Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2017 | Oct. 30, 2017 | |
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) | 31,947,582 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 100,750 | $ 116,787 |
Accounts receivable, net of allowance of $324 and $200, respectively | 52,954 | 48,157 |
Prepaid expenses and other current assets | 6,580 | 5,335 |
Total current assets | 160,284 | 170,279 |
Property and equipment, net | 23,604 | 19,341 |
Goodwill | 1,923 | 215 |
Intangible assets, net | 6,325 | 4,223 |
Deferred tax assets | 18,522 | 15,640 |
Other non-current assets | 11,312 | 12,631 |
Total assets | 221,970 | 222,329 |
Current liabilities: | ||
Accounts payable | 2,608 | 2,206 |
Accrued compensation and related benefits | 5,450 | 5,959 |
Accrued and other current liabilities | 2,436 | 2,080 |
Deferred revenues – current portion | 7,624 | 8,189 |
Billings in excess of recognized revenue | 289 | 88 |
Total current liabilities | 18,407 | 18,522 |
Long-term income taxes payable | 2,914 | 3,354 |
Other non-current liabilities | 2,352 | 1,650 |
Total liabilities | 23,673 | 23,526 |
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 39,506 and 38,514, respectively; shares outstanding 31,882 and 31,864, respectively | 5 | 5 |
Additional paid-in-capital | 294,359 | 281,423 |
Treasury stock at cost, 7,625 and 6,650 shares, respectively | (70,739) | (54,882) |
Accumulated deficit | (24,455) | (25,752) |
Accumulated other comprehensive loss | (873) | (1,991) |
Total stockholders’ equity | 198,297 | 198,803 |
Total liabilities and stockholders’ equity | $ 221,970 | $ 222,329 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) shares in Thousands, $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Accounts receivable, allowance | $ 324 | $ 200 |
Preferred stock, par value (in dollars per share) | $ 0.00015 | $ 0.00015 |
Preferred stock, shares authorized (in shares) | 5,000 | 5,000 |
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 | 70,000 |
Common stock, shares issued (in shares) | 39,506 | 38,514 |
Common stock, shares outstanding (in shares) | 31,882 | 31,864 |
Treasury stock, shares (in shares) | 7,625 | 6,650 |
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, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Revenues: | ||||
Design-to-silicon-yield solutions | $ 19,229 | $ 18,552 | $ 55,426 | $ 57,704 |
Gainshare performance incentives | 7,288 | 8,707 | 19,668 | 21,324 |
Total revenues | 26,517 | 27,259 | 75,094 | 79,028 |
Costs of Design-to-silicon-yield solutions: | ||||
Direct costs of Design-to-silicon-yield solutions | 12,295 | 11,366 | 34,913 | 32,034 |
Amortization of acquired technology | 136 | 86 | 327 | 278 |
Total cost of Design-to-silicon-yield solutions | 12,431 | 11,452 | 35,240 | 32,312 |
Gross profit | 14,086 | 15,807 | 39,854 | 46,716 |
Operating expenses: | ||||
Research and development | 7,875 | 7,017 | 22,432 | 20,388 |
Selling, general and administrative | 5,680 | 5,548 | 17,775 | 15,766 |
Amortization of other acquired intangible assets | 107 | 106 | 291 | 340 |
Total operating expenses | 13,662 | 12,671 | 40,498 | 36,494 |
Income (loss) from operations | 424 | 3,136 | (644) | 10,222 |
Interest and other expense, net | (104) | (101) | (305) | (389) |
Income (loss) before income taxes | 320 | 3,035 | (949) | 9,833 |
Income tax provision (benefit) | (270) | 1,051 | (2,246) | 3,655 |
Net income | $ 590 | $ 1,984 | $ 1,297 | $ 6,178 |
Net income per share: | ||||
Basic (in dollars per share) | $ 0.02 | $ 0.06 | $ 0.04 | $ 0.20 |
Diluted (in dollars per share) | $ 0.02 | $ 0.06 | $ 0.04 | $ 0.19 |
Weighted average common shares: | ||||
Basic (in shares) | 32,078 | 31,413 | 32,060 | 31,286 |
Diluted (in shares) | 32,969 | 32,578 | 33,317 | 32,144 |
Net income | $ 590 | $ 1,984 | $ 1,297 | $ 6,178 |
Other comprehensive income: | ||||
Foreign currency translation adjustments, net of tax | 409 | 157 | 1,117 | 331 |
Comprehensive income | $ 999 | $ 2,141 | $ 2,414 | $ 6,509 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Operating activities: | ||
Net income | $ 1,297 | $ 6,178 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 3,549 | 2,584 |
Stock-based compensation expense | 8,737 | 7,935 |
Amortization of acquired intangible assets | 618 | 617 |
Deferred taxes | (3,514) | 1,083 |
Loss on disposal of property and equipment | 5 | 107 |
Provision for (reversal of) allowance for doubtful accounts | 124 | (99) |
Unrealized loss (gain) on foreign currency forward contract | (6) | (54) |
Changes in operating assets and liabilities: | ||
Accounts receivable, net of allowance | (4,921) | (10,486) |
Prepaid expenses and other current assets | (1,142) | (1,486) |
Accounts payable | 1,611 | 33 |
Accrued compensation and related benefits | (721) | 277 |
Accrued and other liabilities | (225) | 139 |
Deferred revenues | (682) | 3,959 |
Billings in excess of recognized revenues | 200 | (1,194) |
Other non-current assets | 1,331 | (7,764) |
Net cash provided by operating activities | 6,261 | 1,829 |
Investing activities: | ||
Payments for business acquisitions, net of cash acquired | (3,841) | |
Purchases of property and equipment | (6,942) | (8,860) |
Net cash used in investing activities | (10,783) | (8,860) |
Financing activities: | ||
Proceeds from exercise of stock options | 2,304 | 1,132 |
Proceeds from employee stock purchase plan | 1,866 | 1,558 |
Repurchases of common stock | (13,418) | (2,182) |
Payments for taxes related to net share settlement of equity awards | (2,439) | (1,161) |
Net cash used in financing activities | (11,687) | (653) |
Effect of exchange rate changes on cash and cash equivalents | 172 | 60 |
Net change in cash and cash equivalents | (16,037) | (7,624) |
Cash and cash equivalents, beginning of period | 116,787 | 126,158 |
Cash and cash equivalents, end of period | 100,750 | 118,534 |
Supplemental disclosure of cash flow information: | ||
Taxes | 1,876 | 2,616 |
Property and equipment received and accrued in accounts payable and accrued and other liabilities | $ 1,533 | $ 913 |
Note 1 - Basis of Presentation
Note 1 - Basis of Presentation | 9 Months Ended |
Sep. 30, 2017 | |
Notes to Financial Statements | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | 1. 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 10 X. not may ’s Annual Report on Form 10 December 31, 2016. 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, 2016, has been derived from the audited consolidated financial statements but does not Use of Estimates — The preparation of financial statements in conformity with generally accepted accounting principles in the United States (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates in these financial statements include revenue recognition for fixed-price solution implementation service contracts, accounting for goodwill and intangible assets, stock-based compensation expense and accounting for income taxes. Actual results could differ from those estimates. Revenue Recognition — The Company derives revenue from two Design-to-silicon-yield solutions — Revenues that are derived from Design-to-silicon-yield solutions come from services and software and hardware 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 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, if applicable, 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 not third not In some instances, the Company also licenses its Design-For-Inspection (“DFI”) system as a separate component of fixed-price service contracts. The Company allocates revenue to all deliverables based on their relative selling prices. The Company currently does not 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 us 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 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 no was $0.6 $0.5 September 30, 2017 December 31, 2016, The Company also licenses its software products separately from solution implementations. For software license arrangements that do not 2 3 4 5 not 1 2 3 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 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 was $1.6 $1.5 September 30, 2017 December 31, 2016. Gainshare Performance Incentives — When the Company enters into a contract to provide yield improvement services, the contract usually includes two 1 2 may no |
Note 2 - Recent Accounting Pron
Note 2 - Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2017 | |
Notes to Financial Statements | |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | 2. In May 2014, No. 2014 09, 606 No. 2015 14, 606 2016 08, 606 No. 2016 10, 606 No. 2016 11, 605 815 No. 2016 12, 606 2016 20, 606 , and ASU 2017 13, 605 840 842 July 20, 2017 five December 15, 2017, two In February 2016, No. 2016 02, 842 ’ financial statements issued for fiscal years beginning after December 15, 2018, In August 2016, No. 2016 15, December 15, 2017, not In January 2017, No. 2017 01, December 15, 2017, not In January 2017, No. 2017 04, 350 No. 2017 04” No. 2017 04 2 December 15, 2019, not In May 2017, No. 2017 09, 718 (“ASU No. 2017 09” No. 2017 09 718. December 15, 2017, |
Note 3 - Business Combinations
Note 3 - Business Combinations | 9 Months Ended |
Sep. 30, 2017 | |
Notes to Financial Statements | |
Business Combination Disclosure [Text Block] | 3. On July 11, 2017 ( The total purchase price was $4.3 $0.5 may July 11, 2019, $0.6 The Company accounted for this acquisition as a business combination. This method requires that assets acquired and liabilities assumed in a business combination be recognized at their fair values as of the Acquisition Date. 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 sales opportunities that extend the Company's footprint throughout the entire systems value chain. $1.7 Pro forma results of operations have not not Intangible assets consist of developed technology, customer relationships, and trademarks. The value assigned to intangibles are based on estimates and judgments regarding expectations for success and life cycle of intangibles acquired. The following table summarizes the allocation of the purchase consideration transferred to the fair value of the tangible and intangible assets acquired and liabilities assumed as of the acquisition date: (in thousands) Amortization period (years ) Finite-lived intangible assets: Developed technology 1,720 9 Customer relationship 820 9 Tradename 180 7 Deferred revenue (190 ) Other receivables 53 Net asset acquired 2,583 Goodwill 1,708 Purchase consideration $ 4,291 |
Note 4 - Balance Sheet Componen
Note 4 - Balance Sheet Components | 9 Months Ended |
Sep. 30, 2017 | |
Notes to Financial Statements | |
Supplemental Balance Sheet Disclosures [Text Block] | 4 . 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 totaled $20.7 $20.8 September 30, 2017 December 31, 2016, not 12 $9.1 $9.8 September 30, 2017 December 31, 2016, $0.6 $0.5 September 30, 2017 December 31, 2016, Property and equipment, net consists of (in thousands): September 30, 2017 December 31, 2016 Property and equipment, net: Computer equipment $ 10,756 $ 10,642 Software 3,359 1,679 Furniture, fixtures and equipment 1,927 1,185 Leasehold improvements 1,983 1,132 DFI test equipment 5,341 3,367 Other test equipment 8,191 8,356 Construction-in-progress 11,837 9,550 43,394 35,911 Less: accumulated depreciation (19,790 ) (16,570 ) Total $ 23,604 $ 19,341 The construction-in-progress balance as of September 30, 2017 December 31, 2016 was $1.3 $1.0 three September 30, 2017 2016, $3.5 $2.6 nine September 30, 2017 2016, As of September 30, 2017 December 31, 2016, $1.9 $0.2 September 30, 2017 Balance as of December 31, 2016 $ 215 Add: Goodwill from acquisition 1,708 Adjustment — Balance as of September 30, 2017 $ 1,923 Intangible assets balance was $6.4 $4.2 September 30, 2017 December 31, 2016, September 30, 2017 December 31, 2016 September 30, 2017 December 31, 2016 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 $ 6,740 $ (4,054 ) $ 2,686 $ 5,920 $ (3,825 ) $ 2,095 Developed technology 4 - 6 15,820 (12,686 ) 3,134 14,100 (12,359 ) 1,741 Tradename 2 - 4 790 (615 ) 175 610 (583 ) 27 Backlog 1 100 (100 ) - 100 (100 ) - Patent 7 - 10 1,800 (1,470 ) 330 1,800 (1,440 ) 360 Other acquired intangibles 4 255 (255 ) - 255 (255 ) - Total $ 25,505 $ (19,180 ) $ 6,325 $ 22,785 $ (18,562 ) $ 4,223 The weighted average amortization period for acquired identifiable intangible assets was 6.96 September 30, 2017. three September 30, 2017 2016, $0.2 nine September 30, 2017 2016, $0.6 Period Ending September 30, 2017 (remaining 3 months) $ 251 2018 1,009 2019 1,009 2020 1,009 2021 833 2022 and thereafter 2,214 Total future amortization expense $ 6,325 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 three nine September 30, 2017, no |
Note 5 - Stockholders' Equity
Note 5 - Stockholders' Equity | 9 Months Ended |
Sep. 30, 2017 | |
Notes to Financial Statements | |
Shareholders' Equity and Share-based Payments [Text Block] | 5 . 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 . Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Cost of design-to-silicon yield-solutions $ 1,184 $ 1,191 $ 3,445 $ 3,232 Research and development 877 894 2,558 2,251 Selling, general and administrative 888 892 2,734 2,452 Stock-based compensation expenses $ 2,949 $ 2,977 $ 8,737 $ 7,935 On September 30, 2017, Stock Plans — At the annual meeting of stockholders on November 16, 2011, 2011 “2011 2011 may 9,050,000 3,500,000 2001 2001 November 16, 2011. 1.33 no ten four In 2001, adopted a 2001 “2001 2003, 2001 2001Plan 2011. 2001 ten four no may 2001 2001 The Company estimated the fair value of share-based awards granted under the 2011 Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Expected life (in years) 4.41 4.42 4.41 4.42 Volatility 41.49 % 42.97 % 41.53 % 43.82 % Risk-free interest rate 1.65 % 1.10 % 1.69 % 1.20 % Expected dividend — — — — Weighted average fair value per share of options granted during the period $ 5.78 $ 5.52 $ 6.14 $ 4.82 As of September 30, 2017, 9.6 2011 3.9 2011 0.5 2001 2011 September 30, 2017. September 30, 2017, no 2011 2001 Stock option activity under the Company ’s Stock Plans during the nine September 30, 2017, 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, 2017 1,364 $ 8.00 Granted (weighted average fair value of $6.1 4 per share) 100 $ 16.97 Exercised (366 ) $ 6.43 Canceled (16 ) $ 15.63 Expired (1 ) $ 18.10 Outstanding, September 30, 2017 1,081 $ 9.23 4.73 $ 7,133 Vested and expected to vest, September 30, 2017 1,065 $ 9.13 4.66 $ 7,124 Exercisable, September 30, 2017 893 $ 7.82 3.82 $ 6,966 The aggregate intrinsic value in the table above represents the total intrinsic value based on the Company ’s closing stock price of $15.49 September 30, 2017. nine September 30, 2017, $4.6 As of September 30, 2017, $1.0 3.3 nine September 30, 2017, $0.2 Nonvested restricted stock units activity during the nine September 30, 2017, Shares (in thousands) Weighted Average Grant Date Fair Value Per Share Nonvested, January 1, 2017 1,542 $ 15.50 Granted 793 $ 16.53 Vested (431 ) $ 15.78 Forfeited (99 ) $ 15.93 Nonvested, September 30, 2017 1,805 $ 15.86 As of September 30, 2017, $23.3 2.8 not Employee Stock Purchase Plan — In July 2001, ten 10% 85% twenty-four four six January 1 2002, 1 675,000 2 2% 3 May 18, 2010, May 17, 2020. 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, 2017 2016 Expected life (in years) 1.25 1.25 Volatility 40.63 % 44.00 % Risk-free interest rate 1.25 % 0.50 % Expected dividend — — Weighted average fair value per share of options granted during the period $ 5.22 $ 3.70 During the three September 30, 2017 2016, 99,550 88,543 $9.53 $8.81 nine September 30, 2017 2016, 199,827 173,001 $9.33 $9.00 September 30, 2017, $0.5 1.24 September 30, 2017, 4.3 Stock Repurchase Program —On October 25, 2016, $25.0 two three nine September 30, 2017, 565,903 842,182 September 30, 2017, 842,182 $15.93 $13.4 $11.6 |
Note 6 - Income Taxes
Note 6 - Income Taxes | 9 Months Ended |
Sep. 30, 2017 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 6 . INCOME TAXES Income tax provision decreased $ 5.9 nine September 30, 2017, $2.2 $3.7 nine September 30, 2016. 236.7% 37.3% nine September 30, 2017 2016, nine September 30, 2017, 2016, $1.6 income . The Company ’s total amount of unrecognized tax benefits, excluding interest and penalties, as of September 30, 2017, $12.7 $7.6 December 31, 2016, $11.9 $7.2 September 30, 2017, $2.9 $9.8 $5.1 The valuation allowance was approximately $7.5 $6.8 September 30, 2017 December 31, 2016, not not 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 not |
Note 7 - Net Income Per Share
Note 7 - Net Income Per Share | 9 Months Ended |
Sep. 30, 2017 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | 7 . 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. 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, 2017 2016 2017 2016 Numerator: Net income $ 590 $ 1,984 $ 1,297 $ 6,178 Denominator: Basic weighted average common shares outstanding 32,078 31,413 32,060 31,286 Dilutive effect of equity incentive plans 891 1,165 1,257 858 Diluted weighted average common shares outstanding 32,969 32,578 33,317 32,144 Net income per share: Basic $ 0.02 $ 0.06 $ 0.04 $ 0.20 Diluted $ 0.02 $ 0.06 $ 0.04 $ 0.19 The following table sets forth potential shares of common stock that are not Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Outstanding options 211 119 109 188 Nonvested restricted stock units 15 226 12 389 Employee Stock Purchase Plan 68 25 42 162 Total 294 370 163 739 |
Note 8 - Customer and Geographi
Note 8 - Customer and Geographic Information | 9 Months Ended |
Sep. 30, 2017 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | 8 . 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, allocation of resources, and assessing financial performance. Accordingly, the Company considers itself to be in one The Company had revenues from individual customers in excess of 10% Three Months Ended September 30, Nine Months Ended September 30, Customer 2017 2016 2017 2016 A 38 % 38 % 41 % 42 % B * % 12 % * % 12 % * represents less than 10% The Company had gross accounts receivable from individual customers in excess of 10% Customer September 30, 2017 December 31, 2016 A 44 % 42 % C 15 % 13 % * 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, 2017 2016 Revenues Percentage of Revenues Revenues Percentage of Revenues United States $ 9,750 37 % $ 8,680 32 % China 6,452 24 2,907 11 Germany 2,729 10 4,896 18 Taiwan 2,414 9 4,079 15 South Korea 1,539 6 3,027 11 Rest of the world 3,633 14 3,670 13 Total revenue $ 26,517 100 % $ 27,259 100 % Nine Months Ended September 30, 2017 2016 Revenues Percentage of Revenues Revenues Percentage of Revenues United States $ 30,610 41 % $ 30,320 38 % China 12,891 17 5,506 7 Taiwan 9,894 13 11,988 15 Germany 6,831 9 11,924 15 South Korea 5,159 7 8,523 11 Rest of the world 9,709 13 10,767 14 Total revenue $ 75,094 100 % $ 79,028 100 % Long-lived assets, net by geographic area are as follows (in thousands): September 30, 2017 December 31, 2016 United States $ 23,117 $ 18,818 Rest of the world 487 523 Total long-lived assets, net $ 23,604 $ 19,341 |
Note 9 - Fair Value Measurement
Note 9 - Fair Value Measurements | 9 Months Ended |
Sep. 30, 2017 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | 9 . 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 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 Level 3 Inputs are derived from valuation techniques in which one The following table represents the Company ’s assets measured at fair value on a recurring basis as of September 30, 2017, 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 $ 26,577 $ 26,577 $ — $ — The following table represents the Company ’s assets measured at fair value on a recurring basis as of December 31, 2016, 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 $ 26,456 $ 26,456 $ — $ — 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 ’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 not three September 30, 2017 2016, $0.2 $37,000 nine September 30, 2017 2016, $0.7 $45,000 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 not September 30, 2017, one $8.0 $10,000 December 31, 2016, one $6.9 $15,000 |
Note 10 - Commitments and Conti
Note 10 - Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2017 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | 10 . 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. was $0.6 three September 30, 2017 2016, $1.6 $1.7 nine September 30, 2017 2016. Future minimum lease payments under noncancelable operating leases at September 30, 2017, Period Ending September 30, Amount 2017 (remaining three months) $ 544 2018 1,757 2019 532 2020 444 2021 360 2022 and thereafter 126 Total future minimum lease payments $ 3,763 Indemnifications — The Company generally provides a warranty to its customers that its software will perform substantially in accordance with documented specifications typically for a period of 90 third not Purchase obligations September 30, 2017, $8.3 12 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 may ’ 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 Litigation September 30, 2017, not no no |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2017 | |
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 10 X. not may ’s Annual Report on Form 10 December 31, 2016. 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, 2016, has been derived from the audited consolidated financial statements but does not |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates — The preparation of financial statements in conformity with generally accepted accounting principles in the United States (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates in these financial statements include revenue recognition for fixed-price solution implementation service contracts, accounting for goodwill and intangible assets, stock-based compensation expense and accounting for income taxes. Actual results could differ from those estimates. |
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition — The Company derives revenue from two Design-to-silicon-yield solutions — Revenues that are derived from Design-to-silicon-yield solutions come from services and software and hardware 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 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, if applicable, 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 not third not In some instances, the Company also licenses its Design-For-Inspection (“DFI”) system as a separate component of fixed-price service contracts. The Company allocates revenue to all deliverables based on their relative selling prices. The Company currently does not 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 us 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 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 no was $0.6 $0.5 September 30, 2017 December 31, 2016, The Company also licenses its software products separately from solution implementations. For software license arrangements that do not 2 3 4 5 not 1 2 3 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 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 was $1.6 $1.5 September 30, 2017 December 31, 2016. Gainshare Performance Incentives — When the Company enters into a contract to provide yield improvement services, the contract usually includes two 1 2 may no |
Note 3 - Business Combinations
Note 3 - Business Combinations (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Notes Tables | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | (in thousands) Amortization period (years ) Finite-lived intangible assets: Developed technology 1,720 9 Customer relationship 820 9 Tradename 180 7 Deferred revenue (190 ) Other receivables 53 Net asset acquired 2,583 Goodwill 1,708 Purchase consideration $ 4,291 |
Note 4 - Balance Sheet Compon18
Note 4 - Balance Sheet Components (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Notes Tables | |
Property, Plant and Equipment [Table Text Block] | September 30, 2017 December 31, 2016 Property and equipment, net: Computer equipment $ 10,756 $ 10,642 Software 3,359 1,679 Furniture, fixtures and equipment 1,927 1,185 Leasehold improvements 1,983 1,132 DFI test equipment 5,341 3,367 Other test equipment 8,191 8,356 Construction-in-progress 11,837 9,550 43,394 35,911 Less: accumulated depreciation (19,790 ) (16,570 ) Total $ 23,604 $ 19,341 |
Schedule of Goodwill [Table Text Block] | September 30, 2017 Balance as of December 31, 2016 $ 215 Add: Goodwill from acquisition 1,708 Adjustment — Balance as of September 30, 2017 $ 1,923 |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | September 30, 2017 December 31, 2016 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 $ 6,740 $ (4,054 ) $ 2,686 $ 5,920 $ (3,825 ) $ 2,095 Developed technology 4 - 6 15,820 (12,686 ) 3,134 14,100 (12,359 ) 1,741 Tradename 2 - 4 790 (615 ) 175 610 (583 ) 27 Backlog 1 100 (100 ) - 100 (100 ) - Patent 7 - 10 1,800 (1,470 ) 330 1,800 (1,440 ) 360 Other acquired intangibles 4 255 (255 ) - 255 (255 ) - Total $ 25,505 $ (19,180 ) $ 6,325 $ 22,785 $ (18,562 ) $ 4,223 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Period Ending September 30, 2017 (remaining 3 months) $ 251 2018 1,009 2019 1,009 2020 1,009 2021 833 2022 and thereafter 2,214 Total future amortization expense $ 6,325 |
Note 5 - Stockholders' Equity (
Note 5 - Stockholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
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, 2017 2016 2017 2016 Cost of design-to-silicon yield-solutions $ 1,184 $ 1,191 $ 3,445 $ 3,232 Research and development 877 894 2,558 2,251 Selling, general and administrative 888 892 2,734 2,452 Stock-based compensation expenses $ 2,949 $ 2,977 $ 8,737 $ 7,935 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Expected life (in years) 4.41 4.42 4.41 4.42 Volatility 41.49 % 42.97 % 41.53 % 43.82 % Risk-free interest rate 1.65 % 1.10 % 1.69 % 1.20 % Expected dividend — — — — Weighted average fair value per share of options granted during the period $ 5.78 $ 5.52 $ 6.14 $ 4.82 Nine Months Ended September 30, 2017 2016 Expected life (in years) 1.25 1.25 Volatility 40.63 % 44.00 % Risk-free interest rate 1.25 % 0.50 % Expected dividend — — Weighted average fair value per share of options granted during the period $ 5.22 $ 3.70 |
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, 2017 1,364 $ 8.00 Granted (weighted average fair value of $6.1 4 per share) 100 $ 16.97 Exercised (366 ) $ 6.43 Canceled (16 ) $ 15.63 Expired (1 ) $ 18.10 Outstanding, September 30, 2017 1,081 $ 9.23 4.73 $ 7,133 Vested and expected to vest, September 30, 2017 1,065 $ 9.13 4.66 $ 7,124 Exercisable, September 30, 2017 893 $ 7.82 3.82 $ 6,966 |
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, 2017 1,542 $ 15.50 Granted 793 $ 16.53 Vested (431 ) $ 15.78 Forfeited (99 ) $ 15.93 Nonvested, September 30, 2017 1,805 $ 15.86 |
Note 7 - Net Income Per Share (
Note 7 - Net Income Per Share (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Numerator: Net income $ 590 $ 1,984 $ 1,297 $ 6,178 Denominator: Basic weighted average common shares outstanding 32,078 31,413 32,060 31,286 Dilutive effect of equity incentive plans 891 1,165 1,257 858 Diluted weighted average common shares outstanding 32,969 32,578 33,317 32,144 Net income per share: Basic $ 0.02 $ 0.06 $ 0.04 $ 0.20 Diluted $ 0.02 $ 0.06 $ 0.04 $ 0.19 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Outstanding options 211 119 109 188 Nonvested restricted stock units 15 226 12 389 Employee Stock Purchase Plan 68 25 42 162 Total 294 370 163 739 |
Note 8 - Customer and Geograp21
Note 8 - Customer and Geographic Information (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
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 2017 2016 2017 2016 A 38 % 38 % 41 % 42 % B * % 12 % * % 12 % |
Receivables by Major Customers [Table Text Block] | Customer September 30, 2017 December 31, 2016 A 44 % 42 % C 15 % 13 % |
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Table Text Block] | Three Months Ended September 30, 2017 2016 Revenues Percentage of Revenues Revenues Percentage of Revenues United States $ 9,750 37 % $ 8,680 32 % China 6,452 24 2,907 11 Germany 2,729 10 4,896 18 Taiwan 2,414 9 4,079 15 South Korea 1,539 6 3,027 11 Rest of the world 3,633 14 3,670 13 Total revenue $ 26,517 100 % $ 27,259 100 % Nine Months Ended September 30, 2017 2016 Revenues Percentage of Revenues Revenues Percentage of Revenues United States $ 30,610 41 % $ 30,320 38 % China 12,891 17 5,506 7 Taiwan 9,894 13 11,988 15 Germany 6,831 9 11,924 15 South Korea 5,159 7 8,523 11 Rest of the world 9,709 13 10,767 14 Total revenue $ 75,094 100 % $ 79,028 100 % |
Schedule of Disclosure on Geographic Areas, Long-Lived Assets in Individual Foreign Countries by Country [Table Text Block] | September 30, 2017 December 31, 2016 United States $ 23,117 $ 18,818 Rest of the world 487 523 Total long-lived assets, net $ 23,604 $ 19,341 |
Note 9 - Fair Value Measureme22
Note 9 - Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
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 $ 26,577 $ 26,577 $ — $ — 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 $ 26,456 $ 26,456 $ — $ — |
Note 10 - Commitments and Con23
Note 10 - Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Notes Tables | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | Period Ending September 30, Amount 2017 (remaining three months) $ 544 2018 1,757 2019 532 2020 444 2021 360 2022 and thereafter 126 Total future minimum lease payments $ 3,763 |
Note 1 - Basis of Presentation
Note 1 - Basis of Presentation (Details Textual) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Deferred Pre-contract Costs | $ 0.6 | $ 0.5 |
Other Noncurrent Liabilities [Member] | ||
Deferred Revenue, Noncurrent | $ 1.6 | $ 1.5 |
Note 3 - Business Combination25
Note 3 - Business Combinations (Details Textual) - USD ($) $ in Thousands | Jul. 11, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 |
Goodwill, Impairment Loss | $ 0 | $ 0 | $ 0 | |
Impairment of Long-Lived Assets Held-for-use | $ 0 | $ 0 | $ 0 | |
Kinesys Software [Member] | ||||
Payments to Acquire Businesses, Gross | $ 4,300 | |||
Business Combination Contingent Consideration at Fair Value | 500 | |||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | 600 | |||
Business Acquisition, Goodwill, Expected Tax Deductible Amount | $ 1,700 |
Note 3 - Business Combination26
Note 3 - Business Combinations - Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Jul. 11, 2017 | Sep. 30, 2017 | Dec. 31, 2016 |
Goodwill | $ 1,923 | $ 215 | |
Kinesys Software [Member] | |||
Deferred revenue | $ (190) | ||
Other receivables | 53 | ||
Net asset acquired | 2,583 | ||
Goodwill | 1,708 | ||
Purchase consideration | 4,291 | ||
Kinesys Software [Member] | Developed Technology Rights [Member] | |||
Finite-lived intangible assets | $ 1,720 | ||
Finite-lived intangible assets, amortization period (Year) | 9 years | ||
Kinesys Software [Member] | Customer Relationships [Member] | |||
Finite-lived intangible assets | $ 820 | ||
Finite-lived intangible assets, amortization period (Year) | 9 years | ||
Kinesys Software [Member] | Trade Names [Member] | |||
Finite-lived intangible assets | $ 180 | ||
Finite-lived intangible assets, amortization period (Year) | 7 years |
Note 4 - Balance Sheet Compon27
Note 4 - Balance Sheet Components (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Unbilled Receivables, Current | $ 20,700 | $ 20,700 | $ 20,800 | ||
Unbilled Receivables, Not Billable, Amount Expected to be Collected after Next Twelve Months | 9,100 | 9,100 | 9,800 | ||
Deferred Pre-contract Costs | 600 | 600 | 500 | ||
Depreciation, Depletion and Amortization, Nonproduction | 1,300 | $ 1,000 | 3,500 | $ 2,600 | |
Goodwill | 1,923 | 1,923 | 215 | ||
Finite-Lived Intangible Assets, Net | 6,325 | $ 6,325 | $ 4,223 | ||
Finite-Lived Intangible Assets, Remaining Amortization Period | 6 years 350 days | ||||
Amortization of Intangible Assets | 200 | 200 | $ 618 | 617 | |
Impairment of Intangible Assets, Finite-lived | $ 0 | $ 0 | $ 0 | $ 0 |
Note 4 - Balance Sheet Compon28
Note 4 - Balance Sheet Components - Property and Equipment (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Property and equipment, gross | $ 43,394 | $ 35,911 |
Less: accumulated depreciation | (19,790) | (16,570) |
Total | 23,604 | 19,341 |
Computer Equipment [Member] | ||
Property and equipment, gross | 10,756 | 10,642 |
Software and Software Development Costs [Member] | ||
Property and equipment, gross | 3,359 | 1,679 |
Furniture and Fixtures [Member] | ||
Property and equipment, gross | 1,927 | 1,185 |
Leasehold Improvements [Member] | ||
Property and equipment, gross | 1,983 | 1,132 |
DFI Test Equipment [Member] | ||
Property and equipment, gross | 5,341 | 3,367 |
Other Test Equipment [Member] | ||
Property and equipment, gross | 8,191 | 8,356 |
Construction in Progress [Member] | ||
Property and equipment, gross | $ 11,837 | $ 9,550 |
Note 4 - Balance Sheet Compon29
Note 4 - Balance Sheet Components - Goodwill Activity (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Balance | $ 215 |
Add: Goodwill from acquisition | 1,708 |
Adjustment | 0 |
Balance | $ 1,923 |
Note 4 - Balance Sheet Compon30
Note 4 - Balance Sheet Components - Intangible Assets (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Dec. 31, 2016 | |
Gross Carrying Amount | $ 25,505 | $ 22,785 |
Accumulated Amortization | (19,180) | (18,562) |
Intangible assets, net | 6,325 | 4,223 |
Customer Relationships [Member] | ||
Gross Carrying Amount | 6,740 | 5,920 |
Accumulated Amortization | (4,054) | (3,825) |
Intangible assets, net | $ 2,686 | 2,095 |
Customer Relationships [Member] | Minimum [Member] | ||
Amortization Period (Year) | 1 year | |
Customer Relationships [Member] | Maximum [Member] | ||
Amortization Period (Year) | 9 years | |
Developed Technology Rights [Member] | ||
Gross Carrying Amount | $ 15,820 | 14,100 |
Accumulated Amortization | (12,686) | (12,359) |
Intangible assets, net | $ 3,134 | 1,741 |
Developed Technology Rights [Member] | Minimum [Member] | ||
Amortization Period (Year) | 4 years | |
Developed Technology Rights [Member] | Maximum [Member] | ||
Amortization Period (Year) | 6 years | |
Trade Names [Member] | ||
Gross Carrying Amount | $ 790 | 610 |
Accumulated Amortization | (615) | (583) |
Intangible assets, net | $ 175 | 27 |
Trade Names [Member] | Minimum [Member] | ||
Amortization Period (Year) | 2 years | |
Trade Names [Member] | Maximum [Member] | ||
Amortization Period (Year) | 4 years | |
Order or Production Backlog [Member] | ||
Amortization Period (Year) | 1 year | |
Gross Carrying Amount | $ 100 | 100 |
Accumulated Amortization | (100) | (100) |
Intangible assets, net | ||
Patents [Member] | ||
Gross Carrying Amount | 1,800 | 1,800 |
Accumulated Amortization | (1,470) | (1,440) |
Intangible assets, net | $ 330 | 360 |
Patents [Member] | Minimum [Member] | ||
Amortization Period (Year) | 7 years | |
Patents [Member] | Maximum [Member] | ||
Amortization Period (Year) | 10 years | |
Other Intangible Assets [Member] | ||
Amortization Period (Year) | 4 years | |
Gross Carrying Amount | $ 255 | 255 |
Accumulated Amortization | (255) | (255) |
Intangible assets, net |
Note 4 - Balance Sheet Compon31
Note 4 - Balance Sheet Components - Annual Amortization of Identifiable Intangible Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
2017 (remaining 3 months) | $ 251 | |
2,018 | 1,009 | |
2,019 | 1,009 | |
2,020 | 1,009 | |
2,021 | 833 | |
2022 and thereafter | 2,214 | |
Total future amortization expense | $ 6,325 | $ 4,223 |
Note 5 - Stockholders' Equity32
Note 5 - Stockholders' Equity (Details Textual) - USD ($) $ / shares in Units, $ in Millions | May 31, 2017 | Oct. 25, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2001 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period | 16,000 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 1,081,000 | 1,081,000 | 1,364,000 | |||||
Share Price | $ 15.49 | $ 15.49 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | $ 4.6 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value | $ 0.2 | |||||||
Stock Repurchase Program, Authorized Amount | $ 25 | |||||||
Stock Repurchase Program, Period in Force | 2 years | |||||||
Treasury Stock, Shares, Acquired | 565,903 | 842,182 | ||||||
Treasury Stock Acquired, Average Cost Per Share | $ 15.93 | |||||||
Treasury Stock, Value, Acquired, Cost Method | $ 13.4 | |||||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 11.6 | 11.6 | ||||||
Employee Stock Option [Member] | ||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | 1 | $ 1 | ||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 3 years 109 days | |||||||
Restricted Stock Units (RSUs) [Member] | ||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 23.3 | $ 23.3 | ||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years 292 days | |||||||
Twenty Eleven Stock Incentive Plan [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 9,050,000 | |||||||
Share Based Compensation Arrangement By Share Based Payment Award Shares Reserved Decrease Rate | 1.33 | |||||||
Common Stock, Capital Shares Reserved for Future Issuance | 9,600,000 | 9,600,000 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 3,900,000 | 3,900,000 | ||||||
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 | |||||||
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 | 500,000 | |||||||
Outside of the 2011, 2001 or IDS Plans [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 0 | 0 | ||||||
Employee Stock Purchase Plan [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | |||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 0.5 | $ 0.5 | ||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 87 days | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Maximum Employee Subscription Rate | 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 | 99,550 | 88,543 | 199,827 | 173,001 | ||||
Employee Stock Purchase Plan Weighted Average Purchase Price of Shares Purchased | $ 9.53 | $ 8.81 | $ 9.33 | $ 9 | ||||
Number Of ESPP Shares Available For Future Issuance | 4,300,000 | 4,300,000 |
Note 5 - Stockholders' Equity -
Note 5 - Stockholders' Equity - Allocation of Recognized Period Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Allocation of recognized period costs | $ 2,949 | $ 2,977 | $ 8,737 | $ 7,935 |
Cost of Sales [Member] | ||||
Allocation of recognized period costs | 1,184 | 1,191 | 3,445 | 3,232 |
Research and Development Expense [Member] | ||||
Allocation of recognized period costs | 877 | 894 | 2,558 | 2,251 |
Selling, General and Administrative Expenses [Member] | ||||
Allocation of recognized period costs | $ 888 | $ 892 | $ 2,734 | $ 2,452 |
Note 5 - Stockholders' Equity34
Note 5 - Stockholders' Equity - Stock Options, Valuation Assumptions (Details) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Weighted average fair value (in dollars per share) | $ 6.14 | |||
Employee Stock Purchase Plan [Member] | ||||
Expected life (Year) | 1 year 91 days | 1 year 91 days | ||
Volatility | 40.63% | 44.00% | ||
Risk-free interest rate | 1.25% | 0.50% | ||
Expected dividend | ||||
Weighted average fair value (in dollars per share) | $ 5.22 | $ 3.70 | ||
Stock Plans [Member] | ||||
Expected life (Year) | 4 years 149 days | 4 years 153 days | 4 years 149 days | 4 years 153 days |
Volatility | 41.49% | 42.97% | 41.53% | 43.82% |
Risk-free interest rate | 1.65% | 1.10% | 1.69% | 1.20% |
Expected dividend | 0.00% | 0.00% | 0.00% | 0.00% |
Weighted average fair value (in dollars per share) | $ 5.78 | $ 5.52 | $ 6.14 | $ 4.82 |
Note 5 - Stockholders' Equity35
Note 5 - Stockholders' Equity - Stock Options Activity (Details) $ / shares in Units, shares in Thousands | 9 Months Ended |
Sep. 30, 2017USD ($)$ / sharesshares | |
Outstanding, January 1, 2017 (in shares) | shares | 1,364 |
Outstanding, January 1, 2017 (in dollars per share) | $ / shares | $ 8 |
Granted (in shares) | shares | 100 |
Granted (in dollars per share) | $ / shares | $ 16.97 |
Exercised (in shares) | shares | (366) |
Exercised (in dollars per share) | $ / shares | $ 6.43 |
Canceled (in shares) | shares | (16) |
Canceled (in dollars per share) | $ / shares | $ 15.63 |
Expired (in shares) | shares | (1) |
Expired (in dollars per share) | $ / shares | $ 18.10 |
Outstanding, September 30, 2017 (in shares) | shares | 1,081 |
Outstanding, September 30, 2017 (in dollars per share) | $ / shares | $ 9.23 |
Outstanding, September 30, 2017 (Year) | 4 years 266 days |
Outstanding, September 30, 2017 | $ | $ 7,133 |
Vested and expected to vest, September 30, 2017 (in shares) | shares | 1,065 |
Vested and expected to vest, September 30, 2017 (in dollars per share) | $ / shares | $ 9.13 |
Vested and expected to vest, September 30, 2017 (Year) | 4 years 240 days |
Vested and expected to vest, September 30, 2017 | $ | $ 7,124 |
Exercisable, September 30, 2017 (in shares) | shares | 893 |
Exercisable, September 30, 2017 (in dollars per share) | $ / shares | $ 7.82 |
Exercisable, September 30, 2017 (Year) | 3 years 299 days |
Exercisable, September 30, 2017 | $ | $ 6,966 |
Note 5 - Stockholders' Equity36
Note 5 - Stockholders' Equity - Stock Options Activity (Details) (Parentheticals) | 9 Months Ended |
Sep. 30, 2017$ / shares | |
Weighted average fair value (in dollars per share) | $ 6.14 |
Note 5 - Stockholders' Equity37
Note 5 - Stockholders' Equity - Nonvested Restricted Stock Units Activity (Details) - Restricted Stock Units (RSUs) [Member] shares in Thousands | 9 Months Ended |
Sep. 30, 2017$ / sharesshares | |
Nonvested, Balance (in shares) | shares | 1,542 |
Nonvested, Balance (in dollars per share) | $ / shares | $ 15.50 |
Granted (in shares) | shares | 793 |
Granted (in dollars per share) | $ / shares | $ 16.53 |
Vested (in shares) | shares | (431) |
Vested (in dollars per share) | $ / shares | $ 15.78 |
Forfeited (in shares) | shares | (99) |
Forfeited (in dollars per share) | $ / shares | $ 15.93 |
Nonvested, Balance (in shares) | shares | 1,805 |
Nonvested, Balance (in dollars per share) | $ / shares | $ 15.86 |
Note 6 - Income Taxes (Details
Note 6 - Income Taxes (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Increase (Decrease) in Income Taxes | $ (5,900) | ||||
Income Tax Expense (Benefit) | $ (270) | $ 1,051 | $ (2,246) | $ 3,655 | |
Effective Income Tax Rate Reconciliation, Percent | 236.70% | 37.30% | |||
Unrecognized Tax Benefits | 12,700 | $ 12,700 | $ 11,900 | ||
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 7,600 | 7,600 | 7,200 | ||
Unrecognized Tax Benefits In Long Term Liabilities | 2,900 | 2,900 | |||
Unrecognized Tax Benefits In Deferred Tax Assets | 9,800 | 9,800 | |||
Unrecognized Tax Benefits In Deferred Tax Asset Subject To Full Valuation Allowance | 5,100 | 5,100 | |||
Deferred Tax Assets, Valuation Allowance | $ 7,500 | 7,500 | $ 6,800 | ||
Accounting Standards Update 2016-09 [Member] | |||||
Excess Tax Benefit from Share-based Compensation | $ 1,600 |
Note 7 - Net Income Per Share -
Note 7 - 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, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Net income | $ 590 | $ 1,984 | $ 1,297 | $ 6,178 |
Basic weighted average common shares outstanding (in shares) | 32,078 | 31,413 | 32,060 | 31,286 |
Dilutive effect of equity incentive plans (in shares) | 891 | 1,165 | 1,257 | 858 |
Diluted weighted average common shares outstanding (in shares) | 32,969 | 32,578 | 33,317 | 32,144 |
Basic (in dollars per share) | $ 0.02 | $ 0.06 | $ 0.04 | $ 0.20 |
Diluted (in dollars per share) | $ 0.02 | $ 0.06 | $ 0.04 | $ 0.19 |
Note 7 - Net Income Per Share40
Note 7 - Net Income Per Share - Antidilutive Securities (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Antidilutive securities (in shares) | 294 | 370 | 163 | 739 |
Employee Stock Option [Member] | ||||
Antidilutive securities (in shares) | 211 | 119 | 109 | 188 |
Restricted Stock Units (RSUs) [Member] | ||||
Antidilutive securities (in shares) | 15 | 226 | 12 | 389 |
Employee Stock Purchase Plan [Member] | ||||
Antidilutive securities (in shares) | 68 | 25 | 42 | 162 |
Note 8 - Customer and Geograp41
Note 8 - Customer and Geographic Information (Details Textual) | 9 Months Ended |
Sep. 30, 2017 | |
Number of Operating Segments | 1 |
Number of Reportable Segments | 1 |
Note 8 - Customer and Geograp42
Note 8 - 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, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |||
Customer A [Member] | ||||||
Receivables percentage by major customer | 38.00% | 38.00% | 41.00% | 42.00% | ||
Customer B [Member] | ||||||
Receivables percentage by major customer | 12.00% | [1] | 12.00% | [1] | ||
[1] | represents less than 10% |
Note 8 - Customer and Geograp43
Note 8 - 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, 2017 | Dec. 31, 2016 | |
Customer A [Member] | ||
Receivables percentage by major customer | 44.00% | 42.00% |
Customer C [Member] | ||
Receivables percentage by major customer | 15.00% | 13.00% |
Note 8 - Customer and Geograp44
Note 8 - Customer and Geographic Information - Revenues by Geographic Area (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Revenues | $ 26,517 | $ 27,259 | $ 75,094 | $ 79,028 |
Geographic Concentration Risk [Member] | Sales Revenue, Net [Member] | ||||
Revenues | $ 26,517 | $ 27,259 | $ 75,094 | $ 79,028 |
Percentage of Revenues | 100.00% | 100.00% | 100.00% | 100.00% |
Geographic Concentration Risk [Member] | Sales Revenue, Net [Member] | UNITED STATES | ||||
Revenues | $ 9,750 | $ 8,680 | $ 30,610 | $ 30,320 |
Percentage of Revenues | 37.00% | 32.00% | 41.00% | 38.00% |
Geographic Concentration Risk [Member] | Sales Revenue, Net [Member] | CHINA | ||||
Revenues | $ 6,452 | $ 2,907 | $ 12,891 | $ 5,506 |
Percentage of Revenues | 24.00% | 11.00% | 17.00% | 7.00% |
Geographic Concentration Risk [Member] | Sales Revenue, Net [Member] | GERMANY | ||||
Revenues | $ 2,729 | $ 4,896 | $ 6,831 | $ 11,924 |
Percentage of Revenues | 10.00% | 18.00% | 9.00% | 15.00% |
Geographic Concentration Risk [Member] | Sales Revenue, Net [Member] | TAIWAN, PROVINCE OF CHINA | ||||
Revenues | $ 2,414 | $ 4,079 | $ 9,894 | $ 11,988 |
Percentage of Revenues | 9.00% | 15.00% | 13.00% | 15.00% |
Geographic Concentration Risk [Member] | Sales Revenue, Net [Member] | South Korea [Member] | ||||
Revenues | $ 1,539 | $ 3,027 | ||
Percentage of Revenues | 6.00% | 11.00% | ||
Geographic Concentration Risk [Member] | Sales Revenue, Net [Member] | KOREA, REPUBLIC OF | ||||
Revenues | $ 5,159 | $ 8,523 | ||
Percentage of Revenues | 7.00% | 11.00% | ||
Geographic Concentration Risk [Member] | Sales Revenue, Net [Member] | Rest of the World [Member] | ||||
Revenues | $ 3,633 | $ 3,670 | $ 9,709 | $ 10,767 |
Percentage of Revenues | 14.00% | 13.00% | 13.00% | 14.00% |
Note 8 - Customer and Geograp45
Note 8 - Customer and Geographic Information - Long-lived Assets by Geographic Area (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Long-lived assets | $ 23,604 | $ 19,341 |
UNITED STATES | ||
Long-lived assets | 23,117 | 18,818 |
Rest of the World [Member] | ||
Long-lived assets | $ 487 | $ 523 |
Note 9 - Fair Value Measureme46
Note 9 - Fair Value Measurements (Details Textual) - Foreign Exchange Contract [Member] - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Derivative Asset, Notional Amount | $ 8,000,000 | $ 8,000,000 | $ 6,900,000 | ||
Other Current Liabilities [Member] | |||||
Derivative Liability, Current | 10,000 | 10,000 | $ 15,000 | ||
Other Nonoperating Income (Expense) [Member] | |||||
Derivative, Gain (Loss) on Derivative, Net | $ 200,000 | $ 37,000 | $ 700,000 | $ 45,000 |
Note 9 - Fair Value Measureme47
Note 9 - Fair Value Measurements - Fair Value, Assets Measured on a Recurring Basis (Details) - Money Market Funds [Member] - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Money market mutual funds | $ 26,577 | $ 26,456 |
Fair Value, Inputs, Level 1 [Member] | ||
Money market mutual funds | 26,577 | 26,456 |
Fair Value, Inputs, Level 2 [Member] | ||
Money market mutual funds | ||
Fair Value, Inputs, Level 3 [Member] | ||
Money market mutual funds |
Note 10 - Commitments and Con48
Note 10 - Commitments and Contingencies (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Operating Leases, Rent Expense, Net | $ 600 | $ 600 | $ 1,600 | $ 1,700 |
Purchase Obligation, Due in Next Twelve Months | 8,300 | 8,300 | ||
Loss Contingency Accrual | $ 0 | $ 0 |
Note 10 - Commitments and Con49
Note 10 - Commitments and Contingencies - Future Minimum Lease Payments Under Noncancelable Operating Leases (Details) $ in Thousands | Sep. 30, 2017USD ($) |
2017 (remaining three months) | $ 544 |
2,018 | 1,757 |
2,019 | 532 |
2,020 | 444 |
2,021 | 360 |
2022 and thereafter | 126 |
Total future minimum lease payments | $ 3,763 |