Document And Entity Information
Document And Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 26, 2016 | Jun. 30, 2015 | |
Entity Registrant Name | PDF SOLUTIONS INC | ||
Entity Central Index Key | 1,120,914 | ||
Trading Symbol | pdfs | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Accelerated Filer | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Common Stock, Shares Outstanding (in shares) | 31,211,799 | ||
Entity Public Float | $ 416.2 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 126,158,000 | $ 115,464,000 |
Accounts receivable, net of allowances of $299 and $381, respectively | $ 33,438,000 | 37,725,000 |
Deferred tax assets - current portion | 3,343,000 | |
Prepaid expenses and other current assets | $ 3,655,000 | 2,888,000 |
Total current assets | 163,251,000 | 159,420,000 |
Property and equipment, net | 11,325,000 | 8,832,000 |
Goodwill | 215,000 | 0 |
Intangible assets, net | 5,028,000 | 0 |
Deferred tax assets - long-term portion | 10,299,000 | 8,025,000 |
Other non-current assets | 1,651,000 | 1,161,000 |
Total assets | 191,769,000 | 177,438,000 |
Current liabilities: | ||
Accounts payable | 1,293,000 | 803,000 |
Accrued compensation and related benefits | 4,812,000 | 6,112,000 |
Accrued and other current liabilities | 2,382,000 | 1,733,000 |
Deferred revenues - current portion | 4,702,000 | $ 3,740,000 |
Billings in excess of recognized revenues | 1,267,000 | |
Total current liabilities | 14,456,000 | $ 12,388,000 |
Long-term income taxes payable | 2,540,000 | 2,600,000 |
Other non-current liabilities | 466,000 | 627,000 |
Total liabilities | $ 17,462,000 | $ 15,615,000 |
Commitments and contingencies (Note 5) | ||
Stockholders’ equity: | ||
Preferred stock, $0.00015 par value, 5,000 shares authorized, no shares issued and outstanding | $ 0 | $ 0 |
Common stock, $0.00015 par value, 70,000 shares authorized; shares issued 37,476 and 36,258, respectively; shares outstanding 31,111 and 31,116, respectively | 5,000 | 5,000 |
Additional paid-in capital | 266,008,000 | 248,734,000 |
Treasury stock, at cost, 6,365 and 5,142 shares, respectively | (50,383,000) | (34,048,000) |
Accumulated deficit | (39,780,000) | (52,187,000) |
Accumulated other comprehensive loss | (1,543,000) | (681,000) |
Total stockholders’ equity | 174,307,000 | 161,823,000 |
Total liabilities and stockholders’ equity | $ 191,769,000 | $ 177,438,000 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Accounts receivable, allowance | $ 299 | $ 381 |
Preferred stock, par value (in dollars per share) | $ 0.00015 | $ 0.00015 |
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.00015 | $ 0.00015 |
Common stock, shares authorized (in shares) | 70,000,000 | 70,000,000 |
Common stock, shares issued (in shares) | 37,476,000 | 36,258,000 |
Common stock, shares outstanding (in shares) | 31,111,000 | 31,116,000 |
Treasury stock shares (in shares) | 6,365,000 | 5,142,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenues: | |||
Design-to-silicon-yield solutions | $ 63,839 | $ 52,769 | $ 61,710 |
Gainshare performance incentives | 34,138 | 47,394 | 39,743 |
Total revenues | 97,977 | 100,163 | 101,453 |
Cost of Design-to-silicon-yield solutions: | |||
Direct costs of Design-to-silicon-yield solutions | $ 38,847 | 37,822 | $ 39,470 |
Impairment of deferred cost | $ 1,892 | ||
Amortization of acquired technology | $ 176 | ||
Total cost of Design-to-silicon-yield solutions | 39,023 | $ 39,714 | $ 39,470 |
Gross profit | 58,954 | 60,449 | 61,983 |
Operating expenses: | |||
Research and development | 19,096 | 14,064 | 13,314 |
Selling, general and administrative | 20,421 | 18,457 | 17,025 |
Amortization of other acquired intangible assets | $ 196 | 31 | 74 |
Restructuring charges | 57 | 197 | |
Total operating expenses | $ 39,713 | 32,609 | 30,610 |
Income from operations | 19,241 | 27,840 | 31,373 |
Interest and other income (expense), net | 181 | 119 | (64) |
Income before taxes | 19,422 | 27,959 | 31,309 |
Income tax provision | 7,015 | 9,497 | 10,380 |
Net income | $ 12,407 | $ 18,462 | $ 20,929 |
Net income per share | |||
Basic (in dollars per share) | $ 0.39 | $ 0.60 | $ 0.70 |
Diluted (in dollars per share) | $ 0.39 | $ 0.58 | $ 0.67 |
Weighted average common shares | |||
Basic (in shares) | 31,424 | 30,743 | 29,826 |
Diluted (in shares) | 32,164 | 31,939 | 31,393 |
Net income | $ 12,407 | $ 18,462 | $ 20,929 |
Other comprehensive (loss) income: | |||
Foreign currency translation adjustments, net of tax | (862) | (1,129) | 397 |
Comprehensive income | $ 11,545 | $ 17,333 | $ 21,326 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders’ Equity - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Treasury Stock [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Total |
Balances (in shares) at Dec. 31, 2012 | 29,226,000 | 4,801,000 | ||||
Balances at Dec. 31, 2012 | $ 4 | $ 220,361 | $ (27,778) | $ (91,578) | $ 51 | $ 101,060 |
Issuance of common stock in connection with employee stock purchase plan (in shares) | 184,000 | 184,000 | ||||
Issuance of common stock in connection with employee stock purchase plan | 1,317 | $ 1,317 | ||||
Issuance of common stock in connection with exercise of options (in shares) | 871,000 | 871,000 | ||||
Issuance of common stock in connection with exercise of options | $ 1 | $ 5,338 | $ 5,339 | |||
Vesting of restricted stock units (in shares) | 217,000 | |||||
Purchases of treasury stock in connection with tax withholdings on restricted stock grants (in shares) | (61,000) | 61,000 | ||||
Purchases of treasury stock in connection with tax withholdings on restricted stock grants | $ (1,283) | $ (1,283) | ||||
Issuance of treasury stock (in shares) | (14,000) | |||||
Issuance of treasury stock | $ (156) | $ 156 | ||||
Stock-based compensation expense | 6,591 | $ 6,591 | ||||
Tax benefit from employee stock plans | $ 362 | 362 | ||||
Comprehensive income | $ 20,929 | $ 397 | 21,326 | |||
Balances (in shares) at Dec. 31, 2013 | 30,437,000 | 4,848,000 | ||||
Balances at Dec. 31, 2013 | $ 5 | $ 233,813 | $ (28,905) | $ (70,649) | $ 448 | $ 134,712 |
Issuance of common stock in connection with employee stock purchase plan (in shares) | 114,000 | 114,000 | ||||
Issuance of common stock in connection with employee stock purchase plan | 1,437 | $ 1,437 | ||||
Issuance of common stock in connection with exercise of options (in shares) | 509,000 | 509,000 | ||||
Issuance of common stock in connection with exercise of options | $ 3,225 | $ 3,225 | ||||
Vesting of restricted stock units (in shares) | 350,000 | |||||
Purchases of treasury stock in connection with tax withholdings on restricted stock grants (in shares) | (100,000) | 100,000 | ||||
Purchases of treasury stock in connection with tax withholdings on restricted stock grants | $ (1,577) | (1,577) | ||||
Issuance of treasury stock (in shares) | (194,000) | 194,000 | ||||
Issuance of treasury stock | $ (3,566) | (3,566) | ||||
Stock-based compensation expense | $ 8,512 | 8,512 | ||||
Tax benefit from employee stock plans | $ 1,747 | 1,747 | ||||
Comprehensive income | $ 18,462 | $ (1,129) | 17,333 | |||
Balances (in shares) at Dec. 31, 2014 | 31,116,000 | 5,142,000 | ||||
Balances at Dec. 31, 2014 | $ 5 | $ 248,734 | $ (34,048) | $ (52,187) | $ (681) | $ 161,823 |
Issuance of common stock in connection with employee stock purchase plan (in shares) | 110,000 | 110,000 | ||||
Issuance of common stock in connection with employee stock purchase plan | 1,379 | $ 1,379 | ||||
Issuance of common stock in connection with exercise of options (in shares) | 655,000 | 655,000 | ||||
Issuance of common stock in connection with exercise of options | $ 5,039 | $ 5,039 | ||||
Vesting of restricted stock units (in shares) | 453,000 | |||||
Purchases of treasury stock in connection with tax withholdings on restricted stock grants (in shares) | (133,000) | 133,000 | ||||
Purchases of treasury stock in connection with tax withholdings on restricted stock grants | $ (1,810) | $ (1,810) | ||||
Issuance of treasury stock (in shares) | (1,090,000) | 1,090,000 | 1,089,773 | |||
Issuance of treasury stock | $ (14,525) | $ (14,525) | ||||
Stock-based compensation expense | $ 9,761 | 9,761 | ||||
Tax benefit from employee stock plans | $ 1,095 | 1,095 | ||||
Comprehensive income | $ 12,407 | $ (862) | 11,545 | |||
Balances (in shares) at Dec. 31, 2015 | 31,111,000 | 6,365,000 | ||||
Balances at Dec. 31, 2015 | $ 5 | $ 266,008 | $ (50,383) | $ (39,780) | $ (1,543) | $ 174,307 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Operating activities: | |||
Net income | $ 12,407,000 | $ 18,462,000 | $ 20,929,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 2,646,000 | 2,010,000 | 1,385,000 |
Stock-based compensation expense | 9,756,000 | $ 8,547,000 | $ 6,693,000 |
Accrued contingent earn-out payments | $ 500,000 | ||
Impairment of deferred cost | $ 1,892,000 | ||
Amortization of acquired intangible assets | $ 372,000 | 31,000 | $ 74,000 |
Deferred taxes | 1,563,000 | 2,886,000 | 5,539,000 |
Tax withholdings related to net share settlements of restricted stock awards and units | (1,810,000) | (1,577,000) | (1,283,000) |
Provision for (reversal of) doubtful accounts | (82,000) | 27,000 | $ 3,000 |
Unrealized loss on foreign currency forward contract | 12,000 | 50,000 | |
Loss (gain) on disposal of assets | 2,000 | (242,000) | $ (7,000) |
Tax benefit related to stock-based compensation expense | 1,095,000 | 1,747,000 | 362,000 |
Excess tax benefit from stock-based compensation expense | (1,034,000) | (1,635,000) | (353,000) |
Changes in operating assets and liabilities, net of acquisition effects: | |||
Accounts receivable, net of allowances | 4,373,000 | (2,892,000) | (636,000) |
Prepaid expenses and other assets | (1,081,000) | (657,000) | (1,053,000) |
Accounts payable | (684,000) | (1,516,000) | (566,000) |
Accrued compensation and related benefits | (1,353,000) | (1,421,000) | (3,216,000) |
Accrued and other liabilities | 166,000 | 7,000 | (913,000) |
Deferred revenues | 411,000 | 1,713,000 | (1,131,000) |
Billings in excess of recognized revenues | 1,267,000 | (343,000) | (464,000) |
Net cash provided by operating activities | $ 28,526,000 | 27,089,000 | $ 25,363,000 |
Investing activities: | |||
Proceeds from the sale of property and equipment | 285,000 | ||
Purchases of property and equipment | $ (4,784,000) | $ (3,958,000) | $ (4,628,000) |
Purchases of intangible asset | (400,000) | ||
Payments for business acquisitions, net of cash acquired | (5,152,000) | ||
Net cash used in investing activities | (10,336,000) | $ (3,673,000) | $ (4,628,000) |
Financing activities: | |||
Payments of obligations assumed in business acquisition | (347,000) | ||
Exercise of stock options | 5,039,000 | $ 3,225,000 | $ 5,339,000 |
Proceeds from employee stock purchase plan | 1,379,000 | 1,437,000 | 1,317,000 |
Purchases of treasury stock | (14,525,000) | (3,566,000) | |
Excess tax benefit from stock-based compensation expense | 1,034,000 | 1,635,000 | 353,000 |
Net cash (used in) provided by financing activities | (7,420,000) | 2,731,000 | 7,009,000 |
Effect of exchange rate changes on cash and cash equivalents | (76,000) | (54,000) | (10,000) |
Net increase in cash and cash equivalents | 10,694,000 | 26,093,000 | 27,734,000 |
Cash and cash equivalents, beginning of year | 115,464,000 | 89,371,000 | 61,637,000 |
Cash and cash equivalents, end of year | 126,158,000 | 115,464,000 | 89,371,000 |
Supplemental disclosure of cash flow information: | |||
Taxes | 4,983,000 | $ 4,222,000 | $ 4,747,000 |
Interest | 16,000 | ||
Property and equipment received and accrued in accounts payable and accrued and other liabilities | $ 224,000 | $ 212,000 | $ 312,000 |
Note 1 - Business and Significa
Note 1 - Business and Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Business Description and Accounting Policies [Text Block] | 1. Business and Significant Accounting Policies PDF Solutions, Inc. (the “Company” or “PDF”), provides infrastructure technologies and services to improve yield and optimize performance of integrated circuits. The Company’s approach includes manufacturing simulation and analysis, combined with yield improvement methodologies to increase product yield and performance. Basis of Presentation Use of Estimates Concentration of Credit Risk The Company primarily sells its technologies and services to companies in Asia, Europe and North America within the semiconductor industry. As of December 31, 2015, three customers accounted for 66% of the Company’s gross accounts receivable and 72% of the Company’s revenues for 2015. As of December 31, 2014, three customers accounted for 80% of the Company’s gross accounts receivable and 79% of the Company’s revenues for 2014. See Note 9 for further details. The Company does not require collateral or other security to support accounts receivable. To reduce credit risk, management performs ongoing credit evaluations of its customers’ financial condition. The Company maintains allowances for potential credit losses. The allowance for doubtful accounts, which was based on management’s best estimates, could be adjusted in the near term from current estimates depending on actual experience. Such adjustments could be material to the consolidated financial statements. Cash, Cash Equivalents and Short-term Investments Property and Equipment Computer equipment (years) 3 Software (years) 3 Furniture, fixtures, and equipment (years) 5 - 7 Leasehold improvements Shorter of estimated useful life or term of lease Long-lived Assets . Goodwill Revenue Recognition Design-to-silicon-yield solutions — Revenues that are derived from Design-to-silicon-yield solutions come from services and software licenses. The Company recognizes revenue for each element of Design-to-silicon-yield solutions as follows: The Company generates a significant portion of its Design-to-silicon-yield solutions revenue from fixed-price solution implementation service contracts delivered over a specific period of time. These contracts require reliable estimation of costs to perform obligations and the overall scope of each engagement. Revenue under project–based contracts for solution implementation services is recognized as services are performed using the cost-to-cost percentage of completion method of contract accounting. Losses on fixed-price solution implementation contracts are recognized in the period when they become probable. Revisions in profit estimates are reflected in the period in which the conditions that require the revisions become known and can be estimated. Revenue under time and materials contracts for solution implementation services are recognized as the services are performed. On occasion, the Company licenses its software products as a component of its fixed-price service contracts. In such instances, the software products are licensed to customers over a specified term of the agreement with support and maintenance to be provided at each customer's option over the license term. The amount of product and service revenue recognized in a given period is affected by the Company’s judgment as to whether an arrangement includes multiple deliverables and, if so, the Company’s determination of the fair value of each deliverable. In general, vendor-specific objective evidence of selling price (“VSOE”) does not exist for the Company’s solution implementation services and software products and because the Company’s services and products include our unique technology, the Company is not able to determine third-party evidence of selling price (“TPE”). Therefore, in such circumstances the Company uses best estimated selling prices (“BESP”) in the allocation of arrangement consideration. In determining BESP, the Company applies significant judgment as the Company’s weighs a variety of factors, based on the facts and circumstances of the arrangement. The Company typically arrives at BESP for a product or service that is not sold separately by considering company-specific factors such as geographies, internal costs, gross margin objectives, pricing practices used to establish bundled pricing, and existing portfolio pricing and discounting. After fair value is established for each deliverable, the total transaction amount is allocated to each deliverable based upon its relative fair value. Fees allocated to solution implementation services are recognized using the cost-to-cost percentage of completion method of contract accounting. Fees allocated to software and related support and maintenance are recognized under software revenue recognition guidance. The Company defers certain pre-contract costs incurred for specific anticipated contracts. Deferred costs consist primarily of direct costs to provide solution implementation services in relation to the specific anticipated contracts. The Company recognizes such costs as a component of cost of revenues, the timing of which is dependent upon persuasive evidence of contract arrangement assuming all other revenue recognition criteria are met. At the end of the reporting period, the Company evaluates its deferred costs for their probable recoverability. The Company recognizes impairment of deferred costs when it is determined that the costs no longer have future benefits and are no longer recoverable. Deferred costs balance was zero and $0.1 million as of December 31, 2015 and December 31, 2014, respectively. The balance was included in prepaid expenses and other current assets in the accompanying consolidated balance sheets. During the year ended December 31, 2014, the Company impaired $1.9 million of deferred pre-contract costs for two contracts with a customer as it was determined that the costs were no longer recoverable. The impairment charges were recorded in the impairment of deferred costs in the accompanying consolidated statements of operations and comprehensive income. The Company also licenses its software products separately from its solution implementations. For software license arrangements that do not require significant modification or customization of the underlying software, software license revenue is recognized under the residual method when (l) persuasive evidence of an arrangement exists, (2) delivery has occurred, (3) the fee is fixed or dete1minable, (4) collectability is probable, and (5) the arrangement does not require services that are essential to the functionality of the software. When arrangements include multiple elements such as support and maintenance, consulting (other than for its fixed price solution implementations), installation, and training, revenue is allocated to each element of a transaction based upon its fair value as determined by the Company's VSOE and such services are recorded as services revenue. VSOE for maintenance is generally established based upon negotiated renewal rates while VSOE for consulting, installation, and training services is established based upon the Company's customary pricing for such services when sold separately. When software is licensed for a specified term, fees for support and maintenance are generally bundled with the license fee over the entire term of the contract. The Company is unable to establish VSOE of fair value for maintenance services that are generally bundled with term licenses. In these cases, the Company recognizes revenue ratably over the term of the contract. Revenue from Software-as-a-Service (SaaS) that allow for the use of a hosted software product or service over a contractually determined period of time without taking possession of software are accounted for as subscriptions and recognized as revenue ratably over the coverage period beginning on the date the service is made available to customers. Revenue for software licenses with extended payment terms is not recognized in excess of amounts due. For software license arrangements that require significant modification or customization of the underlying software, the software license revenue is recognized as services are performed using the cost-to-cost percentage of completion method of contract accounting, and such revenue is recorded as services revenue. Deferred revenues consist substantially of amounts invoiced in advance of revenue recognition and is recognized as the revenue recognition criteria are met. Deferred revenues that will be recognized during the succeeding 12 month period is recorded as current deferred revenues and the remaining portion is recorded as non- current deferred revenues. Non-current portion of deferred revenue was both $0.3 million as of December 31, 2015 and 2014. This balance was recorded in the other non-current liabilities in the accompanying consolidated balance sheets. Gainshare Performance Incentives — When the Company enters into a contract to provide yield improvement services, the contract usually includes two components: (1) a fixed fee for performance by the Company of services delivered over a specific period of time; and (2) a Gainshare performance incentive component where the customer may pay a contingent variable fee, usually after the fixed fee period has ended. Revenue derived from Gainshare performance incentives represents profit sharing and performance incentives earned contingent upon the Company’s customers reaching certain defined operational levels established in related solution implementation service contracts. Gainshare performance incentives periods are usually subsequent to the delivery of all contractual services and therefore have no cost to the Company. Due to the uncertainties surrounding attainment of such operational levels, the Company recognizes Gainshare performance incentives revenue (to the extent of completion of the related solution implementation contract) upon receipt of performance reports or other related information from the customer supporting the determination of amounts and probability of collection. Accounts Receivable Allowance for doubtful accounts are summarized below: Balance at Beginning of Period Charged to Costs and Expenses Deductions/ Write-offs of Accounts Balance at End of Period Allowance for doubtful accounts 2015 $ 381 $ — $ 82 $ 299 2014 $ 354 $ 27 $ — $ 381 2013 $ 351 $ 3 $ — $ 354 Software Development Costs Research and Development Stock-Based Compensation Income Taxes Net Income Per Share – Foreign Currency Translation Derivative Financial Instruments Litigation Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. (“ASU”) 2014-09, Revenue from Contracts with Customers, as a new Topic, Accounting Standards Codification (“ASC”) Topic 606. The new revenue recognition standard provides a five-step analysis of transactions to determine when and how revenue is recognized. The core principle is that a company 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. This new standard is effective for annual periods beginning after December 15, 2016, including interim periods within that reporting period, and shall be applied retrospectively to each period presented or as a cumulative-effect adjustment as of the date of adoption. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606), deferring the effective date of ASU 2014-09 by one year. The provision of ASU 2014-09 are effective for annual periods beginning after December 15, 2017, including interim periods within that reporting period. The FASB also agreed to allow entities to choose to adopt the standard as of the original effective date. We are currently assessing the adoption date and potential impact of adopting this standard on our financial statements and related disclosures. In August 2014, the FASB issued ASU No. 2014-15, “Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern”. The new standard provides guidance around management's responsibility to evaluate whether there is substantial doubt about an entity's ability to continue as a going concern and to provide related footnote disclosures. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. Early adoption is permitted. The adoption of this standard is not expected to have a material impact on our financial statements. In April 2015, the FASB issued ASU No. 2015-05, “Intangibles - Goodwill and Other Internal-Use Software”. The amendments in this update provide guidance to customers about whether a cloud computing arrangement includes a software license, and if so, how the software license element of the arrangement should be accounted for by the customer. The new standard is effective for annual period ending after December 15, 2015, and all reporting periods thereafter. The adoption of this standard did not have a material impact on our financial statements. In September 2015, the FASB issued ASU No. 2015-16, “Business Combinations: Simplifying the Accounting for Measurement-Period Adjustments”. The new standard simplifies how adjustments are made to provisional amounts recognized in a business combination during the measurement period. We were required to adopt ASU 2015-16 on January 1, 2016. The Company early adopted this standard during the period ended September 30, 2015. The effect of early adoption of this standard on our financial position, results of operations, and disclosures is immaterial. In November 2015, the FASB issued ASU 2015-17, “Balance Sheet Classification of Deferred Taxes.” Under this new guidance, deferred tax liabilities and assets should be classified as noncurrent in a classified balance sheet. The update is effective for annual period beginning after December 15, 2016, and interim periods within those annual periods. Early adoption is permitted as of the beginning of any interim or annual reporting period. Additionally, this guidance may be applied either prospectively or retrospectively to all periods presented. The Company early adopted this standard as of December 31, 2015 using the prospective method. See Note 7, Income Taxes, for additional information. |
Note 2 - Business Combinations
Note 2 - Business Combinations | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Business Combination Disclosure [Text Block] | 2. Business Combinations On July 17, 2015, the Company completed its acquisition of Syntricity, Inc. (“Syntricity”), a provider of a hosted solution for characterization and yield management, by acquiring all issued and outstanding common shares of Syntricity, pursuant to an Agreement and Plan of Merger dated July 9, 2015 between the Company and Syntricity. The Company believes that the acquisition will expand the overall capabilities of its manufacturing software solutions offerings. The aggregate consideration paid for the acquisition consisted of approximately $5.2 million in cash, net of cash acquired of $0.1 million. Of the cash consideration paid, $0.8 million is being held in escrow to secure indemnification obligations. The Company also agreed to pay earn-out consideration of up to $2.5 million in cash through July 17, 2017, contingent upon the achievement of certain financial and non-financial targets. Out of a total of $2.5 million, $0.8 million will be paid to the former shareholders of Syntricity if and when the targets are met. The Company has determined that such contingent consideration requires Level 3 classification, because the liabilities have no public active market or observable inputs. As of the acquisition date and December 31, 2015, the Company has not accrued any additional consideration payable to the former shareholders of Syntricity based on the probability of achievement of the earn-out targets. The remaining $1.7 million will be paid to employees and considered a post-combination expense if and when the financial and non- financial targets and service conditions are met. As of December 31, 2015, the employees earned and the Company recognized $0.5 million as a post-combination expense in its consolidated statements of operations and comprehensive income. As of December 31, 2015, $0.5 million was not earned and expired. The fair value assigned to identifiable intangible assets acquired was based on estimates and assumptions made by management at the time of acquisition. As additional information becomes available, such as finalization of tax related matters, the Company may revise its preliminary purchase price allocation. The excess of purchase consideration over the fair value of net tangible and identifiable intangible assets acquired was recorded as goodwill. The goodwill recorded from this acquisition represents business benefits the Company anticipates realizing from optimizing resources and new and expanded opportunities. The goodwill balance is not deductible for U.S. income tax purposes. The Company incurred $0.8 million in acquisition-related costs which were recorded in general and administrative expenses for the twelve months ended December 31, 2015. The results of operations and the provisional fair values of the acquired assets and liabilities assumed have been included in the accompanying consolidated financial statements since the Syntricity acquisition date. Revenues and expenses from Syntricity were not material for the period ended December 31, 2015. Pro forma results of operations have not been presented because the effect of the acquisition was not material to our financial results. The following table summarizes the allocation of the purchase price to the fair value of the tangible and intangible assets acquired and liabilities assumed as of the acquisition date: (in thousands) Amortization period (years Consideration Cash $ 5,264 Fair value of total consideration transferred $ 5,264 Recognized amounts of identifiable assets acquired and liabilities assumed Cash and cash equivalents $ 112 Accounts receivable and other assets 208 Deferred tax assets, net 261 Identifiable intangible assets: Customer relationship 2,500 9 Developed technology 2,300 6 Tradename 100 2 Backlog 100 1 Property and equipment 378 Accounts payable and other liabilities (818 ) Debt obligations assumed (347 ) Total identifiable net assets 4,794 Goodwill 470 $ 5,264 |
Note 3 - Property and Equipment
Note 3 - Property and Equipment | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Property, Plant and Equipment Disclosure [Text Block] | 3. Property and Equipment Property and equipment consist of (in thousands): December 31, 2015 2014 Computer equipment $ 9,188 $ 9,817 Software 1,713 3,369 Furniture, fixtures, and equipment 907 756 Leasehold improvements 1,126 1,127 Test equipment 7,214 6,401 Construction-in-progress 4,777 2,405 24,925 23,875 Accumulated depreciation (13,600 ) (15,043 ) Total $ 11,325 $ 8,832 Depreciation and amortization expense for years ended December 31, 2015, 2014 and 2013 was $2.6 million, $2.0 million and $1.4 million, respectively. |
Note 4 - Goodwill and Intangibl
Note 4 - Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Goodwill and Intangible Assets Disclosure [Text Block] | 4 . Goodwill and Intangible Assets As of December 31, 2015 and December 31, 2014, the carrying amount of goodwill was $0.2 million and zero, respectively. The goodwill balance as of December 31, 2015 was the result of the acquisition of Syntricity. The following is a rollforward of the Company's goodwill balance (in thousands): December 31, 2015 Balance as of December 31, 2014 $ - Add: Goodwill from acquisition 470 Goodwill adjustment (255 ) Balance as of December 31, 2015 $ 215 The changes in initial fair values of acquired assets and liabilities as a result of obtaining the necessary information reflected in the table above represents a change to the acquired deferred tax assets related to Syntricity acquisition. Intangible assets balance was $5.0 million and zero as of December 31, 2015 and December 31, 2014, respectively. Intangible assets as of December 31, 2015 consist of the following (in thousands): December 31, 2015 December 31, 2014 Amortization Period (Years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Acquired identifiable intangibles: Customer relationships 1 - 9 $ 5,920 $ (3,547 ) $ 2,373 $ 3,420 $ (3,420 ) - Developed technology 4 - 6 14,100 (11,976 ) 2,124 11,800 (11,800 ) - Tradename 2 - 4 610 (533 ) 77 510 (510 ) - Backlog 1 100 (46 ) 54 - - - Patent 7 - 10 1,800 (1,400 ) 400 1,400 (1,400 ) - Other acquired intangibles 4 255 (255 ) - 255 (255 ) - Total $ 22,785 $ (17,757 ) $ 5,028 $ 17,385 $ (17,385 ) - The weighted average amortization period for acquired identifiable intangible assets was 7.20 years as of December 31, 2015. Intangible asset amortization expense for years ended December 31, 2015, 2014 and 2013 was $0.4 million, $31,000 and $74,000, respectively. The Company expects annual amortization of acquired identifiable intangible assets to be as follows (in thousands): Year Ending December 31, 2016 805 2017 728 2018 701 2019 701 2020 701 2021 and Thereafter 1,392 Total future amortization expense $ 5,028 Intangible assets are amortized over their useful lives unless these lives are determined to be indefinite. Intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable. During year ended December 31, 2015, there were no indicators of impairment related to the Company’s intangible assets. |
Note 5 - Commitments and Contin
Note 5 - Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | 5. Commitments and Contingencies Leases Future minimum lease payments under noncancelable operating leases at December 31, 2015 are as follows (in thousands): Year Ending December 31, 2016 $ 1,850 2017 1,420 2018 806 2019 71 2020 18 2021 and thereafter 61 Total future minimum lease payments $ 4,226 Indemnifications Purchase obligations Indemnification of Officers and Directors In addition, the Bylaws of the Company provide that the Company is required to indemnify its officers and directors even when indemnification would otherwise be discretionary, and the Company is required to advance expenses to its officers and directors as incurred in connection with proceedings against them for which they may be indemnified. The Company has entered into indemnification agreements with its officers and directors containing provisions that are in some respects broader than the specific indemnification provisions contained in the Delaware general corporation law. The indemnification agreements require the Company to indemnify its officers and directors against liabilities that may arise by reason of their status or service as officers and directors other than for liabilities arising from willful misconduct of a culpable nature, to advance their expenses incurred as a result of any proceeding against them as to which they could be indemnified, and to obtain directors’ and officers’ insurance if available on reasonable terms. The Company has obtained directors’ and officers’ liability insurance in amounts comparable to other companies of the Company’s size and in the Company’s industry. Since a maximum obligation of the Company is not explicitly stated in the Company’s Bylaws or in its indemnification agreements and will depend on the facts and circumstances that arise out of any future claims, the overall maximum amount of the obligations cannot be reasonably estimated. Litigation |
Note 6 - Stockholders' Equity
Note 6 - Stockholders' Equity | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Shareholders' Equity and Share-based Payments [Text Block] | 6. Stockholders’ Equity Stock-based compensation expenses related to the Company’s employee stock purchase plan and stock plans were allocated as follows (in thousands): Years Ended December 31, 2015 2014 2013 Cost of Design-to-silicon-yield solutions $ 3,914 $ 3,419 $ 2,736 Research and development 2,275 1,709 1,583 Selling, general and administrative 3,567 3,419 2,374 Stock-based compensation expense $ 9,756 $ 8,547 $ 6,693 The stock-based compensation expense for the year ended December 31, 2015, 2014, and 2013 in the table above includes expense related to cash-settled stock appreciation rights (“SARs”) granted to certain employees which totaled to a credit of $(5,000), an expense of $34,000 and an expense of $102,000, respectively. The Company accounted for these awards as a liability and the amount was included in accrued compensation and related benefits. Stock-based compensation is estimated at the grant date based on the award’s fair value and is recognized on a straight-line basis over the vesting periods, generally four years. As stock-based compensation expense recognized is based on awards ultimately expected to vest, it has been reduced for estimated forfeitures. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. The Company has elected to use the Black-Scholes-Merton option-pricing model, which incorporates various assumptions including volatility, expected life and interest rates. The expected volatility is based on the historical volatility of the Company’s common stock over the most recent period commensurate with the estimated expected life of the Company’s stock options. The expected life of an award is based on historical experience and on the terms and conditions of the stock awards granted to employees. The interest rate assumption is based upon observed Treasury yield curve rates appropriate for the expected life of the Company’s stock options. The fair value of equity awards granted was estimated on the date of grant with the following weighted average assumptions: Stock Plans Employee Stock Purchase Plan 2015 2014 2013 2015 2014 2013 Expected life (in years) 4.5 4.6 4.8 1.25 1.25 1.25 Volatility 45.8 % 44.0 % 54.1 % 50.1 % 33.4 % 45.3 % Risk-free interest rate 1.37 % 1.54 % 1.03 % 0.34 % 0.21 % 0.19 % Expected dividend — — — — — — On December 31, 2015, the Company had in effect the following stock-based compensation plans: Stock Plans In 2001, the Company adopted a 2001 Stock Plan (the “2001 Plan”). In 2003, in connection with its acquisition of IDS Systems Inc., the Company assumed IDS’ 2001 Stock Option / Stock Issuance Plan (the “IDS Plan”). Both of the 2001 and the IDS Plans expired in 2011. Stock options granted under the 2001 and IDS Plans generally expire ten years from the date of grant and become vested and exercisable over a four-year period. Although no new awards may be granted under the 2001 or IDS Plans, awards made under the 2001 and IDS Plans that are currently outstanding remain subject to the terms of each such plan. As of December 31, 2015, 7.0 million shares of common stock were reserved to cover stock-based awards under the 2011 Plan, of which 3.2 million shares were available for future grant. The number of shares reserved and available under the 2011 Plan includes 0.4 million shares that were subject to awards previously made under the 2001 Plan and were forfeited, expired or repurchased by the Company after adoption of the 2011 Plan through December 31, 2015. As of December 31, 2015, there were no outstanding awards that had been granted outside of the 2011, 2001 or the IDS Plans (collectively, the "Stock Plans"). Additional information with respect to options under the Plans is as follows: Outstanding Options Number of Options (in thousands) Weighted Average Exercise Price per Share Weighted Average Remaining Contractual Term (years) Aggregate Intrinsic Value (in thousands) Outstanding, January 1, 2013 3,810 6.91 Granted (weighted average fair value of $7.75 per share) 77 17.12 Exercised (871 ) 6.13 Canceled (114 ) 8.76 Expired (22 ) 5.98 Outstanding, December 31, 2013 2,880 7.35 Granted (weighted average fair value of $6.66 per share) 28 17.40 Exercised (509 ) 6.33 Canceled (40 ) 10.03 Expired (7 ) 7.41 Outstanding, December 31, 2014 2,352 7.65 Granted (weighted average fair value of $5.45 per share) 93 13.88 Exercised (655 ) 7.70 Canceled (23 ) 12.95 Expired (3 ) 12.91 Outstanding, December 31, 2015 1,764 7.88 5. 14 $ 6,210 Vested and expected to vest, December 31, 2015 1,754 7.84 5. 12 $ 6,207 Exercisable, December 31, 2015 1,560 7.29 4.77 $ 6,040 The aggregate intrinsic value in the table above represents the total intrinsic value based on the Company’s closing stock price of $10.84 as of December 31, 2015, which would have been received by the option holders had all option holders exercised their options as of that date. The total intrinsic value of options exercised during the year ended December 31, 2015, 2014 and 2013 was $6.2 million, $6.7 million and $11.9 million. As of December 31, 2015, there was $1.0 million of total unrecognized compensation cost, net of forfeitures, related to unvested stock options. That cost is expected to be recognized over a weighted average period of 1.93 years. The total fair value of options vested during the year ended December 31, 2015 was $1.5 million. Nonvested shares (restricted stock units) were as follows: Shares (in thousands) Weighted- Average Grant-Date Fair Value Nonvested, January 1, 2013 450 7.97 Granted 562 18.25 Vested (217 ) 11.01 Forfeited (36 ) 11.08 Nonvested, December 31, 2013 759 14.44 Granted 569 19.42 Vested (350 ) 14.43 Forfeited (37 ) 18.00 Nonvested, December 31, 2014 941 17.38 Granted 720 15.92 Vested (453 ) 15.97 Forfeited (42 ) 17.27 Nonvested, December 31, 2015 1,166 17.03 As of December 31, 2015, there was $17.4 million of total unrecognized compensation cost related to restricted stock rights. That cost is expected to be recognized over a weighted average period of 2.67 years. Restricted stock units do not have rights to dividends prior to vesting. Employee Stock Purchase Plan Stock Repurchase Program |
Note 7 - Income Taxes
Note 7 - Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 7. Income Taxes Year Ended December 31, 2015 2014 2013 (In thousands) U.S. Current $ 2,022 $ 3,032 $ 719 Deferred 1,549 2,882 5,432 Foreign Current 341 476 291 Withholding 3,089 3,103 3,830 Deferred 14 4 108 Total provision $ 7,015 $ 9,497 $ 10,380 During the years ended December 31, 2015, 2014 and 2013, income before taxes from U.S. operations was $17.7 million, $26.2 million and $29.6 million, respectively, and income before taxes from foreign operations was $1.7 million, $1.8 million and $1.7 million, respectively. The income tax provision differs from the amount estimated by applying the statutory federal income tax rate (35%) for the following reasons (in thousands): Year Ended December 31, 2015 2014 2013 Federal statutory tax provision $ 6,798 $ 9,786 $ 10,958 State tax provision 465 56 581 Stock compensation expense 677 540 393 Tax credits (4,166 ) (3,924 ) (5,424 ) Foreign tax, net 3,111 3,170 3,884 Change in valuation allowance — — — Other 130 (131 ) (12 ) Tax provision $ 7,015 $ 9,497 $ 10,380 As of December 31, 2015, the Company had Federal and California net operating loss carry-forwards (“NOLs”) of approximately $3.6 million and $8.4 million. The Federal and California NOLs begin expiring after 2019 and 2016, respectively. The Company’s 2012 tax provision did not include the benefit of the 2012 federal R&D credit. On January 2, 2013, the President of the United States signed into law The American Taxpayer Relief Act of 2012. Under prior U.S. law, a taxpayer was entitled to a research tax credit for qualifying amounts paid or incurred on or before December 31, 2011. The 2012 Taxpayer Relief Act extended the research tax credit for two years to December 31, 2013. The extension of the research tax credit was retroactive to January 1, 2012 and included amounts paid or incurred after December 31, 2011. As of December 31, 2015, the Company had federal and state research and experimental and other tax credit (“R&D credits”) carry-forwards of approximately $9.4 million and $13.6 million, respectively. The federal credits begin to expire after 2025, while the California credits have no expiration. The extent to which the federal and state credit carry forwards can be used to offset future tax liabilities, respectively, may be limited, depending on the extent of ownership changes within any three-year period as provided in the Tax Reform Act of 1986 and the California Conformity Act of 1987. The Company assesses its deferred tax assets for recoverability on a regular basis, and where applicable, a valuation allowance is recorded to reduce the total deferred tax asset to an amount that will, more likely than not, be realized in the future. As of December 31, 2015 and 2014, we believe that most of our deferred tax assets are “more-likely-than not” to be realized with the exception of California R&D tax credits that have not met the “more-likely-than not” realization threshold criteria because on an annual basis and pursuant to current law, we generate more California credits than California tax. As a result, at December 31, 2015 and 2014, the excess credits of $6.0 million and $5.4 million, respectively continued to be subject to a full valuation allowance. In addition, the Company acquired Syntricity on July 17, 2015. Syntricity had approximately $0.2 million of California NOL tax credits on the date of acquisition. The Company evaluated positive and negative evidence and concluded that it was more likely than not that the California NOL would not be fully realizable. As a result of management’s evaluation, the Company recorded full valuation allowance against this deferred tax assets. The Company will continue to review its deferred tax assets in accordance with the applicable accounting standards. Net deferred tax assets balance as of December 31, 2015 and 2014 was $10.3 million and $11.3 million, respectively. The Company early adopted ASU 2015-17, “Balance Sheet Classification of Deferred Taxes.” as of December 31, 2015 using the prospective method and classified all deferred tax assets and liabilities as non-current in the accompanying balance sheet. The balance as of December 31, 2015 consists of $10.3 million net deferred tax assets-long-term portion. The balance as of December 31, 2014 consists of $3.3 million net deferred tax assets-current portion and $8.0 million net deferred tax assets-long-term portion. Tax attributes related to stock option windfall deductions are not recorded until they result in a reduction of cash tax payable. Federal tax credits and state net operating losses from windfall deductions were excluded from the deferred tax asset balance as of December 31, 2015. As of December 31, 2015, the benefit of the federal credits and state net operating loss deferred tax assets of $4.8 million and $63,000, respectively, will be recorded to additional paid-in capital when they reduce cash taxes payable. As of December 31, 2014, the excluded windfall deductions for federal and state purposes were $5.1 million and $66,000, respectively. The components of the net deferred tax assets are comprised of (in thousands): December 31, 2015 2014 Deferred tax assets Net operating loss carry forward $ 1,895 $ 533 Research and development and other credit carry forward 5,995 5,438 Foreign tax credit carry forward — 1 Accruals deductible in different periods 3,046 3,021 Intangible assets 3,078 5,555 Stock-based compensation 2,474 2,861 Valuation allowance (6,205 ) (5,433 ) Subtotal $ 10,283 $ 11,976 Deferred tax liabilities Fixed assets 10 (632 ) Net Deferred tax assets $ 10,293 $ 11,344 In accordance with the provisions of the accounting standard relating to accounting for uncertain tax positions, the Company classifies its liabilities for income tax exposures as long-term. The Company includes interest and penalties related to unrecognized tax benefits within the Company’s income tax provision. As of December 31, 2015 and 2014, the Company had accrued interest and penalties related to unrecognized tax benefits of $495,000 and $467,000, respectively. In the years ended December 31, 2015, 2014 and 2013, the Company recognized charges (credits) for interest and penalties related to unrecognized tax benefits in the consolidated statements of operations of $28,000, $1,000 and $39,000, respectively. The Company’s total amount of unrecognized tax benefits, excluding interest and penalties, as of December 31, 2015 was $11.0 million, of which $6.5 million, if recognized, would impact the Company’s effective tax rate. The Company’s total amount of unrecognized tax benefits, excluding interest and penalties, as of December 31, 2014 was $10.4 million, of which $6.3 million, if recognized, would affect the Company's effective tax rate. As of December 31, 2015, the Company has recorded unrecognized tax benefits of $2.5 million, including interest and penalties, as long-term income taxes payable in its consolidated balance sheet. The remaining $8.9 million has been recorded net of our deferred tax assets, of which $4.4 million is subject to a full valuation allowance. The Company does not expect the change in unrecognized tax benefits over the next twelve months to materially impact its results of operations and financial position. The Company conducts business globally and, as a result, files numerous consolidated and separate income tax returns in the U.S. federal, various state and foreign jurisdictions. Because the Company used some of the tax attributes carried forward from previous years to tax years that are still open, statutes of limitation remain open for all tax years to the extent of the attributes carried forward into tax year 2002 for federal and California tax purposes. The state of New York is currently conducting an audit of the Company’s prior income tax returns. The Company is not subject to income tax examinations in any other of its major foreign subsidiaries’ jurisdictions. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands): Amount Gross unrecognized tax benefits, January 1, 2013 $ 9,553 Increases in tax positions for current year 1,052 Increase in tax positions for prior years — Lapse in statute of limitations (389 ) Gross unrecognized tax benefits, December 31, 2013 10,216 Increases in tax positions for current year 809 Increases in tax positions for prior years — Lapse in statute of limitations (597 ) Gross unrecognized tax benefits, December 31, 2014 10,428 Increases in tax positions for current year 720 Increases in tax positions for prior years 162 Lapse in statute of limitations (331 ) Gross unrecognized tax benefits, December 31, 2015 $ 10,979 Undistributed earnings of the Company’s foreign subsidiaries of $5.6 million are considered to be indefinitely reinvested and accordingly, no provision for federal and state income taxes has been provided thereon. Determination of the amount of unrecognized deferred tax liability related to these earnings is not practicable at this time. Valuation allowance for deferred tax assets is summarized: Balance at Beginning of Period Charged to Costs and Expenses Balance assumed in acquisition Deductions/ Write-offs of Accounts Balance at End of Period Valuation allowance for deferred tax assets 2015 $ 5,433 $ 557 $ 215 $ — $ 6,205 2014 5,087 346 — — 5,433 2013 4,708 379 — — 5,087 |
Note 8 - Net Income Per Share
Note 8 - Net Income Per Share | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | 8 . Net Income Per Share Basic net income per share is computed by dividing net income by weighted average number of common shares outstanding for the period (excluding outstanding stock options and shares subject to repurchase). Diluted net income per share is computed using the weighted-average number of common shares outstanding for the period plus the potential effect of dilutive securities which are convertible into common shares (using the treasury stock method), except in cases in which the effect would be anti-dilutive. Under the treasury stock method, the amount that the employee must pay for exercising stock options, the amount of compensation cost for future service that the Company has not yet recognized, and the amount of the tax benefits that would be recorded in additional paid-in capital when the award becomes deductible are assumed to be used to repurchase shares. The following is a reconciliation of the numerators and denominators used in computing basic and diluted net income per share (in thousands except per share amount): Year Ended December 31, 2015 2014 2013 Numerator: Net income $ 12,407 $ 18,462 $ 20,929 Denominator: Basic weighted-average shares outstanding 31,424 30,743 29,826 Effect of dilutive options and restricted stock 740 1,196 1,567 Diluted weighted-average shares outstanding 32,164 31,939 31,393 Net income per share - Basic $ 0.39 $ 0.60 $ 0.70 Net income per share - Diluted $ 0.39 $ 0.58 $ 0.67 The following table sets forth potential shares of common stock that are not included in the diluted net loss per share calculation above because to do so would be anti-dilutive for the periods indicated (in thousands): December 31, 2015 2014 Outstanding options 127 61 Nonvested shares of restricted stock units 714 19 Employee Stock Purchase Plan 255 50 Total 1,096 130 |
Note 9 - Customer and Geographi
Note 9 - Customer and Geographic Information | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | 9. Customer and Geographic Information Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker, or group, in deciding how to allocate resources and in assessing performance. The Company’s chief operating decision maker, the chief executive officer, reviews discrete financial information presented on a consolidated basis for purposes of regularly making operating decisions and assessing financial performance. Accordingly the Company considers itself to be in one operating segment, specifically the licensing and implementation of yield improvement solutions for integrated circuit manufacturers. The Company had revenues from individual customers in excess of 10% of total revenues as follows: Year Ended December 31, Customer 2015 2014 2013 A 53 % 52 % 33 % B * 16 % 17 % C 12 % 11 % 24 % * represents less than 10% The Company had accounts receivable balances from individual customers in excess of 10% of the gross accounts receivable balance as follows: December 31, Customer 2015 2014 A 65 % 51 % B * 21 % C * * % * represents less than 10% Revenues from customers by geographic area based on the location of the customers’ work sites are as follows (in thousands): Year Ended December 31, 2015 2014 2013 Revenues Percentage of Revenues Revenues Percentage of Revenues Revenues Percentage of Revenues United States $ 45,082 46 % $ 44,963 44 % $ 39,057 38 % Germany 23,198 24 35,142 35 22,431 22 South Korea 10,629 11 5,667 6 20,953 21 Rest of the world 19,068 19 14,391 15 19,012 19 Total revenue $ 97,977 100 % $ 100,163 100 % $ 101,453 100 % Long-lived assets, net by geographic area is as follows (in thousands): December 31, 2015 2014 United States $ 10,752 $ 8,240 Rest of the world 573 592 Total long-lived assets, net $ 11,325 $ 8,832 |
Note 10 - Financial Instruments
Note 10 - Financial Instruments | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | 10. Financial Instruments Fair value is the exit price, or the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date. The multiple assumptions used to value financial instruments are referred to as inputs, and a hierarchy for inputs used in measuring fair value is established, that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs reflect assumptions market participants would use in pricing an asset or liability based on market data obtained from independent sources while unobservable inputs reflect a reporting entity’s pricing based upon its own market assumptions. These inputs are ranked according to a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. Level 1 - Inputs are quoted prices in active markets for identical assets or liabilities. Level 2 - Inputs are quoted prices for similar assets or liabilities in an active market, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable and market-corroborated inputs which are derived principally from or corroborated by observable market data. Level 3 - Inputs are derived from valuation techniques in which one or more significant inputs or value drivers are unobservable. The following table represents the Company’s assets measured at fair value on a recurring basis as of December 31, 2015 and the basis for that measurement (in thousands): Assets Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Money market mutual funds $ 26,371 $ 26,371 $ — $ — The following table represents the Company’s assets measured at fair value on a recurring basis as of December 31, 2014 and the basis for that measurement (in thousands): Assets Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Money market mutual funds $ 26,356 $ 26,356 $ — $ — The Company enters into foreign currency forward contracts to reduce the exposure to foreign currency exchange rate fluctuations on certain foreign currency denominated monetary assets and liabilities, primarily on third-party accounts payables and intercompany balances. The primary objective of the Company’s hedging program is to reduce volatility of earnings related to foreign currency exchange rate fluctuations. The counterparty to these foreign currency forward contracts is a large global financial institution that the Company believes is creditworthy, and therefore, the Company believes the credit risk of counterparty nonperformance is not significant. These foreign currency forward contracts are not designated for hedge accounting treatment. Therefore, the change in fair value of these contracts is recorded into earnings as a component of other income (expense), net, and offsets the change in fair value of the foreign currency denominated assets and liabilities, which is also recorded in other income (expense), net. For the year ended December 31, 2015, 2014 and 2013, the Company recognized a realized (loss) gain of $(0.8) million, $(0.9) million and $0.1 million, respectively on the contracts, which is recorded in interest and other income (expense), net in the Company’s Consolidated Statements of Operations and Comprehensive Income. The Company carries these derivatives financial instruments on its Consolidated Balance Sheets at their fair values. The Company’s foreign currency forward contracts are classified as Level 2 because it is not actively traded and the valuation inputs are based on quoted prices and market observable data of similar instruments. As of December 31, 2015, the Company had one outstanding forward contract with a notional amount of $6.7 million and recorded $62,000 other current liabilities associated with this outstanding forward contract. |
Note 11 - Employee Benefit Plan
Note 11 - Employee Benefit Plan | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Compensation and Employee Benefit Plans [Text Block] | 11. Employee Benefit Plan During 1999, the Company established a 401(k) tax-deferred savings plan, whereby eligible employees may contribute up to 15% of their eligible compensation with a maximum amount subject to IRS guidelines in any calendar year. Company contributions to this plan are discretionary; no such Company contributions have been made since the inception of this plan. |
Note 12 - Selected Quarterly Fi
Note 12 - Selected Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Quarterly Financial Information [Text Block] | 12. Selected Quarterly Financial Data (Unaudited) The following is a summary of the Company’s quarterly consolidated results of operations (unaudited) for the fiscal years ended December 31, 2015 and 2014. Year Ended December 31, 2015 Q1 Q2 Q3 Q4 (In thousands, except for per share amounts) Total revenues $ 26,817 $ 23,210 $ 23,878 $ 24,072 Gross profit $ 18,013 $ 13,322 $ 13,626 $ 13,992 Net income $ 5,967 $ 2,149 $ 1,494 $ 2,797 Net income per share: Basic $ 0.19 $ 0.07 $ 0.05 $ 0.09 Diluted $ 0.18 $ 0.07 $ 0.05 $ 0.09 Year Ended December 31, 2014 Q1 Q2 Q3 Q4 (In thousands, except for per share amounts) Total revenues $ 27,086 $ 24,610 $ 22,406 $ 26,061 Gross profit $ 17,381 $ 15,763 $ 10,792 $ 16,513 Net income $ 6,255 $ 4,696 $ 1,761 $ 5,750 Net income per share: Basic $ 0.21 $ 0.15 $ 0.06 $ 0.19 Diluted $ 0.20 $ 0.15 $ 0.05 $ 0.18 |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | Concentration of Credit Risk The Company primarily sells its technologies and services to companies in Asia, Europe and North America within the semiconductor industry. As of December 31, 2015, three customers accounted for 66% of the Company’s gross accounts receivable and 72% of the Company’s revenues for 2015. As of December 31, 2014, three customers accounted for 80% of the Company’s gross accounts receivable and 79% of the Company’s revenues for 2014. See Note 9 for further details. The Company does not require collateral or other security to support accounts receivable. To reduce credit risk, management performs ongoing credit evaluations of its customers’ financial condition. The Company maintains allowances for potential credit losses. The allowance for doubtful accounts, which was based on management’s best estimates, could be adjusted in the near term from current estimates depending on actual experience. Such adjustments could be material to the consolidated financial statements. |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash, Cash Equivalents and Short-term Investments Property and Equipment Computer equipment (years) 3 Software (years) 3 Furniture, fixtures, and equipment (years) 5 - 7 Leasehold improvements Shorter of estimated useful life or term of lease |
Property, Plant and Equipment, Policy [Policy Text Block] | Long-lived Assets . |
Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block] | Goodwill |
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition Design-to-silicon-yield solutions — Revenues that are derived from Design-to-silicon-yield solutions come from services and software licenses. The Company recognizes revenue for each element of Design-to-silicon-yield solutions as follows: The Company generates a significant portion of its Design-to-silicon-yield solutions revenue from fixed-price solution implementation service contracts delivered over a specific period of time. These contracts require reliable estimation of costs to perform obligations and the overall scope of each engagement. Revenue under project–based contracts for solution implementation services is recognized as services are performed using the cost-to-cost percentage of completion method of contract accounting. Losses on fixed-price solution implementation contracts are recognized in the period when they become probable. Revisions in profit estimates are reflected in the period in which the conditions that require the revisions become known and can be estimated. Revenue under time and materials contracts for solution implementation services are recognized as the services are performed. On occasion, the Company licenses its software products as a component of its fixed-price service contracts. In such instances, the software products are licensed to customers over a specified term of the agreement with support and maintenance to be provided at each customer's option over the license term. The amount of product and service revenue recognized in a given period is affected by the Company’s judgment as to whether an arrangement includes multiple deliverables and, if so, the Company’s determination of the fair value of each deliverable. In general, vendor-specific objective evidence of selling price (“VSOE”) does not exist for the Company’s solution implementation services and software products and because the Company’s services and products include our unique technology, the Company is not able to determine third-party evidence of selling price (“TPE”). Therefore, in such circumstances the Company uses best estimated selling prices (“BESP”) in the allocation of arrangement consideration. In determining BESP, the Company applies significant judgment as the Company’s weighs a variety of factors, based on the facts and circumstances of the arrangement. The Company typically arrives at BESP for a product or service that is not sold separately by considering company-specific factors such as geographies, internal costs, gross margin objectives, pricing practices used to establish bundled pricing, and existing portfolio pricing and discounting. After fair value is established for each deliverable, the total transaction amount is allocated to each deliverable based upon its relative fair value. Fees allocated to solution implementation services are recognized using the cost-to-cost percentage of completion method of contract accounting. Fees allocated to software and related support and maintenance are recognized under software revenue recognition guidance. The Company defers certain pre-contract costs incurred for specific anticipated contracts. Deferred costs consist primarily of direct costs to provide solution implementation services in relation to the specific anticipated contracts. The Company recognizes such costs as a component of cost of revenues, the timing of which is dependent upon persuasive evidence of contract arrangement assuming all other revenue recognition criteria are met. At the end of the reporting period, the Company evaluates its deferred costs for their probable recoverability. The Company recognizes impairment of deferred costs when it is determined that the costs no longer have future benefits and are no longer recoverable. Deferred costs balance was zero and $0.1 million as of December 31, 2015 and December 31, 2014, respectively. The balance was included in prepaid expenses and other current assets in the accompanying consolidated balance sheets. During the year ended December 31, 2014, the Company impaired $1.9 million of deferred pre-contract costs for two contracts with a customer as it was determined that the costs were no longer recoverable. The impairment charges were recorded in the impairment of deferred costs in the accompanying consolidated statements of operations and comprehensive income. The Company also licenses its software products separately from its solution implementations. For software license arrangements that do not require significant modification or customization of the underlying software, software license revenue is recognized under the residual method when (l) persuasive evidence of an arrangement exists, (2) delivery has occurred, (3) the fee is fixed or dete1minable, (4) collectability is probable, and (5) the arrangement does not require services that are essential to the functionality of the software. When arrangements include multiple elements such as support and maintenance, consulting (other than for its fixed price solution implementations), installation, and training, revenue is allocated to each element of a transaction based upon its fair value as determined by the Company's VSOE and such services are recorded as services revenue. VSOE for maintenance is generally established based upon negotiated renewal rates while VSOE for consulting, installation, and training services is established based upon the Company's customary pricing for such services when sold separately. When software is licensed for a specified term, fees for support and maintenance are generally bundled with the license fee over the entire term of the contract. The Company is unable to establish VSOE of fair value for maintenance services that are generally bundled with term licenses. In these cases, the Company recognizes revenue ratably over the term of the contract. Revenue from Software-as-a-Service (SaaS) that allow for the use of a hosted software product or service over a contractually determined period of time without taking possession of software are accounted for as subscriptions and recognized as revenue ratably over the coverage period beginning on the date the service is made available to customers. Revenue for software licenses with extended payment terms is not recognized in excess of amounts due. For software license arrangements that require significant modification or customization of the underlying software, the software license revenue is recognized as services are performed using the cost-to-cost percentage of completion method of contract accounting, and such revenue is recorded as services revenue. Deferred revenues consist substantially of amounts invoiced in advance of revenue recognition and is recognized as the revenue recognition criteria are met. Deferred revenues that will be recognized during the succeeding 12 month period is recorded as current deferred revenues and the remaining portion is recorded as non- current deferred revenues. Non-current portion of deferred revenue was both $0.3 million as of December 31, 2015 and 2014. This balance was recorded in the other non-current liabilities in the accompanying consolidated balance sheets. Gainshare Performance Incentives — When the Company enters into a contract to provide yield improvement services, the contract usually includes two components: (1) a fixed fee for performance by the Company of services delivered over a specific period of time; and (2) a Gainshare performance incentive component where the customer may pay a contingent variable fee, usually after the fixed fee period has ended. Revenue derived from Gainshare performance incentives represents profit sharing and performance incentives earned contingent upon the Company’s customers reaching certain defined operational levels established in related solution implementation service contracts. Gainshare performance incentives periods are usually subsequent to the delivery of all contractual services and therefore have no cost to the Company. Due to the uncertainties surrounding attainment of such operational levels, the Company recognizes Gainshare performance incentives revenue (to the extent of completion of the related solution implementation contract) upon receipt of performance reports or other related information from the customer supporting the determination of amounts and probability of collection. |
Receivables, Policy [Policy Text Block] | Accounts Receivable Allowance for doubtful accounts are summarized below: Balance at Beginning of Period Charged to Costs and Expenses Deductions/ Write-offs of Accounts Balance at End of Period Allowance for doubtful accounts 2015 $ 381 $ — $ 82 $ 299 2014 $ 354 $ 27 $ — $ 381 2013 $ 351 $ 3 $ — $ 354 |
Research, Development, and Computer Software, Policy [Policy Text Block] | Software Development Costs |
Research and Development Expense, Policy [Policy Text Block] | Research and Development |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | Stock-Based Compensation |
Income Tax, Policy [Policy Text Block] | Income Taxes |
Earnings Per Share, Policy [Policy Text Block] | Net Income Per Share – |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | Foreign Currency Translation |
Derivatives, Policy [Policy Text Block] | Derivative Financial Instruments |
Legal Costs, Policy [Policy Text Block] | Litigation |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. (“ASU”) 2014-09, Revenue from Contracts with Customers, as a new Topic, Accounting Standards Codification (“ASC”) Topic 606. The new revenue recognition standard provides a five-step analysis of transactions to determine when and how revenue is recognized. The core principle is that a company 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. This new standard is effective for annual periods beginning after December 15, 2016, including interim periods within that reporting period, and shall be applied retrospectively to each period presented or as a cumulative-effect adjustment as of the date of adoption. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606), deferring the effective date of ASU 2014-09 by one year. The provision of ASU 2014-09 are effective for annual periods beginning after December 15, 2017, including interim periods within that reporting period. The FASB also agreed to allow entities to choose to adopt the standard as of the original effective date. We are currently assessing the adoption date and potential impact of adopting this standard on our financial statements and related disclosures. In August 2014, the FASB issued ASU No. 2014-15, “Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern”. The new standard provides guidance around management's responsibility to evaluate whether there is substantial doubt about an entity's ability to continue as a going concern and to provide related footnote disclosures. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. Early adoption is permitted. The adoption of this standard is not expected to have a material impact on our financial statements. In April 2015, the FASB issued ASU No. 2015-05, “Intangibles - Goodwill and Other Internal-Use Software”. The amendments in this update provide guidance to customers about whether a cloud computing arrangement includes a software license, and if so, how the software license element of the arrangement should be accounted for by the customer. The new standard is effective for annual period ending after December 15, 2015, and all reporting periods thereafter. The adoption of this standard did not have a material impact on our financial statements. In September 2015, the FASB issued ASU No. 2015-16, “Business Combinations: Simplifying the Accounting for Measurement-Period Adjustments”. The new standard simplifies how adjustments are made to provisional amounts recognized in a business combination during the measurement period. We were required to adopt ASU 2015-16 on January 1, 2016. The Company early adopted this standard during the period ended September 30, 2015. The effect of early adoption of this standard on our financial position, results of operations, and disclosures is immaterial. In November 2015, the FASB issued ASU 2015-17, “Balance Sheet Classification of Deferred Taxes.” Under this new guidance, deferred tax liabilities and assets should be classified as noncurrent in a classified balance sheet. The update is effective for annual period beginning after December 15, 2016, and interim periods within those annual periods. Early adoption is permitted as of the beginning of any interim or annual reporting period. Additionally, this guidance may be applied either prospectively or retrospectively to all periods presented. The Company early adopted this standard as of December 31, 2015 using the prospective method. See Note 7, Income Taxes, for additional information. |
Note 1 - Business and Signifi20
Note 1 - Business and Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Notes Tables | |
Property Plant and Equipment Estimated Useful Lives [Table Text Block] | Computer equipment (years) 3 Software (years) 3 Furniture, fixtures, and equipment (years) 5 - 7 Leasehold improvements Shorter of estimated useful life or term of lease |
Summary of Valuation Allowance [Table Text Block] | Balance at Beginning of Period Charged to Costs and Expenses Deductions/ Write-offs of Accounts Balance at End of Period Allowance for doubtful accounts 2015 $ 381 $ — $ 82 $ 299 2014 $ 354 $ 27 $ — $ 381 2013 $ 351 $ 3 $ — $ 354 |
Note 2 - Business Combinations
Note 2 - Business Combinations (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Notes Tables | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | (in thousands) Amortization period (years Consideration Cash $ 5,264 Fair value of total consideration transferred $ 5,264 Recognized amounts of identifiable assets acquired and liabilities assumed Cash and cash equivalents $ 112 Accounts receivable and other assets 208 Deferred tax assets, net 261 Identifiable intangible assets: Customer relationship 2,500 9 Developed technology 2,300 6 Tradename 100 2 Backlog 100 1 Property and equipment 378 Accounts payable and other liabilities (818 ) Debt obligations assumed (347 ) Total identifiable net assets 4,794 Goodwill 470 $ 5,264 |
Note 3 - Property and Equipme22
Note 3 - Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Notes Tables | |
Property, Plant and Equipment [Table Text Block] | December 31, 2015 2014 Computer equipment $ 9,188 $ 9,817 Software 1,713 3,369 Furniture, fixtures, and equipment 907 756 Leasehold improvements 1,126 1,127 Test equipment 7,214 6,401 Construction-in-progress 4,777 2,405 24,925 23,875 Accumulated depreciation (13,600 ) (15,043 ) Total $ 11,325 $ 8,832 |
Note 4 - Goodwill and Intangi23
Note 4 - Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Notes Tables | |
Schedule of Goodwill [Table Text Block] | December 31, 2015 Balance as of December 31, 2014 $ - Add: Goodwill from acquisition 470 Goodwill adjustment (255 ) Balance as of December 31, 2015 $ 215 |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | December 31, 2015 December 31, 2014 Amortization Period (Years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Acquired identifiable intangibles: Customer relationships 1 - 9 $ 5,920 $ (3,547 ) $ 2,373 $ 3,420 $ (3,420 ) - Developed technology 4 - 6 14,100 (11,976 ) 2,124 11,800 (11,800 ) - Tradename 2 - 4 610 (533 ) 77 510 (510 ) - Backlog 1 100 (46 ) 54 - - - Patent 7 - 10 1,800 (1,400 ) 400 1,400 (1,400 ) - Other acquired intangibles 4 255 (255 ) - 255 (255 ) - Total $ 22,785 $ (17,757 ) $ 5,028 $ 17,385 $ (17,385 ) - |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Year Ending December 31, 2016 805 2017 728 2018 701 2019 701 2020 701 2021 and Thereafter 1,392 Total future amortization expense $ 5,028 |
Note 5 - Commitments and Cont24
Note 5 - Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Notes Tables | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | Year Ending December 31, 2016 $ 1,850 2017 1,420 2018 806 2019 71 2020 18 2021 and thereafter 61 Total future minimum lease payments $ 4,226 |
Note 6 - Stockholders' Equity (
Note 6 - Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Notes Tables | |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block] | Years Ended December 31, 2015 2014 2013 Cost of Design-to-silicon-yield solutions $ 3,914 $ 3,419 $ 2,736 Research and development 2,275 1,709 1,583 Selling, general and administrative 3,567 3,419 2,374 Stock-based compensation expense $ 9,756 $ 8,547 $ 6,693 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | Stock Plans Employee Stock Purchase Plan 2015 2014 2013 2015 2014 2013 Expected life (in years) 4.5 4.6 4.8 1.25 1.25 1.25 Volatility 45.8 % 44.0 % 54.1 % 50.1 % 33.4 % 45.3 % Risk-free interest rate 1.37 % 1.54 % 1.03 % 0.34 % 0.21 % 0.19 % Expected dividend — — — — — — |
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | Outstanding Options Number of Options (in thousands) Weighted Average Exercise Price per Share Weighted Average Remaining Contractual Term (years) Aggregate Intrinsic Value (in thousands) Outstanding, January 1, 2013 3,810 6.91 Granted (weighted average fair value of $7.75 per share) 77 17.12 Exercised (871 ) 6.13 Canceled (114 ) 8.76 Expired (22 ) 5.98 Outstanding, December 31, 2013 2,880 7.35 Granted (weighted average fair value of $6.66 per share) 28 17.40 Exercised (509 ) 6.33 Canceled (40 ) 10.03 Expired (7 ) 7.41 Outstanding, December 31, 2014 2,352 7.65 Granted (weighted average fair value of $5.45 per share) 93 13.88 Exercised (655 ) 7.70 Canceled (23 ) 12.95 Expired (3 ) 12.91 Outstanding, December 31, 2015 1,764 7.88 5. 14 $ 6,210 Vested and expected to vest, December 31, 2015 1,754 7.84 5. 12 $ 6,207 Exercisable, December 31, 2015 1,560 7.29 4.77 $ 6,040 |
Schedule of Share-based Compensation, Restricted Stock Units Award Activity [Table Text Block] | Shares (in thousands) Weighted- Average Grant-Date Fair Value Nonvested, January 1, 2013 450 7.97 Granted 562 18.25 Vested (217 ) 11.01 Forfeited (36 ) 11.08 Nonvested, December 31, 2013 759 14.44 Granted 569 19.42 Vested (350 ) 14.43 Forfeited (37 ) 18.00 Nonvested, December 31, 2014 941 17.38 Granted 720 15.92 Vested (453 ) 15.97 Forfeited (42 ) 17.27 Nonvested, December 31, 2015 1,166 17.03 |
Note 7 - Income Taxes (Tables)
Note 7 - Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Valuation Allowance of Deferred Tax Assets [Member] | |
Notes Tables | |
Summary of Valuation Allowance [Table Text Block] | Balance at Beginning of Period Charged to Costs and Expenses Balance assumed in acquisition Deductions/ Write-offs of Accounts Balance at End of Period Valuation allowance for deferred tax assets 2015 $ 5,433 $ 557 $ 215 $ — $ 6,205 2014 5,087 346 — — 5,433 2013 4,708 379 — — 5,087 |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | Year Ended December 31, 2015 2014 2013 (In thousands) U.S. Current $ 2,022 $ 3,032 $ 719 Deferred 1,549 2,882 5,432 Foreign Current 341 476 291 Withholding 3,089 3,103 3,830 Deferred 14 4 108 Total provision $ 7,015 $ 9,497 $ 10,380 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | Year Ended December 31, 2015 2014 2013 Federal statutory tax provision $ 6,798 $ 9,786 $ 10,958 State tax provision 465 56 581 Stock compensation expense 677 540 393 Tax credits (4,166 ) (3,924 ) (5,424 ) Foreign tax, net 3,111 3,170 3,884 Change in valuation allowance — — — Other 130 (131 ) (12 ) Tax provision $ 7,015 $ 9,497 $ 10,380 |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | December 31, 2015 2014 Deferred tax assets Net operating loss carry forward $ 1,895 $ 533 Research and development and other credit carry forward 5,995 5,438 Foreign tax credit carry forward — 1 Accruals deductible in different periods 3,046 3,021 Intangible assets 3,078 5,555 Stock-based compensation 2,474 2,861 Valuation allowance (6,205 ) (5,433 ) Subtotal $ 10,283 $ 11,976 Deferred tax liabilities Fixed assets 10 (632 ) Net Deferred tax assets $ 10,293 $ 11,344 |
Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block] | Amount Gross unrecognized tax benefits, January 1, 2013 $ 9,553 Increases in tax positions for current year 1,052 Increase in tax positions for prior years — Lapse in statute of limitations (389 ) Gross unrecognized tax benefits, December 31, 2013 10,216 Increases in tax positions for current year 809 Increases in tax positions for prior years — Lapse in statute of limitations (597 ) Gross unrecognized tax benefits, December 31, 2014 10,428 Increases in tax positions for current year 720 Increases in tax positions for prior years 162 Lapse in statute of limitations (331 ) Gross unrecognized tax benefits, December 31, 2015 $ 10,979 |
Summary of Valuation Allowance [Table Text Block] | Balance at Beginning of Period Charged to Costs and Expenses Deductions/ Write-offs of Accounts Balance at End of Period Allowance for doubtful accounts 2015 $ 381 $ — $ 82 $ 299 2014 $ 354 $ 27 $ — $ 381 2013 $ 351 $ 3 $ — $ 354 |
Note 8 - Net Income Per Share (
Note 8 - Net Income Per Share (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Year Ended December 31, 2015 2014 2013 Numerator: Net income $ 12,407 $ 18,462 $ 20,929 Denominator: Basic weighted-average shares outstanding 31,424 30,743 29,826 Effect of dilutive options and restricted stock 740 1,196 1,567 Diluted weighted-average shares outstanding 32,164 31,939 31,393 Net income per share - Basic $ 0.39 $ 0.60 $ 0.70 Net income per share - Diluted $ 0.39 $ 0.58 $ 0.67 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | December 31, 2015 2014 Outstanding options 127 61 Nonvested shares of restricted stock units 714 19 Employee Stock Purchase Plan 255 50 Total 1,096 130 |
Note 9 - Customer and Geograp28
Note 9 - Customer and Geographic Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Notes Tables | |
Schedule of Revenue by Major Customers by Reporting Segments [Table Text Block] | Year Ended December 31, Customer 2015 2014 2013 A 53 % 52 % 33 % B * 16 % 17 % C 12 % 11 % 24 % |
Receivables by Major Customers [Table Text Block] | December 31, Customer 2015 2014 A 65 % 51 % B * 21 % C * * % |
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Table Text Block] | Year Ended December 31, 2015 2014 2013 Revenues Percentage of Revenues Revenues Percentage of Revenues Revenues Percentage of Revenues United States $ 45,082 46 % $ 44,963 44 % $ 39,057 38 % Germany 23,198 24 35,142 35 22,431 22 South Korea 10,629 11 5,667 6 20,953 21 Rest of the world 19,068 19 14,391 15 19,012 19 Total revenue $ 97,977 100 % $ 100,163 100 % $ 101,453 100 % |
Schedule of Disclosure on Geographic Areas, Long-Lived Assets in Individual Foreign Countries by Country [Table Text Block] | December 31, 2015 2014 United States $ 10,752 $ 8,240 Rest of the world 573 592 Total long-lived assets, net $ 11,325 $ 8,832 |
Note 10 - Financial Instrumen29
Note 10 - Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Notes Tables | |
Fair Value, Assets Measured on Recurring Basis [Table Text Block] | Assets Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Money market mutual funds $ 26,371 $ 26,371 $ — $ — Assets Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Money market mutual funds $ 26,356 $ 26,356 $ — $ — |
Note 12 - Selected Quarterly 30
Note 12 - Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Notes Tables | |
Schedule of Quarterly Financial Information [Table Text Block] | Year Ended December 31, 2015 Q1 Q2 Q3 Q4 (In thousands, except for per share amounts) Total revenues $ 26,817 $ 23,210 $ 23,878 $ 24,072 Gross profit $ 18,013 $ 13,322 $ 13,626 $ 13,992 Net income $ 5,967 $ 2,149 $ 1,494 $ 2,797 Net income per share: Basic $ 0.19 $ 0.07 $ 0.05 $ 0.09 Diluted $ 0.18 $ 0.07 $ 0.05 $ 0.09 Year Ended December 31, 2014 Q1 Q2 Q3 Q4 (In thousands, except for per share amounts) Total revenues $ 27,086 $ 24,610 $ 22,406 $ 26,061 Gross profit $ 17,381 $ 15,763 $ 10,792 $ 16,513 Net income $ 6,255 $ 4,696 $ 1,761 $ 5,750 Net income per share: Basic $ 0.21 $ 0.15 $ 0.06 $ 0.19 Diluted $ 0.20 $ 0.15 $ 0.05 $ 0.18 |
Note 1 - Business and Signifi31
Note 1 - Business and Significant Accounting Policies (Details Textual) | 12 Months Ended | ||
Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Other Noncurrent Liabilities [Member] | |||
Deferred Revenue, Noncurrent | $ 300,000 | $ 300,000 | |
Customer Concentration Risk [Member] | Accounts Receivable [Member] | Three Customers [Member] | |||
Concentration Risk, Percentage | 66.00% | 80.00% | |
Customer Concentration Risk [Member] | Sales Revenue, Net [Member] | Three Customers [Member] | |||
Concentration Risk, Percentage | 72.00% | 79.00% | |
Goodwill, Impairment Loss | $ 0 | $ 0 | $ 0 |
Loss Contingency Accrual | 0 | ||
Deferred Pre-contract Costs | $ 0 | 100,000 | |
Impairment of Deferred Costs | $ 1,892,000 | ||
Number of Impaired Contracts | 2 | ||
Unbilled Receivables, Current | $ 11,500,000 | $ 9,700,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years |
Note 1 - Business and Signifi32
Note 1 - Business and Significant Accounting Policies - Estimated Useful Lives of Property and Equipment (Details) | 12 Months Ended |
Dec. 31, 2015 | |
Computer Equipment [Member] | |
Property, plant and equipment, useful life | 3 years |
Software and Software Development Costs [Member] | |
Property, plant and equipment, useful life | 3 years |
Furniture and Fixtures [Member] | Minimum [Member] | |
Property, plant and equipment, useful life | 5 years |
Furniture and Fixtures [Member] | Maximum [Member] | |
Property, plant and equipment, useful life | 7 years |
Leasehold Improvements [Member] | |
Leasehold improvements | Shorter of estimated useful life or term of lease |
Note 1 - Business and Signifi33
Note 1 - Business and Significant Accounting Policies - Allowance for Doubtful Accounts (Details) - Allowance for Doubtful Accounts [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Allowance for doubtful accounts | |||
Balance at Beginning of Period | $ 381 | $ 354 | $ 351 |
Charged to Costs and Expenses | $ 27 | $ 3 | |
Deductions/ Write-offs of Accounts | $ 82 | ||
Balance at End of Period | $ 299 | $ 381 | $ 354 |
Note 2 - Business Combination34
Note 2 - Business Combinations (Details Textual) - USD ($) | Jul. 17, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Syntricity [Member] | Former Shareholder of Syntricity [Member] | ||||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | $ 800,000 | |||
Syntricity [Member] | Employee [Member] | ||||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | 1,700,000 | |||
Syntricity [Member] | General and Administrative Expense [Member] | ||||
Business Combination, Acquisition Related Costs | $ 800,000 | |||
Syntricity [Member] | ||||
Business Acquisition, Goodwill, Expected Tax Deductible Amount | 0 | |||
Payments to Acquire Businesses, Gross | 5,264,000 | |||
Cash Acquired from Acquisition | 100,000 | |||
Business Combination, Amount to be Held in Escrow and Subject to Indemnity Adjustments | 800,000 | |||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | $ 2,500,000 | |||
Business Combination, Contingent Consideration, Liability | 500,000 | |||
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability | (500,000) | |||
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability | $ 500,000 |
Note 2 - Business Combination35
Note 2 - Business Combinations - Allocation of the Purchase Price (Details) - USD ($) | Jul. 17, 2015 | Dec. 31, 2015 |
Syntricity [Member] | Customer Relationships [Member] | ||
Identifiable intangible assets: | ||
Identifiable intangible assets | $ 2,500,000 | |
Amortization period | 9 years | |
Syntricity [Member] | Developed Technology Rights [Member] | ||
Identifiable intangible assets: | ||
Identifiable intangible assets | 2,300,000 | |
Amortization period | 6 years | |
Syntricity [Member] | Trade Names [Member] | ||
Identifiable intangible assets: | ||
Identifiable intangible assets | 100,000 | |
Amortization period | 2 years | |
Syntricity [Member] | Order or Production Backlog [Member] | ||
Identifiable intangible assets: | ||
Identifiable intangible assets | 100,000 | |
Amortization period | 1 year | |
Syntricity [Member] | ||
Cash | 5,264,000 | |
Recognized amounts of identifiable assets acquired and liabilities assumed | ||
Cash and cash equivalents | 112,000 | |
Accounts receivable and other assets | 208,000 | |
Deferred tax assets, net | 261,000 | |
Identifiable intangible assets: | ||
Property and equipment | 378,000 | |
Accounts payable and other liabilities | (818,000) | |
Debt obligations assumed | (347,000) | |
Total identifiable net assets | 4,794,000 | |
Goodwill | 470,000 | $ 215,000 |
Cash | $ 5,264,000 | |
Goodwill | $ 215,000 |
Note 3 - Property and Equipme36
Note 3 - Property and Equipment (Details Textual) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Depreciation, Depletion and Amortization, Nonproduction | $ 2.6 | $ 2 | $ 1.4 |
Note 3 - Property and Equipme37
Note 3 - Property and Equipment - Property and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Computer Equipment [Member] | ||
Property and equipment | $ 9,188 | $ 9,817 |
Software and Software Development Costs [Member] | ||
Property and equipment | 1,713 | 3,369 |
Furniture and Fixtures [Member] | ||
Property and equipment | 907 | 756 |
Leasehold Improvements [Member] | ||
Property and equipment | 1,126 | 1,127 |
Test Equipment [Member] | ||
Property and equipment | 7,214 | 6,401 |
Construction in Progress [Member] | ||
Property and equipment | 4,777 | 2,405 |
Property and equipment | 24,925 | 23,875 |
Accumulated depreciation | (13,600) | (15,043) |
Total | $ 11,325 | $ 8,832 |
Note 4 - Goodwill and Intangi38
Note 4 - Goodwill and Intangible Assets (Details Textual) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Impairment of Intangible Assets, Finite-lived | $ 0 | ||
Goodwill | 215,000 | $ 0 | |
Finite-Lived Intangible Assets, Net | $ 5,028,000 | 0 | |
Finite-Lived Intangible Assets, Remaining Amortization Period | 7 years 73 days | ||
Amortization of Intangible Assets | $ 372,000 | $ 31,000 | $ 74,000 |
Note 4 - Goodwill and Intangi39
Note 4 - Goodwill and Intangible Assets - Goodwill Activity (Details) | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Syntricity [Member] | |
Balance | |
Add: Goodwill from acquisition | $ 470,000 |
Goodwill adjustment | (255,000) |
Balance | 215,000 |
Balance | 0 |
Balance | $ 215,000 |
Note 4 - Goodwill and Intangi40
Note 4 - Goodwill and Intangible Assets - Intangible Assets (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Customer Relationships [Member] | Minimum [Member] | ||
Amortization Period | 1 year | |
Customer Relationships [Member] | Maximum [Member] | ||
Amortization Period | 9 years | |
Customer Relationships [Member] | ||
Gross Carrying Amount | $ 5,920,000 | $ 3,420,000 |
Accumulated Amortization | (3,547,000) | $ (3,420,000) |
Finite-Lived Intangible Assets, Net | $ 2,373,000 | |
Developed Technology Rights [Member] | Minimum [Member] | ||
Amortization Period | 4 years | |
Developed Technology Rights [Member] | Maximum [Member] | ||
Amortization Period | 6 years | |
Developed Technology Rights [Member] | ||
Gross Carrying Amount | $ 14,100,000 | $ 11,800,000 |
Accumulated Amortization | (11,976,000) | $ (11,800,000) |
Finite-Lived Intangible Assets, Net | $ 2,124,000 | |
Trade Names [Member] | Minimum [Member] | ||
Amortization Period | 2 years | |
Trade Names [Member] | Maximum [Member] | ||
Amortization Period | 4 years | |
Trade Names [Member] | ||
Gross Carrying Amount | $ 610,000 | $ 510,000 |
Accumulated Amortization | (533,000) | $ (510,000) |
Finite-Lived Intangible Assets, Net | $ 77,000 | |
Order or Production Backlog [Member] | ||
Amortization Period | 1 year | |
Gross Carrying Amount | $ 100,000 | |
Accumulated Amortization | (46,000) | |
Finite-Lived Intangible Assets, Net | $ 54,000 | |
Patents [Member] | Minimum [Member] | ||
Amortization Period | 7 years | |
Patents [Member] | Maximum [Member] | ||
Amortization Period | 10 years | |
Patents [Member] | ||
Gross Carrying Amount | $ 1,800,000 | $ 1,400,000 |
Accumulated Amortization | (1,400,000) | $ (1,400,000) |
Finite-Lived Intangible Assets, Net | $ 400,000 | |
Other Intangible Assets [Member] | ||
Amortization Period | 4 years | |
Gross Carrying Amount | $ 255,000 | $ 255,000 |
Accumulated Amortization | $ (255,000) | $ (255,000) |
Finite-Lived Intangible Assets, Net | ||
Gross Carrying Amount | $ 22,785,000 | $ 17,385,000 |
Accumulated Amortization | (17,757,000) | (17,385,000) |
Finite-Lived Intangible Assets, Net | $ 5,028,000 | $ 0 |
Note 4 - Balance Sheet Componen
Note 4 - Balance Sheet Components - Annual Amortization of Identifiable Intangible Assets (Details) | Dec. 31, 2015USD ($) |
2,016 | $ 805,000 |
2,017 | 728,000 |
2,018 | 701,000 |
2,019 | 701,000 |
2,020 | 701,000 |
2021 and Thereafter | 1,392,000 |
Total future amortization expense | $ 5,028,000 |
Note 5 - Commitments and Cont42
Note 5 - Commitments and Contingencies (Details Textual) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Loss Contingency Accrual | $ 0 | ||
Operating Leases, Rent Expense, Net | 2,100,000 | $ 2,100,000 | $ 2,000,000 |
Purchase Obligation, Due in Next Twelve Months | $ 5,100,000 |
Note 5 - Commitments and Cont43
Note 5 - Commitments and Contingencies - Future Minimum Lease Payments Under Noncancelable Operating Leases (Details) $ in Thousands | Dec. 31, 2015USD ($) |
2,016 | $ 1,850 |
2,017 | 1,420 |
2,018 | 806 |
2,019 | 71 |
2,020 | 18 |
2021 and thereafter | 61 |
Total future minimum lease payments | $ 4,226 |
Note 6 - Stockholders' Equity44
Note 6 - Stockholders' Equity (Details Textual) - USD ($) | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Outside of the 2011, 2001 or IDS Plans [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 0 | |||
Twenty Eleven Stock Incentive Plan [Member] | Employee Stock Option [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | |||
Twenty Eleven Stock Incentive Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 6,550,000 | |||
Share Based Compensation Arrangement By Share Based Payment Award Shares Reserved Decrease Rate | 1.33 | |||
Common Stock, Capital Shares Reserved for Future Issuance | 7,000,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 3,200,000 | |||
Shares Previously Issued Under the 2001 Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 3,500,000 | |||
IDS Plan [Member] | Employee Stock Option [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | |||
Two Thousand One Stock Incentive Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period | 400,000 | |||
Employee Stock Purchase Plan [Member] | ||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | $ 1,000,000 | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 211 days | |||
Share-based Compensation Arrangement by Share-based Payment Award, Maximum Employee Subscription Rate | 10.00% | |||
Share-based Compensation Arrangement by Share-based Payment Award, Purchase Price of Common Stock, Percent | 85.00% | |||
ESPP Maximum Annual Share Replenishment | 675,000 | |||
ESPP Maximum Annual Share Replenishment Percentage of Prior Year Outstanding Company Common Stock | 2.00% | |||
Number Of ESPP Shares Available For Future Issuance | 6,200,000 | 2,800,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 5.51 | $ 6.41 | $ 5.56 | |
Stock Appreciation Rights (SARs) [Member] | ||||
Allocated Share-based Compensation Credit | $ 5,000 | |||
Allocated Share-based Compensation Expense | $ 34,000 | $ 102,000 | ||
Employee Stock Option [Member] | ||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 339 days | |||
Restricted Stock [Member] | ||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years 244 days | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | $ 17,400,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 1,764,000 | 2,352,000 | 2,880,000 | 3,810,000 |
Allocated Share-based Compensation Expense | $ 9,756,000 | $ 8,547,000 | $ 6,693,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period | 23,000 | 40,000 | 114,000 | |
Share Price | $ 10.84 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | $ 6,200,000 | $ 6,700,000 | $ 11,900,000 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | 1,000,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value | $ 1,500,000 | |||
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 110,000 | 114,000 | 184,000 | |
Employee Stock Purchase Plan Weighted Average Purchase Price of Shares Purchased | $ 12.57 | $ 12.62 | $ 7.16 | |
Stock Repurchase Program, Authorized Amount | $ 25,000,000 | |||
Treasury Stock, Shares, Acquired | 1,089,773 | |||
Treasury Stock Acquired, Average Cost Per Share | $ 13.33 | |||
Treasury Stock, Value, Acquired, Cost Method | $ 14,525,000 | $ 3,566,000 | ||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 10,500,000 |
Note 6 - Stockholders' Equity -
Note 6 - Stockholders' Equity - Allocation of Recognized Period Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cost of Sales [Member] | |||
Allocated Share-based Compensation Expense | $ 3,914 | $ 3,419 | $ 2,736 |
Research and Development Expense [Member] | |||
Allocated Share-based Compensation Expense | 2,275 | 1,709 | 1,583 |
Selling, General and Administrative Expenses [Member] | |||
Allocated Share-based Compensation Expense | 3,567 | 3,419 | 2,374 |
Allocated Share-based Compensation Expense | $ 9,756 | $ 8,547 | $ 6,693 |
Note 6 - Stockholders' Equity46
Note 6 - Stockholders' Equity - Stock Options, Valuation Assumptions (Details) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Stock Plans [Member] | |||
Expected life (in years) | 4 years 182 days | 4 years 219 days | 4 years 292 days |
Volatility | 45.80% | 44.00% | 54.10% |
Risk-free interest rate | 1.37% | 1.54% | 1.03% |
Expected dividend | 0.00% | 0.00% | 0.00% |
Employee Stock Purchase Plan [Member] | |||
Expected life (in years) | 1 year 91 days | 1 year 91 days | 1 year 91 days |
Volatility | 50.10% | 33.40% | 45.30% |
Risk-free interest rate | 0.34% | 0.21% | 0.19% |
Expected dividend | 0.00% | 0.00% | 0.00% |
Note 6 - Stockholders' Equity47
Note 6 - Stockholders' Equity - Stock Options Activity (Details) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Outstanding, January 1, 2013 (in shares) | 2,352 | 2,880 | 3,810 |
Outstanding, January 1, 2013 (in dollars per share) | $ 7.65 | $ 7.35 | $ 6.91 |
Granted (weighted average fair value of $7.75 per share) (in shares) | 93 | 28 | 77 |
Exercised (in shares) | (655) | (509) | (871) |
Exercised (in dollars per share) | $ 7.70 | $ 6.33 | $ 6.13 |
Canceled (in shares) | (23) | (40) | (114) |
Canceled (in dollars per share) | $ 12.95 | $ 10.03 | $ 8.76 |
Expired (in shares) | (3) | (7) | (22) |
Expired (in dollars per share) | $ 12.91 | $ 7.41 | $ 5.98 |
Outstanding, December 31, 2013 (in shares) | 1,764 | 2,352 | 2,880 |
Outstanding, December 31, 2013 (in dollars per share) | $ 7.88 | $ 7.65 | $ 7.35 |
Outstanding, December 31, 2015 | 5 years 51 days | ||
Outstanding, December 31, 2015 | $ 6,210 | ||
Vested and expected to vest, December 31, 2015 (in shares) | 1,754 | ||
Vested and expected to vest, December 31, 2015 (in dollars per share) | $ 7.84 | ||
Vested and expected to vest, December 31, 2015 | 5 years 43 days | ||
Vested and expected to vest, December 31, 2015 | $ 6,207 | ||
Exercisable, December 31, 2015 (in shares) | 1,560 | ||
Exercisable, December 31, 2015 (in dollars per share) | $ 7.29 | ||
Exercisable, December 31, 2015 | 4 years 281 days | ||
Exercisable, December 31, 2015 | $ 6,040 |
Note 6 - Stockholders' Equity48
Note 6 - Stockholders' Equity - Nonvested Restricted Stock Units Activity (Details) - Restricted Stock Units (RSUs) [Member] - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Nonvested, Balance (in shares) | 941 | 759 | 450 |
Nonvested, Balance (in dollars per share) | $ 17.38 | $ 14.44 | $ 7.97 |
Granted (in shares) | 720 | 569 | 562 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 15.92 | $ 19.42 | $ 18.25 |
Vested (in shares) | (453) | (350) | (217) |
Vested (in dollars per share) | $ 15.97 | $ 14.43 | $ 11.01 |
Forfeited (in shares) | (42) | (37) | (36) |
Forfeited (in dollars per share) | $ 17.27 | $ 18 | $ 11.08 |
Nonvested, Balance (in shares) | 1,166 | 941 | 759 |
Nonvested, Balance (in dollars per share) | $ 17.03 | $ 17.38 | $ 14.44 |
Note 7 - Income Taxes (Details
Note 7 - Income Taxes (Details Textual) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Jul. 17, 2015 | Dec. 31, 2012 | |
Internal Revenue Service (IRS) [Member] | Domestic Tax Authority [Member] | |||||
Operating Loss Carryforwards | $ 3,600,000 | ||||
California Franchise Tax Board [Member] | State and Local Jurisdiction [Member] | Syntricity [Member] | |||||
Operating Loss Carryforwards | $ 200,000 | ||||
California Franchise Tax Board [Member] | State and Local Jurisdiction [Member] | |||||
Operating Loss Carryforwards | 8,400,000 | ||||
Deferred Tax Assets, Valuation Allowance | 6,000,000 | $ 5,400,000 | |||
Domestic Tax Authority [Member] | |||||
Tax Credit Carryforward, Amount | 9,400,000 | ||||
Unrecorded Windfall Deductions | 4,800,000 | ||||
Excluded Windfall Deductions | 5,100,000 | ||||
State and Local Jurisdiction [Member] | |||||
Tax Credit Carryforward, Amount | 13,600,000 | ||||
Unrecorded Windfall Deductions | 63,000 | ||||
Excluded Windfall Deductions | 66,000 | ||||
Income (Loss) from Continuing Operations before Income Taxes, Domestic | 17,700,000 | 26,200,000 | $ 29,600,000 | ||
Income (Loss) from Continuing Operations before Income Taxes, Foreign | $ 1,700,000 | 1,800,000 | 1,700,000 | ||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 35.00% | ||||
Deferred Tax Assets, Valuation Allowance | $ 6,205,000 | 5,433,000 | |||
Deferred Tax Assets, Net | 10,293,000 | 11,344,000 | |||
Deferred Tax Assets, Net, Noncurrent | 10,300,000 | 8,000,000 | |||
Deferred Tax Assets, Net, Current | 3,300,000 | ||||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | 495,000 | 467,000 | |||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense | 28,000 | 1,000 | 39,000 | ||
Unrecognized Tax Benefits | 10,979,000 | 10,428,000 | $ 10,216,000 | $ 9,553,000 | |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 6,500,000 | $ 6,300,000 | |||
Unrecognized Tax Benefits In Long Term Liabilities | 2,500,000 | ||||
Unrecognized Tax Benefits In Deferred Tax Assets | 8,900,000 | ||||
Unrecognized Tax Benefits In Deferred Tax Asset Subject To Full Valuation Allowance | 4,400,000 | ||||
Undistributed Earnings of Foreign Subsidiaries | $ 5,600,000 |
Note 7 - Income Tax Expense (Be
Note 7 - Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
U.S. | |||
Current | $ 2,022 | $ 3,032 | $ 719 |
Deferred | 1,549 | 2,882 | 5,432 |
Foreign | |||
Current | 341 | 476 | 291 |
Withholding | 3,089 | 3,103 | 3,830 |
Deferred | 14 | 4 | 108 |
Total provision | $ 7,015 | $ 9,497 | $ 10,380 |
Note 7 - Income Tax Reconciliat
Note 7 - Income Tax Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Federal statutory tax provision | $ 6,798 | $ 9,786 | $ 10,958 |
State tax provision | 465 | 56 | 581 |
Stock compensation expense | 677 | 540 | 393 |
Tax credits | (4,166) | (3,924) | (5,424) |
Foreign tax, net | $ 3,111 | $ 3,170 | $ 3,884 |
Change in valuation allowance | |||
Other | $ 130 | $ (131) | $ (12) |
Tax provision | $ 7,015 | $ 9,497 | $ 10,380 |
Note 7 - Deferred Tax Assets (D
Note 7 - Deferred Tax Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred tax assets | ||
Net operating loss carry forward | $ 1,895 | $ 533 |
Research and development and other credit carry forward | $ 5,995 | 5,438 |
Foreign tax credit carry forward | 1 | |
Accruals deductible in different periods | $ 3,046 | 3,021 |
Intangible assets | 3,078 | 5,555 |
Stock-based compensation | 2,474 | 2,861 |
Valuation allowance | (6,205) | (5,433) |
Subtotal | 10,283 | 11,976 |
Deferred tax liabilities | ||
Fixed assets | 10 | (632) |
Net Deferred tax assets | $ 10,293 | $ 11,344 |
Note 7 - Unrecognized Tax Benef
Note 7 - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Unrecognized Tax Benefits | $ 10,979 | $ 10,428 | $ 10,216 |
Increases in tax positions for current year | 720 | 809 | 1,052 |
Lapse in statute of limitations | (331) | $ (597) | $ (389) |
Increases in tax positions for prior years | $ 162 |
Note 7 - Valuation Allowance of
Note 7 - Valuation Allowance of Deferred Tax Assets (Details) - Valuation Allowance of Deferred Tax Assets [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Balance at Beginning of Period | $ 5,433 | $ 5,087 | $ 4,708 |
Charged to Costs and Expenses | 557 | $ 346 | $ 379 |
Balance assumed in acquisition | $ 215 | ||
Deductions/ Write-offs of Accounts | |||
Balance at End of Period | $ 6,205 | $ 5,433 | $ 5,087 |
Note 8 - Net Income Per Share -
Note 8 - Net Income Per Share - Calculation of Earnings Per Share (Details) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Net income | $ 12,407 | $ 18,462 | $ 20,929 |
Denominator: | |||
Basic weighted-average shares outstanding (in shares) | 31,424 | 30,743 | 29,826 |
Effect of dilutive options and restricted stock (in shares) | 740 | 1,196 | 1,567 |
Diluted weighted-average shares outstanding (in shares) | 32,164 | 31,939 | 31,393 |
Net income per share - Basic (in dollars per share) | $ 0.39 | $ 0.60 | $ 0.70 |
Net income per share - Diluted (in dollars per share) | $ 0.39 | $ 0.58 | $ 0.67 |
Note 8 - Net Income Per Share56
Note 8 - Net Income Per Share - Antidilutive Securities (Details) - shares shares in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Employee Stock Option [Member] | ||
Antidilutive securities (in shares) | 127 | 61 |
Restricted Stock Units (RSUs), Nonvested [Member] | ||
Antidilutive securities (in shares) | 714 | 19 |
Employee Stock Purchase Plan [Member] | ||
Antidilutive securities (in shares) | 255 | 50 |
Antidilutive securities (in shares) | 1,096 | 130 |
Note 9 - Customer and Geograp57
Note 9 - Customer and Geographic Information (Details Textual) | 9 Months Ended |
Sep. 30, 2015 | |
Number of Operating Segments | 1 |
Note 9 - Customer and Geograp58
Note 9 - Customer and Geographic Information - Revenue Percentage by Major Customers (Details) - Sales Revenue, Net [Member] - Customer Concentration Risk [Member] | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||
Customer A [Member] | |||||
Concentration Risk, Percentage | 53.00% | 52.00% | 33.00% | ||
Customer B [Member] | |||||
Concentration Risk, Percentage | [1] | 16.00% | 17.00% | [1] | |
Customer C [Member] | |||||
Concentration Risk, Percentage | 12.00% | [1] | 11.00% | 24.00% | |
[1] | represents less than 10% |
Note 9 - Customer and Geograp59
Note 9 - Customer and Geographic Information - Receivables Percentage by Major Customers (Details) - Customer Concentration Risk [Member] - Accounts Receivable [Member] | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | |||
Customer A [Member] | ||||
Concentration Risk, Percentage | 65.00% | 51.00% | ||
Customer B [Member] | ||||
Concentration Risk, Percentage | [1] | 21.00% | ||
Customer C [Member] | ||||
Concentration Risk, Percentage | [1] | |||
[1] | represents less than 10% |
Note 9 - Customer and Geograp60
Note 9 - Customer and Geographic Information - Revenues by Geographic Area (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Geographic Concentration Risk [Member] | Sales Revenue, Net [Member] | UNITED STATES | |||
Revenues | $ 45,082 | $ 44,963 | $ 39,057 |
Concentration Risk, Percentage | 46.00% | 44.00% | 38.00% |
Geographic Concentration Risk [Member] | Sales Revenue, Net [Member] | GERMANY | |||
Revenues | $ 23,198 | $ 35,142 | $ 22,431 |
Concentration Risk, Percentage | 24.00% | 35.00% | 22.00% |
Geographic Concentration Risk [Member] | Sales Revenue, Net [Member] | KOREA, REPUBLIC OF | |||
Revenues | $ 10,629 | $ 5,667 | $ 20,953 |
Concentration Risk, Percentage | 11.00% | 6.00% | 21.00% |
Geographic Concentration Risk [Member] | Sales Revenue, Net [Member] | Rest of the World [Member] | |||
Revenues | $ 19,068 | $ 14,391 | $ 19,012 |
Concentration Risk, Percentage | 19.00% | 15.00% | 19.00% |
Geographic Concentration Risk [Member] | Sales Revenue, Net [Member] | |||
Revenues | $ 97,977 | $ 100,163 | $ 101,453 |
Concentration Risk, Percentage | 100.00% | 100.00% | 100.00% |
Revenues | $ 97,977 | $ 100,163 | $ 101,453 |
Note 9 - Customer and Geograp61
Note 9 - Customer and Geographic Information - Long-lived Assets by Geographic Area (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
North America [Member] | ||
Long-lived assets | $ 10,752 | $ 8,240 |
Rest of the World [Member] | ||
Long-lived assets | 573 | 592 |
Long-lived assets | $ 11,325 | $ 8,832 |
Note 10 - Financial Instrumen62
Note 10 - Financial Instruments (Details Textual) - Foreign Exchange Contract [Member] - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Other Nonoperating Income (Expense) [Member] | |||
Derivative, Gain (Loss) on Derivative, Net | $ 800,000 | $ 900,000 | $ 100,000 |
Other Current Liabilities [Member] | |||
Derivative Liability, Current | 62,000 | ||
Derivative Asset, Notional Amount | $ 6,700,000 |
Note 10 - Fair Value, Assets Me
Note 10 - Fair Value, Assets Measured on Recurring Basis (Details) - Money Market Mutual Funds [Member] - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value, Inputs, Level 1 [Member] | ||
Money market mutual funds | $ 26,371 | $ 26,356 |
Fair Value, Inputs, Level 2 [Member] | ||
Money market mutual funds | ||
Fair Value, Inputs, Level 3 [Member] | ||
Money market mutual funds | ||
Money market mutual funds | $ 26,371 | $ 26,356 |
Note 11 - Employee Benefit Pl64
Note 11 - Employee Benefit Plan (Details Textual) | 12 Months Ended |
Dec. 31, 2015 | |
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent | 15.00% |
Note 12 - Selected Quarterly 65
Note 12 - Selected Quarterly Financial Data (Unaudited) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenues | $ 24,072 | $ 23,878 | $ 23,210 | $ 26,817 | $ 26,061 | $ 22,406 | $ 24,610 | $ 27,086 | $ 97,977 | $ 100,163 | $ 101,453 |
Gross profit | 13,992 | 13,626 | 13,322 | 18,013 | 16,513 | 10,792 | 15,763 | 17,381 | 58,954 | 60,449 | 61,983 |
Net income | $ 2,797 | $ 1,494 | $ 2,149 | $ 5,967 | $ 5,750 | $ 1,761 | $ 4,696 | $ 6,255 | $ 12,407 | $ 18,462 | $ 20,929 |
Net income per share - Basic (in dollars per share) | $ 0.09 | $ 0.05 | $ 0.07 | $ 0.19 | $ 0.19 | $ 0.06 | $ 0.15 | $ 0.21 | $ 0.39 | $ 0.60 | $ 0.70 |
Net income per share - Diluted (in dollars per share) | $ 0.09 | $ 0.05 | $ 0.07 | $ 0.18 | $ 0.18 | $ 0.05 | $ 0.15 | $ 0.20 | $ 0.39 | $ 0.58 | $ 0.67 |