Cutera (CUTR) 10-Q 4 Nov 13 2013 Q3 Quarterly report Financial data

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