Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2020 | Nov. 03, 2020 | |
Entity Listings [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 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 | 32,493,391 | |
Entity Central Index Key | 0001129260 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
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 | 9 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2019 | |
Sales of short-term investments | $ 29,381 | |
Current assets | ||
Cash and cash equivalents | 31,242 | $ 25,704 |
Short-term investments | 179,995 | 204,164 |
Accounts receivable, net of allowance | 39,210 | 42,547 |
Other receivables | 6,263 | 6,312 |
Inventories | 10,451 | 4,576 |
Prepaid expenses and other current assets | 6,141 | 5,149 |
Total current assets | 273,302 | 288,452 |
Property and equipment, net | 8,070 | 8,661 |
Intangible assets, net | 13,546 | 5,461 |
Goodwill | 69,168 | 49,246 |
Deferred commissions | 11,325 | 10,477 |
Other long-term assets | 6,834 | 8,158 |
Total assets | 382,245 | 370,455 |
Current liabilities | ||
Accounts payable | 4,832 | 6,036 |
Accrued payroll and other current liabilities | 17,212 | 14,757 |
Deferred revenue, current | 47,884 | 50,033 |
Total current liabilities | 69,928 | 70,826 |
Deferred revenue, long-term | 9,524 | 11,442 |
Convertible senior notes, net | 122,511 | 117,178 |
Other long-term liabilities | 2,922 | |
Other long-term liabilities | 8,580 | 7,184 |
Total liabilities | 210,543 | 206,630 |
Commitments and contingencies (Note 9) | ||
Stockholders' equity | ||
Preferred stock, $0.0003 par value - 5,000,000 shares authorized as of September 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 September 30, 2020 and December 31, 2019; 32,431,207 and 31,660,709 shares issued and outstanding as of September 30, 2020 and December 31, 2019, respectively | 10 | 9 |
Additional paid-in capital | 330,954 | 313,963 |
Accumulated other comprehensive income | 841 | 179 |
Accumulated deficit | (160,103) | (150,326) |
Total stockholders’ equity | 171,702 | 163,825 |
Total liabilities and stockholders’ equity | $ 382,245 | $ 370,455 |
Common stock par value | $ 0.0003 | $ 0.0003 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets Condensed Consolidated Balance Sheets (Paranthetical) - $ / shares | Sep. 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 ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Revenue | ||||
Total revenue | $ 53,815 | $ 50,781 | $ 141,835 | $ 130,849 |
Cost of revenue | ||||
Total cost of revenue | 17,485 | 18,893 | 51,776 | 52,260 |
Gross profit | 36,330 | 31,888 | 90,059 | 78,589 |
Operating expenses | ||||
Research and development | 9,559 | 8,363 | 27,940 | 25,452 |
Sales and marketing | 15,291 | 15,506 | 48,252 | 47,003 |
General and administrative | 7,464 | 6,420 | 20,778 | 19,535 |
Total operating expenses | 32,314 | 30,289 | 96,970 | 91,990 |
Income (Loss) from operations | 4,016 | 1,599 | (6,911) | (13,401) |
Interest income | 645 | 1,299 | 2,678 | 3,910 |
Interest expense | (2,368) | (2,233) | (6,950) | (6,524) |
Other income (expense), net | 264 | (145) | (117) | (173) |
Income (loss) before income taxes | 2,557 | 520 | (11,300) | (16,188) |
Benefit from (provision for) income taxes | 1,604 | (222) | 1,523 | (106) |
Net income (loss) | 4,161 | 298 | (9,777) | (16,294) |
Product | ||||
Revenue | ||||
Total revenue | 28,510 | 28,511 | 70,311 | 65,646 |
Cost of revenue | ||||
Total cost of revenue | 7,139 | 8,204 | 21,213 | 20,450 |
Service | ||||
Revenue | ||||
Total revenue | 25,305 | 22,270 | 71,524 | 65,203 |
Cost of revenue | ||||
Total cost of revenue | $ 10,346 | $ 10,689 | $ 30,563 | $ 31,810 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ 4,161 | $ 298 | $ (9,777) | $ (16,294) |
Other comprehensive loss, net: | ||||
Change in unrealized gain on investments, net of tax | (188) | 37 | 662 | 756 |
Comprehensive income (loss) | $ 3,973 | $ 335 | $ (9,115) | $ (15,538) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Cash flows from operating activities | ||
Net loss | $ (9,777) | $ (16,294) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 4,470 | 5,708 |
Change in lease-related performance liabilities | (957) | (851) |
Stock-based compensation expense | 18,886 | 17,822 |
Amortization of debt discount and issuance costs | 5,333 | 4,912 |
Deferred income taxes | (2,056) | 0 |
Non-cash lease expense | 1,676 | 1,237 |
Other | 608 | (681) |
Changes in operating assets and liabilities: | ||
Accounts receivable | 3,782 | 3,361 |
Other receivables | (119) | (2,187) |
Inventories | (5,673) | (51) |
Prepaid expenses and other assets | (1,186) | (1,295) |
Deferred commissions | (847) | 336 |
Accounts payable | (1,067) | (1,206) |
Increase (Decrease) in Other Accrued Liabilities | 1,632 | (2,090) |
Deferred revenue | (5,227) | (2,453) |
Net cash used in operating activities | 9,478 | 6,268 |
Cash flows from investing activities | ||
Purchase of property and equipment | (2,890) | (2,807) |
Business acquisitions, net of cash acquired | (24,218) | 0 |
Purchase of short-term investments | (89,429) | (43,384) |
Maturities of short-term investments | 84,255 | 101,241 |
Sales of short-term investments | 29,381 | 0 |
Net cash used in investing activities | (2,901) | 55,050 |
Cash flows from financing activities | ||
Cash from lease-related performance obligations | 854 | 1,338 |
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 | 2,073 | 2,248 |
Tax withholdings paid on behalf of employees for net share settlement | (5,932) | (10,763) |
Net cash provided by financing activities | (1,039) | (5,368) |
Net increase in cash and cash equivalents | 5,538 | 55,950 |
Cash and cash equivalents at beginning of period | 25,704 | 34,276 |
Cash and cash equivalents at end of period | 31,242 | |
Supplemental disclosure of non-cash investing and financing activities: | ||
Property and equipment in accounts payable and accrued liabilities | $ 314 | $ 931 |
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 | $ (16,294) | ||||||||
Change in unrealized gain on investments, net of tax | 756 | ||||||||
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) | (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) | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 10,820 | ||||||||
Stock Issued During Period, Value, Stock Options Exercised | 157 | 157 | |||||||
Restricted Stock, Shares Issued Net of Shares for Tax Withholdings | 45,552 | ||||||||
Adjustments to Additional Paid in Capital, Other | $ (696) | $ 1 | (697) | ||||||
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 0 | ||||||||
Stock Issued During Period, Value, Employee Stock Purchase Plan | $ 6,169 | ||||||||
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | 6,169 | ||||||||
Net loss | 298 | 298 | |||||||
Change in unrealized gain on investments, net of tax | 37 | 37 | |||||||
Shares, Outstanding | 31,481,257 | ||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 158,445 | $ 10 | 306,762 | 313 | (148,640) | ||||
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 | 741,736 | ||||||||
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 126,046 | ||||||||
Net loss | $ (9,777) | ||||||||
Change in unrealized gain on investments, net of tax | 662 | ||||||||
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) | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 60,553 | ||||||||
Stock Issued During Period, Value, Stock Options Exercised | 749 | $ 1 | 748 | ||||||
Restricted Stock, Shares Issued Net of Shares for Tax Withholdings | 22,682 | ||||||||
Adjustments to Additional Paid in Capital, Other | $ (354) | $ (354) | |||||||
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 0 | ||||||||
Stock Issued During Period, Value, Employee Stock Purchase Plan | $ 6,679 | ||||||||
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | 0 | ||||||||
Net loss | 4,161 | 4,161 | |||||||
Change in unrealized gain on investments, net of tax | (188) | (188) | |||||||
Shares, Outstanding | 32,431,207 | ||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 171,702 | $ 10 | $ 330,954 | $ 841 | $ (160,103) | ||||
Carrying amount of equity component, net of capped calls | $ 23,307 |
Revenue, deferred revenue, and
Revenue, deferred revenue, and deferred commissions | 9 Months Ended |
Sep. 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 devices (“Vocera Badge” or “Smartbadge”), perpetual software licenses, professional services and subscription 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 September 30, Nine months ended September 30, (in thousands) 2020 2019 2020 2019 Product revenue Device $ 17,027 $ 19,002 $ 48,030 $ 43,566 Software 11,483 9,509 22,281 22,080 Total product 28,510 28,511 70,311 65,646 Service revenue Subscription and support 20,387 17,538 57,450 50,859 Professional services and training 4,918 4,732 14,074 14,344 Total service 25,305 22,270 71,524 65,203 Total revenue $ 53,815 $ 50,781 $ 141,835 $ 130,849 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 September 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 September 30, 2020 and December 31, 2019, contract assets totaling $4.5 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 nine months ended September 30, 2020 are as follows: (in thousands) June 30, 2020 Additions Commissions Recognized September 30, 2020 Deferred commissions $ 11,118 $ 2,064 $ (1,857) $ 11,325 (in thousands) December 31, 2019 Additions Commissions Recognized September 30, 2020 Deferred commissions $ 10,477 $ 7,180 $ (6,332) $ 11,325 Of the $11.3 million total deferred commissions balance as of September 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 nine months ended September 30, 2020 are as follows: (in thousands) June 30, 2020 Additions Revenue Recognized September 30, 2020 Deferred revenue $ 54,014 $ 25,866 $ (22,472) $ 57,408 (in thousands) December 31, 2019 Additions Revenue Recognized September 30, 2020 Deferred revenue $ 61,475 $ 58,197 $ (62,264) $ 57,408 Revenue recognized during the three and nine months ended September 30, 2020 from deferred revenue balances at the beginning of the period was $18.5 million and $46.0 million, respectively. Revenue recognized during the three and nine months ended September 30, 2019 from deferred revenue balances at the beginning of the period was $17.2 million and $40.0 million. The “contracted but not recognized” performance obligations represent the Company’s deferred revenue and non-cancelable backlog amounts. This balance as of September 30, 2020 w as $139.4 million, of which the Company expects to recognize approxi mately 70% as re venue over the next 12 months and the remainder thereafter. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 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 nine months ended September 30, 2020, there have been no transfers between Level 1 and Level 2 fair value instruments and no transfers 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. 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 September 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 agreement for the acquisition of EASE Applications includes contingent payments to the owners of EASE Applications, payable based on achievement of post-acquisition financial metrics. This contingent consideration is a Level 3 fair value measurement and the valuation of the Company’s contingent consideration obligation was estimated as the present value of total expected contingent consideration payments which are determined using a Monte Carlo simulation. This analysis reflects the contractual terms of the purchase agreements and utilizes assumptions with regard to future sales, probabilities of achieving such future sales, the likelihood and timing of expected payments and a discount rate. Significant increases with respect to assumptions as to future sales and probabilities of achieving such future sales would result in a higher fair value measurement, while an increase in the discount rate would result in a lower fair value measurement. The unobservable inputs in the valuation include revenue volatility of 12.00%, a risk free rate of 0.13%, and the amounts are expected to be paid in the first quarters of 2022 and 2023. For the three month period ended September 30, 2020, the fair value adjustment for the contingent consideration which was recorded as other income and expense was minimal. The Company’s assets that are measured at fair value on a recurring basis, by level, within the fair value hierarchy as of September 30, 2020 and December 31, 2019, are summarized as follows (in thousands): September 30, 2020 December 31, 2019 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets Money market funds $ 6,702 $ — $ 6,702 $ 4,086 $ — $ — $ 4,086 Commercial paper — 7,497 7,497 — 12,854 — 12,854 U.S. government agency securities — — — — 3,000 — 3,000 Corporate debt securities — 172,498 172,498 — 188,310 — 188,310 Total assets measured at fair value $ 6,702 $ 179,995 $ — $ 186,697 $ 4,086 $ 204,164 $ — $ 208,250 Liabilities Contingent consideration $ — $ — $ 2,170 2,170 $ — $ — $ — $ — Total liabilities measured at fair value $ — $ — $ 2,170 $ 2,170 $ — $ — $ — $ — |
Cash, Cash Equivalents and Shor
Cash, Cash Equivalents and Short-term Investments | 9 Months Ended |
Sep. 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 September 30, 2020 and December 31, 2019: As of September 30, 2020 Amortized Cost Unrealized Gains Unrealized Losses Fair value Cash and cash equivalents: Demand deposits and other cash $ 24,540 $ — $ — $ 24,540 Money market funds 6,702 — — 6,702 Total cash and cash equivalents 31,242 — — 31,242 Short-Term Investments: Commercial paper 7,494 3 — 7,497 Corporate debt securities 171,577 926 (5) 172,498 Total short-term investments 179,071 929 (5) 179,995 Total cash, cash equivalents and short-term investments $ 210,313 $ 929 $ (5) $ 211,237 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 no credit losses related to our marketable securities were required as of September 30, 2020. 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 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 September 30, 2020 Cash and cash equivalents (1) $ 31,242 $ — $ 31,242 Short-term investments 137,634 42,361 179,995 Cash, cash equivalents and short-term investments $ 168,876 $ 42,361 $ 211,237 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 | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | oss) 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 September 30, Nine months ended September 30, 2020 2019 2020 2019 Numerator: Net income (loss) $ 4,161 $ 298 $ (9,777) $ (16,294) Denominator: Weighted-average shares used to compute net income (loss) per common share - basic 32,394 31,459 32,096 31,170 Effect of potentially dilutive securities: Employee stock options, including ESPP 241 308 — — Restricted stock units and performance based restricted stock units 384 177 — — Weighted-average shares used to compute net income (loss) per common share - diluted 33,019 31,944 32,096 31,170 Net income (loss) per share Basic $ 0.13 $ 0.01 $ (0.30) $ (0.52) Diluted $ 0.13 $ 0.01 $ (0.30) $ (0.52) The following securities were not included in the calculation of diluted shares outstanding as the effect would have been anti-dilutive: Three months ended September 30, Nine months ended September 30, (in thousands) 2020 2019 2020 2019 Options to purchase common stock, including ESPP — 73 555 485 Restricted stock units and Performance stock units 450 772 1,972 1,431 |
Balance Sheet Components
Balance Sheet Components | 9 Months Ended |
Sep. 30, 2020 | |
Balance Sheet Components [Abstract] | |
Balance Sheet Components | Balance Sheet Components Inventories (in thousands) September 30, December 31, Raw materials $ 620 $ 831 Finished goods 9,831 3,745 Total inventories $ 10,451 $ 4,576 Property and equipment, net (in thousands) September 30, December 31, Computer equipment and software $ 15,087 $ 13,596 Furniture, fixtures and equipment 2,569 2,430 Leasehold improvements 5,295 5,283 Manufacturing tools and equipment 2,460 2,435 Construction in process 617 582 Property and equipment, at cost 26,028 24,326 Less: Accumulated depreciation (17,958) (15,665) Property and equipment, net $ 8,070 $ 8,661 Depreciation and amortization expense for property and equipment was $1.1 million and $0.9 million for the three months ended September 30, 2020 and 2019, respectively. Depreciation and amortization expense for property and equipment was $3.3 million and $2.7 million for the nine months ended September 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) September 30, December 31, Minimum payments to be received on sales-type leases $ 1,518 $ 2,078 Less: Unearned interest income and executory revenue portion (779) (1,190) Net investment in sales-type leases 739 888 Less: Current portion (392) (452) Non-current net investment in sales-type leases $ 347 $ 436 Sales-type lease activity recognized in the condensed consolidated statement of operations are as follows: Three months ended September 30, Nine months ended September 30, (in thousands) 2020 2019 2020 2019 Lease revenue $ 1,140 $ 2,228 $ 2,693 $ 5,592 Less: Cost of lease shipments (211) (676) (386) (1,533) Gross profit $ 929 $ 1,552 $ 2,307 $ 4,059 Interest expense, net on lease receivable $ (5) $ (5) $ (17) $ (5) Initial direct cost incurred $ 63 $ 89 $ 146 $ 229 There were no allowances for doubtful accounts on these leases as of September 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 September 30, 2020 were as follows: (in thousands) Future lease payments 2020 (remaining three months) $ 199 2021 705 2022 476 2023 138 Total $ 1,518 Accrued payroll and other current liabilities (in thousands) September 30, December 31, Payroll and related expenses $ 7,835 $ 6,053 Accrued payables 2,359 2,674 Operating lease liabilities, current portion 2,433 2,323 Lease financing, current portion 901 1,033 Product warranty 406 420 Customer prepayments 1,000 631 Sales and use tax payable 435 599 Other 1,843 1,024 Total accrued payroll and other current liabilities $ 17,212 $ 14,757 The changes in the Company’s product warranty reserve are as follows: Three months ended September 30, Nine months ended September 30, (in thousands) 2020 2019 2020 2019 Warranty balance at the beginning of the period $ 521 $ 355 $ 420 $ 376 Warranty expense accrued for shipments during the period 98 138 320 307 Changes in estimate related to pre-existing warranties (161) (45) (151) (131) Warranty settlements made (52) (47) (183) (151) Total product warranty $ 406 $ 401 $ 406 $ 401 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 four months to approximately five years. Operating lease cost, including short-term operating leases was $0.8 million and $0.6 million for the three months ended September 30, 2020 and 2019, respectively and $2.2 million and $1.7 million for the nine months ended September 30, 2020 and 2019, respectively. Supplemental balance sheet information related to leases was as follows: (in thousands) September 30, Other long-term assets $ 4,716 Accrued payroll and other current liabilities 2,433 Other long-term liabilities 2,922 Total operating lease liabilities $ 5,355 Other information related to leases was as follows: Three months ended September 30, Nine months ended September 30, (in thousands) 2020 2019 2020 2019 Supplemental Cash Flow Information Cash paid for amounts included in the measurement of lease liabilities $ 740 $ 645 $ 2,184 1,909 Right-of-use assets obtained in exchange for lease obligations $ 17 $ — $ 139 1,018 Weighted average remaining lease term 2.26 years 2.62 years 2.26 years 2.62 years Weighted average discount rate 8 % 8 % 8 % 8 % Maturities of lease liabilities as of September 30, 2020 are as follows: (in thousands) Operating leases 2020 (remaining three months) $ 693 2021 3,021 2022 1,376 2023 443 2024 319 Total maturities of lease liabilities 5,852 Less imputed interest (497) Total $ 5,355 |
Convertible Senior Notes
Convertible Senior Notes | 9 Months Ended |
Sep. 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 nine months ended September 30, 2020, the conditions allowing holders of the Notes to convert have not been met. The Notes are therefore not convertible during the nine months ended September 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) September 30, December 31, Liability: Principal $ 143,750 $ 143,750 Unamortized debt discount (19,087) (23,880) Unamortized issuance costs (2,152) (2,692) Net carrying amount $ 122,511 $ 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 September 30, 2020 was approximately $161.7 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 $29.08 on September 30, 2020, the if-converted value of the Notes of $129.6 million was less than their principal amount. Interest expense related to the Notes is as follows: Three months ended September 30, Nine months ended September 30, (in thousands) 2020 2019 2020 2019 Contractual interest expense $ 539 $ 539 $ 1,617 $ 1,617 Amortization of debt discount 1,644 1,521 4,793 4,414 Amortization of issuance costs 185 172 540 498 Total interest expense $ 2,368 $ 2,232 $ 6,950 $ 6,529 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) September 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 | 9 Months Ended |
Sep. 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 September 30, 2020 and December 31, 2019, approxi mately $7.5 million an d $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 | 9 Months Ended |
Sep. 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 nine months ended September 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 (184,970) 11.21 Options canceled (1,700) 9.40 Outstanding at September 30, 2020 419,657 $ 14.40 2.75 $ 6,159 At September 30, 2020, there was no unrecognized compensation cost related to options. As of September 30, 2020, there were 855,509 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 nine months ended September 30, 2020 employees purchased 126,046 shares of common stock at an average price of $15.60. During the nine months ended September 30, 2019 employees purchased 61,691 shares of common stock at an average price of $29.32. As of September 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 September 30, Nine months ended September 30, 2020 2019 2020 2019 Expected term (in years) 0.50 0.50 0.50 0.50 Volatility 54.1% 45.2% 50% - 54.14% 33% - 45.2% Risk-free interest rate 0.15% 2.43% 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 nine months ended September 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 1,395,557 22.28 Vested (741,736) 28.03 Forfeited (49,010) 26.58 Outstanding at September 30, 2020 2,155,457 $ 24.99 At September 30, 2020, there was $42.1 million of unrecognized compensation cost related to RSUs and PSUs, which is expected to be recognized over a weighted-average period of 1.98 years. During the second quarter of this fiscal year 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: September 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 September 30, Nine months ended September 30, (in thousands) 2020 2019 2020 2019 Cost of revenue $ 1,042 $ 1,175 $ 3,129 $ 3,331 Research and development 1,046 1,022 3,035 2,878 Sales and marketing 2,037 1,808 5,858 5,286 General and administrative 2,554 2,164 6,864 6,327 Total stock-based compensation $ 6,679 $ 6,169 $ 18,886 $ 17,822 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company recorded a $1.5 million and $(0.1) million benefit from (provision for) income taxes for the nine months ended September 30, 2020 and 2019, respectively. The benefit from income taxes for the nine months ended September 30, 2020 was primarily due to the release of a valuation allowance as a result of the acquisition of EASE Applications. The provision recorded for the nine months ended September 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 September 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. On August 18, 2020, as part of the acquisition of EASE Applications, the Company recorded $2.1 million in deferred tax liabilities, related to the intangible assets acquired. Changes in the acquiring company’s deferred tax assets or liabilities subsequent to a business combination are required to be recorded in income during the period in which the transaction occurs. The Company was able to offset these deferred tax liabilities with a release of a portion of the Company’s valuation allowance. Accordingly, the $2.1 million decrease in the Company’s net deferred tax assets resulted in the release of a corresponding $2.1 million valuation allowance and recognition of a tax benefit as of September 30, 2020. 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 |
Business Acquisitions
Business Acquisitions | 9 Months Ended |
Sep. 30, 2020 | |
Business Combinations [Abstract] | |
Business Acquisitions | Business Acquisitions Acquisition of EASE Applications, LLC On August 18, 2020, the Company acquired all of the outstanding equity interest of EASE Applications for $24.2 million in cash, net of $0.3 million of cash acquired. EASE Applications, now called Vocera Ease, offers a cloud-based communication platform and mobile application built to improve the patient experience by enabling friends and family members to receive timely updates about the progress of their loved one in the hospital. Vocera Ease enables nurses and other care team members to send Health Insurance and Portability and Accountability Act (HIPAA)-compliant texts, photos, and video updates to patients’ loved ones, putting them at ease and saving valuable time. With this acquisition, Vocera further strengthened its ability to fulfill its mission to improve the lives of patients, families and care teams. The following table presents the preliminary fair value of the identifiable assets acquired and liabilities assumed as of the acquisition date: (in thousands, except useful lives) Fair value acquired Useful life (years) Assets Current Assets Accounts receivable, net $ 444 Prepaid expenses and other current assets 18 Total current assets 462 Intangibles assets Customer relationships 5,430 8 Developed technology 2,310 3 Trademarks 660 3 Backlog 840 4 Goodwill 19,922 Total assets $ 29,624 Liabilities Current liabilities Accounts payable $ 6 Accrued payroll and other current liabilities 22 Deferred revenue, current 1,011 Total current liabilities 1,039 Deferred revenue, long term 149 Other long-term liabilities 4,218 Total liabilities 5,406 Net assets acquired $ 24,218 The estimated fair values of identifiable intangible assets were primarily determined using discounted cash flow models. The estimation of the fair value of the intangible assets required the use of valuation techniques and entailed consideration of all the relevant factors that might affect the fair value, such as present value factors and estimates of future revenues and costs. The amortization of developed technology and backlog is recorded in "cost of revenues" for product and the amortization for the remaining intangibles is recorded in "sales and marketing" expenses on the consolidated statement of operations. The excess of the acquisition consideration over the fair values of the underlying net assets acquired was recorded as goodwill. Goodwill is largely attributed to the synergy of EASE Applications proprietary solutions with the Company’s existing customer base, dedicated sales force and cross selling opportunities with the Company’s other solutions. Goodwill is not amortized but instead is tested for impairment at least annually or more frequently if indicators of impairment are present. The agreement also included contingent payments to the owners of EASE Applications, payable based on achievement of post-acquisition financial metrics as of December 31, 2021 and December 31, 2022. If these financial metrics are achieved the Company will owe additional purchase price consideration of $2.5 million as of December 31, 2021 and 2022. This contingent consideration was fair valued in connection with the acquisition and resulted in a liability of $2.2 million as of the acquisition date. The estimated fair value was determined using a Monte Carlo valuation model. The fair value of this liability will be remeasured each reporting period and the change in fair value will be recorded as other income and expense. For the three month period ended September 30, 2020 this fair value adjustment was minimal. The Company incurred $0.5 million of acquisition-related costs that were expensed as incurred. These costs are recorded as general and administrative expenses in the consolidated statement of operations. Additionally, in connection with the acquisition the Company established a retention bonus plan for continuing EASE Applications employees with potential additional compensation over a two-year period of approximately $5.0 million, based on achievement of financial metrics and continued employment. Such amounts are not considered part of the purchase consideration and are being recorded as compensation expense as earned. During the three-months ended September 30, 2020, $0.4 million of this retention bonus was recorded as compensation expense. The acquisition did not result in material contributions to revenue or net income in the consolidated financial statements at the acquisition date. Additionally, pro forma financial information is not provided for consolidated revenue and net income as such amounts attributable to EASE Applications were insignificant. |
The Company and Summary of Sign
The Company and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 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 majority of the Company’s revenue comes from the sale of its communication and collaboration solution which includes: an intelligent enterprise software platform; the lightweight, wearable, voice-controlled communication Badge and 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. The Company also offers a range of SaaS solutions focused on patient and family experience, staff engagement and operational quality across the continuum of care from pre-arrival through post-discharge. |
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. 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 | 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, contingent consideration 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. Recent Accounting Pronouncements In August 2020, the FASB issued new guidance to simplify the accounting for convertible instruments by removing certain separation models. Under the amendments, the embedded conversion features are no longer separated from the host contract for convertible instruments with conversion features that are not required to be accounted for as derivatives, or that do not result in substantial premiums accounted for as paid-in capital. A convertible debt instrument will be accounted for as a single liability measured at its amortized cost and a convertible preferred stock will be accounted for as a single equity instrument measured at its historical cost, as long as no other features require bifurcation and recognition as derivatives. The guidance will be effective beginning January 1, 2022. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020. The Company is currently evaluating the impact of this new guidance on its 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 nine months ended September 30, 2020, there have been no transfers between Level 1 and Level 2 fair value instruments and no transfers 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. 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 September 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 agreement for the acquisition of EASE Applications includes contingent payments to the owners of EASE Applications, payable based on achievement of post-acquisition financial metrics. This contingent consideration is a Level 3 fair value measurement and the valuation of the Company’s contingent consideration obligation was estimated as the present value of total expected contingent consideration payments which are determined using a Monte Carlo simulation. This analysis reflects the contractual terms of the purchase agreements and utilizes assumptions with regard to future sales, probabilities of achieving such future sales, the likelihood and timing of expected payments and a discount rate. Significant increases with respect to assumptions as to future sales and probabilities of achieving such future sales would result in a higher fair value measurement, while an increase in the discount rate would result in a lower fair value measurement. The unobservable inputs in the valuation include revenue volatility of 12.00%, a risk free rate of 0.13%, and the amounts are expected to be paid in the first quarters of 2022 and 2023. For the three month period ended September 30, 2020, the fair value adjustment for the contingent consideration which was recorded as other income and expense was minimal. |
Intangible Assets, Policy | Goodwill As of September 30, 2020 and December 31, 2019, the Company had $69.2 million and $49.2 million of goodwill, respectively. The addition to goodwill during the three and nine months ended September 30, 2020 of $19.9 million was based on the purchase price allocations of the acquisition completed during the three months ended September 30, 2020 (See Note 12). As of September 30, 2020, there were no changes in circumstances indicating that the carrying values of goodwill or acquired intangibles may not be recoverable. Intangible Assets |
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 September 30, 2020 and December 31, 2019, approxi mately $7.5 million an d $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 | Segment Reporting Beginning in the third quarter of fiscal year 2020, the Company’s chief operating decision maker (CODM) receives and regularly reviews financial information on an entity-wide basis. This change coincided with the Company’s acquisition of EASE, and resulted in the CODM considering entity-wide financial information in deciding how to allocate resources and in assessing performance of the Company’s communication and clinical workflow solutions and services business. There are no segment managers who are held accountable for operations, operating results or plans for levels or components. The Company’s CODM is its Chief Executive Officer. As a result, beginning in the third quarter of fiscal year 2020, the Company reports its financial performance consistent with its single reporting segment and operating unit structure. For comparability |
Revenue, deferred revenue, an_2
Revenue, deferred revenue, and deferred commissions (Tables) | 9 Months Ended |
Sep. 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 devices (“Vocera Badge” or “Smartbadge”), perpetual software licenses, professional services and subscription 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 September 30, Nine months ended September 30, (in thousands) 2020 2019 2020 2019 Product revenue Device $ 17,027 $ 19,002 $ 48,030 $ 43,566 Software 11,483 9,509 22,281 22,080 Total product 28,510 28,511 70,311 65,646 Service revenue Subscription and support 20,387 17,538 57,450 50,859 Professional services and training 4,918 4,732 14,074 14,344 Total service 25,305 22,270 71,524 65,203 Total revenue $ 53,815 $ 50,781 $ 141,835 $ 130,849 |
Contract with Customer, Asset and Liability | 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 September 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 September 30, 2020 and December 31, 2019, contract assets totaling $4.5 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 nine months ended September 30, 2020 are as follows: (in thousands) June 30, 2020 Additions Commissions Recognized September 30, 2020 Deferred commissions $ 11,118 $ 2,064 $ (1,857) $ 11,325 (in thousands) December 31, 2019 Additions Commissions Recognized September 30, 2020 Deferred commissions $ 10,477 $ 7,180 $ (6,332) $ 11,325 Of the $11.3 million total deferred commissions balance as of September 30, 2020, the Company expects to recognize approximately 49% as commission expense over the next 12 months and the remainder thereafter. Deferred revenue |
Fair Value of Financial Insturm
Fair Value of Financial Insturments (Tables) | 9 Months Ended |
Sep. 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 September 30, 2020 and December 31, 2019, are summarized as follows (in thousands): September 30, 2020 December 31, 2019 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets Money market funds $ 6,702 $ — $ 6,702 $ 4,086 $ — $ — $ 4,086 Commercial paper — 7,497 7,497 — 12,854 — 12,854 U.S. government agency securities — — — — 3,000 — 3,000 Corporate debt securities — 172,498 172,498 — 188,310 — 188,310 Total assets measured at fair value $ 6,702 $ 179,995 $ — $ 186,697 $ 4,086 $ 204,164 $ — $ 208,250 Liabilities Contingent consideration $ — $ — $ 2,170 2,170 $ — $ — $ — $ — Total liabilities measured at fair value $ — $ — $ 2,170 $ 2,170 $ — $ — $ — $ — |
Cash, Cash Equivalents and Sh_2
Cash, Cash Equivalents and Short-term Investments (Tables) | 9 Months Ended |
Sep. 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 September 30, 2020 and December 31, 2019: As of September 30, 2020 Amortized Cost Unrealized Gains Unrealized Losses Fair value Cash and cash equivalents: Demand deposits and other cash $ 24,540 $ — $ — $ 24,540 Money market funds 6,702 — — 6,702 Total cash and cash equivalents 31,242 — — 31,242 Short-Term Investments: Commercial paper 7,494 3 — 7,497 Corporate debt securities 171,577 926 (5) 172,498 Total short-term investments 179,071 929 (5) 179,995 Total cash, cash equivalents and short-term investments $ 210,313 $ 929 $ (5) $ 211,237 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 September 30, 2020 Cash and cash equivalents (1) $ 31,242 $ — $ 31,242 Short-term investments 137,634 42,361 179,995 Cash, cash equivalents and short-term investments $ 168,876 $ 42,361 $ 211,237 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) | 9 Months Ended |
Sep. 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 September 30, Nine months ended September 30, 2020 2019 2020 2019 Numerator: Net income (loss) $ 4,161 $ 298 $ (9,777) $ (16,294) Denominator: Weighted-average shares used to compute net income (loss) per common share - basic 32,394 31,459 32,096 31,170 Effect of potentially dilutive securities: Employee stock options, including ESPP 241 308 — — Restricted stock units and performance based restricted stock units 384 177 — — Weighted-average shares used to compute net income (loss) per common share - diluted 33,019 31,944 32,096 31,170 Net income (loss) per share Basic $ 0.13 $ 0.01 $ (0.30) $ (0.52) Diluted $ 0.13 $ 0.01 $ (0.30) $ (0.52) |
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 September 30, Nine months ended September 30, (in thousands) 2020 2019 2020 2019 Options to purchase common stock, including ESPP — 73 555 485 Restricted stock units and Performance stock units 450 772 1,972 1,431 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Sep. 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: September 30, 2020 December 31, 2019 (in thousands) Weighted Average Gross Accumulated Net Gross Accumulated Net Developed technology 3.9 $ 12,360 $ 10,023 $ 2,337 $ 10,050 $ 9,803 $ 247 Customer relationships 8.0 16,350 6,705 9,645 10,920 5,819 5,101 Backlog 3.4 2,240 1,310 930 1,400 1,287 113 Non-compete agreements 460 460 — 460 460 — Trademarks 3.0 1,770 1,136 634 1,110 1,110 — Intangible assets, net book value $ 33,180 $ 19,634 $ 13,546 $ 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 September 30, 2020 was as follows: (in thousands) Future amortization 2020 (remaining three months) $ 863 2021 3,244 2022 2,965 2023 2,444 2024 1,564 2025 679 Thereafter 1,787 Future amortization expense $ 13,546 |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Balance Sheet Components [Abstract] | |
Inventories | Inventories (in thousands) September 30, December 31, Raw materials $ 620 $ 831 Finished goods 9,831 3,745 Total inventories $ 10,451 $ 4,576 |
Property and Equipment | Property and equipment, net (in thousands) September 30, December 31, Computer equipment and software $ 15,087 $ 13,596 Furniture, fixtures and equipment 2,569 2,430 Leasehold improvements 5,295 5,283 Manufacturing tools and equipment 2,460 2,435 Construction in process 617 582 Property and equipment, at cost 26,028 24,326 Less: Accumulated depreciation (17,958) (15,665) Property and equipment, net $ 8,070 $ 8,661 |
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) September 30, December 31, Minimum payments to be received on sales-type leases $ 1,518 $ 2,078 Less: Unearned interest income and executory revenue portion (779) (1,190) Net investment in sales-type leases 739 888 Less: Current portion (392) (452) Non-current net investment in sales-type leases $ 347 $ 436 Sales-type lease activity recognized in the condensed consolidated statement of operations are as follows: Three months ended September 30, Nine months ended September 30, (in thousands) 2020 2019 2020 2019 Lease revenue $ 1,140 $ 2,228 $ 2,693 $ 5,592 Less: Cost of lease shipments (211) (676) (386) (1,533) Gross profit $ 929 $ 1,552 $ 2,307 $ 4,059 Interest expense, net on lease receivable $ (5) $ (5) $ (17) $ (5) Initial direct cost incurred $ 63 $ 89 $ 146 $ 229 |
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 September 30, 2020 were as follows: (in thousands) Future lease payments 2020 (remaining three months) $ 199 2021 705 2022 476 2023 138 Total $ 1,518 |
Accrued Liabilities | Accrued payroll and other current liabilities (in thousands) September 30, December 31, Payroll and related expenses $ 7,835 $ 6,053 Accrued payables 2,359 2,674 Operating lease liabilities, current portion 2,433 2,323 Lease financing, current portion 901 1,033 Product warranty 406 420 Customer prepayments 1,000 631 Sales and use tax payable 435 599 Other 1,843 1,024 Total accrued payroll and other current liabilities $ 17,212 $ 14,757 |
Schedule of Product Warranty Liability | The changes in the Company’s product warranty reserve are as follows: Three months ended September 30, Nine months ended September 30, (in thousands) 2020 2019 2020 2019 Warranty balance at the beginning of the period $ 521 $ 355 $ 420 $ 376 Warranty expense accrued for shipments during the period 98 138 320 307 Changes in estimate related to pre-existing warranties (161) (45) (151) (131) Warranty settlements made (52) (47) (183) (151) Total product warranty $ 406 $ 401 $ 406 $ 401 |
Information Related to Leases | Supplemental balance sheet information related to leases was as follows: (in thousands) September 30, Other long-term assets $ 4,716 Accrued payroll and other current liabilities 2,433 Other long-term liabilities 2,922 Total operating lease liabilities $ 5,355 Other information related to leases was as follows: Three months ended September 30, Nine months ended September 30, (in thousands) 2020 2019 2020 2019 Supplemental Cash Flow Information Cash paid for amounts included in the measurement of lease liabilities $ 740 $ 645 $ 2,184 1,909 Right-of-use assets obtained in exchange for lease obligations $ 17 $ — $ 139 1,018 Weighted average remaining lease term 2.26 years 2.62 years 2.26 years 2.62 years Weighted average discount rate 8 % 8 % 8 % 8 % |
Convertible Senior Notes (Table
Convertible Senior Notes (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Notes | The Notes consist of the following: (in thousands) September 30, December 31, Liability: Principal $ 143,750 $ 143,750 Unamortized debt discount (19,087) (23,880) Unamortized issuance costs (2,152) (2,692) Net carrying amount $ 122,511 $ 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 September 30, Nine months ended September 30, (in thousands) 2020 2019 2020 2019 Contractual interest expense $ 539 $ 539 $ 1,617 $ 1,617 Amortization of debt discount 1,644 1,521 4,793 4,414 Amortization of issuance costs 185 172 540 498 Total interest expense $ 2,368 $ 2,232 $ 6,950 $ 6,529 |
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) September 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) | 9 Months Ended |
Sep. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Rollforward of stock option activity | A summary of the stock option activity for the nine months ended September 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 (184,970) 11.21 Options canceled (1,700) 9.40 Outstanding at September 30, 2020 419,657 $ 14.40 2.75 $ 6,159 |
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 September 30, Nine months ended September 30, 2020 2019 2020 2019 Expected term (in years) 0.50 0.50 0.50 0.50 Volatility 54.1% 45.2% 50% - 54.14% 33% - 45.2% Risk-free interest rate 0.15% 2.43% 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 nine months ended September 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 1,395,557 22.28 Vested (741,736) 28.03 Forfeited (49,010) 26.58 Outstanding at September 30, 2020 2,155,457 $ 24.99 |
PSU Valuation Assumptions | The assumptions used in the Monte Carlo valuation model to value the PSUs were as follows: September 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 September 30, Nine months ended September 30, (in thousands) 2020 2019 2020 2019 Cost of revenue $ 1,042 $ 1,175 $ 3,129 $ 3,331 Research and development 1,046 1,022 3,035 2,878 Sales and marketing 2,037 1,808 5,858 5,286 General and administrative 2,554 2,164 6,864 6,327 Total stock-based compensation $ 6,679 $ 6,169 $ 18,886 $ 17,822 |
Business Acquisition (Tables)
Business Acquisition (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Business Combinations [Abstract] | |
Schedule of Identifiable Assets Acquired and Liabilities Assumed | The following table presents the preliminary fair value of the identifiable assets acquired and liabilities assumed as of the acquisition date: (in thousands, except useful lives) Fair value acquired Useful life (years) Assets Current Assets Accounts receivable, net $ 444 Prepaid expenses and other current assets 18 Total current assets 462 Intangibles assets Customer relationships 5,430 8 Developed technology 2,310 3 Trademarks 660 3 Backlog 840 4 Goodwill 19,922 Total assets $ 29,624 Liabilities Current liabilities Accounts payable $ 6 Accrued payroll and other current liabilities 22 Deferred revenue, current 1,011 Total current liabilities 1,039 Deferred revenue, long term 149 Other long-term liabilities 4,218 Total liabilities 5,406 Net assets acquired $ 24,218 |
The Company and Summary of Si_2
The Company and Summary of Significant Accounting Policies Narrative (Details) $ in Thousands | Sep. 30, 2020USD ($) |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Total operating lease liabilities | $ 5,355 |
Revenue, deferred revenue, an_3
Revenue, deferred revenue, and deferred commissions - Consolidated Balance Sheet (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Other receivables | $ 6,263 | $ 6,312 | |
Deferred revenue, current | 47,884 | 50,033 | |
Deferred revenue, long-term | 9,524 | 11,442 | |
Total deferred revenue | 57,408 | $ 54,014 | 61,475 |
Stockholders' equity | $ 171,702 | $ 163,825 |
Revenue, deferred revenue, an_4
Revenue, deferred revenue, and deferred commissions - Consolidated Statement of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Revenue | ||||||||
Total revenue | $ 53,815 | $ 50,781 | $ 141,835 | $ 130,849 | ||||
Gross Profit | 36,330 | 31,888 | 90,059 | 78,589 | ||||
Operating expenses | 32,314 | 30,289 | 96,970 | 91,990 | ||||
Operating Income (Loss) | 4,016 | 1,599 | (6,911) | (13,401) | ||||
Net loss | 4,161 | $ (3,468) | $ (10,470) | 298 | $ (4,857) | $ (11,735) | (9,777) | (16,294) |
Product | ||||||||
Revenue | ||||||||
Total revenue | 28,510 | 28,511 | 70,311 | 65,646 | ||||
Service | ||||||||
Revenue | ||||||||
Total revenue | $ 25,305 | $ 22,270 | $ 71,524 | $ 65,203 |
Revenue, deferred revenue, an_5
Revenue, deferred revenue, and deferred commissions - Cash Flows From Operating Activities (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||||
Net loss | $ 4,161 | $ (3,468) | $ (10,470) | $ 298 | $ (4,857) | $ (11,735) | $ (9,777) | $ (16,294) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
Deferred commissions | (847) | 336 | ||||||
Deferred revenue | $ (5,227) | $ (2,453) |
Revenue, deferred revenue, an_6
Revenue, deferred revenue, and deferred commissions - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total revenue | $ 53,815 | $ 50,781 | $ 141,835 | $ 130,849 |
Product Segment [Member] | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total revenue | 28,510 | 28,511 | 70,311 | 65,646 |
Product Segment [Member] | Software [Member] | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total revenue | 11,483 | 9,509 | 22,281 | 22,080 |
Product Segment [Member] | Device [Member] | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total revenue | 17,027 | 19,002 | 48,030 | 43,566 |
Service Segment [Member] | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total revenue | 25,305 | 22,270 | 71,524 | 65,203 |
Service Segment [Member] | Maintenance and Support [Member] | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total revenue | 20,387 | 17,538 | 57,450 | 50,859 |
Service Segment [Member] | Professional Services and Training [Member] | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total revenue | $ 4,918 | $ 4,732 | $ 14,074 | $ 14,344 |
Revenue, deferred revenue, an_7
Revenue, deferred revenue, and deferred commissions - Significant Changes in Deferred Commissions (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2020 | Sep. 30, 2020 | |
Change in Contract with Customer, Asset [Roll Forward] | ||
Beginning balance | $ 11,118 | $ 10,477 |
Additions | 2,064 | 7,180 |
Commissions Recognized | (1,857) | (6,332) |
Ending balance | $ 11,325 | $ 11,325 |
Revenue, deferred revenue, an_8
Revenue, deferred revenue, and deferred commissions - Significant Changes in Deferred Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | ||||
Revenue recognized pertaining to amounts deferred as of Beginning of Period | $ 18,500 | $ 46,000 | ||
Revenue recognized pertaining to amounts deferred as of End of Period | $ 17,200 | $ 40,000 | ||
Change in Contract with Customer, Liability [Roll Forward] | ||||
Beginning balance | 54,014 | 61,475 | ||
Additions | 25,866 | 58,197 | ||
Revenue Recognized | (22,472) | (62,264) | ||
Ending balance | $ 57,408 | $ 57,408 |
Revenue, deferred revenue, an_9
Revenue, deferred revenue, and deferred commissions - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Jun. 30, 2020 | Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | ||||||
Payment terms on invoiced amounts | 30 days | |||||
Deferred commissions | $ 11,325 | $ 11,325 | $ 11,118 | $ 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 | $ 18,500 | $ 46,000 | ||||
Revenue recognized pertaining to amounts deferred as of End of Period | $ 17,200 | $ 40,000 | ||||
Deferred revenue and backlog | $ 139,400 | $ 139,400 | ||||
Percentage of deferred revenue to be recognized over the next 12 months | 70.00% | 70.00% | ||||
Contract with Customer, Asset, before Allowance for Credit Loss | $ 4,500 | $ 4,500 | $ 4,300 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Details) | 9 Months Ended | |
Sep. 30, 2020USD ($) | Dec. 31, 2019USD ($) | |
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 | 31,242,000 | $ 25,704,000 |
Short-term investments | $ 179,995,000 | 204,164,000 |
Measurement Input, Revenue Volatility | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration liability, unobservable inputs | 0.1200 | |
Measurement Input, Risk Free Interest Rate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration liability, unobservable inputs | 0.0013 | |
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 | $ 172,498,000 | 188,310,000 |
Fair Value, Measurements, Recurring | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total assets measured at fair value | 186,697,000 | 208,250,000 |
Contingent consideration | 2,170,000 | 0 |
Total liabilities measured at fair value | 2,170,000 | 0 |
Fair Value, Measurements, Recurring | Level 1 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total assets measured at fair value | 6,702,000 | 4,086,000 |
Contingent consideration | 0 | 0 |
Total liabilities measured at fair value | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total assets measured at fair value | 179,995,000 | 204,164,000 |
Contingent consideration | 0 | 0 |
Total liabilities measured at fair value | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Contingent consideration | 2,170,000 | 0 |
Total liabilities measured at fair value | 2,170,000 | 0 |
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 | 172,498,000 | 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 | 172,498,000 | 188,310,000 |
Fair Value, Measurements, Recurring | Money market funds | ||
Assets, Fair Value Disclosure [Abstract] | ||
Cash and cash equivalents | 6,702,000 | 4,086,000 |
Fair Value, Measurements, Recurring | Money market funds | Level 1 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Cash and cash equivalents | 6,702,000 | 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 | 7,497,000 | 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 | $ 7,497,000 | $ 12,854,000 |
Schedule of Available for Sale
Schedule of Available for Sale Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Cash and cash equivalents [Abstract] | ||
Cash and Cash Equivalents, Amortized Cost | $ 31,242 | $ 25,704 |
Cash And Cash Equivalents, Gross Unrealized Gains | 0 | 0 |
Cash And Cash Equivalents, Gross Unrealized Losses | 0 | 0 |
Cash and cash equivalents | 31,242 | 25,704 |
Short-term Investments [Abstract] | ||
AFS Securities, Amortized Cost Basis | 179,071 | 203,727 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 929 | 499 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 5 | 62 |
Short-term investments | 179,995 | 204,164 |
Cash, Cash Equivalents, and Short-term Investments [Abstract] | ||
Cash, Cash Equiv. And S-T Investments, Amortized Cost | 210,313 | 229,431 |
Cash, Cash Equivalents And Short Term Investments, Unrealized Gains | 929 | 499 |
Cash, Cash Equivalents And Short Term Investments, Unrealized Losses | 5 | 62 |
Cash, cash equivalents and short-term investments | 211,237 | 229,868 |
Demand deposits and other cash | ||
Cash and cash equivalents [Abstract] | ||
Cash and Cash Equivalents, Amortized Cost | 24,540 | 21,618 |
Cash And Cash Equivalents, Gross Unrealized Gains | 0 | 0 |
Cash And Cash Equivalents, Gross Unrealized Losses | 0 | 0 |
Cash and cash equivalents | 24,540 | 21,618 |
Money market funds | ||
Cash and cash equivalents [Abstract] | ||
Cash and Cash Equivalents, Amortized Cost | 6,702 | 4,086 |
Cash And Cash Equivalents, Gross Unrealized Gains | 0 | 0 |
Cash And Cash Equivalents, Gross Unrealized Losses | 0 | 0 |
Cash and cash equivalents | 6,702 | 4,086 |
Commercial paper in STI | ||
Short-term Investments [Abstract] | ||
AFS Securities, Amortized Cost Basis | 7,494 | 12,861 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 3 | 0 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 0 | 7 |
Short-term investments | 7,497 | 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 | 171,577 | 187,866 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 926 | 499 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 5 | 55 |
Short-term investments | $ 172,498 | $ 188,310 |
Contractual maturities of cash,
Contractual maturities of cash, cash equivalent and short-term investment (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Debt Securities, Available-for-sale [Line Items] | ||
Cash and cash equivalents | $ 31,242 | $ 25,704 |
Short-term investments | 179,995 | 204,164 |
Cash, cash equivalents and short-term investments | 211,237 | 229,868 |
Maturity up to one year | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cash and cash equivalents | 31,242 | 25,704 |
Short-term investments | 137,634 | 113,010 |
Cash, cash equivalents and short-term investments | 168,876 | 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 | 42,361 | 91,154 |
Cash, cash equivalents and short-term investments | $ 42,361 | $ 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 | 9 Months Ended | ||||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Numerator: | ||||||||
Net loss | $ 4,161 | $ (3,468) | $ (10,470) | $ 298 | $ (4,857) | $ (11,735) | $ (9,777) | $ (16,294) |
Denominator: | ||||||||
Weighted-average shares used to compute net income (loss) per common share - basic (in shares) | 32,394 | 31,459 | 32,096 | 31,170 | ||||
Weighted-average shares used to compute net income (loss) per common share - diluted (in shares) | 33,019 | 31,944 | 32,096 | 31,170 | ||||
Net income (loss) per share | ||||||||
Basic (in dollars per share) | $ 0.13 | $ 0.01 | $ (0.30) | $ (0.52) | ||||
Diluted (in dollars per share) | $ 0.13 | $ 0.01 | $ (0.30) | $ (0.52) | ||||
Stock options | ||||||||
Denominator: | ||||||||
Effect of potentially dilutive securities (in shares) | 241 | 308 | 0 | 0 | ||||
Restricted stock units and Performance stock units | ||||||||
Denominator: | ||||||||
Effect of potentially dilutive securities (in shares) | 384 | 177 | 0 | 0 |
Schedule of antidilutive securi
Schedule of antidilutive securities excluded from computation of earnings per share (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 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 | 0 | 73 | 555 | 485 |
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 | 450 | 772 | 1,972 | 1,431 |
Schedule of Finite-Lived Intang
Schedule of Finite-Lived Intangible Assets (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2019 | |
Finite-Lived Intangible Assets [Line Items] | ||
2022 | $ 2,965 | |
2023 | 2,444 | |
2024 | 1,564 | |
2025 | 679 | |
2020 (remaining three months) | 863 | |
Accumulated Amortization | 19,634 | $ 18,479 |
Future amortization expense | 13,546 | |
Intangible assets, gross | 33,180 | 23,940 |
Intangible assets, net book value | $ 13,546 | 5,461 |
Developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Useful Life | 3 years 10 months 24 days | |
Gross Carrying Amount | $ 12,360 | 10,050 |
Accumulated Amortization | 10,023 | 9,803 |
Future amortization expense | $ 2,337 | 247 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Useful Life | 8 years | |
Gross Carrying Amount | $ 16,350 | 10,920 |
Accumulated Amortization | 6,705 | 5,819 |
Future amortization expense | $ 9,645 | 5,101 |
Backlog | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Useful Life | 3 years 4 months 24 days | |
Gross Carrying Amount | $ 2,240 | 1,400 |
Accumulated Amortization | 1,310 | 1,287 |
Future amortization expense | 930 | 113 |
Non-compete agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 460 | 460 |
Accumulated Amortization | 460 | 460 |
Future amortization expense | $ 0 | 0 |
Trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Useful Life | 3 years | |
Gross Carrying Amount | $ 1,770 | 1,110 |
Accumulated Amortization | 1,136 | 1,110 |
Future amortization expense | $ 634 | $ 0 |
Future amortization schedule (D
Future amortization schedule (Details) $ in Thousands | Sep. 30, 2020USD ($) |
Goodwill and intangible assets [Abstract] | |
2020 (remaining three months) | $ 863 |
2021 | 3,244 |
2022 | 2,965 |
2023 | 2,444 |
2024 | 1,564 |
2025 | 679 |
Thereafter | 1,787 |
Future amortization expense | $ 13,546 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Goodwill | $ 69,168 | $ 69,168 | $ 49,246 | ||
Addition to goodwill | 19,900 | 19,900 | |||
Intangibles - period amortization expense [Abstract] | |||||
Amortization expense | $ 500 | $ 1,000 | $ 1,200 | $ 3,000 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Inventory, Net [Abstract] | ||
Raw materials | $ 620 | $ 831 |
Finished goods | 9,831 | 3,745 |
Total inventories | $ 10,451 | $ 4,576 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Property, Plant and Equipment [Line Items] | |||||
Property, Plant and Equipment, Gross | $ 26,028 | $ 26,028 | $ 24,326 | ||
Less: Accumulated depreciation | (17,958) | (17,958) | (15,665) | ||
Property and equipment, net | 8,070 | 8,070 | 8,661 | ||
Depreciation, Depletion and Amortization [Abstract] | |||||
Depreciation | 1,100 | $ 900 | 3,300 | $ 2,700 | |
Computer equipment and software | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, Plant and Equipment, Gross | 15,087 | 15,087 | 13,596 | ||
Furniture, fixtures and equipment | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, Plant and Equipment, Gross | 2,569 | 2,569 | 2,430 | ||
Leasehold improvements | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, Plant and Equipment, Gross | 5,295 | 5,295 | 5,283 | ||
Manufacturing tools and equipment | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, Plant and Equipment, Gross | 2,460 | 2,460 | 2,435 | ||
Construction in process | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, Plant and Equipment, Gross | $ 617 | $ 617 | $ 582 |
Investment in Sales Type Leases
Investment in Sales Type Leases (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2019 | |
Capital Leased Assets [Line Items] | ||
Total | $ 1,518 | $ 2,078 |
Sales-type and Direct Financing Leases, Lease Receivable, Undiscounted Excess Amount | 779 | 1,190 |
Net Investment in Lease | 739 | 888 |
Net Investment in Lease, Current | 392 | 452 |
Net Investment in Lease, Noncurrent | $ 347 | $ 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 | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Balance Sheet Components [Abstract] | ||||
Lease revenue | $ 1,140 | $ 2,228 | $ 2,693 | $ 5,592 |
Less: Cost of lease shipments | (211) | (676) | (386) | (1,533) |
Gross profit | 929 | 1,552 | 2,307 | 4,059 |
Sales-type Lease, Interest Income, Lease Receivable | (5) | (5) | (17) | (5) |
Initial direct cost incurred | $ 63 | $ 89 | $ 146 | $ 229 |
Future payments- sales type lea
Future payments- sales type leases (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Balance Sheet Components [Abstract] | ||
2020 (remaining three months) | $ 199 | |
2021 | 705 | |
2022 | 476 | |
2023 | 138 | |
Total | $ 1,518 | $ 2,078 |
Accrued Liabilities (Details)
Accrued Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Accrued Liabilities, Current [Abstract] | ||
Payroll and related expenses | $ 7,835 | $ 6,053 |
Accrued payables | 2,359 | 2,674 |
Accrued payroll and other current liabilities | 2,433 | 2,323 |
Lease financing, current portion | 901 | 1,033 |
Product warranty | 406 | 420 |
Customer Refund Liability, Current | 1,000 | 631 |
Sales and use tax payable | 435 | 599 |
Other | 1,843 | 1,024 |
Total accrued payroll and other current liabilities | $ 17,212 | $ 14,757 |
Schedule of Product Liability (
Schedule of Product Liability (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2018 | |
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward] | |||||
Product warranty accrual, at the beginning of the period | $ 521 | $ 355 | $ 420 | ||
Warranty expenses accrued | 98 | 138 | 320 | $ 307 | |
Product Warranty Accrual, Preexisting, Increase (Decrease) | (161) | (45) | (151) | (131) | |
Warranty settlements made | (52) | (47) | (183) | (151) | |
Product Warranty Accrual | $ 406 | $ 401 | $ 406 | $ 401 | $ 376 |
Balance Sheet Components Leases
Balance Sheet Components Leases (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Condensed Balance Sheet Statements, Captions [Line Items] | ||||
Other long-term assets | $ 0.8 | $ 0.6 | $ 2.2 | $ 1.7 |
Minimum | ||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||
Operating lease remaining term (years) | 4 months | 4 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 | Sep. 30, 2020 | Dec. 31, 2019 |
Balance Sheet Components [Abstract] | ||
Accrued payroll and other current liabilities | $ 2,433 | $ 2,323 |
Other long-term liabilities | 2,922 | |
Total operating lease liabilities | 5,355 | |
Other Assets, Miscellaneous, Noncurrent | $ 4,716 |
Balance Sheet Components Other
Balance Sheet Components Other Information Related to Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Balance Sheet Components [Abstract] | ||||
Cash paid for amounts included in the measurement of lease liabilities | $ 740 | $ 645 | $ 2,184 | $ 1,909 |
Right-of-use assets obtained in exchange for lease obligations | $ 17 | $ 0 | $ 139 | $ 1,018 |
Weighted average remaining lease term | 2 years 3 months 3 days | 2 years 7 months 13 days | 2 years 3 months 3 days | 2 years 7 months 13 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 | Sep. 30, 2020USD ($) |
Balance Sheet Components [Abstract] | |
2020 (remaining three months) | $ 693 |
2021 | 3,021 |
2022 | 1,376 |
2023 | 443 |
2024 | 319 |
Total maturities of lease liabilities | 5,852 |
Less imputed interest | (497) |
Total operating lease liabilities | $ 5,355 |
Convertible Senior Notes - Conv
Convertible Senior Notes - Convertible Notes and Options (Details) | 1 Months Ended | 2 Months Ended | 3 Months Ended | 9 Months Ended | |||
May 31, 2018USD ($)day$ / shares | Jun. 30, 2018USD ($) | Sep. 30, 2020USD ($)$ / shares | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($)$ / shares | Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($) | |
Debt Instrument [Line Items] | |||||||
Net carrying amount | $ 122,511,000 | $ 122,511,000 | $ 117,178,000 | ||||
Total interest expense | 2,368,000 | $ 2,233,000 | 6,950,000 | $ 6,524,000 | |||
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 | (19,087,000) | (19,087,000) | (23,880,000) | ||||
Unamortized issuance costs | (2,152,000) | (2,152,000) | (2,692,000) | ||||
Net carrying amount | 122,511,000 | 122,511,000 | 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 | 185,000 | 172,000 | 540,000 | 498,000 | ||
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 | 161,700,000 | 161,700,000 | |||||
Denominator in closing price calculation | $ 100 | $ 100 | |||||
If-converted value, share price (in dollars per share) | $ / shares | $ 29.08 | $ 29.08 | |||||
If-converted value of the Notes | $ 129,600,000 | ||||||
Contractual interest expense | $ 539,000 | 539,000 | 1,617,000 | 1,617,000 | |||
Amortization of debt discount | 1,644,000 | 1,521,000 | 4,793,000 | 4,414,000 | |||
Total interest expense | $ 2,368,000 | $ 2,232,000 | $ 6,950,000 | $ 6,529,000 | |||
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 | 9 Months Ended | |
May 31, 2018 | Sep. 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 | Sep. 30, 2020 | Dec. 31, 2019 |
Inventories | ||
Unrecorded Unconditional Purchase Obligation [Line Items] | ||
Unrecorded Unconditional Purchase Obligation | $ 7.5 | $ 9.7 |
Stock Option Activity (Details)
Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2020 | Jun. 30, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Sep. 30, 2020 | Sep. 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 | 0 | 126,046 | 0 | 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 | (184,970) | ||||||
Options canceled | (1,700) | ||||||
Ending balance | 419,657 | 419,657 | 606,327 | ||||
Weighted Average Exercise Price (in dollars per share): | |||||||
Beginning balance | $ 13.41 | ||||||
Options granted | 0 | ||||||
Options exercised | 11.21 | ||||||
Options canceled | 9.40 | ||||||
Ending balance | $ 14.40 | $ 14.40 | $ 13.41 | ||||
Wtd avg remaining term, Outstanding | 2 years 9 months | 3 years 7 months 13 days | |||||
Aggregate intrinsic value, Outstanding | $ 6,159 | $ 6,159 | $ 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 | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Equity B-S-M Fair Value Assumptions | ||||
Expected term (in years) | 6 months | 6 months | 6 months | 6 months |
Volatility | 54.10% | 45.20% | ||
Risk-free interest rate | 0.15% | 2.43% | ||
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 | 9 Months Ended |
Sep. 30, 2020 | Sep. 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 | 1 year 11 months 23 days | |
Number of Shares: | ||
Beginning balance | 1,550,646 | |
Granted | 1,395,557 | |
Vested | (741,736) | |
Forfeited | (49,010) | |
Ending balance | 2,155,457 | 2,155,457 |
Weighted Average Grant Date Fair Value per Share (in dollars per share): | ||
Beginning balance | $ 28.94 | |
Granted | 22.28 | |
Vested | 28.03 | |
Forfeited | 26.58 | |
Ending balance | $ 24.99 | $ 24.99 |
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 |
Sep. 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 | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 6,679 | $ 18,886 | $ 17,822 | |
Cost of Sales | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | 1,042 | $ 1,175 | 3,129 | 3,331 |
Research and Development Expense | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | 1,046 | 1,022 | 3,035 | 2,878 |
Selling and Marketing Expense | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | 2,037 | 1,808 | 5,858 | 5,286 |
General and Administrative Expense | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 2,554 | $ 2,164 | $ 6,864 | $ 6,327 |
Narrative (Details)
Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2020 | Jun. 30, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
ESPP plan details [Abstract] | ||||||
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 0 | 126,046 | 0 | 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 | $ 42.1 | $ 42.1 | ||||
Stock Comp-other than options - Period for Recognition- Comp cost not yet rocognized | 1 year 11 months 23 days | |||||
ESPP plan details [Abstract] | ||||||
Granted | 1,395,557 | |||||
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 | 855,509 | 855,509 | ||||
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) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Revenue | ||||
Total revenue | $ 53,815 | $ 50,781 | $ 141,835 | $ 130,849 |
Cost of revenue | ||||
Total cost of revenue | 17,485 | 18,893 | 51,776 | 52,260 |
Gross profit | ||||
Total gross profit | 36,330 | 31,888 | 90,059 | 78,589 |
Calculation of pretax profit (loss) [Abstract] | ||||
Operating expenses | 32,314 | 30,289 | 96,970 | 91,990 |
Income (loss) before income taxes | 2,557 | 520 | (11,300) | (16,188) |
Product | ||||
Revenue | ||||
Total revenue | 28,510 | 28,511 | 70,311 | 65,646 |
Cost of revenue | ||||
Total cost of revenue | 7,139 | 8,204 | 21,213 | 20,450 |
Service | ||||
Revenue | ||||
Total revenue | 25,305 | 22,270 | 71,524 | 65,203 |
Cost of revenue | ||||
Total cost of revenue | $ 10,346 | $ 10,689 | $ 30,563 | $ 31,810 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Aug. 18, 2020 | |
Income Tax Disclosure [Abstract] | |||||
Income tax expense (benefit) | $ 1,604 | $ (222) | $ 1,523 | $ (106) | |
Business Acquisition [Line Items] | |||||
Decrease in net deferred tax assets valuation allowance | 2,100 | ||||
Minimum | |||||
Unusual or Infrequent Item, or Both [Line Items] | |||||
CARES Act, payroll tax deferral | 1,500 | 1,500 | |||
Maximum | |||||
Unusual or Infrequent Item, or Both [Line Items] | |||||
CARES Act, payroll tax deferral | $ 2,000 | $ 2,000 | |||
EASE Applications | |||||
Business Acquisition [Line Items] | |||||
Business acquisition, deferred tax liabilities | $ 2,100 |
Business Acquisition - Identifi
Business Acquisition - Identifiable Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Aug. 18, 2020 | Sep. 30, 2020 | Dec. 31, 2019 |
Intangibles assets | |||
Goodwill | $ 69,168 | $ 49,246 | |
Customer relationships | |||
Current Assets | |||
Weighted Average Useful Life | 8 years | ||
Developed technology | |||
Current Assets | |||
Weighted Average Useful Life | 3 years 10 months 24 days | ||
Trademarks | |||
Current Assets | |||
Weighted Average Useful Life | 3 years | ||
Backlog | |||
Current Assets | |||
Weighted Average Useful Life | 3 years 4 months 24 days | ||
EASE Applications | |||
Current Assets | |||
Accounts receivable, net | $ 444 | ||
Prepaid expenses and other current assets | 18 | ||
Total current assets | 462 | ||
Intangibles assets | |||
Goodwill | 19,922 | ||
Total assets | 29,624 | ||
Current liabilities | |||
Accounts payable | 6 | ||
Accrued payroll and other current liabilities | 22 | ||
Deferred revenue, current | 1,011 | ||
Total current liabilities | 1,039 | ||
Deferred revenue, long term | 149 | ||
Other long-term liabilities | 4,218 | ||
Total liabilities | 5,406 | ||
Net assets acquired | $ 24,218 | ||
EASE Applications | Customer relationships | |||
Current Assets | |||
Weighted Average Useful Life | 8 years | ||
Intangibles assets | |||
Intangible assets | $ 5,430 | ||
EASE Applications | Developed technology | |||
Current Assets | |||
Weighted Average Useful Life | 3 years | ||
Intangibles assets | |||
Intangible assets | $ 2,310 | ||
EASE Applications | Trademarks | |||
Current Assets | |||
Weighted Average Useful Life | 3 years | ||
Intangibles assets | |||
Intangible assets | $ 660 | ||
EASE Applications | Backlog | |||
Current Assets | |||
Weighted Average Useful Life | 4 years | ||
Intangibles assets | |||
Intangible assets | $ 840 |
Business Acquisition - Narrativ
Business Acquisition - Narrative (Details) - USD ($) $ in Thousands | Aug. 18, 2020 | Sep. 30, 2020 | Sep. 30, 2020 | Sep. 30, 2019 |
Business Acquisition [Line Items] | ||||
Payments to acquire business, net of cash acquired | $ 24,218 | $ 0 | ||
EASE Applications | ||||
Business Acquisition [Line Items] | ||||
Payments to acquire business, net of cash acquired | $ 24,200 | |||
Cash acquired | 300 | |||
Contingent consideration, maximum | 2,500 | |||
Contingent consideration, fair value | 2,200 | |||
Acquisition-related costs | $ 500 | |||
Employee retention plan, potential additional compensation, term | 2 years | |||
Employee retention plan, potential additional compensation, term | $ 5,000 | |||
Employee retention bonus | $ 400 |