Vocera Communications (VCRA) 10-Q 5 Aug 20 2020 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2020	Aug. 04, 2020
Entity Listings [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2020
Document Transition Report	false
Entity File Number	001-35469
Entity Registrant Name	VOCERA COMMUNICATIONS, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	94-3354663
Entity Address, Address Line One	525 Race Street
Entity Address, City or Town	San Jose
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	95126
City Area Code	408
Local Phone Number	882-5100
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		32,378,449
Entity Central Index Key	0001129260
Amendment Flag	false
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q2
Current Fiscal Year End Date	--12-31
New York Stock Exchange
Entity Listings [Line Items]
Title of 12(b) Security	Common Stock, $0.0003 par value
Trading Symbol	VCRA
Security Exchange Name	NYSE

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2020	Dec. 31, 2019
Sales of short-term investments	$ 14,393
Current assets
Cash and cash equivalents	29,386	$ 25,704
Short-term investments	204,476	204,164
Accounts receivable, net of allowance	28,255	42,547
Other receivables	6,645	6,312
Inventories	8,556	4,576
Prepaid expenses and other current assets	5,607	5,149
Total current assets	282,925	288,452
Property and equipment, net	7,669	8,661
Intangible assets, net	4,834	5,461
Goodwill	49,246	49,246
Deferred commissions	11,118	10,477
Other long-term assets	7,246	8,158
Total assets	363,038	370,455
Current liabilities
Accounts payable	4,765	6,036
Accrued payroll and other current liabilities	17,079	14,757
Deferred revenue, current	43,841	50,033
Total current liabilities	65,685	70,826
Deferred revenue, long-term	10,173	11,442
Convertible senior notes, net	120,682	117,178
Other long-term liabilities	3,530
Other long-term liabilities	5,843	7,184
Total liabilities	202,383	206,630
Commitments and contingencies (Note 9)
Stockholders' equity
Preferred stock, $0.0003 par value - 5,000,000 shares authorized as of June 30, 2020 and December 31, 2019; zero shares issued and outstanding	0	0
Common stock, $0.0003 par value - 100,000,000 shares authorized as of June 30, 2020 and December 31, 2019; 32,347,972 and 31,660,709 shares issued and outstanding as of June 30, 2020 and December 31, 2019, respectively	9	9
Additional paid-in capital	323,881	313,963
Accumulated other comprehensive income	1,029	179
Accumulated deficit	(164,264)	(150,326)
Total stockholders’ equity	160,655	163,825
Total liabilities and stockholders’ equity	$ 363,038	$ 370,455

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets Condensed Consolidated Balance Sheets (Paranthetical) - $ / shares	Jun. 30, 2020	Dec. 31, 2019
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	32,347,972	31,660,709
Common stock shares outstanding	32,347,972	31,660,709
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		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Revenue
Total revenue	$ 47,347	$ 44,759	$ 88,020	$ 80,068
Cost of revenue
Total cost of revenue	17,404	17,743	34,291	33,367
Gross profit	29,943	27,016	53,729	46,701
Operating expenses
Research and development	9,349	8,943	18,381	17,089
Sales and marketing	15,998	15,478	32,961	31,497
General and administrative	6,923	6,535	13,314	13,115
Total operating expenses	32,270	30,956	64,656	61,701
Loss from operations	(2,327)	(3,940)	(10,927)	(15,000)
Interest income	913	1,332	2,033	2,611
Interest expense	(2,308)	(2,170)	(4,582)	(4,291)
Other income (expense), net	210	(159)	(381)	(28)
Loss before income taxes	(3,512)	(4,937)	(13,857)	(16,708)
Benefit from (provision for) income taxes	44	80	(81)	116
Net loss	(3,468)	$ (4,857)	$ (13,938)	$ (16,592)
Weighted average shares used to compute net loss per share
Basic and Diluted		31,242	31,945	31,022
Product
Revenue
Total revenue	23,951	$ 23,132	$ 41,801	$ 37,135
Cost of revenue
Total cost of revenue	7,710	6,912	14,074	12,246
Service
Revenue
Total revenue	23,396	21,627	46,219	42,933
Cost of revenue
Total cost of revenue	$ 9,694	$ 10,831	$ 20,217	$ 21,121

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Statement of Comprehensive Income [Abstract]
Net loss	$ (3,468)	$ (4,857)	$ (13,938)	$ (16,592)
Other comprehensive loss, net:
Change in unrealized gain on investments, net of tax	1,806	294	850	719
Comprehensive loss	$ (1,662)	$ (4,563)	$ (13,088)	$ (15,873)

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Cash flows from operating activities
Net loss	$ (13,938)	$ (16,592)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	2,801	3,797
Change in lease-related performance liabilities	(623)	(572)
Stock-based compensation expense	12,207	11,653
Amortization of debt discount and issuance costs	3,504	3,219
Other	1,325	151
Changes in operating assets and liabilities:
Accounts receivable	14,293	10,425
Other receivables	(275)	(1,468)
Inventories	(3,866)	(834)
Prepaid expenses and other assets	(607)	(541)
Deferred commissions	(640)	385
Accounts payable	(1,035)	(841)
Increase (Decrease) in Other Accrued Liabilities	1,176	(2,674)
Deferred revenue	(7,461)	(6,027)
Net cash used in operating activities	6,861	81
Cash flows from investing activities
Purchase of property and equipment	(1,427)	(1,778)
Purchase of short-term investments	(86,300)	(43,384)
Maturities of short-term investments	72,137	61,228
Sales of short-term investments	14,393	0
Net cash used in investing activities	(1,197)	16,066
Cash flows from financing activities
Cash from lease-related performance obligations	306	645
Payment for purchase of capped calls	(8,907)
Proceeds from issuance of common stock from the employee stock purchase plan	1,966	1,809
Proceeds from exercise of stock options	1,325	2,091
Tax withholdings paid on behalf of employees for net share settlement	(5,579)	(10,067)
Net cash provided by financing activities	(1,982)	(5,522)
Net increase in cash and cash equivalents	3,682	10,625
Cash and cash equivalents at beginning of period	25,704	34,276
Cash and cash equivalents at end of period	29,386
Supplemental disclosure of non-cash investing and financing activities:
Property and equipment in accounts payable and accrued liabilities	$ 222	$ 117

Condensed Consolidated Statem_4

Condensed Consolidated Statement of SHareholders Equity Statement - USD ($) $ in Thousands	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	AOCI Attributable to Parent [Member]	Retained Earnings [Member]	Restricted stock units and Performance stock units	Restricted stock units and Performance stock unitsCommon Stock [Member]	Restricted stock units and Performance stock unitsAdditional Paid-in Capital [Member]	Convertible Senior Notes At 1.50%, Option PortionConvertible Debt
Shares, Outstanding		30,708,138
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	$ 162,867	$ 9	$ 295,647	$ (443)	$ (132,346)
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period		122,376
Stock Issued During Period, Value, Stock Options Exercised	1,564		1,564
Restricted Stock, Shares Issued Net of Shares for Tax Withholdings							60,603
Adjustments to Additional Paid in Capital, Other	(1,271)							$ (1,271)
APIC, Share-based Payment Arrangement, Increase for Cost Recognition	5,544		5,544
Net loss	(11,735)				(11,735)
Change in unrealized gain on investments, net of tax	$ 425			425
Stock Issued During Period, Shares, Employee Stock Purchase Plans	61,691
Net loss	$ (16,592)
Change in unrealized gain on investments, net of tax	719
Shares, Outstanding		30,891,117
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	157,394	$ 9	301,484	(18)	(144,081)
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period		37,239
Stock Issued During Period, Value, Stock Options Exercised	527		527
Restricted Stock, Shares Issued Net of Shares for Tax Withholdings							434,838
Adjustments to Additional Paid in Capital, Other	$ (8,796)							(8,796)
Stock Issued During Period, Shares, Employee Stock Purchase Plans	61,691
Stock Issued During Period, Value, Employee Stock Purchase Plan	$ 1,809
APIC, Share-based Payment Arrangement, Increase for Cost Recognition	6,109		6,109
Net loss	(4,857)
Change in unrealized gain on investments, net of tax	294			294
Shares, Outstanding		31,424,885
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	152,480	$ 9	301,133	276	(148,938)
Shares, Outstanding		31,660,709
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	163,825	$ 9	313,963	179	(150,326)
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period		77,909
Stock Issued During Period, Value, Stock Options Exercised	731		731
Restricted Stock, Shares Issued Net of Shares for Tax Withholdings							64,161
Adjustments to Additional Paid in Capital, Other	(864)							(864)
APIC, Share-based Payment Arrangement, Increase for Cost Recognition	5,841		5,841
Net loss	(10,470)				(10,470)
Change in unrealized gain on investments, net of tax	$ (956)			(956)
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period						705,835
Stock Issued During Period, Shares, Employee Stock Purchase Plans	126,046
Net loss	$ (13,938)
Change in unrealized gain on investments, net of tax	850
Shares, Outstanding		31,802,779
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	158,107	$ 9	319,671	(777)	(160,796)
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period		46,508
Stock Issued During Period, Value, Stock Options Exercised	594		594
Restricted Stock, Shares Issued Net of Shares for Tax Withholdings							372,639
Adjustments to Additional Paid in Capital, Other	$ (4,716)							$ (4,716)
Stock Issued During Period, Shares, Employee Stock Purchase Plans	126,046
Stock Issued During Period, Value, Employee Stock Purchase Plan	$ 1,966
APIC, Share-based Payment Arrangement, Increase for Cost Recognition	6,366		6,366
Net loss	(3,468)				(3,468)
Change in unrealized gain on investments, net of tax	1,806			1,806
Shares, Outstanding		32,347,972
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	$ 160,655	$ 9	$ 323,881	$ 1,029	$ (164,264)
Carrying amount of equity component, net of capped calls									$ 23,307

The Company and Summary of Sign

The Company and Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2020
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 (collectively the “Company” or “Vocera”) is a provider of secure, integrated, intelligent communication and clinical workflow solutions, focused on empowering mobile workers in healthcare, hospitality, retail, energy, education 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, safety, patient and staff experience and increase operational efficiency. The Vocera communication and collaboration solution includes: an intelligent enterprise software platform; a lightweight, wearable, voice-controlled communication badge and recently introduced Smartbadge; and smartphone applications. The solution enables users to connect instantly with other staff simply by saying the name, function or group name of the desired recipient. It also delivers HIPAA-compliant secure text messages, alerts and alarms directly to the Vocera Badge, Vocera Smartbadge, smartphones and other mobile communication devices both inside and outside the hospital, replacing legacy pagers and in-building wireless phones. 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”), 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, 2019 . The year-end condensed consolidated 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, 2020 or for any other interim period or any other future year. Except for the change in certain accounting policies upon adoption of the accounting standards described below, there have been no material changes to the Company’s significant accounting policies compared to the accounting policies 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, 2019 . 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, accounts receivable reserves, inventory reserves, bonuses, 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. Recently Adopted Accounting Pronouncements 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 new guidance was effective for the Company beginning January 1, 2020. The Company applied the guidance using a modified retrospective approach requiring that the Company recognize the cumulative effect of initially applying the impairment standard as an adjustment to opening accumulated deficit in the period of initial application. There was no adjustment to the Company’s opening accumulated deficit in the period as there were no incremental impairment losses as a result of the adoption. 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 was effective for the Company beginning January 1, 2020. The adoption of this guidance did not have an impact on the Company’s condensed consolidated financial statements. In December 2019, the FASB issued new guidance simplifying the accounting for income taxes, which removes certain exceptions for intra period allocations, recognizing deferred taxes for investments and calculating income taxes in interim periods. This guidance also reduces complexity in certain areas, including recognizing deferred taxes for tax goodwill and allocating taxes to members of a consolidated group. The new standard is effective for the Company for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020, with early adoption permitted. In the second quarter of fiscal year 2020, the Company early adopted the guidance on a prospective basis. The adoption did not have a material impact on the Company's condensed consolidated financial statements.

Revenue, deferred revenue, and

Revenue, deferred revenue, and deferred commissions	6 Months Ended
	Jun. 30, 2020
Revenue from Contract with Customer [Abstract]
Revenue, deferred revenue, and deferred commissions	Revenue, deferred revenue and deferred commissions Disaggregation of Revenue A typical sales arrangement involves multiple arrangements, such as the sales of the Company’s proprietary communication device (“Vocera Badge”), perpetual software licenses, professional services and maintenance and support services which entitle customers to unspecified upgrades, patch releases and telephone-based support. The following table depicts the disaggregation of revenue according to revenue type and is consistent with how the Company evaluates its financial performance: Three months ended June 30, Six months ended June 30, (in thousands) 2020 2019 2020 2019 Product revenue Device $ 17,100 $ 14,504 $ 31,003 $ 24,564 Software 6,851 8,628 10,798 12,571 Total product 23,951 23,132 41,801 37,135 Service revenue Maintenance and support 18,994 16,928 37,063 33,321 Professional services and training 4,402 4,699 9,156 9,612 Total service 23,396 21,627 46,219 42,933 Total revenue $ 47,347 $ 44,759 $ 88,020 $ 80,068 Contract balances The timing of revenue recognition may differ from the timing of invoicing to customers. Accounts receivable are recorded at the invoiced amount and in the period the Company delivers goods or provides services or when the Company’s right to consideration is unconditional. Payment terms on invoiced amounts are typically 30 days. The balance of accounts receivable, net of allowance for doubtful accounts, as of June 30, 2020 and December 31, 2019 is presented in the accompanying condensed consolidated balance sheets. In situations where revenue recognition occurs before invoicing, an unbilled receivable is created, which represents a contract asset. As of June 30, 2020 and December 31, 2019 , contract assets totaling $4.7 million and $4.3 million , respectively, were included in other receivables in the condensed consolidated balance sheets. Costs to obtain and fulfill a contract The Company capitalizes certain incremental contract acquisition costs consisting primarily of commissions paid and the related payroll taxes when customer contracts are signed. The Company determines whether costs should be deferred based on its sales compensation plans, if the commissions are incremental and would not have been incurred absent the execution of the customer contract. Sales commissions for renewals of customer contracts are not commensurate with the commissions paid for the acquisition of the initial contract given the substantive difference in commission rates in proportion to their respective contract values. Commissions paid upon the initial acquisition of a contract are amortized over the estimated period of benefit, which may exceed the term of the initial contract. Accordingly, amortization of deferred costs is recognized on a systematic basis that is consistent with the pattern of revenue recognition allocated to each performance obligation and is included in sales and marketing expense in the condensed consolidated statements of operations. The Company determines its estimated period of benefit by evaluating the expected renewals of its customer contracts, the duration of its relationships with its customers and other factors. Deferred costs are periodically reviewed for impairment. Changes in the balance of total deferred commissions (contract asset) during the three and six months ended June 30, 2020 are as follows: (in thousands) March 31, 2020 Additions Commissions Recognized June 30, 2020 Deferred commissions $ 10,307 $ 3,163 $ (2,352 ) $ 11,118 (in thousands) December 31, 2019 Additions Commissions Recognized June 30, 2020 Deferred commissions $ 10,477 $ 5,116 $ (4,475 ) $ 11,118 Of the $11.1 million total deferred commissions balance as of June 30, 2020 , the Company expects to recognize approximately 49% as commission expense over the next 12 months and the remainder thereafter. Deferred revenue The Company records deferred revenue when cash payments are received in advance of the performance under the contract. The current portion of deferred revenue represents the amounts that are expected to be recognized as revenue within one year of the condensed consolidated balance sheet date. Changes in the balance of total deferred revenue (contract liability) during the three and six months ended June 30, 2020 are as follows: (in thousands) March 31, 2020 Additions Revenue Recognized June 30, 2020 Deferred revenue $ 56,676 $ 17,385 $ (20,047 ) $ 54,014 (in thousands) December 31, 2019 Additions Revenue Recognized June 30, 2020 Deferred revenue $ 61,475 $ 32,330 $ (39,791 ) $ 54,014 Revenue recognized during the three and six months ended June 30, 2020 from deferred revenue balances at the beginning of the period was $19.5 million and $34.2 million , respectively. Revenue recognized during the three and six months ended June 30, 2019 from deferred revenue balances at the beginning of the period was $17.0 million and $29.4 million . The “contracted but not recognized” performance obligations represent the Company’s deferred revenue and non-cancelable backlog amounts. This balance as of June 30, 2020 was $115.9 million , of which the Company expects to recognize approximately 66% as revenue over the next 12 months and the remainder thereafter.

Fair Value of Financial Instrum

Fair Value of Financial Instruments	6 Months Ended
	Jun. 30, 2020
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. During the six months ended June 30, 2020 , 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 is 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. In addition to its cash, cash equivalents and short-term investments, the Company measures the fair value of its Convertible Senior Notes on a quarterly basis for disclosure purposes. The Company considers the fair value of the Convertible Senior Notes at June 30, 2020 to be a Level 2 measurement due to limited trading activity of the Convertible Senior Notes. Refer to Note 8 to the condensed consolidated financial statements for further information. The Company’s assets that are measured at fair value on a recurring basis, by level, within the fair value hierarchy as of June 30, 2020 and December 31, 2019 , are summarized as follows (in thousands): June 30, 2020 December 31, 2019 Level 1 Level 2 Total Level 1 Level 2 Total Assets Money market funds $ 6,682 $ — $ 6,682 $ 4,086 $ — $ 4,086 Commercial paper — 15,987 15,987 — 12,854 12,854 U.S. government agency securities — — — — 3,000 3,000 Corporate debt securities — 188,489 188,489 — 188,310 188,310 Total assets measured at fair value $ 6,682 $ 204,476 $ 211,158 $ 4,086 $ 204,164 $ 208,250

Cash, Cash Equivalents and Shor

Cash, Cash Equivalents and Short-term Investments	6 Months Ended
	Jun. 30, 2020
Cash and Cash Equivalents [Abstract]
Cash, Cash Equivalents, and Short-term Investments	Cash, Cash Equivalents and Short-Term Investments The following tables present cash, cash equivalents and short-term investments (in thousands) as of June 30, 2020 and December 31, 2019 : As of June 30, 2020 Amortized Cost Unrealized Gains Unrealized Losses Fair value Cash and cash equivalents: Demand deposits and other cash $ 22,704 $ — $ — $ 22,704 Money market funds 6,682 — — 6,682 Total cash and cash equivalents 29,386 — — 29,386 Short-Term Investments: Commercial paper 15,954 35 (2 ) 15,987 Corporate debt securities 187,234 1,288 (33 ) 188,489 Total short-term investments 203,188 1,323 (35 ) 204,476 Total cash, cash equivalents and short-term investments $ 232,574 $ 1,323 $ (35 ) $ 233,862 As of December 31, 2019 Amortized Cost Unrealized Gains Unrealized Losses Fair value Cash and cash equivalents: Demand deposits and other cash $ 21,618 $ — $ — $ 21,618 Money market funds 4,086 — — 4,086 Total cash and cash equivalents 25,704 — — 25,704 Short-Term Investments: Commercial paper 12,861 — (7 ) 12,854 U.S. government agency securities 3,000 — — 3,000 Corporate debt securities 187,866 499 (55 ) 188,310 Total short-term investments 203,727 499 (62 ) 204,164 Total cash, cash equivalents and short-term investments $ 229,431 $ 499 $ (62 ) $ 229,868 The Company has determined that the unrealized losses on its short-term investments as of June 30, 2020 and December 31, 2019 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 equivalents and short-term investments by contractual maturity was as follows: (in thousands) One year or shorter Between 1 and 2 years Total Balances as of June 30, 2020 Cash and cash equivalents (1) $ 29,386 $ — $ 29,386 Short-term investments 121,605 82,871 204,476 Cash, cash equivalents and short-term investments $ 150,991 $ 82,871 $ 233,862 Balances as of December 31, 2019 Cash and cash equivalents (1) $ 25,704 $ — $ 25,704 Short-term investments 113,010 91,154 204,164 Cash, cash equivalents and short-term investments $ 138,714 $ 91,154 $ 229,868 (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	6 Months Ended
	Jun. 30, 2020
Earnings Per Share [Abstract]
Net Loss Per Share	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 June 30, Six months ended June 30, 2020 2019 2020 2019 Numerator: Net loss $ (3,468 ) $ (4,857 ) $ (13,938 ) $ (16,592 ) Denominator: Weighted average shares used to compute net loss per common share - basic 32,152 31,242 31,945 31,022 Weighted-average shares used to compute net loss per common share - diluted 32,152 31,242 31,945 31,022 Net loss per share Basic $ (0.11 ) $ (0.16 ) $ (0.44 ) $ (0.53 ) Diluted $ (0.11 ) $ (0.16 ) $ (0.44 ) $ (0.53 ) The following securities were not included in the calculation of diluted shares outstanding as the effect would have been anti-dilutive: Three months ended June 30, Six months ended June 30, (in thousands) 2020 2019 2020 2019 Options to purchase common stock, including ESPP 517 656 568 690 Restricted stock units and Performance stock units 2,125 1,671 1,880 1,760

Goodwill and Intangible Assets

Goodwill and Intangible Assets	6 Months Ended
	Jun. 30, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Intangible Assets	Goodwill and Intangible Assets Goodwill As of June 30, 2020 and December 31, 2019 , 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 June 30, 2020 , 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: June 30, 2020 December 31, 2019 (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 $ 9,893 $ 157 $ 10,050 $ 9,803 $ 247 Customer relationships 7 to 9 10,920 6,356 4,564 10,920 5,819 5,101 Backlog 3 1,400 1,287 113 1,400 1,287 113 Non-compete agreements 2 to 4 460 460 — 460 460 — Trademarks 3 to 7 1,110 1,110 — 1,110 1,110 — Intangible assets, net book value $ 23,940 $ 19,106 $ 4,834 $ 23,940 $ 18,479 $ 5,461 Amortization expense was $0.3 million and $1.0 million for the three months ended June 30, 2020 and 2019 , respectively. Amortization expense was $0.6 million and $2.0 million for the six months ended June 30, 2020 and 2019, 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 June 30, 2020 was as follows: (in thousands) Future amortization 2020 (remaining six months) $ 729 2021 1,130 2022 1,050 2023 1,050 2024 875 Future amortization expense $ 4,834

Balance Sheet Components

Balance Sheet Components	6 Months Ended
	Jun. 30, 2020
Balance Sheet Components [Abstract]
Balance Sheet Components	Balance Sheet Components Inventories (in thousands) June 30, December 31, Raw materials $ 637 $ 831 Finished goods 7,919 3,745 Total inventories $ 8,556 $ 4,576 Property and equipment, net (in thousands) June 30, December 31, Computer equipment and software $ 14,224 $ 13,596 Furniture, fixtures and equipment 2,583 2,430 Leasehold improvements 5,286 5,283 Manufacturing tools and equipment 2,409 2,435 Construction in process 320 582 Property and equipment, at cost 24,822 24,326 Less: Accumulated depreciation (17,153 ) (15,665 ) Property and equipment, net $ 7,669 $ 8,661 Depreciation and amortization expense for property and equipment was $1.2 million and $0.9 million for the three months ended June 30, 2020 and 2019 , respectively. Depreciation and amortization expense for property and equipment was $2.2 million and $1.8 million for the six months ended June 30, 2020 and 2019 , respectively. Net investment in sales-type leases The Company has sales-type leases with terms of 3 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) June 30, December 31, Minimum payments to be received on sales-type leases $ 1,687 $ 2,078 Less: Unearned interest income and executory revenue portion (860 ) (1,190 ) Net investment in sales-type leases 827 888 Less: Current portion (435 ) (452 ) Non-current net investment in sales-type leases $ 392 $ 436 Sales-type lease activity recognized in the condensed consolidated statement of operations are as follows: Three months ended June 30, Six months ended June 30, (in thousands) 2020 2019 2020 2019 Lease revenue $ 1,118 $ 2,703 $ 1,553 $ 3,364 Less: Cost of lease shipments (165 ) (805 ) (175 ) (857 ) Gross profit $ 953 $ 1,898 $ 1,378 $ 2,507 Interest income (expense), net on lease receivable $ (6 ) $ 3 $ (12 ) $ — Initial direct cost incurred $ 60 $ 109 $ 83 $ 140 There were no allowances for doubtful accounts on these leases as of June 30, 2020 and December 31, 2019 . 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 condensed 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 June 30, 2020 were as follows: (in thousands) Future lease payments 2020 (remaining six months) $ 433 2021 678 2022 450 2023 126 Total $ 1,687 Accrued payroll and other current liabilities (in thousands) June 30, December 31, Payroll and related expenses $ 8,214 $ 6,053 Accrued payables 2,368 2,674 Operating lease liabilities, current portion 2,389 2,323 Lease financing, current portion 905 1,033 Product warranty 521 420 Customer prepayments 1,147 631 Sales and use tax payable 334 599 Other 1,201 1,024 Total accrued payroll and other current liabilities $ 17,079 $ 14,757 The changes in the Company’s product warranty reserve are as follows: Three months ended June 30, Six months ended June 30, (in thousands) 2020 2019 2020 2019 Warranty balance at the beginning of the period $ 440 $ 374 $ 420 $ 376 Warranty expense accrued for shipments during the period 115 92 223 169 Changes in estimate related to pre-existing warranties 40 (55 ) 9 (86 ) Warranty settlements made (74 ) (56 ) (131 ) (104 ) Total product warranty $ 521 $ 355 $ 521 $ 355 Leases The Company has operating leases for office space at its headquarters and subsidiaries under non-cancelable operating leases. Leases with an initial term of 12 months or less are not recorded on the balance sheet; lease expense for these leases is recognized on a straight-line basis over the lease term. The Company’s leases have remaining lease terms of approximately ten months to approximately five years . Operating lease cost, including short-term operating leases was $0.7 million and $0.5 million for the three months ended June 30, 2020 and 2019, respectively and $1.4 million and $1.1 million for the six months ended June 30, 2020 and 2019, respectively. Supplemental balance sheet information related to leases was as follows: (in thousands) June 30, Other long-term assets $ 5,191 Accrued payroll and other current liabilities 2,389 Other long-term liabilities 3,530 Total operating lease liabilities $ 5,919 Other information related to leases was as follows: Three months ended June 30, Six months ended June 30, (in thousands) 2020 2019 2020 2019 Supplemental Cash Flow Information Cash paid for amounts included in the measurement of lease liabilities $ 732 $ 634 $ 1,444 1,264 Right-of-use assets obtained in exchange for lease obligations $ 122 $ 329 $ 122 1,018 Weighted average remaining lease term 2.46 years 2.84 years 2.46 years 2.84 years Weighted average discount rate 8 % 8 % 8 % 8 % Maturities of lease liabilities as of June 30, 2020 are as follows: (in thousands) Operating leases 2020 (remaining six months) $ 1,389 2021 3,022 2022 1,380 2023 439 2024 325 Total maturities of lease liabilities 6,555 Less imputed interest (636 ) Total $ 5,919

Convertible Senior Notes

Convertible Senior Notes	6 Months Ended
	Jun. 30, 2020
Debt Disclosure [Abstract]
Convertible Senior Notes	Convertible Senior Notes In May 2018, the Company issued $143.75 million aggregate principal amount of 1.50% Convertible Senior Notes due 2023, including $18.75 million aggregate principal amount of such notes pursuant to the exercise in full of options granted to the initial purchasers, collectively the “Notes.” The Notes are unsecured, unsubordinated obligations and bear interest at a fixed rate of 1.50% per annum, payable semi-annually in arrears on May 15 and November 15 of each year, commencing on November 15, 2018. The total net proceeds from the offering, after deducting initial purchase discounts and estimated debt issuance costs, were approximately $138.9 million . Each $1,000 principal amount of the Notes will initially be convertible into 31.0073 shares of the Company’s common stock, the “Conversion Option,” which is equivalent to an initial conversion price of approximately $32.25 per share, subject to adjustment upon the occurrence of specified events. The Notes will be convertible at the option of the holders at any time prior to the close of business on the business day immediately preceding February 15, 2023, only under the following circumstances: (1) during any calendar quarter commencing after the calendar quarter ending on June 30, 2018 (and only during such calendar quarter), if the last reported sale price of the Company common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price of the Notes on each applicable trading day; (2) during the five business day period after any ten consecutive trading day period in which the trading price per $1,000 principal amount of the Notes for each day of that ten day consecutive trading day period was less than 98% of the product of the last reported sale price of the Company’s common stock and the conversion rate of the Notes on such trading day; or (3) upon the occurrence of specified corporate events (as set forth in the indenture governing the Notes). On or after February 15, 2023 until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert their Notes at any time, regardless of the foregoing circumstances. Upon conversion, the Company will pay or deliver, as the case may be, cash, shares of the Company’s common stock or a combination of cash and shares of the Company’s common stock, at the Company’s election. If certain specified fundamental changes occur (as set forth in the indenture governing the Notes) prior to the maturity date, holders of the Notes may require the Company to repurchase for cash all or any portion of their Notes at a repurchase price equal to 100% of the principal amount of the Notes to be repurchased, plus accrued and unpaid interest to, but excluding, the fundamental change repurchase date. In addition, if specific corporate events occur prior to the applicable maturity date, the Company will increase the conversion rate for a holder who elects to convert their notes in connection with such a corporate event in certain circumstances. It is the Company’s current intent and policy to settle conversions through combination settlement which involves repayment of the principal portion in cash and any excess of the conversion value over the principal amount in shares of its common stock. During the six months ended June 30, 2020 , the conditions allowing holders of the Notes to convert have not been met. The Notes are therefore not convertible during the six months ended June 30, 2020 and are classified as long-term debt. In accounting for the transaction, the Notes were separated into liability and equity components. The carrying amount of the liability component was calculated by measuring the fair value of a similar debt instrument that does not have an associated convertible feature. The carrying amount of the equity component representing the Conversion Option was $33.4 million and was determined by deducting the fair value of the liability component from the par value of the Notes. The equity component was recorded in additional paid-in capital and will be remeasured as long as it continues to meet the conditions for equity classification. The excess of the principal amount of the liability component over its carrying amount, the “debt discount,” is amortized to interest expense over the contractual term of the Notes at an effective interest rate of 7.6% . In accounting for the debt issuance costs of $4.9 million related to the Notes, the Company allocated the total amount incurred to the liability and equity components of the Notes based on their relative values. Issuance costs attributable to the liability component were $3.8 million and will be amortized to interest expense using the effective interest method over the contractual term of the Notes. Issuance costs attributable to the equity component were $1.1 million and are included with the equity component in additional paid-in capital. The Notes consist of the following: (in thousands) June 30, December 31, Liability: Principal $ 143,750 $ 143,750 Unamortized debt discount (20,731 ) (23,880 ) Unamortized issuance costs (2,337 ) (2,692 ) Net carrying amount $ 120,682 $ 117,178 Stockholders’ equity: Debt discount for conversion option $ 33,350 $ 33,350 Issuance costs (1,136 ) (1,136 ) Net carrying amount $ 32,214 $ 32,214 The total estimated fair value of the Notes as of June 30, 2020 was approximately $141.9 million . The fair value was determined based on the closing trading price per $100 of the Notes as of the last day of trading for the period. The fair value of the Notes is primarily affected by the trading price of the Company’s common stock and market interest rates. Based on the closing price of the Company’s common stock of $21.20 on June 30, 2020, the if-converted value of the Notes of $94.5 million was less than their principal amount. Interest expense related to the Notes is as follows: Three months ended June 30, Six months ended June 30, (in thousands) 2020 2019 2020 2019 Contractual interest expense $ 539 $ 539 $ 1,078 $ 1,078 Amortization of debt discount 1,590 1,471 3,149 2,893 Amortization of issuance costs 179 166 355 326 Total interest expense $ 2,308 $ 2,176 $ 4,582 $ 4,297 Capped Calls In connection with the pricing of the Notes, the Company entered into privately negotiated capped call transactions with certain counterparties, the “Capped Calls.” The Capped Calls each have an initial strike price of approximately $32.25 per share, subject to certain adjustments, which correspond to the initial conversion price of the Notes. The Capped Calls have initial cap prices of $38.94 per share, subject to certain adjustments. The Capped Calls cover, subject to anti-dilution adjustments, approximately 4.5 million shares of the Company’s common stock. Conditions that cause adjustments to the initial strike price of the Capped Calls mirror conditions that result in corresponding adjustments for the Notes. The Capped Calls are generally intended to reduce or offset the potential dilution to the Company’s common stock upon any conversion of the Notes with such reduction or offset, as the case may be, subject to a cap based on the cap price. For accounting purposes, the Capped Calls are separate transactions, and not part of the terms of the Notes. As these transactions meet certain accounting criteria, the Capped Calls are recorded in stockholders' equity and are not accounted for as derivatives. The cost of $8.9 million incurred in connection with the Capped Calls was recorded as a reduction to additional paid-in capital. The net impact to the Company’s stockholders' equity, included in additional paid-in capital, of the above components of the Notes is as follows: (in thousands) June 30, Conversion option $ 33,350 Purchase of capped calls (8,907 ) Issuance costs (1,136 ) Total $ 23,307 Impact on Earnings Per Share The Notes will not have an impact on the Company’s diluted earnings per share until they meet the criteria for conversion, as discussed above, as the Company intends to settle the principal amount of the Notes in cash upon conversion. Under the treasury stock method, in periods when the Company reports net income, the Company is required to include the effect of additional shares that may be issued under the Notes when the price of its’ common stock exceeds the conversion price. However, upon conversion, there will be no economic dilution from the Notes until the average market price of the Company’s common stock exceeds the cap price of $38.94 per share, as exercise of the capped calls offsets any dilution from the Notes from the conversion price up to the cap price. Capped Calls are excluded from the calculation of diluted earnings per share, as they would be anti-dilutive under the treasury stock method.

Commitments

Commitments	6 Months Ended
	Jun. 30, 2020
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 June 30, 2020 and December 31, 2019 , approximately $10.0 million and $9.7 million , respectively, of such inventory was purchased and held by the third-party manufacturers which was subject to these purchase guarantees. 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	6 Months Ended
	Jun. 30, 2020
Share-based Payment Arrangement [Abstract]
Stock-based Compensation and Award	Stock-based Compensation and Awards Valuation Assumptions Compensation expense for all share-based payment awards, including stock options, restricted stock units (“RSUs”), and performance stock units (“PSUs”), is measured based on the estimated fair value of the award on the grant date over the related vesting or performance periods. We estimate the fair value of our stock-based awards as follows: Restricted Stock Units. The fair value of restricted stock units is determined based on the quoted market price of our common stock on the date of grant. Performance Stock Units. Performance stock units consist of grants of performance-based restricted stock units to certain members of executive management that vest contingent upon the achievement of pre-determined market and service conditions (referred to herein as “performance stock units”). The fair value of our performance stock units is estimated using a Monte-Carlo simulation model which is a probabilistic approach for calculating the fair value of the awards. The Monte-Carlo simulation is a statistical technique used, in this instance, to simulate future stock prices of the Company relative to constituents in the S&P 600 Health Care Equipment and Services Index. Key assumptions for the Monte-Carlo simulation model are the risk-free interest rate, expected volatility, expected dividends and correlation coefficient. Stock Options and Employee Stock Purchase Plan . The fair value of stock options and stock purchase rights granted pursuant to our equity incentive plans and our 2012 Employee Stock Purchase Plan (ESPP), respectively, is estimated using the Black-Scholes valuation model based on the multiple-award valuation method. Key assumptions of the Black-Scholes valuation model are the risk-free interest rate, expected volatility, expected term and expected dividends. The risk-free interest rate is based on U.S. Treasury yields in effect at the time of grant for the expected term of the option. Expected volatility is based on a combination of historical stock price volatility. An expected term is estimated based on historical exercise behavior, post-vesting termination patterns, options outstanding and future expected exercise behavior. Stock Option Activity A summary of the stock option activity for the six months ended June 30, 2020 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, 2019 606,327 $ 13.41 3.62 $ 4,566 Options granted — — Options exercised (124,417 ) 10.65 Options canceled (1,700 ) 9.40 Outstanding at June 30, 2020 480,210 $ 14.15 3.09 $ 3,542 At June 30, 2020 , there was no unrecognized compensation cost related to options. As of June 30, 2020 , there were 848,424 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. During the six months ended June 30, 2020 employees purchased 126,046 shares of common stock at an average price of $15.60 . During the six months ended June 30, 2019 employees purchased 61,691 shares of common stock at an average price of $29.32 . As of June 30, 2020 , there were 1,063,572 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 June 30, Six months ended June 30, 2020 2019 2020 2019 Expected term (in years) 0.50 0.50 0.50 0.50 Volatility 50% - 54.14% 33% - 45.2% 50% - 54.14% 33% - 45.2% Risk-free interest rate 0.15% - 1.59% 2.43% - 2.51% 0.15% - 1.59% 2.43% - 2.51% Dividend yield 0% 0% 0% 0% Restricted Stock Units and Performance Stock Units A summary of RSU and PSU activity for the six months ended June 30, 2020 is presented below: Restricted Stock Units and Performance Stock Units Number of shares Weighted Average Grant Date Fair Value per Share Outstanding at December 31, 2019 1,550,646 $ 28.94 Granted 1,308,571 21.91 Vested (705,835 ) 27.97 Forfeited (28,158 ) 28.03 Outstanding at June 30, 2020 2,125,224 $ 24.95 At June 30, 2020 , there was $46.6 million of unrecognized compensation cost related to RSUs and PSUs, which is expected to be recognized over a weighted-average period of 2.18 years . During the three months ended June 30, 2020, we granted 145,877 PSUs to certain executives under our 2012 Equity Incentive Plan (the “2012 Plan”). PSUs are contingent on the achievement of our comparative market-based returns. On the date of grant, we estimated the fair value of the total shareholder return (TSR) component of the PSUs using a Monte Carlo valuation model. The PSUs will vest over a three-year performance period. The number of shares the PSU holder receives is based on the extent to which the corresponding market conditions have been achieved. For awards subject to service and market conditions, the number of shares of our stock issued pursuant to the award can range from 0% to 200% of the target amount. Compensation expense for awards with performance-based and service-based conditions is recognized over the requisite service period if it is probable that the performance condition will be satisfied. The expense for performance-based awards is evaluated each quarter based on the achievement of the performance conditions. The assumptions used in the Monte Carlo valuation model to value the PSUs were as follows: June 30, Grant date fair value per share $ 30.70 Expected term (in years) 3 Volatility 42.68 % Risk-free interest rate 0.20 % Dividend yield — % Allocation of Stock-Based Compensation Expense The following table presents the allocation of stock-based compensation expense: Three months ended June 30, Six months ended June 30, (in thousands) 2020 2019 2020 2019 Cost of revenue $ 1,114 $ 1,178 $ 2,087 $ 2,156 Research and development 1,023 1,034 1,989 1,856 Sales and marketing 1,961 1,758 3,821 3,478 General and administrative 2,268 2,139 4,310 4,163 Total stock-based compensation $ 6,366 $ 6,109 $ 12,207 $ 11,653

Segments

Segments	6 Months Ended
	Jun. 30, 2020
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 and its wholly-owned subsidiaries’ results of operations. The following table presents a summary of the operating segments: Three months ended June 30, Six months ended June 30, 2020 2019 2020 2019 (in thousands) Revenue Product $ 23,951 $ 23,132 $ 41,801 $ 37,135 Service 23,396 21,627 46,219 42,933 Total revenue 47,347 44,759 88,020 80,068 Cost of revenue Product 7,710 6,912 14,074 12,246 Service 9,694 10,831 20,217 21,121 Total cost of revenue 17,404 17,743 34,291 33,367 Gross profit Product 16,241 16,220 27,727 24,889 Service 13,702 10,796 26,002 21,812 Total gross profit 29,943 27,016 53,729 46,701 Operating expenses 32,270 30,956 64,656 61,701 Interest expense, net and other (1,185 ) (997 ) (2,930 ) (1,708 ) Loss before income taxes $ (3,512 ) $ (4,937 ) $ (13,857 ) $ (16,708 )

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2020
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The Company recorded a $(0.1) million and $0.1 million (provision for) benefit from income taxes for the six months ended June 30, 2020 and 2019 , respectively. The expense for the six months ended June 30, 2020 was primarily due to the accretion of deferred tax liability associated with indefinite lived intangibles, taxes on international operations and state income taxes netted against the benefit from the release of the FIN48 liabilities due to the expiration of the statute of limitations. The benefit recorded for the six months ended June 30, 2019 was primarily due to the accretion of the deferred tax liability associated with indefinite lived intangibles, the tax effect of unrealized gains on investments recorded within other comprehensive income, taxes on international operations and state income taxes. As of June 30, 2020 , 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 June 30, 2020 , the statute of limitations lapsed on the FIN48 liabilities, resulting in a $0.2 million benefit to the tax provision. On March 27, 2020, the Coronavirus Aid, Relief and Economic Security Act (CARES Act) was enacted and signed into law. The CARES Act, among other things, permits NOL carryovers and carrybacks to offset 100% of taxable income for taxable years beginning before 2021. The Company is currently evaluating the impact of the CARES Act, but at present does not expect that NOL provisions of the CARES Act will result in a material benefit to the Company, since the Company has been generating taxable losses. In addition, the CARES Act allows for the deferral of payment on the Company's share of the 6.2% Social Security tax on wages paid from the date of enactment through the end of the year 2020. Half of the deferred payment amount is due by December 31, 2021, with the remainder due by December 31, 2022. While we continue to assess the impact of the CARES Act, the company opted to defer payment of these amounts starting in the three months ended June 30, 2020. This resulted in a deferral of $0.3 million in payroll taxes as of June 30, 2020.

The Company and Summary of Si_2

The Company and Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2020
Accounting Policies [Abstract]
Nature of Operations	Organization and Business Vocera Communications, Inc. and its subsidiaries (collectively the “Company” or “Vocera”) is a provider of secure, integrated, intelligent communication and clinical workflow solutions, focused on empowering mobile workers in healthcare, hospitality, retail, energy, education 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, safety, patient and staff experience and increase operational efficiency. The Vocera communication and collaboration solution includes: an intelligent enterprise software platform; a lightweight, wearable, voice-controlled communication badge and recently introduced Smartbadge; and smartphone applications. The solution enables users to connect instantly with other staff simply by saying the name, function or group name of the desired recipient. It also delivers HIPAA-compliant secure text messages, alerts and alarms directly to the Vocera Badge, Vocera Smartbadge, smartphones and other mobile communication devices both inside and outside the hospital, replacing legacy pagers and in-building wireless phones.
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”), 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, 2019 . The year-end condensed consolidated 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, 2020 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, accounts receivable reserves, inventory reserves, bonuses, 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.
Recent Accounting Pronouncements	Recently Adopted Accounting Pronouncements 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 new guidance was effective for the Company beginning January 1, 2020. The Company applied the guidance using a modified retrospective approach requiring that the Company recognize the cumulative effect of initially applying the impairment standard as an adjustment to opening accumulated deficit in the period of initial application. There was no adjustment to the Company’s opening accumulated deficit in the period as there were no incremental impairment losses as a result of the adoption. 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 was effective for the Company beginning January 1, 2020. The adoption of this guidance did not have an impact on the Company’s condensed consolidated financial statements. In December 2019, the FASB issued new guidance simplifying the accounting for income taxes, which removes certain exceptions for intra period allocations, recognizing deferred taxes for investments and calculating income taxes in interim periods. This guidance also reduces complexity in certain areas, including recognizing deferred taxes for tax goodwill and allocating taxes to members of a consolidated group. The new standard is effective for the Company for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020, with early adoption permitted. In the second quarter of fiscal year 2020, the Company early adopted the guidance on a prospective basis. The adoption did not have a material impact on the Company's condensed consolidated financial statements.
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. During the six months ended June 30, 2020 , 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 is 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 June 30, 2020 and December 31, 2019 , 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 June 30, 2020
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 June 30, 2020 and December 31, 2019 , approximately $10.0 million and $9.7 million , respectively, of such inventory was purchased and held by the third-party manufacturers which was subject to these purchase guarantees.
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 and its wholly-owned subsidiaries’ results of operations.
Revenue Recognition	Disaggregation of Revenue A typical sales arrangement involves multiple arrangements, such as the sales of the Company’s proprietary communication device (“Vocera Badge”), perpetual software licenses, professional services and maintenance and support services which entitle customers to unspecified upgrades, patch releases and telephone-based support. The following table depicts the disaggregation of revenue according to revenue type and is consistent with how the Company evaluates its financial performance: Three months ended June 30, Six months ended June 30, (in thousands) 2020 2019 2020 2019 Product revenue Device $ 17,100 $ 14,504 $ 31,003 $ 24,564 Software 6,851 8,628 10,798 12,571 Total product 23,951 23,132 41,801 37,135 Service revenue Maintenance and support 18,994 16,928 37,063 33,321 Professional services and training 4,402 4,699 9,156 9,612 Total service 23,396 21,627 46,219 42,933 Total revenue $ 47,347 $ 44,759 $ 88,020 $ 80,068 Contract balances The timing of revenue recognition may differ from the timing of invoicing to customers. Accounts receivable are recorded at the invoiced amount and in the period the Company delivers goods or provides services or when the Company’s right to consideration is unconditional. Payment terms on invoiced amounts are typically 30 days. The balance of accounts receivable, net of allowance for doubtful accounts, as of June 30, 2020 and December 31, 2019 is presented in the accompanying condensed consolidated balance sheets. In situations where revenue recognition occurs before invoicing, an unbilled receivable is created, which represents a contract asset. As of June 30, 2020 and December 31, 2019 , contract assets totaling $4.7 million and $4.3 million , respectively, were included in other receivables in the condensed consolidated balance sheets. Costs to obtain and fulfill a contract The Company capitalizes certain incremental contract acquisition costs consisting primarily of commissions paid and the related payroll taxes when customer contracts are signed. The Company determines whether costs should be deferred based on its sales compensation plans, if the commissions are incremental and would not have been incurred absent the execution of the customer contract. Sales commissions for renewals of customer contracts are not commensurate with the commissions paid for the acquisition of the initial contract given the substantive difference in commission rates in proportion to their respective contract values. Commissions paid upon the initial acquisition of a contract are amortized over the estimated period of benefit, which may exceed the term of the initial contract. Accordingly, amortization of deferred costs is recognized on a systematic basis that is consistent with the pattern of revenue recognition allocated to each performance obligation and is included in sales and marketing expense in the condensed consolidated statements of operations. The Company determines its estimated period of benefit by evaluating the expected renewals of its customer contracts, the duration of its relationships with its customers and other factors. Deferred costs are periodically reviewed for impairment. Changes in the balance of total deferred commissions (contract asset) during the three and six months ended June 30, 2020 are as follows: (in thousands) March 31, 2020 Additions Commissions Recognized June 30, 2020 Deferred commissions $ 10,307 $ 3,163 $ (2,352 ) $ 11,118 (in thousands) December 31, 2019 Additions Commissions Recognized June 30, 2020 Deferred commissions $ 10,477 $ 5,116 $ (4,475 ) $ 11,118 Of the $11.1 million total deferred commissions balance as of June 30, 2020 , the Company expects to recognize approximately 49% as commission expense over the next 12 months and the remainder thereafter. Deferred revenue The Company records deferred revenue when cash payments are received in advance of the performance under the contract. The current portion of deferred revenue represents the amounts that are expected to be recognized as revenue within one year of the condensed consolidated balance sheet date. Changes in the balance of total deferred revenue (contract liability) during the three and six months ended June 30, 2020 are as follows: (in thousands) March 31, 2020 Additions Revenue Recognized June 30, 2020 Deferred revenue $ 56,676 $ 17,385 $ (20,047 ) $ 54,014 (in thousands) December 31, 2019 Additions Revenue Recognized June 30, 2020 Deferred revenue $ 61,475 $ 32,330 $ (39,791 ) $ 54,014 Revenue recognized during the three and six months ended June 30, 2020 from deferred revenue balances at the beginning of the period was $19.5 million and $34.2 million , respectively. Revenue recognized during the three and six months ended June 30, 2019 from deferred revenue balances at the beginning of the period was $17.0 million and $29.4 million . The “contracted but not recognized” performance obligations represent the Company’s deferred revenue and non-cancelable backlog amounts. This balance as of June 30, 2020 was $115.9 million , of which the Company expects to recognize approximately 66% as revenue over the next 12 months and the remainder thereafter.

Revenue, deferred revenue, an_2

Revenue, deferred revenue, and deferred commissions (Tables)	6 Months Ended
	Jun. 30, 2020
Revenue from Contract with Customer [Abstract]
Disaggregation of Revenue	Disaggregation of Revenue A typical sales arrangement involves multiple arrangements, such as the sales of the Company’s proprietary communication device (“Vocera Badge”), perpetual software licenses, professional services and maintenance and support services which entitle customers to unspecified upgrades, patch releases and telephone-based support. The following table depicts the disaggregation of revenue according to revenue type and is consistent with how the Company evaluates its financial performance: Three months ended June 30, Six months ended June 30, (in thousands) 2020 2019 2020 2019 Product revenue Device $ 17,100 $ 14,504 $ 31,003 $ 24,564 Software 6,851 8,628 10,798 12,571 Total product 23,951 23,132 41,801 37,135 Service revenue Maintenance and support 18,994 16,928 37,063 33,321 Professional services and training 4,402 4,699 9,156 9,612 Total service 23,396 21,627 46,219 42,933 Total revenue $ 47,347 $ 44,759 $ 88,020 $ 80,068
Contract with Customer, Asset and Liability	Deferred revenue The Company records deferred revenue when cash payments are received in advance of the performance under the contract. The current portion of deferred revenue represents the amounts that are expected to be recognized as revenue within one year of the condensed consolidated balance sheet date. Changes in the balance of total deferred revenue (contract liability) during the three and six months ended June 30, 2020 are as follows: (in thousands) March 31, 2020 Additions Revenue Recognized June 30, 2020 Deferred revenue $ 56,676 $ 17,385 $ (20,047 ) $ 54,014 Contract balances The timing of revenue recognition may differ from the timing of invoicing to customers. Accounts receivable are recorded at the invoiced amount and in the period the Company delivers goods or provides services or when the Company’s right to consideration is unconditional. Payment terms on invoiced amounts are typically 30 days. The balance of accounts receivable, net of allowance for doubtful accounts, as of June 30, 2020 and December 31, 2019 is presented in the accompanying condensed consolidated balance sheets. In situations where revenue recognition occurs before invoicing, an unbilled receivable is created, which represents a contract asset. As of June 30, 2020 and December 31, 2019 , contract assets totaling $4.7 million and $4.3 million , respectively, were included in other receivables in the condensed consolidated balance sheets. Costs to obtain and fulfill a contract The Company capitalizes certain incremental contract acquisition costs consisting primarily of commissions paid and the related payroll taxes when customer contracts are signed. The Company determines whether costs should be deferred based on its sales compensation plans, if the commissions are incremental and would not have been incurred absent the execution of the customer contract. Sales commissions for renewals of customer contracts are not commensurate with the commissions paid for the acquisition of the initial contract given the substantive difference in commission rates in proportion to their respective contract values. Commissions paid upon the initial acquisition of a contract are amortized over the estimated period of benefit, which may exceed the term of the initial contract. Accordingly, amortization of deferred costs is recognized on a systematic basis that is consistent with the pattern of revenue recognition allocated to each performance obligation and is included in sales and marketing expense in the condensed consolidated statements of operations. The Company determines its estimated period of benefit by evaluating the expected renewals of its customer contracts, the duration of its relationships with its customers and other factors. Deferred costs are periodically reviewed for impairment. Changes in the balance of total deferred commissions (contract asset) during the three and six months ended June 30, 2020 are as follows: (in thousands) March 31, 2020 Additions Commissions Recognized June 30, 2020 Deferred commissions $ 10,307 $ 3,163 $ (2,352 ) $ 11,118 (in thousands) December 31, 2019 Additions Commissions Recognized June 30, 2020 Deferred commissions $ 10,477 $ 5,116 $ (4,475 ) $ 11,118 Of the $11.1 million total deferred commissions balance as of June 30, 2020 , the Company expects to recognize approximately 49% as commission expense over the next 12 months and the remainder thereafter.

Fair Value of Financial Insturm

Fair Value of Financial Insturments (Tables)	6 Months Ended
	Jun. 30, 2020
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 June 30, 2020 and December 31, 2019 , are summarized as follows (in thousands): June 30, 2020 December 31, 2019 Level 1 Level 2 Total Level 1 Level 2 Total Assets Money market funds $ 6,682 $ — $ 6,682 $ 4,086 $ — $ 4,086 Commercial paper — 15,987 15,987 — 12,854 12,854 U.S. government agency securities — — — — 3,000 3,000 Corporate debt securities — 188,489 188,489 — 188,310 188,310 Total assets measured at fair value $ 6,682 $ 204,476 $ 211,158 $ 4,086 $ 204,164 $ 208,250

Cash, Cash Equivalents and Sh_2

Cash, Cash Equivalents and Short-term Investments (Tables)	6 Months Ended
	Jun. 30, 2020
Cash and Cash Equivalents [Abstract]
Schedule of Cash, Cash Equivalents and Available-For-Sale Investments	The following tables present cash, cash equivalents and short-term investments (in thousands) as of June 30, 2020 and December 31, 2019 : As of June 30, 2020 Amortized Cost Unrealized Gains Unrealized Losses Fair value Cash and cash equivalents: Demand deposits and other cash $ 22,704 $ — $ — $ 22,704 Money market funds 6,682 — — 6,682 Total cash and cash equivalents 29,386 — — 29,386 Short-Term Investments: Commercial paper 15,954 35 (2 ) 15,987 Corporate debt securities 187,234 1,288 (33 ) 188,489 Total short-term investments 203,188 1,323 (35 ) 204,476 Total cash, cash equivalents and short-term investments $ 232,574 $ 1,323 $ (35 ) $ 233,862 As of December 31, 2019 Amortized Cost Unrealized Gains Unrealized Losses Fair value Cash and cash equivalents: Demand deposits and other cash $ 21,618 $ — $ — $ 21,618 Money market funds 4,086 — — 4,086 Total cash and cash equivalents 25,704 — — 25,704 Short-Term Investments: Commercial paper 12,861 — (7 ) 12,854 U.S. government agency securities 3,000 — — 3,000 Corporate debt securities 187,866 499 (55 ) 188,310 Total short-term investments 203,727 499 (62 ) 204,164 Total cash, cash equivalents and short-term investments $ 229,431 $ 499 $ (62 ) $ 229,868
Investments Classified by Contractual Maturity Date	Classification of the cash, cash equivalents and short-term investments by contractual maturity was as follows: (in thousands) One year or shorter Between 1 and 2 years Total Balances as of June 30, 2020 Cash and cash equivalents (1) $ 29,386 $ — $ 29,386 Short-term investments 121,605 82,871 204,476 Cash, cash equivalents and short-term investments $ 150,991 $ 82,871 $ 233,862 Balances as of December 31, 2019 Cash and cash equivalents (1) $ 25,704 $ — $ 25,704 Short-term investments 113,010 91,154 204,164 Cash, cash equivalents and short-term investments $ 138,714 $ 91,154 $ 229,868 (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)	6 Months Ended
	Jun. 30, 2020
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 June 30, Six months ended June 30, 2020 2019 2020 2019 Numerator: Net loss $ (3,468 ) $ (4,857 ) $ (13,938 ) $ (16,592 ) Denominator: Weighted average shares used to compute net loss per common share - basic 32,152 31,242 31,945 31,022 Weighted-average shares used to compute net loss per common share - diluted 32,152 31,242 31,945 31,022 Net loss per share Basic $ (0.11 ) $ (0.16 ) $ (0.44 ) $ (0.53 ) Diluted $ (0.11 ) $ (0.16 ) $ (0.44 ) $ (0.53 )
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 June 30, Six months ended June 30, (in thousands) 2020 2019 2020 2019 Options to purchase common stock, including ESPP 517 656 568 690 Restricted stock units and Performance stock units 2,125 1,671 1,880 1,760

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	6 Months Ended
	Jun. 30, 2020
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: June 30, 2020 December 31, 2019 (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 $ 9,893 $ 157 $ 10,050 $ 9,803 $ 247 Customer relationships 7 to 9 10,920 6,356 4,564 10,920 5,819 5,101 Backlog 3 1,400 1,287 113 1,400 1,287 113 Non-compete agreements 2 to 4 460 460 — 460 460 — Trademarks 3 to 7 1,110 1,110 — 1,110 1,110 — Intangible assets, net book value $ 23,940 $ 19,106 $ 4,834 $ 23,940 $ 18,479 $ 5,461
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 June 30, 2020 was as follows: (in thousands) Future amortization 2020 (remaining six months) $ 729 2021 1,130 2022 1,050 2023 1,050 2024 875 Future amortization expense $ 4,834

Balance Sheet Components (Table

Balance Sheet Components (Tables)	6 Months Ended
	Jun. 30, 2020
Balance Sheet Components [Abstract]
Inventories	Inventories (in thousands) June 30, December 31, Raw materials $ 637 $ 831 Finished goods 7,919 3,745 Total inventories $ 8,556 $ 4,576
Property and Equipment	Property and equipment, net (in thousands) June 30, December 31, Computer equipment and software $ 14,224 $ 13,596 Furniture, fixtures and equipment 2,583 2,430 Leasehold improvements 5,286 5,283 Manufacturing tools and equipment 2,409 2,435 Construction in process 320 582 Property and equipment, at cost 24,822 24,326 Less: Accumulated depreciation (17,153 ) (15,665 ) Property and equipment, net $ 7,669 $ 8,661 Depreciation and amortization expense for property and equipment was $1.2 million and $0.9 million for the three months ended June 30, 2020 and 2019
Schedule of Components of Leveraged Lease Investments	Net investment in sales-type leases The Company has sales-type leases with terms of 3 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) June 30, December 31, Minimum payments to be received on sales-type leases $ 1,687 $ 2,078 Less: Unearned interest income and executory revenue portion (860 ) (1,190 ) Net investment in sales-type leases 827 888 Less: Current portion (435 ) (452 ) Non-current net investment in sales-type leases $ 392 $ 436 Sales-type lease activity recognized in the condensed consolidated statement of operations are as follows: Three months ended June 30, Six months ended June 30, (in thousands) 2020 2019 2020 2019 Lease revenue $ 1,118 $ 2,703 $ 1,553 $ 3,364 Less: Cost of lease shipments (165 ) (805 ) (175 ) (857 ) Gross profit $ 953 $ 1,898 $ 1,378 $ 2,507 Interest income (expense), net on lease receivable $ (6 ) $ 3 $ (12 ) $ — Initial direct cost incurred $ 60 $ 109 $ 83 $ 140 There were no allowances for doubtful accounts on these leases as of June 30, 2020 and December 31, 2019 . 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 condensed 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 June 30, 2020 were as follows: (in thousands) Future lease payments 2020 (remaining six months) $ 433 2021 678 2022 450 2023 126 Total $ 1,687
Accrued Liabilities	Accrued payroll and other current liabilities (in thousands) June 30, December 31, Payroll and related expenses $ 8,214 $ 6,053 Accrued payables 2,368 2,674 Operating lease liabilities, current portion 2,389 2,323 Lease financing, current portion 905 1,033 Product warranty 521 420 Customer prepayments 1,147 631 Sales and use tax payable 334 599 Other 1,201 1,024 Total accrued payroll and other current liabilities $ 17,079 $ 14,757
Schedule of Product Warranty Liability	The changes in the Company’s product warranty reserve are as follows: Three months ended June 30, Six months ended June 30, (in thousands) 2020 2019 2020 2019 Warranty balance at the beginning of the period $ 440 $ 374 $ 420 $ 376 Warranty expense accrued for shipments during the period 115 92 223 169 Changes in estimate related to pre-existing warranties 40 (55 ) 9 (86 ) Warranty settlements made (74 ) (56 ) (131 ) (104 ) Total product warranty $ 521 $ 355 $ 521 $ 355
Information Related to Leases	Supplemental balance sheet information related to leases was as follows: (in thousands) June 30, Other long-term assets $ 5,191 Accrued payroll and other current liabilities 2,389 Other long-term liabilities 3,530 Total operating lease liabilities $ 5,919 Other information related to leases was as follows: Three months ended June 30, Six months ended June 30, (in thousands) 2020 2019 2020 2019 Supplemental Cash Flow Information Cash paid for amounts included in the measurement of lease liabilities $ 732 $ 634 $ 1,444 1,264 Right-of-use assets obtained in exchange for lease obligations $ 122 $ 329 $ 122 1,018 Weighted average remaining lease term 2.46 years 2.84 years 2.46 years 2.84 years Weighted average discount rate 8 % 8 % 8 % 8 %

Convertible Senior Notes (Table

Convertible Senior Notes (Tables)	6 Months Ended
	Jun. 30, 2020
Debt Disclosure [Abstract]
Schedule of Notes	The Notes consist of the following: (in thousands) June 30, December 31, Liability: Principal $ 143,750 $ 143,750 Unamortized debt discount (20,731 ) (23,880 ) Unamortized issuance costs (2,337 ) (2,692 ) Net carrying amount $ 120,682 $ 117,178 Stockholders’ equity: Debt discount for conversion option $ 33,350 $ 33,350 Issuance costs (1,136 ) (1,136 ) Net carrying amount $ 32,214 $ 32,214
Schedule of Interest Expense Related to the Notes	Interest expense related to the Notes is as follows: Three months ended June 30, Six months ended June 30, (in thousands) 2020 2019 2020 2019 Contractual interest expense $ 539 $ 539 $ 1,078 $ 1,078 Amortization of debt discount 1,590 1,471 3,149 2,893 Amortization of issuance costs 179 166 355 326 Total interest expense $ 2,308 $ 2,176 $ 4,582 $ 4,297
Schedule of Net Impact on Stockholders' Equity of Components of Convertible Debt	The net impact to the Company’s stockholders' equity, included in additional paid-in capital, of the above components of the Notes is as follows: (in thousands) June 30, Conversion option $ 33,350 Purchase of capped calls (8,907 ) Issuance costs (1,136 ) Total $ 23,307

Stock-based Compensation and _2

Stock-based Compensation and Awards (Tables)	6 Months Ended
	Jun. 30, 2020
Share-based Payment Arrangement [Abstract]
Rollforward of stock option activity	A summary of the stock option activity for the six months ended June 30, 2020 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, 2019 606,327 $ 13.41 3.62 $ 4,566 Options granted — — Options exercised (124,417 ) 10.65 Options canceled (1,700 ) 9.40 Outstanding at June 30, 2020 480,210 $ 14.15 3.09 $ 3,542
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 June 30, Six months ended June 30, 2020 2019 2020 2019 Expected term (in years) 0.50 0.50 0.50 0.50 Volatility 50% - 54.14% 33% - 45.2% 50% - 54.14% 33% - 45.2% Risk-free interest rate 0.15% - 1.59% 2.43% - 2.51% 0.15% - 1.59% 2.43% - 2.51% Dividend yield 0% 0% 0% 0%
Rollforward of RSA and RSU activty	A summary of RSU and PSU activity for the six months ended June 30, 2020 is presented below: Restricted Stock Units and Performance Stock Units Number of shares Weighted Average Grant Date Fair Value per Share Outstanding at December 31, 2019 1,550,646 $ 28.94 Granted 1,308,571 21.91 Vested (705,835 ) 27.97 Forfeited (28,158 ) 28.03 Outstanding at June 30, 2020 2,125,224 $ 24.95
PSU Valuation Assumptions	The assumptions used in the Monte Carlo valuation model to value the PSUs were as follows: June 30, Grant date fair value per share $ 30.70 Expected term (in years) 3 Volatility 42.68 % Risk-free interest rate 0.20 % Dividend yield — %
Allocation of Recognized Period Costs	The following table presents the allocation of stock-based compensation expense: Three months ended June 30, Six months ended June 30, (in thousands) 2020 2019 2020 2019 Cost of revenue $ 1,114 $ 1,178 $ 2,087 $ 2,156 Research and development 1,023 1,034 1,989 1,856 Sales and marketing 1,961 1,758 3,821 3,478 General and administrative 2,268 2,139 4,310 4,163 Total stock-based compensation $ 6,366 $ 6,109 $ 12,207 $ 11,653

Segments Segments (Tables)

Segments Segments (Tables)	6 Months Ended
	Jun. 30, 2020
Segment Reporting [Abstract]
Segments	The following table presents a summary of the operating segments: Three months ended June 30, Six months ended June 30, 2020 2019 2020 2019 (in thousands) Revenue Product $ 23,951 $ 23,132 $ 41,801 $ 37,135 Service 23,396 21,627 46,219 42,933 Total revenue 47,347 44,759 88,020 80,068 Cost of revenue Product 7,710 6,912 14,074 12,246 Service 9,694 10,831 20,217 21,121 Total cost of revenue 17,404 17,743 34,291 33,367 Gross profit Product 16,241 16,220 27,727 24,889 Service 13,702 10,796 26,002 21,812 Total gross profit 29,943 27,016 53,729 46,701 Operating expenses 32,270 30,956 64,656 61,701 Interest expense, net and other (1,185 ) (997 ) (2,930 ) (1,708 ) Loss before income taxes $ (3,512 ) $ (4,937 ) $ (13,857 ) $ (16,708 )

The Company and Summary of Si_3

The Company and Summary of Significant Accounting Policies Narrative (Details) $ in Thousands	Jun. 30, 2020USD ($)
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total operating lease liabilities	$ 5,919

Revenue, deferred revenue, an_3

Revenue, deferred revenue, and deferred commissions - Consolidated Balance Sheet (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Other receivables	$ 6,645		$ 6,312
Deferred revenue, current	43,841		50,033
Deferred revenue, long-term	10,173		11,442
Total deferred revenue	54,014	$ 56,676	61,475
Stockholders' equity	$ 160,655		$ 163,825

Revenue, deferred revenue, an_4

Revenue, deferred revenue, and deferred commissions - Consolidated Statement of Operations (Details) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2020	Mar. 31, 2020	Jun. 30, 2019	Mar. 31, 2019	Jun. 30, 2020	Jun. 30, 2019
Revenue
Total revenue	$ 47,347		$ 44,759		$ 88,020	$ 80,068
Gross Profit	29,943		27,016		53,729	46,701
Operating expenses	32,270		30,956		64,656	61,701
Operating Income (Loss)	(2,327)		(3,940)		(10,927)	(15,000)
Net loss	(3,468)	$ (10,470)	(4,857)	$ (11,735)	(13,938)	(16,592)
Product
Revenue
Total revenue	23,951		23,132		41,801	37,135
Service
Revenue
Total revenue	$ 23,396		$ 21,627		$ 46,219	$ 42,933

Revenue, deferred revenue, an_5

Revenue, deferred revenue, and deferred commissions - Cash Flows From Operating Activities (Details) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2020	Mar. 31, 2020	Jun. 30, 2019	Mar. 31, 2019	Jun. 30, 2020	Jun. 30, 2019
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net loss	$ (3,468)	$ (10,470)	$ (4,857)	$ (11,735)	$ (13,938)	$ (16,592)
Adjustments to reconcile net loss to net cash used in operating activities:
Deferred commissions					(640)	385
Deferred revenue					$ (7,461)	$ (6,027)

Revenue, deferred revenue, an_6

Revenue, deferred revenue, and deferred commissions - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenue	$ 47,347	$ 44,759	$ 88,020	$ 80,068
Product Segment [Member]
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenue	23,951	23,132	41,801	37,135
Product Segment [Member] | Software [Member]
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenue	6,851	8,628	10,798	12,571
Product Segment [Member] | Device [Member]
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenue	17,100	14,504	31,003	24,564
Service Segment [Member]
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenue	23,396	21,627	46,219	42,933
Service Segment [Member] | Maintenance and Support [Member]
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenue	18,994	16,928	37,063	33,321
Service Segment [Member] | Professional Services and Training [Member]
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenue	$ 4,402	$ 4,699	$ 9,156	$ 9,612

Revenue, deferred revenue, an_7

Revenue, deferred revenue, and deferred commissions - Significant Changes in Deferred Commissions (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2020
Change in Contract with Customer, Asset [Roll Forward]
Beginning balance	$ 10,307	$ 10,477
Additions	3,163	5,116
Commissions Recognized	(2,352)	(4,475)
Ending balance	$ 11,118	$ 11,118

Revenue, deferred revenue, an_8

Revenue, deferred revenue, and deferred commissions - Significant Changes in Deferred Revenue (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2020	Jun. 30, 2019
Revenue from Contract with Customer [Abstract]
Revenue recognized pertaining to amounts deferred as of Beginning of Period		$ 34,200
Revenue recognized pertaining to amounts deferred as of End of Period	$ 17,000		$ 29,400
Change in Contract with Customer, Liability [Roll Forward]
Beginning balance	56,676	61,475
Additions	17,385	32,330
Revenue Recognized	(20,047)	(39,791)
Ending balance	$ 54,014	$ 54,014

Revenue, deferred revenue, an_9

Revenue, deferred revenue, and deferred commissions - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2020	Jun. 30, 2019	Mar. 31, 2020	Dec. 31, 2019
Revenue from Contract with Customer [Abstract]
Payment terms on invoiced amounts		30 days
Deferred commissions	$ 11,118	$ 11,118		$ 10,307	$ 10,477
Percentage of deferred commissions to be recognized as commission expense in the next 12 months	49.00%	49.00%
Revenue recognized pertaining to amounts deferred as of Beginning of Period		$ 34,200
Revenue recognized pertaining to amounts deferred as of End of Period	$ 17,000		$ 29,400
Deferred revenue and backlog	$ 115,900	$ 115,900
Percentage of deferred revenue to be recognized over the next 12 months	66.00%	66.00%
Contract with Customer, Asset, before Allowance for Credit Loss	$ 4,700	$ 4,700			$ 4,300

Fair Value of Financial Instr_2

Fair Value of Financial Instruments (Details) - USD ($)	6 Months Ended
	Jun. 30, 2020	Dec. 31, 2019
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	29,386,000	$ 25,704,000
Short-term investments	204,476,000	204,164,000
U.S. government agency securities
Assets, Fair Value Disclosure [Abstract]
Short-term investments		3,000,000
Corporate debt securities
Assets, Fair Value Disclosure [Abstract]
Short-term investments	188,489,000	188,310,000
Fair Value, Measurements, Recurring
Assets, Fair Value Disclosure [Abstract]
Total assets measured at fair value	211,158,000	208,250,000
Fair Value, Measurements, Recurring | Level 1
Assets, Fair Value Disclosure [Abstract]
Total assets measured at fair value	6,682,000	4,086,000
Fair Value, Measurements, Recurring | Level 2
Assets, Fair Value Disclosure [Abstract]
Total assets measured at fair value	204,476,000	204,164,000
Fair Value, Measurements, Recurring | U.S. government agency securities
Assets, Fair Value Disclosure [Abstract]
Short-term investments	0	3,000,000
Fair Value, Measurements, Recurring | U.S. government agency securities | Level 1
Assets, Fair Value Disclosure [Abstract]
Short-term investments	0	0
Fair Value, Measurements, Recurring | U.S. government agency securities | Level 2
Assets, Fair Value Disclosure [Abstract]
Short-term investments	0	3,000,000
Fair Value, Measurements, Recurring | Corporate debt securities
Assets, Fair Value Disclosure [Abstract]
Short-term investments	188,489,000	188,310,000
Fair Value, Measurements, Recurring | Corporate debt securities | Level 1
Assets, Fair Value Disclosure [Abstract]
Short-term investments	0	0
Fair Value, Measurements, Recurring | Corporate debt securities | Level 2
Assets, Fair Value Disclosure [Abstract]
Short-term investments	188,489,000	188,310,000
Fair Value, Measurements, Recurring | Money market funds
Assets, Fair Value Disclosure [Abstract]
Cash and cash equivalents	6,682,000	4,086,000
Fair Value, Measurements, Recurring | Money market funds | Level 1
Assets, Fair Value Disclosure [Abstract]
Cash and cash equivalents	6,682,000	4,086,000
Fair Value, Measurements, Recurring | Money market funds | Level 2
Assets, Fair Value Disclosure [Abstract]
Cash and cash equivalents	0	0
Fair Value, Measurements, Recurring | Commercial paper
Assets, Fair Value Disclosure [Abstract]
Short-term investments	15,987,000	12,854,000
Fair Value, Measurements, Recurring | Commercial paper | Level 1
Assets, Fair Value Disclosure [Abstract]
Short-term investments	0	0
Fair Value, Measurements, Recurring | Commercial paper | Level 2
Assets, Fair Value Disclosure [Abstract]
Short-term investments	$ 15,987,000	$ 12,854,000

Schedule of Available for Sale

Schedule of Available for Sale Securities (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Cash and cash equivalents [Abstract]
Cash and Cash Equivalents, Amortized Cost	$ 29,386	$ 25,704
Cash And Cash Equivalents, Gross Unrealized Gains	0	0
Cash And Cash Equivalents, Gross Unrealized Losses	0	0
Cash and cash equivalents	29,386	25,704
Short-term Investments [Abstract]
AFS Securities, Amortized Cost Basis	203,188	203,727
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax	1,323	499
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax	35	62
Short-term investments	204,476	204,164
Cash, Cash Equivalents, and Short-term Investments [Abstract]
Cash, Cash Equiv. And S-T Investments, Amortized Cost	232,574	229,431
Cash, Cash Equivalents And Short Term Investments, Unrealized Gains	1,323	499
Cash, Cash Equivalents And Short Term Investments, Unrealized Losses	35	62
Cash, cash equivalents and short-term investments	233,862	229,868
Demand deposits and other cash
Cash and cash equivalents [Abstract]
Cash and Cash Equivalents, Amortized Cost	22,704	21,618
Cash And Cash Equivalents, Gross Unrealized Gains	0	0
Cash And Cash Equivalents, Gross Unrealized Losses	0	0
Cash and cash equivalents	22,704	21,618
Money market funds
Cash and cash equivalents [Abstract]
Cash and Cash Equivalents, Amortized Cost	6,682	4,086
Cash And Cash Equivalents, Gross Unrealized Gains	0	0
Cash And Cash Equivalents, Gross Unrealized Losses	0	0
Cash and cash equivalents	6,682	4,086
Commercial paper in STI
Short-term Investments [Abstract]
AFS Securities, Amortized Cost Basis	15,954	12,861
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax	35	0
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax	2	7
Short-term investments	15,987	12,854
U.S. government agency securities
Short-term Investments [Abstract]
AFS Securities, Amortized Cost Basis		3,000
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax		0
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax		0
Short-term investments		3,000
Corporate Debt Securities
Short-term Investments [Abstract]
AFS Securities, Amortized Cost Basis	187,234	187,866
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax	1,288	499
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax	33	55
Short-term investments	$ 188,489	$ 188,310

Contractual maturities of cash,

Contractual maturities of cash, cash equivalent and short-term investment (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Debt Securities, Available-for-sale [Line Items]
Cash and cash equivalents	$ 29,386	$ 25,704
Short-term investments	204,476	204,164
Cash, cash equivalents and short-term investments	233,862	229,868
Maturity up to one year
Debt Securities, Available-for-sale [Line Items]
Cash and cash equivalents	29,386	25,704
Short-term investments	121,605	113,010
Cash, cash equivalents and short-term investments	150,991	138,714
maturity between 1 and 2 years [Member]
Debt Securities, Available-for-sale [Line Items]
Cash and cash equivalents	0	0
Short-term investments	82,871	91,154
Cash, cash equivalents and short-term investments	$ 82,871	$ 91,154

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				6 Months Ended
	Jun. 30, 2020	Mar. 31, 2020	Jun. 30, 2019	Mar. 31, 2019	Jun. 30, 2020	Jun. 30, 2019
Earnings Per Share [Abstract]
Weighted Average Number of Shares Outstanding, Diluted	32,152		31,242		31,945	31,022
Weighted Average Number of Shares Outstanding, Basic	32,152		31,242		31,945	31,022
Numerator:
Net loss	$ (3,468)	$ (10,470)	$ (4,857)	$ (11,735)	$ (13,938)	$ (16,592)
Denominator:
Weighted Average Number of Shares Outstanding, Basic and Diluted			31,242		31,945	31,022
Net loss per share
Earnings Per Share, Basic	$ (0.11)		$ (0.16)		$ (0.44)	$ (0.53)
Earnings Per Share, Diluted	$ (0.11)		$ (0.16)		$ (0.44)	$ (0.53)

Schedule of antidilutive securi

Schedule of antidilutive securities excluded from computation of earnings per share (Details) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
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	517	656	568	690
Restricted stock units and Performance stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	2,125	1,671	1,880	1,760

Schedule of Finite-Lived Intang

Schedule of Finite-Lived Intangible Assets (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2020	Dec. 31, 2019
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Asset, Expected Amortization, Year Two	$ 1,130
Finite-Lived Intangible Asset, Expected Amortization, Year Three	1,050
Finite-Lived Intangible Asset, Expected Amortization, Year Four	1,050
Finite-Lived Intangibles, Amortization Expense, Year Five	875
Accumulated Amortization	19,106	$ 18,479
Finite-Lived Intangible Assets, Net	4,834
Finite-Lived Intangible Assets, Useful Life
Intangible assets, gross	23,940	23,940
Intangible assets, net book value	4,834	5,461
Developed technology
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	10,050	10,050
Accumulated Amortization	9,893	9,803
Finite-Lived Intangible Assets, Net	157	247
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	10,920	10,920
Accumulated Amortization	6,356	5,819
Finite-Lived Intangible Assets, Net	4,564	5,101
Order or Production Backlog [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	1,400	1,400
Accumulated Amortization	1,287	1,287
Finite-Lived Intangible Assets, Net	113	113
Noncompete Agreements
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	460	460
Accumulated Amortization	460	460
Finite-Lived Intangible Assets, Net	0	0
Trademarks
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	1,110	1,110
Accumulated Amortization	1,110	1,110
Finite-Lived Intangible Assets, Net	$ 0	$ 0
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	Jun. 30, 2020USD ($)
Goodwill and intangible assets [Abstract]
Finite-Lived Intangible Asset, Expected Amortization, Year One	$ 729
Finite-Lived Intangible Asset, Expected Amortization, Year Two	1,130
Finite-Lived Intangible Asset, Expected Amortization, Year Three	1,050
Finite-Lived Intangible Asset, Expected Amortization, Year Four	1,050
Finite-Lived Intangibles, Amortization Expense, Year Five	875
Finite-Lived Intangible Assets, Net	$ 4,834

Goodwill and Intangible Asset_2

Goodwill and Intangible Assets Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
Finite-Lived Intangible Assets [Line Items]
Goodwill	$ 49,246		$ 49,246		$ 49,246
Intangibles - period amortization expense [Abstract]
Amortization expense	300	$ 1,000	600	$ 2,000
Product Segment [Member]
Finite-Lived Intangible Assets [Line Items]
Goodwill	41,200		41,200
Service Segment [Member]
Finite-Lived Intangible Assets [Line Items]
Goodwill	$ 8,000		$ 8,000

Inventories (Details)

Inventories (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Inventory, Net [Abstract]
Raw materials	$ 637	$ 831
Finished goods	7,919	3,745
Total inventories	$ 8,556	$ 4,576

Property and Equipment (Details

Property and Equipment (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	$ 24,822		$ 24,822		$ 24,326
Less: Accumulated depreciation	(17,153)		(17,153)		(15,665)
Property and equipment, net	7,669		7,669		8,661
Depreciation, Depletion and Amortization [Abstract]
Depreciation	1,200	$ 900	2,200	$ 1,800
Computer equipment and software
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	14,224		14,224		13,596
Furniture, fixtures and equipment
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	2,583		2,583		2,430
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	5,286		5,286		5,283
Manufacturing tools and equipment
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	2,409		2,409		2,435
Construction in process
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	$ 320		$ 320		$ 582

Investment in Sales Type Leases

Investment in Sales Type Leases (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2020	Dec. 31, 2019
Capital Leased Assets [Line Items]
Sales-type and Direct Financing Leases, Lease Receivable, Payments to be Received	$ 1,687	$ 2,078
Sales-type and Direct Financing Leases, Lease Receivable, Undiscounted Excess Amount	860	1,190
Net Investment in Lease	827	888
Net Investment in Lease, Current	435	452
Net Investment in Lease, Noncurrent	$ 392	$ 436
Minimum
Capital Leased Assets [Line Items]
Lessors, Capital Leases, Term of contract	3 years
Maximum
Capital Leased Assets [Line Items]
Lessors, Capital Leases, Term of contract	4 years

Balance Sheet Components Sales

Balance Sheet Components Sales Type Lease Activity (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Balance Sheet Components [Abstract]
Lease revenue	$ 1,118	$ 2,703	$ 1,553	$ 3,364
Less: Cost of lease shipments	(165)	(805)	(175)	(857)
Gross profit	953	1,898	1,378	2,507
Sales-type Lease, Interest Income, Lease Receivable	6	3	12	0
Initial direct cost incurred	$ 60	$ 109	$ 83	$ 140

Future payments- sales type lea

Future payments- sales type leases (Details) $ in Thousands	Jun. 30, 2020USD ($)
Balance Sheet Components [Abstract]
Sales-Type and Direct Financing Leases, Lease Receivable, to be Received, Year One	$ 433
Sales-Type and Direct Financing Leases, Lease Receivable, to be Received, Year Four	126
Sales-Type and Direct Financing Leases, Lease Receivable, to be Received, Year Two	678
Sales-Type and Direct Financing Leases, Lease Receivable, to be Received, Year Three	$ 450

Accrued Liabilities (Details)

Accrued Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Accrued Liabilities, Current [Abstract]
Payroll and related expenses	$ 8,214	$ 6,053
Accrued payables	2,368	2,674
Accrued payroll and other current liabilities	2,389	2,323
Lease financing, current portion	905	1,033
Product warranty	521	420
Customer Refund Liability, Current	1,147	631
Sales and use tax payable	334	599
Other	1,201	1,024
Total accrued payroll and other current liabilities	$ 17,079	$ 14,757

Schedule of Product Liability (

Schedule of Product Liability (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019	Dec. 31, 2017
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward]
Product warranty accrual, at the beginning of the period	$ 440	$ 374	$ 420
Warranty expenses accrued	115	92	223	$ 169
Product Warranty Accrual, Preexisting, Increase (Decrease)	40	(55)	9	(86)
Warranty settlements made	(74)	(56)	(131)	(104)
Product Warranty Accrual	$ 521	$ 355	$ 521	$ 355	$ 355	$ 376

Balance Sheet Components Leases

Balance Sheet Components Leases (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Condensed Balance Sheet Statements, Captions [Line Items]
Other long-term assets	$ 0.7	$ 0.5	$ 1.4	$ 1.1
Minimum
Condensed Balance Sheet Statements, Captions [Line Items]
Operating lease remaining term (years)	10 months		10 months
Maximum
Condensed Balance Sheet Statements, Captions [Line Items]
Operating lease remaining term (years)	5 years		5 years

Balance Sheet Components Supple

Balance Sheet Components Supplemental Balance Sheet Information Related to Leases (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Balance Sheet Components [Abstract]
Accrued payroll and other current liabilities	$ 2,389	$ 2,323
Other long-term liabilities	3,530
Total operating lease liabilities	$ 5,919

Balance Sheet Components Other

Balance Sheet Components Other Information Related to Leases (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Balance Sheet Components [Abstract]
Cash paid for amounts included in the measurement of lease liabilities	$ 732	$ 634	$ 1,444	$ 1,264
Right-of-use assets obtained in exchange for lease obligations	$ 122	$ 329	$ 122	$ 1,018
Weighted average remaining lease term	2 years 5 months 15 days	2 years 10 months 2 days	2 years 5 months 15 days	2 years 10 months 2 days
Weighted average discount rate	8.00%	8.00%	8.00%	8.00%

Balance Sheet Components Maturi

Balance Sheet Components Maturities of Leases (Details) $ in Thousands	Jun. 30, 2020USD ($)
Balance Sheet Components [Abstract]
2020 (remaining six months)	$ 1,389
2020	3,022
2021	1,380
2022	439
2023	325
Total maturities of lease liabilities	6,555
Less imputed interest	(636)
Total operating lease liabilities	$ 5,919

Convertible Senior Notes - Conv

Convertible Senior Notes - Convertible Notes and Options (Details)	1 Months Ended	2 Months Ended	3 Months Ended		6 Months Ended
	May 31, 2018USD ($)day$ / shares	Jun. 30, 2018USD ($)	Jun. 30, 2020USD ($)$ / shares	Jun. 30, 2019USD ($)	Jun. 30, 2020USD ($)$ / shares	Jun. 30, 2019USD ($)	Dec. 31, 2019USD ($)
Debt Instrument [Line Items]
Net carrying amount			$ 120,682,000		$ 120,682,000		$ 117,178,000
Total interest expense			2,308,000	$ 2,170,000	4,582,000	$ 4,291,000
Convertible Debt | Convertible Senior Notes at 1.50%
Debt Instrument [Line Items]
Aggregate principal amount	$ 143,750,000		143,750,000		143,750,000		143,750,000
Stated interest rate	1.50%
Proceeds from issuance of convertible senior notes, net of issuance costs	$ 138,900,000
Unamortized debt discount			(20,731,000)		(20,731,000)		(23,880,000)
Unamortized issuance costs			(2,337,000)		(2,337,000)		(2,692,000)
Net carrying amount			120,682,000		120,682,000		117,178,000
Convertible Debt | Convertible Senior Notes At 1.50%, Option Portion
Debt Instrument [Line Items]
Aggregate principal amount	$ 18,750,000
Stated interest rate	1.50%
Conversion ratio	0.0310073
Convertible debt, conversion price (in dollars per share) | $ / shares	$ 32.25
Denominator in calculation of trading price	$ 1,000
Conditional cash repurchase, percent of principal	100.00%
Carrying amount of the equity component	$ 33,400,000		33,350,000		33,350,000		33,350,000
Debt discount effective interest rate		7.60%
Amortization of debt issuance costs		$ 4,900,000	179,000	166,000	355,000	326,000
Amortization of debt issuance costs, liability component		3,800,000
Amortization of debt issuance costs, equity component		$ 1,100,000
Issuance costs			(1,136,000)		(1,136,000)		(1,136,000)
Net carrying amount			32,214,000		32,214,000		$ 32,214,000
Estimated fair value of the Notes			141,900,000		141,900,000
Denominator in closing price calculation			$ 100		$ 100
If-converted value, share price (in dollars per share) | $ / shares			$ 21.20		$ 21.20
If-converted value of the Notes					$ 94,500,000
Contractual interest expense			$ 539,000	539,000	1,078,000	1,078,000
Amortization of debt discount			1,590,000	1,471,000	3,149,000	2,893,000
Total interest expense			$ 2,308,000	$ 2,176,000	$ 4,582,000	$ 4,297,000
Convertible Debt | Convertible Senior Notes At 1.50%, Option Portion | Maximum
Debt Instrument [Line Items]
Convertible debt, threshold trading days | day	20
Convertible debt, threshold consecutive trading days | day	30
Percent of conversion price triggering conversion feature	130.00%
Convertible Debt | Convertible Senior Notes At 1.50%, Option Portion | Minimum
Debt Instrument [Line Items]
Convertible debt, threshold trading days | day	5
Convertible debt, threshold consecutive trading days | day	10
Percent of conversion price triggering conversion feature	98.00%

Convertible Senior Notes - Capp

Convertible Senior Notes - Capped Calls (Details) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions	1 Months Ended	6 Months Ended
	May 31, 2018	Jun. 30, 2020	Dec. 31, 2019
Debt Instrument [Line Items]
Capped Calls, initial strike price (in dollars per share)	$ 32.25
Capped Calls, initial cap price (in dollars per share)	$ 38.94
Capped Calls, number of shares covered	4.5
Payment for purchase of capped calls	$ (8,900)	$ (8,907)
Issuance costs		(1,136)
Convertible Debt | Convertible Senior Notes At 1.50%, Option Portion
Debt Instrument [Line Items]
Carrying amount of the equity component	$ 33,400	33,350	$ 33,350
Carrying amount of equity component, net of capped calls		$ 23,307

Commitments Narrative (Details)

Commitments Narrative (Details) - USD ($) $ in Millions	Jun. 30, 2020	Dec. 31, 2019
Inventories
Unrecorded Unconditional Purchase Obligation [Line Items]
Unrecorded Unconditional Purchase Obligation	$ 10	$ 9.7

Stock Option Activity (Details)

Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock Issued During Period, Shares, Employee Stock Purchase Plans	126,046	61,691	126,046	61,691
Weighted Average Exercise Price (in dollars per share):
Share-based Compensation Arrangement by Share-based Payment Award, Per Share Weighted Average Price of Shares Purchased	$ 15.60	$ 29.32	$ 15.60	$ 29.32
Stock Options
Number of Options (in shares):
Beginning balance			606,327
Options granted			0
Options exercised			(124,417)
Options canceled			(1,700)
Ending balance	480,210		480,210		606,327
Weighted Average Exercise Price (in dollars per share):
Beginning balance			$ 13.41
Options granted			0
Options exercised			10.65
Options canceled			9.40
Ending balance	$ 14.15		$ 14.15		$ 13.41
Wtd avg remaining term, Outstanding			3 years 1 month 2 days		3 years 7 months 13 days
Aggregate intrinsic value, Outstanding	$ 3,542		$ 3,542		$ 4,566

Summary of Equity B-S-M Assumpt

Summary of Equity B-S-M Assumptiuons (Details) - 2012 Employee Stock Purchase Plan - ESPP	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Equity B-S-M Fair Value Assumptions
Expected term (in years)	6 months	6 months	6 months	6 months
Dividend yield	0.00%	0.00%	0.00%	0.00%
Minimum
Equity B-S-M Fair Value Assumptions
Volatility	50.00%	33.00%
Risk-free interest rate	0.15%	2.43%
Maximum
Equity B-S-M Fair Value Assumptions
Volatility	54.10%	45.20%
Risk-free interest rate	1.59%	2.51%

Summary of Restricted Stock Act

Summary of Restricted Stock Activity (Details) - Restricted Stock Units - $ / shares	3 Months Ended	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected Term (in years)	3 years
Stock Comp-other than options - Period for Recognition- Comp cost not yet rocognized		2 years 2 months 4 days
Number of Shares:
Beginning balance		1,550,646
Granted		1,308,571
Vested		(705,835)
Forfeited		(28,158)
Ending balance	2,125,224	2,125,224
Weighted Average Grant Date Fair Value per Share (in dollars per share):
Beginning balance		$ 28.94
Granted		21.91
Vested		27.97
Forfeited		28.03
Ending balance	$ 24.95	$ 24.95
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate	42.68%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate	0.20%

Stock-based Compensation and _3

Stock-based Compensation and Awards PSU Valuation Assumptions (Details) - Restricted Stock Units	3 Months Ended
	Jun. 30, 2020$ / shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grant date fair value per share (in dollars per share)	$ 30.70
Expected term (in years)	3 years
Volatility	42.68%
Risk-free interest rate	0.20%
Dividend yield	0.00%

Share-based Compensaton Allocat

Share-based Compensaton Allocated to Expense Captions (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 6,366		$ 12,207	$ 11,653
Cost of Sales
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	1,114	$ 1,178	2,087	2,156
Research and Development Expense
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	1,023	1,034	1,989	1,856
Selling and Marketing Expense
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	1,961	1,758	3,821	3,478
General and Administrative Expense
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 2,268	$ 2,139	$ 4,310	$ 4,163

Narrative (Details)

Narrative (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
ESPP plan details [Abstract]
Stock Issued During Period, Shares, Employee Stock Purchase Plans	126,046	61,691	126,046	61,691
Share-based Compensation Arrangement by Share-based Payment Award, Per Share Weighted Average Price of Shares Purchased	$ 15.60	$ 29.32	$ 15.60	$ 29.32
Restricted stock units and Performance stock units
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract]
Share-based Payment Arrangement, Nonvested Award, Excluding Option, Cost Not yet Recognized, Amount	$ 46.6		$ 46.6
Stock Comp-other than options - Period for Recognition- Comp cost not yet rocognized			2 years 2 months 4 days
ESPP plan details [Abstract]
Granted			1,308,571
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	848,424		848,424
2012 Employee Stock Purchase Plan | ESPP
ESPP plan details [Abstract]
Common Stock, Capital Shares Reserved for Future Issuance	1,063,572		1,063,572
2012 Equity Incentive Plan | Restricted stock units and Performance stock units
ESPP plan details [Abstract]
Granted	145,877
Vesting period			3 years
Minimum | 2012 Equity Incentive Plan | Restricted stock units and Performance stock units
ESPP plan details [Abstract]
Shares issued, percentage of target			0.00%
Maximum | 2012 Equity Incentive Plan | Restricted stock units and Performance stock units
ESPP plan details [Abstract]
Shares issued, percentage of target			200.00%

Segments Operating Segments (De

Segments Operating Segments (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020USD ($)	Jun. 30, 2019USD ($)	Jun. 30, 2020USD ($)Segments	Jun. 30, 2019USD ($)
Segment Reporting Information [Line Items]
Number of reportable segments | Segments			2
Revenue
Total revenue	$ 47,347	$ 44,759	$ 88,020	$ 80,068
Cost of revenue
Total cost of revenue	17,404	17,743	34,291	33,367
Gross profit
Product	16,241	16,220	27,727	24,889
Service	13,702	10,796	26,002	21,812
Total gross profit	29,943	27,016	53,729	46,701
Calculation of pretax profit (loss) [Abstract]
Operating expenses	32,270	30,956	64,656	61,701
Interest expense, net and other	(1,185)	(997)	(2,930)	(1,708)
Loss before income taxes	(3,512)	(4,937)	(13,857)	(16,708)
Product
Revenue
Total revenue	23,951	23,132	41,801	37,135
Cost of revenue
Total cost of revenue	7,710	6,912	14,074	12,246
Service
Revenue
Total revenue	23,396	21,627	46,219	42,933
Cost of revenue
Total cost of revenue	$ 9,694	$ 10,831	$ 20,217	$ 21,121

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Income Tax Disclosure [Abstract]
Income tax expense (benefit)	$ 44	$ 80	$ (81)	$ 116
Unrecognized Tax Benefits, Reduction Resulting from Lapse of Applicable Statute of Limitations			200
Deferred payroll taxes, CARES Act	$ 300		$ 300