Document_And_Entity_Informatio
Document And Entity Information | 3 Months Ended | |
Mar. 31, 2015 | Apr. 30, 2015 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | CUTERA INC | |
Document Type | 10-Q | |
Current Fiscal Year End Date | -19 | |
Entity Common Stock, Shares Outstanding | 14,480,938 | |
Amendment Flag | FALSE | |
Entity Central Index Key | 1162461 | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Filer Category | Accelerated Filer | |
Entity Well-known Seasoned Issuer | No | |
Document Period End Date | 31-Mar-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (Unaudited) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $13,462 | $9,803 |
Marketable investments | 62,595 | 71,343 |
Accounts receivable, net | 10,400 | 11,137 |
Inventories | 11,855 | 10,988 |
Deferred tax asset | 26 | 26 |
Other current assets and prepaid expenses | 1,699 | 1,591 |
Total current assets | 100,037 | 104,888 |
Property and equipment, net | 1,545 | 1,461 |
Deferred tax asset, net of current portion | 291 | 269 |
Intangibles, net | 450 | 595 |
Goodwill | 1,339 | 1,339 |
Other long-term assets | 362 | 361 |
Total assets | 104,024 | 108,913 |
Current liabilities: | ||
Accounts payable | 2,855 | 3,083 |
Accrued liabilities | 8,946 | 11,007 |
Deferred revenue | 8,971 | 8,898 |
Total current liabilities | 20,772 | 22,988 |
Deferred revenue, net of current portion | 3,714 | 4,346 |
Income tax liability | 167 | 145 |
Other long-term liabilities | 798 | 926 |
Total liabilities | 25,451 | 28,405 |
Commitments and Contingencies (Note 10) | ||
Stockholders’ equity: | ||
Common stock, $0.001 par value; authorized: 50,000,000 shares; issued and outstanding: 14,715,896 and 14,446,950 shares at March 31, 2015 and December 31, 2014, respectively | 15 | 14 |
Additional paid-in capital | 107,408 | 105,721 |
Accumulated deficit | -28,876 | -25,232 |
Accumulated other comprehensive income | 26 | 5 |
Total stockholders’ equity | 78,573 | 80,508 |
Total liabilities and stockholders’ equity | 104,024 | 108,913 |
Convertible Preferred Stock [Member] | ||
Stockholders’ equity: | ||
Convertible preferred stock, $0.001 par value; authorized: 5,000,000 shares; none issued and outstanding | $0 | $0 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Unaudited) (Parentheticals) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Common stock, par value (in Dollars per share) | $0.00 | $0.00 |
Common stock, authorized | 50,000,000 | 50,000,000 |
Common stock, issued | 14,715,896 | 14,446,950 |
Common stock, outstanding | 14,715,896 | 14,446,950 |
Convertible Preferred Stock [Member] | ||
Convertible preferred stock, par value (in Dollars per share) | $0.00 | $0.00 |
Convertible preferred stock, authorized | 5,000,000 | 5,000,000 |
Convertible preferred stock, issued | 0 | 0 |
Convertible preferred stock, outstanding | 0 | 0 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (Unaudited) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Net revenue: | ||
Products | $14,703,000 | $11,752,000 |
Service | 4,368,000 | 4,437,000 |
Total net revenue | 19,071,000 | 16,189,000 |
Cost of revenue: | ||
Products | 7,309,000 | 5,077,000 |
Service | 1,743,000 | 2,226,000 |
Total cost of revenue | 9,052,000 | 7,303,000 |
Gross profit | 10,019,000 | 8,886,000 |
Operating expenses: | ||
Sales and marketing | 8,187,000 | 7,331,000 |
Research and development | 2,445,000 | 2,644,000 |
General and administrative | 2,989,000 | 2,564,000 |
Total operating expenses | 13,621,000 | 12,539,000 |
Loss from operations | -3,602,000 | -3,653,000 |
Interest and other income, net | 8,000 | 80,000 |
Loss before income taxes | -3,594,000 | -3,573,000 |
Provision for income taxes | 50,000 | 37,000 |
Net loss | ($3,644,000) | ($3,610,000) |
Net loss per share: | ||
Basic and Diluted (in Dollars per share) | ($0.25) | ($0.26) |
Weighted-average number of shares used in per share calculations: | ||
Basic and Diluted (in Shares) | 14,611 | 14,021 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Loss (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Net loss | ($3,644) | ($3,610) |
Available-for-sale investments | ||
Net change in unrealized gain on available-for-sale investments | 33 | 2 |
Net change in unrealized gain on available-for-sale investments | 33 | 2 |
Tax provision | 12 | 1 |
Other comprehensive income, net of tax | 21 | 1 |
Comprehensive loss | ($3,623) | ($3,609) |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Cash flows from operating activities: | ||
Net loss | ($3,644) | ($3,610) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Stock-based compensation | 961 | 625 |
Depreciation and amortization | 327 | 331 |
Other | 106 | 97 |
Changes in assets and liabilities: | ||
Accounts receivable | 737 | 3,091 |
Inventories | -867 | -634 |
Other current assets and prepaid expenses | -15 | -792 |
Other long-term assets | -1 | 303 |
Accounts payable | -228 | 663 |
Accrued liabilities | -2,781 | -1,534 |
Other long-term liabilities | -72 | -70 |
Deferred revenue | -559 | 548 |
Income tax liability | 22 | 10 |
Net cash used in operating activities | -6,014 | -972 |
Cash flows from investing activities: | ||
Acquisition of property, equipment and software | -407 | -239 |
Proceeds from sales of marketable investments | 5,376 | 3,200 |
Proceeds from maturities of marketable investments | 12,180 | 7,240 |
Purchase of marketable investments | -8,867 | -16,791 |
Net cash provided by (used in) investing activities | 8,282 | -6,590 |
Cash flows from financing activities: | ||
Repurchase of common stock | -4,550 | |
Proceeds from exercise of stock options and employee stock purchase plan | 6,002 | 2,096 |
Payments on capital lease obligations | -61 | -33 |
Net cash provided by financing activities | 1,391 | 2,063 |
Net increase (decrease) in cash and cash equivalents | 3,659 | -5,499 |
Cash and cash equivalents at beginning of period | 9,803 | 16,242 |
Cash and cash equivalents at end of period | 13,462 | 10,743 |
Supplemental disclosure of non-cash items: | ||
Repurchase of common stock acquired but not settled | $656 |
Note_1_Summary_of_Significant_
Note 1 - Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2015 | |
Accounting Policies [Abstract] | |
Organization, Consolidation, Basis of Presentation, Business Description and Accounting Policies [Text Block] | 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 laser and other energy-based 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 currently markets the following key product platforms: CoolGlide®, xeo®, solera®, GenesisPlusTM, excel VTM, truSculptTM, excel HRTM and enlightenTM. The Company’s products offer multiple hand pieces and applications, which allow customers to upgrade their systems. The sales of systems, upgrades, hand pieces, Titan refills and the distribution of third party manufactured cosmeceuticals (or “Skincare”) are classified as “Product” revenue. In the second quarter of 2014, the Company terminated its agreement with Merz Pharma GmbH (“Merz”) for the distribution of its Radiesse dermal filler product. In addition to Product revenue, the Company generates revenue from the sale of post-warranty service contracts, parts, detachable hand piece replacements (except for Titan) and service labor for the repair and maintenance of products that are out of warranty, all of which is classified as “Service” revenue. | |
Headquartered in Brisbane, California, the Company has wholly-owned subsidiaries in Australia, Belgium, Canada, France, Hong Kong, Japan, Spain, Switzerland and the United Kingdom. The Condensed Consolidated Financial Statements include the accounts of the Company and its subsidiaries and all inter-company transactions and balances have been eliminated. The Company markets, sells and services its products outside of the United States through its direct employees as well as a global distributor network. | |
Unaudited Interim Financial Information | |
The interim 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, 2014 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 previously filed audited financial statements and the notes thereto included in the Company’s annual report on Form 10-K for the year ended December 31, 2014 filed with the Securities and Exchange Commission (the “SEC”) on March 16, 2015. | |
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 revenue elements, warranty obligations, sales commissions, 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, fair values of performance stock units and options to purchase the Company’s stock, recoverability of deferred tax assets, legal matters and claims, 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. | |
Recent Accounting Pronouncements | |
In May 2014, the Financial Accountings Standards Board (“FASB”) issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers, or ASU 2014-09, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The standard will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective and shall take effective on January 1, 2017. The standard permits the use of either the retrospective or cumulative effect transition method and the early application of the standard is not permitted. The Company is presently evaluating the effect that ASU 2014-09 will have on its consolidated financial statements and related disclosures and has not yet selected a transition method. | |
In August 2014, the FASB issued Accounting Standards Update No. 2014-15, Disclosure of Uncertainties About an Entity's Ability to Continue as a Going Concern. This standard update provides guidance around management's responsibility to evaluate whether there is substantial doubt about an entity's ability to continue as a going concern and to provide related footnote disclosures. The new guidance is effective for all annual and interim periods ending after December 15, 2016. The new guidance will not have an impact on the Company's consolidated financial statements. |
Note_2_Cash_Cash_Equivalents_a
Note 2 - Cash, Cash Equivalents and Marketable Investments | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Disclosure Text Block Supplement [Abstract] | |||||||||||||||||
Cash, Cash Equivalents, and Marketable Securities [Text Block] | Note 2. Cash, Cash Equivalents and Marketable Investments | ||||||||||||||||
The Company invests its cash primarily in money market funds, commercial paper, corporate notes and bonds, municipal bonds, and debt securities issued by the U.S. government and its agencies. 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 with maturities of greater than three months at the time of purchase are accounted for as “available-for-sale,” are carried at fair value with unrealized gains and losses reported as a component of stockholders’ equity, are held for use in current operations and are classified in current assets as “marketable investments.” | |||||||||||||||||
The following tables summarize the components, and the unrealized gains and losses position, related to the Company’s cash, cash equivalents and marketable investments (in thousands): | |||||||||||||||||
31-Mar-15 | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Market Value | |||||||||||||
Cash and cash equivalents: | |||||||||||||||||
Cash | $ | 6,553 | $ | — | $ | — | $ | 6,553 | |||||||||
Money market funds | 3,759 | — | — | 3,759 | |||||||||||||
Commercial paper | 3,150 | — | — | 3,150 | |||||||||||||
Total cash and cash equivalents | 13,462 | — | — | 13,462 | |||||||||||||
Marketable investments: | |||||||||||||||||
U.S. government notes | 14,320 | 35 | — | 14,355 | |||||||||||||
U.S. government agencies | 18,259 | 34 | (3 | ) | 18,290 | ||||||||||||
Municipal securities | 3,914 | 3 | (3 | ) | 3,914 | ||||||||||||
Commercial paper | 10,735 | 4 | — | 10,739 | |||||||||||||
Corporate debt securities | 15,280 | 19 | (2 | ) | 15,297 | ||||||||||||
Total marketable investments | 62,508 | 95 | (8 | ) | 62,595 | ||||||||||||
Total cash, cash equivalents and marketable investments | $ | 75,970 | $ | 95 | $ | (8 | ) | $ | 76,057 | ||||||||
31-Dec-14 | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Market Value | |||||||||||||
Cash and cash equivalents: | |||||||||||||||||
Cash | $ | 7,761 | $ | — | $ | — | $ | 7,761 | |||||||||
Money market funds | 242 | — | — | 242 | |||||||||||||
Commercial paper | 1,800 | — | — | 1,800 | |||||||||||||
Total cash and cash equivalents | 9,803 | — | — | 9,803 | |||||||||||||
Marketable investments: | |||||||||||||||||
U.S. government notes | 18,345 | 17 | (1 | ) | 18,361 | ||||||||||||
U.S. government agencies | 19,768 | 33 | (1 | ) | 19,800 | ||||||||||||
Municipal securities | 3,607 | 3 | (3 | ) | 3,607 | ||||||||||||
Commercial paper | 10,693 | 2 | — | 10,695 | |||||||||||||
Corporate debt securities | 18,875 | 13 | (8 | ) | 18,880 | ||||||||||||
Total marketable investments | 71,288 | 68 | (13 | ) | 71,343 | ||||||||||||
Total cash, cash equivalents and marketable investments | $ | 81,091 | $ | 68 | $ | (13 | ) | $ | 81,146 | ||||||||
As of March 31, 2015 and December 31, 2014, total gross unrealized losses were $8,000 and $13,000, respectively, and were related to interest rate changes on available-for-sale marketable investments. The Company has concluded that it is more-likely-than-not that the securities will be held until maturity or the recovery of their cost basis. No securities were in an unrealized loss position for more than 12 months. | |||||||||||||||||
The following table summarizes the contractual maturities of the Company’s available-for-sale securities, classified as marketable investments as of March 31, 2015 (in thousands): | |||||||||||||||||
Amount | |||||||||||||||||
Due in less than one year | $ | 34,249 | |||||||||||||||
Due in 1 to 3 years | 28,346 | ||||||||||||||||
$ | 62,595 | ||||||||||||||||
Note_3_Fair_Value_of_Financial
Note 3 - Fair Value of Financial Instruments | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||
Fair Value Disclosures [Text Block] | 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 March 31, 2015, 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 were as follows (in thousands): | ||||||||||||||||||||
31-Mar-15 | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||
Cash equivalents: | ||||||||||||||||||||
Money market funds | $ | 3,759 | $ | — | $ | — | $ | 3,759 | ||||||||||||
Commercial paper | — | 3,150 | — | 3,150 | ||||||||||||||||
Marketable investments: | ||||||||||||||||||||
Available-for-sale securities | — | 62,595 | — | 62,595 | ||||||||||||||||
Total assets at fair value | $ | 3,759 | $ | 65,745 | $ | — | $ | 69,504 | ||||||||||||
As of December 31, 2014, 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): | ||||||||||||||||||||
31-Dec-14 | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||
Cash equivalents: | ||||||||||||||||||||
Money market funds | $ | 242 | $ | — | $ | — | $ | 242 | ||||||||||||
Commercial paper | — | 1,800 | — | 1,800 | ||||||||||||||||
Marketable investments: | ||||||||||||||||||||
Available-for-sale securities | — | 71,343 | — | 71,343 | ||||||||||||||||
Total assets at fair value | $ | 242 | $ | 73,143 | $ | — | $ | 73,385 | ||||||||||||
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 March 31, 2015 is less than 36 months and all of these investments are rated by S&P and Moody’s at A or better. |
Note_4_Inventories
Note 4 - Inventories | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Inventory Disclosure [Abstract] | |||||||||
Inventory Disclosure [Text Block] | Note 4. Inventories | ||||||||
As of March 31, 2015 and December 31, 2014, inventories consist of the following (in thousands): | |||||||||
31-Mar-15 | 31-Dec-14 | ||||||||
Raw materials | $ | 7,201 | $ | 7,185 | |||||
Finished goods | 4,654 | 3,803 | |||||||
Total | $ | 11,855 | $ | 10,988 | |||||
Note_5_Warranty
Note 5 - Warranty | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Product Warranties Disclosures [Abstract] | |||||||||
Product Warranty Disclosure [Text Block] | 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 three months ended March 31, 2015 and 2014 (in thousands): | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Beginning Balance | $ | 1,167 | $ | 1,202 | |||||
Add: Accruals for warranties issued during the period | 816 | 456 | |||||||
Less: Settlements made during the period | (780 | ) | (587 | ) | |||||
Ending Balance | $ | 1,203 | $ | 1,071 | |||||
Note_6_Deferred_Service_Contra
Note 6 - Deferred Service Contract Revenue | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Deferred Revenue Disclosure [Abstract] | |||||||||
Deferred Revenue Disclosure [Text Block] | Note 6. Deferred Service Contract Revenue | ||||||||
The Company generates Service revenue from the sale of extended service contracts and from time and material services provided to customers who are not under a warranty or extended service contract. Service contract revenue is recognized on a straight-line basis over the period of the applicable contract. Service revenue, from customers whose systems are not under a service contract, is recognized as the services are provided. | |||||||||
The following table provides changes in the deferred service contract revenue balance for the three months ended March 31, 2015 and 2014 (in thousands): | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Beginning Balance | $ | 12,949 | $ | 11,637 | |||||
Add: Payments received | 2,802 | 3,711 | |||||||
Less: Revenue recognized | (3,223 | ) | (3,056 | ) | |||||
Ending Balance | $ | 12,528 | $ | 12,292 | |||||
Costs for extended service contracts were $1.7 million for both of the three months ended March 31, 2015 and 2014, respectively. |
Note_7_Stockholders_Equity_and
Note 7 - Stockholders' Equity and Stock-based Compensation Expense | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | Note 7. Stockholders’ Equity and Stock-based Compensation Expense | ||||||||
Share Repurchase Program | |||||||||
On February 18, 2015, the Company’s Board of Directors modified Cutera, Inc.’s stock buyback program (“Modified Stock Buyback Program”), from $10 million to $40 million, under which the Company’s issued and outstanding common shares can be repurchased through a 10b5-1 program based on predetermined pricing and volume parameters, as well as open-market purchase that are subject to management discretion and regulatory restrictions. | |||||||||
In the quarter ended March 31, 2015, the Company repurchased 386,155 shares of its common stock for approximately $5.21 million. As of March 31, 2015, there remained an additional $34.8 million 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. All shares repurchased are retired and returned to authorized but unissued status. | |||||||||
Stock-based Compensation Expense | |||||||||
Stock-based compensation expense by department recognized during the three months ended March 31, 2015 and 2014 were as follows (in thousands): | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Cost of revenue | $ | 103 | $ | 132 | |||||
Sales and marketing | 185 | 71 | |||||||
Research and development | 182 | 124 | |||||||
General and administrative | 491 | 298 | |||||||
Total stock-based compensation expense | $ | 961 | $ | 625 | |||||
Under the 2004 Equity Incentive Plan, as amended, the Company issued 648,653 shares of common stock during the three months ended March 31, 2015, in conjunction with stock options exercised. | |||||||||
During the three months ended March 31, 2015, the following number of equity awards of the Company’s common stock was granted (in thousands): | |||||||||
Shares | |||||||||
Stock options | 70 | ||||||||
Restricted stock units | 13 | ||||||||
Performance stock units | — | ||||||||
As of March 31, 2015, there was $3.9 million of unrecognized compensation expense, net of projected forfeitures, related to non-vested equity awards. The expense is expected to be recognized over the remaining weighted-average period of 2.4 years. |
Note_8_Net_Loss_Per_Share
Note 8 - Net Loss Per Share | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Earnings Per Share [Abstract] | |||||||||
Earnings Per Share [Text Block] | 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 numbers 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 | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Options to purchase common stock | 3,164 | 3,693 | |||||||
Restricted stock units | 318 | 170 | |||||||
Performance stock units | 62 | 34 | |||||||
Employee stock purchase plan shares | 33 | 21 | |||||||
Total | 3,577 | 3,918 | |||||||
Note_9_Income_Taxes
Note 9 - Income Taxes | 3 Months Ended |
Mar. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | Note 9. Income Taxes |
The Company’s quarterly income taxes reflect an estimate of the corresponding year’s annual effective tax rate and include, when applicable, adjustments from discrete tax items. For the three months ended March 31, 2015 and 2014, the Company’s tax expense was $50,000 and $37,000, respectively, and was primarily related to income taxes of the Company’s non-U.S. operations as the Company’s U.S. operations were in a loss position and the Company maintains a 100% valuation allowance against its U.S. deferred tax assets. | |
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 enacted 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 March 31, 2015 and December 31, 2014, 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 lesser weight to its projected financial results due to the subjectivity involved in 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. |
Note_10_Commitments_and_Contin
Note 10 - Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | Note 10. Commitments and Contingencies |
Litigation and Litigation Settlements | |
The Company is named from time to time as a party to product liability, contractual lawsuits and other general corporate matters 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 March 31, 2015 and December 31, 2014, the Company had an immaterial accrual for legal matters and claims and did not expect to incur any material costs beyond the amounts accrued. . |
Accounting_Policies_by_Policy_
Accounting Policies, by Policy (Policies) | 3 Months Ended |
Mar. 31, 2015 | |
Accounting Policies [Abstract] | |
Consolidation, Subsidiaries or Other Investments, Consolidated Entities, Policy [Policy Text Block] | 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 laser and other energy-based 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 currently markets the following key product platforms: CoolGlide®, xeo®, solera®, GenesisPlusTM, excel VTM, truSculptTM, excel HRTM and enlightenTM. The Company’s products offer multiple hand pieces and applications, which allow customers to upgrade their systems. The sales of systems, upgrades, hand pieces, Titan refills and the distribution of third party manufactured cosmeceuticals (or “Skincare”) are classified as “Product” revenue. In the second quarter of 2014, the Company terminated its agreement with Merz Pharma GmbH (“Merz”) for the distribution of its Radiesse dermal filler product. In addition to Product revenue, the Company generates revenue from the sale of post-warranty service contracts, parts, detachable hand piece replacements (except for Titan) and service labor for the repair and maintenance of products that are out of warranty, all of which is classified as “Service” revenue. | |
Headquartered in Brisbane, California, the Company has wholly-owned subsidiaries in Australia, Belgium, Canada, France, Hong Kong, Japan, Spain, Switzerland and the United Kingdom. The Condensed Consolidated Financial Statements include the accounts of the Company and its subsidiaries and all inter-company transactions and balances have been eliminated. | |
Unaudited Interim Financial Information [Policy Text Block] | Unaudited Interim Financial Information |
The interim 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, 2014 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 previously filed audited financial statements and the notes thereto included in the Company’s annual report on Form 10-K for the year ended December 31, 2014 filed with the Securities and Exchange Commission (the “SEC”) on March 16, 2015. | |
Use of Estimates, Policy [Policy Text Block] | 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 revenue elements, warranty obligations, sales commissions, 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, fair values of performance stock units and options to purchase the Company’s stock, recoverability of deferred tax assets, legal matters and claims, 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. | |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements |
In May 2014, the Financial Accountings Standards Board (“FASB”) issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers, or ASU 2014-09, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The standard will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective and shall take effective on January 1, 2017. The standard permits the use of either the retrospective or cumulative effect transition method and the early application of the standard is not permitted. The Company is presently evaluating the effect that ASU 2014-09 will have on its consolidated financial statements and related disclosures and has not yet selected a transition method. | |
In August 2014, the FASB issued Accounting Standards Update No. 2014-15, Disclosure of Uncertainties About an Entity's Ability to Continue as a Going Concern. This standard update provides guidance around management's responsibility to evaluate whether there is substantial doubt about an entity's ability to continue as a going concern and to provide related footnote disclosures. The new guidance is effective for all annual and interim periods ending after December 15, 2016. The new guidance will not have an impact on the Company's consolidated financial statements. |
Note_2_Cash_Cash_Equivalents_a1
Note 2 - Cash, Cash Equivalents and Marketable Investments (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Disclosure Text Block Supplement [Abstract] | |||||||||||||||||
Unrealized Gain (Loss) on Investments [Table Text Block] | 31-Mar-15 | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Market Value | ||||||||||||
Cash and cash equivalents: | |||||||||||||||||
Cash | $ | 6,553 | $ | — | $ | — | $ | 6,553 | |||||||||
Money market funds | 3,759 | — | — | 3,759 | |||||||||||||
Commercial paper | 3,150 | — | — | 3,150 | |||||||||||||
Total cash and cash equivalents | 13,462 | — | — | 13,462 | |||||||||||||
Marketable investments: | |||||||||||||||||
U.S. government notes | 14,320 | 35 | — | 14,355 | |||||||||||||
U.S. government agencies | 18,259 | 34 | (3 | ) | 18,290 | ||||||||||||
Municipal securities | 3,914 | 3 | (3 | ) | 3,914 | ||||||||||||
Commercial paper | 10,735 | 4 | — | 10,739 | |||||||||||||
Corporate debt securities | 15,280 | 19 | (2 | ) | 15,297 | ||||||||||||
Total marketable investments | 62,508 | 95 | (8 | ) | 62,595 | ||||||||||||
Total cash, cash equivalents and marketable investments | $ | 75,970 | $ | 95 | $ | (8 | ) | $ | 76,057 | ||||||||
31-Dec-14 | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Market Value | |||||||||||||
Cash and cash equivalents: | |||||||||||||||||
Cash | $ | 7,761 | $ | — | $ | — | $ | 7,761 | |||||||||
Money market funds | 242 | — | — | 242 | |||||||||||||
Commercial paper | 1,800 | — | — | 1,800 | |||||||||||||
Total cash and cash equivalents | 9,803 | — | — | 9,803 | |||||||||||||
Marketable investments: | |||||||||||||||||
U.S. government notes | 18,345 | 17 | (1 | ) | 18,361 | ||||||||||||
U.S. government agencies | 19,768 | 33 | (1 | ) | 19,800 | ||||||||||||
Municipal securities | 3,607 | 3 | (3 | ) | 3,607 | ||||||||||||
Commercial paper | 10,693 | 2 | — | 10,695 | |||||||||||||
Corporate debt securities | 18,875 | 13 | (8 | ) | 18,880 | ||||||||||||
Total marketable investments | 71,288 | 68 | (13 | ) | 71,343 | ||||||||||||
Total cash, cash equivalents and marketable investments | $ | 81,091 | $ | 68 | $ | (13 | ) | $ | 81,146 | ||||||||
Investments Classified by Contractual Maturity Date [Table Text Block] | Amount | ||||||||||||||||
Due in less than one year | $ | 34,249 | |||||||||||||||
Due in 1 to 3 years | 28,346 | ||||||||||||||||
$ | 62,595 |
Note_3_Fair_Value_of_Financial1
Note 3 - Fair Value of Financial Instruments (Tables) | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||
Fair Value Measurements, Recurring and Nonrecurring [Table Text Block] | 31-Mar-15 | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
Cash equivalents: | ||||||||||||||||||||
Money market funds | $ | 3,759 | $ | — | $ | — | $ | 3,759 | ||||||||||||
Commercial paper | — | 3,150 | — | 3,150 | ||||||||||||||||
Marketable investments: | ||||||||||||||||||||
Available-for-sale securities | — | 62,595 | — | 62,595 | ||||||||||||||||
Total assets at fair value | $ | 3,759 | $ | 65,745 | $ | — | $ | 69,504 | ||||||||||||
31-Dec-14 | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||
Cash equivalents: | ||||||||||||||||||||
Money market funds | $ | 242 | $ | — | $ | — | $ | 242 | ||||||||||||
Commercial paper | — | 1,800 | — | 1,800 | ||||||||||||||||
Marketable investments: | ||||||||||||||||||||
Available-for-sale securities | — | 71,343 | — | 71,343 | ||||||||||||||||
Total assets at fair value | $ | 242 | $ | 73,143 | $ | — | $ | 73,385 |
Note_4_Inventories_Tables
Note 4 - Inventories (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Inventory Disclosure [Abstract] | |||||||||
Schedule of Inventory, Current [Table Text Block] | 31-Mar-15 | 31-Dec-14 | |||||||
Raw materials | $ | 7,201 | $ | 7,185 | |||||
Finished goods | 4,654 | 3,803 | |||||||
Total | $ | 11,855 | $ | 10,988 |
Note_5_Warranty_Tables
Note 5 - Warranty (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Product Warranties Disclosures [Abstract] | |||||||||
Schedule of Product Warranty Liability [Table Text Block] | Three Months Ended | ||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Beginning Balance | $ | 1,167 | $ | 1,202 | |||||
Add: Accruals for warranties issued during the period | 816 | 456 | |||||||
Less: Settlements made during the period | (780 | ) | (587 | ) | |||||
Ending Balance | $ | 1,203 | $ | 1,071 |
Note_6_Deferred_Service_Contra1
Note 6 - Deferred Service Contract Revenue (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Deferred Revenue Disclosure [Abstract] | |||||||||
Deferred Revenue, by Arrangement, Disclosure [Table Text Block] | Three Months Ended | ||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Beginning Balance | $ | 12,949 | $ | 11,637 | |||||
Add: Payments received | 2,802 | 3,711 | |||||||
Less: Revenue recognized | (3,223 | ) | (3,056 | ) | |||||
Ending Balance | $ | 12,528 | $ | 12,292 |
Note_7_Stockholders_Equity_and1
Note 7 - Stockholders' Equity and Stock-based Compensation Expense (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block] | Three Months Ended | ||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Cost of revenue | $ | 103 | $ | 132 | |||||
Sales and marketing | 185 | 71 | |||||||
Research and development | 182 | 124 | |||||||
General and administrative | 491 | 298 | |||||||
Total stock-based compensation expense | $ | 961 | $ | 625 | |||||
Schedule of Equity Awards Granted [Table Text Block] | Shares | ||||||||
Stock options | 70 | ||||||||
Restricted stock units | 13 | ||||||||
Performance stock units | — |
Note_8_Net_Loss_Per_Share_Tabl
Note 8 - Net Loss Per Share (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Earnings Per Share [Abstract] | |||||||||
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | Three Months Ended | ||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Options to purchase common stock | 3,164 | 3,693 | |||||||
Restricted stock units | 318 | 170 | |||||||
Performance stock units | 62 | 34 | |||||||
Employee stock purchase plan shares | 33 | 21 | |||||||
Total | 3,577 | 3,918 |
Note_2_Cash_Cash_Equivalents_a2
Note 2 - Cash, Cash Equivalents and Marketable Investments (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Disclosure Text Block Supplement [Abstract] | ||
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | $8,000 | $13,000 |
Note_2_Cash_Cash_Equivalents_a3
Note 2 - Cash, Cash Equivalents and Marketable Investments (Details) - Unrealized Gains and Losses Related to Marketable Investments (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 |
Cash and cash equivalents: | ||||
Amortized Cost | $13,462,000 | $9,803,000 | $10,743,000 | $16,242,000 |
Fair Market Value | 13,462,000 | 9,803,000 | ||
Marketable investments: | ||||
Amortized Cost | 62,508,000 | 71,288,000 | ||
Gross Unrealized Gains | 95,000 | 68,000 | ||
Gross Unrealized Losses | -8,000 | -13,000 | ||
Fair Market Value | 62,595,000 | 71,343,000 | ||
Amortized Cost | 75,970,000 | 81,091,000 | ||
Gross Unrealized Gains | 95,000 | 68,000 | ||
Gross Unrealized Losses | -8,000 | -13,000 | ||
Fair Market Value | 76,057,000 | 81,146,000 | ||
US Treasury and Government [Member] | ||||
Marketable investments: | ||||
Amortized Cost | 14,320,000 | 18,345,000 | ||
Gross Unrealized Gains | 35,000 | 17,000 | ||
Gross Unrealized Losses | -1,000 | |||
Fair Market Value | 14,355,000 | 18,361,000 | ||
Gross Unrealized Gains | 35,000 | 17,000 | ||
Gross Unrealized Losses | -1,000 | |||
US Government Agencies Debt Securities [Member] | ||||
Marketable investments: | ||||
Amortized Cost | 18,259,000 | 19,768,000 | ||
Gross Unrealized Gains | 34,000 | 33,000 | ||
Gross Unrealized Losses | -3,000 | -1,000 | ||
Fair Market Value | 18,290,000 | 19,800,000 | ||
Gross Unrealized Gains | 34,000 | 33,000 | ||
Gross Unrealized Losses | -3,000 | -1,000 | ||
US States and Political Subdivisions Debt Securities [Member] | ||||
Marketable investments: | ||||
Amortized Cost | 3,914,000 | 3,607,000 | ||
Gross Unrealized Gains | 3,000 | 3,000 | ||
Gross Unrealized Losses | -3,000 | -3,000 | ||
Fair Market Value | 3,914,000 | 3,607,000 | ||
Gross Unrealized Gains | 3,000 | 3,000 | ||
Gross Unrealized Losses | -3,000 | -3,000 | ||
Commercial Paper, Not Included with Cash and Cash Equivalents [Member] | ||||
Marketable investments: | ||||
Amortized Cost | 10,735,000 | 10,693,000 | ||
Gross Unrealized Gains | 4,000 | 2,000 | ||
Fair Market Value | 10,739,000 | 10,695,000 | ||
Gross Unrealized Gains | 4,000 | 2,000 | ||
Corporate Debt Securities [Member] | ||||
Marketable investments: | ||||
Amortized Cost | 15,280,000 | 18,875,000 | ||
Gross Unrealized Gains | 19,000 | 13,000 | ||
Gross Unrealized Losses | -2,000 | -8,000 | ||
Fair Market Value | 15,297,000 | 18,880,000 | ||
Gross Unrealized Gains | 19,000 | 13,000 | ||
Gross Unrealized Losses | -2,000 | -8,000 | ||
Cash [Member] | ||||
Cash and cash equivalents: | ||||
Amortized Cost | 6,553,000 | 7,761,000 | ||
Fair Market Value | 6,553,000 | 7,761,000 | ||
Money Market Funds [Member] | ||||
Cash and cash equivalents: | ||||
Amortized Cost | 3,759,000 | 242,000 | ||
Fair Market Value | 3,759,000 | 242,000 | ||
Commercial Paper [Member] | ||||
Cash and cash equivalents: | ||||
Amortized Cost | 3,150,000 | 1,800,000 | ||
Fair Market Value | $3,150,000 | $1,800,000 |
Note_2_Cash_Cash_Equivalents_a4
Note 2 - Cash, Cash Equivalents and Marketable Investments (Details) - Maturities of Available-for-Sale Securities (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Maturities of Available-for-Sale Securities [Abstract] | ||
Due in less than one year | $34,249 | |
Due in 1 to 3 years | 28,346 | |
$62,595 | $71,343 |
Note_3_Fair_Value_of_Financial2
Note 3 - Fair Value of Financial Instruments (Details) (Fair Value, Inputs, Level 2 [Member]) | 3 Months Ended |
Mar. 31, 2015 | |
Fair Value, Inputs, Level 2 [Member] | |
Note 3 - Fair Value of Financial Instruments (Details) [Line Items] | |
Maximum Maturity Period Of Investments | 36 months |
Note_3_Fair_Value_of_Financial3
Note 3 - Fair Value of Financial Instruments (Details) - Summary of Fair Value of Financial Instruments (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Cash equivalents: | ||
Cash Equivalents | $13,462 | $9,803 |
Marketable investments: | ||
Marketable Investments | 62,595 | 71,343 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Money Market Funds [Member] | ||
Cash equivalents: | ||
Cash Equivalents | 3,759 | 242 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Marketable investments: | ||
Total assets at fair value | 3,759 | 242 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Commercial Paper [Member] | ||
Cash equivalents: | ||
Cash Equivalents | 3,150 | 1,800 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Marketable investments: | ||
Marketable Investments | 62,595 | 71,343 |
Total assets at fair value | 65,745 | 73,143 |
Fair Value, Measurements, Recurring [Member] | Money Market Funds [Member] | ||
Cash equivalents: | ||
Cash Equivalents | 3,759 | 242 |
Fair Value, Measurements, Recurring [Member] | Commercial Paper [Member] | ||
Cash equivalents: | ||
Cash Equivalents | 3,150 | 1,800 |
Fair Value, Measurements, Recurring [Member] | ||
Marketable investments: | ||
Marketable Investments | 62,595 | 71,343 |
Total assets at fair value | 69,504 | 73,385 |
Money Market Funds [Member] | ||
Cash equivalents: | ||
Cash Equivalents | 3,759 | 242 |
Commercial Paper [Member] | ||
Cash equivalents: | ||
Cash Equivalents | $3,150 | $1,800 |
Note_4_Inventories_Details_Sum
Note 4 - Inventories (Details) - Summary of Inventories (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Summary of Inventories [Abstract] | ||
Raw materials | $7,201 | $7,185 |
Finished goods | 4,654 | 3,803 |
Total | $11,855 | $10,988 |
Note_5_Warranty_Details_Summar
Note 5 - Warranty (Details) - Summary of Warranties (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Summary of Warranties [Abstract] | ||
Beginning Balance | $1,167 | $1,202 |
Add: Accruals for warranties issued during the period | 816 | 456 |
Less: Settlements made during the period | -780 | -587 |
Ending Balance | $1,203 | $1,071 |
Note_6_Deferred_Service_Contra2
Note 6 - Deferred Service Contract Revenue (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Deferred Revenue Disclosure [Abstract] | ||
Deferred Revenue, Costs Incurred | $1.70 | $1.70 |
Note_6_Deferred_Service_Contra3
Note 6 - Deferred Service Contract Revenue (Details) - Summary of Deferred Service Contract Revenue (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Summary of Deferred Service Contract Revenue [Abstract] | ||
Beginning Balance | $12,949 | $11,637 |
Ending Balance | 12,528 | 12,292 |
Add: Payments received | 2,802 | 3,711 |
Less: Revenue recognized | ($3,223) | ($3,056) |
Note_7_Stockholders_Equity_and2
Note 7 - Stockholders' Equity and Stock-based Compensation Expense (Details) (USD $) | 3 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Mar. 31, 2015 | Feb. 18, 2015 | Feb. 17, 2015 |
Employee Stock Option [Member] | |||
Note 7 - Stockholders' Equity and Stock-based Compensation Expense (Details) [Line Items] | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $3.90 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years 146 days | ||
Modified Stock Buyback Program [Member] | |||
Note 7 - Stockholders' Equity and Stock-based Compensation Expense (Details) [Line Items] | |||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | 34.8 | 40 | 10 |
Stock Repurchased During Period, Shares (in Shares) | 386,155 | ||
Treasury Stock, Value, Acquired, Cost Method | $5.21 | ||
2004 Equity Incentive Plan [Member] | |||
Note 7 - Stockholders' Equity and Stock-based Compensation Expense (Details) [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period (in Shares) | 648,653 |
Note_7_Stockholders_Equity_and3
Note 7 - Stockholders' Equity and Stock-based Compensation Expense (Details) - Stock-based Compensation Expense by Department (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation expense | $961 | $625 |
Cost of Sales [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation expense | 103 | 132 |
Selling and Marketing Expense [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation expense | 185 | 71 |
Research and Development Expense [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation expense | 182 | 124 |
General and Administrative Expense [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation expense | $491 | $298 |
Note_7_Stockholders_Equity_and4
Note 7 - Stockholders' Equity and Stock-based Compensation Expense (Details) - Summary of Equity Awards Granted | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2015 |
Note 7 - Stockholders' Equity and Stock-based Compensation Expense (Details) - Summary of Equity Awards Granted [Line Items] | |
Stock options | 70 |
Restricted Stock Units (RSUs) [Member] | |
Note 7 - Stockholders' Equity and Stock-based Compensation Expense (Details) - Summary of Equity Awards Granted [Line Items] | |
Equity Awards | 13 |
Note_8_Net_Loss_Per_Share_Deta
Note 8 - Net Loss Per Share (Details) - Antidilutive Securities Excluded from Computation of Earnings Per Share | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities | 3,577 | 3,918 |
Employee Stock Option [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities | 3,164 | 3,693 |
Restricted Stock Units (RSUs) [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities | 318 | 170 |
Performance Shares [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities | 62 | 34 |
ESPP [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities | 33 | 21 |
Note_9_Income_Taxes_Details
Note 9 - Income Taxes (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Income Tax Disclosure [Abstract] | ||
Income Tax Expense (Benefit) | $50,000 | $37,000 |
Deferred Tax Assets Valuation Allowance Percentage | 100.00% | 100.00% |