Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2016 | Oct. 28, 2016 | |
Document Information [Line Items] | ||
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) | 31,484,967 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) | Sep. 30, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 118,534,000 | $ 126,158,000 |
Accounts receivable, net of allowance of $200 and $299, respectively | 44,023,000 | 33,438,000 |
Prepaid expenses and other current assets | 5,163,000 | 3,655,000 |
Total current assets | 167,720,000 | 163,251,000 |
Property and equipment, net | 18,192,000 | 11,325,000 |
Deferred tax assets | 10,201,000 | 10,299,000 |
Goodwill | 215,000 | 215,000 |
Intangible assets, net | 4,411,000 | 5,028,000 |
Other non-current assets | 9,413,000 | 1,651,000 |
Total assets | 210,152,000 | 191,769,000 |
Current liabilities: | ||
Accounts payable | 947,000 | 1,293,000 |
Accrued compensation and related benefits | 5,190,000 | 4,812,000 |
Accrued and other current liabilities | 3,077,000 | 2,382,000 |
Deferred revenues – current portion | 8,399,000 | 4,702,000 |
Billings in excess of recognized revenue | 73,000 | 1,267,000 |
Total current liabilities | 17,686,000 | 14,456,000 |
Long-term income taxes payable | 2,859,000 | 2,540,000 |
Other non-current liabilities | 657,000 | 466,000 |
Total liabilities | 21,202,000 | 17,462,000 |
Commitments and contingencies (Note 9) | ||
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 38,077 and 37,476, respectively; shares outstanding 31,482 and 31,111, respectively | 5,000 | 5,000 |
Additional paid-in-capital | 277,498,000 | 266,008,000 |
Treasury stock at cost, 6,595 and 6,365 shares in 2016 and 2015, respectively | (53,726,000) | (50,383,000) |
Accumulated deficit | (33,614,000) | (39,780,000) |
Accumulated other comprehensive loss | (1,213,000) | (1,543,000) |
Total stockholders’ equity | 188,950,000 | 174,307,000 |
Total liabilities and stockholders’ equity | $ 210,152,000 | $ 191,769,000 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Accounts receivable, allowance | $ 200 | $ 299 |
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) | 38,077,000 | 37,476,000 |
Common stock, shares outstanding (in shares) | 31,482,000 | 31,111,000 |
Treasury stock, shares (in shares) | 6,595,000 | 6,365,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Revenues: | ||||
Design-to-silicon-yield solutions | $ 18,552 | $ 17,246 | $ 57,704 | $ 49,557 |
Gainshare performance incentives | 8,707 | 6,632 | 21,324 | 24,348 |
Total revenues | 27,259 | 23,878 | 79,028 | 73,905 |
Costs of Design-to-silicon-yield solutions: | ||||
Direct costs of Design-to-silicon-yield solutions | 11,366 | 10,172 | 32,034 | 28,863 |
Amortization of acquired technology | 86 | 80 | 278 | 80 |
Total cost of Design-to-silicon-yield solutions | 11,452 | 10,252 | 32,312 | 28,943 |
Gross profit | 15,807 | 13,626 | 46,716 | 44,962 |
Operating expenses: | ||||
Research and development | 7,017 | 5,173 | 20,388 | 13,698 |
Selling, general and administrative | 5,548 | 5,665 | 15,766 | 15,336 |
Amortization of other acquired intangible assets | 106 | 89 | 340 | 89 |
Total operating expenses | 12,671 | 10,927 | 36,494 | 29,123 |
Income from operations | 3,136 | 2,699 | 10,222 | 15,839 |
Interest and other income (expense), net | (101) | 64 | (388) | 166 |
Income before income taxes | 3,035 | 2,763 | 9,834 | 16,005 |
Income tax provision | 1,145 | 1,269 | 3,668 | 6,395 |
Net income | $ 1,890 | $ 1,494 | $ 6,166 | $ 9,610 |
Net income per share: | ||||
Basic (in dollars per share) | $ 0.06 | $ 0.05 | $ 0.20 | $ 0.31 |
Diluted (in dollars per share) | $ 0.06 | $ 0.05 | $ 0.19 | $ 0.30 |
Weighted average common shares: | ||||
Basic (in shares) | 31,413 | 31,516 | 31,286 | 31,458 |
Diluted (in shares) | 32,373 | 32,106 | 32,040 | 32,266 |
Net income | $ 1,890 | $ 1,494 | $ 6,166 | $ 9,610 |
Other comprehensive income: | ||||
Foreign currency translation adjustments, net of tax | 157 | (54) | 331 | (656) |
Comprehensive income | $ 2,047 | $ 1,440 | $ 6,497 | $ 8,954 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Operating activities: | ||
Net income | $ 6,166,000 | $ 9,610,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 2,584,000 | 1,919,000 |
Stock-based compensation expense | 7,935,000 | 7,118,000 |
Accrued contingent earn-out payments | 475,000 | |
Amortization of acquired intangible assets | 617,000 | 169,000 |
Deferred taxes | 92,000 | 1,623,000 |
Loss on disposal of property and equipment | 107,000 | 3,000 |
Purchases of treasury stock in connection with tax withholdings on restricted stock grants | (1,161,000) | (1,057,000) |
Reversal of allowance for doubtful accounts | (99,000) | (82,000) |
Unrealized gain on foreign currency forward contract | (54,000) | (4,000) |
Tax benefit related to stock-based compensation expense | 1,003,000 | 1,756,000 |
Excess tax benefit from stock-based compensation | (950,000) | (1,661,000) |
Changes in operating assets and liabilities: | ||
Accounts receivable | (10,486,000) | 6,261,000 |
Prepaid expenses and other assets | (9,250,000) | (3,378,000) |
Accounts payable | 33,000 | (287,000) |
Accrued compensation and related benefits | 277,000 | (1,946,000) |
Accrued and other liabilities | 139,000 | 609,000 |
Deferred revenues | 3,959,000 | 796,000 |
Billings in excess of recognized revenues | (1,194,000) | 149,000 |
Net cash provided by (used in) operating activities | (282,000) | 22,073,000 |
Investing activities: | ||
Purchases of property and equipment | (8,860,000) | (4,032,000) |
Payments for business acquisitions, net of cash acquired | (5,152,000) | |
Net cash used in investing activities | (8,860,000) | (9,184,000) |
Financing activities: | ||
Proceeds from exercise of stock options | 1,132,000 | 4,899,000 |
Proceeds from employee stock purchase plan | 1,558,000 | 1,379,000 |
Excess tax benefit from stock-based compensation | 950,000 | 1,661,000 |
Purchases of treasury stock | (2,182,000) | (9,613,000) |
Payments on long-term obligations assumed in business acquisition | (347,000) | |
Net cash provided by (used in) financing activities | 1,458,000 | (2,021,000) |
Effect of exchange rate changes on cash and cash equivalents | 60,000 | (73,000) |
Net change in cash and cash equivalents | (7,624,000) | 10,795,000 |
Cash and cash equivalents, beginning of period | 126,158,000 | 115,464,000 |
Cash and cash equivalents, end of period | 118,534,000 | 126,259,000 |
Supplemental disclosure of cash flow information: | ||
Taxes | 2,616,000 | 4,347,000 |
Interest | 16,000 | |
Property and equipment received and accrued in accounts payable and accrued and other liabilities | $ 913,000 | $ 268,000 |
Note 1 - Basis of Presentation
Note 1 - Basis of Presentation | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | 1. BASIS OF PRESENTATION Basis of Presentation The interim unaudited condensed consolidated financial statements included herein have been prepared by PDF Solutions, Inc. (“the Company”) pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”), including the instructions to the Quarterly Report on Form 10-Q and Article 10 of Regulation S-X. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. The interim unaudited condensed consolidated financial statements reflect, in the opinion of management, all adjustments necessary (consisting only of normal recurring adjustments), to present a fair statement of results for the interim periods presented. The operating results for any interim period are not necessarily indicative of the results that may be expected for other interim periods or the full fiscal year. The accompanying interim unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015. The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries after the elimination of all intercompany balances and transactions. The condensed consolidated balance sheet at December 31, 2015, has been derived from the audited consolidated financial statements but does not include all disclosures required by accounting principles generally accepted in the United States of America. Use of Estimates Revenue Recognition Design-to-Silicon-Yield Solutions — Revenue that is derived from Design-to-silicon-yield solutions comes from services and software licenses. The Company recognizes revenue 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 percentage of completion method of contract accounting based on costs or labor-hours input method, whichever is the most appropriate measure of the progress towards completion of the contract. 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 (cumulative catch-up method). 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 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. The Company also defers costs from arrangements that required the Company to defer the revenues, typically due to revenue recognition from multi-element arrangements or from contracts subject to customer acceptance. These costs are recognized in proportion to the related revenue. At the end of 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. 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 (1) persuasive evidence of an arrangement exists, (2) delivery has occurred, (3) the fee is fixed or determinable, (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 allows for the use of a hosted software product or service over a contractually determined period of time without taking possession of software is accounted for as a subscription and recognized as revenue ratably over the coverage period beginning on the date the service is first 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 percentage of completion method of contract accounting, and such revenue is recorded as services revenue. Deferred revenues consist primarily of amounts invoiced in advance of revenue recognition and are recognized as the revenue recognition criteria are met. Deferred revenues that will be recognized during the succeeding 12-month period are recorded as current deferred revenues and the remaining portion is recorded as non- current deferred revenues. The non-current portion of deferred revenue was $0.5 million as of September 30, 2016 and $0.3 million as of December 31, 2015. This balance was recorded in the other non-current liabilities in the accompanying condensed 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. |
Note 2 - Recent Accounting Pron
Note 2 - Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | 2. RECENT ACCOUNTING PRONOUNCEMENTS There have been no developments to recently issued accounting standards, including the expected dates of adoption and estimated effects on the Company’s consolidated financial statements and footnote disclosures, from those disclosed in the Company’s 2015 Annual Report on Form 10-K, except for the following: 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. In March 2016, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net). This update clarifies the implementation guidance on principal versus agent considerations. The guidance includes indicators to assist an entity in determining whether it controls a specified good or service before it is transferred to the customers. In April 2016, the FASB issued ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing. The amendments in this update affect entities with transactions included within the scope of Topic 606. The core principle of the guidance in Topic 606 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The amendments in this Update do not change the core principle of the guidance in Topic 606. Rather, the amendments in this update clarify the following two aspects of Topic 606: identifying performance obligations and the licensing implementation guidance, while retaining the related principles for those areas. In May 2016, the FASB issued ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients. The purpose of this standard is to clarify certain narrow aspects of Topic 660 such as assessing the collectability criterion, presentation of sales taxes and other similar taxes collected from customers, noncash consideration, contract modifications at transition, completed contracts at transition, and technical correction. These standards should be adopted concurrently with adoption of ASU 2014-09 which is effective for the Company’s annual and interim periods beginning January 1, 2018. The Company has not yet selected a transition method nor has it determined the effect of the standard on its ongoing financial reporting. In February 2016, the Financial Accounting Standards Board (or FASB) issued Accounting Standards Update (or ASU) No. 2016-2, Leases (Topic 842). The update requires that most leases, including operating leases, be recorded on the balance sheet as an asset and a liability, initially measured at the present value of the lease payments. Subsequently, the lease asset will be amortized generally on a straight-line basis over the lease term, and the lease liability will bear interest expense and be reduced for lease payments. The amendments in this update are effective for public companies’ financial statements issued for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company is currently assessing the impact that adopting this new accounting standard will have on its consolidated financial statements and footnote disclosures. In March 2016, the FASB issued ASU No. 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. This standard makes several modifications to Topic 718 related to the accounting for forfeitures, employer tax withholding on share-based compensation and the financial statement presentation of excess tax benefits or deficiencies. ASU 2016-09 also clarifies the statement of cash flows presentation for certain components of share-based awards. The update is effective for interim and annual reporting periods beginning after December 15, 2016, and interim periods within those annual periods. Early adoption is permitted in any interim or annual period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. An entity that elects early adoption must adopt all of the amendments in the same period. The Company is currently assessing the impact that adopting this new accounting standard will have on its consolidated financial statements and footnote disclosures. In May 2016, the FASB issued ASU No. 2016-11, Revenue Recognition (Topic 605) and Derivatives and Hedging (Topic 815): Rescission of SEC Guidance Because of Accounting Standards Updates 2014-09 and 2014-16 pursuant to Staff announcements at the March 3, 2016 EITF Meeting. The purpose of this standard is to rescind from the FASB Accounting Standards Codification certain SEC paragraphs as a result of two SEC Staff Announcements at the March 3, 2016 meeting. The amendments in this update related to Topic 605 are effective for interim and annual reporting periods beginning after December 15, 2017 and amendments related to Topic 815 are effective for interim and annual reporting periods beginning after December 15, 2015. The Company is currently assessing the impact that adopting this new accounting standard will have on its consolidated financial statements and footnote disclosures. In August 2016, the FASB issued ASU No. 2016-15, Classification of Certain Cash Receipts and Cash Payments. The purpose of this standard is to clarify the treatment of several cash flow categories. This update is effective for annual periods beginning after December 15, 2017, and interim periods within those fiscal years, with early adoption permitted, including adoption in an interim period. The Company is currently assessing the impact that adopting this new accounting standard will have on its consolidated financial statements and footnote disclosures. |
Note 3 - Balance Sheet Componen
Note 3 - Balance Sheet Components | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Supplemental Balance Sheet Disclosures [Text Block] | 3. BALANCE SHEET COMPONENTS Accounts receivable include amounts that are unbilled at the end of the period that are expected to be billed and collected within 12-month period. Unbilled accounts receivable are determined on an individual contract basis. Unbilled accounts receivable, included in accounts receivable, totaled $18.5 million and $11.5 million as of September 30, 2016 and December 31, 2015, respectively. Unbilled accounts receivable that are not expected to be billed and collected during the succeeding 12-month period are recorded in other non-current assets and totaled $7.7 million and $0.1 million as of September 30, 2016 and December 31, 2015, respectively. The increase in other non-current asset is due to the increase in the long-term unbilled portion of two of the Company’s Design-to-silicon-yield solutions contracts. Deferred costs balance was $0.8 million and zero as of September 30, 2016 and December 31, 2015, respectively. The balance was included in prepaid expense and other current assets and other non-current assets in the accompanying balance sheets. Property and equipment, net consists of (in thousands): September 30 , 2016 December 31, 2015 Property and equipment, net: Computer equipment $ 10,828 $ 9,188 Software 1,835 1,713 Furniture, fixtures and equipment 1,140 907 Leasehold improvements 1,157 1,126 Test equipment 10,799 7,214 Construction-in-progress 8,588 4,777 34,347 24,925 Less: accumulated depreciation (16,155 ) (13,600 ) Total $ 18,192 $ 11,325 Depreciation and amortization expense was $1.0 million and $0.7 million for the three months ended September 30, 2016 and 2015, respectively. Depreciation and amortization expense was $2.6 million and $1.9 million for the nine months ended September 30, 2016 and 2015, respectively. Property and equipment related to our DFI solution was $9.6 million and $2.7 million as of September 30, 2016 and December 31, 2015, respectively. As of both September 30, 2016 and December 31, 2015, the carrying amount of goodwill was $0.2 million. The following is a rollforward of the Company's goodwill balance (in thousands): September 30 , 2016 Balance as of December 31, 2015 $ 215 Adjustment — Balance as of September 30, 2016 $ 215 Intangible assets balance was $4.4 million and $5.0 million as of September 30, 2016 and December 31, 2015, respectively. Intangible assets as of September 30, 2016 and December 31, 2015 consist of the following (in thousands): September 30 , 2016 December 31, 2015 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 $ (3,756 ) $ 2,164 $ 5,920 $ (3,547 ) $ 2,373 Developed technology 4 - 6 14,100 (12,263 ) 1,837 14,100 (11,976 ) 2,124 Tradename 2 - 4 610 (570 ) 40 610 (533 ) 77 Backlog 1 100 (100 ) - 100 (46 ) 54 Patent 7 - 10 1,800 (1,430 ) 370 1,800 (1,400 ) 400 Other acquired intangibles 4 255 (255 ) - 255 (255 ) - Total $ 22,785 $ (18,374 ) $ 4,411 $ 22,785 $ (17,757 ) $ 5,028 The weighted average amortization period for acquired identifiable intangible assets was 6.61 years as of September 30, 2016. For both the three months ended September 30, 2016 and 2015, intangible asset amortization expense was $0.2 million. For the nine months ended September 30, 2016 and 2015, intangible asset amortization expense was $0.6 million and $0.2 million, respectively. The Company expects annual amortization of acquired identifiable intangible assets to be as follows (in thousands): Period Ending September 30 , 2016 (remaining 3 months) $ 188 2017 728 2018 701 2019 701 2020 701 2021 and thereafter 1,392 Total future amortization expense $ 4,411 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 the three and nine months ended September 30, 2016, there were no indicators of impairment related to the Company’s intangible assets. |
Note 4 - Stockholders' Equity
Note 4 - Stockholders' Equity | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Shareholders' Equity and Share-based Payments [Text Block] | 4. STOCKHOLDERS’ EQUITY 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 . Three Months Ended September 30 , Nine Months Ended September 30 , 2016 2015 2016 2015 Cost of design-to-silicon yield-solutions $ 1,191 $ 1,039 $ 3,232 $ 2,840 Research and development 894 617 2,251 1,618 Selling, general and administrative 892 908 2,452 2,660 Stock-based compensation expense $ 2,977 $ 2,564 $ 7,935 $ 7,118 On September 30, 2016, the Company had 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 the 2001Plan and the IDS Plan 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 plan, as applicable. The Company estimated the fair value of share-based awards granted under the Stock Plan during the period using the Black-Scholes-Merton option-pricing model with the following weighted average assumptions, resulting in the following weighted average fair values: Three Months Ended September 30 , Nine Months Ended September 30 , 2016 2015 2016 2015 Expected life (in years) 4.42 4.51 4.42 4.51 Volatility 42.97 % 45.56 % 43.82 % 45.96 % Risk-free interest rate 1.10 % 1.38 % 1.20 % 1.36 % Expected dividend — — — — Weighted average fair value per share of options granted during the period $ 5.52 $ 5.48 $ 4.82 $ 5.85 As of September 30, 2016, 8.3 million shares of common stock were reserved to cover stock-based awards under the 2011 Plan, of which 3.5 million shares were available for future grant. The number of shares reserved and available under the 2011 Plan includes 0.5 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 September 30, 2016. As of September 30, 2016, there were no outstanding awards that had been granted outside of the 2011, 2001 or the IDS Plans (collectively, the "Stock Plans"). Stock option activity under the Company’s Stock Plans during the nine months ended September 30, 2016, was as follows: 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, 2016 1,764 $ 7.88 Granted (weighted average fair value of $4.82 per share) 75 $ 12.98 Exercised (150 ) $ 7.55 Canceled (28 ) $ 13.68 Expired (75 ) $ 13.78 Outstanding, September 30, 2016 1,586 $ 7.77 4.55 $ 16,565 Vested and expected to vest, September 30, 2016 1,577 $ 7.74 4.53 $ 16,520 Exercisable, September 30, 2016 1,452 $ 7.22 4.15 $ 15,943 The aggregate intrinsic value in the table above represents the total intrinsic value based on the Company’s closing stock price of $18.17 per share as of September 30, 2016. The total intrinsic value of options exercised during the nine months ended September 30, 2016, was $1.1 million. As of September 30, 2016, there was $0.6 million of total unrecognized compensation cost related to unvested stock options. That cost is expected to be recognized over a weighted average period of 3.0 years. The total fair value of shares vested during the nine months ended September 30, 2016, was $0.5 million. Nonvested restricted stock units activity during the nine months ended September 30, 2016, was as follows: Shares (in thousands) Weighted Average Grant Date Fair Value Per Share Nonvested, January 1, 2016 1,166 $ 17.03 Granted 902 $ 14.05 Vested (278 ) $ 16.55 Forfeited (104 ) $ 15.85 Nonvested, September 30, 2016 1,686 $ 15.58 As of September 30, 2016, there was $21.4 million of total unrecognized compensation cost related to nonvested restricted stock units. That cost is expected to be recognized over a weighted average period of 2.9 years. Restricted stock units do not have rights to dividends prior to vesting. Employee Stock Purchase Plan The Company estimated the fair value of purchase rights granted under the Purchase Plan during the period using the Black-Scholes-Merton option-pricing model with the following weighted average assumptions, resulting in the following weighted average fair values: Nine months Ended September 30 , 2016 2015 Expected life (in years) 1.25 1.25 Volatility 44.00 % 50.12 % Risk-free interest rate 0.50 % 0.34 % Expected dividend — — Weighted average fair value of purchase rights granted under the Purchase Plan $ 3.70 $ 5.51 During the three months ended September 30, 2016 and 2015, a total of 89,000 and 59,000 shares, respectively, were issued at a weighted-average purchase price of $8.81 and $11.91 per share. During the nine months ended September 30, 2016 and 2015, a total of 173,000 and 110,000 shares, respectively, were issued at a weighted-average purchase price of $9.00 and $12.57 per share, respectively, under the Purchase Plan. As of September 30, 2016, there was $1.0 million of unrecognized compensation cost related to the Purchase Plan. That cost is expected to be recognized over a weighted average period of 1.4 years. As of September 30, 2016, 2.6 million shares were available for future issuance under the Purchase Plan. Stock Repurchase Program |
Note 5 - Income Taxes
Note 5 - Income Taxes | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 5. INCOME TAXES Income tax provision decreased $2.7 million for the nine months ended September 30, 2016, to $3.7 million as compared to an income tax provision of $6.4 million for the nine months ended September 30, 2015. The Company’s effective tax rate was 37.3% and 40% for the nine months ended September 30, 2016, and September 30, 2015, respectively. The Company’s effective tax rate decreased in the nine months ended September 30, 2016, as compared to the same period in 2015, primarily due to the permanent reinstatement of the U.S. federal research tax credit. On December 18, 2015, the President of the United States signed into law the Protecting Americans from Tax Hikes Act of 2015 which permanently reinstated the research tax credit retroactive to January 1, 2015. As a result of the new legislation, the Company recognized a benefit in the first three quarters of 2016 and no benefit in the same period in 2015. The Company’s total amount of unrecognized tax benefits, excluding interest and penalties, as of September 30, 2016, was $11.6 million, of which $7.0 million, if recognized, would decrease the Company’s effective tax rate. 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 affect the Company's effective tax rate. As of September 30, 2016, the Company has recorded unrecognized tax benefits of $2.9 million, including interest and penalties, as long-term taxes payable in its condensed consolidated balance sheet. The remaining $9.3 million has been recorded net of our deferred tax assets, of which $4.6 million is subject to a full valuation allowance. The valuation allowance was approximately $6.5 million and $6.2 million as of September 30, 2016 and December 31, 2015, respectively, which was related to California R&D tax credits and California net operating losses related to our acquisition of Syntricity that we currently do not believe are more likely than not to be ultimately realized. 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 Company is not subject to income tax examinations in any of its major foreign subsidiaries’ jurisdictions. |
Note 6 - Net Income Per Share
Note 6 - Net Income Per Share | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | 6. 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): Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Numerator: Net income $ 1,890 $ 1,494 $ 6,166 $ 9,610 Denominator: Basic weighted average common shares outstanding 31,413 31,516 31,286 31,458 Dilutive effect of equity incentive plans 960 590 754 808 Diluted weighted average common shares outstanding 32,373 32,106 32,040 32,266 Net income per share: Basic $ 0.06 $ 0.05 $ 0.20 $ 0.31 Diluted $ 0.06 $ 0.05 $ 0.19 $ 0.30 The following table sets forth potential shares of common stock that are not included in the diluted net income per share calculation above because to do so would be anti-dilutive for the periods indicated (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Outstanding options 119 228 188 116 Nonvested restricted stock units 226 1,231 389 660 Employee Stock Purchase Plan 25 276 162 252 Total 370 1,735 739 1,028 |
Note 7 - Customer and Geographi
Note 7 - Customer and Geographic Information | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | 7. 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 companies designing and/or manufacturing integrated circuits. The Company had revenues from individual customers in excess of 10% of total revenues as follows: Three Months Ended September 30, Nine Months Ended September 30, Customer 2016 2015 2016 2015 A 38 % 60 % 42 % 52 % B 12 % * % 12 % 12 % * represents less than 10% The Company had gross accounts receivable from individual customers in excess of 10% of gross accounts receivable as follows: Customer September 30, 2016 December 31, 2015 A 45 % 65 % C 10 % * % * represents less than 10% Revenues from customers by geographic area based on the location of the customers’ work sites are as follows (in thousands): Three Months Ended September 30 , 2016 2015 Revenues Percentage of Revenues Revenues Percentage of Revenues United States $ 8,680 32 % $ 12,795 54 % Germany 4,896 18 5,017 21 Taiwan 4,079 15 2,469 10 South Korea 3,027 11 764 3 China 2,907 11 204 1 Rest of the world 3,670 13 2,629 11 Total revenue $ 27,259 100 % $ 23,878 100 % Nine Months Ended September 30, 2016 2015 Revenues Percentage of Revenues Revenues Percentage of Revenues United States $ 30,320 38 % $ 34,545 47 % Taiwan 11,988 15 5,747 8 Germany 11,924 15 17,626 24 South Korea 8,523 11 8,309 11 Rest of the world 16,273 21 7,678 10 Total revenue $ 79,028 100 % $ 73,905 100 % Long-lived assets, net by geographic area are as follows (in thousands): September 30 , 2016 December 31, 2015 United States $ 17,661 $ 10,752 Rest of the world 531 573 Total long-lived assets, net $ 18,192 $ 11,325 |
Note 8 - Fair Value Measurement
Note 8 - Fair Value Measurements | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | 8. FAIR VALUE MEASUREMENTS 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 September 30, 2016, 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 $ 26,438 $ 26,438 $ — $ — 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 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 three months ended September 30, 2016 and 2015, the Company recognized a realized gain of $37,000 and a realized loss of $15,000 on the contracts, respectively, which was recorded in other income (expense), net in the Company’s Statements of Operations and Comprehensive Income. For the nine months ended September 30, 2016 and 2015, the Company recognized a realized gain of $45,000 and a realized loss of $0.6 million on the contracts, respectively, which was recorded in other income (expense), net in the Company’s 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 September 30, 2016, the Company had one outstanding forward contract with a notional amount of $7.2 million and recorded $8,000 other current liabilities associated with this outstanding forward contract. As of December 31, 2015, the Company had one outstanding forward contract with a notional amount of $6.7 million and had recorded $62,000 other current liabilities associated with the outstanding forward contract. |
Note 9 - Commitments and Contin
Note 9 - Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | 9. COMMITMENTS AND CONTINGENCIES Leases The Company leases administrative and sales offices and certain equipment under noncancelable operating leases, which contain various renewal options and, in some cases, require payment of common area costs, taxes and utilities. These operating leases expire at various times through 2024. Rent expense was $0.6 million and $0.5 million for the three months ended September 30, 2016 and 2015, respectively. Rent expense was $1.7 million and $1.6 million for the nine months ended September 30, 2016 and 2015. Future minimum lease payments under noncancelable operating leases at September 30, 2016, are as follows (in thousands): Period Ending September 30, Amount 2016 (remaining three months) $ 516 2017 1,737 2018 1,089 2019 265 2020 196 2021 and thereafter 62 Total future minimum lease payments $ 3,865 Litigation |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation The interim unaudited condensed consolidated financial statements included herein have been prepared by PDF Solutions, Inc. (“the Company”) pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”), including the instructions to the Quarterly Report on Form 10-Q and Article 10 of Regulation S-X. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. The interim unaudited condensed consolidated financial statements reflect, in the opinion of management, all adjustments necessary (consisting only of normal recurring adjustments), to present a fair statement of results for the interim periods presented. The operating results for any interim period are not necessarily indicative of the results that may be expected for other interim periods or the full fiscal year. The accompanying interim unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015. The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries after the elimination of all intercompany balances and transactions. The condensed consolidated balance sheet at December 31, 2015, has been derived from the audited consolidated financial statements but does not include all disclosures required by accounting principles generally accepted in the United States of America. |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates |
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition Design-to-Silicon-Yield Solutions — Revenue that is derived from Design-to-silicon-yield solutions comes from services and software licenses. The Company recognizes revenue 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 percentage of completion method of contract accounting based on costs or labor-hours input method, whichever is the most appropriate measure of the progress towards completion of the contract. 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 (cumulative catch-up method). 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 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. The Company also defers costs from arrangements that required the Company to defer the revenues, typically due to revenue recognition from multi-element arrangements or from contracts subject to customer acceptance. These costs are recognized in proportion to the related revenue. At the end of 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. 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 (1) persuasive evidence of an arrangement exists, (2) delivery has occurred, (3) the fee is fixed or determinable, (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 allows for the use of a hosted software product or service over a contractually determined period of time without taking possession of software is accounted for as a subscription and recognized as revenue ratably over the coverage period beginning on the date the service is first 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 percentage of completion method of contract accounting, and such revenue is recorded as services revenue. Deferred revenues consist primarily of amounts invoiced in advance of revenue recognition and are recognized as the revenue recognition criteria are met. Deferred revenues that will be recognized during the succeeding 12-month period are recorded as current deferred revenues and the remaining portion is recorded as non- current deferred revenues. The non-current portion of deferred revenue was $0.5 million as of September 30, 2016 and $0.3 million as of December 31, 2015. This balance was recorded in the other non-current liabilities in the accompanying condensed 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. |
Note 3 - Balance Sheet Compon16
Note 3 - Balance Sheet Components (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Notes Tables | |
Property, Plant and Equipment [Table Text Block] | September 30 , 2016 December 31, 2015 Property and equipment, net: Computer equipment $ 10,828 $ 9,188 Software 1,835 1,713 Furniture, fixtures and equipment 1,140 907 Leasehold improvements 1,157 1,126 Test equipment 10,799 7,214 Construction-in-progress 8,588 4,777 34,347 24,925 Less: accumulated depreciation (16,155 ) (13,600 ) Total $ 18,192 $ 11,325 |
Schedule of Goodwill [Table Text Block] | September 30 , 2016 Balance as of December 31, 2015 $ 215 Adjustment — Balance as of September 30, 2016 $ 215 |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | September 30 , 2016 December 31, 2015 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 $ (3,756 ) $ 2,164 $ 5,920 $ (3,547 ) $ 2,373 Developed technology 4 - 6 14,100 (12,263 ) 1,837 14,100 (11,976 ) 2,124 Tradename 2 - 4 610 (570 ) 40 610 (533 ) 77 Backlog 1 100 (100 ) - 100 (46 ) 54 Patent 7 - 10 1,800 (1,430 ) 370 1,800 (1,400 ) 400 Other acquired intangibles 4 255 (255 ) - 255 (255 ) - Total $ 22,785 $ (18,374 ) $ 4,411 $ 22,785 $ (17,757 ) $ 5,028 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Period Ending September 30 , 2016 (remaining 3 months) $ 188 2017 728 2018 701 2019 701 2020 701 2021 and thereafter 1,392 Total future amortization expense $ 4,411 |
Note 4 - Stockholders' Equity (
Note 4 - Stockholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Notes Tables | |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block] | Three Months Ended September 30 , Nine Months Ended September 30 , 2016 2015 2016 2015 Cost of design-to-silicon yield-solutions $ 1,191 $ 1,039 $ 3,232 $ 2,840 Research and development 894 617 2,251 1,618 Selling, general and administrative 892 908 2,452 2,660 Stock-based compensation expense $ 2,977 $ 2,564 $ 7,935 $ 7,118 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | Three Months Ended September 30 , Nine Months Ended September 30 , 2016 2015 2016 2015 Expected life (in years) 4.42 4.51 4.42 4.51 Volatility 42.97 % 45.56 % 43.82 % 45.96 % Risk-free interest rate 1.10 % 1.38 % 1.20 % 1.36 % Expected dividend — — — — Weighted average fair value per share of options granted during the period $ 5.52 $ 5.48 $ 4.82 $ 5.85 Nine months Ended September 30 , 2016 2015 Expected life (in years) 1.25 1.25 Volatility 44.00 % 50.12 % Risk-free interest rate 0.50 % 0.34 % Expected dividend — — Weighted average fair value of purchase rights granted under the Purchase Plan $ 3.70 $ 5.51 |
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | 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, 2016 1,764 $ 7.88 Granted (weighted average fair value of $4.82 per share) 75 $ 12.98 Exercised (150 ) $ 7.55 Canceled (28 ) $ 13.68 Expired (75 ) $ 13.78 Outstanding, September 30, 2016 1,586 $ 7.77 4.55 $ 16,565 Vested and expected to vest, September 30, 2016 1,577 $ 7.74 4.53 $ 16,520 Exercisable, September 30, 2016 1,452 $ 7.22 4.15 $ 15,943 |
Schedule of Share-based Compensation, Restricted Stock Units Award Activity [Table Text Block] | Shares (in thousands) Weighted Average Grant Date Fair Value Per Share Nonvested, January 1, 2016 1,166 $ 17.03 Granted 902 $ 14.05 Vested (278 ) $ 16.55 Forfeited (104 ) $ 15.85 Nonvested, September 30, 2016 1,686 $ 15.58 |
Note 6 - Net Income Per Share (
Note 6 - Net Income Per Share (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Numerator: Net income $ 1,890 $ 1,494 $ 6,166 $ 9,610 Denominator: Basic weighted average common shares outstanding 31,413 31,516 31,286 31,458 Dilutive effect of equity incentive plans 960 590 754 808 Diluted weighted average common shares outstanding 32,373 32,106 32,040 32,266 Net income per share: Basic $ 0.06 $ 0.05 $ 0.20 $ 0.31 Diluted $ 0.06 $ 0.05 $ 0.19 $ 0.30 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Outstanding options 119 228 188 116 Nonvested restricted stock units 226 1,231 389 660 Employee Stock Purchase Plan 25 276 162 252 Total 370 1,735 739 1,028 |
Note 7 - Customer and Geograp19
Note 7 - Customer and Geographic Information (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Notes Tables | |
Schedule of Revenue by Major Customers by Reporting Segments [Table Text Block] | Three Months Ended September 30, Nine Months Ended September 30, Customer 2016 2015 2016 2015 A 38 % 60 % 42 % 52 % B 12 % * % 12 % 12 % |
Receivables by Major Customers [Table Text Block] | Customer September 30, 2016 December 31, 2015 A 45 % 65 % C 10 % * % |
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Table Text Block] | Three Months Ended September 30 , 2016 2015 Revenues Percentage of Revenues Revenues Percentage of Revenues United States $ 8,680 32 % $ 12,795 54 % Germany 4,896 18 5,017 21 Taiwan 4,079 15 2,469 10 South Korea 3,027 11 764 3 China 2,907 11 204 1 Rest of the world 3,670 13 2,629 11 Total revenue $ 27,259 100 % $ 23,878 100 % Nine Months Ended September 30, 2016 2015 Revenues Percentage of Revenues Revenues Percentage of Revenues United States $ 30,320 38 % $ 34,545 47 % Taiwan 11,988 15 5,747 8 Germany 11,924 15 17,626 24 South Korea 8,523 11 8,309 11 Rest of the world 16,273 21 7,678 10 Total revenue $ 79,028 100 % $ 73,905 100 % |
Schedule of Disclosure on Geographic Areas, Long-Lived Assets in Individual Foreign Countries by Country [Table Text Block] | September 30 , 2016 December 31, 2015 United States $ 17,661 $ 10,752 Rest of the world 531 573 Total long-lived assets, net $ 18,192 $ 11,325 |
Note 8 - Fair Value Measureme20
Note 8 - Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
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 $ 26,438 $ 26,438 $ — $ — 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 $ — $ — |
Note 9 - Commitments and Cont21
Note 9 - Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Notes Tables | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | Period Ending September 30, Amount 2016 (remaining three months) $ 516 2017 1,737 2018 1,089 2019 265 2020 196 2021 and thereafter 62 Total future minimum lease payments $ 3,865 |
Note 1 - Basis of Presentation
Note 1 - Basis of Presentation (Details Textual) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Other Noncurrent Liabilities [Member] | ||
Deferred Revenue, Noncurrent | $ 0.3 | |
Deferred Revenue, Noncurrent | $ 0.5 |
Note 3 - Balance Sheet Compon23
Note 3 - Balance Sheet Components (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Design-For-Inspection Solutions [Member] | |||||
Property, Plant and Equipment, Net | $ 9,600,000 | $ 9,600,000 | $ 2,700,000 | ||
Goodwill | 215,000 | 215,000 | 215,000 | ||
Amortization of Intangible Assets | 200,000 | $ 200,000 | 617,000 | $ 169,000 | |
Unbilled Receivables, Current | 18,500,000 | 18,500,000 | 11,500,000 | ||
Unbilled Receivables, Not Billable, Amount Expected to be Collected after Next Twelve Months | 7,700,000 | 7,700,000 | 100,000 | ||
Deferred Pre-contract Costs | 800,000 | 800,000 | 0 | ||
Depreciation, Depletion and Amortization, Nonproduction | 1,000,000 | $ 700,000 | 2,600,000 | $ 1,900,000 | |
Property, Plant and Equipment, Net | 18,192,000 | 18,192,000 | 11,325,000 | ||
Finite-Lived Intangible Assets, Net | $ 4,411,000 | $ 4,411,000 | $ 5,028,000 | ||
Finite-Lived Intangible Assets, Remaining Amortization Period | 6 years 222 days |
Note 3 - Balance Sheet Compon24
Note 3 - Balance Sheet Components - Property and Equipment (Details) - USD ($) | Sep. 30, 2016 | Dec. 31, 2015 |
Computer Equipment [Member] | ||
Property and equipment | $ 10,828,000 | $ 9,188,000 |
Software and Software Development Costs [Member] | ||
Property and equipment | 1,835,000 | 1,713,000 |
Furniture and Fixtures [Member] | ||
Property and equipment | 1,140,000 | 907,000 |
Leasehold Improvements [Member] | ||
Property and equipment | 1,157,000 | 1,126,000 |
Test Equipment [Member] | ||
Property and equipment | 10,799,000 | 7,214,000 |
Construction in Progress [Member] | ||
Property and equipment | 8,588,000 | 4,777,000 |
Property and equipment | 34,347,000 | 24,925,000 |
Less: accumulated depreciation | (16,155,000) | (13,600,000) |
Total | $ 18,192,000 | $ 11,325,000 |
Note 3 - Balance Sheet Compon25
Note 3 - Balance Sheet Components - Goodwill Activity (Details) | 9 Months Ended |
Sep. 30, 2016USD ($) | |
Syntricity [Member] | |
Balance | $ 215,000 |
Balance | 215,000 |
Balance | 215,000 |
Adjustment | |
Balance | $ 215,000 |
Note 3 - Balance Sheet Compon26
Note 3 - Balance Sheet Components - Intangible Assets (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2016 | Dec. 31, 2015 | |
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 | $ 5,920,000 |
Accumulated Amortization | (3,756,000) | (3,547,000) |
Finite-Lived Intangible Assets, Net | $ 2,164,000 | 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 | 14,100,000 |
Accumulated Amortization | (12,263,000) | (11,976,000) |
Finite-Lived Intangible Assets, Net | $ 1,837,000 | 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 | 610,000 |
Accumulated Amortization | (570,000) | (533,000) |
Finite-Lived Intangible Assets, Net | $ 40,000 | 77,000 |
Order or Production Backlog [Member] | ||
Amortization Period | 1 year | |
Gross Carrying Amount | $ 100,000 | 100,000 |
Accumulated Amortization | (100,000) | (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 | 1,800,000 |
Accumulated Amortization | (1,430,000) | (1,400,000) |
Finite-Lived Intangible Assets, Net | $ 370,000 | 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 | 22,785,000 |
Accumulated Amortization | (18,374,000) | (17,757,000) |
Finite-Lived Intangible Assets, Net | $ 4,411,000 | $ 5,028,000 |
Note 3 - Balance Sheet Compon27
Note 3 - Balance Sheet Components - Annual Amortization of Identifiable Intangible Assets (Details) - USD ($) | Sep. 30, 2016 | Dec. 31, 2015 |
2016 (remaining 3 months) | $ 188,000 | |
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 | $ 4,411,000 | $ 5,028,000 |
Note 4 - Stockholders' Equity28
Note 4 - Stockholders' Equity (Details Textual) - USD ($) $ / shares in Units, $ in Millions | Oct. 25, 2016 | Oct. 21, 2014 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Dec. 31, 2015 |
Outside of the 2011, 2001 or IDS Plans [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 0 | 0 | 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 | 7,800,000 | 7,800,000 | 7,800,000 | |||||
Share Based Compensation Arrangement By Share Based Payment Award Shares Reserved Decrease Rate | 1.33 | |||||||
Common Stock, Capital Shares Reserved for Future Issuance | 8,300,000 | 8,300,000 | 8,300,000 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 3,500,000 | 3,500,000 | 3,500,000 | |||||
Shares Previously Issued Under the 2001 Plan [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 3,500,000 | 3,500,000 | 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 | 500,000 | |||||||
Employee Stock Purchase Plan [Member] | ||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 146 days | |||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | $ 1 | $ 1 | $ 1 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Maximum Employee Subscription Rate | 10.00% | 10.00% | 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% | |||||||
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 89,000 | 59,000 | 173,000 | 110,000 | ||||
Employee Stock Purchase Plan Weighted Average Purchase Price of Shares Purchased | $ 8.81 | $ 11.91 | $ 9 | $ 12.57 | ||||
Number Of ESPP Shares Available For Future Issuance | 2,600,000 | 2,600,000 | 2,600,000 | |||||
Employee Stock Option [Member] | ||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | $ 0.6 | $ 0.6 | $ 0.6 | |||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 3 years | |||||||
Restricted Stock Units (RSUs) [Member] | ||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years 328 days | |||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | $ 21.4 | $ 21.4 | $ 21.4 | |||||
Subsequent Event [Member] | ||||||||
Stock Repurchase Program, Authorized Amount | $ 25 | |||||||
Stock Repurchase Program, Period in Force | 2 years | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 1,586,000 | 1,586,000 | 1,586,000 | 1,764,000 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period | 28,000 | |||||||
Share Price | $ 18.17 | $ 18.17 | $ 18.17 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | $ 1.1 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value | $ 0.5 | |||||||
Stock Repurchase Program, Authorized Amount | $ 25 | |||||||
Stock Repurchase Program, Period in Force | 2 years | |||||||
Treasury Stock, Shares, Acquired | 20,000 | 149,457 | 1,239,230 | |||||
Treasury Stock Acquired, Average Cost Per Share | $ 13.48 | |||||||
Treasury Stock, Value, Acquired, Cost Method | $ 16.7 | |||||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 8.3 | $ 8.3 | $ 8.3 |
Note 4 - Stockholders' Equity -
Note 4 - Stockholders' Equity - Allocation of Recognized Period Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Cost of Sales [Member] | ||||
Allocation of recognized period costs | $ 1,191 | $ 1,039 | $ 3,232 | $ 2,840 |
Research and Development Expense [Member] | ||||
Allocation of recognized period costs | 894 | 617 | 2,251 | 1,618 |
Selling, General and Administrative Expenses [Member] | ||||
Allocation of recognized period costs | 892 | 908 | 2,452 | 2,660 |
Allocation of recognized period costs | $ 2,977 | $ 2,564 | $ 7,935 | $ 7,118 |
Note 4 - Stockholders' Equity30
Note 4 - Stockholders' Equity - Stock Options, Valuation Assumptions (Details) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Stock Plans [Member] | ||||
Expected life (in years) | 4 years 153 days | 4 years 186 days | 4 years 153 days | 4 years 186 days |
Volatility | 42.97% | 45.56% | 43.82% | 45.96% |
Risk-free interest rate | 1.10% | 1.38% | 1.20% | 1.36% |
Expected dividend | 0.00% | 0.00% | ||
Weighted average fair value per share (in dollars per share) | $ 5.52 | $ 5.48 | $ 4.82 | $ 5.85 |
Employee Stock Purchase Plan [Member] | ||||
Expected life (in years) | 1 year 91 days | 1 year 91 days | ||
Volatility | 44.00% | 50.12% | ||
Risk-free interest rate | 0.50% | 0.34% | ||
Expected dividend | ||||
Weighted average fair value per share (in dollars per share) | $ 3.70 | $ 5.51 |
Note 4 - Stockholders' Equity31
Note 4 - Stockholders' Equity - Stock Options Activity (Details) $ / shares in Units, shares in Thousands, $ in Thousands | 9 Months Ended |
Sep. 30, 2016USD ($)$ / sharesshares | |
Outstanding, January 1, 2016 (in shares) | 1,764 |
Outstanding, January 1, 2016 (in dollars per share) | $ / shares | $ 7.88 |
Granted (weighted average fair value of $4.82 per share) (in shares) | 75 |
Exercised (in shares) | (150) |
Exercised (in dollars per share) | $ / shares | $ 7.55 |
Canceled (in shares) | (28) |
Canceled (in dollars per share) | $ / shares | $ 13.68 |
Expired (in shares) | (75) |
Expired (in dollars per share) | $ / shares | $ 13.78 |
Outstanding, September 30, 2016 (in shares) | 1,586 |
Outstanding, September 30, 2016 (in dollars per share) | $ / shares | $ 7.77 |
Outstanding, September 30, 2016 | 4 years 200 days |
Outstanding, September 30, 2016 | $ | $ 16,565 |
Vested and expected to vest, September 30, 2016 (in shares) | 1,577 |
Vested and expected to vest, September 30, 2016 (in dollars per share) | $ / shares | $ 7.74 |
Vested and expected to vest, September 30, 2016 | 4 years 193 days |
Vested and expected to vest, September 30, 2016 | $ | $ 16,520 |
Exercisable, September 30, 2016 (in shares) | 1,452 |
Exercisable, September 30, 2016 (in dollars per share) | $ / shares | $ 7.22 |
Exercisable, September 30, 2016 | 4 years 54 days |
Exercisable, September 30, 2016 | $ | $ 15,943 |
Note 4 - Stockholders' Equity32
Note 4 - Stockholders' Equity - Nonvested Restricted Stock Units Activity (Details) - Restricted Stock Units (RSUs) [Member] shares in Thousands | 9 Months Ended |
Sep. 30, 2016$ / sharesshares | |
Nonvested, January 1, 2016 (in shares) | shares | 1,166 |
Nonvested, January 1, 2016 (in dollars per share) | $ / shares | $ 17.03 |
Granted (in shares) | shares | 902 |
Granted (in dollars per share) | $ / shares | $ 14.05 |
Vested (in shares) | shares | (278) |
Vested (in dollars per share) | $ / shares | $ 16.55 |
Forfeited (in shares) | shares | (104) |
Forfeited (in dollars per share) | $ / shares | $ 15.85 |
Nonvested, September 30, 2016 (in shares) | shares | 1,686 |
Nonvested, September 30, 2016 (in dollars per share) | $ / shares | $ 15.58 |
Note 5 - Income Taxes (Details
Note 5 - Income Taxes (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
California R&D Tax Credits and California Net Operating Losses Related Acquisition of Syntricity [Member] | |||||
Deferred Tax Assets, Valuation Allowance | $ 6,500 | $ 6,500 | $ 6,200 | ||
Increase (Decrease) in Income Taxes | (2,700) | ||||
Income Tax Expense (Benefit) | 1,145 | $ 1,269 | $ 3,668 | $ 6,395 | |
Effective Income Tax Rate Reconciliation, Percent | 37.30% | 40.00% | |||
Unrecognized Tax Benefits | 11,600 | $ 11,600 | 11,000 | ||
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 7,000 | 7,000 | $ 6,500 | ||
Unrecognized Tax Benefits In Long Term Liabilities | 2,900 | 2,900 | |||
Unrecognized Tax Benefits In Deferred Tax Assets | 9,300 | 9,300 | |||
Unrecognized Tax Benefits In Deferred Tax Asset Subject To Full Valuation Allowance | $ 4,600 | $ 4,600 |
Note 6 - Net Income Per Share -
Note 6 - Net Income Per Share - Calculation of Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Net income | $ 1,890 | $ 1,494 | $ 6,166 | $ 9,610 |
Basic weighted average common shares outstanding (in shares) | 31,413 | 31,516 | 31,286 | 31,458 |
Dilutive effect of equity incentive plans (in shares) | 960 | 590 | 754 | 808 |
Diluted weighted average common shares outstanding (in shares) | 32,373 | 32,106 | 32,040 | 32,266 |
Basic (in dollars per share) | $ 0.06 | $ 0.05 | $ 0.20 | $ 0.31 |
Diluted (in dollars per share) | $ 0.06 | $ 0.05 | $ 0.19 | $ 0.30 |
Note 6 - Net Income Per Share35
Note 6 - Net Income Per Share - Antidilutive Securities (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Employee Stock Option [Member] | ||||
Antidilutive securities (in shares) | 119 | 228 | 188 | 116 |
Restricted Stock Units RSU Nonvested [Member] | ||||
Antidilutive securities (in shares) | 226 | 1,231 | 389 | 660 |
Employee Stock Purchase Plan [Member] | ||||
Antidilutive securities (in shares) | 25 | 276 | 162 | 252 |
Antidilutive securities (in shares) | 370 | 1,735 | 739 | 1,028 |
Note 7 - Customer and Geograp36
Note 7 - Customer and Geographic Information (Details Textual) | 9 Months Ended |
Sep. 30, 2016 | |
Number of Operating Segments | 1 |
Note 7 - Customer and Geograp37
Note 7 - Customer and Geographic Information - Revenue Percentage by Major Customers (Details) - Customer Concentration Risk [Member] - Sales Revenue, Net [Member] | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | ||
Customer A [Member] | |||||
Receivables percentage by major customer | 38.00% | 60.00% | 42.00% | 52.00% | |
Customer B [Member] | |||||
Receivables percentage by major customer | 12.00% | [1] | 12.00% | 12.00% | |
[1] | represents less than 10% |
Note 7 - Customer and Geograp38
Note 7 - Customer and Geographic Information - Receivables Percentage by Major Customers (Details) - Customer Concentration Risk [Member] - Accounts Receivable [Member] | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2016 | Dec. 31, 2015 | ||
Customer A [Member] | |||
Receivables percentage by major customer | 45.00% | 65.00% | |
Customer C [Member] | |||
Receivables percentage by major customer | 10.00% | [1] | |
[1] | represents less than 10% |
Note 7 - Customer and Geograp39
Note 7 - Customer and Geographic Information - Revenues by Geographic Area (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Geographic Concentration Risk [Member] | Sales Revenue, Net [Member] | UNITED STATES | ||||
Revenues | $ 8,680 | $ 12,795 | $ 30,320 | $ 34,545 |
Percentage of Revenues | 32.00% | 54.00% | 38.00% | 47.00% |
Geographic Concentration Risk [Member] | Sales Revenue, Net [Member] | GERMANY | ||||
Revenues | $ 4,896 | $ 5,017 | $ 11,924 | $ 17,626 |
Percentage of Revenues | 18.00% | 21.00% | 15.00% | 24.00% |
Geographic Concentration Risk [Member] | Sales Revenue, Net [Member] | TAIWAN, PROVINCE OF CHINA | ||||
Revenues | $ 4,079 | $ 2,469 | $ 11,988 | $ 5,747 |
Percentage of Revenues | 15.00% | 10.00% | 15.00% | 8.00% |
Geographic Concentration Risk [Member] | Sales Revenue, Net [Member] | KOREA, REPUBLIC OF | ||||
Revenues | $ 3,027 | $ 764 | $ 8,523 | $ 8,309 |
Percentage of Revenues | 11.00% | 3.00% | 11.00% | 11.00% |
Geographic Concentration Risk [Member] | Sales Revenue, Net [Member] | CHINA | ||||
Revenues | $ 2,907 | $ 204 | ||
Percentage of Revenues | 11.00% | 1.00% | ||
Geographic Concentration Risk [Member] | Sales Revenue, Net [Member] | Rest of the World [Member] | ||||
Revenues | $ 3,670 | $ 2,629 | $ 16,273 | $ 7,678 |
Percentage of Revenues | 13.00% | 11.00% | 21.00% | 10.00% |
Geographic Concentration Risk [Member] | Sales Revenue, Net [Member] | ||||
Revenues | $ 27,259 | $ 23,878 | $ 79,028 | $ 73,905 |
Percentage of Revenues | 100.00% | 100.00% | 100.00% | 100.00% |
Revenues | $ 27,259 | $ 23,878 | $ 79,028 | $ 73,905 |
Note 7 - Customer and Geograp40
Note 7 - Customer and Geographic Information - Long-lived Assets by Geographic Area (Details) - USD ($) | Sep. 30, 2016 | Dec. 31, 2015 |
UNITED STATES | ||
Long-lived assets | $ 17,661 | $ 10,752 |
Rest of the World [Member] | ||
Long-lived assets | 531 | 573 |
Long-lived assets | $ 18,192 | $ 11,325 |
Note 8 - Fair Value Measureme41
Note 8 - Fair Value Measurements (Details Textual) - Foreign Exchange Contract [Member] - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Other Nonoperating Income (Expense) [Member] | |||||
Derivative, Gain (Loss) on Derivative, Net | $ 37,000 | $ (15,000) | $ 45,000 | $ (600,000) | |
Other Current Liabilities [Member] | |||||
Derivative Liability, Current | 8,000 | 8,000 | $ 62,000 | ||
Derivative Asset, Notional Amount | $ 7,200,000 | $ 7,200,000 | $ 6,700,000 |
Note 8 - Fair Value Measureme42
Note 8 - Fair Value Measurements - Fair Value, Assets Measured on a Recurring Basis (Details) - Money Market Funds [Member] - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Fair Value, Inputs, Level 1 [Member] | ||
Money market mutual funds | $ 26,438 | $ 26,371 |
Fair Value, Inputs, Level 2 [Member] | ||
Money market mutual funds | ||
Fair Value, Inputs, Level 3 [Member] | ||
Money market mutual funds | ||
Money market mutual funds | $ 26,438 | $ 26,371 |
Note 9 - Commitments and Cont43
Note 9 - Commitments and Contingencies (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Loss Contingency Accrual | $ 0 | $ 0 | ||
Operating Leases, Rent Expense, Net | $ 600,000 | $ 500,000 | $ 1,700,000 | $ 1,600,000 |
Note 9 - Commitments and Cont44
Note 9 - Commitments and Contingencies - Future Minimum Lease Payments Under Noncancelable Operating Leases (Details) $ in Thousands | Sep. 30, 2016USD ($) |
2016 (remaining three months) | $ 516 |
2,017 | 1,737 |
2,018 | 1,089 |
2,019 | 265 |
2,020 | 196 |
2021 and thereafter | 62 |
Total future minimum lease payments | $ 3,865 |