Cutera (CUTR) 10-Q 1 May 17 2017 Q1 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	3 Months Ended
	Mar. 31, 2017	Apr. 30, 2017
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)		13,858,651
Document Type	10-Q
Document Period End Date	Mar. 31, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q1
Amendment Flag	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 11,443	$ 13,775
Marketable investments	36,990	40,299
Accounts receivable, net	17,859	16,547
Inventories	15,672	14,977
Other current assets and prepaid expenses	2,403	2,251
Total current assets	84,367	87,849
Property and equipment, net	1,802	1,907
Deferred tax asset	394	377
Intangibles, net		2
Goodwill	1,339	1,339
Other long-term assets	389	380
Total assets	88,291	91,854
Current liabilities:
Accounts payable	3,089	2,598
Accrued liabilities	14,950	17,397
Deferred revenue	8,275	8,394
Total current liabilities	26,314	28,389
Deferred revenue, net of current portion	1,801	1,705
Income tax liability	169	168
Other long-term liabilities	565	582
Total liabilities	28,849	30,844
Commitments and Contingencies (Note 10)
Stockholders’ equity:
Convertible preferred stock, $0.001 par value; authorized: 5,000,000 shares; none issued and outstanding
Common stock, $0.001 par value; authorized: 50,000,000 shares; issued and outstanding: 13,909,182 and 13,773,389 shares at March 31, 2017 and December 31, 2016, respectively	14	14
Additional paid-in capital	87,569	88,114
Accumulated deficit	(28,068)	(27,046)
Accumulated other comprehensive loss	(73)	(72)
Total stockholders’ equity	59,442	61,010
Total liabilities and stockholders’ equity	$ 88,291	$ 91,854

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares	Mar. 31, 2017	Dec. 31, 2016
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)	13,909,182	13,773,389
Common stock, outstanding (in shares)	13,909,182	13,773,389

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Net revenue:
Products	$ 24,475,000	$ 17,956,000
Service	4,824,000	4,467,000
Total net revenue	29,299,000	22,423,000
Cost of revenue:
Products	11,144,000	7,648,000
Service	2,634,000	2,301,000
Total cost of revenue	13,778,000	9,949,000
Gross profit	15,521,000	12,474,000
Operating expenses:
Sales and marketing	10,773,000	8,716,000
Research and development	2,945,000	2,709,000
General and administrative	3,216,000	3,220,000
Total operating expenses	16,934,000	14,645,000
Loss from operations	(1,413,000)	(2,171,000)
Interest and other income, net	273,000	144,000
Loss before income taxes	(1,140,000)	(2,027,000)
Provision (benefit) for income taxes	(118,000)	24,000
Net loss	$ (1,022,000)	$ (2,051,000)
Net loss per share:
Basic and Diluted (in dollars per share)	$ (0.07)	$ (0.16)
Weighted-average number of shares used in per share calculations:
Basic and Diluted (in shares)	13,840	13,010

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Net loss	$ (1,022)	$ (2,051)
Available-for-sale investments
Net change in unrealized gain (loss) on available-for-sale investments	3	69
Less: Reclassification adjustment for gains on investments recognized during the year	(4)
Net change in unrealized gain (loss) on available-for-sale investments	(1)	69
Tax provision (benefit)
Other comprehensive income (loss), net of tax	(1)	69
Comprehensive loss	$ (1,023)	$ (1,982)

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Cash flows from operating activities:
Net loss	$ (1,022)	$ (2,051)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock-based compensation	1,395	1,332
Depreciation and amortization	248	240
Other	(51)	12
Changes in assets and liabilities:
Accounts receivable	(1,305)	472
Inventories	(695)	(1,397)
Other current assets and prepaid expenses	(158)	(230)
Other long-term assets	(9)	(35)
Accounts payable	491	611
Accrued liabilities	(2,657)	(2,758)
Other long-term liabilities		(82)
Deferred revenue	(23)	(103)
Income tax liability	1	(55)
Net cash used in operating activities	(3,785)	(4,044)
Cash flows from investing activities:
Acquisition of property, equipment and software	(69)	(97)
Disposal of property and equipment	25
Proceeds from sales of marketable investments	5,255	1,800
Proceeds from maturities of marketable investments	14,035	3,975
Purchase of marketable investments	(15,972)	(6,399)
Net cash provided by (used in) investing activities	3,274	(721)
Cash flows from financing activities:
Repurchase of common stock	(2,700)	(279)
Proceeds from exercise of stock options and employee stock purchase plan	1,751	744
Taxes paid related to net share settlement of equity awards	(784)	(233)
Payments on capital lease obligations	(88)	(70)
Net cash (used in) provided by financing activities	(1,821)	162
Net decrease in cash and cash equivalents	(2,332)	(4,603)
Cash and cash equivalents at beginning of period	13,775	10,868
Cash and cash equivalents at end of period	11,443	6,265
Supplemental disclosure of non-cash items:
Repurchase of common stock acquired but not settled	207	27
Assets acquired under capital lease	$ 80	$ 51

Note 1 - Summary of Significant

Note 1 - Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2017
Notes to Financial Statements
Organization, Consolidation, Basis of Presentation, Business Description and Accounting Policies [Text Block]	Note 1. 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 , and xeo ® . Titan ® truSculpt third Titan truSculpt Headquartered in Brisbane, California, the Company has wholly-owned subsidiari es that are currently operational in Australia, Belgium, Canada, France, Hong Kong, Japan , Switzerland and the United Kingdom. These subsidiaries market, sell and service the Company’s products outside of the United States. The Condensed Consolidated Financial Statements include the accounts of the Company and its subsidiaries. All inter-company transactions and balances have been eliminated. Unaudited Interim Financial Information The interim financial information filed is unaudited. The Condensed Consolidated Financial Statements included in this report reflect all adjustments (consisting only of normal recurring adjustments) that the Company considers necessary for the fair statement of the results of operations for the interim periods covered and of the financial condition of the Company at the date of the interim balance sheet. The December 31, 2016 10 December 31, 2016 March 15, 2017 . Use of Estimates The preparation of interim Condensed Consolidated Financial Statements in conformity with GAAP requires the Company ’s management to make estimates and assumptions that affect the amounts reported and disclosed in the Condensed Consolidated Financial Statements and the accompanying notes. Actual results could differ materially from those estimates. On an ongoing basis, the Company evaluates these estimates, including those related to revenue elements, warranty obligations, sales commissions, accounts receivable and sales allowances, provision for excess and obsolete inventories, fair values of marketable investments, fair values of acquired intangible assets, useful lives of intangible assets and property and equipment, fair values of performance stock units and options to purchase the Company’s stock, recoverability of deferred tax assets, legal matters and claims, and effective income tax rates, among others. Management bases these estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Recent Accounting Pronouncements In May 2014, ") issued Accounting Standards Updates (“ASU”) No. 2014 09, Revenue from Contracts with Customers 2016, August 2015, December 15, 2017, December 15, 2016. In February 2016, 2016 02, Leases 12 December 15, 2018.

Note 2 - Cash, Cash Equivalents

Note 2 - Cash, Cash Equivalents and Marketable Investments	3 Months Ended
	Mar. 31, 2017
Notes to Financial Statements
Cash, Cash Equivalents, and Marketable Securities [Text Block]	Note 2. Cash , Cash Equivalents and Marketable Investments The Company invests its cash primarily in money market funds, commercial paper, corporate notes and bonds, municipal bonds, and debt securities issued by the U.S. government and its agencies. The Company considers all highly liquid investments, with an original maturity of three three ,” are carried at fair value with unrealized gains and losses reported as a component of stockholders’ equity, are held for use in current operations and are classified in current assets as “marketable investments .” The following table s summarize the components, and the unrealized gains and losses position, related to the Company’s cash , cash equivalents and marketable investments (in thousands): March 3 1 , 201 7 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Market Value Cash and cash equivalents: Cash $ 6,918 $ — $ — $ 6,918 Money market funds 1,026 — — 1,026 Commercial paper 3,499 — — 3,499 Total cash and cash equivalents 11,443 — — 11,443 Marketable investments: U.S. government notes 4,453 — (11 ) 4,442 U.S. government agencies 2,002 — (2 ) 2,000 Municipal securities — — — — Commercial paper 17,243 3 (1 ) 17,245 Corporate debt securities 13,305 7 (9 ) 13,303 Total marketable investments 37,003 10 (23 ) 36,990 Total cash, cash equivalents and marketable investments $ 48,446 $ 10 $ (23 ) $ 48,433 December 31, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Market Value Cash and cash equivalents: Cash $ 6,672 $ — $ — $ 6,672 Money market funds 6,053 — — 6,053 Commercial paper 1,050 — — 1,050 Total 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 investments 40,311 9 (21 ) 40,299 Total cash, cash equivalents and marketable investments $ 54,086 $ 9 $ (21 ) $ 54,074 As of March 31, 2017 December 31, 2016, $23,000 $21,000, . The Company has concluded that it is more-likely-than-not that the securities will be held until maturity or the recovery of their cost basis. No 12 . The following table summarizes the contractual maturities of the Company’s available-for-sale securities , classified as marketable investments as of March 31, 2017 Amount Due in less than one year $ 33,230 Due in 1 to 3 years 3,760 Total marketable investments $ 36,990

Note 3 - Fair Value of Financia

Note 3 - Fair Value of Financial Instruments	3 Months Ended
	Mar. 31, 2017
Notes to Financial Statements
Fair Value Disclosures [Text Block]	Note 3. Fair Value of Financial Instruments Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value hierarchy distinguishes between (1) assumptions developed based on market data obtained from independent sources (observable inputs) (2) unobservable inputs three (Level 1) (Level 3). three ● Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities. ● Level 2: Directly or indirectly observable inputs as of the reporting date through correlation with market data, including quoted prices for similar assets and liabilities in active markets and quoted prices in markets that are not active. Level 2 ● Level 3: Unobservable inputs that are supported by little or no market activity and reflect the use of significant management judgment. These values are generally determined using pricing models for which the assumptions utilize management’s estimates of market participant assumptions. In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible as well as considers counterparty credit risk in its assessment of fair value. As of March 31, 2017, March 31 , 2017 Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 1,026 $ — $ — $ 1,026 Commercial paper — 3,499 — 3,499 M arketable investments: Available -for -sale securities — 36,990 — 36,990 Total assets at fair value $ 1,026 $ 40,489 $ — $ 41,515 As of December 31, 2016, December 31, 2016 Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 6,053 $ — $ — $ 6,053 Commercial paper — 1,050 — 1,050 M arketable investments: Available -for -sale securities — 40,299 — 40,299 Total assets at fair value $ 6,053 $ 41,349 $ — $ 47,402 The Company ’s Level 2 may two 2 March 31, 2017 1 - or better .

Note 4 - Balance Sheet Details

Note 4 - Balance Sheet Details	3 Months Ended
	Mar. 31, 2017
Notes to Financial Statements
Supplemental Balance Sheet Disclosures [Text Block]	Note 4. Balance Sheet Details Inventories As of March 31, 2017 December 31, 2016, March 3 1 , 201 7 December 31, 2 01 6 Raw materials $ 11,543 $ 10,966 Finished goods 4,129 4,011 Total $ 15,672 $ 14,977 Accrued Liabilities As of March 31, 2017 December 31, 2016, March 3 1 , 201 7 December 31, 201 6 Accrued payroll and related expenses $ 7,113 $ 9,036 Warranty liability 2,735 2,461 Sales tax 1,644 2,373 Other 3,458 3,527 Total $ 14,950 $ 17,397

Note 5 - Warranty

Note 5 - Warranty	3 Months Ended
	Mar. 31, 2017
Notes to Financial Statements
Product Warranty Disclosure [Text Block]	Note 5 . Warranty The Company provides a standard one . For direct sales to end customers, warranty coverage provided is for labor and parts necessary to repair the systems during the warranty period. For sales to distributors, we provide a 14 16 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 , Switzerland and the United Kingdom. In several other countries where it does not have a direct presence, the Company provides service through a network of distributors and third After the original warrant y 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. The following table provides the changes in the product warranty accrual for the three March 31, 2017 2016 Three Months Ended March 3 1 , 201 7 201 6 Beginning Balance $ 2,461 $ 1,819 Add: Accruals for warranties issued during the period 2,135 1,254 Less: Settlements made during the period (1,861 ) (1,254 ) Ending Balance $ 2,735 $ 1,819

Note 6 - Deferred Service Contr

Note 6 - Deferred Service Contract Revenue	3 Months Ended
	Mar. 31, 2017
Notes to Financial Statements
Deferred Revenue Disclosure [Text Block]	Note 6 . Deferred Service Contract Revenue The Company generates Service revenue from the sale of extended service contracts and from time and material services provided to customers who are not under a warranty or extended service contract. Service contract revenue is recognized on a straight-line basis over the period of the applicable contract. Service revenue, from customers whose systems are not under a service contract, is recognized as the services are provided. The following table provides changes in the deferred service contract revenue balance for the three March 31, 2017 2016 Three Months Ended March 3 1 , 201 7 201 6 Beginning Balance $ 9,431 $ 10,469 Add: Payments received 3,391 3,263 Less: Revenue recognized (3,267 ) (3,220 ) Ending Balance $ 9,555 $ 10,512 Costs for extended service contracts were $1.9 $1.6 three March 31, 2017 2016,

Note 7 - Stockholders' Equity a

Note 7 - Stockholders' Equity and Stock-based Compensation Expense	3 Months Ended
	Mar. 31, 2017
Notes to Financial Statements
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]	Note 7 . Stockholders’ Equity and Stock-based Compensation Expense Share Repurchase Program On February 8, 2016, $10 ares of its common stock. As of December 31, 2016, $5.1 . On February 13, 2017 $5 In the three March 31, 2017, 140,400 $2.9 . As of March 31, 2017, $7.2 Stock-based Compensation Expense Stock-based compensation expense by department recognized during the three March 31, 2017 2016 Three Months Ended March 31 , 2017 2016 Cost of revenue $ 129 $ 141 Sales and marketing 420 376 Research and development 237 180 General and administrative 609 635 Total stock-based compensation expense $ 1,395 $ 1,332 Activity under the Company ’s 2004 Options Outstanding Shares Available for Grant Number of Stock Options Outstanding Weighted- Average Exercise Price Balance, December 31, 2016 721,657 1,116,472 $ 9.56 Options granted (52,000 ) 52,000 18.18 Stock awards granted ( 1) (2) (449,440 ) — — Options exercised — (201,686 ) 8.68 Options canceled 11,352 (11,352 ) 17.39 Stock awards canceled ( 1) 94,113 — — Balance, March 31 , 2017 325,682 955,434 $ 10.12 (1) The Company has a “ fungible share” provision in its 2004 requires the subtraction or add back of 2.12 . (2) Included in 'Stock awards granted' of 449,440 , was 221,540 fungible shares relating to 104,500 of PSUs granted. These PSUs mayresult in a lower number of shares of common stock that may be released on January 1, 201 8 , based on the achievement of two 8 January 11 , 201 7 . Under the 2004 , the Company issued 316,203 three March 31, 2017 , in conjunction with stock options exercised and the vesting of RSUs and PSUs . As of March 31, 2017, $5.9 , related to non-vested equity awards. The expense is expected to be recognized over the remaining weighted-average period of 1.80 may

Note 8 - Net Loss Per Share

Note 8 - Net Loss Per Share	3 Months Ended
	Mar. 31, 2017
Notes to Financial Statements
Earnings Per Share [Text Block]	Note 8 . Net Loss Per Share Basic net loss per share is calculated by dividing net loss by the weighted-average number of common shares outstanding during the year. Diluted net loss per common share is the same as basic net loss per common share, as the effect of the potential common stock equivalents is anti-dilutive and as such is excluded from the calculations of the diluted net loss per share. The following number s of shares outstanding, prior to the application of the treasury stock method, were excluded from the computation of diluted net loss per common share for the period presented because including them would have had an anti-dilutive effect (in thousands): Three Months Ended March 3 1 , 201 7 201 6 Options to purchase common stock 1,088 3,191 Restricted stock units 384 405 Performance stock units 164 158 Employee stock purchase plan shares 49 42 Total 1,685 3,796

Note 9 - Income Taxes

Note 9 - Income Taxes	3 Months Ended
	Mar. 31, 2017
Notes to Financial Statements
Income Tax Disclosure [Text Block]	Note 9 . Income Taxes The Company calculates the provision for income taxes during interim reporting periods by applying an estimate of the annual effective tax rate for the full fiscal year to " ordinary" income or loss (pretax income or loss excluding unusual or infrequently occurring discrete items) for the reporting period. When applicable, the year-to-date tax provision reflects adjustments from discrete tax items. However, for the fiscal three March 31, 2016, three March 31, 2016. three March 31, 2017 three March 31, 2016 100% three March 31, 2017, $118,000, $24,000 2016. three March 31, 2017 $51,000, The Company utilizes the asset and liability method of accounting for income taxes, under which deferred taxes are determined based o n the temporary differences between the financial statement and tax basis of assets and liabilities using enacted tax rates expected to be in effect during the years in which the basis differences reverse. A valuation allowance is recorded when it is more likely than not that some of the deferred tax assets will not be realized. As of March 31, 2017, December 31, 2016, 100%

Note 10 - Commitments and Conti

Note 10 - Commitments and Contingencies	3 Months Ended
	Mar. 31, 2017
Notes to Financial Statements
Commitments and Contingencies Disclosure [Text Block]	Note 10 . Commitments and Contingencies The Company is named from time to time as a party to product liability , contractual lawsuits and other general corporate matters in the normal course of business. The Company routinely assesses the likelihood of any adverse judgments or outcomes related to legal matters and claims, as well as ranges of probable losses. A determination of the amount of the reserves required, if any, for these contingencies is made after analysis of each known issue, historical experience , whether it is more likely than not that the Company shall incur a loss, and whether the loss is estimable . The Company is not currently a party to any material legal proceedings.

Significant Accounting Policies

Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2017
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 , and xeo ® . Titan ® truSculpt third Titan truSculpt Headquartered in Brisbane, California, the Company has wholly-owned subsidiari es that are currently operational in Australia, Belgium, Canada, France, Hong Kong, Japan , Switzerland and the United Kingdom. These subsidiaries market, sell and service the Company’s products outside of the United States. The Condensed Consolidated Financial Statements include the accounts of the Company and its subsidiaries. All inter-company transactions and balances have been eliminated.
Unaudited Interim Financial Information [Policy Text Block]	Unaudited Interim Financial Information The interim financial information filed is unaudited. The Condensed Consolidated Financial Statements included in this report reflect all adjustments (consisting only of normal recurring adjustments) that the Company considers necessary for the fair statement of the results of operations for the interim periods covered and of the financial condition of the Company at the date of the interim balance sheet. The December 31, 2016 10 December 31, 2016 March 15, 2017 .
Use of Estimates, Policy [Policy Text Block]	Use of Estimates The preparation of interim Condensed Consolidated Financial Statements in conformity with GAAP requires the Company ’s management to make estimates and assumptions that affect the amounts reported and disclosed in the Condensed Consolidated Financial Statements and the accompanying notes. Actual results could differ materially from those estimates. On an ongoing basis, the Company evaluates these estimates, including those related to revenue elements, warranty obligations, sales commissions, accounts receivable and sales allowances, provision for excess and obsolete inventories, fair values of marketable investments, fair values of acquired intangible assets, useful lives of intangible assets and property and equipment, fair values of performance stock units and options to purchase the Company’s stock, recoverability of deferred tax assets, legal matters and claims, and effective income tax rates, among others. Management bases these estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities.
New Accounting Pronouncements, Policy [Policy Text Block]	Recent Accounting Pronouncements In May 2014, ") issued Accounting Standards Updates (“ASU”) No. 2014 09, Revenue from Contracts with Customers 2016, August 2015, December 15, 2017, December 15, 2016. In February 2016, 2016 02, Leases 12 December 15, 2018.

Note 2 - Cash, Cash Equivalen18

Note 2 - Cash, Cash Equivalents and Marketable Investments (Tables)	3 Months Ended
	Mar. 31, 2017
Notes Tables
Unrealized Gain (Loss) on Investments [Table Text Block]	March 3 1 , 201 7 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Market Value Cash and cash equivalents: Cash $ 6,918 $ — $ — $ 6,918 Money market funds 1,026 — — 1,026 Commercial paper 3,499 — — 3,499 Total cash and cash equivalents 11,443 — — 11,443 Marketable investments: U.S. government notes 4,453 — (11 ) 4,442 U.S. government agencies 2,002 — (2 ) 2,000 Municipal securities — — — — Commercial paper 17,243 3 (1 ) 17,245 Corporate debt securities 13,305 7 (9 ) 13,303 Total marketable investments 37,003 10 (23 ) 36,990 Total cash, cash equivalents and marketable investments $ 48,446 $ 10 $ (23 ) $ 48,433 December 31, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Market Value Cash and cash equivalents: Cash $ 6,672 $ — $ — $ 6,672 Money market funds 6,053 — — 6,053 Commercial paper 1,050 — — 1,050 Total 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 investments 40,311 9 (21 ) 40,299 Total cash, cash equivalents and marketable investments $ 54,086 $ 9 $ (21 ) $ 54,074
Investments Classified by Contractual Maturity Date [Table Text Block]	Amount Due in less than one year $ 33,230 Due in 1 to 3 years 3,760 Total marketable investments $ 36,990

Note 3 - Fair Value of Financ19

Note 3 - Fair Value of Financial Instruments (Tables)	3 Months Ended
	Mar. 31, 2017
Notes Tables
Fair Value Measurements, Recurring and Nonrecurring [Table Text Block]	March 31 , 2017 Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 1,026 $ — $ — $ 1,026 Commercial paper — 3,499 — 3,499 M arketable investments: Available -for -sale securities — 36,990 — 36,990 Total assets at fair value $ 1,026 $ 40,489 $ — $ 41,515 December 31, 2016 Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 6,053 $ — $ — $ 6,053 Commercial paper — 1,050 — 1,050 M arketable investments: Available -for -sale securities — 40,299 — 40,299 Total assets at fair value $ 6,053 $ 41,349 $ — $ 47,402

Note 4 - Balance Sheet Details

Note 4 - Balance Sheet Details (Tables)	3 Months Ended
	Mar. 31, 2017
Notes Tables
Schedule of Inventory, Current [Table Text Block]	March 3 1 , 201 7 December 31, 2 01 6 Raw materials $ 11,543 $ 10,966 Finished goods 4,129 4,011 Total $ 15,672 $ 14,977
Schedule of Accrued Liabilities [Table Text Block]	March 3 1 , 201 7 December 31, 201 6 Accrued payroll and related expenses $ 7,113 $ 9,036 Warranty liability 2,735 2,461 Sales tax 1,644 2,373 Other 3,458 3,527 Total $ 14,950 $ 17,397

Note 5 - Warranty (Tables)

Note 5 - Warranty (Tables)	3 Months Ended
	Mar. 31, 2017
Notes Tables
Schedule of Product Warranty Liability [Table Text Block]	Three Months Ended March 3 1 , 201 7 201 6 Beginning Balance $ 2,461 $ 1,819 Add: Accruals for warranties issued during the period 2,135 1,254 Less: Settlements made during the period (1,861 ) (1,254 ) Ending Balance $ 2,735 $ 1,819

Note 6 - Deferred Service Con22

Note 6 - Deferred Service Contract Revenue (Tables)	3 Months Ended
	Mar. 31, 2017
Notes Tables
Deferred Revenue, by Arrangement, Disclosure [Table Text Block]	Three Months Ended March 3 1 , 201 7 201 6 Beginning Balance $ 9,431 $ 10,469 Add: Payments received 3,391 3,263 Less: Revenue recognized (3,267 ) (3,220 ) Ending Balance $ 9,555 $ 10,512

Note 7 - Stockholders' Equity23

Note 7 - Stockholders' Equity and Stock-based Compensation Expense (Tables)	3 Months Ended
	Mar. 31, 2017
Notes Tables
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block]	Three Months Ended March 31 , 2017 2016 Cost of revenue $ 129 $ 141 Sales and marketing 420 376 Research and development 237 180 General and administrative 609 635 Total stock-based compensation expense $ 1,395 $ 1,332
Share-based Compensation, Activity [Table Text Block]	Options Outstanding Shares Available for Grant Number of Stock Options Outstanding Weighted- Average Exercise Price Balance, December 31, 2016 721,657 1,116,472 $ 9.56 Options granted (52,000 ) 52,000 18.18 Stock awards granted ( 1) (2) (449,440 ) — — Options exercised — (201,686 ) 8.68 Options canceled 11,352 (11,352 ) 17.39 Stock awards canceled ( 1) 94,113 — — Balance, March 31 , 2017 325,682 955,434 $ 10.12

Note 8 - Net Loss Per Share (Ta

Note 8 - Net Loss Per Share (Tables)	3 Months Ended
	Mar. 31, 2017
Notes Tables
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block]	Three Months Ended March 3 1 , 201 7 201 6 Options to purchase common stock 1,088 3,191 Restricted stock units 384 405 Performance stock units 164 158 Employee stock purchase plan shares 49 42 Total 1,685 3,796

Note 2 - Cash, Cash Equivalen25

Note 2 - Cash, Cash Equivalents and Marketable Investments (Details Textual) - USD ($)	Mar. 31, 2017	Dec. 31, 2016
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax	$ 23,000	$ 21,000
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	$ 0

Note 2 - Cash, Cash Equivalen26

Note 2 - Cash, Cash Equivalents and Marketable Investments - Unrealized Gains and Losses Related to Marketable Investments (Details) - USD ($)	Mar. 31, 2017	Dec. 31, 2016	Mar. 31, 2016	Dec. 31, 2015
Amortized Cost	$ 11,443,000	$ 13,775,000	$ 6,265,000	$ 10,868,000
Fair Market Value	11,443,000	13,775,000
Amortized Cost	37,003,000	40,311,000
Gross Unrealized Gains	10,000	9,000
Gross Unrealized Losses	(23,000)	(21,000)
Fair Market Value	36,990,000	40,299,000
Amortized Cost	48,446,000	54,086,000
Fair Market Value	48,433,000	54,074,000
US Treasury and Government [Member]
Amortized Cost	4,453,000	8,403,000
Gross Unrealized Gains		4,000
Gross Unrealized Losses	(11,000)	(9,000)
Fair Market Value	4,442,000	8,398,000
US Government Agencies Debt Securities [Member]
Amortized Cost	2,002,000	3,918,000
Gross Unrealized Gains
Gross Unrealized Losses	(2,000)	(2,000)
Fair Market Value	2,000,000	3,916,000
US States and Political Subdivisions Debt Securities [Member]
Amortized Cost		1,325,000
Gross Unrealized Gains
Gross Unrealized Losses
Fair Market Value		1,325,000
Commercial Paper, Not Included with Cash and Cash Equivalents [Member]
Amortized Cost	17,243,000	12,299,000
Gross Unrealized Gains	3,000	2,000
Gross Unrealized Losses	(1,000)	(2,000)
Fair Market Value	17,245,000	12,299,000
Corporate Debt Securities [Member]
Amortized Cost	13,305,000	14,366,000
Gross Unrealized Gains	7,000	3,000
Gross Unrealized Losses	(9,000)	(8,000)
Fair Market Value	13,303,000	14,361,000
Cash [Member]
Amortized Cost	6,918,000	6,672,000
Fair Market Value	6,918,000	6,672,000
Money Market Funds [Member]
Amortized Cost	1,026,000	6,053,000
Fair Market Value	1,026,000	6,053,000
Commercial Paper [Member]
Amortized Cost	3,499,000	1,050,000
Fair Market Value	$ 3,499,000	$ 1,050,000

Note 2 - Cash, Cash Equivalen27

Note 2 - Cash, Cash Equivalents and Marketable Investments - Maturities of Available-for-Sale Securities (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Due in less than one year	$ 33,230
Due in 1 to 3 years	3,760
Total marketable investments	$ 36,990	$ 40,299

Note 3 - Fair Value of Financ28

Note 3 - Fair Value of Financial Instruments (Details Textual)	3 Months Ended
	Mar. 31, 2017
Maximum Maturity Period Of Investments	1 year

Note 3 - Fair Value of Financ29

Note 3 - Fair Value of Financial Instruments - Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Cash equivalents:
Cash Equivalents	$ 11,443	$ 13,775
Marketable investments:
Available-for-sale securities	36,990	40,299
Money Market Funds [Member]
Cash equivalents:
Cash Equivalents	1,026	6,053
Commercial Paper [Member]
Cash equivalents:
Cash Equivalents	3,499	1,050
Fair Value, Measurements, Recurring [Member]
Marketable investments:
Available-for-sale securities	36,990	40,299
Total assets at fair value	41,515	47,402
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]
Marketable investments:
Total assets at fair value	1,026	6,053
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
Marketable investments:
Available-for-sale securities	36,990	40,299
Total assets at fair value	40,489	41,349
Fair Value, Measurements, Recurring [Member] | Money Market Funds [Member]
Cash equivalents:
Cash Equivalents	1,026	6,053
Fair Value, Measurements, Recurring [Member] | Money Market Funds [Member] | Fair Value, Inputs, Level 1 [Member]
Cash equivalents:
Cash Equivalents	1,026	6,053
Fair Value, Measurements, Recurring [Member] | Commercial Paper [Member]
Cash equivalents:
Cash Equivalents	3,499	1,050
Fair Value, Measurements, Recurring [Member] | Commercial Paper [Member] | Fair Value, Inputs, Level 2 [Member]
Cash equivalents:
Cash Equivalents	$ 3,499	$ 1,050

Note 4 - Balance Sheet Detail30

Note 4 - Balance Sheet Details - Inventories (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Raw materials	$ 11,543	$ 10,966
Finished goods	4,129	4,011
Total	$ 15,672	$ 14,977

Note 4 - Balance Sheet Detail31

Note 4 - Balance Sheet Details - Accrued Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Accrued payroll and related expenses	$ 7,113	$ 9,036
Warranty liability	2,735	2,461
Sales tax	1,644	2,373
Other	3,458	3,527
Total	$ 14,950	$ 17,397

Note 5 - Warranty - Summary of

Note 5 - Warranty - Summary of Warranties (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Beginning Balance	$ 2,461	$ 1,819
Add: Accruals for warranties issued during the period	2,135	1,254
Less: Settlements made during the period	(1,861)	(1,254)
Ending Balance	$ 2,735	$ 1,819

Note 6 - Deferred Service Con33

Note 6 - Deferred Service Contract Revenue (Details Textual) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Deferred Revenue Costs Incurred	$ 1.9	$ 1.6

Note 6 - Deferred Service Con34

Note 6 - Deferred Service Contract Revenue - Summary of Deferred Service Contract Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Beginning Balance, deferred service contract revenue	$ 9,431	$ 10,469
Add: Payments received	3,391	3,263
Less: Revenue recognized	(3,267)	(3,220)
Ending Balance, deferred service contract revenue	$ 9,555	$ 10,512

Note 7 - Stockholders' Equity35

Note 7 - Stockholders' Equity and Stock-based Compensation Expense (Details Textual) - USD ($) $ in Millions		3 Months Ended
		Mar. 31, 2017	Feb. 13, 2017	Dec. 31, 2016	Feb. 08, 2016
Share Based Compensation Arrangement By Share Based Payment Award Shares Available For Grant In Period Gross	[1],[2]	449,440
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized		$ 5.9
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition		1 year 292 days
Modified Stock Buyback Program [Member]
Stock Repurchase Program, Remaining Authorized Repurchase Amount		$ 7.2	$ 5	$ 5.1	$ 10
Stock Repurchased During Period, Shares		140,400
Treasury Stock, Value, Acquired, Cost Method		$ 2.9
Two Thousand Four Equity Incentive Plan [Member]
Number of Stock Awards Counted for Every Share Granted or Canceled		2.12
Share Based Compensation Arrangement By Share Based Payment Award Shares Available For Grant In Period Gross		449,440
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period		316,203
Two Thousand Four Equity Incentive Plan [Member] | Fungible Shares [Member]
Share Based Compensation Arrangement By Share Based Payment Award Shares Available For Grant In Period Gross		221,540
Two Thousand Four Equity Incentive Plan [Member] | Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted		104,500
[1]	Included in 'Stock awards granted' of 449,440, was 221,540 fungible shares relating to 104,500 of PSUs granted. These PSUs mayresult in a lower number of shares of common stock that may be released on January 1, 2018, based on the achievement of two performance goals at targets that were pre-determined by the Board and disclosed in a Form 8-K on January 11, 2017.
[2]	The Company has a "fungible share" provision in its 2004 Equity Incentive Plan whereby for each full-value award (RSU/PSU) issued or canceled under the Plan requires the subtraction or add back of 2.12 shares from or to the Shares Available for Grant, respectively.

Note 7 - Stockholders' Equity,

Note 7 - Stockholders' Equity, Stock Plans and Stock-based Compensation Expense - Stock-based Compensation Expense by Department (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Allocated Share Based Compensation Expense	$ 1,395	$ 1,332
Cost of Sales [Member]
Allocated Share Based Compensation Expense	129	141
Selling and Marketing Expense [Member]
Allocated Share Based Compensation Expense	420	376
Research and Development Expense [Member]
Allocated Share Based Compensation Expense	237	180
General and Administrative Expense [Member]
Allocated Share Based Compensation Expense	$ 609	$ 635

Note 7 - Stockholders' Equity37

Note 7 - Stockholders' Equity and Stock-based Compensation Expense - Activity Under the 2004 Equity Incentive Plan (Details)	3 Months Ended
	Mar. 31, 2017$ / sharesshares
Balance, shares available for grant (in shares)	721,657
Balance, stock options outstanding (in shares)	1,116,472
Balance, weighted-average exercise price (in dollars per share) | $ / shares	$ 9.56
Options granted, shares available for grant (in shares)	(52,000)
Options granted, stock options outstanding (in shares)	52,000
Options granted, weighted-average exercise price (in dollars per share) | $ / shares	$ 18.18
Stock awards granted(1) (2) (in shares)	(449,440)	[1],[2]
Options exercised, stock options outstanding (in shares)	(201,686)
Options exercised, weighted-average exercise price (in dollars per share) | $ / shares	$ 8.68
Options canceled, shares available for grant (in shares)	11,352
Options canceled, stock options outstanding (in shares)	(11,352)
Options canceled, weighted-average exercise price (in dollars per share) | $ / shares	$ 17.39
Stock awards canceled(1) (in shares)	94,113	[2]
Balance, shares available for grant (in shares)	325,682
Balance, stock options outstanding (in shares)	955,434
Balance, weighted-average exercise price (in dollars per share) | $ / shares	$ 10.12
[1]	Included in 'Stock awards granted' of 449,440, was 221,540 fungible shares relating to 104,500 of PSUs granted. These PSUs mayresult in a lower number of shares of common stock that may be released on January 1, 2018, based on the achievement of two performance goals at targets that were pre-determined by the Board and disclosed in a Form 8-K on January 11, 2017.
[2]	The Company has a "fungible share" provision in its 2004 Equity Incentive Plan whereby for each full-value award (RSU/PSU) issued or canceled under the Plan requires the subtraction or add back of 2.12 shares from or to the Shares Available for Grant, respectively.

Note 8 - Net Loss Per Share - A

Note 8 - Net Loss Per Share - Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares shares in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Antidilutive Securities (in shares)	1,685	3,796
Employee Stock Option [Member]
Antidilutive Securities (in shares)	1,088	3,191
Restricted Stock Units (RSUs) [Member]
Antidilutive Securities (in shares)	384	405
Performance Shares [Member]
Antidilutive Securities (in shares)	164	158
ESPP [Member]
Antidilutive Securities (in shares)	49	42

Note 9 - Income Taxes (Details

Note 9 - Income Taxes (Details Textual) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Deferred Tax Assets Valuation Allowance Percentage	100.00%		100.00%
Income Tax Expense (Benefit)	$ (118,000)	$ 24,000
Income Tax Benefit for Excess Tax Deductions Related to Employee Share-based Compensation	$ 51,000