Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2019 | Oct. 31, 2019 | |
Cover page. | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2019 | |
Document Transition Report | false | |
Entity File Number | 001-34180 | |
Entity Registrant Name | FLUIDIGM CORPORATION | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0001162194 | |
Current Fiscal Year End Date | --12-31 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 77-0513190 | |
Entity Address, Address Line One | 7000 Shoreline Ct, Ste 100, | |
Entity Address, City or Town | South San Francisco, | |
Entity Address, Country | CA | |
Entity Address, Postal Zip Code | 94080 | |
City Area Code | 650 | |
Local Phone Number | 266-6000 | |
Title of 12(b) Security | Common Stock, par value $0.001 per share | |
Trading Symbol | FLDM | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (shares) | 69,564,909 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 25,886 | $ 95,401 |
Short-term investments | 36,875 | 0 |
Accounts receivable (net of allowances of $104 at September 30, 2019 and $126 at December 31, 2018) | 14,014 | 16,651 |
Inventories | 14,998 | 13,003 |
Prepaid expenses and other current assets | 4,781 | 2,051 |
Total current assets | 96,554 | 127,106 |
Property and equipment, net | 8,396 | 8,825 |
Operating lease right-of-use asset, net | 5,352 | 0 |
Other non-current assets | 5,984 | 6,208 |
Developed technology, net | 49,000 | 57,400 |
Goodwill | 104,108 | 104,108 |
Total assets | 269,394 | 303,647 |
Current liabilities: | ||
Accounts payable | 5,339 | 4,027 |
Accrued compensation and related benefits | 8,621 | 14,470 |
Operating lease liabilities, current | 2,363 | 0 |
Other accrued liabilities | 5,105 | 7,621 |
Deferred revenue, current | 11,938 | 11,464 |
Total current liabilities | 33,366 | 37,582 |
Convertible notes, net | 49,853 | 172,058 |
Deferred tax liability, net | 11,137 | 13,714 |
Operating lease liabilities, non-current | 4,459 | 0 |
Deferred revenue, non-current | 7,501 | 6,327 |
Other non-current liabilities | 473 | 1,850 |
Total liabilities | 106,789 | 231,531 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Preferred stock, $0.001 par value, 10,000 shares authorized, no shares issued and outstanding at September 30, 2019 and December 31, 2018 | 0 | 0 |
Common stock, $0.001 par value, 200,000 shares authorized at September 30, 2019 and December 31, 2018; 69,550 and 49,338 shares issued and outstanding as of September 30, 2019 and December 31, 2018, respectively | 70 | 49 |
Additional paid-in capital | 774,249 | 631,605 |
Accumulated other comprehensive loss | (758) | (687) |
Accumulated deficit | (610,956) | (558,851) |
Total stockholders’ equity | 162,605 | 72,116 |
Total liabilities and stockholders’ equity | $ 269,394 | $ 303,647 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Current assets: | ||
Accounts receivable, allowances | $ 104 | $ 126 |
Stockholders’ equity: | ||
Preferred stock, par value (usd per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (shares) | 0 | 0 |
Preferred stock, shares outstanding (shares) | 0 | 0 |
Common stock, par value (usd per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (shares) | 200,000,000 | 200,000,000 |
Common stock, shares issued (shares) | 69,550,000 | 49,338,000 |
Common stock, shares outstanding (shares) | 69,550,000 | 49,338,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Revenue: | ||||
Total revenue | $ 26,496 | $ 28,963 | $ 84,803 | $ 80,639 |
Cost of revenue: | ||||
Total cost of revenue | 12,458 | 13,141 | 38,412 | 37,801 |
Gross profit | 14,038 | 15,822 | 46,391 | 42,838 |
Research and development | 7,125 | 7,430 | 23,362 | 22,072 |
Selling, general and administrative | 20,729 | 20,020 | 65,687 | 57,812 |
Total operating expenses | 27,854 | 27,450 | 89,049 | 79,884 |
Loss from operations | (13,816) | (11,628) | (42,658) | (37,046) |
Interest expense | (444) | (4,019) | (3,636) | (9,824) |
Loss on extinguishment of debt | 0 | 0 | (9,000) | 0 |
Other income, net | 205 | 117 | 920 | 465 |
Loss before income taxes | (14,055) | (15,530) | (54,374) | (46,405) |
Income tax benefit | 1,168 | 780 | 2,269 | 2,167 |
Net loss | $ (12,887) | $ (14,750) | $ (52,105) | $ (44,238) |
Net loss per share, basic and diluted (usd per share) | $ (0.19) | $ (0.38) | $ (0.79) | $ (1.13) |
Shares used in computing net loss per share, basic and diluted (shares) | 69,469 | 39,235 | 65,792 | 39,033 |
Product revenue | ||||
Revenue: | ||||
Total revenue | $ 20,666 | $ 24,242 | $ 68,728 | $ 66,496 |
Cost of revenue: | ||||
Total cost of revenue | 10,520 | 11,635 | 33,009 | 33,017 |
Service revenue | ||||
Revenue: | ||||
Total revenue | 5,630 | 4,721 | 15,875 | 14,143 |
Cost of revenue: | ||||
Total cost of revenue | 1,938 | 1,506 | 5,403 | 4,784 |
Grant revenue | ||||
Revenue: | ||||
Total revenue | $ 200 | $ 0 | $ 200 | $ 0 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (12,887) | $ (14,750) | $ (52,105) | $ (44,238) |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation adjustment | (121) | (11) | (122) | 59 |
Net change in unrealized gain (loss) on investments | (14) | 1 | 51 | (1) |
Other comprehensive income (loss), net of tax | (135) | (10) | (71) | 58 |
Comprehensive loss | $ (13,022) | $ (14,760) | $ (52,176) | $ (44,180) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive (Loss)/Income | Accumulated Deficit |
Beginning Balance (shares) at Dec. 31, 2017 | 38,787,000 | ||||
Beginning Balance at Dec. 31, 2017 | $ 30,935 | $ 39 | $ 531,666 | $ (574) | $ (500,196) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of restricted stock, net of shares withheld for taxes, and other (in shares) | 105,000 | ||||
Issuance of restricted stock, net of shares withheld for taxes, and other | (69) | (69) | |||
Issuance of common stock from option exercises (in shares) | 16,000 | ||||
Issuance of common stock from option exercises | 72 | 72 | |||
Conversion option on convertible debt | 29,292 | 29,292 | |||
Closing cost related to conversion option | (556) | (556) | |||
Stock-based compensation expense | 1,747 | 1,747 | |||
Net loss | (13,247) | (13,247) | |||
Other comprehensive income (loss) | 42 | 42 | |||
Ending Balance (shares) at Mar. 31, 2018 | 38,908,000 | ||||
Ending Balance at Mar. 31, 2018 | 48,574 | $ 39 | 562,152 | (532) | (513,085) |
Beginning Balance (shares) at Dec. 31, 2017 | 38,787,000 | ||||
Beginning Balance at Dec. 31, 2017 | 30,935 | $ 39 | 531,666 | (574) | (500,196) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net loss | (44,238) | ||||
Other comprehensive income (loss) | 58 | ||||
Ending Balance (shares) at Sep. 30, 2018 | 39,316,000 | ||||
Ending Balance at Sep. 30, 2018 | 22,411 | $ 39 | 566,964 | (516) | (544,076) |
Beginning Balance (shares) at Mar. 31, 2018 | 38,908,000 | ||||
Beginning Balance at Mar. 31, 2018 | 48,574 | $ 39 | 562,152 | (532) | (513,085) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of restricted stock, net of shares withheld for taxes, and other (in shares) | 125,000 | ||||
Issuance of restricted stock, net of shares withheld for taxes, and other | (106) | (106) | |||
Issuance of common stock from option exercises (in shares) | 3,000 | ||||
Issuance of common stock from option exercises | 7 | 7 | |||
Issuance of common stock under ESPP (shares) | 119,000 | ||||
Issuance of common stock under ESPP | 562 | 562 | |||
Stock-based compensation expense | 2,007 | 2,007 | |||
Net loss | (16,241) | (16,241) | |||
Other comprehensive income (loss) | 28 | 28 | |||
Ending Balance (shares) at Jun. 30, 2018 | 39,155,000 | ||||
Ending Balance at Jun. 30, 2018 | 34,831 | $ 39 | 564,622 | (504) | (529,326) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of restricted stock, net of shares withheld for taxes, and other (in shares) | 159,000 | ||||
Issuance of restricted stock, net of shares withheld for taxes, and other | 26 | 26 | |||
Issuance of common stock from option exercises (in shares) | 2,000 | ||||
Issuance of common stock from option exercises | 13 | 13 | |||
Stock-based compensation expense | 2,303 | 2,303 | |||
Net loss | (14,750) | (14,750) | |||
Other comprehensive income (loss) | (10) | ||||
Ending Balance (shares) at Sep. 30, 2018 | 39,316,000 | ||||
Ending Balance at Sep. 30, 2018 | $ 22,411 | $ 39 | 566,964 | (516) | (544,076) |
Beginning Balance (shares) at Dec. 31, 2018 | 49,338,000 | 49,338,000 | |||
Beginning Balance at Dec. 31, 2018 | $ 72,116 | $ 49 | 631,605 | (687) | (558,851) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock on bond conversion (in shares) | 19,460,000 | ||||
Issuance of common stock on bond conversion | 133,298 | $ 19 | 133,279 | ||
Issuance of restricted stock, net of shares withheld for taxes, and other (in shares) | 140,000 | ||||
Issuance of restricted stock, net of shares withheld for taxes, and other | (176) | $ 1 | (177) | ||
Issuance of common stock from option exercises (in shares) | 53,000 | ||||
Issuance of common stock from option exercises | 255 | 255 | |||
Stock-based compensation expense | 2,207 | 2,207 | |||
Net loss | (25,465) | (25,465) | |||
Other comprehensive income (loss) | 10 | 10 | |||
Ending Balance (shares) at Mar. 31, 2019 | 68,991,000 | ||||
Ending Balance at Mar. 31, 2019 | $ 182,245 | $ 69 | 767,169 | (677) | (584,316) |
Beginning Balance (shares) at Dec. 31, 2018 | 49,338,000 | 49,338,000 | |||
Beginning Balance at Dec. 31, 2018 | $ 72,116 | $ 49 | 631,605 | (687) | (558,851) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock from option exercises (in shares) | 185,000 | ||||
Net loss | $ (52,105) | ||||
Other comprehensive income (loss) | $ (71) | ||||
Ending Balance (shares) at Sep. 30, 2019 | 69,550,000 | 69,550,000 | |||
Ending Balance at Sep. 30, 2019 | $ 162,605 | $ 70 | 774,249 | (758) | (610,956) |
Beginning Balance (shares) at Mar. 31, 2019 | 68,991,000 | ||||
Beginning Balance at Mar. 31, 2019 | 182,245 | $ 69 | 767,169 | (677) | (584,316) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of restricted stock, net of shares withheld for taxes, and other (in shares) | 183,000 | ||||
Issuance of restricted stock, net of shares withheld for taxes, and other | (325) | (325) | |||
Issuance of common stock from option exercises (in shares) | 130,000 | ||||
Issuance of common stock from option exercises | 793 | 793 | |||
Issuance of common stock under ESPP (shares) | 96,000 | ||||
Issuance of common stock under ESPP | 641 | 641 | |||
Stock-based compensation expense | 2,985 | 2,985 | |||
Net loss | (13,753) | (13,753) | |||
Other comprehensive income (loss) | 54 | 54 | |||
Ending Balance (shares) at Jun. 30, 2019 | 69,400,000 | ||||
Ending Balance at Jun. 30, 2019 | 172,640 | $ 69 | 771,263 | (623) | (598,069) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of restricted stock, net of shares withheld for taxes, and other (in shares) | 149,000 | ||||
Issuance of restricted stock, net of shares withheld for taxes, and other | (69) | $ 1 | (70) | ||
Issuance of common stock from option exercises (in shares) | 1,000 | ||||
Issuance of common stock from option exercises | 1 | 1 | |||
Stock-based compensation expense | 3,055 | 3,055 | |||
Net loss | (12,887) | (12,887) | |||
Other comprehensive income (loss) | $ (135) | (135) | |||
Ending Balance (shares) at Sep. 30, 2019 | 69,550,000 | 69,550,000 | |||
Ending Balance at Sep. 30, 2019 | $ 162,605 | $ 70 | $ 774,249 | $ (758) | $ (610,956) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Operating activities | ||
Net loss | $ (52,105) | $ (44,238) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 3,484 | 4,123 |
Stock-based compensation expense | 8,292 | 6,057 |
Amortization of developed technology | 8,400 | 8,400 |
Amortization of debt discounts, premium and issuance costs | 2,130 | 5,715 |
Loss on extinguishment of debt | 9,000 | 0 |
Loss on disposal of property and equipment | 52 | 0 |
Other non-cash items | (176) | 40 |
Changes in assets and liabilities: | ||
Accounts receivable, net | 3,195 | (3,285) |
Inventories | (2,316) | (820) |
Prepaid expenses and other current assets | (1,660) | (540) |
Other non-current assets | 322 | 622 |
Accounts payable | 605 | 2,054 |
Deferred revenue | 1,592 | 2,053 |
Other current liabilities | (6,664) | 2,035 |
Other non-current liabilities | (3,842) | (6,779) |
Net cash used in operating activities | (29,691) | (24,563) |
Investing activities | ||
Purchases of investments | (52,719) | (1,451) |
Proceeds from maturities and sales of investments | 16,000 | 6,541 |
Purchases of property and equipment | (2,031) | (352) |
Net cash provided by (used in) investing activities | (38,750) | 4,738 |
Financing activities | ||
Payment of debt issuance costs | (128) | (2,779) |
Proceeds from exercise of stock options | 1,049 | 92 |
Proceeds from stock issuance from ESPP | 641 | 562 |
Payments for taxes related to net share settlement of equity awards | (556) | (167) |
Net cash provided by (used in) financing activities | 1,006 | (2,292) |
Effect of foreign exchange rate fluctuations on cash and cash equivalents | (5) | (110) |
Net decrease in cash, cash equivalents and restricted cash | (67,440) | (22,227) |
Cash, cash equivalents and restricted cash at beginning of period | 95,401 | 58,056 |
Cash, cash equivalents and restricted cash at end of period | $ 27,961 | $ 35,829 |
Description of Business
Description of Business | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | Description of Business Fluidigm Corporation (we, our, or us) was incorporated in the State of California in May 1999 to commercialize microfluidic technology initially developed at the California Institute of Technology. In July 2007, we were reincorporated in Delaware. Our headquarters are located in South San Francisco, California. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation The accompanying consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (U.S. GAAP) and include the accounts of our wholly owned subsidiaries. As of September 30, 2019 , we had wholly owned subsidiaries in Singapore, Canada, the Netherlands, Japan, France, the United Kingdom, China, and Germany. All subsidiaries, except for Singapore, use their local currency as their functional currency. The Singapore subsidiary uses the U.S. dollar as its functional currency. All intercompany transactions and balances have been eliminated in consolidation. Certain prior period amounts in the condensed consolidated statements of cash flows were reclassified to conform with the current period presentation. These reclassifications were immaterial and did not affect prior period total assets, total liabilities, stockholders' equity, total revenue, total costs and expenses, loss from operations or net loss. Net Loss per Share Our basic and diluted net loss per share is calculated by dividing net loss by the weighted-average number of shares of common stock outstanding for the period. Restricted stock units, performance awards, options to purchase common stock, and shares associated with the potential conversion of our convertible notes are considered to be potentially dilutive common shares but have been excluded from the calculation of diluted net loss per share as their effect is anti-dilutive for all periods presented. The following potentially dilutive common shares were excluded from the computation of diluted net loss per share for the three and nine months ended September 30, 2019 , and 2018 because including them would have been anti-dilutive (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Stock options, restricted stock units and performance awards 5,342 4,376 5,342 4,376 2018 Convertible Notes — 19,036 — 19,036 2018 Convertible Notes potential make-whole shares — 799 — 799 2014 Convertible Notes 916 916 916 916 Total 6,258 25,127 6,258 25,127 Accumulated Other Comprehensive Loss The components of accumulated other comprehensive loss, net of tax, for the three and nine months ended September 30, 2019 , are as follows (in thousands): Foreign Currency Translation Adjustment Net Unrealized Gain on Securities Accumulated Other Comprehensive Loss Balance at December 31, 2018 $ (687 ) $ — $ (687 ) Other comprehensive income 8 — 2 10 Balance at March 31, 2019 (679 ) 2 (677 ) Other comprehensive income (loss) (9 ) — 63 54 Balance at June 30, 2019 (688 ) 65 (623 ) Other comprehensive income (loss) (121 ) (14 ) (135 ) Balance at September 30, 2019 $ (809 ) $ 51 $ (758 ) Revenue Recognition We generate revenue primarily from the sale of our products and services. Product revenue is derived from the sale of instruments and consumables, including IFCs, assays and reagents. Service revenue is derived from the sale of instrument service contracts, repairs, installation, training and other specialized product support services. We receive grants from various governmental entities to perform research and development activities over contractually defined periods. Revenue is generally recognized provided that the conditions under which the grants were provided have been met and any remaining performance obligations are perfunctory. Revenue is reported net of any sales, use and value-added taxes we collect from customers as required by government authorities. We recognize revenue based on the amount of consideration we expect to receive in exchange for the goods and services we transfer to the customer. Our commercial arrangements typically include multiple distinct products and services, and we allocate revenue to these performance obligations based on their relative standalone selling prices. Standalone selling prices (SSP) are generally determined using observable data from recent transactions. In cases where sufficient data is not available, we estimate a product’s SSP using a cost plus a margin approach or by applying a discount to the product’s list price. Product Revenue We recognize product revenue at the point in time when control of the goods passes to the customer and we have an enforceable right to payment. This generally occurs either when the product is shipped from one of our facilities or when it arrives at the customer’s facility, based on the contractual terms. Customers generally do not have a unilateral right to return products after delivery. Invoices are generally issued at shipment and generally become due in 30 to 60 days. We sometimes perform shipping and handling activities after control of the product passes to the customer. We have made an accounting policy election to account for these activities as product fulfillment activities rather than as separate performance obligations. Service Revenue We recognize revenue from repairs, installation, training and other specialized product support services at the point in time the work is completed. Installation and training services are generally billed in advance of service. Repairs and other services are generally billed at the point the work is completed. Revenue associated with instrument service contracts is recognized on a straight-line basis over the life of the agreement, which is generally one to three years. We believe this time-elapsed approach is appropriate for service contracts because we provide services on demand throughout the term of the agreement. Invoices are generally issued in advance of service on a monthly, quarterly, annual or multi-year basis. Payments made in advance of service are reported on our consolidated balance sheet as deferred revenue. Contract Costs Incremental sales commission costs incurred to obtain instrument service contracts are capitalized and amortized to selling, general and administrative expense over the life of the contract, which is generally one to three years. As a practical expedient, we expense sales commissions associated with product support services that are delivered in less than one year as they are incurred. Sales commissions associated with the sale of products are expensed as they are incurred. Product Warranties We generally provide a one-year warranty on our instruments. We accrue for estimated warranty obligations at the time of product shipment. We periodically review our warranty liability and record adjustments based on the terms of warranties provided to customers, and historical and anticipated warranty claim experience. This expense is recorded as a component of cost of product revenue in the condensed consolidated statements of operations. Significant Judgments Applying the revenue recognition practices discussed above often requires significant judgment. Judgment is required when identifying performance obligations, estimating SSP and allocating purchasing consideration in multi-element arrangements and estimating the future amount of our warranty obligations. Moreover, significant judgment is required when interpreting commercial terms and determining when control of goods and services passes to the customer. Any material changes created by errors in judgment could have a material effect on our operating results and overall financial condition. Goodwill, Intangible Assets, and Other Long-lived Assets Goodwill, which has an indefinite useful life, represents the excess of cost over fair value of net assets acquired. Our intangible assets include developed technology, patents and licenses. The cost of identifiable intangible assets with finite lives is generally amortized on a straight-line basis over the assets’ respective estimated useful lives. Goodwill and intangible assets with indefinite lives are not subject to amortization but are tested for impairment on an annual basis during the fourth quarter or whenever events or changes in circumstances indicate the carrying amount of these assets may not be recoverable. Events or changes in circumstances that could affect the likelihood that we will be required to recognize an impairment charge include, but are not limited to, declines in our stock price or market capitalization, declines in our market share or revenues, and an increase in our losses. Any impairment charges could have a material adverse effect on our operating results and net asset value in the quarter in which we recognize the impairment charge. In evaluating our goodwill and intangible assets with indefinite lives for indications of impairment, we first conduct an assessment of qualitative factors to determine whether it is more likely than not that the fair value of our reporting unit is less than its carrying amount. If we determine that it is more likely than not that the fair value of our reporting unit is less than its carrying amount, we then conduct a two-step test for impairment of goodwill. In the first step, we compare the fair value of our reporting unit to its carrying value. If the fair value of our reporting unit exceeds its carrying value, goodwill is not considered impaired and no further analysis is required. If the carrying value of the reporting unit exceeds its fair value, then the second step of the impairment test must be performed in order to determine the implied fair value of the goodwill. If the carrying value of the goodwill exceeds its implied fair value, then an impairment loss equal to the difference would be recorded. We evaluate our long-lived assets, including finite-lived intangibles, for indicators of possible impairment when events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. If any indicator of impairment exists, we assess the recoverability of the affected long-lived assets by determining whether the carrying value of the asset can be recovered through undiscounted future operating cash flows. If impairment is indicated, we estimate the asset’s fair value using future discounted cash flows associated with the use of the asset and adjust the carrying value of the asset accordingly. We did not recognize any impairment of long-lived assets for any of the periods presented herein. Convertible Notes In February 2014, we closed an underwritten public offering of $201.3 million aggregate principal amount of our 2.75% Senior Convertible Notes due 2034 (2014 Notes). In March 2018, we entered into separate privately negotiated transactions with certain holders of our 2014 Notes to exchange $150.0 million in aggregate principal amount of the 2014 Notes for our new 2.75% Exchange Convertible Senior Notes due 2034 (2018 Notes). Following the exchange, approximately $51.3 million in aggregate principal amount of the 2014 Notes was outstanding in addition to $150.0 million in aggregate principal amount of the 2018 Notes. In the first quarter of 2019, the 2018 Notes were converted into 19.5 million shares of common stock and the 2018 Notes were retired. We recorded a loss of $9.0 million on the retirement of the 2018 Notes. See Note 6 Convertible Notes and Credit Facility for the accounting treatment of the transactions and additional information about the exchange. Recent Accounting Changes and Accounting Pronouncements Adoption of New Accounting Guidance In February 2016, the FASB established Topic 842, Leases, by issuing Accounting Standards Update (ASU) No. 2016-02, which requires lessees to recognize operating leases on the balance sheet and disclose key information about leasing arrangements. Topic 842 was subsequently amended by ASU No. 2018-01, Land Easement Practical Expedient for Transition to Topic 842; ASU No. 2018-10, Codification Improvements to Topic 842, Leases; and ASU No. 2018-11, Targeted Improvements. The new standard establishes a right-of-use (ROU) model that requires a lessee to recognize a ROU asset and lease liability on the balance sheet for all leases with a term longer than 12 months. Leases are classified as finance or operating; the classification will impact the expense recognition in the income statement. Modified Retrospective Transition approach is required, applying the new standard to all leases existing at the date of initial application. An entity may choose to use either (1) its effective date or (2) the beginning of the earliest comparative period presented in the financial statements as its date of initial application. We adopted the new standard on January 1, 2019 and used the effective date of the standard as our date of initial application. Consequently, previously presented financial information has not been updated, and the disclosures required under the new standard have not been provided for dates and periods before January 1, 2019. For dates and periods prior to January 1, 2019, the original disclosures under ASC 840 are disclosed. The new standard provides several optional practical expedients in transition. We elected the ‘package of practical expedients,’ which permits us to not reassess under the new standard our prior conclusions about lease identification, lease classification and initial direct costs. We did not elect the use-of-hindsight or the practical expedient pertaining to land easements; the latter not being applicable to us. On adoption, we recognized $9.2 million of lease liabilities, based on the present value of the current minimum lease payments over the lease term, discounted using our collateralized incremental borrowing rate, with corresponding ROU assets of $ 7.4 million . The difference between the initial lease liability and ROU asset is attributable to deferred rent. There was no impact to retained earnings from the adoption of ASC 842. The new standard also provides certain accounting elections for an entity’s ongoing accounting. We have elected the short-term lease recognition exemption for all leases that qualify. This means, for those leases that qualify, we will not recognize ROU assets or lease liabilities for leases with an initial lease term of one year or less. We have also elected to not separate lease and nonlease components for our building leases. The nonlease components are generally variable in nature and are expected to represent most of our variable lease costs. Variable costs are expensed as incurred. We have taken a portfolio approach for our vehicle leases by country. Recent Accounting Pronouncements In August 2018, the FASB issued ASU 2018-15 Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40) which establishes new guidance on the accounting for costs incurred to implement a cloud computing arrangement that is considered a service arrangement. The new guidance requires the capitalization of such costs, aligning it with the accounting for costs associated with developing or obtaining internal-use software. The new guidance is effective for fiscal years beginning after December 15, 2019. We are currently evaluating the impact of adoption on our consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. The ASU eliminates the requirement for an entity to calculate the implied fair value of goodwill to measure a goodwill impairment charge. Instead, an entity performs its annual, or interim, goodwill impairment testing by comparing the fair value of a reporting unit with its carrying amount and recording an impairment charge for the amount by which the carrying amount exceeds the fair value. The ASU will be effective for annual and interim goodwill impairment testing performed for our fiscal year beginning January 1, 2020, with early adoption permitted. We are currently evaluating the effect that the updated standard will have on our consolidated financial statements. The FASB issued two ASUs related to financial instruments – credit losses. The ASUs issued were: (1) in June 2016, ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, and (2) in November 2018, ASU 2018-19 Codification Improvements to Topic 326, Financial Instruments—Credit Losses. ASU 2016-13 is intended to improve financial reporting by requiring more timely recording of credit losses on loans and other financial instruments held by financial institutions and other organizations. ASU 2018-19 clarifies that receivables arising from operating leases are not within the scope of the credit losses standard, but rather, should be accounted for in accordance with the leasing standard. These ASUs are effective for fiscal years beginning after December 15, 2019, and interim periods within those years, with early adoption permitted. We are evaluating the effect that ASU 2016‑13 and ASU 2018-19 will have on our consolidated financial statements and related disclosures. |
Revenue
Revenue | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Disaggregation of Revenues The following table disaggregates our revenue for the three and nine months ended September 30, 2019 , and 2018 , respectively, by geographic area and by product, service and grant (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Geographic Markets: Americas $ 11,112 $ 13,654 $ 35,203 $ 37,008 Europe 9,092 8,783 28,465 26,365 Asia-Pacific 6,292 6,526 21,135 17,266 Total revenue $ 26,496 $ 28,963 $ 84,803 $ 80,639 Product, Service and Grant: Instruments $ 9,159 $ 13,890 $ 34,200 $ 31,831 Consumables 11,507 10,352 34,528 34,665 Product revenue 20,666 24,242 68,728 66,496 Service 5,630 4,721 15,875 14,143 Grant 200 — 200 — Total revenue $ 26,496 $ 28,963 $ 84,803 $ 80,639 Performance Obligations We reported $17.8 million of deferred revenue on our December 31, 2018 consolidated balance sheet. During the nine months ended September 30, 2019 , $ 9.0 million of the opening balance was recognized as revenue and $10.6 million of net additional advance payments were received from customers, primarily associated with instrument service contracts. At September 30, 2019 , we reported $19.4 million of deferred revenue. The following table summarizes the expected timing of revenue recognition for unfulfilled performance obligations associated with instrument service contracts that were partially completed at September 30, 2019 (in thousands): Expected Revenue (1) 2019 (remainder of the year) $ 3,417 2020 8,425 2021 5,052 Thereafter 4,110 $ 21,004 _______ (1) Expected revenue includes both billed amounts included in deferred revenue and unbilled amounts that are not reflected in our consolidated financial statements and are subject to change if our customers decide to cancel or modify their contracts. Purchase orders for instrument service contracts can generally be canceled before the service period begins without penalty. We apply the practical expedient that permits us to not disclose information about unsatisfied performance obligations that are expected to be delivered within one year. Contract Costs We reported $0.4 million of capitalized commission costs from instrument service contracts at September 30, 2019 and December 31, 2018 in the condensed consolidated balance sheets. |
Goodwill and Intangible Assets,
Goodwill and Intangible Assets, net | 9 Months Ended |
Sep. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets, net | Goodwill and Intangible Assets, net In connection with our acquisition of DVS Sciences, Inc. (DVS) in February 2014, we recognized goodwill of $104.1 million . Intangible assets include developed technology related to the DVS acquisition and other intangible assets and are included in other non-current assets. Intangible assets, net, were as follows (in thousands): September 30, 2019 Gross Amount Accumulated Amortization Net Weighted-Average Amortization Period Developed technology $ 112,000 $ (63,000 ) $ 49,000 10.0 years Patents and licenses $ 11,274 $ (7,640 ) $ 3,634 7.8 years December 31, 2018 Gross Amount Accumulated Amortization Net Weighted-Average Amortization Period Developed technology $ 112,000 $ (54,600 ) $ 57,400 10.0 years Patents and licenses $ 11,274 $ (6,861 ) $ 4,413 7.8 years Amortization of intangibles was $3.0 million and $3.1 million for the three months ended September 30, 2019 , and 2018 , respectively. Amortization of intangibles was $9.2 million and $9.3 million for the nine months ended September 30, 2019 , and 2018 , respectively. Based on the carrying value of intangible assets, net, as of September 30, 2019 , the annual amortization expense is expected to be as follows (in thousands): Fiscal Year Developed Technology Amortization Expense Patents and Licenses Amortization Expense Total 2019 (remainder of the year) $ 2,800 $ 260 $ 3,060 2020 11,200 1,042 12,242 2021 11,200 887 12,087 2022 11,200 804 12,004 2023 11,200 634 11,834 Thereafter 1,400 7 1,407 Total $ 49,000 $ 3,634 $ 52,634 |
Balance Sheet Details
Balance Sheet Details | 9 Months Ended |
Sep. 30, 2019 | |
Balance Sheet Related Disclosures [Abstract] | |
Balance Sheet Details | Balance Sheet Details Cash, Cash Equivalents and Restricted Cash Cash, cash equivalents and restricted cash consisted of the following (in thousands): September 30, 2019 December 31, 2018 Cash and cash equivalents $ 25,886 $ 95,401 Restricted cash 2,075 — Cash, cash equivalents and restricted cash $ 27,961 $ 95,401 Short-term restricted cash of approximately $1.1 million is included in prepaid expenses and other current assets, and $ 1.0 million of non-current restricted cash is included in other non-current assets in the condensed consolidated balance sheet. Inventories Inventories consisted of the following (in thousands): September 30, 2019 December 31, 2018 Raw materials $ 7,504 $ 5,996 Work-in-process 319 650 Finished goods 7,175 6,357 Total inventories, net $ 14,998 $ 13,003 Property and Equipment, net Property and equipment, net, consisted of the following (in thousands): September 30, 2019 December 31, 2018 Computer equipment and software $ 3,898 $ 4,201 Laboratory and manufacturing equipment 18,935 18,780 Leasehold improvements 7,663 7,173 Office furniture and fixtures 1,860 1,506 Property and equipment, gross 32,356 31,660 Less accumulated depreciation and amortization (23,967 ) (22,855 ) Construction-in-progress 7 20 Property and equipment, net $ 8,396 $ 8,825 Warranty We accrue for estimated warranty obligations once revenue is recognized. Management periodically reviews the estimated fair value of its warranty liability and records adjustments based on the terms of warranties provided to customers, as well as historical and anticipated warranty claim experience. Activity for our warranty accrual for the three and nine months ended September 30, 2019 , and 2018 , which is included in other accrued liabilities, is summarized below (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Beginning balance $ 1,091 $ 608 $ 863 $ 699 Accrual for warranties 255 458 912 1,195 Warranty costs incurred (239 ) (325 ) (668 ) (1,153 ) Ending balance $ 1,107 $ 741 $ 1,107 $ 741 |
Convertible Notes and Credit Fa
Convertible Notes and Credit Facility | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Convertible Notes and Credit Facility | Convertible Notes and Credit Facility 2014 Senior Convertible Notes (2014 Notes) In February 2014, we closed an underwritten public offering of $201.3 million aggregate principal amount of our 2.75% Senior Convertible Notes due 2034 (2014 Notes), pursuant to an underwriting agreement dated January 29, 2014. The 2014 Notes accrue interest at a rate of 2.75% per year, payable semi-annually in arrears on February 1 and August 1 of each year. Interest on the 2014 Notes accrued from February 4, 2014. The 2014 Notes will mature on February 1, 2034, unless earlier converted, redeemed, or repurchased in accordance with the terms of the 2014 Notes. The initial conversion rate of the 2014 Notes is 17.8750 shares of our common stock, par value $0.001 per share, per $1,000 principal amount of 2014 Notes (which is equivalent to an initial conversion price of approximately $55.94 per share). The conversion rate will be subject to adjustment upon the occurrence of certain specified events, including upon a conversion in connection with a fundamental change, as defined in the indenture governing the 2014 Notes or, subject to certain conditions, redemption of the 2014 Notes by the Company. Holders may surrender their 2014 Notes for conversion at any time prior to the stated maturity date. On or after February 6, 2018, and prior to February 6, 2021, we may redeem any or all of the 2014 Notes in cash if the closing price of our common stock exceeds 130% of the conversion price for a specified number of days, and on or after February 6, 2021, we may redeem any or all of the 2014 Notes in cash without any such condition. The redemption price of the 2014 Notes will equal 100% of the principal amount of the 2014 Notes plus accrued and unpaid interest. Holders may require us to repurchase all or a portion of their 2014 Notes on each of February 6, 2021, February 6, 2024, and February 6, 2029, at a repurchase price in cash equal to 100% of the principal amount of the 2014 Notes plus accrued and unpaid interest. If we undergo a fundamental change, as defined in the indenture governing the 2014 Notes, holders may require us to repurchase the 2014 Notes in whole or in part for cash at a repurchase price equal to 100% of the principal amount of the 2014 Notes plus accrued and unpaid interest. In February 2014, we received $195.2 million , net of underwriting discounts, from the issuance of the 2014 Notes and incurred approximately $1.1 million in offering-related expenses. The underwriting discount of $6.0 million and the debt issuance costs of $1.1 million were recorded as offsets to the proceeds. 2018 Senior Convertible Notes (2018 Notes) In March 2018, we entered into separate privately negotiated transactions with certain holders of our 2014 Notes to exchange $150.0 million in aggregate principal amount of the 2014 Notes for new convertible notes (2018 Notes). The 2018 Notes were subsequently retired in the first quarter of 2019 as discussed below. As of the closing of the 2018 Notes on March 12, 2018, the estimated fair value was $145.5 million . The difference between the $150.0 million aggregate principal amount of the 2018 Notes and its fair value was amortized over the expected term of the 2018 Notes using the effective interest method through the first note holder put date of February 6, 2023. We accounted for the exchange transaction as an extinguishment of debt due to the significance of the change in value of the embedded conversion option, resulting in a $0.1 million gain. The gain on extinguishment of the 2014 Notes exchanged was calculated as the difference between the reacquisition price (i.e., the fair value of the principal amount of 2018 Notes) and the net carrying value of the 2014 Notes exchanged, net of unamortized debt discount and debt issuance cost write-offs. The 2018 Notes accrued interest at a rate of 2.75% , payable semi-annually in arrears on February 1 and August 1 of each year. Interest on the 2018 Notes accrued from February 1, 2018. The 2018 Notes were set to mature on February 1, 2034, unless earlier converted, redeemed, or repurchased in accordance with the terms of the indenture governing the 2018 Notes. The initial conversion rate of the 2018 Notes was 126.9438 shares of our common stock, par value $0.001 per share, per $1,000 principal amount of the 2018 Notes (which is equivalent to an initial conversion price of approximately $7.88 per share). The conversion rate was subject to adjustment upon the occurrence of certain specified events. One of those specified events was that Holders who converted their 2018 Notes voluntarily prior to our exercise of the Issuer's Conversion Option were entitled, under certain circumstances, to a make-whole premium in the form of an increase in the conversion rate determined by reference to a make-whole table set forth in the indenture governing the 2018 Notes. Any time prior to the maturity of the 2018 Notes, we had the ability to convert the 2018 Notes, in whole but not in part, into cash, shares of our common stock, or combination thereof, if the closing price of our common stock equaled or exceeded 110% of the conversion price then in effect for a specified number of days (Issuer’s Conversion Option). On or after February 6, 2022, we would have been able to elect to redeem all or any portion of the 2018 Notes at a redemption price equal to 100% of the accreted principal amount of the 2018 Notes on the redemption date of the 2018 Notes, plus accrued and unpaid interest. Holders of the 2018 Notes had the right, at their option, to require us to purchase all or a portion of the 2018 Notes (i) on February 6, 2023, February 6, 2026, and February 6, 2029, or (ii) in the event of a fundamental change, as defined in the indenture governing the 2018 Notes, in each case, at a repurchase price equal to 100% of the accreted principal amount (i.e., up to 120% of the outstanding principal amount) of the 2018 Notes on the fundamental change repurchase date, plus accrued and unpaid interest. As the 2018 Notes were convertible, at our election, into cash, shares of our common stock, or a combination of cash and shares of our common stock, we accounted for the 2018 Notes under the cash conversion guidance in ASC 470, whereby the embedded conversion option in the 2018 Notes was separated and accounted for in equity. The embedded conversion option value was calculated as the difference between (i) the total fair value of the 2018 Notes and (ii) the fair value of a similar debt instrument excluding the embedded conversion option. We determined an embedded conversion option value of $29.3 million , which was recorded in additional paid-in-capital and reduced the carrying value of the 2018 Notes. The resulting discount on the 2018 Notes was amortized over the expected term of the 2018 Notes, using the effective interest method through the first note holder put date, of February 6, 2023. Offering-related costs for the 2018 Notes were approximately $2.8 million and were paid in the first and second quarters of 2018. Offering-related costs of $2.2 million were capitalized as debt issuance costs, recorded as an offset to the carrying value of the 2018 Notes, and are amortized over the expected term of the 2018 Notes using the effective interest method through the first note holder put date of February 6, 2023. Offering-related costs of $0.6 million were accounted for as equity issuance costs, recorded as an offset to additional paid-in capital, and are not subject to amortization. Offering-related costs were allocated between debt and equity in the same proportion as the allocation of the 2018 Notes between debt and equity. In the first quarter of 2019, we received notices from holders of the 2018 Notes electing to voluntarily convert approximately $138.1 million in aggregate principal amount of the 2018 Notes. In February 2019, we notified U.S. Bank National Association (the Trustee) of our intention to exercise our Issuer’s Conversion Option with respect to the remaining approximately $11.9 million in aggregate principal amount of 2018 Notes. In total, $150.0 million of the 2018 Notes were converted into 19.5 million shares of our common stock and the bonds were retired. We recognized a loss of $9.0 million , which represents the difference between the fair value of the bonds retired and their carrying costs. The net impact on equity was $133.3 million and represents the fair value of the bonds retired. The carrying values of the components of the 2014 Notes and the 2018 Notes are as follows (in thousands): September 30, 2019 December 31, 2018 2.75% 2014 Notes due 2034 Principal amount $ 51,250 $ 51,250 Unamortized debt discount (1,182 ) (1,232 ) Unamortized debt issuance cost (215 ) (224 ) $ 49,853 $ 49,794 2.75% 2018 Notes due 2034 Principal amount $ — $ 149,999 Premium accretion — 3,755 Unamortized debt discount — (29,558 ) Unamortized debt issuance cost — (1,932 ) $ — $ 122,264 $ 49,853 $ 172,058 2018 Revolving Credit Facility In August 2018, the Company entered into a revolving credit facility with Silicon Valley Bank (the Revolving Credit Facility) in an aggregate principal amount of up to the lesser of (i) $15.0 million (Maximum Amount) or (ii) the sum of (a) 85% of our eligible receivables and (b) 50% of our eligible inventory, in each case, subject to certain limitations (Borrowing Base), provided that the amount of eligible inventory that may be counted towards the Borrowing Base shall be subject to a cap as set forth in the Revolving Credit Facility. Subject to the level of this borrowing base, the Company may make and repay borrowings from time to time until the maturity of the revolving credit facility. As of September 30, 2019 , availability under the revolving credit facilit y was $9.0 million . There were no borrowings outstanding under the Revolving Credit Facility at September 30, 2019 . The Revolving Credit Facility matures on August 2, 2020 and is collateralized by substantially all the Company’s property, other than intellectual property. Loans under the Revolving Credit Facility will bear interest, at the greater of (i) prime rate plus 0.50% or (ii) 5.50% . Interest on any outstanding loans is due and payable monthly and the principal balance is due at maturity though loans can be prepaid at any time without penalty. In addition, the Company pays a quarterly unused revolving line facility fee of .75% per annum on the average unused facility. Subject to certain exceptions, the Company must pay a prepayment fee equal to (i) 2.00% of the Maximum Amount if it prepays all advances and terminates the Loan Agreement prior to August 2, 2019, or (ii) 1.00% of the Maximum Amount if it prepays all advances and terminates the Loan Agreement on or after August 2, 2019, and prior to the maturity date. The Company incurred approximately $335,000 of debt issuance costs in connection with the facility, including $225,000 in commitment fees. Half of the commitment fee was paid at the inception of the facility and the remainder paid on August 2, 2019. Debt issuance costs were capitalized and are being amortized to interest expense over the life of the Revolving Credit Facility. The Revolving Credit Facility contains customary affirmative and negative covenants which, unless waived by the bank, limit the Company’s ability to, among other things, incur additional indebtedness, grant liens, make investments, repurchase stock, pay dividends, transfer assets, enter into affiliate transactions, undergo a change of control, or engage in merger and acquisition activity, including merging or consolidating with a third party. The Revolving Credit Facility also contains customary events of default, subject to customary cure periods for certain defaults, that include, among other things, non-payment defaults, covenant defaults, material judgment defaults, bankruptcy and insolvency defaults, cross-defaults to certain other material indebtedness, and defaults due to inaccuracy of representation and warranties. Upon an event of default, the lender may declare all or a portion of the outstanding obligations payable by the Company to be immediately due and payable and exercise other rights and remedies provided for under the Revolving Credit Facility. During the existence of an event of default, interest on the obligations under the Revolving Credit Facility could be increased to 5.0% above the otherwise applicable rate of interest. The Company was in compliance with all the terms and conditions of the Revolving Credit Facility at September 30, 2019 |
Leases
Leases | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Leases | Leases We have operating leases for buildings, equipment and vehicles. Existing leases have remaining terms of less than 1 year to 8 years. Some leases contain options to extend the lease, usually for up to 5 years, and termination options. Operating lease right-of-use assets, net, consisted of the following (in thousands): September 30, 2019 Gross Amount Accumulated Amortization Net Operating lease right-of-use buildings $ 6,041 $ (971 ) $ 5,070 Operating lease right-of-use equipment 68 (26 ) 42 Operating lease right-of-use vehicles 344 (104 ) 240 Total $ 6,453 $ (1,101 ) $ 5,352 In the first half of 2019, we entered into a new operating lease for our corporate headquarters in South San Francisco, California which is expected to commence in early 2020. The lease term is approximately 10 years . We expect to recognize a right-of-use asset and lease liability of approximately $47.4 million, based on our current incremental collateralized borrowing rate, as a result of this lease. (in thousands) Nine Months Ended September 30, 2019 Operating lease cost (including variable costs) $ 4,660 Variable costs including non-lease component $ 2,051 Supplemental information: Cash paid for amounts included in the measurement of operating lease liabilities (included in net cash used in operating activities) Operating cash flows from operating leases $ 3,068 September 30, 2019 Weighted average remaining lease term (in years) 4.6 Weighted average discount rate 5.1 % Future minimum lease payments and minimum sublease income under non-cancelable operating leases as of September 30, 2019 , were as follows (in thousands): Fiscal Year Minimum Lease Payments for Operating Leases Minimum Sublease Income Net Amount 2019 (remainder of the year) $ 996 $ (132 ) $ 864 2020 1,956 (131 ) 1,825 2021 1,267 — 1,267 2022 932 — 932 2023 720 — 720 Thereafter 1,800 — 1,800 Total future minimum payments (income) $ 7,671 $ (263 ) $ 7,408 Less: imputed interest (849 ) Total $ 6,822 September 30, 2019 Operating lease liabilities, current $ 2,363 Operating lease liabilities, non-current 4,459 Total $ 6,822 Disclosures related to periods prior to adoption of ASC 842 Operating lease rent expense, net of amortization of lease incentives and sublease income was $1.2 million and $3.6 million for the three and nine months ended September 30, 2018 , respectively for the prior year comparative periods before the adoption of ASC 842. As of December 31, 2018, future minimum lease payment obligations and minimum sublease income, net of expenses, under noncancelable operating leases before the adoption of ASC 842 were disclosed as follows (in thousands): Fiscal Year Minimum Lease Payments for Operating Leases Minimum Sublease Income Net Amount 2019 $ 4,184 $ (520 ) $ 3,664 2020 2,213 (164 ) 2,049 2021 1,245 — 1,245 2022 827 — 827 2023 552 — 552 Thereafter 1,241 — 1,241 Total future minimum payments (income) $ 10,262 $ (684 ) $ 9,578 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The following tables summarize our cash and available-for-sale securities by significant category within the fair value hierarchy (in thousands): September 30, 2019 Amortized Cost Gross Unrealized Gain Gross Unrealized Loss Fair Value Cash and Cash Equivalents Short-Term Marketable Securities Cash- Restricted Assets: Cash-non-restricted $ 14,053 $ — $ — $ 14,053 $ 14,053 $ — $ — Cash-restricted 2,075 — — 2,075 — — 2,075 Total cash $ 16,128 $ — $ — $ 16,128 $ 14,053 $ — $ 2,075 Available-for-sale: Level I: Money market funds $ 11,833 $ — $ — $ 11,833 $ 11,833 $ — $ — U.S. treasury securities 36,825 50 — 36,875 — 36,875 — Subtotal $ 48,658 $ 50 $ — $ 48,708 $ 11,833 $ 36,875 $ — Total $ 64,786 $ 50 $ — $ 64,836 $ 25,886 $ 36,875 $ 2,075 December 31, 2018 Amortized Cost Gross Unrealized Gain Gross Unrealized Loss Fair Value Cash and Cash Equivalents Short-Term Marketable Securities Assets: Cash $ 17,685 $ — $ — $ 17,685 $ 17,685 $ — Available-for-sale: Level I: Money market funds $ 77,716 $ — $ — $ 77,716 $ 77,716 $ — U.S. treasury securities — — — — — — Subtotal $ 77,716 $ — $ — $ 77,716 $ 77,716 $ — Total $ 95,401 $ — $ — $ 95,401 $ 95,401 $ — There were no transfers between Level I and Level II measurements during the nine months ended September 30, 2019 , and December 31, 2018 , and there were no changes in the valuation techniques used. Convertible Notes The estimated fair value of the 2014 and 2018 Notes is based on a market approach and represents a Level II valuation. When determining the estimated fair value of our long-term debt, we used a commonly accepted valuation methodology and market-based risk measurements that are indirectly observable, such as credit risk. The following table summarizes the par value, carrying value and the estimated fair value of the 2014 and 2018 Notes at September 30, 2019 and December 31, 2018, respectively (in thousands): September 30, 2019 December 31, 2018 Par Value Carrying Value Fair Value Par Value Carrying Value Fair Value 2014 Notes $ 51,250 $ 49,853 $ 49,713 $ 51,250 $ 49,794 $ 43,665 2018 Notes — — — 149,999 122,264 171,843 Total $ 51,250 $ 49,853 $ 49,713 $ 201,249 $ 172,058 $ 215,508 |
Shareholders' Equity
Shareholders' Equity | 9 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholders’ Equity Conversion of 2018 Notes In the first quarter of 2019, we issued 19,460,260 shares of our common stock in connection with the conversion of our 2018 Notes (see Note 6). As a result of this issuance of common stock, we recorded a total of $133.3 million of equity, which is equivalent to the fair value of the bonds retired. |
Stock-Based Plans
Stock-Based Plans | 9 Months Ended |
Sep. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Plans | Stock-Based Plans Our board of directors sets the terms, conditions, and restrictions related to our Employee Stock Purchase Plan (ESPP) and the grant of stock options, restricted stock units (RSU) and performance-based awards under our other equity incentive plans. Our board of directors determines the number of shares subject to award grants and also sets vesting criteria. In general, our RSUs vest on a quarterly basis over a period of four years from the date of grant at a rate of 25% on the first anniversary of the grant date and ratably each quarter over the remaining 12 quarters, subject to the recipient employee’s continued employment. We may grant RSU awards with different vesting terms from time to time. Incentive stock options and non-statutory stock options granted under the 2011 Plan have a term of no more than ten years from the date of grant and an exercise price of at least 100% of the fair market value of the underlying common stock on the date of grant. If a participant owns stock representing more than 10% of the voting power of all classes of our stock on the grant date, an incentive stock option awarded to the participant will have a term of no more than five years from the date of grant and an exercise price of at least 110% of the fair market value of the underlying common stock on the date of grant. Generally, our options vest at a rate of either 25% on the first anniversary of the option grant date and ratably each month over the remaining period of 36 months, or ratably each month over 48 months. We may grant options with different vesting terms from time to time. For performance-based share awards, our board of directors sets the performance objectives and other vesting provisions in determining the number of shares or value of performance units and performance shares that will be paid out. Such payout will be a function of the extent to which performance objectives or other vesting provisions have been achieved. 2011 Equity Incentive Plan In January 2011, our board of directors adopted the 2011 Equity Incentive Plan (2011 Plan) under which incentive stock options, non-statutory stock options, RSUs, stock appreciation rights, performance units, and performance shares may be granted to our employees, directors, and consultants. In April 2019, our board of directors authorized, and in June 2019, our stockholders approved, the amendment and restatement of the 2011 Plan to make various changes, including increasing the number of shares reserved for issuance by approximately 5.0 million shares and extending the term of the 2011 Plan until April 2029. 2009 Equity Incentive Plan and 1999 Stock Option Plan Our 2009 Equity Incentive Plan (2009 Plan) terminated on the date the 2011 Plan was adopted. Options granted and shares issued under the 2009 Plan that were outstanding on the date the 2011 Plan became effective remained subject to the terms of the 2009 Plan. 2017 Inducement Award Plan In January 2017, we adopted the Fluidigm Corporation 2017 Inducement Award Plan (Inducement Plan) and reserved 2 million shares of our common stock for issuance pursuant to equity awards granted under the Inducement Plan. The Inducement Plan provided for the grant of equity-based awards and its terms were substantially similar to the 2011 Plan. In accordance with Rule 5635(c)(4) of the Nasdaq Listing Rules, awards under the Inducement Plan could only be made to individuals not previously our employees or non-employee members of our board of directors (or following such individuals' bona fide period of non-employment), as an inducement material to the individuals' entry into employment with us or in connection with a merger or acquisition, to the extent permitted by Rule 5635(c)(3) of the Nasdaq Listing Rules. In June 2019, concurrently with the increase in shares available for grant under the 2011 Plan, the Inducement Plan was terminated such that no further grants could be made thereunder. Options granted and shares issued under the Inducement Plan that were outstanding upon such termination remain outstanding subject to their terms and the terms of the Inducement Plan. Valuation and Expense Information We use the Black-Scholes option-pricing model to estimate the fair value of stock options granted under our equity incentive plans. We grant stock options at exercise prices not less than the fair value of our common stock at the date of grant. The fair value of RSUs granted to employees is valued using the fair market value of our common stock on the grant date. Activity under the 2011 Plan, the 2009 Plan, the 1999 Plan, and the Inducement Plan is as follows: Restricted Stock Units : Number of Units (in 000s) Weighted-Average Balance as of December 31, 2018 1,812 $ 7.09 RSU granted 1,638 $ 8.59 RSU released (525) $ 8.30 RSU forfeited (284) $ 7.97 Balance as of September 30, 2019 2,641 $ 7.69 As of September 30, 2019 , the unrecognized compensation costs related to outstanding unvested RSUs under our equity incentive plans were $17.4 million . We expect to recognize these costs over a weighted average period of 3.3 years. Stock Options : Number of Weighted-Average Weighted- Aggregate Balance as of December 31, 2018 2,385 $ 7.56 7.8 $ 5,991 Options granted 50 $ 13.08 $ — Options exercised (185 ) $ 5.73 $ 1,147 Options forfeited (164 ) $ 9.56 $ — Balance as of September 30, 2019 2,086 $ 7.69 7.1 $ 244 Vested as of September 30, 2019 1,264 $ 8.71 6.4 $ 190 Expected to vest as of September 30, 2019 822 $ 6.13 8.2 $ 54 The average grant date fair value of options granted in 2019 was $7.17 . As of September 30, 2019 , the unrecognized compensation costs related to outstanding unvested options under our equity incentive plans were $2.8 million. We expect to recognize these costs over a weighted average period of 2.0 years. Performance-based Awards: Performance Stock Units During the nine months ended September 30, 2019 , we granted 400,839 performance stock units to certain executive officers and senior level employees. The number of performance stock units ultimately earned under these awards is calculated based on the Total Shareholder Return (TSR) of our common stock as compared to the TSR of a defined group of peer companies during the three -year performance period. The percentage of performance stock units that vest will depend on our relative position at the end of the performance period and can range from 0% to 200% of the number of units granted. Under FASB ASC Topic 718, the provisions of the performance stock unit awards related to TSR are considered a market condition, and the effects of that market condition should be reflected in the grant date fair value of the awards. We used a Monte Carlo simulation pricing model to incorporate the market condition effects at our grant date with a weighted-average fair value of $16.90 per unit. Activity under the performance stock units is as follows: Number of Units (in 000s) Weighted-Average Balance as of December 31, 2018 155 $ 10.09 PSU granted 401 $ 16.90 PSU released — $ — PSU forfeited (9 ) $ 10.09 Balance as of September 30, 2019 547 $ 15.09 As of September 30, 2019 , the unrecognized compensation costs related to these awards were $6.2 million. We expect to recognize these costs over a weighted average period of 2.3 years. During the three and nine months ended September 30, 2019 , we also granted performance stock units to a certain employee. The number of performance stock units that ultimately vest under these awards is dependent on achieving certain discrete operational milestones between September 30, 2019 and December 31, 2020. Activity under these performance stock units is as follows: Number of Units (in 000s) Weighted-Average Balance as of December 31, 2018 — $ — PSU granted 68 $ 7.05 PSU released — $ — PSU forfeited — $ — Balance as of September 30, 2019 68 $ 7.05 Under FASB ASC Topic 718, the provisions of these performance stock units are considered to be a performance condition, and expense is only recognized when it is probable the related milestone will be achieved and the awards will vest. As of September 30, 2019 , the expense recognized for these awards has been immaterial. 2017 Employee Stock Purchase Plan Our ESPP offers U.S. and some non-U.S. employees the right to purchase shares of our common stock. Prior to June 2019, our ESPP had a six-month offering period, with a new period commencing on the first trading day on or after May 31 and November 30 of each year. Employees were eligible to participate through payroll deductions of up to 10% of their compensation. The purchase price at which shares were sold under the ESPP was 85% of the lower of the fair market value of a share of our common stock on the first day of the offering period or the last day of the offering period. Effective in June 2019, our ESPP was amended to offer a twelve-month offering period with two six-month purchase periods beginning on each of May 31 and November 30. Under the updated plan, the purchase price at which shares are sold for the first purchase period is 85% of the lower of the fair market value of a share of our common stock on the first day of the offering period or the last day of the first purchase period. For the second purchase period, the purchase price at which shares are sold is 85% of the lowest of the fair value of the common stock on the first day of the offering period, the last day of the offering period or the fair value of the common stock at the beginning of the second purchase period. Employees are eligible under the amended plan to participate through payroll deductions of up to 15% of their compensation. Employees may not purchase more than $25 thousand of stock for any calendar year. Share-based Compensation We recognized share-based compensation expense as follows (in thousands): Three Months Ended September 30, Nine months ended September 30, 2019 2018 2019 2018 Options and Restricted Stock Units $ 2,738 $ 2,185 $ 7,731 $ 5,699 Employee Stock Purchase Plan 291 118 561 358 Total Share-based Compensation $ 3,029 $ 2,303 $ 8,292 $ 6,057 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company’s quarterly provision for income taxes is based on an estimated effective annual income tax rate. The Company’s quarterly provision for income taxes also includes the tax impact of certain unusual or infrequently occurring items, if any, including changes in judgment about valuation allowances and effects of changes in tax laws or rates, in the interim period in which they occur. The Company recorded a tax benefit of $1.2 million and $2.3 million for the three and nine months ended September 30, 2019 , respectively. We recorded a tax benefit of $0.8 million and $2.2 million for the three and nine months ended September 30, 2018 , respectively. The benefit for all periods was primarily attributable to the tax benefit from the amortization of our acquisition-related deferred tax liability, partially offset by a provision from our foreign operations. The Company’s tax benefit for income taxes for the periods presented differs from the 21% U.S. Federal statutory rate for the three and nine months ended September 30, 2019 and 2018 , respectively, primarily due to maintaining a valuation allowance for deferred tax assets, which primarily consist of net operating loss carryforwards. Tax positions taken by the Company are subject to audits by multiple tax jurisdictions. The Company believes that it has provided adequate reserves for its uncertain tax positions for all tax years still open for assessment. The Company also believes that it does not have any tax position that will significantly increase or decrease within the next year. For the nine months ended September 30, 2019 , the Company did not recognize any material interest or penalties related to uncertain tax positions. Recording deferred tax assets is appropriate when realization of these assets is more likely than not. Assessing the realizability of deferred tax assets is dependent upon several factors including historical financial results. The deferred tax assets have been offset by valuation allowances. In the future we may release valuation allowances and recognize deferred tax assets in certain of our foreign subsidiaries depending on the achievement of future profitability in the relevant jurisdictions. Any release of valuation allowances could have the effect of decreasing the income tax provision in the period the valuation allowance is released. We continue to monitor the likelihood that we will be able to recover our deferred tax assets, including those for which a valuation allowance is recorded. There can be no assurance that we will generate profits in the future periods enabling us to fully realize our deferred tax assets. The timing of recording a valuation allowance or the reversal of such valuation allowance is subject to objective and subjective factors that cannot be readily predicted in advance. |
Information about Geographic Ar
Information about Geographic Areas | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Information about Geographic Areas | Information about Geographic Areas We operate in one reporting segment that develops, manufacturers and commercializes tools for life sciences research. Our chief executive officer manages our operations and evaluates our financial performance on a consolidated basis. For purposes of allocating resources and evaluating regional financial performance, our chief executive officer reviews separate sales information for the different regions of the world. Our general and administrative expenses and our research and development expenses are not allocated to any specific region. Most of our principal operations, other than manufacturing, and our decision-making functions are located at our corporate headquarters in the United States. A summary table of our total revenue by geographic areas of our customers and by product and service for the three and nine months ended September 30, 2019 and 2018 is included in Note 3 to the condensed consolidated financial statements of this quarterly report on Form 10-Q. Sales to customers in the United States represented $10.5 million or 40% , and $32.9 million or 39% of total revenues for the three and nine months ended September 30, 2019 , respectively. Sales to customers in the United States represented $13.2 million or 46% and $35.4 million or 44% of total revenues for the three and nine months ended September 30, 2018 , respectively. Sales to customers in China represented $3.9 million or 15% , and $11.4 million or 13% of total revenues for the three and nine months ended September 30, 2019 , respectively. Sales to customers in China represented $3.4 million or 12% , and $8.9 million or 11% of total revenues for the three and nine months ended September 30, 2018 , respectively. Except for China, no other foreign country or jurisdiction had sales in excess of 10% of our total revenue during the three and nine months ended September 30, 2019 and 2018 . No individual customer represented more than 10% of our total revenues for the three and nine months ended September 30, 2019 , and 2018 , respectively. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Indemnification From time to time, we have entered into indemnification provisions under certain of our agreements in the ordinary course of business, typically with business partners, customers, and suppliers. Pursuant to these agreements, we may indemnify, hold harmless, and agree to reimburse the indemnified parties on a case-by-case basis for losses suffered or incurred by the indemnified parties in connection with any patent or other intellectual property infringement claim by any third party with respect to our products. The term of these indemnification provisions is generally perpetual from the time of the execution of the agreement. The maximum potential amount of future payments we could be required to make under these indemnification provisions is typically not limited to a specific amount. In addition, we have entered into indemnification agreements with our officers, directors, and certain other employees. With certain exceptions, these agreements provide for indemnification for related expenses including, among others, attorneys’ fees, judgments, fines and settlement amounts incurred by any of these individuals in any action or proceeding. Contingencies |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (U.S. GAAP) and include the accounts of our wholly owned subsidiaries. As of September 30, 2019 , we had wholly owned subsidiaries in Singapore, Canada, the Netherlands, Japan, France, the United Kingdom, China, and Germany. All subsidiaries, except for Singapore, use their local currency as their functional currency. The Singapore subsidiary uses the U.S. dollar as its functional currency. All intercompany transactions and balances have been eliminated in consolidation. Certain prior period amounts in the condensed consolidated statements of cash flows were reclassified to conform with the current period presentation. These reclassifications were immaterial and did not affect prior period total assets, total liabilities, stockholders' equity, total revenue, total costs and expenses, loss from operations or net loss. |
Net Loss per Share | Net Loss per Share Our basic and diluted net loss per share is calculated by dividing net loss by the weighted-average number of shares of common stock outstanding for the period. Restricted stock units, performance awards, options to purchase common stock, and shares associated with the potential conversion of our convertible notes are considered to be potentially dilutive common shares but have been excluded from the calculation of diluted net loss per share as their effect is anti-dilutive for all periods presented. |
Revenue Recognition | Revenue Recognition We generate revenue primarily from the sale of our products and services. Product revenue is derived from the sale of instruments and consumables, including IFCs, assays and reagents. Service revenue is derived from the sale of instrument service contracts, repairs, installation, training and other specialized product support services. We receive grants from various governmental entities to perform research and development activities over contractually defined periods. Revenue is generally recognized provided that the conditions under which the grants were provided have been met and any remaining performance obligations are perfunctory. Revenue is reported net of any sales, use and value-added taxes we collect from customers as required by government authorities. We recognize revenue based on the amount of consideration we expect to receive in exchange for the goods and services we transfer to the customer. Our commercial arrangements typically include multiple distinct products and services, and we allocate revenue to these performance obligations based on their relative standalone selling prices. Standalone selling prices (SSP) are generally determined using observable data from recent transactions. In cases where sufficient data is not available, we estimate a product’s SSP using a cost plus a margin approach or by applying a discount to the product’s list price. Product Revenue We recognize product revenue at the point in time when control of the goods passes to the customer and we have an enforceable right to payment. This generally occurs either when the product is shipped from one of our facilities or when it arrives at the customer’s facility, based on the contractual terms. Customers generally do not have a unilateral right to return products after delivery. Invoices are generally issued at shipment and generally become due in 30 to 60 days. We sometimes perform shipping and handling activities after control of the product passes to the customer. We have made an accounting policy election to account for these activities as product fulfillment activities rather than as separate performance obligations. Service Revenue We recognize revenue from repairs, installation, training and other specialized product support services at the point in time the work is completed. Installation and training services are generally billed in advance of service. Repairs and other services are generally billed at the point the work is completed. Revenue associated with instrument service contracts is recognized on a straight-line basis over the life of the agreement, which is generally one to three years. We believe this time-elapsed approach is appropriate for service contracts because we provide services on demand throughout the term of the agreement. Invoices are generally issued in advance of service on a monthly, quarterly, annual or multi-year basis. Payments made in advance of service are reported on our consolidated balance sheet as deferred revenue. Contract Costs Incremental sales commission costs incurred to obtain instrument service contracts are capitalized and amortized to selling, general and administrative expense over the life of the contract, which is generally one to three years. As a practical expedient, we expense sales commissions associated with product support services that are delivered in less than one year as they are incurred. Sales commissions associated with the sale of products are expensed as they are incurred. Product Warranties We generally provide a one-year warranty on our instruments. We accrue for estimated warranty obligations at the time of product shipment. We periodically review our warranty liability and record adjustments based on the terms of warranties provided to customers, and historical and anticipated warranty claim experience. This expense is recorded as a component of cost of product revenue in the condensed consolidated statements of operations. Significant Judgments Applying the revenue recognition practices discussed above often requires significant judgment. Judgment is required when identifying performance obligations, estimating SSP and allocating purchasing consideration in multi-element arrangements and estimating the future amount of our warranty obligations. Moreover, significant judgment is required when interpreting commercial terms and determining when control of goods and services passes to the customer. Any material changes created by errors in judgment could have a material effect on our operating results and overall financial condition. |
Goodwill, Intangible Assets, and Other Long-lived Assets | Goodwill, Intangible Assets, and Other Long-lived Assets Goodwill, which has an indefinite useful life, represents the excess of cost over fair value of net assets acquired. Our intangible assets include developed technology, patents and licenses. The cost of identifiable intangible assets with finite lives is generally amortized on a straight-line basis over the assets’ respective estimated useful lives. Goodwill and intangible assets with indefinite lives are not subject to amortization but are tested for impairment on an annual basis during the fourth quarter or whenever events or changes in circumstances indicate the carrying amount of these assets may not be recoverable. Events or changes in circumstances that could affect the likelihood that we will be required to recognize an impairment charge include, but are not limited to, declines in our stock price or market capitalization, declines in our market share or revenues, and an increase in our losses. Any impairment charges could have a material adverse effect on our operating results and net asset value in the quarter in which we recognize the impairment charge. In evaluating our goodwill and intangible assets with indefinite lives for indications of impairment, we first conduct an assessment of qualitative factors to determine whether it is more likely than not that the fair value of our reporting unit is less than its carrying amount. If we determine that it is more likely than not that the fair value of our reporting unit is less than its carrying amount, we then conduct a two-step test for impairment of goodwill. In the first step, we compare the fair value of our reporting unit to its carrying value. If the fair value of our reporting unit exceeds its carrying value, goodwill is not considered impaired and no further analysis is required. If the carrying value of the reporting unit exceeds its fair value, then the second step of the impairment test must be performed in order to determine the implied fair value of the goodwill. If the carrying value of the goodwill exceeds its implied fair value, then an impairment loss equal to the difference would be recorded. |
Convertible Notes | Convertible Notes In February 2014, we closed an underwritten public offering of $201.3 million aggregate principal amount of our 2.75% Senior Convertible Notes due 2034 (2014 Notes). In March 2018, we entered into separate privately negotiated transactions with certain holders of our 2014 Notes to exchange $150.0 million in aggregate principal amount of the 2014 Notes for our new 2.75% Exchange Convertible Senior Notes due 2034 (2018 Notes). Following the exchange, approximately $51.3 million in aggregate principal amount of the 2014 Notes was outstanding in addition to $150.0 million in aggregate principal amount of the 2018 Notes. In the first quarter of 2019, the 2018 Notes were converted into 19.5 million shares of common stock and the 2018 Notes were retired. We recorded a loss of $9.0 million on the retirement of the 2018 Notes. |
Recent Accounting Changes and Accounting Pronouncements | Recent Accounting Changes and Accounting Pronouncements Adoption of New Accounting Guidance In February 2016, the FASB established Topic 842, Leases, by issuing Accounting Standards Update (ASU) No. 2016-02, which requires lessees to recognize operating leases on the balance sheet and disclose key information about leasing arrangements. Topic 842 was subsequently amended by ASU No. 2018-01, Land Easement Practical Expedient for Transition to Topic 842; ASU No. 2018-10, Codification Improvements to Topic 842, Leases; and ASU No. 2018-11, Targeted Improvements. The new standard establishes a right-of-use (ROU) model that requires a lessee to recognize a ROU asset and lease liability on the balance sheet for all leases with a term longer than 12 months. Leases are classified as finance or operating; the classification will impact the expense recognition in the income statement. Modified Retrospective Transition approach is required, applying the new standard to all leases existing at the date of initial application. An entity may choose to use either (1) its effective date or (2) the beginning of the earliest comparative period presented in the financial statements as its date of initial application. We adopted the new standard on January 1, 2019 and used the effective date of the standard as our date of initial application. Consequently, previously presented financial information has not been updated, and the disclosures required under the new standard have not been provided for dates and periods before January 1, 2019. For dates and periods prior to January 1, 2019, the original disclosures under ASC 840 are disclosed. The new standard provides several optional practical expedients in transition. We elected the ‘package of practical expedients,’ which permits us to not reassess under the new standard our prior conclusions about lease identification, lease classification and initial direct costs. We did not elect the use-of-hindsight or the practical expedient pertaining to land easements; the latter not being applicable to us. On adoption, we recognized $9.2 million of lease liabilities, based on the present value of the current minimum lease payments over the lease term, discounted using our collateralized incremental borrowing rate, with corresponding ROU assets of $ 7.4 million . The difference between the initial lease liability and ROU asset is attributable to deferred rent. There was no impact to retained earnings from the adoption of ASC 842. The new standard also provides certain accounting elections for an entity’s ongoing accounting. We have elected the short-term lease recognition exemption for all leases that qualify. This means, for those leases that qualify, we will not recognize ROU assets or lease liabilities for leases with an initial lease term of one year or less. We have also elected to not separate lease and nonlease components for our building leases. The nonlease components are generally variable in nature and are expected to represent most of our variable lease costs. Variable costs are expensed as incurred. We have taken a portfolio approach for our vehicle leases by country. Recent Accounting Pronouncements In August 2018, the FASB issued ASU 2018-15 Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40) which establishes new guidance on the accounting for costs incurred to implement a cloud computing arrangement that is considered a service arrangement. The new guidance requires the capitalization of such costs, aligning it with the accounting for costs associated with developing or obtaining internal-use software. The new guidance is effective for fiscal years beginning after December 15, 2019. We are currently evaluating the impact of adoption on our consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. The ASU eliminates the requirement for an entity to calculate the implied fair value of goodwill to measure a goodwill impairment charge. Instead, an entity performs its annual, or interim, goodwill impairment testing by comparing the fair value of a reporting unit with its carrying amount and recording an impairment charge for the amount by which the carrying amount exceeds the fair value. The ASU will be effective for annual and interim goodwill impairment testing performed for our fiscal year beginning January 1, 2020, with early adoption permitted. We are currently evaluating the effect that the updated standard will have on our consolidated financial statements. The FASB issued two ASUs related to financial instruments – credit losses. The ASUs issued were: (1) in June 2016, ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, and (2) in November 2018, ASU 2018-19 Codification Improvements to Topic 326, Financial Instruments—Credit Losses. ASU 2016-13 is intended to improve financial reporting by requiring more timely recording of credit losses on loans and other financial instruments held by financial institutions and other organizations. ASU 2018-19 clarifies that receivables arising from operating leases are not within the scope of the credit losses standard, but rather, should be accounted for in accordance with the leasing standard. These ASUs are effective for fiscal years beginning after December 15, 2019, and interim periods within those years, with early adoption permitted. We are evaluating the effect that ASU 2016‑13 and ASU 2018-19 will have on our consolidated financial statements and related disclosures. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Summary of potentially dilutive common shares excluded from computations of diluted net loss per share attributed to common stockholders | The following potentially dilutive common shares were excluded from the computation of diluted net loss per share for the three and nine months ended September 30, 2019 , and 2018 because including them would have been anti-dilutive (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Stock options, restricted stock units and performance awards 5,342 4,376 5,342 4,376 2018 Convertible Notes — 19,036 — 19,036 2018 Convertible Notes potential make-whole shares — 799 — 799 2014 Convertible Notes 916 916 916 916 Total 6,258 25,127 6,258 25,127 |
Summary of comprehensive loss | The components of accumulated other comprehensive loss, net of tax, for the three and nine months ended September 30, 2019 , are as follows (in thousands): Foreign Currency Translation Adjustment Net Unrealized Gain on Securities Accumulated Other Comprehensive Loss Balance at December 31, 2018 $ (687 ) $ — $ (687 ) Other comprehensive income 8 — 2 10 Balance at March 31, 2019 (679 ) 2 (677 ) Other comprehensive income (loss) (9 ) — 63 54 Balance at June 30, 2019 (688 ) 65 (623 ) Other comprehensive income (loss) (121 ) (14 ) (135 ) Balance at September 30, 2019 $ (809 ) $ 51 $ (758 ) |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Summary of disaggregation of revenue | The following table disaggregates our revenue for the three and nine months ended September 30, 2019 , and 2018 , respectively, by geographic area and by product, service and grant (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Geographic Markets: Americas $ 11,112 $ 13,654 $ 35,203 $ 37,008 Europe 9,092 8,783 28,465 26,365 Asia-Pacific 6,292 6,526 21,135 17,266 Total revenue $ 26,496 $ 28,963 $ 84,803 $ 80,639 Product, Service and Grant: Instruments $ 9,159 $ 13,890 $ 34,200 $ 31,831 Consumables 11,507 10,352 34,528 34,665 Product revenue 20,666 24,242 68,728 66,496 Service 5,630 4,721 15,875 14,143 Grant 200 — 200 — Total revenue $ 26,496 $ 28,963 $ 84,803 $ 80,639 |
Summary of expected timing of revenue recognition | The following table summarizes the expected timing of revenue recognition for unfulfilled performance obligations associated with instrument service contracts that were partially completed at September 30, 2019 (in thousands): Expected Revenue (1) 2019 (remainder of the year) $ 3,417 2020 8,425 2021 5,052 Thereafter 4,110 $ 21,004 _______ (1) Expected revenue includes both billed amounts included in deferred revenue and unbilled amounts that are not reflected in our consolidated financial statements and are subject to change if our customers decide to cancel or modify their contracts. Purchase orders for instrument service contracts can generally be canceled before the service period begins without penalty. |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets, net (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of finite-lived intangible assets | Intangible assets, net, were as follows (in thousands): September 30, 2019 Gross Amount Accumulated Amortization Net Weighted-Average Amortization Period Developed technology $ 112,000 $ (63,000 ) $ 49,000 10.0 years Patents and licenses $ 11,274 $ (7,640 ) $ 3,634 7.8 years December 31, 2018 Gross Amount Accumulated Amortization Net Weighted-Average Amortization Period Developed technology $ 112,000 $ (54,600 ) $ 57,400 10.0 years Patents and licenses $ 11,274 $ (6,861 ) $ 4,413 7.8 years |
Schedule of future amortization expense of intangible assets | Based on the carrying value of intangible assets, net, as of September 30, 2019 , the annual amortization expense is expected to be as follows (in thousands): Fiscal Year Developed Technology Amortization Expense Patents and Licenses Amortization Expense Total 2019 (remainder of the year) $ 2,800 $ 260 $ 3,060 2020 11,200 1,042 12,242 2021 11,200 887 12,087 2022 11,200 804 12,004 2023 11,200 634 11,834 Thereafter 1,400 7 1,407 Total $ 49,000 $ 3,634 $ 52,634 |
Balance Sheet Details (Tables)
Balance Sheet Details (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Balance Sheet Related Disclosures [Abstract] | |
Cash, cash equivalents and restricted cash | Cash, cash equivalents and restricted cash consisted of the following (in thousands): September 30, 2019 December 31, 2018 Cash and cash equivalents $ 25,886 $ 95,401 Restricted cash 2,075 — Cash, cash equivalents and restricted cash $ 27,961 $ 95,401 |
Cash, cash equivalents and restricted cash | Cash, cash equivalents and restricted cash consisted of the following (in thousands): September 30, 2019 December 31, 2018 Cash and cash equivalents $ 25,886 $ 95,401 Restricted cash 2,075 — Cash, cash equivalents and restricted cash $ 27,961 $ 95,401 |
Inventories | Inventories consisted of the following (in thousands): September 30, 2019 December 31, 2018 Raw materials $ 7,504 $ 5,996 Work-in-process 319 650 Finished goods 7,175 6,357 Total inventories, net $ 14,998 $ 13,003 |
Property and equipment, net | Property and equipment, net, consisted of the following (in thousands): September 30, 2019 December 31, 2018 Computer equipment and software $ 3,898 $ 4,201 Laboratory and manufacturing equipment 18,935 18,780 Leasehold improvements 7,663 7,173 Office furniture and fixtures 1,860 1,506 Property and equipment, gross 32,356 31,660 Less accumulated depreciation and amortization (23,967 ) (22,855 ) Construction-in-progress 7 20 Property and equipment, net $ 8,396 $ 8,825 |
Schedule of warranty accrual | Activity for our warranty accrual for the three and nine months ended September 30, 2019 , and 2018 , which is included in other accrued liabilities, is summarized below (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Beginning balance $ 1,091 $ 608 $ 863 $ 699 Accrual for warranties 255 458 912 1,195 Warranty costs incurred (239 ) (325 ) (668 ) (1,153 ) Ending balance $ 1,107 $ 741 $ 1,107 $ 741 |
Convertible Notes and Credit _2
Convertible Notes and Credit Facility (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of debt | The carrying values of the components of the 2014 Notes and the 2018 Notes are as follows (in thousands): September 30, 2019 December 31, 2018 2.75% 2014 Notes due 2034 Principal amount $ 51,250 $ 51,250 Unamortized debt discount (1,182 ) (1,232 ) Unamortized debt issuance cost (215 ) (224 ) $ 49,853 $ 49,794 2.75% 2018 Notes due 2034 Principal amount $ — $ 149,999 Premium accretion — 3,755 Unamortized debt discount — (29,558 ) Unamortized debt issuance cost — (1,932 ) $ — $ 122,264 $ 49,853 $ 172,058 The following table summarizes the par value, carrying value and the estimated fair value of the 2014 and 2018 Notes at September 30, 2019 and December 31, 2018, respectively (in thousands): September 30, 2019 December 31, 2018 Par Value Carrying Value Fair Value Par Value Carrying Value Fair Value 2014 Notes $ 51,250 $ 49,853 $ 49,713 $ 51,250 $ 49,794 $ 43,665 2018 Notes — — — 149,999 122,264 171,843 Total $ 51,250 $ 49,853 $ 49,713 $ 201,249 $ 172,058 $ 215,508 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Schedule of operating lease right-of-use assets, net | Operating lease right-of-use assets, net, consisted of the following (in thousands): September 30, 2019 Gross Amount Accumulated Amortization Net Operating lease right-of-use buildings $ 6,041 $ (971 ) $ 5,070 Operating lease right-of-use equipment 68 (26 ) 42 Operating lease right-of-use vehicles 344 (104 ) 240 Total $ 6,453 $ (1,101 ) $ 5,352 |
Schedule of operating lease cost | (in thousands) Nine Months Ended September 30, 2019 Operating lease cost (including variable costs) $ 4,660 Variable costs including non-lease component $ 2,051 Supplemental information: Cash paid for amounts included in the measurement of operating lease liabilities (included in net cash used in operating activities) Operating cash flows from operating leases $ 3,068 September 30, 2019 Weighted average remaining lease term (in years) 4.6 Weighted average discount rate 5.1 % |
Schedule of future minimum lease payments and minimum sublease income, net | Future minimum lease payments and minimum sublease income under non-cancelable operating leases as of September 30, 2019 , were as follows (in thousands): Fiscal Year Minimum Lease Payments for Operating Leases Minimum Sublease Income Net Amount 2019 (remainder of the year) $ 996 $ (132 ) $ 864 2020 1,956 (131 ) 1,825 2021 1,267 — 1,267 2022 932 — 932 2023 720 — 720 Thereafter 1,800 — 1,800 Total future minimum payments (income) $ 7,671 $ (263 ) $ 7,408 Less: imputed interest (849 ) Total $ 6,822 September 30, 2019 Operating lease liabilities, current $ 2,363 Operating lease liabilities, non-current 4,459 Total $ 6,822 |
Schedule of future minimum rental payments for operating leases | As of December 31, 2018, future minimum lease payment obligations and minimum sublease income, net of expenses, under noncancelable operating leases before the adoption of ASC 842 were disclosed as follows (in thousands): Fiscal Year Minimum Lease Payments for Operating Leases Minimum Sublease Income Net Amount 2019 $ 4,184 $ (520 ) $ 3,664 2020 2,213 (164 ) 2,049 2021 1,245 — 1,245 2022 827 — 827 2023 552 — 552 Thereafter 1,241 — 1,241 Total future minimum payments (income) $ 10,262 $ (684 ) $ 9,578 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Summary of investments | The following tables summarize our cash and available-for-sale securities by significant category within the fair value hierarchy (in thousands): September 30, 2019 Amortized Cost Gross Unrealized Gain Gross Unrealized Loss Fair Value Cash and Cash Equivalents Short-Term Marketable Securities Cash- Restricted Assets: Cash-non-restricted $ 14,053 $ — $ — $ 14,053 $ 14,053 $ — $ — Cash-restricted 2,075 — — 2,075 — — 2,075 Total cash $ 16,128 $ — $ — $ 16,128 $ 14,053 $ — $ 2,075 Available-for-sale: Level I: Money market funds $ 11,833 $ — $ — $ 11,833 $ 11,833 $ — $ — U.S. treasury securities 36,825 50 — 36,875 — 36,875 — Subtotal $ 48,658 $ 50 $ — $ 48,708 $ 11,833 $ 36,875 $ — Total $ 64,786 $ 50 $ — $ 64,836 $ 25,886 $ 36,875 $ 2,075 December 31, 2018 Amortized Cost Gross Unrealized Gain Gross Unrealized Loss Fair Value Cash and Cash Equivalents Short-Term Marketable Securities Assets: Cash $ 17,685 $ — $ — $ 17,685 $ 17,685 $ — Available-for-sale: Level I: Money market funds $ 77,716 $ — $ — $ 77,716 $ 77,716 $ — U.S. treasury securities — — — — — — Subtotal $ 77,716 $ — $ — $ 77,716 $ 77,716 $ — Total $ 95,401 $ — $ — $ 95,401 $ 95,401 $ — |
Schedule of debt | The carrying values of the components of the 2014 Notes and the 2018 Notes are as follows (in thousands): September 30, 2019 December 31, 2018 2.75% 2014 Notes due 2034 Principal amount $ 51,250 $ 51,250 Unamortized debt discount (1,182 ) (1,232 ) Unamortized debt issuance cost (215 ) (224 ) $ 49,853 $ 49,794 2.75% 2018 Notes due 2034 Principal amount $ — $ 149,999 Premium accretion — 3,755 Unamortized debt discount — (29,558 ) Unamortized debt issuance cost — (1,932 ) $ — $ 122,264 $ 49,853 $ 172,058 The following table summarizes the par value, carrying value and the estimated fair value of the 2014 and 2018 Notes at September 30, 2019 and December 31, 2018, respectively (in thousands): September 30, 2019 December 31, 2018 Par Value Carrying Value Fair Value Par Value Carrying Value Fair Value 2014 Notes $ 51,250 $ 49,853 $ 49,713 $ 51,250 $ 49,794 $ 43,665 2018 Notes — — — 149,999 122,264 171,843 Total $ 51,250 $ 49,853 $ 49,713 $ 201,249 $ 172,058 $ 215,508 |
Stock-Based Plans (Tables)
Stock-Based Plans (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of restricted stock units | Restricted Stock Units : Number of Units (in 000s) Weighted-Average Balance as of December 31, 2018 1,812 $ 7.09 RSU granted 1,638 $ 8.59 RSU released (525) $ 8.30 RSU forfeited (284) $ 7.97 Balance as of September 30, 2019 2,641 $ 7.69 |
Schedule of stock options | Stock Options : Number of Weighted-Average Weighted- Aggregate Balance as of December 31, 2018 2,385 $ 7.56 7.8 $ 5,991 Options granted 50 $ 13.08 $ — Options exercised (185 ) $ 5.73 $ 1,147 Options forfeited (164 ) $ 9.56 $ — Balance as of September 30, 2019 2,086 $ 7.69 7.1 $ 244 Vested as of September 30, 2019 1,264 $ 8.71 6.4 $ 190 Expected to vest as of September 30, 2019 822 $ 6.13 8.2 $ 54 |
Schedule of stock activity under the performance stock units | Activity under the performance stock units is as follows: Number of Units (in 000s) Weighted-Average Balance as of December 31, 2018 155 $ 10.09 PSU granted 401 $ 16.90 PSU released — $ — PSU forfeited (9 ) $ 10.09 Balance as of September 30, 2019 547 $ 15.09 Number of Units (in 000s) Weighted-Average Balance as of December 31, 2018 — $ — PSU granted 68 $ 7.05 PSU released — $ — PSU forfeited — $ — Balance as of September 30, 2019 68 $ 7.05 |
Schedule of share-based compensation expense | We recognized share-based compensation expense as follows (in thousands): Three Months Ended September 30, Nine months ended September 30, 2019 2018 2019 2018 Options and Restricted Stock Units $ 2,738 $ 2,185 $ 7,731 $ 5,699 Employee Stock Purchase Plan 291 118 561 358 Total Share-based Compensation $ 3,029 $ 2,303 $ 8,292 $ 6,057 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Net Loss per Share (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Potentially dilutive common shares excluded from the computation of diluted net loss per share (shares) | 6,258 | 25,127 | 6,258 | 25,127 |
Stock options, restricted stock units and performance awards | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Potentially dilutive common shares excluded from the computation of diluted net loss per share (shares) | 5,342 | 4,376 | 5,342 | 4,376 |
Convertible Notes | 2018 Convertible Notes | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Potentially dilutive common shares excluded from the computation of diluted net loss per share (shares) | 0 | 19,036 | 0 | 19,036 |
Convertible Notes | 2018 Convertible Notes potential make-whole shares | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Potentially dilutive common shares excluded from the computation of diluted net loss per share (shares) | 0 | 799 | 0 | 799 |
Convertible Notes | 2014 Convertible Notes | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Potentially dilutive common shares excluded from the computation of diluted net loss per share (shares) | 916 | 916 | 916 | 916 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||||
Beginning Balance | $ 172,640 | $ 182,245 | $ 72,116 | $ 34,831 | $ 48,574 | $ 30,935 | $ 72,116 | $ 30,935 |
Other comprehensive income (loss) | (135) | 54 | 10 | (10) | 28 | 42 | (71) | 58 |
Ending Balance | 162,605 | 172,640 | 182,245 | 22,411 | 34,831 | 48,574 | 162,605 | 22,411 |
Foreign Currency Translation Adjustment | ||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||||
Beginning Balance | (688) | (679) | (687) | (687) | ||||
Other comprehensive income (loss) | (121) | (9) | 8 | |||||
Ending Balance | (809) | (688) | (679) | (809) | ||||
Net Unrealized Gain on Securities | ||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||||
Beginning Balance | 65 | 2 | 0 | 0 | ||||
Other comprehensive income (loss) | (14) | 63 | 2 | |||||
Ending Balance | 51 | 65 | 2 | 51 | ||||
Accumulated Other Comprehensive Loss | ||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||||
Beginning Balance | (623) | (677) | (687) | (504) | (532) | (574) | (687) | (574) |
Other comprehensive income (loss) | (135) | 54 | 10 | 28 | 42 | |||
Ending Balance | $ (758) | $ (623) | $ (677) | $ (516) | $ (504) | $ (532) | $ (758) | $ (516) |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Revenue Recognition (Details) | 9 Months Ended |
Sep. 30, 2019 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Product warranty term (in years) | 1 year |
Minimum | Product revenue | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Terms of payment period (in days) | 30 days |
Minimum | Service revenue | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Revenue recognition period (in years) | 1 year |
Maximum | Product revenue | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Terms of payment period (in days) | 60 days |
Maximum | Service revenue | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Revenue recognition period (in years) | 3 years |
Commission Costs | Minimum | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Revenue recognition period (in years) | 1 year |
Commission Costs | Maximum | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Revenue recognition period (in years) | 3 years |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Convertible Notes (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||
Feb. 28, 2019 | Mar. 31, 2018 | Sep. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | Jun. 30, 2018 | Mar. 12, 2018 | Feb. 28, 2014 | |
Extinguishment of Debt [Line Items] | |||||||||||
Loss on extinguishment of debt | $ 0 | $ 0 | $ (9,000,000) | $ 0 | |||||||
Convertible Debt | |||||||||||
Extinguishment of Debt [Line Items] | |||||||||||
Aggregate principal amount | $ 150,000,000 | 51,250,000 | 51,250,000 | $ 201,249,000 | |||||||
2014 Notes | Convertible Debt | |||||||||||
Extinguishment of Debt [Line Items] | |||||||||||
Aggregate principal amount | $ 51,250,000 | $ 51,250,000 | 51,250,000 | $ 201,300,000 | |||||||
Interest rate on notes | 2.75% | 2.75% | 2.75% | ||||||||
2018 Notes | Convertible Debt | |||||||||||
Extinguishment of Debt [Line Items] | |||||||||||
Aggregate principal amount | $ 150,000,000 | $ 0 | $ 0 | $ 149,999,000 | $ 150,000,000 | ||||||
Interest rate on notes | 2.75% | 2.75% | 2.75% | 2.75% | |||||||
Aggregate principal loan outstanding | $ 51,300,000 | ||||||||||
Loss on extinguishment of debt | $ 100,000 | ||||||||||
Common Stock | 2014 Notes | Convertible Debt | |||||||||||
Extinguishment of Debt [Line Items] | |||||||||||
Conversion of debt into common stock (in shares) | 19,500,000 | 19,500,000 | |||||||||
Loss on extinguishment of debt | $ 9,000,000 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Adoption of New Accounting Guidance (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | Feb. 28, 2014 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Reorganized lease liabilities | $ 6,822 | ||
Right-of-use asset | $ 5,352 | $ 0 | |
Accounting Standards Update 2016-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Reorganized lease liabilities | $ 9,200 | ||
Right-of-use asset | $ 7,400 |
Revenue - Summary of Disaggrega
Revenue - Summary of Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total revenue | $ 26,496 | $ 28,963 | $ 84,803 | $ 80,639 |
Instruments | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total revenue | 9,159 | 13,890 | 34,200 | 31,831 |
Consumables | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total revenue | 11,507 | 10,352 | 34,528 | 34,665 |
Product revenue | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total revenue | 20,666 | 24,242 | 68,728 | 66,496 |
Service | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total revenue | 5,630 | 4,721 | 15,875 | 14,143 |
Grant | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total revenue | 200 | 0 | 200 | 0 |
Americas | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total revenue | 11,112 | 13,654 | 35,203 | 37,008 |
Europe | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total revenue | 9,092 | 8,783 | 28,465 | 26,365 |
Asia-Pacific | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total revenue | $ 6,292 | $ 6,526 | $ 21,135 | $ 17,266 |
Revenue - Narrative (Details)
Revenue - Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | ||
Deferred service contracts revenue | $ 19.4 | $ 17.8 |
Revenue recognized at opening | 9 | |
Additional advanced payments | 10.6 | |
Commission Costs | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Capitalized contract cost, net | $ 0.4 | $ 0.4 |
Revenue - Performance Obligatio
Revenue - Performance Obligations (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Revenue from Contract with Customer [Abstract] | |
Remaining performance obligation | $ 21,004 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-10-01 | |
Revenue from Contract with Customer [Abstract] | |
Remaining performance obligation | $ 3,417 |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Expected timing of satisfaction, period | 3 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Remaining performance obligation | $ 8,425 |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Remaining performance obligation | $ 5,052 |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Remaining performance obligation | $ 4,110 |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Expected timing of satisfaction, period |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets, net - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Feb. 28, 2014 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Amortization of intangible assets | $ 8,400 | $ 8,400 | |||
DVS Sciences, Inc. | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Preliminary goodwill | $ 104,100 | ||||
Amortization of intangible assets | $ 3,000 | $ 3,100 | $ 9,200 | $ 9,300 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets, net - Schedule of Finite-lived Intangible Assets (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Dec. 31, 2018 | |
Finite-Lived Intangible Assets [Line Items] | ||
Net | $ 52,634 | |
Developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | 112,000 | $ 112,000 |
Accumulated Amortization | (63,000) | (54,600) |
Net | $ 49,000 | $ 57,400 |
Weighted-Average Amortization Period (in years) | 10 years | 10 years |
Patents and licenses | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | $ 11,274 | $ 11,274 |
Accumulated Amortization | (7,640) | (6,861) |
Net | $ 3,634 | $ 4,413 |
Weighted-Average Amortization Period (in years) | 7 years 9 months 18 days | 7 years 9 months 18 days |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets, net - Future Amortization Expense (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Finite-Lived Intangible Assets [Line Items] | ||
2019 (remainder of the year) | $ 3,060 | |
2020 | 12,242 | |
2021 | 12,087 | |
2022 | 12,004 | |
2023 | 11,834 | |
Thereafter | 1,407 | |
Net | 52,634 | |
Developed Technology Amortization Expense | ||
Finite-Lived Intangible Assets [Line Items] | ||
2019 (remainder of the year) | 2,800 | |
2020 | 11,200 | |
2021 | 11,200 | |
2022 | 11,200 | |
2023 | 11,200 | |
Thereafter | 1,400 | |
Net | 49,000 | $ 57,400 |
Patents and Licenses Amortization Expense | ||
Finite-Lived Intangible Assets [Line Items] | ||
2019 (remainder of the year) | 260 | |
2020 | 1,042 | |
2021 | 887 | |
2022 | 804 | |
2023 | 634 | |
Thereafter | 7 | |
Net | $ 3,634 | $ 4,413 |
Balance Sheet Details - Cash, C
Balance Sheet Details - Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2017 |
Balance Sheet Related Disclosures [Abstract] | ||||
Cash and cash equivalents | $ 25,886 | $ 95,401 | ||
Restricted cash | 2,075 | 0 | ||
Cash, cash equivalents and restricted cash | 27,961 | $ 95,401 | $ 35,829 | $ 58,056 |
Short-term restricted cash | 1,100 | |||
Non-current restricted cash | $ 1,000 |
Balance Sheet Details - Invento
Balance Sheet Details - Inventories (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Balance Sheet Related Disclosures [Abstract] | ||
Raw materials | $ 7,504 | $ 5,996 |
Work-in-process | 319 | 650 |
Finished goods | 7,175 | 6,357 |
Total inventories, net | $ 14,998 | $ 13,003 |
Balance Sheet Details - Propert
Balance Sheet Details - Property and Equipment, net (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, excluding construction in process, gross | $ 32,356 | $ 31,660 |
Less accumulated depreciation and amortization | (23,967) | (22,855) |
Construction-in-progress | 7 | 20 |
Property and equipment, net | 8,396 | 8,825 |
Computer equipment and software | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 3,898 | 4,201 |
Laboratory and manufacturing equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 18,935 | 18,780 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 7,663 | 7,173 |
Office furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 1,860 | $ 1,506 |
Balance Sheet Details - Warrant
Balance Sheet Details - Warranty (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||||
Beginning balance | $ 1,091 | $ 608 | $ 863 | $ 699 |
Accrual for warranties | 255 | 458 | 912 | 1,195 |
Warranty costs incurred | (239) | (325) | (668) | (1,153) |
Ending balance | $ 1,107 | $ 741 | $ 1,107 | $ 741 |
Convertible Notes and Credit _3
Convertible Notes and Credit Facility - Narrative (Details) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||||||
Feb. 28, 2019USD ($)shares | Aug. 31, 2018USD ($) | Mar. 31, 2018USD ($) | Feb. 28, 2014USD ($)$ / shares | Sep. 30, 2019USD ($)$ / shares | Mar. 31, 2019USD ($)shares | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($)$ / shares | Sep. 30, 2018USD ($) | Dec. 31, 2018USD ($)$ / shares | Jun. 30, 2018USD ($) | Mar. 12, 2018USD ($) | |
Debt Instrument [Line Items] | ||||||||||||
Common stock, par value (usd per share) | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | |||||||||
Debt offering-related expenses | $ 128,000 | $ 2,779,000 | ||||||||||
Gain (loss) on extinguishment of convertible notes | $ 0 | $ 0 | (9,000,000) | $ 0 | ||||||||
Convertible Debt | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Aggregate principal amount | $ 150,000,000 | 51,250,000 | 51,250,000 | $ 201,249,000 | ||||||||
Convertible Debt | Trustee | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Maximum borrowing capacity | 11,900,000 | $ 138,100,000 | ||||||||||
Convertible Debt | 2014 Notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Aggregate principal amount | $ 201,300,000 | $ 51,250,000 | $ 51,250,000 | 51,250,000 | ||||||||
Interest rate on notes | 2.75% | 2.75% | 2.75% | |||||||||
Initial conversion rate of notes | 17.8750 | |||||||||||
Common stock, par value (usd per share) | $ / shares | $ 0.001 | |||||||||||
Initial conversion price of stock (usd per share) | $ / shares | $ 55.94 | |||||||||||
Debt instrument redemption price when undergo fundamental change (in percent) | 100.00% | |||||||||||
Proceeds from issuance of convertible notes, net | $ 195,200,000 | |||||||||||
Debt offering-related expenses | 1,100,000 | |||||||||||
Underwriting discount | $ 6,000,000 | $ 1,182,000 | $ 1,182,000 | 1,232,000 | ||||||||
Aggregate principal loan outstanding | 51,250,000 | 51,250,000 | 51,250,000 | |||||||||
Convertible Debt | 2014 Notes | Period One | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt redemption conditioned upon common stock value exceeding a percentage of the conversion price | 130.00% | |||||||||||
Convertible Debt | 2014 Notes | Period Two | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument redemption price (as percent) | 100.00% | |||||||||||
Convertible Debt | 2014 Notes | Period Three | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument redemption price (as percent) | 100.00% | |||||||||||
Convertible Debt | 2018 Notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Aggregate principal amount | $ 150,000,000 | $ 0 | $ 0 | 149,999,000 | $ 150,000,000 | |||||||
Interest rate on notes | 2.75% | 2.75% | 2.75% | 2.75% | ||||||||
Initial conversion rate of notes | 126.9438 | |||||||||||
Common stock, par value (usd per share) | $ / shares | $ 0.001 | $ 0.001 | ||||||||||
Initial conversion price of stock (usd per share) | $ / shares | $ 7.88 | $ 7.88 | ||||||||||
Debt redemption conditioned upon common stock value exceeding a percentage of the conversion price | 110.00% | |||||||||||
Debt instrument redemption price when undergo fundamental change (in percent) | 100.00% | |||||||||||
Underwriting discount | $ 0 | $ 0 | 29,558,000 | |||||||||
Aggregate principal loan outstanding | $ 150,000,000 | 0 | 0 | $ 149,999,000 | ||||||||
Fair value of debt | $ 145,500,000 | |||||||||||
Gain (loss) on extinguishment of convertible notes | $ 100,000 | |||||||||||
Debt instrument, redemption price, percentage of principal amount redeemed | 120.00% | |||||||||||
Value of conversion option recorded in additional paid in capital | $ 29,300,000 | |||||||||||
Offering related costs | $ 2,800,000 | |||||||||||
Debt issuance costs | 2,200,000 | 2,200,000 | ||||||||||
Equity issuance costs | 600,000 | |||||||||||
Maximum borrowing capacity | $ 51,300,000 | |||||||||||
Convertible Debt | 2018 Notes | Trustee | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Gain (loss) on extinguishment of convertible notes | (9,000,000) | |||||||||||
Secured Debt | Revolving Credit Facility | Silicon Valley Bank | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate on notes | 5.50% | |||||||||||
Debt issuance costs | $ 335,000 | |||||||||||
Maximum borrowing capacity | $ 15,000,000 | |||||||||||
Maximum borrowing capacity, percentage of eligible receivables | 85.00% | |||||||||||
Maximum borrowing capacity, percentage of eligible inventory | 50.00% | |||||||||||
Availability under the credit facility | 9,000,000 | 9,000,000 | ||||||||||
Outstanding line of credit | $ 0 | $ 0 | ||||||||||
Unused borrowing capacity fee, percent | 0.75% | |||||||||||
Commitment fee amount | $ 225,000 | |||||||||||
Increase in interest due to default (as percent) | 5.00% | |||||||||||
Secured Debt | Revolving Credit Facility | Silicon Valley Bank | Prime Rate | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Basis spread on variable rate | 0.50% | |||||||||||
Secured Debt | Period One | Revolving Credit Facility | Silicon Valley Bank | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Percent of prepayment fee | 2.00% | |||||||||||
Secured Debt | Period Two | Revolving Credit Facility | Silicon Valley Bank | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Percent of prepayment fee | 1.00% | |||||||||||
Common Stock | Convertible Debt | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Net proceeds from issuance of common stock | $ 133,300,000 | |||||||||||
Common Stock | Convertible Debt | 2014 Notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Gain (loss) on extinguishment of convertible notes | $ 9,000,000 | |||||||||||
Conversion of debt into common stock (in shares) | shares | 19,500,000 | 19,500,000 |
Convertible Notes and Credit _4
Convertible Notes and Credit Facility - Components of Notes (Details) - Convertible Debt - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Feb. 28, 2014 |
Debt Instrument [Line Items] | |||||
Net carrying value of convertible notes | $ 49,853 | $ 172,058 | |||
2014 Notes | |||||
Debt Instrument [Line Items] | |||||
Interest rate on notes | 2.75% | 2.75% | |||
Principal amount | $ 51,250 | 51,250 | |||
Unamortized debt discount | (1,182) | (1,232) | $ (6,000) | ||
Unamortized debt issuance cost | (215) | (224) | |||
Net carrying value of convertible notes | $ 49,853 | 49,794 | |||
2018 Notes | |||||
Debt Instrument [Line Items] | |||||
Interest rate on notes | 2.75% | 2.75% | 2.75% | ||
Principal amount | $ 0 | 149,999 | $ 150,000 | ||
Premium accretion | 0 | 3,755 | |||
Unamortized debt discount | 0 | (29,558) | |||
Unamortized debt issuance cost | 0 | (1,932) | |||
Net carrying value of convertible notes | $ 0 | $ 122,264 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2018 | Sep. 30, 2019 | Dec. 31, 2018 | |
Operating Leased Assets [Line Items] | ||||
Renewal term (in years) | 5 years | |||
Right-of-use asset | $ 5,352 | $ 0 | ||
Reorganized lease liabilities | $ 6,822 | |||
Operating lease rent expense, amortization of lease incentives and sublease income | $ 1,200 | $ 3,600 | ||
Minimum | ||||
Operating Leased Assets [Line Items] | ||||
Term of contract (in years) | 1 year | |||
Maximum | ||||
Operating Leased Assets [Line Items] | ||||
Term of contract (in years) | 8 years | |||
California | ||||
Operating Leased Assets [Line Items] | ||||
Term of contract (in years) | 10 years | |||
Right-of-use asset | $ 47,400 | |||
Reorganized lease liabilities | $ 46,400 |
Leases - Schedule of Operating
Leases - Schedule of Operating Lease, Right-of-Use Asset (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Operating Leased Assets [Line Items] | ||
Gross Amount | $ 6,453 | |
Accumulated Amortization | (1,101) | |
Net | 5,352 | $ 0 |
Operating lease right-of-use buildings | ||
Operating Leased Assets [Line Items] | ||
Gross Amount | 6,041 | |
Accumulated Amortization | (971) | |
Net | 5,070 | |
Operating lease right-of-use equipment | ||
Operating Leased Assets [Line Items] | ||
Gross Amount | 68 | |
Accumulated Amortization | (26) | |
Net | 42 | |
Operating lease right-of-use vehicles | ||
Operating Leased Assets [Line Items] | ||
Gross Amount | 344 | |
Accumulated Amortization | (104) | |
Net | $ 240 |
Leases - Schedule of Operatin_2
Leases - Schedule of Operating Lease Cost (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Leases [Abstract] | |
Operating lease cost (including variable costs) | $ 4,660 |
Variable costs including non-lease component | 2,051 |
Cash paid for amounts included in the measurement of operating lease liabilities (included in net cash used in operating activities) | |
Operating cash flows from operating leases | $ 3,068 |
Weighted average remaining lease term (in years) | 4 years 7 months 6 days |
Weighted average discount rate | 5.10% |
Leases - Operating Lease Maturi
Leases - Operating Lease Maturity (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Minimum Lease Payments for Operating Leases | ||
2019 (remainder of the year) | $ 996 | |
2020 | 1,956 | |
2021 | 1,267 | |
2022 | 932 | |
2023 | 720 | |
Thereafter | 1,800 | |
Total future minimum payments (income) | 7,671 | |
Less: imputed interest | (849) | |
Total | 6,822 | |
Operating lease liabilities, current | 2,363 | $ 0 |
Operating lease liabilities, non-current | 4,459 | 0 |
Minimum Sublease Income | ||
2019 (remainder of the year) | (132) | |
2020 | (131) | |
2021 | 0 | |
2022 | 0 | |
2023 | 0 | |
Thereafter | 0 | |
Total future minimum payments (income) | (263) | $ (684) |
Net Amount | ||
2019 (remainder of the year) | 864 | |
2020 | 1,825 | |
2021 | 1,267 | |
2022 | 932 | |
2023 | 720 | |
Thereafter | 1,800 | |
Total future minimum payments (income) | $ 7,408 |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Lease Payments (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Minimum Lease Payments for Operating Leases | ||
2019 | $ 4,184 | |
2020 | 2,213 | |
2021 | 1,245 | |
2022 | 827 | |
2023 | 552 | |
Thereafter | 1,241 | |
Total future minimum payments (income) | 10,262 | |
Minimum Sublease Income | ||
2019 | (520) | |
2020 | (164) | |
2021 | 0 | |
2022 | 0 | |
2023 | 0 | |
Thereafter | 0 | |
Total future minimum payments (income) | $ 263 | 684 |
Net Amount | ||
2019 | 3,664 | |
2020 | 2,049 | |
2021 | 1,245 | |
2022 | 827 | |
2023 | 552 | |
Thereafter | 1,241 | |
Total future minimum payments (income) | $ 9,578 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Summary of Investments and Cash Equivalents (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash-non-restricted | $ 14,053 | $ 17,685 |
Cash-restricted | 2,075 | |
Total cash | 16,128 | |
Carrying Amount | 64,786 | 95,401 |
Gross Unrealized Gain | 50 | 0 |
Gross Unrealized Loss | 0 | 0 |
Fair Value | 64,836 | 95,401 |
Cash and cash equivalents, and investments | 25,886 | 95,401 |
Short-Term Marketable Securities | 36,875 | 0 |
Cash- Restricted | 2,075 | |
Level I | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash-non-restricted | 11,833 | 77,716 |
Carrying Amount | 48,658 | 77,716 |
Gross Unrealized Gain | 50 | 0 |
Gross Unrealized Loss | 0 | 0 |
Fair Value | 48,708 | 77,716 |
Short-Term Marketable Securities | 36,875 | 0 |
Cash- Restricted | 0 | |
Level I | Money market funds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash-non-restricted | 11,833 | 77,716 |
Carrying Amount | 11,833 | 77,716 |
Gross Unrealized Gain | 0 | 0 |
Gross Unrealized Loss | 0 | 0 |
Fair Value | 11,833 | 77,716 |
Short-Term Marketable Securities | 0 | 0 |
Cash- Restricted | 0 | |
Level I | U.S. treasury securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash-non-restricted | 0 | 0 |
Carrying Amount | 36,825 | 0 |
Gross Unrealized Gain | 50 | 0 |
Gross Unrealized Loss | 0 | 0 |
Fair Value | 36,875 | 0 |
Short-Term Marketable Securities | 36,875 | $ 0 |
Cash- Restricted | $ 0 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Schedule of Debt (Details) - Convertible Debt - USD ($) | Sep. 30, 2019 | Feb. 28, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Mar. 12, 2018 | Feb. 28, 2014 |
Debt Instrument [Line Items] | ||||||
Par Value | $ 51,250,000 | $ 150,000,000 | $ 201,249,000 | |||
2014 Notes | ||||||
Debt Instrument [Line Items] | ||||||
Par Value | 51,250,000 | 51,250,000 | $ 201,300,000 | |||
2018 Notes | ||||||
Debt Instrument [Line Items] | ||||||
Par Value | 0 | 149,999,000 | $ 150,000,000 | $ 150,000,000 | ||
Carrying Value | ||||||
Debt Instrument [Line Items] | ||||||
Fair value disclosure of notes | 49,853,000 | 172,058,000 | ||||
Carrying Value | 2014 Notes | ||||||
Debt Instrument [Line Items] | ||||||
Fair value disclosure of notes | 49,853,000 | 49,794,000 | ||||
Carrying Value | 2018 Notes | ||||||
Debt Instrument [Line Items] | ||||||
Fair value disclosure of notes | 0 | 122,264,000 | ||||
Fair Value | ||||||
Debt Instrument [Line Items] | ||||||
Fair value disclosure of notes | 49,713,000 | 215,508,000 | ||||
Fair Value | 2014 Notes | ||||||
Debt Instrument [Line Items] | ||||||
Fair value disclosure of notes | 49,713,000 | 43,665,000 | ||||
Fair Value | 2018 Notes | ||||||
Debt Instrument [Line Items] | ||||||
Fair value disclosure of notes | $ 0 | $ 171,843,000 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - Common Stock - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended |
Feb. 28, 2019 | Mar. 31, 2019 | |
Subsidiary, Sale of Stock [Line Items] | ||
Shares sold (shares) | 19,460,000 | |
Convertible Debt | ||
Subsidiary, Sale of Stock [Line Items] | ||
Shares sold (shares) | 19,460,260 | |
Net proceeds from issuance of common stock | $ 133.3 |
Stock-Based Plans - Narrative (
Stock-Based Plans - Narrative (Details) | Jun. 01, 2019 | Jun. 30, 2019USD ($)purchase | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($)$ / sharesshares | Sep. 30, 2018USD ($) | Jun. 03, 2019shares | Jan. 05, 2017shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Document Period End Date | Sep. 30, 2019 | |||||||
Share-based compensation expense | $ 3,029,000 | $ 2,303,000 | $ 8,292,000 | $ 6,057,000 | ||||
Grant date fair value of options granted (in dollars per share) | $ / shares | $ 7.17 | |||||||
Restricted Stock Units (RSUs) | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Award vesting period | 4 years | |||||||
Award vesting rights, percentage | 25.00% | |||||||
Compensation cost not yet recognized | 17,400,000 | $ 17,400,000 | ||||||
Period for recognition | 3 years 3 months 18 days | |||||||
Number of stock units granted (shares) | shares | 1,638,000 | |||||||
Employee Stock Option | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Compensation cost not yet recognized | 2,800,000 | $ 2,800,000 | ||||||
Period for recognition | 2 years | |||||||
Performance Based Options | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Award vesting period | 3 years | |||||||
Compensation cost not yet recognized | 6,200,000 | $ 6,200,000 | ||||||
Period for recognition | 2 years 3 months 18 days | |||||||
Number of stock units granted (shares) | shares | 400,839 | |||||||
Performance Based Options | Minimum | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Percentage of performance units expected to vest | 0.00% | |||||||
Performance Based Options | Maximum | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Percentage of performance units expected to vest | 200.00% | |||||||
Employee Stock | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based compensation expense | $ 291,000 | $ 118,000 | $ 561,000 | $ 358,000 | ||||
Equity Incentive Plan Twenty Eleven | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Portion of stock options vested on first anniversary | 25.00% | |||||||
Equity Incentive Plan Twenty Eleven | Vesting Scenario One | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Minimum percentage on fair market value | 100.00% | |||||||
Equity Incentive Plan Twenty Eleven | Vesting Scenario One | Maximum | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Award vesting period | 10 years | |||||||
Equity Incentive Plan Twenty Eleven | Vesting Scenario Two | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Minimum percentage on fair market value | 110.00% | |||||||
Vesting restrictions, ownership percentage | 10.00% | 10.00% | ||||||
Equity Incentive Plan Twenty Eleven | Vesting Scenario Two | Maximum | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Award vesting period | 5 years | |||||||
Equity Incentive Plan Twenty Eleven | Stock Options Vesting One | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of months to vest ratably after first anniversary | 36 months | |||||||
Equity Incentive Plan Twenty Eleven | Stock Options Vesting Two | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of months to vest ratably after first anniversary | 48 months | |||||||
2011 Equity Incentive Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of shares authorized (in shares) | shares | 5,000,000 | |||||||
2017 Inducement Award Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of shares authorized (in shares) | shares | 2,000,000 | |||||||
Two Thousand Seventeen Employee Stock Purchase Plan | Employee Stock | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Duration of plan (in months) | 12 months | |||||||
Maximum employee subscription rate | 10.00% | 15.00% | 15.00% | |||||
Percentage of purchase price of shares | 85.00% | 85.00% | ||||||
Number of purchase periods | purchase | 2 | |||||||
Purchase periods (in months) | 6 months | |||||||
Maximum employee purchase amount | $ 25,000 |
Stock-Based Plans - Restricted
Stock-Based Plans - Restricted Stock And Performance Stock Unit (Details) | 9 Months Ended |
Sep. 30, 2019$ / sharesshares | |
Restricted Stock Units (RSUs) | |
Number of Units | |
Beginning balance (in shares) | shares | 1,812,000 |
Number of stock units granted (shares) | shares | 1,638,000 |
Number of units releases (in shares) | shares | (525,000) |
Number of units forfeited (in shares) | shares | (284,000) |
Ending balance (in shares) | shares | 2,641,000 |
Weighted-Average Grant Date Fair Value per Unit | |
Beginning balance (in dollars per share) | $ / shares | $ 7.09 |
Weighted average fair value per stock units granted (usd per share) | $ / shares | 8.59 |
Weighted average fair value per stock units released (usd per share) | $ / shares | 8.30 |
Weighted average fair value per stock units forfeited (usd per share) | $ / shares | 7.97 |
Ending balance (in dollars per share) | $ / shares | $ 7.69 |
Performance-based options | |
Number of Units | |
Beginning balance (in shares) | shares | 155,000 |
Number of stock units granted (shares) | shares | 400,839 |
Number of units releases (in shares) | shares | 0 |
Number of units forfeited (in shares) | shares | (9,000) |
Ending balance (in shares) | shares | 547,000 |
Weighted-Average Grant Date Fair Value per Unit | |
Beginning balance (in dollars per share) | $ / shares | $ 10.09 |
Weighted average fair value per stock units granted (usd per share) | $ / shares | 16.90 |
Weighted average fair value per stock units released (usd per share) | $ / shares | 0 |
Weighted average fair value per stock units forfeited (usd per share) | $ / shares | 10.09 |
Ending balance (in dollars per share) | $ / shares | $ 15.09 |
Certain Employee | Performance-based options | |
Number of Units | |
Beginning balance (in shares) | shares | 0 |
Number of stock units granted (shares) | shares | 68,000 |
Number of units releases (in shares) | shares | 0 |
Number of units forfeited (in shares) | shares | 0 |
Ending balance (in shares) | shares | 68,000 |
Weighted-Average Grant Date Fair Value per Unit | |
Beginning balance (in dollars per share) | $ / shares | $ 0 |
Weighted average fair value per stock units granted (usd per share) | $ / shares | 7.05 |
Weighted average fair value per stock units released (usd per share) | $ / shares | 0 |
Weighted average fair value per stock units forfeited (usd per share) | $ / shares | 0 |
Ending balance (in dollars per share) | $ / shares | $ 7.05 |
Stock-Based Plans - Stock Optio
Stock-Based Plans - Stock Option Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2019 | |
Number of Options | |||
Beginning balance (in shares) | 2,385 | ||
Options granted (in shares) | 50 | ||
Options exercised (in shares) | (185) | ||
Option forfeited (in shares) | (164) | ||
Ending balance (in shares) | 2,086 | 2,385 | |
Vested (in shares) | 1,264 | ||
Expected (in shares) | 822 | ||
Weighted-Average Exercise Price per Option | |||
Beginning balance (in dollars per share) | $ 7.69 | $ 7.56 | $ 7.69 |
Options granted (in dollars per share) | 13.08 | ||
Options exercised (in dollars per share) | 5.73 | ||
Option forfeited (in dollars per share) | 9.56 | ||
Ending balance (in dollars per share) | $ 7.69 | $ 7.56 | |
Vested (in dollars per share) | 8.71 | ||
Expected (in dollars per share) | $ 6.13 | ||
Weighted- Average Remaining Contractual Life (in Years) | |||
Contractual life | 7 years 1 month 6 days | 7 years 9 months 18 days | |
Vested as of September 30, 2019 | 6 years 4 months 24 days | ||
Expected to vest as of September 30, 2019 | 8 years 2 months 12 days | ||
Aggregate Intrinsic Value | |||
Balance as of December 31, 2018 | $ 5,991 | ||
Options exercised | 1,147 | ||
Balance as of September 30, 2019 | $ 244 | $ 5,991 | |
Vested as of September 30, 2019 | $ 190 | ||
Expected to vest as of September 30, 2019 | $ 54 |
Stock-Based Plans - Compensatio
Stock-Based Plans - Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total Share-based Compensation | $ 3,029 | $ 2,303 | $ 8,292 | $ 6,057 |
Employee Stock Purchase Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total Share-based Compensation | 291 | 118 | 561 | 358 |
Options and Restricted Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total Share-based Compensation | $ 2,738 | $ 2,185 | $ 7,731 | $ 5,699 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||||
Income tax benefit | $ 1,168 | $ 780 | $ 2,269 | $ 2,167 |
Information about Geographic _2
Information about Geographic Areas - (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($)segment | Sep. 30, 2018USD ($) | |
Concentration Risk [Line Items] | ||||
Number of reporting segments (segment) | segment | 1 | |||
Total revenue | $ 26,496 | $ 28,963 | $ 84,803 | $ 80,639 |
Revenue from Contract with Customer | United States | ||||
Concentration Risk [Line Items] | ||||
Total revenue | $ 10,500 | $ 13,200 | $ 32,900 | $ 35,400 |
Concentration risk percent | 40.00% | 46.00% | 39.00% | 44.00% |
Revenue from Contract with Customer | China | ||||
Concentration Risk [Line Items] | ||||
Total revenue | $ 3,900 | $ 3,400 | $ 11,400 | $ 8,900 |
Concentration risk percent | 15.00% | 12.00% | 13.00% | 11.00% |
Uncategorized Items - a093019q3
Label | Element | Value |
Accounting Standards Update 2014-09 [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 358,000 |
Accounting Standards Update 2014-09 [Member] | Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 358,000 |