Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2017 | May 03, 2017 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | VOCERA COMMUNICATIONS, INC. | |
Entity Central Index Key | 1,129,260 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2017 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 28,243,500 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Current assets | ||
Cash and cash equivalents | $ 43,084 | $ 35,033 |
Short-term investments | 28,250 | 39,033 |
Accounts receivable, net of allowance | 24,571 | 24,142 |
Other receivables | 1,140 | 1,211 |
Inventories | 3,744 | 4,556 |
Prepaid expenses and other current assets | 3,777 | 3,364 |
Total current assets | 104,566 | 107,339 |
Property and equipment, net | 5,851 | 5,894 |
Intangible assets, net | 17,068 | 18,200 |
Goodwill | 49,246 | 49,246 |
Other long-term assets | 1,516 | 1,394 |
Total assets | 178,247 | 182,073 |
Current liabilities | ||
Accounts payable | 3,135 | 3,231 |
Product Warranty Accrual, Current | 499 | 596 |
Accrued payroll and other current liabilities | 12,757 | 15,896 |
Deferred revenue, current | 39,745 | 43,845 |
Total current liabilities | 55,637 | 62,972 |
Deferred revenue, long-term | 16,292 | 11,155 |
Other long-term liabilities | 4,570 | 4,505 |
Total liabilities | 76,499 | 78,632 |
Commitments and contingencies (Note 7) | ||
Stockholders' equity | ||
Preferred stock, $0.0003 par value - 5,000,000 shares authorized as of March 31, 2017 and December 31, 2016; zero shares issued and outstanding | 0 | 0 |
Common stock, $0.0003 par value - 100,000,000 shares authorized as of March 31, 2017 and December 31, 2016; 27,908,895 and 27,568,103 shares issued and outstanding as of March 31, 2017 and December 31, 2016, respectively | 8 | 8 |
Additional paid-in capital | 235,933 | 230,605 |
Accumulated other comprehensive loss | (72) | (69) |
Accumulated deficit | (134,121) | (127,103) |
Total stockholders’ equity | 101,748 | 103,441 |
Total liabilities and stockholders’ equity | $ 178,247 | $ 182,073 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets Condensed Consolidated Balance Sheets (Paranthetical) - $ / shares | Mar. 31, 2017 | Dec. 31, 2016 |
Liabilities and stockholders' equity | ||
Common stock par value | $ 0.0003 | $ 0.0003 |
Common stock shares authorized | 100,000,000 | 100,000,000 |
Common stock shares issued | 27,908,895 | 27,568,103 |
Common stock shares outstanding | 27,908,895 | 27,568,103 |
Preferred Stock | ||
Liabilities and stockholders' equity | ||
Preferred stock par value | $ 0.0003 | $ 0.0003 |
Preferred stock shares authorized | 5,000,000 | 5,000,000 |
Preferred stock shares issued | 0 | 0 |
Preferred stock shares outstanding | 0 | 0 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Revenue | ||
Product | $ 20,033 | $ 13,802 |
Service | 16,262 | 12,975 |
Total revenue | 36,295 | 26,777 |
Cost of revenue | ||
Product | 6,409 | 4,449 |
Service | 9,155 | 5,650 |
Total cost of revenue | 15,564 | 10,099 |
Gross profit | 20,731 | 16,678 |
Operating expenses | ||
Research and development | 6,929 | 3,972 |
Sales and marketing | 14,581 | 12,026 |
General and administrative | 5,695 | 4,336 |
Total operating expenses | 27,205 | 20,334 |
Loss from operations | (6,474) | (3,656) |
Interest income | 105 | 178 |
Other income (expense), net | 109 | (14) |
Loss before income taxes | (6,260) | (3,492) |
Provision for income taxes | (380) | (92) |
Net loss | $ (6,640) | $ (3,584) |
Net loss per share | ||
Basic and Diluted | $ (0.24) | $ (0.14) |
Weighted average shares used to compute net loss per share | ||
Basic and Diluted | 27,751 | 26,379 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | ||
Net loss | $ (6,640) | $ (3,584) |
Other comprehensive loss, net: | ||
Change in unrealized gain (loss) on investments, net of tax | (3) | 172 |
Comprehensive loss | $ (6,643) | $ (3,412) |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Statement of Cash Flows [Abstract] | ||
Other Operating Activities, Cash Flow Statement | $ 12 | $ 3 |
Cash flows from operating activities | ||
Net loss | 6,640 | 3,584 |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 1,804 | 726 |
Inventory provision | 51 | 3 |
Change in lease-related performance liabilities | (169) | (194) |
Stock-based compensation expense | 3,583 | 2,546 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (429) | 8,172 |
Other receivables | 72 | (103) |
Inventories | 761 | (903) |
Prepaid expenses and other assets | (536) | (354) |
Accounts payable | (138) | 568 |
Accrued payroll and other liabilities | (2,908) | (2,565) |
Deferred revenue | 1,037 | (752) |
Net cash used in operating activities | (3,500) | 3,563 |
Cash flows from investing activities | ||
Purchase of property and equipment | (600) | (733) |
Purchase of short-term investments | (14,354) | (39,182) |
Maturities of short-term investments | 25,135 | 37,015 |
Proceeds from Sale of Available-for-sale Securities | 0 | 713 |
Net cash used in investing activities | 10,181 | (2,187) |
Cash flows from financing activities | ||
Cash from lease-related performance obligations | 0 | 387 |
Proceeds from exercise of stock options | 1,912 | 406 |
Tax withholdings paid on behalf of employees for net share settlement | (542) | (341) |
Net cash provided by financing activities | 1,370 | 452 |
Net decrease in cash and cash equivalents | 8,051 | 1,828 |
Cash and cash equivalents at beginning of period | 35,033 | 20,572 |
Cash and cash equivalents at end of period | 43,084 | 22,400 |
Supplemental disclosure of non-cash investing and financing activities: | ||
Property and equipment in accounts payable and accrued liabilities | $ 86 | $ 776 |
The Company and Summary of Sign
The Company and Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
The Company and Summary of Significant Accounting Policies | The Company and Summary of Significant Accounting Policies Organization and Business Vocera Communications, Inc. and its subsidiaries (the “Company” or “Vocera”) is a provider of secure, integrated, intelligent communication and clinical workflow solutions, focused on empowering mobile workers in healthcare, hospitality, energy and other mission-critical mobile work environments, in the United States and internationally. The significant majority of the Company’s business is generated from sales of its solutions in the healthcare market to help its customers improve quality of care, patient and staff experience and increase operational efficiency. The Vocera Communication System, which includes an intelligent enterprise software platform, a lightweight, wearable, voice-controlled communication badge and smartphone applications, enables users to connect instantly with other staff simply by saying the name, function or group name of the desired recipient. It also securely delivers text messages and alerts directly to and from smartphones, replacing legacy pagers. Our new Engage software is an event-driven, communication and workflow collaboration solution for the hospital environment. It features an advanced clinical rules engine and interoperates with data from multiple clinical systems. This enables the prioritization of notifications, including patient context, and sends messages to the right care team members on their mobile devices. Our software applications help improve care coordination, patient safety and patient satisfaction. Basis of Presentation The Company’s unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and pursuant to the instructions to Form 10-Q and Article 10 of Regulation S-X of the U.S. Securities and Exchange Commission, and include the accounts of Vocera and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated. Certain information and disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Accordingly, these unaudited interim condensed consolidated financial statements should be read in conjunction with the annual audited consolidated financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 . The year-end condensed balance sheet data was derived from the Company’s audited financial statements, but does not include all disclosures required by GAAP. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments, which include only normal recurring adjustments, necessary to present fairly the Company’s interim consolidated financial information. The results for the quarter presented are not necessarily indicative of the results to be expected for the year ending December 31, 2017 or for any other interim period or any other future year. The accounting policies followed in the preparation of these financial statements are consistent in all material respects with those presented in Note 1 to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016. Use of Estimates The preparation of the accompanying unaudited condensed consolidated financial statements in conformity with GAAP requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expense during the reporting periods. The estimates include, but are not limited to, revenue recognition, warranty reserves, inventory reserves, goodwill and intangible assets, stock-based compensation expense, provisions for income taxes and contingencies. Actual results could differ from these estimates, and such differences could be material to the Company’s financial position and results of operations. Revenue Recognition The Company derives revenue from the sales of communication badges, perpetual software licenses for software that is essential to the functionality of the communication badges, smartphones, software maintenance, extended product warranty and professional services. The Company also derives revenue from the sale of licenses for software that is not essential to the functionality of the communication badges, which may include Clinical Integration and Vocera smartphone applications as well as certain subscription-based revenues including Vocera Care Experience. The Company’s revenue recognition policy has not changed from that described in its Annual Report on Form 10-K for the year ended December 31, 2016 . Transfer of sales-type leases to third-parties Proceeds from transfers of sales-type leases to third-party financial companies are allocated between the net investment in sales-type leases and the executory cost component for remaining service obligations based on relative present value. The difference between the amount of proceeds allocated to the net investment in lease and the carrying value of the net investment in lease is included in product revenue. Proceeds allocated to the executory cost component are accounted for as financing liabilities. For the three months ended March 31, 2017 and 2016 , the Company transferred zero and $0.3 million , respectively, of lease receivables in non-recourse sales to third-party financial companies, with immaterial net losses. For the three months ended March 31, 2017 and 2016 , the Company recorded zero and $0.4 million , respectively, of financing liabilities for future performance of executory service obligations. For lease receivables retained as of March 31, 2017 and December 31, 2016 , the Company recorded $1.6 million and $1.9 million of net investment in sales-type leases, respectively, equivalent to the minimum lease payments less the unearned interest portion. Recently Adopted Accounting Pronouncement In March 2016, the Financial Accounting Standards Board (FASB) issued new guidance related to accounting for stock-based payment award transactions. The guidance is designed to simplify several aspects of accounting for share-based payment award transactions, including the income tax consequences, classification of awards as either equity or liabilities, classification on the statement of cash flows and forfeiture rate calculations. The guidance eliminates the requirement to delay the recognition of excess tax benefits until they reduce current taxes payable. Under this standard, previously unrecognized excess tax benefits shall be recognized on a modified retrospective basis. However, as of January 1, 2017, the previously unrecognized excess tax benefits of $10.4 million had no impact on the Company’s accumulated deficit balance as the related U.S. deferred tax assets were fully offset by a valuation allowance. The guidance also requires excess tax benefits and deficiencies to be recognized prospectively in the provision for income taxes rather than additional paid-in capital. The Company therefore determined that adoption of the new guidance had no material impact on the condensed consolidated statement of operations and the condensed consolidated statement of cash flows. Further, the new guidance eliminates the requirement to estimate forfeitures and reduce stock compensation expense during the vesting period. Instead, companies can elect to account for actual forfeitures as they occur and record any previously unrecognized compensation expense for estimated forfeitures up to the period of adoption as a retrospective adjustment to beginning retained earnings. The Company has made the election to account for actual forfeitures as they occur starting in fiscal year 2017. During the three months ended March 31, 2017, the Company recorded a retrospective adjustment to accumulated deficit of $0.4 million Recent Accounting Pronouncements In May 2014, the FASB together with the International Accounting Standards Board issued converged guidance for revenue recognition that will replace most existing guidance, eliminate industry-specific guidance and provide a unified model for determining how and when revenue from contracts with customers should be recognized. Under the new guidance, 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 new guidance permits two methods of adoption: retrospectively to each prior reporting period presented (full retrospective method), or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application (modified retrospective method). The Company currently plans to adopt using the full retrospective method, however, such determination could change depending on a number of factors including system readiness, the magnitude of the potential impact on the financial results, and its ability to gather sufficient data to assess the impact on prior period financial statements timely. Public entities are required to adopt the new guidance for annual reporting periods beginning December 15, 2017, including interim periods. The Company will adopt the new guidance on January 1, 2018. The Company anticipates the new guidance to have a material impact on its consolidated financial statements. While the Company is continuing to assess all potential impacts of the standard, the Company currently believes the most significant impact relates to the timing of revenue recognition for software licenses sold with professional services as it did not have vendor specific objective evidence (“VSOE”) for professional services under current guidance. Under the new standard, the requirement to have VSOE for undelivered elements is eliminated and the Company will recognize revenue for software licenses upon transfer of control to its customers. Additionally, the new standard requires the capitalization and amortization of costs related to obtaining a contract which are currently expensed at the time of sale. The Company is continuing to assess the impact of this guidance on its consolidated financial statements, as well as the determination of the method of adoption. In February 2016, the FASB amended lease accounting requirements to begin recording assets and liabilities arising from leases on the balance sheet. The new guidance will also require significant additional disclosures about the amount, timing and uncertainty of cash flows from leases. This new guidance will be effective beginning on January 1, 2019 using a modified retrospective approach. The modified retrospective approach includes a number of optional practical expedients that entities may elect to apply. The Company has not yet determined the future effect of the standard on its financial position or results of operations. In June 2016, the FASB issued new guidance related to the accounting for credit losses on instruments for both financial services and non-financial services entities. The new guidance introduces an approach based on expected losses to estimate credit losses on certain types of financial instruments. It also modifies the impairment model for available-for-sale debt securities and provides for a simplified accounting model for purchased financial assets with credit deterioration since their origination. The guidance will be effective beginning January 1, 2020. Early adoption is permitted. The Company is currently evaluating the impact of this new guidance on its consolidated financial statements. In October 2016, the FASB issued amended guidance on the accounting for income taxes. The new guidance requires the recognition of the income tax consequences of an intercompany asset transfer, other than transfers of inventory, when the transfer occurs. The guidance will be effective for reporting periods beginning after December 15, 2017, with early adoption permitted. The Company is currently evaluating the impact of this new guidance on its consolidated financial statements, but does not expect that it will have a material impact on its consolidated financial statements. In January 2017, the FASB issued new guidance which clarifies the definition of a business to assist companies with evaluating whether transactions should be accounted for as acquisitions of assets or businesses. The new guidance requires a company to evaluate if substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets; if so, the set of assets and activities is not a business. The guidance also requires a business to include at least one substantive process and narrows the definition of outputs by more closely aligning it with how outputs are described in the guidance for revenue from contracts with customers. The new guidance will be effective for the Company in the first quarter of 2018. Early adoption is permitted. The guidance should be applied prospectively to any transactions occurring within the period of adoption. The adoption of this guidance is not expected to have a material impact on the Company’s consolidated financial statements. In January 2017, the FASB issued new guidance to simplify the accounting for goodwill impairment. The guidance simplifies the measurement of goodwill impairment by removing step 2 of the goodwill impairment test, which requires the determination of the fair value of individual assets and liabilities of a reporting unit. The new guidance requires goodwill impairment to be measured as the amount by which a reporting unit’s carrying value exceeds its fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. The amendments should be applied on a prospective basis. The new standard is effective for fiscal years beginning after December 15, 2019 with early adoption permitted for interim or annual goodwill impairment tests performed after January 1, 2017. The Company is evaluating the impact of this new accounting guidance on its consolidated financial statements. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company’s cash, cash equivalents and short-term investments are carried at their fair values with any differences from their amortized cost recorded in equity as unrealized gains (losses) on marketable securities. As a basis for determining the fair value of its assets and liabilities, the Company follows a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: (Level 1) observable inputs such as quoted prices in active markets; (Level 2) inputs other than the quoted prices in active markets that are observable either directly or indirectly; and (Level 3) unobservable inputs in which there is little or no market data which requires the Company to develop its own assumptions. This hierarchy requires the Company to use observable market data, when available, and to minimize the use of unobservable inputs when determining fair value. For the three months ended March 31, 2017 , there have been no transfers between Level 1 and Level 2 fair value instruments and no transfers in or out of Level 3. The Company’s money market funds are classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices. The fair value of the Company’s Level 2 fixed income securities are obtained from independent pricing services, which may use quoted market prices for identical or comparable instruments or model-driven valuations using observable market data or other inputs corroborated by observable market data. The Company does not have any financial instruments which are valued using Level 3 inputs. The Company’s assets that are measured at fair value on a recurring basis, by level, within the fair value hierarchy as of March 31, 2017 and December 31, 2016 , are summarized as follows (in thousands): March 31, 2017 December 31, 2016 Level 1 Level 2 Total Level 1 Level 2 Total Assets Money market funds $ 11,909 $ — $ 11,909 $ 4,996 $ — $ 4,996 Commercial paper — 2,082 2,082 — 1,322 1,322 U.S. government agency securities — 3,282 3,282 — 4,177 4,177 U.S. Treasury securities — 1,300 1,300 — 2,045 2,045 Corporate debt securities — 27,234 27,234 — 33,166 33,166 Total assets measured at fair value $ 11,909 $ 33,898 $ 45,807 $ 4,996 $ 40,710 $ 45,706 The Company had no liabilities as of March 31, 2017 and December 31, 2016 that were measured at fair value on a recurring basis. |
Cash, Cash Equivalents and Shor
Cash, Cash Equivalents and Short-term Investments | 3 Months Ended |
Mar. 31, 2017 | |
Cash and Cash Equivalents [Abstract] | |
Cash, Cash Equivalents, and Short-term Investments | Cash, Cash Equivalents and Short-Term Investments The following tables present current and prior-year-end balances for cash, cash equivalents and short-term investments (in thousands): As of March 31, 2017 Amortized Cost Unrealized Gains Unrealized Losses Fair value Cash and cash equivalents: Demand deposits and other cash $ 25,527 $ — $ — $ 25,527 Money market funds 11,909 — — 11,909 Commercial paper 600 — — 600 U.S. government agency securities 400 — — 400 Corporate debt securities 4,650 — (2 ) 4,648 Total cash and cash equivalents 43,086 — (2 ) 43,084 Short-Term Investments: Commercial paper 1,482 — — 1,482 U.S. government agency securities 2,883 — (1 ) 2,882 U.S. Treasury securities 1,301 — (1 ) 1,300 Corporate debt securities 22,598 2 (14 ) 22,586 Total short-term investments 28,264 2 (16 ) 28,250 Total cash, cash equivalents and short-term investments $ 71,350 $ 2 $ (18 ) $ 71,334 As of December 31, 2016 Amortized Cost Unrealized Gains Unrealized Losses Fair value Cash and cash equivalents: Demand deposits and other cash $ 28,360 $ — $ — $ 28,360 Money market funds 4,996 — — 4,996 Commercial paper 549 — — 549 Corporate debt securities 1,128 — — 1,128 Total cash and cash equivalents 35,033 — — 35,033 Short-Term Investments: Commercial paper 773 — — 773 U.S. government agency securities 4,176 1 — 4,177 U.S. Treasury securities 2,045 — — 2,045 Corporate debt securities 32,052 1 (15 ) 32,038 Total short-term investments 39,046 2 (15 ) 39,033 Total cash, cash equivalents and short-term investments $ 74,079 $ 2 $ (15 ) $ 74,066 The Company has determined that the unrealized losses on its short-term investments as of March 31, 2017 and December 31, 2016 do not constitute an “other than temporary impairment.” The unrealized losses for the short-term investments have all been in a continuous unrealized loss position for less than twelve months. The Company’s conclusion of no “other than temporary impairment” is based on the high credit quality of the securities, their short remaining maturity and the Company’s intent and ability to hold such loss securities until maturity. Classification of the cash, cash equivalent and short-term investments by contractual maturity was as follows: (in thousands) One year or shorter Total Balances as of March 31, 2017 Cash and cash equivalents (1) $ 43,084 $ 43,084 Short-term investments 28,250 28,250 Cash, cash equivalents and short-term investments $ 71,334 $ 71,334 Balances as of December 31, 2016 Cash and cash equivalents (1) $ 35,033 $ 35,033 Short-term investments 39,033 39,033 Cash, cash equivalents and short-term investments $ 74,066 $ 74,066 (1) Includes demand deposits and other cash, money market funds and other cash equivalent securities, all with 0-90 day maturity at purchase. |
Net Loss Per Share
Net Loss Per Share | 3 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | Net Loss Per Share The following table sets forth the computation of basic and diluted net loss per share (in thousands, except per share amounts): Three months ended March 31, 2017 2016 Numerator: Net loss $ (6,640 ) $ (3,584 ) Denominator: Weighted-average shares used to compute net loss per common share - basic and diluted 27,751 26,379 Net loss per share Basic and diluted $ (0.24 ) $ (0.14 ) The following securities were not included in the calculation of diluted shares outstanding as the effect would have been anti-dilutive: Three months ended March 31, (in thousands) 2017 2016 Options to purchase common stock, including ESPP 2,193 3,125 Restricted stock units 2,147 1,371 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Mar. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill As of March 31, 2017 and December 31, 2016 , the Company had $49.2 million and $49.2 million of goodwill, respectively, with $41.2 million and $8.0 million allocated to the Company’s Product and Services operating segments, respectively. As of March 31, 2017 , there were no changes in circumstances indicating that the carrying values of goodwill or acquired intangibles may not be recoverable. Intangible Assets Acquisition-related intangible assets are amortized either straight-line, or over the life of the assets on a basis that resembles the economic benefit of the assets. This yields amortization in the latter case that is higher in earlier periods of the useful life. The estimated useful lives and carrying value of acquired intangible assets are as follows: March 31, 2017 December 31, 2016 (in thousands) Range of Useful Life (years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Developed technology 3 to 7 $ 10,050 $ 3,459 $ 6,591 $ 10,050 $ 2,845 $ 7,205 Customer relationships 7 to 9 10,920 2,577 8,343 10,920 2,280 8,640 Backlog 3 1,400 194 1,206 1,400 78 1,322 Non-compete agreements 2 to 4 460 406 54 460 389 71 Trademarks 3 to 7 1,110 236 874 1,110 148 962 Intangible assets, net book value $ 23,940 $ 6,872 $ 17,068 $ 23,940 $ 5,740 $ 18,200 Amortization expense was $1.1 million and $0.2 million for the three months ended March 31, 2017 and 2016 , respectively. Amortization of acquired intangible assets is reflected in the cost of revenue for developed technology and backlog and in operating expenses for the other intangible assets. The estimated future amortization of existing acquired intangible assets as of March 31, 2017 was as follows: (in thousands) Future amortization 2017 (remaining nine months) $ 3,411 2018 4,424 2019 3,880 2020 1,251 2021 1,127 2022 1,050 Thereafter 1,925 Future amortization expense $ 17,068 |
Balance Sheet Components
Balance Sheet Components | 3 Months Ended |
Mar. 31, 2017 | |
Balance Sheet Components [Abstract] | |
Balance Sheet Components | Balance Sheet Components Inventories (in thousands) March 31, December 31, Raw materials $ 84 $ 103 Finished goods 3,660 4,453 Total inventories $ 3,744 $ 4,556 Property and equipment, net (in thousands) March 31, December 31, Computer equipment and software $ 9,107 $ 8,971 Furniture, fixtures and equipment 1,797 1,726 Leasehold improvements 4,260 4,144 Manufacturing tools and equipment 3,070 3,019 Construction in process 12 74 Property and equipment, at cost 18,246 17,934 Less: Accumulated depreciation (12,395 ) (12,040 ) Property and equipment, net $ 5,851 $ 5,894 Depreciation and amortization expense was $0.7 million and $0.5 million for the three months ended March 31, 2017 and 2016 , respectively. Net investment in sales-type leases The Company has sales-type leases with terms of 0.75 to 4 years. Sales-type lease receivables are collateralized by the underlying equipment. The components of the Company’s net investment in sales-type leases are as follows: (in thousands) March 31, December 31, Minimum payments to be received on sales-type leases $ 3,214 $ 3,566 Less: Unearned interest income and executory costs (1,635 ) (1,704 ) Net investment in sales-type leases 1,579 1,862 Less: Current portion (946 ) (1,066 ) Non-current net investment in sales-type leases $ 633 $ 796 There were no allowances for doubtful accounts on these leases as of March 31, 2017 and December 31, 2016 . There is no guaranteed or unguaranteed residual value on the leased equipment. The current and non-current net investments in sales-type leases are reported as components of the consolidated balance sheet captions “other receivables” and “other long-term assets,” respectively. The minimum payments expected to be received for future years under sales-type leases as of March 31, 2017 were as follows: (in thousands) Future lease payments 2017 (remaining nine months) $ 1,159 2018 1,257 2019 572 2020 226 2021 — Total $ 3,214 Accrued payroll and other current liabilities (in thousands) March 31, December 31, Payroll and related expenses $ 8,275 $ 10,385 Accrued payables 1,530 2,334 Deferred rent, current portion 237 229 Lease financing, current portion 799 801 Product warranty 499 596 Customer prepayments 683 769 Sales and use tax payable 335 451 Other 399 331 Total accrued payroll and other current liabilities $ 12,757 $ 15,896 The changes in the Company’s product warranty reserve are as follows: Three months ended March 31, (in thousands) 2017 2016 Warranty balance at the beginning of the period $ 596 $ 806 Warranty expense accrued for shipments during the period 138 172 Changes in estimate related to pre-existing warranties (152 ) (201 ) Warranty settlements made (83 ) (157 ) Total product warranty 499 620 Less: Long-term portion — (36 ) Current portion of warranty balance at the end of the period $ 499 $ 584 |
Commitments
Commitments | 3 Months Ended |
Mar. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure | Commitments and Contingencies Non-cancelable Material Commitments The Company is required to purchase unused, non-cancelable, non-returnable raw material inventory that was purchased by its contract manufacturers based on committed finished goods orders from the Company, certain long lead-time raw materials based on the Company’s forecast and current work-in-progress materials. As of March 31, 2017 and December 31, 2016 , approximately $5.7 million and $5.4 million , respectively, of such inventory was purchased and held by the third-party manufacturers which was subject to these purchase guarantees. Leases The Company leases office space for its headquarters and subsidiaries under non-cancelable operating leases, which will expire between December 2017 and March 2022. The Company recognizes rent expense on a straight-line basis over the lease period, and has accrued for rent expense incurred but not paid. Facilities rent expense was $0.6 million and $0.6 million for the three months ended March 31, 2017 and 2016 , respectively. Future minimum lease payments at March 31, 2017 under non-cancelable operating leases are as follows: (in thousands) Operating leases 2017 (remaining nine months) $ 1,704 2018 2,205 2019 2,030 2020 1,687 2021 1,595 2022 402 Total minimum lease payments $ 9,623 Indemnifications The Company undertakes, in the ordinary course of business, to (i) defend customers and other parties from certain third-party claims associated with allegations of trade secret misappropriation, infringement of copyright, patent or other intellectual property rights, tortious damage to persons or property or breaches of certain Company obligations relating to confidentiality (e.g., safeguarding protected health information) and (ii) indemnify and hold harmless such parties from certain resulting damages, costs and other liabilities. The term of these undertakings may be perpetual and the maximum potential liability of the Company under certain of these undertakings is not determinable. Based on its historical experience, the Company believes the liability associated with these undertakings is minimal. The Company has entered into indemnification agreements with its directors and officers that may require the Company to indemnify its directors and officers against liabilities that may arise by reason of their status or service as directors or officers, other than liabilities arising from willful misconduct of the individual. The Company currently has directors and officers insurance. As there has been no significant history of losses, no expense accrual has been made. Litigation From time to time, the Company may be involved in lawsuits, claims, investigations and proceedings, consisting of intellectual property, commercial, employment and other matters which arise in the ordinary course of business. The Company defends itself vigorously against any such claims. Although the outcome of these matters is currently not determinable, management expects that any losses from existing matters that are probable or reasonably possible of being incurred as a result of these matters would not be material to the financial statements as a whole. |
Stock-based Compensation and Aw
Stock-based Compensation and Awards | 3 Months Ended |
Mar. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-based Compensation and Award | Stock-based Compensation and Awards Stock Option Activity A summary of the stock option activity for the three months ended March 31, 2017 is presented below: Options outstanding Number of Options Weighted Average Exercise Price Weighted average remaining contractual term Aggregate intrinsic value (in years) (in thousands) Outstanding at December 31, 2016 2,436,845 $ 10.71 5.09 $ 20,643 Options granted — Options exercised (292,468 ) 6.54 Options canceled (3,447 ) 9.15 Outstanding at March 31, 2017 2,140,930 $ 11.29 5.00 $ 29,098 At March 31, 2017 , there was $1.5 million of unrecognized compensation cost related to options which is expected to be recognized over a weighted-average period of 1.26 years . As of March 31, 2017 , there were 1,771,674 shares that remained available for future issuance of options, restricted stock units (“RSUs”) or other equity awards under the 2012 Equity Incentive Plan. Employee Stock Purchase Plan In March 2012, the Company’s 2012 Employee Stock Purchase Plan (the “ESPP”) was approved. No shares of common stock were purchased during the three months ended March 31, 2017 and 2016. As of March 31, 2017 , there were 744,140 shares available for future issuance under the ESPP. The following Black-Scholes option-pricing assumptions were used for each respective period for the ESPP: Three months ended March 31, 2017 2016 Expected term (in years) 0.50 0.50 Volatility 32.0% 41.5% Risk-free interest rate 0.61% 0.33% Dividend yield 0% 0% Restricted Stock Units A summary of RSU activity for the three months ended March 31, 2017 is presented below: Restricted Stock Units Number of shares Weighted Average Grant Date Fair Value per Share Outstanding at December 31, 2016 2,128,735 $ 13.17 Granted 111,850 20.41 Vested (75,373 ) 13.71 Forfeited (18,412 ) 15.60 Outstanding at March 31, 2017 2,146,800 $ 13.50 At March 31, 2017 , there was $20.6 million of unrecognized compensation cost related to RSUs, which is expected to be recognized over a weighted-average period of 1.86 years . Allocation of Stock-Based Compensation Expense The following table presents the allocation of stock-based compensation expense: Three months ended March 31, (in thousands) 2017 2016 Cost of revenue $ 520 $ 269 Research and development 412 226 Sales and marketing 1,265 1,010 General and administrative 1,386 1,041 Total stock-based compensation $ 3,583 $ 2,546 |
Segments
Segments | 3 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
Segments | Segments The Company has two operating segments, which are both reportable business segments: (i) Product and (ii) Service, both of which are comprised of Vocera’s and its wholly-owned subsidiaries’ results of operations. The following table presents a summary of the operating segments: Three months ended March 31, (in thousands) 2017 2016 Revenue Product $ 20,033 $ 13,802 Service 16,262 12,975 Total revenue 36,295 26,777 Cost of Revenue Product 6,409 4,449 Service 9,155 5,650 Total cost of revenue 15,564 10,099 Gross profit Product 13,624 9,353 Service 7,107 7,325 Total gross profit 20,731 16,678 Operating expenses 27,205 20,334 Interest income, net and other 214 164 Loss before income taxes $ (6,260 ) $ (3,492 ) |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company recorded a $0.4 million and $0.1 million provision for income taxes for the three months ended March 31, 2017 and 2016 , respectively. The provision for the three months ended March 31, 2017 was primarily due to the accretion of deferred tax liability associated with the Extension Healthcare goodwill, taxes on international operations and state income taxes. The provision for the three months ended March 31, 2016 was primarily due to taxes on international operations and state income taxes. As of March 31, 2017 , the Company has provided a valuation allowance against certain federal and state deferred tax assets. Management continues to evaluate the realizability of deferred tax assets and the related valuation allowance. If management’s assessment of the deferred tax assets or the corresponding valuation allowance were to change, the Company would record the related adjustment to income during the period in which management makes the determination. As of March 31, 2017 , there were no material changes to either the nature or the amounts of the uncertain tax positions previously determined for the year ended December 31, 2016 . |
Business Acquisition
Business Acquisition | 3 Months Ended |
Mar. 31, 2017 | |
Business Combinations [Abstract] | |
Business Combination Disclosure | 11. Business Acquisitions Acquisition of Extension Healthcare On October 27, 2016, the Company acquired all of the outstanding equity interest of Extension Healthcare for $52.5 million in cash. Refer to the Company’s report on Form 10-K for the year ended December 31, 2016 for disclosures related to the identifiable assets acquired and liabilities assumed in connection with the acquisition. The Company did not have any adjustments to previously recorded amounts in the purchase price allocation. The results of operations of Extension Healthcare are included in the Company's consolidated results of operations beginning in the fourth quarter of fiscal 2016. The Company determined that it is impracticable to provide comparative pro forma financial information related to the acquisition for the period ended March 31, 2016 as Extension Healthcare did not historically prepare financial statements in accordance with GAAP for interim financial reporting and significant estimates of amounts to be included in such pro forma financial information would be required and subject to an inordinate level of subjectivity. |
The Company and Summary of Si18
The Company and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Nature of Operations | Organization and Business Vocera Communications, Inc. and its subsidiaries (the “Company” or “Vocera”) is a provider of secure, integrated, intelligent communication and clinical workflow solutions, focused on empowering mobile workers in healthcare, hospitality, energy and other mission-critical mobile work environments, in the United States and internationally. The significant majority of the Company’s business is generated from sales of its solutions in the healthcare market to help its customers improve quality of care, patient and staff experience and increase operational efficiency. The Vocera Communication System, which includes an intelligent enterprise software platform, a lightweight, wearable, voice-controlled communication badge and smartphone applications, enables users to connect instantly with other staff simply by saying the name, function or group name of the desired recipient. It also securely delivers text messages and alerts directly to and from smartphones, replacing legacy pagers. Our new Engage software is an event-driven, communication and workflow collaboration solution for the hospital environment. It features an advanced clinical rules engine and interoperates with data from multiple clinical systems. This enables the prioritization of notifications, including patient context, and sends messages to the right care team members on their mobile devices. Our software applications help improve care coordination, patient safety and patient satisfaction. |
Basis of Presentation | Basis of Presentation The Company’s unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and pursuant to the instructions to Form 10-Q and Article 10 of Regulation S-X of the U.S. Securities and Exchange Commission, and include the accounts of Vocera and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated. Certain information and disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Accordingly, these unaudited interim condensed consolidated financial statements should be read in conjunction with the annual audited consolidated financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 . The year-end condensed balance sheet data was derived from the Company’s audited financial statements, but does not include all disclosures required by GAAP. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments, which include only normal recurring adjustments, necessary to present fairly the Company’s interim consolidated financial information. The results for the quarter presented are not necessarily indicative of the results to be expected for the year ending December 31, 2017 or for any other interim period or any other future year. |
Use of Estimates | Use of Estimates The preparation of the accompanying unaudited condensed consolidated financial statements in conformity with GAAP requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expense during the reporting periods. The estimates include, but are not limited to, revenue recognition, warranty reserves, inventory reserves, goodwill and intangible assets, stock-based compensation expense, provisions for income taxes and contingencies. Actual results could differ from these estimates, and such differences could be material to the Company’s financial position and results of operations. |
Revenue Recognition | Revenue Recognition The Company derives revenue from the sales of communication badges, perpetual software licenses for software that is essential to the functionality of the communication badges, smartphones, software maintenance, extended product warranty and professional services. The Company also derives revenue from the sale of licenses for software that is not essential to the functionality of the communication badges, which may include Clinical Integration and Vocera smartphone applications as well as certain subscription-based revenues including Vocera Care Experience. The Company’s revenue recognition policy has not changed from that described in its Annual Report on Form 10-K for the year ended December 31, 2016 . |
Lease, Policy | Transfer of sales-type leases to third-parties Proceeds from transfers of sales-type leases to third-party financial companies are allocated between the net investment in sales-type leases and the executory cost component for remaining service obligations based on relative present value. The difference between the amount of proceeds allocated to the net investment in lease and the carrying value of the net investment in lease is included in product revenue. Proceeds allocated to the executory cost component are accounted for as financing liabilities. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, the FASB together with the International Accounting Standards Board issued converged guidance for revenue recognition that will replace most existing guidance, eliminate industry-specific guidance and provide a unified model for determining how and when revenue from contracts with customers should be recognized. Under the new guidance, 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 new guidance permits two methods of adoption: retrospectively to each prior reporting period presented (full retrospective method), or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application (modified retrospective method). The Company currently plans to adopt using the full retrospective method, however, such determination could change depending on a number of factors including system readiness, the magnitude of the potential impact on the financial results, and its ability to gather sufficient data to assess the impact on prior period financial statements timely. Public entities are required to adopt the new guidance for annual reporting periods beginning December 15, 2017, including interim periods. The Company will adopt the new guidance on January 1, 2018. The Company anticipates the new guidance to have a material impact on its consolidated financial statements. While the Company is continuing to assess all potential impacts of the standard, the Company currently believes the most significant impact relates to the timing of revenue recognition for software licenses sold with professional services as it did not have vendor specific objective evidence (“VSOE”) for professional services under current guidance. Under the new standard, the requirement to have VSOE for undelivered elements is eliminated and the Company will recognize revenue for software licenses upon transfer of control to its customers. Additionally, the new standard requires the capitalization and amortization of costs related to obtaining a contract which are currently expensed at the time of sale. The Company is continuing to assess the impact of this guidance on its consolidated financial statements, as well as the determination of the method of adoption. In February 2016, the FASB amended lease accounting requirements to begin recording assets and liabilities arising from leases on the balance sheet. The new guidance will also require significant additional disclosures about the amount, timing and uncertainty of cash flows from leases. This new guidance will be effective beginning on January 1, 2019 using a modified retrospective approach. The modified retrospective approach includes a number of optional practical expedients that entities may elect to apply. The Company has not yet determined the future effect of the standard on its financial position or results of operations. In June 2016, the FASB issued new guidance related to the accounting for credit losses on instruments for both financial services and non-financial services entities. The new guidance introduces an approach based on expected losses to estimate credit losses on certain types of financial instruments. It also modifies the impairment model for available-for-sale debt securities and provides for a simplified accounting model for purchased financial assets with credit deterioration since their origination. The guidance will be effective beginning January 1, 2020. Early adoption is permitted. The Company is currently evaluating the impact of this new guidance on its consolidated financial statements. In October 2016, the FASB issued amended guidance on the accounting for income taxes. The new guidance requires the recognition of the income tax consequences of an intercompany asset transfer, other than transfers of inventory, when the transfer occurs. The guidance will be effective for reporting periods beginning after December 15, 2017, with early adoption permitted. The Company is currently evaluating the impact of this new guidance on its consolidated financial statements, but does not expect that it will have a material impact on its consolidated financial statements. In January 2017, the FASB issued new guidance which clarifies the definition of a business to assist companies with evaluating whether transactions should be accounted for as acquisitions of assets or businesses. The new guidance requires a company to evaluate if substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets; if so, the set of assets and activities is not a business. The guidance also requires a business to include at least one substantive process and narrows the definition of outputs by more closely aligning it with how outputs are described in the guidance for revenue from contracts with customers. The new guidance will be effective for the Company in the first quarter of 2018. Early adoption is permitted. The guidance should be applied prospectively to any transactions occurring within the period of adoption. The adoption of this guidance is not expected to have a material impact on the Company’s consolidated financial statements. In January 2017, the FASB issued new guidance to simplify the accounting for goodwill impairment. The guidance simplifies the measurement of goodwill impairment by removing step 2 of the goodwill impairment test, which requires the determination of the fair value of individual assets and liabilities of a reporting unit. The new guidance requires goodwill impairment to be measured as the amount by which a reporting unit’s carrying value exceeds its fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. The amendments should be applied on a prospective basis. The new standard is effective for fiscal years beginning after December 15, 2019 with early adoption permitted for interim or annual goodwill impairment tests performed after January 1, 2017. The Company is evaluating the impact of this new accounting guidance on its consolidated financial statements. In March 2016, the Financial Accounting Standards Board (FASB) issued new guidance related to accounting for stock-based payment award transactions. The guidance is designed to simplify several aspects of accounting for share-based payment award transactions, including the income tax consequences, classification of awards as either equity or liabilities, classification on the statement of cash flows and forfeiture rate calculations. The guidance eliminates the requirement to delay the recognition of excess tax benefits until they reduce current taxes payable. Under this standard, previously unrecognized excess tax benefits shall be recognized on a modified retrospective basis. However, as of January 1, 2017, the previously unrecognized excess tax benefits of $10.4 million had no impact on the Company’s accumulated deficit balance as the related U.S. deferred tax assets were fully offset by a valuation allowance. The guidance also requires excess tax benefits and deficiencies to be recognized prospectively in the provision for income taxes rather than additional paid-in capital. The Company therefore determined that adoption of the new guidance had no material impact on the condensed consolidated statement of operations and the condensed consolidated statement of cash flows. Further, the new guidance eliminates the requirement to estimate forfeitures and reduce stock compensation expense during the vesting period. Instead, companies can elect to account for actual forfeitures as they occur and record any previously unrecognized compensation expense for estimated forfeitures up to the period of adoption as a retrospective adjustment to beginning retained earnings. The Company has made the election to account for actual forfeitures as they occur starting in fiscal year 2017. During the three months ended March 31, 2017, the Company recorded a retrospective adjustment to accumulated deficit of $0.4 million |
Fair Value of Fin. Instruments, Policy | Fair Value of Financial Instruments The Company’s cash, cash equivalents and short-term investments are carried at their fair values with any differences from their amortized cost recorded in equity as unrealized gains (losses) on marketable securities. As a basis for determining the fair value of its assets and liabilities, the Company follows a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: (Level 1) observable inputs such as quoted prices in active markets; (Level 2) inputs other than the quoted prices in active markets that are observable either directly or indirectly; and (Level 3) unobservable inputs in which there is little or no market data which requires the Company to develop its own assumptions. This hierarchy requires the Company to use observable market data, when available, and to minimize the use of unobservable inputs when determining fair value. For the three months ended March 31, 2017 , there have been no transfers between Level 1 and Level 2 fair value instruments and no transfers in or out of Level 3. The Company’s money market funds are classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices. The fair value of the Company’s Level 2 fixed income securities are obtained from independent pricing services, which may use quoted market prices for identical or comparable instruments or model-driven valuations using observable market data or other inputs corroborated by observable market data. The Company does not have any financial instruments which are valued using Level 3 inputs. |
Goodwill, Policy | Goodwill As of March 31, 2017 and December 31, 2016 , the Company had $49.2 million and $49.2 million of goodwill, respectively, with $41.2 million and $8.0 million allocated to the Company’s Product and Services operating segments, respectively. As of March 31, 2017 , there were no changes in circumstances indicating that the carrying values of goodwill or acquired intangibles may not be recoverable. |
Intangible Assets, Policy | Intangible Assets Acquisition-related intangible assets are amortized either straight-line, or over the life of the assets on a basis that resembles the economic benefit of the assets. This yields amortization in the latter case that is higher in earlier periods of the useful life. |
Purchase commitments | Non-cancelable Material Commitments The Company is required to purchase unused, non-cancelable, non-returnable raw material inventory that was purchased by its contract manufacturers based on committed finished goods orders from the Company, certain long lead-time raw materials based on the Company’s forecast and current work-in-progress materials. As of March 31, 2017 and December 31, 2016 , approximately $5.7 million and $5.4 million , respectively, of such inventory was purchased and held by the third-party manufacturers which was subject to these purchase guarantees. |
Operating leases | Leases The Company leases office space for its headquarters and subsidiaries under non-cancelable operating leases, which will expire between December 2017 and March 2022. The Company recognizes rent expense on a straight-line basis over the lease period, and has accrued for rent expense incurred but not paid. Facilities rent expense was $0.6 million and $0.6 million for the three months ended March 31, 2017 and 2016 , respectively. |
Segment Reporting, Policy | The Company has two operating segments, which are both reportable business segments: (i) Product and (ii) Service, both of which are comprised of Vocera’s and its wholly-owned subsidiaries’ results of operations. |
Fair Value of Financial Insturm
Fair Value of Financial Insturments (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured at Fair Value on a Recurring Basis | The Company’s assets that are measured at fair value on a recurring basis, by level, within the fair value hierarchy as of March 31, 2017 and December 31, 2016 , are summarized as follows (in thousands): March 31, 2017 December 31, 2016 Level 1 Level 2 Total Level 1 Level 2 Total Assets Money market funds $ 11,909 $ — $ 11,909 $ 4,996 $ — $ 4,996 Commercial paper — 2,082 2,082 — 1,322 1,322 U.S. government agency securities — 3,282 3,282 — 4,177 4,177 U.S. Treasury securities — 1,300 1,300 — 2,045 2,045 Corporate debt securities — 27,234 27,234 — 33,166 33,166 Total assets measured at fair value $ 11,909 $ 33,898 $ 45,807 $ 4,996 $ 40,710 $ 45,706 |
Cash, Cash Equivalents and Sh20
Cash, Cash Equivalents and Short-term Investments (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of Cash, Cash Equivalents and Available-For-Sale Investments | The following tables present current and prior-year-end balances for cash, cash equivalents and short-term investments (in thousands): As of March 31, 2017 Amortized Cost Unrealized Gains Unrealized Losses Fair value Cash and cash equivalents: Demand deposits and other cash $ 25,527 $ — $ — $ 25,527 Money market funds 11,909 — — 11,909 Commercial paper 600 — — 600 U.S. government agency securities 400 — — 400 Corporate debt securities 4,650 — (2 ) 4,648 Total cash and cash equivalents 43,086 — (2 ) 43,084 Short-Term Investments: Commercial paper 1,482 — — 1,482 U.S. government agency securities 2,883 — (1 ) 2,882 U.S. Treasury securities 1,301 — (1 ) 1,300 Corporate debt securities 22,598 2 (14 ) 22,586 Total short-term investments 28,264 2 (16 ) 28,250 Total cash, cash equivalents and short-term investments $ 71,350 $ 2 $ (18 ) $ 71,334 As of December 31, 2016 Amortized Cost Unrealized Gains Unrealized Losses Fair value Cash and cash equivalents: Demand deposits and other cash $ 28,360 $ — $ — $ 28,360 Money market funds 4,996 — — 4,996 Commercial paper 549 — — 549 Corporate debt securities 1,128 — — 1,128 Total cash and cash equivalents 35,033 — — 35,033 Short-Term Investments: Commercial paper 773 — — 773 U.S. government agency securities 4,176 1 — 4,177 U.S. Treasury securities 2,045 — — 2,045 Corporate debt securities 32,052 1 (15 ) 32,038 Total short-term investments 39,046 2 (15 ) 39,033 Total cash, cash equivalents and short-term investments $ 74,079 $ 2 $ (15 ) $ 74,066 |
Investments Classified by Contractual Maturity Date | Classification of the cash, cash equivalent and short-term investments by contractual maturity was as follows: (in thousands) One year or shorter Total Balances as of March 31, 2017 Cash and cash equivalents (1) $ 43,084 $ 43,084 Short-term investments 28,250 28,250 Cash, cash equivalents and short-term investments $ 71,334 $ 71,334 Balances as of December 31, 2016 Cash and cash equivalents (1) $ 35,033 $ 35,033 Short-term investments 39,033 39,033 Cash, cash equivalents and short-term investments $ 74,066 $ 74,066 (1) Includes demand deposits and other cash, money market funds and other cash equivalent securities, all with 0-90 day maturity at purchase. |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of the computation of basic and diluted net income (loss) per share | The following table sets forth the computation of basic and diluted net loss per share (in thousands, except per share amounts): Three months ended March 31, 2017 2016 Numerator: Net loss $ (6,640 ) $ (3,584 ) Denominator: Weighted-average shares used to compute net loss per common share - basic and diluted 27,751 26,379 Net loss per share Basic and diluted $ (0.24 ) $ (0.14 ) |
Schedule of antidilutive securities excluded from computation of earnings per share | The following securities were not included in the calculation of diluted shares outstanding as the effect would have been anti-dilutive: Three months ended March 31, (in thousands) 2017 2016 Options to purchase common stock, including ESPP 2,193 3,125 Restricted stock units 2,147 1,371 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets | The estimated useful lives and carrying value of acquired intangible assets are as follows: March 31, 2017 December 31, 2016 (in thousands) Range of Useful Life (years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Developed technology 3 to 7 $ 10,050 $ 3,459 $ 6,591 $ 10,050 $ 2,845 $ 7,205 Customer relationships 7 to 9 10,920 2,577 8,343 10,920 2,280 8,640 Backlog 3 1,400 194 1,206 1,400 78 1,322 Non-compete agreements 2 to 4 460 406 54 460 389 71 Trademarks 3 to 7 1,110 236 874 1,110 148 962 Intangible assets, net book value $ 23,940 $ 6,872 $ 17,068 $ 23,940 $ 5,740 $ 18,200 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | Amortization of acquired intangible assets is reflected in the cost of revenue for developed technology and backlog and in operating expenses for the other intangible assets. The estimated future amortization of existing acquired intangible assets as of March 31, 2017 was as follows: (in thousands) Future amortization 2017 (remaining nine months) $ 3,411 2018 4,424 2019 3,880 2020 1,251 2021 1,127 2022 1,050 Thereafter 1,925 Future amortization expense $ 17,068 |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Balance Sheet Components [Abstract] | |
Inventories | Inventories (in thousands) March 31, December 31, Raw materials $ 84 $ 103 Finished goods 3,660 4,453 Total inventories $ 3,744 $ 4,556 |
Property and Equipment | Property and equipment, net (in thousands) March 31, December 31, Computer equipment and software $ 9,107 $ 8,971 Furniture, fixtures and equipment 1,797 1,726 Leasehold improvements 4,260 4,144 Manufacturing tools and equipment 3,070 3,019 Construction in process 12 74 Property and equipment, at cost 18,246 17,934 Less: Accumulated depreciation (12,395 ) (12,040 ) Property and equipment, net $ 5,851 $ 5,894 Depreciation and amortization expense was $0.7 million and $0.5 million for the three months ended March 31, 2017 and 2016 , respectively. |
Schedule of Components of Leveraged Lease Investments | Net investment in sales-type leases The Company has sales-type leases with terms of 0.75 to 4 years. Sales-type lease receivables are collateralized by the underlying equipment. The components of the Company’s net investment in sales-type leases are as follows: (in thousands) March 31, December 31, Minimum payments to be received on sales-type leases $ 3,214 $ 3,566 Less: Unearned interest income and executory costs (1,635 ) (1,704 ) Net investment in sales-type leases 1,579 1,862 Less: Current portion (946 ) (1,066 ) Non-current net investment in sales-type leases $ 633 $ 796 There were no allowances for doubtful accounts on these leases as of March 31, 2017 and December 31, 2016 . There is no guaranteed or unguaranteed residual value on the leased equipment. The current and non-current net investments in sales-type leases are reported as components of the consolidated balance sheet captions “other receivables” and “other long-term assets,” respectively. |
Schedule of Future Minimum Lease Payments for Capital Leases | The minimum payments expected to be received for future years under sales-type leases as of March 31, 2017 were as follows: (in thousands) Future lease payments 2017 (remaining nine months) $ 1,159 2018 1,257 2019 572 2020 226 2021 — Total $ 3,214 |
Accrued Liabilities | Accrued payroll and other current liabilities (in thousands) March 31, December 31, Payroll and related expenses $ 8,275 $ 10,385 Accrued payables 1,530 2,334 Deferred rent, current portion 237 229 Lease financing, current portion 799 801 Product warranty 499 596 Customer prepayments 683 769 Sales and use tax payable 335 451 Other 399 331 Total accrued payroll and other current liabilities $ 12,757 $ 15,896 |
Schedule of Product Warranty Liability | The changes in the Company’s product warranty reserve are as follows: Three months ended March 31, (in thousands) 2017 2016 Warranty balance at the beginning of the period $ 596 $ 806 Warranty expense accrued for shipments during the period 138 172 Changes in estimate related to pre-existing warranties (152 ) (201 ) Warranty settlements made (83 ) (157 ) Total product warranty 499 620 Less: Long-term portion — (36 ) Current portion of warranty balance at the end of the period $ 499 $ 584 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases | Future minimum lease payments at March 31, 2017 under non-cancelable operating leases are as follows: (in thousands) Operating leases 2017 (remaining nine months) $ 1,704 2018 2,205 2019 2,030 2020 1,687 2021 1,595 2022 402 Total minimum lease payments $ 9,623 |
Stock-based Compensation and 25
Stock-based Compensation and Awards (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Rollforward of stock option activity | A summary of the stock option activity for the three months ended March 31, 2017 is presented below: Options outstanding Number of Options Weighted Average Exercise Price Weighted average remaining contractual term Aggregate intrinsic value (in years) (in thousands) Outstanding at December 31, 2016 2,436,845 $ 10.71 5.09 $ 20,643 Options granted — Options exercised (292,468 ) 6.54 Options canceled (3,447 ) 9.15 Outstanding at March 31, 2017 2,140,930 $ 11.29 5.00 $ 29,098 |
Equity B-S-M Valuation Assumptions | The following Black-Scholes option-pricing assumptions were used for each respective period for the ESPP: Three months ended March 31, 2017 2016 Expected term (in years) 0.50 0.50 Volatility 32.0% 41.5% Risk-free interest rate 0.61% 0.33% Dividend yield 0% 0% |
Rollforward of RSA and RSU activty | A summary of RSU activity for the three months ended March 31, 2017 is presented below: Restricted Stock Units Number of shares Weighted Average Grant Date Fair Value per Share Outstanding at December 31, 2016 2,128,735 $ 13.17 Granted 111,850 20.41 Vested (75,373 ) 13.71 Forfeited (18,412 ) 15.60 Outstanding at March 31, 2017 2,146,800 $ 13.50 |
Allocation of Recognized Period Costs | The following table presents the allocation of stock-based compensation expense: Three months ended March 31, (in thousands) 2017 2016 Cost of revenue $ 520 $ 269 Research and development 412 226 Sales and marketing 1,265 1,010 General and administrative 1,386 1,041 Total stock-based compensation $ 3,583 $ 2,546 |
Segments Segments (Tables)
Segments Segments (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
Segments | The following table presents a summary of the operating segments: Three months ended March 31, (in thousands) 2017 2016 Revenue Product $ 20,033 $ 13,802 Service 16,262 12,975 Total revenue 36,295 26,777 Cost of Revenue Product 6,409 4,449 Service 9,155 5,650 Total cost of revenue 15,564 10,099 Gross profit Product 13,624 9,353 Service 7,107 7,325 Total gross profit 20,731 16,678 Operating expenses 27,205 20,334 Interest income, net and other 214 164 Loss before income taxes $ (6,260 ) $ (3,492 ) |
The Company and Summary of Si27
The Company and Summary of Significant Accounting Policies Narrative (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Accounting Policies [Abstract] | |||
sales type capital leases transfered to banks | $ 0 | $ 300,000 | |
Initial financing liability during period incurred for future executory services on transfered leases | 0 | $ 400,000 | |
Net Investment in Sales Type Leases | 1,579,000 | $ 1,862,000 | |
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | 10,400,000 | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ 400,000 |
Fair Value of Financial Instr28
Fair Value of Financial Instruments (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2017 | Dec. 31, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value, Assets, Level 2 to Level 1 Transfers, Amount | $ 0 | |
Fair Value, Assets, Level 1 to Level 2 Transfers, Amount | 0 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3 | 0 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers out of Level 3 | 0 | |
Assets, Fair Value Disclosure [Abstract] | ||
Cash and Cash Equivalents, Fair Value Disclosure | 43,084,000 | $ 35,033,000 |
AFS Securities, Fair Value Disclosure | 28,250,000 | 39,033,000 |
Fair Value, Measurements, Recurring | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total assets measured at fair value | 45,807,000 | 45,706,000 |
Fair Value, Measurements, Recurring | Level 1 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total assets measured at fair value | 11,909,000 | 4,996,000 |
Fair Value, Measurements, Recurring | Level 2 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total assets measured at fair value | 33,898,000 | 40,710,000 |
Fair Value, Measurements, Recurring | Money market funds | ||
Assets, Fair Value Disclosure [Abstract] | ||
Cash and Cash Equivalents, Fair Value Disclosure | 11,909,000 | 4,996,000 |
Fair Value, Measurements, Recurring | Money market funds | Level 1 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Cash and Cash Equivalents, Fair Value Disclosure | 11,909,000 | 4,996,000 |
Fair Value, Measurements, Recurring | Money market funds | Level 2 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Cash and Cash Equivalents, Fair Value Disclosure | 0 | 0 |
Fair Value, Measurements, Recurring | Commercial paper | ||
Assets, Fair Value Disclosure [Abstract] | ||
AFS Securities, Fair Value Disclosure | 2,082,000 | 1,322,000 |
Fair Value, Measurements, Recurring | Commercial paper | Level 1 | ||
Assets, Fair Value Disclosure [Abstract] | ||
AFS Securities, Fair Value Disclosure | 0 | 0 |
Fair Value, Measurements, Recurring | Commercial paper | Level 2 | ||
Assets, Fair Value Disclosure [Abstract] | ||
AFS Securities, Fair Value Disclosure | 2,082,000 | 1,322,000 |
Fair Value, Measurements, Recurring | U.S. government agency securities | ||
Assets, Fair Value Disclosure [Abstract] | ||
AFS Securities, Fair Value Disclosure | 3,282,000 | 4,177,000 |
Fair Value, Measurements, Recurring | U.S. government agency securities | Level 1 | ||
Assets, Fair Value Disclosure [Abstract] | ||
AFS Securities, Fair Value Disclosure | 0 | 0 |
Fair Value, Measurements, Recurring | U.S. government agency securities | Level 2 | ||
Assets, Fair Value Disclosure [Abstract] | ||
AFS Securities, Fair Value Disclosure | 3,282,000 | 4,177,000 |
Fair Value, Measurements, Recurring | U.S. Treasury securities | ||
Assets, Fair Value Disclosure [Abstract] | ||
AFS Securities, Fair Value Disclosure | 1,300,000 | 2,045,000 |
Fair Value, Measurements, Recurring | U.S. Treasury securities | Level 1 | ||
Assets, Fair Value Disclosure [Abstract] | ||
AFS Securities, Fair Value Disclosure | 0 | 0 |
Fair Value, Measurements, Recurring | U.S. Treasury securities | Level 2 | ||
Assets, Fair Value Disclosure [Abstract] | ||
AFS Securities, Fair Value Disclosure | 1,300,000 | 2,045,000 |
Fair Value, Measurements, Recurring | Corporate debt securities | ||
Assets, Fair Value Disclosure [Abstract] | ||
AFS Securities, Fair Value Disclosure | 27,234,000 | 33,166,000 |
Fair Value, Measurements, Recurring | Corporate debt securities | Level 1 | ||
Assets, Fair Value Disclosure [Abstract] | ||
AFS Securities, Fair Value Disclosure | 0 | 0 |
Fair Value, Measurements, Recurring | Corporate debt securities | Level 2 | ||
Assets, Fair Value Disclosure [Abstract] | ||
AFS Securities, Fair Value Disclosure | $ 27,234,000 | $ 33,166,000 |
Schedule of Available for Sale
Schedule of Available for Sale Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Cash and cash equivalents [Abstract] | ||
Cash and Cash Equivalents, Amortized Cost | $ 43,086 | $ 35,033 |
Cash And Cash Equivalents, Gross Unrealized Gains | 0 | 0 |
Cash And Cash Equivalents, Gross Unrealized Losses | (2) | 0 |
Cash and Cash Equivalents, Fair Value Disclosure | 43,084 | 35,033 |
Short-term Investments [Abstract] | ||
AFS Securities, Amortized Cost Basis | 28,264 | 39,046 |
Available-for-sale Securities, Gross Unrealized Gain1 | 2 | 2 |
Available-for-sale Securities, Gross Unrealized Loss1 | (16) | (15) |
AFS Securities, Fair Value Disclosure | 28,250 | 39,033 |
Cash, Cash Equivalents, and Short-term Investments [Abstract] | ||
Cash, Cash Equiv. And S-T Investments, Amortized Cost | 71,350 | 74,079 |
Cash, Cash Equiv. And S-T Investments, Gross Unrealized Gains | 2 | 2 |
Cash, Cash Equiv. And S-T Investments, Gross Unrealized Losses | (18) | (15) |
Cash, Cash Equiv. And S-T Investments, Fair Value Disclosure | 71,334 | 74,066 |
Demand deposits and other cash | ||
Cash and cash equivalents [Abstract] | ||
Cash and Cash Equivalents, Amortized Cost | 25,527 | 28,360 |
Cash And Cash Equivalents, Gross Unrealized Gains | 0 | 0 |
Cash And Cash Equivalents, Gross Unrealized Losses | 0 | 0 |
Cash and Cash Equivalents, Fair Value Disclosure | 25,527 | 28,360 |
Money market funds | ||
Cash and cash equivalents [Abstract] | ||
Cash and Cash Equivalents, Amortized Cost | 11,909 | 4,996 |
Cash And Cash Equivalents, Gross Unrealized Gains | 0 | 0 |
Cash And Cash Equivalents, Gross Unrealized Losses | 0 | 0 |
Cash and Cash Equivalents, Fair Value Disclosure | 11,909 | 4,996 |
Commercial Paper in CE | ||
Cash and cash equivalents [Abstract] | ||
Cash and Cash Equivalents, Amortized Cost | 600 | 549 |
Cash And Cash Equivalents, Gross Unrealized Gains | 0 | 0 |
Cash And Cash Equivalents, Gross Unrealized Losses | 0 | 0 |
Cash and Cash Equivalents, Fair Value Disclosure | 600 | 549 |
U.S. government agency securities | ||
Cash and cash equivalents [Abstract] | ||
Cash and Cash Equivalents, Amortized Cost | 400 | |
Cash And Cash Equivalents, Gross Unrealized Gains | 0 | |
Cash And Cash Equivalents, Gross Unrealized Losses | 0 | |
Cash and Cash Equivalents, Fair Value Disclosure | 400 | |
Corporate Debt Securities | ||
Cash and cash equivalents [Abstract] | ||
Cash and Cash Equivalents, Amortized Cost | 4,650 | 1,128 |
Cash And Cash Equivalents, Gross Unrealized Gains | 0 | 0 |
Cash And Cash Equivalents, Gross Unrealized Losses | (2) | 0 |
Cash and Cash Equivalents, Fair Value Disclosure | 4,648 | 1,128 |
Commercial paper in STI | ||
Short-term Investments [Abstract] | ||
AFS Securities, Amortized Cost Basis | 1,482 | 773 |
Available-for-sale Securities, Gross Unrealized Gain1 | 0 | 0 |
Available-for-sale Securities, Gross Unrealized Loss1 | 0 | 0 |
AFS Securities, Fair Value Disclosure | 1,482 | 773 |
U.S. government agency securities | ||
Short-term Investments [Abstract] | ||
AFS Securities, Amortized Cost Basis | 2,883 | 4,176 |
Available-for-sale Securities, Gross Unrealized Gain1 | 0 | 1 |
Available-for-sale Securities, Gross Unrealized Loss1 | (1) | 0 |
AFS Securities, Fair Value Disclosure | 2,882 | 4,177 |
U.S. Treasury securities | ||
Short-term Investments [Abstract] | ||
AFS Securities, Amortized Cost Basis | 1,301 | 2,045 |
Available-for-sale Securities, Gross Unrealized Gain1 | 0 | 0 |
Available-for-sale Securities, Gross Unrealized Loss1 | (1) | 0 |
AFS Securities, Fair Value Disclosure | 1,300 | 2,045 |
Corporate Debt Securities | ||
Short-term Investments [Abstract] | ||
AFS Securities, Amortized Cost Basis | 22,598 | 32,052 |
Available-for-sale Securities, Gross Unrealized Gain1 | 2 | 1 |
Available-for-sale Securities, Gross Unrealized Loss1 | (14) | (15) |
AFS Securities, Fair Value Disclosure | $ 22,586 | $ 32,038 |
Contractual maturities of cash,
Contractual maturities of cash, cash equivalent and short-term investment (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Cash and cash equivalents (1) | $ 43,084 | $ 35,033 |
Short-term investments | 28,250 | 39,033 |
Cash, cash equivalents and short-term investments | 71,334 | 74,066 |
Maturity up to one year | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cash and cash equivalents (1) | 43,084 | 35,033 |
Short-term investments | 28,250 | 39,033 |
Cash, cash equivalents and short-term investments | $ 71,334 | $ 74,066 |
Schedule of the computation of
Schedule of the computation of basic and diluted net income (loss) per share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Numerator: | ||
Net loss | $ (6,640) | $ (3,584) |
Denominator: | ||
Weighted Average Number of Shares Outstanding, Basic and Diluted | 27,751 | 26,379 |
Net loss per share | ||
Earnings Per Share, Basic and Diluted | $ (0.24) | $ (0.14) |
Schedule of antidilutive securi
Schedule of antidilutive securities excluded from computation of earnings per share (Details) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Options to purchase common stock, including ESPP | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 2,193 | 3,125 |
Restricted stock units | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 2,147 | 1,371 |
Schedule of Finite-Lived Intang
Schedule of Finite-Lived Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Dec. 31, 2016 | |
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangibles, AmortExp, 2021 | $ 1,050 | |
Finite-Lived Intangibles, AmortExp Remainder 2016 | 3,411 | |
Accumulated Amortization | 6,872 | $ 5,740 |
Finite-Lived Intangible Assets, Net | 17,068 | |
Finite-Lived Intangible Assets, Useful Life | ||
Intangible assets, gross | 23,940 | 23,940 |
Intangible assets, net book value | 17,068 | 18,200 |
Developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 10,050 | 10,050 |
Accumulated Amortization | 3,459 | 2,845 |
Finite-Lived Intangible Assets, Net | 6,591 | 7,205 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 10,920 | 10,920 |
Accumulated Amortization | 2,577 | 2,280 |
Finite-Lived Intangible Assets, Net | 8,343 | 8,640 |
Order or Production Backlog [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 1,400 | |
Noncompete Agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 460 | 460 |
Accumulated Amortization | 406 | 389 |
Finite-Lived Intangible Assets, Net | 54 | 71 |
Trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 1,110 | 1,110 |
Accumulated Amortization | 236 | 148 |
Finite-Lived Intangible Assets, Net | $ 874 | $ 962 |
Minimum | Developed technology | ||
Finite-Lived Intangible Assets, Useful Life | ||
Finite-lived intangible asset, useful life | 3 years | |
Minimum | Customer relationships | ||
Finite-Lived Intangible Assets, Useful Life | ||
Finite-lived intangible asset, useful life | 7 years | |
Minimum | Order or Production Backlog [Member] | ||
Finite-Lived Intangible Assets, Useful Life | ||
Finite-lived intangible asset, useful life | 3 years | |
Minimum | Noncompete Agreements | ||
Finite-Lived Intangible Assets, Useful Life | ||
Finite-lived intangible asset, useful life | 2 years | |
Minimum | Trademarks | ||
Finite-Lived Intangible Assets, Useful Life | ||
Finite-lived intangible asset, useful life | 3 years | |
Maximum | Developed technology | ||
Finite-Lived Intangible Assets, Useful Life | ||
Finite-lived intangible asset, useful life | 7 years | |
Maximum | Customer relationships | ||
Finite-Lived Intangible Assets, Useful Life | ||
Finite-lived intangible asset, useful life | 9 years | |
Maximum | Order or Production Backlog [Member] | ||
Finite-Lived Intangible Assets, Useful Life | ||
Finite-lived intangible asset, useful life | 3 years | |
Maximum | Noncompete Agreements | ||
Finite-Lived Intangible Assets, Useful Life | ||
Finite-lived intangible asset, useful life | 4 years | |
Maximum | Trademarks | ||
Finite-Lived Intangible Assets, Useful Life | ||
Finite-lived intangible asset, useful life | 7 years |
Future amortization schedule (D
Future amortization schedule (Details) $ in Thousands | Mar. 31, 2017USD ($) |
Goodwill and intangible assets [Abstract] | |
Finite-Lived Intangibles, AmortExp Remainder 2016 | $ 3,411 |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | 4,424 |
Finite-Lived Intangibles, AmortExp, 2018 | 3,880 |
Finite-Lived Intangibles, AmortExp, 2019 | 1,251 |
Finite-Lived Intangibles, AmortExp, 2020 | 1,127 |
Finite-Lived Intangibles, AmortExp, 2021 | 1,050 |
Finite-Lived Intangibles, AmortExp, after 2021 | 1,925 |
Finite-Lived Intangible Assets, Net | $ 17,068 |
Goodwill and Intangible Asset35
Goodwill and Intangible Assets Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Finite-Lived Intangible Assets [Line Items] | |||
Goodwill | $ 49,246 | $ 49,246 | |
Intangibles - period amortization expense [Abstract] | |||
Amortization expense | 1,100 | $ 200 | |
Product Segment [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Goodwill | 41,200 | ||
Service Segment [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Goodwill | $ 8,000 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Inventory, Net [Abstract] | ||
Raw materials | $ 84 | $ 103 |
Finished goods | 3,660 | 4,453 |
Total inventories | $ 3,744 | $ 4,556 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | $ 18,246 | $ 17,934 | |
Less: Accumulated depreciation | (12,395) | (12,040) | |
Property and equipment, net | 5,851 | 5,894 | |
Depreciation, Depletion and Amortization [Abstract] | |||
Depreciation | 700 | $ 500 | |
Computer equipment and software | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 9,107 | 8,971 | |
Furniture, fixtures and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 1,797 | 1,726 | |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 4,260 | 4,144 | |
Manufacturing tools and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 3,070 | 3,019 | |
Construction in process | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | $ 12 | $ 74 |
Investment in Sales Type Leases
Investment in Sales Type Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Dec. 31, 2016 | |
Capital Leased Assets [Line Items] | ||
Net Investment in Sales Type Leases, Future Minimum Payments-Gross | $ 3,214 | $ 3,566 |
Net Investment in Sales Type Leases, Deferred Income | (1,635) | (1,704) |
Net Investment in Sales Type Leases | 1,579 | 1,862 |
Net Investment in Sales Type Leases, Current | (946) | (1,066) |
Net Investment in Sales Type Leases, Noncurrent | $ 633 | $ 796 |
Minimum | ||
Capital Leased Assets [Line Items] | ||
Lessors, Capital Leases, Term of contract | 9 months | |
Maximum | ||
Capital Leased Assets [Line Items] | ||
Lessors, Capital Leases, Term of contract | 4 years |
Future payments- sales type lea
Future payments- sales type leases (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Balance Sheet Components [Abstract] | ||
Sales-type Leases, Future Minimum Payments, Remainder of 2016 | $ 1,159 | |
Capital Leases, Future Minimum Payments Due in 2017 | 1,257 | |
Capital Leases, Future Minimum Payments Due in Two Years | 572 | |
Sales-type Leases, Future Minimum Payments Due in 2018 | 226 | |
Capital Leases, Future Minimum Payments Due in 2019 | 0 | |
Net Investment in Sales Type Leases, Future Minimum Payments-Gross | $ 3,214 | $ 3,566 |
Accrued Liabilities (Details)
Accrued Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Accrued Liabilities, Current [Abstract] | ||
Payroll and related expenses | $ 8,275 | $ 10,385 |
Accrued payables | 1,530 | 2,334 |
Deferred Rent Credit, Current | 237 | 229 |
Lease financing, current portion | 799 | 801 |
Product warranty | 499 | 596 |
Customer Refund Liability, Current | 683 | 769 |
Sales and use tax payable | 335 | 451 |
Other | 399 | 331 |
Total accrued payroll and other current liabilities | $ 12,757 | $ 15,896 |
Schedule of Product Liability (
Schedule of Product Liability (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward] | ||
Product warranty accrual, at the beginning of the period | $ 596 | $ 806 |
Warranty expenses accrued | 138 | 172 |
Product Warranty Accrual, Preexisting, Increase (Decrease) | (152) | (201) |
Warranty settlements made | (83) | (157) |
Product warranty accrual, at the end of period | 499 | 584 |
Product Warranty Accrual | 499 | 620 |
Product Warranty Accrual, Noncurrent | $ 0 | $ (36) |
Schedule of Future Minimum Rent
Schedule of Future Minimum Rental Payments for Operating Leases (Details) $ in Thousands | Mar. 31, 2017USD ($) |
Operating Leases, Future Minimum Payments Due, by FY | |
Remainder of 2016 | $ 1,704 |
Operating Leases, Future Minimum Payments, 2017 | 2,205 |
Operating Leases, Future Minimum Payments, 2018 | 2,030 |
Operating Leases, Future Minimum Payments, 2019 | 1,687 |
Operating Leases, Future Minimum Payments, 2020 | 1,595 |
Operating Leases, Future Minimum Payments, 2021 | 402 |
Total minimum lease payments | $ 9,623 |
Commitments Narrative (Details)
Commitments Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |||
Operating Leases, Rent Expense, Net | $ 0.6 | $ 0.6 | |
Inventories | |||
Unrecorded Unconditional Purchase Obligation [Line Items] | |||
Unrecorded Unconditional Purchase Obligation | $ 5.7 | $ 5.4 |
Stock Option Activity (Details)
Stock Option Activity (Details) - Stock Options - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Number of Options (in shares): | ||
Beginning balance | 2,436,845 | |
Options granted | 0 | |
Options exercised | (292,468) | |
Options canceled | (3,447) | |
Ending balance | 2,140,930 | 2,436,845 |
Weighted Average Exercise Price (in dollars per share): | ||
Beginning balance | $ 10.71 | |
Options granted | ||
Options exercised | 6.54 | |
Options canceled | 9.15 | |
Ending balance | $ 11.29 | $ 10.71 |
Wtd avg remaining term, Outstanding | 5 years | 5 years 1 month 2 days |
Aggregate intrinsic value, Outstanding | $ 29,098 | $ 20,643 |
Summary of Equity B-S-M Assumpt
Summary of Equity B-S-M Assumptiuons (Details) | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Equity Option | ||
Equity B-S-M Fair Value Assumptions | ||
Expected Term (in years) | ||
Equity Option | Minimum | ||
Equity B-S-M Fair Value Assumptions | ||
Expected Term (in years) | ||
Volatility | 41.30% | |
Interest Rate | 1.62% | |
Equity Option | Maximum | ||
Equity B-S-M Fair Value Assumptions | ||
Expected Term (in years) | ||
Volatility | 41.80% | |
Interest Rate | 1.63% | |
2012 Employee Stock Purchase Plan | ESPP | ||
Equity B-S-M Fair Value Assumptions | ||
Expected Term (in years) | 6 months | 6 months |
Volatility | 32.00% | 41.50% |
Interest Rate | 0.61% | 0.33% |
Dividend yield | 0.00% | 0.00% |
2012 Employee Stock Purchase Plan | ESPP | Minimum | ||
Equity B-S-M Fair Value Assumptions | ||
Expected Term (in years) | ||
Volatility | 38.00% | 33.60% |
Interest Rate | 0.33% | 0.07% |
2012 Employee Stock Purchase Plan | ESPP | Maximum | ||
Equity B-S-M Fair Value Assumptions | ||
Expected Term (in years) | ||
Volatility | 41.50% | 57.80% |
Interest Rate | 0.38% | 0.09% |
Summary of Restricted Stock Act
Summary of Restricted Stock Activity (Details) - Restricted Stock Units | 3 Months Ended |
Mar. 31, 2017$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock Comp-other than options - Period for Recognition- Comp cost not yet rocognized | 1 year 10 months 10 days |
Number of Shares: | |
Beginning balance | shares | 2,128,735 |
Granted | shares | 111,850 |
Vested | shares | (75,373) |
Forfeited | shares | (18,412) |
Ending balance | shares | 2,146,800 |
Weighted Average Grant Date Fair Value per Share (in dollars per share): | |
Beginning balance | $ / shares | $ 13.17 |
Granted | $ / shares | 20.41 |
Vested | $ / shares | 13.71 |
Forfeited | $ / shares | 15.60 |
Ending balance | $ / shares | $ 13.50 |
Share-based Compensaton Allocat
Share-based Compensaton Allocated to Expense Captions (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | $ 3,583 | $ 2,546 |
Cost of Sales | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | 520 | 269 |
Research and Development Expense | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | 412 | 226 |
Selling and Marketing Expense | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | 1,265 | 1,010 |
General and Administrative Expense | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | $ 1,386 | $ 1,041 |
Narrative (Details)
Narrative (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2017USD ($)shares | |
Stock Options | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |
Unamortized Compensation Cost, Stock Options | $ | $ 1.5 |
Uamortized Compensation Cost Not yet Recognized, Period Remaining, Options | 1 year 3 months 4 days |
Restricted stock units | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | $ | $ 20.6 |
Stock Comp-other than options - Period for Recognition- Comp cost not yet rocognized | 1 year 10 months 10 days |
2012 Stock Option Plan | Stock options and restricted stock units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Shares Available for Grant | shares | 1,771,674 |
2012 Employee Stock Purchase Plan | ESPP | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Shares Available for Grant | shares | 744,140 |
Segments Operating Segments (De
Segments Operating Segments (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017USD ($)Segments | Mar. 31, 2016USD ($) | |
Segment Reporting [Abstract] | ||
Number of reportable segments | Segments | 2 | |
Revenue | ||
Product | $ 20,033 | $ 13,802 |
Service | 16,262 | 12,975 |
Total revenue | 36,295 | 26,777 |
Cost of revenue | ||
Product | 6,409 | 4,449 |
Service | 9,155 | 5,650 |
Cost of Goods and Services Sold | 15,564 | 10,099 |
Gross profit | ||
Product | 13,624 | 9,353 |
Service | 7,107 | 7,325 |
Total gross profit | 20,731 | 16,678 |
Calculation of pretax profit (loss) [Abstract] | ||
Operating expenses | 27,205 | 20,334 |
Interest income, net and other | 214 | 164 |
Loss before income taxes | $ (6,260) | $ (3,492) |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | ||
Income Tax Expense (Benefit) | $ 380 | $ 92 |
Business Acquisition - PPA (Det
Business Acquisition - PPA (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | ||
Goodwill | $ 49,246 | $ 49,246 |
Business Acquisition Narrative
Business Acquisition Narrative (Details) - USD ($) $ in Thousands | Oct. 27, 2016 | Mar. 31, 2017 | Dec. 31, 2016 |
Business Acquisition [Line Items] | |||
Goodwill | $ 49,246 | $ 49,246 | |
Payments to acquire businesses | $ 52,500 | ||
Noncompete Agreements | Minimum | |||
Business Acquisition [Line Items] | |||
Finite-lived intangible asset, useful life | 2 years | ||
Noncompete Agreements | Maximum | |||
Business Acquisition [Line Items] | |||
Finite-lived intangible asset, useful life | 4 years | ||
Product Segment [Member] | |||
Business Acquisition [Line Items] | |||
Goodwill | $ 41,200 | ||
Service Segment [Member] | |||
Business Acquisition [Line Items] | |||
Goodwill | $ 8,000 |
Subsequent Event Extension Heal
Subsequent Event Extension Healthcare Acquisition (Details) $ in Millions | Oct. 27, 2016USD ($) |
Subsequent Event [Line Items] | |
Payments to acquire businesses | $ 52.5 |