Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2017 | Nov. 03, 2017 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | OSUR | |
Entity Registrant Name | ORASURE TECHNOLOGIES INC | |
Entity Central Index Key | 1,116,463 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 60,648,324 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 76,770 | $ 107,959 |
Restricted cash | 1,840 | 1,831 |
Short-term investments | 83,372 | 11,160 |
Accounts receivable, net of allowance for doubtful accounts of $494 and $484 | 28,099 | 19,827 |
Inventories | 16,859 | 11,799 |
Prepaid expenses | 1,189 | 1,722 |
Other current assets | 1,206 | 2,143 |
Total current assets | 209,335 | 156,441 |
PROPERTY AND EQUIPMENT, net | 21,496 | 20,033 |
INTANGIBLE ASSETS, net | 8,972 | 10,337 |
GOODWILL | 20,257 | 18,793 |
LONG TERM INVESTMENTS | 18,290 | |
OTHER ASSETS | 3,909 | 2,331 |
TOTAL ASSETS | 282,259 | 207,935 |
CURRENT LIABILITIES: | ||
Accounts payable | 9,624 | 4,633 |
Deferred revenue | 1,186 | 1,388 |
Accrued expenses | 15,813 | 11,314 |
Total current liabilities | 26,623 | 17,335 |
OTHER LIABILITIES | 3,928 | 2,304 |
DEFERRED INCOME TAXES | 2,194 | 2,446 |
COMMITMENTS AND CONTINGENCIES (Note 7) | ||
STOCKHOLDERS' EQUITY | ||
Preferred stock, par value $.000001, 25,000 shares authorized, none issued | ||
Common stock, par value $.000001, 120,000 shares authorized, 60,631 and 56,001 shares issued and outstanding | 0 | 0 |
Additional paid-in capital | 385,978 | 350,528 |
Accumulated other comprehensive loss | (9,638) | (14,220) |
Accumulated deficit | (126,826) | (150,458) |
Total stockholders' equity | 249,514 | 185,850 |
Total liabilities and stockholders' equity | $ 282,259 | $ 207,935 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 494 | $ 484 |
Preferred stock, par value | $ 0.000001 | $ 0.000001 |
Preferred stock, shares authorized | 25,000,000 | 25,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | $ 0.000001 | $ 0.000001 |
Common stock, shares authorized | 120,000,000 | 120,000,000 |
Common stock, shares issued | 60,631,000 | 56,001,000 |
Common stock, shares outstanding | 60,631,000 | 56,001,000 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
NET REVENUES: | ||||
Product | $ 41,157 | $ 25,460 | $ 111,771 | $ 78,286 |
Other | 1,157 | 6,791 | 3,265 | 14,413 |
Total revenue | 42,314 | 32,251 | 115,036 | 92,699 |
COST OF PRODUCTS SOLD | 17,670 | 9,576 | 44,605 | 28,626 |
Gross profit | 24,644 | 22,675 | 70,431 | 64,073 |
OPERATING EXPENSES: | ||||
Research and development | 3,228 | 3,196 | 9,536 | 8,547 |
Sales and marketing | 7,162 | 6,428 | 21,541 | 22,531 |
General and administrative | 6,935 | 6,907 | 21,777 | 19,803 |
Gain on litigation settlement | (12,500) | |||
Total operating expenses | 17,325 | 16,531 | 40,354 | 50,881 |
Operating income | 7,319 | 6,144 | 30,077 | 13,192 |
OTHER INCOME (EXPENSE) | 113 | 498 | 676 | (34) |
Income before income taxes | 7,432 | 6,642 | 30,753 | 13,158 |
INCOME TAX EXPENSE | 1,669 | 400 | 7,121 | 634 |
NET INCOME | $ 5,763 | $ 6,242 | $ 23,632 | $ 12,524 |
EARNINGS PER SHARE: | ||||
BASIC | $ 0.10 | $ 0.11 | $ 0.40 | $ 0.23 |
DILUTED | $ 0.09 | $ 0.11 | $ 0.39 | $ 0.22 |
SHARES USED IN COMPUTING EARNINGS PER SHARE: | ||||
BASIC | 60,090 | 55,653 | 58,511 | 55,549 |
DILUTED | 62,172 | 56,530 | 60,569 | 56,273 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
NET INCOME | $ 5,763 | $ 6,242 | $ 23,632 | $ 12,524 |
OTHER COMPREHENSIVE INCOME | ||||
Currency translation adjustments | 2,570 | (729) | 4,882 | 2,501 |
Unrealized loss on marketable securities | (245) | (300) | ||
COMPREHENSIVE INCOME | $ 8,088 | $ 5,513 | $ 28,214 | $ 15,025 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
OPERATING ACTIVITIES: | ||
NET INCOME | $ 23,632 | $ 12,524 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Stock-based compensation | 5,213 | 4,438 |
Depreciation and amortization | 4,589 | 4,152 |
Unrealized foreign currency loss | (246) | 75 |
Deferred income taxes | (425) | (205) |
Changes in assets and liabilities | ||
Accounts receivable | (7,706) | 3,818 |
Inventories | (4,886) | 1,236 |
Prepaid expenses and other assets | 1,616 | 1,186 |
Accounts payable | 4,593 | (125) |
Deferred revenue | (212) | (1,829) |
Accrued expenses and other liabilities | 4,193 | (90) |
Net cash provided by operating activities | 30,361 | 25,180 |
INVESTING ACTIVITIES: | ||
Purchases of investments | (132,177) | (22,966) |
Proceeds from maturities and redemptions of investments | 42,613 | 22,966 |
Purchases of property and equipment | (3,462) | (3,512) |
Net cash used in investing activities | (93,026) | (3,512) |
FINANCING ACTIVITIES: | ||
Payments for debt issue costs | (367) | |
Proceeds from exercise of stock options | 31,402 | 894 |
Repurchase of common stock | (1,234) | (3,311) |
Net cash provided by (used in) financing activities | 30,168 | (2,784) |
EFFECT OF FOREIGN EXCHANGE RATE CHANGES ON CASH | 1,317 | 558 |
NET (DECREASE) INCREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH | (31,180) | 19,442 |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, BEGINNING OF PERIOD | 109,790 | 94,094 |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, END OF PERIOD | 78,610 | 113,536 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | ||
Cash paid for income taxes | 4,317 | 812 |
Noncash investing activities (accrued property and equipment purchases) | 437 | $ 241 |
Noncash unrealized losses on marketable securities | $ (300) |
The Company
The Company | 9 Months Ended |
Sep. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
The Company | 1. The Company We develop, manufacture, market and sell diagnostic products and specimen collection devices using our proprietary technologies, as well as other diagnostic products, including immunoassays and other in vitro point-of-care, point-of-care in-home over-the-counter point-of-care |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Principles of Consolidation and Basis of Presentation The accompanying consolidated financial statements are unaudited and, in the opinion of management, include all adjustments (consisting only of normal and recurring adjustments) necessary for a fair presentation of our financial position and results of operations for these interim periods. These financial statements should be read in conjunction with the financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2016. Results of operations for the three and nine months ended September 30, 2017 are not necessarily indicative of the results of operations expected for the full year. Use of Estimates Investments The following is a summary of our available-for-sale securities at September 30, 2017 and December 31, 2016: Amortized Gross Gross Fair Value September 30, 2017 Guaranteed investment certificates $ 16,039 $ — $ — $ 16,039 Corporate bonds 85,923 — (300 ) 85,623 Total available-for-sale securities $ 101,962 $ — $ (300 ) $ 101,662 December 31, 2016 Guaranteed investment certificates $ 11,160 $ — $ — $ 11,160 Total available-for-sale securities $ 11,160 $ — $ — $ 11,160 At September 30, 2017 maturities of our available-for-sale securities were as follows: Less than one year $ 83,582 $ — $ (210 ) $ 83,372 Greater than one year $ 18,380 $ — $ (90 ) $ 18,290 Fair Value of Financial Instruments Fair value measurements of all financial assets and liabilities that are being measured and reported on a fair value basis are required to be classified and disclosed in one of the following three categories: Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; Level 2: Quoted prices in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability; and Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity). All of our available-for-sale securities are measured as Level 1 instruments as of September 30, 2017 and December 31, 2016. Included in cash and cash equivalents at September 30, 2017 and December 31, 2016, was $33,633 and $83,704 invested in government money market funds. These funds hold investments in government securities and are measured as Level 1 instruments. We offer a nonqualified deferred compensation plan for certain eligible employees and members of our Board of Directors. The assets of the plan are held in the name of the Company at a third-party financial institution. Separate accounts are maintained for each participant to reflect the amounts deferred by the participant and all earnings and losses on those deferred amounts. The assets of the plan are held in mutual funds and Company stock. The fair value of the plan assets as of September 30, 2017 and December 31, 2016 was $3,670 and $1,980, respectively, and was calculated using the quoted market prices of the assets as of those dates. All investments in the plan are classified as trading securities and measured as Level 1 instruments. The fair value of plan assets is included in other assets with the same amount included in other liabilities in the accompanying consolidated balance sheets. In 2017, we purchased certificates of deposit (“CDs”) from a commercial bank. The CDs bear interest at rates ranging from 0.86% to 0.94% and mature periodically through January 15, 2018. The carrying values of the CDs approximate their fair value. These CDs serve as collateral for certain standby letters of credit and are reported as restricted cash on the accompanying consolidated balance sheets. Also see Note 7 – Commitments and Contingencies. Inventories September 30, December 31, Raw materials $ 8,252 $ 5,399 Work in process 1,746 1,034 Finished goods 6,861 5,366 $ 16,859 $ 11,799 Property and Equipment Intangible Assets Goodwill We performed our last annual impairment assessment as of July 31, 2017 utilizing a qualitative evaluation and concluded that it was more likely than not that the fair value of our DNAG reporting unit is greater than its carrying value. We believe we have made reasonable estimates and assumptions to calculate the fair value of our reporting unit. If actual future results are not consistent with management’s estimates and assumptions, we may have to take an impairment charge in the future related to our goodwill. Future impairment tests will continue to be performed annually in the fiscal third quarter, or sooner if a triggering event occurs. As of September 30, 2017, we believe no indicators of impairment exist. The increase in goodwill from $18,793 as of December 31, 2016 to $20,257 as of September 30, 2017 is a result of foreign currency translation. Revenue Recognition ® Our net revenues recorded on sales of the OraQuick ® We record shipping and handling charges billed to our customers as product revenue and the related expense as cost of products sold. Taxes assessed by governmental authorities, such as sales or value-added taxes, are excluded from product revenues. In June 2014, we entered into a Master Program Services and Co-Promotion Agreement with AbbVie Bahamas Ltd., a wholly-owned subsidiary of AbbVie Inc. (“AbbVie”), to co-promote our OraQuick ® In June 2015, we were awarded a grant for up to $10,400 in total funding from the U.S. Department of Health and Human Services (“HHS”) Office of the Assistant Secretary for Preparedness and Response’s Biomedical Advanced Research and Development Authority (“BARDA”) related to our OraQuick ® ® In August 2016, we were awarded a contract for up to $16,600 in total funding from BARDA related to our rapid Zika test. The six-year, multi-phased contract includes an initial commitment of $7,000 and options for up to an additional $9,600 to fund the evaluation of additional product enhancements, and clinical and regulatory activities. In May 2017, BARDA exercised an option to provide $2,600 in additional funding for our rapid Zika test. Funding received under this contract is recorded as other revenue in our consolidated statements of income as the activities are being performed and the related costs are incurred. During the third quarter and first nine months of 2017, $553 and $1,787, respectively, was recognized as other revenue in connection with this grant. During the third quarter and first nine months of 2016, $203 was recognized as other revenue in connection with this grant. In June 2017, we entered into a four-year Charitable Support Agreement with the Bill & Melinda Gates Foundation (“Gates Foundation”) that will enable us to offer our OraQuick ® Customer Sales Returns and Allowances ® ® Deferred Revenue Customer and Vendor Concentrations We currently purchase certain products and critical components of our products from sole-supply vendors. If these vendors are unable or unwilling to supply the required components and products, we could be subject to increased costs and substantial delays in the delivery of our products to our customers. Also, our subsidiary, DNAG, uses two third-party suppliers to manufacture its products. Our inability to have a timely supply of any of these components and products could have a material adverse effect on our business, as well as our financial condition and results of operations. Earnings Per Share The computations of basic and diluted earnings per share are as follows: Three Months Nine Months Ended September 30, Ended September 30, 2017 2016 2017 2016 Net income $ 5,763 $ 6,242 $ 23,632 $ 12,524 Weighted average shares of common stock outstanding: Basic 60,090 55,653 58,511 55,549 Dilutive effect of stock options, restricted stock, and performance units 2,082 877 2,058 724 Diluted 62,172 56,530 60,569 56,273 Earnings per share: Basic $ 0.10 $ 0.11 $ 0.40 $ 0.23 Diluted $ 0.09 $ 0.11 $ 0.39 $ 0.22 For the three-month periods ended September 30, 2017 and 2016, outstanding common stock options, unvested restricted stock, and unvested performance units representing 8 and 2,130 shares, respectively, were excluded from the computation of diluted earnings per share as their inclusion would have been anti-dilutive. For the nine months ended September 30, 2017 and 2016, outstanding common stock options, unvested restricted stock and unvested performance units representing 238 and 2,837 shares, respectively, were similarly excluded from the computation of diluted earnings per share. Foreign Currency Translation Transaction gains and losses resulting from exchange rate changes on transactions denominated in currencies other than functional currency are included in our consolidated statements of income in the period in which the change occurs. Net foreign exchange (losses) gains resulting from foreign currency transactions that are included in other income (expense) in our consolidated statements of income were $(638) and $84 for the three months ended September 30, 2017 and 2016, respectively. Net foreign exchange losses were $(1,256) and $(564) for the nine months ended September 30, 2017 and 2016, respectively. Accumulated Other Comprehensive Income (Loss) We have defined the Canadian dollar as the functional currency of our Canadian subsidiary, DNAG, and as such, the results of its operations are translated into U.S. dollars, which is the reporting currency of the Company. Accumulated other comprehensive loss at September 30, 2017 consists of $9,338 of currency translation adjustments and $300 of net unrealized losses on marketable securities. Recent Accounting Pronouncements Revenue from Contracts with Customers The FASB allows two adoption methods under ASU 2014-09. We plan to adopt the standard using the “modified retrospective method.” Under that method, we will apply the rules to all contracts existing as of January 1, 2018, recognizing in beginning retained earnings an adjustment for the cumulative effective of the change and providing additional disclosures comparing results to those under the previous accounting standard. Upon initial evaluation, we believe the key changes in the standard that impact our revenue recognition relate to the allocation of the transaction price to performance obligations related to our drug testing kits. This revenue stream amounts to less than 1% of total consolidated revenues. We will continue to evaluate the impact that the adoption of ASU 2014-09 will have on our consolidated financial statements and related disclosures, but do not anticipate the adoption will have a material impact on our financial results. In July 2015, the FASB issued ASU 2015-11, Simplifying the Measurement of Inventory In February 2016, the FASB issued ASU 2016-02, Leases In March 2016, the FASB issued authoritative guidance under ASU 2016-09, Compensation-Stock Compensation (Topic 718) Improvements to Employee Share-Based Payment Accounting In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments In January 2017, the FASB issued ASU 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment In March 2017, the FASB issued ASU 2017-08, Receivables-Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities |
Accrued Expenses
Accrued Expenses | 9 Months Ended |
Sep. 30, 2017 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | 3. Accrued Expenses September 30, December 31, Payroll and related benefits $ 8,684 $ 7,685 Income taxes payable (receivable) 3,303 (39 ) Professional fees 688 982 Royalties 659 715 Other 2,479 1,971 $ 15,813 $ 11,314 |
Credit Facility
Credit Facility | 9 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Credit Facility | 4. Credit Facility On September 30, 2016, we entered into a credit agreement (the “Credit Agreement”) with a commercial bank. The Credit Agreement provides for revolving extensions of credit in an initial aggregate amount of up to $10,000 (inclusive of a letter of credit subfacility of $2,500), with an option to request, prior to the second anniversary of the closing date, that the lender, at its election, provide up to $5,000 of additional revolving commitments. Obligations under the Credit Agreement are secured by a first priority security interest in certain eligible accounts receivable, 65% of the equity of our subsidiary, DNAG, and certain related assets. There were no borrowings outstanding under the Credit Agreement at September 30, 2017 and December 31, 2016. Borrowings under the Credit Agreement are subject to compliance with borrowing base limitations tied to eligibility of accounts receivable. Interest under the Credit Agreement is payable at the London Interbank Offered Rate for one, two, three or six-month loans, as selected by the Company, plus 2.50% per year. The Credit Agreement is subject to an unused line fee of 0.375% per year on the unused portion of the commitment under the Credit Agreement during the revolving period. The maturity date of the Credit Agreement is September 30, 2019. In connection with the Credit Agreement, under certain circumstances, we must comply with a minimum fixed charge coverage ratio of 1.10 to 1.00, measured as of the last day of each fiscal month and for the twelve-fiscal month period ending on such date. As of September 30, 2017 and December 31, 2016, we were in compliance with all applicable covenants in the Credit Agreement. |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2017 | |
Equity [Abstract] | |
Stockholders' Equity | 5. Stockholders’ Equity Stock-Based Awards We grant stock-based awards under the OraSure Technologies, Inc. Stock Award Plan, as amended (the “Stock Plan”). The Stock Plan permits stock-based awards to employees, outside directors and consultants or other third-party advisors. Awards which may be granted under the Stock Plan include qualified incentive stock options, nonqualified stock options, stock appreciation rights, restricted awards, performance awards and other stock-based awards. We recognize compensation expense for stock option and restricted stock awards issued to employees and directors on a straight-line basis over the requisite service period of the award. We recognize compensation expense related to performance-based restricted stock units based on assumptions as to what percentage of each performance target will be achieved. We evaluate these target assumptions on a quarterly basis and adjust compensation expense related to these awards, as appropriate. To satisfy the exercise of options or to issue restricted stock, or redeem performance-based restricted stock units, we issue new shares rather than purchase shares on the open market. Total compensation cost related to stock options for the three months ended September 30, 2017 and 2016 was $547 and $646, respectively. Total compensation cost related to stock options for the nine months ended September 30, 2017 and 2016 was $1,554 and $2,033, respectively. Net cash proceeds from the exercise of stock options were $31,402 and $894 for the nine months ended September 30, 2017 and 2016, respectively. As a result of the Company’s net operating loss carryforward position, no actual income tax benefit was recognized in the consolidated statements of income from stock option exercises during these periods. Compensation cost of $667 and $736 related to restricted shares was recognized during the three months ended September 30, 2017 and 2016, respectively. Compensation cost of $2,022 and $2,137 related to restricted shares was recognized during the nine months ended September 30, 2017 and 2016, respectively. In connection with the vesting of restricted shares during the nine months ended September 30, 2017 and 2016, we purchased and immediately retired 122 and 117 shares with aggregate values of $1,234 and $651, respectively, in satisfaction of minimum tax withholding obligations. Commencing in 2016, we granted performance-based restricted stock units (“PSUs”) to certain executives. Vesting of these PSUs is dependent upon achievement of performance-based metrics during a one-year or three-year period, from the date of grant. Assuming achievement of each performance-based metric, the executive must also remain in our service for three years from the grant date. Performance during the one-year period will be based on a one-year earnings per share target. If the one-year target is achieved, the PSUs will then vest three years from grant date. Performance during the three-year period will be based on achievement of a three-year compound annual growth rate for consolidated product revenues. If the three-year target is achieved, the corresponding PSUs will then vest three years from grant date. PSUs are converted into shares of our common stock once vested. Upon grant of the PSUs, we recognize compensation expense related to these awards based on assumptions as to what percentage of each target will be achieved. The Company evaluates these assumptions on a quarterly basis and adjusts compensation expense related to these awards, as appropriate. Compensation cost of $368 and $114 related to PSUs was recognized during the three months ended September 30, 2017 and 2016, respectively. Compensation cost of $1,637 and $268 related to PSUs was recognized during the nine months ended September 30, 2017 and 2016, respectively. Stock Repurchase Program On August 5, 2008, our Board of Directors approved a share repurchase program pursuant to which we are permitted to acquire up to $25,000 of our outstanding common shares. No shares were purchased and retired during the nine months ended September 30, 2017. During the nine months ended September 30, 2016, we purchased and retired 423 shares of common stock at an average price of $6.29 per share for a total cost of $2,660 under this share purchase agreement. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 6. Income Taxes During the three and nine months ended September 30, 2017, we recorded tax expense of $1,669 and $7,121, respectively. During the three and nine months ended September 30, 2016, we recorded tax expense of $400 and $634, respectively. Tax expense reflects taxes due to state and Canadian taxing authorities and the tax effects of temporary differences between the basis of assets and liabilities recognized for financial reporting and tax purposes, and net operating loss and tax credit carryforwards. The significant components of our total deferred tax liability as of September 30, 2017 relate to the tax effects of the basis difference between the intangible assets acquired in the DNAG acquisition for financial reporting and tax purposes. Tax expense in the first nine months of 2017 reflects an increase in earnings and additional Canadian taxes due as a result of the $12,500 gain from the settlement of our patent infringement and breach of contract litigation against Ancestry.com DNA LLC and its contract manufacturer. In 2008, we established a full valuation allowance against our U.S. deferred tax asset. Management believes the full valuation allowance is still appropriate as of both September 30, 2017 and December 31, 2016 since the facts and circumstances necessitating the allowance have not changed. As a result, no U.S. federal or state deferred income tax expense or benefit was recorded for the three and nine-month periods ended September 30, 2017 and 2016. The new accounting guidance under ASU 2016-09 allows for the recognition of excess tax benefits regardless of whether the deduction reduces taxes payable. On January 1, 2017, we recorded a cumulative-effect adjustment to retained earnings of $3,391 to recognize the increase in our net operating loss carryforwards from the cumulative excess tax benefits not recognized in periods prior to January 1, 2017. A corresponding $3,391 increase to our valuation allowance associated with this tax benefit was also recorded to retained earnings thereby resulting in a net impact to retained earnings of $0. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 7. Commitments and Contingencies Standby Letters of Credit We established standby letters of credit in the aggregate amount of $1,840, naming international customers as the beneficiaries. These letters of credit were required as a performance guarantee of our obligations under our product supply contracts with those customers and are collateralized by certificates of deposit maintained at a commercial bank. Litigation From time to time, we are involved in certain legal actions arising in the ordinary course of business. In management’s opinion, the outcomes of such actions, either individually or in the aggregate, are not expected to have a material adverse effect on our future financial position or results of operations. |
Business Segment Information
Business Segment Information | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Business Segment Information | 8. Business Segment Information We operate our business within two reportable segments: our “OSUR” business, which consists of the development, manufacture and sale of diagnostic products, specimen collection devices and medical devices; and our molecular collection systems or “DNAG” business, which primarily consists of the manufacture, development and sale of oral fluid collection devices that are used to collect, stabilize and store samples of genetic material for molecular testing. OSUR revenues are derived primarily from products sold in the United States and internationally to various clinical laboratories, hospitals, clinics, community-based organizations, public health organizations, distributors, government agencies, physicians’ offices, commercial and industrial entities, retail pharmacies and mass merchandisers, and to consumers over the internet. OSUR also derives other revenues, including exclusivity payments for co-promotion rights and other licensing and product development activities. DNAG revenues result primarily from products sold into the commercial market which consists of customers engaged in consumer genetics, clinical genetic testing, pharmacogenomics, personalized medicine, microbiome, animal genetic testing and research. DNAG products are also sold into the academic research market, which consists of research laboratories, universities and hospitals. We organized our operating segments according to the nature of the products included in those segments. The accounting policies of the segments are the same as those described in the summary of significant accounting policies (see Note 2). We evaluate performance of our operating segments based on revenue and operating income. We do not allocate interest income, interest expense, other income, other expenses or income taxes to our operating segments. Reportable segments have no inter-segment revenues and inter-segment expenses have been eliminated. The following table summarizes operating segment information for the three and nine months ended September 30, 2017 and 2016, and asset information as of September 30, 2017 and December 31, 2016: Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Net revenues: OSUR $ 23,762 $ 23,924 $ 69,720 $ 69,050 DNAG 18,552 8,327 45,316 23,649 Total $ 42,314 $ 32,251 $ 115,036 $ 92,699 Operating income (loss): OSUR $ (453 ) $ 4,571 $ (235 ) $ 9,098 DNAG 7,772 1,573 30,312 4,094 Total $ 7,319 $ 6,144 $ 30,077 $ 13,192 Depreciation and amortization: OSUR $ 855 $ 688 $ 2,189 $ 2,003 DNAG 843 726 2,400 2,149 Total $ 1,698 $ 1,414 $ 4,589 $ 4,152 Capital expenditures: OSUR $ 1,156 $ 283 $ 2,493 $ 1,406 DNAG 739 500 969 2,106 Total $ 1,895 $ 783 $ 3,462 $ 3,512 September 30, December 31, Total assets: OSUR $ 192,298 $ 151,719 DNAG 89,961 56,216 Total $ 282,259 $ 207,935 The following table represents total net revenues by geographic area, based on the location of the customer: Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 United States $ 29,063 $ 26,302 $ 78,871 $ 72,493 Europe 3,204 2,171 8,765 9,006 Other regions 10,047 3,778 27,400 11,200 $ 42,314 $ 32,251 $ 115,036 $ 92,699 The following table represents total long-lived assets by geographic area: September 30, December 31, United States $ 16,644 $ 15,737 Canada 4,767 4,286 Other regions 85 10 $ 21,496 $ 20,033 |
Summary of Significant Accoun15
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Principles of Consolidation and Basis of Presentation | Principles of Consolidation and Basis of Presentation The accompanying consolidated financial statements are unaudited and, in the opinion of management, include all adjustments (consisting only of normal and recurring adjustments) necessary for a fair presentation of our financial position and results of operations for these interim periods. These financial statements should be read in conjunction with the financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2016. Results of operations for the three and nine months ended September 30, 2017 are not necessarily indicative of the results of operations expected for the full year. |
Use of Estimates | Use of Estimates |
Investments | Investments The following is a summary of our available-for-sale securities at September 30, 2017 and December 31, 2016: Amortized Gross Gross Fair Value September 30, 2017 Guaranteed investment certificates $ 16,039 $ — $ — $ 16,039 Corporate bonds 85,923 — (300 ) 85,623 Total available-for-sale securities $ 101,962 $ — $ (300 ) $ 101,662 December 31, 2016 Guaranteed investment certificates $ 11,160 $ — $ — $ 11,160 Total available-for-sale securities $ 11,160 $ — $ — $ 11,160 At September 30, 2017 maturities of our available-for-sale securities were as follows: Less than one year $ 83,582 $ — $ (210 ) $ 83,372 Greater than one year $ 18,380 $ — $ (90 ) $ 18,290 |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Fair value measurements of all financial assets and liabilities that are being measured and reported on a fair value basis are required to be classified and disclosed in one of the following three categories: Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; Level 2: Quoted prices in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability; and Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity). All of our available-for-sale securities are measured as Level 1 instruments as of September 30, 2017 and December 31, 2016. Included in cash and cash equivalents at September 30, 2017 and December 31, 2016, was $33,633 and $83,704 invested in government money market funds. These funds hold investments in government securities and are measured as Level 1 instruments. We offer a nonqualified deferred compensation plan for certain eligible employees and members of our Board of Directors. The assets of the plan are held in the name of the Company at a third-party financial institution. Separate accounts are maintained for each participant to reflect the amounts deferred by the participant and all earnings and losses on those deferred amounts. The assets of the plan are held in mutual funds and Company stock. The fair value of the plan assets as of September 30, 2017 and December 31, 2016 was $3,670 and $1,980, respectively, and was calculated using the quoted market prices of the assets as of those dates. All investments in the plan are classified as trading securities and measured as Level 1 instruments. The fair value of plan assets is included in other assets with the same amount included in other liabilities in the accompanying consolidated balance sheets. In 2017, we purchased certificates of deposit (“CDs”) from a commercial bank. The CDs bear interest at rates ranging from 0.86% to 0.94% and mature periodically through January 15, 2018. The carrying values of the CDs approximate their fair value. These CDs serve as collateral for certain standby letters of credit and are reported as restricted cash on the accompanying consolidated balance sheets. Also see Note 7 – Commitments and Contingencies. |
Inventories | Inventories September 30, December 31, Raw materials $ 8,252 $ 5,399 Work in process 1,746 1,034 Finished goods 6,861 5,366 $ 16,859 $ 11,799 |
Property and Equipment | Property and Equipment |
Intangible Assets | Intangible Assets |
Goodwill | Goodwill We performed our last annual impairment assessment as of July 31, 2017 utilizing a qualitative evaluation and concluded that it was more likely than not that the fair value of our DNAG reporting unit is greater than its carrying value. We believe we have made reasonable estimates and assumptions to calculate the fair value of our reporting unit. If actual future results are not consistent with management’s estimates and assumptions, we may have to take an impairment charge in the future related to our goodwill. Future impairment tests will continue to be performed annually in the fiscal third quarter, or sooner if a triggering event occurs. As of September 30, 2017, we believe no indicators of impairment exist. The increase in goodwill from $18,793 as of December 31, 2016 to $20,257 as of September 30, 2017 is a result of foreign currency translation. |
Revenue Recognition | Revenue Recognition ® Our net revenues recorded on sales of the OraQuick ® We record shipping and handling charges billed to our customers as product revenue and the related expense as cost of products sold. Taxes assessed by governmental authorities, such as sales or value-added taxes, are excluded from product revenues. In June 2014, we entered into a Master Program Services and Co-Promotion Agreement with AbbVie Bahamas Ltd., a wholly-owned subsidiary of AbbVie Inc. (“AbbVie”), to co-promote our OraQuick ® In June 2015, we were awarded a grant for up to $10,400 in total funding from the U.S. Department of Health and Human Services (“HHS”) Office of the Assistant Secretary for Preparedness and Response’s Biomedical Advanced Research and Development Authority (“BARDA”) related to our OraQuick ® ® In August 2016, we were awarded a contract for up to $16,600 in total funding from BARDA related to our rapid Zika test. The six-year, multi-phased contract includes an initial commitment of $7,000 and options for up to an additional $9,600 to fund the evaluation of additional product enhancements, and clinical and regulatory activities. In May 2017, BARDA exercised an option to provide $2,600 in additional funding for our rapid Zika test. Funding received under this contract is recorded as other revenue in our consolidated statements of income as the activities are being performed and the related costs are incurred. During the third quarter and first nine months of 2017, $553 and $1,787, respectively, was recognized as other revenue in connection with this grant. During the third quarter and first nine months of 2016, $203 was recognized as other revenue in connection with this grant. In June 2017, we entered into a four-year Charitable Support Agreement with the Bill & Melinda Gates Foundation (“Gates Foundation”) that will enable us to offer our OraQuick ® . |
Customer Sales Returns and Allowances | Customer Sales Returns and Allowances ® ® |
Deferred Revenue | Deferred Revenue |
Customer and Vendor Concentrations | Customer and Vendor Concentrations We currently purchase certain products and critical components of our products from sole-supply vendors. If these vendors are unable or unwilling to supply the required components and products, we could be subject to increased costs and substantial delays in the delivery of our products to our customers. Also, our subsidiary, DNAG, uses two third-party suppliers to manufacture its products. Our inability to have a timely supply of any of these components and products could have a material adverse effect on our business, as well as our financial condition and results of operations. |
Earnings Per Share | Earnings Per Share The computations of basic and diluted earnings per share are as follows: Three Months Nine Months Ended September 30, Ended September 30, 2017 2016 2017 2016 Net income $ 5,763 $ 6,242 $ 23,632 $ 12,524 Weighted average shares of common stock outstanding: Basic 60,090 55,653 58,511 55,549 Dilutive effect of stock options, restricted stock, and performance units 2,082 877 2,058 724 Diluted 62,172 56,530 60,569 56,273 Earnings per share: Basic $ 0.10 $ 0.11 $ 0.40 $ 0.23 Diluted $ 0.09 $ 0.11 $ 0.39 $ 0.22 For the three-month periods ended September 30, 2017 and 2016, outstanding common stock options, unvested restricted stock, and unvested performance units representing 8 and 2,130 shares, respectively, were excluded from the computation of diluted earnings per share as their inclusion would have been anti-dilutive. For the nine months ended September 30, 2017 and 2016, outstanding common stock options, unvested restricted stock and unvested performance units representing 238 and 2,837 shares, respectively, were similarly excluded from the computation of diluted earnings per share. |
Foreign Currency Translation | Foreign Currency Translation Transaction gains and losses resulting from exchange rate changes on transactions denominated in currencies other than functional currency are included in our consolidated statements of income in the period in which the change occurs. Net foreign exchange (losses) gains resulting from foreign currency transactions that are included in other income (expense) in our consolidated statements of income were $(638) and $84 for the three months ended September 30, 2017 and 2016, respectively. Net foreign exchange losses were $(1,256) and $(564) for the nine months ended September 30, 2017 and 2016, respectively. |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) paid-in We have defined the Canadian dollar as the functional currency of our Canadian subsidiary, DNAG, and as such, the results of its operations are translated into U.S. dollars, which is the reporting currency of the Company. Accumulated other comprehensive loss at September 30, 2017 consists of $9,338 of currency translation adjustments and $300 of net unrealized losses on marketable securities. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Revenue from Contracts with Customers The FASB allows two adoption methods under ASU 2014-09. We plan to adopt the standard using the “modified retrospective method.” Under that method, we will apply the rules to all contracts existing as of January 1, 2018, recognizing in beginning retained earnings an adjustment for the cumulative effective of the change and providing additional disclosures comparing results to those under the previous accounting standard. Upon initial evaluation, we believe the key changes in the standard that impact our revenue recognition relate to the allocation of the transaction price to performance obligations related to our drug testing kits. This revenue stream amounts to less than 1% of total consolidated revenues. We will continue to evaluate the impact that the adoption of ASU 2014-09 will have on our consolidated financial statements and related disclosures, but do not anticipate the adoption will have a material impact on our financial results. In July 2015, the FASB issued ASU 2015-11, Simplifying the Measurement of Inventory In February 2016, the FASB issued ASU 2016-02, Leases In March 2016, the FASB issued authoritative guidance under ASU 2016-09, Compensation-Stock Compensation (Topic 718) Improvements to Employee Share-Based Payment Accounting In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments In January 2017, the FASB issued ASU 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment In March 2017, the FASB issued ASU 2017-08, Receivables-Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities |
Summary of Significant Accoun16
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Summary of Available-for-sale Securities | The following is a summary of our available-for-sale securities at September 30, 2017 and December 31, 2016: Amortized Gross Gross Fair Value September 30, 2017 Guaranteed investment certificates $ 16,039 $ — $ — $ 16,039 Corporate bonds 85,923 — (300 ) 85,623 Total available-for-sale securities $ 101,962 $ — $ (300 ) $ 101,662 December 31, 2016 Guaranteed investment certificates $ 11,160 $ — $ — $ 11,160 Total available-for-sale securities $ 11,160 $ — $ — $ 11,160 At September 30, 2017 maturities of our available-for-sale securities were as follows: Less than one year $ 83,582 $ — $ (210 ) $ 83,372 Greater than one year $ 18,380 $ — $ (90 ) $ 18,290 |
Schedule of Inventories | Inventories are stated at the lower of cost or net realizable value determined on a first-in, first-out basis and are comprised of the following: September 30, December 31, Raw materials $ 8,252 $ 5,399 Work in process 1,746 1,034 Finished goods 6,861 5,366 $ 16,859 $ 11,799 |
Computations of Basic and Diluted Earnings Per Share | The computations of basic and diluted earnings per share are as follows: Three Months Nine Months Ended September 30, Ended September 30, 2017 2016 2017 2016 Net income $ 5,763 $ 6,242 $ 23,632 $ 12,524 Weighted average shares of common stock outstanding: Basic 60,090 55,653 58,511 55,549 Dilutive effect of stock options, restricted stock, and performance units 2,082 877 2,058 724 Diluted 62,172 56,530 60,569 56,273 Earnings per share: Basic $ 0.10 $ 0.11 $ 0.40 $ 0.23 Diluted $ 0.09 $ 0.11 $ 0.39 $ 0.22 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses | September 30, December 31, Payroll and related benefits $ 8,684 $ 7,685 Income taxes payable (receivable) 3,303 (39 ) Professional fees 688 982 Royalties 659 715 Other 2,479 1,971 $ 15,813 $ 11,314 |
Business Segment Information (T
Business Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Summary of Operating Segment and Asset Information | The following table summarizes operating segment information for the three and nine months ended September 30, 2017 and 2016, and asset information as of September 30, 2017 and December 31, 2016: Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Net revenues: OSUR $ 23,762 $ 23,924 $ 69,720 $ 69,050 DNAG 18,552 8,327 45,316 23,649 Total $ 42,314 $ 32,251 $ 115,036 $ 92,699 Operating income (loss): OSUR $ (453 ) $ 4,571 $ (235 ) $ 9,098 DNAG 7,772 1,573 30,312 4,094 Total $ 7,319 $ 6,144 $ 30,077 $ 13,192 Depreciation and amortization: OSUR $ 855 $ 688 $ 2,189 $ 2,003 DNAG 843 726 2,400 2,149 Total $ 1,698 $ 1,414 $ 4,589 $ 4,152 Capital expenditures: OSUR $ 1,156 $ 283 $ 2,493 $ 1,406 DNAG 739 500 969 2,106 Total $ 1,895 $ 783 $ 3,462 $ 3,512 September 30, December 31, Total assets: OSUR $ 192,298 $ 151,719 DNAG 89,961 56,216 Total $ 282,259 $ 207,935 |
Presentation of Total Net Revenues and Long-Lived Assets by Geographic Area | The following table represents total net revenues by geographic area, based on the location of the customer: Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 United States $ 29,063 $ 26,302 $ 78,871 $ 72,493 Europe 3,204 2,171 8,765 9,006 Other regions 10,047 3,778 27,400 11,200 $ 42,314 $ 32,251 $ 115,036 $ 92,699 The following table represents total long-lived assets by geographic area: September 30, December 31, United States $ 16,644 $ 15,737 Canada 4,767 4,286 Other regions 85 10 $ 21,496 $ 20,033 |
Summary of Significant Accoun19
Summary of Significant Accounting Policies - Summary of Available-for-sale Securities (Detail) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2017 | Dec. 31, 2016 | |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 101,962 | $ 11,160 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (300) | |
Fair Value | 101,662 | 11,160 |
Guaranteed Investment Certificates [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 16,039 | 11,160 |
Gross Unrealized Gains | 0 | 0 |
Fair Value | 16,039 | $ 11,160 |
Corporate Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 85,923 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | (300) | |
Fair Value | 85,623 | |
Less Than One Year [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 83,582 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | (210) | |
Fair Value | 83,372 | |
Greater Than One Year [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 18,380 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | (90) | |
Fair Value | $ 18,290 |
Summary of Significant Accoun20
Summary of Significant Accounting Policies - Additional Information (Detail) shares in Thousands | Dec. 31, 2016USD ($) | Jul. 31, 2017USD ($) | Jun. 30, 2017USD ($)Country | May 31, 2017USD ($) | Aug. 31, 2016USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Sep. 30, 2017USD ($)Suppliershares | Sep. 30, 2016USD ($)shares | Sep. 30, 2016 | Sep. 30, 2017USD ($)Suppliershares | Sep. 30, 2016USD ($)shares | Dec. 31, 2016USD ($) |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Cash and cash equivalents | $ 107,959,000 | $ 76,770,000 | $ 76,770,000 | $ 107,959,000 | |||||||||
Fair value of plan assets | 1,980,000 | 3,670,000 | 3,670,000 | 1,980,000 | |||||||||
Accumulated depreciation of property and equipment | 36,067,000 | 38,689,000 | 38,689,000 | 36,067,000 | |||||||||
Intangible Assets, Net | 10,337,000 | 8,972,000 | 8,972,000 | 10,337,000 | |||||||||
Intangible Assets, Accumulated Amortization | 1,984,000 | ||||||||||||
Intangible Assets, Foreign currency translation gains | 619,000 | ||||||||||||
Accumulated amortization of intangible assets | 15,197,000 | 18,129,000 | 18,129,000 | 15,197,000 | |||||||||
Amount of goodwill at period end | 18,793,000 | 20,257,000 | 20,257,000 | 18,793,000 | |||||||||
Revenue recognized | 0 | $ 6,114,000 | 0 | $ 12,837,000 | |||||||||
Maximum value of grant revenue from clinical and regulatory activities | $ 16,600,000 | $ 10,400,000 | |||||||||||
Initial grant revenue from clinical and regulatory activities | 7,000,000 | 1,800,000 | |||||||||||
Remaining grant revenue from clinical and regulatory activities | $ 9,600,000 | $ 8,600,000 | |||||||||||
Period of grant | 6 years | 3 years | |||||||||||
Additional contract revenue from clinical and regulatory activities | $ 1,330,000 | $ 2,600,000 | $ 7,200,000 | ||||||||||
Contract revenues from clinical and regulatory activities | 553,000 | 203,000 | 1,787,000 | 203,000 | |||||||||
Reserve for sales return and allowances | 186,000 | 217,000 | |||||||||||
Deferred revenue | 1,388,000 | 1,186,000 | 1,186,000 | 1,388,000 | |||||||||
Net foreign exchange (losses) gains | (638,000) | $ 84,000 | (1,256,000) | $ (564,000) | |||||||||
Accumulated foreign currency adjustments included in other comprehensive loss amounted | 9,338,000 | 9,338,000 | |||||||||||
Unrealized loss on marketable securities | (245,000) | (300,000) | |||||||||||
Ora Quick HIV Self Test [Member] | Bill & Melinda Gates Foundation [Member] | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Charitable support agreement term | 4 years | ||||||||||||
Number of countries in which products are sold | Country | 50 | ||||||||||||
Maximum amount of funding over the agreement period | $ 20,000,000 | ||||||||||||
Funding received per year | $ 6,000,000 | ||||||||||||
Support payments recognized in product revenue | 458,000 | 458,000 | |||||||||||
Support payments recognized in other revenue | 218,000 | $ 218,000 | |||||||||||
Charitable support agreement commencement date | 2017-06 | ||||||||||||
Money Market Fund [Member] | Level I Instruments [Member] | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Cash and cash equivalents | 83,704,000 | $ 33,633,000 | $ 33,633,000 | 83,704,000 | |||||||||
Common Stock Options Unvested Restricted Stock and Unvested Performance Units [Member] | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Number of anti-dilutive securities excluded from EPS computation | shares | 8 | 2,130 | 238 | 2,837 | |||||||||
Up Front Payment Arrangement [Member] | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Deferred revenue | $ 1,388,000 | $ 1,186,000 | $ 1,186,000 | $ 1,388,000 | |||||||||
AbbVie [Member] | Collaborative Arrangement Co-promotion [Member] | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Expiration date of rights agreement | Dec. 31, 2016 | ||||||||||||
Customer [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Percentage of concentration risk | 21.00% | ||||||||||||
Customer One [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Percentage of concentration risk | 15.00% | 14.00% | |||||||||||
Customer Two [Member] | Net Consolidated Revenue [Member] | Customer Concentration Risk [Member] | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Percentage of concentration risk | 25.00% | 19.00% | 14.00% | 19.00% | |||||||||
Customer Three [Member] | Net Consolidated Revenue [Member] | Customer Concentration Risk [Member] | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Percentage of concentration risk | 11.00% | 10.00% | |||||||||||
Purchase obligation | $ 4,000,000 | $ 4,000,000 | |||||||||||
Other [Member] | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Contract revenues from clinical and regulatory activities | $ 386,000 | $ 474,000 | $ 1,260,000 | $ 1,373,000 | |||||||||
Certificates of Deposit [Member] | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Certificates of deposit maturity date | Jan. 15, 2018 | ||||||||||||
Maximum [Member] | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Useful life of Intangible assets | 15 years | ||||||||||||
Maximum [Member] | Net Consolidated Revenue [Member] | Revenue from Rights Concentration Risk [Member] | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Percentage of concentration risk | 1.00% | ||||||||||||
Maximum [Member] | Buildings [Member] | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Estimated useful lives of assets | 40 years | ||||||||||||
Maximum [Member] | Computer Equipment [Member] | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Estimated useful lives of assets | 10 years | ||||||||||||
Maximum [Member] | Machinery and Equipment [Member] | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Estimated useful lives of assets | 10 years | ||||||||||||
Maximum [Member] | Furniture and Fixtures [Member] | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Estimated useful lives of assets | 10 years | ||||||||||||
Maximum [Member] | Certificates of Deposit [Member] | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Interest rate on certificates of deposit | 0.94% | ||||||||||||
Minimum [Member] | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Useful life of Intangible assets | 7 years | ||||||||||||
Minimum [Member] | Buildings [Member] | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Estimated useful lives of assets | 20 years | ||||||||||||
Minimum [Member] | Computer Equipment [Member] | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Estimated useful lives of assets | 2 years | ||||||||||||
Minimum [Member] | Machinery and Equipment [Member] | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Estimated useful lives of assets | 2 years | ||||||||||||
Minimum [Member] | Furniture and Fixtures [Member] | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Estimated useful lives of assets | 2 years | ||||||||||||
Minimum [Member] | Certificates of Deposit [Member] | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Interest rate on certificates of deposit | 0.86% | ||||||||||||
DNA Genotek [Member] | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Number of third-party suppliers to manufacture DNAG's products | Supplier | 2 | 2 |
Summary of Significant Accoun21
Summary of Significant Accounting Policies - Schedule of Inventories (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Inventory, Net [Abstract] | ||
Raw materials | $ 8,252 | $ 5,399 |
Work in process | 1,746 | 1,034 |
Finished goods | 6,861 | 5,366 |
Inventories | $ 16,859 | $ 11,799 |
Summary of Significant Accoun22
Summary of Significant Accounting Policies - Computations of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Earnings Per Share [Abstract] | ||||
NET INCOME | $ 5,763 | $ 6,242 | $ 23,632 | $ 12,524 |
Weighted average shares of common stock outstanding: | ||||
BASIC | 60,090 | 55,653 | 58,511 | 55,549 |
Dilutive effect of stock options, restricted stock, and performance units | 2,082 | 877 | 2,058 | 724 |
Diluted | 62,172 | 56,530 | 60,569 | 56,273 |
BASIC | $ 0.10 | $ 0.11 | $ 0.40 | $ 0.23 |
DILUTED | $ 0.09 | $ 0.11 | $ 0.39 | $ 0.22 |
Accrued Expenses - Schedule of
Accrued Expenses - Schedule of Accrued Expenses (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Accrued Liabilities, Current [Abstract] | ||
Payroll and related benefits | $ 8,684 | $ 7,685 |
Income taxes payable (receivable) | 3,303 | (39) |
Professional fees | 688 | 982 |
Royalties | 659 | 715 |
Other | 2,479 | 1,971 |
Accrued Expenses, Total | $ 15,813 | $ 11,314 |
Credit Facility - Additional In
Credit Facility - Additional Information (Detail) - USD ($) | 9 Months Ended | |
Sep. 30, 2017 | Dec. 31, 2016 | |
Line of Credit Facility [Line Items] | ||
Current borrowing capacity | $ 10,000,000 | |
Line of credit facility, collateral | Obligations under the Credit Agreement are secured by a first priority security interest in certain eligible accounts receivable, 65% of the equity of our subsidiary, DNAG, and certain related assets. | |
Borrowings | $ 0 | $ 0 |
Unused capacity commitment fee | 0.375% | |
Maturity date of credit facility | Sep. 30, 2019 | |
Maximum [Member] | ||
Line of Credit Facility [Line Items] | ||
Additional revolving commitments | $ 5,000,000 | |
Line of Credit [Member] | ||
Line of Credit Facility [Line Items] | ||
Minimum fixed charge coverage ratio | 110.00% | |
Line of Credit [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of credit, interest rate | 2.50% | |
Letter of Credit [Member] | ||
Line of Credit Facility [Line Items] | ||
Current borrowing capacity | $ 2,500,000 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Aug. 05, 2008 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Proceeds from exercise of stock options | $ 31,402,000 | $ 894,000 | |||
Income tax benefit realized from stock option exercises during period | 0 | 0 | |||
Total compensation cost | $ 5,213,000 | $ 4,438,000 | |||
Amount share repurchase program of common shares | $ 25,000,000 | ||||
Share Repurchase Program [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares purchased and retired | 0 | 423 | |||
Average price of common stock | $ 6.29 | $ 6.29 | |||
Total cost of common stock purchased and retired | $ 2,660,000 | ||||
Stock Options [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Proceeds from exercise of stock options | $ 31,402,000 | 894,000 | |||
Total compensation cost | $ 547,000 | $ 646,000 | 1,554,000 | 2,033,000 | |
Restricted Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Total compensation cost | 667,000 | 736,000 | $ 2,022,000 | $ 2,137,000 | |
Vesting of restricted shares and exercise of stock options, withholding and exercise obligations | 122,000 | 117,000 | |||
Restricted shares of common stock and stock options, aggregate values | $ 1,234,000 | $ 651,000 | |||
Performance Based Restricted Stock [Member] | Share-based Compensation Award, Tranche One [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 1 year | ||||
Performance Based Restricted Stock [Member] | Share-based Compensation Award, Tranche Two [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 3 years | ||||
Performance Based Restricted Stock Unit [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Total compensation cost | $ 368,000 | $ 114,000 | $ 1,637,000 | $ 268,000 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | Jan. 01, 2017 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 |
Income Taxes [Line Items] | |||||
INCOME TAX EXPENSE | $ 1,669,000 | $ 400,000 | $ 7,121,000 | $ 634,000 | |
Gain from settlement of litigation against Ancestry.com DNA LLC | 12,500,000 | ||||
U.S. federal or state deferred income tax expense or benefits | $ 0 | $ 0 | $ 0 | $ 0 | |
Accounting Standards Update Two Thousand Sixteen Zero Nine [Member] | |||||
Income Taxes [Line Items] | |||||
Cumulative-effect adjustment to retained earnings | $ 3,391,000 | ||||
Net impact of cumulative-effect adjustment to retained earnings | 0 | ||||
Accounting Standards Update Two Thousand Sixteen Zero Nine [Member] | Valuation Allowance, Operating Loss Carryforwards [Member] | |||||
Income Taxes [Line Items] | |||||
Cumulative-effect adjustment to retained earnings | $ 3,391,000 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) $ in Thousands | Sep. 30, 2017USD ($) |
Standby Letters of Credit [Member] | |
Contractual Obligation Fiscal Year Maturity [Line Items] | |
Standby letters of credit | $ 1,840 |
Business Segment Information -
Business Segment Information - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2017Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments of company | 2 |
Business Segment Information 29
Business Segment Information - Summary of Operating Segment and Asset Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||||
Net revenues | $ 42,314 | $ 32,251 | $ 115,036 | $ 92,699 | |
Operating income (loss) | 7,319 | 6,144 | 30,077 | 13,192 | |
Depreciation and amortization | 1,698 | 1,414 | 4,589 | 4,152 | |
Capital expenditures | 1,895 | 783 | 3,462 | 3,512 | |
Total assets | 282,259 | 282,259 | $ 207,935 | ||
OSUR [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net revenues | 23,762 | 23,924 | 69,720 | 69,050 | |
Operating income (loss) | (453) | 4,571 | (235) | 9,098 | |
Depreciation and amortization | 855 | 688 | 2,189 | 2,003 | |
Capital expenditures | 1,156 | 283 | 2,493 | 1,406 | |
Total assets | 192,298 | 192,298 | 151,719 | ||
DNAG [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net revenues | 18,552 | 8,327 | 45,316 | 23,649 | |
Operating income (loss) | 7,772 | 1,573 | 30,312 | 4,094 | |
Depreciation and amortization | 843 | 726 | 2,400 | 2,149 | |
Capital expenditures | 739 | $ 500 | 969 | $ 2,106 | |
Total assets | $ 89,961 | $ 89,961 | $ 56,216 |
Business Segment Information 30
Business Segment Information - Presentation of Total Net Revenues and Long-Lived Assets by Geographic Area (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||
Revenues | $ 42,314 | $ 32,251 | $ 115,036 | $ 92,699 | |
Long-lived assets | 21,496 | 21,496 | $ 20,033 | ||
United States [Member] | |||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||
Revenues | 29,063 | 26,302 | 78,871 | 72,493 | |
Long-lived assets | 16,644 | 16,644 | 15,737 | ||
Europe [Member] | |||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||
Revenues | 3,204 | 2,171 | 8,765 | 9,006 | |
Other Regions [Member] | |||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||
Revenues | 10,047 | $ 3,778 | 27,400 | $ 11,200 | |
Long-lived assets | 85 | 85 | 10 | ||
Canada [Member] | |||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||
Long-lived assets | $ 4,767 | $ 4,767 | $ 4,286 |