense for these operating leases for the years 2018 , 2017 and 2016 totaled approximately $7.0 million , $6.6 million and $5.8 million , respectively. Minimum annual lease commitments as of December 31, 2018 under non-cancellable leases for each of the next five years and in the aggregate were as follows (in thousands): 2019 $ 5,747 2020 5,546 2021 5,457 2022 4,080 2023 3,540 Thereafter 2,813 Total $ 27,183 These non-cancellable lease commitments related to facilities include certain rent escalation provisions which have been included in the minimum annual rental commitments shown above. These amounts are recorded to expense on a straight-line basis over the life of the lease. In addition, some of the Company’s leases contain options to renew the lease for five to ten years at the then prevailing market rental rate, right of first refusal to lease additional space that becomes available, or leasehold improvement incentives. Non-Cancellable Purchase Commitments As of December 31, 2018 the Company had approximately $39.6 million in purchase commitments primarily with several of its inventory suppliers as well as other operating commitments. Certain of our supply agreements require purchase and delivery of minimum amounts of components through 2018, and purchases under these arrangements were $2.2 million , $1.8 million and $2.6 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. Employment Contracts The Company has entered into employment contracts with certain of its key executives. Generally, certain amounts may become payable in the event the Company terminates the executives’ employment without cause or the executive resigns for good reason. Legal Proceedings 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) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | NOTE 17 — RECENT ACCOUNTING PRONOUNCEMENTS Recently adopted accounting guidance In May 2014, the Financial Accounting Standards Board (FASB) issued a new standard on revenue recognition, Accounting Standards Codification 606 (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 18, “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 the Company’s 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 statement of comprehensive income 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 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 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 early adopted this guidance, which did not have a material impact on its consolidated financial statements. In August 2018, the FASB issued guidance that eliminates, adds and modifies certain disclosure requirements for fair value measurements. Entities will no longer be required to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, but public companies will be required to disclose the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements. The guidance is effective for annual and interim periods beginning after December 15, 2019, but entities are permitted to early adopt either the entire standard or only the provisions that eliminate or modify the requirements. The Company early adopted this guidance, which did not have a material impact on its consolidated financial statements. In September 2018, the Securities and Exchange Commission (SEC) issued interpretive guidance relating to previously adopted amendments to certain disclosure requirements, including those related to interim disclosures about changes in stockholders’ equity and non-controlling interests. The guidance extends the annual requirement to disclose: (1) changes in stockholders’ equity and (2) the amount of dividends per share for each class of shares (as opposed to common stock only, as previously required) to interim periods. The amendments are effective for all filings made on or after November 5, 2018. However, the interpretive guidelines indicate that the SEC would not object if a filer’s first presentation of the change in stockholders’ equity is included in its 10-Q for the quarter that begins after the effective date of the amendments. The Company has adopted this guidance during the quarter ended September 30, 2018 by including prior year, comparative periods in its Consolidated Statement of Changes in Stockholders’ Equity. 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 early adopted this guidance in the fourth quarter of 2018, which did not have a material impact on its consolidated financial statements. Recent accounting guidance not yet adopted In June 2016, the FASB issued guidance on financial instruments and related credit losses. The guidance requires that financial assets measured at amortized cost be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis. The statement of comprehensive income reflects the measurement of credit losses for newly recognized financial assets, as well as the expected credit losses during the period. The measurement of expected credit losses is based upon historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. Credit losses relating to available-for-sale debt securities will be recorded through an allowance for credit losses rather than as a direct write-down to the security. The updated guidance is effective for annual periods beginning after December 15, 2019, and is applicable to the Company in fiscal 2020. Early adoption is permitted. The Company 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. The Company adopted the new standard effective January 1, 2019, using the alternative method. With the implementation of the standard, the Company will recognize right-to-use assets and lease liabilities for operating leases of approximately $25 million . The Company will not have a cumulative adjustment impacting retained earnings. Adoption of the lease standard will not have a material impact on the Company’s consolidated statement of comprehensive income nor on its consolidated cash flows statements. |
PROPERTY AND EQUIPMENT (Notes)
PROPERTY AND EQUIPMENT (Notes) | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment, Policy [Policy Text Block] | Property and Equipment Property and equipment are carried at cost less accumulated amounts for amortization and depreciation. Property and equipment are typically amortized or depreciated on a straight-line basis over the useful lives of the assets, which typically range from two to seven years. Leasehold improvements and equipment under capital leases are amortized on a straight-line basis over the shorter of the remaining term of the lease or the estimated useful life of the improvements and equipment. The Company classifies the carrying value of Luminex’s xMAP, ARIES ® and VERIGENE Systems placed within the reagent rental program and the instruments on loan to customers in property and equipment as “Assets on loan/rental. NOTE 7 — PROPERTY AND EQUIPMENT Property and equipment consisted of the following at December 31 (in thousands): 2018 2017 Laboratory equipment $ 58,330 $ 52,498 Leasehold improvements 39,289 37,155 Computer equipment 3,322 3,174 Purchased software 22,141 22,056 Furniture and fixtures 5,874 5,842 Assets on loan/rental 24,259 15,741 Capital lease equipment 846 962 154,061 137,428 Less: Accumulated depreciation (87,773 ) (79,170 ) $ 66,288 $ 58,258 Depreciation expense was $14.4 million , $13.2 million and $11.5 million for the years ended December 31, 2018 , 2017 , and 2016 , respectively. |
GUARANTEES (Notes)
GUARANTEES (Notes) | 12 Months Ended |
Dec. 31, 2018 | |
Guarantees and Product Warranties [Abstract] | |
Guarantees, Indemnifications and Warranties Policies [Policy Text Block] | NOTE 15 — GUARANTEES The terms and conditions of the Company’s development and supply and license agreements with its strategic partners generally provide for a limited indemnification of such partners, arising from the sale of Luminex systems and consumables, against losses, expenses and liabilities resulting from third-party claims based on an alleged infringement on an intellectual property right of such third party. The terms of such indemnification provisions generally limit the scope of and remedies for such indemnification obligations to a multiple of amounts paid by such strategic partner to Luminex during the previous annual period(s). To date, the Company has not had to reimburse any of its strategic partners for any losses arising from such indemnification obligations. |
GEOGRAPHIC SEGMENTS (Notes)
GEOGRAPHIC SEGMENTS (Notes) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Revenue from External Customers by Geographic Areas [Table Text Block] | NOTE 16 — GEOGRAPHIC INFORMATION The table below provides information regarding product revenues and property and equipment, net from the Company’s sales to customers within the United States and in foreign countries for the years ended December 31 (in thousands): Sales to Customers Property and Equipment, net 2018 2017 2016 2018 2017 2016 Domestic $ 261,726 $ 256,834 $ 222,706 $ 63,382 $ 54,623 $ 53,283 Foreign: Europe 21,672 20,378 19,211 394 809 1,079 Asia 21,603 20,134 20,733 519 741 730 Canada 4,775 4,386 3,738 1,993 2,077 2,274 Other 6,042 4,839 4,251 — 8 9 $ 315,818 $ 306,571 $ 270,639 $ 66,288 $ 58,258 $ 57,375 The Company’s aggregate foreign currency transaction losses of $487,000 , $134,000 and $121,000 were included in determining the consolidated results for the years ended December 31, 2018 , 2017 and 2016 , respectively. |
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Table Text Block] | Sales to Customers Property and Equipment, net 2018 2017 2016 2018 2017 2016 Domestic $ 261,726 $ 256,834 $ 222,706 $ 63,382 $ 54,623 $ 53,283 Foreign: Europe 21,672 20,378 19,211 394 809 1,079 Asia 21,603 20,134 20,733 519 741 730 Canada 4,775 4,386 3,738 1,993 2,077 2,274 Other 6,042 4,839 4,251 — 8 9 $ 315,818 $ 306,571 $ 270,639 $ 66,288 $ 58,258 $ 57,375 |
QUARTERLY FINANCIAL RESULTS (No
QUARTERLY FINANCIAL RESULTS (Notes) | 12 Months Ended |
Dec. 31, 2018 | |
Income Statement [Abstract] | |
Quarterly Financial Information [Text Block] | NOTE 19 — SELECTED QUARTERLY RESULTS (UNAUDITED) The following table sets forth certain quarterly financial data for the periods indicated (in thousands, except per share data): Quarter Ended March 31, June 30, September 30, December 31, Revenue $ 82,662 $ 79,578 $ 72,445 $ 81,133 Gross profit 53,588 49,306 44,256 48,341 Income (loss) from operations 15,266 7,858 3,754 968 Net income (loss) 13,397 5,669 1,737 (2,295 ) Basic income (loss) per common share 0.30 0.13 0.04 (0.05 ) Diluted income (loss) per common share 0.30 0.13 0.04 (0.05 ) Cash dividends per common share 0.06 0.06 0.06 0.06 Quarter Ended March 31, June 30, September 30, December 31, Revenue $ 77,779 $ 76,457 $ 74,136 $ 78,199 Gross profit 52,786 50,061 45,819 50,380 Income from operations 14,012 7,482 6,529 9,130 Net income (1) 9,231 5,544 17,613 (2,965 ) Basic income per common share 0.21 0.13 0.40 (0.07 ) Diluted income per common share 0.21 0.13 0.40 (0.07 ) Cash dividends per common share 0.06 0.06 0.06 0.06 (1) Net income in the third quarter of 2017 included an income tax benefit from the release of a portion of the valuation allowance on deferred tax assets in Canada. See Note 11 – Income Taxes. See Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations for further discussion. |
SUBSEQUENT EVENTS (Notes)
SUBSEQUENT EVENTS (Notes) | 12 Months Ended |
Dec. 31, 2018 | |
Subsequent Event [Line Items] | |
Subsequent Events [Text Block] | NOTE 20 — SUBSEQUENT EVENTS On February 26, 2019, the Company reached an agreement with LabCorp whereby LabCorp has agreed to extend its commitment to the Luminex Cystic Fibrosis product line through December 31, 2021. |
BASIS OF PRESENTATION DESCRIPTI
BASIS OF PRESENTATION DESCRIPTION OF BUSINESS (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business Description and Basis of Presentation [Text Block] | Description of Business Luminex Corporation, the “Company” or “Luminex,” develops, manufactures and sells proprietary biological testing technologies and products with applications throughout the life sciences industries, including diagnostics, pharmaceutical and research. These industries depend on a broad range of tests, called assays, to perform diagnostic testing and conduct life science research. The Company established a position in several segments of the life sciences industries by developing and delivering products that satisfy a variety of customer needs in specific market segments, including multiplexing, accuracy, precision, sensitivity, specificity, reduction of labor and ability to test for proteins and nucleic acids. These needs are addressed by the Company’s proprietary technologies. Multiplexing, the foundation of the Company, allows the end user in a laboratory to generate multiple laboratory results from a single sample with a single assay. This is important because the Company’s end user customers, which include laboratory professionals performing discovery and research and clinical laboratories performing tests on patients as ordered by physicians and other laboratories, have a fundamental need to perform high quality testing as efficiently as possible. Until the availability of multiplexing technology, the laboratory professional had to perform one assay at a time in a sequential manner, and if additional testing was required on a sample, a second assay would be performed to generate the second result, and so on until all the necessary tests were performed. The Company primarily serves the life sciences industries by marketing products, including our specific testing equipment and assays, to various types of testing laboratories. The Company has a large base of installed systems that has grown primarily from the following: • placements made by customers within the Company’s Licensed Technologies Group (LTG), in which customers either: • license the Company’s xMAP technology and develop products that incorporate the Company’s xMAP technology into products that they then sell to end users, or • purchase the Company’s proprietary xMAP laboratory instrumentation and the Company’s proprietary xMAP microspheres and sell xMAP-based assay products and/or xMAP-based testing services, which run on the xMAP instrumentation, and pay a royalty to the Company; • a direct sales force that focuses on the sale of molecular diagnostic assays that run on the Company’s systems. As of December 31, 2018 , the Company had 74 strategic partners, 50 of which have released commercialized reagent-based products utilizing the Company’s technology. Luminex and these partners have sold approximately 15,979 xMAP-based instruments in laboratories worldwide as of December 31, 2018 , some of which may be retired or otherwise not in use. The Company’s remaining partners are in various stages of development and commercialization of products incorporating the Company’s technology. A primary focus for the Company’s growth is the development and sale of molecular diagnostic assays utilizing the Company’s proprietary MultiCode ® and VERIGENE technologies for use on the Company’s installed base of systems. The Company utilizes a direct sales model for sales of these products, which is intended to take advantage of the Company’s increasing installed base of instruments. Luminex’s assays are primarily focused on multiplexed applications for the human molecular clinical diagnostics market. Luminex’s assays are currently focused on three segments of the molecular diagnostic testing market: infectious disease, personalized medicine and human genetics. |
Consolidation, Policy [Policy Text Block] | Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All significant intercompany transactions and balances have been eliminated upon consolidation. |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual amounts and results could differ from those estimates, and such differences could be material to the financial statements. |
Cash, Cash Equivalents, and Marketable Securities [Text Block] | Cash and Cash Equivalents Cash and cash equivalents consist of cash deposits and highly liquid investments with original maturities of three months or less when purchased. |
Investment Holdings, Schedule of Investments [Text Block] | Investments The Company determines the appropriate classification of its investments in equity securities at the time of purchase and reevaluates such determinations at each balance sheet date. Marketable securities that are bought and held principally for the purpose of selling them in the near-term are classified as trading securities and are reported at fair value, with unrealized gains and losses recognized in earnings. Held-to-maturity securities are stated at amortized cost, which approximates fair value of these investments. Marketable equity securities not classified as held-to-maturity or as trading are classified as available-for-sale, and are carried at fair market value, with the unrealized gains and losses included in the determination of comprehensive income and reported in stockholders’ equity. Marketable securities are recorded as either short-term or long-term on the balance sheet based on contractual maturity date. The fair value of all securities is determined by obtaining non-binding market prices from the Company’s third-party portfolio managers on the last day of the quarter, whose sources may use quoted prices in active markets for identical assets or inputs other than quoted prices that are observable either directly or indirectly in determining fair value. Declines in fair value below the Company’s carrying value deemed to be other than temporary are charged against net earnings. |
Fair Value of Financial Instruments, Policy [Policy Text Block] | Fair Value of Financial Instruments The fair values of financial instruments are determined by obtaining non-binding market prices from the Company’s third-party portfolio managers on the last day of the quarter, whose sources may use quoted prices in active markets for identical assets or inputs other than quoted prices that are observable either directly or indirectly in determining fair value. The Company’s financial instruments include cash and cash equivalents, short-term investments, accounts receivable, cost-method investments, long-term investments, accounts payable and accrued liabilities. The fair values of these financial instruments were not materially different from their carrying or contract values at December 31, 2018 and 2017 . See Note 6 for further details concerning fair value measurements. |
Schedule of Cash Flow, Supplemental Disclosures [Table Text Block] | Supplemental Cash Flow Statement Information (in thousands) Year Ended December 31, 2018 2017 2016 Cash paid during the period for taxes $ 2,214 $ 1,393 $ 385 Cash (received) paid during the period for interest and penalties 17 57 (3 ) Cash paid during the period for Nanosphere debt interest — — 391 Cash paid during the period for Nanosphere debt prepayment penalty — — 1,500 Effect of acquisitions: Fair value of tangible assets acquired 13,262 — 34,372 Liabilities assumed (5,082 ) — (25,391 ) Cost in excess of fair value of assets acquired 32,647 — 35,862 Acquired identifiable intangible assets 26,797 — 27,595 Deferred tax assets (liabilities), net (4,433 ) — 6,989 In-process research and development 6,703 — 12,982 Total purchase price 69,894 — 92,409 Less cash and cash equivalents acquired 4,513 — 24,311 Net cash paid for business acquisition $ 65,381 $ — $ 68,098 |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | Concentration of Credit Risk Financial instruments which potentially subject the Company to concentrations of credit risk consist of short-term and long-term investments and trade receivables. The Company’s short-term investments consist of investments in high credit quality financial institutions, non-government sponsored debt securities and corporate issuers. The Company provides credit, in the normal course of business, to a number of its customers geographically dispersed primarily throughout the U.S. The Company attempts to limit its credit risk by performing ongoing credit evaluations of its customers and maintaining adequate allowances for potential credit losses, but the Company does not require collateral. LabCorp accounted for 15% , 20% and 20% of our total revenues in 2018 , 2017 and 2016 , respectively. Thermo Fisher Scientific Inc. accounted for 14% , 15% and 13% of our total revenues in 2018 , 2017 and 2016 , respectively. No other customer accounted for more than 10% of our total revenues in 2018 , 2017 or 2016 . |
Inventory, Policy [Policy Text Block] | Inventories Inventories, consisting primarily of raw materials and purchased components, 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. As a developer and manufacturer of high technology medical equipment, the Company may be exposed to a number of economic and industry factors that could result in portions of inventory becoming either obsolete or in excess of anticipated usage. These factors include, but are not limited to, technological changes in the Company’s markets, ability to meet changing customer requirements, competitive pressures on products and prices, and reliability and replacement of and the availability of key components from suppliers. The Company’s policy is to establish inventory reserves when conditions exist that suggest that inventory may be in excess of anticipated demand or is obsolete based upon the Company’s assumptions about future demand for products and market conditions. The Company regularly evaluates the ability to realize the value of inventory based on a combination of factors including the following: historical usage rates, forecasted sales or usage, product expiration or end of life dates, estimated current and future market values and new product introductions. Assumptions used in determining the Company’s estimates of future product demand may prove to be incorrect, in which case the provision required for excess and obsolete inventory would have to be adjusted. If inventory is determined to be overvalued, excess or obsolete, the Company would be required to record impairment charges within cost of goods sold at the time of such determination. Although considerable effort is made to ensure the accuracy of forecasts of future product demand, any significant unanticipated changes in demand or expected usage could have a significant negative impact on the value of inventory and the Company’s operating results. When recorded, reserves are intended to reduce the carrying value of inventory to its net realizable value. |
Property, Plant and Equipment, Policy [Policy Text Block] | Property and Equipment Property and equipment are carried at cost less accumulated amounts for amortization and depreciation. Property and equipment are typically amortized or depreciated on a straight-line basis over the useful lives of the assets, which typically range from two to seven years. Leasehold improvements and equipment under capital leases are amortized on a straight-line basis over the shorter of the remaining term of the lease or the estimated useful life of the improvements and equipment. The Company classifies the carrying value of Luminex’s xMAP, ARIES ® and VERIGENE Systems placed within the reagent rental program and the instruments on loan to customers in property and equipment as “Assets on loan/rental. NOTE 7 — PROPERTY AND EQUIPMENT Property and equipment consisted of the following at December 31 (in thousands): 2018 2017 Laboratory equipment $ 58,330 $ 52,498 Leasehold improvements 39,289 37,155 Computer equipment 3,322 3,174 Purchased software 22,141 22,056 Furniture and fixtures 5,874 5,842 Assets on loan/rental 24,259 15,741 Capital lease equipment 846 962 154,061 137,428 Less: Accumulated depreciation (87,773 ) (79,170 ) $ 66,288 $ 58,258 Depreciation expense was $14.4 million , $13.2 million and $11.5 million for the years ended December 31, 2018 , 2017 , and 2016 , respectively. |
Goodwill and Intangible Assets, Policy [Policy Text Block] | Goodwill and Other Intangible Assets Goodwill represents the excess of the cost over the fair value of the assets of the acquired business. In accordance with Accounting Standards Codification (ASC) 350 “Goodwill and Other” (ASC 350), goodwill is reviewed for impairment at least annually at the beginning of the fourth quarter, or more frequently if impairment indicators arise, tested at our sole reporting unit level. Events or circumstances that could trigger an impairment test include, but are not limited to, a significant adverse change in the business climate, significant changes in our use of the acquired assets, significant negative industry or economic trends, significant under-performance relative to operating performance indicators and significant changes in competition. The Company determined that no triggering events occurred during the year ended December 31, 2018 . In 2018 and 2017 , the Company estimated the fair value of the reporting unit using a fair-value-based approach based on the market capitalization. Determining the fair value of goodwill is subjective in nature and often involves the use of estimates and assumptions including, without limitation, use of estimates of future prices and volumes for the Company’s products, capital needs, economic trends and other factors which are inherently difficult to forecast. The Company’s annual test did not result in an impairment charge in 2018 , as the estimated fair value of the reporting unit continued to exceed the carrying value by a significant enough amount such that any reasonably likely change in the assumptions used in the analysis would not cause the carrying value to exceed the estimated fair value for the reporting unit. No goodwill impairments were recorded in 2018 , 2017 or 2016 . Intangible assets are amortized on a straight-line basis over their respective estimated useful lives ranging from 9 to 15 years. Any in-process research and development will be an indefinite-lived intangible asset until completion or abandonment, at which point it will be accounted for as a finite-lived intangible asset or written off if abandoned. |
Impairment or Disposal of Long-Lived Assets, Including Intangible Assets, Policy [Policy Text Block] | Impairment of Long-Lived Assets Long-lived assets held and used by the Company are reviewed for impairment whenever events or changes in circumstances indicate that their net book value may not be recoverable. When such factors and circumstances exist, the Company compares the projected undiscounted future cash flows associated with the related asset or group of assets over their estimated useful lives against their respective carrying amounts. Impairment, if any, is based on the excess of the carrying amount over the fair value of those assets and is recorded in the period in which the determination was made. |
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition and Allowance for Doubtful Accounts Performance Obligations: 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 in the future. 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, made as of January 1, 2018, 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 assays 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 guidance, 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. While the Company engages in product quality programs and processes, the Company’s warranty obligation is affected by product failure rates, material usage and service delivery costs incurred in correcting a product failure. While the Company believes that adequate reserve has been made in the consolidated financial statements for product warranties, should actual product failure rates, material usage or service delivery costs differ from the Company’s estimates, revisions to the estimated warranty liability would be required. Warranty expenses are evaluated and adjusted periodically. License Revenues: The Company enters into out-licensing agreements, 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. 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 Note 18, “Revenue Recognition”. Service Agreements: 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 each 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. Allowance for Doubtful Accounts: The Company continuously monitors collections and payments from its customers and maintains allowances for doubtful accounts based upon its historical experience and any specific customer collection issues that have been identified. While such credit losses have historically been within the Company’s expectations, there can be no assurance that the Company will continue to experience the same level of credit losses that it has in the past. A significant change in the liquidity or financial position of any one of the Company’s significant customers, or a deterioration in the economic environment in general, could have a material adverse impact on the collectability of the Company’s accounts receivable and its future operating results, including a reduction in future revenues and additional allowances for doubtful accounts. |
Cost of Sales, Policy [Policy Text Block] | Product-Related Expenses The Company provides for the estimated cost of initial product warranties at the time revenue is recognized. While the Company engages in product quality programs and processes, the Company’s warranty obligation is affected by product failure rates, material usage and service delivery costs incurred in correcting a product failure. Should actual product failure rates, material usage or service delivery costs differ from the Company’s estimates, revisions to the estimated warranty liability would be required. Shipping and handling costs associated with product sales are included in cost of sales. Advertising costs are charged to operations as incurred. The Company does not have any direct-response advertising. Advertising expenses, which include trade shows and conventions, were approximately $2.8 million , $2.4 million and $2.2 million for 2018 , 2017 and 2016 , respectively, and were included in selling, general and administrative expense in the Consolidated Statements of Comprehensive Income. |
Research and Development Expense, Policy [Policy Text Block] | Research and Development Costs Research and development costs are expensed in the period incurred. Nonrefundable advance payments for research and development activities for materials, equipment, facilities and purchased intangible assets that have an alternative future use are deferred and capitalized. In addition, the Company capitalizes certain internally developed products used for evaluation during development projects that also have alternative future uses. These internally developed assets are generally depreciated on a straight-line basis over the useful life of the assets, which range from one to five years. |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | Foreign Currency Translation The financial statements of the Company’s foreign subsidiaries are translated in accordance with ASC 830, “Foreign Currency Matters.” The reporting currency for the Company is the U.S. dollar. With the exception of its Canadian subsidiary, whose functional currency is the U.S. dollar, the functional currency of the Company’s foreign subsidiaries is their local currency. Accordingly, assets and liabilities of these subsidiaries are translated at the exchange rate in effect at each balance sheet date. Before translation, the Company re-measures foreign currency denominated assets and liabilities, including inter-company accounts receivable and payable, into the functional currency of the respective entity, resulting in unrealized gains or losses recorded in selling, general and administrative expenses in the Consolidated Statement of Comprehensive Income. Revenues and expenses are translated using average exchange rates during the respective period. Foreign currency translation adjustments are accumulated as a component of other comprehensive income as a separate component of stockholders’ equity. Gains and losses arising from transactions denominated in foreign currencies are included in selling, general and administrative expenses in the Consolidated Statement of Comprehensive Income and to date have not been material. |
Compensation Related Costs, Policy [Policy Text Block] | Incentive Compensation Management incentive plans are tied to various financial and non-financial performance metrics. Bonus accruals made throughout the year related to the various incentive plans are based on management’s best estimate of the achievement of the specific metrics. Adjustments to the accruals are made on a quarterly basis as forecasts of performance are updated. At year-end, the accruals are adjusted to reflect the actual results achieved. |
Income Tax, Policy [Policy Text Block] | Income Taxes The Company accounts for income taxes under the asset and liability method. Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax balances are adjusted to reflect tax rates based on currently enacted tax laws, which will be in effect in the years in which the temporary differences are expected to reverse. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the results of operations in the period of the enactment date. A valuation allowance is recorded to reduce the carrying amounts of deferred tax assets unless it is more likely than not that those assets will be realized. The Company accounts for uncertain tax positions in accordance with ASC 740, “Income Taxes”, which clarifies the accounting for uncertainty in tax positions. These provisions require recognition of the impact of a tax position in the Company’s financial statements only if that position is more likely than not of being sustained upon examination by taxing authorities, based on the technical merits of the position. Any interest and penalties related to uncertain tax positions will be reflected as a component of income tax expense. |
Earnings Per Share, Policy [Policy Text Block] | Earnings Per Share Basic net income per share is computed by dividing the net income for the period by the weighted average number of common shares outstanding during the period. Diluted net income per share is computed by dividing the net income for the period by the weighted average number of common shares and potential common shares from outstanding stock options, restricted stock units (RSUs) and contingently issuable shares resulting from an award subject to performance or market conditions determined by applying the treasury stock method. In periods with a net loss, potentially dilutive securities composed of incremental common shares issuable upon the exercise of stock options and warrants, and common shares issuable on conversion of preferred stock, would be excluded from historical diluted loss per share because of their anti-dilutive effect. |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | Stock-Based Compensation The Company accounts for stock-based employee compensation plans under the fair value recognition and measurement provisions of ASC 718 “Stock Compensation” (ASC 718). ASC 718 requires the recognition of compensation expense, using a fair-value based method, for costs related to all share-based payments including stock options, restricted stock units and shares issued under the Company’s employee stock purchase plan. Pursuant to ASC 718, stock-based compensation cost is measured at the grant date, based on the fair value of the award, and is recognized as expense over the requisite service period. |
STOCKHOLDERS' EQUITY DIVIDENDS
STOCKHOLDERS' EQUITY DIVIDENDS (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Dividends Declared [Table Text Block] | Dividends I n February 2017, the Board of Directors initiated a cash dividend program under which the Company began paying a regular quarterly cash dividend. On February 21, 2017 , May 24, 2017 , September 12, 2017 and December 7, 2017 the Board of Directors declared cash dividends on the Company’s common stock of $0.06 per share, respectively. The dividend declared in February was payable to stockholders of record as of March 24, 2017 and was paid on April 14, 2017 . The dividend declared in May was payable to stockholders of record as of June 23, 2017 and was paid on July 14, 2017 . The dividend declared in September was payable to stockholders of record as of September 22, 2017 and was paid on October 13, 2017 . The dividend declared in December was payable to stockholders of record as of December 22, 2017 and was paid on January 12, 2018 . On January 24, 2018 , May 18, 2018 , September 11, 2018 and December 11, 2018 the Board of Directors declared cash dividends on the Company’s common stock of $0.06 per share, respectively. The dividend declared in January was payable to stockholders of record as of March 23, 2018 and was paid on April 13, 2018 . The dividend declared in May was payable to stockholders of record as of June 22, 2018 and was paid on July 13, 2018 . The dividend declared in September was payable to stockholders of record as of September 21, 2018 and was paid on October 12, 2018 . The dividend declared in December was payable to stockholders of record as of December 22, 2018 and was paid on January 10, 2019 . The Company’s current intent is to pay a continuing dividend on a quarterly basis. However, future declaration of dividends is subject to the final determination of the Company’s Board of Directors. |
STOCKHOLDERS' EQUITY STOCK (Pol
STOCKHOLDERS' EQUITY STOCK (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Share-based Compensation, Stock Options, Activity [Table Text Block] | Stock Options Shares (in thousands) Weighted Average Exercise Price Weighted Average Remaining Contractual Life (in years) Aggregate Intrinsic Value (in thousands) Outstanding at December 31, 2015 1,692 $ 17.47 Granted 886 19.21 Exercised (178 ) 18.55 Canceled or expired (220 ) 17.83 Outstanding at December 31, 2016 2,180 $ 18.06 Granted 1,406 18.08 Exercised (172 ) 16.50 Canceled or expired (328 ) 18.39 Outstanding at December 31, 2017 3,086 $ 18.10 Granted 771 22.15 Exercised (158 ) 17.84 Canceled or expired (376 ) 18.56 Outstanding at December 31, 2018 3,323 $ 19.05 4.61 $ 13,608 Vested at December 31, 2018 and expected to vest 3,275 $ 19.03 4.59 $ 13,472 Exercisable at December 31, 2018 1,337 $ 18.16 3.69 $ 6,615 |
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity [Table Text Block] | Restricted Stock Awards Shares (in thousands) Weighted Average Grant Price Non-vested at December 31, 2015 836 $ 18.66 Granted 301 19.76 Vested (231 ) 19.75 Cancelled or expired (96 ) 18.78 Non-vested at December 31, 2016 810 $ 18.74 Granted 370 18.22 Vested (354 ) 18.74 Cancelled or expired (112 ) 18.84 Non-vested at December 31, 2017 715 $ 18.46 Granted 387 22.21 Vested (313 ) 18.70 Cancelled or expired (66 ) 19.58 Non-vested at December 31, 2018 724 $ 20.27 Restricted Stock Units Shares (in thousands) Weighted Average Remaining Contractual Life (in years) Aggregate Intrinsic Value (in thousands) Non-vested at December 31, 2015 501 Granted 99 Vested (83 ) Cancelled or expired (61 ) Non-vested at December 31, 2016 457 Granted 104 Vested (122 ) Cancelled or expired (16 ) Non-vested at December 31, 2017 423 Granted 95 Vested (47 ) Cancelled or expired (3 ) Non-vested at December 31, 2018 468 1.10 $ 10,834 Vested at December 31, 2018 and expected to vest 417 1.06 $ 10,678 Exercisable at December 31, 2018 273 0.00 $ 7,373 |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | Preferred Stock The Company’s Board of Directors has the authority to issue up to 5,000,000 shares of preferred stock in one or more series and to fix the rights, preferences, privileges and restrictions thereof, including dividend rights, dividend rates, conversion rights, voting rights, terms of redemption, redemption prices, liquidation preferences and the number of shares constituting any series or the designation of such series, without further vote or action by the Company’s stockholders. At December 31, 2018 and 2017 , there was no preferred stock issued and outstanding. Dividends I n February 2017, the Board of Directors initiated a cash dividend program under which the Company began paying a regular quarterly cash dividend. On February 21, 2017 , May 24, 2017 , September 12, 2017 and December 7, 2017 the Board of Directors declared cash dividends on the Company’s common stock of $0.06 per share, respectively. The dividend declared in February was payable to stockholders of record as of March 24, 2017 and was paid on April 14, 2017 . The dividend declared in May was payable to stockholders of record as of June 23, 2017 and was paid on July 14, 2017 . The dividend declared in September was payable to stockholders of record as of September 22, 2017 and was paid on October 13, 2017 . The dividend declared in December was payable to stockholders of record as of December 22, 2017 and was paid on January 12, 2018 . On January 24, 2018 , May 18, 2018 , September 11, 2018 and December 11, 2018 the Board of Directors declared cash dividends on the Company’s common stock of $0.06 per share, respectively. The dividend declared in January was payable to stockholders of record as of March 23, 2018 and was paid on April 13, 2018 . The dividend declared in May was payable to stockholders of record as of June 22, 2018 and was paid on July 13, 2018 . The dividend declared in September was payable to stockholders of record as of September 21, 2018 and was paid on October 12, 2018 . The dividend declared in December was payable to stockholders of record as of December 22, 2018 and was paid on January 10, 2019 . The Company’s current intent is to pay a continuing dividend on a quarterly basis. However, future declaration of dividends is subject to the final determination of the Company’s Board of Directors. Stock-Based Compensation At December 31, 2018 , the Company has one stock-based employee compensation plan pursuant to which grants may be made: the Luminex Corporation 2018 Equity Incentive Plan (Equity Incentive Plan) which was approved at the Company’s Annual Meeting on May 17, 2018. No further grants shall be made pursuant to the 2000 Long-Term Incentive Plan (2000 Plan), the 2001 Broad-Based Stock Option Plan (2001 Plan) or the 2006 Equity Incentive Plan (2006 Plan). In addition, at December 31, 2018 , the Company has one plan pursuant to which discount purchases may be made by the participants in such plan: the Luminex Corporation Employee Stock Purchase Plan (ESPP), which was approved at the Company’s Annual Meeting on May 17, 2012 and amended at the Company’s Annual Meeting on May 18, 2017. Equity Incentive Plans Under the Company’s Equity Incentive Plan, the 2006 Plan, certain employees, consultants and non-employee directors have been granted RSAs, restricted share units (RSUs) and options to purchase shares of common stock. The options, RSAs, and RSUs generally vest in installments over a three to five year period, and the options expire either seven or ten years after the date of grant. Under the Equity Incentive Plan, certain employees of, directors of, and consultants to the Company are eligible to be granted RSAs, RSUs, and options to purchase common stock. The ESPP provides for the granting of rights to certain employees of the Company to defer an elected percentage, up to 15% , of their base salary through the purchase of the Company’s common stock, discounted by 15% . As of December 31, 2018 , there were approximately 4.8 million shares authorized for future issuance under the Company’s Equity Incentive Plan and approximately 324,000 shares eligible for purchase pursuant to the terms and conditions of the ESPP as more fully described below. The Equity Incentive Plan, the 2006 Plan and the ESPP are administered by the Compensation Committee of the Board of Directors. The Compensation Committee has the authority to determine the terms and conditions under which awards will be granted from the Equity Incentive Plan, including the number of shares, vesting schedule and term, as applicable. Any option exercise prices, as set forth in the Equity Incentive Plan, will be equal to the fair market value on the date of grant. Under certain circumstances, the Company may repurchase previously granted RSAs and RSUs. On each of March 10, 2017 and February 21, 2018, the Compensation Committee approved an award of stock options (the Performance Options) to the Company’s named executive officers and certain other executives that vest over four years based on achievement of certain operating profit and revenue targets in 2017 and 2018, respectively. The Performance Options have an exercise price equal to the closing market price for the Company’s common stock on the Nasdaq Global Select Market on the date of grant (March 10, 2017 and March 12, 2018, respectively) and expire seven years from the date of grant. The Performance Options were measured over a performance period ending on December 31, 2017 and December 31, 2018, respectively. Following the end of the applicable fiscal year, the Committee determined the number of Performance Options which were eligible to vest based upon the level of achievement of an established Company performance goal (the Company Financial Goal). If the Company failed to meet the threshold performance for the performance period, no Performance Options would be eligible to vest. Minimum vesting for minimum threshold performance started at 30% of the target value for the Company Financial Goal. If the Company’s performance exceeded the target performance, the recipient may have received additional Performance Options above the target number, subject to a maximum of 200% of the target award. The Company’s financial performance resulted in delivery of 148% and 115% of the number of target Performance Options granted for 2017 and 2018 , respectively. The Performance Options that are eligible to vest after the determination date will vest 25% on each of the first four anniversaries of the grant date. In the event of a change of control of the Company before the end of the performance period, the Performance Options will automatically vest based on the greater of actual achievement of the pro-rated Company Financial Goal as of the date of the change of control or 100% of target performance, as determined by the Committee in its sole discretion. The Performance Options are exercisable into shares of the Company’s common stock. Accounting for Stock Compensation Stock-based compensation costs are generally based on the fair value calculated from the Black-Scholes option-pricing model on the date of grant for stock options, performance options and market value on the date of grant for RSAs. The fair values of stock and stock options are amortized as compensation expense on a straight-line basis over the vesting period of the grants. In accordance with ASC 718, the Company evaluates the assumptions used in the Black-Scholes model at each grant date using a consistent methodology for computing expected volatility, expected term and risk-free rate of return. Calculation of expected volatility is based on historical volatility. The expected life is calculated using the contractual term of the options as well as an analysis of the Company’s historical exercises of stock options and performance options. The estimate of the risk-free rate is based on the U.S. Treasury yield curve in effect at the time of grant. The dividend yield is based on our history and expectation of dividend payouts at the time of grant. The assumptions used are summarized in the following table: 2018 2017 2016 Dividend yield 1.2 % 1.3 % — % Expected volatility 0.4 0.5 0.5 Risk-free rate of return 2.7 % 2.0 % 1.4 % Expected life of a 10 year contractual term option 7 years 7 years 7 years Expected life of a 7 year contractual term option 4.88 years 4.87 years 4.87 years Weighted average fair value at grant date $ 8.23 $ 6.66 $ 7.86 As part of the requirements of ASC 718, the Company is required to estimate potential forfeitures of stock grants and adjust compensation cost recorded accordingly. The estimate of forfeitures is based on historical forfeiture performance and will be adjusted over the requisite service period to the extent that actual forfeitures differ, or are expected to differ, from such estimates. Changes in estimated forfeitures will be recognized through a cumulative catch-up adjustment in the period of evaluation and will also impact the amount of stock compensation expense to be recognized in future periods. The Company’s stock option activity for the years ended December 31, 2016 , 2017 and 2018 is as follows: Stock Options Shares (in thousands) Weighted Average Exercise Price Weighted Average Remaining Contractual Life (in years) Aggregate Intrinsic Value (in thousands) Outstanding at December 31, 2015 1,692 $ 17.47 Granted 886 19.21 Exercised (178 ) 18.55 Canceled or expired (220 ) 17.83 Outstanding at December 31, 2016 2,180 $ 18.06 Granted 1,406 18.08 Exercised (172 ) 16.50 Canceled or expired (328 ) 18.39 Outstanding at December 31, 2017 3,086 $ 18.10 Granted 771 22.15 Exercised (158 ) 17.84 Canceled or expired (376 ) 18.56 Outstanding at December 31, 2018 3,323 $ 19.05 4.61 $ 13,608 Vested at December 31, 2018 and expected to vest 3,275 $ 19.03 4.59 $ 13,472 Exercisable at December 31, 2018 1,337 $ 18.16 3.69 $ 6,615 During the years ended December 31, 2018 , 2017 and 2016 , the total exercise intrinsic value of stock options exercised was $1.3 million , $0.7 million and $0.6 million , respectively, and the total fair value of stock options that vested was $12.7 million , $12.7 million and $1.6 million , respectively. Exercise intrinsic value represents the difference between the market value of the Company’s common stock at the time of exercise and the price paid by the employee to exercise the options. The Company had $8.7 million of total unrecognized compensation costs related to stock options at December 31, 2018 that are expected to be recognized over a weighted-average period of 2.23 years . The Company’s restricted share activity for the years ended December 31, 2016 , 2017 and 2018 is as follows: Restricted Stock Awards Shares (in thousands) Weighted Average Grant Price Non-vested at December 31, 2015 836 $ 18.66 Granted 301 19.76 Vested (231 ) 19.75 Cancelled or expired (96 ) 18.78 Non-vested at December 31, 2016 810 $ 18.74 Granted 370 18.22 Vested (354 ) 18.74 Cancelled or expired (112 ) 18.84 Non-vested at December 31, 2017 715 $ 18.46 Granted 387 22.21 Vested (313 ) 18.70 Cancelled or expired (66 ) 19.58 Non-vested at December 31, 2018 724 $ 20.27 Restricted Stock Units Shares (in thousands) Weighted Average Remaining Contractual Life (in years) Aggregate Intrinsic Value (in thousands) Non-vested at December 31, 2015 501 Granted 99 Vested (83 ) Cancelled or expired (61 ) Non-vested at December 31, 2016 457 Granted 104 Vested (122 ) Cancelled or expired (16 ) Non-vested at December 31, 2017 423 Granted 95 Vested (47 ) Cancelled or expired (3 ) Non-vested at December 31, 2018 468 1.10 $ 10,834 Vested at December 31, 2018 and expected to vest 417 1.06 $ 10,678 Exercisable at December 31, 2018 273 0.00 $ 7,373 As of December 31, 2018 , there was $14.5 million of unrecognized compensation cost related to RSAs and RSUs. That cost is expected to be recognized over a weighted average-period of 2.24 years . The total fair value of restricted shares vested during the year ended December 31, 2018 , 2017 and 2016 was $6.7 million , $8.8 million and $7.0 million , respectively. RSAs and RSUs may be granted at the discretion of the Compensation Committee of the Board of Directors under the Equity Incentive Plan and the 2006 Plan in connection with the hiring or retention of key employees and are subject to certain conditions. Restrictions expire at certain dates after the grant date in accordance with specific provisions in the applicable agreement. During the year ended December 31, 2018 , the Company awarded 387,436 shares of RSAs, which had a fair value at the date of grant ranging from $20.33 – $29.33 . During the year ended December 31, 2017 , the Company awarded 369,715 shares of RSAs, which had a fair value at the date of grant ranging from $18.04 – $20.80 . During the year ended December 31, 2016 , the Company awarded 301,419 shares of RSAs, which had a fair value at the date of grant ranging from $19.48 – $22.59 . During the year ended December 31, 2018 , the Company awarded 95,127 shares of RSUs and dividend equivalents, which had a fair value at the date of grant ranging from $21.98 – $26.39 . During the year ended December 31, 2017 , the Company awarded 104,237 shares of RSUs and dividend equivalents, which had a fair value at the date of grant ranging from $18.04 – $20.80 . During the year ended December 31, 2016 , the Company awarded 99,144 shares of RSUs, which had a fair value at the date of grant ranging from $19.48 – $20.62 . Compensation under these RSAs and RSUs was charged to expense over the restriction period and amounted to $6.2 million , $7.2 million , and $7.9 million in 2018 , 2017 and 2016 , respectively. There were no significant stock compensation costs capitalized into assets as of December 31, 2018 , 2017 or 2016 . The Company received $2.8 million , $2.8 million and $3.3 million for the exercise of stock options during the years ended December 31, 2018 , 2017 and 2016 , respectively. Cash was not used to settle any equity instruments previously granted. The Company issued shares pursuant to grants relating to each of the Equity Incentive Plan, the 2006 Plan and 2000 Plan from reserves upon the exercise of stock options and vesting of RSAs. The following are the stock-based compensation costs recognized in the Company’s consolidated statements of comprehensive income (in thousands): Year Ended December 31, 2018 2017 2016 Cost of revenue $ 1,715 $ 1,561 $ 1,247 Research and development 1,409 2,039 2,658 Selling, general and administrative 9,102 8,878 7,916 Stock-based compensation costs reflected in net income $ 12,226 $ 12,478 $ 11,821 Employee Stock Purchase Plan In May 2012, the Company’s stockholders approved the ESPP, which provides for the purchase of up to 500,000 shares of the Company’s common stock by eligible employees. In May 2017, the Company’s stockholders approved an amendment to the ESPP Plan, which increased the shares available under the ESPP by 341,744 shares. The ESPP period is semi-annual and allows participants to purchase the Company’s common stock at 85% of the lesser of (i) the closing market value per share of the common stock on the first trading date of the option period or (ii) the closing market value per share of the common stock on the last trading date of the option period. As of December 31, 2018 , 2017 and 2016 , 518,111 shares, 434,400 shares and 341,844 shares, respectively had been issued out of the ESPP. The related stock-based compensation expense was $0.6 million , $0.5 million and $0.4 million for 2018 , 2017 and 2016 , respectively. The Company uses the Black-Scholes model to estimate the fair value of shares to be issued under the ESPP as of the grant date using the following weighted average assumptions: 2018 2017 2016 Assumptions: Risk-free interest rates 2.1 % 1.07 % 0.04% to 0.05% Expected life 0.5 years 0.5 years 0.4 to 0.5 years Expected volatility .44 .45 .47 Dividend yield 1.2 % 1.3 % — % Reserved Shares of Common Stock At December 31, 2018 and 2017 , the Company had reserved 8,925,957 and 6,270,286 shares of common stock, respectively, for the issuance of common stock upon the exercise of options, issuance of RSAs, RSUs, purchase of common stock pursuant to the ESPP or other awards issued pursuant to the Company’s equity plans and arrangements. The following table summarizes the reserved shares by plan as of December 31, 2018 : Options and RSUs Outstanding Shares Available for Future Issuance Total Shares Reserved Equity Incentive Plan 3,791,819 4,810,505 8,602,324 ESPP — 323,633 323,633 3,791,819 5,134,138 8,925,957 Employee Savings Plans and Other Benefit Plans Effective January 1, 2001, the Company began sponsoring a retirement plan authorized by section 401(k) of the Internal Revenue Code for the Company’s employees in the United States. In accordance with the 401(k) plan, all employees are eligible to participate in the plan on the first day of the month following the commencement of full time employment. For 2018 , 2017 and 2016 , each employee could contribute a percentage of compensation up to a maximum of $18,500 per year, with the Company matching 50% of each employee’s contributions. Effective January 1, 2010, the Company began contributing to a deferred profit sharing plan for its Canadian employees. All Canadian employees are eligible to participate in the plan. The Company’s contributions to these plans for 2018 , 2017 and 2016 were $4.0 million , $3.8 million and $3.2 million , respectively. Several of the Company’s Netherlands employees are covered by a defined benefit plan. The cost and total liability to the Company is not material. Effective January 1, 2011, all of the Company’s new hires in the Netherlands are eligible to participate in a defined contribution plan. |
BUSINESS COMBINATIONS (Policies
BUSINESS COMBINATIONS (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Business Combination Disclosure [Text Block] | NOTE 2 — BUSINESS COMBINATIONS On December 31, 2018 , the Company completed its acquisition (the Acquisition) of EMD Millipore Corporation’s flow cytometry portfolio for $75 million , consisting of approximately $69.9 million paid under a Share and Asset Purchase Agreement (the Purchase Agreement) and approximately $5.1 million in committed inventory purchases, both of which are subject to adjustment. The Company financed the acquisition with cash on hand. Luminex acquired 100% of the shares and equity of Amnis Corporation, a Washington Corporation (“Amnis”), a wholly owned subsidiary of EMD Millipore Corporation, a Massachusetts corporation (itself an affiliate of Merck KgaA), and certain other assets owned by other affiliates of Merck KgaA (“MilliporeSigma”). The Acquisition expands Luminex’s existing offering of flow-based detection systems, which is centered around its innovative xMAP ® multiplexing technology, with more than 15,000 xMAP systems sold worldwide. MilliporeSigma’s flow cytometry portfolio includes Amnis, a family of imaging flow cytometry products for cell-based analysis, as well as their Guava and Muse portfolio of products, which are economical systems based on microcapillary technologies. The purchase price was in excess of the fair value of the net assets acquired and, as a result, the Company recorded goodwill. A portion of the goodwill is deductible for tax purposes. The Company recorded approximately $2.7 million of acquisition-related costs during fiscal 2018. The impact of the Acquisition on our liquidity is more fully described under “Liquidity and Capital Resources.” The following table summarizes the preliminary estimated fair values of assets acquired and liabilities assumed in connection with the Acquisition at December 31, 2018 (in thousands): Net tangible assets assumed as of December 31, 2018 $ 8,181 Intangible assets subject to amortization 33,500 Deferred tax liabilities (4,433 ) Goodwill 32,646 Total purchase price $ 69,894 The Company is in the process of obtaining third-party valuations of certain intangible assets, performing a reconciliation of the assets and liabilities purchased with EMD Millipore Corporation and finalizing the calculations of the deferred tax assets and liabilities related to the Acquisition; thus the provisional measurement of net tangible assets assumed, intangible assets, deferred tax assets and liabilities and goodwill are subject to change. If information that existed prior to December 31, 2018 becomes available which would indicate adjustments are required to the purchase price allocation, such adjustments will be included in the purchase price allocations retrospectively through revisions to the net tangible assets assumed, fair values of the intangible assets, deferred tax assets and liabilities and resulting goodwill recorded. Unaudited Pro forma Financial Information The fourth quarter 2018 results of operations of business acquired in connection with the Acquisition are not included in our consolidated statements of comprehensive income for the three and twelve months ended December 31, 2018 as the Acquisition closed on December 31, 2018, but the financial position of the Acquisition is included in our consolidated balance sheet as of December 31, 2018. The unaudited pro forma financial information set forth below assumes that the Acquisition had been completed at the beginning of 2017 and includes the effect of estimated amortization of acquired identifiable intangible assets, removal of Acquisition costs and the impact of preliminary estimated purchase accounting adjustments, tax and inventory valuation adjustments. This unaudited pro forma financial information is presented for informational purposes only and is not necessarily indicative of the results of operations that actually would have resulted had the Acquisition been completed at the beginning of the periods presented. In addition, the unaudited pro forma financial information is not intended to be a projection of future results and does not reflect any operating efficiencies or cost savings that might be achievable. Three Months Ended Twelve Months Ended December 31, December 31, 2018 2017 2018 2017 (unaudited) (in thousands) (unaudited) (in thousands) Revenue $ 92,155 $ 91,705 $ 355,042 $ 358,885 Income from operations 1,116 9,823 26,121 36,606 Net income (loss) (2,200 ) (2,533 ) 17,359 29,077 Earnings per share: Basic (0.05 ) (0.06 ) 0.39 0.66 Diluted (0.05 ) (0.06 ) 0.38 0.66 |
ACCOUNTS RECEIVABLE (Policies)
ACCOUNTS RECEIVABLE (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
Trade and Other Accounts Receivable, Policy [Policy Text Block] | NOTE 4 — ACCOUNTS RECEIVABLE AND RESERVES The Company records an allowance for doubtful accounts based upon a specific review of all outstanding invoices, known collection issues and historical experience. The Company regularly evaluates the collectability of its trade accounts receivables and performs ongoing credit evaluations of its customers and adjusts credit limits based upon payment history and its assessment of the customer’s current creditworthiness. These estimates are based on specific facts and circumstances of particular orders, analysis of credit memo data and other known factors. Accounts receivable consisted of the following at December 31 (in thousands): 2018 2017 Accounts receivable $ 54,239 $ 41,993 Less: Allowance for doubtful accounts (843 ) (1,345 ) $ 53,396 $ 40,648 The following table summarizes the changes in the allowance for doubtful accounts (in thousands): Balance at December 31, 2015 $ 204 Net increases charged to costs and expenses 320 Write-offs of uncollectible accounts (105 ) Balance at December 31, 2016 $ 419 Net increases charged to costs and expenses 1,312 Write-offs of uncollectible accounts (386 ) Balance at December 31, 2017 1,345 Net recoveries charged to costs and expenses (437 ) Write-offs of uncollectible accounts (65 ) Balance at December 31, 2018 843 |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | The Company records an allowance for doubtful accounts based upon a specific review of all outstanding invoices, known collection issues and historical experience. The Company regularly evaluates the collectability of its trade accounts receivables and performs ongoing credit evaluations of its customers and adjusts credit limits based upon payment history and its assessment of the customer’s current creditworthiness. These estimates are based on specific facts and circumstances of particular orders, analysis of credit memo data and other known factors. Accounts receivable consisted of the following at December 31 (in thousands): 2018 2017 Accounts receivable $ 54,239 $ 41,993 Less: Allowance for doubtful accounts (843 ) (1,345 ) $ 53,396 $ 40,648 |
Allowance for Credit Losses [Text Block] | The following table summarizes the changes in the allowance for doubtful accounts (in thousands): Balance at December 31, 2015 $ 204 Net increases charged to costs and expenses 320 Write-offs of uncollectible accounts (105 ) Balance at December 31, 2016 $ 419 Net increases charged to costs and expenses 1,312 Write-offs of uncollectible accounts (386 ) Balance at December 31, 2017 1,345 Net recoveries charged to costs and expenses (437 ) Write-offs of uncollectible accounts (65 ) Balance at December 31, 2018 843 |
QUARTERLY FINANCIAL RESULTS QUA
QUARTERLY FINANCIAL RESULTS QUARTERLY FINANCIAL RESULTS (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Income Statement [Abstract] | |
Quarterly Financial Information [Table Text Block] | Quarter Ended March 31, June 30, September 30, December 31, Revenue $ 82,662 $ 79,578 $ 72,445 $ 81,133 Gross profit 53,588 49,306 44,256 48,341 Income (loss) from operations 15,266 7,858 3,754 968 Net income (loss) 13,397 5,669 1,737 (2,295 ) Basic income (loss) per common share 0.30 0.13 0.04 (0.05 ) Diluted income (loss) per common share 0.30 0.13 0.04 (0.05 ) Cash dividends per common share 0.06 0.06 0.06 0.06 Quarter Ended March 31, June 30, September 30, December 31, Revenue $ 77,779 $ 76,457 $ 74,136 $ 78,199 Gross profit 52,786 50,061 45,819 50,380 Income from operations 14,012 7,482 6,529 9,130 Net income (1) 9,231 5,544 17,613 (2,965 ) Basic income per common share 0.21 0.13 0.40 (0.07 ) Diluted income per common share 0.21 0.13 0.40 (0.07 ) Cash dividends per common share 0.06 0.06 0.06 0.06 |
INVESTMENTS (Tables)
INVESTMENTS (Tables) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Cash and Cash Equivalents [Abstract] | ||
Marketable Securities, Policy [Policy Text Block] | Marketable Securities The Company determines the appropriate classification of any investments in debt and equity securities at the time of purchase and re-evaluates such determinations at each balance sheet date. As of December 31, 2018 , the Company had no short or long-term investments, since those funds were used to pay for | |
Schedule of Available-for-sale Securities Reconciliation [Table Text Block] | Available-for-sale securities consisted of the following as of December 31, 2018 (in thousands): Amortized Cost Gains in Accumulated Other Comprehensive Income Losses in Accumulated Other Comprehensive Income Estimated Fair Value Current: Money Market funds $ 704 $ — $ — $ 704 Total current securities 704 — — 704 Noncurrent: Total noncurrent securities — — — — Total available-for-sale securities $ 704 $ — $ — $ 704 | |
Available-for-sale Securities [Table Text Block] | Available-for-sale securities consisted of the following as of December 31, 2018 (in thousands): Amortized Cost Gains in Accumulated Other Comprehensive Income Losses in Accumulated Other Comprehensive Income Estimated Fair Value Current: Money Market funds $ 704 $ — $ — $ 704 Total current securities 704 — — 704 Noncurrent: Total noncurrent securities — — — — Total available-for-sale securities $ 704 $ — $ — $ 704 Available-for-sale securities consisted of the following as of December 31, 2017 (in thousands): Amortized Cost Gains in Accumulated Other Comprehensive Income Losses in Accumulated Other Comprehensive Income Estimated Fair Value Current: Money Market funds $ 701 $ — $ — $ 701 Total current securities 701 — — 701 Noncurrent: Total noncurrent securities — — — — Total available-for-sale securities $ 701 $ — $ — $ 701 There were no proceeds from the sales of available-for-sale securities for the years ended December 31, 2018 and December 31, 2017 . Realized gains and losses on sales of investments are determined using the specific identification method and are included in other income (expense) in the Consolidated Statement of Comprehensive Income. There were no available-for-sale debt securities as of December 31, 2018 or December 31, 2017 . All of the Company’s available-for-sale securities with gross unrealized losses as of December 31, 2018 had been in a loss position for less than 12 months. | |
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities and Held-to-maturity Securities | $ 704 | $ 701 |
Available-for-sale Securities, Amortized Cost Basis | 704 | 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 |
Money Market Funds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities and Held-to-maturity Securities | 704 | 701 |
Available-for-sale Securities, Amortized Cost Basis | 704 | 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 | 704 | 701 |
Available-for-sale Securities, Amortized Cost Basis | 704 | 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 AND OTHER ASSETS OT
INVESTMENTS AND OTHER ASSETS OTHER ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Other Assets [Abstract] | |
Investments and Other Noncurrent Assets [Text Block] | Non-Marketable Securities and Other-Than-Temporary Impairment During the year ended December 31, 2018, the Company made a $1.8 million investment in a private company. Based in the U.S., 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 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. During the year ended December 31, 2017, the Company also entered into a $1.4 million promissory note with this same private company. The Company loaned an additional $1.0 million to the private company in the year ended December 31, 2018, resulting in a notes receivable balance of $2.4 million as of June 30, 2018, payable at the annual interest rate of 1.95% with a maturity date of 5 years from the date of issuance. In August 2018, the Company exercised its purchase option of the private company and acquired 100% of its capital stock in a non-cash transaction involving (i) the prior investment of $2.0 million being applied to the purchase option, (ii) the forgiveness and application of the $2.4 million note and related interest receivable to the purchase option and (iii) a tax impact of $0.1 million . This acquisition has been accounted for as an asset acquisition rather than a business combination, as substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset, a next generation technology. The Company has recorded the $4.3 million asset acquisition as a defensive, in-process research and development (IP R&D) intangible asset. There were no gains or losses recognized as part of this transaction. The Company owns a minority interest in another private company based in the U.S. through its investment of $1.0 million in the third quarter of 2012. This minority interest is included at cost in other long-term assets on the Company’s Consolidated Balance Sheets as the Company does not have significant influence over the investee, as the Company owns less than 20% of the voting equity and the investee is not publicly traded. |
Schedule of Other Assets, Noncurrent [Table Text Block] | Other long-term assets consisted of the following at December 31 (in thousands): 2018 2017 Purchased technology rights (net of accumulated amortization of $7,633 and $7,012 in 2018 and 2017, respectively) $ 6,653 $ 3,149 Minority interest investments 2,782 3,000 Notes receivable (1) — 1,400 Other 1,963 1,050 $ 11,398 $ 8,599 |
Estimated Future Amortization Expense Related to Intangible Assets | For the years ended December 31, 2018 and 2017 , the Company recognized amortization expense related to the amortization of purchased technology rights of approximately $621,000 and $559,000 , respectively. Future amortization expense is estimated to be $647,000 in 2019 , $547,000 in 2020 , $515,000 in 2021 , $497,000 in 2022 , $481,000 in 2023 and $3,965,000 thereafter. The estimated aggregate amortization expense for the next five fiscal years and thereafter is as follows (in thousands): 2019 $ 11,345 2020 11,345 2021 10,987 2022 9,740 2022 9,391 Thereafter 28,327 $ 81,135 IP R&D 24,013 $ 105,148 |
FAIR VALUE MEASUREMENTS TABLES
FAIR VALUE MEASUREMENTS TABLES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Assets Measured on Recurring Basis [Table Text Block] | Fair Value Measurements as of December 31, 2018 Using Level 1 Level 2 Level 3 Total Assets: Money Market funds $ 704 $ — $ — $ 704 Minority Interest Investments $ — $ — $ 2,782 $ 2,782 |
INCOME TAXES TABLES (Tables)
INCOME TAXES TABLES (Tables) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block] | 2018 2017 2016 Domestic $ 7,242 $ 18,436 $ 2,281 Foreign 21,069 18,713 17,334 Total $ 28,311 $ 37,149 $ 19,615 The components of the (benefit) provision for income taxes attributable to continuing operations for the years ended December 31 are as follows (in thousands): 2018 2017 2016 Current: Federal $ (3,318 ) $ 3,149 $ 1,545 Foreign 515 295 204 State 600 883 449 Total current $ (2,203 ) $ 4,327 $ 2,198 Deferred: Federal 6,351 14,970 (215 ) Foreign 5,271 (9,267 ) 3,813 State 384 (2,304 ) 5 Total deferred 12,006 3,399 3,603 Total provision for income taxes $ 9,803 $ 7,726 $ 5,801 | ||
Current Income Tax Expense (Benefit) | $ (2,203) | $ 4,327 | $ 2,198 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | Year Ended December 31, 2018 2017 2016 Statutory tax rate 21.0 % 35.0 % 35.0 % State taxes, net of federal benefit 3.0 % (1.4 )% 1.5 % Permanent items 2.6 % 0.5 % 9.5 % Effect of foreign operations 3.4 % (5.7 )% (9.0 )% Research and incentive tax credit generated (8.7 )% (4.6 )% (14.3 )% Valuation allowance 0.4 % (37.6 )% 5.5 % Income tax reserves 24.7 % 0.5 % 1.3 % Remeasurement U.S. deferreds (0.3 )% 7.3 % 0.0 % Transition tax (16.6 )% 18.1 % 0.0 % Foreign earnings withholding tax (7.9 )% 8.6 % 0.0 % Global intangible low-taxed income 5.7 % 0.0 % 0.0 % Other measurement period Tax Act adjustments 2.6 % 0.0 % 0.0 % Canadian income tax audit 4.8 % 0.0 % 0.0 % Other (0.1 )% 0.1 % 0.1 % 34.6 % 20.8 % 29.6 % | ||
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | 2018 2017 Deferred tax assets: Accrued liabilities and other $ 5,646 $ 6,444 Net operating loss and credit carryforwards 54,167 67,299 Deferred revenue — 1,541 Depreciation and amortization — 4,071 Stock compensation and other 6,525 5,429 Gross deferred tax assets 66,338 84,784 Valuation allowance (21,354 ) (21,943 ) Total deferred tax assets $ 44,984 $ 62,841 Deferred tax liabilities: Accrued liabilities and other $ (2,204 ) $ (4,207 ) Deferred revenue (358 ) — Depreciation and amortization (20,952 ) (20,155 ) Acquired intangibles — (927 ) Total deferred tax liabilities (23,514 ) (25,289 ) Net deferred tax assets $ 21,470 $ 37,552 | ||
Summary of Deferred Tax Liability Not Recognized [Table Text Block] | 2018 2017 Balance at beginning of year $ 2,777 $ 2,677 Additions based on tax positions related to the current year 749 355 Additions for tax positions of prior years 6,605 — Reductions for tax positions of prior years (410 ) (103 ) Lapse of statute of limitations — (152 ) Balance at end of year $ 9,721 $ 2,777 |
STOCKHOLDERS' EQUITY TABLES (Ta
STOCKHOLDERS' EQUITY TABLES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
TABLES [Abstract] | |
Employee Stock Ownership Plan (ESOP) Disclosures [Table Text Block] | Options and RSUs Outstanding Shares Available for Future Issuance Total Shares Reserved Equity Incentive Plan 3,791,819 4,810,505 8,602,324 ESPP — 323,633 323,633 3,791,819 5,134,138 8,925,957 |
Share-based Compensation, Activity [Table Text Block] | Year Ended December 31, 2018 2017 2016 Cost of revenue $ 1,715 $ 1,561 $ 1,247 Research and development 1,409 2,039 2,658 Selling, general and administrative 9,102 8,878 7,916 Stock-based compensation costs reflected in net income $ 12,226 $ 12,478 $ 11,821 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | 2018 2017 2016 Dividend yield 1.2 % 1.3 % — % Expected volatility 0.4 0.5 0.5 Risk-free rate of return 2.7 % 2.0 % 1.4 % Expected life of a 10 year contractual term option 7 years 7 years 7 years Expected life of a 7 year contractual term option 4.88 years 4.87 years 4.87 years Weighted average fair value at grant date $ 8.23 $ 6.66 $ 7.86 |
BUSINESS COMBINATIONS (Tables)
BUSINESS COMBINATIONS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Business Acquisition [Line Items] | |
Business Acquisition, Pro Forma Information [Table Text Block] | Net tangible assets assumed as of December 31, 2018 $ 8,181 Intangible assets subject to amortization 33,500 Deferred tax liabilities (4,433 ) Goodwill 32,646 Total purchase price $ 69,894 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment [Table Text Block] | 2018 2017 Laboratory equipment $ 58,330 $ 52,498 Leasehold improvements 39,289 37,155 Computer equipment 3,322 3,174 Purchased software 22,141 22,056 Furniture and fixtures 5,874 5,842 Assets on loan/rental 24,259 15,741 Capital lease equipment 846 962 154,061 137,428 Less: Accumulated depreciation (87,773 ) (79,170 ) $ 66,288 $ 58,258 |
Investments - Cost Method - Add
Investments - Cost Method - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Schedule of Cost-method Investments [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | $ 704 | $ 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 |
Available-for-sale Securities and Held-to-maturity Securities | 704 | 701 |
Chandlertech [Member] | ||
Schedule of Cost-method Investments [Line Items] | ||
Payments to Noncontrolling Interests | 1,000 | |
Genometry [Member] | ||
Schedule of Cost-method Investments [Line Items] | ||
Payments to Noncontrolling Interests | 1,000 | |
Total Current Available-for-Sale Securities [Domain] | ||
Schedule of Cost-method Investments [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | 704 | 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 |
Available-for-sale Securities and Held-to-maturity Securities | 704 | 701 |
Total Non-Current Available-for-Sale Securities [Domain] | ||
Schedule of Cost-method Investments [Line Items] | ||
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 |
Available-for-sale Securities and Held-to-maturity Securities | 0 | 0 |
Money Market Funds [Member] | ||
Schedule of Cost-method Investments [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | 704 | 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 |
Available-for-sale Securities and Held-to-maturity Securities | $ 704 | $ 701 |
INVESTMENTS AND OTHER ASSETS _2
INVESTMENTS AND OTHER ASSETS Other Assets (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Other Intangible Assets, Net | $ 6,653,000 | $ 3,149,000 |
Cost Method Investments, Original Cost | 2,782,000 | 3,000,000 |
Loans Receivable with Fixed Rates of Interest | 0 | 1,400,000 |
Other Assets, Miscellaneous, Noncurrent | 1,963,000 | 1,050,000 |
Other Assets, Noncurrent | 11,398,000 | 8,599,000 |
Technology-Based Intangible Assets [Member] | ||
Amortization | 621,000 | $ 559,000 |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | 647,000 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 547,000 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 515,000 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 497,000 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 481,000 | |
Finite-Lived Intangible Assets, Amortization Expense, after Year Five | $ 3,965,000 |
INVENTORIES INVENTORIES (Detail
INVENTORIES INVENTORIES (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Inventory Disclosure [Abstract] | ||
Purchase Commitment, Remaining Minimum Amount Committed | $ 39,600 | |
Inventory, Raw Materials, Net of Reserves | 39,873 | $ 29,266 |
Inventory, Work in Process, Net of Reserves | 11,847 | 8,712 |
Inventory, Finished Goods, Net of Reserves | 11,530 | 11,500 |
Inventory, Net | $ 63,250 | $ 49,478 |
FAIR VALUE MEASUREMENTS FAIR VA
FAIR VALUE MEASUREMENTS FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Cash and Cash Equivalents, Fair Value Disclosure | $ 704 | $ 701 |
Investments, Fair Value Disclosure | 2,782 | 3,000 |
Fair Value, Inputs, Level 1 [Member] | ||
Cash and Cash Equivalents, Fair Value Disclosure | 704 | 701 |
Investments, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | ||
Cash and Cash Equivalents, Fair Value Disclosure | 0 | 0 |
Investments, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | ||
Cash and Cash Equivalents, Fair Value Disclosure | 0 | 0 |
Investments, Fair Value Disclosure | $ 2,782 | $ 3,000 |
GOODWILL GOODWILL (Details)
GOODWILL GOODWILL (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Goodwill | $ 118,127 | $ 85,481 | $ 85,481 |
Goodwill, Acquired During Period | $ 32,646 | $ 0 |
Intangible Assets - Additional
Intangible Assets - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Intangible Assets, Gross (Excluding Goodwill) | $ 156,956,000 | $ 156,956,000 | $ 119,128,000 | $ 119,128,000 | |
Indefinite-lived Intangible Assets Acquired | 33,500,000 | ||||
Finite-Lived Intangible Assets, Accumulated Amortization | (51,808,000) | (51,808,000) | (43,143,000) | (34,287,000) | |
Intangible Assets, Net (Excluding Goodwill) | 105,148,000 | 105,148,000 | 75,985,000 | ||
Amortization of Intangible Assets | (8,665,000) | (8,854,000) | (8,218,000) | ||
Finite-Lived Intangible Assets, Gross | 81,135,000 | 81,135,000 | |||
Other Finite-Lived Intangible Assets, Gross | 24,013,000 | 24,013,000 | |||
Finite-Lived Intangible Assets, Net | 105,148,000 | 105,148,000 | 75,985,000 | ||
Technology-Based Intangible Assets [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | 647,000 | 647,000 | |||
Intangible Assets, Gross (Excluding Goodwill) | 98,469,000 | 98,469,000 | 81,385,000 | 81,385,000 | |
Finite-lived Intangible Assets Acquired | 17,084,000 | ||||
Finite-Lived Intangible Assets, Accumulated Amortization | (40,501,000) | (40,501,000) | (34,414,000) | (28,137,000) | |
Intangible Assets, Net (Excluding Goodwill) | 57,968,000 | $ 57,968,000 | $ 46,971,000 | ||
Finite-Lived Intangible Asset, Useful Life | 11 years | 11 years | |||
Amortization of Intangible Assets | $ (6,087,000) | $ (6,277,000) | |||
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 547,000 | 547,000 | |||
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 515,000 | 515,000 | |||
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 497,000 | 497,000 | |||
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 481,000 | 481,000 | |||
Finite-Lived Intangible Assets, Amortization Expense, after Year Five | 3,965,000 | 3,965,000 | |||
Customer-Related Intangible Assets [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Intangible Assets, Gross (Excluding Goodwill) | 23,819,000 | 23,819,000 | 19,097,000 | 19,097,000 | |
Finite-lived Intangible Assets Acquired | 4,722,000 | ||||
Finite-Lived Intangible Assets, Accumulated Amortization | (9,036,000) | (9,036,000) | (7,037,000) | (5,038,000) | |
Intangible Assets, Net (Excluding Goodwill) | 14,783,000 | $ 14,783,000 | $ 12,060,000 | ||
Finite-Lived Intangible Asset, Useful Life | 10 years | 10 years | |||
Amortization of Intangible Assets | $ (1,999,000) | $ (1,999,000) | |||
Other Intangible Assets [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Intangible Assets, Gross (Excluding Goodwill) | 10,655,000 | 10,655,000 | 5,664,000 | 5,664,000 | |
Finite-lived Intangible Assets Acquired | 4,991,000 | ||||
Finite-Lived Intangible Assets, Accumulated Amortization | (2,271,000) | (2,271,000) | (1,692,000) | (1,112,000) | |
Intangible Assets, Net (Excluding Goodwill) | 8,384,000 | $ 8,384,000 | $ 3,972,000 | ||
Finite-Lived Intangible Asset, Useful Life | 10 years | 10 years | |||
Amortization of Intangible Assets | $ (579,000) | $ (580,000) | |||
In Process Research and Development [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Intangible Assets, Gross (Excluding Goodwill) | 24,013,000 | 24,013,000 | 12,982,000 | $ 12,982,000 | |
Indefinite-lived Intangible Assets Acquired | 6,703,000 | $ 4,328,000 | |||
Intangible Assets, Net (Excluding Goodwill) | $ 24,013,000 | $ 24,013,000 | $ 12,982,000 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME OTHER COMPREHENSIVE INCOME (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ (1,127) | $ (625) | |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (502) | ||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (502) | 1,067 | $ (396) |
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (1,127) | (625) | |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (502) | ||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (502) | ||
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 |
ACCRUED LIABILITIES (Details)
ACCRUED LIABILITIES (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accrued Liabilities [Abstract] | ||||
Employee-related Liabilities, Current | $ 18,086 | $ 18,218 | ||
Dividends Payable, Current | 2,703 | 2,671 | ||
Taxes Payable, Current | 1,014 | 1,070 | ||
Product Warranty Accrual, Current | 1,901 | 1,308 | $ 675 | $ 553 |
Standard Product Warranty Accrual, Decrease for Payments | (2,159) | (2,049) | (1,322) | |
Standard Product Warranty Accrual, Increase for Warranties Issued | 2,752 | 2,682 | $ 1,444 | |
Other Accrued Liabilities, Current | 3,068 | 2,723 | ||
Accrued Liabilities, Current | $ 26,772 | $ 25,990 | ||
Schedule of Accrued Liabilities [Table Text Block] | 2018 2017 Compensation and employee benefits $ 18,086 $ 18,218 Income and other taxes 1,014 1,070 Warranty costs 1,901 1,308 Dividends payable 2,703 2,671 Other 3,068 2,723 $ 26,772 $ 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 at December 31, 2015 $ 553 Warranty services provided (1,322 ) Accrual for warranty costs 1,444 Accrued warranty costs at December 31, 2016 675 Warranty services provided (2,049 ) Accrual for warranty costs 2,682 Accrued warranty costs at December 31, 2017 1,308 Warranty services provided (2,159 ) Accrual for warranty costs 2,752 Accrued warranty costs at December 31, 2018 $ 1,901 |
INCOME TAXES INCOME TAXES (Deta
INCOME TAXES INCOME TAXES (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense | $ 104,000 | $ 35,400 | |
Unrecognized Tax Benefits | 9,721,000 | 2,777,000 | $ 2,677,000 |
Unrecognized Tax Benefits, Increase Resulting from Current Period Tax Positions | 749,000 | 355,000 | |
Unrecognized Tax Benefits, Increase Resulting from Prior Period Tax Positions | 6,605,000 | 0 | |
Unrecognized Tax Benefits, Decrease Resulting from Prior Period Tax Positions | (410,000) | (103,000) | |
Unrecognized Tax Benefits, Reduction Resulting from Lapse of Applicable Statute of Limitations | 0 | (152,000) | |
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Accrued Liabilities | 5,646,000 | 6,444,000 | |
Income (Loss) from Continuing Operations before Income Taxes, Domestic | 7,242,000 | 18,436,000 | 2,281,000 |
Income (Loss) from Continuing Operations before Income Taxes, Foreign | 21,069,000 | 18,713,000 | 17,334,000 |
Current Federal Tax Expense (Benefit) | (3,318,000) | 3,149,000 | 1,545,000 |
Current Foreign Tax Expense (Benefit) | 515,000 | 295,000 | 204,000 |
Current State and Local Tax Expense (Benefit) | 600,000 | 883,000 | 449,000 |
Current Income Tax Expense (Benefit) | (2,203,000) | 4,327,000 | 2,198,000 |
Deferred Federal Income Tax Expense (Benefit) | 6,351,000 | 14,970,000 | (215,000) |
Deferred Foreign Income Tax Expense (Benefit) | 5,271,000 | (9,267,000) | 3,813,000 |
Deferred State and Local Income Tax Expense (Benefit) | 384,000 | (2,304,000) | 5,000 |
Deferred Income Tax Expense (Benefit) | 12,006,000 | 3,399,000 | 3,603,000 |
Income Tax Expense (Benefit) | $ 9,803,000 | $ 7,726,000 | $ 5,801,000 |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 35.00% | 35.00% |
Effective Income Tax Rate Reconciliation, State and Local Income Taxes, Percent | 3.00% | (1.40%) | 1.50% |
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Percent | 2.60% | 0.50% | 9.50% |
Effective Income Tax Rate Reconciliation, Foreign Income Tax Rate Differential, Percent | 3.40% | (5.70%) | (9.00%) |
Effective Income Tax Rate Reconciliation, Tax Credit, Research, Percent | (8.70%) | (4.60%) | (14.30%) |
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Percent | 0.40% | (37.60%) | 5.50% |
Effective Income Tax Rate Reconciliation, Tax Contingency, Percent | 24.70% | 0.50% | 1.30% |
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Percent | (0.30%) | 7.30% | 0.00% |
Effective Income Tax Rate Reconciliation, Repatriation of Foreign Earnings, Percent | (16.60%) | 18.10% | 0.00% |
Effective Income Tax Rate Reconciliation, Tax Contingency, Foreign, Percent | (7.90%) | 8.60% | 0.00% |
Effective Income Tax Rate Reconciliation, Deduction, Extraterritorial Income Exclusion, Percent | 5.70% | 0.00% | 0.00% |
Effective Income Tax Rate Reconciliation,Other Reconciling Items, Percent | 2.60% | 0.00% | 0.00% |
Effective Income Tax Rate Reconciliation, Tax Settlement, Foreign, Percent | 4.80% | 0.00% | 0.00% |
Effective Income Tax Rate Reconciliation, Other Adjustments, Percent | (0.10%) | 0.10% | 0.10% |
Effective Income Tax Rate Reconciliation, Percent | 34.60% | 20.80% | 29.60% |
Deferred Tax Assets, Operating Loss Carryforwards | $ 54,167,000 | $ 67,299,000 | |
Deferred Tax Assets, Deferred Income | 0 | 1,541,000 | |
Deferred Tax Assets, Tax Deferred Expense, Other | 0 | 4,071,000 | |
Deferred Tax Assets, Tax Deferred Expense, Compensation and Benefits, Employee Compensation | 6,525,000 | 5,429,000 | |
Deferred Tax Assets, Gross | 66,338,000 | 84,784,000 | |
Deferred Tax Assets, Valuation Allowance | (21,354,000) | (21,943,000) | |
Deferred Tax Assets, Net of Valuation Allowance | 44,984,000 | 62,841,000 | |
Deferred Tax Assets, Net | 21,470,000 | 37,552,000 | |
Deferred Tax Liabilities, Deferred Expense, Reserves and Accruals | (2,204,000) | (4,207,000) | |
Deferred Tax Liabilities, Tax Deferred Income | (358,000) | 0 | |
Deferred Tax Liabilities, Deferred Expense, Other Capitalized Costs | (20,952,000) | (20,155,000) | |
Deferred Tax Liabilities, Intangible Assets | 0 | (927,000) | |
Deferred Tax Liabilities, Gross | $ (23,514,000) | $ (25,289,000) |
EARNINGS PER SHARE EARNINGS PER
EARNINGS PER SHARE EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 619,113 | 2,182,404 | 2,017,106 | ||||||||
Net Income (Loss) Attributable to Parent | $ (2,295) | $ 1,737 | $ 5,669 | $ 13,397 | $ (2,965) | $ 17,613 | $ 5,544 | $ 9,231 | $ 18,508 | $ 29,423 | $ 13,814 |
Participating Securities, Distributed and Undistributed Earnings (Loss), Diluted | (311) | (529) | 0 | ||||||||
Net Income (Loss) Attributable to Parent, Diluted | 18,197 | 28,894 | 13,814 | ||||||||
Participating Securities, Distributed and Undistributed Earnings (Loss), Basic | (312) | (529) | 0 | ||||||||
Net Income (Loss) Available to Common Stockholders, Basic | $ 18,196 | $ 28,894 | $ 13,814 | ||||||||
Weighted Average Number of Shares Outstanding, Basic | 43,727,000 | 43,173,000 | 42,584,000 | ||||||||
Earnings Per Share, Basic | $ (0.05) | $ 0.04 | $ 0.13 | $ 0.30 | $ (0.07) | $ 0.40 | $ 0.13 | $ 0.21 | $ 0.42 | $ 0.67 | $ 0.32 |
Weighted Average Number Diluted Shares Outstanding Adjustment | 564,000 | 127,000 | 429,000 | ||||||||
Weighted Average Number of Shares Outstanding, Diluted | 44,291,000 | 43,300,000 | 43,013,000 | ||||||||
Earnings Per Share, Diluted | $ 0.41 | $ 0.67 | $ 0.32 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - USD ($) | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Preferred Stock, Shares Authorized | 5,000,000 | 5,000,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | $ 1,300,000 | $ 700,000 | $ 600,000 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | $ 14,500,000 | |||
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 50.00% | |||
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Amount | $ 18,500 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 8.23 | $ 6.66 | $ 7.86 | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 7 years | 7 years | 7 years | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 0.00% | 0.00% | 0.00% | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 40.00% | 50.00% | 50.00% | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 0.00% | 0.00% | 0.00% | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Remaining Contractual Term | 4 years 10 months 17 days | 4 years 10 months 15 days | 4 years 10 months 15 days | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs, Capitalized Amount | $ 0 | |||
Defined Contribution Plan, Administrative Expense | 4,000,000 | $ 3,800,000 | $ 3,200,000 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | 8,700,000 | |||
Proceeds from Stock Options Exercised | 2,800,000 | 2,800,000 | 3,300,000 | |
Employee Stock Ownership Plan (ESOP), Compensation Expense | $ 600,000 | $ 500,000 | $ 400,000 | |
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 518,111 | 434,400 | 341,844 | |
Share-based Compensation Arrangement by Share-based Payment Award, Discount from Market Price, Purchase Date | 15.00% | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 4,800,000 | |||
Common Stock, Capital Shares Reserved for Future Issuance | 8,925,957 | 6,270,286 | ||
Restricted Stock Units (RSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Aggregate Intrinsic Value, Nonvested | $ 10,834,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Outstanding, Weighted Average Remaining Contractual Terms | 1 year 1 month 5 days | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 468,000 | 423,000 | 457,000 | 501,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 273,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | (47,000) | (122,000) | (83,000) | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | (3,000) | (16,000) | (61,000) | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years 2 months 25 days | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Weighted Average Remaining Contractual Term | 1 year 22 days | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number | 417,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period | 104,237 | 99,144 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Aggregate Intrinsic Value | $ 10,678,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value | 6,700,000 | $ 8,800,000 | $ 7,000,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | $ 7,373,000 | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit | $ 26.39 | $ 20.80 | $ 20.62 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 0 years | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit | $ 21.98 | $ 18.04 | $ 19.48 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 95,127 | 104,000 | 99,000 | |
Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $ 20.27 | $ 18.46 | $ 18.74 | $ 18.66 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 724,000 | 715,000 | 810,000 | 836,000 |
Allocated Share-based Compensation Expense | $ 6,200,000 | $ 7,200,000 | $ 7,900,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | (313,000) | (354,000) | (231,000) | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ 19.58 | $ 18.84 | $ 18.78 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | (66,000) | (112,000) | (96,000) | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years 2 months 22 days | |||
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period | 387,436 | 369,715 | 301,419 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $ 18.70 | $ 18.74 | $ 19.75 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value | $ 12,700,000 | $ 12,700,000 | $ 1,600,000 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit | $ 29.33 | $ 20.80 | $ 22.59 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | 22.21 | 18.22 | 19.76 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit | $ 20.33 | $ 18.04 | $ 19.48 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 387,000 | 370,000 | 301,000 | |
Employee Stock Option [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $ 13,608,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 4 years 7 months 11 days | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $ 19.05 | $ 18.10 | $ 18.06 | $ 17.47 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 3,323,000 | 3,086,000 | 2,180,000 | 1,692,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period, Weighted Average Exercise Price | $ 18.56 | $ 18.39 | $ 17.83 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 1,337,000 | |||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 22.15 | 18.08 | 19.21 | |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price | $ 17.84 | $ 16.50 | $ 18.55 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | (158,000) | (172,000) | (178,000) | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period | (376,000) | (328,000) | (220,000) | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number | 3,275,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Aggregate Intrinsic Value | $ 13,472,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 6 months | 6 months | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 2.00% | 1.00% | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 44.00% | 45.00% | 47.00% | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Exercise Price | $ 19.03 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 1.00% | 1.00% | 0.00% | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Remaining Contractual Term | 4 years 7 months 2 days | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | $ 6,615,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price | $ 18.16 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 3 years 8 months 9 days | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 771,000 | 1,406,000 | 886,000 |
CONTINGENCIES COMMITMENTS AND C
CONTINGENCIES COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Operating Leases, Future Minimum Payments Due, Next Twelve Months | $ 5,747 | ||
Operating Leases, Rent Expense | 7,000 | $ 6,600 | $ 5,800 |
Unrecorded Unconditional Purchase Obligation, Purchases | 2,200 | $ 1,800 | $ 2,600 |
Operating Leases, Future Minimum Payments, Due in Two Years | 5,546 | ||
Operating Leases, Future Minimum Payments, Due in Three Years | 5,457 | ||
Operating Leases, Future Minimum Payments, Due in Four Years | 4,080 | ||
Operating Leases, Future Minimum Payments, Due in Five Years | 3,540 | ||
Operating Leases, Future Minimum Payments, Due Thereafter | 2,813 | ||
Operating Leases, Future Minimum Payments Due | $ 27,183 |
REVENUE RECOGNITION (Details)
REVENUE RECOGNITION (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Jan. 01, 2018 | |
Revenue Recognition [Abstract] | ||
Revenue Recognition Accounting Policy, Gross and Net Revenue Disclosure [Policy Text Block] | NOTE 18 — REVENUE RECOGNITION On January 1, 2018, the Company adopted the Standard on revenue recognition, 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. 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 twelve months ended December 31 , 2018 (in thousands): Balance at Beginning of Period Balance at End of Period Contract assets: Unbilled receivables - Royalties $ 10,643 $ 10,805 Contract liabilities - short-term: Deferred revenue - Service (1) $ 4,438 $ 9,476 Deferred revenue - Licenses 246 227 Deferred revenue - Other 37 396 Total Contract liabilities - short-term $ 4,721 $ 10,099 Contract liabilities - long-term: Deferred revenue - Service $ 315 $ 207 Deferred revenue - Licenses 1,099 872 Deferred revenue - Other 83 — Total Contract liabilities - long-term $ 1,497 $ 1,079 (1) Note - 2018 contract liabilities includes $4.4 million of deferred service revenue which was acquired through the acquisition of EMD Millipore Corporation’s flow cytometry portfolio on December 31, 2018. During the twelve months ended December 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): Year Ended December 31, 2018 Revenue recognized in the period: Amounts included as contract liabilities at the beginning of the period $ 4,751 Performance obligations satisfied in previous periods - In accordance with the Standard, the disclosure of the impact of adoption on our consolidated statement of comprehensive income and balance sheet was as follows (in thousands): Three Months Ended December 31, 2018 Year Ended December 31, 2018 Statement of Comprehensive Income As Reported in this Annual Report Amounts Before Adoption of the Standard Net Effect of Adoption of the Standard As Reported in this Annual Report Amounts Before Adoption of the Standard Net Effect of Adoption of the Standard System sales $ 10,209 $ 9,378 $ 831 $ 39,986 $ 37,450 $ 2,536 Consumable sales 15,678 15,678 — 50,144 50,144 — Royalty revenue 13,507 13,439 68 49,394 49,145 249 Assay revenue 36,952 37,765 (813 ) 156,714 159,335 (2,621 ) Other revenue 4,787 4,787 — 19,580 19,580 — Revenue 81,133 81,047 86 315,818 315,654 164 Gross profit 48,341 48,255 86 195,491 195,327 164 Income from operations 968 882 86 27,846 27,682 164 Income tax benefit (expense) (3,263 ) (3,242 ) (21 ) (9,803 ) (9,763 ) (40 ) Net Income (2,295 ) (2,360 ) 65 18,508 18,384 124 As of December 31, 2018 Balance Sheet As Reported in this Annual Report Balances Before Adoption of ASC 606 Effect of Adoption of the Standard ASSETS Accounts receivable, net 53,396 42,589 10,807 Deferred income taxes 21,470 24,063 (2,593 ) LIABILITIES AND STOCKHOLDERS ’ EQUITY Retained earnings 103,390 95,176 8,214 | |
Unbilled Receivables, Not Billable, Amount Expected to be Collected in Next Rolling Twelve Months | $ 10,805 | $ 10,643 |
Deferred Revenue and Credits, Current | 10,099 | 4,721 |
Deferred Revenue and Credits, Noncurrent | 1,079 | 1,497 |
Nonsoftware Service, Support and Maintenance Arrangement [Member] | ||
Deferred Revenue and Credits, Current | 9,476 | 4,438 |
Deferred Revenue and Credits, Noncurrent | 207 | 315 |
Royalty Arrangement [Member] | ||
Deferred Revenue and Credits, Current | 396 | 37 |
Deferred Revenue and Credits, Noncurrent | 0 | 83 |
Nonsoftware License Arrangement [Member] | ||
Deferred Revenue and Credits, Current | 227 | 246 |
Deferred Revenue and Credits, Noncurrent | $ 872 | $ 1,099 |
BUSINESS COMBINATIONS (Details)
BUSINESS COMBINATIONS (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Business Combinations [Abstract] | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets | $ 8,181 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | 33,500 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | (4,433) | |
Goodwill, Acquired During Period | 32,646 | $ 0 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | $ 69,894 |
ACCOUNTS RECEIVABLE (Details)
ACCOUNTS RECEIVABLE (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Receivables [Abstract] | ||||
Valuation Allowances and Reserves, Balance | $ 843 | $ 1,345 | $ 419 | $ 204 |
Valuation Allowances and Reserves, Additions for Adjustments | (437) | 1,312 | 320 | |
Valuation Allowances and Reserves, Deductions | (65) | (386) | $ (105) | |
Accounts Receivable, Gross, Current | 54,239 | 41,993 | ||
Other Receivables, Net, Current | 0 | 0 | ||
Allowance for Doubtful Accounts Receivable | (843) | (1,345) | ||
Receivables, Net, Current | $ 53,396 | $ 40,648 |
PROPERTY AND EQUIPMENT (Details
PROPERTY AND EQUIPMENT (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | |||
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | $ (87,773) | $ (79,170) | |
Property, Plant and Equipment, Gross | 154,061 | 137,428 | |
Property, Plant and Equipment, Net | 66,288 | 58,258 | $ 57,375 |
Depreciation | 14,400 | 13,200 | $ 11,500 |
Machinery and Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 58,330 | 52,498 | |
Leasehold Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 39,289 | 37,155 | |
Computer Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 3,322 | 3,174 | |
Software and Software Development Costs [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 22,141 | 22,056 | |
Furniture and Fixtures [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 5,874 | 5,842 | |
Assets Held under Capital Leases [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 24,259 | 15,741 | |
Other Capitalized Property Plant and Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | $ 846 | $ 962 |
GEOGRAPHIC SEGMENTS (Details)
GEOGRAPHIC SEGMENTS (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Property, Plant and Equipment, Net | $ 66,288,000 | $ 58,258,000 | $ 66,288,000 | $ 58,258,000 | $ 57,375,000 | ||||||
Revenue, Net | 81,133,000 | $ 72,445,000 | $ 79,578,000 | $ 82,662,000 | 78,199,000 | $ 74,136,000 | $ 76,457,000 | $ 77,779,000 | 315,818,000 | 306,571,000 | 270,639,000 |
Foreign Currency Transaction Gain (Loss), before Tax | 487,000 | 134,000 | 121,000 | ||||||||
Geographic Distribution, Domestic [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Property, Plant and Equipment, Net | 63,382,000 | 54,623,000 | 63,382,000 | 54,623,000 | 53,283,000 | ||||||
Revenue, Net | 261,726,000 | 256,834,000 | 222,706,000 | ||||||||
Europe [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Property, Plant and Equipment, Net | 394,000 | 809,000 | 394,000 | 809,000 | 1,079,000 | ||||||
Revenue, Net | 21,672,000 | 20,378,000 | 19,211,000 | ||||||||
Asia Pacific [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Property, Plant and Equipment, Net | 519,000 | 741,000 | 519,000 | 741,000 | 730,000 | ||||||
Revenue, Net | 21,603,000 | 20,134,000 | 20,733,000 | ||||||||
Canada Revenue Agency [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Property, Plant and Equipment, Net | 1,993,000 | 2,077,000 | 1,993,000 | 2,077,000 | 2,274,000 | ||||||
Revenue, Net | 4,775,000 | 4,386,000 | 3,738,000 | ||||||||
Geographic Distribution, Foreign [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Property, Plant and Equipment, Net | $ 0 | $ 8,000 | 0 | 8,000 | 9,000 | ||||||
Revenue, Net | $ 6,042,000 | $ 4,839,000 | $ 4,251,000 |