Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Oct. 31, 2013 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'CUTERA INC | ' |
Entity Central Index Key | '0001162461 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Well-known Seasoned Issuer | 'No | ' |
Entity Voluntary Filers | 'No | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 14,121,674 |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-13 | ' |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $15,160 | $23,546 |
Marketable investments | 67,121 | 62,026 |
Accounts receivable, net | 7,494 | 8,841 |
Inventories | 10,421 | 11,114 |
Deferred tax asset | 38 | 40 |
Other current assets and prepaid expenses | 1,583 | 1,439 |
Total current assets | 101,817 | 107,006 |
Property and equipment, net | 1,461 | 933 |
Deferred tax asset, net of current portion | 503 | 553 |
Intangibles, net | 2,044 | 2,566 |
Goodwill | 1,339 | 1,339 |
Other long-term assets | 348 | 397 |
Total assets | 107,512 | 112,794 |
Current liabilities: | ' | ' |
Accounts payable | 2,100 | 2,107 |
Accrued liabilities | 7,784 | 9,493 |
Deferred revenue | 7,195 | 6,618 |
Total current liabilities | 17,079 | 18,218 |
Deferred revenue, net of current portion | 3,395 | 2,102 |
Income tax liability | 69 | 412 |
Other long-term liabilities | 1,353 | 1,288 |
Total liabilities | 21,896 | 22,020 |
Commitments and contingencies (Note 10) | ' | ' |
Stockholders' equity: | ' | ' |
Convertible preferred stock, $0.001 par value; authorized: 5,000,000 shares; none issued and outstanding | 0 | 0 |
Common stock, $0.001 par value; authorized: 50,000,000 shares; issued and outstanding: 14,121,070 and 14,233,476 shares at September 30, 2013 and December 31, 2012, respectively | 14 | 14 |
Additional paid-in capital | 99,899 | 100,552 |
Accumulated deficit | -14,342 | -9,873 |
Accumulated other comprehensive income | 45 | 81 |
Total stockholders' equity | 85,616 | 90,774 |
Total liabilities and stockholders' equity | $107,512 | $112,794 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Stockholders' equity: | ' | ' |
Convertible preferred stock, par value (in dollars per share) | $0.00 | $0.00 |
Convertible preferred stock, authorized (in shares) | 5,000,000 | 5,000,000 |
Convertible preferred stock, issued (in shares) | 0 | 0 |
Convertible preferred stock, outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $0.00 | $0.00 |
Common stock, authorized (in shares) | 50,000,000 | 50,000,000 |
Common stock, issued (in shares) | 14,121,070 | 14,233,476 |
Common stock, outstanding (in shares) | 14,121,070 | 14,233,476 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Net revenue: | ' | ' | ' | ' |
Products | $12,480 | $15,128 | $39,056 | $42,138 |
Service | 4,348 | 4,298 | 13,299 | 12,606 |
Total net revenue | 16,828 | 19,426 | 52,355 | 54,744 |
Cost of revenue: | ' | ' | ' | ' |
Products | 5,490 | 6,618 | 17,063 | 19,237 |
Service | 2,161 | 2,210 | 6,447 | 6,710 |
Total cost of revenue | 7,651 | 8,828 | 23,510 | 25,947 |
Gross profit | 9,177 | 10,598 | 28,845 | 28,797 |
Operating expenses: | ' | ' | ' | ' |
Sales and marketing | 6,554 | 7,014 | 20,180 | 21,563 |
Research and development | 2,440 | 2,217 | 6,778 | 6,305 |
General and administrative | 2,160 | 2,475 | 6,803 | 8,824 |
Total operating expenses | 11,154 | 11,706 | 33,761 | 36,692 |
Loss from operations | -1,977 | -1,108 | -4,916 | -7,895 |
Interest and other income, net | 140 | 152 | 350 | 392 |
Loss before income taxes | -1,837 | -956 | -4,566 | -7,503 |
Provision (benefit) for income taxes | -169 | -64 | -97 | 122 |
Net loss | ($1,668) | ($892) | ($4,469) | ($7,625) |
Net loss per share: | ' | ' | ' | ' |
Basic and Diluted (in dollars per share) | ($0.11) | ($0.06) | ($0.31) | ($0.54) |
Weighted-average number of shares used in per share calculations: | ' | ' | ' | ' |
Basic and Diluted (in shares) | 14,541 | 14,127 | 14,558 | 14,061 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (unaudited) [Abstract] | ' | ' | ' | ' |
Net loss | ($1,668) | ($892) | ($4,469) | ($7,625) |
Available-for-sale investments | ' | ' | ' | ' |
Net change in unrealized gain (loss) on available-for-sale investments | 94 | 273 | -27 | 822 |
Less: Reclassification adjustment for gains on investments recognized during the year | -9 | -6 | -9 | -18 |
Net change in unrealized gain (loss) on available-for-sale investments | 85 | 267 | -36 | 804 |
Tax provision (benefit) | 0 | 102 | 0 | 123 |
Other comprehensive income (loss), net of tax | 85 | 165 | -36 | 681 |
Comprehensive loss | ($1,583) | ($727) | ($4,505) | ($6,944) |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Cash flows from operating activities: | ' | ' |
Net loss | ($4,469) | ($7,625) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ' | ' |
Stock-based compensation | 2,370 | 2,334 |
Depreciation and amortization | 973 | 1,186 |
Other | 43 | -113 |
Changes in assets and liabilities: | ' | ' |
Accounts receivable | 1,347 | -2,698 |
Inventories | 693 | -196 |
Other current assets and prepaid expenses | 212 | 717 |
Other long-term assets | 49 | -31 |
Accounts payable | -7 | -276 |
Accrued liabilities | -1,877 | -163 |
Other long-term liabilities | 233 | -24 |
Deferred revenue | 1,870 | 905 |
Income tax liability | -343 | -7 |
Net cash provided by (used in) operating activities | 1,094 | -5,991 |
Cash flows from investing activities: | ' | ' |
Acquisition of property, equipment and software | -979 | -358 |
Business acquisition | 0 | -5,091 |
Proceeds from sales of marketable and long-term investments | 12,108 | 26,361 |
Proceeds from maturities of marketable investments | 26,315 | 34,445 |
Purchase of marketable investments | -43,901 | -39,864 |
Net cash provided by (used in) investing activities | -6,457 | 15,493 |
Cash flows from financing activities: | ' | ' |
Repurchase of common stock | -7,623 | 0 |
Proceeds from exercise of stock options and employee stock purchase plan | 4,600 | 812 |
Net cash provided by (used in) financing activities | -3,023 | 812 |
Net increase (decrease) in cash and cash equivalents | -8,386 | 10,314 |
Cash and cash equivalents at beginning of period | 23,546 | 14,020 |
Cash and cash equivalents at end of period | $15,160 | $24,334 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2013 | |
Summary of Significant Accounting Policies [Abstract] | ' |
Summary of Significant Accounting Policies | ' |
Note 1. Summary of Significant Accounting Policies | |
Description of Operations and Principles of Consolidation | |
Cutera, Inc. (“Cutera” or the “Company”) is a global provider of laser and other energy-based aesthetic systems for practitioners worldwide. The Company designs, develops, manufactures, and markets the CoolGlide, Xeo, Solera, GenesisPlus, ExcelV, VariLite (acquired in 2012) and truSculpt (introduced in 2012) product platforms for use by physicians and other qualified practitioners which enable them to offer safe and effective aesthetic treatments to their customers. The Company’s products offer multiple hand pieces and applications, which allow customers to upgrade their systems. The sales of systems, hand pieces, hand piece refills, upgrades, and the distribution of third party manufactured dermal fillers and cosmeceuticals are classified as Product revenue. In addition to Product revenue, the Company generates Service revenue from the sale of post-warranty service contracts, providing services for products that are out of warranty. | |
Headquartered in Brisbane, California, the Company has wholly-owned subsidiaries in Australia, Canada, France and Japan, that market, sell and service its products outside of the United States. The Consolidated Financial Statements include the accounts of the Company and its subsidiaries. All inter-company transactions and balances have been eliminated. | |
Unaudited Interim Financial Information | |
The financial information filed is unaudited. The Condensed Consolidated Financial Statements included in this report reflect all adjustments (consisting only of normal recurring adjustments) that the Company considers necessary for the fair statement of the results of operations for the interim periods covered and of the financial condition of the Company at the date of the interim balance sheet. The December 31, 2012 Condensed Consolidated Balance Sheet was derived from audited financial statements, but does not include all disclosures required by generally accepted accounting principles in the United States of America (“GAAP”). The results for interim periods are not necessarily indicative of the results for the entire year or any other interim period. The Condensed Consolidated Financial Statements should be read in conjunction with the Company’s financial statements and the notes thereto included in the Company’s annual report on Form 10-K for the year ended December 31, 2012 filed with the Securities and Exchange Commission (the “SEC”), on March 15, 2013. | |
Use of Estimates | |
The preparation of interim Condensed Consolidated Financial Statements in conformity with GAAP requires the Company’s management to make estimates and assumptions that affect the amounts reported and disclosed in the Condensed Consolidated Financial Statements and the accompanying notes. Actual results could differ materially from those estimates. On an ongoing basis, the Company evaluates these estimates, including those related to warranty obligation, sales commission, accounts receivable and sales allowances, provision for excess and obsolete inventories, fair values of marketable investments, fair values of acquired intangible assets, useful lives of intangible assets and property and equipment, recoverability of deferred tax assets, and effective income tax rates, among others. Management bases these estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. |
Cash_and_Cash_Equivalents_and_
Cash and Cash Equivalents and Marketable Securities | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Cash and Cash Equivalents and Marketable Securities [Abstract] | ' | ||||||||||||||||
Cash and Cash Equivalents and Marketable Securities | ' | ||||||||||||||||
Note 2. Cash and Cash Equivalents and Marketable Securities | |||||||||||||||||
The Company considers all highly liquid investments, with an original maturity of three months or less at the time of purchase, to be cash equivalents. Investments in debt securities are accounted for as “available-for-sale” securities, carried at fair value with unrealized gains and losses reported in other comprehensive loss, held for use in current operations and classified in current assets as “Marketable investments.” | |||||||||||||||||
The following tables summarize unrealized gains and losses related to our marketable investments, designated as available-for-sale (in thousands): | |||||||||||||||||
30-Sep-13 | Amortized | Gross | Gross | Fair Market | |||||||||||||
Cost | Unrealized | Unrealized | Value | ||||||||||||||
Gains | Losses | ||||||||||||||||
Cash and cash equivalents: | |||||||||||||||||
Cash | $ | 1,830 | $ | — | $ | — | $ | 1,830 | |||||||||
Money market funds | 12,180 | — | — | 12,180 | |||||||||||||
Commercial paper | 1,150 | — | — | 1,150 | |||||||||||||
Total cash and cash equivalents | 15,160 | — | — | 15,160 | |||||||||||||
Marketable securities: | |||||||||||||||||
U.S. government notes | 5,997 | 14 | — | 6,011 | |||||||||||||
U.S. government agencies | 30,499 | 40 | (13 | ) | 30,526 | ||||||||||||
Municipal securities | 2,604 | 2 | (4 | ) | 2,602 | ||||||||||||
Commercial paper | 9,357 | 4 | — | 9,361 | |||||||||||||
Corporate debt securities | 18,570 | 56 | (5 | ) | 18,621 | ||||||||||||
Total marketable investments | 67,027 | 116 | (22 | ) | 67,121 | ||||||||||||
Total cash, cash equivalents and marketable investments | $ | 82,187 | $ | 116 | $ | (22 | ) | $ | 82,281 | ||||||||
31-Dec-12 | Amortized | Gross | Gross | Fair Market | |||||||||||||
Cost | Unrealized | Unrealized | Value | ||||||||||||||
Gains | Losses | ||||||||||||||||
Cash and cash equivalents: | |||||||||||||||||
Cash | $ | 2,198 | $ | — | $ | — | $ | 2,198 | |||||||||
Money market funds | 17,348 | — | — | 17,348 | |||||||||||||
Commercial paper | 4,000 | — | — | 4,000 | |||||||||||||
Total cash and cash equivalents | 23,546 | — | — | 23,546 | |||||||||||||
Marketable securities: | |||||||||||||||||
U.S. government notes | 4,005 | 4 | — | 4,009 | |||||||||||||
U.S. government agencies | 24,910 | 48 | — | 24,958 | |||||||||||||
Municipal securities | 4,184 | 23 | (1 | ) | 4,206 | ||||||||||||
Commercial paper | 10,515 | 4 | — | 10,519 | |||||||||||||
Corporate debt securities | 18,281 | 59 | (6 | ) | 18,334 | ||||||||||||
Total marketable investments | 61,895 | 138 | (7 | ) | 62,026 | ||||||||||||
Total cash, cash equivalents and marketable investments | $ | 85,441 | $ | 138 | $ | (7 | ) | $ | 85,572 | ||||||||
As of September 30, 2013 and December 31, 2012, the total gross unrealized losses were $22,000 and $7,000, respectively, and were related to interest rate changes on short-term marketable investments. The Company has concluded that it is more-likely-than-not that the securities will be held until maturity or a recovery of the cost basis. No securities were in unrealized loss positions for more than 12 months. | |||||||||||||||||
The following table summarizes the estimated fair value of our securities available-for-sale and classified as cash and cash equivalents and marketable investments classified by the contractual maturity date of the security as of September 30, 2013 (in thousands): | |||||||||||||||||
Amount | |||||||||||||||||
Due in less than one year | $ | 31,472 | |||||||||||||||
Due in 1 to 3 years | 36,799 | ||||||||||||||||
$ | 68,271 |
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Fair Value of Financial Instruments [Abstract] | ' | ||||||||||||||||
Fair Value of Financial Instruments | ' | ||||||||||||||||
Note 3. Fair Value of Financial Instruments | |||||||||||||||||
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value hierarchy distinguishes between (1) market participant assumptions developed based on market data obtained from independent sources (observable inputs) and (2) an entity’s own assumptions about market participant assumptions developed based on the best information available in the circumstances (unobservable inputs). The fair value hierarchy consists of three broad levels, which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described below: | |||||||||||||||||
· | Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities. | ||||||||||||||||
· | Level 2: Directly or indirectly observable inputs as of the reporting date through correlation with market data, including quoted prices for similar assets and liabilities in active markets and quoted prices in markets that are not active. Level 2 also includes assets and liabilities that are valued using models or other pricing methodologies that do not require significant judgment since the input assumptions used in the models, such as interest rates and volatility factors, are corroborated by readily observable data from actively quoted markets for substantially the full term of the financial instrument. | ||||||||||||||||
· | Level 3: Unobservable inputs that are supported by little or no market activity and reflect the use of significant management judgment. These values are generally determined using pricing models for which the assumptions utilize management’s estimates of market participant assumptions. | ||||||||||||||||
In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible as well as considers counterparty credit risk in its assessment of fair value. | |||||||||||||||||
As of September 30, 2013, financial assets measured and recognized at fair value on a recurring basis and classified under the appropriate level of the fair value hierarchy as described above was as follows (in thousands): | |||||||||||||||||
September 30, 2013 | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Cash equivalents: | |||||||||||||||||
Money market funds | $ | 12,180 | — | — | $ | 12,180 | |||||||||||
Commercial paper | — | 1,150 | — | 1,150 | |||||||||||||
Short-term marketable investments: | |||||||||||||||||
U.S. government notes | — | 6,011 | — | 6,011 | |||||||||||||
U.S. government agencies | — | 30,526 | — | 30,526 | |||||||||||||
Municipal securities | — | 2,602 | — | 2,602 | |||||||||||||
Commercial paper | — | 9,361 | — | 9,361 | |||||||||||||
Corporate debt securities | — | 18,621 | — | 18,621 | |||||||||||||
Total assets at fair value | $ | 12,180 | $ | 68,271 | $ | — | $ | 80,451 | |||||||||
As of December 31, 2012, financial assets measured and recognized at fair value on a recurring basis and classified under the appropriate level of the fair value hierarchy as described above was as follows (in thousands): | |||||||||||||||||
December 31, 2012 | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Cash equivalents: | |||||||||||||||||
Money market funds | $ | 17,348 | — | — | $ | 17,348 | |||||||||||
Commercial paper | — | 4,000 | — | 4,000 | |||||||||||||
Short-term marketable investments: | |||||||||||||||||
U.S. government notes | — | 4,009 | — | 4,009 | |||||||||||||
U.S. government agencies | — | 24,958 | — | 24,958 | |||||||||||||
Municipal securities | — | 4,206 | — | 4,206 | |||||||||||||
Commercial paper | — | 10,519 | — | 10,519 | |||||||||||||
Corporate debt securities | — | 18,334 | — | 18,334 | |||||||||||||
Total assets at fair value | $ | 17,348 | $ | 66,026 | $ | — | $ | 83,374 | |||||||||
The Company’s Level 2 investments include U.S. government-backed securities and corporate securities that are valued based upon observable inputs that may include benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers and reference data including market research publications. The average remaining maturity of the Company’s Level 2 investments as of September 30, 2013 is less than 36 months and all of these investments are rated by S&P and Moody’s at A or better. | |||||||||||||||||
Inventories
Inventories | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Inventories [Abstract] | ' | ||||||||
Inventories | ' | ||||||||
Note 4. Inventories | |||||||||
Inventories consist of the following (in thousands): | |||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
Raw materials | $ | 6,368 | $ | 7,221 | |||||
Finished goods | 4,053 | 3,893 | |||||||
Total | $ | 10,421 | $ | 11,114 |
Warranty
Warranty | 9 Months Ended | ||||
Sep. 30, 2013 | |||||
Warranty [Abstract] | ' | ||||
Warranty | ' | ||||
Note 5. Warranty | |||||
The Company provides a standard one-year warranty on all systems. Warranty coverage provided is for labor and parts necessary to repair the systems during the warranty period. The Company accounts for the estimated warranty cost of the standard warranty coverage as a charge to costs of revenue when revenue is recognized. The estimated warranty cost is based on historical product performance. To determine the estimated warranty reserve, the Company utilizes historical service costs to calculate the expected service expense per system and applies this to the equivalent number of units exposed under warranty. The Company updates these estimated charges every quarter. | |||||
The following table provides the changes in the product warranty accrual for the nine-month period ended September 30, 2013 (in thousands): | |||||
Amount | |||||
Beginning Balance – December 31, 2012 | $ | 1,212 | |||
Add: Accruals for warranties issued during the period | 2,403 | ||||
Less: Settlements made during the period | (2,557 | ) | |||
Ending Balance –September 30, 2013 | $ | 1,058 |
Deferred_Service_Contract_Reve
Deferred Service Contract Revenue | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Deferred Service Contract Revenue [Abstract] | ' | ||||||||
Deferred Service Contract Revenue | ' | ||||||||
Note 6. Deferred Service Contract Revenue | |||||||||
Service contract revenue is recognized on a straight-line basis over the period of the applicable extended warranty contract. | |||||||||
The following table provides changes in deferred service contract revenue for the nine-month periods ended September 30, 2013 and 2012 (in thousands): | |||||||||
September 30, | |||||||||
2013 | 2012 | ||||||||
Beginning Balance | $ | 8,539 | $ | 5,838 | |||||
Add: Payments received | 10,869 | 9,335 | |||||||
Add: Contract revenue assumed with business acquisition | — | 780 | |||||||
Less: Revenue recognized | (8,937 | ) | (8,359 | ) | |||||
Ending Balance | $ | 10,471 | $ | 7,594 | |||||
Costs incurred under service contracts were $5.2 million and $5.4 million for the nine-month periods ended September 30, 2013 and 2012, which were recognized as incurred. |
Stockholders_Equity_and_Stockb
Stockholders' Equity and Stock-based Compensation Expense | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Stockholders' Equity and Stock-based Compensation Expense [Abstract] | ' | ||||||||||||||||
Stockholders' Equity and Stock-based Compensation Expense | ' | ||||||||||||||||
Note 7. Stockholders’ Equity and Stock-based Compensation Expense | |||||||||||||||||
Share Repurchase Program | |||||||||||||||||
On August 5, 2013, the Company’s Board of Directors modified Cutera, Inc.’s stock buyback program, originally adopted in November 2012, to permit an additional $10 million of its issued and outstanding common shares to be repurchased. As modified, the stock buyback program permits the Company to purchase an aggregate of $20 million of its common stock through a 10b5-1 program based on predetermined pricing and volume parameters, as well as open-market purchases that are subject to management discretion and regulatory restrictions. | |||||||||||||||||
In the quarter ended September 30, 2013, the Company repurchased 796,919 shares of its common stock for approximately $7.6 million. As of September 30, 2013, there remained an additional $12.4 million of the Company's common stock to be purchased under the modified stock buyback program. The number of shares to be repurchased and the timing of such repurchases will be based on several factors, including the price of the Company's common stock, regulatory restrictions, and general market and business conditions. | |||||||||||||||||
Stock-based Compensation Expense | |||||||||||||||||
Stock-based compensation expense by department recognized during the three and nine-month periods ended September 30, 2013 and 2012 were as follows (in thousands): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Cost of revenue | $ | 159 | $ | 169 | $ | 484 | $ | 480 | |||||||||
Sales and marketing | 182 | 177 | 579 | 476 | |||||||||||||
Research and development | 103 | 126 | 293 | 419 | |||||||||||||
General and administrative | 304 | 337 | 1,014 | 959 | |||||||||||||
Total stock-based compensation expense | $ | 748 | $ | 809 | $ | 2,370 | $ | 2,334 | |||||||||
Under the 2004 Equity Incentive Plan, the Company issued 556,674 shares of common stock during the nine-month period ended September 30, 2013, in conjunction with stock options exercised. | |||||||||||||||||
During the nine-month period ended September 30, 2013, the following number of equity awards of the Company’s common stock was granted (in thousands): | |||||||||||||||||
Shares | |||||||||||||||||
Stock options | 1,007 | ||||||||||||||||
Restricted stock units | 189 | ||||||||||||||||
Performance stock units | 34 | ||||||||||||||||
Total | 1,230 | ||||||||||||||||
As of September 30, 2013, there was $5.1 million of unrecognized compensation expense, net of projected forfeitures related to non-vested stock awards. The expense is expected to be recognized over the remaining weighted-average period of 2.8 years. |
Net_Loss_Per_Share
Net Loss Per Share | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Net Loss Per Share [Abstract] | ' | ||||||||||||||||
Net Loss Per Share | ' | ||||||||||||||||
Note 8. Net Loss Per Share | |||||||||||||||||
Basic net loss per share is calculated by dividing net loss by the weighted-average number of common shares outstanding during the year. Diluted net loss per common share is the same as basic net loss per common share, as the effect of the potential common stock equivalents is anti-dilutive and as such is excluded from the calculations of the diluted net loss per share. | |||||||||||||||||
The following number of shares outstanding, prior to the application of the treasury stock method, were excluded from the computation of diluted net loss per common share for the periods presented because including them would have had an anti-dilutive effect (in thousands): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Options to purchase common stock | 4,134 | 3,910 | 3,799 | 3,680 | |||||||||||||
Restricted stock units | 206 | 132 | 168 | 79 | |||||||||||||
Performance stock units | 34 | 16 | 34 | 14 | |||||||||||||
Employee stock purchase plan shares | 27 | 30 | 60 | 52 | |||||||||||||
Total | 4,401 | 4,088 | 4,061 | 3,825 |
Income_Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2013 | |
Income Taxes [Abstract] | ' |
Income Taxes | ' |
Note 9. Income Taxes | |
For the three months ended September 30, 2013 and 2012, the Company’s tax benefit was $169,000 and $64,000, respectively. For the nine months ended September 30, 2013 and 2012, the Company’s tax benefit was $97,000 and tax expense was $122,000 respectively. The Company’s income tax benefit for the three and nine-month periods ended September 30, 2013 was primarily attributable to a release of uncertain tax position reserves, partially offset by income taxes of the Company’s international operations. The Company’s income tax benefit for the three-month period ended September 30, 2012 was primarily related to gains and losses on marketable and long term investments recorded in other comprehensive loss partially offset by income taxes of the Company’s international operations. The Company’s tax expense for the nine-month period ended September 30, 2012 was primarily related to income taxes of the Company’s international operations partially offset by benefits for income taxes related to gains and losses on marketable and long term investments recorded in other comprehensive loss. | |
The Company utilizes the asset and liability method of accounting for income taxes, under which deferred taxes are determined based on the temporary differences between the financial statement and tax basis of assets and liabilities using tax rates expected to be in effect during the years in which the basis differences reverse. A valuation allowance is recorded when it is more likely than not that some of the deferred tax assets will not be realized. As of September 30, 2013 and December 31, 2012, the Company had a 100% valuation allowance against its U.S. deferred tax assets. Significant management judgment is required in determining any valuation allowance recorded against deferred tax assets. In evaluating the ability to recover deferred tax assets, the Company considered available positive and negative evidence giving greater weight to its recent cumulative losses and its ability to carry-back losses against prior taxable income and lesser weight to its projected financial results due to the challenges of forecasting future periods. The Company also considered, commensurate with its objective verifiability, the forecast of future taxable income including the reversal of temporary differences and the implementation of feasible and prudent tax planning strategies. | |
On January 2, 2013, the President signed into law The American Taxpayer Relief Act of 2012, or ATRA. Under prior law, a taxpayer was entitled to a research tax credit for qualifying amounts incurred through December 31, 2011. The ATRA extends the research credit for two years for qualified research expenditures incurred through the end of 2013. The extension of the research credit is retroactive and includes amounts incurred after 2011. The benefit of the reinstated credit did not impact the Company’s statement of operations for the three and nine months ended September 30, 2013, as the research and development credit carryforwards are offset by a full valuation allowance. |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended | ||||
Sep. 30, 2013 | |||||
Commitments and Contingencies [Abstract] | ' | ||||
Commitments and Contingencies | ' | ||||
Note 10. Commitments and Contingencies | |||||
Capital Lease Obligation | |||||
During 2013, the Company financed vehicles for some of its sales employees in North America. As of September 30, 2013 the gross capitalized value of the leased vehicles was $487,000 and the related accumulated depreciation was $64,000. As of September 30, 2013 the minimum lease payments are as follows (in thousands): | |||||
Fiscal Year Ending December 31, | Amount | ||||
2013(remainder) | $ | 33 | |||
2014 | 130 | ||||
2015 | 130 | ||||
2016 | 142 | ||||
Total | $ | 435 | |||
Litigation and Litigation Settlements | |||||
The Company is named from time to time as a party to product liability and contractual lawsuits in the normal course of business. The Company routinely assesses the likelihood of any adverse judgments or outcomes related to legal matters and claims, as well as ranges of probable losses. A determination of the amount of the reserves required, if any, for these contingencies is made after analysis of each known issue, historical experience, whether it is more likely than not that the Company shall incur a loss, and whether the loss is estimable. As of September 30, 2013, the Company had accrued approximately $0.1 million related to pending product liability and contractual lawsuits. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2013 | |
Summary of Significant Accounting Policies [Abstract] | ' |
Description of Operations and Principles of Consolidation | ' |
Description of Operations and Principles of Consolidation | |
Cutera, Inc. (“Cutera” or the “Company”) is a global provider of laser and other energy-based aesthetic systems for practitioners worldwide. The Company designs, develops, manufactures, and markets the CoolGlide, Xeo, Solera, GenesisPlus, ExcelV, VariLite (acquired in 2012) and truSculpt (introduced in 2012) product platforms for use by physicians and other qualified practitioners which enable them to offer safe and effective aesthetic treatments to their customers. The Company’s products offer multiple hand pieces and applications, which allow customers to upgrade their systems. The sales of systems, hand pieces, hand piece refills, upgrades, and the distribution of third party manufactured dermal fillers and cosmeceuticals are classified as Product revenue. In addition to Product revenue, the Company generates Service revenue from the sale of post-warranty service contracts, providing services for products that are out of warranty. | |
Headquartered in Brisbane, California, the Company has wholly-owned subsidiaries in Australia, Canada, France and Japan, that market, sell and service its products outside of the United States. The Consolidated Financial Statements include the accounts of the Company and its subsidiaries. All inter-company transactions and balances have been eliminated. | |
Unaudited Interim Financial Information | ' |
Unaudited Interim Financial Information | |
The financial information filed is unaudited. The Condensed Consolidated Financial Statements included in this report reflect all adjustments (consisting only of normal recurring adjustments) that the Company considers necessary for the fair statement of the results of operations for the interim periods covered and of the financial condition of the Company at the date of the interim balance sheet. The December 31, 2012 Condensed Consolidated Balance Sheet was derived from audited financial statements, but does not include all disclosures required by generally accepted accounting principles in the United States of America (“GAAP”). The results for interim periods are not necessarily indicative of the results for the entire year or any other interim period. The Condensed Consolidated Financial Statements should be read in conjunction with the Company’s financial statements and the notes thereto included in the Company’s annual report on Form 10-K for the year ended December 31, 2012 filed with the Securities and Exchange Commission (the “SEC”), on March 15, 2013. | |
Use of Estimates | ' |
Use of Estimates | |
The preparation of interim Condensed Consolidated Financial Statements in conformity with GAAP requires the Company’s management to make estimates and assumptions that affect the amounts reported and disclosed in the Condensed Consolidated Financial Statements and the accompanying notes. Actual results could differ materially from those estimates. On an ongoing basis, the Company evaluates these estimates, including those related to warranty obligation, sales commission, accounts receivable and sales allowances, provision for excess and obsolete inventories, fair values of marketable investments, fair values of acquired intangible assets, useful lives of intangible assets and property and equipment, recoverability of deferred tax assets, and effective income tax rates, among others. Management bases these estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. |
Cash_and_Cash_Equivalents_and_1
Cash and Cash Equivalents and Marketable Securities (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Cash and Cash Equivalents and Marketable Securities [Abstract] | ' | ||||||||||||||||
Unrealized gains and losses related to marketable investments and long-term investments | ' | ||||||||||||||||
The following tables summarize unrealized gains and losses related to our marketable investments, designated as available-for-sale (in thousands): | |||||||||||||||||
30-Sep-13 | Amortized | Gross | Gross | Fair Market | |||||||||||||
Cost | Unrealized | Unrealized | Value | ||||||||||||||
Gains | Losses | ||||||||||||||||
Cash and cash equivalents: | |||||||||||||||||
Cash | $ | 1,830 | $ | — | $ | — | $ | 1,830 | |||||||||
Money market funds | 12,180 | — | — | 12,180 | |||||||||||||
Commercial paper | 1,150 | — | — | 1,150 | |||||||||||||
Total cash and cash equivalents | 15,160 | — | — | 15,160 | |||||||||||||
Marketable securities: | |||||||||||||||||
U.S. government notes | 5,997 | 14 | — | 6,011 | |||||||||||||
U.S. government agencies | 30,499 | 40 | (13 | ) | 30,526 | ||||||||||||
Municipal securities | 2,604 | 2 | (4 | ) | 2,602 | ||||||||||||
Commercial paper | 9,357 | 4 | — | 9,361 | |||||||||||||
Corporate debt securities | 18,570 | 56 | (5 | ) | 18,621 | ||||||||||||
Total marketable investments | 67,027 | 116 | (22 | ) | 67,121 | ||||||||||||
Total cash, cash equivalents and marketable investments | $ | 82,187 | $ | 116 | $ | (22 | ) | $ | 82,281 | ||||||||
31-Dec-12 | Amortized | Gross | Gross | Fair Market | |||||||||||||
Cost | Unrealized | Unrealized | Value | ||||||||||||||
Gains | Losses | ||||||||||||||||
Cash and cash equivalents: | |||||||||||||||||
Cash | $ | 2,198 | $ | — | $ | — | $ | 2,198 | |||||||||
Money market funds | 17,348 | — | — | 17,348 | |||||||||||||
Commercial paper | 4,000 | — | — | 4,000 | |||||||||||||
Total cash and cash equivalents | 23,546 | — | — | 23,546 | |||||||||||||
Marketable securities: | |||||||||||||||||
U.S. government notes | 4,005 | 4 | — | 4,009 | |||||||||||||
U.S. government agencies | 24,910 | 48 | — | 24,958 | |||||||||||||
Municipal securities | 4,184 | 23 | (1 | ) | 4,206 | ||||||||||||
Commercial paper | 10,515 | 4 | — | 10,519 | |||||||||||||
Corporate debt securities | 18,281 | 59 | (6 | ) | 18,334 | ||||||||||||
Total marketable investments | 61,895 | 138 | (7 | ) | 62,026 | ||||||||||||
Total cash, cash equivalents and marketable investments | $ | 85,441 | $ | 138 | $ | (7 | ) | $ | 85,572 | ||||||||
Estimated fair value of marketable investments and long-term investments classified by contractual maturity date | ' | ||||||||||||||||
The following table summarizes the estimated fair value of our securities available-for-sale and classified as cash and cash equivalents and marketable investments classified by the contractual maturity date of the security as of September 30, 2013 (in thousands): | |||||||||||||||||
Amount | |||||||||||||||||
Due in less than one year | $ | 31,472 | |||||||||||||||
Due in 1 to 3 years | 36,799 | ||||||||||||||||
$ | 68,271 |
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Fair Value of Financial Instruments [Abstract] | ' | ||||||||||||||||
Financial assets measured and recognized at fair value on a recurring basis and classified under appropriate level of fair value hierarchy | ' | ||||||||||||||||
As of September 30, 2013, financial assets measured and recognized at fair value on a recurring basis and classified under the appropriate level of the fair value hierarchy as described above was as follows (in thousands): | |||||||||||||||||
September 30, 2013 | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Cash equivalents: | |||||||||||||||||
Money market funds | $ | 12,180 | — | — | $ | 12,180 | |||||||||||
Commercial paper | — | 1,150 | — | 1,150 | |||||||||||||
Short-term marketable investments: | |||||||||||||||||
U.S. government notes | — | 6,011 | — | 6,011 | |||||||||||||
U.S. government agencies | — | 30,526 | — | 30,526 | |||||||||||||
Municipal securities | — | 2,602 | — | 2,602 | |||||||||||||
Commercial paper | — | 9,361 | — | 9,361 | |||||||||||||
Corporate debt securities | — | 18,621 | — | 18,621 | |||||||||||||
Total assets at fair value | $ | 12,180 | $ | 68,271 | $ | — | $ | 80,451 | |||||||||
As of December 31, 2012, financial assets measured and recognized at fair value on a recurring basis and classified under the appropriate level of the fair value hierarchy as described above was as follows (in thousands): | |||||||||||||||||
December 31, 2012 | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Cash equivalents: | |||||||||||||||||
Money market funds | $ | 17,348 | — | — | $ | 17,348 | |||||||||||
Commercial paper | — | 4,000 | — | 4,000 | |||||||||||||
Short-term marketable investments: | |||||||||||||||||
U.S. government notes | — | 4,009 | — | 4,009 | |||||||||||||
U.S. government agencies | — | 24,958 | — | 24,958 | |||||||||||||
Municipal securities | — | 4,206 | — | 4,206 | |||||||||||||
Commercial paper | — | 10,519 | — | 10,519 | |||||||||||||
Corporate debt securities | — | 18,334 | — | 18,334 | |||||||||||||
Total assets at fair value | $ | 17,348 | $ | 66,026 | $ | — | $ | 83,374 |
Inventories_Tables
Inventories (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Inventories [Abstract] | ' | ||||||||
Inventories | ' | ||||||||
Inventories consist of the following (in thousands): | |||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
Raw materials | $ | 6,368 | $ | 7,221 | |||||
Finished goods | 4,053 | 3,893 | |||||||
Total | $ | 10,421 | $ | 11,114 |
Warranty_Tables
Warranty (Tables) | 9 Months Ended | ||||
Sep. 30, 2013 | |||||
Warranty [Abstract] | ' | ||||
Changes in product warranty accrual | ' | ||||
The following table provides the changes in the product warranty accrual for the nine-month period ended September 30, 2013 (in thousands): | |||||
Amount | |||||
Beginning Balance – December 31, 2012 | $ | 1,212 | |||
Add: Accruals for warranties issued during the period | 2,403 | ||||
Less: Settlements made during the period | (2,557 | ) | |||
Ending Balance –September 30, 2013 | $ | 1,058 |
Deferred_Service_Contract_Reve1
Deferred Service Contract Revenue (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Deferred Service Contract Revenue [Abstract] | ' | ||||||||
Changes in deferred service contract revenue | ' | ||||||||
The following table provides changes in deferred service contract revenue for the nine-month periods ended September 30, 2013 and 2012 (in thousands): | |||||||||
September 30, | |||||||||
2013 | 2012 | ||||||||
Beginning Balance | $ | 8,539 | $ | 5,838 | |||||
Add: Payments received | 10,869 | 9,335 | |||||||
Add: Contract revenue assumed with business acquisition | — | 780 | |||||||
Less: Revenue recognized | (8,937 | ) | (8,359 | ) | |||||
Ending Balance | $ | 10,471 | $ | 7,594 |
Stockholders_Equity_and_Stockb1
Stockholders' Equity and Stock-based Compensation Expense (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Stockholders' Equity and Stock-based Compensation Expense [Abstract] | ' | ||||||||||||||||
Stock-based compensation expense by department | ' | ||||||||||||||||
Stock-based compensation expense by department recognized during the three and nine-month periods ended September 30, 2013 and 2012 were as follows (in thousands): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Cost of revenue | $ | 159 | $ | 169 | $ | 484 | $ | 480 | |||||||||
Sales and marketing | 182 | 177 | 579 | 476 | |||||||||||||
Research and development | 103 | 126 | 293 | 419 | |||||||||||||
General and administrative | 304 | 337 | 1,014 | 959 | |||||||||||||
Total stock-based compensation expense | $ | 748 | $ | 809 | $ | 2,370 | $ | 2,334 | |||||||||
Schedule of equity awards granted | ' | ||||||||||||||||
During the nine-month period ended September 30, 2013, the following number of equity awards of the Company’s common stock was granted (in thousands): | |||||||||||||||||
Shares | |||||||||||||||||
Stock options | 1,007 | ||||||||||||||||
Restricted stock units | 189 | ||||||||||||||||
Performance stock units | 34 | ||||||||||||||||
Total | 1,230 |
Net_Loss_Per_Share_Tables
Net Loss Per Share (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Net Loss Per Share [Abstract] | ' | ||||||||||||||||
Antidilutive securities excluded from the computation of diluted net loss per common share | ' | ||||||||||||||||
The following number of shares outstanding, prior to the application of the treasury stock method, were excluded from the computation of diluted net loss per common share for the periods presented because including them would have had an anti-dilutive effect (in thousands): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Options to purchase common stock | 4,134 | 3,910 | 3,799 | 3,680 | |||||||||||||
Restricted stock units | 206 | 132 | 168 | 79 | |||||||||||||
Performance stock units | 34 | 16 | 34 | 14 | |||||||||||||
Employee stock purchase plan shares | 27 | 30 | 60 | 52 | |||||||||||||
Total | 4,401 | 4,088 | 4,061 | 3,825 |
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 9 Months Ended | ||||
Sep. 30, 2013 | |||||
Commitments and Contingencies [Abstract] | ' | ||||
Minimum lease and other leased assets under long-term non-cancellable operating leases | ' | ||||
As of September 30, 2013 the minimum lease payments are as follows (in thousands): | |||||
Fiscal Year Ending December 31, | Amount | ||||
2013(remainder) | $ | 33 | |||
2014 | 130 | ||||
2015 | 130 | ||||
2016 | 142 | ||||
Total | $ | 435 |
Cash_and_Cash_Equivalents_and_2
Cash and Cash Equivalents and Marketable Securities (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Available-for-sale Securities [Abstract] | ' | ' |
Amortized Cost | $82,187 | $85,441 |
Gross Unrealized Gains | 116 | 138 |
Gross Unrealized Losses | -22 | -7 |
Fair Market Value | 82,281 | 85,572 |
Estimated fair value of marketable investments and long-term investments classified by contractual maturity date [Abstract] | ' | ' |
Due in less than one year | 31,472 | ' |
Due in 1 to 3 years | 36,799 | ' |
Total | 68,271 | ' |
U.S. Government Notes [Member] | ' | ' |
Available-for-sale Securities [Abstract] | ' | ' |
Amortized Cost | 5,997 | 4,005 |
Gross Unrealized Gains | 14 | 4 |
Gross Unrealized Losses | 0 | 0 |
Fair Market Value | 6,011 | 4,009 |
U.S. Government Agencies [Member] | ' | ' |
Available-for-sale Securities [Abstract] | ' | ' |
Amortized Cost | 30,499 | 24,910 |
Gross Unrealized Gains | 40 | 48 |
Gross Unrealized Losses | -13 | 0 |
Fair Market Value | 30,526 | 24,958 |
Municipal Securities [Member] | ' | ' |
Available-for-sale Securities [Abstract] | ' | ' |
Amortized Cost | 2,604 | 4,184 |
Gross Unrealized Gains | 2 | 23 |
Gross Unrealized Losses | -4 | -1 |
Fair Market Value | 2,602 | 4,206 |
Commercial Paper [Member] | ' | ' |
Available-for-sale Securities [Abstract] | ' | ' |
Amortized Cost | 9,357 | 10,515 |
Gross Unrealized Gains | 4 | 4 |
Gross Unrealized Losses | 0 | 0 |
Fair Market Value | 9,361 | 10,519 |
Corporate Debt Securities [Member] | ' | ' |
Available-for-sale Securities [Abstract] | ' | ' |
Amortized Cost | 18,570 | 18,281 |
Gross Unrealized Gains | 56 | 59 |
Gross Unrealized Losses | -5 | -6 |
Fair Market Value | 18,621 | 18,334 |
Total Marketable Securities [Member] | ' | ' |
Available-for-sale Securities [Abstract] | ' | ' |
Amortized Cost | 67,027 | 61,895 |
Gross Unrealized Gains | 116 | 138 |
Gross Unrealized Losses | -22 | -7 |
Fair Market Value | 67,121 | 62,026 |
Cash [Member] | ' | ' |
Available-for-sale Securities [Abstract] | ' | ' |
Amortized Cost | 1,830 | 2,198 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Market Value | 1,830 | 2,198 |
Money Market Funds [Member] | ' | ' |
Available-for-sale Securities [Abstract] | ' | ' |
Amortized Cost | 12,180 | 17,348 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Market Value | 12,180 | 17,348 |
Commercial Paper [Member] | ' | ' |
Available-for-sale Securities [Abstract] | ' | ' |
Amortized Cost | 1,150 | 4,000 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Market Value | 1,150 | 4,000 |
Cash and Cash Equivalents [Member] | ' | ' |
Available-for-sale Securities [Abstract] | ' | ' |
Amortized Cost | 15,160 | 23,546 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Market Value | $15,160 | $23,546 |
Fair_Value_of_Financial_Instru2
Fair Value of Financial Instruments (Details) (Fair Value, Measurements, Recurring [Member], USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Cash equivalents [Abstract] | ' | ' |
Money market funds | $12,180 | $17,348 |
Commercial paper | 1,150 | 4,000 |
Short-term marketable investments [Abstract] | ' | ' |
U.S. government notes | 6,011 | 4,009 |
U.S. government agencies | 30,526 | 24,958 |
Municipal securities | 2,602 | 4,206 |
Commercial paper | 9,361 | 10,519 |
Corporate debt securities | 18,621 | 18,334 |
Total assets at fair value | 80,451 | 83,374 |
Level 1 [Member] | ' | ' |
Cash equivalents [Abstract] | ' | ' |
Money market funds | 12,180 | 17,348 |
Commercial paper | 0 | 0 |
Short-term marketable investments [Abstract] | ' | ' |
U.S. government notes | 0 | 0 |
U.S. government agencies | 0 | 0 |
Municipal securities | 0 | 0 |
Commercial paper | 0 | 0 |
Corporate debt securities | 0 | 0 |
Total assets at fair value | 12,180 | 17,348 |
Level 2 [Member] | ' | ' |
Cash equivalents [Abstract] | ' | ' |
Money market funds | 0 | 0 |
Commercial paper | 1,150 | 4,000 |
Short-term marketable investments [Abstract] | ' | ' |
U.S. government notes | 6,011 | 4,009 |
U.S. government agencies | 30,526 | 24,958 |
Municipal securities | 2,602 | 4,206 |
Commercial paper | 9,361 | 10,519 |
Corporate debt securities | 18,621 | 18,334 |
Total assets at fair value | 68,271 | 66,026 |
Level 3 [Member] | ' | ' |
Cash equivalents [Abstract] | ' | ' |
Money market funds | 0 | 0 |
Commercial paper | 0 | 0 |
Short-term marketable investments [Abstract] | ' | ' |
U.S. government notes | 0 | 0 |
U.S. government agencies | 0 | 0 |
Municipal securities | 0 | 0 |
Commercial paper | 0 | 0 |
Corporate debt securities | 0 | 0 |
Total assets at fair value | $0 | $0 |
Inventories_Details
Inventories (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Inventories [Abstract] | ' | ' |
Raw materials | $6,368 | $7,221 |
Finished goods | 4,053 | 3,893 |
Total | $10,421 | $11,114 |
Warranty_Details
Warranty (Details) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 |
Warranty [Abstract] | ' |
Period of warranty | '1 year |
Changes in product warranty accrual [Roll forward] | ' |
Beginning Balance | $1,212 |
Add: Accruals for warranties issued during the period | 2,403 |
Less: Settlements made during the period | -2,557 |
Ending Balance | $1,058 |
Deferred_Service_Contract_Reve2
Deferred Service Contract Revenue (Details) (USD $) | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Changes in deferred service contract revenue [Roll forward] | ' | ' |
Beginning Balance | $8,539,000 | $5,838,000 |
Add: Payments received | 10,869,000 | 9,335,000 |
Add: Contract revenue assumed with business acquisition | 0 | 780,000 |
Less: Revenue recognized | -8,937,000 | -8,359,000 |
Ending Balance | 10,471,000 | 7,594,000 |
Service Contract [Member] | ' | ' |
Changes in deferred service contract revenue [Roll forward] | ' | ' |
Costs incurred under service contracts | $5,200,000 | $5,400,000 |
Stockholders_Equity_and_Stockb2
Stockholders' Equity and Stock-based Compensation Expense (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs and Stock repurchase program [Line Items] | ' | ' | ' | ' |
Stock-based compensation expense | $748,000 | $809,000 | $2,370,000 | $2,334,000 |
Number of shares of common stock issued (in shares) | ' | ' | 556,674 | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Number of shares of common stock granted (in shares) | ' | ' | 1,230,000 | ' |
Unrecognized compensation expense, net of projected forfeitures | 5,100,000 | ' | 5,100,000 | ' |
Period for Recognition | ' | ' | '2 years 9 months 18 days | ' |
Stock Options [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Number of shares of common stock granted (in shares) | ' | ' | 1,007,000 | ' |
Restricted Stock Units [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Number of shares of common stock granted (in shares) | ' | ' | 189,000 | ' |
Performance Stock Units [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Number of shares of common stock granted (in shares) | ' | ' | 34,000 | ' |
Original stock buyback program [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs and Stock repurchase program [Line Items] | ' | ' | ' | ' |
Increase in the authorized amount under the stock repurchase plan | ' | ' | 10,000,000 | ' |
Modified stock buyback program [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs and Stock repurchase program [Line Items] | ' | ' | ' | ' |
Amount authorized by the Board of Directors for stock repurchase program | ' | ' | 20,000,000 | ' |
Shares of common stock repurchased (in shares) | 796,919 | ' | ' | ' |
Value of common stock repurchased | 7,600,000 | ' | ' | ' |
Remaining amount available for the stock repurchase program | ' | ' | 12,400,000 | ' |
Cost of Revenue [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs and Stock repurchase program [Line Items] | ' | ' | ' | ' |
Stock-based compensation expense | 159,000 | 169,000 | 484,000 | 480,000 |
Sales and Marketing [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs and Stock repurchase program [Line Items] | ' | ' | ' | ' |
Stock-based compensation expense | 182,000 | 177,000 | 579,000 | 476,000 |
Research and Development [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs and Stock repurchase program [Line Items] | ' | ' | ' | ' |
Stock-based compensation expense | 103,000 | 126,000 | 293,000 | 419,000 |
General and Administrative [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs and Stock repurchase program [Line Items] | ' | ' | ' | ' |
Stock-based compensation expense | $304,000 | $337,000 | $1,014,000 | $959,000 |
Net_Loss_Per_Share_Details
Net Loss Per Share (Details) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Antidilutive securities excluded from computation of diluted net loss per common share (in shares) | 4,401 | 4,088 | 4,061 | 3,825 |
Options to Purchase Common Stock [Member] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Antidilutive securities excluded from computation of diluted net loss per common share (in shares) | 4,134 | 3,910 | 3,799 | 3,680 |
Restricted Stock Units [Member] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Antidilutive securities excluded from computation of diluted net loss per common share (in shares) | 206 | 132 | 168 | 79 |
Performance Stock Units [Member] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Antidilutive securities excluded from computation of diluted net loss per common share (in shares) | 34 | 16 | 34 | 14 |
Employee Stock Purchase Plan Shares [Member] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Antidilutive securities excluded from computation of diluted net loss per common share (in shares) | 27 | 30 | 60 | 52 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Income Taxes [Abstract] | ' | ' | ' | ' | ' |
Income tax provision | ($169) | ($64) | ($97) | $122 | ' |
Deferred tax assets, valuation allowance, percentage (in hundredths) | ' | ' | 100.00% | ' | 100.00% |
Extended years for research credit | '2 years | ' | ' | ' | ' |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details) (USD $) | 9 Months Ended |
Sep. 30, 2013 | |
Commitments and Contingencies [Abstract] | ' |
Gross rent expense | $487,000 |
Accumulated depreciation | 64,000 |
Minimum Lease Payments [Abstract] | ' |
2013 (remainder) | 33,000 |
2014 | 130,000 |
2015 | 130,000 |
2016 | 142,000 |
Total | 435,000 |
Estimated litigation liability | $100,000 |