Cutera (CUTR) 10-K 15 Mar 17 2016 FY Annual report Financial data

Document And Entity Information

Document And Entity Information - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Feb. 28, 2017	Jun. 30, 2016
Document Information [Line Items]
Entity Registrant Name	CUTERA INC
Entity Central Index Key	1,162,461
Trading Symbol	cutr
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Entity Common Stock, Shares Outstanding (in shares)		13,866,428
Entity Public Float			$ 98
Document Type	10-K
Document Period End Date	Dec. 31, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	FY
Amendment Flag	false

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 13,775	$ 10,868
Marketable investments	40,299	37,539
Accounts receivable, net of allowance for doubtful accounts of $21 and $4, respectively	16,547	11,669
Inventories	14,977	12,078
Other current assets and prepaid expenses	2,251	1,675
Total current assets	87,849	73,829
Property and equipment, net	1,907	1,473
Deferred tax assets	377	350
Intangibles, net	2	143
Goodwill	1,339	1,339
Other long-term assets	380	384
Total assets	91,854	77,518
Current liabilities:
Accounts payable	2,598	1,959
Accrued liabilities	17,397	13,834
Deferred revenue	8,394	8,638
Total current liabilities	28,389	24,431
Deferred revenue, net of current portion	1,705	2,287
Income tax liability	168	182
Other long-term liabilities	582	584
Total liabilities	30,844	27,484
Commitments and contingencies (Note 10)
Stockholders’ equity:
Convertible preferred stock, $0.001 par value; Authorized: 5,000,000 shares; Issued and outstanding: none
Common stock, $0.001 par value; Authorized: 50,000,000 shares; Issued and outstanding: 13,773,389 and 12,980,807 shares at December 31, 2016 and 2015, respectively	14	13
Additional paid-in capital	88,114	79,782
Accumulated deficit	(27,046)	(29,672)
Accumulated other comprehensive loss	(72)	(89)
Total stockholders’ equity	61,010	50,034
Total liabilities and stockholders’ equity	$ 91,854	$ 77,518

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Accounts receivable, allowance for doubtful accounts	$ 21	$ 4
Convertible preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
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)	$ 0.001	$ 0.001
Common stock, authorized (in shares)	50,000,000	50,000,000
Common stock, issued (in shares)	13,773,389	12,980,807
Common stock, outstanding (in shares)	13,773,389	12,980,807

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) shares in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Net revenue:
Products	$ 99,028,000	$ 77,022,000	$ 60,299,000
Sales Revenue, Services, Net	19,028,000	17,739,000	17,839,000
Total net revenue	118,056,000	94,761,000	78,138,000
Cost of revenue:
Products	40,149,000	32,402,000	26,796,000
Service	9,772,000	8,076,000	7,969,000
Total cost of revenue	49,921,000	40,478,000	34,765,000
Gross profit	68,135,000	54,283,000	43,373,000
Operating expenses:
Sales and marketing	41,563,000	35,942,000	32,246,000
Research and development	11,232,000	10,733,000	10,543,000
General and administrative	12,943,000	12,129,000	11,203,000
Total operating expenses	65,738,000	58,804,000	53,992,000
Income (loss) from operations	2,397,000	(4,521,000)	(10,619,000)
Interest and other income, net	323,000	293,000	226,000
Income (loss) before income taxes	2,720,000	(4,228,000)	(10,393,000)
Income tax provision	143,000	212,000	219,000
Net income (loss)	$ 2,577,000	$ (4,440,000)	$ (10,612,000)
Net income (loss) per share:
Basic (in dollars per share)	$ 0.19	$ (0.32)	$ (0.74)
Diluted (in dollars per share)	$ 0.19	$ (0.32)	$ (0.74)
Weighted-average number of shares used in per share calculations:
Basic (in shares)	13,225	13,960	14,254
Diluted (in shares)	13,753	13,960	14,254

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Net income (loss)	$ 2,577	$ (4,440)	$ (10,612)
Available-for-sale investments
Net change in unrealized gain (loss) on available-for-sale investments	30	(87)	(42)
Less: Reclassification adjustment for net gains on investments recognized during the year	(3)	(7)	(4)
Net change in unrealized gain (loss) on available-for-sale investments	27	(94)	(46)
Tax provision	10
Other comprehensive income (loss), net of tax	17	(94)	(46)
Comprehensive income (loss)	$ 2,594	$ (4,534)	$ (10,658)

Consolidated Statements of Stoc

Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	AOCI Attributable to Parent [Member]	Total
Balance (in shares) at Dec. 31, 2013	13,931,833
Balance at Dec. 31, 2013	$ 14	$ 98,820	$ (14,620)	$ 51	$ 84,265
Issuance of common stock for employee purchase plan (in shares)	52,759
Issuance of common stock for employee purchase plan		451			$ 451
Exercise of stock options (in shares)	396,970				396,970
Exercise of stock options		3,307			$ 3,307
Issuance of common stock in settlement of restricted and performance stock units, net of shares withheld for employee taxes, and stock awards (in shares)	65,388
Issuance of common stock in settlement of restricted and performance stock units, net of shares withheld for employee taxes, and stock awards		(156)			(156)
Stock-based compensation expense		3,299			3,299
Net income (loss)			(10,612)		(10,612)
Net change in unrealized loss on available-for-sale investments				(46)	(46)
Balance (in shares) at Dec. 31, 2014	14,446,950
Balance at Dec. 31, 2014	$ 14	105,721	(25,232)	5	80,508
Issuance of common stock for employee purchase plan (in shares)	55,872
Issuance of common stock for employee purchase plan		577			$ 577
Exercise of stock options (in shares)	1,141,904				1,141,904
Exercise of stock options	$ 2	10,500			$ 10,502
Issuance of common stock in settlement of restricted and performance stock units, net of shares withheld for employee taxes, and stock awards (in shares)	154,119
Issuance of common stock in settlement of restricted and performance stock units, net of shares withheld for employee taxes, and stock awards		(1,018)			(1,018)
Stock-based compensation expense		4,084			4,084
Net income (loss)			(4,440)		(4,440)
Net change in unrealized loss on available-for-sale investments				(94)	$ (94)
Balance (in shares) at Dec. 31, 2015	12,980,807				12,980,807
Balance at Dec. 31, 2015	$ 13	79,782	(29,672)	(89)	$ 50,034
Repurchase of common stock (in shares)	(2,818,038)
Repurchase of common stock	$ (3)	(40,082)			(40,085)
Issuance of common stock for employee purchase plan (in shares)	79,922
Issuance of common stock for employee purchase plan		768			$ 768
Exercise of stock options (in shares)	1,051,138				1,051,138
Exercise of stock options	$ 1	9,342			$ 9,343
Issuance of common stock in settlement of restricted and performance stock units, net of shares withheld for employee taxes, and stock awards (in shares)	116,833
Issuance of common stock in settlement of restricted and performance stock units, net of shares withheld for employee taxes, and stock awards		(618)			(618)
Stock-based compensation expense		3,713			3,713
Net income (loss)			2,577		2,577
Net change in unrealized loss on available-for-sale investments				17	$ 17
Balance (in shares) at Dec. 31, 2016	13,773,389				13,773,389
Balance at Dec. 31, 2016	$ 14	88,114	(27,046)	(72)	$ 61,010
Repurchase of common stock (in shares)	(455,311)
Repurchase of common stock		(4,873)			(4,873)
Deferred tax relating to adoption of ASU 2016-09			$ 49		$ 49

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Cash flows from operating activities:
Net income (loss)	$ 2,577,000	$ (4,440,000)	$ (10,612,000)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Stock-based compensation	3,713,000	4,084,000	3,299,000
Depreciation and amortization	982,000	1,186,000	1,336,000
Impairment of intangible assets			650,000
Other	15,000	227,000	206,000
Changes in assets and liabilities:
Accounts receivable	(4,899,000)	(536,000)	(1,460,000)
Inventories	(2,899,000)	(1,090,000)	(1,982,000)
Other current assets and prepaid expenses	(432,000)	241,000	239,000
Other long-term assets	4,000	(23,000)	(37,000)
Accounts payable	639,000	(1,124,000)	1,263,000
Accrued liabilities	3,461,000	2,687,000	1,650,000
Other long-term liabilities	(329,000)	(289,000)	(285,000)
Deferred revenue	(826,000)	(2,319,000)	1,410,000
Income tax liability	(14,000)	37,000	37,000
Net cash provided by (used in) operating activities	1,992,000	(1,359,000)	(4,286,000)
Cash flows from investing activities:
Acquisition of property, equipment and software	(537,000)	(746,000)	(734,000)
Disposal of property and equipment	20,000
Proceeds from sales of marketable investments	9,008,000	21,171,000	12,354,000
Proceeds from maturities of marketable investments	25,810,000	35,918,000	26,915,000
Purchase of marketable investments	(37,693,000)	(23,697,000)	(44,146,000)
Net cash provided by (used in) investing activities	(3,392,000)	32,646,000	(5,611,000)
Cash flows from financing activities:
Repurchase of common stock	(4,873,000)	(40,085,000)
Proceeds from exercise of stock options and employee stock purchase plan	10,111,000	11,079,000	3,758,000
Taxes paid related to net share settlement of equity awards	(618,000)	(1,018,000)	(156,000)
Payments on capital lease obligation	(313,000)	(198,000)	(144,000)
Net cash provided by (used in) financing activities	4,307,000	(30,222,000)	3,458,000
Net increase (decrease) in cash and cash equivalents	2,907,000	1,065,000	(6,439,000)
Cash and cash equivalents at beginning of year	10,868,000	9,803,000	16,242,000
Cash and cash equivalents at end of year	13,775,000	10,868,000	9,803,000
Supplemental cash flow information:
Cash paid for interest	43,000	20,000	26,000
Cash paid for income taxes	222,000	160,000	225,000
Supplemental non-cash investing and financing activities:
Assets acquired under capital lease	$ 801,000	$ 285,000	$ 70,000

Note 1 - Summary of Significant

Note 1 - Summary of Significant Accounting Policies	12 Months Ended
	Dec. 31, 2016
Notes to Financial Statements
Organization, Consolidation, Basis of Presentation, Business Description and Accounting Policies [Text Block]	NOTE 1—SUMMARY 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 system platforms: en lighten TM , excel HR TM , truSculpt TM , excel V TM , xeo ®. Titan ® truSculpt third Titan truSculpt Headquartered in Brisbane, California, the Company has wholly-owned subsidiaries that are currently operational in Australia, Belgium, Canada, France, Hong Kong, Japan, Spain (until January 2017), Use of Estimates The preparation of Consolidated Financial Statements in conformity with generally accepted accounting principles in the United States of America (“GAAP”) requires the Company’s management to make estimates and assumptions that affect the amounts reported and disclosed in the financial statements and the accompanying notes. Actual results could differ materially from those estimates. On an ongoing basis, the Company evaluates their estimates, including those related to warranty obligation, sales commission, accounts receivable and sales allowances, valuation of inventories, fair values of acquired intangible assets, useful lives of intangible assets and property and equipment, fair values of options to purchase the Company’s common stock and other share based awards, recoverability of deferred tax assets, and effective income tax rates, among others. Management bases their 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, Cash Equivalents, and Marketable Investments The Company invests its cash primarily in money market funds and in highly liquid debt instruments of U.S. federal and municipal governments and their agencies, commercial paper and corporate debt securities. All highly liquid investments with stated maturities of three three The Company determines the appropriate classification of its investments in marketable securities at the time of purchase and re-evaluates such designation at each balance sheet date. The Company’s marketable securities have been classified and accounted for as available-for-sale. Investments with remaining maturities more than one Fair Value Measurements 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. 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. Carrying amounts of the Company’s financial instruments, including cash equivalents, accounts receivable, accounts payable and accrued liabilities, approximate their fair values as of the balance sheet dates because of their generally short maturities. The fair value hierarchy distinguishes between (1) (2) three 1) 3). three ● Level 1: ● Level 2: 2 ● Level 3: Impairment of Marketable Investments After determining the fair value of available-for-sales debt instruments, gains or losses on these securities are recorded to other comprehensive income (loss), until either the security is sold or the Company determines that the decline in value is other-than-temporary. The primary differentiating factors that the Company considers in classifying impairments as either temporary or other-than-temporary impairments are the Company’s intent and ability to retain the investment in the issuer for a period of time sufficient to allow for any anticipated recovery in market value or the maturity of the investment, the length of the time and the extent to which the market value of the investment has been less than cost and the financial condition and near-term prospects of the issuer. There were no other-than-temporary impairments in the years ended December 31, 2016, 2015, 2014. Allowance for Sales Returns and Doubtful Accounts The allowance for sales returns is based on the Company’s estimates of potential future product returns and other allowances related to current period product revenue. The Company analyzes historical returns, current economic trends and changes in customer demand and acceptance of our products. The allowance for doubtful accounts is based on the Company’s assessment of the collectability of customer accounts. The Company regularly reviews the allowance by considering factors such as historical experience, credit quality, the age of the accounts receivable balances, and current economic conditions that may Concentration of Credit Risk and Other Risks and Uncertainties Financial instruments that potentially subject the Company to concentrations of risk consist principally of cash, cash equivalents, marketable investments and accounts receivable. The Company’s cash and cash equivalents are primarily invested in deposits and money market accounts with three may The Company invests in debt instruments, including bonds of the U.S. Government, its agencies and municipalities. The Company has also invested in other high grade investments such as commercial paper and corporate bonds. By policy, the Company restricts its exposure to any single issuer by imposing concentration limits. To minimize the exposure due to adverse shifts in interest rates, the Company maintains investments at an average maturity of generally less than eighteen Accounts receivable are typically unsecured and are derived from revenue earned from worldwide customers. The Company performs credit evaluations of its customers and maintains reserves for potential credit losses. As of December 31, 2016 2015, one 12% 10%, During the years ended December 31, 2016, 2015, 2014, 55%, 52%, 45%, 45%, 48%, 55%, 10% December 31, 2016, 2015, 2014. The Company is also subject to risks common to companies in the medical device industry, including, but not limited to, new technology innovations, dependence on key personnel, dependence on key suppliers, protection of proprietary technology, product liability, Food and Drug Administration and/or international regulatory approvals required for new products and compliance with government regulations. Inventories Inventories are stated at the lower of cost or market, cost being determined on a standard cost basis, which approximates actual cost on a first first The Company includes demonstration units within inventories. Demonstration units are carried at cost and amortized over an estimated economic life of two As of December 31, 2016 2015, $2.4 $2.3 Property and Equipment Property and equipment are stated at cost, net of accumulated depreciation. Depreciation recognized is on a straight-line basis over the estimated useful lives of the assets, generally as follows: Useful Lives Leasehold improvements Lesser of useful life or term of lease Office equipment and furniture (in years) 3 Machinery and equipment (in years) 3 Upon sale or retirement of property and equipment, the costs and related accumulated depreciation and amortization are removed from the balance sheet and the resulting gain or loss is reflected in operating expenses. Maintenance and repairs are charged to operations as incurred. Depreciation expense related to property and equipment for 2016, 2015 2014, $841,000, $734,000 $562,000 Goodwill and Intangible Assets Goodwill, which represents the excess of the purchase price over the fair value of net tangible and identifiable intangible assets, is not subject to amortization, but is subject to at least an annual assessment for impairment, applying a fair-value based test. The Company’s intangible assets are comprised of purchased technology sub-licenses, acquired customer relationships, and those assets acquired in conjunction with an asset acquisition in February 2012 being amortized on a declining-balance basis, over their respective useful lives, which range from approximately 11 10 Impairment of Long-lived Assets Goodwill is not amortized, but is tested for impairment at least annually or as circumstances indicate their value may fourth one December 31, 2016, The Company evaluates the recoverability of its long-lived assets, which include amortizable intangible and tangible assets. Acquired intangible assets with definite useful lives are amortized over their useful lives. The Company evaluates long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying value of long-lived assets may 2014, $650,000 Warranty Obligations The Company provides a standard one 14 16 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 actual service records to calculate the average service expense per system and applies this to the equivalent number of units exposed under warranty. The Company updates these estimated charges every quarter. Revenue Recognition Products revenue is recognized when title and risk of ownership has been transferred, provided that: ● Persuasive evidence of an arrangement exists; ● The price is fixed or determinable; ● Delivery has occurred or services have been rendered; and ● Collectability is reasonably assured. Transfer of title and risk of ownership occurs when the product is shipped to the customer or when the customer receives the product, depending on the nature of the arrangement. Revenue is recorded net of customer and distributor discounts. When collectability is not reasonably assured, the Company recognizes revenue upon receipt of cash payment. Sales to customers and distributors do not include any return or exchange rights. In addition, the Company’s distributor agreements obligate the distributor to pay the Company for the sale regardless of whether the distributor is able to resell the product. Shipping and handling charges are invoiced to customers based on the amount of products sold. Shipping and handling fees are recorded as revenue and the related expense as a component of Products cost of revenue. Multiple-element arrangements A multiple-element arrangement includes the sale of one one For multiple-element arrangements revenue is allocated to each element based on their relative selling prices. Relative selling prices are based on vendor specified objective evidence (“VSOE”), if available, third With respect to the sale of its truSculpt truSculpt truSculpt truSculpt The Company also offers customers extended service contracts. Revenue under service contracts is recognized on a straight-line basis over the period of the applicable service contract. Service revenue billed on a time and material basis, from customers whose systems are not under a service contact, is recognized as the services are provided. Service revenue for the years ended December 31, 2016, 2015, 2014 $19.0 $17.7 $17.8 Cost of Revenue Cost of revenue consists primarily of material, finished and semi-finished products purchased from third The Company's system sales include a control console, universal graphic user interface, control system software, high voltage electronics and a combination of applications (referred to as hand pieces). Hand pieces are programmed to have a limited number of uses to ensure the safety of the device to patients. The Company sells refurbished hand pieces, or "refills," of its Titan Research and Development Expenditures Costs related to research, design, development and testing of products are charged to research and development expense as incurred. Expenses incurred primarily relate to employees, facilities, material, third Advertising Costs Advertising costs are included as part of sales and marketing expense and are expensed as incurred. Advertising expenses for 2016, 2015 2014 $1.3 $1.2 $1.6 Stock-based Compensation The Company accounts for its employee stock options under the fair value method of accounting using a Black-Scholes valuation model to measure stock option expense at the date of grant. The fair value of Restricted Stock Units (“RSUs”) is measured at the market price of the Company’s stock on the date of grant. The fair value of Performance Stock Units (“PSUs”) that have operational measurement goals, are measured at the market price of the Company’s stock on the date of grant. PSUs with market-based measurement goals are valued using the Monte-Carlo simulation option-pricing model. The Monte-Carlo simulation option-pricing model uses the same input assumptions as the Black-Scholes model, however, it further incorporates into the fair-value determination the possibility that the market condition may Stock-based compensation expense, net of estimated forfeitures, is recognized over the requisite service period. For RSUs and PSUs, the Company issues shares on the vesting dates, net of the minimum tax withholding requirements to be paid by the Company on behalf of its employees. As a result, the actual number of shares issued will be fewer than the actual number of RSUs and PSUs that vest. The Company records the liability for withholding amounts to be paid by the Company as a reduction to additional paid-in capital when the shares are issued. Cash flows resulting from the tax benefits due to tax deductions in excess of the compensation cost recognized for stock-based awards for options exercised and for RSUs and PSUs vested during the period (excess tax benefits), are classified as operating cash flows. Income Taxes The Company recognizes income taxes under the liability method. The Company recognizes deferred income taxes for differences between the financial reporting and tax bases of assets and liabilities at enacted statutory tax rates in effect for the years in which differences are expected to reverse. The Company recognizes the effect on deferred taxes of a change in tax rates in income in the period that includes the enactment date. For deferred tax assets which are not subject to a valuation allowance, the Company has determined that its future taxable income will be sufficient to recover all of the deferred tax assets. However, should there be a change in the recoverability of the deferred tax assets, the Company could be required to record a valuation allowance against the net carrying value of its deferred tax assets. This would result in an increase to the Company’s tax provision in the period in which they determined that the recovery was not probable. The measurement of deferred taxes often involves an exercise of judgment related to the computation and realization of tax basis. The deferred tax assets and liabilities reflect management’s assessment that tax positions taken, and the resulting tax basis, are more likely than not to be sustained if they are audited by taxing authorities. Also, assessing tax rates that the Company expects to apply and determining the years when the temporary differences are expected to affect taxable income requires judgment about the future apportionment of the Company’s income among the states in which the Company operates. These matters, and others, involve the exercise of significant judgment. Any changes in the Company’s practices or judgments involved in the measurement of deferred tax assets and liabilities could materially impact the Company’s financial condition or results of operations. Valuation allowances are established when necessary to reduce deferred income tax assets to amounts that the Company believes are more likely than not to be recovered. The Company evaluates its deferred tax assets quarterly to determine whether adjustments to the Company’s valuation allowance are appropriate. In making this evaluation, the Company relies on its recent history of pre-tax earnings, estimated timing of future deductions and benefits represented by the deferred tax assets, and its forecasts of future earnings, the latter two The Company establishes reserves for uncertain tax positions in accordance with the Income Taxes subtopic of ASC 740. 50% may Comprehensive Loss Comprehensive loss includes all changes in stockholders’ equity except those resulting from investments or contributions by stockholders. For the periods presented, the accumulated other comprehensive income (loss) consisted solely of the unrealized gains or losses on the Company's available-for-sale investments, net of tax. Foreign Currency The U.S. Dollar is the functional currency of the Company’s subsidiaries. Monetary assets and liabilities are re-measured into U.S. Dollars at the applicable period end exchange rate. Sales and operating expenses are re-measured at average exchange rates in effect during each period. Gains or losses resulting from foreign currency transactions are included in net income (loss) and are insignificant for each of the three December 31, 2016. three December 31, 2016. Segments The Company operates in one one December 31, 2016 2015, 98% 9 Recent Accounting Pronouncements In May 2014, 2014 09, Revenue from Contracts with Customers 2016, August 2015, December 15, 2017, December 15, 2016. In July 2015, 2015 11, Simplifying the Measurement of Inventory two first January 1, 2017 In February 2016, 2016 02, Leases 12 December 15, 2018. Adopted Accounting Pronouncements The Company early adopted ASU 2016 09 fourth 2016. 6—Income

Note 2 - Investment Securities

Note 2 - Investment Securities	12 Months Ended
	Dec. 31, 2016
Notes to Financial Statements
Cash, Cash Equivalents, and Marketable Securities [Text Block]	NOTE 2—INVESTMENT The following tables summarize cash, cash equivalents and marketable securities (in thousands): December 31, 2016 20 15 Cash and cash equivalents: Cash $ 6,672 $ 9,830 Cash equivalents: Money market funds 6,053 1,000 Commercial paper 1,050 38 Total cash and cash equivalents 13,775 10,868 Marketable securities: U.S. government notes 8,398 7,779 U.S. government agencies 3,916 12,608 Municipal securities 1,325 4,346 Commercial paper 12,299 4,040 Corporate debt securities 14,361 8,766 Total marketable securities 40,299 37,539 Total cash, cash equivalents and marketable securities $ 54,074 $ 48,407 The following table summarizes unrealized gains and losses related to the Company’s marketable investments (in thousands): December 31, 201 6 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Market Value Cash and cash equivalents $ 13,775 $ — $ — $ 13,775 Marketable investments U.S. government notes 8,403 4 (9 ) 8,398 U.S. government agencies 3,918 — (2 ) 3,916 Municipal securities 1,325 — — 1,325 Commercial paper 12,299 2 (2 ) 12,299 Corporate debt securities 14,366 3 (8 ) 14,361 Total marketable securities 40,311 9 (21 ) 40,299 Total cash, cash equivalents and marketable securities $ 54,086 $ 9 $ (21 ) $ 54,074 December 31, 201 5 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Market Value Cash and cash equivalents $ 10,868 $ — $ — $ 10,868 Marketable investments U.S. government notes 7,780 1 (2 ) 7,779 U.S. government agencies 12,630 3 (25 ) 12,608 Municipal securities 4,344 2 — 4,346 Commercial paper 4,041 1 (2 ) 4,040 Corporate debt securities 8,783 — (17 ) 8,766 Total marketable securities 37,578 7 (46 ) 37,539 Total cash, cash equivalents and marketable securities $ 48,446 $ 7 $ (46 ) $ 48,407 No investments were in a continuous unrealized loss position for longer than 12 December 31, 2016 2015. The following table summarizes the estimated fair value of the Company’s marketable investments classified by the contractual maturity date of the security as of December 31, 2016 (in thousands): Amount Due in less than one year (fiscal year 2017) $ 36,796 Due in 1 to 3 years (fiscal year 2018-2019) 3,503 Total marketable securities $ 40,299 Fair Value Measurements The following table summarizes 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 (in thousands): December 31, 201 6 Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 6,053 $ — $ — $ 6,053 Commercial paper — 1,050 — 1,050 Short term marketable investments: Available-for-sale securities — 40,299 — 40,299 Total assets at fair value $ 6,053 $ 41,349 $ — $ 47,402 December 31, 201 5 Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 1,000 $ — $ — $ 1,000 Commercial paper — 38 — 38 Short term marketable investments: Available-for-sale securities — 37,539 — 37,539 Total assets at fair value $ 1,000 $ 37,577 $ — $ 38,577 The Company’s Level 1 The Company’s Level 2 may two 2 December 31, 2016 36 At December 31, 2014, 3 2012, 3

Note 3 - Balance Sheet Detail

Note 3 - Balance Sheet Detail	12 Months Ended
	Dec. 31, 2016
Notes to Financial Statements
Supplemental Balance Sheet Disclosures [Text Block]	NOTE 3 —BALANCE SHEET DETAIL Inventories Inventories consist of the following (in thousands): December 31, 2016 201 5 Raw materials $ 10,966 $ 7,982 Finished goods 4,011 4,096 Total $ 14,977 $ 12,078 Property and Equipment, net Property and equipment, net, consists of the following (in thousands): December 31, 201 6 201 5 Leasehold improvements $ 652 $ 822 Office equipment and furniture 2,973 2,970 Machinery and equipment 5,435 4,662 9,060 8,454 Less: Accumulated depreciation (7,153 ) (6,981 ) Property and equipment, net $ 1,907 $ 1,473 Included in machinery and equipment are financed vehicles used by the Company’s North American sales employees. As of December 31, 2016 2015, $1.4 $862,000 $492,000 $374,000, Goodwill and Other Intangible Assets Goodwill and other intangible assets comprise a patent sublicense acquired from Palomar in 2006 , intangible assets and goodwill related to the acquisition of Iridex’s aesthetic business unit, and, customer relationships in the Benelux countries acquired from a former distributor in 2013 . The components of intangible assets at December 31, 2016 2015 Gross Carrying Amount Accumulated Amortization & Impairment Amount Net Amount December 31, 2016 Patent sublicense $ 1,218 $ 1,218 $ — Customer relationship intangible related to acquisition 2,510 2,508 2 Other identified intangible assets related to acquisition 780 780 — Other intangible 155 155 — Goodwill 1,339 — 1,339 Total $ 6,002 $ 4,661 $ 1,341 December 31, 2015 Patent sublicense $ 1,218 $ 1,218 $ — Customer relationship intangible related to acquisition 2,510 2,367 143 Other identified intangible assets related to acquisition 780 780 — Other intangible 155 155 — Goodwill 1,339 — 1,339 Total $ 6,002 $ 4,520 $ 1,482 As of December 31, 2014, 2012, $650,000 Amortization expense (excluding the impairment charge described above) in the 2016, 2015, 2014 $141,000, $452,000, $773,000, Based on intangible assets recorded at December 31, 2016, Year ending December 31, Amount 2017 $ 2 Total $ 2 Accrued Liabilities Accrued liabilities consist of the following (in thousands): December 31, 201 6 201 5 Accrued payroll and related expenses $ 9.036 $ 7,726 Accrued sales tax 2,373 1,935 Warranty liability 2,461 1,819 Other accrued liabilities 3,527 2,354 Total $ 17,397 $ 13,834

Note 4 - Warranty and Service C

Note 4 - Warranty and Service Contracts	12 Months Ended
	Dec. 31, 2016
Notes to Financial Statements
Product Warranty Disclosure [Text Block]	NOTE 4 —WARRANTY AND SERVICE CONTRACTS The Company has a direct field service organization in the U.S. Internationally, the Company provides direct service support through its wholly-owned subsidiaries in Australia, Belgium, Canada, France, Hong Kong, Japan, and Switzerland, as well as through third third After the original warranty period, maintenance and support are offered on a service contract basis or on a time and materials basis. The Company provides for the estimated cost to repair or replace products under warranty at the time of sale. Warranty Accrual (in thousands) December 31, 201 6 201 5 Balance at beginning of year $ 1,819 $ 1,167 Add: Accruals for warranties issued during the year 5,375 4,134 Less: Settlements and expirations made during the year (4,733 ) (3,482 ) Balance at end of year $ 2,461 $ 1,819 Deferred Service Contract Revenue (in thousands) December 31, 201 6 201 5 Balance at beginning of year $ 10,469 $ 12,949 Add: Payments received 12,344 10,378 Less: Revenue recognized (13,382 ) (12,858 ) Balance at end of year $ 9,431 $ 10,469 Costs incurred under service contracts in 2016, 2015 2014 $6.7 $6.2 $6.6

Note 5 - Stockholders' Equity,

Note 5 - Stockholders' Equity, Stock Plans and Stock-based Compensation Expense	12 Months Ended
	Dec. 31, 2016
Notes to Financial Statements
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]	NOTE 5 —STOCKHOLDERS’ EQUITY, STOCK PLANS AND STOCK-BASED COMPENSATION EXPENSE As of December 31, 2016, 2004 1998 In 1998, 1998 1998 4,650,000 On January 12, 2004, 2004 1,750,000 2004 2004 1998 1998 2012 2004 2.12 Options granted under the 1998 2004 may may 2004 may four 25% first 1/48 th on the last day of each calendar month until all of the shares have become exercisable. During 2013 2012 three 1/3 rd one 1/36 th 2014 2013 2012 seven In accordance with the 2004 2012, $60,000 2012, $60,000 one 2016, one 6,500 December 31, 2016, 2015 2014, 45,350, 21,020 38,688 In the years ended December 31, 2016, 2015 2014 229,865, 107,417 211,250 one fourth one one fourth three one third one one third two In the years ended December 31, 2016, 2015 2014 204,976, 74,667 105,000 12 8.5 12 2015 2004 On January 12, 2004, 2004 2004 2004 2004 six 2004 first i. 600,000 ii. 2.0% iii. an amount as determined by the Board of Directors. The Company’s Board of Directors did not increase the shares available for future grant on January 1, 2016, 2015 2014. 85% six December 31, 2016, 2015 2014, 2004 79,922, 55,872 52,759 December 31, 2016, 770,063 Option Activity Activity under the 1998 2004 Options Outstanding Shares Available For Grant Number of Shares Weighted- Average Exercise Price Weighted-Average Remaining Contractual Life (in years) Aggregate Intrinsic Value (in $ millions (1) Balances as of December 31, 20 1 3 709,483 3,792,162 $ 9.42 4.2 $ 5.1 Additional shares reserved ( 2 ) 200,000 — — Options granted (486,300 ) 486,300 $ 9.78 Options exercised — (396,970 ) $ 8.33 Options cancelled (expired or forfeited) 418,925 (418,925 ) $ 11.15 Stock awards granted (764,394 ) — — Stock awards cancelled (expired or forfeited) 52,046 — — Balances as of December 31, 201 4 129,760 3,462,567 $ 9.39 3.4 $ 5.7 Additional shares reserved ( 3 ) 1,300,000 — Options granted (129,000 ) 129,000 $ 13,.26 Options exercised — (1,141,904 ) $ 9.20 Options cancelled (expired or forfeited) 300,866 (300,866 ) $ 12.37 Stock awards granted (430,580 ) — — Stock awards cancelled (expired or forfeited) 92,379 — — Balances as of December 31, 201 5 1,263,425 2,148,797 $ 9.31 3.4 $ 7.9 Options granted (162,000 ) 162,000 $ 11.55 Options exercised — (1,051,138 ) $ 8.89 Options cancelled (expired or forfeited) 143,187 (143,187 ) $ 12.93 Stock awards granted (1,018,005 ) — — Stock awards cancelled (expired or forfeited) 495,050 — — Balances as of December 31, 201 6 721,657 1,116,472 $ 9.56 3.7 $ 8.7 Exercisable as of December 31, 201 6 767,277 $ 8.92 3.0 $ 6.5 Vested and expected to vest, net of estimated forfeitures, as of December 31, 2016 1,069,923 $ 9.47 3.6 $ 8.4 (1) Based on the closing stock price of the Company’s stock of $ 17.35 on December 3 0 , 201 6 , $ 12.79 on December 3 1 , 201 5, $10.68 on December 31 2014 and $ 10.18 on December 3 0 , 201 3 . (2) Approved by Board of Directors in 201 4, by stockholders in 201 5 . (3) Approved by stockholders in 2015 . The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value (the aggregate difference between the Company’s closing stock price on the last trading day of the fiscal year and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on December 31, 2016. 2016, 2015 2014 $3.6 $5.1 $824,000, December 31, 2016 Options Outstanding Options Exercisable Range of Exercise Prices Number Outstanding Weighted-Average Remaining Contractual Life (in years) Number Outstanding Weighted-Average Exercise Price $6.88 158,643 2.57 158,643 $ 6.88 $7.15 – $8.52 32,750 1.85 32,750 7.71 $8.72 127,995 1.40 127,995 8.72 $8.80 213,741 3.46 166,370 8.80 $8.91 – $9.65 144,460 4.19 100,019 9.31 $9.97 – $10.03 115,000 4.66 67,605 9.99 $10.24 - $10.86 114,133 3.87 55,394 10.30 $10.90 – $11.98 116,250 5.66 24,792 11.18 $13.40 - $14.04 88,500 5.87 31,938 13.67 $15.32 5,000 5.56 1,771 15.32 $6.88 – $15.32 1,116,472 3.74 767,277 $ 8.92 As of December 31, 2015 1,561,916 $9.05. Stock Awards (RSU and PSU) Activity Table Information with respect to restricted stock units’ and performance stock units’ activity is as follows (in thousands): Number of Shares Weighted Average Grant- Date Fair Value Aggregate Fair Value (1) (in thousands) Aggregate Intrinsic Value ( 2 ) (in thousands ) Outstanding at December 31, 201 3 179,465 $ 8.34 $ 1,827 Granted 360,563 $ 9.72 Vested (3) (81,157 ) $ 8.62 $ 777 (4) Forfeited (24,550 ) $ 8.14 Outstanding at December 31, 201 4 434,321 $ 9.31 $ 4,639 Granted 203,104 $ 14.81 Vested (3) (222,220 ) $ 11.79 $ 3,285 (5) Forfeited (43,575 ) $ 9.09 Outstanding at December 31, 201 5 371,630 $ 12.39 $ 4,753 Granted 480,191 $ 10.80 Vested (3) (172,990 ) $ 12.56 $ 1,906 (6) Forfeited (233,514 ) $ 11.36 Outstanding at December 31, 201 6 445,317 $ 11.15 $ 7,726 (1) Represents the value of the Company’s stock on the date that the restricted stock units and performance stock units vest. (2) Based on the closing stock price of the Company’s stock of $ 17.35 on December 31, 201 6 , $ 12.79 on December 3 1 , 201 5, $10.68 December 30, 2014 and $ 10.18 on December 31, 201 3 . (3) The number of restricted stock units vested includes shares that the Company withheld on behalf of the employees to satisfy the statutory tax withholding requirements. (4) On the grant date, the fair value for these vested awards was $ 699 ,000. (5) On the grant date, the fair value for these vested awards was $ 2.6 . (6) On the grant date, the fair value for these vested awards was $ 2.2 . Stock-Based Compensation Stock-based compensation expense for stock options, restricted stock units, performance stock units and ESPP shares for the year ended December 31, 2016, 2015 2014 Year Ended December 31, 201 6 201 5 201 4 Stock options $ 989 $ 1,438 $ 1,811 RSUs 1,508 1,297 875 PSUs 967 1,167 455 ESPP 249 182 158 Total stock-based compensation expense $ 3,713 $ 4,084 $ 3,299 As of December 31, 2016, $3.3 1.66 $110,000, 0.33 The Company issues new shares of common stock upon the exercise of stock options, vesting of RSUs and PSUs, and the issuance of ESPP shares. The amount of cash received from these issuances, net of taxes withheld and paid, in 2016, 2015 2014 $9.5 $10.1 $3.6 no 2016, 2015 2014. Total stock-based compensation expense recognized during the year ended December 31, 2016, 2015 2014 Year Ended December 31, 2016 201 5 201 4 Cost of revenue $ 341 $ 447 $ 560 Sales and marketing 1,179 1,054 641 Research and development 596 662 581 General and administrative 1,597 1,921 1,517 Total stock-based compensation expense $ 3,713 $ 4,084 $ 3,299 Valuation Assumptions and Fair Value of Stock Options and ESPP Grants The Company uses the Black-Scholes option pricing model to estimate the fair value of options granted under its equity incentive plans and rights to acquire stock granted under its employee stock purchase plan. The Company based the weighted average estimated values of employee stock option grants and rights granted under the employee stock purchase plan, as well as the weighted average assumptions used in calculating these values, on estimates at the date of grant, as follows: Stock Options Stock Purchase Plan 201 6 201 5 201 4 201 6 201 5 201 4 Expected term (in years) (1) 3.83 3.24 4.18 0.50 0.50 0.50 Risk-free interest rate (2) 1.09 % 0.90 % 1.31 % 0.46 % 0.17 % 0.06 % Volatility (3) 40 % 30 % 41 % 39 % 36 % 37 % Dividend yield (4) — % — % — % — % — % — % Weighted average estimated fair value at grant date $ 3.72 $ 4.78 $ 3.36 $ 3.22 $ 3.51 $ 2.65 (1) The expected term represents the period during which the Company’s stock-based awards are expected to be outstanding. The estimated term is based on historical experience of similar awards, giving consideration to the contractual terms of the awards, vesting requirements, and expectation of future employee behavior, including post-vesting terminations. (2) The risk-free interest rate is based on U.S. Treasury debt securities with maturities close to the expected term of the option as of the date of grant. (3) Estimated volatility is based on historical volatility. The Company also considers implied volatility when there is sufficient volume of freely traded options with comparable terms and exercise prices in the open market. (4) The Company has not historically issued any dividends and does not expect to do so in the foreseeable future. The Company periodically estimates forfeiture rates based on its historical experience within separate groups of employees and adjusts the stock-based payment expense accordingly. The forfeiture rates used in 2016 0% 17%. Stock Awards Withholdings For Stock Awards granted to employees, the number of shares issued on the date the Stock Awards vest is net of the tax withholding requirements paid on behalf of the employees. In 2016, 2015 2014, 56,157, 68,101, 15,769 $619,000, $1.0 $156,000, Stock Repurchase Program As of December 31, 2014, $10.0 November 2012 August 5, 2013. 10b5 1 February 18, 2015, $10 $40 December 31, 2015, 2,818,038 $40.0 On February 8, 2016, $10 December 31, 2016, 455,311 $4.9 December 31, 2016, $5.1 February 13, 2017 $5 10b5 1 Adjustment to Retained Earnings The Company early adopted ASU 2016 09 fourth 2016 2016 $49,000 6—Income

Note 6 - Income Taxes

Note 6 - Income Taxes	12 Months Ended
	Dec. 31, 2016
Notes to Financial Statements
Income Tax Disclosure [Text Block]	NOTE 6 —INCOME TAXES The Company files income tax returns in the U.S. federal and various state and local jurisdictions and foreign jurisdictions. The Company’s income (loss) before provision for income taxes consisted of the following (in thousands): Year Ended December 31, 201 6 201 5 201 4 U.S. $ 2,207 $ (4,588 ) $ (10,592 ) Foreign 513 360 199 Income (loss) before income taxes $ 2,720 $ (4,228 ) $ (10,393 ) The components of the provision for income taxes are as follows (in thousands): Year Ended December 31, 201 6 201 5 201 4 Current: Federal $ — $ (7 ) $ (7 ) State 16 23 19 Foreign 131 218 110 Total Current 147 234 122 Deferred: Federal (24 ) 33 32 State (2 ) — — Foreign 22 (55 ) 65 Total Deferred (4 ) (22 ) 97 Tax provision $ 143 $ 212 $ 219 The Company’s deferred tax asset consists of the following (in thousands): December 31, 201 6 201 5 Net operating loss carryforwards $ 15,487 * $ 14,231 Stock-based compensation 1,486 2,462 Other accruals and reserves 2,160 4,679 Credits 9,006 * 4,477 Foreign 377 350 Accrued warranty 890 657 Depreciation and amortization 2,627 1,105 Other 95 5 Deferred tax asset before valuation allowance 32,128 27,966 Valuation allowance (31,751 )* (27,616 ) Deferred tax asset after valuation allowance 377 350 Deferred tax liability on goodwill (85 ) (103 ) Net deferred tax asset $ 292 $ 247 * Includes impact of adopting ASU 2016 09 fourth 2016 2016, 2016. The Company’s deferred tax asset balance is reported in the following captions in the Consolidated Balance Sheets (in thousands): December 31, 201 6 201 5 Deferred tax asset $ 377 $ 350 Income tax liability (85 ) (103 ) Net deferred tax asset after valuation allowance $ 292 $ 247 The differences between the U.S. federal statutory income tax rates to the Company’s effective tax rate are as follows: Year Ended December 31, 201 6 2015* 2014* U.S. federal statutory income tax rate 34.00 % 34.00 % 34.00 % State tax rate, net of federal benefit (14.56 ) 1.94 1.62 Benefit for research and development credit (9.25 ) 15.92 7.24 Stock-based compensation 14.36 (19.19 ) (5.56 ) Foreign rate differential (0.16 ) (1.47 ) (1.04 ) True ups (0.67 ) — — Other 6.08 (4.58 ) (1.78 ) Valuation allowance (24.57 ) (31.63 ) (36.58 ) Effective tax rate 5.23 % (5.01 )% (2.10 )% *Certain items have changed for classification purposes. The Company recognizes deferred tax assets for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities, and for operating losses and tax credit carryforwards. The Company records a valuation allowance to reduce the deferred tax assets to their estimated realizable value, when it is more likely than not that it will not be able to generate sufficient future taxable income to realize the net carrying value. The Company has recorded a full valuation allowance against its U.S. federal and state deferred tax assets due to its history of operating losses. In the years ended December 31, 2016, 2015 2014, $4.1 $1.6 $3.3 As of December 31, 2016, $42.0 $21.8 2029 2035 2029 2035. December 31, 2016. As of December 31, 2016, $5.0 $6.2 2024 2035. $268,000, 2020 2021. December 31, 2016. In March 2016, 2016 09, Improvements to Employee Share-Based Payment Accounting December 15, 2016, 2016 09, In accordance with ASU 2016 09, 2016 09 fourth 2016 2016, 1. Elected to continue to estimate its forfeiture rate, rather than recognizing forfeitures as they occur; 2. Recorded a net increase to prior-period retained earnings of $49,000 3. Excess windfall net operating loss and tax credit carryforwards were converted into deferred tax net operating losses of $1.2 $3.9 2016 $5.2 The utilization of NOL carryforwards and tax credits may 382 may 382 December 31, 2016 382 Undistributed earnings of the Company’s foreign subsidiaries at December 31, 2016 2015 $3.1 $2.8 Uncertain Tax Positions The Company establishes reserves for uncertain tax positions based on the largest amount that is more-likely-than-not to be sustained. An uncertain income tax position will not be recognized if it has less than a 50% may The Company files U.S., state, and foreign income tax returns in jurisdictions with varying statutes of limitations. The 2005 2016 2011 2016 The following table summarizes the activity related to the Company’s gross unrecognized tax benefits in December 31, 2014 December 31, 2016 Year Ended December 31, 2016 201 5 201 4 Balance at beginning of year $ 651 $ 597 $ 535 Increases related to prior year tax positions — — — Increases related to current year tax positions 56 54 62 Decreases related to lapsing of statute of limitations — — — Balance at end of year $ 707 $ 651 $ 597 The Company’s total unrecognized tax benefits and accrued interest that, if recognized, would affect its effective tax rate at December 31, 2016 2015, $82,000 $78,000, December 31, 2016 2015, $49,000 $45,000 not 12

Note 7 - Net Income (Loss) Per

Note 7 - Net Income (Loss) Per Share	12 Months Ended
	Dec. 31, 2016
Notes to Financial Statements
Earnings Per Share [Text Block]	NOTE 7 —NET INCOME ( LOSS ) PER SHARE Basic net income (loss) per share is computed using the weighted-average number of shares outstanding during the period. In periods of net income, diluted shares outstanding include the dilutive effect of in-the-money equity awards (stock options, restricted stock units and performance stock units), which is calculated based on the average share price for each fiscal period using the treasury stock method. Under the treasury stock method, the amount the employee must pay for the equity award, and the amount of compensation cost for future service that the Company has not yet recognized, are all assumed to be used to repurchase shares. Diluted earnings per share is the same as basic earnings per share for the periods in which the Company had a net loss because the inclusion of outstanding common stock equivalents would be anti-dilutive. The following number of weighted shares outstanding, prior to the application of the treasury stock method, were excluded from the computation of diluted net income (loss) per common share for the years presented because including them would have had an anti-dilutive effect (in thousands): Year Ended December 31, 2016 201 5 201 4 Options to purchase common stock 220 2,575 3,489 Restricted stock units 24 296 213 Employee stock purchase plan shares — 93 86 Performance stock units — 24 37 Total 244 2,988 3,825

Note 8 - Defined Contribution P

Note 8 - Defined Contribution Plan	12 Months Ended
	Dec. 31, 2016
Notes to Financial Statements
Pension and Other Postretirement Benefits Disclosure [Text Block]	NOTE 8 —DEFINED CONTRIBUTION PLAN In the U.S., the Company has an employee savings plan (“401(k) 401(k) may 401(k) 100% 2016, 2015 2014, 401(k) $262,000, $244,000 $211,000, For the Company’s Japanese subsidiary, a discretionary employee retirement plan has been established. In addition, for some of the Company’s other foreign subsidiaries, the Company deposits funds with insurance companies, third December 31, 2016, three

Note 9 - Segment Information an

Note 9 - Segment Information and Revenue by Geograpy and Products	12 Months Ended
	Dec. 31, 2016
Notes to Financial Statements
Segment Reporting Disclosure [Text Block]	NOTE 9 —SEGMENT INFORMATION AND REVENUE BY GEOGRAP Y AND PRODUCTS Operating segments are identified as components of an enterprise about which separate discrete financial information is available for evaluation by the chief operating decision maker, or decision-making group, in making decisions how to allocate resources and assess performance. The Company’s chief decision maker, as defined under the FASB’s ASC 280 one one The following table summarizes revenue by geographic region, based on the location of the customer, and by product category (in thousands): Year Ended December 31, 201 6 201 5 201 4 Revenue mix by geography: United States $ 65,513 $ 48,916 $ 35,494 Japan 14,727 11,504 13,328 Asia, excluding Japan 13,445 15,596 11,023 Europe 7,539 7,728 7,792 Rest of the world 16,832 11,017 10,501 Consolidated total $ 118,056 $ 94,761 $ 78,138 Revenue mix by product category: Products $ 92,721 $ 71,223 $ 53,106 Hand Piece Refills 2,498 2,910 3,714 Skincare 3,809 2,889 3,479 Total product revenue 99,028 77,022 60,299 Service 19,028 17,739 17,839 Consolidated total $ 118,056 $ 94,761 $ 78,138

Note 10 - Commitments and Conti

Note 10 - Commitments and Contingencies	12 Months Ended
	Dec. 31, 2016
Notes to Financial Statements
Commitments and Contingencies Disclosure [Text Block]	NOTE 10 —COMMITMENTS AND CONTINGENCIES Facility Leases As of December 31, 2016, Year Ending December 31, Amount 2017 $ 1,912 2018 189 2019 35 2020 5 Future minimum rental payments $ 2,141 Gross rent expense recognized in the years ended December 31, 2016, 2015 2014 $1.6 $1.5 $1.5 Vehicle Leases As of December 31, 2016, Year Ending December 31, Amount 2017 $ 367 2018 354 2019 266 2020 6 Future minimum lease payments $ 993 Purchase Commitments The Company maintains certain open inventory purchase commitments with its suppliers to ensure a smooth and continuous supply for key components. The Company’s liability in these purchase commitments is generally restricted to a forecasted time-horizon as agreed between the parties. These forecasted time-horizons can vary among different suppliers. The Company’s open inventory purchase commitments with its suppliers were not significant at December 31, 2016. Indemnifications In the normal course of business, the Company enters into agreements that contain a variety of representations, warranties, and indemnification obligations. For example, the Company has entered into indemnification agreements with each of its directors and executive officers and certain key employees. The Company’s exposure under its various indemnification obligations is unknown and not reasonably estimable as they involve future claims that may 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 December 31, 2016 2015, $138,000 $110,000,

Note 11 - Related Parties

Note 11 - Related Parties	12 Months Ended
	Dec. 31, 2016
Notes to Financial Statements
Related Party Transactions Disclosure [Text Block]	NOTE 1 1 — RELATED PARTIES In 2016, $182,100 6,500 $87,100, three (3) 33.33% three October 28, 2016, December 31, 2018 $200 40

Note 12 - Subsequent Events

Note 12 - Subsequent Events	12 Months Ended
	Dec. 31, 2016
Notes to Financial Statements
Subsequent Events [Text Block]	NOTE 1 2 —SUBSEQUENT EVENT S On February 8, 2016, $10 December 31, 2016, 455,311 $4.9 December 31, 2016, $5.1 February 13, 2017 $5 10b5 1

Note 13 - Supplementary Financi

Note 13 - Supplementary Financial Data (Unaudited)	12 Months Ended
	Dec. 31, 2016
Notes to Financial Statements
Quarterly Financial Information [Text Block]	SUPPLEMENTARY FINANCIAL DATA (UNAUDITED) (In thousands, except per share amounts) Quarter ended: Dec. 31, 201 6 Sept. 30, 201 6 June 30, 201 6 March 31, 201 6 Dec. 31, 201 5 Sept. 30, 201 5 June 30, 201 5 March 31, 201 5 Net revenue $ 37,875 $ 30,281 $ 27,477 $ 22,423 $ 30,042 $ 23,085 $ 22,563 $ 19,071 Cost of revenue 15,962 12,538 11,472 9,949 12,145 9,594 9,687 9,052 Gross profit 21,913 17,743 16,005 12,474 17,897 13,491 12,876 10,019 Operating expenses: Sales and marketing 11,561 10,574 10,712 8,716 9,899 8,790 9,066 8,187 Research and development 2,897 2,914 2,712 2,709 2,812 2,748 2,728 2,445 General and administrative 3,010 2,716 3,997 3,220 3,189 2,937 3,014 2,989 Total operating expenses 17,468 16,204 17,421 14,645 15,900 14,475 14,808 13,621 Income (loss) from operations 4,445 1,539 (1,416 ) (2,171 ) 1,997 (984 ) (1,932 ) (3,602 ) Interest and other income, net (204 ) 166 217 144 105 84 96 8 Income (loss) before income taxes 4,241 1,705 (1,199 ) (2,027 ) 2,102 (900 ) (1,836 ) (3,594 ) Income tax provision 28 61 30 24 52 57 53 50 Net income (loss) $ 4,213 $ 1,644 $ (1,229 ) $ (2,051 ) $ 2,050 $ (957 ) $ (1,889 ) $ (3,644 ) Net income (loss) per share—basic $ 0.31 $ 0.12 $ (0.09 ) $ (0.16 ) $ 0.16 $ (0.07 ) $ (0.13 ) $ (0.25 ) Net income (loss) per share—diluted $ 0.30 $ 0.12 $ (0.09 ) $ (0.16 ) $ 0.15 $ (0.07 ) $ (0.13 ) $ (0.25 ) Weighted average number of shares used in per share calculations: Basic 13,591 13,163 13,131 13,010 12,978 13,827 14,441 14,611 Diluted 14,201 13,544 13,131 13,010 13,591 13,827 14,441 14,611

Schedule II - Valuation and Qua

Schedule II - Valuation and Qualifying Accounts	12 Months Ended
	Dec. 31, 2016
Notes to Financial Statements
Schedule of Valuation and Qualifying Accounts Disclosure [Text Block]	SCHEDULE II CUTERA, INC. VALUATION AND QUALIFYING ACCOUNTS (in thousands) For the Year s Ended December 31, 201 6 , 20 15 and 20 14 Balance at Beginning of Year Additions Deductions Balance at End of Year Deferred tax assets valuation allowance Year ended December 31, 2016 $ 27,616 $ 6,755 $ 2,620 $ 31,751 Year ended December 31, 2015 $ 26,046 $ 3,327 $ 1,757 $ 27,616 Year ended December 31, 2014 $ 22,762 $ 3,780 $ 496 $ 26,046 Balance at Beginning of Year Additions Deductions Balance at End of Year Allowance for doubtful accounts receivable Year ended December 31, 2016 $ 4 $ 21 $ 4 $ 21 Year ended December 31, 2015 $ — $ 4 $ — $ 4 Year ended December 31, 2014 $ 19 $ 4 $ 23 $ —

Significant Accounting Policies

Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2016
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 system platforms: en lighten TM , excel HR TM , truSculpt TM , excel V TM , xeo ®. Titan ® truSculpt third Titan truSculpt Headquartered in Brisbane, California, the Company has wholly-owned subsidiaries that are currently operational in Australia, Belgium, Canada, France, Hong Kong, Japan, Spain (until January 2017),
Use of Estimates, Policy [Policy Text Block]	Use of Estimates The preparation of Consolidated Financial Statements in conformity with generally accepted accounting principles in the United States of America (“GAAP”) requires the Company’s management to make estimates and assumptions that affect the amounts reported and disclosed in the financial statements and the accompanying notes. Actual results could differ materially from those estimates. On an ongoing basis, the Company evaluates their estimates, including those related to warranty obligation, sales commission, accounts receivable and sales allowances, valuation of inventories, fair values of acquired intangible assets, useful lives of intangible assets and property and equipment, fair values of options to purchase the Company’s common stock and other share based awards, recoverability of deferred tax assets, and effective income tax rates, among others. Management bases their 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 Marketable Investments and Long-term Investments [Policy Text Block]	Cash, Cash Equivalents, and Marketable Investments The Company invests its cash primarily in money market funds and in highly liquid debt instruments of U.S. federal and municipal governments and their agencies, commercial paper and corporate debt securities. All highly liquid investments with stated maturities of three three The Company determines the appropriate classification of its investments in marketable securities at the time of purchase and re-evaluates such designation at each balance sheet date. The Company’s marketable securities have been classified and accounted for as available-for-sale. Investments with remaining maturities more than one
Fair Value Measurement, Policy [Policy Text Block]	Fair Value Measurements 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. 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. Carrying amounts of the Company’s financial instruments, including cash equivalents, accounts receivable, accounts payable and accrued liabilities, approximate their fair values as of the balance sheet dates because of their generally short maturities. The fair value hierarchy distinguishes between (1) (2) three 1) 3). three ● Level 1: ● Level 2: 2 ● Level 3:
Marketable Securities, Policy [Policy Text Block]	Impairment of Marketable Investments After determining the fair value of available-for-sales debt instruments, gains or losses on these securities are recorded to other comprehensive income (loss), until either the security is sold or the Company determines that the decline in value is other-than-temporary. The primary differentiating factors that the Company considers in classifying impairments as either temporary or other-than-temporary impairments are the Company’s intent and ability to retain the investment in the issuer for a period of time sufficient to allow for any anticipated recovery in market value or the maturity of the investment, the length of the time and the extent to which the market value of the investment has been less than cost and the financial condition and near-term prospects of the issuer. There were no other-than-temporary impairments in the years ended December 31, 2016, 2015, 2014.
Allowances for Sales Returns and Doubtful Accounts [Policy Text Block]	Allowance for Sales Returns and Doubtful Accounts The allowance for sales returns is based on the Company’s estimates of potential future product returns and other allowances related to current period product revenue. The Company analyzes historical returns, current economic trends and changes in customer demand and acceptance of our products. The allowance for doubtful accounts is based on the Company’s assessment of the collectability of customer accounts. The Company regularly reviews the allowance by considering factors such as historical experience, credit quality, the age of the accounts receivable balances, and current economic conditions that may
Concentration Risk, Credit Risk, Policy [Policy Text Block]	Concentration of Credit Risk and Other Risks and Uncertainties Financial instruments that potentially subject the Company to concentrations of risk consist principally of cash, cash equivalents, marketable investments and accounts receivable. The Company’s cash and cash equivalents are primarily invested in deposits and money market accounts with three may The Company invests in debt instruments, including bonds of the U.S. Government, its agencies and municipalities. The Company has also invested in other high grade investments such as commercial paper and corporate bonds. By policy, the Company restricts its exposure to any single issuer by imposing concentration limits. To minimize the exposure due to adverse shifts in interest rates, the Company maintains investments at an average maturity of generally less than eighteen Accounts receivable are typically unsecured and are derived from revenue earned from worldwide customers. The Company performs credit evaluations of its customers and maintains reserves for potential credit losses. As of December 31, 2016 2015, one 12% 10%, During the years ended December 31, 2016, 2015, 2014, 55%, 52%, 45%, 45%, 48%, 55%, 10% December 31, 2016, 2015, 2014. The Company is also subject to risks common to companies in the medical device industry, including, but not limited to, new technology innovations, dependence on key personnel, dependence on key suppliers, protection of proprietary technology, product liability, Food and Drug Administration and/or international regulatory approvals required for new products and compliance with government regulations.
Inventory, Policy [Policy Text Block]	Inventories Inventories are stated at the lower of cost or market, cost being determined on a standard cost basis, which approximates actual cost on a first first The Company includes demonstration units within inventories. Demonstration units are carried at cost and amortized over an estimated economic life of two As of December 31, 2016 2015, $2.4 $2.3
Property, Plant and Equipment, Policy [Policy Text Block]	Property and Equipment Property and equipment are stated at cost, net of accumulated depreciation. Depreciation recognized is on a straight-line basis over the estimated useful lives of the assets, generally as follows: Useful Lives Leasehold improvements Lesser of useful life or term of lease Office equipment and furniture (in years) 3 Machinery and equipment (in years) 3 Upon sale or retirement of property and equipment, the costs and related accumulated depreciation and amortization are removed from the balance sheet and the resulting gain or loss is reflected in operating expenses. Maintenance and repairs are charged to operations as incurred. Depreciation expense related to property and equipment for 2016, 2015 2014, $841,000, $734,000 $562,000
Goodwill and Intangible Assets, Intangible Assets, Policy [Policy Text Block]	Goodwill and Intangible Assets Goodwill, which represents the excess of the purchase price over the fair value of net tangible and identifiable intangible assets, is not subject to amortization, but is subject to at least an annual assessment for impairment, applying a fair-value based test. The Company’s intangible assets are comprised of purchased technology sub-licenses, acquired customer relationships, and those assets acquired in conjunction with an asset acquisition in February 2012 being amortized on a declining-balance basis, over their respective useful lives, which range from approximately 11 10
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block]	Impairment of Long-lived Assets Goodwill is not amortized, but is tested for impairment at least annually or as circumstances indicate their value may fourth one December 31, 2016, The Company evaluates the recoverability of its long-lived assets, which include amortizable intangible and tangible assets. Acquired intangible assets with definite useful lives are amortized over their useful lives. The Company evaluates long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying value of long-lived assets may 2014, $650,000
Standard Product Warranty, Policy [Policy Text Block]	Warranty Obligations The Company provides a standard one 14 16 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 actual service records to calculate the average service expense per system and applies this to the equivalent number of units exposed under warranty. The Company updates these estimated charges every quarter.
Revenue Recognition, Policy [Policy Text Block]	Revenue Recognition Products revenue is recognized when title and risk of ownership has been transferred, provided that: ● Persuasive evidence of an arrangement exists; ● The price is fixed or determinable; ● Delivery has occurred or services have been rendered; and ● Collectability is reasonably assured. Transfer of title and risk of ownership occurs when the product is shipped to the customer or when the customer receives the product, depending on the nature of the arrangement. Revenue is recorded net of customer and distributor discounts. When collectability is not reasonably assured, the Company recognizes revenue upon receipt of cash payment. Sales to customers and distributors do not include any return or exchange rights. In addition, the Company’s distributor agreements obligate the distributor to pay the Company for the sale regardless of whether the distributor is able to resell the product. Shipping and handling charges are invoiced to customers based on the amount of products sold. Shipping and handling fees are recorded as revenue and the related expense as a component of Products cost of revenue. Multiple-element arrangements A multiple-element arrangement includes the sale of one one For multiple-element arrangements revenue is allocated to each element based on their relative selling prices. Relative selling prices are based on vendor specified objective evidence (“VSOE”), if available, third With respect to the sale of its truSculpt truSculpt truSculpt truSculpt The Company also offers customers extended service contracts. Revenue under service contracts is recognized on a straight-line basis over the period of the applicable service contract. Service revenue billed on a time and material basis, from customers whose systems are not under a service contact, is recognized as the services are provided. Service revenue for the years ended December 31, 2016, 2015, 2014 $19.0 $17.7 $17.8
Cost of Sales, Policy [Policy Text Block]	Cost of Revenue Cost of revenue consists primarily of material, finished and semi-finished products purchased from third The Company's system sales include a control console, universal graphic user interface, control system software, high voltage electronics and a combination of applications (referred to as hand pieces). Hand pieces are programmed to have a limited number of uses to ensure the safety of the device to patients. The Company sells refurbished hand pieces, or "refills," of its Titan
Research and Development Expense, Policy [Policy Text Block]	Research and Development Expenditures Costs related to research, design, development and testing of products are charged to research and development expense as incurred. Expenses incurred primarily relate to employees, facilities, material, third
Advertising Costs, Policy [Policy Text Block]	Advertising Costs Advertising costs are included as part of sales and marketing expense and are expensed as incurred. Advertising expenses for 2016, 2015 2014 $1.3 $1.2 $1.6
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block]	Stock-based Compensation The Company accounts for its employee stock options under the fair value method of accounting using a Black-Scholes valuation model to measure stock option expense at the date of grant. The fair value of Restricted Stock Units (“RSUs”) is measured at the market price of the Company’s stock on the date of grant. The fair value of Performance Stock Units (“PSUs”) that have operational measurement goals, are measured at the market price of the Company’s stock on the date of grant. PSUs with market-based measurement goals are valued using the Monte-Carlo simulation option-pricing model. The Monte-Carlo simulation option-pricing model uses the same input assumptions as the Black-Scholes model, however, it further incorporates into the fair-value determination the possibility that the market condition may Stock-based compensation expense, net of estimated forfeitures, is recognized over the requisite service period. For RSUs and PSUs, the Company issues shares on the vesting dates, net of the minimum tax withholding requirements to be paid by the Company on behalf of its employees. As a result, the actual number of shares issued will be fewer than the actual number of RSUs and PSUs that vest. The Company records the liability for withholding amounts to be paid by the Company as a reduction to additional paid-in capital when the shares are issued. Cash flows resulting from the tax benefits due to tax deductions in excess of the compensation cost recognized for stock-based awards for options exercised and for RSUs and PSUs vested during the period (excess tax benefits), are classified as operating cash flows.
Income Tax, Policy [Policy Text Block]	Income Taxes The Company recognizes income taxes under the liability method. The Company recognizes deferred income taxes for differences between the financial reporting and tax bases of assets and liabilities at enacted statutory tax rates in effect for the years in which differences are expected to reverse. The Company recognizes the effect on deferred taxes of a change in tax rates in income in the period that includes the enactment date. For deferred tax assets which are not subject to a valuation allowance, the Company has determined that its future taxable income will be sufficient to recover all of the deferred tax assets. However, should there be a change in the recoverability of the deferred tax assets, the Company could be required to record a valuation allowance against the net carrying value of its deferred tax assets. This would result in an increase to the Company’s tax provision in the period in which they determined that the recovery was not probable. The measurement of deferred taxes often involves an exercise of judgment related to the computation and realization of tax basis. The deferred tax assets and liabilities reflect management’s assessment that tax positions taken, and the resulting tax basis, are more likely than not to be sustained if they are audited by taxing authorities. Also, assessing tax rates that the Company expects to apply and determining the years when the temporary differences are expected to affect taxable income requires judgment about the future apportionment of the Company’s income among the states in which the Company operates. These matters, and others, involve the exercise of significant judgment. Any changes in the Company’s practices or judgments involved in the measurement of deferred tax assets and liabilities could materially impact the Company’s financial condition or results of operations. Valuation allowances are established when necessary to reduce deferred income tax assets to amounts that the Company believes are more likely than not to be recovered. The Company evaluates its deferred tax assets quarterly to determine whether adjustments to the Company’s valuation allowance are appropriate. In making this evaluation, the Company relies on its recent history of pre-tax earnings, estimated timing of future deductions and benefits represented by the deferred tax assets, and its forecasts of future earnings, the latter two The Company establishes reserves for uncertain tax positions in accordance with the Income Taxes subtopic of ASC 740. 50% may
Comprehensive Income, Policy [Policy Text Block]	Comprehensive Loss Comprehensive loss includes all changes in stockholders’ equity except those resulting from investments or contributions by stockholders. For the periods presented, the accumulated other comprehensive income (loss) consisted solely of the unrealized gains or losses on the Company's available-for-sale investments, net of tax.
Foreign Currency Transactions and Translations Policy [Policy Text Block]	Foreign Currency The U.S. Dollar is the functional currency of the Company’s subsidiaries. Monetary assets and liabilities are re-measured into U.S. Dollars at the applicable period end exchange rate. Sales and operating expenses are re-measured at average exchange rates in effect during each period. Gains or losses resulting from foreign currency transactions are included in net income (loss) and are insignificant for each of the three December 31, 2016. three December 31, 2016.
Segment Reporting, Policy [Policy Text Block]	Segments The Company operates in one one December 31, 2016 2015, 98% 9
New Accounting Pronouncements, Policy [Policy Text Block]	Recent Accounting Pronouncements In May 2014, 2014 09, Revenue from Contracts with Customers 2016, August 2015, December 15, 2017, December 15, 2016. In July 2015, 2015 11, Simplifying the Measurement of Inventory two first January 1, 2017 In February 2016, 2016 02, Leases 12 December 15, 2018. Adopted Accounting Pronouncements The Company early adopted ASU 2016 09 fourth 2016. 6—Income

Note 1 - Summary of Significa23

Note 1 - Summary of Significant Accounting Policies (Tables)	12 Months Ended
	Dec. 31, 2016
Notes Tables
Property, Plant, and Equipment Useful Lives [Table Text Block]	Useful Lives Leasehold improvements Lesser of useful life or term of lease Office equipment and furniture (in years) 3 Machinery and equipment (in years) 3

Note 2 - Investment Securities

Note 2 - Investment Securities (Tables)	12 Months Ended
	Dec. 31, 2016
Notes Tables
Investment [Table Text Block]	December 31, 2016 20 15 Cash and cash equivalents: Cash $ 6,672 $ 9,830 Cash equivalents: Money market funds 6,053 1,000 Commercial paper 1,050 38 Total cash and cash equivalents 13,775 10,868 Marketable securities: U.S. government notes 8,398 7,779 U.S. government agencies 3,916 12,608 Municipal securities 1,325 4,346 Commercial paper 12,299 4,040 Corporate debt securities 14,361 8,766 Total marketable securities 40,299 37,539 Total cash, cash equivalents and marketable securities $ 54,074 $ 48,407
Unrealized Gain (Loss) on Investments [Table Text Block]	December 31, 201 6 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Market Value Cash and cash equivalents $ 13,775 $ — $ — $ 13,775 Marketable investments U.S. government notes 8,403 4 (9 ) 8,398 U.S. government agencies 3,918 — (2 ) 3,916 Municipal securities 1,325 — — 1,325 Commercial paper 12,299 2 (2 ) 12,299 Corporate debt securities 14,366 3 (8 ) 14,361 Total marketable securities 40,311 9 (21 ) 40,299 Total cash, cash equivalents and marketable securities $ 54,086 $ 9 $ (21 ) $ 54,074 December 31, 201 5 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Market Value Cash and cash equivalents $ 10,868 $ — $ — $ 10,868 Marketable investments U.S. government notes 7,780 1 (2 ) 7,779 U.S. government agencies 12,630 3 (25 ) 12,608 Municipal securities 4,344 2 — 4,346 Commercial paper 4,041 1 (2 ) 4,040 Corporate debt securities 8,783 — (17 ) 8,766 Total marketable securities 37,578 7 (46 ) 37,539 Total cash, cash equivalents and marketable securities $ 48,446 $ 7 $ (46 ) $ 48,407
Investments Classified by Contractual Maturity Date [Table Text Block]	Amount Due in less than one year (fiscal year 2017) $ 36,796 Due in 1 to 3 years (fiscal year 2018-2019) 3,503 Total marketable securities $ 40,299
Fair Value Measurements, Recurring and Nonrecurring [Table Text Block]	December 31, 201 6 Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 6,053 $ — $ — $ 6,053 Commercial paper — 1,050 — 1,050 Short term marketable investments: Available-for-sale securities — 40,299 — 40,299 Total assets at fair value $ 6,053 $ 41,349 $ — $ 47,402 December 31, 201 5 Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 1,000 $ — $ — $ 1,000 Commercial paper — 38 — 38 Short term marketable investments: Available-for-sale securities — 37,539 — 37,539 Total assets at fair value $ 1,000 $ 37,577 $ — $ 38,577

Note 3 - Balance Sheet Detail (

Note 3 - Balance Sheet Detail (Tables)	12 Months Ended
	Dec. 31, 2016
Notes Tables
Schedule of Inventory, Current [Table Text Block]	December 31, 2016 201 5 Raw materials $ 10,966 $ 7,982 Finished goods 4,011 4,096 Total $ 14,977 $ 12,078
Property, Plant and Equipment [Table Text Block]	December 31, 201 6 201 5 Leasehold improvements $ 652 $ 822 Office equipment and furniture 2,973 2,970 Machinery and equipment 5,435 4,662 9,060 8,454 Less: Accumulated depreciation (7,153 ) (6,981 ) Property and equipment, net $ 1,907 $ 1,473
Schedule of Intangible Assets and Goodwill [Table Text Block]	Gross Carrying Amount Accumulated Amortization & Impairment Amount Net Amount December 31, 2016 Patent sublicense $ 1,218 $ 1,218 $ — Customer relationship intangible related to acquisition 2,510 2,508 2 Other identified intangible assets related to acquisition 780 780 — Other intangible 155 155 — Goodwill 1,339 — 1,339 Total $ 6,002 $ 4,661 $ 1,341 December 31, 2015 Patent sublicense $ 1,218 $ 1,218 $ — Customer relationship intangible related to acquisition 2,510 2,367 143 Other identified intangible assets related to acquisition 780 780 — Other intangible 155 155 — Goodwill 1,339 — 1,339 Total $ 6,002 $ 4,520 $ 1,482
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block]	Year ending December 31, Amount 2017 $ 2 Total $ 2
Schedule of Accrued Liabilities [Table Text Block]	December 31, 201 6 201 5 Accrued payroll and related expenses $ 9.036 $ 7,726 Accrued sales tax 2,373 1,935 Warranty liability 2,461 1,819 Other accrued liabilities 3,527 2,354 Total $ 17,397 $ 13,834

Note 4 - Warranty and Service26

Note 4 - Warranty and Service Contracts (Tables)	12 Months Ended
	Dec. 31, 2016
Notes Tables
Schedule of Product Warranty Liability [Table Text Block]	December 31, 201 6 201 5 Balance at beginning of year $ 1,819 $ 1,167 Add: Accruals for warranties issued during the year 5,375 4,134 Less: Settlements and expirations made during the year (4,733 ) (3,482 ) Balance at end of year $ 2,461 $ 1,819
Deferred Revenue, by Arrangement, Disclosure [Table Text Block]	December 31, 201 6 201 5 Balance at beginning of year $ 10,469 $ 12,949 Add: Payments received 12,344 10,378 Less: Revenue recognized (13,382 ) (12,858 ) Balance at end of year $ 9,431 $ 10,469

Note 5 - Stockholders' Equity27

Note 5 - Stockholders' Equity, Stock Plans and Stock-based Compensation Expense (Tables)	12 Months Ended
	Dec. 31, 2016
Notes Tables
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block]	Options Outstanding Shares Available For Grant Number of Shares Weighted- Average Exercise Price Weighted-Average Remaining Contractual Life (in years) Aggregate Intrinsic Value (in $ millions (1) Balances as of December 31, 20 1 3 709,483 3,792,162 $ 9.42 4.2 $ 5.1 Additional shares reserved ( 2 ) 200,000 — — Options granted (486,300 ) 486,300 $ 9.78 Options exercised — (396,970 ) $ 8.33 Options cancelled (expired or forfeited) 418,925 (418,925 ) $ 11.15 Stock awards granted (764,394 ) — — Stock awards cancelled (expired or forfeited) 52,046 — — Balances as of December 31, 201 4 129,760 3,462,567 $ 9.39 3.4 $ 5.7 Additional shares reserved ( 3 ) 1,300,000 — Options granted (129,000 ) 129,000 $ 13,.26 Options exercised — (1,141,904 ) $ 9.20 Options cancelled (expired or forfeited) 300,866 (300,866 ) $ 12.37 Stock awards granted (430,580 ) — — Stock awards cancelled (expired or forfeited) 92,379 — — Balances as of December 31, 201 5 1,263,425 2,148,797 $ 9.31 3.4 $ 7.9 Options granted (162,000 ) 162,000 $ 11.55 Options exercised — (1,051,138 ) $ 8.89 Options cancelled (expired or forfeited) 143,187 (143,187 ) $ 12.93 Stock awards granted (1,018,005 ) — — Stock awards cancelled (expired or forfeited) 495,050 — — Balances as of December 31, 201 6 721,657 1,116,472 $ 9.56 3.7 $ 8.7 Exercisable as of December 31, 201 6 767,277 $ 8.92 3.0 $ 6.5 Vested and expected to vest, net of estimated forfeitures, as of December 31, 2016 1,069,923 $ 9.47 3.6 $ 8.4
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Table Text Block]	Options Outstanding Options Exercisable Range of Exercise Prices Number Outstanding Weighted-Average Remaining Contractual Life (in years) Number Outstanding Weighted-Average Exercise Price $6.88 158,643 2.57 158,643 $ 6.88 $7.15 – $8.52 32,750 1.85 32,750 7.71 $8.72 127,995 1.40 127,995 8.72 $8.80 213,741 3.46 166,370 8.80 $8.91 – $9.65 144,460 4.19 100,019 9.31 $9.97 – $10.03 115,000 4.66 67,605 9.99 $10.24 - $10.86 114,133 3.87 55,394 10.30 $10.90 – $11.98 116,250 5.66 24,792 11.18 $13.40 - $14.04 88,500 5.87 31,938 13.67 $15.32 5,000 5.56 1,771 15.32 $6.88 – $15.32 1,116,472 3.74 767,277 $ 8.92
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity [Table Text Block]	Number of Shares Weighted Average Grant- Date Fair Value Aggregate Fair Value (1) (in thousands) Aggregate Intrinsic Value ( 2 ) (in thousands ) Outstanding at December 31, 201 3 179,465 $ 8.34 $ 1,827 Granted 360,563 $ 9.72 Vested (3) (81,157 ) $ 8.62 $ 777 (4) Forfeited (24,550 ) $ 8.14 Outstanding at December 31, 201 4 434,321 $ 9.31 $ 4,639 Granted 203,104 $ 14.81 Vested (3) (222,220 ) $ 11.79 $ 3,285 (5) Forfeited (43,575 ) $ 9.09 Outstanding at December 31, 201 5 371,630 $ 12.39 $ 4,753 Granted 480,191 $ 10.80 Vested (3) (172,990 ) $ 12.56 $ 1,906 (6) Forfeited (233,514 ) $ 11.36 Outstanding at December 31, 201 6 445,317 $ 11.15 $ 7,726
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan [Table Text Block]	Year Ended December 31, 201 6 201 5 201 4 Stock options $ 989 $ 1,438 $ 1,811 RSUs 1,508 1,297 875 PSUs 967 1,167 455 ESPP 249 182 158 Total stock-based compensation expense $ 3,713 $ 4,084 $ 3,299
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block]	Year Ended December 31, 2016 201 5 201 4 Cost of revenue $ 341 $ 447 $ 560 Sales and marketing 1,179 1,054 641 Research and development 596 662 581 General and administrative 1,597 1,921 1,517 Total stock-based compensation expense $ 3,713 $ 4,084 $ 3,299
Valuation Assumptions and Fair Value of Stock Options and ESPP Grants [Table Text Block]	Stock Options Stock Purchase Plan 201 6 201 5 201 4 201 6 201 5 201 4 Expected term (in years) (1) 3.83 3.24 4.18 0.50 0.50 0.50 Risk-free interest rate (2) 1.09 % 0.90 % 1.31 % 0.46 % 0.17 % 0.06 % Volatility (3) 40 % 30 % 41 % 39 % 36 % 37 % Dividend yield (4) — % — % — % — % — % — % Weighted average estimated fair value at grant date $ 3.72 $ 4.78 $ 3.36 $ 3.22 $ 3.51 $ 2.65

Note 6 - Income Taxes (Tables)

Note 6 - Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2016
Notes Tables
Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block]	Year Ended December 31, 201 6 201 5 201 4 U.S. $ 2,207 $ (4,588 ) $ (10,592 ) Foreign 513 360 199 Income (loss) before income taxes $ 2,720 $ (4,228 ) $ (10,393 )
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]	Year Ended December 31, 201 6 201 5 201 4 Current: Federal $ — $ (7 ) $ (7 ) State 16 23 19 Foreign 131 218 110 Total Current 147 234 122 Deferred: Federal (24 ) 33 32 State (2 ) — — Foreign 22 (55 ) 65 Total Deferred (4 ) (22 ) 97 Tax provision $ 143 $ 212 $ 219
Schedule of Deferred Tax Assets and Liabilities [Table Text Block]	December 31, 201 6 201 5 Net operating loss carryforwards $ 15,487 * $ 14,231 Stock-based compensation 1,486 2,462 Other accruals and reserves 2,160 4,679 Credits 9,006 * 4,477 Foreign 377 350 Accrued warranty 890 657 Depreciation and amortization 2,627 1,105 Other 95 5 Deferred tax asset before valuation allowance 32,128 27,966 Valuation allowance (31,751 )* (27,616 ) Deferred tax asset after valuation allowance 377 350 Deferred tax liability on goodwill (85 ) (103 ) Net deferred tax asset $ 292 $ 247
Schedule of Deferred Tax Reported in Balance Sheet [Table Text Block]	December 31, 201 6 201 5 Deferred tax asset $ 377 $ 350 Income tax liability (85 ) (103 ) Net deferred tax asset after valuation allowance $ 292 $ 247
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]	Year Ended December 31, 201 6 2015* 2014* U.S. federal statutory income tax rate 34.00 % 34.00 % 34.00 % State tax rate, net of federal benefit (14.56 ) 1.94 1.62 Benefit for research and development credit (9.25 ) 15.92 7.24 Stock-based compensation 14.36 (19.19 ) (5.56 ) Foreign rate differential (0.16 ) (1.47 ) (1.04 ) True ups (0.67 ) — — Other 6.08 (4.58 ) (1.78 ) Valuation allowance (24.57 ) (31.63 ) (36.58 ) Effective tax rate 5.23 % (5.01 )% (2.10 )%
Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block]	Year Ended December 31, 2016 201 5 201 4 Balance at beginning of year $ 651 $ 597 $ 535 Increases related to prior year tax positions — — — Increases related to current year tax positions 56 54 62 Decreases related to lapsing of statute of limitations — — — Balance at end of year $ 707 $ 651 $ 597

Note 7 - Net Income (Loss) Pe29

Note 7 - Net Income (Loss) Per Share (Tables)	12 Months Ended
	Dec. 31, 2016
Notes Tables
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block]	Year Ended December 31, 2016 201 5 201 4 Options to purchase common stock 220 2,575 3,489 Restricted stock units 24 296 213 Employee stock purchase plan shares — 93 86 Performance stock units — 24 37 Total 244 2,988 3,825

Note 9 - Segment Information 30

Note 9 - Segment Information and Revenue by Geograpy and Products (Tables)	12 Months Ended
	Dec. 31, 2016
Notes Tables
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Table Text Block]	Year Ended December 31, 201 6 201 5 201 4 Revenue mix by geography: United States $ 65,513 $ 48,916 $ 35,494 Japan 14,727 11,504 13,328 Asia, excluding Japan 13,445 15,596 11,023 Europe 7,539 7,728 7,792 Rest of the world 16,832 11,017 10,501 Consolidated total $ 118,056 $ 94,761 $ 78,138 Revenue mix by product category: Products $ 92,721 $ 71,223 $ 53,106 Hand Piece Refills 2,498 2,910 3,714 Skincare 3,809 2,889 3,479 Total product revenue 99,028 77,022 60,299 Service 19,028 17,739 17,839 Consolidated total $ 118,056 $ 94,761 $ 78,138

Note 10 - Commitments and Con31

Note 10 - Commitments and Contingencies (Tables)	12 Months Ended
	Dec. 31, 2016
Notes Tables
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block]	Year Ending December 31, Amount 2017 $ 1,912 2018 189 2019 35 2020 5 Future minimum rental payments $ 2,141
Schedule of Future Minimum Lease Payments for Capital Leases [Table Text Block]	Year Ending December 31, Amount 2017 $ 367 2018 354 2019 266 2020 6 Future minimum lease payments $ 993

Note 13 - Supplementary Finan32

Note 13 - Supplementary Financial Data (Unaudited) (Tables)	12 Months Ended
	Dec. 31, 2016
Notes Tables
Quarterly Financial Information [Table Text Block]	Quarter ended: Dec. 31, 201 6 Sept. 30, 201 6 June 30, 201 6 March 31, 201 6 Dec. 31, 201 5 Sept. 30, 201 5 June 30, 201 5 March 31, 201 5 Net revenue $ 37,875 $ 30,281 $ 27,477 $ 22,423 $ 30,042 $ 23,085 $ 22,563 $ 19,071 Cost of revenue 15,962 12,538 11,472 9,949 12,145 9,594 9,687 9,052 Gross profit 21,913 17,743 16,005 12,474 17,897 13,491 12,876 10,019 Operating expenses: Sales and marketing 11,561 10,574 10,712 8,716 9,899 8,790 9,066 8,187 Research and development 2,897 2,914 2,712 2,709 2,812 2,748 2,728 2,445 General and administrative 3,010 2,716 3,997 3,220 3,189 2,937 3,014 2,989 Total operating expenses 17,468 16,204 17,421 14,645 15,900 14,475 14,808 13,621 Income (loss) from operations 4,445 1,539 (1,416 ) (2,171 ) 1,997 (984 ) (1,932 ) (3,602 ) Interest and other income, net (204 ) 166 217 144 105 84 96 8 Income (loss) before income taxes 4,241 1,705 (1,199 ) (2,027 ) 2,102 (900 ) (1,836 ) (3,594 ) Income tax provision 28 61 30 24 52 57 53 50 Net income (loss) $ 4,213 $ 1,644 $ (1,229 ) $ (2,051 ) $ 2,050 $ (957 ) $ (1,889 ) $ (3,644 ) Net income (loss) per share—basic $ 0.31 $ 0.12 $ (0.09 ) $ (0.16 ) $ 0.16 $ (0.07 ) $ (0.13 ) $ (0.25 ) Net income (loss) per share—diluted $ 0.30 $ 0.12 $ (0.09 ) $ (0.16 ) $ 0.15 $ (0.07 ) $ (0.13 ) $ (0.25 ) Weighted average number of shares used in per share calculations: Basic 13,591 13,163 13,131 13,010 12,978 13,827 14,441 14,611 Diluted 14,201 13,544 13,131 13,010 13,591 13,827 14,441 14,611

Schedule II - Valuation and Q33

Schedule II - Valuation and Qualifying Accounts (Tables)	12 Months Ended
	Dec. 31, 2016
Notes Tables
Summary of Valuation Allowance [Table Text Block]	Balance at Beginning of Year Additions Deductions Balance at End of Year Deferred tax assets valuation allowance Year ended December 31, 2016 $ 27,616 $ 6,755 $ 2,620 $ 31,751 Year ended December 31, 2015 $ 26,046 $ 3,327 $ 1,757 $ 27,616 Year ended December 31, 2014 $ 22,762 $ 3,780 $ 496 $ 26,046 Balance at Beginning of Year Additions Deductions Balance at End of Year Allowance for doubtful accounts receivable Year ended December 31, 2016 $ 4 $ 21 $ 4 $ 21 Year ended December 31, 2015 $ — $ 4 $ — $ 4 Year ended December 31, 2014 $ 19 $ 4 $ 23 $ —

Note 1 - Summary of Significa34

Note 1 - Summary of Significant Accounting Policies (Details Textual) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2014
Long-term Investment Marketable Period	1 year
Other than Temporary Impairment Losses, Investments, Available-for-sale Securities	$ 0	$ 0	$ 0
Average Maturity Period of Interest Rate of Auction Securities	1 year 180 days
Inventories Estimated Useful Lives	2 years
Inventory, Finished Goods, Gross	$ 2,400,000	2,300,000
Depreciation	841,000	734,000	562,000
Impairment of Long-Lived Assets Held-for-use	0
Impairment of Intangible Assets (Excluding Goodwill)			650,000
Sales Revenue, Services, Net	19,028,000	17,739,000	17,839,000	$ 17,800,000
Advertising Expense	$ 1,300,000	$ 1,200,000	$ 1,600,000
Uncertain Income Tax Position Minimum Rate	50.00%
Number of Operating Segments	1
Disclosure on Geographic Areas Long Lived Assets in Entity S Country of Domicile, Percent	98.00%
End-Customers [Member]
Standard Warranty Period	1 year
Minimum [Member]
Finite-Lived Intangible Asset, Useful Life	330 days
Minimum [Member] | Distributors [Member]
Standard Warranty Period	1 year 60 days
Maximum [Member]
Finite-Lived Intangible Asset, Useful Life	10 years
Maximum [Member] | Distributors [Member]
Standard Warranty Period	1 year 120 days
Customer Concentration Risk [Member] | Accounts Receivable [Member]
Concentration Risk, Percentage	12.00%	10.00%
Geographic Concentration Risk [Member] | Sales Revenue, Net [Member] | UNITED STATES
Concentration Risk, Percentage	55.00%	52.00%	45.00%
Geographic Concentration Risk [Member] | Sales Revenue, Net [Member] | Outside the United States [Member]
Concentration Risk, Percentage	45.00%	48.00%	55.00%

Note 1 - Summary of Significa35

Note 1 - Summary of Significant Accounting Policies - Useful Lives of Property, Plant and Equipment (Details)	12 Months Ended
	Dec. 31, 2016
Equipment and Furniture [Member]
Property, plant, and equipment, useful lives (Year)	3 years
Machinery and Equipment [Member]
Property, plant, and equipment, useful lives (Year)	3 years

Note 2 - Investment Securitie36

Note 2 - Investment Securities (Details Textual) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	$ 0	$ 0
Maturity of Money Market Fund	3 years

Note 2 - Investment Securitie37

Note 2 - Investment Securities - Cash, Cash Equivalents and Marketable Securities (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Cash and cash equivalents:
Cash	$ 6,672	$ 9,830
Cash equivalents	13,775	10,868
Marketable securities:
Marketable securities	40,299	37,539
Total cash, cash equivalents and marketable securities	54,074	48,407
US Treasury and Government [Member]
Marketable securities:
Marketable securities	8,398	7,779
US Government Agencies Debt Securities [Member]
Marketable securities:
Marketable securities	3,916	12,608
US States and Political Subdivisions Debt Securities [Member]
Marketable securities:
Marketable securities	1,325	4,346
Commercial Paper, Not Included with Cash and Cash Equivalents [Member]
Marketable securities:
Marketable securities	12,299	4,040
Corporate Debt Securities [Member]
Marketable securities:
Marketable securities	14,361	8,766
Money Market Funds [Member]
Cash and cash equivalents:
Cash equivalents	6,053	1,000
Commercial Paper [Member]
Cash and cash equivalents:
Cash equivalents	$ 1,050	$ 38

Note 2 - Investment Securitie38

Note 2 - Investment Securities - Unrealized Gains and Losses Related to Marketable Investments (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Amortizated cost	$ 13,775	$ 10,868	$ 9,803	$ 16,242
Gross unrealized gains	9	7
Gross unrealized losses	(21)	(46)
Fair market value	40,299
Amortizated cost	54,086	48,446
Fair market value	54,074	48,407
US Treasury and Government [Member]
Amortizated cost	8,403	7,780
Gross unrealized gains	4	1
Gross unrealized losses	(9)	(2)
Fair market value	8,398	7,779
US Government Agencies Debt Securities [Member]
Amortizated cost	3,918	12,630
Gross unrealized gains		3
Gross unrealized losses	(2)	(25)
Fair market value	3,916	12,608
US States and Political Subdivisions Debt Securities [Member]
Amortizated cost	1,325	4,344
Gross unrealized gains		2
Gross unrealized losses
Fair market value	1,325	4,346
Commercial Paper, Not Included with Cash and Cash Equivalents [Member]
Amortizated cost	12,299	4,041
Gross unrealized gains	2	1
Gross unrealized losses	(2)	(2)
Fair market value	12,299	4,040
Corporate Debt Securities [Member]
Amortizated cost	14,366	8,783
Gross unrealized gains	3
Gross unrealized losses	(8)	(17)
Fair market value	14,361	8,766
Cash and Cash Equivalents [Member]
Amortizated cost	13,775	10,868
Fair market value	13,775	10,868
Marketable Investments [Member]
Amortizated cost	40,311	37,578
Gross unrealized gains	9	7
Gross unrealized losses	(21)	(46)
Fair market value	$ 40,299	$ 37,539

Note 2 - Investment Securitie39

Note 2 - Investment Securities - Maturities of Available-for-sale Securities (Details) $ in Thousands	Dec. 31, 2016USD ($)
Due in less than one year (fiscal year 2017)	$ 36,796
Due in 1 to 3 years (fiscal year 2018-2019)	3,503
Total marketable securities	$ 40,299

Note 2 - Investment Securitie40

Note 2 - Investment Securities - Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Available-for-sale securities	$ 40,299
Fair Value, Measurements, Recurring [Member]
Available-for-sale securities	40,299	$ 37,539
Total assets at fair value	47,402	38,577
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]
Available-for-sale securities
Total assets at fair value	6,053	1,000
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
Available-for-sale securities	40,299	37,539
Total assets at fair value	41,349	37,577
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]
Available-for-sale securities
Total assets at fair value
Money Market Funds [Member] | Fair Value, Measurements, Recurring [Member]
Cash equivalents	6,053	1,000
Money Market Funds [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]
Cash equivalents	6,053	1,000
Money Market Funds [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
Cash equivalents
Money Market Funds [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]
Cash equivalents
Commercial Paper [Member] | Fair Value, Measurements, Recurring [Member]
Cash equivalents	1,050	38
Commercial Paper [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]
Cash equivalents
Commercial Paper [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
Cash equivalents	1,050	38
Commercial Paper [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]
Cash equivalents

Note 3 - Balance Sheet Detail41

Note 3 - Balance Sheet Detail (Details Textual) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Capital Leased Assets, Gross	$ 1,400,000	$ 862,000
Capital Leases, Lessee Balance Sheet, Assets by Major Class, Accumulated Depreciation	492,000	374,000
Impairment of Intangible Assets (Excluding Goodwill)			$ 650,000
Amortization of Intangible Assets	$ 141,000	$ 452,000	$ 773,000

Note 3 - Balance Sheet Detail -

Note 3 - Balance Sheet Detail - Inventories (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Raw materials	$ 10,966	$ 7,982
Finished goods	4,011	4,096
Total	$ 14,977	$ 12,078

Note 3 - Balance Sheet Detail43

Note 3 - Balance Sheet Detail - Property and Equipment (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Property, plant and equipment, gross	$ 9,060	$ 8,454
Less: Accumulated depreciation	(7,153)	(6,981)
Property and equipment, net	1,907	1,473
Leasehold Improvements [Member]
Property, plant and equipment, gross	652	822
Equipment and Furniture [Member]
Property, plant and equipment, gross	2,973	2,970
Machinery and Equipment [Member]
Property, plant and equipment, gross	$ 5,435	$ 4,662

Note 3 - Balance Sheet Detail44

Note 3 - Balance Sheet Detail - Goodwill and Other Intangible Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Accumulated amortization and impairment amount	$ 4,661	$ 4,520
Net amount	2
Goodwill	1,339	1,339
Goodwill	1,339	1,339
Total	6,002	6,002
Total	1,341	1,482
Patents [Member]
Gross carrying amount	1,218	1,218
Accumulated amortization and impairment amount	1,218	1,218
Net amount
Customer Relationships [Member]
Gross carrying amount	2,510	2,510
Accumulated amortization and impairment amount	2,508	2,367
Net amount	2	143
Other Intangible Assets [Member]
Gross carrying amount	780	780
Accumulated amortization and impairment amount	780	780
Net amount
Other Intangible [Member]
Gross carrying amount	155	155
Accumulated amortization and impairment amount	155	155
Net amount

Note 3 - Balance Sheet Detail45

Note 3 - Balance Sheet Detail - Estimated Annual Amortization Expense (Details) $ in Thousands	Dec. 31, 2016USD ($)
2,017	$ 2
Total	$ 2

Note 3 - Balance Sheet Detail46

Note 3 - Balance Sheet Detail - Accrued Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Accrued payroll and related expenses	$ 9,036	$ 7,726
Accrued sales tax	2,373	1,935
Warranty liability	2,461	1,819
Other accrued liabilities	3,527	2,354
Total	$ 17,397	$ 13,834

Note 4 - Warranty and Service47

Note 4 - Warranty and Service Contracts (Details Textual) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Deferred Revenue Costs Incurred	$ 6.7	$ 6.2	$ 6.6

Note 4 - Warranty and Service48

Note 4 - Warranty and Service Contracts - Summary of Warranties (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Balance at beginning of year	$ 1,819	$ 1,167
Add: Accruals for warranties issued during the year	5,375	4,134
Less: Settlements and expirations made during the year	(4,733)	(3,482)
Balance at end of year	$ 2,461	$ 1,819

Note 4 - Warranty and Service49

Note 4 - Warranty and Service Contracts - Deferred Service Contract Revenue (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Balance at beginning of year	$ 10,469	$ 12,949
Add: Payments received	12,344	10,378
Less: Revenue recognized	(13,382)	(12,858)
Balance at end of year	$ 9,431	$ 10,469

Note 5 - Stockholders' Equity50

Note 5 - Stockholders' Equity, Stock Plans and Stock-based Compensation Expense (Details Textual) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012	Feb. 13, 2017	Feb. 08, 2016	Feb. 18, 2015	Feb. 17, 2015
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value	$ 3,600,000	$ 5,100,000	$ 824,000
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Exercisable Options	767,277	1,561,916
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Exercisable Options, Weighted Average Exercise Price	$ 8.92	$ 9.05
Proceeds from Issuance of Shares under Incentive and Share-based Compensation Plans, Including Stock Options	$ 10,111,000	$ 11,079,000	$ 3,758,000
Shares Paid for Tax Withholding for Share Based Compensation	56,157	68,101	15,769
Adjustments Related to Tax Withholding for Share-based Compensation	$ 619,000	$ 1,000,000	$ 156,000
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets	49,000
Employee Service Share-based Compensation, Tax Benefit Realized from Exercise of Stock Options	0	$ 0	$ 0
New Accounting Pronouncement, Early Adoption, Effect [Member]
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets	$ 49,000
Minimum [Member]
Share Based Compensation, Forfeiture Rate	0.00%
Maximum [Member]
Share Based Compensation, Forfeiture Rate	17.00%
Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period				3 years	3 years
Option Granted Contractual Term				7 years	7 years
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized	$ 3,300,000
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition	1 year 240 days
Restricted Stock Units (RSUs) [Member]
Share Price	$ 17.35	$ 12.79	$ 10.68	$ 10.18
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value	$ 2,200,000	$ 2,600,000	$ 699,000
Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	1 year	255 days	1 year
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted	204,976	74,667	105,000
Stock Purchase Plan [Member]
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized	$ 110,000
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition	120 days
1998 Stock Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized	4,650,000
Two Thousand Four Equity Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized	1,750,000
Number of Stock Awards Counted for Every Share Granted or Canceled	2.12
Share Based Compensation by Share Based Payment Fully Vested Stock Awards Grant Date Fair Value				$ 60,000
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures	45,350	21,020	38,688
Two Thousand Four Equity Incentive Plan [Member] | Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	4 years
Option Exercisable in Hundredths	25.00%
Share Price	$ 17.35	$ 12.79	$ 10.68	$ 10.18
Two Thousand Four Equity Incentive Plan [Member] | Restricted Stock Units (RSUs) [Member]
Share Based Compensation by Share Based Payment Fully Vested Stock Awards Grant Date Fair Value	$ 6,500			$ 60,000
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period	229,865	107,417	211,250
2004 Employee Stock Purchase Plan [Member]
ESPP Offering and Purchase Period	180 days
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized	600,000
Share-based Compensation Arrangement by Share-based Payment Award, Purchase Price of Common Stock, Percent	85.00%
Stock Issued During Period, Shares, Employee Stock Ownership Plan	79,922	55,872	52,759
Common Stock, Capital Shares Reserved for Future Issuance	770,063
Modified Stock Buyback Program [Member]
Increase in Authorized Amount Under Stock Repurchase Plan			$ 10,000,000
Stock Repurchase Program, Remaining Authorized Repurchase Amount	$ 5,100,000						$ 10,000,000	$ 40,000,000	$ 10,000,000
Stock Repurchased During Period, Shares	455,311	2,818,038
Stock Repurchased During Period, Value		$ 40,000,000
Treasury Stock, Value, Acquired, Cost Method	$ 4,900,000
Modified Stock Buyback Program [Member] | Subsequent Event [Member]
Stock Repurchase Program, Remaining Authorized Repurchase Amount						$ 5,000,000

Note 5 - Stockholders' Equity51

Note 5 - Stockholders' Equity, Stock Plans and Stock-based Compensation Expense - Activity Under the 2004 Equiy Incentive Plan (Details) - USD ($) $ / shares in Units, $ in Millions		12 Months Ended
		Dec. 31, 2016	Dec. 31, 2015		Dec. 31, 2014		Dec. 31, 2013
Balances, shares available for grant (in shares)		1,263,425	129,760		709,483
Balances, stock options outstanding (in shares)		2,148,797	3,462,567		3,792,162
Balances, weighted-average exercise price (in dollars per share)		$ 9.31	$ 9.39		$ 9.42
Balances, options outstanding weighted-average remaining contractual life (Year)		3 years 255 days	3 years 146 days		3 years 146 days		4 years 73 days
Balances, aggregate intrinsic value	[1]	$ 8.7	$ 7.9		$ 5.7		$ 5.1
Additional shares reserved, shares available for grant (in shares)			1,300,000	[2]	200,000	[3]
Options granted, shares available for grant (in shares)		(162,000)	(129,000)		(486,300)
Options granted, stock options outstanding (in shares)		162,000	129,000		486,300
Options granted, weighted-average exercise price (in dollars per share)		$ 11.55	$ 13.26		$ 9.78
Options exercised, stock options outstanding (in shares)		(1,051,138)	(1,141,904)		(396,970)
Options exercised, weighted-average exercise price (in dollars per share)		$ 8.89	$ 9.20		$ 8.33
Options cancelled (expired or forfeited), shares available for grant (in shares)		143,187	300,866		418,925
Options cancelled (expired or forfeited), stock options outstanding (in shares)		(143,187)	(300,866)		(418,925)
Options cancelled (expired or forfeited), weighted-average exercise price (in dollars per share)		$ 12.93	$ 12.37		$ 11.15
Stock awards granted, shares available for grant (in shares)		(1,018,005)	(430,580)		(764,394)
Stock awards cancelled (expired or forfeited), shares available for grant (in shares)		495,050	92,379		52,046
Balances, shares available for grant (in shares)		721,657	1,263,425		129,760		709,483
Balances, stock options outstanding (in shares)		1,116,472	2,148,797		3,462,567		3,792,162
Balances, weighted-average exercise price (in dollars per share)		$ 9.56	$ 9.31		$ 9.39		$ 9.42
Exercisable, stock options outstanding (in shares)		767,277
Exercisable, weighted-average exercise price (in dollars per share)		$ 8.92
Exercisable, options outstanding weighted-average remaining contractual life (Year)		3 years
Exercisable, aggregate intrinsic value	[1]	$ 6.5
Vested and expected to vest, net of estimated forfeitures, as of December 31, 2016 (in shares)		1,069,923
Vested and expected to vest, net of estimated forfeitures, as of December 31, 2016 (in dollars per share)		$ 9.47
Vested and expected to vest, net of estimated forfeitures, as of December 31, 2016 (Year)		3 years 219 days
Vested and expected to vest, net of estimated forfeitures, as of December 31, 2016	[1]	$ 8.4
[1]	Based on the closing stock price of the Company's stock of $17.35 on December 30, 2016, $12.79 on December 31, 2015, $10.68 on December 31 2014 and $10.18 on December 30, 2013.
[2]	Approved by stockholders in 2015.
[3]	Approved by Board of Directors in 2014, approved by stockholders in 2015.

Note 5 - Stockholders' Equity52

Note 5 - Stockholders' Equity, Stock Plans and Stock-based Compensation Expense - Options Outstanding and Exercisable Price Ranges (Details) - $ / shares	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Range of exercise prices, upper limit (in dollars per share)	$ 15.32
Options outstanding, number outstanding (in shares)	1,116,472
Options outstanding, weighted-average remaining contractual life (Year)	3 years 270 days
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Exercisable Options	767,277	1,561,916
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Exercisable Options, Weighted Average Exercise Price	$ 8.92	$ 9.05
Range of exercise prices, lower limit (in dollars per share)	6.88
Exercise Price Range 1 [Member]
Range of exercise prices, upper limit (in dollars per share)
Options outstanding, number outstanding (in shares)	158,643
Options outstanding, weighted-average remaining contractual life (Year)	2 years 208 days
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Exercisable Options	158,643
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Exercisable Options, Weighted Average Exercise Price	$ 6.88
Exercise Price Range 2 [Member]
Range of exercise prices, upper limit (in dollars per share)	$ 8.52
Options outstanding, number outstanding (in shares)	32,750
Options outstanding, weighted-average remaining contractual life (Year)	1 year 310 days
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Exercisable Options	32,750
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Exercisable Options, Weighted Average Exercise Price	$ 7.71
Range of exercise prices, lower limit (in dollars per share)	7.15
Exercise Price Range 3 [Member]
Range of exercise prices, upper limit (in dollars per share)
Options outstanding, number outstanding (in shares)	127,995
Options outstanding, weighted-average remaining contractual life (Year)	1 year 146 days
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Exercisable Options	127,995
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Exercisable Options, Weighted Average Exercise Price	$ 8.72
Exercise Price Range 4 [Member]
Range of exercise prices, upper limit (in dollars per share)
Options outstanding, number outstanding (in shares)	213,741
Options outstanding, weighted-average remaining contractual life (Year)	3 years 167 days
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Exercisable Options	166,370
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Exercisable Options, Weighted Average Exercise Price	$ 8.80
Exercise Price Range 5 [Member]
Range of exercise prices, upper limit (in dollars per share)	$ 9.65
Options outstanding, number outstanding (in shares)	144,460
Options outstanding, weighted-average remaining contractual life (Year)	4 years 69 days
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Exercisable Options	100,019
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Exercisable Options, Weighted Average Exercise Price	$ 9.31
Range of exercise prices, lower limit (in dollars per share)	8.91
Exercise Price Range 6 [Member]
Range of exercise prices, upper limit (in dollars per share)	$ 10.03
Options outstanding, number outstanding (in shares)	115,000
Options outstanding, weighted-average remaining contractual life (Year)	4 years 240 days
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Exercisable Options	67,605
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Exercisable Options, Weighted Average Exercise Price	$ 9.99
Range of exercise prices, lower limit (in dollars per share)	9.97
Exercise Price Range 7 [Member]
Range of exercise prices, upper limit (in dollars per share)	$ 10.86
Options outstanding, number outstanding (in shares)	114,133
Options outstanding, weighted-average remaining contractual life (Year)	3 years 317 days
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Exercisable Options	55,394
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Exercisable Options, Weighted Average Exercise Price	$ 10.30
Range of exercise prices, lower limit (in dollars per share)	10.24
Exercise Price Range 8 [Member]
Range of exercise prices, upper limit (in dollars per share)	$ 11.98
Options outstanding, number outstanding (in shares)	116,250
Options outstanding, weighted-average remaining contractual life (Year)	5 years 240 days
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Exercisable Options	24,792
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Exercisable Options, Weighted Average Exercise Price	$ 11.18
Range of exercise prices, lower limit (in dollars per share)	10.90
Exercise Price Range 9 [Member]
Range of exercise prices, upper limit (in dollars per share)	$ 14.04
Options outstanding, number outstanding (in shares)	88,500
Options outstanding, weighted-average remaining contractual life (Year)	5 years 317 days
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Exercisable Options	31,938
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Exercisable Options, Weighted Average Exercise Price	$ 13.67
Range of exercise prices, lower limit (in dollars per share)	13.40
Exercise Price Range 10 [Member]
Range of exercise prices, upper limit (in dollars per share)
Options outstanding, number outstanding (in shares)	5,000
Options outstanding, weighted-average remaining contractual life (Year)	5 years 204 days
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Exercisable Options	1,771
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Exercisable Options, Weighted Average Exercise Price	$ 15.32

Note 5 - Stockholders' Equity53

Note 5 - Stockholders' Equity, Stock Plans and Stock-based Compensation Expense - Restricted Stock Units Activity (Details) - Restricted Stock Units (RSUs) [Member] - USD ($)		12 Months Ended
		Dec. 31, 2016		Dec. 31, 2015		Dec. 31, 2014		Dec. 31, 2013
Outstanding, number of shares (in shares)		371,630		434,321		179,465
Outstanding, weighted-average grant date fair value (in dollars per share)		$ 12.39		$ 9.31		$ 8.34
Outstanding, aggregate intrinsic value	[1]	$ 7,726		$ 4,753		$ 4,639		$ 1,827
Granted, number of shares (in shares)		480,191		203,104		360,563
Granted, weighted-average grant date fair value (in dollars per share)		$ 10.80		$ 14.81		$ 9.72
Vested, number of shares (in shares)	[2]	(172,990)		(222,220)		(81,157)
Vested, weighted-average grant date fair value (in dollars per share)	[2]	$ 12.56		$ 11.79		$ 8.62
Vested, aggregate fair value	[2],[4]	$ 1,906,000	[3]	$ 3,285,000	[5]	$ 777,000	[6]
Forfeited, number of shares (in shares)		(233,514)		(43,575)		(24,550)
Forfeited, weighted-average grant date fair value (in dollars per share)		$ 11.36		$ 9.09		$ 8.14
Outstanding, number of shares (in shares)		445,317		371,630		434,321
Outstanding, weighted-average grant date fair value (in dollars per share)		$ 11.15		$ 12.39		$ 9.31
[1]	Based on the closing stock price of the Company's stock of $17.35 on December 31, 2016, $12.79 on December 31, 2015, $10.68 on December 30, 2014 and $10.18 on December 31, 2013.
[2]	The number of restricted stock units vested includes shares that the Company withheld on behalf of the employees to satisfy the statutory tax withholding requirements.
[3]	On the grant date, the fair value for these vested awards was $2.2 million.
[4]	Represents the value of the Company's stock on the date that the restricted stock units and performance stock units vest.
[5]	On the grant date, the fair value for these vested awards was $2.6 million.
[6]	On the grant date, the fair value for these vested awards was $699,000.

Note 5 - Stockholders' Equity54

Note 5 - Stockholders' Equity, Stock Plans and Stock-based Compensation Expense - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Allocated share-based compensation expense	$ 3,713	$ 4,084	$ 3,299
Employee Stock Option [Member]
Allocated share-based compensation expense	989	1,438	1,811
Restricted Stock Units (RSUs) [Member]
Allocated share-based compensation expense	1,508	1,297	875
Performance Shares [Member]
Allocated share-based compensation expense	967	1,167	455
ESPP [Member]
Allocated share-based compensation expense	$ 249	$ 182	$ 158

Note 5 - Stockholders' Equity55

Note 5 - Stockholders' Equity, Stock Plans and Stock-based Compensation Expense - Stock-based Compensation Expense by Department (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Allocated share-based compensation expense	$ 3,713	$ 4,084	$ 3,299
Cost of Sales [Member]
Allocated share-based compensation expense	341	447	560
Selling and Marketing Expense [Member]
Allocated share-based compensation expense	1,179	1,054	641
Research and Development Expense [Member]
Allocated share-based compensation expense	596	662	581
General and Administrative Expense [Member]
Allocated share-based compensation expense	$ 1,597	$ 1,921	$ 1,517

Note 5 - Stockholders' Equity56

Note 5 - Stockholders' Equity, Stock Plans and Stock-based Compensation Expense - Valuation Assumptions and Fair Value of Stock Option and ESPP Grants (Details) - $ / shares		12 Months Ended
		Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Employee Stock Option [Member]
Expected term (in years) (Year)	[1]	3 years 302 days	3 years 87 days	4 years 65 days
Risk-free interest rate	[2]	1.09%	0.90%	1.31%
Volatility	[3]	40.00%	30.00%	41.00%
Dividend yield	[4]
Weighted average estimated fair value at grant date (in dollars per share)		$ 3.72	$ 4.78	$ 3.36
Stock Purchase Plan [Member]
Expected term (in years) (Year)	[1]	182 days	182 days	182 days
Risk-free interest rate	[2]	0.46%	0.17%	0.06%
Volatility	[3]	39.00%	36.00%	37.00%
Dividend yield	[4]
Weighted average estimated fair value at grant date (in dollars per share)		$ 3.22	$ 3.51	$ 2.65
[1]	The expected term represents the period during which the Company's stock-based awards are expected to be outstanding. The estimated term is based on historical experience of similar awards, giving consideration to the contractual terms of the awards, vesting requirements, and expectation of future employee behavior, including post-vesting terminations.
[2]	The risk-free interest rate is based on U.S. Treasury debt securities with maturities close to the expected term of the option as of the date of grant.
[3]	Estimated volatility is based on historical volatility. The Company also considers implied volatility when there is sufficient volume of freely traded options with comparable terms and exercise prices in the open market.
[4]	The Company has not historically issued any dividends and does not expect to do so in the foreseeable future.

Note 6 - Income Taxes (Details

Note 6 - Income Taxes (Details Textual) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2016	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Amount		$ 4,100,000	$ 1,600,000	$ 3,300,000
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets		49,000
Deferred Tax Assets, Operating Loss Carryforwards		15,487,000	14,231,000
Deferred Tax Assets, Tax Credit Carryforwards		9,006,000	4,477,000
Undistributed Earnings of Foreign Subsidiaries		3,100,000	2,800,000
Unrecognized Tax Benefits that Would Impact Effective Tax Rate		82,000	78,000
Unrecognized Tax Benefits, Interest on Income Taxes Accrued		49,000	45,000
Unrecognized Tax Benefits, Income Tax Penalties Accrued		0	$ 0
New Accounting Pronouncement, Early Adoption, Effect [Member]
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets		49,000
Deferred Tax Assets, Operating Loss Carryforwards	$ 1,200,000
Deferred Tax Assets, Tax Credit Carryforwards	3,900,000
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount	$ 5,200,000
Domestic Tax Authority [Member]
Operating Loss Carryforwards		42,000,000
Deferred Tax Assets, Tax Credit Carryforwards, Research		$ 5,000,000
Domestic Tax Authority [Member] | Earliest Tax Year [Member]
Operating Loss Carryforwards Expiration Date 1		2,029
Domestic Tax Authority [Member] | Earliest Tax Year [Member] | Research Tax Credit Carryforward [Member]
Tax Credit Carryforward Expiration Year		2,024
Domestic Tax Authority [Member] | Latest Tax Year [Member]
Operating Loss Carryforwards Expiration Date 1		2,035
Domestic Tax Authority [Member] | Latest Tax Year [Member] | Research Tax Credit Carryforward [Member]
Tax Credit Carryforward Expiration Year		2,035
State and Local Jurisdiction [Member]
Operating Loss Carryforwards		$ 21,800,000
Deferred Tax Assets, Tax Credit Carryforwards, Research		6,200,000
Research and Development Tax Credits Expiring in 2020		$ 268,000
State and Local Jurisdiction [Member] | Earliest Tax Year [Member]
Operating Loss Carryforwards Expiration Date 1		2,029
State and Local Jurisdiction [Member] | Earliest Tax Year [Member] | Research Tax Credit Carryforward [Member]
Tax Credit Carryforward Expiration Year		2,020
State and Local Jurisdiction [Member] | Latest Tax Year [Member]
Operating Loss Carryforwards Expiration Date 1		2,035
State and Local Jurisdiction [Member] | Latest Tax Year [Member] | Research Tax Credit Carryforward [Member]
Tax Credit Carryforward Expiration Year		2,021

Note 6 - Income Taxes - Income

Note 6 - Income Taxes - Income (Loss) Before Provision for Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
U.S.									$ 2,207	$ (4,588)	$ (10,592)
Foreign									513	360	199
Income (loss) before income taxes	$ 4,241	$ 1,705	$ (1,199)	$ (2,027)	$ 2,102	$ (900)	$ (1,836)	$ (3,594)	$ 2,720	$ (4,228)	$ (10,393)

Note 6 - Income Taxes - Incom59

Note 6 - Income Taxes - Income Tax Provision (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Current:
Federal										$ (7)	$ (7)
State									16	23	19
Foreign									131	218	110
Total Current									147	234	122
Deferred:
Federal									(24)	33	32
State									(2)
Foreign									22	(55)	65
Total Deferred									(4)	(22)	97
Tax provision	$ 28	$ 61	$ 30	$ 24	$ 52	$ 57	$ 53	$ 50	$ 143	$ 212	$ 219

Note 6 - Income Taxes - Deferre

Note 6 - Income Taxes - Deferred Tax Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Deferred Tax Assets, Operating Loss Carryforwards	$ 15,487	$ 14,231
Stock-based compensation	1,486	2,462
Other accruals and reserves	2,160	4,679
Deferred Tax Assets, Tax Credit Carryforwards	9,006	4,477
Foreign	377	350
Accrued warranty	890	657
Depreciation and amortization	2,627	1,105
Other	95	5
Deferred tax asset before valuation allowance	32,128	27,966
Valuation allowance	(31,751)	(27,616)
Deferred tax asset after valuation allowance	377	350
Deferred tax liability on goodwill	(85)	(103)
Net deferred tax asset	$ 292	$ 247

Note 6 - Income Taxes - Defer61

Note 6 - Income Taxes - Deferred Tax Asset Balance (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Deferred tax asset	$ 377	$ 350
Income tax liability	(85)	(103)
Net deferred tax asset after valuation allowance	$ 292	$ 247

Note 6 - Income Taxes - Reconci

Note 6 - Income Taxes - Reconciliation of Effective Tax Rate (Details)		12 Months Ended
		Dec. 31, 2016	Dec. 31, 2015		Dec. 31, 2014
U.S. federal statutory income tax rate		34.00%	34.00%	[1]	34.00%	[1]
State tax rate, net of federal benefit		(14.56%)	1.94%	[1]	1.62%	[1]
Benefit for research and development credit		(9.25%)
Benefit for research and development nondeductible expense	[1]		15.92%		7.24%
Stock-based compensation		14.36%	(19.19%)	[1]	(5.56%)	[1]
Foreign rate differential		(0.16%)	(1.47%)	[1]	(1.04%)	[1]
True ups		(0.67%)		[1]		[1]
Other		6.08%	(4.58%)	[1]	(1.78%)	[1]
Valuation allowance		(24.57%)	(31.63%)	[1]	(36.58%)	[1]
Effective tax rate		5.23%	(5.01%)	[1]	(2.10%)	[1]
[1]	Certain items have changed for classification purposes.

Note 6 - Income Taxes - Unrecog

Note 6 - Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Balance at beginning of year	$ 651	$ 597	$ 535
Increases related to prior year tax positions
Increases related to current year tax positions	56	54	62
Decreases related to lapsing of statute of limitations
Balance at end of year	$ 707	$ 651	$ 597

Note 7 - Net Income (Loss) Pe64

Note 7 - Net Income (Loss) Per Share - Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares shares in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Antidilutive Securities (in shares)	244	2,988	3,825
Employee Stock Option [Member]
Antidilutive Securities (in shares)	220	2,575	3,489
Restricted Stock Units (RSUs) [Member]
Antidilutive Securities (in shares)	24	296	213
ESPP [Member]
Antidilutive Securities (in shares)		93	86
Performance Shares [Member]
Antidilutive Securities (in shares)		24	37

Note 8 - Defined Contribution65

Note 8 - Defined Contribution Plan (Details Textual) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Defined Contribution Plan, Employer Discretionary Contribution Amount	$ 262,000	$ 244,000	$ 211,000
Maximum [Member]
Defined Contribution Plan Maximum Percentage of Employee Voluntary Contribution	100.00%

Note 9 - Segment Information 66

Note 9 - Segment Information and Revenue by Geograpy and Products (Details Textual)	12 Months Ended
	Dec. 31, 2016
Number of Operating Segments	1

Note 9 - Segment Information 67

Note 9 - Segment Information and Revenue by Geograpy and Products - Revenue by Geographic Region (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Net revenue	$ 37,875	$ 30,281	$ 27,477	$ 22,423	$ 30,042	$ 23,085	$ 22,563	$ 19,071	$ 118,056	$ 94,761	$ 78,138
Product [Member]
Net revenue									92,721	71,223	53,106
Hand Piece Refills [Member]
Net revenue									2,498	2,910	3,714
Skincare [Member]
Net revenue									3,809	2,889	3,479
Total Product Revenue [Member]
Net revenue									99,028	77,022	60,299
Service [Member]
Net revenue									19,028	17,739	17,839
UNITED STATES
Net revenue									65,513	48,916	35,494
JAPAN
Net revenue									14,727	11,504	13,328
Asia, Excluding Japan [Member]
Net revenue									13,445	15,596	11,023
Europe [Member]
Net revenue									7,539	7,728	7,792
Rest of World [Member]
Net revenue									$ 16,832	$ 11,017	$ 10,501

Note 10 - Commitments and Con68

Note 10 - Commitments and Contingencies (Details Textual) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Operating Leases, Rent Expense	$ 1,600,000	$ 1,500,000	$ 1,500,000
Estimated Litigation Liability	$ 138,000	$ 110,000

Note 10 - Commitments and Con69

Note 10 - Commitments and Contingencies - Minimum Lease and Other Leased Assets under Long-term Non-cancellable Operating Leases (Details) $ in Thousands	Dec. 31, 2016USD ($)
2,017	$ 1,912
2,018	189
2,019	35
2,020	5
Future minimum rental payments	$ 2,141

Note 10 - Commitments and Con70

Note 10 - Commitments and Contingencies - Minimum Lease Payments for Leased Vehicles under Long-term Non-cancellable Capital Leases (Details) $ in Thousands	Dec. 31, 2016USD ($)
2,017	$ 367
2,018	354
2,019	266
2,020	6
Future minimum lease payments	$ 993

Note 11 - Related Parties (Deta

Note 11 - Related Parties (Details Textual) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period	480,191	203,104	360,563
Director [Member] | Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period	6,500
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Fair Value	$ 87,100
Director [Member] | Restricted Stock Units (RSUs) [Member] | Vesting Commencing on August 15, 2016 [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	3 years
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage	33.33%
Director [Member] | Product Development, Clinical Sales and Marketing Support Services [Member]
Related Party Transaction, Amounts of Transaction	$ 182,100

Note 12 - Subsequent Events (De

Note 12 - Subsequent Events (Details Textual) - Modified Stock Buyback Program [Member] - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Feb. 13, 2017	Feb. 08, 2016	Feb. 18, 2015	Feb. 17, 2015
Stock Repurchase Program, Remaining Authorized Repurchase Amount	$ 5,100,000			$ 10,000,000	$ 40,000,000	$ 10,000,000
Stock Repurchased During Period, Shares	455,311	2,818,038
Treasury Stock, Value, Acquired, Cost Method	$ 4,900,000
Subsequent Event [Member]
Stock Repurchase Program, Remaining Authorized Repurchase Amount			$ 5,000,000

Note 13 - Supplementary Finan73

Note 13 - Supplementary Financial Data (Unaudited) - Supplementary Financial Data (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Net revenue	$ 37,875	$ 30,281	$ 27,477	$ 22,423	$ 30,042	$ 23,085	$ 22,563	$ 19,071	$ 118,056	$ 94,761	$ 78,138
Cost of revenue	15,962	12,538	11,472	9,949	12,145	9,594	9,687	9,052	49,921	40,478	34,765
Gross profit	21,913	17,743	16,005	12,474	17,897	13,491	12,876	10,019	68,135	54,283	43,373
Sales and marketing	11,561	10,574	10,712	8,716	9,899	8,790	9,066	8,187	41,563	35,942	32,246
Research and development	2,897	2,914	2,712	2,709	2,812	2,748	2,728	2,445	11,232	10,733	10,543
General and administrative	3,010	2,716	3,997	3,220	3,189	2,937	3,014	2,989	12,943	12,129	11,203
Total operating expenses	17,468	16,204	17,421	14,645	15,900	14,475	14,808	13,621	65,738	58,804	53,992
Income (loss) from operations	4,445	1,539	(1,416)	(2,171)	1,997	(984)	(1,932)	(3,602)	2,397	(4,521)	(10,619)
Interest and other income, net	(204)	166	217	144	105	84	96	8	323	293	226
Income (loss) before income taxes	4,241	1,705	(1,199)	(2,027)	2,102	(900)	(1,836)	(3,594)	2,720	(4,228)	(10,393)
Income tax provision	28	61	30	24	52	57	53	50	143	212	219
Net income (loss)	$ 4,213	$ 1,644	$ (1,229)	$ (2,051)	$ 2,050	$ (957)	$ (1,889)	$ (3,644)	$ 2,577	$ (4,440)	$ (10,612)
Net income (loss) per share—basic (in dollars per share)	$ 0.31	$ 0.12	$ (0.09)	$ (0.16)	$ 0.16	$ (0.07)	$ (0.13)	$ (0.25)	$ 0.19	$ (0.32)	$ (0.74)
Net income (loss) per share—diluted (in dollars per share)	$ 0.30	$ 0.12	$ (0.09)	$ (0.16)	$ 0.15	$ (0.07)	$ (0.13)	$ (0.25)	$ 0.19	$ (0.32)	$ (0.74)
Basic (in shares)	13,591	13,163	13,131	13,010	12,978	13,827	14,441	14,611	13,225	13,960	14,254
Diluted (in shares)	14,201	13,544	13,131	13,010	13,591	13,827	14,441	14,611	13,753	13,960	14,254

Schedule II - Valuation and Q74

Schedule II - Valuation and Qualifying Accounts - Summary of the Deferred Tax Assets Valuation Allowance (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Valuation Allowance of Deferred Tax Assets [Member]
Year ended December 31, 2016	$ 27,616	$ 26,046	$ 22,762
Year ended December 31, 2016	6,755	3,327	3,780
Year ended December 31, 2016	2,620	1,757	496
Year ended December 31, 2016	31,751	27,616	26,046
Allowance for Doubtful Accounts, Current [Member]
Year ended December 31, 2016	4		19
Year ended December 31, 2016	21	4	4
Year ended December 31, 2016	4		23
Year ended December 31, 2016	$ 21	$ 4